Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | BLACKBOXSTOCKS INC. | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
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 | 23,110,000 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 570,940 | $ 703,638 |
Accounts receivable | 900 | 1,567 |
Advances, related party (Note 5) | 36,474 | 42,690 |
Prepaid expenses | 236,300 | 236,300 |
Prepaid expenses, related parties (Note 5) | 36,700 | 36,700 |
Total current assets | 881,314 | 1,020,895 |
Property: | ||
Computer and related equipment, net of depreciation of $7,330 and $5,336 at March 31, 2017 and December 31, 2016, respectively | 17,552 | 16,664 |
Total property | 17,552 | 16,664 |
Total Assets | 898,866 | 1,037,559 |
Current liabilities: | ||
Accounts payable | 121,327 | 72,279 |
Unearned subscriptions | 21,740 | 17,682 |
Total current liabilities | 143,067 | 89,961 |
Commitments and contingencies (Note 6) | ||
Stockholders' Equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 0 | 0 |
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 5,000,000 issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 5,000 | 5,000 |
Common stock, $0.001 par value, 100,000,000 shares authorized: 23,110,000 issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 23,110 | 23,110 |
Additional paid in capital | 2,352,332 | 2,352,332 |
Accumulated deficit | (1,624,643) | (1,432,844) |
Total Stockholders' Equity | 755,799 | 947,598 |
Total Liabilities and Stockholders' Equity | $ 898,866 | $ 1,037,559 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Parentheticals | ||
Computer and related equipment depreciation | $ 7,330 | $ 5,336 |
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 | 23,110,000 | 23,110,000 |
Common stock, shares outstanding | 23,110,000 | 23,110,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Revenue | $ 127,612 | $ 0 |
Cost of operations | 96,280 | 0 |
Gross margin | 31,332 | 0 |
Expenses: | ||
Software development costs | 28,138 | 46,872 |
General and administrative | 192,551 | 88,834 |
Depreciation | 1,994 | 1,289 |
Total operating expenses | 222,683 | 136,995 |
Operating loss | (191,351) | (136,995) |
Interest expense | 448 | 0 |
Loss before income taxes | (191,799) | (136,995) |
Income taxes | 0 | 0 |
Net loss | $ (191,799) | $ (136,995) |
Weighted average number of common shares outstanding - basic | 23,110,000 | 20,376,213 |
Net loss per share - basic | $ (0.01) | $ (0.01) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (191,799) | $ (136,995) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 1,994 | 1,289 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 667 | 0 |
Prepaid expenses | 0 | 3,414 |
Prepaid expenses, related parties | 0 | 43,486 |
Accounts payable | 49,048 | 42,509 |
Unearned subscriptions | 4,058 | 0 |
Net cash used in operating activities | (136,032) | (46,297) |
Cash flows from investing activities | ||
Purchases of fixed assets | (2,882) | 0 |
Cash advances from shareholder | 20,000 | 0 |
Cash repayments to shareholder | (13,784) | 0 |
Net cash provided by investing activities | 3,334 | 0 |
Cash flows from financing activities | ||
Net cash provided by financing activities | 0 | 0 |
Net increase(decrease) in cash | (132,698) | (46,297) |
Cash - beginning of period | 703,638 | 60,286 |
Cash - end of period | 570,940 | 13,989 |
Supplemental disclosure-Non-cash investing and financing activities: | ||
Cancellation of common shares | $ 0 | $ 835 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2017 | |
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 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. As a result of the Exchange Agreement transaction, the Tiger Trade stockholders acquired approximately 88.64% of the issued and outstanding capital stock of the Company, and Tiger Trade became a wholly owned subsidiary of the Company. 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. 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. The Company is in the business of developing and marketing a real time analytical platform and subscription based service (the Blackbox System) to serve as a tool for day traders and swing traders on the OTC Markets Group, Inc. (OTC), NYSE, AMEX and NASDAQ markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. 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 Companys 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, 2017. Basis of Presentation - The accompanying financial statements were prepared in conformity with GAAP. Use of Estimates Recently Issued Accounting Pronouncements Property and Equipment The Companys property and equipment is being depreciated on the straight-line basis over an estimated useful life of three years. Earnings or (Loss) Per Share Revenue Recognition Software Development Costs |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2017 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 3. STOCKHOLDERS EQUITY The Company has 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). 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 Companys Common Stock. On December 1, 2015, the Company entered into an Exchange Agreement with Tiger Trade and its Stockholders (Note 1). Under the terms and conditions of the Exchange 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 Series A Convertible 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 shares of 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 Companys Common Stock. During the year ended December 31, 2016, the Company issued a total of 3,310,000 shares of Common Stock at a cash price of $0.50 per share for a total of $1,655,000. However, the Company subsequently honored a request by one investor to rescind the purchase of 200,000 of such shares of Common Stock on October 28, 2016. |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 3 Months Ended |
Mar. 31, 2017 | |
STOCK OPTIONS AND WARRANTS | |
STOCK OPTIONS AND WARRANTS | 4. STOCK OPTIONS AND WARRANTS Costs attributable to the issuance of stock options and share purchase warrants are measured at fair value at the date of issuance and offset with a corresponding increase in Additional Paid in Capital at the time of issuance. When the options or warrants are exercised, the receipt of consideration is an increase in stockholders equity. There was no stock option or warrant activity during the three months ended March 31, 2017 and 2016 and as of March 31, 2017, no options or warrants were outstanding. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS During the three months ended March 31, 2017, Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company was advanced $13,784 by the Company and repaid $20,000. The remaining advance of $36,474 is unsecured and bears no interest. During the three months ended March 31, 2017 and 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 1 and 3), for application development services of the Companys Blackbox System technology. During the three months ended March 31, 2017 and 2016, Karma was paid $22,500 and $7,500 for services, respectively. G2 International, Inc. (G2), which does business as IPA Tech Group (IPA), 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 Companys controlling stockholder. In 2016 G2/IPA refunded $117,800 of prepayments for marketing services leaving a prepaid balance of $36,700 as of March 31, 2017. At March 31, 2017 and 2016, there were no accounts payable owed to G2. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES 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 three months ended March 31, 2017 and 2016 we incurred $11,814 and $10,676, respectively, 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 Companys financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies (Policies) | |
Basis of Presentation | Basis of Presentation - The accompanying financial statements were prepared in conformity with GAAP. |
Use of Estimates | Use of Estimates |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
Property and Equipment | Property and Equipment The Companys property and equipment is being depreciated on the straight-line basis over an estimated useful life of three years. |
Earnings or (Loss) Per Share | Earnings or (Loss) Per Share |
Revenue Recognition | Revenue Recognition |
Software Development Costs | Software Development Costs |
ORGANIZATION (Details)
ORGANIZATION (Details) | Dec. 02, 2015 |
ORGANIZATION Details | |
Issued and outstanding capital stock of the Company | 88.64% |
EARNINGS OR (LOSS) PER SHARE (D
EARNINGS OR (LOSS) PER SHARE (DETAILS) - shares | Mar. 31, 2017 | Mar. 31, 2016 |
EARNINGS OR (LOSS) PER SHARE DETAILS | ||
Potential dilution common shares | 5,000,000 | 5,000,000 |
CAPITAL STOCK TRANSACTION (Deta
CAPITAL STOCK TRANSACTION (Details) - $ / shares | Mar. 31, 2017 | Feb. 10, 2016 | 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 | ||
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% |
CAPITAL STOCK TRANSACTION NARRA
CAPITAL STOCK TRANSACTION NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
CAPITAL STOCK TRANSACTION NARRATIVE Details | |
Issued a total shares of Common Stock | 3,310,000 |
Issued a total shares of Common Stock at a cash price per share | $ / shares | $ 0.50 |
Issued a total shares of Common Stock for a total | $ | $ 1,655,000 |
Investor to rescind the purchase shares of Common Stock | 200,000 |
RELATED PARTY TRANSACTION (Deta
RELATED PARTY TRANSACTION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
RELATED PARTY TRANSACTION Details | ||
Chief Financial Officer and Secretary of the Company was advanced | $ 13,784 | |
Chief Financial Officer and Secretary of the Company and repaid | 20,000 | |
Remaining advance is unsecured and bears no interest | 36,474 | |
Karma was paid for services | 22,500 | $ 7,500 |
Refunded of these prepayments | $ 0 | $ 69,250 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (DETAILS) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES DETAILS | ||
Office rental expense | $ 11,814 | $ 10,676 |