Karbon-X Corp. Reports Significant Revenue Growth, Net Loss in Q3 2024

Karbon-X Corp. reported significant financial developments for the three months ending August 31, 2024, compared to the same period in 2023. The company achieved total revenue of $127,429, a substantial increase from $3,758 in the prior year. This growth in revenue was accompanied by a gross profit of $33,331, up from $3,209 in the previous year. However, the company also reported a net loss before income tax of $(804,766), which widened from a loss of $(350,032) in the same quarter of 2023.

Operating expenses for the quarter rose to $825,684, compared to $325,474 in the previous year, contributing to the increased net loss. Cash used in operating activities also escalated to $(1,460,119) from $(180,276) year-over-year. Despite these losses, cash at the end of the period was $2,298,845, an increase from $974,356 a year earlier, reflecting a cash position bolstered by financing activities.

In terms of strategic developments, Karbon-X completed a private placement during the quarter, selling 1,238,889 shares at $0.90 per share, generating gross proceeds of $1,114,999. This follows a previous private placement in the prior fiscal year that raised $1,637,429. The company also converted a $100,000 loan into equity, issuing 200,000 shares at $0.50 per share.

The company’s total assets decreased to $3,288,372 as of August 31, 2024, down from $3,970,582 at the end of May 2024. Total liabilities also fell significantly to $139,000 from $1,142,325, primarily due to a reduction in current liabilities. Shareholders’ equity increased to $3,149,372 from $2,828,257, despite an increase in the accumulated deficit, which grew from $(4,937,342) to $(5,742,108).

Karbon-X has faced challenges, including the abandonment of its investment in Silviculture Systems, resulting in a write-off of $2,564,203. The company is actively seeking additional funding to support ongoing operations and future growth, indicating a reliance on private placements and advances from related parties. The management has expressed concerns regarding the company's ability to continue as a going concern without raising sufficient capital.

Additionally, the company appointed Christopher Mulgrew as Chief Financial Officer and Sharon Standefer as Chief Revenue Officer during the reporting period, signaling a focus on strengthening its leadership team.