In a small skillet, cook coconut over medium heat, stirring constantly until lightly toasted. Remove from heat and let cool slightly.

Process coconut and sugar in a food processor until the mixture resembles large crumbs. Place in a shallow bowl; set aside.

Place chocolate chips in a heat-proof bowl. In a saucepan, bring cream and coconut extract to a simmer over low heat. Pour over chocolate chips. Stir until chocolate is completely melted and blended in. Let the mixture cool until it is just slightly warm to the touch.

Add butter, stirring until melted and well blended. Cover with plastic wrap and refrigerate for at least 1 hour.

Scoop chocolate mixture by teaspoonfuls and roll into balls. Roll each ball in coconut coating and place on a cookie sheet covered with waxed paper or parchment paper. Cover with plastic wrap and refrigerate until firm.