BLACKCRAFT CULT, INC.

In the three months ended September 30, 2016, operating expenses were $265,167, as compared to $205,271 in the three months ended September 30, 2015. The $59,896, or 29%, increase in operating expenses for the three months ended September 30, 2016 was primarily attributable to an increase in executive compensation paid to our officers and directors compared to the comparable period ended September 30, 2015.

In the nine months ended September 30, 2016, operating expenses were $682,488, as compared to $617,452 in the nine months ended September 30, 2015. The $65,036, or 11%, increase in operating expenses for the nine months ended September 30, 2016 was primarily attributable to an increase in executive compensation paid to our officers and directors.

In the nine months ended September 30, 2016, our net income totaled $188,418 after deducting provision for income taxes of $140,713.  In comparison, we realized net income of $118,627 during the nine month period ended September 30, 2015, after income tax expense of $97,290.

Cash utilized in investing activities was $0 and $138,448 during the periods ended September 30, 2016 and 2015, respectively.  Cash used was due primarily to purchase a company vehicle during 2015.

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.