Blackboxstocks (BLBX) 10-Q 20 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 20, 2018
Document And Entity Information
Entity Registrant Name	BLACKBOXSTOCKS INC.
Entity Central Index Key	1,567,900
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		23,000,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 23,933	$ 8,155
Accounts receivable	3,119	5,111
Prepaid expenses	196,629	202,978
Prepaid expenses, related parties (Note 5)	36,700	36,700
Discount on notes payable (Note 6)	14,560	0
Total current assets	274,941	252,944
Property:
Computer and related equipment, net of depreciation of $21,868 and $14,608 at June 30, 2018 and December 31, 2017, respectively	42,182	21,156
Software development, net of amortization of $5,063 and $2,813 at June 30, 2018 and December 31, 2017, respectively	3,937	6,187
Total property	46,119	27,343
Total Assets	321,060	280,287
Current liabilities:
Accounts payable	442,382	368,108
Accrued salary	3,921	0
Unearned subscriptions	46,379	27,361
Unearned revenue	260,000	0
Other liabilities	35,081	0
Advances, related party (Note 5)	103,240	56,463
Notes payable, short term	42,465	0
Total current liabilities	933,468	451,932
Commitments and contingencies (Note 6)
Notes payable, long term	5,755	0
Stockholders' Deficit:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	0	0
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 5,000,000 issued and outstanding at June 30, 2018 and December 31, 2017, respectively	5,000	5,000
Common stock, $0.001 par value, 100,000,000 shares authorized: 23,000,000 issued and outstanding at June 30, 2018 and December 31, 2017, respectively	23,000	23,000
Additional paid in capital	2,494,942	2,494,942
Accumulated deficit	(3,141,105)	(2,694,587)
Total Stockholders' Deficit	(618,163)	(171,645)
Total Liabilities and Stockholders' Deficit	$ 321,060	$ 280,287

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accumulated depreciation	$ 21,868	$ 14,608
Accumulated software amortization	$ 5,063	$ 2,813
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	23,000,000	23,000,000
Common stock, shares outstanding	23,000,000	23,000,000
Series A Preferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	5,000,000	5,000,000
Preferred stock, shares outstanding	5,000,000	5,000,000
Series BPreferred Stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Total revenues	$ 147,375	$ 196,945	$ 290,670	$ 324,558
Cost of operations	150,738	133,192	318,013	229,472
Gross margin	(3,363)	63,753	(27,343)	95,086
Expenses:
Software development costs	30,224	204,590	14,800	232,728
General and administrative	197,303	208,340	382,303	400,891
Depreciation and amortization	5,271	2,777	9,510	4,771
Total operating expenses	232,798	415,707	406,613	638,390
Operating loss	(236,161)	(351,954)	(433,956)	(543,304)
Interest expense	7,794	518	12,541	966
Other expense	21	0	21	0
Loss before income taxes	(243,976)	(352,472)	(446,518)	(544,270)
Income taxes	0	0	0	0
Net loss	$ (243,976)	$ (352,472)	$ (446,518)	$ (544,270)
Weighted average number of common shares outstanding - basic	23,000,000	23,110,000	23,000,000	23,110,000
Net loss per share - basic	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.02)
Subscriptions [Member]
Revenue:
Total revenues	$ 147,375	$ 196,945	$ 290,670	$ 324,558

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (446,518)	$ (544,270)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	9,510	4,771
Amortization of note discount	11,601	0
Changes in operating assets and liabilities:
Accounts receivable	1,992	1,087
Prepaid expenses	6,349	(13,957)
Accounts payable	74,274	136,404
Accrued salary	3,921	0
Unearned subscriptions	19,018	1,803
Unearned revenue	260,000	0
Unearned licensing fees	0	150,000
Other liabilities	35,081	0
Net cash used in operating activities	(24,772)	(264,162)
Cash flows from investing activities
Purchases of property	(19,977)	(16,018)
Net cash used in investing activities	(19,977)	(16,018)
Cash flows from financing activities
Proceeds from notes payable	48,015	0
Repayment of notes payable	(34,265)	0
Cash advances from shareholder	108,000	20,000
Cash repayments to shareholder	(61,223)	(56,988)
Net cash provided by (used in) financing activities	60,527	(36,988)
Net increase (decrease) in cash	15,778	(317,168)
Cash - beginning of period	8,155	703,638
Cash - end of period	23,933	386,470
Supplemental disclosure-Non-cash investing and financing activities:
Acquisition of equipment in exchange for note payable	$ 8,309	$ 0

1. Organization

1. Organization	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Blackboxstocks Inc. (the “Company”) 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 the Tiger Trade entity 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 web and mobile based analytical software tools as a subscription based software as a service (the “Blackbox System”) to serve as a tool for day traders and swing traders on various securities exchanges and markets, including the OTC Markets Group, Inc. (“OTC”), the New York Stock Exchange, the NYSE MKT, LLC (formerly the American Stock Exchange), the NASDAQ markets, the Hong Kong Stock Exchange (“HKEX”), the Shanghai Stock Exchange (“SSE”) and the Shenzhen Stock Exchange (“SZSE”).

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
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 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, 2018. Basis of Use of Estimates Cash Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No.2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases Property and Equipment The Company’s property and equipment is being depreciated on the straight-line basis over an estimated useful life of three years. Earnings or (Loss) Per Share Share-Based Payment Compensation - Stock Compensation Revenue Recognition Software Development Costs Prepaid Expenses Contingencies If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

3. Stockholders' Deficit

3. Stockholders' Deficit	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Deficit	3. Stockholders’ Deficit 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 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 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 Company’s 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. On September 28, 2017, the Company entered into a Stock Repurchase and Cancellation Agreement with Gust Kepler, a Director and the President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company, pursuant to which the Company repurchased 110,000 shares of Common Stock of the Company in exchange for cancellation and forgiveness of debt obligations owed by Mr. Kepler to the Company for advances in the aggregate amount of $55,000.

4. Stock Options and Warrants

4. Stock Options and Warrants	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
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 six months ended June 30, 2018 and 2017 and as of June 30, 2018, no options or warrants were outstanding.

5. Related Party Transactions

5. Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	5. Related Party Transactions During the six months ended June 30, 2018, Gust C. Kepler, a Director, President, Chief Executive Officer, Chief Financial Officer and Secretary of the Company advanced $108,000 to the Company and he was repaid $61,223. The balance remaining of $103,240 owed to Mr. Kepler is unsecured and bears no interest. During the six months ended June 30, 2018 and 2017, the Company engaged the services of Karma Black Box LLC (“Karma”), whose two stockholders became Company stockholders as a result of the Exchange Agreement (Note 1 and 3), for application development services of the Company’s Blackbox System technology. During the six months ended June 30, 2018 and 2017, Karma was paid $27,000 and $58,500 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 Company’s controlling stockholder. In 2016 G2/IPA refunded $117,800 of prepayments for marketing services leaving a prepaid balance of $36,700 as of June 30, 2018. At June 30, 2018 and 2017, there were no accounts payable owed to G2. On August 9, 2017, we entered into a License Agreement (the “BBTR License”) with EIGH8T TECHNOLOGIES INC. (also known as Black Box Traders and referred to herein as “BBTR”), a British Virgin Island registered company, for the development, customization and license to use and sublicense a version of the Blackbox System (known as the “BBTR System”) with data from the HKEX, SSE and SZSE. Stephen Chiang, an individual citizen of Singapore who holds 3,000,000 of Company Common Stock (approximately 13% of the issued and outstanding Common Stock), is a principal of BBTR. The BBTR license was terminated effective November 13, 2017. Under the terms of the BBTR License the Company received $500,000 of licensing revenue during the year ended December 31, 2017.

6. Notes Payable

6. Notes Payable	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Notes Payable	6. Notes Payable On January 30, 2018 a third party advanced $29,370 to the Company in exchange for a one hundred and eighty-seven day quasi factoring financing arrangement, to be repaid in one hundred and thirty-two (132) daily installments of $325 through August 6, 2018. The related note discount of $13,530 is being amortized as interest expense over the term of the agreement. On June 20, 2018, the third party advanced an additional $18,645 in exchange for an extension of the repayment terms, extending the repayment period for one hundred and eighty-seven days (187) in installments of $318 through December 24, 2018. The related note discount of $12,631 is being amortized as interest expense over the new term of one hundred and eighty-seven days. Amortized interest recorded for the period ended June 30, 2018 is $11,601.

7. Commitments and Contingencie

7. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. 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. On August 28, 2017, the Company acquired and was assigned all right, title and interest in the lease from G2. On September 19, 2017 the Company amended the lease to expand its space by approximately 336 square feet for a total of 1,838 square feet and extended the expiration date to September 30, 2022. During the six months ended June 30, 2018 and 2017 we incurred $30,033 and $23,203, respectively, in office rental expense. The Company received advance payments from prospective customers anticipating a new subscription service. On June 18, 2018 the Company entered into a letter agreement with IC Ventures, Inc. (“ICV”), pursuant to which the Company retained ICV to provide strategic advisory services for marketing and financial matters relating to investment and acquisition issues which services are anticipated to commence July 1, 2018. The agreement provides for a twenty-four month term and that ICV will be compensated monthly in Company common stock valued at $20,000 with such compensation to be increased by $15,000 for a twelve month period during the term, payable in cash, beginning on the earlier of (i) the election by the Company or (ii) the sixth full month following the execution of the agreement. The agreement also provides that ICV will be issued 920,000 shares of the Company’s common stock if listing on NASDAQ is achieved during the term of the agreement and ICV shall be paid a closing fee of 1.5% of gross proceeds or a minimum of $500,000 if the Company should be acquired during the term of the agreement or within 12 months of the termination of the agreement. 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.

2. Summary of Significant Acc13

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Use of Estimates	Use of Estimates
Cash	Cash
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No.2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases
Property and Equipment	Property and Equipment The Company’s 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
Share-Based Payment	Share-Based Payment Compensation - Stock Compensation
Revenue Recognition	Revenue Recognition
Software Development Costs	Software Development Costs
Prepaid Expenses	Prepaid Expenses
Contingencies	Contingencies If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

2. Summary of Significant Acc14

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Potential dilution of common stock shares if Series A preferred stock is converted	5,000,000	5,000,000
Useful live of property and equipment	3 years
Share based compensation	$ 0	$ 0

3. Stockholders' Equity (Detail

3. Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Common Stock [Member]
Stock issued new, shares		3,310,000
Stock issued new, value		$ 1,655,000
Kepler [Member]
Stock cancelled and forfeited, shares		835,010
Debt forgiven, amount forgiven	$ 55,000
Debt forgiven, stock forfeited	110,000
One Investor [Member]
Recission of shares in exchange for cash, shares		200,000

4. Stock Options and Warrants (

4. Stock Options and Warrants (Details Narrative) - shares	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options outstanding	0	0
Warrants outstanding	0	0

5. Related Party Transactions (

5. Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Proceeds from related party	$ 108,000	$ 20,000
Repayment to related party	61,223	56,988
Gust Kepler [Member]
Proceeds from related party	108,000
Repayment to related party	61,223
Due to related party	103,240
Karma Black Box [Member]
Professional fees	27,000	$ 58,500
Eigh8t Technologies [Member]
Licensing revenue			$ 500,000
G 2 Intl [Member]
Repayment of prepaid deposit				$ 117,800
Prepaid expense for marketing	$ 36,700

6. Notes Payable (Details Narra

6. Notes Payable (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Proceeds from note payable	$ 48,015	$ 0
Discount on note	14,560		$ 0
Interest expense debt	$ 11,601
Note payable [Member]
Debt issuance date	Jan. 30, 2018
Proceeds from note payable	$ 29,370
Discount on note	$ 13,530
Note payable [Member]
Debt issuance date	Jun. 20, 2018
Proceeds from note payable	$ 18,645
Debt maturity date	Dec. 24, 2018

7. Commitments and Contingenc19

7. Commitments and Contingencies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 30,033	$ 23,203