Chase Packaging Narrows Losses, Seeks Acquisition Amid Cash Burn

TL;DR

**WHLT is a cash-burning shell company; only bet on a Hail Mary acquisition.**

AI Summary

Chase Packaging Corporation (WHLT) reported a net loss of $17,569 for the three months ended September 30, 2025, a slight improvement from the $18,199 net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $61,962, down from $76,831 in the prior year, representing a 19.4% reduction. The company's total assets decreased to $240,748 as of September 30, 2025, from $297,710 at December 31, 2024, primarily due to a reduction in cash and cash equivalents. General and administrative expenses decreased to $19,969 for the three months ended September 30, 2025, from $22,163 in 2024, and to $69,750 for the nine months, down from $88,853. The company continues to operate without revenue, relying on its cash reserves and pursuing a strategy of securing a merger or acquisition, or raising additional capital. Cash and cash equivalents, consisting of money market funds and U.S. Treasury Bills, totaled $240,748 at September 30, 2025. The company extended the expiration date of 6,909,000 outstanding warrants to March 7, 2026, with an exercise price of $0.15 per share.

Why It Matters

For investors, WHLT's continued net losses and lack of revenue signal a high-risk, speculative investment. The company's strategy of seeking a merger or acquisition is its primary path to value creation, making its success critical for shareholders. Employees and customers are directly impacted by the company's 'going concern' risk, as its long-term viability hinges on a successful strategic pivot. In the broader packaging market, WHLT's struggles highlight the challenges faced by smaller, non-operating entities, contrasting sharply with established competitors. The competitive landscape demands operational revenue, which WHLT currently lacks.

Risk Assessment

Risk Level: high — The company reported a net loss of $61,962 for the nine months ended September 30, 2025, and has no revenue, indicating a complete lack of operational income. Its total assets decreased by 19.1% from $297,710 at December 31, 2024, to $240,748 at September 30, 2025, primarily due to cash burn. Management explicitly states that failure to secure a merger, acquisition, or additional capital will have a "material adverse effect on the Company's financial position, results of operations, and ability to continue as a going concern."

Analyst Insight

Investors should approach WHLT with extreme caution, recognizing it as a highly speculative play. Given the lack of revenue and ongoing losses, this stock is suitable only for investors with a high-risk tolerance who are betting on a successful merger or acquisition. Monitor any announcements regarding strategic partnerships or capital raises closely, as these are the only potential catalysts for value.

Financial Highlights

debt To Equity

0.04

revenue

$0

operating Margin

N/A

total Assets

$240,748

total Debt

$8,473

net Income

$-17,569

eps

$0.00

gross Margin

N/A

cash Position

$240,748

revenue Growth

N/A

Key Numbers

• $61,962 — Net Loss (9 months) (Decreased from $76,831 in 2024, a 19.4% improvement.)
• $240,748 — Total Assets (Decreased from $297,710 at December 31, 2024, indicating cash burn.)
• $19,969 — General & Administrative Expense (3 months) (Decreased from $22,163 in 2024, showing cost control.)
• 61,882,172 — Common Shares Outstanding (Consistent, no dilution from new issuances.)
• 6,909,000 — Outstanding Warrants (Extended to March 7, 2026, with a $0.15 exercise price.)

Key Players & Entities

• CHASE PACKAGING CORP (company) — registrant
• $17,569 (dollar_amount) — net loss for three months ended September 30, 2025
• $18,199 (dollar_amount) — net loss for three months ended September 30, 2024
• $61,962 (dollar_amount) — net loss for nine months ended September 30, 2025
• $76,831 (dollar_amount) — net loss for nine months ended September 30, 2024
• $240,748 (dollar_amount) — total assets at September 30, 2025
• $297,710 (dollar_amount) — total assets at December 31, 2024
• 61,882,172 (dollar_amount) — common shares outstanding at October 28, 2025
• March 7, 2026 (date) — warrant expiration date
• $0.15 (dollar_amount) — warrant exercise price

FAQ

Risk Factors

• Dependence on Cash Reserves and Future Capital [high — financial]: The company currently operates without revenue and relies entirely on its existing cash reserves. Its ability to continue operations is contingent upon securing a merger or acquisition, or raising additional capital. The total assets, primarily cash and cash equivalents, decreased from $297,710 at December 31, 2024, to $240,748 at September 30, 2025, indicating a cash burn.
• Warrant Dilution Risk [medium — financial]: There are 6,909,000 outstanding warrants with an exercise price of $0.15 per share, extended to March 7, 2026. If these warrants are exercised, it could lead to significant dilution for existing common shareholders, especially given the company's current lack of revenue and net losses.
• Lack of Revenue Generation [high — operational]: Chase Packaging Corporation has not generated any revenue in the periods presented. This lack of a core business operation poses a significant risk to its long-term viability and ability to fund future operations or strategic initiatives.

Industry Context

The packaging industry is highly competitive, with companies differentiating on material innovation, sustainability, and cost-effectiveness. Chase Packaging Corporation, currently operating without revenue, is not participating in this competitive landscape and is instead focused on a strategic pivot through M&A or capital raising.

Regulatory Implications

As a company with no revenue and operating on cash reserves, Chase Packaging Corporation faces scrutiny regarding its financial stability and disclosure requirements. Any future capital raises or M&A activities will be subject to SEC regulations and potential shareholder approvals.

What Investors Should Do

1. Monitor M&A or Capital Raise Progress
2. Evaluate Warrant Exercise Impact
3. Assess Cash Burn Rate

Key Dates

• 2026-03-07: Warrant Expiration Extension — The expiration date for 6,909,000 warrants was extended to March 7, 2026, providing more time for potential exercise or strategic decisions regarding these instruments.

Glossary

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (Indicates the company has historically incurred more expenses than revenues, standing at $(8,557,952) as of September 30, 2025.)

Treasury stock

Stock that a company has repurchased from the open market. It is no longer outstanding and does not carry voting rights or pay dividends. (The company holds 497,587 shares of treasury stock, which reduces total stockholders' equity by $(49,759).)

Basic and diluted loss per common share

The net loss attributable to each outstanding share of common stock, considering both basic and potentially dilutive securities. (For the three and nine months ended September 30, 2025, the loss per share was $0.00, indicating a minimal loss spread across a large number of shares.)

Warrants

Securities that give the holder the right, but not the obligation, to purchase a company's stock at a specified price (exercise price) before a certain expiration date. (The company has 6,909,000 outstanding warrants with an exercise price of $0.15, extended to March 7, 2026, which could impact future share count and equity.)

Year-Over-Year Comparison

Compared to the prior year, Chase Packaging Corporation has reduced its net loss for both the three-month period (from $18,199 to $17,569) and the nine-month period (from $76,831 to $61,962), representing a 19.4% improvement in the latter. General and administrative expenses have also seen a reduction in both periods. However, total assets have significantly decreased from $297,710 to $240,748, primarily due to a decline in cash and cash equivalents, highlighting the ongoing cash burn despite cost controls.

Key Financial Figures

• $2,194 — 2,163 Operating expenses decreased by $2,194 for the three months ended September 30
• $19,969 — pany incurred a loss from operations of $19,969 and $22,163 for the three months ended
• $22,163 — d a loss from operations of $19,969 and $22,163 for the three months ended September 30
• $1,564 — 0 $ 3,964 Other income decreased by $1,564 for the nine months ended September 30,
• $17,569 — et Loss The Company had a net loss of $17,569 for the three months ended September 30
• $18,199 — r 30, 2025, compared with a net loss of $18,199 for the three months ended September 30

Filing Documents

• cpka_10q.htm (10-Q) — 459KB
• cpka_ex311.htm (EX-31.1) — 11KB
• cpka_ex321.htm (EX-32.1) — 5KB
• 0001477932-25-008085.txt ( ) — 2080KB
• cpka-20250930.xsd (EX-101.SCH) — 22KB
• cpka-20250930_lab.xml (EX-101.LAB) — 128KB
• cpka-20250930_cal.xml (EX-101.CAL) — 20KB
• cpka-20250930_pre.xml (EX-101.PRE) — 104KB
• cpka-20250930_def.xml (EX-101.DEF) — 52KB
• cpka_10q_htm.xml (XML) — 238KB

- Financial Information

PART I - Financial Information: ITEM 1.

Financial Statements

Financial Statements: 3 Condensed Balance Sheets (Unaudited) - September 30, 2025 and December 31, 2024 3 Condensed Statements of Operations (Unaudited) - Three and Nine months ended September 30, 2025 and 2024 4 Condensed Statements of Changes in Stockholders' Equity (Unaudited) - Three and Nine months ended September 30, 2025 and 2024 5 Condensed Statements of Cash Flows (Unaudited) - Nine months ended September 30, 2025 and 2024 6 Notes to Interim Condensed Financial Statements (Unaudited) 7 ITEM 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 14 ITEM 4.

Controls and Procedures

Controls and Procedures 14

- Other Information

PART II - Other Information: ITEM 1. Legal Proceedings. 15 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds. 15 ITEM 3. Defaults upon Senior Securities. 15 ITEM 4. Mine Safety Disclosures. 15 ITEM 5. Other Information. 15 ITEM 6. Exhibits. 15

SIGNATURES

SIGNATURES 16 EXHIBITS 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CHASE PACKAGING CORPORATION CONDENSED BALANCE SHEETS (Unaudited) September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents 240,748 297,710 TOTAL ASSETS $ 240,748 $ 297,710 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 8,473 $ 3,473 TOTAL CURRENT LIABILITIES 8,473 3,473 COMMITMENTS AND CONTINGENCIES (Note 8) STOCKHOLDERS' EQUITY: Preferred stock, $ 1.00 par value; 4,000,000 authorized: Series A 10% Convertible preferred stock; 50,000 shares designated; no shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock, $ 0.00001 par value; 200,000,000 shares authorized; 62,379,759 shares issued and 61,882,172 shares outstanding at September 30, 2025 and December 31, 2024 619 619 Treasury stock, $ 0.00001 par value 497,587 shares at September 30, 2025 and December 31, 2024 ( 49,759 ) ( 49,759 ) Additional paid-in capital 8,839,367 8,839,367 Accumulated deficit ( 8,557,952 ) ( 8,495,990 ) TOTAL STOCKHOLDERS' EQUITY 232,275 294,237 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 240,748 $ 297,710 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents CHASE PACKAGING CORPORATION CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 EXPENSES: General and administrative expense $ 19,969 $ 22,163 $ 69,750 $ 88,853 LOSS FROM OPERATIONS ( 19,969 ) ( 22,163 ) ( 69,750 ) ( 88,853 ) OTHER INCOME (EXPENSE) Interest and other income 2,400 3,964 7,788 12,022 TOTAL OTHER INCOME (EXPENSE) 2,400 3,964 7,788 12,022 LOSS BEFORE INCOME TAXES ( 17,569 ) ( 18,199 ) ( 61,962 ) ( 76,831 ) Provision for income taxes — — — — NET LOSS $ (

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

Forward-Looking Statements The information in this report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This Act provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about themselves provided they identify these statements as forward looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements other than statements of historical fact made in this report are forward-looking. In particular, the statements herein regarding future results of operations or financial position are forward-looking statements. Forward-looking statements reflect management's current expectations and are inherently uncertain. The Company's actual results may differ significantly from management's expectations as a result of many factors. You should read the following discussion and analysis in conjunction with the financial statements of the Company, and notes thereto, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of management. The Company assumes no obligations to update any of these forward-looking statements. Results of Operations For the three months ended September 30, 2025 and 2024 Revenue The Company had no operations and no revenue for the three months ended September 30, 2025 and 2024, and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents. Operating Expenses The following table presents our total operating expenses for the three months ended September 30, 2025 and 2024. Three Months Ended

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