10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 29, 2024

Commission File Number 000-56288

KARBON-X CORP.

(Exact name of registrant as specified in its charter)

Nevada	82-2882342
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

910 7th Ave SW Calgary ,AB, Canada T2P 3N8

(Address of principal executive offices) (Zip Code)

778-256-5730

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act

Title of Each Class	Trading Symbol(s)	Name of each Exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of April 18, 2024, there were 78,664,969 shares of common stock issued and outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements.	F-1 to F-8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	8
Item 4.	Controls and Procedures.	8
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings.	9
Item 1A.	Risk Factors.	9
Item 2.	Unregistered Sales of Securities and Use of Proceeds.	9
Item 3.	Defaults Upon Senior Securities.	9
Item 4.	Mining Safety Disclosure.	9
Item 5.	Other Information.	9
Item 6.	Exhibits.	10

2

Contents

PART 1 FINANCIAL INFORMATION	Page(s)
Consolidated Balance Sheets at February 29, 2024 (Unaudited) and May 31, 2023	F-2
Consolidated Statements of Operations for the Three and Nine Months Ended February 29, 2024 (Unaudited) and February 28, 2023(Unaudited)	F-3
Consolidated Statement of Changes in Shareholders’ Equity for the Three and Nine Months Ended February 29, 2024 (Unaudited) and February 28, 2023(Unaudited)	F-5
Consolidated Statement of Cash Flows for the Nine Months Ended February 29, 2024 (Unaudited) and February 28, 2023(Unaudited)	F-7
Notes to the Consolidated Financial Statements	F-8

F-1

KARBON-X CORP.

Consolidated Balance Sheet

	February 29, 2024			May 31, 2023
ASSETS	(Unaudited)			(Audited)
Current assets
Cash and cash equivalents	$	212,140		$	206,820
Accounts receivable		24,782			-
Sales tax receivable		26,544			45,586
Prepaid expenses and other current assets		94,475			59,767
Total current assets		357,941			312,173
Property and equipment		7,503			9,116
Internally Developed Software		524,282			522,771
Inventory		223,649			80,750
Right of use asset		56,239			68,307
Investment in Silviculture		-			1,514,483
Security deposit		7,537			7,515
Total assets	$	1,177,151		$	2,515,115
LIABILITES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	134,096		$	69,732
Current portion of lease-liability		23,521			14,688
Short-term loan		151,644			100,000
Credit Card		8,819			-
Due from related Parties		37,486			-
Payroll liabilities		11,779			10,061
Total Current Liabilities		367,343			194,481
Non-current portion of lease liability		37,710			55,415
Total Liabilities		405,055			249,896
Commitments and contingencies		-			-
Shareholders’ equity (deficit)
Common stock $0.001 par value, 200,000,000 shares authorized, 78,664,969 and 72,579,000 shares issued and outstanding as of February 29, 2024 and May 31, 2023, respectively.		78,664			72,579
Shares to be issued		74,998			1,750,000
Additional Paid-in capital		5,009,285			2,638,532
Accumulated deficit		(4,356,124	)		(2,192,106	)
Accumulated other comprehensive gain (loss)		(34,727	)		(3,786	)
Total shareholders’ equity (deficit)		772,096			2,265,219
Total liabilities and shareholders’ equity (deficit)	$	1,177,151		$	2,515,115

The accompanying notes are an integral part of these financial statements

F-2

KARBON-X CORP.

Consolidated Statements of Operations

 (Unaudited)

	Three Months Ended			Three Months Ended
	February 29, 2024			February 28, 2023
Operations
Total revenue	$	247,222		$	7,823
Cost of revenue		223,758			1,190
Gross profit		23,464			6,633
Marketing expenses		66,629			17,928
Salaries and wages		149,533			-
Professional fees		51,188			231,020
Other operating expenses		127,513			142,950
Total operating expenses		394,863			391,898
Loss from Operations		(371,399	)		(385,265	)
Other income (expenses)
Impairment of Investments		-			-
Other income (expenses)		(99,872	)		13,476
Federal income tax expense		-			-
Net loss		(471,271	)		(371,789	)
Other comprehensive loss					-
Foreign currency translation gain (loss)		(20,561	)		33,371
Total comprehensive loss	$	(491,832	)	$	(338,418	)
Earnings Per Share
Weighted average shares outstanding (Basic and Diluted)		77,617,191			69,323,708
Basic and fully diluted loss per share	$	(0.01	)	$	(0.01	)

The accompanying notes are an integral part of these financial statements

F-3

KARBON-X CORP.

Consolidated Statements of Operations

(Unaudited)

	Nine Months Ended			Nine Months Ended
	February 29, 2024			February 28, 2023
Operations
Total revenue	$	287,062		$	7,823
Cost of revenue		237,959			1,190
Gross profit		49,103			6,633
Marketing expenses		95,468			36,912
Salaries and wages		464,274			-
Professional fees		201,650			324,347
Other operating expenses		262,302			305,377
Total operating expenses		1,023,694			666,636
Loss from Operations		(974,591	)		(660,003	)
Other income (expenses)		(1,188,775	)		13,969
Net loss before income taxes		(2,163,366	)		(646,034	)
Federal income tax expense		-			-
Net loss		(2,163,366	)		(646,034	)
Other comprehensive loss
Foreign currency translation gain (loss)		(30,941	)		1,398
Total comprehensive loss	$	(2,194,308	)	$	(644,636	)
Earnings Per Share
Weighted average basic and diluted shares outstanding		77,017,953			69,077,537
Basic and fully diluted loss per share	$	(0.03	)	$	(0.01	)

The accompanying notes are an integral part of these financial statements

F-4

KARBON-X CORP.

Consolidated Statement of Changes in Shareholders’ Equity

For the Three Months and Nine Months Ended February 29, 2024

(Unaudited)

Three Months Ended February 29, 2024.

	Common Stock				Shares to			Additional Paid		Accumulated			Accumulated other Comprehensive
Description	Shares		Amount		be issued			in Capital		Deficit			gain (loss)			Total
Balance November 30, 2023		78,603,858	$	78,603	$	55,000		$	4,954,346	$	(3,884,201	)	$	(14,166	)	$	1,189,582
Issuance of shares for cash		61,111		61		(55,000	)		54,939		-			-			-
Shares issued as stock compensation		-		-		74,998			-		-			-			74,998
Translation loss		-		-		-			-		(652	)		(20,561	)		(21,213	)
Net loss for the period		-		-		-			-		(471,271	)		-			(471,271	)
Balance February 29, 2024		78,664,969	$	78,664	$	74,998		$	5,009,285	$	(4,356,124	)	$	(34,727	)	$	772,096

Nine Months Ended February 29, 2024.

	Common Stock					Shares to			Additional Paid			Accumulated			Accumulated other Comprehensive
Description	Shares		Amount			be issued			in Capital			Deficit			gain (loss)			Total
Balance May 31, 2023		72,579,000	$	72,579		$	1,750,000		$	2,638,532		$	(2,192,106	)	$	(3,786	)	$	2,265,219
Shares to be issued for investment.		-		-			375,000			-			-			-			375,000
Shares to issued as stock Compensation		2,500,000		2,500			(550,002	)		622,500			-			-			74,998
Issuance of shares for cash And warrants, net		3,385,969		3,386			-			1,652,285			-			-			1,655,671
Conversion of loan to shares		200,000		200			-			99,800			-			-			100,000
Offering expenses		-		-			-			(3,832	)		-			-			(3,832	)
Write off of Investment in silviculture		-		-			(1,500,000	)		-			-			-			(1,500,000	)
Translation loss		-		(1	)		-			-			(652	)		(30,941	)		(31,594	)
Net loss for the period		-		-			-			-			(2,163,366	)		-			(2,163,366	)
Balance February 29, 2024		78,664,969	$	78,664		$	74,998		$	5,009,285		$	(4,356,124	)	$	(34,727	)	$	772,096

The accompanying notes are an integral part of these financial statements

F-5

KARBON-X CORP.

Consolidated Statement of Changes in Shareholders’ Equity

For the Three and Nine Months Ended February 28, 2023

(Unaudited)

Three Months Ended February 28, 2023. 

	Common Stock				Shares to		Additional Paid		Accumulated			Accumulated other Comprehensive
Description	Shares		Amount		be issued		in Capital		Deficit			gain (loss)			Total
Balance November 30, 2022		69,040,000	$	69,040	$	1,125,000	$	966,102	$	(478,743	)	$	(45,017	)	$	1,636,652
Shares to be issued for investment		1,000,000		1,000		-		499,000		-			-			500,000
Translation gain (loss)		-		-		-		-		-			33,371			33,371
Net loss		-		-		-		-		(371,789	)		-			(371,789	)
Balance February 28, 2023		70,040,000	$	70,040	$	1,125,000	$	1,465,102	$	(850,262	)	$	(11,646	)	$	1,798,234

Nine Months Ended February 28, 2023. 

	Common Stock				Shares to		Additional Paid		Accumulated			Accumulated other Comprehensive
Description	Shares		Amount		be issued		in Capital		Deficit			gain (loss)			Total
Balance May 31, 2022		68,320,000	$	68,320	$	-	$	786,822	$	(204,228	)	$	(13,044	)	$	637,870
Shares to be issued for investment		-		-		1,125,000		-		-			-			1,125,000
Issuance of shares for cash		1,720,000		1,720		-		-		-			-			1,720
Warrants issued		-		-		-		678,280		-			-			678,280
Translation gain (loss)				-		-		-		-			1,398			1,398
Net loss		-		-		-		-		(646,034	)		-			(646,034	)
Balance February 28, 2023		70,040,000	$	70,040	$	1,125,000	$	1,465,102	$	(850,262	)	$	(11,646	)	$	1,798,234

The accompanying notes are an integral part of these financial statements

F-6

KARBON-X CORP.

Consolidated Statement of Cash Flow

(Unaudited)

	Nine Months Ended			Nine Months Ended
	February 29, 2024			February 28, 2023
Cash flows from operating activities
Net loss	$	(2,163,366	)	$	(646,034	)
Adjustments to reconcile net loss to net cash:
Depreciation expense		1,099			824
Amortization of ROU		12,265			-
Loss(Gain) on investment		1,191,890			(13,391	)
Changes in operating assets and liabilities:
Accounts receivable		(24,782	)		-
Sales tax receivable		19,042			(21,131	)
Accounts payable		64,363			25,904
Payroll liabilities		10,535			177
Deferred Revenue		-			-
Due from Silviculture		-			(147,133	)
Due to related parties		37,486			14,860
Inventory		(142,899	)		(81,471	)
Lease Liability		(9,073	)		-
Prepaid expenses		(34,708	)		2,808
Security deposit		-			(8,296	)
Cash used in operating activities		(1,038,148	)		(872,883	)
Cash flows from investing activities
Acquisition of property and equipment		-			(3,046	)
Purchase of equity method investment		(727,409	)		-
Cash paid for capital work in progress		-			(280,169	)
Cash used in investing activities		(727,409	)		(283,215	)
Cash flows from financing activities
Proceeds from short term loan		151,644			99,604
Proceeds from issuance of shares and warrants		1,651,838			680,000
Cash flow from financing activities		1,803,482			779,604
Effect of translation changes on cash		(32,605	)		1,367
Change in cash and cash equivalents		5,320			(375,127	)
Cash, beginning of period		206,820			477,339
Cash, end of period	$	212,140		$	102,212
Non cash investing and financing activities
Shares to be issued for the Silviculture investment	$	-		$	1,125,000
Write off of Investment in Silviculture		(1,500,000	)		-
Supplemental disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

The accompanying notes are an integral part of these financial statements

F-7

KARBON-X CORP.

Notes to Consolidated Financial Statements

February 29, 2024

(Unaudited)

Note 1 - Basis of Presentation and Significant Accounting Policies

Karbon-X Corp. (“Karbon-X” or the Company”) was incorporated in the State of Nevada under the name Cocoluv,Inc on September 13, 2017 and established a fiscal year end of May 31. 

On February 21, 2022, pursuant to the terms of a Share Exchange Agreement, the Company acquired all of the issued and outstanding shares of common stock of Karbon-X Project Inc. ("Karbon-X"), and Karbon-X became the wholly owned subsidiary of the Company in a reverse acquisition (the "Reverse Acquisition"). Pursuant to the Reverse Acquisition, all of the issued and outstanding shares of Karbon-X common stock were converted, at an exchange ratio of 20,000-for-1, into an aggregate of 20,000,000 shares of the Company's common stock, resulting in Karbon-X becoming a wholly owned subsidiary of the Company and all debt owed to the related party of Cocoluv, Inc. was forgiven. The accompanying financial statements' share information has been retroactively adjusted to reflect the exchange ratio in the Reverse Acquisition.  As part of the Reverse Acquisition, on April 14, 2022 the Company changed its name to Karbon-X Corp.

Under generally accepted accounting principles in the United States ("US GAAP") because the combined entity will be dependent on Karbon-X's senior management, the Reverse Acquisition was accounted for as a recapitalization effected by a share exchange, wherein Karbon-X is considered the acquirer for accounting and financial reporting purposes. On the date of the reorganization, the assets and liabilities of Karbon-X have been brought forward at their book value and consolidated with Cocoluv, Inc.’s assets, which comprised of cash and cash equivalents of $134 and liabilities which comprises due to related party of $99,902 (see Note 1 Basis of Presentation below). No goodwill has been recognized. Accordingly, the assets and liabilities and the historical operations that are reflected in the consolidated financial statements are those of Karbon-X and are recorded at the historical cost basis of Karbon-X.

Going concern

To date the Company has generated minimal revenues from its business operations and has incurred operating losses since inception of $4,356,124. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements present the consolidated balance sheets, statements of operations, stockholders' equity and cash flows of the Company. These consolidated financial statements are presented in the United States dollar and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Sales Tax Receivable

Sales tax receivable consists of the accumulated reclaimable GST paid by the Company on purchases made in Canada. 

F-8

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets which are all five years.

Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long-lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Inventory

Inventories are valued at the lower of cost or net realizable value. The Company's inventories are valued under the first in, first out (FIFO) method. Net realizable value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. As of June 1, 2023, the Company changed its inventory policy from weighted average to FIFO, this had no significant impact on the current or prior consolidated financial statements. 

Investments

The Company accounts for investments with a 20% to 50% ownership and a significant, but not controlling influence as equity method investments. Investments with a greater than 50% ownership and a controlling influence are accounted for using the consolidation method. The Company assesses the potential impairment of equity method investments when indicators such as a history of operating losses, negative earnings and cash flow outlook, and the financial condition and prospects for the investee's business segment might indicate a loss in value. The Company previously accounted for its investment in Silviculture Systems using the equity method and its investment in its subsidiary Karbon-X Project, Inc using the consolidation method. During November 2023, the Company abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture.

Fair Value of Financial Instruments

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

• Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

• Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The carrying amount of the Company’s financial assets and liabilities approximate their fair values due to their short-term maturities.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Since ASU 2014-09 was issued, several additional ASUs have been issued to clarify various elements of the guidance. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under ASC 606, the Company recognizes revenue from the commercial sales of carbon credits and consulting services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Rates for consulting services are typically per day, per hour, or a similar basis. Consulting revenue is recognized over the period in which the service is provided.

F-9

Revenue for sales of carbon credits is recognized at a point in time when control of the credit transfers to the buyer. The Company acts as a principal in all revenue transactions.

Foreign Currency Translation

The functional currency of the Company is the Canadian Dollar (“CAD”). For financial statement purposes, the reporting currency is the United States Dollar (“USD”).

For financial reporting purposes, the consolidated financial statements are translated into the Company’s reporting currency, USD. Asset, liability and equity accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using the average exchange rate prevailing during the reporting period.

Adjustments resulting from the translation, if any, are included in accumulated other comprehensive loss in stockholder’s equity (deficit).

Warrants

There is estimation uncertainty with respect to selecting inputs to the Black-Sholes model used to determine the fair value of the warrants (Note 7). These inputs include the stock price ranging from $0.50 - $0.25, exercise price ranging from $0.75 - $0.50, time to maturity of two years, annual risk-free interest rate ranging from 2.66% - 4.92%, and annualized volatility ranging from 637.12 % -25.93 %.

The above estimates and assumptions are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant Estimates

Significant estimates applied in the preparation of these financial statements include the estimated useful lives of property and equipment, share volatility and estimated life of options and warrants in determining their fair value as well as the expected potential for the realization of deferred tax assets in determining the amount of the valuation allowance thereto.

Earnings per Common Share

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. As of February 29, 2024, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per share.  

Reclassifications

Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no impact on net earnings, financial position, or cash flows. 

Note 2 – Prepaid Expenses

As of February 29, 2024 and May 31, 2023, prepaid expenses consisted of the following:

Description	February 29, 2024		May 31, 2023
Prepaid Common Credit Purchase	$	59,939	$	-
Prepaid furniture		-		59,767
Prepaid Advertising Expenses		32,559		-
Other prepaids		1,977		-
Total	$	94,475	$	59,767

F-10

Note 3 – Inventory

Inventory as of February 29, 2024 and May 31, 2023, consisted of the following:

Description	February 29, 2024		May 31, 2023
Carbon Credit Inventory	$	223,649	$	80,750
Total	$	223,649	$	80,750

Carbon credit inventory represents carbon credits currently held for sale. 

Note 4 - Property and Equipment

The amount of property and equipment as of February 29, 2024 and May 31, 2023, consisted of the following:

Description	February 29, 2024			May 31, 2023
Furniture and fixtures	$	6,626		$	6,607
Computer and equipment		3,715			3,705
Total property cost	$	10,341		$	10,312
Accumulated depreciation		(2,838	)		(1,196	)
Property and equipment, net	$	7,503		$	9,116

The Company made no purchases during the nine months ended February 29,2024 and purchased office chairs and desks the year ended May 31,2023 for $ 6,607. The company also purchased computers during the year ended May 31,2023 for $ 3,705. Depreciation expense, net of translation, for the three months and nine months ended February 29, 2024 was $ 550 and $ 1,650 respectively. Depreciation expense for the nine months ended February 29, 2023 was $824.

Note 5 – Shareholders’ Equity

During the nine months ended February 29, 2024, Karbon-X Corp completed following private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.

During July – September 2023, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended. In that private placement the company sold 3,274,858 shares of common stock at $0.50 per share for gross proceeds of $ 1,637,429, net of expenses related to issuances of $83,993.

On June6, 2023 the Company converted a loan for $100,000 into 200,000 shares at price of $0.50 per share.

During November 2023, the Company sold 50,000 common stock at $2 per unit for total proceeds of $100,000.

During January 2024, the Company revalued the common stock from $2 per unit to $0.90 per unit and issued an additional 61,111 shares.

During the year ended May 31, 2023, the Company executed an agreement to issue shares of Karbon-X Corp for the purchase of up to 80% of Silviculture Systems to be issued in tranches based on completion of milestones. As of August 31, 2023, the Company had agreed to purchase 32% of Silviculture Systems for 6,000,000 shares of Karbon-X Corp shown as shares to be issued for a value of $1,500,000. During November 2023, amidst ongoing disputes which we are currently discussing, the Company has chosen to abandon the silviculture investment deal and write off the carrying value of the Equity Investment in Silviculture. Accordingly, the Company has written of carrying value of Investment of $ 2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $ 1,064,203 in its statement of operations for the three months ended November 30, 2023.

F-11

During the six months ended November 30, 2022, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.  In that private placement the company sold 720,000 units at $0.25 per unit for total proceeds of $180,000.  Each unit consisted of share of common stock and warrant to purchase a share of common stock for $0.75 per share for a period of two years.

Note 6 – Convertible Debt

On February 13, 2024, Karbon-X Corp. issued a convertible debt note to Tyler Skinner or their assigns. The note is for the principal amount of $150,000 and is convertible into common stock of the company at a conversion price of $0.90 per share. The note carries a one-time interest fee of $37,500, which will be converted into common stock at the same conversion price. Any unpaid principal on the note will accrue interest at a rate of eighteen percent (18%) per annum from the due date until paid. The note matures on the earlier of the company raising a minimum of $1,000,000 or one year from the issue date, subject to extension.

Note 7 – Warrants

During the nine months ended February 29, 2024, the Company issued 10,400 warrants in connection with one private placement. Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $0.50 with a two year term. The 10,400 units of warrants and shares were issued as a commission fee valued at $2,236.

A detail of warrant activity for the nine months ended February 29, 2024 is as follows:

Description	Number		Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding May 31, 2023		4,140,000	$	0.75		0.33
Exercised		-		-		-
Granted		10,400		0.50		1.67
Expired		-		-		-
Cancelled		-		-		-
Outstanding February 29, 2024		4,150,400	$	0.75		0.34

Note 8 – Investments

On May 31, 2023, the Company executed an amended share exchange agreement to buy up to 80% of Silviculture Systems in exchange for cash and shares of Karbon-X Corp valued at $7,250,000. $3,250,000 paid for in shares and the remaining $3,500,000 paid for in cash over the next three years. The issuance of shares was originally intended to occur in tranches upon the completion of milestones. As of November 30, 2023, the Company had paid $999,783 in cash, had rights to a 32% ownership in Silviculture Systems and had a significant, but not controlling interest in Silviculture Systems. The shares related to the 32% ownership are shown have not been issued but are reflected in these financial statements as shares to be issued and were valued at the most recent stock purchase price, at the time of signing, of $0.25 per share. This investment was originally accounted for as an equity method investment and its respective gain/loss for the period has been recorded in the statement of operations.

During November 2023, the Company has abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture. Accordingly, amidst ongoing disputes which we are currently discussing, the Company has written off the carrying value of Investment of  $2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $1,064,203 in its statement of operations for the three months ended November 30, 2023.

Note 9 – Capital Work in Progress (Internally Developed Software)

In accordance with ASC 350-40, the Company has capitalized internally developed software for its development of a mobile application. The software is currently in its application development stage and all related costs are being capitalized as incurred.  Once the software is ready for implementation, the Company will begin amortizing the software over its estimated useful life.  As of February 29, 2024 and May 31, 2023, the Company has capitalized internally developed software of $524,282 and $522,771, respectively.

F-12

Note 10 – Commitments and Contingencies

Operating Lease 

The Company leases office space from a third party under an operating lease agreement over 40 months which expires in July 2026.The lease also includes the payment of executory costs.

Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our estimated incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components in determining the lease

payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, if applicable. When lease terms include an option to extend the lease, we have not assumed the options will be exercised.

Lease expense for operating leases generally consist of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include agreed-upon changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. We recognized total lease expense of approximately $17,665 for the nine months ended February 29, 2024, primarily related to operating lease costs paid to lessors from operating cash flows. We entered into our operating lease in April 2023 with a term of three years.

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at February 29, 2024 were as follows:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES
Year Ended May 31,	Total
2024	$	4,785
2025	$	28,712
2026	$	28,712
2027	$	7,179
Thereafter	$	-
Total lease payment	$	69,388
Less: Imputed Interest	$	(8,157	)
Operating lease liabilities	$	61,231
Operating lease liabilities- Current	$	23,521
Operating lease liabilities- Non-current	$	37,710

In January 2024, a former employee filed a lawsuit against the Company asserting wrongful termination. As of the date of this report, the lawsuit is ongoing. In review of the status with our external counsel, the Company believes there will be a positive outcome and no provision is recorded.

Note 11 – Subsequent Events

On March 27, 2024^th Brett Hull and Justin Bourque were issued 41,666 each, as initial compensation as additions to the board of directors.

On April 11, 2024, the Board of Directors of Karbon-X Corp. decided it's in the company's best interest to extend the expiration date on warrants issued as part of its private placements in 2022. The expiration date for all such warrants is extended to May 31, 2024.

F-13

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion relates to the historical operations and financial statements of Karbon-X Corp. ("Karbon-X" or the "Company") for the three months and nine months ending February 29, 2024 and February 28, 2023.

Forward-Looking Statements

The following Management's Discussion and Analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere in this Quarterly Report. The Management's Discussion and Analysis contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect," and the like, and/or future-tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this Annual Report. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the heading "Risks Factors" in our various filings with the Securities and Exchange Commission. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Annual Report.

The following discussion highlights the Company's results of operations and the principal factors that have affected its consolidated financial condition as well as its liquidity and capital resources for the periods described, and provides information that management believes is relevant for an assessment and understanding of the Company's consolidated financial condition and results of operations presented herein. The following discussion and analysis are based upon Karbon-X Corp's unaudited financial statements contained in this Current Report on Form 10-Q, which have been prepared in accordance with generally accepted accounting principles in the United States. You should read the discussion and analysis together with such financial statements and the related notes thereto.

Overview

The Company was incorporated in the State of Nevada under the name Cocoluv, Inc. on September 13, 2017 and established a fiscal year end of May 31.

On February 21, 2022, pursuant to the terms of a Share Exchange Agreement, the Company acquired all of the issued and outstanding shares of common stock of Karbon-X Project Inc. ("Karbon-X Project"), and Karbon-X Project became the wholly owned subsidiary of the Company in a reverse acquisition (the "Reverse Acquisition"). Pursuant to the Reverse Acquisition, all of the issued and outstanding shares of Karbon-X common stock were converted, at an exchange ratio of 20,000-for- 1, into an aggregate of 20,000,000 shares of the Company's common stock, resulting in Karbon-X Project becoming a wholly owned subsidiary of the Company and all debt owed to the related party of Cocoluv, Inc. (the Company) was forgiven. The accompanying financial statements' share information has been retroactively adjusted to reflect the exchange ratio in the Reverse Acquisition. As part of the Reverse Acquisition, on April 14, 2022 the Company changed its name to Karbon-X Corp. Karbon-X provides customized transactional options, tailored insights, and scalable access to the Verified Emissions Reduction markets.

Karbon-X changes the marketing framework of traditional carbon marketing by engaging the public vs industry with multiple forms of technology based greenhouse gas reduction builds. Karbon-X will allow the public to purchase carbon offsets from an APP that is subscription based, with multiple levels of investment for every budget. Each subscription will support clean energy projects such as solar or wind power, methane capture, or reforestation and will reduce greenhouse gas emissions with provable, verifiable carbon credits.

Karbon-X is in development of NFTs to digitize and allow for the trading of tokenized carbon credits in order to bring transparency and liquidity to the global carbon offset market. The aim of the decentralized platform is to enable offset trading on existing tokenized exchanges and their own exchange accepting of all forms of payment, crypto, fiat or card.

NFT minting platform for carbon credits truly allows carbon credit owners to mint their credits into NFTs for a secure and efficient method of trading in a market that appears set to grow rapidly in the coming years. A trading platform will allow the owners of the NFT to monitor their assets while tracking their value and trading history. This is done on the blockchain to mitigate many risks such as double trading and long-term record keeping issues. By using a "side chain" of ethereum costs are kept to a minimum for users References in this periodic report on Form l0-Q to "Karbon-X" or the "Company" may include references to the operations of our subsidiary Karbon-X Project. This entity is a 100% wholly owned subsidiary of Karbon-X and consequentially reports quarterly financials up to a consolidated quarterly submission.

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Critical Accounting Policies

The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements present the consolidated balance sheets, statements of operations, stockholders' equity and cash flows of the Company. These consolidated financial statements are presented in the United States dollar and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Sales Tax Receivable

Sales tax receivable consists of the accumulated reclaimable GST paid by the Company on purchases made in Canada. 

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets which are all five years.

Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long-lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Inventory

Inventories are valued at the lower of cost or net realizable value. The Company's inventories are valued under the first in, first out (FIFO) method. Net realizable value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. As of June 1, 2023, the Company changed its inventory policy from weighted average to FIFO, this had no significant impact on the current or prior consolidated financial statements. 

Investments

The Company accounts for investments with a 20% to 50% ownership and a significant, but not controlling influence as equity method investments. Investments with a greater than 50% ownership and a controlling influence are accounted for using the consolidation method. The Company assesses the potential impairment of equity method investments when indicators such as a history of operating losses, negative earnings and cash flow outlook, and the financial condition and prospects for the investee's business segment might indicate a loss in value. The Company previously accounted for its investment in Silviculture Systems using the equity method and its investment in its subsidiary Karbon-X Project, Inc using the consolidation method. During November 2023, the Company abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture.

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Fair Value of Financial Instruments

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

• Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

• Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The carrying amount of the Company’s financial assets and liabilities approximate their fair values due to their short-term maturities.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Since ASU 2014-09 was issued, several additional ASUs have been issued to clarify various elements of the guidance. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under ASC 606, the Company recognizes revenue from the commercial sales of carbon credits and consulting services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Rates for consulting services are typically per day, per hour, or a similar basis. Consulting revenue is recognized over the period in which the service is provided.

Revenue for sales of carbon credits is recognized at a point in time when control of the credit transfers to the buyer. The Company acts as a principal in all revenue transactions.

Foreign Currency Translation

The functional currency of the Company is the Canadian Dollar (“CAD”). For financial statement purposes, the reporting currency is the United States Dollar (“USD”).

For financial reporting purposes, the consolidated financial statements are translated into the Company’s reporting currency, USD. Asset, liability and equity accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using the average exchange rate prevailing during the reporting period.

Adjustments resulting from the translation, if any, are included in accumulated other comprehensive loss in stockholder’s equity (deficit).

Warrants

There is estimation uncertainty with respect to selecting inputs to the Black-Sholes model used to determine the fair value of the warrants (Note 6). These inputs include the stock price ranging from $0.50 - $0.25, exercise price ranging from $0.75 - $0.50, time to maturity of two years, annual risk-free interest rate ranging from 2.66% - 4.92%, and annualized volatility ranging from 637.12 % -25.93 %.

The above estimates and assumptions are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

5

Significant Estimates

Significant estimates applied in the preparation of these financial statements include the estimated useful lives of property and equipment, share volatility and estimated life of options and warrants in determining their fair value as well as the expected potential for the realization of deferred tax assets in determining the amount of the valuation allowance thereto.

Earnings per Common Share

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. As of February 29, 2024, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per share.

Financial Condition and Results of Operations

To date the Company has just recently commenced to generate revenues from its business operations and has incurred operating losses since inception of $4,356,124. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

Results of Operations

Unaudited Results for the Three Months Ended February 29, 2024 and February 28, 2023

Sales and Revenue

For the three-month period ended February 29, 2024 we had revenue of $247,222 compared to $7,823 for the three month period ended February 28, 2023. We are just at the beginning of our operations which we expect to improve during the current  fiscal year. We anticipate increased revenues upon completion of our App as well as with projects with other potential partners.

Operating Expenses

Operating expenses for the three-month period ended February 29, 2024 totaled $394,863, compared to $391,898 for the three month period ended February 28, 2023. The increase was related to salary and wages.

Net loss from operations after income taxes was $471,271 during the three months ended February 29, 2024 compared to $371,789 for the three month period ended February 28, 2023.

Results of Operations

Unaudited Results for the Nine Months Ended February 29, 2024 and February 28, 2023

Sales and Revenue

For the nine-month period ended February 29, 2024 we had revenue of $287,062 compared to $7,823 for the nine month period ended February 28, 2023. We are just at the beginning of our operations which we expect to improve during the current fiscal year. We anticipate increased revenues upon completion of our App as well as through our acquisition of Silviculture Systems and other potential partners.

Operating Expenses

Operating expenses for the nine -month period ended February 29, 2024 totaled $ 1,023,694 compared to $666,636 for the nine month period ended February 28, 2023. The increase was related to salary and wages.

6

Net loss from operations after income taxes was $2,163,366 during the nine months ended February 29, 2024 compared to $646,034 loss for the nine month period ended February 28, 2023 significantly due to loss on write off of Investment in Silviculture $ 1,064,203 for the nine months ended February 29, 2024.

Liquidity and Capital Resources

The following table sets forth the major components of our statements and consolidated statements of cash flows for the periods presented.

	Nine Months Ended February 29, 2024			Nine Months Ended February 28, 2023
Cash used in operating activities	$	(1,038,148	)		(872,883	)
Cash from financing activities	$	1,803,482			779,604
Cash used in investing activities	$	(727,409	)		(283,215	)
Change in cash during the period	$	5,320			(375,127	)
Effect of exchange rate change	$	(32,605	)		1,367
Cash, beginning of period	$	206,820			477,339
Cash, end of period	$	212,140			102,212

As of February 29, 2024, the Company had $357,941 in current assets.

To date, the Company has financed its operations through equity sales.

During July – September 2023, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended. In that private placement the company sold 3,274,858 shares of common stock at $0.50 per share for gross proceeds of $ 1,637,429, net of expenses related to issuances of $83,993.

On June 6, 2023 the Company converted a loan for $100,000 into 200,000 shares at price of $0.50 per share.

During November 2023, the Company sold 50,000 common stock at $2 per unit for total proceeds of $100,000.

During January 2024, the Company revalued the common stock from $2 per unit to $.90 per unit and issued an additional 61,111 shares.

During the year ended May 31, 2023, the Company executed an agreement to issue shares of Karbon-X Corp for the purchase of up to 80% of Silviculture Systems to be issued in tranches based on completion of milestones. As of August 31, 2023, the Company had agreed to purchase 32% of Silviculture Systems for 6,000,000 shares of Karbon-X Corp shown as shares to be issued for a value of $1,500,000. During November 2023, amidst ongoing disputes which we are currently discussing, the Company has chosen to abandon the silviculture investment deal and write off the carrying value of the Equity Investment in Silviculture. Accordingly, the Company has written of carrying value of Investment of $ 2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $ 1,064,203 in its statement of operations for the three months ended November 30, 2023.

During the six months ended November 30, 2022, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.  In that private placement the company sold 720,000 units at $0.25 per unit for total proceeds of $180,000.  Each unit consisted of share of common stock and warrant to purchase a share of common stock for $0.75 per share for a period of two years.

Future Financing

In connection with its proposed business plan and currently ongoing and proposed acquisitions, in addition to the possible proceeds from this offering the Company will be required to complete substantial and significant additional capital formation. Such formation could be through additional equity offerings, debt, bank financings or a combination of any source of financing. There can be no assurance that the Company will be successful in completion of such financings.

Plan of Operations

As noted above, the continuation of our current plan of operations requires us to raise significant additional capital. If we are successful in raising capital through the sale of convertible notes or common shares, we believe that we will have sufficient cash resources to fund our plan of operations through 2024. If we are unable to do so, we may have to curtail and possibly cease some operations. We intend to use the net proceeds from the offering for operations, regulatory compliance, intellectual property, working capital and general corporate purposes.

7

We continually evaluate our plan of operations to determine the manner in which we can most effectively utilize our limited cash resources. The timing of completion of any aspect of our plan of operations is highly dependent upon the availability of cash to implement that aspect of the plan and other factors beyond our control. There is no assurance that we will successfully obtain the required capital or revenues, or, if obtained, that the amounts will be sufficient to fund our ongoing operations.

Capital Expenditures

As of February 29, 2024 we had no capital expenditures.

Commitments and Contractual Obligations

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

Off-balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Going Concern

To date the Company has only recently begun generating revenues from its business operations and has incurred operating losses since inception of $4,356,124. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty .

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our management evaluated the effectiveness of the Company's internal control over financial reporting as of February 29, 2024. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control Integrated Framework (2013). Based on this evaluation, our management concluded that, as of February 29, 2024, our internal control over financial reporting was not effective.

The Company has hired a Chief Financial Officer who can act as a second control person relative to the Company's financial operations. This quarterly report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the SEC that permits us to provide only management's report in this quarterly report.

8

PART Il—OTHER INFORMATION

Item 1. Legal Proceedings.

We are not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties other than the following:

As of the date of this report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. We are not aware of any other legal proceedings pending or that have been threatened against us or our properties.

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.

Item 1A. Risk Factors.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During July – September 2023, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended. In that private placement the company sold 3,274,858 shares of common stock at $0.50 per share for gross proceeds of $ 1,637,429, net of expenses related to issuances of $83,993.

On June 6, 2023 the Company converted a loan for $100,000 into 200,000 shares at price of $0.50 per share.

During November 2023, the Company sold 50,000 common stock at $2 per unit for total proceeds of $100,000.

During January 2024, the Company revalued the common stock from $2 per unit to $.90 per unit and issued an additional 61,111 shares.

During the year ended May 31, 2023, the Company executed an agreement to issue shares of Karbon-X Corp for the purchase of up to 80% of Silviculture Systems to be issued in tranches based on completion of milestones. As of August 31, 2023, the Company had agreed to purchase 32% of Silviculture Systems for 6,000,000 shares of Karbon-X Corp shown as shares to be issued for a value of $1,500,000. During November 2023, amidst ongoing disputes which we are currently discussing, the Company has chosen to abandon the silviculture investment deal and write off the carrying value of the Equity Investment in Silviculture. Accordingly, the Company has written of carrying value of Investment of $ 2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $ 1,064,203 in its statement of operations for the three months ended November 30, 2023.

During the six months ended November 30, 2022, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.  In that private placement the company sold 720,000 units at $0.25 per unit for total proceeds of $180,000.  Each unit consisted of share of common stock and warrant to purchase a share of common stock for $0.75 per share for a period of two years.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

Not applicable

9

Item 6. Exhibits.

31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer
31.2	Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101	Interactive data files pursuant to Rule 405 of Regulation S-T.

10

SIGNATURES*

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Karbon-X Corp. (Registrant)
Date: April 22, 2024	By:	/s/ Chad Clovis
		Chad Clovis
		Chief Executive Officer and Director {Principal and Executive Officer}
Date: April 22, 2024	By:	/s/ Chris Mulgrew
		Chris Mulgrew
		Chief Financial Officer
		(Principal Financial Officer Principal Accounting Officer)

11

EX-31.1

  EXHIBIT 31.1

CERTIFICATIONS

I, Chad Clovis, principal executive officer, certify that:

1.	I have reviewed this quarterly report of Karbon-X Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the registrant and have:

 

a)	Designed such disclosure controls and procedures, or caused such controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 22, 2024	By:	/s/ Chad Clovis
		Chad Clovis
		Chief Executive Officer and Director
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Christopher Mulgrew, principal accounting officer, certify that:

1.	I have reviewed this quarterly report of Karbon-X Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d – 15(f)) for the registrant and have:

 

a)	Designed such disclosure controls and procedures, or caused such controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 22, 2024	By:	/s/ Christopher Mulgrew
		Christopher Mulgrew
		Chief Financial Officer,
		(Principal Financial Officer)

EX-32.1

  EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended February 29, 2024 of Karbon-X Corp., a Nevada corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Quarterly Report"), I, Chad Clovis, Chief Executive Officer of the Company certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and
2.	The information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: April 22, 2024	By:	/s/ Chad Clovis
		Chad Clovis
		Chief Executive Officer and Director

EX-32.2

  EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended February 29, 2024 of Karbon-X Corp., a Nevada corporation (the "Company"), as filed with the Securities and Exchange Commission on the date hereof (the "Quarterly Report"), I, Christopher Mulgrew, Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Quarterly Report fully complies with the requirements of Section 13(a) or15(d) of the Securities and Exchange Act of 1934, as amended; and
2.	The information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: April 22, 2024	By:	/s/ Christopher Mulgrew
		Christopher Mulgrew
		Acting Chief Financial Officer,
		(Principal Financial Officer)

XML

Cover - shares	9 Months Ended
	Feb. 29, 2024	Apr. 18, 2024
Cover [Abstract]
Entity Registrant Name	KARBON-X CORP.
Entity Central Index Key	0001729637
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Feb. 29, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		78,664,969
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-56288
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	82-2882342
Entity Address Address Line 1	910 7th Ave SW
Entity Address City Or Town	Calgary
Entity Address Country	CA
Entity Address Postal Zip Code	T2P 3N8
City Area Code	778
Local Phone Number	256-5730
Entity Interactive Data Current	Yes

XML

Consolidated Balance Sheet - USD ($)	Feb. 29, 2024	May 31, 2023
Current assets
Cash and cash equivalents	$ 212,140	$ 206,820
Accounts receivable	24,782	0
Sales tax receivable	26,544	45,586
Prepaid expenses and other current assets	94,475	59,767
Total current assets	357,941	312,173
Property and equipment	7,503	9,116
Internally Developed Software	524,282	522,771
Inventory	223,649	80,750
Right of use asset	56,239	68,307
Investment in Silviculture	0	1,514,483
Security deposit	7,537	7,515
Total assets	1,177,151	2,515,115
Current liabilities
Accounts payable	134,096	69,732
Current portion of lease-liability	23,521	14,688
Short-term loan	151,644	100,000
Credit Card	8,819	0
Due from related Parties	37,486	0
Payroll liabilities	11,779	10,061
Total Current Liabilities	367,343	194,481
Non-current portion of lease liability	37,710	55,415
Total Liabilities	405,055	249,896
Commitments and contingencies	0	0
Shareholders' equity (deficit)
Common stock $0.001 par value, 200,000,000 shares authorized, 78,664,969 and 72,579,000 shares issued and outstanding as of February 29, 2024 and May 31, 2023, respectively.	78,664	72,579
Shares to be issued	74,998	1,750,000
Additional Paid-in capital	5,009,285	2,638,532
Accumulated deficit	(4,356,124)	(2,192,106)
Accumulated other comprehensive gain (loss)	(34,727)	(3,786)
Total shareholders' equity (deficit)	772,096	2,265,219
Total liabilities and shareholders' equity (deficit)	$ 1,177,151	$ 2,515,115

XML

Consolidated Balance Sheet (Parenthetical) - $ / shares	Feb. 29, 2024	May 31, 2023
STOCKHOLDERS DEFICIT
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	78,664,969	72,579,000
Common stock, shares outstanding	78,664,969	72,579,000

XML

Consolidated Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 29, 2024	Feb. 28, 2023	Feb. 29, 2024	Feb. 28, 2023
Operations
Total revenue	$ 247,222	$ 7,823	$ 287,062	$ 7,823
Cost of revenue	223,758	1,190	237,959	1,190
Gross profit	23,464	6,633	49,103	6,633
Marketing expenses	66,629	17,928	95,468	36,912
Salaries and wages	149,533	0	464,274	0
Professional fees	51,188	231,020	201,650	324,347
Other operating expenses	127,513	142,950	262,302	305,377
Total operating expenses	394,863	391,898	1,023,694	666,636
Loss from Operations	(371,399)	(385,265)	(974,591)	(660,003)
Impairment of Investments	0	0
Other income (expenses)	(99,872)	13,476	(1,188,775)	13,969
Net loss before income taxes			(2,163,366)	(646,034)
Federal income tax expense	0	0	0	0
Net loss	(471,271)	(371,789)	(2,163,366)	(646,034)
Other comprehensive loss
Foreign currency translation gain (loss)	(20,561)	33,371	(30,941)	1,398
Total comprehensive loss	$ (491,832)	$ (338,418)	$ (2,194,308)	$ (644,636)
Earnings Per Share
Weighted average shares outstanding (Basic and Diluted)	77,617,191	69,323,708	77,017,953	69,077,537
Basic and fully diluted loss per share	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)

XML

Consolidated Statement of Changes in Shareholders Equity (Unaudited) - USD ($)	Total	Common Stock	Stock to be issued	Additional Paid-In Capital	Accumulated Deficit	Accumulated other comprehensive gain (loss)
Balance, shares at May. 31, 2022		68,320,000
Balance, amount at May. 31, 2022	$ 637,870	$ 68,320	$ 0	$ 786,822	$ (204,228)	$ (13,044)
Shares to be issued for investment	1,125,000	$ 0	1,125,000	0	0	0
Issuance of shares for cash, shares		1,720,000
Issuance of shares for cash, amount	1,720	$ 1,720	0	0	0	0
Warrants issued	678,280	0	0	678,280	0	0
Translation gain (loss)	1,398					1,398
Net loss	(646,034)	0	0		(646,034)	0
Write off of Investment in silviculture	0
Balance, amount at Feb. 28, 2023	1,798,234	$ 70,040	1,125,000	1,465,102	(850,262)	(11,646)
Balance, shares at Feb. 28, 2023		70,040,000
Balance, shares at Nov. 30, 2022		69,040,000
Balance, amount at Nov. 30, 2022	1,636,652	$ 69,040	1,125,000	966,102	(478,743)	(45,017)
Net loss	(371,789)	$ 0	0	0	(371,789)	0
Shares to be issued for investment, shares		1,000,000
Shares to be issued for investment, amount	500,000	$ 1,000	0	499,000	0	0
Translation gain (loss)	33,371	0	0	0	0	33,371
Balance, amount at Feb. 28, 2023	1,798,234	$ 70,040	1,125,000	1,465,102	(850,262)	(11,646)
Balance, shares at Feb. 28, 2023		70,040,000
Balance, shares at May. 31, 2023		72,579,000
Balance, amount at May. 31, 2023	2,265,219	$ 72,579	1,750,000	2,638,532	(2,192,106)	(3,786)
Shares to be issued for investment	375,000	0	375,000	0	0	0
Net loss	(2,163,366)	0	0	0	(2,163,366)	0
Translation gain (loss)	(31,594)	$ (1)	0	0	(652)	(30,941)
Shares to issued as stock Compensation, shares		2,500,000
Shares to issued as stock Compensation, amount	74,998	$ 2,500	(550,002)	622,500	0	0
Issuance of shares for cash And warrants, net, shares		3,385,969
Issuance of shares for cash And warrants, net, amount	1,655,671	$ 3,386	0	1,652,285	0	0
Conversion of loan to shares, shares		200,000
Conversion of loan to shares, amount	100,000	$ 200	0	99,800	0	0
Offering expenses	(3,832)	0	0	(3,832)	0	0
Write off of Investment in silviculture	(1,500,000)	0	(1,500,000)	0	0	0
Balance, amount at Feb. 29, 2024	772,096	$ 78,664	74,998	5,009,285	(4,356,124)	(34,727)
Balance, shares at Feb. 29, 2024		78,664,969
Balance, shares at Nov. 30, 2023		78,603,858
Balance, amount at Nov. 30, 2023	1,189,582	$ 78,603	55,000	4,954,346	(3,884,201)	(14,166)
Issuance of shares for cash, shares		61,111
Issuance of shares for cash, amount	0	$ 61	(55,000)	54,939	0	0
Translation gain (loss)	(21,213)	0	0	0	(652)	(20,561)
Net loss	(471,271)	0	0	0	(471,271)	0
Shares issued as stock compensation	74,998	0	74,998	0	0	0
Balance, amount at Feb. 29, 2024	$ 772,096	$ 78,664	$ 74,998	$ 5,009,285	$ (4,356,124)	$ (34,727)
Balance, shares at Feb. 29, 2024		78,664,969

XML

Consolidated Statement of Cash Flow (Unaudited) - USD ($)	9 Months Ended
	Feb. 29, 2024	Feb. 28, 2023
Cash flows from operating activities
Net loss	$ (2,163,366)	$ (646,034)
Adjustments to reconcile net loss to net cash:
Depreciation expense	1,099	824
Amortization of ROU	12,265	0
Loss(Gain) on investment	1,191,890	(13,391)
Changes in operating assets and liabilities:
Accounts receivable	(24,782)	0
Sales tax receivable	19,042	(21,131)
Accounts payable	64,363	25,904
Payroll liabilities	10,535	177
Deferred Revenue	0	0
Due from Silviculture	0	(147,133)
Due to related parties	37,486	14,860
Inventory	(142,899)	(81,471)
Lease Liability	(9,073)	0
Prepaid expenses	(34,708)	2,808
Security deposit	0	(8,296)
Cash used in operating activities	(1,038,148)	(872,883)
Cash flows from investing activities
Acquisition of property and equipment	0	(3,046)
Purchase of equity method investment	(727,409)	0
Cash paid for capital work in progress	0	(280,169)
Cash used in investing activities	(727,409)	(283,215)
Cash flows from financing activities
Proceeds from short term loan	151,644	99,604
Proceeds from issuance of shares and warrants	1,651,838	680,000
Cash flow from financing activities	1,803,482	779,604
Effect of translation changes on cash	(32,605)	1,367
Change in cash and cash equivalents	5,320	(375,127)
Cash, beginning of period	206,820	477,339
Cash, end of period	212,140	102,212
Non cash investing and financing activities
Shares to be issued for the Silviculture investment	0	1,125,000
Write off of Investment in Silviculture	(1,500,000)	0
Supplemental disclosures
Cash paid for interest	0	0
Cash paid for income taxes	$ 0	$ 0

XML

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Feb. 29, 2024

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Note 1 - Basis of Presentation and Significant Accounting Policies

Karbon-X Corp. (“Karbon-X” or the Company”) was incorporated in the State of Nevada under the name Cocoluv,Inc on September 13, 2017 and established a fiscal year end of May 31. 

On February 21, 2022, pursuant to the terms of a Share Exchange Agreement, the Company acquired all of the issued and outstanding shares of common stock of Karbon-X Project Inc. ("Karbon-X"), and Karbon-X became the wholly owned subsidiary of the Company in a reverse acquisition (the "Reverse Acquisition"). Pursuant to the Reverse Acquisition, all of the issued and outstanding shares of Karbon-X common stock were converted, at an exchange ratio of 20,000-for-1, into an aggregate of 20,000,000 shares of the Company's common stock, resulting in Karbon-X becoming a wholly owned subsidiary of the Company and all debt owed to the related party of Cocoluv, Inc. was forgiven. The accompanying financial statements' share information has been retroactively adjusted to reflect the exchange ratio in the Reverse Acquisition.  As part of the Reverse Acquisition, on April 14, 2022 the Company changed its name to Karbon-X Corp.

Under generally accepted accounting principles in the United States ("US GAAP") because the combined entity will be dependent on Karbon-X's senior management, the Reverse Acquisition was accounted for as a recapitalization effected by a share exchange, wherein Karbon-X is considered the acquirer for accounting and financial reporting purposes. On the date of the reorganization, the assets and liabilities of Karbon-X have been brought forward at their book value and consolidated with Cocoluv, Inc.’s assets, which comprised of cash and cash equivalents of $134 and liabilities which comprises due to related party of $99,902 (see Note 1 Basis of Presentation below). No goodwill has been recognized. Accordingly, the assets and liabilities and the historical operations that are reflected in the consolidated financial statements are those of Karbon-X and are recorded at the historical cost basis of Karbon-X.

Going concern

To date the Company has generated minimal revenues from its business operations and has incurred operating losses since inception of $4,356,124. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements present the consolidated balance sheets, statements of operations, stockholders' equity and cash flows of the Company. These consolidated financial statements are presented in the United States dollar and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Sales Tax Receivable

Sales tax receivable consists of the accumulated reclaimable GST paid by the Company on purchases made in Canada. 

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets which are all five years.

Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long-lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Inventory

Inventories are valued at the lower of cost or net realizable value. The Company's inventories are valued under the first in, first out (FIFO) method. Net realizable value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. As of June 1, 2023, the Company changed its inventory policy from weighted average to FIFO, this had no significant impact on the current or prior consolidated financial statements. 

Investments

The Company accounts for investments with a 20% to 50% ownership and a significant, but not controlling influence as equity method investments. Investments with a greater than 50% ownership and a controlling influence are accounted for using the consolidation method. The Company assesses the potential impairment of equity method investments when indicators such as a history of operating losses, negative earnings and cash flow outlook, and the financial condition and prospects for the investee's business segment might indicate a loss in value. The Company previously accounted for its investment in Silviculture Systems using the equity method and its investment in its subsidiary Karbon-X Project, Inc using the consolidation method. During November 2023, the Company abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture.

Fair Value of Financial Instruments

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

• Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

• Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The carrying amount of the Company’s financial assets and liabilities approximate their fair values due to their short-term maturities.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Since ASU 2014-09 was issued, several additional ASUs have been issued to clarify various elements of the guidance. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under ASC 606, the Company recognizes revenue from the commercial sales of carbon credits and consulting services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Rates for consulting services are typically per day, per hour, or a similar basis. Consulting revenue is recognized over the period in which the service is provided.

Revenue for sales of carbon credits is recognized at a point in time when control of the credit transfers to the buyer. The Company acts as a principal in all revenue transactions.

Foreign Currency Translation

The functional currency of the Company is the Canadian Dollar (“CAD”). For financial statement purposes, the reporting currency is the United States Dollar (“USD”).

For financial reporting purposes, the consolidated financial statements are translated into the Company’s reporting currency, USD. Asset, liability and equity accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using the average exchange rate prevailing during the reporting period.

Adjustments resulting from the translation, if any, are included in accumulated other comprehensive loss in stockholder’s equity (deficit).

Warrants

There is estimation uncertainty with respect to selecting inputs to the Black-Sholes model used to determine the fair value of the warrants (Note 7). These inputs include the stock price ranging from $0.50 - $0.25, exercise price ranging from $0.75 - $0.50, time to maturity of two years, annual risk-free interest rate ranging from 2.66% - 4.92%, and annualized volatility ranging from 637.12 % -25.93 %.

The above estimates and assumptions are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant Estimates

Significant estimates applied in the preparation of these financial statements include the estimated useful lives of property and equipment, share volatility and estimated life of options and warrants in determining their fair value as well as the expected potential for the realization of deferred tax assets in determining the amount of the valuation allowance thereto.

Earnings per Common Share

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. As of February 29, 2024, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per share.  

Reclassifications

Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no impact on net earnings, financial position, or cash flows. 

XML

Prepaid Expenses

9 Months Ended

Feb. 29, 2024

Prepaid Expenses

Prepaid Expenses

Note 2 – Prepaid Expenses

As of February 29, 2024 and May 31, 2023, prepaid expenses consisted of the following:

Description	February 29, 2024		May 31, 2023
Prepaid Common Credit Purchase	$	59,939	$	-
Prepaid furniture		-		59,767
Prepaid Advertising Expenses		32,559		-
Other prepaids		1,977		-
Total	$	94,475	$	59,767

XML

Inventory

9 Months Ended

Feb. 29, 2024

Inventory

Inventory

Note 3 – Inventory

Inventory as of February 29, 2024 and May 31, 2023, consisted of the following:

Description	February 29, 2024		May 31, 2023
Carbon Credit Inventory	$	223,649	$	80,750
Total	$	223,649	$	80,750

Carbon credit inventory represents carbon credits currently held for sale. 

XML

Property and Equipment

9 Months Ended

Feb. 29, 2024

Property and Equipment

Property and Equipment

Note 4 - Property and Equipment

The amount of property and equipment as of February 29, 2024 and May 31, 2023, consisted of the following:

Description	February 29, 2024			May 31, 2023
Furniture and fixtures	$	6,626		$	6,607
Computer and equipment		3,715			3,705
Total property cost	$	10,341		$	10,312
Accumulated depreciation		(2,838	)		(1,196	)
Property and equipment, net	$	7,503		$	9,116

The Company made no purchases during the nine months ended February 29,2024 and purchased office chairs and desks the year ended May 31,2023 for $ 6,607. The company also purchased computers during the year ended May 31,2023 for $ 3,705. Depreciation expense, net of translation, for the three months and nine months ended February 29, 2024 was $ 550 and $ 1,650 respectively. Depreciation expense for the nine months ended February 29, 2023 was $824.

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Shareholders Equity

9 Months Ended

Feb. 29, 2024

Shareholders Equity

Shareholders' Equity

Note 5 – Shareholders’ Equity

During the nine months ended February 29, 2024, Karbon-X Corp completed following private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.

During July – September 2023, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended. In that private placement the company sold 3,274,858 shares of common stock at $0.50 per share for gross proceeds of $ 1,637,429, net of expenses related to issuances of $83,993.

On June6, 2023 the Company converted a loan for $100,000 into 200,000 shares at price of $0.50 per share.

During November 2023, the Company sold 50,000 common stock at $2 per unit for total proceeds of $100,000.

During January 2024, the Company revalued the common stock from $2 per unit to $0.90 per unit and issued an additional 61,111 shares.

During the year ended May 31, 2023, the Company executed an agreement to issue shares of Karbon-X Corp for the purchase of up to 80% of Silviculture Systems to be issued in tranches based on completion of milestones. As of August 31, 2023, the Company had agreed to purchase 32% of Silviculture Systems for 6,000,000 shares of Karbon-X Corp shown as shares to be issued for a value of $1,500,000. During November 2023, amidst ongoing disputes which we are currently discussing, the Company has chosen to abandon the silviculture investment deal and write off the carrying value of the Equity Investment in Silviculture. Accordingly, the Company has written of carrying value of Investment of $ 2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $ 1,064,203 in its statement of operations for the three months ended November 30, 2023.

During the six months ended November 30, 2022, Karbon-X Corp. completed a private placement pursuant to Rule 506(c) of the Securities Exchange Act of 1934, as amended.  In that private placement the company sold 720,000 units at $0.25 per unit for total proceeds of $180,000.  Each unit consisted of share of common stock and warrant to purchase a share of common stock for $0.75 per share for a period of two years.

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Convertible Debt

9 Months Ended

Feb. 29, 2024

Convertible Debt

Convertible Debt

Note 6 – Convertible Debt

On February 13, 2024, Karbon-X Corp. issued a convertible debt note to Tyler Skinner or their assigns. The note is for the principal amount of $150,000 and is convertible into common stock of the company at a conversion price of $0.90 per share. The note carries a one-time interest fee of $37,500, which will be converted into common stock at the same conversion price. Any unpaid principal on the note will accrue interest at a rate of eighteen percent (18%) per annum from the due date until paid. The note matures on the earlier of the company raising a minimum of $1,000,000 or one year from the issue date, subject to extension.

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Warrants

9 Months Ended

Feb. 29, 2024

Warrants

Warrants

Note 7 – Warrants

During the nine months ended February 29, 2024, the Company issued 10,400 warrants in connection with one private placement. Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $0.50 with a two year term. The 10,400 units of warrants and shares were issued as a commission fee valued at $2,236.

A detail of warrant activity for the nine months ended February 29, 2024 is as follows:

Description	Number		Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding May 31, 2023		4,140,000	$	0.75		0.33
Exercised		-		-		-
Granted		10,400		0.50		1.67
Expired		-		-		-
Cancelled		-		-		-
Outstanding February 29, 2024		4,150,400	$	0.75		0.34

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Investments

9 Months Ended

Feb. 29, 2024

Investments

Investments

Note 8 – Investments

On May 31, 2023, the Company executed an amended share exchange agreement to buy up to 80% of Silviculture Systems in exchange for cash and shares of Karbon-X Corp valued at $7,250,000. $3,250,000 paid for in shares and the remaining $3,500,000 paid for in cash over the next three years. The issuance of shares was originally intended to occur in tranches upon the completion of milestones. As of November 30, 2023, the Company had paid $999,783 in cash, had rights to a 32% ownership in Silviculture Systems and had a significant, but not controlling interest in Silviculture Systems. The shares related to the 32% ownership are shown have not been issued but are reflected in these financial statements as shares to be issued and were valued at the most recent stock purchase price, at the time of signing, of $0.25 per share. This investment was originally accounted for as an equity method investment and its respective gain/loss for the period has been recorded in the statement of operations.

During November 2023, the Company has abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture. Accordingly, amidst ongoing disputes which we are currently discussing, the Company has written off the carrying value of Investment of  $2,564,203, accumulated value of shares to be issued $ 1,500,000 and recognized loss on write off $1,064,203 in its statement of operations for the three months ended November 30, 2023.

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Capital Work in Progress (Internally Developed Software)

9 Months Ended

Feb. 29, 2024

Capital Work in Progress (Internally Developed Software)

Capital Work in Progress (Internally Developed Software)

Note 9 – Capital Work in Progress (Internally Developed Software)

In accordance with ASC 350-40, the Company has capitalized internally developed software for its development of a mobile application. The software is currently in its application development stage and all related costs are being capitalized as incurred.  Once the software is ready for implementation, the Company will begin amortizing the software over its estimated useful life.  As of February 29, 2024 and May 31, 2023, the Company has capitalized internally developed software of $524,282 and $522,771, respectively.

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Commitments and Contingencies

9 Months Ended

Feb. 29, 2024

Commitments and Contingencies

Commitments and Contingencies

Note 10 – Commitments and Contingencies

Operating Lease 

The Company leases office space from a third party under an operating lease agreement over 40 months which expires in July 2026.The lease also includes the payment of executory costs.

Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our estimated incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components in determining the lease

payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, if applicable. When lease terms include an option to extend the lease, we have not assumed the options will be exercised.

Lease expense for operating leases generally consist of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include agreed-upon changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. We recognized total lease expense of approximately $17,665 for the nine months ended February 29, 2024, primarily related to operating lease costs paid to lessors from operating cash flows. We entered into our operating lease in April 2023 with a term of three years.

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year at February 29, 2024 were as follows:

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES
Year Ended May 31,	Total
2024	$	4,785
2025	$	28,712
2026	$	28,712
2027	$	7,179
Thereafter	$	-
Total lease payment	$	69,388
Less: Imputed Interest	$	(8,157	)
Operating lease liabilities	$	61,231
Operating lease liabilities- Current	$	23,521
Operating lease liabilities- Non-current	$	37,710

In January 2024, a former employee filed a lawsuit against the Company asserting wrongful termination. As of the date of this report, the lawsuit is ongoing. In review of the status with our external counsel, the Company believes there will be a positive outcome and no provision is recorded.

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Subsequent Events

9 Months Ended

Feb. 29, 2024

Subsequent Events

Subsequent Events

Note 11 – Subsequent Events

On March 27, 2024^th Brett Hull and Justin Bourque were issued 41,666 each, as initial compensation as additions to the board of directors.

On April 11, 2024, the Board of Directors of Karbon-X Corp. decided it's in the company's best interest to extend the expiration date on warrants issued as part of its private placements in 2022. The expiration date for all such warrants is extended to May 31, 2024.

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Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Feb. 29, 2024

Basis of Presentation and Significant Accounting Policies

Going Concern

To date the Company has generated minimal revenues from its business operations and has incurred operating losses since inception of $4,356,124. The Company will require additional funding to meet its ongoing obligations and to fund anticipated operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements present the consolidated balance sheets, statements of operations, stockholders' equity and cash flows of the Company. These consolidated financial statements are presented in the United States dollar and have been prepared in accordance with accounting principles generally accepted in the United States.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Sales Tax Receivable

Sales tax receivable consists of the accumulated reclaimable GST paid by the Company on purchases made in Canada. 

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets which are all five years.

Costs of major additions and improvements are capitalized while expenditures for maintenance and repairs, which do not extend the life of the asset, are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation and amortization are eliminated from the accounts and any resulting gain or loss is credited or charged to income. Long-lived assets held and used by us are reviewed based on market factors and operational considerations for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Inventory

Inventories are valued at the lower of cost or net realizable value. The Company's inventories are valued under the first in, first out (FIFO) method. Net realizable value is estimated based on current selling prices. Estimated provisions are established for slow-moving and obsolete inventory. As of June 1, 2023, the Company changed its inventory policy from weighted average to FIFO, this had no significant impact on the current or prior consolidated financial statements. 

Investments

The Company accounts for investments with a 20% to 50% ownership and a significant, but not controlling influence as equity method investments. Investments with a greater than 50% ownership and a controlling influence are accounted for using the consolidation method. The Company assesses the potential impairment of equity method investments when indicators such as a history of operating losses, negative earnings and cash flow outlook, and the financial condition and prospects for the investee's business segment might indicate a loss in value. The Company previously accounted for its investment in Silviculture Systems using the equity method and its investment in its subsidiary Karbon-X Project, Inc using the consolidation method. During November 2023, the Company abandoned the silviculture investment deal and decided to write off the carrying value of the Equity Investment in Silviculture.

Fair Value of Financial Instruments

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

• Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

• Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

• Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The carrying amount of the Company’s financial assets and liabilities approximate their fair values due to their short-term maturities.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Since ASU 2014-09 was issued, several additional ASUs have been issued to clarify various elements of the guidance. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under ASC 606, the Company recognizes revenue from the commercial sales of carbon credits and consulting services by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Rates for consulting services are typically per day, per hour, or a similar basis. Consulting revenue is recognized over the period in which the service is provided.

Revenue for sales of carbon credits is recognized at a point in time when control of the credit transfers to the buyer. The Company acts as a principal in all revenue transactions.

Foreign Currency Translation

The functional currency of the Company is the Canadian Dollar (“CAD”). For financial statement purposes, the reporting currency is the United States Dollar (“USD”).

For financial reporting purposes, the consolidated financial statements are translated into the Company’s reporting currency, USD. Asset, liability and equity accounts are translated using the closing exchange rate in effect at the balance sheet date and income and expense accounts are translated using the average exchange rate prevailing during the reporting period.

Adjustments resulting from the translation, if any, are included in accumulated other comprehensive loss in stockholder’s equity (deficit).

Warrants

There is estimation uncertainty with respect to selecting inputs to the Black-Sholes model used to determine the fair value of the warrants (Note 7). These inputs include the stock price ranging from $0.50 - $0.25, exercise price ranging from $0.75 - $0.50, time to maturity of two years, annual risk-free interest rate ranging from 2.66% - 4.92%, and annualized volatility ranging from 637.12 % -25.93 %.

The above estimates and assumptions are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Significant Estimates

Significant estimates applied in the preparation of these financial statements include the estimated useful lives of property and equipment, share volatility and estimated life of options and warrants in determining their fair value as well as the expected potential for the realization of deferred tax assets in determining the amount of the valuation allowance thereto.

Earnings per Common Share

The basic loss per share is calculated by dividing the Company’s net loss available to common shareholders by the weighted average number of common shares during the year. The diluted loss per share is calculated by dividing the Company’s net loss available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. As of February 29, 2024, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per share.  

Reclassifications

Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no impact on net earnings, financial position, or cash flows. 

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Prepaid Expenses (Table)

9 Months Ended

Feb. 29, 2024

Prepaid Expenses

Schedule of Prepaid Expenses

Description	February 29, 2024		May 31, 2023
Prepaid Common Credit Purchase	$	59,939	$	-
Prepaid furniture		-		59,767
Prepaid Advertising Expenses		32,559		-
Other prepaids		1,977		-
Total	$	94,475	$	59,767

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Inventory (Table)

9 Months Ended

Feb. 29, 2024

Inventory

Schedule of Inventory

Description	February 29, 2024		May 31, 2023
Carbon Credit Inventory	$	223,649	$	80,750
Total	$	223,649	$	80,750

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Property and Equipment (Table)

9 Months Ended

Feb. 29, 2024

Property and Equipment

Schedule of Property and Equipment

Description	February 29, 2024			May 31, 2023
Furniture and fixtures	$	6,626		$	6,607
Computer and equipment		3,715			3,705
Total property cost	$	10,341		$	10,312
Accumulated depreciation		(2,838	)		(1,196	)
Property and equipment, net	$	7,503		$	9,116

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Warrants (Table)

9 Months Ended

Feb. 29, 2024

Warrants

Schedule of Warrants

Description	Number		Weighted average exercise price		Weighted average remaining contractual life (in years)
Outstanding May 31, 2023		4,140,000	$	0.75		0.33
Exercised		-		-		-
Granted		10,400		0.50		1.67
Expired		-		-		-
Cancelled		-		-		-
Outstanding February 29, 2024		4,150,400	$	0.75		0.34

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Commitments and Contingencies (Tables)

9 Months Ended

Feb. 29, 2024

Commitments and Contingencies

Schedule of lease payments

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES
Year Ended May 31,	Total
2024	$	4,785
2025	$	28,712
2026	$	28,712
2027	$	7,179
Thereafter	$	-
Total lease payment	$	69,388
Less: Imputed Interest	$	(8,157	)
Operating lease liabilities	$	61,231
Operating lease liabilities- Current	$	23,521
Operating lease liabilities- Non-current	$	37,710

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Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Feb. 29, 2024	Feb. 28, 2024	Jan. 31, 2024
Issued and outstanding shares of common stock converted, exchange ratio		20,000-for-1
Common stock, shares authorized		20,000,000
Cash and cash equivalents		$ 134
Related party due		99,902
Operating losses		$ 4,356,124
Exercise price	$ 0.50
Minimum [Member]
Ownership percentage		20.00%
Stock price			$ 0.90
Minimum [Member] | Warrant [Member]
Stock price		$ 0.25
Exercise price		$ 0.50
Risk-free interest rate		2.66%
Volatility rate		25.93%
Maximum [Member]
Ownership percentage		50.00%
Stock price			$ 2
Maximum [Member] | Warrant [Member]
Stock price		$ 0.50
Exercise price		$ 0.75
Risk-free interest rate		4.92%
Volatility rate		637.12%

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Prepaid Expenses (Details) - USD ($)	Feb. 29, 2024	May 31, 2023
Prepaid Expenses
Prepaid Common Credit Purchase	$ 59,939	$ 0
Prepaid furniture	0	59,767
Prepaid Advertising Expenses	32,559	0
Other prepaids	1,977	0
Total	$ 94,475	$ 59,767

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Inventory (Details) - USD ($)	Feb. 29, 2024	May 31, 2023
Inventory
Carbon Credit Inventory	$ 223,649	$ 80,750
Total Inventory	$ 223,649	$ 80,750

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Property and Equipment (Details) - USD ($)	Feb. 29, 2024	May 31, 2023
Property and Equipment
Furniture and fixtures	$ 6,626	$ 6,607
Computer and equipment	3,715	3,705
Total property cost	10,341	10,312
Accumulated depreciation	(2,838)	(1,196)
Property and equipment, net	$ 7,503	$ 9,116

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Feb. 29, 2024	Feb. 29, 2024	Feb. 28, 2023
Property and Equipment
Office chairs and desks purchase		$ 6,607
Computer purchase		3,705
Depreciation expense	$ 550	$ 1,650	$ 824

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Shareholders Equity (Details Narrative) - USD ($)		1 Months Ended			3 Months Ended	9 Months Ended
	Jun. 06, 2023	Jan. 31, 2024	Nov. 30, 2023	May 31, 2023	Sep. 30, 2023	Feb. 29, 2024
Additional common stock share Issued		61,111
Private Placement [Member]
Price per share						$ 0.25
Share sold during period						720,000
Proceeds from share sold						$ 180,000
Share of common stock in warrant Desription						Each unit consisted of share of common stock and warrant to purchase a share of common stock for $0.75 per share for a period of two years
Private Placement One [Member]
Price per share	$ 0.50		$ 2
Share sold during period			50,000		3,274,858
Proceeds from share sold			$ 100,000		$ 1,637,429
Net of expenses related to issuances					$ 83,993
Minimum [Member]
Price per share		$ 0.90
Converted loan	$ 100,000
Maximum [Member]
Price per share		$ 2
Converted loan	$ 200,000
Silviculture System [Member]
Recognized loss on write off investments						$ 1,064,203
Accumulated value of shares to be issued						1,500,000
Written of carrying value of Investment						$ 2,564,203
Description related to agreement of issue share				the Company executed an agreement to issue shares of Karbon-X Corp for the purchase of up to 80% of Silviculture Systems to be issued in tranches based on completion of milestones. As of August 31, 2023, the Company had agreed to purchase 32% of Silviculture Systems for 6,000,000 shares of Karbon-X Corp shown as shares to be issued for a value of $1,500,000.

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Convertible Debt (Details Narratives)	Feb. 13, 2024 USD ($) $ / shares
Convertible Debt
Principal amount	$ 150,000
Conversion price | $ / shares	$ 0.90
Interest fee	$ 37,500
Interest rate	18.00%
Convertible debt note	$ 1,000,000

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Warrants (Details)	9 Months Ended
	Feb. 29, 2024 $ / shares shares
Warrants
Outstanding, beginning balance | shares	4,140,000
Granted | shares	10,400
Outstanding, ending balance | shares	4,150,400
Weighted average exercise price, beginning balance	$ 0.75
Weighted average exercise price, Exercised	0
Weighted average exercise price, Granted	0.50
Weighted average exercise price, expired	0
Weighted average exercise price, Cancelled	0
Weighted average exercise price, ending balance	$ 0.75
Weighted average remaining contractual life (in years), beginning balance	3 months 29 days
Weighted average remaining contractual life (in years), granted	1 year 8 months 1 day
Weighted average remaining contractual life (in years), ending balance	4 months 2 days

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Warrants (Details Narratives)	9 Months Ended
	Feb. 29, 2024 USD ($) $ / shares shares
Warrants
Warrants | shares	10,400
Warrant exercise price | $ / shares	$ 0.50
Warrant value | $	$ 2,236

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Investments (Details Narratives) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2023	Nov. 30, 2023
Share executed exchange of share	80.00%
Share executed exchange of share amount value	$ 7,250,000
Silviculture System [Member]
Stock purchase price per share		$ 0.25
Cash		$ 999,783
Owenship		32.00%
Joint Venture [Member]
share exchange agreement	$3,250,000 paid for in shares and the remaining $3,500,000 paid for in cash over the next three years.
Loss on write off		$ 1,064,203
Investment written off		2,564,203
Shares issued value		$ 1,500,000

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Capital Work in Progress (Internally Developed Software) (Details Narrative) - USD ($)	Feb. 29, 2024	May 31, 2023
Capital Work in Progress (Internally Developed Software)
Software development cost	$ 524,282	$ 522,771

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Commitments and Contingencies (Details) - USD ($)	Feb. 29, 2024	May 31, 2023
Commitments and Contingencies
2024	$ 4,785
2025	28,712
2026	28,712
2027	7,179
Thereafter	0
Total lease payment	69,388
Less: Imputed interest	(8,157)
Operating lease liabilities	61,231
Operating lease liability - current	23,521	$ 14,688
Operating lease liability - non-current	$ 37,710	$ 55,415

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Commitments and Contingencies (Details Narrative)	9 Months Ended
	Feb. 29, 2024 USD ($)
Commitments and Contingencies
Total lease expense	$ 17,665

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Subsequent Events (Details Narrative)	Mar. 27, 2024 shares
Subsequent Event [Member]
Share issued to directors	41,666