Webstar Technology Group restates its financial statements to record an $18.7 million derivative liability and reports a going-concern warning with a $55.4 million working capital deficit.
SEC EDGAR, 2026-10-15: 10-K — "substantial doubt", "material weakness"
Webstar Technology Group restates its financial statements to record an $18.7 million derivative liability and reports a going-concern warning with a $55.4 million working capital deficit.
Company: Webstar Technology Group, Inc. (WBSR) Filed: October 15, 2026, 10-K/A (Item: none) Phrase: "substantial doubt" — "Our independent registered public accounting firm’s report contains an explanatory paragraph that expresses substantial doubt about our ability to continue as a “going concern.”" What the filing says: The company filed an amended annual report to restate its financial statements for the fiscal years ended December 31, 2025 and 2024. The restatement corrects the classification of equity-linked financial instruments to derivative liabilities, recording an $18,676,168 liability in 2024, because the company had insufficient authorized shares to settle a convertible note held by its former CEO. The company's auditors issued a going-concern warning, pointing to zero revenue since inception, an accumulated deficit of $63,337,851, and a working capital deficit of $55,386,238 against just $4,271 in cash as of December 31, 2025. Additionally, the company's subsidiary is in default on a $33,700,000 purchase money promissory note for its Forge Atlanta land acquisition; as of the filing date, the company has failed to make required modification payments, though the seller has extended an undetermined grace period. Two ways it goes: A. The company secures additional financing to fund operations, cure its land acquisition debt defaults, and remediate its material weaknesses. B. The company is unable to raise capital or satisfy its creditors, resulting in foreclosure on its properties or the cessation of its operations. Next date: none named Watch: A formal default notice or foreclosure action by McCall Railroad, LLC, or the closing of a new financing transaction.