Karbon-X Q1 Revenue Collapses 99% to $344K; Going Concern Doubt Reaffirmed
KARX sits 46% above its 52-week low of $0.13 on elevated volume (2.2× avg).
Summary
Karbon-X's first quarter of fiscal 2027 shows revenue of just $344K versus $35.7M a year ago, a $3.96M net loss, $335K of cash and renewed going concern doubt, funded by deeply discounted convertible notes.
Key Events · Earnings and Guidance · KARX
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Revenue Collapses to $344K
Q1 FY2027 revenue was $343,967 versus $35,658,933 a year earlier; the Cyprus industrial carbon credit trading that drove prior-year volume did not recur. Gross margin improved to 32.0% from 0.8% on the mix shift, but gross profit fell to $110,037 from $293,869.
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Net Loss Widens to $3.96M
Net loss was $3,955,038, or $(0.04) per share, versus $2,596,234, or $(0.03), a year ago. Interest expense jumped to $1,062,285 from $306,262, including $472,728 of debt-discount amortization and $276,770 of receivables finance charges.
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Going Concern and Thin Liquidity
Cash fell to $335,445 from $1,155,289 and negative working capital widened to $(7,297,897). Management states substantial doubt about the ability to continue as a going concern within one year; the material weakness in internal controls remained unremediated at August 31, 2026.
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Discounted Convertible Note Funding
Five notes were issued in the quarter with $773,500 face for $670,500 cash, convertible at 60%-85% of market. Shares issuable on conversion of all notes rose to 27,731,416 from 23,935,457, against 99,299,757 shares outstanding.
Analysis · KARX · Industrial Applications And Services
The trading business that produced almost all of last year's revenue did not recur, so quarterly revenue fell from $35.7M to $0.34M while operating expenses held near $2.7M. Cash is down to $335,445 against $11.4M of current liabilities, and management repeats that substantial doubt exists about continuing as a going concern. The gap is being bridged with convertible notes priced at 60%-85% of market, and the count of shares issuable on conversion has already grown to 27.7M against 99.3M outstanding — so each new financing transfers more of the company to noteholders. The $489,274 credit-loss charge on a CAD $2.3M loan that is past due and now in formal demand adds a second front of cash risk.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 37.4% of the 952 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.87%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, KARX was trading at $0.19 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $18.8M. The 52-week trading range was $0.13 to $1.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.