$KARX

Karbon-X Corp.

CIK:0001729637|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	12 Months Ended
	May 31, 2026	May 31, 2025
Operations
Total revenue	$ 55,860,322	$ 3,163,772
Cost of revenue	55,000,480	2,362,305
Gross profit	859,842	801,467
Marketing expenses	3,037,475	2,044,903
Salaries and wages	5,558,515	3,774,034
Professional fees	1,471,523	859,088
Provision for credit losses	628,196	0
Other operating expenses	1,229,690	771,123
Total operating expenses	11,925,399	7,449,148
Loss from operations	(11,065,557)	(6,647,681)
Interest income (expense)	(3,321,168)	(339,204)
Gain (loss) on investment	0	0
Gain (loss) on change in fair value of derivative liabilities	845,280	(72,927)
Other income (expenses)	(48,101)	6,320
Net loss before income taxes	(13,589,546)	(7,053,492)
Federal income tax expense	0	0
Net loss	(13,589,546)	(7,053,492)
Other comprehensive income (loss)
Foreign currency translation gain (loss)	241,080	(30,971)
Total comprehensive loss	$ (13,348,466)	$ (7,084,463)
Earnings Per Share
Weighted average basic and diluted shares outstanding	86,718,447	83,559,068
Basic and fully diluted loss per share	$ (0.16)	$ (0.08)

Consolidated Statements of Cash Flow - USD ($)	12 Months Ended
Consolidated Statements of Cash Flow - USD ($)	May 31, 2026	May 31, 2025
Cash flows from operating activities
Net loss	$ (13,589,546)	$ (7,053,492)
Adjustments to reconcile net loss to net cash:
Depreciation and amortization	197,804	3,225
Amortization of right of use asset	83,548	29,215
Amortization of debt discount	1,003,557	0
Debt discount written off on conversion and on settlement of maintenance fees	145,088	0
(Gain) loss on change in fair value of derivative liabilities	(856,389)	168,358
Accrued interest income on loan receivable	(62,164)	0
Provision for credit losses	628,196	0
Equity-based compensation expense	1,263,620	627,495
Other non-cash equity issuances, net	(4,784)	0
Costs incurred on contract fulfillment assets (Note 6)	(554,579)	0
Operating lease payments	(50,219)	196,239
Unrealized loss on equity securities and the related securities receivable, net	11,859	(4,090,911)
Changes in operating assets and liabilities:
Accounts receivable	(632,509)	118,502
Inventories	(550,329)	217,094
Prepaid expenses	(312,096)	(888,489)
Other current assets	(7,888)	(166,641)
Accounts payable	1,163,876	334,486
Deferred revenue	2,855,537	3,864,080
Accrued interest payable	1,312,939	0
Other current liabilities	156,750	141,896
Intercompany balances and other assets, net	(63,511)	0
Cash used in operating activities	(7,861,240)	(6,498,943)
Cash flows from investing activities
Acquisition of property and equipment	(4,341)	(2,543)
Capitalized app development costs	(82,146)	0
Loan receivable issued	(1,703,451)	0
Acquisition of project pipeline (Note 5)	(666,990)	0
Deposits	23,815	0
Cash used in investing activities	(2,433,113)	(2,543)
Cash flows from financing activities
Proceeds from convertible notes payable	5,370,145	2,851,863
Payments on convertible notes payable	(851,969)	0
Debt discount on convertible notes		(141,529)
Proceeds from long-term debt	4,788,155	0
Proceeds from receivables financing obligations, net	591,080	0
Proceeds from short-term advance (included in other current liabilities)	363,777	0
Proceeds from sale of common stock	242,000	1,709,437
Cash provided by financing activities	10,503,188	4,561,300
Effect of translation changes on cash	242,108	(30,868)
Change in cash and cash equivalents	450,943	(1,971,054)
Cash, beginning of period	704,346	2,675,400
Cash, end of period	1,155,289	704,346
Non-cash investing and financing activities
Conversion of notes payable and accrued interest to common stock	6,993,975	549,911
Debt discount recognized at issuance	1,443,150	141,529
Convertible note issued as consideration payable to a customer (Note 7)	1,682,000	0
Shares and warrants issued as compensation and in connection with note financings	238,625	0
Reclassification of a convertible note to long-term	250,000	0
Interest prepaid at closing, withheld from the advance	77,083	0
Maintenance fees earned and settled against convertible notes payable and accrued interest	61,431	0
Derecognition of the securities receivable and deferred revenue on termination of the DevvStream forward purchase agreement	2,927,526	0
Supplemental disclosures
Cash paid for interest	504,347	0
Cash paid for income taxes	$ 0	$ 0

Consolidated Balance Sheets - USD ($)	May 31, 2026	May 31, 2025
Current assets
Cash and cash equivalents	$ 1,155,289	$ 704,346
Accounts receivable, net	634,291	1,782
Inventories, net	649,973	99,644
Loan receivable, net of allowance of $628,196	1,137,420	0
Prepaid expenses	1,177,770	865,674
Deposits	0	23,815
Investments in equity securities	22,663	301,260
Securities receivables	1,128,863	3,789,651
Other current assets	155,322	0
Total current assets	6,061,591	5,786,172
Property and equipment, net	8,004	6,132
Right of use asset, net	419,543	503,091
Contract fulfillment assets	554,579	0
Other assets	1,547,328	10,682
Internally developed software, net	382,323	473,895
Intangible assets, net	644,345	0
Total assets	9,617,713	6,779,972
Current liabilities
Accounts payable	2,255,577	1,091,701
Deferred revenue	3,792,091	3,864,080
Convertible notes payable, net of discounts	1,906,056	2,301,666
Convertible notes - interest payable	182,688	181,353
Embedded derivative	731,168	168,358
Current portion of lease liabilities	101,262	60,475
Receivables financing obligations	591,080	0
Other current liabilities	541,673	21,146
Total current liabilities	10,101,595	7,688,779
Long-term debt	4,880,960	0
Non-current portion of lease liabilities	369,260	460,266
Convertible notes payable, non-current	250,000	0
Total liabilities	15,601,815	8,149,045
Commitments and contingencies	0	0
Shareholders' equity (deficit)
Common stock $0.001 par value, 200,000,000 shares authorized, 94,885,028 and 81,992,857 shares issued and outstanding as of May 31, 2026 and May 31, 2025, respectively.	94,885	81,994
Additional paid-in capital	19,283,687	10,563,141
Accumulated deficit	(25,580,380)	(11,990,834)
Accumulated other comprehensive gain (loss)	217,706	(23,374)
Total shareholders' equity (deficit)	(5,984,102)	(1,369,073)
Total liabilities and shareholders' equity	$ 9,617,713	$ 6,779,972