Karbon-X Corp.

What they do

Karbon-X provides customized transactional options, tailored insights, and scalable access to the Verified Emissions Reduction markets. It engages the public rather than industry, letting subscribers purchase carbon offsets via an app with multiple investment tiers supporting solar, wind, methane capture, or reforestation projects. It is also developing NFTs to digitize and tokenize carbon credits on an Ethereum side chain to bring transparency and liquidity to the offset market.

Revenue drivers

• Carbon offset subscriptions — Subscription-based app sales of carbon offsets at multiple price tiers, tied to clean energy and reforestation projects; revenue grew from $412,057 in FY2024 to $3.2M in FY2025 and $55.9M in FY2026.
• Carbon credit inventory sales — Sale of carbon credits carried at lower of cost and net realizable value, with judgment on vintages, registries and project types where observable market prices may be limited.
• Allcot AG asset acquisition — June 2025 acquisition of assets from Allcot AG, accounted for as an asset acquisition under ASC 805-50, allocated to acquired project pipeline amortized over a 27-year weighted-average useful life.
• Tokenized carbon credit platform — In-development NFT minting and trading platform allowing carbon credit owners to mint credits into NFTs for trading; not yet described as a current revenue source.

Recent performance

Annual revenue rose to $55.9M in FY2026 from $3.2M in FY2025 and $412,057 in FY2024, but net losses widened to $13.6M from $7.1M and $2.7M. Diluted EPS was -$0.16 in FY2026 versus -$0.08 in FY2025 and -$0.04 in FY2024. Operating cash flow was -$7.9M in FY2026, following -$6.5M in FY2025 and -$1.1M in FY2024. Recent quarterly revenue was $4.3M in the quarter ended February 28, 2026, down from $20.8M in the prior quarter and $35.7M in the quarter ended August 31, 2025. At May 31, 2026, total assets were $9.6M, total liabilities $15.6M, shareholder equity was -$6.0M, cash was $1.2M, and long-term debt was $4.9M.

Strategy

Karbon-X says it changes the traditional carbon marketing framework by engaging the public rather than industry with technology-based greenhouse gas reduction builds. It is developing NFTs to digitize and enable trading of tokenized carbon credits, aiming to bring transparency and liquidity to the global carbon offset market. The platform is intended to support trading on existing tokenized exchanges and its own exchange, accepting crypto, fiat, or card, using a side chain of Ethereum to keep costs low. The June 2025 Allcot AG asset acquisition added a project pipeline amortized over 27 years. During FY2026 the company raised approximately $5.4 million from convertible note issuances, $4.8 million from long-term debt, $0.6 million from receivables financing, and $0.2 million from common stock sales.

Risks

• No history of profitability — The company has incurred losses each year, with net loss widening to $13.6M in FY2026, and states there is no guarantee it will ever become profitable.
• Need for additional capital — Management states it may need additional capital and that difficult market conditions could make debt or equity financing unavailable on attractive terms, diluting equity holders.
• Negative shareholder equity — At May 31, 2026, total liabilities of $15.6M exceeded total assets of $9.6M, leaving shareholder equity of -$6.0M.
• Carbon credit valuation uncertainty — Carbon credit inventory is carried at lower of cost and net realizable value, and management notes judgment is required where observable market prices for credits of different vintages, registries and project types may be limited.

Outlook

Management states that if the company does not turn profitable or generate cash from operations and additional capital is needed, economic and market conditions may make it difficult or impossible to raise funds through debt or equity financings. It says that if funds are insufficient it may pursue additional financings or reduce expenditures, and that any financing terms may not be as attractive as desired and could dilute equity interests considerably. The company continues to describe the NFT minting and carbon credit trading platform as in development.