Forge Atlanta Developer Discloses $19M Accounting Error Amid Loan Default

Webstar Technology Group, a penny stock company planning a $3.8B mixed-use district in Downtown Atlanta, filed a revised 2025 annual earnings report with the SEC on Oct. 15. The amended filing raises total liabilities to $19.8M from the $1.1M previously reported. The company said it had mischaracterized part of its obligations and cited a material weakness in its internal financial controls.

The restatement follows the April resignation of its prior auditor, Pipara & Co., which declined to sign off on the 2025 audit. A new accounting firm later identified the error. The filing also shows Webstar has not repaid the roughly $34M mortgage used to buy the 10-acre site, and has not paid extension fees tied to the loan's March maturity.

The project, Forge Atlanta, is planned as an 8.4M SF development at Ted Turner Drive and Whitehall Street SW. The first phase, estimated at $756M, would include a hotel, condominiums and retail, and Fulton County's development authority has agreed to a $10M tax break and $224M in bond financing if the project proceeds. The company has said its current cash flow will not cover operations or debt payments over the next year.

For developers and lenders, the filing signals that Forge Atlanta lacks committed capital and that the site's financing remains unresolved. Any partner should verify title, loan status and incentive eligibility before committing.