Karbon-X Corp 10-Q for FY2025 Q1

Karbon-X Corp. (KARX)

10-Q 2024-10-21 For: 2024-08-31

Added on April 06, 2026

About this 10-Q

Karbon-X Corp filed this 10-Q on October 21, 2024, covering the quarter ended August 31, 2024 (FY2025 Q1).

Headline figures

Quarter ended August 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $127.43K; up 3290.9% from $3758 a year earlier
Net loss: $804.77K; compared with net income of $0 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Title of Each Class		Trading Symbol(s)		Name of each Exchange on which registered
N/A		N/A		N/A

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements.	F-1 to F-11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	6
Item 4.	Controls and Procedures.	6

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings.	7
Item 1A.	Risk Factors.	7
Item 2.	Unregistered Sales of Securities and Use of Proceeds.	7
Item 3.	Defaults Upon Senior Securities.	7
Item 4.	Mining Safety Disclosure.	7
Item 5.	Other Information.	7
Item 6.	Exhibits.	7

PART 1 FINANCIAL INFORMATION		Page(s)

Consolidated Balance Sheets at August 31, 2024 (Unaudited) and May 31, 2024		F-2

Consolidated Statements of Operations for the Three Months Ended August 31, 2024, and 2023 (Unaudited)		F-3

Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended August 31, 2024, and 2023 (Unaudited)		F-4

Consolidated Statements of Cash Flows for the Three Months Ended August 31, 2024 and 2023 (Unaudited)		F-5

Notes to the Consolidated Financial Statements		F-6

	August 31, 2024			May 31, 2024
ASSETS	(Unaudited)			(Audited)
Current assets
Cash and cash equivalents	$	2,298,845		$	2,675,400
Accounts receivable		56,893			113,074
Sales tax receivable		11,714			7,210
Prepaid expenses and other current assets		9,247			1,000
Total current assets		2,376,699			2,796,684

Property and equipment		6,446			6,918
Internally Developed Software		527,208			521,372
Inventory		362,892			316,738
Right of use asset		-			316,519
Security deposit		15,127			12,351
Total assets	$	3,288,372		$	3,970,582

LIABILITES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	123,996		$	127,219
Current portion of lease-liability		-			21,945
Short-term loan		-			36,500
Stock Payable		-			630,000
Payroll liabilities		15,004			24,103
Total Current Liabilities		139,000			839,769

Non-current portion of lease liability		-			302,557
Total Liabilities		139,000			1,142,325
Commitments and contingencies		-			-
Shareholders’ equity (deficit)
Common stock $0.001 par value, 200,000,000 shares authorized, 83,463,640 and 82,174,750 shares issued and outstanding as of August 31, 2024 and May 31, 2024, respectively.		83,415			82,176
Additional Paid-in capital		8,767,087			7,675,826
Accumulated deficit		(5,742,108	)		(4,937,342	)
Accumulated other comprehensive gain (loss)		40,978			7,597
Total shareholders’ equity (deficit)		3,149,372			2,828,257
Total liabilities and shareholders’ equity (deficit)	$	3,288,372		$	3,970,582

	Three Months Ended			Three Months Ended
	August 31, 2024			August 31, 2023
Operations
Total revenue	$	127,429		$	3,758
Cost of revenue		94,098			549
Gross profit		33,331			3,209

Marketing expenses		12,351			21,395
Salaries and wages		533,594			172,887
Professional fees		145,273			78,291
Other operating expenses		134,466			52,901
Total operating expenses		825,684			325,474

Loss from Operations		(792,353	)		(322,265	)

Other income (expenses)
Other income (expenses)		(12,413	)		(27,767	)
Net loss before income tax		(804,766	)		(350,032	)
Federal income tax expense		-			-
Net loss before income tax		(804,766	)		(350,032	)

Other comprehensive loss
Foreign currency translation gain (loss)		33,381			(3,223	)
Total comprehensive loss	$	(771,385	)	$	(353,225	)

Earnings Per Share
Weighted average shares outstanding (Basic and Diluted)		81,501,984			75,895,837
Basic and fully diluted loss per share	$	(0.01	)	$	(0.00	)

	Common Stock				Shares to		Additional Paid		Accumulated			Accumulated other Comprehensive
Description	Shares		Amount		be issued		in Capital		Deficit			gain (loss)		Total
Balance May 31, 2024		82,174,750	$	82,176	$	-	$	7,675,826	$	(4,937,342	)	$	7,597	$	2,828,257
Issuance of shares for cash		1,288,890		1,239		-		1,091,261		-			-		1,092,500
Translation loss		-		-		-		-		-			33,381		33,381
Net loss for the period		-		-		-		-		(804,766	)		-		(804,766	)
Balance August 31, 2024		83,463,640	$	83,415	$	-	$	8,767,087	$	(5,742,108	)	$	40,978	$	3,149,372

·	Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

·	Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

·	Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

Description	August 31, 2024		May 31, 2024
Prepaid Travel	$	8,997	$	-
Prepaid furniture		-		-
Prepaid Advertising Expenses		-		-
Other prepaids		250		1,000
Total	$	9,247	$	1,000

Description	Number			Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding May 31, 2024		330,400		$	0.63		0.63
Exercised		-			-		-
Granted		-			-		-
Expired		(320,000	)		.75		-
Cancelled		-			-		-
Outstanding August 31, 2024		10,400		$	.50		0.88

	Three Months Ended August 31, 2024			Three Months Ended August 31, 2023
Cash used in operating activities	$	(1,460,119	)		(180,276	)
Cash from financing activities	$	1,056,000			1,555,671
Cash used in investing activities	$	-			(602,407	)
Change in cash during the period	$	(376,555	)		767,536
Effect of exchange rate change	$	27,565			(5,452	)
Cash, beginning of period	$	2,675,400			206,820
Cash, end of period	$	2,298,845			974,356

31.1		Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer
31.2		Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer
32.1		Section 1350 Certification of Chief Executive Officer
32.2		Section 1350 Certification of Chief Financial Officer
101		Interactive data files pursuant to Rule 405 of Regulation S-T.

	Karbon-X Corp. (Registrant)

Date: October 21, 2024	By:	/s/ Chad Clovis
		Chad Clovis
		Chief Executive Officer and Director {Principal and Executive Officer}


Date: October 21, 2024	By:	/s/ Chris Mulgrew
		Chris Mulgrew
		Chief Financial Officer
		(Principal Financial Officer Principal Accounting Officer)

1.	I have reviewed this quarterly report of Karbon-X Corp.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

Description	August 31, 2024			May 31, 2024
Furniture and fixtures	$	6,663		$	6,589
Computer and equipment		3,737			3,695
Total property cost	$	10,399		$	10,284
Accumulated depreciation		(3,954	)		(3,366	)
Property and equipment, net	$	6,446		$	6,918

	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	1.	The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and

	2.	The information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operation of the Company.