Blackboxstocks Files Form S-4 for Evtec Acquisition
Blackboxstocks (NASDAQ: BLBX) filed Form S-4 on May 13, 2024, for its planned acquisition of Evtec Aluminium SEC and Nasdaq approvals are pending. In the first quarter of 2024, Blackbox reported revenues of $649,420, a decrease from $859,004 in Q1 2023. The average member count dropped by 17.2% year-over-year to 2,944. However, operating expenses were cut by 51% to $1,155,428. Subsequently, the operating loss lessened by 56% to $863,966. The company plans to launch a new product, StockNanny, in June 2024. CEO Gust Kepler emphasized stabilization in membership and ongoing strategic initiatives.
- Operating expenses decreased by 51% to $1,155,428 in Q1 2024 compared to $2,358,177 in Q1 2023.
- Operating loss reduced by 56% to $863,966 in Q1 2024 from $1,946,804 in Q1 2023.
- Stock-based compensation significantly declined from $768,126 in Q1 2023 to $114,666 in Q1 2024.
- Filed Form S-4 for the acquisition of Evtec Aluminium , showing progress in business expansion.
- Launch of a new product, StockNanny, expected in June 2024, indicating future revenue streams.
- Total revenue in Q1 2024 was $649,420, a decline from $859,004 in Q1 2023.
- Average member count fell by 17.2% year-over-year to 2,944.
- The acquisition of Evtec Aluminium has experienced delays.
Insights
Blackboxstocks' financial results for Q1 2024 show a mixed performance. The company's total revenue decreased by
The reduction in stock-based compensation from
The acquisition of Evtec Aluminium Ltd. could diversify the company's revenue streams, but the delay in approval may create uncertainty in the short term. Investors should monitor regulatory progress closely. Overall, the financials indicate a cautious optimism, balancing cost cuts and strategic initiatives against a backdrop of revenue decline.
The acquisition of Evtec Aluminium Ltd. is a critical move for Blackboxstocks, signaling a strategic diversification into the automotive sector. This vertical integration can potentially open new revenue streams and mitigate risks associated with being solely a fintech platform. The company's previous acquisition of a stake in Evtec Automotive Ltd. indicates a long-term strategy to consolidate its position within the automotive industry, possibly benefiting from synergies between the two entities.
One key aspect for investors to watch is the integration process and how well Blackboxstocks can leverage Evtec Aluminium's capabilities. The automotive sector, particularly aluminium components, is integral to the evolving electric vehicle (EV) market, which could provide substantial growth opportunities if managed effectively. However, the extended timeline for completing this acquisition may reflect underlying complexities or regulatory hurdles, posing a potential short-term risk.
In conclusion, while the immediate financial benefits may not be apparent, the long-term strategic vision behind these acquisitions could be rewarding. Investors should maintain a long-term perspective and consider the potential scale and market reach post-acquisition.
The development and upcoming release of the new portfolio alert product, StockNanny, represents a significant advancement for Blackboxstocks' tech capabilities. This product could enhance user engagement and retention by offering personalized and real-time portfolio management alerts. Given the competitive nature of fintech, innovative solutions like StockNanny are essential for maintaining and growing the user base.
From a technology standpoint, the successful launch and adoption of StockNanny could position Blackboxstocks as a more comprehensive platform for stock and options traders, differentiating it from competitors. However, the efficacy of StockNanny will depend on its real-time analytical capabilities, user interface and overall user experience. Investors should look out for user feedback and adoption rates post-launch as indicators of its impact.
This tech initiative also suggests that Blackboxstocks is not solely relying on acquisitions for growth but is also investing in in-house innovation, which is important for long-term sustainability. If successful, this could lead to higher user satisfaction and potentially increased revenue through additional subscription services or enhanced user engagement.
Reports First Quarter Financial Results for Fintech Operations
DALLAS, May 16, 2024 (GLOBE NEWSWIRE) -- 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, announced that it filed its Form S-4 on May 13, 2024, for its acquisition of Evtec Aluminium Ltd. and today reported its financial results for the first quarter ended March 31, 2024.
The filing of the S-4 was a significant milestone in the Company’s planned acquisition of Evtec Aluminium Ltd. Pending SEC and Nasdaq approval, the Company expects to consummate the merger as soon as possible.
First Quarter Financial and Operating Highlights:
- Total revenue for the first quarter of 2024 was
$649,420 as compared to$859,004 for the same period in 2023. - Average member count of 2,944 was
17.2% lower than the first quarter of 2023 but approximately equal to the fourth quarter of 2023. - Operating expenses decreased by
51% to$1,155,428 in the first quarter of 2024 compared to$2,358,177 for the same period in 2023. Stock based compensation declined from$768,126 in the first quarter of 2023 to$114,666 in the first quarter of 2024. - Operating loss decreased by
56% to$863,966 for the first quarter of 2024 as compared to$1,946,804 in the first quarter of 2023. - Filed a Registration Statement on Form S-4 including an Information Statement/Prospectus regarding the acquisition of Evtec Aluminium Limited on May 13, 2024
Gust Kepler, Chief Executive Officer, commented, “The significant reduction in our operating loss for the first quarter reflects the stabilization of our membership over the past several quarters within the core business as well as lower operating expenses.
- We have completed development for our new portfolio alert product StockNanny, which we are planning to launch in June of this year.
- We acquired
13% of Evtec Automotive Ltd., the sister company to Evtec Aluminium in Q2 2023, which we may seek to acquire following the acquisition of the Evtec Aluminium Ltd. as part of a larger roll-up strategy. - The acquisition of Evtec Aluminium Ltd. has taken longer than expected, however we are pleased to announce that we have an S-4 filed and are working diligently to complete this transaction.”
Gust Kepler continued, “Despite 2023 being a challenging year for our company, we have pivoted swiftly to implement multiple strategic and operational initiatives for 2024 and I am confident that our stockholders will be well rewarded for their faith in our company.”
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 May 15, 2024, 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 over 40 countries; current subscription fees are
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.
Contacts:
PCG Advisory
Jeff Ramson
jramson@pcgadvisory.com
-Tables Follow-
| Blackboxstocks Inc. | |||||||||
| Summary Balance Sheet Data | |||||||||
| As of March 31, 2024 and December 31 2023 | |||||||||
| March 31, 2024 | December 31, 2023 | ||||||||
| Assets | |||||||||
| Cash | $ | 114,968 | $ | 472,697 | |||||
| Receivables | 16,194 | 493,212 | |||||||
| Other current assets | 103,275 | 41,580 | |||||||
| Total current assets | $ | 234,437 | $ | 1,007,489 | |||||
| Property and equipment, net | $ | 377,418 | $ | 396,651 | |||||
| Investments | 8,424,000 | 8,424,000 | |||||||
| Total assets | $ | 9,035,855 | $ | 9,828,140 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 879,996 | $ | 842,404 | |||||
| Unearned subscriptions | $ | 1,135,571 | $ | 1,295,514 | |||||
| Other current liabilities | $ | 161,633 | $ | 66,431 | |||||
| Note payable, current portion | $ | 29,094 | $ | 28,064 | |||||
| Total current liabilities | $ | 2,206,294 | $ | 2,232,413 | |||||
| Long term liabilities: | |||||||||
| Note payable, net of current portion | $ | 3,291 | $ | 11,550 | |||||
| Lease liability right of use, long term | $ | 278,555 | $ | 287,417 | |||||
| Total long term liabilities | $ | 281,846 | $ | 298,967 | |||||
| Total stockholders' equity | $ | 6,547,715 | $ | 7,296,760 | |||||
| Total liabilities and stockholders' equity | $ | 9,035,855 | $ | 9,828,140 | |||||
| Blackboxstocks Inc. | |||||||
| Summary Statements of Operations | |||||||
| For the Three Months Ended March 31, 2024 and 2023 | |||||||
| For the three months ended | |||||||
| March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | $ | 649,420 | $ | 859,004 | |||
| Cost of revenue | 357,958 | 447,631 | |||||
| Gross margin | $ | 291,462 | $ | 411,373 | |||
| Operating expenses: | 1,155,428 | 2,358,177 | |||||
| Operating loss | $ | (863,966 | ) | $ | (1,946,804 | ) | |
| Other income | (255 | ) | (46,436 | ) | |||
| Net loss | $ | (863,711 | ) | $ | (1,900,368 | ) | |
| Adjusted EBITDA | $ | (740,927 | ) | $ | (1,168,160 | ) | |
| Adjusted EBITDA Calculation | |||||||
| Net loss | $ | (863,711 | ) | $ | (1,900,368 | ) | |
| Adjustments: | |||||||
| Depreciation and amortization expense | 8,373 | 10,518 | |||||
| Interest and financing expense | 93 | 165 | |||||
| Investment income | (348 | ) | (46,601 | ) | |||
| Stock based compensation | 114,666 | 768,126 | |||||
| Total adjustments | $ | 122,784 | $ | 732,208 | |||
| Adjusted EBITDA | $ | (740,927 | ) | $ | (1,168,160 | ) | |
FAQ
What is the significance of Blackboxstocks filing Form S-4?
How did Blackboxstocks perform financially in the first quarter of 2024?
What are some recent developments at Blackboxstocks?
How have Blackboxstocks' operating expenses changed?
What was the average member count for Blackboxstocks in Q1 2024?
What is StockNanny?
