CHASE PACKAGING CORP Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Chase Packaging Corp performed this year. My goal is to turn complex financial filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

It is important to be clear: Chase Packaging Corp is a "shell company." Even though the name suggests they make boxes, they sold their packaging business in 1997. Today, they have no active business, property, or employees. Their only goal is to find a private company that wants to go public through a reverse merger. By staying registered with the SEC, they provide a "public shell" that lets a private company skip the expensive, time-consuming IPO process.

2. Financial performance

Because the company has no operations, it has no sales. It is simply a holding company waiting for a deal.

• Running costs: In 2025, the company spent about $86,600 to stay open, down from $105,000 in 2024. These costs cover legal and audit fees ($45,000), filing fees ($25,000), and insurance ($16,600).
• The bottom line: Without sales, the company lost $76,742 in 2025. This is an improvement over the $88,949 loss in 2024, thanks to lower legal and consulting fees.

3. Financial health

The company is very lean. As of December 31, 2025, they have $222,000 in cash. Management believes this covers their monthly costs of $7,200 for at least the next year while they search for a partner. They have no debt, which makes them an attractive, "clean" shell for a private company. They do not pay dividends and do not plan to, as they need every dollar to maintain their SEC status.

4. Key risks

This is the most important section for you:

• High Risk: This is a speculative bet. You are gambling that management will find a merger partner. If they don’t, the company has no way to create value, and your investment could become worthless once the cash runs out.
• Low Liquidity: The stock trades on the "OTC Pink Market," not a major exchange. Trading is very quiet, often with fewer than 5,000 shares changing hands daily. This makes it hard to buy or sell without causing big price swings.
• Price Volatility: The stock price fluctuates wildly based on rumors rather than business results.
• Regulatory Risk: The company must file reports on time. If they fail to file, they lose their "current" status, which destroys the value of the shell.

5. Future outlook

Management is still hunting for a merger partner. They recently added Arthur J. Gajarsa to the board to help vet potential candidates. While they are looking at technology and service companies, they have signed no formal deals yet. There is no guarantee a deal will ever happen.

---

Bottom Line: Chase Packaging is not a typical business. It is a "blank check" vehicle. Only invest if you understand that you are betting on the possibility of a future merger, not on an operating company. Before you decide, ask yourself: Am I comfortable with the risk of holding a company that currently generates no revenue and relies entirely on finding a partner to survive?