Mon, Aug 19, 8:16 PM (148 days ago)
For the quarter ending June 30, 2024, Webstar Technology Group, Inc. reported no revenue, reflecting ongoing challenges in generating sufficient cash flow to support operations. The company incurred a significant net loss of $4,425,220, primarily due to a $4,021,910 loss on extinguishment of debt settled with common stock, which highlights the financial strain. Total operating expenses decreased to $158,369 from $217,690 year-over-year, mainly due to reduced salary costs following the resignation of the former CFO. As of June 30, 2024, the company had a working capital deficit of $1,006,488, an improvement from a deficit of $4,371,382 at year-end 2023. However, liquidity remains a concern, as management anticipates that current cash reserves will not suffice for the next twelve months. The company is actively seeking additional financing but faces uncertainties regarding its ability to secure necessary capital. Recent developments include significant transactions with related parties, including the issuance of shares to settle liabilities, which has further complicated the financial landscape. The company continues to rely on its controlling shareholder for funding, raising doubts about its long-term viability without substantial operational changes or new capital.