Base Carbon Inc. (Cboe CA: BCBN) reported a second-quarter 2026 loss per share of $0.02, driven by ongoing project development costs across its portfolio in Rwanda, Vietnam, and India. The company ended the quarter with total assets of $103.4 million, including $2.3 million in cash and cash equivalents.

The most significant operational development was the confirmation that all approximately 0.9 million carbon credits held from the Rwanda cookstoves project are now designated as CORSIA-eligible. This follows the Government of Rwanda’s submission of its Biennial Transparency Report (BTR) and subsequent tagging by Verra. During the quarter, Base Carbon received approximately $0.4 million in cash proceeds from sales of these credits, with an additional $1.9 million received subsequent to quarter-end.

Financial Position

The company’s balance sheet reflects a reduction in total assets from $108.9 million at year-end 2025 to $103.4 million in June 2026. Total liabilities decreased to $7.7 million from $8.4 million, while shareholders’ equity stood at $95.7 million.

What the Numbers Show

A notable shift in asset composition occurred during the quarter. While carbon credit inventory decreased by approximately $7.1 million (from $21.2 million to $14.1 million), current investment in carbon credit projects more than doubled, rising from $11.0 million to $25.4 million. This divergence suggests capital is being actively deployed into new or expanding project phases rather than held as finished inventory, aligning with management’s comments on continued execution in Vietnam and India.

Project Updates

Vietnam Compliance Pathway The Government of Vietnam enacted Decree No. 112/2026/ND-CP on May 19, 2026. This decree establishes the regulatory framework for authorizing international transfers of carbon credits under Article 6 of the Paris Agreement. Base Carbon estimates its Vietnam household devices project could generate approximately 16.1 million carbon credits eligible for international transfer, subject to governmental approvals and expansion rights.

India ARR Project The India Afforestation, Reforestation, and Revegetation (ARR) project remains on track for first carbon credit issuance in 2027. The company continues data collection and verification work under Verra’s VM0047 methodology and is preparing for the 2026 replanting season.

Capital Allocation

Base Carbon renewed its Normal Course Issuer Bid (NCIB) on June 23, 2026, authorizing the repurchase of up to 6.3 million common shares. Since the program’s inception, the company has repurchased approximately 27.5 million shares, representing 22% of shares outstanding at that time. Management indicated it intends to continue utilizing the NCIB in a value-accretive manner.

An investor town hall is scheduled for September to provide further business updates.

Base Carbon Inc. announced that Verra has completed the tagging of all 342,356 remaining carbon credits held in its inventory from the Rwanda cookstoves project as CORSIA-eligible. This development significantly increases the Company-held CORSIA-eligible carbon credits available to serve the international aviation compliance market. At the time of tagging, Base Carbon holds approximately 1.1 million CORSIA-eligible carbon credits, all subject to the project agreement and revenue-sharing arrangement with DelAgua Group.

EU CORSIA Proposal and Market Impact

On July 17, 2026, the European Commission published proposed reforms to the European Union Emissions Trading System (EU ETS) which embed the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) into EU law through 2035. Under the proposal, CORSIA would remain the sole compliance framework for all flights departing the European Economic Area (EEA) during 2027 and 2028. The EU Phase 1 demand for CORSIA carbon credits alone is anticipated to reach at least 29 million credits, representing approximately 70% of the current global supply of the estimated 40 million CORSIA Phase 1 carbon credits tagged to date.

CORSIA-eligible carbon credit pricing has strengthened materially in recent weeks. The spot price of the ICE Dec-26 CP1 futures contract has increased approximately 39% since June 30, 2026. The proposal confirms that no additional eligibility requirements will be imposed on CORSIA Phase 1 carbon credits beyond those established through CORSIA's existing framework.

Rwanda Cookstoves Project Details

The Rwanda cookstoves project was developed in partnership with the DelAgua Group. Base Carbon and DelAgua are in the process of securing the insurance required to tag approximately 640,000 previously issued, untagged carbon credits held by DelAgua as CORSIA-eligible, which are subject to the revenue-sharing arrangement between the Company and DelAgua. Upon completion of the insurance process and satisfaction of applicable requirements, these carbon credits are expected to be tagged by Verra as CORSIA-eligible.

Going forward, the Rwanda cookstoves project is anticipated to generate approximately 2.6 million additional carbon credits on regular 6-month intervals during the remainder of the project’s crediting period, all of which the Company expects to become CORSIA-eligible.