Integral Acquisition 1(INTE) - 2022 Q3 - Quarterly Report

Financial Position - As of September 30, 2022, the company had approximately $0.8 million in its operating bank account and working capital of approximately $1.1 million[130]. - The company has no long-term debt obligations or capital lease obligations as of the reporting date[140]. - The net proceeds from the IPO have been invested in U.S. government treasury bills or money market funds, minimizing exposure to interest rate risk[164]. Income and Loss - For the three months ended September 30, 2022, the company reported a net income of $78,861, consisting of trust interest income of $391,582, offset by operating costs of $240,378[137]. - For the nine months ended September 30, 2022, the company incurred a net loss of $1,395,455, which included operating costs of $780,468 and an unrealized loss of $1,033,639[138]. - The company has not generated any revenues since its inception on February 16, 2021, and has engaged in limited operations[163]. IPO and Financing - The company completed its initial public offering (IPO) on November 5, 2021, raising gross proceeds of $115 million from the sale of 11,500,000 units at $10.00 per unit[125]. - The company generated gross proceeds of $4,950,000 from the private sale of 4,950,000 warrants at a purchase price of $1.00 per warrant[126]. - Offering costs associated with the IPO amounted to $10,757,787, including $2,000,000 in underwriting commissions and $6,050,000 in deferred underwriting commissions[155]. - The underwriters are entitled to deferred underwriting commissions of $6,050,000, payable only upon the completion of an initial business combination[146]. - Anchor Investors purchased approximately $60.8 million of units in the IPO at the public offering price[147]. Business Operations and Strategy - The company has not commenced any operations and has not generated any revenues to date, with non-operating income expected to come from interest on cash held in the Trust Account[136]. - The company has until May 5, 2023, to consummate a business combination, after which it will face mandatory liquidation if unsuccessful[132]. - Management identified material weaknesses in disclosure controls and procedures, particularly in fair value calculations and unrecorded liabilities[167]. - The company plans to enhance internal controls and procedures over time to address identified weaknesses[168]. Future Outlook and Growth - The company provided a future outlook with a revenue guidance of $100 billion for the next quarter, representing a 5% increase[110]. - New product launches are expected to contribute an additional $10 billion in revenue over the next fiscal year[110]. - Market expansion efforts in Asia are projected to increase market share by 10% over the next two years[110]. - The company completed a strategic acquisition for $2 billion to enhance its software capabilities[110]. Performance Metrics - The company reported a revenue of $96.77 billion in the September quarter, setting a record for iPhone sales[110]. - User data showed a growth of 15% year-over-year in active devices, reaching 1.5 billion[110]. - Gross margin improved to 38%, up from 36% in the previous quarter[110]. - Operating expenses were reduced by 4%, totaling $15 billion for the quarter[110]. - The company announced a new strategy to enhance customer engagement, aiming for a 20% increase in customer retention rates[110]. - The company invested $5 billion in R&D for new technologies, focusing on AI and machine learning[110]. Forward Purchase Agreements - The forward purchasers, Crescent Park and Carnegie Park, have agreed to purchase up to 2,500,000 and 500,000 shares of Class A common stock, respectively, at $10.00 per share, potentially generating gross proceeds of up to $30,000,000[149]. - The price for forward purchase shares may be reduced to $9.20 per share under certain conditions, affecting the total proceeds[150]. - The company has issued 3,000,000 forward purchase shares, classified as a liability at fair value, subject to re-measurement at each balance sheet date[156]. - All 11,500,000 common stock sold in the IPO contain a redemption feature, requiring classification outside of permanent equity[157]. Administrative Costs - Total administrative fees for the three and nine months ended September 30, 2022, were $60,000 and $160,000, respectively[141].