UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File No.

001-41051

BLACKBOXSTOCKS INC.

(Exact name of registrant as specified in its charter)

Nevada

45-3598066

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

5430 LBJ Freeway, Suite 1485, Dallas, Texas	75240
5430 LBJ Freeway Suite 1485, Dallas Texas	75240
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code

(972) 726-9203

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001	BLBX	The NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect a correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates (2,~~632~~679,~~689~~ 089 shares of common stock) as of June 2830, ~~2024~~2025 was $715,~~108~~779,~~260~~834 (computed by reference to the price at which the common equity was last sold ($25.7089) as of the last business day of the registrant’s most recently completed second fiscal quarter). For purposes of the foregoing calculation only, directors, executive officers, and holders of 10% or more of the issuer’s common capital stock have been deemed affiliates.

As of ~~March~~February 2019, ~~2025~~2026 4, 3480,~~602,874~~437 shares of common stock, par value $0.001 per share, were issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

None.

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TABLE OF CONTENTS

		Page
INTRODUCTORY COMMENT		1
FORWARD LOOKING STATEMENTS		1
PART I		2
Item 1.	Business	182
Item 1A.	Risk Factors	18
Item 1B.	Unresolved Staff Comments	3033
Item 1C.	Cybersecurity	3033
Item 2.	Properties	3033
Item 3.	Legal Proceedings	3033
Item 4.	Mine Safety Disclosures	3033
PART II		3134
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matter and Issuer Purchases of Equity Securities	3134
Item 6.	Selected Financial Data	3235
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3235
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	3645
Item 8.	Financial Statements and Supplementary Data	3645
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	3645
Item 9A.	Controls and Procedures	3746
Item 9B.	Other Information	3847
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	3847
PART III		3948
Item 10.	Directors, Executive Officers and Corporate Governance	3948
Item 11.	Executive Compensation	4352
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	4655
Item 13.	Certain Relationships and Related Transactions, and Director Independence	4857
Item 14.	Principal Accountant Fees and Services	4857
PART IV		4958
Item 15.	Exhibits and Financial Statement Schedules	4958
Item 16.	Form 10-K Summary	5160
SIGNATURES		5261

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INTRODUCTORY ~~COMMENT~~COMMENTS

Throughout this Annual Report on Form 10-K (the “Report”), the terms “we,” “us,” “our,” “Blackbox,” “Blackboxstocks,” or the “Company” refers to Blackboxstocks Inc., a Nevada corporation.

“Blackboxstocks,” the Blackboxstocks design logo and the trademark or service marks of Blackboxstocks, ~~Inc.~~ appearing in this Report are the property of ~~Blackboxstocks,~~Blackbox.io Inc., the Company’s wholly owned operating subsidiary (“Blackbox.io” or “Blackbox Operating”). Trade names, trademarks and service marks of other companies that may appear in this report are the property of their respective holders. We have omitted the ® and ™ designations, as applicable, for the trademarks used in this Report.

FORWARD LOOKING STATEMENTS

When used in this Report, the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “intend,” and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding events, conditions and financial trends which may affect the Company’s future plans of operations, business strategy, operating results and financial position. Such statements are not guarantees of future performance and are subject to risks and uncertainties described herein and actual results may differ materially from those included within the forward-looking statements. Additional factors are described in the Company’s other public reports and filings with the Securities and Exchange Commission (the “SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

This Report contains certain estimates and plans related to us and the industry in which we operate, which assume certain events, trends and activities will occur and the projected information based on those assumptions. We do not know that all of our assumptions are accurate. If our assumptions are wrong about any events, trends and activities, then our estimates for future growth for our business may also be wrong. There can be no assurance that any of our estimates as to our business growth will be achieved.

The following discussion and analysis should be read in conjunction with our financial statements and the notes associated with them contained elsewhere in this Report. This discussion should not be construed to imply that the results discussed in this Report will necessarily continue into the future or that any conclusion reached in this Report will necessarily be indicative of actual operating results in the future. The discussion represents only the best assessment of management.

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PART I

Item 1.

Business

Overview ~~of Business~~

WeBlackbox ~~have~~has developed a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels combined with a social media element and educational materials. Our web-based platform and native iOS and Android applications (the “Blackbox System”) employ “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. We continuously scan the New York Stock Exchange (“NYSE”), NASDAQ, Chicago Board Options Exchange (the “CBOE”) and other options markets, analyzing over 10,000 stocks and over 1,500,000 options contracts multiple times per second. We provide our subscribing members with a fully interactive audio and text based social media platform that is integrated into our dashboard, enabling our members to exchange information and ideas quickly and efficiently through a common network. We believe that the Blackbox System is a disruptive financial technology platform that uniquely integrates proprietary analytics with a community supported by a broadcast enabled social media system which connects traders of all kinds worldwide on an intuitive and user-friendly platform.

Our goal is to provide retail investors with the type of sophisticated trading tools that were previously available only to large institutional hedge funds and high-frequency traders together with an interactive community of traders and investors of all levels at an affordable price. We also strive to provide these trading tools in a user-friendly format that does not require complicated configurations by the user.

We employ a subscription-based Software as a Service (“SaaS”) business model and maintain a growing base of members that spans over 40 countries. We currently offer monthly subscriptions to our platform for between $9959 and $149 per month and annual subscriptions for between $~~959~~566 and $1,430 per year.

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~~Our~~Blackbox Mission

Our mission is to provide powerful proprietary analytics in a simple and concise format to level the playing field for the average retail investor. We strive to educate our members through our live trading community as well as our scheduled, calendared classes with live instructors. We want every member to feel they are part of a team with the goal of improving financial literacy. We believe that we are the antithesis of the “trading guru” platforms that feature a trading or investing expert that charges for what are often expensive courses. We do not charge for our classes. We do not upsell our members. All education and community programs are free with the subscription to our platform.

Revenue Model

We generate revenue from a software as a service (or SaaS) model whereby members pay either an annual or monthly fee for a subscription to our platform. We dohave ~~not~~recently ~~currently~~changed ~~offer~~our ~~more~~pricing ~~than~~model ~~one~~to ~~level~~a oftiered ~~subscription~~pricing ~~with~~platform ~~varying~~that ~~levels~~is ofcomprised ~~features.~~four ~~All~~different ~~members~~products ~~have~~with ~~full~~either ~~access~~monthly toor ~~all~~annual ~~of the features and educational resources of our platform~~subscriptions.

Monthly subscriptions are currently priced at $99 and annual subscriptions are currently priced at $959 (a discount of $241). We occasionally offer gift cards and promotional discounts on our subscriptions.

Options Basic	Options Plus	Equities Plus	Equities and Options Premium
$59 monthly $566.40 annual	$79 per monthly $758.40 annual	$89 monthly $854.40 annual	$149 per month $1,430,.40 annual

Real-time Options Flow Algo-based Options Alerts Institutional-grade Charting Daily Options OI changes Options Volume Ratio Scanner Options Heatmap Bullish / Bearish Options Flow Most Active Calls & Puts Real-time News Analyst Ratings Watch List Education Program BlackBox Mobile App	Everything in Basic PLUS Dark Pool Data (real-time & historical) Dark Pool Volume Profile Chart Study Multiple Live Options Trading Rooms Team Trades with Entries & Exits Real-time Net Options Delta and Gamma Exposure Exclusive Chart Studies GoNoGo Trend Study Historical Options Flow Data Historical Options Volume, OI, & Volatility Dashboards Premarket, Post Market, & Market Scanners Volume Ratio Scanner Customizable Alert Notifications and Alert Stream Dynamic Discord Community Downloadable Data	Real-time Stock Data & Algo scanners Volatility Indicator (Level 2 driven) Volume Ratio Scanner Premarket, Post Market, & Market Scanner Top Gainers & Top Decliners Dark Pool Data (real-time and historical) Dark Pool Volume Profile Chart Study Live Stock and Options Trading Rooms Team Trades with Entries & Exits Exclusive Chart Studies Real-time News, Analyst Ratings, & Watch List Education Program BlackBox Mobile App Dynamic Discord Community	Everything in Options Plus Everything in Equities Plus Algo-based Stock and Options Alerts Live Stock and Options Trading Rooms Team Trades with Entries and Exits Dark Pool Data (real-time and historical) Institutional-grade Charting with Exclusive Chart Studies Real-time News, Analyst Ratings, & Watch List Historical Stock and Options Data Education Program BlackBox Mobile App Real-Time Market Volatility Scanner Dynamic Discord Community Downloadable Data

InMonthly ~~March~~subscriptions ~~of 2025, we initiated a program to expand our product offerings through educational courses targeted to not only current Blackbox members but also non-members including former members. Courses~~ are ~~offered~~currently aspriced ~~either~~between ~~free~~$59 ~~webinars~~and or$149 asper ~~paid~~month ~~courses~~ and ~~consist~~annual ofsubscriptions ~~a series of classes on a specific topic regarding trading in equities or options markets. Free webinars~~ are ~~designed~~currently topriced ~~attract potential members by providing them introductions to trading strategies~~ at nobetween ~~cost~~$566.40 ~~We believe that members who participate in our educational offerings are more likely to be successful traders~~ and ~~therefore more likely to be longer term members~~$1,430.40. We occasionally offer ~~these~~gift ~~paid~~cards ~~courses for both members~~ and ~~non-members.~~promotional ~~These~~discounts ~~classes~~on ~~are~~our ~~expected to be offered to various level of traders (from novice to experienced) of either stocks or options and will become a significant additional revenue stream~~subscriptions..

WeIn ~~also~~March ~~intend~~of 2025, we initiated a program to ~~provide~~expand ~~products~~our ~~for~~product ~~professional~~offerings ~~traders~~through ~~and~~educational ~~institutions~~courses targeted to not only current Blackbox members but also non-members including ~~customs~~former ~~trading~~members. ~~solutions~~Courses are offered as either free webinars or as paid courses and ~~application~~consist ~~program~~of ~~interface~~a ~~API~~series ~~access~~of toclasses ~~our~~on ~~data~~a specific topic regarding trading in equities or options markets. WeFree ~~have~~webinars ~~not~~are ~~historically~~designed ~~focused~~to onattract ~~non-retail~~potential ~~traders~~members ~~but~~by weproviding them with introductions to trading strategies at no cost. We believe that wemembers ~~can~~who ~~offer~~participate ~~professional~~in our educational offerings are more likely to be successful traders ~~unique~~and ~~tools~~therefore ~~driven~~more ~~off~~likely ofto ~~the~~be ~~Blackbox~~longer ~~System~~term members. ~~Although~~We ~~the~~offer ~~professional~~these ~~market~~paid ~~may~~courses for both members and non-members. These classes are expected to be ~~more~~offered ~~difficult~~to various level of traders (from novice to ~~penetrate,~~experienced) weof ~~believe~~either ~~that~~stocks itor options and will ~~support~~become ~~high~~a ~~margins~~significant ~~and~~additional ~~greater~~revenue ~~stability.~~stream

We also intend to provide products for professional traders and institutions including customs trading solutions and application program interface API access to our data. We have not historically focused on non-retail traders but we believe that we can offer professional traders unique tools driven from the Blackbox System. Although the professional market may be more difficult to penetrate, we believe that it will support high margins and greater stability.

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Development of the Blackbox System

The Blackbox System was launched and made available for use to subscribing customers worldwide in September 2016. The initial product was a web-based platform focused on providing proprietary analytics and broadcast enabled social media for our community of members. In 2022, we launched full-featured native iOS and Android applications. Our product offering is comprised of three key elements: stock and options trading analytics, social media interaction, and educational programs and resources.

Stock and Options Trading Analytics

Our preconfigured dashboard is designed to be simple and easy to navigate and includes real-time proprietary alerts, stock and options scanners, financial news, institutional grade charting, and our proprietary analytics that can be utilized by traders of all levels. Our Blackbox System populates the stock and option data in real time and provides a wide range analytics and tools for traders. We offer many of the standard market tool features used by traders but differentiate our product with an array of unique proprietary features and derived data. These proprietary features are designed to filter out “market noise” and locate, in real-time, specific stocks and options that are likely to become market movers.

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Standard Features

(Including but not limited to)

	●	Real Time NYSE/NASDAQ Market Data
	●	Real Time OPRA Options Trade Data
	●	Real Time Streaming Market News Feed
	●	Symbol Specific News
	●	Options News and Upgrades/Downgrades
	●	Institutional Grade Charts
	●	Multi-Chart Capability
	●	Earnings and Dividend Dates
	●	Daily Advancers / Decliners Scanner
	●	User-specific Watch List

Proprietary and Advanced Features

(Including but not limited to)

	●	Real Time Algorithm Driven Stock & Options Alerts
	●	User Defined Symbol Specific Alert Criteria
	●	Options Flow Scanner / Heatmap
	●	Pre-Configured Pre/Post Market Scanners
	●	Stock and Option Volume Ratio Scanner
	●	Volatility Indicator

	●	Dark Pool Analysis
	●	Insider Buying Analysis
	●	Gamma Exposure
	●	FINRA Short Interest Analysis
	●	Net Options Delta and Dollar Flow
	●	Feature Rich Text- and Audio-based Social Media Components

~~Added~~Recent ~~in 2024~~Developments:

● ~~Enhanced~~Created ~~options~~a ~~flow~~new ~~downloads~~Blackbox Academy educational offering ● Migrated billing and subscription management to ~~only~~Stripe ~~include~~● ~~items~~Create onadditional product tiers for Options, Equities, and a ~~member’s~~combined ~~watch~~Premium ~~list~~product ● Made improvements and enhancements for our Discord integration ● Added additional security features and throttling of data access ● Added new intra-day rapid decline alert type ● Added new custom studies ● Migrated all mobile apps to a more modern framework and devops platform

● Additional open interest filters for exchange traded funds (ETFs)

● Added real-time go / no-go indicators to alert log

● Added ability to download options alert history

● Added additional security features

● Operational infrastructure enhancements

● New alerts on options when the trade has been closed

● Real time volatility indicator module

The Blackbox System includes several proprietary and advanced studies to help both options and stock traders. These studies encompass advanced data tools with real time data that are easy for traders of all levels to use.

Dark Pool Analysis: we added dark pool trades on our charting system that updates in real time. Dark Pools are privately organized financial forums or exchanges for securities trading. Using our system, traders can easily see levels where large institutions or funds are trading. The Dark Pool Volume Profile is an indicator that visually displays a Dark Pool transaction directly ononto to the chart. The Volume Profile bar is overlayed at the price level at which the Dark Pool transaction is executed. The length of the volume profile is a visual representation of the share size of the dark pool transaction. The Dark Pool Volume Profile will also display historical activity when you change the time frame.

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Insider Buying Analysis: we use the EDGAR portal to access all Form 4’s filed and update our charts where you find insiders buying stocks. This is a powerful tool for traders to easily see where the insiders or management are buying.

Gamma Exposure (GEX): Gamma is a measure of the rate of change of an options delta and it represents the rate at which an options delta will change as the price of the underlying changes. This proprietary study tracks the Gamma levels of all strike prices in real time by displaying a green/red bar at the strike prices. The day opens with the gamma levels from Open Interest and will adjust accordingly throughout the day as options are bought and sold. Finding the largest levels of Gamma Exposure (GEX) can serve as potential levels of support and/or resistance.

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FINRA Short Interest Analysis: all the FINRA short interest data for stocks is plotted on our charts to let traders see how the shorting ratio of trades in the dark pools has changed over time.

Net Options Delta and Dollar Flow: This ~~BlackBox~~Blackbox proprietary study shows you the daily Net Options Delta (NOD) on a ticker. The delta of a net options position is the ratio of the change in the value of the position to the change in the price of the underlying asset. In other words, it is a measure of how much the value of the options position will change for a small change in the price of the underlying asset. Every single option trade is calculated in real time and the NOD of the stock is updated. This is further broken down into Put and Call NOD. Options dollar flow is a metric that measures the net flow of money into or out of options contracts. It is calculated by taking the difference between the total premium paid for call options and the total premium paid for put options. Positive dollar flow indicates a bullish sentiment, ~~where~~and ~~in turn~~ a negative dollar flow ~~would~~indicates ~~indicate~~ a bearish sentiment. This proprietary ~~BlackBox~~Blackbox study breaks down the dollar flow into three expiration time frames from near term, monthly and total.

0DTE Studies: We enabled options zero days to expire (0DTE) capabilities to many of our custom studies. This allows our users to take advantage of reporting on options that expire each day instead of the traditional monthly expiration.

Go/No-Go Study: The GoNoGo Trend ® indicator provides a simple colored study available in our charts that displays the strength of a stock’s momentum using multiple technical factors.

Team Trade Push Alerts: We provided access to push alert notifications so that our members could get real time alerts on their mobile devices of the trades made by their favorite Blackbox Team Trader(s).

Watchlists for our Mobile Application: We improved our mobile application to include the capability to add watchlists. This feature allows our members to quickly analyze their specific portfolio positions using our powerful mobile application while on the go.

Pro Tier Capability: We added a pro-tier capability allowing professional traders to subscribe to our platform. Professional traders are required to pay substantially higher fees than retail traders for the exchange data we provide them. Due to these higher fees, most applications such as Blackbox are unable to provide access to their systems as it is not economically viable. We now have a new onboarding system that allows us to provide professional traders the ability to use our system.

Education

We offer all members ~~full~~ access to ~~our~~a curriculum of classes, and orientations, and live market sessions. ~~All~~Many of our education programs are free to our members. Our curriculum includes classes for beginner, intermediate, and advanced-level traders. We believe education is vital to increasing the probability of our members long -term success in the markets. We have many regularly calendared live webinars, Q&A sessions, as well as recorded classes. ~~In addition to our regularly calendared classes, we often feature ad hoc classes taught by seasoned members of our community.~~ The educators of these classes often specialize in specific market sectors or trading strategies. Classes and webinar events offered to our members include but are not limited to:

Beginner	Intermediate	Advanced
Blackbox Intro Live	Dark Pool Basics	Options Adjustments
Intro to the Market	Technical Analysis 101	Understanding options for a Bull & Bear Market
Charting 101	Blackbox Trading System -Stocks	Options Strategies for Higher Volatility
Stock Basics	Blackbox Trading System -Options	Insights for Options Core Concepts
	Understanding Options Flow	Short Term Options Explained
		Implied & Historical Volatility
		Options Pricing Explained

In addition to our internal curriculum, we have partnered with the Options Industry Council (OIC), a nonprofit organization funded by the Options Clearing Corporation (OCC) with the mission of providing the investing public a better understanding of the options markets. Classes taught by the OIC to our members include but are not limited to:

	●	The Greeks Part I
	●	The Greeks Part II
	●	Implied Volatility
	●	Short Term Options Explained
	●	Options Pricing Explained

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One of the most attractive aspects of our education program is that the classes are taught by members of our community. The student members who take these are often familiar with the instructor from following them in live trading channels on our platform. We believe this familiarity often brings an element of authenticity and heightened engagement increasing the success of these educational endeavors as well as adding to the community aspect of our platform.

Blackbox Academy

In addition to our free curriculum, we added a new program - Blackbox Academy. Blackbox Academy offers several courses on trading and market related topics to our existing members as well as the general trading public as well. These courses are offered for fees that currently range between $197 and $497. Courses offered during 2025 included:

Smart Money Blueprint

Mastering Day Trading Foundations

Mastering Options Flow

Mastering Trading Psychology and Emotions

We expect to continue to add courses and expand the reach of Blackbox Academy as it matures. In addition to providing educational resources to traders which we believe is critical to their success, we anticipate that having the course available to non-members will generate opportunities for Blackbox to market to traders in a new manner while providing an additional revenue stream.

The Blackbox Advantage

A principal component to our platform is the flexibility to provide members intuitive yet powerful technical analytics that scale with user knowledge. Our preconfigured dashboard defaults to a general setting that is designed to be easy for new members to navigate. Within this same dashboard we provide a multitude of toggles and filters for more sophisticated traders to allow them to implement custom features for their more advanced trading strategies. Most importantly, our live community consisting of thousands of traders creates a real-time community curated support system whereby seasoned traders often mentor newer members. We believe this is one of the primary strengths and differentiators of our platform. Although we offer a complete curriculum of scheduled classes weekly, the live interaction amongst our members proves to be invaluable. We believe this is due to the level of excitement created when new members can watch seasoned members of the community making trades in real time and providing an accompanying narrative. In addition to the educational component, the community element of our platform harnesses a powerful dynamic that can be described as “the best of man and machine”. Our powerful algorithm technology scans the NYSE, NASDAQ, CBOE and other options exchanges to find market volatility and anomalies and displays them on a common dashboard shared across the globe. With thousands of eyes on this data, our members can quickly interact and form a consensus on the trading opportunity at hand.

~~Our Market Opportunity~~ 7

We believe the global COVID-19 pandemic of 2020 stimulated significant change for online technologies including financial and trading related companies such as Blackbox. More than 10 million new brokerage accounts were opened by individuals in 2020 — more than ever in one year, according to Devin Ryan, an analyst at JMP Securities. This newfound interest in the market was very positive for us as our user base grew rapidly in 2021. The combination of an influx of new investors as well as the tendency for those new investors to gravitate towards innovative financial technology have been positive long-term macro-economic trends for us.

It is difficult to quantify the number of people that can be classified as day traders, since the term is somewhat ambiguous, especially since there has been a large influx of self-directed investors in 2020 and 2021. The two types of traders often overlap and separating these demographics can be difficult. Recent data suggest the following size for this growing market:

● 20%: One in 5 people in the U.S. invested in stocks, or mutual funds, in the final three months of 2020, up from 15% in the second quarter, a Conference Board survey showed. Harry Robertson, Business Insider, Feb 10, 2021 ● 31 YEARS: The median age of user of Robinhood, one of the original commission-free online brokerages. More young adults are joining. Apex Clearing, which helps facilitate trades for brokerages, told Reuters around 1 million of new accounts it opened last year belonged to Gen Z investors, with an average age of 19. John McCrank, Reuters Jan 29, 2021 ● ~$15.5 TRILLION: Total client assets at two of the top retail-focused brokerages. Fidelity Investments had $8.8 trillion in customer assets at the end of the third quarter, up from $8.3 trillion at the end of 2019. Schwab had $6.69 trillion in client assets as of Dec. 31, and 29.6 million brokerage accounts, up 66% and 140%, respectively, from a year earlier. John McCrank, Reuters Jan 29, 2021

We believe that the market opportunity for the technology that we have developed and targeted towards day traders can be utilized for self-directed investors as well as institutions -a substantially broader market. We intend to develop mobile applications for self-directed investors that provide them with financial information and data that is not commonly provided by retail brokers. Our first product aimed at this initiative will be Stock Nanny (see “New Products” below). We also intend to market our technologies to institutional financial companies for integration into their existing products or for sub-licensing to their customers.

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Recent Technology and Development Initiatives

We continually upgrade our platform to provide the best user experience and maximum value for our members. Many of the new features or improvements to our existing features are suggested by our members. Much of our platform is community curated and we take pride in collaborating with and implementing the suggestions from our members that use our system every day. Our development efforts in ~~2023~~2024 and ~~2024~~2025 were largely focused on enhancing core parts of our applications and fine-tuning the overall architecture to improve cost efficiencies, eliminate remaining technical debt, and provide our members with a more stable, scalable, and performant system

Development of Native Applications for iOS and Android

We currently have fully-featured native applications for iOS and Android devices ~~which were released in April of 2022~~. We believe that our mobile applications provide our members additional flexibility in their ability to access our platform when away from a desktop computer.

Platform Upgrades

Since the end of 2021, we have made significant upgrades and changes to our platform. We launched version 2.0 of the application which was a complete rewrite of the application front-end and overhaul of the backend to take advantage of modern technology capabilities that were widely unavailable when the product was initially released. This resulted in much better performance, a smaller resource footprint, and improved reliability and scale.

We believe that technological developments to the Blackbox System and platform have been and will continue to be critical to the success of our company. Although we have experienced significant growth and received positive feedback from our members, we believe adding these new technology sets in parallel will be significant drivers of future growth.

New Products

We intend to leverage our existing financial technology platform and data resources for the creation of new and unique products to serve our existing subscribers, asand ~~well as~~ address a broader market. We currently have a vast array of derived data that we believe will be extremely useful to self-directed investors as well the day traders and swing traders that we currently cater to. We believe the self-directed investor demographic is significantly larger than that of day traders and swing traders and presents an enormous opportunity for our growth.

Blackbox Academy

In addition to our free curriculum, we added a new program - Blackbox Academy. Blackbox Academy offers several courses on trading and market related topics to our existing members as well as general trading public as well. These courses are offered for fees that currently range between $197 and $497. Courses offered during 2025 included:

Smart Money Blueprint

Mastering Day Trading Foundations

Mastering Options Flow

Mastering Trading Psychology and Emotions

Stock Nanny

In 2024, we completed a soft launch of Stock Nanny. Stock Nanny is a mobile app for iOS and Android that provides real-time portfolio alerts for a broad demographic of investors. Many of these alerts are a product of derived data currently generated on the Blackbox platform. This app integrates with online brokerage platforms and allows the user to import their current stock positions and stocks on their watchlist into our app. We believe these alerts will be extremely useful for portfolio management, loss mitigation, and other investment strategies. The app provides extensive menu options to allow the user to customize this application to their specific needs. This is a stand-alone product and targets all self-directed retail investors, not just day traders or swing traders allowing the Company to address a much broader segment of the market. We plan to more aggressively market this product in ~~2025~~2026 after we have raised sufficient capital to fund a comprehensive marketing plan.

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Enterprise Products for Professionals

We have not historically marketed our product to persons or entities deemed by the exchanges as “professional traders” or financial institutions. A professional trader is generally defined by the exchanges as a person that:

	●	Is registered or qualified with the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association.
	●	Is engaged as an “investment advisor” as that term is defined in Section 201(11) of the Investment Advisor's Act of 1940 (whether or not registered or qualified under that Act).
	●	Is employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.

The exchanges charge a substantial premium for their data to users who meet the criteria described above. In addition to the higher rates, the onboarding and subsequent approval process by these exchanges is cumbersome and not easily accomplished solely through an online process.

In 2023 we developed a streamlined digital onboarding process allowing financial professionals to be able to use our product. We believe that this is an important first step to not only marketing our existing products to financial professionals but also developing new and even bespoke products for this market segment. We are targeting financial institutions to utilize our products, subsets of our systems or even creating bespoke products on their behalf. In order to provide different and more stable revenue streams, we believe it is important for us to use our existing technology base as a basis to develop new revenue streams from professional and institutional customers.

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Marketing of the Blackbox System

We launched our Blackbox System and platform for use in the United States and made it available to subscribers in September 2016. Use of the platform is sold on a monthly or annual subscription basis to individual consumers through our website at https://blackboxstocks.com. We believe our Blackbox System subscriptions are priced competitively with similar web-based trading tools ~~although the number of competitors offering limited aspects of what our system provides at lower prices has increased in 2023 and 2024~~. We primarily use a combination of digital marketing campaigns and customer referral compensation plans in our advertising program. Our digital advertising efforts are comprised of display and video ads, along with banner and text ads across multiple search and social platforms. We also utilize targeted email marketing and a strategic global marketing campaign for brand awareness. We believe that this form of advertising has been and will continue to be effective in attracting subscribers. We continuously monitor and evaluate the effectiveness of specific social media platforms and allocate marketing funds accordingly. We also promote our subscriptions through an established compensated customer referral program. We offer certain subscribers the right to promote the Blackbox System and receive referral fees for subscribers generated from such subscribers’ effort. Generally, we pay referring subscribers $25 for each subscription generated and $25 for each month the subscriber continues their subscription. We incurred $93,826 and $187,781 in customer referral expenditures in each of the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively. We expect to continue utilizing the customer referral sales program as it has proven to be an efficient form of advertising. Our advertising and marketing expense was $436,456 and $629,984 for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively. We significantly reduced the amount of our digital marketing spend during ~~2023~~2024 and ~~2024~~2025 as part of an overall expense reduction as well as a review of the effectiveness of certain marketing strategies. We intend to continue to deploy a significant amount of marketing funds on both digital campaigns and customer referral programs in the future. In addition, we may also utilize television and radio advertising.

Our marketing of products targeted toward institutional customers is anticipated to rely less on the current digital marketing that we have historically utilized and is not expected to utilize affiliate marketing strategies.

Industry Partners and Relationships

We have several arrangements and agreements with financial industry partners that encompass marketing partnerships, educational resources and licenses. We believe our relationship with large well-known brokerage firms enhance our credibility and provide added value to our members. Among these partnerships are marketing agreements with firms that provide us with a referral fee for new accounts that we bring to them as well as offering our members discounted commissions on options trades. The referral fees are not currently material to our revenue but we believe the that our initial relationship with these firms is significant and provides us with an opportunity to expand these relationships to bring greater value to our members.

Industry partnerships such as the one we have with Options Industry Council, a non-profit entity funded by the Options Clearing Corp. also help provide our members with added educational benefits.

Data Suppliers

We contract with data suppliers and aggregators to provide our subscribers real time access to most major newswires, historical charting data and the real time stock and options data that drive the backend algorithms.

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Data Suppliers

Intellectual Property

We rely on a combination of trademark and copyright laws, trade secrets, confidentiality provisions and other contractual provisions to protect our proprietary rights, which are primarily our brand names, product coding and marks. The Company has registered its name and logo with the United States Patent and Trademark Office (“USPTO”) and is pursuing registration of other brand names and marks. The proprietary portion of the Blackbox System including its coding and methodology is protected by contractual confidentiality provisions of both employees and independent contractors.

Government Regulation and Approvals

We offer our subscribing customers a trading tool and not a trading platform, broker dealer or exchange, and therefore we do not believe we are subject to regulatory oversight by the SEC, FINRA or other financial regulatory agencies. We are not aware of any governmental regulations or approvals required for the marketing or use of our Blackbox System or the services provided.

We are subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business. Many of these laws and regulations are still evolving and being tested in courts, and could be interpreted in ways that could harm our business including, but not limited to, privacy, data protection and personal information, rights of publicity, content, intellectual property, advertising, marketing, distribution, data security, data retention and deletion, and other communications, protection of minors, consumer protection, telecommunications, product liability, taxation, economic or other trade prohibitions or sanctions, anti-corruption law compliance and securities law compliance. In particular, we are subject to federal, state and foreign laws regarding privacy and protection of people's data. Foreign data protection, privacy, content and other laws and regulations can impose different obligations or be more restrictive than those in the United States. U.S. federal and state and foreign laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation and enforcement of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate and may be interpreted and applied inconsistently from country to country and inconsistently with our current policies and practices.

Competition

We operate in a highly competitive environment. Although, we believe that our Blackbox System is the only platform that has successfully merged a comprehensive analytics system or “scanner” and a social media platform within the same “dashboard” allowing members to view the same real-time data in parallel, there are a number of companies that offer one or more features that are similar to or attempt to address the same market as we do. Some of these competitors have financial and other resources that are significantly greater than ours. The greatest amount of competition exists within products that provide trading analytics often referred to as “scanners”. We compete with these entities based on a number of factors including price, ease of use, standard features and proprietary features (if applicable). Ultimately, we believe the primary factor used in evaluating the trading analytics by any platform is the user’s ability to derive actionable information from that platform. This is where we believe our proprietary features differentiate the Blackbox System.

In addition to these technical tools, there are also a number of social media platforms that provide forums for traders and investors at little or no cost. The integration of our social media component within our platform creates a community that we believe is significantly superior to stand alone social media sites. Our members are able to interact and discuss ideas while viewing the same dashboard as opposed to having to switch back and forth between applications.

The final component to our platform is education. There are numerous standalone investment and trading applications, books, seminars and courses offered at many different price points. These products compete based on price, perceived value, level of sophistication and reputation among other factors. We offer our courses at no additional charge to our subscribers. In addition, we believe that our social media community provides our more experienced traders the opportunity to mentor newer traders which in turn contributes to the community environment we have developed.

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In spite of these factors that differentiate us, we believe the following companies may be considered competitors due to similar product features and retail price points: Trade Ideas, Flow Algo, Unusual Whales and Trade Alert. Companies with social media platforms dedicated to financial markets include Stock Twits and Wall Street Bets.

Employees

As of ~~March~~February 2019, ~~2025~~2026, the Company had ten full-time employees. We also currently have ~~nine~~seven contract workers that primarily serve as team traders on our Blackbox System platform or developers.

None of our employees are represented by a labor organization, and we are not a party to any collective bargaining agreement. We have not experienced any work stoppages and consider our relations with our employees to be good.

We believe that our future success will depend in part on our continued ability to hire, motivate and retain qualified management, sales, marketing, and technical personnel. To date, we have not experienced significant difficulties in attracting or retaining qualified employees.

Recent Developments

~~Termination of Share Exchange~~ Agreement ~~with~~and ~~Evtec~~Plan ~~Aluminium~~of ~~Limited~~Merger

On ~~January~~March 1310, 2025, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RABLBX Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”) and ~~Evtec~~REalloys ~~Aluminium~~Inc., ~~Limited~~a Nevada corporation (“~~Evtec~~REalloys”). ~~entered~~Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a ~~termination~~wholly-owned ~~agreement~~subsidiary of the Company (the “~~Termination~~Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) ~~pursuant~~or as otherwise agreed to ~~which~~in the ~~parties~~Merger ~~mutually~~Agreement, ~~agreed~~which is subject to ~~terminate~~adjustment in the ~~Share~~event ~~Exchange~~the ~~Agreement~~parties ~~executed~~raise oncapital ~~December~~in 12excess of certain thresholds. Immediately following Closing, ~~2023~~based upon the Exchange Ratio, aspre-Closing ~~amended~~stockholders byof ~~that~~the ~~certain~~Company ~~First~~are ~~Amendment~~expected to ~~Share~~collectively ~~Exchange~~retain ~~Agreement~~approximately ~~dated~~7.3% ~~July~~of 3the post-Close aggregate common stock of the Company, ~~2024~~par value $0.001 (the “~~Share~~Company ~~Exchange~~Common ~~Agreement~~Stock”), and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the ~~closing~~REalloys will receive as merger consideration newly issued shares of ~~which~~Company ~~would~~Common ~~have~~Stock ~~resulted~~representing inapproximately ~~Evtec~~92.7% ~~becoming~~of athe ~~wholly~~post-Close ~~owned~~aggregate ~~subsidiary~~as common and preferred stock of the Company.

Company Financing

Securities Purchase Agreement

On January 17, 2025, the Company entered into a Securities Purchase Agreement (the “Original Purchase Agreement”) with Five Narrow Lane LP (the “Purchaser”), and Five Narrow Lane LP, as collateral agent for the Purchaser (the “Agent”), pursuant to which the Purchaser agreed to purchase from the Company a senior debenture having an aggregate principal amount of $250,000 (the “Initial Debenture”) and an amended and restated senior secured convertible debenture having an aggregate principal amount of up to $2,000,000 (the “Additional Debenture”, and together with the Initial Debenture, the “Debentures”) upon certain closing conditions applicable to the Initial Debenture and Additional Debenture, respectively.

The closing of Initial Debenture (the “Initial Closing”) took place concurrent with the execution and delivery of the Original Purchase Agreement by the parties thereto, upon satisfaction of certain customary covenants and closing conditions outlined in the Original Purchase Agreement. The closing of the Additional Debenture, (the “Additional Closing”), was agreed to take place upon satisfaction of certain customary closing conditions outlined in the Original Purchase Agreement, including, but not limited to, the execution and delivery of (i) a Security Agreement (as further described below), (ii) a Subsidiary Guarantee (as further described below), (iii) a Registration Rights Agreement (as further described below), and (iv) a Merger Agreement (as further described below).

Initial Debenture

The Initial Closing was consummated on January 17, 2025. The Initial Debenture was to bear interest at a rate of 7.00% per annum and mature on the earlier to occur of the date on which a definitive agreement relating to any “Merger Transaction” (as defined in the Original Purchase Agreement) (the “Merger Agreement”) was duly executed by the parties signatory thereto (the “Initial Debenture Trigger Date”) or March 15, 2025 (the “Initial Debenture Maturity Date”). At any time prior to the Initial Debenture Maturity Date, the Company could elect to prepay all or a portion of the outstanding amounts due under the Initial Debenture.

On the Initial Debenture Trigger Date, the Company agreed to pay in cash to the Purchaser of the Initial Debenture the outstanding principal amount of the Initial Debenture, together with all accrued and unpaid interest thereon, an exit fee in an amount equal to 15% of the outstanding principal amount of the Initial Debenture (the “Initial Debenture Exit Fee”) and any other amounts due thereunder; provided that, if the “Trigger Conditions” are satisfied as of the Initial Debenture Trigger Date, it was agreed that the Initial Debenture would be exchanged for an Additional Debenture. As defined in the Initial Debenture, “Trigger Conditions” means (a) no event of default has occurred or is continuing or would result from the effectiveness of the Merger Transaction, (b) no event or condition has resulted in, or could be reasonably expected to cause, either individually or in the aggregate, a material adverse effect or to result in a material adverse effect from the effectiveness of the Merger Transaction, (c) the Company has executed and delivered such documents as the holder may reasonably request in connection with the exchange of the Initial Debenture for the Additional Debenture, and (d) the satisfaction of any additional covenants and conditions set forth in the Original Purchase Agreement.

The Initial Debenture also included customary representations and warranties, as well as events of default, the occurrence of which would cause the Initial Debenture to bear interest at a default rate of 18% per annum.

Additional Debenture

At the Additional Closing, it was agreed that the Initial Debenture would be exchanged for the Additional Debenture as senior indebtedness secured by a first priority security interest on substantially all of the assets of the Company. The aggregate principal amount of the Additional Debenture was initially agreed to be $2,000,000, to be funded by the Purchasers with (i) $250,000 in principal amount credited from the exchange of Initial Debenture, (ii) $500,000 upon execution and delivery of a Merger Agreement, (iii) $750,000 upon the filing with the Securities and Exchange Commission (the “SEC”) of a registration statement on Form S-4 (the “Merger Registration Statement”) in connection with the Merger Transaction , and (iv) $500,000 upon the SEC declaring the Merger Registration Statement effective. The Additional Debenture bears interest at a rate of 7.00% per annum and will mature on the earlier of the closing of the Merger Transaction (as defined in the Original Purchase Agreement) or 12 months following the issuance of the Additional Debenture (the “Additional Debenture Maturity Date”).

On the Additional Debenture Maturity Date, the Company is, with the consent of the holder, entitled to repay the aggregate accrued interest and principal amount of the Additional Debenture. In the event the Additional Debenture is repaid in cash, the holder is entitled to receive a premium equal to 115% of the outstanding principal and accrued interest balance due on such date. In the event the Additional Debenture is not repaid on the Maturity Date, subject to certain limitations and absence of an event of default, the holder is entitled to convert the aggregate principal amount and accrued interest of the Additional Debenture into Company common stock at the conversion price, which will be 175% of the closing price of the Company’s common stock (as quoted by the Nasdaq Stock Market, LLC) on the trading day immediately prior to the execution of the Additional Debenture with a minimum price of $5.00 per share of common stock. Notwithstanding the foregoing, the Additional Debenture will not be convertible into Company common stock if, after such conversion, the holders would beneficially own more than 9.9% of the Company common stock outstanding. The holder may elect to reduce such 9.9% beneficial ownership limitation to 4.9%, effective immediately upon such election.

The Additional Debenture also includes customary representations and warranties, as well as events of default, the occurrence of which will cause the Additional Debenture to bear interest at a default rate of 18% per annum. The Additional Debenture includes a most favored nation clause in favor of the holder thereof.

Palladium Capital Group, LLC served as placement agent for the Debentures. The Company agreed to pay a placement agent fee upon closing of the Debentures equal to 8% of the gross proceeds from the sale of the Debentures. Such fee will be payable through the issuance by the Company of a debenture to Palladium Capital Group, LLC on identical terms to the Additional Debenture, provided that such debenture will be unsecured.

Registration Rights Agreement

In connection with the Original Purchase Agreement, and as a condition to the Additional Closing, the Company and the Purchasers agreed to enter into a Registration Rights Agreement (the “Registration Rights Agreement”). Under the Registration Rights Agreement, the Company must file with the SEC an initial registration statement within 15 days to register the maximum number of Registrable Securities to be issued upon conversion of the Additional Debenture (as defined in the Registration Rights Agreement) in accordance with applicable SEC rules, and obtain effectiveness thereof within 30 days (or in the event of a “full review” by the SEC, 45 days).

The Registration Rights Agreement includes certain other restrictions on piggyback rights, obligations of the Company and the Purchasers, and indemnification obligations of the parties, each as described in greater detail therein

Security Agreement

In connection with the Original Purchase Agreement, and as a condition to the Additional Closing, the Company, Blackbox.io Inc., a wholly-owned subsidiary of the Company (the “Subsidiary” or “Blackbox Operating”), and the Agent agreed to enter into a Security Agreement (the “Security Agreement”) which grants the Agent and Purchaser a first priority security interest in substantially all of the assets of the Company to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Additional Debenture. Pursuant to the Security Agreement, the Subsidiary will act as a guarantor with respect to the Company’s obligations under the Additional Debenture.

Subsidiary Guarantee

In connection with the Original Purchase Agreement, and as a condition the Additional Closing, our Subsidiary agreed to enter into a Subsidiary Guarantee (the “Subsidiary Guarantee”) in favor of the Purchaser, pursuant to which the Subsidiary agrees to guarantee all of the Company’s obligations under the Additional Debenture.

Amendment to Securities Purchase Agreement

On January 27, 2025, the Company, the Purchasers and the Agent entered into an Amendment to Securities Purchase Agreement (the “Amendment”, and together with the Original Purchase Agreement, the “Purchase Agreement”) to, among other things, increase the aggregate principal and subscription amount of the Initial Debenture and Additional Debenture to up to $550,000 and $2,300,000, respectively. The Amendment amends certain provisions within the Purchase Agreement to reflect such increase in the aggregate principal and subscription amounts of the Debenture.

Merger Agreement with REalloys Inc.

On March 10, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RABLBX Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”), and REalloys Inc., a Nevada corporation (“REalloys”). Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a wholly-owned subsidiary of the Company (the “Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) or as otherwise agreed to in the Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess of certain thresholds. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected to collectively retain approximately 7.3% of the post-Close aggregate common stock of the Company, par value $0.001 (the “Company Common Stock”) and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92.7% of the post-Close aggregate as common and preferred stock of the Company.

The Merger Agreement contains customary representations, warranties and covenants of the Company, Merger Sub and the REalloys, including, among others, (i) covenants requiring each of the Company and REalloys to conduct its business in the ordinary course during the period between the execution of the Merger Agreement and the Closing or earlier termination of the Merger Agreement, subject to certain exceptions, (ii) a covenant prohibiting the Company from engaging in certain kinds of transactions during such period (without the prior written consent of the REalloys), and (iii) a covenant restricting Company and REalloys from activities relating to the soliciting, initiating, encouraging, inducing or facilitating the communication, making, submission or announcement of any alternative acquisition proposals or inquiries.

The Merger Agreement also ~~requires~~required the Company, in cooperation with the REalloys, to prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 ~~that~~containing ~~will contain~~ a proxy statement relating to a Company stockholder meeting ~~to be~~ held in connection with the Merger (the “~~Merger~~ Registration Statement”) pursuant to which shares of Company Common Stock ~~will~~were be registered under the Securities Act, ~~to be issued by virtue~~ of ~~the~~1933, ~~Merger~~as ~~and~~amended (the ~~contemplated~~“Securities ~~transactions thereunder. The Company shall use commercially reasonable efforts to (i~~Act”), ~~cause the Merger Registration Statement~~ to ~~comply~~be ~~with~~issued ~~applicable rules and regulations promulgated~~ by ~~the~~virtue ~~SEC,~~of ~~(ii) cause~~ the Merger ~~Registration Statement to become effective as promptly as practicable,~~ and ~~(iii) respond promptly to any comments or requests of~~ the ~~SEC~~contemplated ortransactions ~~its staff related to the Merger Registration Statement~~thereunder. In addition, under the Merger Agreement, the parties agreed to other customary provisions including (i) obtaining requisite stockholder approval to consummate the Merger and the contemplated transactions thereunder, (ii) obtaining regulatory approvals from relevant governmental authorities, (iii) indemnifying the directors and officers of the Company for a period of six years following the Closing, (iv) completing certain disclosure obligations required by the SEC and listing requirements promulgated by the Nasdaq Capital Market (“Nasdaq”), (v) electing or appointing to the positions of officers and directors of Company and the surviving corporation certain persons designated by REalloys, (vi) executing employment agreements between the Company and Lipi Sternheim and David Argyle, (vii) Company adopting a new stock incentive plan reserving not more than 15% of the fully-diluted, outstanding interest of the Company immediately following the Merger for issuance, and (viii) allocating funds received by Company pursuant to sales, issuances, grants or other dispositions of Company Common Stock, during the period between the Merger Agreement and Closing, under that certain Registration Statement on Form S-3 (File No. 333-284626) filed with the SEC on January 31, 2025 which became effective on February 10, 2025.

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Closing of the Merger is subject to various customary closing conditions. Each party’s obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are conditioned upon (i) the effectiveness of the ~~Merger~~ Registration Statement on Form S-4, (ii) expiration or termination of applicable regulatory waiting periods, (iii) no restraints from any governmental authority preventing the consummation of the contemplated transactions under the Merger Agreement, (iv) the Company and REalloys obtaining their respective requisite stockholder votes to consummate the transactions contemplated by the Merger Agreement, (v) Nasdaq’s approval of the Company’s Nasdaq listing application for the post-Merger entity, (vi) execution of Lock-Up Agreements (as further described below), (vii) execution of a Stock Purchase Agreement by and between Gust Kepler and Lipi Sternheim whereby Gust Kepler shall agree to sell ~~1,634,999~~certain shares of Company Series A Convertible Preferred Stock to Lipi Sternheim contingent upon and effective concurrently with Closing, and (viii) the filing of an amendment to Company’s charter with the Secretary of State of the State of Nevada, containing such amendments necessary to consummate the transactions contemplated by the Merger Agreement. Company’s and Merger Sub’s obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are further conditioned upon customary closing conditions as well as REalloys having sufficient stockholder’s equity as necessary for the Company to meet Nasdaq listing requirements. ~~REalloy~~REalloys’s obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are further conditioned upon customary closing conditions as well as (i) the Company’s execution of ~~the~~an Option Agreement (as further described below), (ii) the Company’s consummation of a Company Financing and issuance of $2,300,000 of Additional ~~Debenture~~Debentures to the satisfaction of the REalloys (as further described ~~above and~~ below), (iii) the Company having ~~net~~Net ~~cash~~Cash (as defined in the Merger Agreement) equal to or in excess of negative $2.69 million, and (iv) the Company filing the Certificate of Designations establishing a class of Company preferred stock to be designated Series C Convertible Preferred Stock (as further described below).

Following the Closing, the Company is expected to be renamed “REalloys Inc.,” and it is expected that the shares of Company Common Stock will continue to be listed on Nasdaq.

Palladium Capital Group, LLC served as the exclusive financial advisor in connection with the above transactions.

Stockholder Support Agreements

As a condition to the parties’ execution of the Merger Agreement, ~~prior~~Gust toKepler, ~~Closing~~a director and the President and Chief Executive Officer of the Company, who holds shares of Company Common Stock and ~~Gust~~Series ~~Kepler~~A ~~will~~Convertible ~~execute~~Preferred anStock, ~~Option~~executed a Stockholder Support Agreement (the “~~Option~~Company Stockholder Support Agreement”), pursuant to which ~~the~~Mr. Kepler agreed to vote his shares of Company ~~shall~~Common ~~have~~Stock and Series A Convertible Preferred Stock in favor of (i) the ~~right~~approval toof ~~call~~the ~~for~~Merger ~~redemption~~Agreement and ~~Gust~~transactions ~~Kepler~~contemplated ~~shall~~therein, ~~have~~(ii) if deemed necessary by the ~~right~~Company, an amendment to ~~cause~~the Company’s certificate of incorporation to ~~redeem~~effect ~~all~~a forward or reverse split of the ~~issued~~outstanding ~~and~~Company ~~outstanding~~Common ~~Series~~Stock Aif ~~Convertible~~necessary, ~~Preferred~~(iii) ~~Stock~~the issuance of ~~Parent~~Company ~~held~~Common byStock ~~Gust~~in ~~Kepler~~accordance inwith ~~exchange~~Nasdaq ~~for~~Listing ~~shares~~Rule of5635, ~~Series~~and A(iv) ~~Convertible~~against ~~Preferred~~any ~~Stock~~competing proposals. In addition, as a condition to the parties’ execution of ~~Blackbox.io~~the Merger Agreement, ~~Inc~~holders of at least 50.1% of the outstanding shares of capital stock of the REalloys executed a Stockholder Support Agreement (the “~~Blackbox~~REalloys ~~Operating~~Stockholder Support Agreements”), apursuant ~~Delaware~~to ~~corporation~~which ~~and~~such ~~wholly~~holders ~~owned~~agreed ~~subsidiary~~to vote all of their shares of capital stock of the ~~Company,~~REalloys ~~which~~in ~~was~~favor ~~organized~~of tothe ~~conduct~~approval ~~its~~of ~~historical~~the ~~operations~~Merger Agreement and transactions contemplated therein.

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Lock-Up Agreements

As a condition to the parties’ execution of the Merger Agreement, prior to Closing, all officers, directors and stockholders of the REalloys will execute lock-up agreements (the “Lock-Up Agreements”), which among other things (i) prohibit such parties from engaging in certain sale and other transfer transactions relating to the Company Common Stock and securities convertible, exercisable or exchangeable therefor, without the prior written consent of the Company for a period of 180 days after the Closing and (ii) for 180 days thereafter, further prohibits such parties from engaging certain transactions representing more than 10% of each party’s record or beneficial ownership of the Company in any one month.

Option Agreement

As a condition to the parties’ execution of the Merger Agreement, prior to Closing, the Company and Gust Kepler will execute an Option Agreement (the “Option Agreement”), pursuant to which the Company shall have the right to call for redemption and Gust Kepler shall have the right to cause Company to redeem all of the issued and outstanding Series A Convertible Preferred Stock of Parent held by Gust Kepler in exchange for shares of Series A Convertible Preferred Stock of Blackbox.io, Inc. (“Blackbox Operating”), a Delaware corporation and wholly owned subsidiary of ~~the Company~~Parent, which was organized to conduct ~~its~~ historical Blackbox operations of the Company.

Contingent Value Rights Agreements

At the Closing, the Company, a representative of the Company stockholders, and a to be appointed Rights Agent, will enter into a Contingent Value Rights Agreement (the “CVR Agreement”). Pursuant to the Merger Agreement and the CVR Agreement, each share of Company Common Stock held by Parent stockholders as of a record date immediately prior to the Closing will receive a dividend of one contingent value right (“CVR”) entitling such holders to receive, in connection with certain transactions involving Blackbox Operating (a “CVR Transaction”), an amount equal to the net proceeds actually received by the Company at the closing of such transaction. A CVR Transaction is generally a transaction pursuant to which (i) the Company or Blackbox Operating grants, sells, licenses or otherwise transfers some or all of the rights to the Blackbox Operating assets, or other monetizing event of all or any part of the Blackbox Operating assets and (ii) the Company receives or Blackbox Operating determines to distribute net proceeds from such transaction as a dividend to its stockholders.

The CVR payment obligations will expire the date that is 24 months following the Closing. The CVRs will not be transferable, except in certain limited circumstances, will not be certificated or evidenced by any instrument, will not accrue interest and will not be registered with the SEC or listed for trading on any exchange. There is no guarantee that any CVR Transaction or payment pursuant thereto will be earned.12

Certificate of Designations for Series C Convertible Preferred Stock

Under the terms of the Merger Agreement, as a condition to Closing, the Company will file a Certificate of Designations (the “Certificate of Designations”) with the Secretary of State of the State of Nevada establishing a class of Company preferred stock to be designated Series C Convertible Preferred Stock, par value $.001 per share (the “Series C Stock”), which is expected to be issued as partial consideration in the Merger. Under the agreed form of the Certificate of Designations, all shares of capital stock of the Company rank pari passu or junior to the Series C Stock, with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company. The Series C Stock is convertible into shares of Company Common Stock at the election of the holder at any time at a conversion price to be equal to 100% of the lesser of (i) the closing price of the Company Common Stock on the trading day immediately prior to the closing of the Merger and (ii) the closing price of the Company Common Stock on the date the Companies obtain stockholder approval for issuance of the Series C Stock and Company Common Stock into which it convert (the “Series C Stockholder Approval”). The conversion price is subject to customary adjustments for stock dividends, stock splits, reclassifications, stock combinations and the like (subject to certain exceptions). At any time after issuance of the Series C Stock, to the extent the Company raises capital in any financing with gross proceeds in excess of $3 million, the Company is required to use one-third of such gross proceeds to redeem all or any portion of the Series C Stock then outstanding. The amortization payments due upon such redemption are payable by the Company in cash at a price equal to the product of (i) 110% and (ii) the stated value of the shares of Series C Stock being redeemed plus any and all accrued and unpaid dividends on such shares of Series C Stock.

The holders of the Series C Stock are entitled to dividends of 2.5% per annum, compounded each calendar month, which are payable in arrears monthly in cash, “in kind” in the form of additional shares of Series C Stock, or in a combination thereof, at the holder’s discretion, in accordance with the terms of the Certificate of Designations. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations and described below), the Series C Stock accrues dividends at a rate of 15% per annum. Upon conversion or redemption, the holders of shares of Series C Stock are also entitled to receive a dividend make-whole payment, assuming for calculation purposes that stated value of such Series C Stock remained outstanding through and including the date of conversion or redemption of all the shares of Series C Stock. The holders of Series C Stock are entitled to vote with holders of the Company Common Stock on an as-converted basis, with the number of votes to which each holder of Series C Stock is entitled to be calculated as the stated value of such share of Series C Stock divided by the Nasdaq Minimum Price (as defined in Nasdaq Listing Rule 5635(d)) immediately preceding the subscription date (as defined in the Certificate of Designations), subject to certain beneficial ownership limitations as set forth in the Certificate of Designations.

Notwithstanding the foregoing, the Company’s ability to settle conversions and make amortization payments and dividend make-whole payments using shares of Company Common Stock is subject to certain limitations set forth in the Certificate of Designations, including a limit on the number of shares that may be issued until the time, if any, that the Company has obtained the Series C Stockholder Approval. Further, the Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of Company Common Stock issuable upon conversion of the Series C Stock or as part of any amortization payment or dividend make-whole payment under the Certificate of Designations.

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The ~~Certificate~~CVR ofpayment ~~Designations~~obligations ~~includes~~will ~~certain~~expire ~~Triggering Events (as defined in~~ the ~~Certificate~~date ofthat ~~Designations),~~is ~~including,~~24 ~~among~~months ~~other~~following ~~things,~~ the ~~suspension~~Closing. ~~from~~The ~~trading~~CVRs orwill ~~failure~~not ~~of the Company Common Stock to~~ be ~~trading~~transferable, orexcept ~~listed on an Eligible Market (as defined~~ in ~~the~~certain ~~Certificate~~limited ofcircumstances, ~~Designations)~~will ~~for~~not abe ~~period~~certificated ofor ~~five~~evidenced ~~consecutive~~by ~~trading days and the Company’s failure to pay~~ any ~~amounts due to the holders of Series C Stock when due. In connection with a Triggering Event~~instrument, ~~each~~will ~~holder~~not ofaccrue ~~Series~~interest Cand ~~Stock~~ will not be ~~able~~registered towith ~~require~~ the ~~Company~~SEC toor ~~redeem~~listed infor ~~cash~~trading on any orexchange. ~~all~~There ofis ~~the~~no ~~holder’s~~guarantee ~~shares~~that ofany ~~Series~~CVR CTransaction ~~Stock~~or atpayment apursuant ~~premium~~thereto ~~set~~will ~~forth~~be ~~in the Certificate of Designations~~earned.

Certificate of Designations for Series C Preferred Stock

Under the terms of the Merger Agreement, as a condition to Closing, the Company will file a Series C Certificate of Designations with the Secretary of State of the State of Nevada establishing a class of Company preferred stock to be designated Series C Convertible Preferred Stock, par value $0.001 per share, stated value $3,000 per share, which is expected to be issued as partial consideration in the Merger. Under the agreed form of the Series C Certificate of Designations, all shares of capital stock of the Company rank pari passu or junior to the Series C Preferred Stock, with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company. The Series C Preferred Stock is convertible into shares of Company Common Stock at the election of the holder at any time at a conversion price to be equal to 100% of the lesser of (i) the closing price of the Company Common Stock on the trading day immediately prior to the closing of the Merger and (ii) the closing price of the Company Common Stock on the date the Companies obtain stockholder approval for issuance of the Series C Preferred Stock and Company Common Stock into which it convert (the “Series C Stockholder Approval”). The conversion price is subject to customary adjustments for stock dividends, stock splits, reclassifications, stock combinations and the like (subject to certain exceptions). At any time after issuance of the Series C Preferred Stock, to the extent the Company raises capital in any financing with gross proceeds in excess of $3 million, the Company is required to use one-third of such gross proceeds to redeem all or any portion of the Series C Preferred Stock then outstanding. The amortization payments due upon such redemption are payable by the Company in cash at a price equal to the product of (i) 110% and (ii) the stated value of the shares of Series C Preferred Stock being redeemed plus any and all accrued and unpaid dividends on such shares of Series C Preferred Stock.

The holders of the Series C Preferred Stock will be entitled to dividends of 2.5% per annum, compounded each calendar month, which are payable in arrears monthly in cash, “in kind” in the form of additional shares of Series C Preferred Stock, or in a combination thereof, at the holder’s discretion, in accordance with the terms of the Series C Certificate of Designations. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Series C Certificate of Designations and described below), the Series C Preferred Stock accrues dividends at a rate of 15% per annum. Upon conversion or redemption, the holders of shares of Series C Preferred Stock will be also entitled to receive a dividend make-whole payment, assuming for calculation purposes that stated value of such Series C Preferred Stock remained outstanding through and including the date of conversion or redemption of all the shares of Series C Preferred Stock. The holders of Series C Preferred Stock will be entitled to vote with holders of the Company Common Stock on an as-converted basis, with the number of votes to which each holder of Series C Preferred Stock is entitled to be calculated as the stated value of such share of Series C Preferred Stock divided by the Nasdaq Minimum Price (as defined in Nasdaq Listing Rule 5635(d)) immediately preceding the Subscription Date (as defined in the Series C Certificate of Designations), subject to certain beneficial ownership limitations as set forth in the Series C Certificate of Designations.

Notwithstanding the foregoing, the Company’s ability to settle conversions and make amortization payments and dividend make-whole payments using shares of Company Common Stock is subject to certain limitations set forth in the Series C Certificate of Designations, including a limit on the number of shares that may be issued until the time, if any, that the Company has obtained the Series C Stockholder Approval. Further, the Series C Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of Company Common Stock issuable upon conversion of the Series C Preferred Stock or as part of any amortization payment or dividend make-whole payment under the Series C Certificate of Designations.

The Series C Certificate of Designations includes certain Triggering Events (as defined in the Series C Certificate of Designations), including, among other things, the suspension from trading or failure of the Company Common Stock to be trading or listed on an Eligible Market (as defined in the Series C Certificate of Designations) for a period of five consecutive trading days and the Company’s failure to pay any amounts due to the holders of Series C Preferred Stock when due. In connection with a Triggering Event, each holder of Series C Preferred Stock will be able to require the Company to redeem in cash any or all of the holder’s shares of Series C Preferred Stock at a premium set forth in the Series C Certificate of Designations.

The Company will be subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, the existence of liens, the maturity of indebtedness, preservation of existence, maintenance of properties, maintenance of insurance, transactions with affiliates, among other matters.

There is no established public trading market for the Series C Preferred Stock and the Company does not intend to list the Series C Preferred Stock on any national securities exchange or nationally recognized trading system.

As described below, Series C Preferred Stock will be issued upon consummation of the Merger as consideration for certain outstanding shares of Series X Stock (as defined below) of REalloys and, at the option of the holders of the Additional Debenture issued in connection with the Company Financing (described below), in exchange for satisfaction of certain Company obligations under the terms of the Additional Debenture.

~~Updates to Company Financing~~13

InTable connection with the Merger, the Company agreed to make certain changes to the Additional Debenture and Registration Rights Agreement. Among other things, the Additional Debenture was revised to require the Company, upon consummation of the Merger, to either (i) pay to the holders in cash the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the Exit Fee (as defined in the Additional Debenture) and any other amounts due thereunder, or (ii) issue to the holders such number of shares of Series C Stock for aggregate stated value equal to (x) 3.0 multiplied by (y) the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the Exit Fee (as defined in the Additional Debenture) and other amounts due thereunder. Additionally, the agreed form of the Registration Rights Agreement was revised to reflect that filing date for the resale registration statement registering the Company Common Stock issuable upon conversion of the Additional Debenture was extended to April 15, 2025 (the “Filing Date”), and that the Company is required to have such registration statement declared by the SEC by the 30th calendar day following the Filing Date (or 45 calendar days in the event of a “full review”).Contents

OnFirst ~~March~~Amendment ~~10, 2025, the Company issued an Additional Debenture~~ to ~~Five Narrow Lane LP with an outstanding principal amount of $1,050,000. Pursuant to the Security~~ Agreement, ~~the obligations under the Additional Debenture are secured by security interest in certain property of the Company~~ and ~~certain~~Plan ~~subsidiaries~~ of ~~the Company. In connection with the issuance of Additional Debenture, the parties executed the Registration Rights Agreement, Security Agreement and Blackbox.io Inc. executed a Subsidiary Guarantee.~~Merger

On July 1, 2025, Blackboxstocks, Merger Sub and REalloys entered into a First Amendment to Agreement and Plan of Merger in order to reflect Blackboxstocks’ intent to conduct an at-the-market offering of its common stock, pursuant to which up to 250,000 shares of Blackboxstocks common stock may be sold and issued without affecting the calculation of Company Merger Shares (as defined in the Merger Agreement) to be issued in the Merger.

Second Amendment to Agreement and Plan of Merger

On August 22, 2025, Blackboxstocks, Merger Sub and REalloys entered into a Second Amendment to Agreement and Plan of Merger in order to delete and restate in its entirety the definition of “Permitted Transfer” in the CVR Agreement.

Third Amendment to Agreement and Plan of Merger

On December 10, 2025, Blackboxstocks, Merger Sub and REalloys entered into a Third Amendment to Agreement and Plan of Merger in order to delete and restate in its entirety the form of Option Agreement.

REalloys Financing

~~REalloys~~ Securities Purchase Agreement

In connection with the Merger, REalloys entered into a Securities Purchase Agreement (the “REalloys Purchase Agreement”), dated as of March 6, 2025, with Five Narrow Lane LP (the “Buyer”), pursuant to which REalloys agreed to sell to the Buyer (i) an aggregate of 5,000 shares of REalloys’ Series X Preferred Stock, par value $0.0001 per share (the “Series X Stock”), with a stated value of $1,000 per share (the “Stated Value”) and (ii) warrants (the “REalloys Warrants”) to acquire up to 5,000,000 shares of common stock of REalloys, par value $0.0001 per share (the “REalloys Common Stock”) (collectively, the “REalloys Financing”). REalloys will also issue to the Buyer an aggregate number of shares of REalloys Common Stock representing 5.0% of the fully diluted outstanding capital of REalloys (the “Commitment Shares”), which shall be adjusted as necessary immediately prior to the consummation of the Merger to the extent that the Commitment Shares represent less than 5.0% of the fully diluted outstanding capital of REalloys. The aggregate gross proceeds from the REalloys Financing ~~are~~were ~~expected to be~~ $5,000,000 (or up to $55,000,000 if the REalloys Warrants are exercised in full for cash). REalloys expects to use the net proceeds from the REalloys Financing for general corporate purposes and for transaction expenses incurred in connection with the Merger.

The REalloys Purchase Agreement contains certain representations and warranties, covenants and indemnities customary for similar transactions. The representations, warranties and covenants contained in the REalloys Purchase Agreement were made solely for the benefit of the parties to the REalloys Purchase Agreement and may be subject to limitations agreed upon by the contracting parties. The REalloys Financing is exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. The Buyer has represented to REalloys that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and that it is acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The Series X Stock and REalloys Warrants are being offered without any general solicitation by the Company or its representatives.

16The closing of the REalloys Financing occurred on March 10, 2025. The REalloys Financing was exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. The Buyer has represented to REalloys that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and that it is acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The Series X Stock and REalloys Warrants were offered without any general solicitation by the Company or its representatives.

Certificate of Designations of Series X Preferred Stock

The terms of the Series X Stock are set forth in a certificate of designations (the “REalloys Certificate of Designations”) which ~~will~~was be filed with the Secretary of State of Nevada prior to the closing of the REalloys Purchase Agreement. All shares of capital stock of REalloys rank pari passu or junior to the Series X Stock, with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of REalloys. At any time after issuance of the Series X Stock, to the extent (i) the Merger Agreement is terminated for any reason before the Merger is consummated and (ii) REalloys raises capital in any financing, REalloys is required to use 50% of the aggregate gross proceeds from such financing to redeem all or any portion of the Series X Stock then outstanding. The amortization payments due upon such redemption are payable by REalloys in cash at a price equal to the product of (i) 110% and (ii) the Stated Value of the shares of Series X Stock being redeemed plus any and all accrued and unpaid dividends on such shares of Series X Stock.

The holders of the Series X Stock are entitled to dividends of 8.0% per annum, compounded each calendar quarter, which are payable in arrears quarterly on the Maturity Date (as defined in the REalloys Certificate of Designations) in cash, “in kind” in the form of additional shares of Series X Stock, or in a combination thereof, at the holder’s discretion, in accordance with the terms of the REalloys Certificate of Designations. Upon the occurrence and during the continuance of a Triggering Event (as defined in the REalloys Certificate of Designations and described below), the Series X Stock accrues dividends at a rate of 15% per annum. Upon redemption or other repayment, the holders of shares of Series X Stock are also entitled to receive a dividend make-whole payment, assuming for calculation purposes that the Stated Value of such Series X Stock remained outstanding through and including the date of redemption of all the shares of Series X Stock. The holders of Series X Stock are entitled to vote with holders of the REalloys Common Stock on an as-converted basis, with each share of Series X Stock entitling the holder thereof to cast one vote per share of Series X Stock.

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The REalloys Certificate of Designations includes certain Triggering Events (as defined in the REalloys Certificate of Designations), including, among other things, REalloys’ failure to pay any amounts due to the holders of Series X Stock when due. In connection with a Triggering Event, each holder of Series X Stock will be able to require REalloys to redeem in cash any or all of the holder’s shares of Series X Stock at a premium set forth in the REalloys Certificate of Designations.

REalloys will be subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, the existence of liens, restricted payments and investments, restrictions on redemption and cash dividends, restrictions on transfer of assets, the maturity of indebtedness, change in nature of business, preservation of existence, maintenance of properties, intellectual property and insurance, transactions with affiliates, restricted issuances and restrictions on acquisitions, among other matters. There is no established public trading market for the Series X Stock and REalloys does not intend to list the Series X Stock on any national securities exchange or nationally recognized trading system.

Pursuant to the Merger Agreement, each share of Series X Stock outstanding will be converted solely into the right to receive shares of the Company’s Series C Preferred Stock at a ratio of 1 to 1.

Warrants

The REalloys Warrants are exercisable for shares of REalloys Common Stock immediately upon issuance, at an exercise price of $10.00 per share (the “Exercise Price”) and expire two years from the date of issuance. The Exercise Price is subject to customary adjustments for stock dividends, stock splits, reclassifications, and the like. There is no established public trading market for the REalloys Warrants and REalloys does not intend to list the REalloys Warrants on any national securities exchange or nationally recognized trading system.

Pursuant to the Merger Agreement, the REalloys Warrants are to be assumed by the Company at Closing and will be exercisable for the purchase of Company Common Stock in an amount and at an adjusted Exercise Price based upon the Exchange Ratio.

Company Financing

Securities Purchase Agreement

The closing of the Initial Debenture (the “Initial Closing”) took place on January 17, 2025. The closing of the Additional Debenture (the “Additional Closing”), was agreed to take place upon satisfaction of certain customary closing conditions outlined in the Original Purchase Agreement, including, but not limited to, the execution and delivery of (i) a Security Agreement (as further described below), (ii) a Subsidiary Guarantee (as further described below), (iii) a Registration Rights Agreement (as further described below), and (iv) a Merger Agreement (as further described below).

The Original Purchase Agreement contains customary representations, warranties, covenants, confidentiality and indemnification obligations customary for a transaction of the size and type contemplated by the Original Purchase Agreement. The Original Purchase Agreement also provides that, so long as the Debentures remain outstanding, each holder of the Securities shall have “most favored nation” status with respect to any debt or equity financing (including, without limitation, the issuance of convertible debt and equity securities of any nature) obtained by the Company.

Initial Debenture

The Initial Debenture bore interest at a rate of 7.00% per annum and matured on the earlier to occur of the date on which a definitive agreement relating to any “Merger Transaction” (as defined in the Original Purchase Agreement) (the “Merger Agreement”) was duly executed by the parties signatory thereto (the “Initial Debenture Trigger Date”) or March 15, 2025 (the “Initial Debenture Maturity Date”). At any time prior to the Initial Debenture Maturity Date, the Company could elect to prepay all or a portion of the outstanding amounts due under the Initial Debenture.

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On the Initial Debenture Trigger Date, the Company agreed to pay in cash to the Purchaser of the Initial Debenture the outstanding principal amount of the Initial Debenture, together with all accrued and unpaid interest thereon, an exit fee in an amount equal to 15% of the outstanding principal amount of the Initial Debenture and any other amounts due thereunder; provided that, if the “Trigger Conditions” are satisfied as of the Initial Debenture Trigger Date, it was agreed that the Initial Debenture would be exchanged for an Additional Debenture. As defined in the Initial Debenture, “Trigger Conditions” meant (a) no event of default has occurred or is continuing or would result from the effectiveness of the Merger Transaction, (b) no event or condition has resulted in, or could be reasonably expected to cause, either individually or in the aggregate, a material adverse effect or to result in a material adverse effect from the effectiveness of the Merger Transaction, (c) the Company has executed and delivered such documents as the holder may reasonably request in connection with the exchange of the Initial Debenture for the Additional Debenture, and (d) the satisfaction of any additional covenants and conditions set forth in the Original Purchase Agreement.

The Initial Debenture also included customary negative and affirmative covenants, as well as events of default, the occurrence of which would cause the Initial Debenture to bear interest at a default rate of 18% per annum.

Amendment to Securities Purchase Agreement; A&R Initial Debenture

On January 27, 2025, the Company, the Purchaser and the Agent entered into an Amendment to Securities Purchase Agreement (the “Amendment”, and together with the Original Purchase Agreement, the “Purchase Agreement”) to, among other things, increase the aggregate principal and subscription amount of the Initial Debenture and Additional Debenture to up to $550,000 and $2,300,000, respectively. The Amendment amended certain provisions within the Purchase Agreement to reflect such increase in the aggregate principal and subscription amounts of the Debenture. On same date, the Company issued to the Purchaser an Amended and Restated Debenture due the Earlier of the Trigger Date and March 15, 2025, in the aggregate principal amount of $550,000 (the “A&R Initial Debenture”).

Additional Closing; Additional Debenture

On March 10, 2025, the Company consummated the Additional Closing (the “Additional Closing Date”). At the Additional Closing, the A&R Initial Debenture was exchanged for the Amended and Restated Senior Secured Convertible Debenture Due the Earlier of the Trigger Date and March 10, 2026 (the “Additional Debenture Maturity Date”), in the principal amount of $1,050,000, where “Trigger Date” means the date on which the transactions contemplated by the Merger Agreement are consummated, which debenture constitutes an Additional Debenture pursuant to the Purchase Agreement. The obligations of the Company under the Additional Debenture constitute senior indebtedness secured by a first priority security interest on substantially all of the assets of the Company.

The Additional Debenture bears interest at a rate of 7.00% per annum. At any time prior to the Additional Debenture Maturity Date, the Company can, upon Purchaser’s prior written consent, prepay all or a portion of the outstanding principal due under the Additional Debenture, plus (i) accrued and unpaid interest thereon, plus (ii) the exit fee, and plus (iii) all other sums, if any, that shall have become due and payable thereunder.

At any time after the original issuance date, the Additional Debenture is convertible into shares of common stock of the Company at the initial conversion price of $5.46, subject to customary adjustments for reverse splits and anti-dilution protections, provided that the conversion shall at no time be lower than the floor price of $5.00 per share.

On the Trigger Date, the Company shall, at the option of the Company, either (i) pay to the Purchaser in cash all or a portion of the principal amount of the Additional Debenture outstanding on the Trigger Date, together with all accrued and unpaid interest thereon, the exit fee and any other amounts due hereunder or (ii) issue to the Purchaser such number of shares of Series C Preferred Stock of the Company, for aggregate stated value equal to: (x) 3.0 multiplied by (y) all, or such portion, as applicable, of the principal amount of the Additional Debenture outstanding on the Tigger Date, after giving effect to any repayment pursuant to foregoing clause (i), together with all accrued and unpaid interest thereon, the exit fee and other amount due hereunder. In case the Company elects the option specified in the foregoing clause (i), the Company shall deliver on a date that is at least 5 Trading Days before such Trigger Date a written notice (a “Trigger Date Repayment Notice”) to the Purchaser of its irrevocable election to repay all or a portion of the outstanding principal amount of the Additional Debenture plus (i) accrued and unpaid interest thereon, plus (ii) the exit fee, and plus (iii) all other sums, if any, that shall have become due and payable (collectively, the “Trigger Date Repayment Amount”) for cash on the Trigger Date (the period from the date of such Trigger Date Repayment Notice to the Trigger Date, the “Repayment Period”). For the avoidance of doubt, the Purchaser may elect to convert all or a portion of the outstanding principal amount of the Additional Debenture, from time to time, prior to the Trigger Date and the Company must honor all conversions occurring by virtue of one or more Notices of Conversion of the Purchaser during the Repayment Period.

The Additional Debenture also includes customary negative and affirmative covenants, as well as events of default, the occurrence of which will cause the Additional Debenture to bear interest at a default rate of 18% per annum.

On April 24, 2025, the Additional Debenture was increased by $750,000 as a result of the Company filing a registration statement on Form S-4 in connection with the Merger. On June 18, 2025 the Additional Debenture was increased by $250,000 as an advance against the $500,000 tranche due upon the Registration Statement being declared effective by the SEC. The remaining $250,000 was funded upon the Registration Statement being declared effective by the SEC.

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Registration Rights Agreement

Pursuant to the terms of the Purchase Agreement, on the Additional Closing Date, the Company and the Purchaser entered into a Registration Rights Agreement (the “Registration Rights Agreement”). The Company filed a registration statement on Form S-3 as required and the registration statement was declared effective by the SEC on May 5, 2025.

Security Agreement

Pursuant to the terms of the Purchase Agreement, on the Additional Closing Date, the Company, Blackbox.io Inc., a wholly-owned subsidiary of the Company (the “Subsidiary” or “Blackbox Operating”), and the Agent entered into a Security Agreement (the “Security Agreement”) which grants the Agent and Purchaser a first priority security interest in substantially all of the assets of the Company to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Additional Debenture. Pursuant to the Security Agreement, the Subsidiary will act as a guarantor with respect to the Company’s obligations under the Additional Debenture.

Subsidiary Guarantee

Pursuant to the terms of the Purchase Agreement, on the Additional Closing Date, our Subsidiary entered into a Subsidiary Guarantee (the “Subsidiary Guarantee”) in favor of the Purchaser, pursuant to which the Subsidiary agreed to guarantee all of the Company’s obligations under the Additional Debenture.

Placement Agent Agreement

Palladium Capital Group, LLC (the “Placement Agent”) served as our exclusive financial advisor in connection with the sale and issuance of the Additional Debenture described above, pursuant to a Placement Agent Agreement entered into by and between the Company and the Placement Agent dated as of January 10, 2025 (the “Placement Agent Agreement”). The Company agreed to pay a placement agent fee upon closing of the Debentures an amount equal to 8% of the gross proceeds from the sale of the Debentures.

Such fee was paid through the issuance of a Senior Convertible Debenture Due the Earlier of the Trigger Date and March 10, 2026 in the principal amount of up to $184,000. The Placement Agent Debenture has substantially the same terms as the Additional Debenture, except that the Placement Agent Debenture is unsecured. Palladium Capital Group will also receive a warrant equal for 33,700 shares at an exercise of $5.46 per share.

Pursuant to the Placement Agent Agreement, we issued the Placement Agent a Senior Convertible Debenture Due the Earlier of the Trigger Date and March 10, 2026 in the principal amount of up to $184,000. The Placement Agent Debenture has substantially the same terms as the Additional Debenture, except that the Placement Agent Debenture is unsecured

Recent Updates relating to the REalloys Merger

On January 16, 2026, the SEC declared the Company’s registration statement on Form S-4 relating to the proposed Merger with REalloys Inc.

Subsequently, on January 30, 2026 the Company’s stockholders approved the following items related to the Merger:

●

pursuant to Nasdaq Listing Rule 5635(a), the issuance of shares of Blackboxstocks common stock to (i) each holder of outstanding shares of REalloys common stock and (ii) each holder of Series X Preferred Stock, upon conversion of Series C Preferred Stock, including by operation of certain anti-dilution adjustments contained therein, which will represent more than 20% of the shares of Blackboxstocks common stock outstanding immediately prior to the Merger, pursuant to the terms of the Merger Agreement, by and among Blackboxstocks, Merger Sub and REalloys and (b) pursuant to Nasdaq Listing Rules 5635(b), the change of control resulting from the transactions contemplated by the Merger Agreement, including the Merger;

●

the 2025 Long-Term Incentive Plan; and

an amendment to the Blackboxstocks Articles of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 100,000,000 to 350,000,000,

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Corporate Information

Our principal executive offices are located at 5430 LBJ Freeway, Suite 1485, Dallas, Texas 75240, and our telephone number is (972) 726-9203. Our website is https://~~blackboxstocks~~Blackboxstocks.com. The information on, or that can be accessed through, our website is not part of this Report on Form 10-K. We have included our website address as an inactive textual reference only.

Additional Information

We file annual reports on Form 10-K and quarterly reports on Form 10-Q with the Securities and Exchange Commission (the “SEC”) on a regular basis, and disclose certain material events in current reports on Form 8-K. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Exchange Act are available free of charge on our investor relations section of our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC"). The SEC also maintains an Internet website that contains reports and other information regarding issuers, such as Blackboxstocks, that can be filed electronically with the SEC. The SEC's Internet website is located at http://www.sec.gov.

Item 1A.

Risk Factors

An investment in our securities involves a high degree of risk. You should consider carefully the risks and uncertainties described below, together with all of the other information contained in this Report, including our financial statements and related notes, before deciding to invest in our securities. If any of the following events occur, our business, financial condition and operating results may be materially adversely affected. In that event, the trading price of our securities could decline, and you could lose all or part of your investment. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business or results of operations.

Risks Related to Ownership of Our Common Stock

We may not be able to satisfy listing requirements of Nasdaq or maintain a listing of our common stock on Nasdaq.

We are required to meet certain financial and liquidity criteria to maintain our Nasdaq listing. If we violate or fail to satisfy Nasdaq listing requirements, our common stock may be delisted. In addition, our board of directors may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our common stock from Nasdaq may materially impair our stockholders’ ability to buy and sell our common stock and could have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common stock would significantly impair our ability to raise capital and the value of your investment.

If our shares of securities become subject to the penny stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not maintain a listing on Nasdaq or another national securities exchange and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.

Fluctuations in our quarterly revenues may cause the price of our common stock to decline.

Our operating results have varied significantly from quarter to quarter in the past, and we expect our operating results to vary from quarter to quarter in the future due to a variety of factors, many of which are outside of our control. Therefore, if revenues are below our expectations, this shortfall is likely to adversely and disproportionately affect our operating results. Accordingly, we may not attain positive operating margins in future quarters. Any of these factors could cause our operating results to be below the expectations of securities analysts and investors, which likely would negatively affect the price of our common stock.

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We are a “controlled company” within the meaning of the Nasdaq rules and, as a result, qualify for, and may elect to rely on, exemptions from certain corporate governance requirements that provide protection to the stockholders of companies that are subject to such corporate governance requirements.

Gust C. Kepler, who serves as a director, President and Chief Executive Officer of the Company, beneficially owns more than 50% of the voting power for the election of members of our board of directors. As a result, we are and will continue to be a “controlled company” within the meaning of the corporate governance standards of the Nasdaq rules. Under these rules, a listed company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company” and may elect not to comply with certain of Nasdaq’s corporate governance requirements.

As a controlled company, we may rely on certain exemptions from the Nasdaq standards that may enable us not to comply with certain Nasdaq corporate governance requirements. As a consequence, in the event that we elect to rely on certain exemptions from the Nasdaq standards provided to “controlled companies,” you will not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the Nasdaq Capital Market.

~~We do not anticipate paying any cash dividends in the foreseeable future.~~18

~~The~~Table ~~SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price~~ of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not maintain a listing on Nasdaq or another national securities exchange and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.Contents

Risks Related to Our Business

We expect to invest in growing our business, which may cause our sales and marketing, research and development, and other expenses to increase and our margins to decline.

We believe that our revenue growth, as well as our ability to improve or maintain margins and profitability, will depend upon, among other factors, our ability to address the challenges, risks, and difficulties described elsewhere in this “Risk Factors” section and the extent to which our various service offerings grow and contribute to our results of operations. We cannot provide assurance that we will be able to successfully manage any such challenges or risks to our future growth. In addition, our customer base may not continue to grow or may decline due to a variety of possible risks, including increased competition, changes in the regulatory landscape, and the maturation of our business. Any of these factors could cause our revenue growth to decline and may adversely affect our margins and profitability. Failure to continue our revenue growth or margin improvement could have a material adverse effect on our business, financial condition, and results of operations. You should not rely on our historical rate of revenue growth as an indication of our future performance.

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If we do not continue to attract new subscriber customers, or if existing customers do not renew their subscriptions, or renew on less favorable terms, it could have a material adverse effect on our business, financial condition, and results of operations.

In order to grow our business, we must continually attract new subscribing customers and reduce the level of non-renewals in our business. Our ability to do so depends in large part on the success of our sales and marketing efforts. We may not accurately predict future trends with respect to rates of customer renewals. Our subscribing customer base may decline or fluctuate due to a number of factors, including the prices of our subscriptions, the prices of services offered by our competitors and the efficacy and cost-effectiveness of our solutions. If we are unable to retain and increase sales of our Blackbox System platform to existing subscribing customers or attract new ones for any of the reasons above or for other reasons, our business, financial condition, and results of operations could be adversely affected.

In order to achieve profitability, we must increase revenue levels.

We need to increase current revenue levels by increasing paid subscriptions to our Blackbox System platform or develop additional revenue sources from new products, services or applications if we are to attain and maintain consistent profitability. If we are unable to achieve increased revenue levels, losses could continue for the near term and possibly longer, and we may not attain profitability or generate positive cash flow from operations in the future.

We intend to introduce new products and services. There can be no assurance that we will be able to introduce such products and services effectively or profitably.

We intend to expand our product and service offering including the introduction of products and services which employ and expand upon our current proprietary system and technology. These products and services are expected to include applications targeted for investors who are not day traders or swing traders and products designed for professional traders. We introduced certain products and services in 2024 and 2025, including educational products and expect to continue to introduce additional products and services in ~~2025~~2026 ~~and~~as well as spend significant capital on advertising and marketing of such products and services. If we are unable to generate significant revenue from ~~this~~these or other new products and services, we may incur significant operating losses.

We expect to face increasing competition in the market for our platform and services.

We face significant competition and we expect such competition to increase. Our industry and the markets we serve are evolving rapidly and becoming increasingly competitive. Larger and more established companies may focus on our markets and could directly compete with us. Smaller companies could also launch new platforms and services that compete with us and that could gain market acceptance quickly. We also expect our existing competitors in the markets to continue to focus on these areas. A number of these companies may have greater financial, technological, and other resources than we do and greater name recognition than us, which may enable them to compete more effectively. Specifically, we believe the following companies to be direct competitors: Trade Ideas, Flow Algo, Unusual Whales and Trade Alert. Companies with social media platforms dedicated to financial markets include Discord, Stock Twits and Wall Street Bets. Our competitors may announce new products, services, or enhancements that better address changing industry standards or the needs of our customers, such as mobile access. Any such increased competition could cause pricing pressure, loss of market share, or decreased customer engagement, any of which could adversely affect our business and operating results.

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If we are not able to maintain and enhance our reputation and brand recognition, our business, financial conditions and results of operations will be harmed.

We believe that maintaining and enhancing our reputation and brand recognition is critical to our relationships with existing subscribing customers and our ability to attract new subscribing customers. The promotion of our brand may require us to make substantial investments and we anticipate that, as our market becomes increasingly competitive, these marketing initiatives may become increasingly difficult and expensive. Our marketing activities may not be successful or yield increased revenue, and to the extent that these activities yield increased revenue, the increased revenue may not offset the expenses we incur, and our results of operations could be harmed. In addition, any factor that diminishes our reputation or that of our management, including failing to meet the expectations of our customers, could make it substantially more difficult for us to attract new customers. Similarly, because our subscribing customers often act as references for us with prospective new customers, any existing customer that questions the quality of our work or that of our employees could impair our ability to secure additional new customers. If we do not successfully maintain and enhance our reputation and brand recognition with our customers, our business may not grow and we could lose these relationships, which would harm our business, financial condition, and results of operations.

The estimates of market opportunity and forecasts of market growth included in this report may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all.

Market opportunity estimates and growth forecasts included in this report are subject to significant uncertainty and are based on assumptions and estimates which may not prove to be accurate. The estimates and forecasts included in this report relating to size and expected growth of our target market may prove to be inaccurate. Even if the markets in which we compete meet the size estimates and growth forecasts included in this report, our business may not grow at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties.

We rely on software-as-a-service, or SaaS, technologies from third parties.

We rely on SaaS technologies from third parties in order to operate critical functions of our business, including financial management services, relationship management services, marketing services and data storage services. Some of our vendor agreements may be unilaterally terminated by the counterparty for convenience. If these services become unavailable due to contract cancellations, extended outages or interruptions, because they are no longer available on commercially reasonable terms or prices, or for any other reason, our expenses could increase, our ability to manage our finances could be interrupted, our processes for managing our offerings and supporting our consumers and partners could be impaired, and our ability to access or save data stored to the cloud may be impaired until equivalent services, if available, are identified, obtained, and implemented, all of which could harm our business, financial condition, and results of operations.

Any restrictions on our use of, or ability to license data, or our failure to license data and integrate third-party technologies, could have a material adverse effect on our business, financial condition, and results of operations.

We depend upon licenses from third parties for some of the technology and data used in our applications, and for some of the technology platforms upon which these applications are built and operate. We expect that we may need to obtain additional licenses from third parties in the future in connection with the development of our solutions and services. In addition, we obtain a portion of the data that we use from various securities and option exchanges. We believe that we have all rights necessary to use the data that is incorporated into our solutions and services. However, we cannot assure you that our licenses for information will allow us to use that information for all potential or contemplated applications and solutions.

In the future, data providers could withdraw their data from us or restrict our usage for any reason, including if there is a competitive reason to do so, if legislation is passed restricting the use of the data, or if judicial interpretations are issued restricting use of the data that we currently use in our solutions and services. If a substantial number of data providers were to withdraw or restrict their data and if we are unable to identify and contract with suitable alternative data suppliers and integrate these data sources into our service offerings, our ability to provide solutions and services to our subscribing customers would be materially adversely impacted, which could have a material adverse effect on our business, financial condition, and results of operations.

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We also integrate into our proprietary applications and use third-party software to maintain and enhance, among other things, content generation and delivery, and to support our technology infrastructure. Our use of third-party technologies exposes us to increased risks, including, but not limited to, risks associated with the integration of new technology into our solutions, the diversion of our resources from development of our own proprietary technology, and our inability to generate revenue from licensed technology sufficient to offset associated acquisition and maintenance costs. These technologies may not be available to us in the future on commercially reasonable terms or at all and could be difficult to replace once integrated into our own proprietary applications. Most of these licenses can be renewed only by mutual consent and may be terminated if we breach the terms of the license and fail to cure the breach within a specified period of time. Our inability to obtain, maintain, or comply with any of these licenses could delay development until equivalent technology can be identified, licensed, and integrated, which would harm our business, financial condition, and results of operations.

Most of our third-party licenses are non-exclusive and our competitors may obtain the right to use any of the technology covered by these licenses to compete directly with us. If our data suppliers choose to discontinue support of the licensed technology in the future, we might not be able to modify or adapt our own solutions.

We are dependent on a limited number of key executives and employees, the loss of which could negatively impact our business.

Our business is led by our CEO Gust Kepler and a small group of key employees. The loss of one or more of these executives could negatively impact our business.

Risks Related to Intellectual Property

We may not be able to halt the operations of entities that copy our intellectual property or that aggregate our data as well as data from other companies, including social networks, or copycat online services that may misappropriate our data. These activities could harm our brand and our business.

From time to time, third parties may try to access content or data from our networks through scraping, robots, or other means and use this content and data or combine this content and data with other content and data as part of their services. These activities could degrade our brand, negatively impact our platform and system performance and harm our business. We have employed contractual, technological or legal measures in an attempt to halt unauthorized activities, but these measures may not be successful. In addition, if our customers do not comply with our terms of service, they also may be able to abuse our tools, solutions, and services and provide access to our solutions and content to unauthorized users. We may not be able to detect any or all of these types of activities in a timely manner and, even if we could, technological and legal measures may be insufficient to stop these actions. In some cases, particularly in the case of online services operating from outside of the United States, our available legal remedies may not be adequate to protect our business against such activities. Regardless of whether we can successfully enforce our rights against these parties, any measures that we may take could require us to expend significant financial or other resources.

Third parties may initiate legal proceedings alleging that we are infringing or otherwise violating their intellectual property rights, the outcome of which would be uncertain and could have a material adverse effect on our business, financial condition, and results of operations.

Our commercial success depends on our ability to develop and commercialize our platform, products and services and use our proprietary technology without infringing the intellectual property or proprietary rights of third parties. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business with respect to intellectual property. We are not currently subject to any material claims from third parties asserting infringement of their intellectual property rights.

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Intellectual property disputes can be costly to defend and may cause our business, operating results, and financial condition to suffer. Whether merited or not, we have in the past and may in the future face allegations that we, our partners, our licensees, or parties indemnified by us have infringed or otherwise violated the patents, trademarks, copyrights, or other intellectual property rights of third parties. Such claims may be made by competitors seeking to obtain a competitive advantage or by other parties. Some third parties may be able to sustain the costs of complex litigation more effectively than we can because they have substantially greater resources. Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our technical and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a material adverse effect on the price of our common stock. Moreover, any uncertainties resulting from the initiation and continuation of any legal proceedings could have a material adverse effect on our ability to raise the funds necessary to continue our operations. Assertions by third parties that we violate their intellectual property rights could therefore have a material adverse effect on our business, financial condition, and results of operations.

Failure to maintain, protect, or enforce our intellectual property rights could harm our business and results of operations.

We may pursue the registration of our domain names, trademarks, and service marks in the United States. We also strive to protect our intellectual property rights by relying on federal, state, and common law rights, as well as contractual restrictions. We typically enter into confidentiality and invention assignment agreements with our employees and contractors, and confidentiality agreements with parties with whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information. However, we may not be successful in executing these agreements with every party who has access to our confidential information or contributes to the development of our technology or intellectual property rights. Those agreements that we do execute may be breached, and we may not have adequate remedies for any such breach. These contractual arrangements and the other steps we have taken to protect our intellectual property rights may not prevent the misappropriation or disclosure of our proprietary information nor deter independent development of similar technology or intellectual property by others.

Effective trade secret, patent, copyright, trademark and domain name protection is expensive to obtain, develop and maintain, both in terms of initial and ongoing registration or prosecution requirements and expenses and the costs of defending our rights. We have invested in and may, over time, increase our investment in protecting our intellectual property through patent filings that could be expensive and time-consuming. Our trademarks and other intellectual property rights may be challenged by others or invalidated through administrative process or litigation. We have not yet applied for or obtained any issued patents that provide protection for our technology or products. Moreover, any issued patents we may obtain may not provide us with a competitive advantage and, as with any technology, competitors may be able to develop similar or superior technologies to our own, now or in the future. In addition, due to a recent U.S. Supreme Court case, it has become increasingly difficult to obtain and assert patents relating to software or business methods, as many such patents have been invalidated for being too abstract to constitute patent-eligible subject matter. We do not know whether this will affect our ability to obtain patents on our innovations, or successfully assert any patents we may pursue in litigation or pre-litigation campaigns.

Monitoring unauthorized use of the content on our platform, and our other intellectual property and technology, is difficult and costly. Our efforts to protect our proprietary rights and intellectual property may not have been and may not be adequate to prevent their misappropriation or misuse. Third parties, including our competitors, could be infringing, misappropriating, or otherwise violating our intellectual property rights. We may not be successful in stopping unauthorized use of our content or other intellectual property or technology. Further, we may not have been and may not be able to detect unauthorized use of our technology or intellectual property, or to take appropriate steps to enforce our intellectual property rights. Any inability to meaningfully enforce our intellectual property rights could harm our ability to compete and reduce demand for our solutions and services. Our competitors may also independently develop similar technology. Effective patent, trademark, copyright and trade secret protection may not be available to us in every jurisdiction in which our solutions or technology are hosted or available. Further, legal standards relating to the validity, enforceability, and scope of protection of intellectual property rights are uncertain. The laws in the United States and elsewhere change rapidly, and any future changes could adversely affect us and our intellectual property. Our failure to meaningfully protect our intellectual property rights could result in competitors offering solutions that incorporate our most technologically advanced features, which could reduce demand for our solutions.

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We may find it necessary or appropriate to initiate claims or litigation to enforce our intellectual property rights, protect our trade secrets, or determine the validity and scope of intellectual property rights claimed by others. In any lawsuit we bring to enforce our intellectual property rights, a court may refuse to stop the other party from using the technology at issue on grounds that our intellectual property rights do not cover the use or technology in question. Further, in such proceedings, the defendant could counterclaim that our intellectual property is invalid or unenforceable and the court may agree, in which case we could lose valuable intellectual property rights. Litigation is inherently uncertain and any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could adversely affect our business and results of operations. If we fail to maintain, protect, and enforce our intellectual property, our business and results of operations may be harmed.

The laws of some foreign countries do not protect intellectual property rights to the same extent as the laws of the United States. Many companies have encountered significant problems in protecting and defending intellectual property rights in certain foreign jurisdictions. The legal systems of some countries, particularly developing countries, do not favor the enforcement of intellectual property protection. This could make it difficult for us to stop the infringement or misappropriation of our intellectual property rights. Proceedings to enforce our intellectual property in foreign jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business. In addition, changes in the law and legal decisions by courts in the United States and foreign countries may affect our ability to obtain adequate protection for our technology and the enforcement of intellectual property.

If our trademarks and trade names are not adequately protected, we may not be able to build name recognition in our markets of interest and our business may be adversely affected.

We believe that our brand is critical to the success of our business, and we plan to utilize trademark registration and other means to protect it. Our business would be harmed if we were unable to protect our brand against infringement and its value was to decrease as a result.

We have registered our “Blackboxstocks” tradename and logo with the USPTO. We may apply for registration of additional product name or marks.

The registered or unregistered trademarks or trade names that we own or license may be challenged, infringed, circumvented, declared generic, lapsed, or determined to be infringing on or dilutive of other marks. We may not be able to protect our rights in these trademarks and trade names, which we need in order to build name recognition with customers and potential partners. In addition, third parties may in the future file for registration of trademarks similar or identical to our trademarks. If they succeed in registering or developing common law rights in such trademarks, and if we are not successful in challenging such third-party rights, we may not be able to use these trademarks to commercialize our technologies or solutions in certain relevant countries. If we are unable to establish name recognition based on our trademarks and trade names, we may not be able to compete effectively and our business may be adversely affected.

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If we are unable to protect the confidentiality of our trade secrets, our business and competitive position could be harmed.

We rely heavily on trade secrets and confidentiality agreements to protect our unpatented know-how, technology, and other proprietary information, including our technology platform, and to maintain our competitive position. With respect to our technology platform, we consider trade secrets and know-how to be one of our primary sources of intellectual property. However, trade secrets and know-how can be difficult to protect. We seek to protect these trade secrets and other proprietary technology in part by entering into non-disclosure and confidentiality agreements with parties who have access to them, such as our employees, outside contractors, consultants, advisors, and other third parties. We also enter into confidentiality and invention or patent assignment agreements with our employees and consultants. The confidentiality agreements are designed to protect our proprietary information and, in the case of agreements or clauses containing invention assignment, to grant us ownership of technologies that are developed through a relationship with employees or third parties. We cannot guarantee that we have entered into such agreements with each party that may have or have had access to our trade secrets or proprietary information, including our technology and processes. Despite these efforts, no assurance can be given that the confidentiality agreements we enter into will be effective in controlling access to such proprietary information and trade secrets. The confidentiality agreements on which we rely to protect certain technologies may be breached, may not be adequate to protect our confidential information, trade secrets, and proprietary technologies and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information, trade secrets, or proprietary technology. Further, these agreements do not prevent our competitors or others from independently developing the same or similar technologies and processes, which may allow them to provide a service similar or superior to ours, which could harm our competitive position.

Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive, and time-consuming, and the outcome is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade secrets. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us. If any of our trade secrets were to be disclosed to or independently developed by a competitor or other third party, it could harm our competitive position, business, financial condition, results of operations, and prospects.

If we fail to comply with our obligations under license or technology agreements with third parties, we may be required to pay damages and we could lose license rights that are critical to our business.

We license certain intellectual property, including technologies and software from third parties, that is important to our business, and we may enter into future additional agreements that provide us with licenses to valuable intellectual property or technology. If we fail to comply with any of the obligations under our license agreements, we may be required to pay damages and the licensor may have the right to terminate the license. Termination by the licensor would cause us to lose valuable rights, and could prevent us from selling our solutions and services, or adversely impact our ability to commercialize future solutions and services. Our business would suffer if any current or future licenses terminate, if the licensors fail to abide by the terms of the license, if the licensors fail to enforce licensed patents against infringing third parties, if the licensed intellectual property are found to be invalid or unenforceable, or if we are unable to enter into necessary licenses on acceptable terms. In addition, our rights to certain technologies are licensed to us on a non-exclusive basis. The owners of these non-exclusively licensed technologies are therefore free to license them to third parties, including our competitors, on terms that may be superior to those offered to us, which could place us at a competitive disadvantage. Moreover, our licensors may own or control intellectual property that has not been licensed to us and, as a result, we may be subject to claims, regardless of their merit, that we are infringing or otherwise violating the licensor’s rights. In addition, the agreements under which we license intellectual property or technology from third parties are generally complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology, or increase what we believe to be our financial or other obligations under the relevant agreement. Any of the foregoing could harm our competitive position, business, financial condition, results of operations, and prospects.

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If we cannot license rights to use intellectual property on reasonable terms, we may not be able to commercialize new solutions or services in the future.

In the future, we may identify additional third-party intellectual property we may need to license in order to engage in our business, including to develop or commercialize new solutions or services. However, such licenses may not be available on acceptable terms or at all. The licensing or acquisition of third-party intellectual property rights is a competitive area, and several more established companies may pursue strategies to license or acquire third-party intellectual property rights that we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size, capital resources, and greater development or commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. Even if such licenses are available, we may be required to pay the licensor substantial royalties based on sales of our solutions and services. Such royalties are a component of the cost of our solutions or services and may affect the margins on our solutions and services. In addition, such licenses may be non-exclusive, which could give our competitors access to the same intellectual property licensed to us. If we are unable to enter into the necessary licenses on acceptable terms or at all, if any necessary licenses are subsequently terminated, if our licensors fail to abide by the terms of the licenses, if our licensors fail to prevent infringement by third parties, or if the licensed intellectual property rights are found to be invalid or unenforceable, our business, financial condition, results of operations, and prospects could be affected. If licenses to third-party intellectual property rights are, or become required for us, to engage in our business, the rights may be non-exclusive, which could give our competitors access to the same technology or intellectual property rights licensed to us. Moreover, we could encounter delays and other obstacles in our attempt to develop alternatives. Defense of any lawsuit or failure to obtain any of these licenses on favorable terms could prevent us from commercializing solutions and services, which could harm our competitive position, business, financial condition, results of operations, and prospects.

Risks Relating to the Merger

The Company will allocate time and resources to effecting the Merger and incur non-recurring costs related to the REalloys Merger.

The Company and its management have allocated and will continue to be required to allocate time and resources to effecting the completion of the pending Merger transaction with REalloys and related and incidental activities. There is a risk that the challenges associated with managing these various Merger initiatives may have a business impact and that consequently the underlying businesses will not perform in line with expectations. This could have an adverse effect on the reputation, business, financial condition or results of operations of the Company.

In addition, the Company expects to incur a number of non-recurring costs associated with the Merger, including taxes, legal fees, advisor fees, filing fees, mailing expenses, and financial printing expenses. There can be no assurance that the actual costs will not exceed those estimated and the actual completion of the Merger may result in additional and unforeseen expenses. Many of these costs will be payable whether or not the Merger is completed. While it is expected that benefits of the Merger achieved by the Company will offset these transaction costs over time, this net benefit may not be achieved in the short-term or at all, particularly if the Merger are delayed or does not happen at all. These combined factors could adversely affect the business, results of operations or financial condition of the Company.

The Merger will require REalloys Inc. to apply for an initial listing on Nasdaq which may not be granted.

The Merger is expected to be treated as a reverse merger by Nasdaq which will require the post-Merger Company to apply for an initial listing on the Nasdaq Capital Market. There are numerous listing requirements including but not limited to minimum equity requirements and certain minimum requirements for stockholder holdings and a minimum bid price of $4.00 per share. There can be no assurance that the Company will be able to meet the initial listing requirements of the Nasdaq Capital Market which could result in either the Company’s delisting or termination of the Merger.

The calculation of the number of Blackboxstocks shares to be issued may be adjusted if there is a change in REalloys share capital between the date of Merger Agreement and Closing.

The calculation of the number of Company shares to be issued in the Merger may be adjusted in the event that REalloys issues any share capital between the date of the Merger Agreement and Closing pursuant to the exchange ratio in the Merger Agreement. The parties may not be permitted to terminate the Merger Agreement because of changes in the exchange ratio.

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The Merger may not be completed on the terms or timeline currently contemplated, or at all, as Blackboxstocks or REalloys may be unable to satisfy conditions or obtain the approvals required to complete the Merger or such approvals may contain material restrictions or conditions.

Completion of the Merger is subject to numerous conditions. Although the Company is diligently applying its efforts to take, or cause to be taken, all actions to do, or cause to be done, all things necessary, proper or advisable to consummate the Merger, there can be no assurance that these conditions will be fulfilled or that the Merger will be completed on the terms or timeline currently contemplated, or at all. We have and will continue to expend time and resources and incur expenses related to the Merger. Many of these expenses must be paid regardless of whether the Merger are consummated. Governmental agencies and/or the Nasdaq may not approve the Merger, may impose conditions to the approval of the Merger or require changes to the terms of the Merger. Any such conditions or changes could have the effect of delaying completion of the Merger, imposing costs on or limiting the revenues of the Company following the Merger or otherwise reducing the anticipated benefits of the Merger.

Completion of the Merger may trigger certain provisions in agreements to which the Company or its operating subsidiary is a party.

The completion of the Merger may trigger certain change in control, consent, assignment or other provisions in agreements to which the Company, its subsidiary Blackbox.io, or REalloys is a party. In addition, the completion of the Merger may trigger certain technical provisions in agreements to which the Company, Blackbox.io or REalloys is a party. If such parties are unable to assert that such provisions should not apply, or the parties are unable to comply with or negotiate waivers of those provisions, the counterparties may exercise their rights and remedies under the agreements, including potentially terminating such agreements or seeking monetary damages. Even if the Company, Blackbox.io or REalloys is able to negotiate waivers, the counterparties may require a fee for such waivers or seek to renegotiate the agreements on terms less favorable to the Company.

Failure to complete the Merger could adversely affect the market price of our common shares as well as our business, financial condition and results of operations.

If the Merger is not completed for any reason, the price of our common shares may decline, and our business, financial condition and results of operations may be impacted to the extent that the market price of our common shares reflects positive market assumptions that the Merger will be completed and the related expected benefits will be realized; based on significant expenses, such as legal, advisory and financial services which generally must be paid regardless of whether the Merger is completed; based on potential disruption of our business and distraction of our workforce and management team and other contemplated transactions under the Merger Agreement (the “Contemplated Transactions”).

The announcement and pendency of the Merger could have an adverse effect on the stock price of our common shares as well as our business, financial condition, results of operations or business prospects.

The announcement and pendency of the Merger could disrupt our businesses in negative ways. For example, customers and other third-party business partners may seek to terminate and/or renegotiate their relationships with the Company as a result of the Merger, whether pursuant to the terms of their existing agreements or otherwise. In addition, current and prospective employees may experience uncertainty regarding their future roles with the Company upon consummation of the Merger, which might adversely affect our ability to retain, recruit and motivate key personnel. Should they occur, any of these events could adversely affect the stock price of our common shares, or harm our financial condition, results of operations or business prospects.

We may have difficulty attracting, motivating and retaining executives and other employees in light of the Merger.

We may have difficulty attracting, motivating and retaining executives and other employees in light of the Merger. Uncertainty about the effect of the Merger on our employees may have an adverse effect. This uncertainty may impair our ability to attract, retain and motivate personnel until the Merger is completed.

Litigation relating to the Merger, if any, could result in an injunction preventing the completion of the Merger and/or substantial costs to the Company.

Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition, merger or other business combination agreements like the Merger Agreement. Even if such a lawsuit is without merit, defending against these claims can result in substantial costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact on our liquidity and financial condition. Lawsuits that may be brought against us or our directors could also seek, among other things, injunctive relief or other equitable relief, including a request to rescind parts of the Merger Agreement already implemented and to otherwise enjoin the parties from consummating the Merger. One of the conditions to the closing of the Merger is that no order preventing the consummation of the Contemplated Transactions shall have been issued by and governmental authority of competent jurisdiction and remain in effect and that there shall not be any law which has the effect of making the consummation of the Contemplated Transactions illegal. Consequently, if a plaintiff is successful in obtaining an injunction prohibiting completion of the Merger, that injunction may delay or prevent the Merger from being completed within the expected time frame or at all, which may adversely affect our business, financial position and results of operations.

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General Risk Factors

If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our stock, or if our results of operations do not meet their expectations, our stock price and trading volume could decline.

The trading market for our securities will be influenced by the research and reports that securities or industry analysts publish about us or our business (or the absence of such research or reports). If one or more of these analysts cease coverage of our Company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. Moreover, if one or more of the analysts who cover us downgrade recommendations regarding our stock, or if our results of operations do not meet their expectations, our stock price could decline and such decline could be material.

We are an “emerging growth company” and our compliance with the reduced reporting and disclosure requirements applicable to “emerging growth companies” may make our common stock less attractive to investors.

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, and we have elected to take advantage of certain exemptions and relief from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” These provisions include, but are not limited to: being permitted to have only two years of audited financial statements and only two years of related management’s discussion and analysis of financial condition and results of operations disclosures; being exempt from compliance with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act; being subject to reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and not being required to hold nonbinding advisory votes on executive compensation or on any golden parachute payments not previously approved.

In addition, while we are an “emerging growth company,” we will not be required to comply with any new financial accounting standard until such standard is generally applicable to private companies. As a result, our financial statements may not be comparable to companies that are not “emerging growth companies” or elect not to avail themselves of this provision.

We may remain an “emerging growth company” until as late as December 31, 2026, the fiscal year-end following the fifth anniversary of the completion of our initial public offering, though we may cease to be an “emerging growth company” earlier under certain circumstances, including if (i) we have more than $1.07 billion in annual revenue in any fiscal year, (ii) we become a “large accelerated filer,” with at least $700 million of equity securities held by non-affiliates as of the end of the second quarter of that fiscal year, or (iii) we issue more than $1.0 billion of non-convertible debt over a three-year period.

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The exact implications of the JOBS Act are still subject to interpretations and guidance by the SEC and other regulatory agencies, and we cannot assure you that we will be able to take advantage of all of the benefits of the JOBS Act. In addition, investors may find our common stock less attractive to the extent we rely on the exemptions and relief granted by the JOBS Act. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may decline or become more volatile.

If we are unable to implement and maintain effective internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports.

As a public company, we are required to maintain internal controls over financial reporting and to report any material weaknesses in such internal controls. We are required to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. However, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act until the date we are no longer an “emerging growth company” as defined in the JOBS Act. Accordingly, you will not be able to depend on any attestation concerning our internal control over financial reporting from our independent registered public accounting firm for the foreseeable future.

The process of designing and implementing internal controls over financial reporting is time consuming, costly, and complicated. If during the evaluation and testing process, we identify one or more material weaknesses in our internal control over financial reporting or determine that existing material weaknesses have not been remediated, our management will be unable to assert that our internal control over financial reporting is effective. Even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm may conclude that there are material weaknesses with respect to our internal controls or the level at which our internal controls are documented, designed, implemented, or reviewed. If we are unable to assert that our internal control over financial reporting is effective, or when required in the future, if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the valuation of our common stock could be adversely affected.

Compliance with public reporting requirements have and will continue to affect the Company’s financial resources.

The Company is subject to certain public reporting obligations as required by federal securities laws, regulations and agencies. The compliance with such reporting requirements will require the company to incur significant legal, accounting and other administrative expenses. The expenses the Company may incur will have a significant impact on the Company’s financial resources and may lead to a decrease in the value and price of our common stock.

We rely on network infrastructure and our ability to maintain and scale our business and maintain competitiveness. Any significant interruptions or delays in service on our apps or websites or any undetected errors or design faults could adversely affect our business, financial condition and results of operations.

We depend on the use of information technologies and systems and our reputation and ability to acquire, retain, and serve our customers are dependent upon the reliable performance of our apps and websites and the underlying network infrastructure. As our operations grow, we must continuously improve and upgrade our systems and infrastructure while maintaining or improving the reliability and integrity of our infrastructure. Our future success also depends on our ability to adapt our systems and infrastructure to meet rapidly evolving consumer trends and demands while continuing to improve the performance, features and reliability of our solutions in response to competitive services and offerings. We expect the use of alternative platforms such as tablets and smartphones will continue to grow and the emergence of niche competitors who may be able to optimize offerings, services, or strategies for such platforms will require new investment in technology. New developments in other areas, such as cloud computing, have made it easier for competition to enter our markets due to lower up-front technology costs. In addition, we may not be able to maintain our existing systems or replace or introduce new technologies and systems as quickly as we would like or in a cost-effective manner. There is also no guarantee that we will possess the financial resources or personnel, for the research, design, and development of new applications or services, or that we will be able to utilize these resources successfully and avoid technological or market obsolescence. Further, there can be no assurance that technological advances by one or more of our competitors or future competitors will not result in our present or future applications and services becoming uncompetitive or obsolete. If we were unable to enhance our offerings and network capabilities to keep pace with rapid technological and regulatory change, or if new technologies emerge that are able to deliver competitive offerings at lower prices, more efficiently, more conveniently, or more securely than our platform offerings, our business, financial condition and results of operations could be adversely affected.

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Risks Related to the Proposed Merger

The Company will allocate time and resources to effecting the Merger and incur non-recurring costs related to the REalloys Merger.

In addition, the Company has and expects to continue to incur a number of non-recurring costs associated with the Merger, including taxes, legal fees, advisor fees, filing fees, mailing expenses, and financial printing expenses. There can be no assurance that the actual costs will not exceed those estimated and the actual completion of the Merger may result in additional and unforeseen expenses. Many of these costs will be payable whether or not the Merger is completed. While it is expected that benefits of the Merger achieved by the Company will offset these transaction costs over time, this net benefit may not be achieved in the short-term or at all, particularly if the Merger are delayed or does not happen at all. These combined factors could adversely affect the business, results of operations or financial condition of the Company.

The calculation of the number of Blackboxstocks shares to be issued in the Merger may be adjusted if there is a change in REalloys share capital between the date of Merger Agreement and Closing.

Completion of the Merger may trigger certain provisions in agreements to which the Company or its operating subsidiary is a party.

The completion of the Merger may trigger certain change in control, consent, assignment or other provisions in agreements to which the Company, our subsidiary Blackbox Operating, or REalloys is a party. In addition, the completion of the Merger may trigger certain technical provisions in agreements to which the Company, Blackbox Operating or REalloys is a party. If such parties are unable to assert that such provisions should not apply, or the parties are unable to comply with or negotiate waivers of those provisions, the counterparties may exercise their rights and remedies under the agreements, including potentially terminating such agreements or seeking monetary damages. Even if the Company, Blackbox Operating or REalloys is able to negotiate waivers, the counterparties may require a fee for such waivers or seek to renegotiate the agreements on terms less favorable to the Company.

Failure to complete the Merger could adversely affect the market price of our common stock as well as our business, financial condition and results of operations.

If the Merger is not completed for any reason, the price of our common stock may decline, and our business, financial condition and results of operations may be impacted to the extent that the market price of our common stock reflects positive market assumptions that the Merger will be completed and the related expected benefits will be realized; based on significant expenses, such as legal, advisory and financial services which generally must be paid regardless of whether the Merger is completed; based on potential disruption of our business and distraction of our workforce and management team and other contemplated transactions under the Merger Agreement.

The pendency of the Merger could have an adverse effect on the stock price of our common stock as well as our business, financial condition, results of operations or business prospects.

The pendency of the Merger could disrupt our businesses in negative ways. For example, customers and other third-party business partners may seek to terminate and/or renegotiate their relationships with the Company as a result of the Merger, whether pursuant to the terms of their existing agreements or otherwise. In addition, current and prospective employees may experience uncertainty regarding their future roles with the Company upon consummation of the Merger, which might adversely affect our ability to retain, recruit and motivate key personnel. Should they occur, any of these events could adversely affect the price of our common stock, or harm our financial condition, results of operations or business prospects.

We may have difficulty attracting, motivating and retaining executives and other employees in light of the Merger.

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Litigation relating to the Merger, if any, could result in an injunction preventing the completion of the Merger and/or substantial costs to the Company.

There is no assurance when or if the Merger will be completed. Any delay in completing the Merger may substantially reduce the potential benefits that Blackboxstocks expects to obtain from the Merger.

Completion of the Merger is subject to the satisfaction or waiver of a number of conditions, as set forth in the Merger Agreement, including the approval by Blackboxstocks’ stockholders, approval by Nasdaq of Blackboxstocks’ application for the initial listing of Blackboxstocks’ common stock to be issued in connection with the Merger, and other customary closing conditions. There can be no assurance that Blackboxstocks and REalloys will be able to satisfy the closing conditions or that closing conditions beyond their control will be satisfied or waived. If the conditions are not satisfied or waived, the Merger may not occur or may not be completed within the expected timeframe, and Blackboxstocks may materially and adversely lose some or all of the potential benefits it expects to achieve as a result of the Merger and could result in additional transaction costs or other effects associated with uncertainty about the Merger.

Blackboxstocks and REalloys can agree at any time to terminate the Merger Agreement, even though Blackboxstocks’ stockholders and/or REalloys’ securityholders have already adopted the Merger Agreement and thereby approved the Merger and the other transactions contemplated by the Merger Agreement. Blackboxstocks and REalloys can also terminate the Merger Agreement under other specified circumstances.

In addition, if the Merger Agreement is terminated and our board of directors determines to seek another business combination, it may not be able to find a third party willing to provide equivalent or more attractive consideration than the consideration to be provided by each party in the Merger. In such circumstances, our Board of Directors may elect to, among other things, divest all or a portion of Blackboxstocks’ business, or take the steps necessary to liquidate all of Blackboxstocks’ business and assets, and in either case, the consideration that Blackboxstocks receives may be less attractive than the consideration to be received by Blackboxstocks pursuant to the Merger Agreement.

The issuance of shares of Blackboxstocks common stock to REalloys stockholders in the Merger will substantially dilute the voting power of current Blackboxstocks stockholders. Having a minority share position will reduce the influence that current stockholders have on the management of Blackboxstocks.

Pursuant to the terms of the Merger Agreement, at the Effective Time, Blackboxstocks will issue (or reserve for future issuance) to REalloys stockholders as Merger Consideration: (i) approximately 46,312,574 shares of its common stock, using the assumed Exchange Ratio of 0.3694, (ii) approximately 5,000 shares of Series C Preferred Stock at a ratio of one share of REalloys Preferred Stock to one share of Series C Preferred Stock (which is subject to change depending on the number of outstanding securities of Blackboxstocks and REalloys at the effective time of the Merger), (iii) warrants to purchase up to an aggregate of approximately 4,486,423 shares of Blackboxstocks common stock based on an assumed price of $8.47 per share, the closing price of the Blackboxstocks common stock on Nasdaq on December 26, 2025, and (iv) an aggregate of approximately 355,962 shares of Blackboxstocks common stock as related to the REalloys SAFEs, based on an assumed price of $8.47 per share, the closing price of the Blackboxstocks common stock on Nasdaq on December 26, 2025, in each case after giving effect to the proposed reverse stock split contemplated by the Reverse Stock Split Proposal. As a result, upon completion of the Merger, the current Blackboxstocks stockholders and holders of certain outstanding options and warrants to purchase shares of Blackboxstocks common stock will hold approximately 4,519,055 pre-reverse stock split shares, which is currently expected to be approximately 7.9% of the fully diluted equity of the post-merger combined company (the “Combined Company”). Accordingly, the issuance of the shares of Blackboxstocks common stock to REalloys stockholders in the Merger will significantly reduce the ownership stake and relative voting power of each share of Blackboxstocks common stock held by current Blackboxstocks stockholders. Consequently, following the Merger, the ability of Blackboxstocks’ current stockholders to influence the management of Blackboxstocks will be substantially reduced.

For illustrative purposes, the conversion of REalloys’ Preferred Stock into Series C Preferred Stock, would entitle holders of the former REalloys Preferred stock to 500 votes per share of Series C Preferred Stock, to vote in all matters with holders of Blackboxstocks Common Stock. This illustrative example assumes the 5,000 issued and contingently issuable at December 26, 2025, REalloys Series X Preferred Stock were outstanding and converted to Series C Preferred Stock at a 1:1 ratio, as contemplated in the Merger, with an assumed aggregate Stated Value of $15,000,000 or $3,000 per share, and a hypothetical Nasdaq Minimum Price of Blackboxstocks of $6.00 immediately preceding the Merger. The number of votes attributable to the Series C Preferred Stock has an inverse relationship to Blackboxstocks’ minimum price immediately preceding the Merger completion. This example excludes the impacts of potential Make-Whole, dividends in arrears, and any other adjustments to Stated Value as contemplated by terms of the REalloys’ Series X Stock or the Series C Preferred Stock and does not represent an indication or estimate of the expected actual voting impact on completion of the merger.

The issuance, or expected issuance, of Blackboxstocks common stock and Series C Preferred Stock in connection with the Merger could decrease the market price of Blackboxstocks common stock.

In connection with the Merger and as part of the Merger Consideration, Blackboxstocks expects to issue shares of Blackboxstocks common stock and Series C Preferred Stock to REalloys stockholders. The anticipated issuance of Blackboxstocks common stock and Series C Preferred Stock in the Merger may result in fluctuations in the market price of Blackboxstocks common stock, including a stock price decrease. In addition, the perception in the market that the holders of a large number of shares of Blackboxstocks common stock may intend to sell shares could reduce the market price of Blackboxstocks common stock.

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CVR holders may not receive any payment on the CVRs, the CVRs may otherwise expire valueless, and the U.S. federal income tax treatment of CVRs in unclear.

Pursuant to the CVR Agreement and the Merger Agreement, holders of each share of Blackboxstocks common stock immediately prior to Closing, will receive a dividend of one contractual contingent value right entitling such holders to receive net proceeds received by Blackboxstocks from any transaction in which the Blackboxstocks or Blackbox Operating grants, sells, licenses or otherwise transfers some or all of the rights to any and all of the assets, rights, and properties owned, used, or useable by Blackbox Operating in connection with or related to the business as conducted by Blackbox Operating and all of the Blackboxstocks rights therein. The right of Blackboxstocks stockholders to receive any future payment on or to derive any value from the CVRs will be contingent solely upon the achievement of the events specified in the CVR Agreement within the time period specified in the CVR Agreement. If the payment triggering events are not achieved for any reason within the time period specified in the CVR Agreement, no payments will be made under the CVRs, and the CVRs will expire valueless.

Additionally, the U.S. federal income tax treatment of the CVRs is subject to substantial uncertainty. There is no legal authority directly addressing the U.S. federal income tax treatment of the receipt of, and payments under, the CVRs, and there can be no assurance that the IRS would not assert, or that a court would not sustain, a position that could potentially result in adverse U.S. federal income tax consequences to holders of the CVRs.

The intended benefits of the Merger may not be realized.

The Merger poses risks for Blackboxstocks’ ongoing operations, including, among others:

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that senior management’s attention may be diverted from the management of Blackboxstocks’ current operations and development of its products;

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costs and expenses associated with any undisclosed or potential liabilities; and

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unforeseen difficulties may arise in integrating Blackboxstocks’ business in the Combined Company.

As a result of the foregoing, we may be unable to realize the full strategic and financial benefits currently anticipated from the Merger, and cannot assure that the Merger will be accretive to Blackboxstocks in the near term or at all. Furthermore, if we fail to realize the intended benefits of the Merger, the market price of the Combined Company’s common stock could decline to the extent that the market price reflects those benefits. Our stockholders will have experienced substantial dilution of their ownership interests in Blackboxstocks without receiving any commensurate benefit, or only receiving part of the commensurate benefit to the extent the Combined Company is able to realize only part of the strategic and financial benefits currently anticipated from the Merger.

Because the lack of a public market for REalloys common stock makes it difficult to evaluate the fairness of the Merger, REalloys stockholders may receive consideration in the Merger that is greater than or less than the fair market value of REalloys common stock.

The outstanding common stock of REalloys is privately held and is not traded in any public market. The lack of a public market makes it extremely difficult to determine the fair market value of REalloys common stock. Since the percentage of Blackboxstocks’ common stock and Series C Preferred Stock to be issued to REalloys stockholders was determined based on negotiations between the parties, it is possible that the value of the Blackboxstocks common stock and Series C Preferred Stock to be issued in connection with the Merger will be greater than the fair market value of REalloys shares. Alternatively, it is possible that the value of the shares of Blackboxstocks common stock and Series C Preferred Stock to be issued in connection with the Merger will be less than the fair market value of REalloys shares.

Directors and officers of Blackboxstocks and REalloys may have interests in the Merger that are different from, or in addition to, those of Blackboxstocks stockholders and REalloys stockholders generally that may influence them to support or approve the Merger.

The officers and directors of Blackboxstocks and REalloys may have interests in the Merger that are different from, or are in addition to, those of Blackboxstocks stockholders and REalloys stockholders generally. Effective upon the closing of the Merger, Leonard Sternheim and Robert Winspear are expected to be employed as executive officers by the Combined Company. It is expected that six of the current directors of REalloys, and one current director of Blackboxstocks will be appointed as directors of the Combined Company after the completion of the Merger and may receive cash and equity compensation in consideration for such service. Contingent upon closing of the Merger, Gust Kepler has agreed to sell Leonard Sternheim certain shares of Blackboxstocks Series A Preferred Stock that will effectively confer voting control of the Combined Company currently held by Mr. Kepler to Mr. Sternheim for nominal consideration. Upon the Merger, the vesting of outstanding equity awards held by Blackboxstocks’ directors and officers will accelerate, and certain Blackboxstocks officers may be entitled to certain severance benefits in connection with changes in their employment. In addition, the directors and executive officers of Blackboxstocks and REalloys also have certain rights to indemnification or to directors’ and officers’ liability insurance that will survive the completion of the Merger. These interests may have influenced the directors and executive officers of Blackboxstocks and REalloys to support or recommend the proposals presented to Blackboxstocks and REalloys stockholders.

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If the Merger is completed, REalloys executive officers and REalloys appointees to the Combined Company’s board of directors will have the ability to significantly influence the Combined Company’s management and business affairs, as well as matters submitted to the Combined Company’s board of directors or stockholders for approval, especially if they decide to act together with the current REalloys stockholders.

Upon completion of the Merger, the former REalloys stockholders will own approximately 92.7% of the Combined Company on a fully diluted basis, excluding the effects of adjustments based on Blackboxstocks’ net cash at closing. Contingent upon closing of the Merger, Gust Kepler has also agreed to sell Leonard Sternheim certain shares of Blackboxstocks Series A Preferred Stock that will effectively confer voting control of the Combined Company to Mr. Sternheim. If the Merger is completed, the Combined Company is expected to be led by REalloys’ executive officers. Furthermore, the Combined Company’s anticipated board of directors will consist of nine members, six of which will be appointed by REalloys and one of which will be appointed by Blackboxstocks, pursuant to the terms and conditions of the Merger Agreement and two which are expected to be appointed immediately following the Merger. As a result, such persons, if they choose to act together, will have the ability to significantly influence the Combined Company’s management and business affairs, as well as matters submitted to the Combined Company’s board of directors or stockholders for approval.

The pendency and close of the Merger could have an adverse effect on Blackboxstocks’ or REalloys’ business, financial condition, results of operations or business prospects.

The pendency and close of the Merger could disrupt Blackboxstocks’ and/or REalloys’ businesses in the following ways, among others:

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Blackboxstocks’ and REalloys’ current and prospective employees could experience uncertainty about their future roles within the Combined Company, and this uncertainty might adversely affect Blackboxstocks’ or REalloys’ ability to retain, recruit and motivate key personnel;

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the attention of Blackboxstocks’ or REalloys’ management may be directed towards the completion of the Merger and other transaction-related considerations and may be diverted from the day-to-day business operations of Blackboxstocks or REalloys, as applicable, and matters related to the Merger may require commitments of time and resources that could otherwise have been devoted to other opportunities that might have been beneficial to Blackboxstocks or REalloys, as applicable;

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customers, prospective customers, suppliers, collaborators and other third parties with business relationships with Blackboxstocks or REalloys may decide not to renew or may decide to seek to terminate, change or renegotiate their relationships with Blackboxstocks or REalloys as a result of the Merger, whether pursuant to the terms of their existing agreements with Blackboxstocks or REalloys; and

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the market price of Blackboxstocks’ common stock may decline to the extent that the current market price reflects a market assumption that the proposed Merger will be completed

Should they occur, any of these matters could adversely affect the businesses of, or harm the financial condition, results of operations or business prospects of, Blackboxstocks or REalloys.

The Exchange Ratio is not adjustable based on the market price of Blackboxstocks’ common stock, so the Merger consideration at the closing may have a greater or lesser value than at the time the Merger Agreement was signed.

The Merger Agreement has set the Exchange Ratio formula for the REalloys common stock, and the Exchange Ratio is only adjustable upward or downward to reflect Blackboxstocks’ and REalloys’ equity capitalization as of immediately prior to the Effective Time and the excess cash Blackboxstocks has at the effective time of the Merger. Any changes in the market price of common stock before the completion of the Merger will not affect the number of shares REalloys securityholders will be entitled to receive pursuant to the Merger Agreement. Therefore, if before the completion of the Merger, the market price of Blackboxstocks common stock declines from the market price on the date of the Merger Agreement, then REalloys securityholders could receive Merger consideration with substantially lower value. Similarly, if before the completion of the Merger, the market price of Blackboxstocks common stock increases from the market price on the date of the Merger Agreement, then REalloys securityholders could receive Merger Consideration with substantially more value for their shares of REalloys common stock than the parties had negotiated for in the establishment of the Exchange Ratio.

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If the Merger does not qualify as a reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended, or is otherwise taxable to U.S. REalloys stockholders, then such holders may be required to pay U.S. federal income taxes.

For U.S. federal income tax purposes, the Merger is intended to constitute a reorganization within the meaning of Section 368(a) of the Code. If the Internal Revenue Service (the “IRS”) or a court determines that the Merger should not be treated as a reorganization or a tax deferred contribution, a holder of REalloys stock or warrants would recognize taxable gain or loss upon the exchange of REalloys stock or warrants for Blackboxstocks common stock or warrants pursuant to the Merger Agreement.

Blackboxstocks is expected to incur substantial expenses related to the Merger with REalloys.

Blackboxstocks has incurred, and expects to continue to incur, substantial expenses in connection with the Merger, as well as operating as a public company. Blackboxstocks will incur significant fees and expenses relating to legal, accounting, financial advisory and other transaction fees and costs associated with the Merger. Actual transaction costs may substantially exceed Blackboxstocks’ estimates and may have an adverse effect on the Combined Company’s financial condition and operating results.

Failure to complete the Merger could negatively affect the value of Blackboxstocks common stock and the future business and financial results of both Blackboxstocks and REalloys.

If the Merger is not completed, the ongoing businesses of Blackboxstocks and REalloys could be adversely affected. Moreover, each of Blackboxstocks and REalloys will be subject to a variety of risks associated with the failure to complete the Merger, including without limitation the following:

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diversion of management focus and resources from operational matters and other strategic opportunities while working to implement the Merger;

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reputational harm due to the adverse perception of any failure to successfully complete the Merger; and

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having to pay certain costs relating to the Merger, such as legal, accounting, financial advisory, filing and printing fees.

If the Merger is not completed, the market price of Blackboxstocks common stock and the business and financial results of both Blackboxstocks (including the cessation of its operations) and REalloys could be materially affected.

The Merger is expected to result in a limitation on the Combined Company’s ability to utilize its net operating loss carryforward.

Under Section 382 of the Code, use of Blackboxstocks’ net operating loss carryforwards (“NOLs”) will be limited if Blackboxstocks experiences a cumulative change in ownership of greater than 50% in a moving three-year period. At December 31, 2025, Blackboxstocks had approximately $5.2 million of net operating loss carryforwards, which NOLs will begin to expire in 2035 and are available to offset taxable income or reduce taxes payable through 2041. Blackboxstocks will experience an ownership change as a result of the Merger and therefore its ability to utilize its NOLs and certain credit carryforwards remaining at the effective time of the Merger will be limited. The limitation will be determined by the fair market value of Blackboxstocks’ common stock outstanding prior to the ownership change, multiplied by the applicable federal rate. It is expected that the Merger will impose a limitation on Blackboxstocks’ NOLs. Limitations imposed on Blackboxstocks’ ability to utilize NOLs could cause U.S. federal and state income taxes to be paid earlier than would be paid if such limitations were not in effect and could cause such NOLs to expire unused, in each case reducing or eliminating the benefit of such NOLs

The Merger may be completed even though material adverse changes may result from the announcement of the Merger, industry-wide changes or other causes.

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In general, either party can refuse to complete the Merger if there is a material adverse effect (as defined in the Merger Agreement) affecting the other party between March 10, 2025, the date of the Merger Agreement, and the closing of the Merger. However, some types of changes do not permit either party to refuse to complete the Merger, even if such changes would have a material adverse effect on Blackboxstocks or REalloys, as the case may be:

	●	changes or events affecting the industries or industry sectors in which the parties operate generally;

	●	changes or events generally affecting the U.S. or global economy or capital markets as a whole;

	●	hurricane, flood, tornado, earthquake or other natural disaster, epidemic, plague, pandemic or other public health event or any other force majeure event; or

	●	changes in GAAP or other applicable law or legal requirement.

If adverse changes occur but Blackboxstocks and REalloys must still complete the Merger, the market price of our common stock may suffer.

We may become involved in securities litigation or stockholder derivative litigation in connection with the Merger, and this could divert the attention management and harm the Combined Company’s business, and insurance coverage may not be sufficient to cover all related costs and damages.

Securities litigation or stockholder derivative litigation frequently follows the announcement of certain significant business transactions, such as the sale of a business division or announcement of a business combination transaction. We may become involved in this type of litigation in connection with the Merger, and the Combined Company may become involved in this type of litigation in the future. Litigation often is expensive and diverts management’s attention and resources, which could adversely affect the business of Blackboxstocks or the Combined Company.

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Item 1B.

Unresolved Staff Comments.

None.

Item 1C.

Cybersecurity

Risk Management & Strategy

We employ several strategies to identify and to mitigate its cybersecurity risk as a part of it overall risk management strategy. Whereas no entity can be 100% secure against all forms of cyber threats. We strive to identify and minimize the risk where possible. Company management under the direction of ~~its~~Brandon Smith, our Chief Technology Officer, ~~are~~is primarily responsible for identifying risks and adopting appropriate policies with respect to those risks. Third parties may be used to augment company resources in this regard including but not limited to resources provided by the Company’s cyber policy insurance carrier. Risks that are specific to the Company’s operations include security around the servers and systems that are used to host and run the Blackbox System. These servers including their backups are hosted remotely and monitored throughout the day by both operations and technology personnel. The Company has adopted a comprehensive Cyber Security Policy that encompasses and addresses cyber risks that are more common to many businesses including system access, password policies, third party software and similar matters. Blackbox also carries appropriate insurance for cyber related risks.

Governance

Overall governance of our cybersecurity is overseen by the Company’s full board of directors. No specific committee exists to oversee cybersecurity. Brandon Smith, our Chief Technology Officer, is primarily responsible for managing the Company’s cybersecurity risks and related policies. Mr. Smith has over 20 years of experience in technology including software development and infrastructure consulting. In addition to an MBA from Southern Methodist University, Mr. Smith holds a BBA in CIS from Texas State University. Management meets with the board not less than annually to review the company’s cybersecurity risks and policies but will meet with the board on an immediate basis if circumstances so dictate.

Item 2.

Properties.

We do not own any real estate or other physical properties. Our principal office is located at 5430 LBJ Freeway, Suite 1485, Dallas, Texas 75240 in office space leased from Teachers Insurance and Annuity Association of America. During the years ended December 31, ~~2024~~2025 and ~~2023~~2024 we incurred approximately $~~125~~140,000 and $~~126~~125,000, respectively, in office rental expense. Future minimum rental payments under the extended lease are approximately $~~351~~260,~~903~~781.

We believe that the existing facilities will be adequate to meet our operational requirements through ~~2025~~2026. We believe that all such facilities are adequately covered by appropriate property insurance.

Item 3.

Legal Proceedings.

None.

Item 4.

Mine Safety Disclosures.

Not applicable.

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PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

Our Common Stock, $0.001 par value, is listed on the Nasdaq Capital Market under the symbol “BLBX”.

Holders

Records of Securities Transfer Corporation, our transfer agent, indicate that as of ~~March~~February 2019, ~~2025~~2026, we had ~~618~~609 record holders of our Common Stock. The number of registered stockholders excludes any estimate by us of the number of beneficial owners of shares of Common Stock held in “street name.” As of ~~March~~February 2019, ~~2025~~2026, we had 34,~~602~~480,~~874~~ 437 shares of our Common Stock issued and outstanding.

Dividends

We have not declared any dividends on our Common Stock and do not anticipate that we will declare or pay any dividends on our Common Stock in the foreseeable future. Any future determination to pay cash dividends will be at the discretion of our Board of Directors and will be dependent upon our financial condition, operating results, capital requirements, applicable contractual restrictions, restrictions in our organizational documents, and any other factors that our Board of Directors deems relevant.

Securities Authorized for Issuance under Equity Compensation Plans

The information set forth under the subheading "Securities Authorized for Issuance Under Equity Compensation Plans" included in Part III, Item 12 of this Annual Report on Form 10-K is incorporated herein by reference.

Recent Sales of Unregistered Securities

The Company’s sales of unregistered securities during the period covered by the Report have been previously reported as required in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and/or current reports on Form 8-K.

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Item 6.

[Reserved]

Not required.

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the results of financial condition and results of operations for the fiscal years ended December 31, ~~2024~~2025 and ~~2023~~2024 should be read in conjunction with our financial statements, and the notes to those financial statements that are included elsewhere in this Form 10-K.

Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Key Events and Recent Developments

~~On March 10, 2025, the Company entered into a Merger~~ Agreement ~~with RABLBX Merger Sub Inc., a Nevada corporation~~ and ~~wholly~~Plan ~~owned subsidiary~~ of ~~the Company (“~~Merger Sub”) and REalloys Inc. Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a wholly-owned subsidiary of the Company (the “Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) or as otherwise agreed to in the Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess of certain thresholds. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected to collectively retain approximately 7.3% of the post-Close aggregate common stock of the Company, par value $0.001 (the “Company Common Stock”) and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92.7% of the post-Close aggregate as common and preferred stock of the Company. For additional information on the Merger and the transactions contemplated thereby, refer to “Recent Developments” included in Part I, Item 1 “Business”, of this Form 10-K.

On March 10, 2025, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RABLBX Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”) and REalloys Inc., a Nevada corporation (“REalloys”). Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a wholly-owned subsidiary of the Company (the “Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) or as otherwise agreed to in the Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess of certain thresholds. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected to collectively retain approximately 7.3% of the post-Close aggregate common stock of the Company, par value $0.001 (the “Company Common Stock”) and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92.7% of the post-Close aggregate as common and preferred stock of the Company.

The Merger Agreement also required the Company, in cooperation with the REalloys, to prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 containing a proxy statement relating to a Company stockholder meeting held in connection with the Merger (the “Registration Statement”) pursuant to which shares of Company Common Stock were registered under the Securities Act of 1933, as amended (the “Securities Act”), to be issued by virtue of the Merger and the contemplated transactions thereunder. In addition, under the Merger Agreement, the parties agreed to other customary provisions including (i) obtaining requisite stockholder approval to consummate the Merger and the contemplated transactions thereunder, (ii) obtaining regulatory approvals from relevant governmental authorities, (iii) indemnifying the directors and officers of the Company for a period of six years following the Closing, (iv) completing certain disclosure obligations required by the SEC and listing requirements promulgated by the Nasdaq Capital Market (“Nasdaq”), (v) electing or appointing to the positions of officers and directors of Company and the surviving corporation certain persons designated by REalloys, (vi) executing employment agreements between the Company and Lipi Sternheim and David Argyle, (vii) Company adopting a new stock incentive plan reserving not more than 15% of the fully-diluted, outstanding interest of the Company immediately following the Merger for issuance, and (viii) allocating funds received by Company pursuant to sales, issuances, grants or other dispositions of Company Common Stock, during the period between the Merger Agreement and Closing, under that certain Registration Statement on Form S-3 (File No. 333-284626) filed with the SEC on January 31, 2025 which became effective on February 10, 2025.

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Closing of the Merger is subject to various customary closing conditions. Each party’s obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are conditioned upon (i) the effectiveness of the Registration Statement on Form S-4, (ii) expiration or termination of applicable regulatory waiting periods, (iii) no restraints from any governmental authority preventing the consummation of the contemplated transactions under the Merger Agreement, (iv) the Company and REalloys obtaining their respective requisite stockholder votes to consummate the transactions contemplated by the Merger Agreement, (v) Nasdaq’s approval of the Company’s Nasdaq listing application for the post-Merger entity, (vi) execution of Lock-Up Agreements (as further described below), (vii) execution of a Stock Purchase Agreement by and between Gust Kepler and Lipi Sternheim whereby Gust Kepler shall agree to sell certain shares of Company Series A Convertible Preferred Stock to Lipi Sternheim contingent upon and effective concurrently with Closing, and (viii) the filing of an amendment to Company’s charter with the Secretary of State of the State of Nevada, containing such amendments necessary to consummate the transactions contemplated by the Merger Agreement. Company’s and Merger Sub’s obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are further conditioned upon customary closing conditions as well as REalloys having sufficient stockholder’s equity as necessary for the Company to meet Nasdaq listing requirements. REalloys’ obligations to effect the Merger and otherwise consummate the contemplated transactions thereunder are further conditioned upon customary closing conditions as well as (i) the Company’s execution of an Option Agreement (as further described below), (ii) the Company’s consummation of a Company Financing and issuance of $2,300,000 of Additional Debentures to the satisfaction of the REalloys (as further described below), (iii) the Company having Net Cash (as defined in the Merger Agreement) equal to or in excess of negative $2.69 million, and (iv) the Company filing the Certificate of Designations establishing a class of Company preferred stock to be designated Series C Convertible Preferred Stock (as further described below).

Following the Closing, the Company is expected to be renamed “REalloys Inc.,” and it is expected that the shares of Company Common Stock will continue to be listed on Nasdaq.

Palladium Capital Group, LLC served as the exclusive financial advisor in connection with the above transactions.

Stockholder Support Agreements

As a condition to the parties’ execution of the Merger Agreement, Gust Kepler, a director and the President and Chief Executive Officer of the Company, who holds shares of Company Common Stock and Series A Convertible Preferred Stock, executed a Stockholder Support Agreement (the “Company Stockholder Support Agreement”), pursuant to which Mr. Kepler agreed to vote his shares of Company Common Stock and Series A Convertible Preferred Stock in favor of (i) the approval of the Merger Agreement and transactions contemplated therein, (ii) if deemed necessary by the Company, an amendment to the Company’s certificate of incorporation to effect a forward or reverse split of the outstanding Company Common Stock if necessary, (iii) the issuance of Company Common Stock in accordance with Nasdaq Listing Rule 5635, and (iv) against any competing proposals. In addition, as a condition to the parties’ execution of the Merger Agreement, holders of at least 50.1% of the outstanding shares of capital stock of the REalloys executed a Stockholder Support Agreement (the “REalloys Stockholder Support Agreements”), pursuant to which such holders agreed to vote all of their shares of capital stock of the REalloys in favor of the approval of the Merger Agreement and transactions contemplated therein.

Lock-Up Agreements

Option Agreement

As a condition to the parties’ execution of the Merger Agreement, prior to Closing, the Company and Gust Kepler will execute an Option Agreement (the “Option Agreement”) pursuant to which the Company shall have the right to call for redemption and Gust Kepler shall have the right to cause Company to redeem all of the issued and outstanding Series A Convertible Preferred Stock of Parent held by Gust Kepler in exchange for shares of Series A Convertible Preferred Stock of Blackbox.io, Inc. (“Blackbox Operating”), a Delaware corporation and wholly owned subsidiary of Parent, which was organized to conduct historical Blackbox operations of the Company.

Contingent Value Rights Agreements

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Certificate of Designations for Series C Preferred Stock

Notwithstanding the foregoing, the Company’s ability to settle conversions and make amortization payments and dividend make-whole payments using shares of Company Common Stock is subject to certain limitations set forth in the Series C Certificate of Designations, including a limit on the number of shares that may be issued until the time, if any, that the Company has obtained the Series C Stockholder Approval. Further, the Series C Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of Company Common Stock issuable upon conversion of the Series C Preferred Stock or as part of any amortization payment or dividend make-whole payment under the Series C Certificate of Designations.

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First Amendment to Agreement and Plan of Merger

Second Amendment to Agreement and Plan of Merger

Third Amendment to Agreement and Plan of Merger

REalloys Financing

Securities Purchase Agreement

In connection with the Merger, REalloys entered into a Securities Purchase Agreement (the “REalloys Purchase Agreement”), dated as of March 6, 2025, with Five Narrow Lane LP (the “Buyer”), pursuant to which REalloys agreed to sell to the Buyer (i) an aggregate of 5,000 shares of REalloys’ Series X Preferred Stock, par value $0.0001 per share (the “Series X Stock”), with a stated value of $1,000 per share (the “Stated Value”) and (ii) warrants (the “REalloys Warrants”) to acquire up to 5,000,000 shares of common stock of REalloys, par value $0.0001 per share (the “REalloys Common Stock”) (collectively, the “REalloys Financing”). REalloys will also issue to the Buyer an aggregate number of shares of REalloys Common Stock representing 5.0% of the fully diluted outstanding capital of REalloys (the “Commitment Shares”), which shall be adjusted as necessary immediately prior to the consummation of the Merger to the extent that the Commitment Shares represent less than 5.0% of the fully diluted outstanding capital of REalloys. The aggregate gross proceeds from the REalloys Financing were $5,000,000 (or up to $55,000,000 if the REalloys Warrants are exercised in full for cash). REalloys expects to use the net proceeds from the REalloys Financing for general corporate purposes and for transaction expenses incurred in connection with the Merger.

The closing of the REalloys Financing occurred on March 10, 2025. The REalloys Financing was exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. The Buyer has represented to REalloys that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and that it is acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The Series X Stock and REalloys Warrants were offered without any general solicitation by the Company or its representatives.

Certificate of Designations of Series X Preferred Stock

The terms of the Series X Stock are set forth in a certificate of designations (the “REalloys Certificate of Designations”) which was filed with the Secretary of State of Nevada prior to the closing of the REalloys Purchase Agreement. All shares of capital stock of REalloys rank pari passu or junior to the Series X Stock, with respect to preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of REalloys. At any time after issuance of the Series X Stock, to the extent (i) the Merger Agreement is terminated for any reason before the Merger is consummated and (ii) REalloys raises capital in any financing, REalloys is required to use 50% of the aggregate gross proceeds from such financing to redeem all or any portion of the Series X Stock then outstanding. The amortization payments due upon such redemption are payable by REalloys in cash at a price equal to the product of (i) 110% and (ii) the Stated Value of the shares of Series X Stock being redeemed plus any and all accrued and unpaid dividends on such shares of Series X Stock.

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Pursuant to the Merger Agreement, each share of Series X Stock outstanding will be converted solely into the right to receive shares of the Company’s Series C Preferred Stock at a ratio of 1 to 1.

Warrants

Company Financing

Securities Purchase Agreement

Initial Debenture

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On the Initial Debenture Trigger Date, the Company agreed to pay in cash to the Purchaser of the Initial Debenture the outstanding principal amount of the Initial Debenture, together with all accrued and unpaid interest thereon, an exit fee in an amount equal to 15% of the outstanding principal amount of the Initial Debenture and any other amounts due thereunder; provided that, if the “Trigger Conditions” are satisfied as of the Initial Debenture Trigger Date, it was agreed that the Initial Debenture would be exchanged for an Additional Debenture. As defined in the Initial Debenture, “Trigger Conditions” meant (a) no event of default has occurred or is continuing or would result from the effectiveness of the Merger Transaction, (b) no event or condition has resulted in, or could be reasonably expected to cause, either individually or in the aggregate, a material adverse effect or to result in a material adverse effect from the effectiveness of the Merger Transaction, (c) the Company has executed and delivered such documents as the holder may reasonably request in connection with the exchange of the Initial Debenture for the Additional Debenture, and (d) the satisfaction of any additional covenants and conditions set forth in the Original Purchase Agreement.

Amendment to Securities Purchase Agreement; A&R Initial Debenture

Additional Closing; Additional Debenture

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Registration Rights Agreement

Security Agreement

Subsidiary Guarantee

Placement Agent Agreement

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Recent Updates relating to the REalloys Merger

On January 16, 2026, the SEC declared the Company’s registration statement on Form S-4 relating to the proposed Merger with REalloys Inc.

Subsequently, on January 30, 2026 the Company’s stockholders approved the following items related to the Merger:

●

the 2025 Long-Term Incentive Plan;

an amendment to the Blackboxstocks Articles of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 100,000,000 to 350,000,000,

For additional information on the Merger and the transactions contemplated thereby, refer to “Recent Developments” included in Part I, Item 1 “Business”, of this Form 10-K.

Overview

We are 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 trading price of a stock or option. Our Blackbox System continuously scans the NASDAQ, NYSE, CBOE, and other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We also 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 including the ability to broadcast on their own channels to share trading strategies and market insight within the Blackbox community.

Subscriptions for the use of the platform are sold on a monthly and/or annual subscription basis to individual consumers through our website. Educational seminars are sold on an individual basis for each class and are offered from time to time.

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Our principal office is located at 5430 LBJ Freeway, Suite 1485, Dallas, Texas 75240 and our telephone number is (972) 726-9203. Our Common Stock is listed on the Nasdaq Capital Market under the symbol “BLBX.” Our corporate website is located at https://blackboxstocks.com.

Basis of Presentation

The accompanying financial statements have been prepared in assumption of the continuation of the Company as a going concern, which is dependent upon the Company's ability to obtain sufficient financing or establish itself as a profitable business. For the year ended December 31, ~~2024~~2025, the Company incurred an operating loss of $3,~~309~~724,~~063~~783 and a net loss of $34,~~471~~092,~~226~~609. asIn ~~compared~~addition, tofor the year ended December 31, 2024, the Company incurred an operating loss of $53,~~297~~309,~~671~~064 and a net loss of $43,~~664~~471,~~455 for the year ended December 31, 2023~~227. Cash flows used in operations totaled $13,~~095~~160,~~776~~133 for the year ended December 31, ~~2024~~2025. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. OnAs ~~March~~discussed 10above, ~~2025,~~ the Company ~~entered~~is ~~into~~in athe ~~Merger~~process ~~Agreement~~of ~~with~~completing its ~~wholly~~proposed ~~owned~~ Merger ~~Sub~~with ~~and~~ REalloys. ~~Upon~~The ~~the~~Company ~~terms~~has ~~and~~historically ~~subject~~been able to ~~the~~raise ~~satisfaction~~capital ofto ~~the~~fund ~~conditions~~its ~~described~~operations ~~in the Merger Agreement, REalloys will merge with~~ and ~~into~~believes ~~Merger~~that ~~Sub,~~the ~~Merger~~Combined ~~Sub~~Company will ~~cease~~have togreater ~~exist~~access ~~and~~to ~~REalloys~~capital ~~will~~in ~~become~~order ato ~~wholly-owned~~fund ~~subsidiary of~~ the ~~Company.~~operations ~~At the Closing~~ of ~~the~~Blackboxstocks ~~Merger, the holders of capital stock~~ and ~~outstanding instruments convertible into or exercisable for capital stock of~~ REalloys. ~~will~~Closing ~~receive shares~~ of ~~common and preferred stock of~~ the ~~Company, $0.001 par value, based on an Exchange Ratio formula in the~~ Merger ~~Agreement or as otherwise agreed to in the Merger Agreement, which~~ is subject to ~~adjustment~~various incustomary ~~the~~closing ~~event~~conditions ~~the~~including ~~parties~~but ~~raise~~not ~~capital~~limited ~~in excess of certain thresholds. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected~~ to ~~collectively~~approval ~~retain approximately 7.3%~~ of ~~the post-Close aggregate Company Common Stock and holders of~~ REalloys ~~capital~~initial ~~stock~~listing ~~and~~application ~~instruments~~by ~~convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92~~Nasdaq.7% ofThere ~~the~~can ~~post-Close~~be ~~aggregate~~no asassurance ~~common~~that ~~and preferred stock of~~ the Company. ~~The Company believes that REalloys~~ will be able to raise ~~substantial~~any capital ~~and~~or ~~has~~on ~~completed~~what ~~a financing that will provide $5,000,000 upon completion of the Merger~~terms. Closing of the Merger is subject to various customary closing conditions including but not limited to the SEC declaring the registration statement effective, approval of REalloys initial listing application by Nasdaq, and stockholder approval.

InOn ~~addition~~January 31, 2025, the Company ~~entered~~filed ~~into~~ a ~~Securities~~shelf ~~Purchase~~registration ~~Agreement~~statement ~~dated~~on ~~with~~Form ~~Five~~S-3 ~~Narrow~~for ~~Lane~~the LPsale of up to $50,000,000 onof ~~January~~securities. 17On July 1, 2025, ~~(which~~the ~~was~~Company ~~later~~entered ~~amended~~into onan ~~January~~At-The-Market 27Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital, ~~2025~~L.P. ~~pursuant~~(“Alexander Capital”). Pursuant to ~~which~~the ATM Agreement, the Company ~~agreed~~may from time-to-time issue, and ~~Five~~sell ~~Narrow~~to ~~Lane~~or LPthrough ~~agreed~~Alexander ~~to purchase~~Capital, aacting ~~series~~as ~~of debentures (~~the ~~“Purchase~~Company’s ~~Agreement”).~~sales ~~The~~agent, ~~Purchase~~shares ~~Agreement~~of ~~provides~~the ~~for~~Company’s ~~financing~~common ofstock uphaving to an aggregate ~~principal~~offering ~~amount~~price of up to $25,~~300~~795,000. Sales of ~~which~~the $1shares are to be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933,~~050,000~~ ~~has~~as ~~been~~amended ~~received~~(the “Securities Act”). AnAs ~~additional~~sales ~~$750~~agent,~~000~~ Alexander Capital will beoffer ~~funded~~the ~~upon~~shares ~~filing~~at ofprevailing amarket ~~Merger~~prices ~~Registration~~and ~~Statement~~will use its commercially reasonable efforts, ~~and~~consistent anwith ~~additional~~its ~~$500~~sales and trading practices,~~000~~ ~~will~~to sell on the Company’s behalf all of the Shares requested to be ~~funded~~sold ~~when~~by the ~~Merger~~Company, ~~Registration~~subject ~~Statement~~to isthe ~~declared~~terms ~~effective~~and byconditions of the ~~SEC~~ATM Agreement. ~~There~~Pursuant ~~can~~to bethe noCompany’s ~~assurance~~ATM ~~that~~Agreement, ~~the~~it ~~Merger~~is ~~with~~able ~~REalloys~~to ~~will~~sell beup ~~completed~~to ~~and~~$5,795,000 of the ~~related~~Company’s ~~financing~~common ~~will~~stock beof ~~received~~which $2,146,556 has been sold as of February 19, 2026, 2026.

The Company has historically been able to raise capital in order to fund its operations and on January 31, 2025, the Company filed a shelf registration statement on Form S-3 for the sale of up to $50,000,000 of securities. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell securities in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75,000,000. There can be no assurance that the Company will be able to raise any capital or on what terms.

The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

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Recently Issued Accounting Pronouncements

During the year ended December 31, ~~2024~~2025 and through ~~March 20~~February 19, ~~2025~~2026, there were several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s financial statements.

All other new accounting pronouncements issued but not yet effective or adopted have been deemed not to be relevant to us, hence are not expected to have any impact once adopted.

Summary of Significant Accounting Policies

Use of Estimates

The Company’s financial statement preparation requires that management make estimates and assumptions which affect the reporting of assets and liabilities and the related disclosure of contingent assets and liabilities in order to report these financial statements in conformity with GAAP. Actual results could differ from those estimates.

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Fair Value of Financial Instruments

The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement, defines fair value, establishes a framework for measuring fair value in accordance with U.S. generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time.

Derivative Financial Instruments

FASB ASC Topic 820, Fair Value Measurement requires bifurcation of certain embedded derivative instruments, and measurement at their fair value for accounting purposes. A holder redemption feature embedded in the Company’s notes payable requires bifurcation from its host instrument and is accounted for as a freestanding derivative.

Software Development Costs

The Company accounts for software development costs pursuant to ASC Topic 985-Software, which requires that the costs incurred for planning, designing, coding and testing of software prior to technological feasibility be recorded as research and development expenses as incurred. Such costs include both internal development and engineering costs as well as development expenses contracted through third parties.

Income Taxes

The Company will recognize deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

Management evaluates the probability of the realization of its deferred income tax assets. Management determined that because the Company has not yet generated taxable income, it is unlikely that a tax benefit will be realized from these operating loss carry forwards. Accordingly, the deferred income tax asset is offset by a full valuation allowance.

In accordance with ASC Topic 740, Income Taxes, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Share-Based Payment

All share-based payments to employees, directors and contractors, including grants of stock options, restricted shares or warrants, are recognized in the statement of operations based on their fair values at the time of grant in accordance with ASC Topic 718, Compensation - Stock Compensation.

During the period ended December 31, 2023, the Company calculated the fair value of the options granted based on assumptions used in the Cox-Ross-Rubinstein binomial pricing model using the following inputs: the price of the Company’s common stock on the date of issuance; risk-free interest rate ranging from 3.73% to 4.44%, expected volatility ranging from 130% to 140% based on the volatility of the Company’s common stock, various exercise prices, and terms of 10 years. No options or warrants were issued by the Company for the year ended December 31, 202443

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During the year ended December 31, 2025, the Company calculated the fair value of the options granted based on assumptions used in the Cox-Ross-Rubinstein binomial pricing model using the following inputs: the price of the Company’s common stock on the date of issuance; risk-free interest rate of 4.43%, expected volatility of 153% based on the volatility of the Company’s common stock, exercise price of $3.46, and terms of 10 years.

Liquidity and Capital Resources

At December 31, ~~2024~~2025, the Company had cash of $1739,~~036~~158. The Company incurred negative cash flow from operations of $(~~705~~3,~~725~~160,133) for the year ended December 31, ~~2024~~2025 as compared to negative cash flow from operations of $(3705,~~166,067~~725) in the prior year. Cash flows used in investing activities excluding marketable securities were $~~1,100,000~~0 and $2(1,~~605~~096,697) for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively, and were related primarily to the issuance of a note in 2024. ~~and~~Cash ~~the~~flows ~~purchase~~from offinancing ~~server equipment and office furniture in 2023. Investing activities~~ for the year ended December 31, ~~2023~~2025 ~~included~~was ~~the liquidation of~~ $3,~~213~~182,~~325~~255 ~~of marketable securities consisting of certain debt funds,~~ and ~~the~~consisted ~~purchase~~primarily ~~and sales~~ of ~~marketable securities that was done in a company trading account with less than~~ $~~100~~1,990,000 ~~that~~of ~~was~~proceeds ~~used~~from tothe ~~research~~issuance ~~and~~of ~~demonstrate~~debentures ~~certain~~and ~~trading~~net ~~tactics~~proceeds ~~used on our platform. We expect capital expenditures to remain moderate for 2025 in order to maintain our current operations. Cash flows~~ from ~~financing for~~ the ~~year~~sale ~~ended~~of ~~December~~common ~~31,~~stock ~~2024~~under ~~was~~the ~~$1,346,761~~terms ~~and~~of ~~consisted~~the ~~primarily~~ATM Agreement of $1,~~200~~493,~~000~~022. ofThese ~~proceeds~~were ~~from~~partially ~~the~~offset ~~issuance~~by payments of ~~common~~$290,175 ~~stock~~for ~~and net proceeds from~~ merchant cash advances ~~of $175,783~~.

34On January 31, 2025, the Company filed a shelf registration statement on Form S-3 for the sale of up to $50,000,000 of securities. On July 1, 2025 the Company entered into the ATM Agreement with Alexander Capital. Pursuant to the ATM Agreement, the Company may from time-to-time issue and sell to or through Alexander Capital, acting as the Company’s sales agent, shares of the Company’s common stock having an aggregate offering price of up to $5,795,000. Sales of the shares are to be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). As sales agent, Alexander Capital will offer the shares at prevailing market prices and will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell on the Company’s behalf all of the shares of common stock requested to be sold by the Company, subject to the terms and conditions of the ATM Agreement. Pursuant to the ATM Agreement, it is able to sell up to $5,795,000 of the Company’s common stock of which $2,146,556 has been sold as of February 19, 2026, 2026

~~The~~Although ~~Purchase Agreement between~~ the Company ~~and~~has ~~Five~~historically ~~Narrow~~been ~~Lane~~able ~~LP provides for financing of up~~ to anraise ~~aggregate~~capital ~~principal amount of $2,300,000 of which $1,050,000 has been received. An additional $750,000 is expected~~ to befund ~~funded~~its ~~upon filing of a Merger Registration Statement~~operations, ~~and~~we anbelieve ~~additional~~that ~~$500,000~~the ~~will~~larger bemarket ~~funded~~capitalization ~~when~~as ~~such~~well ~~Merger~~as ~~Registration Statement is declared effective by~~ the ~~SEC.~~current ~~The~~appetite ~~funds~~for ~~received~~companies ~~under~~in the ~~Purchase~~“rare ~~Agreement~~earth marketplace” will besignificantly ~~used~~increase ~~(in~~our ~~part)~~access to ~~pay~~both ~~for~~debt ~~expenses~~and ~~relating~~equity tocapital ~~the~~when ~~Merger~~and ~~Agreement~~if ~~including~~the ~~legal,~~REalloys ~~accounting,~~Merger ~~filing, financial printing and other fees~~closes. There can be no assurance that the ~~Merger~~Company ~~with REalloys~~ will be ~~completed~~able ~~and~~to ~~the~~raise ~~related~~capital ~~financing~~or ~~will~~do beso ~~received.~~on ~~Many~~acceptable ~~of the expenses may be incurred even if the Merger with REalloys is not consummated~~terms.

The company filed a shelf registration statement on Form S-3 for the sale of up to $50,000,000 of securities. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell securities in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75,000,000. There can be no assurance that the Company will be able to raise any capital or on what terms pursuant to the shelf registration statement.

As noted above, the Company may need to raise additional debt or equity capital in order to fund its operations. There can be no assurance that the Company will be able to do so or on what terms.

Results of Operations

Comparison of Years Ended December 31, ~~2024~~2025 and ~~2023~~2024

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024, the Company’s revenue was $2,~~566~~431,~~946~~233 and $32,~~106~~566,~~026~~946, respectively. The decrease of $~~539~~135,~~080~~713 or 175.43% was driven primarily by a ~~decline~~decrease in ~~subscribers~~subscriptions ~~which~~offset weby ~~believe was due to a number of factors including~~ an increase in ~~competition~~other ~~from~~revenue ~~both~~including ~~legitimate~~sales ~~competitors~~of ~~and~~education ~~illegitimate~~seminars, ~~competitors.~~a ~~Illegitimate~~new ~~competitors~~revenue ~~include~~source ~~sites~~for ~~or chat rooms that sell pirated data from companies such as (and including) Blackbox~~2025. Our average subscriber count for the year ended December 31, ~~2024~~2025 was 2,~~998~~897 or 123.14% lower than the year ended December 31, ~~2023~~2024. Average monthly revenue per subscriber was $7268.2496 per month for the year ended December 31, ~~2024~~2025 as compared to $7571.8825 for the year ended December 31, ~~2023~~2024. The Company ~~continues~~changed toits ~~run~~pricing ~~periodic~~in ~~promotions~~the ~~that~~fourth ~~offer~~quarter ~~discounts~~of 2025 from ~~our~~a ~~regular~~single ~~monthly~~product ~~subscription~~offered ofat ~~$99.97~~either ~~and~~monthly or annual ~~subscription~~subscriptions ~~price~~to a matrix of ~~$959~~products.~~00.~~ ~~This~~We ~~included~~believe athe ~~Cyber~~new ~~Monday/Black~~product ~~Friday~~matrix ~~promotion~~will ofallow aus ~~2-year~~to ~~membership~~attract more subscribers at entry level pricing and enable us to earn a premium for ~~$1,198~~our inmost ~~2023~~advances products. Gross margin for the year ended December 31, ~~2024~~2025 was $1,~~129~~166,~~663~~124 or 4448.0% of revenues as compared to gross margin for the year ended December 31, ~~2023~~2024 of $1,~~439~~129,~~834~~663 or 4644.40% of revenues. The ~~decrease~~increase in the gross margin percentage from ~~2023~~2024 to ~~2024~~2025 was due to ~~a slightly~~ lower ~~average~~costs ~~revenue~~on ~~per~~certain ~~subscriber~~data ~~and poorer fixed cost absorption~~feeds. The primary costs of operating our platform include data feeds of real time prices from exchanges, news feeds, personnel costs of our moderators as well as general system expenses.

For the year ended December 31, ~~2024~~2025, our operating expenses ~~decreased~~increased from $64,~~737~~438,~~505~~727 in ~~2023~~2024 to $45,~~438~~194,~~727~~414 in ~~2024~~2025. This ~~decrease~~increase of $2755,~~298,778~~687 or 3417.10% was due to substantially ~~lower~~higher selling, general and administrative expenses inwhich ~~most~~were ~~operating~~only ~~areas~~partially offset by lower advertising and marketing costs. ~~Software~~The ~~development~~higher ~~expenses~~selling ~~declined~~general and administrative costs were driven by an increase in stock-based compensation of $~~505~~1,~~776~~365,077. asProfessional ~~2023~~fees ~~expenses~~including ~~included~~legal ~~expenditures~~and ~~related~~accounting increased by $216,737 due to ~~the~~merger ~~release~~related ofexpenses ~~our~~and ~~mobile~~were ~~application,~~partially ~~Stock~~offset ~~Nanny.~~by Welower ~~expect~~personnel ~~our~~costs. Software development expenses of $413,594 in 2025 towere ~~remain~~only atslightly ~~their~~lower ~~current~~than ~~level~~2024. Advertising and marketing expenses declined by $~~193~~164,~~528~~298 in ~~2024~~2025 as compared to ~~2023~~2024. ~~2024~~2025 Advertising and marketing expenses of $~~436~~272,~~456~~158 declined as we continue to seek higher returns on our digital marketing expenses while social media platforms continue to modify their systems. We expect to spend substantial capital in marketing Stock Nanny once we have raised sufficient funds to do so. Our selling, general and administrative costs decreased by $1,572,095 or 30.6% to $3,568,296 for the year ended December 31, 2024. Lower stock-based compensation accounted for $1,085,400 of the decline while employee and outside consulting compensation also decreased by a combined $454,318. Legal fees increased by $278,614 in 2024 due to costs incurred in connection with the Evtec Share Exchange transaction which was terminated in January 2025.

For the year ended December 31, ~~2024~~2025, other expense was $~~162~~397,~~163~~826 as compared to other ~~income~~expense of $~~613~~162,~~216~~163 for the year ended December 31, ~~2023~~2024. The ~~2024~~2025 expense was comprised primarily of interest on debt raised during the year, related amortization of debt issuance costs, financing expense related to merchant cash advances., ~~The~~and ~~year~~an ~~ended~~investment ~~December~~loss. ~~31,~~These ~~2023~~expenses ~~included~~were ~~other~~partially ~~income~~offset ofby a $~~575~~93,000 ~~related~~gain toon the ~~extension~~settlement ~~agreement~~of ~~for~~advances ~~the~~from Evtec ~~Share~~Aluminium ~~Exchange~~Limited. ~~transaction~~For ~~executed~~the ~~with~~year ~~the~~ended ~~Evtec~~December ~~Companies~~31, 2024 included other expense related primarily to financing costs on merchant cash advances.

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EBITDA (Non-GAAP Financial Measure)

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.

EBITDA is defined by us as net income (loss) before interest expense, income tax, depreciation and amortization expense and certain non-cash items. 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.

Reconciliation of net loss to EBITDA

	Year ended December 31,
	2024			2023
	2025			2024
Net loss	$	(34,~~471~~426,~~227~~116	)	$	(43,~~664~~471,~~455~~227	)
Adjustments:
Interest expense and financing costs		~~132~~460,~~571~~826			~~633~~132,571
Investment income		(348	)		(58,849	)
Depreciation and amortization expense		5,363			16,031
Depreciation and amortization expense		16,031			43,410
Stock based compensation		1,313,852			368,662
Stock based compensation		368,662			1,454,062
Total Adjustments		1,780,041			517,264
Total Adjustments		516,916			1,439,256
EBITDA	$	(2,646,075	)	$	(2,953,963	)
EBITDA	$	(2,954,311	)	$	(3,225,199	)

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Our Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and as such, is not required to provide the information required under this Item.

Item 8.

Financial Statements and Supplementary Data.

All financial statements required by this Item are presented beginning on Page F-1, and are incorporated herein by this reference.

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

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Item 9A.

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Gust Kepler, our principal executive officer and Robert Winspear, our principal financial officer, conducted an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of December 31, ~~2024~~2025, pursuant to Exchange Act Rule 13a-15. Such disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon that evaluation, the Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures as of December 31, ~~2024~~2025 were effective ~~as of December 31, 2024~~.

Management's Annual Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company's internal control over financial reporting includes those policies and procedures that:

	●	pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
	●	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
	●	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In connection with the preparation of our annual financial statements, our principal executive officer and principal financial officer have assessed the effectiveness of internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, or the COSO Framework, and SEC guidance on conducting such assessments. Management’s assessment included an evaluation of the design of our internal control over financial reporting and testing of the operational effectiveness of those controls. Based on this evaluation and qualified by the “Limitations on Effectiveness of Controls” set forth in this Item 9A below, management has determined that as of December 31, ~~2024~~2025, our internal controls over financial reporting were effective and there are no material weaknesses in our internal control over financial reporting.

Attestation Report of the Registered Public Accounting Firm

This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company’s registered public accounting firm pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, wherein non-accelerated filers are exempt from Sarbanes-Oxley internal control audit requirements.

Changes in Internal Control Over Financial Reporting

There were no other changes in our internal controls over financial reporting during the year ended December 31, ~~2024~~2025 that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

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Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our principal executive officer and principal financial officer with reasonable assurances that our disclosure controls and procedures will achieve their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within our company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated objectives under all potential future conditions.

Item 9B.

Other Information.

None.

Item 9C.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not Applicable.

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PART III

Item 10.

Directors, Executive Officers and Corporate Governance.

Directors and Executive Officers

The following table sets forth the names, ages and positions of our executive officers and directors. All directors of our Company hold office until the next annual meeting of stockholders or until their successors have been elected and qualified. The executive officers of our Company are appointed by our Board and hold office until their death, resignation or removal from office.

Name	Age	Position(s) Held
Executive Officers
Gust Kepler	6061	Director, President and Chief Executive Officer
Robert Winspear	5960	Director, Chief Financial Officer and Secretary
Eric Pharis	49	Chief Operating Officer
Charles Smith	55	Chief Technology Officer
Charles Smith	54	Chief Technology Officer
Non-Employee Directors
Grant Evans*	6667	Director (1) (2) (3)
Keller Reid*	4445	Director (1) (2) (3)
Dalya Sulaiman*	5859	Director (1) (2) (3)

* Independent Director as defined by Nasdaq Rule 5605(a)(2).

(1) Member of the Compensation Committee.

(2) Member of the Audit Committee.

(3) Member of the Nominating and Governance Committee.

Executive Officers

Gust Kepler, Chairman of the Board, President and Chief Executive Officer. Mr. Kepler was appointed to serve as a director and our President and Chief Executive Officer on December 1, 2015. Mr. Kepler also serves as the President of G2 International, Inc. (“G2”). G2 is a consulting firm with expertise in investment banking founded by Mr. Kepler in 2002. G2’s primary focus is taking private companies public and providing advice regarding capitalization, strategic planning and investor relations. Prior to founding G2, Mr. Kepler founded Parallax Entertainment, Inc. (“Parallax”) in 1996. Parallax was an independent record label, online promotional vehicle and e-commerce solution for musicians on the Internet. Mr. Kepler managed all aspects of the label including A&R, production, marketing and distribution. In 2000, Mr. Kepler successfully completed a direct public offering for the company and Parallax subsequently became a publicly traded company on the OTC Bulletin Board. Mr. Kepler was also the cofounder of Glance Toys, Ltd. (“Glance Toys”) which was formed in 1990. Glance Toys designed, manufactured and marketed products classified in junior sporting goods category. Products included foam balls, flying discs and beach products, some of which received patents. Glance Toy’s products were sold nationally in prominent chains such as Wal-Mart, Target, Toys R Us, 7-Eleven, and numerous other well-known retailers. The Company believes that Mr. Kepler’s experience as the Company’s founder and Chief Executive Officer as well as his previous experience in marketing and advising public companies on capitalization and investor relations give him the qualifications and skills to serve as a member of the Board.

Robert Winspear, Director, Chief Financial Officer and Secretary. Mr. Winspear was appointed as a Director and our Chief Financial Officer and Secretary on September 11, 2021. Prior to joining the Company, Mr. Winspear had been the President of Winspear Investments LLC, a Dallas based private investment firm specializing in lower middle market transactions, since 2002. Winspear Investments has made investments in a wide range of industries including banking, real estate, distribution, supply chain management, mega yacht marinas and hedge funds. Mr. Winspear was Vice President, Secretary and Chief Financial Officer of Excel Corporation, a credit card processing company (formerly EXCC:OTC) from May of 2014 to June of 2017. Mr. Winspear is on the board of directors of Alpha Financial Technologies/EAM Corporation, located in Dallas, Texas and VII Peaks Co-Optivist Income BDC II, Inc. an investment management company ~~located in Orinda, California~~. Mr. Winspear earned a BBA and a MPA from the University of Texas at Austin. The Company believes that Mr. Winspear’s broad experience in accounting, finance, mergers and acquisitions as well as corporate governance with public and private entities gives him the qualifications and skills necessary to serve as a director of our Company.

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Eric Pharis, Chief Operating Officer. Mr. Pharis is a founder of Blackboxstocks and was appointed Chief Operating Officer on September 11, 2021. Mr. Pharis has been working in quantitative finance for over 20 years. Prior to founding the Company with Mr. Kepler, Mr. Pharis worked in the proprietary trading operations of Daytek Securities, a pioneer in the area of electronic and algorithm trading, and also founded high frequency trading firm Blackbox Karma in 2005 as well as quantBrasil, a fully quantitative, computer driven hedge fund in Brazil launched in 2012 and EDM Operators, a commodities trading company using automated software based on news events launched in 2014. Mr. Pharis directs the development of the Company’s proprietary algorithms as well as data analysis. Mr. Pharis earned a bachelor of mechanical engineering from the University of Texas at Austin and a master of operations research with a certificate in financial engineering from Cornell University.

Charles Smith, Chief Technology Officer, Mr. Smith was appointed Chief Technology Officer on December 1, 2021. Prior to be appointed Chief Technology Officer, Mr. Smith served as a principal of Cyfeon Solutions, a consulting firm he founded in 2009. Cyfeon is a Financial Services vertical focused on operational and regulatory compliance and since 2016 was the lead architect and developer of the Company’s web-based application. Mr. Smith earned an MBA from Southern Methodist University, a BBA in CIS from Texas State University and served four years in the United States Marine Corps.

Non-Employee Directors

Grant Evans, Director. Mr. Evans was appointed to serve as a director on January 21, 2025 following the unexpected death of former director Ray Balestri. Mr. Evans is a seasoned executive with over 30 years of experience as a CEO, director and advisor in multiple industries. Since 2021, Mr. Evans has been a partner with Pacific Coast Partners, an advisory firm focusing on mergers and acquisitions, strategy and capital raising. From 2019 to 2021, Mr. Evans was the CEO of Spyrus Solutions Inc., a global supplier of encryption solutions for end point management, secured access, data protection and monitoring until the company was acquired in 2021. Prior to that, Mr. Evans held several CEO positions in public and private companies including ActivIdentity, Inc., a NASDAQ listed company and global supplier and leader of secured identification and encryption solutions for end point management, secured access, data protection and monitoring. Mr. Evans attended the University of Nevada, Reno. The Company believes that Mr. Evans substantial experience as a CEO as well as his merger and acquisition experience gives him the qualifications and skills necessary to serve as a director of our Company. ~~Mr. Evans provided consulting services to the Company from 2022 to 2024 and was paid $61,205 and $50,000 in fees for 2023 and 2024 respectively.~~

Keller Reid, Director. Mr. Reid was appointed as a director on January 31, 2023. Mr. Reid has served as the General Manager of the Hoskinson Family office since April of 2024. Prior to that, he was the Director of Technology and Trading for Ackerman Capital, a Dallas Based family office, for over 10 years. In that position, he has accumulated an extensive knowledge and background in both the technology and strategic aspects of trading systems. Previously, Mr. Reid served as Vice President, Head of Execution Sales and Strategy at Apex Clearing (formerly Penson Execution Services). While at Penson, Mr. Reid developed an electronic routing algorithm that was granted a patent by the United States Patent and Trademark Office, (U.S. 8015099). Mr. Reid holds a Bachelor of Science degree from Carnegie Mellon University. The Company believes that Mr. Reid’s trading and technology business experience gives him the qualifications and skills necessary to serve as a director of our Company.

Dalya Sulaiman, Director. Ms. Sulaiman was appointed to serve as a director on September 11, 2021. Ms. Sulaiman has been founder and CEO of Dalya Imar Insaat, a construction company based in Istanbul Turkey since 2008. In addition to her role at Dalya Imar Insaat, Ms. Sulaiman serves as a consultant to Tepe Construction (a family-owned construction company) on industrial and commercial construction projects globally and represents certain food and beverage brands expanding into new markets. Ms. Sulaiman also manages other real estate investments for MAM Abramenko as well as brand management. Ms. Sulaiman graduated from Texas Christian University with a BBA. The Company believes that Ms. Sulaiman’s international business experience and relationships gives her the qualifications and skills necessary to serve as a director of our Company.

Family Relationships

There are no family relationships between any director or officer of the Company and any other such person.

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Involvement in Certain Legal Proceedings

No director nor any executive officer has not been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, nor has he or she been a party to any judicial or administrative proceeding during the past ten years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement.

Delinquent Section 16(a) Reports

Section 16(a) of the Exchange Act requires the Company’s directors, executive officers and persons who beneficially own more than 10% of the Company’s common stock (collectively, “Reporting Persons”) to file with the SEC reports regarding their ownership and changes in our ownership of our securities. We believe that, during ~~2024~~2025, all Reporting Persons complied with all Section 16(a) filing requirements. except for a late Form 4 filing by Keller Reid on October 24, 2025 to report a sale of the Company's common stock which occurred on October 21, 2025.

Leadership Structure of the Board

The Board does not currently have a policy on whether the same person should serve as both the Chief Executive Officer and Chairman of the Board or, if the roles are separate, whether the Chairman should be selected from the non-employee directors or should be an employee. The Board believes that it should have the flexibility to make these determinations at any given point in time in the way that it believes best to provide appropriate leadership for the Company at that time. Gust Kepler currently serves as Chief Executive Officer of the Company and Chairman of the Board. The Company does not currently have a lead independent director.

Board Role in Risk Oversight and Management

The Board has an active role in the oversight and management of the Company’s risks and carries out its role directly and through Board committees. The Board’s direct role in the Company’s risk management process includes regular or periodic receipt and discussion of reports from management and the Company’s outside counsel and advisers on areas of material risk to the Company, including operational, strategic, financial, legal and regulatory risks.

The Board has also delegated the oversight and management of certain risks to the Audit and Compensation Committees of the Board. The Audit Committee is responsible for the oversight of Company risks relating to accounting matters, financial reporting and related party transactions. To satisfy these oversight responsibilities, the Audit Committee meets with, receives and discusses reports from the Chief Financial Officer, the Company’s independent registered public accountant, and the Company’s outside counsel as needed. The Compensation Committee is responsible for the oversight of risks relating to the Company’s compensation and benefit programs. To satisfy these oversight responsibilities, the Compensation Committee meets with, receives and discusses reports from the Chief Executive Officer and the Chief Financial Officer to understand the financial, human resources and stockholder implications of compensation and benefit decisions.

The Board has also addressed risk through the adoption of corporate policies. The Board has adopted a Code of Ethics and Business Conduct that is designed to ensure that directors, officers and employees of the Company are aware of their legal and ethical responsibilities and conduct the Company’s business in a consistently legal and ethical manner.

Insider Trading Policy

We have adopted an Insider Trading Policy (the “Insider Trading Policy”) containing policies and procedures governing the purchase, sale and/or other dispositions of our securities by Company Insiders (including officers and directors as well as certain other employees identified pursuant to the Insider Trading Policy), or by us. Such policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations, and any listing standards applicable to us.

Hedging Policy

The Company’s insider trading policy prohibits all officers and directors of the Company and its subsidiaries, and any other person designated from time to time by the Company as being a “Company Insider,” as well as his or her immediate family members, from participating in hedging or monetization transactions, such as prepaid variable forwards, equity swaps, collars, and exchange funds, involving Company securities.

Committees

The Board has established Audit, Compensation, and Nominating and Governance Committees to devote attention to specific subjects and to assist it in the discharge of its responsibilities. The functions of the Audit Committee, the Compensation Committee, and the Nominating and Governance Committee are described below.

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Audit Committee

We have a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The Audit Committee’s responsibilities include, among other things: (i) selecting and retaining an independent registered public accounting firm to act as our independent auditors, setting the compensation for our independent auditors, overseeing the work done by our independent auditors and terminating our independent auditors, if necessary, (ii) periodically evaluating the qualifications, performance and independence of our independent auditors, (iii) pre-approving all auditing and permitted non-audit services to be provided by our independent auditors, (iv) reviewing with management and our independent auditors our annual audited financial statements and our quarterly reports prior to filing such reports with the SEC, including the results of our independent auditors’ review of our quarterly financial statements, and (v) reviewing with management and our independent auditors significant financial reporting issues and judgments made in connection with the preparation of our financial statements. The Audit Committee also prepares the Audit Committee report that is required to be included in our annual proxy statement pursuant to the rules of the SEC. We have adopted an Audit Committee charter which can be found on our investor website at https://~~https://~~blackboxstocks.com.

The Audit Committee is composed of Grant Evans (Chairman), Keller Reid, and Dalya Sulaiman. The Audit Committee was formed on September 11, 2021 in order for us to meet our corporate governance requirements for listing on the Nasdaq Capital Market. The Audit Committee met 3 times in ~~2024~~2025. Under the applicable rules and regulations of the Nasdaq Capital Market, each member of the Audit Committee must be considered independent in accordance with Nasdaq Rule 5605(c)(2)(A)(i) and (ii) and Rule 10A-3(b)(1) under the Exchange Act. The Board has determined that each of the members is “independent” as that term is defined under applicable Nasdaq and SEC rules. The Audit Committee has at least one financial expert (as defined by 407 (d)(5)(ii) of Regulation S-K). The board has also determined that ~~Grant~~Robert ~~Evans~~Foresman meets the qualifications of an "audit committee financial expert," as defined under the applicable rules and regulations of the SEC.

Compensation Committee

The Compensation Committee is composed of Grant Evans (Chairman), Keller Reid and Dalya Sulaiman., each of whom is an independent director, as defined by Nasdaq Rule 5605(a)(2). The Compensation Committee was formed on September 11, 2021 in order for us to meet our corporate governance requirements for listing on the Nasdaq Capital Market. The Compensation Committee met once in ~~2024~~2025. The Compensation Committee is empowered to advise management and make recommendations to the Board with respect to the compensation and other employment benefits of executive officers, key employees and directors of the Company. The Compensation Committee also administers the Company’s stock incentive plan for officers, directors, employees and consultants. The Compensation Committee is authorized, among other powers, to determine from time to time the individuals to whom options shall be granted, the number of shares to be covered by each option and the time or times at which options shall be granted pursuant to our stock incentive plans. We have adopted a Compensation Committee charter which can be found on our investor website at https://blackboxstocks.com.

Compensation Committee Processes and Procedures

The Compensation Committee meets at least once annually and with greater frequency if necessary. The agenda for each meeting is developed by the Chair of the Compensation Committee, in consultation with the Chief Executive Officer and the Chief Financial Officer. The Compensation Committee meets from time to time in executive session. In addition, from time to time, various members of management and other employees as well as outside advisors or consultants may be invited by the Compensation Committee to make presentations, to provide financial or other background information or advice or to otherwise participate in Compensation Committee meetings. The Chief Executive Officer may not participate in, or be present during, any deliberations or determinations of the Compensation Committee regarding his compensation. The charter of the Compensation Committee grants the Compensation Committee full access to all books, records, facilities and personnel of the Company. In addition, under the charter, the Compensation Committee has the authority to obtain, at the expense of the Company, advice and assistance from compensation consultants and internal and external legal, accounting or other advisors and other external resources that the Compensation Committee considers necessary or appropriate in the performance of its duties. The Compensation Committee has direct responsibility for the oversight of the work of any consultants or advisers engaged for the purpose of advising the Committee. In particular, the Compensation Committee has the sole authority to retain, in its sole discretion, compensation consultants to assist in its evaluation of executive and director compensation, including the authority to approve the consultant’s reasonable fees and other retention terms. Under the charter, the Compensation Committee may select, or receive advice from, a compensation consultant, legal counsel or other adviser to the Compensation Committee, other than in-house legal counsel and certain other types of advisers, only after taking into consideration six factors, prescribed by the SEC and Nasdaq, that bear upon the adviser’s independence; however, there is no requirement that any adviser be independent. To date, the Compensation Committee has not engaged any consultants.

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Nominating and Governance Committee

The Nominating and Governance Committee is composed of Grant Evans (Chairman), Keller Reid and Dalya Sulaiman,. each of whom is an independent director, as defined by Nasdaq Rule 5605(a)(2). The Nominating and Governance Committee was formed on September 11, 2021 in order for us to meet our corporate governance requirements for listing on the Nasdaq Capital Market. The Nominating and Governance Committee met ~~one~~once ~~time~~ in ~~2023~~2025. We have adopted a Nominating and Governance Committee charter which can be found on our investor website at https://blackboxstocks.com.

The Nominating and Governance Committee has not adopted a formal policy with regard to consideration of director candidates recommended by security holders. For vacancies which are anticipated on the Board, the Nominating and Governance Committee intends to seek out and evaluates potential candidates from a variety of sources that may include recommendations by security holders, members of management and the Board, consultants and others. The minimum qualifications for potential candidates for the Board include demonstrated business experience, decision-making abilities, personal integrity and a good reputation. While diversity is not a leading factor in the Nominating and Governance Committee’s evaluation of potential candidates and there is no formal policy for considering diversity when nominating a potential director, it is a consideration that is evaluated along with other qualifications of potential candidates. In light of the foregoing, it is believed that a formal, written policy and procedure with regard to consideration of director candidates recommended by security holders is not necessary in order for the Nominating and Governance Committee to perform its duties. The Corporate Nominating and Governance Committee identifies and recommends to the Board individuals qualified to serve as directors of the Company, advises the Board with respect to its committees’ composition, oversees the evaluation of the Board, and oversees other matters of corporate governance.

Code of Business Conduct and Ethics

We have adopted a formal Code of Ethics and Business Conduct applicable to all Board members, officers and employees. Our Code of Ethics and Business Conduct can be found on the Corporate Governance section of the investor relations page of our website at https://blackboxstocks.com.

Item 11.

Executive Compensation.

The following table sets forth all compensation for the last two fiscal years awarded to, earned by or paid to our principal executive officer and our two other most highly compensated executive officers serving during the last completed fiscal year (collectively, the “Named Executives”):

Summary Compensation Table

Name and Principal Position	Year	Salary		Bonus (1)		Stock Awards		Total
Gust Kepler, Director, President and Chief	~~2024~~2025	$	200,000	$	~~19,494~~-		-	$	~~219~~200,~~494~~000
Executive Officer (Principal Executive Officer)	~~2023~~2024	$	200,000	$	1419,~~058~~494		-	$	~~214~~219,~~058~~494
Robert Winspear, Director, Chief Financial	~~2024~~2025	$	200,000		-		-621,000	$	~~200~~821,000
Officer and Secretary (Principal Financial Officer)	~~2023~~2024	$	200,000		-		-	$	200,000
Charles Smith, Chief Technology Officer	~~2024~~2025	$	180,000		-		-	$	180,000
	2023	$	180,000		-		-	$	180,000
	2024	$	180,000		-		-	$	180,000

(1) Reflects cash bonus payment.

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Outstanding Equity Awards at Fiscal Year End

The following table sets forth information regarding outstanding stock options and other equity awards held by each of our Named Executives as of December 31, ~~2024~~2025:

			Equity Awards
			Number of Securities Underlying Unexercised awards				Exercise Price		Expiration Date
Name	Date		Exercisable		Unexercisable
Gust Kepler				0		0
Robert Winspear (1)		9-11-2021		25,000		~~6,250~~0	$	7.80		9-11-2031
Charles Smith (2)		11-29-2021		12,500		~~12,500~~0	$	13.68		11-29-2031

Narrative Disclosure to Summary Compensation and Outstanding Equity Awards at Fiscal Year End Tables

Gust Kepler, a director and our President and Chief Executive Officer is paid an annual salary of $200,000. Mr. Kepler was paid a discretionary cash bonus of $19,494 ~~and $14,058~~ in 2024 ~~and 2023, respectively~~.

Robert Winspear, a director and our Chief Financial Officer and Secretary was appointed to serve as Chief Financial Officer and Secretary on September 11, 2021. Mr. Winspear’s salary is $200,000 per year. Mr. Winspear ~~was~~received ~~also granted~~ a ~~warrant~~stock togrant ~~purchase~~of 25,000 shares at a value of ~~Common~~$3.46 ~~Stock~~per share and a stock grant of 50,000 shares at a ~~price~~value of $710.8069 per share. ~~The~~during ~~warrant~~2025. isBoth ~~vested~~grants ~~and~~are is100% ~~exercisable for ten years~~vested.

Charles Smith was appointed to serve as our Chief Technology Officer on November 29, 2021. Mr. Smith’s salary is $180,000 per year. ~~Mr. Smith was granted an option to purchase 12,500 shares of Common Stock at a price of $13.68 per share. The option is vested and is exercisable for ten years.~~

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Employment Agreements

On May 9, 2024 Blackboxstocks entered into an executive employment agreement with Robert Winspear pursuant to which he agreed to serve as the Chief Financial Officer and Secretary of the Company effective upon closing of the proposed share exchange with Evtec. On January 13, 2025, the Company and Evtec entered into a termination agreement pursuant to which the parties mutually agreed to terminate the proposed share exchange and as a result, Mr. Winspear’s executive employment agreement has not and will not become effective The Company has not entered into any other employment agreement or consulting agreement with any Named Executive or director of the Company providing for compensation and all serve at the discretion of our Board.

Compensation of Directors

Our non-employee directors are currently paid an annual cash retainer of, or equity incentives valued at, $30,000 per year ($35,000 for the audit committee chair) and receive an option grant of 5,000 shares of our common stock. Our Officers do not receive additional compensation for serving as directors.

The following table sets forth certain information with respect to the compensation paid to our non-employee directors, excluding reasonable travel expenses, for the year ended December 31, ~~2024~~2025.

Name	Fees Earned or Paid in Cash ($)		Stock Awards ($)		Option Awards ($)		Non-equity incentive plan compensation ($)		All other compensation ($)		Total ($)
Keller Reid (1)		0		30,000		0		0		0		30,000
Ray Balestri (1)		30,000				0		0		0		30,000
Grant Evans (1)		0		35,000		0		0		0		35,000
Dalya Sulaiman (1)		3015,000		015,000		0		0		0		30,000

(1) Non-employee directors receive an annual retainer of $30,000 or $35,000 payable in cash or stock. ~~Mr. Balestri and~~ Ms. Sulaiman ~~were~~was in paid in cash for ~~their~~her service through December of ~~2024~~2025, and Mr. Evans and Mr. Reid received agrants ~~grant~~ of 1110,~~585~~116 and 8,671 shares of ~~Company~~Blackboxstocks common stock, respectively, in lieu of cash. Ms. Sulaiman received 15,000 of cash and a grant of 1,434 shares

Outstanding Equity Awards at Fiscal Year-End

~~There~~The ~~are~~following notable sets forth information regarding outstanding stock options and other equity awards held by each of our non-employee directors as of December 31, ~~2024~~2025.

Optionholder	Number of Shares of Common Stock Subject to Blackboxstocks Options		Exercise Price		Grant Date
Dalya Sulaiman		1,250	$	19.84		9-11-21
Dalya Sulaiman		1,250		4.08		9-11-22
Dalya Sulaiman		1,250		2.53		11-17-23
Dalya Sulaiman		5,000		3.46		2-5-25
Sub-total		8,750
Grant Evans		5,000		3.46		2-5-25
Sub-total		5,000
Keller Reid		1,250		2.53		11-17-23
Keller Reid		5,000		3.46		2-5-25
Sub-total		6,250
Grand Total		20,000

Equity Award Timing Policies

We do not have a formal policy or obligation that requires us to award equity-based compensation on specific dates. Our Compensation Committee and Board have adopted a policy with respect to the grant of stock options and other equity incentive awards that generally prohibits the grant of stock options or other equity awards to executive officers during closed quarterly trading windows (as determined in accordance with our Insider Trading Policy). Our Insider Trading Policy also prohibits directors, officers and employees from trading in our common stock while in possession of or on the basis of material non-public information about us. Neither our Board nor our Compensation Committee takes material non-public information into account when determining the timing of equity awards, nor do we time the disclosure of material non-public information for the purpose of impacting the value of executive compensation. We generally issue equity awards to our executive officers on a limited and infrequent basis, and not in accordance with any fixed schedule.

During the last fiscal year, there were no equity awards to any named executive officers within four business days preceding the filing of any report of Forms 10-K, 10-Q, or 8-K that discloses material nonpublic information.

Registrant’s Action to Recover Erroneously Awarded Compensation

We had no accounting restatements requiring the recovery of erroneously awarded compensation as of December 31, ~~2024~~2025.

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Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Securities Authorized for Issuance under Equity Compensation Plans

2021 Equity Incentive Plan

On August 4, 2021, our Board of Directors and our stockholders approved the adoption of the 2021 Stock Incentive Plan (the “2021 Plan”) and it became effective August 31, 2021. We amended the 2021 Plan effective October 6, 2022 to increase the number of shares available for issuance from 187,500 to 312,500 and again on February 6, 2023 to increase the number of shares available for issuance from 312,500 to 612,500. Participation in the 2021 Plan will continue until all of the benefits to which the participants are entitled have been paid in full. The following table sets forth our equity compensation 2021 Plan information as of December 31, ~~2024~~2025.

Plan	Number of securities to be issued upon exercise of outstanding options and rights (1)		Weighted- average exercise price of outstanding options and rights (1)		Number of securities remaining available for issuance under equity compensation plans
2021 Stock Incentive Plan		144,925	$	9.10		73,043
Total		144,925	$	9.10		73,043

2025 Long-Term Incentive Plan

~~(1)~~On ~~Excludes~~January ~~restricted~~30, ~~stock~~2026, ~~grants~~in ~~for~~connection ~~395~~with the REalloys Merger,~~333~~ ~~shares~~our ~~under~~Stockholders approved the ~~2021~~adoption of the 2025 Long-Term Incentive Plan., ~~Because~~the ~~there~~”2025 isPlan”. noThe ~~exercise~~2025 ~~price~~Plan ~~associated~~provides ~~with~~for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, ~~grants~~restricted stock units, ~~such~~performance awards, dividend equivalent rights, and other awards, which may be granted singly, in combination, or in tandem, and which may be paid in cash or shares of our common stock. 8,500,000 shares are available for issuance under the 2025 Plan. No awards were made during the year ended December 31, 2025 as the 2025 Plan was not ~~included~~yet inapproved by the ~~weighted-average~~stockholders ~~price~~of ~~calculation~~the Company until 2026.

Plan	Number of securities to be issued upon exercise of outstanding options and rights (1)		Weighted- average exercise price of outstanding options and rights (1)		Number of securities remaining available for issuance under equity compensation plans
2021 Stock Incentive Plan		132,625	$	9.55		11,256
2025 Long-Term Incentive Plan		0		-		8,500,000
Total		132,625	$	9.55		8,511,256

(1) Excludes restricted stock grants for 442,150 shares under the 2021 Plan. Because there is no exercise price associated with the restricted stock grants, such shares are not included in the weighted-average price calculation.

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Beneficial Ownership of Principal Shareholders and Management

The following table sets forth information regarding the beneficial ownership of our Common Stock and Series A Preferred Stock as of ~~March~~February 2019, ~~2025~~2026, unless otherwise indicated, by: (1) each person known to us to be the beneficial owner of more than 5% of each class of our capital stock; (2) each director of the Company; (3) the Company’s current named executive officers and (4) all current directors and executive officers as a group. To the best of our knowledge, each of the persons named in the table below as beneficially owning the shares set forth therein has sole voting power and sole investment power with respect to such shares, unless otherwise indicated. Applicable percentages are based upon 34,~~602~~480,~~874~~437 shares of Common Stock and 3,269,998 shares of Series A Preferred Stock outstanding as of ~~March~~February 2019, ~~2025~~2026. Unless otherwise specified, the address of each of the persons set forth below is in care of the Company, at the address of 5430 LBJ Freeway, Suite 1485, Dallas, Texas 75240.

Title of Class	Name and Address of Beneficial Owner(1)	Amount and Nature of Beneficial Ownership		Percent of Class			Voting Control
Common Stock
As Individuals	Gust Kepler (2)		~~598~~596,~~018~~410		1613.64	%		*
	Eric Pharis		197,904		5.5	%		*
	Robert Winspear (3)		143,250		3.2	%		*
	Robert Winspear (3)		93,250		2.6	%		*
	Charles Smith (4)		40,013		*			*
	Charles Smith (4)		49,167		1.4	%		*
	Grant Evans (6)		23,724		*			*
	Grant Evans (6)		21,519		*			*
	Dalya Sulaiman (5)		39,396		*			*
	Dalya Sulaiman (5)		32,778		*			*
	Keller Reid (7)		23,798		*			*
	Keller Reid (7)		25,048		*			*
As a Group	Executive Officers and Directors as a group (6 persons)		866,591		19.5	%		*
As a Group	Executive Officers and Directors as a group (7 persons)		1,011,435		28.1	%		*
	Stephen Chiang 8 Kitchener Link City Square Residences #21-14 Singapore 207226		250,000		5.6	%		*
	David Kyle		208,334		5.8	%		*
	Ventum Financial Group		287,500		8.0	%		*
	Stephen Chiang 8 Kitchener Link City Square Residences #21-14 Singapore 207226		250,000		6.9	%		*
Series A Preferred Stock
As a Group	Officers and Directors		3,269,998		100	%		9998.18	%
As Individuals	Gust Kepler		3,269,998		100	%		9998.29	%

*Less than 1%

(1) Beneficial ownership is calculated in accordance with the rules of the SEC in accordance with Rule 13d-3(d)(1) of the Exchange Act. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options or warrants held by that person that are currently exercisable or will become exercisable within 60 days following ~~March~~February 2019, ~~2025~~2026 are deemed outstanding. However, these shares are not deemed outstanding for the purpose of computing the percentage ownership of any other person. Unless otherwise indicated in the footnotes to this table, the persons and entities named in the table have sole voting and sole investment power with respect to all shares beneficially owned, subject to community property laws where applicable.

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(2) Includes 192 shares owned by Judy Children Inheritance Trust for which Mr. Kepler serves as trustee. Excludes 3,269,998 shares of Series A Preferred Stock held by Mr. Kepler (separately noted in the table) which may be converted on a 5-for-1 share ratio (for a total of 653,999 shares of common stock) based upon the Company’s current market capitalization and the limitations provided for in our Conversion Agreement with Mr. Kepler. Each share of Series A Preferred Stock held by Mr. Kepler is entitled to 100 votes on all stockholder matters, and along with the common stock held by Mr. Kepler collectively represents approximately 56.3% of our issued and outstanding capital stock and approximately 9998.28% of the voting power of our stockholders.

(3) Includes 3787,000 shares owned by Winspear Investments LLC which is 100% owned by Mr. Winspear and his wife, and 6,250 shares owned by ACM Winspear Investments L.P. of which Mr. Winspear is general partner. Also includes 25,000 shares underlying a warrant exercisable by Mr. Winspear for 25,000 shares which are vested ~~and 25,000 shares of restricted stock that vest quarterly over 2025~~.

(4) Includes ~~36,667 shares owned by Cyfeon Solutions Inc which is controlled by Mr. Smith and~~ 12,500 shares underlying an option granted to Mr. Smith which are vested.

(5) Includes 58,~~000~~750 shares underlying options ~~that are exercisable within 60 days of March 20, 2025 resulting from options~~ granted to Ms. Sulaiman ~~to purchase 8,750 shares of Common Stock under the 2021 Plan~~ which ofare ~~which the unvested portion vests quarterly during 2025~~exercisable.

(6) Includes 105,~~116~~000 shares ~~of restricted stock that vest quarterly over 2025 and 1,250 shares~~ underlying an option ~~for 5,000 shares that vests quarterly during 2025~~ granted to Mr. Evans which are exercisable.

(7) Includes 87,~~671~~500 shares ~~of restricted stock that vest quarterly over 2025 and 3,750 shares~~ underlying options ~~for 10,000 shares that were~~ granted to Mr. Reid of which ~~the~~are ~~unvested portion vests quarterly during 2025~~exercisable.

Item 13.

Certain Relationships and Related Transactions, and Director Independence.

Related Transactions

On March 16, 2023, the Company purchased 282,501 shares of Common Stock from Gust Kepler, a director and our Chief Executive Officer, at a price of $0.28 per share. The purchase of these shares was done in order to reduce Mr. Kepler’s cash bonus for 2022. The shares acquired from Mr. Kepler were subsequently retired and added back to authorized but unissued shares.

On July 1, 2024, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) pursuant to which the Company sold 312,500 shares of Common Stock, at a price per share of $4.00 for gross proceeds of $1,250,000. Gust Kepler, a director and our Chief Executive Officer, purchased $100,000 of the Common Stock under the terms of the Stock Purchase Agreement.

Director Independence

Our common stock is listed on the Nasdaq Capital Market. Under the rules of Nasdaq, independent directors must comprise a majority of a listed company’s board of directors. In addition, the rules of Nasdaq require that, subject to specified exceptions, each member of a listed company’s audit, compensation, and nominating and corporate governance committees be independent. Under the rules of Nasdaq, a director will only qualify as an “independent director” if, in the opinion of that company’s board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. Compensation committee members must also satisfy the independence criteria set forth in Rule 10C-1 under the Exchange Act.

In order to be considered independent for purposes of Rule 10A-3 and Rule 10C-1, a member of an audit committee or compensation committee of a listed company may not, other than in his or her capacity as a member of the committee, the board of directors, or any other board committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

We have undertaken a review of the independence of each director and considered whether each director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, we determined that each of Messrs. Keller Reid and Grant Evans and Ms. Dalya Sulaiman representing three of our five directors, are considered “independent directors” as defined under the applicable rules and regulations of the SEC and the listing requirements and rules of Nasdaq.

Item 14.

Principal Accounting Fees and Services.

Principal Accountant Fees and Services

On December 20, 2024, the Company engaged Victor ~~Mokuolo~~Mokuolu CPA PLLC as its new independent registered public accounting firm, for the audit of the Company’s consolidated financial statements for the year ended December 31, ~~2024~~2025 and terminated Turner Stone & Company L.L.P. ~~Victor Mokuolo CPA PLLC did not bill the Company for any professional services during the year ended 2024.~~

The following table sets forth aggregate fees billed to the Company for professional services by ~~Turner,~~Victor ~~Stone~~Mokuolo &CPA ~~Company,~~PLLC ~~L.L.P.~~ for the ~~fiscal~~ years ended December 31, ~~2024~~2025 and ~~2023~~2024.:

	2024		2023
	2025		2024
Audit Fees (1)	$	8982,~~299~~500	$	6389,~~912~~299
Audit-Related Fees (2)		715,~~500~~000		~~---~~7,500
Tax Fees (3)		52,~~250~~710		35,~~750~~250
All Other Fees		~~---~~		---
Total Fees	$	~~101~~100,~~979~~210	$	67101,~~662~~979

(1)	“Audit Fees” consist of fees for professional services rendered in connection with the audit of our annual consolidated financial statements, including audited financial statements presented in our annual report on Form 10-K, review of our quarterly financial statements presented in our quarterly report on Form 10-Q and services that are normally provided by our independent registered public accounting firm in connection with statutory and regulatory filings or engagements for those fiscal years, including audit services in connection with filing registration statements, and amendments thereto.
(2)	“Audit-related Fees” consist of fees related to audit and assurance procedures not otherwise included in Audit Fees, including fees related to the application of GAAP to proposed transactions and new accounting pronouncements.
(3)	“Tax Fees” consist of professional services rendered for tax compliance, tax advice or tax planning.

Audit Committee Pre-Approval

Our Audit Committee pre-approves all auditing services and permitted non-audit services to be performed for us by our independent auditor, including the fees and terms thereof. All of the services described above were approved by our Audit Committee.

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PART IV

Item 15.

Exhibits, Financial Statement Schedules.

(a)

Financial Statements

The following documents are filed as part of this l Report on Form 10-K beginning on the pages referenced below:

	Page
Report of Independent Registered Public Accounting Firm (PCAOB ID #6771)	F-1
Report of Independent Registered Public Accounting Firm (PCAOB ID #76)	F-2
Consolidated Balance Sheets as of December 31, 2025 and 2024	F-3
Consolidated Balance Sheets as of December 31, 2024 and 2023	F-3
Consolidated Statements of Operations for the years ended December 31, 2025 and 2024	F-4
Consolidated Statements of Operations for the years ended December 31, 2024 and 2023	F-4
Consolidated Statements of Stockholders’ Deficit for the years ended December 31, 2025 and 2024	F-5
Consolidated Statements of Stockholders’ Deficit for the years ended December 31, 2024 and 2023	F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024	F-6
Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023	F-6
Notes to Consolidated Financial Statements	F-7 – F-18
Notes to Consolidated Financial Statements	F-7 – F-17

(b) Exhibits -Need to Update

The following exhibits are filed with this Report on Form 10-K or are incorporated by reference as described below.

Exhibit	Description
2.1	Agreement and Plan of Merger, dated March 10, 2025, by and among Blackboxstocks Inc., RABLBX Merger Sub, Inc., and REalloys Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 10, 2025).
2.2	First Amendment to Agreement and Plan of Merger, dated July 1, 2025, by and among Blackboxstocks Inc., RABLBX Merger Sub, Inc., and REalloys Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on July 1, 2025).
2.3	Second Amendment to Agreement and Plan of Merger, dated August 22, 2025, by and among Blackboxstocks Inc., RABLBX Merger Sub, Inc., and REalloys Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 22, 2025).
2.4	Third Amendment to Agreement and Plan of Merger, dated December 10, 2025, by and among Blackboxstocks Inc., RABLBX Merger Sub, Inc. and REalloys Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 10, 2025).
3.1	Articles of Incorporation of SMSA Ballinger Acquisition Corp. (incorporated by reference to Exhibit 3.4 of the Company's Registration Statement on Form 10-12G filed with the Commission on August 5, 2014).
3.2	Certificate of Designation of Series A Preferred Stock dated December 1, 2015 (incorporated by reference to Exhibit 3.1 of the Company’s Information Statement on Form 8-K filed with the Commission on December 7, 2015).
3.3	Certificate of Amendment to Articles of Incorporation dated effective March 9, 2016. (incorporated by reference to Exhibit 3.9 of the Company’s Annual Report on Form 10-K filed with the Commission on April 14, 2016).
3.4	Certificate of Amendment to Articles of Incorporation dated effective as of July 15, 2019 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Commission on July 15, 2019)
3.5	Certificate of Amendment to Articles of Incorporation dated effective as of April 10, 2023 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Commission on April 10, 2023).
3.6	Certificate of Designation of Series B Preferred Stock dated June 8, 2023 (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed with the Commission on June 9, 2023).
3.7	Amended and Restated Bylaws of Blackboxstocks, Inc. adopted and effective on April 18, 2022 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed with the Commission on April 19, 2022)
4.1	Description of Securities (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K filed with the Commission on April 16, 2020)
4.2	Blackboxstocks, Inc. 2021 Stock Incentive Plan (amended and restated effective as of February 6, 2023) (incorporated by reference to Appendix A to the Company’s Information Statement on Schedule 14C filed on December 29, 2022)
4.3	Common Stock Purchase Warrant issued to Alexander Capital, L.P. (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed with the Commission on November 16, 2021)

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10.1	~~Second Amendment to~~ Office Lease dated ~~September~~March 1926, ~~2017~~2015 between Teachers Insurance and Annuity Association of America and ~~Blackboxstocks~~G2 International, Inc. (incorporated by reference to Exhibit 10.1436 of the Company’s ~~Annual~~Registration ~~Report~~Statement on Form 10S-K4 ~~filed~~dated ~~with~~effective ~~the~~as ~~Commission~~of onJanuary ~~April 17~~16, ~~2018~~2026).
10.2	~~Conversion~~First ~~Rights~~Amendment ~~Agreement~~to Office Lease dated ~~effective~~June as12, 2015 between Teachers Insurance and Annuity Association of ~~October~~America 14and G2 International, ~~2021~~Inc. (incorporated by reference to Exhibit 10.137 of the Company’'s ~~Current~~Registration ~~Report~~Statement on Form 8S-K4 ~~filed~~dated ~~with~~effective ~~the~~as ~~Commission~~of onJanuary ~~October 15~~16, ~~2021~~2026).
10.3	~~Securities~~Second ~~Exchange~~Amendment ~~Agreement~~to Office Lease dated September 19, 2017 between ~~Blackboxstocks~~Teachers ~~Inc.~~Insurance and ~~Evtec~~Annuity ~~Group~~Association ~~Limited~~of ~~dated~~America ~~June~~and 9Blackboxstocks, ~~2023~~Inc. (incorporated by reference to Exhibit 10.114 of the Company'’s ~~Current~~Annual Report on Form 810-K filed with the Commission on ~~June~~April 917, ~~2023~~2018).
10.4	~~Amendment~~Assignment ~~to the Amended Letter~~ of ~~Intent~~Lease ~~among~~dated ~~Blackboxstocks~~August ~~Inc.~~28, ~~Evtec~~2017 ~~Group~~between ~~Limited,~~G2 ~~Evtec Automotive Limited~~International, Inc. and ~~Evtec~~Blackboxstocks ~~Aluminium~~Inc. ~~Limited dated November 24, 2023~~ (incorporated by reference to Exhibit 10.113 ofto the Company's ~~Current~~Annual Report on Form 810-K filed with the Securities and Exchange Commission on ~~November~~April 2417, ~~2023~~2018).
10.5	~~Forfeiture~~Conversion Rights Agreement ~~between~~dated ~~Blackboxstocks~~effective ~~Inc.~~as ~~and~~of ~~Evtec~~October ~~Group Limited dated November 28~~14, ~~2023~~2021 (incorporated by reference to Exhibit 10.21 of the Company'’s Current Report on Form 8-K filed with the Commission on ~~November~~October 2415, ~~2023~~2021).
10.6	~~Share~~Securities Exchange Agreement ~~dated~~between ~~December 12, 2023 among~~ Blackboxstocks, Inc., and Evtec ~~Aluminium~~Group Limited, ~~and~~dated ~~the~~June ~~shareholders~~9, of2023 ~~Evtec Aluminium Limited~~ (incorporated by reference to Exhibit 210.1 of the Company's Current Report on Form 8-K filed with the Commission on ~~December~~June 129, 2023).
10.7	~~Option~~Amendment ~~Agreement~~to ~~between~~the Amended Letter of Intent among Blackboxstocks, Inc., Evtec Group Limited, Evtec Automotive Limited, and ~~Gust~~Evtec ~~Kepler~~Aluminium Limited dated November 24, 2023 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed with the Commission on ~~December~~November 1224, 2023 ~~and is included as Exhibit C in the Share Exchange Agreement dated December 12, 2023~~).
10.8	~~Form~~Forfeiture ofAgreement ~~Contingent~~between ~~Value~~Blackboxstocks ~~Rights~~Inc. ~~Agreement~~and Evtec Group Limited dated November 28, 2023 (incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed with the Commission on ~~December~~November 1224, 2023 ~~and is included as Exhibit E in the Share Exchange Agreement dated December 12, 2023~~).
10.9	~~Contribution~~Share Exchange Agreement dated ~~April~~December 1812, ~~2024,~~2023 byamong ~~and between~~ Blackboxstocks, Inc., Evtec Aluminium Limited, and ~~Blackbox.io~~the ~~Inc.~~shareholders of Evtec Aluminium Limited (incorporated by reference to Exhibit 102.1 of the Company’'s Current Report on Form 8-K filed with the Commission on ~~April~~December 2212, ~~2024~~2023).
10.10	~~First~~Option ~~Amendment to Share Exchange~~ Agreement ~~dated~~between ~~July 3~~Blackboxstocks, ~~2024, by and among Blackboxstocks~~ Inc., ~~Evtec Aluminium Limited,~~ and ~~the~~Gust ~~shareholders~~Kepler ~~of Evtec Aluminium Limited~~ (incorporated by reference to Exhibit 210.1 of the Company’'s Current Report on Form 8-K filed with the Commission on ~~July~~December 312, ~~2024~~2023 and is included as Exhibit C in the Share Exchange Agreement dated December 12, 2023).
10.11	~~Stock~~Form ~~Purchase~~of ~~Agreement~~Contingent ~~dated~~Value ~~July~~Rights 1,Agreement ~~2024, by and between Blackboxstocks Inc., Gust Kepler and Quadrofoglio Holdings LLC~~ (incorporated by reference to Exhibit 10.12 of the Company’'s Current Report on Form 8-K filed with the Commission on ~~July~~December 312, ~~2024~~2023 and is included as Exhibit E in the Share Exchange Agreement dated December 12, 2023).
10.12	~~Convertible~~Contribution ~~Loan~~ Agreement dated ~~July~~April 118, 2024, by and between Blackboxstocks Inc. and ~~Evtec~~Blackbox.io ~~Aluminium~~Inc. ~~Limited~~ (incorporated by reference to Exhibit 10.21 of the Company’s Current Report on Form 8-K filed with the Commission on ~~July~~April 322, 2024).
10.13	~~Termination~~First ~~Agreement~~Amendment ~~dated~~to asShare ofExchange ~~January~~Agreement 13dated July 3, ~~2025~~2024, by and among Blackboxstocks Inc., Evtec Aluminium Limited, and the shareholders of Evtec Aluminium Limited (incorporated by reference to Exhibit 102.1 of the Company’s Current Report on Form 8-K filed with the Commission on ~~January~~July 173, ~~2025~~2024).
10.14	~~Securities~~Stock Purchase Agreement dated asJuly ~~of January 17~~1, ~~2025~~2024, by and between Blackboxstocks Inc., ~~and~~Gust ~~Five~~Kepler ~~Narrow~~and ~~Lane~~Quadrofoglio LPHoldings LLC (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on ~~January~~July 223, ~~2025~~2024).
10.15	~~7.00%~~Convertible ~~Senior~~Loan ~~Debenture~~Agreement dated ~~January~~July 171, ~~2025~~2024, ~~issued~~between by Blackboxstocks Inc. and Evtec Aluminium Limited (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the Commission on ~~January~~July 223, ~~2025~~2024).
10.16	~~Form~~Termination Agreement dated as of ~~Registration~~January ~~Rights~~13, ~~Agreement~~2025, by and among Blackboxstocks Inc. and Evtec Aluminium Limited (incorporated by reference to Exhibit 10.31 of the Company’s Current Report on Form 8-K filed with the Commission on January 2217, 2025).
10.17	~~Amendment to~~ Securities Purchase Agreement dated as of January 2717, 2025, bybetween ~~and among~~ Blackboxstocks Inc. and Five Narrow Lane LP (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on ~~February~~January 422, 2025).
10.18	~~Amended~~7.00% ~~and~~Senior ~~Restated~~ Debenture ~~Due~~dated ~~the~~January ~~Earlier of the Trigger Date and March 14~~17, 2025, ~~dated~~issued ~~January~~by ~~27,~~Blackboxstocks ~~2025~~Inc. (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the Commission on ~~February~~January 422, 2025).
10.19	~~Agreement~~Form ~~and Plan~~ of ~~Merger~~Registration ~~dated~~Rights ~~March~~Agreement ~~10, 2025, by and among Blackboxstocks Inc., RABLBX Merger Sub Inc. and REalloys Inc.~~ (incorporated by reference to Exhibit 210.13 of the Company’s Current Report on Form 8-K filed with the Commission on ~~March~~January 1022, 2025).
10.20	~~Company~~Amendment ~~Stockholder~~to ~~Support~~Securities Purchase Agreement dated ~~March~~as 10of January 27, 2025, by and among Blackboxstocks Inc., ~~REalloys~~and ~~Inc.~~Five ~~and~~Narrow ~~Gust~~Lane ~~Kepler~~LP (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on ~~March~~February 104, 2025).
10.21	~~Form~~Amended ofand ~~REalloys~~Restated ~~Stockholder~~Debenture ~~Support~~Due ~~Agreement~~the ~~dated~~Earlier ~~March~~of ~~10,~~the ~~2025,~~Trigger byDate and ~~among~~March ~~Blackboxstocks Inc.~~14, ~~REalloys~~2025 ~~Inc.~~dated ~~and~~January ~~the~~27, ~~Stockholders~~2025 ~~party thereto~~ (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the Commission on ~~March~~February 104, 2025).
10.22	~~Amended~~Agreement and ~~Restated~~Plan ~~Senior~~of ~~Secured~~Merger ~~Convertible~~dated ~~Debenture~~March ~~due~~10, ~~the~~2025, ~~Earlier~~by ofand ~~the~~among ~~Trigger~~Blackboxstocks ~~Date~~Inc., ~~and~~RABLBX ~~January~~Merger ~~17,~~Sub ~~2026~~Inc. and REalloys Inc. (incorporated by reference to Exhibit 102.31 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.23	Company Stockholder Support Agreement dated March 10, 2025, by and among Blackboxstocks Inc., REalloys Inc. and Gust Kepler (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.24	Form of REalloys Stockholder Support Agreement dated March 10, 2025, by and among Blackboxstocks Inc., REalloys Inc. and the Stockholders party thereto (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.25	Amended and Restated Senior Secured Convertible Debenture due the Earlier of the Trigger Date and January 17, 2026 (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).

5059

10.23	Registration Rights Agreement dated March 10, 2025, between Blackboxstocks Inc. and the Purchasers signatory thereto (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.24	Security Agreement dated March 10, 2025, by and among Blackboxstocks Inc., Blackbox.io Inc. and Five Narrow Lane LP (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.25	Subsidiary Guarantee dated March 10, 2025, by and among the Guarantors signatory thereto and Purchasers named therein (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
14.1*	Code of Business Conduct
16.1	Letter from Turner, Stone & Company, L.L.P. dated December 23, 2024 (incorporated by reference to Exhibit 16.1 of the Company's Current Report on Form 8-K filed with the Commission on December 26, 2024).
19.1*	Insider Trading Policy.
21.1*	List of Subsidiaries of the Registrant.
24.1	Power of Attorney (contained in signature page to this Annual Report on Form 10-K)
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350*
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350*
97.1	Executive Incentive Compensation Recoupment Policy (incorporated by reference to Exhibit 97.1 to the Company's Annual Report on Form 10-K filed with the Commission on April 1, 2024).
101.1	Inline Interactive data files pursuant to Rule 405 of Regulation S-T*
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

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10.26	Registration Rights Agreement dated March 10, 2025, between Blackboxstocks Inc. and the Purchasers signatory thereto (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.27	Security Agreement dated March 10, 2025, by and among Blackboxstocks Inc., Blackbox.io Inc. and Five Narrow Lane LP (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
10.28	Subsidiary Guarantee dated March 10, 2025, by and among the Guarantors signatory thereto and Purchasers named therein (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the Commission on March 10, 2025).
14.1	Code of Business Conduct (incorporated by reference to Exhibit 14.1 to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2025).
19.1	Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2025).
21.1*	List of Subsidiaries of the Registrant
24.1	Power of Attorney (contained in signature page to this Annual Report on Form 10-K)
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350*
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350*
97.1	Executive Incentive Compensation Recoupment Policy (incorporated by reference to Exhibit 97.1 to the Company's Annual Report on Form 10-K filed with the Commission on April 1, 2024).
101.1	Inline Interactive data files pursuant to Rule 405 of Regulation S-T*
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

* Filed herewith.

Item 16.

Form 10–K Summary.

None.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 21, 2025	BLACKBOXSTOCKS INC.
Date: February 23, 2026	BLACKBOXSTOCKS INC.
	By:	/s/ Gust Kepler
		Gust Kepler
		President, Chief Executive Officer and Director
Date: March 21, 2025	By:	/s/ Robert Winspear
Date: February 23, 2026	By:	/s/ Robert Winspear
		Robert Winspear
		Chief Financial Officer, Secretary and Director

POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Gust Kepler and Robert Winspear, and each of them, as his or her true and lawful attorney-in-fact and agent with full power of substitution, for him or her in any and all capacities, to act on, sign any and all amendments to this Annual Report on Form 10-K and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact, proxy, and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, proxy and agent, or his substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons in the capacities set forth opposite their names and on ~~March~~February 2123, ~~2025~~2026.

Name		Title

/s/ Gust Kepler		President, Chief Executive Officer and Director
Gust Kepler		(Principal Executive Officer)

/s/ Robert Winspear		Chief Financial Officer, Secretary and Director
Robert Winspear		(Principal Accounting and Financial Officer)

/s/ Grant Evans		Director
Grant Evans

/s/ Keller Reid		Director
Keller Reid

/s/ Dalya Sulaiman		Director
Dalya Sulaiman

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders

Blackboxstocks, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Blackboxstocks, Inc. (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, stockholders’ equity, and cash flows for the ~~year~~years ended December 31, 2025 and 2024, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the year ended December 31, 2025 and 2024, in conformity with accounting principles generally accepted in the United States of America.

Substantial doubt about the Company’s ability to continue as a Going concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations - $34,~~309~~028,~~064~~290 and $53,~~297~~309,~~671~~064 for the ~~year~~years ended December 31, ~~2024~~2025 and December 31, ~~2023~~2024 respectively; and used cash in its operating activities that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our ~~audit~~audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our ~~audit~~audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the ~~audit~~audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our ~~audit~~audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our ~~audit~~audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our ~~audit~~audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our ~~audit~~audits ~~provides~~provide a reasonable basis for our opinion.

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Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee or the Company’s governance and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters communicated or required to be communicated to the audit committee.

Other Matters

The audit of the accompanying consolidated balance sheet of Blackboxstocks, Inc. as of December 31, 2023, and the related statement of operations, stockholders’ equity, and cash flows for the year ended December 31, 2023, and the related notes (collectively referred to as the financial statements) was performed by another Independent Registered Public Accounting Firm, Turner, Stone & Company, L.L.P.

We have served as the Company’s auditor since 2024.

Houston, Texas

~~March~~February 2123, ~~2025~~2026

PCAOB ID: 6771

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

Blackboxstocks, Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Blackboxstocks, Inc. (the “Company”) as of December 31, 2023 and 2022, and the related statements of operations, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations and used cash in its operating activities that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Turner, Stone & Company, L.L.P.

We have served as the Company's auditor since 2015.

Dallas, Texas

April 1, 2024

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Blackboxstocks Inc.

Consolidated Balance Sheets

December 31, ~~2024~~2025 and ~~2023~~2024

	December 31,
	2024			2023
	2025			2024
Assets
Current assets:
Cash	$	1739,~~036~~158		$	~~472~~17,~~697~~036
Accounts receivable		720,~~217~~148			187,~~212~~217
Inventory		3,464			3,464
Marketable securities		-			2,955
Note receivable		-			1,100,000
Note receivable		1,100,000			-
Prepaid expenses and other current assets		6,970			44,880
Other receivable		-			475,000
Total current assets		69,740			1,172,597
Prepaid expenses and other current assets		44,880			35,161
Long term assets:
Total current assets		1,172,597			1,007,489
Property and equipment, net		947			6,310
Long Term Assets:
Right of use lease		221,380			287,783
Property and equipment, net		6,310			52,281
Investments		8,394,000			8,424,000
Right of use lease		287,783			344,370
Total long term assets		8,616,327			8,718,093
Investments		8,424,000			8,424,000
Total assets	$	8,686,067		$	9,890,690
Total assets	$	9,890,690		$	9,828,140
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,~~629~~463,~~803~~102		$	~~842~~1,~~404~~629,803
Accrued interest		192,~~613~~564			1,613
Unearned subscriptions		~~928~~726,~~203~~208			1928,~~295,514~~203
Lease liability right of use, current		6574,~~389~~362			6465,~~818~~389
Note payable, current portion		10,592			28,064
Senior secured convertible debenture, net of issuance costs		252,030			-
Merchant cash advance		187,921			-
Convertible note payable		164,000			-
Advances payable		50,000			-
Note payable		100,000			10,592
Advances payable, related party		101,189			-
Merchant cash advance		-			187,921
Evtec advances payable		1,293,000			-
Advances payable		-			50,000
Total current liabilities		4,267,710			2,232,413
Advances payable, related party		-			101,189
Evtec advances payable		-			1,293,000
Total current liabilities		2,872,266			4,267,710
Long term liabilities:
Note payable		-			11,550
Lease liability right of use, long term		154,423			228,785
Lease liability right of use, long term		228,785			287,417
Total long term liabilities		154,423			228,785
Total long term liabilities		228,785			298,967
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2024 and 2023, respectively		-			-
Preferred stock (undesignated), $0.001 par value, 2,600,000 shares authorized; no shares issued and outstanding at December 31, 2025 and 2024, respectively		-			-
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 3,269,998 issued and outstanding at December 31, 2024 and 2023, respectively		3,270			3,270
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000 shares authorized; 3,269,998 issued and outstanding at December 31, 2025 and 2024, respectively		3,270			3,270
Series B Convertible Preferred Stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively		-			-
Series B Convertible Preferred Stock, $0.001 par value, 2,400,000 shares authorized; no shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively		-			-
Common stock, $0.001 par value, 100,000,000 shares authorized: 3,538,038 and 3,223,015 issued and outstanding at December 31, 2024 and 2023, respectively		3,538			3,223
Common stock, $0.001 par value, 100,000,000 shares authorized: 4,309,652 and 3,538,038 issued and outstanding at December 31, 2025 and 2024, respectively		4,310			3,538
Common stock payable		-			-
Treasury stock		(40	)		-
Treasury stock		-			(27,650	)
Additional paid in capital		33,034,072			28,343,505
Additional paid in capital		28,343,505			26,802,808
Accumulated deficit		(27,382,234	)		(22,956,118	)
Accumulated deficit		(22,956,118	)		(19,484,891	)
Total stockholders' equity		5,659,378			5,394,195
Total stockholders' equity		5,394,195			7,296,760
Total liabilities and stockholders' equity	$	8,686,067		$	9,890,690
Total liabilities and stockholders' equity	$	9,890,690		$	9,828,140

The accompanying footnotes are an integral part of these consolidated financial statements.

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Blackboxstocks Inc.

Consolidated Statements of Operations

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024

	December 31,
	2024			2023
	2025			2024
Revenue:
Subscriptions	$	2,~~563~~347,~~257~~439		$	32,~~096~~563,~~112~~257
Other revenues		383,~~689~~794			93,~~914~~689
Total revenues		2,~~566~~431,~~946~~233			32,~~106~~566,~~026~~946
Cost of revenues		1,~~437~~265,~~283~~109			1,~~666~~437,~~192~~283
Gross margin		1,~~129~~166,~~663~~124			1,~~439~~129,~~834~~663
Operating expenses:
Software development costs		~~417~~413,~~944~~594			~~923~~417,~~720~~944
Selling, general and administrative		34,~~568~~503,~~296~~299			53,~~140~~568,~~391~~296
Advertising and marketing		~~436~~272,~~456~~158			~~629~~436,~~984~~456
Depreciation and amortization		165,~~031~~363			4316,~~410~~031
Total operating expenses		45,~~438~~194,~~727~~414			64,~~737~~438,~~505~~727
Operating income (loss)		(34,~~309~~028,~~064~~290	)		(53,~~297~~309,~~671~~064	)
Other (income) expense:
Interest expense		~~263~~117,557			~~633~~263
Financing costs		~~132~~102,~~308~~254			-132,308
Loss on disposition of assets		29,940			-
Amortization of debt issuance costs		241,015			-
Other income		-			(575,000	)
Loss on disposition of assets		-			29,940
Investment (income) loss		(348	)		(58,849	)
Gain on settlement of assets and liabilities		(93,000	)		-
Total other (income) expense		162,163			(633,216	)
Other income		-			(348	)
Loss before income taxes		(3,471,227	)		(4,664,455	)
Investment loss		30,000			-
Total other (income) expense		397,826			162,163
Loss before income taxes		(4,426,116	)		(3,471,227	)
Income Taxes		-			-
Net loss	$	(34,~~471~~426,~~227~~116	)	$	(43,~~664~~471,~~455~~227	)
Weighted average number of common shares outstanding - basic and diluted		3,~~376~~796,~~407~~373			3,~~219~~376,~~224~~407
Net loss per share - basic and diluted	$	(1.0317	)	$	(1.4503	)

The accompanying footnotes are an integral part of these consolidated financial statements.

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Blackboxstocks Inc.

Consolidated ~~Statement~~Statements of Stockholders’ Equity

For the years ended December 31, ~~2024~~2025 and ~~2023~~2024

	Preferred Stock				Series A Preferred Stock				Series B Preferred Stock						Common Stock						~~Common Stock~~Treasury			~~Treasury~~Additional Paid in			~~Additional~~Accumulated			~~Accumulated~~
	Shares		Amount		Shares		Amount		Shares			Amount			Shares			Amount			~~Payable~~Stock			~~Stock~~Capital			~~Paid in Capital~~Deficit			~~Deficit~~Total			~~Total~~
Balances, December 31, 2022		-	$	-		3,269,998	$	3,270		-		$	-			3,298,033		$	3,298		$	23,340		$	(1,102,375	)	$	18,070,556		$	(14,820,436	)	$	2,177,653
Balances, December 31, 2023		-	$	-		3,269,998	$	3,270		-		$	-			3,223,015		$	3,223		$	(27,650	)	$	26,802,808		$	(19,484,891	)	$	7,296,760
Issuance of stock for partial shares resulting from reverse split		-		-		-		-		-			-			8,838			8			-			-			(8	)		-			-
Retirement of treasury stock		-		-		-		-		-			-			(10,607	)		(11	)		27,650			(27,639	)		-			-
Purchase of treasury stock		-		-		-		-		-			-			-			-			-			(106,750	)		-			-			(106,750	)
Forfeiture of shares		-		-		-		-		-			-			(10,000	)		(10	)		-			10			-			-
Retirement of treasury stock		-		-		-		-		-			-			(454,441	)		(454	)		-			1,181,475			(1,181,021	)		-			-
Stock based compensation		-		-		-		-		-			-			23,130			23			-			368,639			-			368,662
Stock based compensation		-		-		-		-		-			-			370,585			371			(23,340	)		-			1,489,281			-			1,466,312
Issuance of stock for cash		-		-		-		-		-			-			312,500			313			-			1,199,687			-			1,200,000
Issuance of stock for investment		-		-		-		-		2,400,000			2,400			-			-			-			-			8,421,600			-			8,424,000
Net loss		-		-		-		-		-			-			-			-			-			-			(3,471,227	)		(3,471,227	)
Forfeiture of stock		-		-		-		-		(2,400,000	)		(2,400	)		-			-			-			-			2,400			-			-
Balances, December 31, 2024		-	$	-		3,269,998	$	3,270		-		$	-			3,538,038		$	3,538		$	-		$	28,343,505		$	(22,956,118	)	$	5,394,195
Net loss		-		-		-		-		-			-			-			-			-			-			-			(4,664,455	)		(4,664,455	)
Shares issued to treasury		-		-		-		-		-			-			39,724			40			(40	)		-			-			-
Balances, December 31, 2023		-	$	-		3,269,998	$	3,270		-		$	-			3,223,015		$	3,223		$	-		$	(27,650	)	$	26,802,808		$	(19,484,891	)	$	7,296,760
Stock based compensation		-		-		-		-		-			-			164,287			164			-			1,364,913			-			1,365,077
Retirement of treasury stock		-		-		-		-		-			-			(10,607	)		(11	)		-			27,650			(27,639	)		-			-
Issuance of stock for cash		-		-		-		-		-			-			210,000			210			-			1,492,812			-			1,493,022
Forfeiture of shares		-		-		-		-		-			-			(10,000	)		(10	)		-			-			10			-			-
Issuance of stock for financing costs		-		-		-		-		-			-			15,000			15			-			49,635			-			49,650
Stock based compensation		-		-		-		-		-			-			23,130			23			-			-			368,639			-			368,662
Issuance of stock for conversion of debt		-		-		-		-		-			-			326,658			327			-			1,783,223			-			1,783,550
Issuance of stock for cash		-		-		-		-		-			-			312,500			313			-			-			1,199,687			-			1,200,000
Issuance of stock for cashless exercise of options and warrants		-		-		-		-		-			-			15,945			16			-			(16	)		-			-
Net loss		-		-		-		-		-			-			-			-			-			-			-(4,426,116	)		(34,~~471~~426,~~227~~116	)		~~(3,471,227~~	)
Balances, December 31, 2024		-	$	-		3,269,998	$	3,270		-		$	-			3,538,038		$	3,538		$	-		$	-		$	28,343,505		$	(22,956,118	)	$	5,394,195
Balances, December 31, 2025		-	$	-		3,269,998	$	3,270		-		$	-			4,309,652		$	4,310		$	(40	)	$	33,034,072		$	(27,382,234	)	$	5,659,378

The accompanying footnotes are an integral part of these consolidated financial statements.

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Blackboxstocks Inc.

Consolidated Statements of Cash Flows

For the years ended December 31, ~~2024~~2025 and ~~2023~~ 2024

	December 31,
	2024			2023
	2025			2024
Cash flows from operating activities:
Net loss	$	(34,~~471~~426,~~227~~116	)	$	(43,~~664~~471,~~455~~227	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		165,~~031~~363			4316,~~410~~031
Stock based compensation		368,662			1,454,062
Amortization of note discount and issuance costs		241,015			-
Right of use lease		(1,474	)		7,864
Financing costs		102,254			132,308
Financing costs		132,308			-
Shares issued for financing costs		49,650			-
Loss on disposition of assets		29,940			-
Stock based compensation		1,365,077			368,662
Investment income		(348	)		(58,849	)
Right of use lease		1,014			(1,474	)
Gain on settlement of other liabilities and note receivable		(93,000	)		-
Loss on disposition of assets		-			29,940
Other income		-			(348	)
Investment loss		30,000			-
Changes in operating assets and liabilities:
Accounts receivable		10(12,~~995~~931	)		4110,~~401~~995
Inventory		-			12,000
Other receivable		-			475,000
Other receivable		475,000			(475,000	)
Prepaid expenses and other current assets		37,910			(9,719	)
Prepaid expenses and other current assets		(9,719	)		75,859
Accounts payable		(198,136	)		667,229
Accounts payable		667,229			124,555
Accrued interest		90,951			-
Unearned subscriptions		(~~367~~201,~~311~~995	)		~~273~~(367,~~086~~311	)
Advances payable		(50,000	)		-50,000
Advances payable, related party		(101,189	)		-101,189
Evtec advances payable		~~1,293,000~~-			-1,293,000
Net cash used in operating activities		(~~705~~3,~~725~~160,133	)		(3705,~~166,067~~725	)
Cash flows from investing activities:
Purchase of property and equipment		-			(2,605	)
Purchase of marketable securities		-			(9,273	)
Purchase of marketable securities		(9,273	)		(11,293,184	)
Sale of marketable securities		-			12,576
Sale of marketable securities		12,576			14,565,358
Issuance of note receivable		-			(1,100,000	)
Issuance of note receivable		(1,100,000	)		0
Net cash provided by (used in) investing activities		-			(1,096,697	)
Net cash provided by (used in) investing activities		(1,096,697	)		3,269,569
Cash flows from financing activities:
Purchase of treasury stock		-			(27,650	)
Proceeds from issuance of common stock		1,493,022			1,200,000
Proceeds from issuance of common stock		1,200,000			-
Proceeds from issuance of senior secured convertible debenture		1,990,000			-
Proceeds from merchant cash advance		~~397,750~~-			-397,750
Principal payments on notes payable		(2910,~~022~~592	)		(2829,~~733~~022	)
Payments on merchant cash advance		(~~221~~290,~~967~~175	)		-(221,967	)
Net cash provided by (used in) financing activities		13,~~346~~182,~~761~~255			~~(56~~1,~~383~~346,761	)
Net increase (decrease) in cash	$	~~(455~~22,~~661~~122	)	$	47(455,~~119~~661	)
Cash - beginning of year		~~472~~17,~~697~~036			~~425~~472,~~578~~697
Cash - end of year	$	1739,~~036~~158		$	~~472~~17,~~697~~036
Supplemental disclosures:
Interest paid	$	~~264~~1,590		$	~~552~~264
Income taxes paid	$	-		$	-
Non-cash investing and financing activities:
Retirement of treasury stock	$	27,650		$	1,181,475
Discount on note payable	$	60,000		$	-
Treasury stock purchased with other assets	$	-		$	79,100
Discount on note payable from fees payable	$	195,435		$	-
Shares issued for investment	$	-		$	8,424,000
Fees payable settled through convertible note payable	$	164,000		$	-
Forfeiture of shares	$	-		$	2,400
Note payable issued on settlement of other liabilities and note receivable	$	100,000		$	-
Issuance of stock for conversion of senior secured convertible debenture	$	1,783,550		$	-
Retirement of treasury stock	$	-		$	27,650

The accompanying ~~footabexnotes~~footnotes are an integral part of these consolidated financial statements.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

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.

The Company changed its name to Blackboxstocks, Inc. and began operating as a financial technology and social media platform in March 2016. The platform offers real-time proprietary analytics and news for stock and options traders of all levels. The Company believes its 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. The software continuously scans the NASDAQ, New York Stock Exchange, CBOE, and other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. The Company also provides users with a fully interactive social media platform that is integrated into our dashboard, enabling users to exchange information and ideas quickly and efficiently through a common network. Recently, the Company also introduced a live audio/video feature that allows members to broadcast on their own channels to share trade strategies and market insight within the community. The platform was initially made available to subscribers in September 2016. Subscriptions for the use of the platform are sold on a monthly and/or annual subscription basis to individual consumers through the Company website at http://blackboxstocks.com.

On April 1, 2024, the Company formed Blackbox.io Inc., a Delaware corporation, and on April 18, 2024, the Company and Blackbox.io Inc entered into a contribution agreement (the “Contribution Agreement”) pursuant to which the Company transferred certain specified business assets (the “Contributed Assets”) to Blackbox.io Inc. In consideration for the Contributed Assets, Blackbox.io Inc issued to the Company 3,226,145 shares of common stock, par value $0.001 per share and 3,369,998 shares of Series A convertible preferred stock, $0.001 par value per share, of Blackbox.io Inc, free and clear of all liens (the “Blackbox.io Operating Equity”), and assumed certain specified liabilities of the business of the Company (the “Assumed Liabilities”).

Simultaneously with the execution of the Contribution Agreement, the Company delivered fully executed documents of conveyance to effect the contribution of the Contributed Assets and the assignment of the Assumed Liabilities to Blackbox.io Inc, including (i) a bill of sale, (ii) an assignment and assumption agreement and (iii) an intellectual property assignment and Blackbox.io Inc delivered certificates and notices of issuance of stock transferable on the books of Blackbox.io Inc evidencing the issuance of the Blackbox.io Operating Equity.

As a result of the Contribution Agreement, Blackbox.io Inc. is a wholly-owned corporate subsidiary of the Company that now holds the Company’s legacy assets and continues its legacy business operations.

The Company is listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol “BLBX”.

2. Summary of Significant Accounting Policies

Basis of Presentation. The accompanying consolidated financial statements (“financial statements”) have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”).

Going Concern. The accompanying financial statements have been prepared in assumption of the continuation of the Company as a going concern, which is dependent upon the Company's ability to obtain sufficient financing or establish itself as a profitable business. For the year ended December 31, ~~2024~~2025, the Company incurred an operating loss of $34,~~309~~028,~~064~~ 290 and a net loss of $34,~~471~~426,~~227~~116. In addition, for the year ended December 31, ~~2023~~2024, the Company incurred an operating loss of $53,~~297~~309,~~671~~064 and a net loss of $43,~~664~~471,~~455~~227. Cash flows used in operations totaled $~~705~~3,~~725~~160,133 for the year ended December 31, ~~2024~~2025. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

On March 10, 2025, the Company entered into an Agreement and Plan of Merger ~~(the “Merger Agreement”)~~ with RABLBX Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of the Company ~~(“Merger Sub”)~~ and REalloys Inc., a Nevada corporation ~~(“REalloys”). Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement~~, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a wholly-owned subsidiary of the Company (the “Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) or as ~~otherwise~~further ~~agreed~~described to in ~~the~~Note ~~Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess of certain thresholds~~9. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected to collectively retain approximately 7.3% of the post-Close aggregate common stock of the Company, par value $0.001 (the “Company Common Stock”) and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92.7% of the post-Close aggregate as common and preferred stock of the Company. The Company believes that REalloys Inc. will be able to raise substantial capital and already has completed a financing that will provide $5,000,000 upon completion of the Merger. Closing of the Merger is subject to various customary closing conditions including but not limited to ~~the SEC declaring the registration statement effective~~, approval of REalloys Inc. initial listing application by Nasdaq~~, and stockholder approval~~.

In addition, the Company entered into a Securities Purchase Agreement with Five Narrow Lane LP, on January 17, 2025 (which was later amended on January 27, 2025, pursuant to which the Company issued Five Narrow Lane LP debentures in the aggregate principal amount of $2,300,000 (the “Purchase Agreement”). $2,050,000 of the financing was received during the year ended December 31, 2025 and the balance was received in February of 2026.

The Company has historically been able to raise capital in order to fund its operations and on January 31, 2025, the Company filed a registration statement on Form S-3 for the sale of up to $50,000,000 of securities. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell securities in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75,000,000. On July 1, 2025 the Company entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital, L.P. (“Alexander Capital”). Pursuant to the ATM Agreement, the Company may from time to time issue and sell to or through Alexander Capital, acting as the Company’s sales agent, shares of the Company’s common stock, par value $0.001 per share (the “Shares”), having an aggregate offering price of up to $5,795,000. Sales of the Shares, if any, will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). As sales agent, Alexander Capital will offer the Shares at prevailing market prices and will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell on the Company’s behalf all of the Shares requested to be sold by the Company, subject to the terms and conditions of the ATM Agreement. As of February 19, 2026, the Company has raised gross proceeds of $2,146,556 under the ATM Agreement from the sale of 254,695 shares of its common stock.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

In addition, the Company entered into a Securities Purchase Agreement dated with Five Narrow Lane LP, on January 17, 2025 (which was later amended on January 27, 2025 pursuant to which the Company agreed to issue, and Five Narrow Lane LP agreed to purchase, a series of debentures (the “Purchase Agreement”). The Purchase Agreement provides for financing of up to an aggregate principal amount $2,300,000 of which $1,050,000 has been received. An additional $750,000 will be funded upon filing of a registration statement on Form S-4 for the Merger, and an additional $500,000 will be funded when such registration statement on Form S-4 is declared effective by the SEC. There can be no assurance that the merger with REalloys will be completed and the related financing will be received.

Principles of Consolidation. The condensed consolidated financial statements include the accounts of Blackboxstocks Inc. and its wholly owned subsidiary Blackbox.io Inc., a Delaware corporation. All intercompany transactions and account balances between the Company and its subsidiary have been eliminated in consolidation. Transactions with its consolidated subsidiary are generally settled in cash.

Use of Estimates. The Company’s financial statement preparation requires that management make estimates and assumptions which affect the reporting of assets and liabilities and the related disclosure of contingent assets and liabilities in order to report these financial statements in conformity with GAAP. Actual results could differ from those estimates.

Segments. The Company operates as a single segment.

Cash. Cash includes all highly liquid investments that are readily convertible to known amounts of cash and have original maturities at the date of purchase of three months or less.

The Company maintains its cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC provides coverage of up to $250,000 per depositor, per financial institution, for the aggregate total of depositors' interest and non-interest-bearing accounts. From time to time the Company's cash balance exceeded FDIC limits. The Company has not experienced any losses on these accounts and management does not believe that the Company is exposed to any significant risks.

Accounts Receivable. Accounts receivable consists of invoiced and unpaid sales. The Company records an allowance for doubtful accounts to allow for any amounts that may not be recoverable, which is based on an analysis of the Company’s prior collection experience, customer credit worthiness, and current economic trends. Accounts are considered delinquent when payments have not been received within the agreed upon terms and are written off when management determines that collection is not probable.

Investments in Marketable Securities. The Company has invested in marketable securities which primarily consist of investments in mutual funds that hold commercial and government debt securities. These investments are recorded at fair value based on quoted prices at the end of the Company’s reporting period. Any realized or unrealized gains or losses are recognized in the accompanying statements of operations.

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.

Impairment of Long-lived Assets. The Company evaluates long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future cash flows the asset is expected to generate. If the cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.

Income Taxes. The Company recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

In accordance with ASC Topic 740, Income Taxes, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

Revenue Recognition. The Company operates under a software as a service (SaaS) model whereby we sell monthly and annual subscriptions allowing subscribers access to our platform. We recognize revenue over the subscription period (either monthly or annual) and record cash received but not yet earned as unearned subscriptions on our balance sheet in accordance with ASC 606.

Additionally, the Company receives revenue from the sale of education classes which are generally delivered as webinars. Revenues from these classes are recognized when the classes are held. The Company also receives revenues from commissions and the sale of promotional products which are presented as other revenues on the accompanying statements of operations. Commission revenues are recognized as they are earned and revenues from the sale of promotional products are recognized upon shipment.

Software Development Costs. The Company accounts for software development costs pursuant to ASC 985, Software, which requires that the costs incurred for planning, designing, coding and testing of software prior to technological feasibility be recorded as research and development expenses as incurred. Such costs include both internal development and engineering costs as well as development expenses contracted through third parties.

Advertising Expenses. The Company accounts for its advertising and marketing expenses in accordance with ASC 720-35-50 and expenses all costs as incurred including direct expenses of advertisement placement as well as the cost of producing or creating the advertisement.

Prepaid Expenses. Prepaid expenses are current assets created when the Company makes payments or incurs an obligation for expenses identified for a future period. These amounts are charged to expense as the services are provided.

Leases. The Company uses the right-of-use (“ROU”) model to account for leases where the Company is the lessee, which requires an entity to recognize a lease liability and ROU asset on the lease commencement date. A lease liability is measured equal to the present value of the remaining lease payments over the lease term and is discounted using the incremental borrowing rate, as the rate implicit in the Company's leases is not readily determinable. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Lease payments include payments made before the commencement date and any residual value guarantees, if applicable. When determining the lease term, the Company includes option periods that it is reasonably certain to exercise as failure to renew the lease would impose a significant economic detriment.

For operating leases, minimum lease payments or receipts, including minimum scheduled rent increases, are recognized as rent expense where the Company is a lessee on a straight-line basis (“Straight-Line Rent”) over the applicable lease terms. The excess of the Straight-Line Rent over the minimum rents paid is included in the ROU asset where the Company is a lessee. Short-term lease cost for operating leases includes rental expense for leases with a term of less than 12 months.

Stock-Based Compensation. The Company may issue stock options to employees and stock options or warrants to non-employees in non-capital raising transactions for services and for other costs. The cost of stock options and warrants issued is measured on the grant date based on the fair value using the Cox-Ross-Rubinstein option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period.

The Cox-Ross-Rubinstein option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Company's stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instrument. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

Recently Issued Accounting Pronouncements. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-09 (“ASU 2023-09”), Income Taxes, which enhances the transparency of income tax disclosures by expanding annual disclosure requirements related to the rate reconciliation and income taxes paid. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis. Retrospective application is permitted. Adoption did not have any impact on the Company’s disclosures.

In November 2023, the FASB issued Accounting Standards Update 2023-07 (“ASU 2023-07”), Segment Reporting, which improves reportable segment disclosure requirements. ASU 2023-07 primarily enhances disclosures about significant segment expenses by requiring that a public entity disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss. This ASU also (i) requires that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment, and a description of its composition; (ii) requires that all annual disclosures are provided in the interim periods; (iii) clarifies that if the CODM uses more than one measure of profitability in assessing segment performance and deciding how to allocate resources, that one or more of those measures may be reported; (iv) requires disclosure of the title and position of the CODM and a description of how the reported measures are used by the CODM in assessing segment performance and in deciding how to allocate resources; (v) requires that an entity with a single segment provide all new required disclosures. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and requires retrospective application. Early adoption is permitted. The amendments under ASU 2023-07 relate to financial disclosures and its adoption will not have an impact on the Company’s results of operations, financial position or cash flows. Adoption did not have any impact on the Company’s disclosures.

Subsequent Events. The Company has evaluated all transactions through the date the financial statements were issued for subsequent event disclosure or adjustment consideration.

Earnings or (Loss) Per Share. Basic earnings per share (or loss per share), is computed by dividing the earnings (loss) for the period by the weighted average number of common stock shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities by including other potentially issuable shares of common stock, including shares issuable upon conversion of convertible securities or exercise of outstanding stock options and warrants, in the weighted average number of common shares outstanding for the period. Therefore, because including shares issuable upon conversion of convertible securities and/or exercise of outstanding options and warrants would have an anti-dilutive effect on the loss per share, only the basic earnings (loss) per share is reported in the accompanying financial statements for period of loss.

The Company had total potential additional dilutive securities outstanding at December 31, ~~2024~~2025 and ~~2023~~2024, as follows.

	2024		2023
	2025		2024
Series A Convertible Preferred Shares		3,269,998		3,269,998
Conversion rate		0.2		0.2
Common shares after conversion		654,000		654,000
Option shares		~~144~~132,~~125~~625		~~215~~144,~~625~~125
Warrant shares		88100,~~510~~245		~~109~~88,~~584~~510
Senior secured convertible debenture	$	266,450		-
Convertible note	$	164,000		-
Conversion rate	$	5.46		-
Shares if converted		78,837		-

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

3. Investments ~~and Marketable Securities~~

Marketable Securities

The Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three levels of inputs may be used to measure fair value:

Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access;

Level 2 inputs utilize other-than-quoted prices that are observable, either directly or indirectly and include quoted prices for similar assets and liabilities in active markets, and inputs such as interest rates and yield curves that are observable at commonly quoted intervals; and

Level 3 inputs are unobservable and are typically based on our own assumptions, including situations where there is little, if any, market activity.

The Company’s marketable securities are highly liquid and are quoted on major exchanges and are therefore classified as Level 1 securities.

The following table summarizes the Company’s assets that were measured and recognized at fair value as of December 31, 2024 and 2023:

	Level 1			Level 2		Level 3		Total
Balance at December 31, 2022	$	3,216,280		$	-	$	-	$	3,216,280
Purchases		11,293,184			-		-		11,293,184
Sales		(14,565,358	)		-		-		(14,565,358	)
Change in fair value		58,849			-		-		58,849
Balance at December 31, 2023	$	2,955		$	-	$	-	$	2,955
Purchases		9,273			-		-		9,273
Sales		(12,576	)		-		-		(12,576	)
Change in fair value		348			-		-		348
Balance at December 31, 2024	$	-		$	-	$	-	$	-

Investments

Evtec Group Limited (“Evtec Group”) operates through a single subsidiary, Evtec Automotive Limited, as a supplier of critical automotive parts to the automobile manufacturing industry. Evtec Group is based in the UK and provides complete assemblies to auto manufacturers, simplifying sourcing, saving time on procurement, and increasing production efficiency. Their pick and pack service supplies aftermarket automotive products, as well as offering kitting and fulfilment for non-automotive businesses. Their business focuses on premium luxury brands and a market transition to electric vehicles and includes Jaguar Land Rover Group as their largest customer.

On June 9, 2023, the Company entered into a Securities Exchange Agreement (the Securities Exchange Agreement”) with Evtec Group whereby the Company issued 2,400,000 shares of Series B Convertible Preferred Stock (the “Series B Stock”) ~~(Note 4)~~ in exchange for 4,086 preferred shares of Evtec Group. Upon conversion of the Series B Stock, the 2,400,000 shares would represent approximately 43% of the total common shares outstanding. The Evtec Group preferred shares were convertible into common shares of Evtec Group on a one-for-one basis upon a change in control or the listing of Evtec Group on Nasdaq or the London Stock Exchange. The preferred shares of Evtec Group were converted into common shares representing approximately 13% of Evtec Group.

~~The~~Evtec Group entered into a Forfeiture Agreement with the Company’s ~~initial~~dated ~~investment~~November in28, 2023 pursuant to which Evtec Group ~~was~~forfeited ~~measured~~all atof $8its right,~~424,000~~ intitle ~~accordance~~and ~~with~~interest ~~ASC~~in ~~820-10-30.~~and ~~The~~to ~~value~~the of2,400,000 ~~the~~shares of Series B Stock ~~issued~~acquired by ~~the~~Evtec ~~Company~~Group. ~~was~~The ~~set~~Company byhas ~~the~~no ~~closing~~obligation ~~price~~to ofmake ~~its~~any ~~common~~payment ~~stock~~to onEvtec ~~the~~Group, ~~day~~in ~~prior~~cash toor ~~closing~~otherwise, offor ~~$3.51~~any assuch ~~reported~~Series byB ~~Nasdaq.~~Stock Asthat aare ~~result,~~so ~~the~~forfeited. The ~~2,400,000~~shares of Series B Stock ~~shares~~forfeited ~~were~~by ~~valued~~Evtec atGroup ~~$8,424,000 which~~were ~~was~~cancelled ~~determined~~as toof be the ~~cost~~date of the ~~investment~~Forfeiture ~~recorded~~Agreement. ~~pursuant~~In toaddition, ~~ASC~~Evtec ~~321-10-35. The~~Group ~~investment~~converted ~~was~~the ~~reviewed~~Evtec ~~for~~Group ~~impairment~~preferred asshares ofheld ~~December~~by 31the Company into 4,086 ~~2024~~ordinary shares.

The Company’s initial investment in Evtec Group was measured at $8,424,000 in accordance with ASC 820-10-30. The value of the Series B Stock issued by the Company was set by the closing price of its common stock on the day prior to closing of $3.51 as reported by Nasdaq. As a result, the 2,400,000 Series B Stock shares were valued at $8,424,000 which was determined to be the cost of the investment recorded pursuant to ASC 321-10-35.

On November 11, 2025 Evtec Group entered into a share exchange agreement with Evtec Group Holdings Limited (“Holdings”) whereby Evtec Group as well as two affiliated entities Evtec Aluminium Limited and JVM Castings Limited reorganized via share exchange agreements so that Holdings owned 100% of each of the three affiliated companies. The Company received 52,009 shares of Holdings representing approximately 5.2% of the outstanding shares. In connection with the share exchange, the Evtec Group shares were valued at approximately $11,992,000 based on the its ownership of Holdings and an estimated public valuation of Holdings of $230,565,000. Holdings terminated its plan to list as a public company and as a result, Blackboxstocks has applied a discount for lack of marketability to its investment of 30%. The Company recorded the shares of Holdings at $8,394,000 and recorded loss of $30,000 on the transaction.

The investment was reviewed for impairment as of December 31, 2025.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

On November 24, 2023, the Company entered into a Binding Amendment to Amended Letter of Intent (the “LOI Amendment”) with Evtec Group, Evtec Automotive Limited, and Evtec Aluminium (collectively the “Evtec Companies), which amended a non-binding Amended Letter of Intent (the “LOI”) dated April 14, 2023. Pursuant to the LOI Amendment, the Company agreed to continue to negotiate in good faith to consummate a proposed acquisition of the Evtec Companies contemplated by the LOI (the “Proposed Transaction”), subject to the terms of the LOI Amendment.

As a condition to the Company’s continued good faith negotiations regarding the Proposed Transaction, the Evtec Companies (i) paid the Company aggregate extension fees totaling $400,000, (ii) provided extension advances of $1,293,000 (iii) paid the Company $175,000, as reimbursement of legal expenses incurred, (iv) forfeited and returned the 2,400,000 shares of the Series B Stock acquired by Evtec Group under the terms of the Securities Exchange Agreement, and (v) permitted the Company to convert each of the 4,086 preferred shares of Evtec Group issued to the Company pursuant to the Securities Exchange Agreement into one ordinary share of Evtec Group.

As provided for in the LOI Amendment, Evtec Group entered into a Forfeiture Agreement with the Company dated November 28, 2023 pursuant to which Evtec Group forfeited all of its right, title and interest in and to the 2,400,000 shares of Series B Stock acquired by Evtec Group pursuant to the Securities Exchange Agreement in order to further induce the Company to continue to negotiate in good faith to consummate the Proposed Transaction. Pursuant to the Forfeiture Agreement, the Company has no obligation to make any payment to Evtec Group, in cash or otherwise, for any such Series B Stock that are so forfeited. The shares of Series B Stock forfeited by Evtec Group were cancelled as of the date of the Forfeiture Agreement. In addition, Evtec Group converted the Evtec Group preferred shares held by the Company into 4,086 ordinary shares.

On December 12, 2023, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement") with Evtec Aluminium, and the shareholders of Evtec Aluminium (“Sellers”).

On July 1, 2024, the Company entered into a Convertible Loan Agreement with Evtec Aluminium pursuant to which the Company loaned Evtec Aluminum $1,150,000 (the “Evtec Loan”). The Evtec Loan is unsecured, bears interest at 12% per annum and has a maturity date of one year from the date of issuance. The Evtec Loan is convertible into Evtec Aluminum ordinary shares at the rate of $1,197.92 per share at any time at the option of Blackboxstocks and converts automatically upon the closing of the Share Exchange Agreement (as defined below)..

On January 13, 2025, pursuant to Section 8.1 of that certain, Share Exchange Agreement dated December 12, 2023, among the Company, Evtec Aluminium Limited (“Evtec”) and certain other parties, the Company and Evtec centered into a termination agreement (the “Termination Agreement”) pursuant to which the parties mutually agreed to terminate the Share Exchange Agreement. As a result of the Termination Agreement, the Share Exchange Agreement is of no further force and effect (other than certain customary limited provisions that survive termination pursuant to the terms of the Share Exchange Agreement) and any ancillary agreements entered into in connection with the Share Exchange Agreement will also automatically terminate in accordance with their respective terms. On January 22, 2025, the Company withdrew its Registration Statement on Form S-4 previously filed in connection with the Share Exchange Agreement.

Prior to the Termination Agreement, Evtec provided $1,293,000 of financial support to the Company. On August 13, 2025, the Company and Evtec entered into a settlement agreement whereby Evtec and the Company would cancel the $1,150,000 note due by Evtec, the $1,293,000 advance due by the Company in return for a $100,000 note from Blackbox.io to Evtec due in June 2026 (see Note 8).

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

The Company’s initial investment in Evtec Group was measured at $8,520,000 in accordance with ASC 820-10-30. The value of the Series B Stock issued by the Company was set by the closing price of its common stock on the day prior to closing of $3.51 as reported by Nasdaq. As a result, the 2,400,000 Series B Stock shares were valued at $8,424,000.

On January 13, 2025, pursuant to Section 8.1 of the Share Exchange Agreement, the Company and Evtec Aluminum entered into a termination agreement (the “Termination Agreement”) pursuant to which the parties mutually agreed to terminate the Share Exchange Agreement. As a result of the Termination Agreement, the Share Exchange Agreement will be of no further force an effect (other than certain customary limited provisions that survive termination pursuant to the terms of the Share Exchange Agreement) and any ancillary agreements entered into in connection with the Share Exchange Agreement will also automatically terminate in accordance with their respective terms. See Note 11

Prior to the Termination Agreement, Evtec Aluminium provided $1,292,980 of financial support to the Company that remains outstanding at December 31, 2024.

4. 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, 2,400,000 of which are designated as “Series B 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 (the “Series A Stock”) rank pari passu with the Company’s Common Stock with respect to dividend and liquidation rights. Additionally, each share entitles the holder to 100 votes on matters submitted to Company stockholders. There are 3,269,998 shares of Series A Stock outstanding which are all held by Gust Kepler, the Company’s Chairman and Chief Executive Officer (“Mr. Kepler”). The Company and Mr. Kepler entered into Conversion Rights Agreement dated effective as of October 14, 2021, limiting the rights of the holder(s) of our outstanding shares of Series A Stock to convert such shares into Common Stock on a one-for-one basis as provided in the certificate of designation (the "Designation Conversion Rights"). Pursuant to the terms of the Conversion Rights Agreement, the Designation Conversion Rights are limited and exercisable based upon the Company reaching the following market capitalization ("Market Capitalization") thresholds, measured on the last day of each calendar quarter:

●

If the Company’s Market Capitalization is less than $150,000,000, the outstanding Series A Stock will be convertible into Common Stock on a 5-for-1 share basis;

●

If the Company’s Market Capitalization is equal to or greater than $150,000,000 but less than $200,000,000, the outstanding Series A Stock will be convertible into Common Stock on a 3.3-for-1 share basis;

●

If the Company’s Market Capitalization is equal to or greater than $200,000,000 but less than $250,000,000, the outstanding Series A Stock will be convertible into Common Stock on a 2.5-for-1 share basis;

●

If the Company’s Market Capitalization is equal to or greater than $250,000,000 but less than $350,000,000 the outstanding Series A Stock will be convertible into Common Stock on a 1.75-for-1 share basis;

●

If the Company’s Market Capitalization is equal to or greater than $350,000,000 the outstanding Series A Stock will thereafter convertible into Common Stock pursuant to the Designation Conversion Rights (on a 1-for-1 share basis).

The Conversion Rights Agreement terminates when the last share of Series A Stock is either converted or the largest Market Capitalization Threshold is met.

The Series B Stock has no dividend rights and no voting rights except as required by law or the Company’s bylaws. The Series B Stock is convertible into common shares on a one-for-one basis. Prior to the stockholder approval, the Series B Stock is not convertible into more than 19.9% of the Company’s outstanding common stock. All previously outstanding shares of Series B Stock were forfeited in December 2023.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

InOn ~~February~~July of1, ~~2023~~2024, the Company ~~retired~~entered ~~171,940~~into ~~shares~~a ~~of Common~~ Stock ~~acquired~~Purchase ~~pursuant~~Agreement to(the ~~its~~“Stock ~~stock~~Purchase ~~repurchase~~Agreement”) ~~plan.~~pursuant Into ~~March~~which ~~of 2023,~~ the Company ~~acquired~~sold ~~282~~312,~~501~~500 shares of its common stock, ~~from~~par Mrvalue $0.001 ~~Kepler~~(“Common Stock”), at a price per share of $04.2800 ~~per~~for ~~share~~gross proceeds of $1,250,000. Gust Kepler, a director, our President and ~~then~~Chief ~~retired~~Executive ~~these~~Officer, ~~shares~~purchased ~~returning~~$100,000 ~~them~~of tothe ~~authorized~~Common ~~but~~Stock ~~unissued~~under ~~shares~~the ~~(See~~terms ~~Note~~of 7)the Stock Purchase Agreement. Quadrofoglio Holdings LLC, a Florida limited liability company, purchased the remaining $1,150,000 of Common Stock.

OnDuring ~~April 10, 2023,~~ the ~~Company~~year ~~filed~~ended anDecember ~~Amendment to the Company’s Articles of Incorporation with the Nevada Secretary of State to effect the Reverse Stock Split at a Split Ratio of one-for-four. The Amendment took effect April 10~~31, ~~2023~~2025, ~~and~~ the Company’s ~~Common~~issued ~~Stock~~37,500 ~~began~~shares ~~trading~~of oncommon astock ~~split-adjusted~~valued ~~basis on The Nasdaq Capital Market~~ at ~~the commencement of trading on April 11~~$155,525 for ~~2023, under the Company’s existing symbol “BLBX~~services.”

~~There~~During ~~was~~the noyear ~~change~~ended inDecember 31, 2025, the ~~par~~Company ~~value~~issued 15,000 shares of ~~our~~common ~~Common~~stock ~~Stock~~valued orat ~~Preferred~~$49,650 ~~Stock~~for financing costs.

AsDuring athe ~~result~~year ofended ~~the~~December ~~Reverse~~31, ~~Stock Split~~2025, ~~every 4 shares of~~ the Company’s ~~Common Stock~~ issued ~~and outstanding immediately prior to the Effective Time was consolidated into one issued and outstanding share. In addition~~10,610 ~~proportionate~~shares ~~adjustments were made to the exercise prices~~ of ~~the~~common ~~Company’s outstanding~~ stock ~~options~~for ~~and warrants and to~~ the ~~number~~cashless exercise of ~~shares issued and issuable under the Company’s existing stock incentive plans~~options.

~~The~~During ~~impact~~the ofyear ended December 31, 2025, the ~~reverse~~Company ~~stock~~issued ~~split~~5,335 ~~has~~shares ~~been~~of ~~retroactively~~common ~~applied~~stock tofor ~~these~~the ~~financial~~cashless ~~statements~~exercise of warrants.

OnDuring ~~July 1, 2024,~~ the ~~Company~~year ~~entered~~ended ~~into~~December a31, ~~Stock~~2025, ~~Purchase Agreement (~~the ~~“Stock Purchase Agreement”) pursuant to which the~~ Company ~~sold~~issued ~~312~~326,~~500~~658 shares of ~~its~~ common stock, ~~par value $0.001 (“Common Stock”), at a price per share of $4.00~~ for ~~gross proceeds of $1,250,000. Gust Kepler, a director, our President and Chief Executive Officer, purchased $100,000 of~~ the ~~Common~~conversion ~~Stock under the terms~~ of ~~the Stock Purchase Agreement. Quadrofoglio Holdings LLC, a Florida limited liability company, purchased the remaining~~ $1,~~150~~783,~~000~~533 of ~~Common Stock. The Stock Purchase Agreement contains standard representations and warranties from~~ the ~~Company~~Senior ~~and~~Secured ~~the~~Debenture ~~purchasers.~~ (See Note 78).

On July 1, 2025 the Company entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Alexander Capital, L.P. (“Alexander Capital”). Pursuant to the ATM Agreement, the Company may from time to time issue and sell to or through Alexander Capital, acting as the Company’s sales agent, shares of the Company’s common stock, par value $0.001 per share (the “Shares”), having an aggregate offering price of up to $5,795,000. Sales of the Shares, if any, will be made by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). As sales agent, Alexander Capital will offer the Shares at prevailing market prices and will use its commercially reasonable efforts, consistent with its sales and trading practices, to sell on the Company’s behalf all of the Shares requested to be sold by the Company, subject to the terms and conditions of the ATM Agreement. As of December 31, 2025, the Company has raised gross proceeds of $1,493,022 from the ATM from the sale of 210,000 shares of its common stock and incurred $99,878 in expenses including fees of Alexander Capital and legal fees.

5. Warrants to Purchase Common Stock

~~The~~During the year ended December 31, 2025, the Company calculated the fair value of the warrants granted based on assumptions used in the Cox-Ross-Rubinstein binomial pricing model using the following ~~table~~inputs: ~~presents~~the price of the Company’s ~~warrants~~common asstock on the date of ~~December~~issuance; 31risk-free interest rate of 3.96%, ~~2024~~expected volatility of 150% based on the volatility of the Company’s common stock, exercise price of $5.46, and ~~2023:~~terms of 5 years.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Warrants as of December 31, 2022		109,584		$	13.25		4.53
Issued		-		$	-		-
Forfeited		-		$	-		-
Exercised		-		$	-		-
Warrants as of December 31, 2023		109,584		$	13.25		3.53
Issued		-		$	-		-
Forfeited		(21,074	)	$	7.80		-
Exercised		-		$	-		-
Warrants as of December 31, 2024		88,510		$	14.54		3.26

During the year ended December 31, 2025, the Company issued a warrant for the purchase of 33,700 shares related to financing costs. The warrant, valued at $233,010, vested at issuance.

~~During~~The ~~the~~following ~~years~~table ~~ended~~presents ~~December~~the ~~31,~~Company’s ~~2024~~warrants ~~and~~as ~~2023,~~of ~~stock-based~~December ~~compensation related to warrants totaled $85~~31,~~016~~ 2025 and ~~$127,520, respectively.~~2024:

At December 31, 2024, warrants for the purchase of 88,510 shares were vested and no warrants remained unvested.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Warrants as of December 31, 2023		109,584		$	13.25		3.53
Issued		-		$	-		-
Forfeited		(21,074	)	$	7.80		-
Exercised		-		$	-		-
Warrants as of December 31, 2024		88,510		$	14.54		3.26
Issued		33,700		$	5.46		5.00
Forfeited		(8,814	)	$	7.80		-
Exercised		(13,151	)	$	16.10		-
Warrants as of December 31, 2025		100,245		$	13.19		3.58

During the years ended December 31, 2025 and 2024, stock based compensation related to warrants totaled $233,000 and $85,016, respectively.

At December 31, 2025, warrants for the purchase of 100,245 shares were vested and no warrants remained unvested.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

6. Incentive Stock Plan

On August 4, 2021, our Board of Directors created and our stockholders approved the 2021 Blackboxstocks, Inc. Incentive Stock Plan (the “2021 Plan”) which became effective August 31, 2021. Effective October 7, 2022, the Company’s Stockholders approved an amendment and restatement of the 2021 Plan to increase the numbers of issuable shares from 187,500 to 312,500. On February 6, 2023 the Company’s stockholders approved the amendment and restatement the 2021 Plan to increase the number of shares available for issuance from 312,500 to 612,500 shares. The 2021 Plan allows the Company, under the direction of the Board of Directors or a committee thereof, to make grants of stock options, restricted and unrestricted stock and other stock-based awards to employees, including our executive officers, consultants and directors.

During the ~~period~~year ended December 31, ~~2023~~2025, the Company calculated the fair value of the options granted based on assumptions used in the Cox-Ross-Rubinstein binomial pricing model using the following inputs: the price of the Company’s common stock on the date of issuance; risk-free interest rate ~~ranging~~of ~~from 3.73% to~~ 4.4443%, expected volatility ~~ranging~~of ~~from 130~~153% ~~to 140%~~ based on the volatility of the Company’s common stock, ~~various~~ exercise ~~prices~~price of $3.46, and terms of 10 years. ~~No options or warrants were issued by the Company for the year ended December 31, 2024~~

During November 2023, 11,858 shares of restricted common stock valued at $30,000 were granted which vested over 12 months

During the year ended December 31, 2023, 342,374 shares of restricted common stock were granted. The restricted shares, valued at $856,384, were vested at issuance.

During the year ended December 31, 2024, 23,130 shares of restricted common stock were granted. The restricted shares, valued at $92,850, were vested at issuance.

During the year ended December 31, 2025, 164,287 shares of restricted common stock valued at $1,365,077 were granted. The ~~following~~restricted ~~table~~common ~~presents~~stock ~~the~~all ~~Company’s~~vested ~~options~~during as2025. Approximately 77,500 restricted shares issued were not covered by 2021 Plan including 50,000 shares of ~~December~~restricted 31common stock valued at $534,450 ~~2024~~issued ~~and~~to ~~2023:~~Robert Winspear, CFO.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Options as of December 31, 2022		167,561		$	11.68		8.78
Issued		78,750		$	3.59		10.00
Forfeited		(30,686	)	$	9.90		8.78
Exercised		-		$	-		-
Options as of December 31, 2023		215,625		$	8.97		8.37
Issued		-		$	-		-
Forfeited		(71,500	)	$	6.03		6.56
Exercised		-		$	-		-
Options as of December 31, 2024		144,125		$	9.09		7.35

The following table presents the Company’s options as of December 31, 2025 and 2024:

During the years ended December 31, 2024 and 2023, stock-based compensation related to options totaled $190,796 and $444,383, respectively.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Options as of December 31, 2023		215,625		$	8.97		8.37
Issued		-		$	-		-
Forfeited		(71,500	)	$	6.03		6.56
Exercised		-		$	-		-
Options as of December 31, 2024		144,125		$	9.09		7.35
Issued		15,000		$	3.46		10.00
Forfeited		-		$	-		-
Exercised		(26,500	)	$	3.65		8.50
Options as of December 31, 2025		132,625		$	9.54		6.45

AtDuring the years ended December 31, 2025 and 2024, ~~options~~stock tobased ~~purchase~~compensation ~~144,125~~related ~~shares~~to ~~were~~options ~~vested~~totaled $51,222 and no$190,796, ~~options remained unvested~~respectively.

At December 31, 2025, options to purchase 132,625 shares were vested and no options remained unvested.

7. Related Party Transactions

On March 16, 2023, the Company purchased 282,501 shares of Common Stock from Mr. Kepler at a price of $0.28 per share. The purchase of these shares was done in order to reduce Mr. Kepler’s cash bonus for 2022. The shares acquired from Mr. Kepler were subsequently retired and added back to authorized but unissued shares.

As noted in Note 4, on July 1, 2024 Mr. Kepler purchased 25,000 shares of common stock at a price of $4.00 per share in connection with the Stock Purchase Agreement.

During 2024, Mr. Kepler forfeited 10,000 shares of common stock. The shares were subsequently retired and added back to authorized but unissued shares.

During the years ended December 31, 2025 and 2024, Mr. Kepler advanced the Company approximately $360,000 and $101,000, ~~all~~respectively. ofAt ~~which~~December ~~remained~~31, ~~outstanding~~2025, atand ~~December~~2024, 31advances totaling approximately $-0- and $101,000, ~~2024~~respectively, remained due to Mr. Kepler.

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Blackboxstocks Inc.

Notes to Consolidated Financial Statements

8. Debt

Senior Secured Debenture

The Company entered into a Securities Purchase Agreement dated with Five Narrow Lane LP (“FNL”), on January 17, 2025 which was later amended on January 27, 2025 (the “Purchase Agreement”), pursuant to which the Company agreed to issue, and Five Narrow Lane LP agreed to purchase, debentures (defined therein as the “Additional Debentures”). The Purchase Agreement provides for financing of up to an aggregate principal amount of $2,300,000 of which $2,050,000 has been received. In addition, pursuant to the terms of the Additional Debenture, upon consummation of the Merger, the Company shall, at its option, either (i) pay FNL in cash the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the exit fee and any other amounts due thereunder, or (ii) issue to FNL such number of shares of Series C Convertible Preferred Stock, par value $0.001 per share, to be established by the Company upon closing of the Merger (the “Series C Stock”) for aggregate stated value equal to (x) 3.0 multiplied by (y) the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the exit fee and other amounts due thereunder. The Company has filed a registration statement (the “Resale Registration Statement”) with the SEC registering the resale of common stock underlying the Additional Debenture (the “Resale Securities”) which was declared effective by the SEC on May 5, 2025. Pursuant to the terms of the Merger Agreement, (i) any REalloys Warrants outstanding at the effective time of the Merger will be assumed by the Company and (ii) shares of Series X Stock issued by REalloys will be exchanged for shares of Series C Stock of the Company on a one-to-one basis. Shares underlying the REalloys Warrants and the Series C Stock will be registered pursuant to the Merger Registration Statement. Prior to the Merger, the Additional Debenture is convertible into common stock at a conversion price of $5.46 per share. As of December 31, 2025, FNL had converted $1,783,550 of the Additional Debenture into 326,658 shares of common stock.

The Company incurred issuance costs of approximately $255,000 related to the Additional Debentures, which are being amortized over the life of the Additional Debentures.

The Additional Debentures are secured by substantially all of the assets of the Company, including its wholly owned subsidiary, and contains customary negative and affirmative covenants. The Company was in compliance with these covenants at December 31, 2025. The Additional Debentures mature on the earlier of March 10, 2026, or the date on which the Merger with REalloys is completed. Subsequent to December 31, 2025, FNL issued the remaining tranche of $250,000 due upon the effectiveness of the registration statement on Form S-4. In addition, subsequent to December 31, 2025, FNL redeemed all of the remaining principal and accrued interest for the Additional Debentures.

Convertible Note Payable

In connection with the Senior Secured Debenture with FNL, the Company incurred issuance costs of $164,000 payable to Palladium Capital Group (“Palladium”), the placement agent. The Company and Palladium entered into a 7% convertible note payable to settle the issuance costs. The convertible note, has a present conversion price $5.46 per share of common stock, matures on the earlier of January 17, 2026, or the effective date of the Merger. This note was also redeemed subsequent to December 31, 2025.

Note Payable

On May 1, 2020, pursuant to the Paycheck Protection Program under the Coronavirus Aid Relief and Economic Security Act (“CARES Act”), the Company received a loan of $130,200. The loan carries an interest rate of 1% and an initial maturity of May 1, 2022. During August 2021, the Company received partial loan forgiveness from the SBA reducing the principal balance of the note to $96,795. During December 2021, the terms of the note were amended to carry an interest rate of 1% and mature on May 4, 2025. As of December 31, 2025 and 2024, the unpaid balance of the note totaled $-0- and $10,592, respectively.

Merchant Cash Advances

On May 28, 2024, the Company entered into a merchant cash advance agreement with proceeds totaling $198,500 and total future receivables purchased totaling $272,000. On September 27, 2024, the Company entered into a merchant cash advance agreement with proceeds totaling $99,250 and total future receivables purchased totaling $136,000. On October 31, 2024, the Company entered into a merchant cash advance agreement with proceeds totaling $268,000 and total future receivables purchased totaling $228,480. The merchant cash advances are to be repaid through 28 weekly payments of $9,714, $4,857, and $8,160, respectively. The finance expense for the advances ~~have~~has been calculated using the effective interest rate method. ~~As of December 31, 2024, the unpaid balance of the merchant cash advances totaled $187,921.~~

During February 2025, the September 27, 2024, merchant cash advance was amended to reduce the weekly payments. Under the amended agreement, the merchant cash advance is to be repaid through eight weekly payments of $1,214, two weekly payments of $4,585, and eight weekly payments of $3,643.

During February 2025, the October 31, 2024, merchant cash advance was amended to reduce the weekly payments. Under the amended agreement, the merchant cash advance is to be repaid through eight weekly payments of $2,040, seven weekly payments of $8,160, and eight weekly payments of $36,120.

The Company issued 15,000 shares with a value of $49,650 in consideration for amending the two merchant cash advances. The amendments of the cash advances were accounted for as a debt extinguishment and reissuance in accordance with ASC 470-50-40-10.

As of December 31, 2025 and 2024, the unpaid balance of the merchant cash advances totaled $-0- and $187,921, respectively.

Advance

On December 30, 2024, the Company received an advance totaling $50,000 from an unrelated third party. The advance iswas unsecured, bears no interest, and ~~has~~had no stated maturity date. The advance was repaid during the year ended December 31, 2025.

9. Commitments and Contingencies

Leases

The Company leases approximately 2,685 square feet of office space in Dallas Texas pursuant to an office lease with Teachers Insurance and Annuity Association of America that expires on September 30, 2028. During the year ended December 31, 2024, the Company’s rental expenses totaled approximately $125,000.

The table below shows the future lease payment obligations:

Year Ending December 31,	Amount
2025	$	91,122
2026		93,136
2027		95,150
2028		72,495
2029		-
Thereafter		-
Total remaining lease payments	$	351,903
Less: imputed interest		(57,729	)
Present Value of remaining lease payments	$	294,174
Current	$	65,389
Noncurrent	$	228,785
Weighted-average remaining lease term (years)		3.17
Weighted-average discount rate		10.00	%

F-16

Table of Contents

Blackboxstocks Inc.

Notes to Consolidated Financial Statements

~~Employee~~9. ~~Retention~~Commitments ~~Credit~~and Contingencies

The Company has applied for a tax credit under the CARES Act known as an Employee Retention Credit or “ERC” in the amount of $188,760. All tax forms are subject to audit and if audited, the Company may be denied a portion or all of the ERC applied for if the Internal Revenue Service denies some or all of the claims for the credit as the Company may not have met all of the criteria to be eligible for the credit. No income or receivable has been recorded as the Company does not yet believe that collection of the credit is probable. Leases

10The Company leases approximately 2,685 square feet of office space in Dallas Texas pursuant to an office lease with Teachers Insurance and Annuity Association of America that expires on September 30, 2028. ~~Income~~During ~~Taxes~~the year ended December 31, 2025, the Company’s rental expenses totaled approximately $140,000.

The ~~Company~~table ~~accounts~~below ~~for~~shows ~~income~~the ~~taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated~~ future ~~tax~~lease ~~consequences,~~payment using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts are calculated for income tax purposes. The provision (benefit) for income taxes for the years ended December 31, 2024, and 2023, assumes a statutory 21%, effective tax rate for federal income taxes.obligations:

	2024			2023
Year Ending December 31,	Amount
Federal tax statutory rate		21	%		21	%
2026	$	93,136
Temporary differences		0	%		0	%
2027		95,150
Permanent differences		-2	%		-7	%
2028		72,495
Valuation Allowance		-19	%		-14	%
Total remaining lease payments	$	260,781
		0	%		0	%
Less: imputed interest		(31,996	)
Present Value of remaining lease payments	$	228,785
Current	$	74,362
Noncurrent	$	154,423
Weighted-average remaining lease term (years)		2.17
Weighted-average discount rate		10.00	%

~~The~~Merger ~~Company had deferred income tax assets as of December 31, 2024, and 2023, as follows:~~Agreement

	2024			2023
Deferred Tax Assets
Net operating loss carryforwards	$	4,384,000		$	3,655,000
Temporary differences		9,000			9,000
Permanent differences		(733,000	)		(653,000	)
Valuation allowance		(3,660,000	)		(3,011,000	)
Net deferred tax assets	$	-		$	-

On March 10, 2025 the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RABLBX Merger Sub Inc., a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”) and REalloys Inc., a Nevada corporation (“REalloys”). Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease to exist and REalloys will become a wholly-owned subsidiary of the Company (the “Merger”). At the closing of the Merger (the “Closing”), the holders of capital stock and outstanding instruments convertible into or exercisable for capital stock of REalloys will receive shares of common and preferred stock of the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement (the “Exchange Ratio”) or as otherwise agreed to in the Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess of certain thresholds. Immediately following Closing, based upon the Exchange Ratio, pre-Closing stockholders of the Company are expected to collectively retain approximately 7.3% of the post-Close aggregate common stock of the Company, par value $0.001 (the “Company Common Stock”) and holders of REalloys capital stock and instruments convertible into or exercisable for capital stock of the REalloys will receive as merger consideration newly issued shares of Company Common Stock representing approximately 92.7% of the post-Close aggregate as common and preferred stock of the Company. Closing of the Merger is subject to various customary closing conditions including but not limited to the Securities and Exchange Commission (“SEC”) declaring the registration statement effective, approval of REalloys initial listing application by Nasdaq, and stockholder approval. The Merger will be accounted for as a reverse merger with REalloys being the accounting acquiror.

~~The~~On ~~Company~~July ~~provides~~1, ~~for~~2025, aBlackboxstocks, ~~valuation~~Merger ~~allowance~~Sub ~~when~~and itREalloys isentered ~~more~~into ~~likely~~a ~~than~~First ~~not~~Amendment ~~that~~to itAgreement ~~will~~and ~~not~~Plan ~~realize a portion~~ of ~~the~~Merger ~~deferred tax assets. The Company has established a valuation allowance against~~ (the ~~net~~“Amendment”) ~~deferred~~in ~~tax~~order ~~asset due~~ to ~~the~~reflect ~~uncertainty~~Blackboxstocks’ ~~that~~intent ~~enough~~to ~~taxable~~conduct ~~income~~an ~~will~~at-the-market beoffering ~~generated~~of inits ~~those~~common ~~taxing~~stock, ~~jurisdictions~~pursuant to ~~utilize~~which ~~the~~up ~~assets.~~to ~~Therefore~~250,000 ~~the~~shares ~~Company~~of ~~has~~Blackboxstocks ~~not~~common ~~reflected~~stock ~~any~~may ~~benefit~~be ofsold ~~such~~and ~~deferred~~issued ~~tax~~without ~~assets~~affecting in the ~~accompanying~~calculation ~~financial~~of ~~statements. The~~ Company’s ~~net~~Merger ~~deferred~~Shares ~~tax~~(as ~~asset~~defined ~~and~~in ~~valuation~~the ~~allowance~~Merger ~~increased~~Agreement) byto ~~$649,000~~be ~~and~~issued ~~$660,000~~ in the ~~fiscal~~Merger. ~~years ending December 31~~Specifically, ~~2024,~~the ~~and~~Amendment ~~2023,~~provides ~~respectively.~~that:

At December 31, 2024, the Company had approximately $17,429,000 in federal net operating loss carryforwards, substantially all of which are allowed to be carried forward indefinitely and are to be limited to 80% of the taxable income. Pursuant to Internal Revenue Code Section 382, the future utilization of the Company’s net operating loss carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that may have occurred previously or that could occur in the future.

	●	The definition of “Permitted Shelf Takedown” was added to Section 1.1 of the Merger Agreement and means “an at-the-market offering of Parent common stock under its shelf registration statement on Form S-3 (File No. 333-284626) which became effective on February 10, 2025, which constitutes a “Permitted Shelf Takedown” as contemplated under the terms of that certain Amendment to Securities Purchase Agreement, dated January 27, 2025, by and between Parent and Five Narrow Lane LP, and the transactions contemplated thereby.”
	●	The definition of “Parent Outstanding Shares” was changed in Section 1.1 of the Merger Agreement and means “ without duplication, (including, without limitation, the effects of the Split, if completed) the total number of shares of Parent Common Stock outstanding immediately prior to the Effective Time expressed on a fully-diluted basis, and assuming, without limitation or duplication, the issuance of shares of Parent Common Stock in respect of all In the Money Parent Options, warrants or other rights or commitments to receive shares of Parent Common Stock or Parent Preferred Stock (or securities convertible or exercisable into shares of Parent Common Stock or Parent Preferred Stock other than Parent Series A Stock), whether conditional or unconditional, that are outstanding as of immediately prior to the Effective Time; provided, however, (i) the total number of Parent Common Stock issuable upon conversion of the outstanding Parent Series A Stock shall not be included in the calculation of Parent Outstanding Shares, (ii) up to 250,000 shares of Parent Common Stock or such lesser number of shares actually sold and issued in the Parent’s Permitted Shelf Takedown shall not be included in the Calculation of Parent Outstanding Shares, and (iii) for purposes of calculating the Parent Outstanding Shares, the Parent Outstanding Shares shall be increased by one third (1/3) of the total Parent Financing Preferred Stock Conversion Shares rounded down to the nearest whole number.”

AsRegistration of December 31, 2024, the Company had no uncertain tax positions, or interest and penalties, that qualify for either recognition or disclosure in the financial statements. The company is subject to U.S. federal, state, and local income tax examinations by tax authorities. The tax return for the fiscal year ended December 31, 2024, has not yet been filed.Statement

On January 31, 2025, the Company filed a registration statement on Form S-3 for the sale of up to $50,000,000 of securities. Pursuant to General Instruction I.B.6 of Form S-3, in no event will we sell securities in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75,000,000.

Legal

From time to time in the normal course of business, the Company may be party to lawsuits or other claims. None such matters are expected to have a material impact on the Company’s financial position or results of operations.

F-17

Table of Contents

Blackboxstocks Inc.

Notes to Consolidated Financial Statements

10. Income Taxes

The Company accounts for income taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts are calculated for income tax purposes. The provision (benefit) for income taxes for the years ended December 31, 2025, and 2024, assumes a statutory 21%, effective tax rate for federal income taxes.

	2025			2024
Federal tax statutory rate		21	%		21	%
Temporary differences		0	%		0	%
Permanent differences		-8	%		-2	%
Valuation Allowance		-13	%		-19	%
		0	%		0	%

The Company had deferred income tax assets as of December 31, 2025, and 2024, as follows:

	2025			2024
Deferred Tax Assets
Net operating loss carryforwards	$	5,313,000		$	4,384,000
Temporary differences		9,000			9,000
Permanent differences		(1,064,000	)		(714,000	)
Valuation allowance		(4,258,000	)		(3,679,000	)
Net deferred tax assets	$	-		$	-

The Company provides for a valuation allowance when it is more likely than not that it will not realize a portion of the deferred tax assets. The Company has established a valuation allowance against the net deferred tax asset due to the uncertainty that enough taxable income will be generated in those taxing jurisdictions to utilize the assets. Therefore, the Company has not reflected any benefit of such deferred tax assets in the accompanying financial statements. The Company’s net deferred tax asset and valuation allowance increased by $579,000 and $648,000 in the fiscal years ending December 31, 2025, and 2024, respectively.

At December 31, 2025, the Company had approximately $20,278,000 in federal net operating loss carryforwards, substantially all of which are allowed to be carried forward indefinitely and are to be limited to 80% of the taxable income. Pursuant to Internal Revenue Code Section 382, the future utilization of the Company’s net operating loss carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that may have occurred previously or that could occur in the future.

As of December 31, 2025, the Company had no uncertain tax positions, or interest and penalties, that qualify for either recognition or disclosure in the financial statements. The company is subject to U.S. federal, state, and local income tax examinations by tax authorities. The tax return for the fiscal year ended December 31, 2025, has not yet been filed.

11. Subsequent Events

On January 1316, ~~2025~~2026, ~~pursuant to Section 8.1 of~~ the ~~Share~~SEC ~~Exchange~~declared ~~Agreement,~~ the Company’s ~~and~~registration ~~Evtec~~statement ~~Aluminum~~on ~~entered~~Form ~~into~~S-4 arelating ~~termination agreement (the “Termination Agreement”) pursuant~~ to ~~which~~ the ~~parties~~proposed ~~mutually~~Merger agreed to terminate the Share Exchange Agreement. As a result of the Termination Agreement, the Share Exchange Agreement will be of no further force an effect (other than certain customary limited provisions that survive termination pursuant to the terms of the Share Exchange Agreement) and any ancillary agreements entered into in connection with ~~the~~REalloys ~~Share Exchange Agreement will also automatically terminate in accordance with their respective terms~~Inc. effective. On January 2230, ~~2025~~2026 the Company’s ~~withdrew~~stockholders ~~its~~approved ~~Registration~~the ~~Statement~~following onitems ~~Form~~related ~~S-4~~to ~~previously filed in connection with~~ the ~~Share Exchange Agreement.~~Merger:

On● ~~March~~pursuant ~~10,~~to ~~2025~~Nasdaq ~~the~~Listing ~~Company~~Rule ~~entered into an Agreement and Plan of Merger~~ 5635(~~the “Merger Agreement”) with RABLBX Merger Sub Inc.,~~ a ~~Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”~~) ~~and REalloys Inc.~~, ~~a Nevada corporation (“REalloys”). Upon~~ the ~~terms~~issuance ~~and~~of ~~subject~~shares ~~to the satisfaction~~ of ~~the~~Blackboxstocks ~~conditions~~common ~~described~~stock ~~in the Merger Agreement, REalloys will merge with and into Merger Sub, Merger Sub will cease~~ to ~~exist and REalloys will become a wholly-owned subsidiary of the Company~~ (~~the “Merger”~~i). Ateach ~~the~~holder ~~closing~~ of ~~the Merger (the “Closing”), the holders of capital stock and~~ outstanding ~~instruments~~shares ~~convertible into or exercisable for capital stock~~ of REalloys ~~will receive shares of~~ common ~~and preferred~~ stock ofand ~~the Company, $0.001 par value, based on an exchange ratio formula in the Merger Agreement~~ (~~the “Exchange Ratio”~~ii) oreach asholder ~~otherwise agreed to in the Merger Agreement, which is subject to adjustment in the event the parties raise capital in excess~~ of ~~certain~~Series ~~thresholds.~~X ~~Immediately~~Preferred ~~following Closing~~Stock, ~~based~~ upon ~~the~~conversion ~~Exchange Ratio, pre-Closing stockholders~~ of ~~the~~Series ~~Company~~C ~~are~~Preferred ~~expected~~Stock, toincluding ~~collectively~~by ~~retain~~operation ~~approximately 7.3%~~ of ~~the~~certain ~~post~~anti-~~Close~~dilution ~~aggregate~~adjustments ~~common~~contained ~~stock of the Company~~therein, ~~par~~which ~~value~~will ~~$0.001~~represent ~~(the~~more ~~“Company~~than ~~Common~~20% ~~Stock”) and holders~~ of ~~REalloys capital stock and instruments convertible into or exercisable for capital stock of~~ the ~~REalloys will receive as merger consideration newly issued~~ shares of ~~Company~~Blackboxstocks ~~Common~~common ~~Stock~~stock ~~representing~~outstanding ~~approximately~~immediately ~~92.7%~~prior ofto the ~~post-Close~~Merger, ~~aggregate~~pursuant asto ~~common and preferred stock of~~ the ~~Company.~~terms ~~Closing~~ of the Merger isAgreement, ~~subject~~by toand ~~various~~among ~~customary~~Blackboxstocks, ~~closing~~Merger ~~conditions~~Sub ~~including~~and ~~but~~REalloys ~~not~~and ~~limited~~(b) pursuant to ~~the~~Nasdaq ~~Securities~~Listing ~~and~~Rules ~~Exchange Commission~~ 5635(~~“SEC”~~b), ~~declaring~~ the ~~registration~~change ~~statement~~of ~~effective,~~control ~~approval~~resulting offrom ~~REalloys~~the ~~initial~~transactions ~~listing~~contemplated ~~application~~ by ~~Nasdaq,~~the ~~and stockholder approval. The~~ Merger ~~will~~Agreement, beincluding ~~accounted for as a reverse merger with REalloys being~~ the ~~accounting acquiror.~~Merger;

In● ~~addition,~~ the ~~Company entered into a Securities Purchase Agreement dated with Five Narrow Lane LP (“FNL”), on January 17,~~ 2025 (which was later amended on January 27, 2025, pursuant to which the Company agreed to issue, and Five Narrow Lane LP agreed to purchase, a series of debentures (the “Purchase Agreement”). The Purchase Agreement provides for financing of up to an aggregate principal amount of $2,300,000 of which $1,050,000 has been received. An additional $750,000 will be funded upon filing of a registration statement on Form SLong-4Term ~~for~~Incentive the Merger, and an additional $500,000 will be funded when such registration statement on Form S-4 is declared effective by the SEC. In addition, pursuant to the terms of the Additional Debenture, upon consummation of the Merger, the Company shall, at its option, either (i) pay FNL in cash the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the exit fee and any other amounts due thereunder, or (ii) issue to FNL such number of shares of Series C Convertible Preferred Stock, par value $0.001 per share, to be established by the Company upon closing of the Merger (the “Series C Stock”) for aggregate stated value equal to (x) 3.0 multiplied by (y) the entire principal amount of the Additional Debenture then outstanding, together with all accrued and unpaid interest thereon, the exit fee and other amounts due thereunder. The Company has agreed to file a registration statement (the “Resale Registration Statement”) with the SEC registering the resale of common stock underlying the Additional Debenture (the “Resale Securities”). Pursuant to the terms of the Merger Agreement, (i) any REalloys Warrants outstanding at the effective time of the Merger will be assumed by the Company and (ii) shares of Series X Stock issued by REalloys will be exchanged for shares of Series C Stock of the Company on a one-to-one basis. Shares underlying the REalloys Warrants and the Series C Stock will be registered pursuant to the Merger Registration Statement.Plan;

On● ~~January~~an ~~31,~~amendment ~~2025,~~to the ~~Company~~Blackboxstocks ~~filed~~Articles ato ~~registration~~increase ~~statement on Form S-3 for~~ the ~~sale~~number of upshares toof ~~$50,000,000~~common ofstock ~~securities.~~that ~~Pursuant~~the toCompany ~~General~~is ~~Instruction~~authorized ~~I.B.6~~to ofissue ~~Form~~from ~~S-3~~100,000,000 into ~~no event will we sell securities in a primary offering with a value exceeding more than one-third of our public float in any 12-month period so long as our public float remains below $75~~350,000,000.,

On January 20, 2026, the Company received the final $250,000 from FNL pursuant to the Securities Purchase Agreement. In addition, the entire remaining principal of $516,450 (including the $250,000 issued in January of 2026) plus accrued interest of $80,420 was converted into 109,318 shares of common stock. The convertible note payable in the amount of $164,000 was increased to $184,000 in connection with the receipt of the final $250,000 under the Securities Purchase Agreement and was subsequently converted into 35,502 shares of common stock including $9,837 of accrued interest.

Between January 1, 2026 and February 19, 2026, the Company raised an additional $534,690 of gross proceeds under the ATM Agreement bringing the total amount raised to $2,146,556.

F-18

Filing Compare · REALLOYS INC.