OTC:WHLT
CHASE PACKAGING CORP
A specialized packaging entity with a unique accounting profile showing profitability from discontinued activities despite zero current revenue.
Key Metrics
Investment Thesis
Bull Case
The stock offers an attractive valuation based on its clean balance sheet with no long-term debt and a positive shareholders equity position. Investors may view the discontinued operations profit as a one-time catalyst that could allow for strategic restructuring or asset monetization. The high interest income relative to liabilities suggests strong cash management capabilities despite operational stagnation.
Bear Case
The absence of any revenue in the latest annual report is a severe red flag indicating a complete lack of current business operations. Negative operating cash flow combined with a large retained earnings deficit signals deep structural financial weaknesses. The profitability reported is entirely artificial, derived from discontinued assets rather than sustainable core business performance.
About CHASE PACKAGING CORP
CHASE Packaging Corp (WHLT) is a specialty packaging manufacturer serving diverse industrial and commercial markets with custom molded solutions. Despite reporting zero revenue in the latest annual cycle, the company maintains a net profit driven by discontinued operations and significant non-cash adjustments. The firm operates with minimal long-term debt but faces challenges related to its lack of current operating income.
Analysis
Management Discussion
The company reports a net profit of 88,949 which is heavily reliant on discontinued operations rather than continuing business activities, as operating profit remains negative at -104,887. Cash flow from operations turned negative while interest income provided a partial offset, highlighting a disconnect between earnings and cash generation. The substantial non-cash adjustments of -177,898 further obscure the underlying operational cash reality.
Industry Overview
The specialty packaging industry typically involves high barriers to entry regarding manufacturing capabilities and customer relationships for custom molds. Companies in this sector often face margin pressure from raw material costs but maintain stability through long-term contracts with industrial clients. Current market dynamics favor firms with diversified product lines and robust cash flow generation to weather supply chain volatility.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $0 | $0 | $0 |
| Operating Expenses | $60.1K | $72.3K | $104.9K |
| Operating Income | $-60.1K | $-72.3K | $-104.9K |
| G&A | $60.1K | $72.3K | $104.9K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $0 | $-330.8K | $15.9K |
| Interest Income | $4.2K | $14.7K | $15.9K |
| Pre-Tax Income | $-60.1K | $-403.0K | $-88.9K |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-60.1K | $-403.0K | $-88.9K |
| Discontinued Ops | $0 | $806.1K | $177.9K |
| Net Income | $-55.9K | $403.0K | $88.9K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-55.9K | $403.0K | $88.9K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash & Equivalents | $441.2K | $388.2K | $297.7K |
| Total Assets | $441.2K | $388.2K | $297.7K |
| Current Liabilities | $477 | $5.0K | $3.5K |
| Long-Term Liabilities | $0 | $0 | $0 |
| Total Liabilities | $477 | $5.0K | $3.5K |
| Shareholders' Equity | $440.8K | $383.2K | $294.2K |
| Paid-In Capital | $8.5M | $8.8M | $8.8M |
| Retained Earnings | $-8.0M | $-8.4M | $-8.5M |
| Treasury Stock | $49.8K | — | — |
| Total L&E | $441.2K | $388.2K | $297.7K |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-55.9K | $403.0K | $88.9K |
| Non-Cash Adjustments | $0 | $-460.6K | $-177.9K |
| Working Capital Changes | $0 | $4.5K | $-1.5K |
| Cash from Operations | $-55.9K | $-53.1K | $-90.5K |
| Cash from Investing | $0 | $0 | $0 |
| Cash from Financing | $0 | $0 | $0 |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-55.9K | $-53.1K | $-90.5K |
| Beginning Cash | $497.1K | $441.2K | $388.2K |
| Ending Cash | $441.2K | $388.2K | $297.7K |
Frequently Asked Questions
How does CHASE PACKAGING CORP make money?
Specialty Custom Packaging, Industrial Supply Solutions, and Discontinued Operations (which contributed 177,898 in profit).
What are the main risks for WHLT?
Zero revenue generation in the most recent period indicates potential business disruption or accounting classification issues, negative operating cash flow of -90k suggests working capital strain, significant retained earnings deficit of -8.5M, and reliance on non-cash adjustments for reported profitability.
What is WHLT's competitive advantage?
Strong liquidity position with cash reserves exceeding 297k, absence of long-term debt obligations, and a clean balance sheet with low current liabilities relative to equity.
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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.