Executive Summary / Key Takeaways

• Webstar Technology Group (OTCQB: WBSR) is an early-stage real estate development company focused on specialty projects, including green/energy-efficient multitenant buildings and large-scale entertainment/resort destinations, primarily in Georgia.
• The company's strategy centers on identifying, partnering on, and developing significant projects, highlighted by recent Letters of Intent and partnerships for multi-million and multi-billion dollar developments like the Bear Village Resort and The Forge Project in Atlanta.
• Financially, WBSR remains in a pre-revenue, development phase, characterized by negligible historical revenue and consistent net losses and negative operating cash flow, reflecting the capital-intensive nature and long timelines of large real estate projects.
• A recent Notification of Late Filing for its quarterly report signals potential operational or financial reporting challenges that warrant investor attention.
• The investment thesis hinges entirely on the successful execution and financing of its ambitious development pipeline, representing high potential upside but also significant execution and funding risks typical of early-stage real estate ventures.

Setting the Scene: Ambition in Atlanta's Real Estate Landscape

Webstar Technology Group Inc. (OTCQB: WBSR) positions itself as an early-stage player in the dynamic U.S. real estate development sector, with a stated focus on specialty projects. Incorporated in 2015, the company has spent its history in the foundational phases of identifying opportunities and building strategic relationships necessary for large-scale development. Its stated areas of interest include upgrading multitenant buildings for green/energy efficiency and developing entertainment and resort properties. Headquartered in Atlanta, Georgia, WBSR's recent activities suggest a concentration on significant projects within this key Southeastern market.

The competitive landscape for real estate development, particularly for large mixed-use and resort projects, is highly fragmented and project-specific. Competition is less about technological moats in the software sense and more about access to capital, ability to secure entitlements and permits, strength of partnerships, site selection, and execution capabilities. Success often depends on navigating complex local regulations, attracting financing, and effectively managing construction and marketing. The market analysis does not detail specific competitors WBSR faces on a project-by-project basis; the market includes a mix of large national developers, regional players, and specialized firms. WBSR's strategy appears to be centered on identifying specific, potentially transformative projects and leveraging partnerships, such as the recently announced collaboration with Nelson Worldwide Architects, to enhance its design and execution capabilities.

While the company name includes "Technology Group" and its focus areas mention "green/energy efficient status," the company does not appear to detail specific proprietary technologies or technological differentiators that provide a quantifiable competitive advantage in its real estate development activities. The focus on energy efficiency suggests an intent to incorporate modern building technologies, but there are no metrics or details on how this translates into a unique moat compared to other developers incorporating similar sustainable practices.

The Development Pipeline: Fueling Future Prospects

WBSR's strategic narrative is currently dominated by its ambitious development pipeline, signaling a potential shift from purely "early-stage" identification to active pursuit of large projects. The most prominent initiatives highlighted in recent news include:

• Bear Village Resort (Commerce, Georgia): A proposed $650 million mixed-use family resort destination. The partnership with Nelson Worldwide Architects is a key step, focusing on the design phase.
• Downtown Atlanta Development: A proposed $1.2 billion development in a premier location. This project is described as fully permitted and shovel-ready, suggesting it is further along in the development cycle than Bear Village. Nelson Worldwide Architects is also involved in the design for this project.
• The Forge Project (Downtown Atlanta): Through its 80% owned subsidiary, Forge Atlanta Asset Management, LLC, WBSR signed a Letter of Intent in May 2025 to acquire and redevelop this 3.0+ million square foot mixed-use development in the Castleberry Hill district. Like the $1.2 billion project, The Forge is described as fully entitled and shovel-ready, positioned as a potentially transformative urban development.

These projects, if successfully acquired, financed, and developed, represent a significant scaling up of WBSR's operations and could fundamentally change its financial profile from a pre-revenue entity to one generating substantial income from development, sales, and potentially recurring revenue from operational properties. The sheer scale of the proposed investments ($650 million, $1.2 billion, and the multi-million dollar Forge acquisition/redevelopment) underscores the high-stakes nature of the company's current strategy.

Financial Footprint: The Reality of Early-Stage Development

An examination of WBSR's historical financial statements reveals the profile of a company firmly in its developmental phase, not yet generating meaningful revenue from its core business activities.

Looking at the annual income statements from 2015 through 2024, revenue has been negligible or zero in most years, with small amounts reported only between 2018 and 2020 (peaking at $6,739 in 2020). Cost of revenue and operating expenses, particularly General and Administrative and Selling and Marketing expenses, have consistently outpaced any revenue, resulting in persistent operating losses and net losses year after year. The net loss in 2024 was -$4.50 million, following a loss of -$914,800 in 2023 and a significant loss of -$44.92 million in 2022 (though the 2022 loss appears heavily impacted by a large income tax expense figure of $13.90 million and other expenses of $16.99 million, alongside operating expenses of $17.07 million, which warrant closer scrutiny in a full report).

The balance sheet reflects the capital structure of a company reliant on external funding and managing liabilities. Total assets in 2024 stood at $20,369, a notable increase from $668 in 2023, driven primarily by a rise in other current assets ($20,349 in 2024 vs $498 in 2023). Total liabilities also increased significantly to $1.10 million in 2024 from $4.37 million in 2023 (note: the 2023 total liabilities figure in the table seems inconsistent with the sum of current and non-current liabilities; using the sum of current and non-current liabilities from the table, 2023 total liabilities would be approx. $4.37M + $0 = $4.37M, while 2024 is approx. $1.10M + $0 = $1.10M, suggesting a decrease in total liabilities in 2024, primarily in current liabilities). The company has consistently reported negative total stockholders' equity, indicating accumulated losses exceeding contributed capital.

Cash flow statements show consistent negative operating cash flow, as expected for a development company without revenue. Operating cash flow was -$111,934 in 2024 and -$131,929 in 2023. Financing activities have historically been the source of cash, though the nature and consistency of these activities vary year to year. Cash on hand remains minimal, standing at $20 at the end of 2024, down from $170 in 2023. This low cash balance underscores the critical need for external financing to fund its ambitious development plans.

Key financial ratios further illustrate the early-stage profile. Profitability ratios like Gross Profit Margin, Operating Profit Margin, and Net Profit Margin are zero or negative, reflecting the lack of revenue. Liquidity ratios like the Current Ratio (0.02 in 2024) and Quick Ratio (0.02 in 2024) are extremely low, indicating limited ability to cover short-term obligations with current assets. Debt ratios vary, but the negative equity makes traditional debt-to-equity comparisons challenging to interpret meaningfully. The Price-to-Sales ratio is 0.00 due to no revenue, and the Price-to-Earnings ratio is negative (-3.57 TTM), reflecting losses. These metrics are typical for a company at this stage and highlight that traditional valuation methods based on current earnings or revenue are not applicable. Valuation is tied entirely to the potential future value of its development pipeline.

Risks and Challenges: The Development Hurdle

Investing in an early-stage real estate development company like WBSR involves significant risks. The most prominent risks include:

• Execution Risk: Successfully developing large, complex projects like those proposed requires significant expertise, project management capabilities, and the ability to navigate unforeseen construction, regulatory, and market challenges. Failure to execute on even one major project could severely impact the company's viability.
• Financing Risk: The proposed projects require hundreds of millions to billions of dollars in capital. WBSR's minimal cash balance and historical losses indicate a heavy reliance on securing substantial external financing (debt, equity, or partnerships) for each project. The ability to raise this capital on favorable terms, or at all, is a major uncertainty.
• Market Risk: Real estate development is highly sensitive to economic conditions, interest rates, construction costs, and local market supply and demand dynamics. Changes in these factors could impact project feasibility, profitability, and timelines.
• Regulatory and Entitlement Risk: Although some projects are described as "fully entitled and shovel-ready," large developments often face complex permitting processes, zoning challenges, and potential community opposition that can cause delays and increase costs.
• Financial Reporting Challenges: The Notification of Late Filing for the March 31, 2025 quarterly report, citing unforeseen events related to the June 30, 2024 period, is a red flag. While the company stated intent to file within the extension period, a delay in financial reporting can signal internal control weaknesses or other operational issues that could impact investor confidence and transparency.

The dividend distribution of WBSR shares by Thunder Energies Corp. (TNRG) and TNRG's subsequent move to go private are corporate events that may affect WBSR's shareholder base and potentially its strategic relationships, though the precise implications are not detailed.

Outlook: Awaiting the Catalyst

Given the company's early stage and the nature of its business, there is no specific quantitative guidance available. The outlook for WBSR is entirely dependent on its ability to successfully advance its stated development pipeline.

The signing of the LOI for The Forge Project and the partnership with Nelson Worldwide Architects for both Bear Village and the $1.2 billion Atlanta development are positive signals of progress in moving from concept to potential execution. If WBSR can secure the necessary financing and successfully acquire and begin development on these projects, it would represent a significant catalyst for the stock.

However, until these large-scale projects move definitively into construction and begin to show a path to revenue generation, WBSR remains a highly speculative investment. The current market capitalization of approximately $16 million (as of the latest news) stands in stark contrast to the multi-hundred-million and multi-billion dollar scale of the proposed developments, highlighting the significant value creation potential if successful, but also the substantial gap between current status and future ambition.

The competitive environment for these specific large projects will involve vying for capital and potentially partnering with larger, more established developers or financial institutions. WBSR's ability to demonstrate its capacity to manage projects of this scale and secure funding will be critical differentiators.

Conclusion

Webstar Technology Group (WBSR) is a real estate development company at a pivotal, albeit early, stage. Its historical financial performance reflects years of pre-revenue activity and accumulated losses, typical for a company laying the groundwork for large projects. The investment narrative is not built on past performance or current profitability, but entirely on the potential future value unlocked by its ambitious development pipeline, particularly the proposed Bear Village Resort and the significant downtown Atlanta projects like The Forge.

The recent strategic announcements regarding these multi-million and multi-billion dollar developments, coupled with key partnerships, suggest a tangible effort to transition from planning to execution. However, the path forward is fraught with the inherent risks of large-scale real estate development, most notably the challenge of securing substantial financing in a competitive capital market and the complexities of project execution. The recent delay in financial reporting adds a layer of concern regarding operational stability and transparency. For investors, WBSR represents a high-risk, high-reward proposition. The potential upside is tied to the successful realization of its large-scale projects, which could fundamentally transform the company. The downside is the significant possibility of failure to finance or execute, which could render the current development pipeline unrealized potential. The core investment thesis is a bet on management's ability to navigate the formidable challenges of funding and executing these ambitious real estate ventures.