Blackboxstocks (BLBX) 10-Q 19 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 11, 2016
Document and Entity Information:
Entity Registrant Name	BLACKBOXSTOCKS INC.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Trading Symbol	blbx
Amendment Flag	false
Entity Central Index Key	1,567,900
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		20,200,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 4,347	$ 60,286
Investments, trading		414
Prepaid expenses		3,414
Prepaid expenses, related parties (Note 6)	24,050	154,500
Total current assets	28,397	218,614
Property:
Computer and related equipment, net of depreciation of $2,578 at June 30, 2016 and $0 at December 31, 2015	12,887	15,465
Total property	12,887	15,465
Total Assets	41,284	234,079
Current liabilities:
Accounts payable	79,819	29,148
Accrued interest	861
Advances, related party (Note 6)	9,960
Notes payable (Note 7)	50,000
Total current liabilities	140,640	29,148
Commitments and contingencies (Note 8)
Stockholders' Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2016 and December 31, 2015	0
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 5,000,000 issued and outstanding at June 30, 2016 and December 31, 2015, respectively	5,000	5,000
Common stock, $0.001 par value, 100,000,000 shares authorized: 20,000,000 and 20,835,010 issued and outstanding at June 30, 2016 and December 31, 2015, respectively	20,000	20,835
Additional paid in capital	800,442	799,607
Accumulated deficit	(924,798)	(620,511)
Total Stockholders' Equity	(99,356)	204,931
Total Liabilities and Stockholders' Equity	$ 41,284	$ 234,079

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parentheticals - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Parentheticals
Computer and related equipment, net of depreciation	$ 2,578	$ 0
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock shares authorized	5,000,000	5,000,000
Series A Convertible Preferred Stock par value	$ 0.001	$ 0.001
Series A Convertible Preferred Stock shares authorized	5,000,000	5,000,000
Series A Convertible Preferred Stock issued	5,000,000	5,000,000
Series A Convertible Preferred Stock outstanding	5,000,000	5,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	20,000,000	20,835,010
Common stock, shares outstanding	20,000,000	20,835,010

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue
Revenue	$ 0
Cost of operations	0
Gross margin	0
Expenses:
Software development costs	42,449	$ 23,376	$ 89,321	$ 45,447
General and administrative	123,555	42,648	212,388	74,950
Depreciation	1,289		2,578
Total operating expenses	167,293	66,024	304,287	120,397
Operating loss	(167,293)	(66,024)	(304,287)	(120,397)
Loss before income taxes	(167,293)	(66,024)	(304,287)	(120,397)
Income taxes	0
Net loss	$ (167,293)	$ (66,024)	$ (304,287)	$ (120,397)
Weighted average number of common shares outstanding - basic	20,000,000	17,923,407	20,188,107	17,012,928
Net loss per share - basic	$ (0.01)	$ 0	$ (0.02)	$ (0.01)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (304,287)	$ (120,397)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	2,578
Changes in operating assets and liabilities:
Investment, trading	414
Prepaid expenses	3,414
Prepaid expenses, related parties	130,450	(31,164)
Accounts payable	50,671	8,489
Accounts payable, related parties		(109,781)
Accrued interest	861
Net cash used in operating activities	(115,899)	(252,853)
Cash flows from investing activities
Purchases of fixed assets		(13,472)
Net cash used in investing activities		(13,472)
Cash flows from financing activities
Common stock issued for cash		560,000
Advances from shareholder	9,960
Proceeds from notes issued	50,000
Net cash provided by financing activities	59,960	560,000
Net increase(decrease) in cash	(55,939)	293,675
Cash - beginning of period	60,286	200,530
Cash - end of period	4,347	$ 494,205
Non-cash investing and financing activities:
Cancellation of common shares	$ 835

ORGANIZATION

ORGANIZATION	6 Months Ended
	Jun. 30, 2016
ORGANIZATION
ORGANIZATION	1. Organization Blackboxstocks Inc. was incorporated on October 4, 2011 under the laws of the State of Nevada under the name SMSA Ballinger Acquisition Corp. to effect the reincorporation of Senior Management Services of Heritage Oaks at Ballinger, Inc., a Texas corporation, mandated by a Plan of Reorganization (the "Plan of Reorganization") confirmed by the United States Bankruptcy Court For the Northern District of Texas for reorganization under Chapter 11 of the United States Bankruptcy Code. On December 1, 2015, the Company entered into a Share Exchange Agreement ("Exchange Agreement"), by and among the Company, Tiger Trade Technologies, Inc. ("Tiger Trade"), a Texas corporation and the Stockholders of Tiger Trade. Tiger Trade had a total of 25 stockholders as of the date of the Exchange Agreement. On February 8, 2016, the Company entered into an Agreement and Plan of Merger ("Merger Agreement") with Tiger Trade, providing for the merger of Tiger Trade with and into the Company. At the effective time of the merger (February 9, 2016), the shares of Tiger Trade capital stock outstanding immediately before the effective time were canceled, retired and ceased to exist. On February 10, 2016, the Company entered into a Stock Cancellation Agreement (the "Cancellation Agreement") with Gust C. Kepler, our sole Director and the President, Chief Executive Officer, Chief Financial Officer and Secretary The Company filed a Certificate of Amendment to its Articles of Incorporation effective as of March 9, 2016 changing the name of the Company to Blackboxstocks Inc.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2016
GOING CONCERN
GOING CONCERN	2. Going Concern The Company is still developing its Blackbox System technology and associated website/platform and anticipates making it available to subscribers in September 2016. The Company estimates additional costs of One Million Dollars ($1,000,000) to Two Million Dollars ($2,000,000) over the next twelve months to complete research and development, as well as provide capital to market, implement and maintain the Blackbox System. Marketing for potential subscribers will begin when the Blackbox System becomes enterprise ready for subscriber sales. We cannot provide any assurances that the Company will be able to secure sufficient funds to satisfy the cash requirements for the next twelve months, nor that it will be successful in its endeavors to market the Blackbox System. The inability to secure additional funds would have a material adverse effect on the Company. The Company currently anticipates raising the amounts necessary to implement our plans through debt and/or equity financing from the sale of Company Common Stock and reinvestment of profits generated through subscription revenue. The consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. There is no assurance that the Company will be successful in its efforts to raise funds through sales of stock or obtain debt financing, nor generate subscription revenues. These factors raise substantial doubt about the ability of the Company to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. Summary of Significant Accounting Policies The accompanying interim unaudited financial statements and footnotes of Blackboxstocks Inc. have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company's Annual Report. The accompanying unaudited financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results for any subsequent quarter or the entire year ending December 31, 2016. Basis of Presentation Use of Estimates Recently Issued Accounting Pronouncements Property and Equipment The Company's property and equipment acquired during 2015 was placed in service effective January 1, 2016 and depreciated on the straight line basis over an estimated useful life of three years beginning in 2016. Earnings or (Loss) Per Share Revenue Recognition

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	4. Stockholders' Equity At December 31, 2015 the Company had authorized 10,000,000 shares of preferred stock at $0.001 par value, 5,000,000 of which are designated as "Series A Convertible Preferred Stock" at $0.001 par value and 100,000,000 authorized shares of common stock at $0.001 par value ("Common Stock"). 20,000,000 shares of Common Stock have been issued including 15,000,000 issued for proprietary assets contributed by our President and a third party vendor (Note 6). Shares of Series A Convertible Preferred Stock have a $0.001 par value, do not accumulate dividends, and are convertible into shares of Common Stock on a one-for-one basis. Additionally, each share entitles the holder to 100 votes and, with respect to dividend and liquidation rights, the shares rank pari passu with the Company's Common Stock. On December 1, 2015, the Company entered into an Exchange Agreement, by and among, Tiger Trade, its Stockholders and the Company (Note 1). Under the terms and conditions of the Agreement, the Company offered and sold Seventeen Million Nine Hundred Thousand (17,900,000) newly issued shares of Company Common Stock and Five Million (5,000,000) newly issued shares of Company Series A Convertible Preferred Stock in consideration for all the issued and outstanding shares of Tiger Trade capital stock. The effect of the issuance was that Tiger Trade stockholders acquired approximately 85.91% of the issued and outstanding shares of Company Common Stock and 100% of the issued and outstanding shares of Company Preferred Stock. Tiger Trade became a wholly owned subsidiary of the Company as a result of the Exchange Agreement transaction. Tiger Trade was subsequently merged with and into the Company on February 9, 2016, at which time all of the outstanding capital stock of Tiger Trade outstanding immediately before the effective date were canceled, retired and ceased to exist. On February 10, 2016, the Company entered into a Stock Cancellation Agreement with Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company, pursuant to which Mr. Kepler cancelled and forfeited 835,010 shares of the Company's Common Stock.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	6 Months Ended
	Jun. 30, 2016
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS	5. Stock Options and Warrants

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	6. Related Party Transactions During the quarter ended June 30, 2016, Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company advanced $9,960 to the Company. The advance is unsecured and bears no interest. During the period April 28, 2014 through March 31, 2016, the Company (and its predecessor, Tiger Trade) engaged the services of Karma Black Box LLC ("Karma"), which became a Company stockholder as a result of the Exchange Agreement (Note 4), for application development services of the Company's Blackbox System technology. Karma was issued 5,000,000 shares of Tiger Trade common stock in exchange for some of the services valued at $5,000. Karma's Tiger Trade shares were exchanged for Company Common Stock on a one-for-one basis under the terms of the Exchange Agreement. At June 30, 2016 and December 31, 2015, there was no accounts payable owed to Karma. G2 International, Inc. ("G2"), which does business as IPA Tech Group ("IPA") (Note 8), is a company wholly owned by Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company, and the Company's controlling stockholder. During the six months ended June 30, 2016 and 2015, G2 provided software development services to the Company totaling $0 and $3,000, respectively. In 2016 G2/IPA refunded $154,500 of prepayments leaving a prepaid balance of $0 as of August 15, 2016. During the six months ended June 30, 2016 and 2015 the Company incurred $0 and $64,736 of expenses with G2, respectively. At June 30, 2016 and December 31, 2015, there was no accounts payable owed to G2.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2016
Notes Payable:
Notes Payable	7. Notes Payable On April 29, 2016 a third party advanced $50,000 to the Company in exchange for a six month promissory note accruing interest at a rate of 10% per annum and secured by all assets and personal property of the Company. Accrued interest on the note was $861 as of June 30, 2016.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	8. Commitments and Contingencies On April 28, 2014, Tiger Trade entered into a consulting agreement with G2, doing business as IPA, to render advice and reasonable assistance for a period of one year at a monthly fee of $8,500 plus any reasonable and actual costs incurred by IPA in connection with such services. G2 is wholly owned Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company, and the Company's controlling stockholder. On April 28, 2015 this agreement was extended for an additional one year term expiring on April 28, 2016. However, the consulting agreement was terminated by mutual agreement effective August 31, 2015. During the six months ended June 30, 2016 and 2015, consulting fees incurred under this agreement totaled $0 and $51,000, respectively. The Company entered into a sublease agreement with G2 effective July 1, 2015 subject to the terms and conditions of the office lease between G2 and Teachers Insurance and Annuity Association of America for approximately 1,502 square feet of office space at 5430 LBJ Freeway, Dallas, Texas. The sublease agreement expires March 31, 2020. During the six months ended June 30, 2016 we incurred $21,448 in office rental expense. The Company is not currently a defendant in any material litigation or any threatened litigation that could have a material effect on the Company's financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events
Subsequent Events	9. Subsequent Events On July 22, 2016 and August 16, 2016, the Company entered into subscription agreements for the sale of a total of 220,000 shares of the Company's Common Stock at a price of $0.50 per share for aggregate proceeds of $110,000. As of August 15, 2016, 200,000 of those shares have been issued.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES (POLICIES)	6 Months Ended
	Jun. 30, 2016
SIGNIFICANT ACCOUNTING POLICIES (POLICIES):
Basis of Presentation	Basis of Presentation
Use of Estimates	Use of Estimates
Recently Issued Accounting Pronouncements , Policy	Recently Issued Accounting Pronouncements
Property and Equipment	Property and Equipment The Company's property and equipment acquired during 2015 was placed in service effective January 1, 2016 and depreciated on the straight line basis over an estimated useful life of three years beginning in 2016.
Earnings or (Loss) Per Share	Earnings or (Loss) Per Share
Revenue Recognition	Revenue Recognition

ORGANIZATION (Details)

ORGANIZATION (Details)	Feb. 10, 2016shares
ORGANIZATION Details
Company, pursuant to which Mr. Kepler cancelled and forfeited shares of Company Common Stock	835,010

GOING CONCERN (Details)

GOING CONCERN (Details)	Jun. 30, 2016USD ($)
GOING CONCERN:
Company anticipates additional costs of One Million Dollars ($1,000,000) to	$ 2,000,000

EARNINGS OR (LOSS) PER SHARE (D

EARNINGS OR (LOSS) PER SHARE (DETAILS)	Jun. 30, 2016shares
EARNINGS OR (LOSS) PER SHARE DETAILS
Potential dilution common shares	5,000,000

CAPITAL STOCK TRANSACTION (Deta

CAPITAL STOCK TRANSACTION (Details) - $ / shares	Feb. 10, 2016	Dec. 31, 2015	Dec. 02, 2015
CAPITAL STOCK TRANSACTION:
Company had authorized shares of preferred stock		10,000,000
Company had authorized shares of preferred stock at par value		$ 0.001
Series A Convertible Preferred Stock		5,000,000
Series A Convertible Preferred Stock par value		$ 0.001
Authorized shares of common stock		100,000,000
Authorized shares of common stock par value		$ 0.001
Common shares issued for proprietary assets contributed by President		15,000,000
Shares of Common Stock have been issued		20,000,000
Company, pursuant to which Mr. Kepler cancelled and forfeited shares of Company Common Stock	835,010
Company offered and sold newly issued shares of Company Common Stock			17,900,000
Company offered newly issued shares of Series A Convertible Preferred Stock			5,000,000
Issued and outstanding shares of Company Common Stock			85.91%
Issued and outstanding shares of Company Preferred Stock			100.00%

RELATED PARTY TRANSACTION (Deta

RELATED PARTY TRANSACTION (Details) - USD ($)	3 Months Ended	6 Months Ended		23 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
RELATED PARTY TRANSACTION Details
Company advanced	$ 9,960
Issued shares of common stock in exchange for some of the services				5,000,000
Issued shares of common stock in exchange for some of the services valued at				$ 5,000
G2 International, Inc. (G2)
Software development services to the Company		$ 0	$ 3,000
Refunded of these prepayments leaving a prepaid balance		154,500	0
Company incurred expenses		$ 0	$ 64,736

NOTES PAYABLES (Details)

NOTES PAYABLES (Details) - USD ($)	Jun. 30, 2016	Apr. 29, 2016
Notes Payable Details
Third party advanced to the Company		$ 50,000
Accruing interest at a rate		10.00%
Accrued interest on the note	$ 861

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (DETAILS) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES DETAILS
Render advice and reasonable assistance for a period of one year at a monthly fee	$ 0
Consulting fees incurred under this agreement totaled	0	$ 51,000
Office rental expense	$ 21,448

SUBSEQUENT EVENTS (DETAILS)

SUBSEQUENT EVENTS (DETAILS) - USD ($)	Aug. 16, 2016	Aug. 15, 2016	Jul. 22, 2016
Subsequent Events Details
Company entered into subscription agreements for the sale of shares of Common Stock	220,000		220,000
Company entered into subscription agreements for the sale of shares of Common Stock par value	$ 0.50		$ 0.50
Company entered into subscription agreements for the sale of shares of Common Stock for aggregate proceeds	$ 110,000		$ 110,000
Shares have been issued		200,000