DALLAS--(BUSINESS WIRE)--Blackboxstocks Inc. (NASDAQ: BLBX), (“Blackbox” or the “Company”), a financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders of all levels, today announced the Company’s financial results for the third quarter and nine months ended September 30, 2023.
Third Quarter Financial and Operating Highlights:
- Total revenue for the third quarter of 2023 was $728,468 as compared to $1,219,150 for the same period in 2022. Revenue for the nine months ended June 30, 2023 was $2,324,870 as compared to $3,890,951 for the prior year period.
- The average member count for the third quarter and nine months ended September 30, 2023 was 3,174 and 3,564, respectively.
- Operating expenses were $1,269,769 in the third quarter of 2023 as compared to $1,924,460 for the same period in 2022. For the nine months ended September 30, 2023 operating expenses were $5,369,668 as compared to $5,706,792 for the nine months ended September 30, 2022.
- Adjusted EBITDA was $(513,026) and $(1,075,361) for the three months ended September 30, 2023 and 2022, respectively. Adjusted EBITDA for the nine months ended June 30, 2023 and 2022 was $(2,696,171) and $(3,123,363), respectively.
Gust Kepler, Chief Executive Officer, commented, “It has been a challenging year for Blackbox, like many companies in the fintech and financial markets sector, however we have advanced several important initiatives including:
- We have made significant progress in the pursuit of our merger with Evtec. During the extensive preparation for this merger, we have negotiated additional terms that we believe will directly increase the stockholder value of this transaction.
- We are currently exploring strategic marketing partnerships with companies in the fintech and financial publishing sector to leverage and increase the growth of our core Blackbox product.
- We have completed two comprehensive beta tests for our exciting new product StockNanny. Feedback from the beta testers was extremely positive and provided extensive insight into the depth and breadth of the potential market for this new product, which we plan to launch as soon as possible.
With all of these initiatives progressing, Blackbox is meeting the challenges of the current environment and I am confident that our multiple pivot strategies will be successful and ultimately provide enhanced value for our shareholders.”
Robert Winspear, Chief Financial Officer, added, “We are pleased with the impact of our cost reductions which, when combined with stabilization of our revenue, have narrowed our net loss for the current quarter.”
Summary financial data is presented in the tables below. Please see the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 14, 2023 for additional information.
About Blackboxstocks, Inc.
Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs “predictive technology” enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: https://blackboxstocks.com
Safe Harbor Statement
Our prospects here at Blackbox stocks are subject to uncertainties and risks. This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business, and reflect our beliefs and assumptions based upon information available to us at the date of this press release. In some cases, you can identify these statements by words such as “if,” “may,” “might,” “will, “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and other similar terms. These forward-looking statements include, among other things, plans for proposed operations, descriptions of our strategies, our product and market development plans, and other objectives, expectations and intentions, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors including, but not limited to, the risks and uncertainties discussed in our other filings with the Securities Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
Disclosure of Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). However, management believes the presentation of certain non-GAAP financial measures provides useful information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with the non-GAAP financial measures, investors are provided with a more meaningful understanding of the Company’s ongoing operating performance. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating performance. For all non-GAAP financial measures in this release, we have provided corresponding GAAP financial measures for comparative purposes in the report.
We refer to the term “EBITDA” in various places of our financial discussion. EBITDA is defined by us as net income (loss) from continuing operations before interest expense, income tax, depreciation and amortization expense and certain non-cash expenses including stock-based compensation. EBITDA is not a measure of operating performance under GAAP and therefore should not be considered in isolation nor construed as an alternative to operating profit, net income (loss) or cash flows from operating, investing or financing activities, each as determined in accordance with GAAP. Also, EBITDA should not be considered as a measure of liquidity. Moreover, since EBITDA is not a measurement determined in accordance with GAAP, and thus is susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to similarly titled measures presented by other companies.
| Blackboxstocks Inc. | |||||
| Summary Balance Sheet Data | |||||
| As of September, 2023 and December 31, 2022 | |||||
| (Unaudited) | |||||
September 30, 2023 |
December 31, 2022 |
||||
| Assets | |||||
| Cash | $ |
463,288 |
$ |
425,578 |
|
| Marketable securities |
|
2,276 |
|
3,216,280 |
|
| Other current assets |
|
344,955 |
|
265,197 |
|
| Total current assets | $ |
810,519 |
$ |
3,907,055 |
|
| Property and equipment, net |
|
346,017 |
|
428,726 |
|
| Investment |
|
8,424,000 |
|
- |
|
| Total assets | $ |
9,580,536 |
$ |
4,335,781 |
|
| Liabilities and Stockholders' Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ |
825,087 |
$ |
730,099 |
|
| Unearned subscriptions |
|
571,379 |
|
1,022,428 |
|
| Other current liabilities |
|
67,692 |
|
71,615 |
|
| Note payable, current portion |
|
28,950 |
|
28,733 |
|
| Total current liabilities | $ |
1,493,108 |
$ |
1,852,875 |
|
| Long term liabilities: | |||||
| Note payable, net of current portion |
|
17,874 |
|
39,614 |
|
| Lease liability right of use, long term |
|
216,545 |
|
265,639 |
|
| Total long term liabilities | $ |
234,419 |
$ |
305,253 |
|
| Total stockholders' equity | $ |
7,823,009 |
$ |
2,177,653 |
|
| Total liabilities and stockholders' equity | $ |
9,550,536 |
$ |
4,335,781 |
|
| Blackboxstocks Inc. | ||||||||||||||||
| Summary Statements of Operations | ||||||||||||||||
| For the Three and Nine Months Ended September 30,2023 and 2022 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
For the three months ended |
For the nine months ended |
|||||||||||||||
September |
September |
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
| Revenue | $ |
728,468 |
|
$ |
1,219,150 |
|
$ |
2,324,870 |
|
$ |
3,890,951 |
|
||||
| Cost of revenue |
|
327,928 |
|
|
492,991 |
|
|
1,202,534 |
|
|
1,572,380 |
|
||||
| Gross margin | $ |
400,540 |
|
$ |
726,159 |
|
$ |
1,122,336 |
|
$ |
2,318,571 |
|
||||
| Operating expenses: |
|
1,269,769 |
|
|
1,924,460 |
|
|
5,369,668 |
|
|
5,706,792 |
|
||||
| Operating loss | $ |
(869,229 |
) |
$ |
(1,198,301 |
) |
$ |
(4,247,332 |
) |
$ |
(3,388,221 |
) |
||||
| Other income (expense) |
|
(197,484 |
) |
|
110,141 |
|
|
(250,725 |
) |
|
478,763 |
|
||||
| Net loss | $ |
(671,745 |
) |
$ |
(1,308,442 |
) |
$ |
(3,996,607 |
) |
$ |
(3,866,984 |
) |
||||
| Adjusted EBITDA | $ |
(513,026 |
) |
$ |
(1,075,361 |
) |
$ |
(2,696,171 |
) |
$ |
(3,123,363 |
) |
||||
| Adjusted EBITDA Calculation | ||||||||||||||||
| Net loss | $ |
(671,745 |
) |
$ |
(1,308,442 |
) |
$ |
(3,996,607 |
) |
$ |
(3,866,984 |
) |
||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense |
|
11,100 |
|
|
5,850 |
|
|
32,297 |
|
|
16,646 |
|
||||
| Interest and financing expense |
|
210 |
|
|
41,339 |
|
|
522 |
|
|
126,162 |
|
||||
| Investment (income) loss |
|
(8,934 |
) |
|
68,802 |
|
|
(62,487 |
) |
|
352,601 |
|
||||
| Stock based compensation |
|
156,343 |
|
|
117,090 |
|
|
1,330,104 |
|
|
248,212 |
|
||||
| Total adjustments | $ |
158,719 |
|
$ |
233,081 |
|
$ |
1,300,436 |
|
$ |
743,621 |
|
||||
| Adjusted EBITDA | $ |
(513,026 |
) |
$ |
(1,075,361 |
) |
$ |
(2,696,171 |
) |
$ |
(3,123,363 |
) |
||||
