Webstar Technology Group Reports $61K Net Loss in Q1 2025, Shifts Focus to Real Estate Development

Webstar Technology Group, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $61,378, a significant reduction from the $224,941 loss recorded in the same period of 2024. The company did not generate any revenue during the quarter, consistent with its performance in the previous year. Operating expenses decreased by 79.8% to $41,378, down from $204,941, primarily due to a reduction in compensation costs and consulting fees. The decrease in operating expenses reflects the company's efforts to streamline operations and reduce costs as it transitions into a new business model focused on real estate development.

As of March 31, 2025, Webstar's total assets were reported at $15,358, a decline from $20,369 at the end of 2024. The company's liabilities increased slightly to $1,149,972, driven by a convertible note payable of $1,000,000 and accrued interest of $75,358. The accumulated deficit grew to $47,698,762, indicating ongoing financial challenges. The company’s working capital deficit also widened to $1,134,614, raising concerns about its ability to continue operations without additional funding.

Strategically, Webstar has undergone significant organizational changes, including a shift in management following the acquisition of Series A Preferred Stock by a group of investors in June 2024. This new management team has pivoted the company’s focus from software solutions to real estate development, specifically targeting multi-tenant buildings and resort properties. The company has also entered into various agreements to acquire assets and intellectual property, including a recent agreement to form a joint venture for a mixed-use development project in Atlanta.

Despite these strategic developments, the company faces substantial liquidity challenges. Management has indicated that the existing cash reserves are insufficient to fund operations for the next twelve months, necessitating additional capital through public offerings or asset sales. The company has initiated a Regulation A offering to raise up to $10 million, although it has not yet been declared effective by the SEC. The outlook remains uncertain, as the company must navigate its financial difficulties while executing its new business strategy.

In summary, Webstar Technology Group, Inc. is in a transitional phase, with a new focus on real estate development and significant changes in management. While the reduction in losses and operating expenses is a positive sign, the company must secure additional funding to sustain its operations and execute its strategic plans effectively.