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10-Q - BLACKBOXSTOCKS INC. (0001567900) (Filer)

Thu, May 15, 4:03 PM (32 days ago)

### Blackboxstocks Inc. (BLBX) Q1 2025 Financial Summary **Company Overview:** Blackboxstocks Inc. (BLBX) is a financial technology and social media platform offering real-time proprietary analytics and news for stock and options traders. The company's web-based software employs predictive technology enhanced by artificial intelligence to identify market volatility and unusual activity. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Total revenue decreased by 9.6% to $587,078 from $649,420 due to fewer subscribers and slightly lower revenue per subscriber. - **Gross Margin:** Gross margin decreased to 41.6% from 44.9%, primarily due to higher costs related to data and news feed expenses. - **Operating Expenses:** Operating expenses decreased by 2.1% to $1,131,741 from $1,155,428, with significant increases in professional fees related to the pending merger with REalloys. - **Net Loss:** Net loss was $829,133, slightly improved from $863,711 in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $643,730, compared to $353,803 in Q1 2024. Financing activities provided $726,605, primarily from the issuance of a debenture. **Key Financial Metrics:** - **Cash and Marketable Securities:** Increased to $215,346 from $17,036. - **Subscribers:** Average subscribers decreased to 2,707 from 2,996. - **Average Monthly Revenue per Subscriber:** Decreased to $69.22 from $72.19. **Operational Highlights:** - **Merger with REalloys:** The company is pursuing a merger with REalloys, expected to provide substantial capital and strategic benefits. The merger is subject to regulatory approvals and stockholder votes. - **Debt and Financing:** The company issued a debenture to Five Narrow Lane LP, raising $1,800,000, with an additional $500,000 expected upon SEC approval. - **Investments:** The company has investments in Evtec Group, which operates in the automotive parts supply industry. **Future Outlook:** - **Uncertainties:** The company faces significant uncertainties, including the completion of the merger with REalloys and the ability to raise additional capital. - **Strategic Initiatives:** The company is repositioning its marketing strategy and expects increased revenue from educational offerings. **Conclusion:** Blackboxstocks Inc. continues to face financial challenges, with a focus on strategic initiatives and potential mergers to secure its financial future. The company's ability to raise capital and complete the merger with REalloys will be critical to its ongoing operations and growth.