OTC:SNPW
Sun Pacific Holding Corp.
A small-cap OTC holding company currently reporting a net loss but showing positive investing cash flows.
Key Metrics
Investment Thesis
Bull Case
Investors might consider SNPW if they believe the company is in a turnaround phase where the recent investing cash flow indicates asset liquidation or strategic repositioning. The absence of long-term debt provides a clean balance sheet foundation for potential future growth initiatives once operations stabilize. Low current liabilities relative to current assets suggest short-term solvency despite the accumulated deficit.
Bear Case
The stock is highly risky due to a massive net loss and an operating profit of -$287,629, signaling unsustainable business model dynamics. Revenue has been stagnant or non-existent recently with 2022 revenue at $0.3M compared to current losses, showing no clear growth trajectory. The significant retained earnings deficit of $8.0M indicates a history of poor profitability that requires substantial capital injection to resolve.
About Sun Pacific Holding Corp.
Sun Pacific Holding Corp. (SNPW) operates as a specialized holding entity with limited current operational scale, serving niche markets through minimal asset deployment. The company's recent financial profile indicates a transition phase characterized by significant non-cash adjustments and substantial accumulated losses.
Analysis
Management Discussion
Recent financial performance highlights a critical disconnect between operating cash flow, which turned negative at -$17,925, and investing cash flows that provided a $96,000 boost. Despite a gross profit of $248,930, high general and administrative costs of $288,292 have erided margins, resulting in an operating loss of -$287,629. The company's cash position remains stable at $147,049 due to non-cash adjustments totaling $202,026 offsetting operational burn.
Industry Overview
The company operates in a fragmented small-cap holding sector where many entities struggle with negative operating profits and high administrative overheads. Industry peers often face similar challenges regarding interest expenses and the need to convert non-operating assets into sustainable revenue streams. Success in this niche typically requires restructuring high G&A costs and finding scalable product-market fits.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 |
|---|---|
| Revenue | $265.6K |
| Cost of Revenue | $16.6K |
| Gross Profit | $248.9K |
| Operating Expenses | $536.6K |
| Operating Income | $-287.6K |
| G&A | $288.3K |
| Depreciation | $14.5K |
| Other OpEx | $248.3K |
| Non-Operating Income | $9.0K |
| Interest Expense | $61.8K |
| Pre-Tax Income | $-278.6K |
| Income Tax | $0 |
| Continuing Ops | $-278.6K |
| Discontinued Ops | $0 |
| Net Income | $-278.6K |
| Minority Interest | $0 |
| Net to Common | $-278.6K |
| Metric | 2022 |
|---|---|
| Current Assets | $153.4K |
| Cash & Equivalents | $147.0K |
| Accounts Receivable | $6.3K |
| Other Current Assets | $0 |
| Long-Term Assets | $24.0K |
| Total Assets | $177.4K |
| Current Liabilities | $3.3M |
| Accounts Payable | $65.5K |
| Other Current Liab | $3.0M |
| Long-Term Liabilities | $0 |
| Total Liabilities | $3.3M |
| Shareholders' Equity | $-3.1M |
| Paid-In Capital | $4.8M |
| Retained Earnings | $-8.0M |
| Total L&E | $177.4K |
| Metric | 2022 |
|---|---|
| Net Income (CFO) | $-278.6K |
| Non-Cash Adjustments | $202.0K |
| Working Capital Changes | $58.7K |
| Cash from Operations | $-17.9K |
| Cash from Investing | $96.0K |
| Cash from Financing | $0 |
| FX Effect | $0 |
| Net Change in Cash | $78.1K |
| Beginning Cash | $69.0K |
| Ending Cash | $147.0K |
Frequently Asked Questions
How does Sun Pacific Holding Corp. make money?
The primary revenue stream consists of general operational activities generating $265,573 in total revenue. A secondary segment involves financial restructuring or asset sales evidenced by a $96,000 cash inflow from investing activities. The company also manages significant accrued expenses and dividends payable related to shareholder distributions.
What are the main risks for SNPW?
The company reports a significant net loss of $278,610 and an accumulated retained earnings deficit of $8.0 million. Operating expenses of $536,559 significantly outpace revenue of $265,573, indicating severe profitability challenges. High interest expense of $61,815 suggests potential refinancing risks or reliance on short-term financing. Revenue growth is negligible with zero recorded revenue in 2022 and minimal current operations.
What is SNPW's competitive advantage?
The company maintains a debt-free long-term liability structure with no long-term debt obligations. Asset turnover is supported by liquid current assets exceeding total liabilities, providing immediate liquidity flexibility. Management has executed zero financing cash outflows recently, preserving capital for future strategic pivots.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.