How is it possible that it's a draw?

Hey Tirannosaurus:
The 'win on time' rule only applies if you still have enough material remaining to checkmate your opponent through any series of legal moves. If this is not possible, the game is declared drawn. Obviously, you cannot checkmate with just a lone king, and that is why this is so.
Consider yourself lucky your opponent did not have a couple extra seconds!
Nytik