Nevada
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98-0163519
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification
No.)
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Large
accelerated filer o
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Accelerated
filer o
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Non-accelerated
filer o
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Smaller
reporting company T
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Page
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PART
I - FINANCIAL INFORMATION
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Item
1. Financial Statements
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INTEGRAL
TECHNOLOGIES, INC.
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(A
Development Stage Company)
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Consolidated
Financial Statements
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September
30, 2008
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(U.S.
Dollars)
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(Unaudited)
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F-1
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F-2
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F-3
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F-4
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F-5
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1
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3
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3
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PART
II - OTHER INFORMATION
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3
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3
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3
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3
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3
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3
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4
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4
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September
30,
2008
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June
30,
2008
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|||||||
Assets
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||||||||
Current
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||||||||
Cash
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$ | 760,043 | $ | 1,104,104 | ||||
Prepaid
expenses
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24,794 | 30,575 | ||||||
Total
Assets
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$ | 784,837 | $ | 1,134,679 | ||||
Liabilities
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||||||||
Current
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||||||||
Accounts
payable and accruals
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$ | 684,304 | $ | 707,848 | ||||
Total
Current Liabilities
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684,304 | 707,848 | ||||||
Stockholders’
Equity
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||||||||
Preferred Stock and Paid-in
Capital in Excess of $0.001 Par Value 20,000,000 Shares
authorized 308,538 (June 30, 2008 - 308,538) issued and
outstanding
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308,538 | 308,538 | ||||||
Common Stock and Paid-in
Capital in Excess of $0.001 Par Value 50,000,000 Shares
authorized 45,754,969 (June 30, 2008 - 45,704,969) issued and
outstanding
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29,294,687 | 29,219,711 | ||||||
Promissory
Notes Receivable
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(29,737 | ) | (29,737 | ) | ||||
Subscriptions
Received
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267,000 | 276,500 | ||||||
Other
Comprehensive Income
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46,267 | 46,267 | ||||||
Deficit
Accumulated During the Development Stage
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(29,786,222 | ) | (29,394,448 | ) | ||||
Total
Stockholders’ Equity
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100,533 | 426,831 | ||||||
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Total
Liabilities and Stockholders’ Equity
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$ | 784,837 | $ | 1,134,679 |
Three
Months Ended
September
30,
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Period
from February 12, 1996 (Inception) to
September
30,
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|||||||||||
2008
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2007
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2008
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Revenue
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$ | 0 | $ | 0 | $ | 249,308 | ||||||
Cost
of Sales
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0 | 0 | 216,016 | |||||||||
0 | 0 | 33,292 | ||||||||||
Other
Income
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3,862 | 23,498 | 860,958 | |||||||||
3,862 | 23,498 | 894,250 | ||||||||||
Expenses
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||||||||||||
Legal
and accounting
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48,013 | 64,130 | 4,187,808 | |||||||||
Salaries
and benefits
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158,558 | 141,000 | 9,260,650 | |||||||||
Consulting
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72,570 | 69,139 | 6,336,972 | |||||||||
Travel
and entertainment
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15,263 | 20,820 | 1,318,609 | |||||||||
General
and administrative
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19,298 | 21,233 | 1,131,937 | |||||||||
Telephone
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5,263 | 8,262 | 439,565 | |||||||||
Rent
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12,182 | 10,389 | 456,682 | |||||||||
Bank
charges and interest, net
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2,344 | 101 | 204,542 | |||||||||
Advertising
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1,591 | 0 | 332,861 | |||||||||
Research
and development
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56,694 | 41,123 | 1,297,597 | |||||||||
Settlement
of lawsuit
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0 | 0 | 45,250 | |||||||||
Remuneration
pursuant to proprietary, non-competition agreement
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0 | 0 | 711,000 | |||||||||
Financing
fees
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0 | 0 | 129,043 | |||||||||
Write-off
of investments
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0 | 0 | 1,250,000 | |||||||||
Interest
on beneficial conversion feature
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0 | 0 | 566,456 | |||||||||
Write-down
of license and operating assets
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0 | 0 | 1,855,619 | |||||||||
Bad
debts
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0 | 0 | 46,604 | |||||||||
Amortization
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0 | 0 | 324,386 | |||||||||
391,776 | 376,197 | 29,895,581 | ||||||||||
Net
Loss for Period
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$ | (387,914 | ) | $ | (352,699 | ) | $ | (29,001,331 | ) | |||
Net
Loss Per Common Share
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$ | (0.01 | ) | $ | (0.01 | ) | ||||||
Weighted
Average Number of Common Shares Outstanding
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45,714,969 | 45,514,969 |
Shares
of
Common
Stock
Issued
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Common
Stock
and
Paid-in
Capital
in
Excess
of
Par
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Shares
of
Preferred
Stock
Issued
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Preferred
Stock
and
Paid-in
Capital
in
Excess
of
Par
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Promissory
Notes
Receivable
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Share
Subscriptions
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Other
Comprehensive
Income
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Deficit
Accumulated
During
the
Development
Stage
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Total
Stockholders'
Equity
(Deficit)
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||||||||||||||||||||||||||||
Balance,
June 30, 2007
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45,514,969 | $ | 28,762,772 | 308,538 | $ | 308,538 | $ | (29,737 | ) | $ | 0 | $ | 46,267 | $ | (27,440,805 | ) | $ | 1,647,035 | ||||||||||||||||||
Shares
Issued for
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||||||||||||||||||||||||||||||||||||
Exercise
of warrants
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190,000 | 208,995 | 0 | 0 | 0 | 0 | 0 | 0 | 208,995 | |||||||||||||||||||||||||||
Subscription
received
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0 | 0 | 0 | 0 | 0 | 276,500 | 0 | 0 | 276,500 | |||||||||||||||||||||||||||
Dividends
on preferred shares
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0 | 0 | 0 | 0 | 0 | 0 | 0 | (15,427 | ) | (15,427 | ) | |||||||||||||||||||||||||
Stock
option compensation
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0 | 247,944 | 0 | 0 | 0 | 0 | 0 | 0 | 247,944 | |||||||||||||||||||||||||||
Net
loss for year
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0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,938,216 | ) | (1,938,216 | ) | |||||||||||||||||||||||||
Balance,
June 30, 2008
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45,704,969 | $ | 29,219,711 | 308,538 | $ | 308,538 | $ | (29,737 | ) | $ | 276,500 | $ | 46,267 | $ | (29,394,448 | ) | $ | 426,831 | ||||||||||||||||||
Shares
Issued for
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||||||||||||||||||||||||||||||||||||
Past
services (note 2(a))
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50,000 | 46,500 | 0 | 0 | 0 | (46,500 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||
Subscription
received
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0 | 0 | 0 | 0 | 0 | 37,000 | 0 | 0 | 37,000 | |||||||||||||||||||||||||||
Dividends
on preferred shares
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0 | 0 | 0 | 0 | 0 | 0 | 0 | (3,860 | ) | (3,860 | ) | |||||||||||||||||||||||||
Stock
option compensation
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0 | 28,476 | 0 | 0 | 0 | 0 | 0 | 0 | 28,476 | |||||||||||||||||||||||||||
Net
loss for period
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0 | 0 | 0 | 0 | 0 | 0 | 0 | (387,914 | ) | (387,914 | ) | |||||||||||||||||||||||||
Balance,
September 30, 2008
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45,754,969 | $ | 29,294,687 | 308,538 | $ | 308,538 | $ | (29,737 | ) | $ | 267,000 | $ | 46,267 | $ | (29,786,222 | ) | $ | 100,533 |
Three
Months Ended
September
30,
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Period
from
February
12,
1996
(Inception)
to
September
30,
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|||||||||||
2008
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2007
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2008
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||||||||||
Operating
Activities
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Net
loss
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$ | (387,914 | ) | $ | (352,699 | ) | $ | (29,001,331 | ) | |||
Items
not involving cash
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Write-down
of investment
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0 | 0 | 1,250,000 | |||||||||
Proprietary,
non-competition agreement
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0 | 0 | 711,000 | |||||||||
Amortization
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0 | 0 | 349,941 | |||||||||
Other
income
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0 | 0 | (658,305 | ) | ||||||||
Consulting
services and financing fees
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0 | 0 | 1,523,783 | |||||||||
Stock
option compensation
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28,476 | 0 | 5,742,770 | |||||||||
Interest
on beneficial conversion feature
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0 | 0 | 566,456 | |||||||||
Settlement
of lawsuit
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0 | 0 | 60,250 | |||||||||
Write-down
of license and operating assets
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0 | 0 | 1,853,542 | |||||||||
Bad
debts
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0 | 0 | 77,712 | |||||||||
Changes
in Non-Cash Working Capital
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Due
from affiliated company
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0 | 0 | (116,000 | ) | ||||||||
Notes
and account receivable
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0 | 0 | (109,213 | ) | ||||||||
Inventory
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0 | 0 | (46,842 | ) | ||||||||
Prepaid
expenses
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5,781 | 2,043 | (24,794 | ) | ||||||||
Other
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0 | 0 | (2,609 | ) | ||||||||
Accounts
payable and accruals
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(27,404 | ) | 5,377 | 953,444 | ||||||||
Cash
Used in Operating Activities
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(381,061 | ) | (345,279 | ) | (16,870,196 | ) | ||||||
Investing
Activities
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||||||||||||
Purchase
of property, equipment and intangible assets
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0 | 0 | (200,935 | ) | ||||||||
Assets
acquired and liabilities assumed on purchase of subsidiary
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0 | 0 | (129,474 | ) | ||||||||
Investment
purchase
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0 | 0 | (2,000,000 | ) | ||||||||
License
agreement
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0 | 0 | (124,835 | ) | ||||||||
Cash
Used in Investing Activities
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0 | 0 | (2,455,244 | ) | ||||||||
Financing
Activities
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Redemption
of preferred shares
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0 | 0 | (50,000 | ) | ||||||||
Repayment
of loan
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0 | 0 | (11,000 | ) | ||||||||
Repayments
to stockholders
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0 | 0 | (91,283 | ) | ||||||||
Proceeds
from Issuance of common stock
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0 | 0 | 18,200,470 | |||||||||
Advances
from stockholders
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0 | 0 | 1,078,284 | |||||||||
Share
issue cost
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0 | 0 | (227,420 | ) | ||||||||
Subscriptions
received
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37,000 | 0 | 540,165 | |||||||||
Proceeds
from convertible debentures
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0 | 0 | 600,000 | |||||||||
Cash
Provided by Financing Activities
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37,000 | 0 | 20,039,216 | |||||||||
Effect
of Foreign Currency Translation on Cash
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0 | 0 | 46,267 | |||||||||
Inflow
(Outflow) of Cash
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(344,061 | ) | (345,279 | ) | 760,043 | |||||||
Cash,
Beginning of Period
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1,104,104 | 2,240,356 | 0 | |||||||||
Cash,
End of Period
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$ | 760,043 | $ | 1,895,077 | 760,043 |
1.
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BASIS
OF PRESENTATION
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2.
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STOCKHOLDERS’
EQUITY
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(a)
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Common
stock
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(b)
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Stock
based compensation
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Expected
life (years)
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1 | |||
Interest
rate
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4.19 | % | ||
Volatility
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81.80 | % | ||
Dividend
yield
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0.00 | % | ||
Forfeiture
rate
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0.00 | % |
2.
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STOCKHOLDERS’ EQUITY
(Continued)
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(c)
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Subscriptions
received
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31.1
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Certification
by Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a)
of the Exchange Act
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31.2
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Certification
by Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a)
of the Exchange Act
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32.1
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Certification
by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b)
of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the
United States Code
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32.2
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Certification
by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b)
of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the
United States Code
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Integral
Technologies, Inc.
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By:
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/s/ William S. Robinson
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William
S. Robinson, Chief Executive Officer and Principal Executive
Officer
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By:
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/s/ William A. Ince
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William
A. Ince, Chief Financial Officer and Principal Accounting
Officer
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Certification
by Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a)
of the Exchange Act
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Certification
by Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a)
of the Exchange Act
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Certification
by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b)
of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the
United States Code
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Certification
by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b)
of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the
United States Code
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