Webstar 10-K/A Restates FY2024, Discloses Material Weakness and Going-Concern Doubt
WBSR is trading near its 52-week low of $0.01 (0.0% above the low) on light trading volume (0.2× avg).
Summary
Webstar's amended 10-K restates FY2024 to a $19.2M loss, discloses a material weakness and going-concern doubt, and reveals its $33.7M Forge Atlanta note is in default with most modification payments unpaid.
Key Events · Corporate Governance and Compliance · WBSR
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FY2024 Financials Restated
Net loss restated from $4,499,968 to $19,154,226 after recognizing an $18,676,168 derivative liability for the Owens convertible note and reclassifying $4,021,910 of share-settled liabilities to additional paid-in capital.
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Material Weakness Disclosed
Management identified a material weakness in internal control over financial reporting as of December 31, 2024, citing insufficient accounting personnel and inadequate segregation of duties; remediation is targeted for 2027.
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Going Concern Doubt Reiterated
Accumulated deficit of $63,337,851, working capital deficit of $55,386,238, FY2025 net loss of $1,446,714, and cash of just $4,271 raise substantial doubt about the company's ability to continue as a going concern.
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Forge Atlanta Note in Default
The $33.7M purchase-money note matured April 1, 2026 and is in default; a May 27, 2026 modification extends maturity to October 1, 2026 with $1,011,000 accrued interest and $900,000 extension fee, but most payments remain unpaid as of the filing.
Analysis · WBSR · Technology
This amended annual report restates Webstar's FY2024 financials, turning a previously reported $4.5M net loss into a $19.2M loss after recognizing an $18.7M derivative liability tied to the Owens convertible note and reclassifying $4.0M of share-settled liabilities. Management also discloses a material weakness in internal controls and repeats substantial going-concern doubt: a $63.3M accumulated deficit, $55.4M working capital deficit, and only $4,271 of cash. The Forge Atlanta subsidiary's $33.7M purchase-money note matured April 1, 2026 and is in default; a May 2026 modification pushed maturity to October 1, 2026 but most interest and extension-fee payments remain unpaid, and the company says it cannot confirm it can raise the funding. With the stock at a 52-week low and the auditor changed mid-audit, the restatement and default are the dominant facts.
How filings like this one have moved
In the 30 days to Oct 15, 2026, 45.4% of the 295 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.48%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WBSR was trading at $0.01 on OTC in the Technology sector, with a market capitalization of approximately $4.1M. The 52-week trading range was $0.01 to $0.23. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.