Webstar Technology Group, Inc. reported a significant net loss of $4.5 million for the fiscal year ending December 31, 2024, compared to a loss of $914,800 in the previous year. The company has not generated any revenue during this period, primarily due to challenges in attracting customers for its technology solutions. Total operating expenses decreased to $398,058 from $838,656 in 2023, largely due to reduced salary expenses following the resignation of key executives. The company's working capital deficit improved to $81,236 from $3.37 million, attributed to the settlement of liabilities with shares of common stock and the assumption of certain liabilities by related parties.
In June 2024, Webstar underwent a significant management change when a new team acquired 100% of the Series A Preferred Stock from the former CEO, James Owens. This transition included the appointment of Ricardo Haynes as CEO and Eric Collins as President. The company has shifted its focus from software solutions to specialty real estate development, particularly in multi-tenant buildings and entertainment resorts. This strategic pivot is expected to align with the company's long-term growth objectives, although it remains in the early stages of development.
Operationally, Webstar has made strides in restructuring its business model, including the acquisition of intellectual property related to Bear Village, Inc. for 201 million shares of common stock. The company also entered into agreements to acquire licenses for its software products, which are expected to enhance its market offerings. However, as of the end of 2024, Webstar had only one full-time employee and two contractors, indicating a lean operational structure as it seeks to expand.
The company faces substantial risks, including its reliance on related party financing and the uncertainty of future capital raises. Management has indicated that without additional funding, the company may struggle to continue operations. The financial statements express substantial doubt about the company's ability to continue as a going concern, emphasizing the need for effective capital management and strategic execution in the coming months.
Looking ahead, Webstar Technology Group plans to pursue a Regulation A offering to raise up to $10 million, which could provide the necessary capital to support its operations and development projects. The company is actively seeking to establish its presence in the real estate market while navigating the complexities of its transition from a technology-focused entity to a real estate development firm.
About Webstar Technology Group Inc.
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