The company faces severe liquidity pressure with only $335K cash against $11.4M current liabilities. Watch for further dilutive financing rounds, potential default on the $5M term note (18% interest), and the outcome of loan receivable enforcement proceedings. The $1.17M Edmonton Oilers liability and $5M in consulting notes issued post-quarter suggest continued cash burn without a clear path to profitability.
Price Chart
Executive Summary
Karbon-X Corp. filed an amended 10-Q/A to correct omissions in its original quarterly report for the period ended August 31, 2026. The amendment adds comparative financial data for the prior-year period in Note 22 and segment information in Note 1, and includes previously omitted convertible promissory notes and securities purchase agreements as exhibits. The company reported a net loss of $3.96 million on revenue of $0.34 million, a sharp decline from $35.66 million in the prior-year quarter due to the non-recurrence of industrial carbon credit trading. The company has negative working capital of $7.3 million, cash of $0.34 million, and an accumulated deficit of $29.5 million, with a going concern qualification.
Key Facts
- Revenue collapsed to $343,967 from $35,658,933 YoY due to non-recurrence of industrial carbon credit trading through Cyprus subsidiary
- Net loss widened to $3,955,038 from $2,596,234 YoY
- Negative working capital of $7,297,897 and cash of only $335,445 at August 31, 2026
- Accumulated deficit reached $29,535,418; going concern qualification reiterated
- Provision for credit losses of $489,274 on a past-due loan receivable (CAD $2.3M loan, no payments received)
- Interest expense surged to $1,062,285 from $306,262 YoY, driven by debt discount amortization and finance charges
- Unrealized loss of $422,410 on DevvStream Holdings shares received in settlement of securities receivable
- Convertible notes payable of $3.06M outstanding with variable-price conversion features creating dilution risk
- Subsequent to quarter end: issued $5M in convertible notes for consulting services, $644K in new convertible notes, and 8M restricted shares for advisory services
- Edmonton Oilers advertising agreement cancelled; $1.17M outstanding liability remains in accounts payable
Financial Impact
Revenue decline of $35.3M YoY; net loss increase of $1.36M; negative working capital of $7.3M; cash burn of $1.2M in operating activities
Risk Factors
- Going concern risk with insufficient cash to fund operations
- Massive dilution from convertible notes with variable-price conversion features (discounts of 60-85% to market)
- Potential default on $5M term note (18% interest) if cash flow deteriorates further
- Loan receivable of $1.77M (gross) with full allowance of $1.12M may result in additional write-offs
- Edmonton Oilers cancellation could lead to litigation or additional liability
- Material weakness in internal controls over financial reporting not yet remediated
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001477932-26-006380 |
| Document: karx_ex1015.htm | 0001477932-26-006380 |
| Document: karx_ex1016.htm | 0001477932-26-006380 |
| Document: karx_ex1018.htm | 0001477932-26-006380 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 4d ago | 10-Q/A | $0.2000 $0.1750 | ▲ +12.50% | ▲ +11.98% | $0.1750 (+12.50%) |
Oct 19, 2026 6d ago | SC 13D/A | $0.1903 $0.1900 | ▼ −0.16% | ▼ −0.68% | $0.1750 (−8.04%) |
Oct 15, 2026 11d ago | NT 10-Q | $0.1750 $0.1800 | ▼ −2.86% | ▼ −3.96% | $0.1750 (+0.00%) |
Oct 9, 2026 16d ago | SC 13D/A | $0.2000 $0.2100 | ▼ −5.00% | ▼ −5.06% | $0.1750 (+12.50%) |
Jun 5, 2026 20w ago | 8-K | $0.1890 $0.1890 | · 0.00% | ▲ +0.29% | $0.1750 (−7.41%) |
US Market Status
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