Concentrations |
3 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Concentrations | |
| Concentrations | Note 22 – Concentrations
Revenue. For the three months ended August 31, 2026, $336,294, or 97.8%, of consolidated revenue was earned by Karbon-X Project Inc., the Company’s Canadian subsidiary. No revenue was earned by Karbon-X Trading Limited, the Cyprus subsidiary that accounted for 85.7% of consolidated revenue in fiscal 2026, because the industrial carbon credit trading conducted through that subsidiary did not recur in the quarter.
Trade receivables. At August 31, 2026 one customer accounted for $540,000, or approximately 99%, of trade accounts receivable, arising from the development-cost advance invoiced under the ABC Mangrove Senegal offtake contract on July 28, 2026 (Note 9); the balance was current at that date and the corresponding amount is included in deferred revenue. The Company performs ongoing credit evaluations of its customers, does not require collateral, and has recognized no allowance for credit losses on trade receivables at August 31, 2026 or May 31, 2026.
Cash. The Company maintains cash with financial institutions in Canada, the United States, Cyprus, Ireland, Spain and Colombia. Balances may from time to time exceed amounts insured by the relevant deposit insurance schemes. The Company has not experienced any losses on such balances. Long-lived assets, comprising property and equipment and right-of-use assets, were held in Canada and Colombia; the Company held no long-lived assets in the United States, its country of domicile. |