☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware |
86-2148394 |
|
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
||
Units, each consisting of one share of Class A Common Stock and one-half of one redeemable Warrant |
INTEU |
The Nasdaq Stock Market LLC |
||
Class A Common Stock, par value $0.0001 per share |
INTE |
The Nasdaq Stock Market LL C |
||
Warrants, each exercisable for one share of Class A Common Stock for $11.50 per share |
INTEW |
The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
INTEGRAL ACQUISITION CORPORATION 1
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS
i
GLOSSARY OF TERMS
Unless otherwise stated in this Report (as defined below), or the context otherwise requires, references to:
• | “Amended and Restated Certificate of Incorporation” are to the amended and restated certificate of incorporation of the Company (as defined below) currently in effect, as amended; |
• | “Anchor Investors” are to certain qualified institutional buyers or institutional accredited investors (none of which are affiliated with any member of the Management (as defined below), the Sponsor (as defined below) or any other anchor investor; |
• | “ASC” are to the FASB (as defined below) Accounting Standards Codification; |
• | “ASC 260” are to ASC Topic 260, “Earnings Per Share”; |
• | “ASC 405” are to ASC Topic 405, “Liabilities”; |
• | “ASC 480” are to ASC Topic 480, “Distinguishing Liabilities from Equity”; |
• | “ASC 740” are to ASC Topic 740, “Income Taxes”; |
• | “ASC 815” are to ASC Topic 815, “Derivatives and Hedging”; |
• | “ASC 820” are to ASC Topic 820, “Fair Value Measurements and Disclosures”; |
• | “ASU” are to the FASB Accounting Standards Update; |
• | “ASU 2014-15” are to the ASU Topic 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”; |
• | “Board of Directors,” “Board” or “Directors” are to the board of directors of the Company; |
• | “Business Combination” are to a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses; |
• | “Carnegie Park” are to Carnegie Park Capital LLC; |
• | “Charter Amendment Proposals” are to the Founder Share Amendment Proposal (as defined below) and the Second Extension Amendment Proposal (as defined below); |
• | “Class A Common Stock” are to the shares of Class A common stock of the Company, par value $0.0001 per share; |
• | “Class B Common Stock” are to the shares of Class B common stock of the Company, par value $0.0001 per share; |
• | “Combination Period” are to the 36-month period, from the closing of the Initial Public offering (as defined below) to November 5, 2023 (or such earlier date as determined by the Board) as extended by the Second Extension (as defined below), unless further extended pursuant to the Amended and Restated Certificate of Incorporation, that the Company has to consummate an initial Business Combination; |
• | “Common stock” are to the Class A Common Stock and the Class B Common Stock; |
• | “Company,” “our”, “we” or “us” are to Integral Acquisition Corporation 1, a Delaware corporation; |
• | “Continental” are to Continental Stock Transfer & Trust Company, trustee of our Trust Account (as defined below) and warrant agent of our Public Warrants (as defined below); |
• | “Crescent Park” are to Crescent Park Management, L.P.; |
• | “Exchange Act” are to the Securities Exchange Act of 1934, as amended; |
ii
• | “Excise Tax” are to the new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023; |
• | “FASB” are to the Financial Accounting Standards Board; |
• | “FB Parent” are to FB Parent Limited, a limited company incorporated under the laws of England and Wales; |
• | “Flybondi” are to Flybondi Limited, a limited company incorporated under the laws of England and Wales; |
• | “Flybondi Business Combination” are to the transactions contemplated by the Flybondi Business Combination Agreement (as defined below); |
• | “Flybondi Business Combination Agreement” are to the Business Combination Agreement, dated as of October 19, 2023, by and among the Company, Flybondi, FB Parent, Merger Sub (as defined below) and Signing Sellers (as defined below); |
• | “Flybondi Registration Statement” are to the Registration Statement on Form F-4, which will include a proxy statement/prospectus prepared by the Company, Flybondi and FB Parent, to be filed by FP Parent with the SEC in connection with the FlyBondi Business Combination; |
• | “FPA” or “FPAs” are to the (i) forward purchase agreement, dated August 23, 2023, by and between the Company and Crescent Park and (ii) forward purchase agreement, dated August 23, 2023, by and between the Company and Carnegie Park, individually or collectively; |
• | “FPA Holder” are to a holder of a FPA Share (as defined below); |
• | “FPA Shares” are to the shares of Class A Common Stock to be purchased by the Forward Purchasers; |
• | “First Extension” are to the extension of the date by which the Company must consummate its initial Business Combination from May 5, 2023 to November 3, 2023 (or such earlier date as determined by the Board), as approved by the stockholders at the First Special Meeting (as defined below); |
• | “First Extension Amendment Proposal” are to a proposal at the First Special Meeting to approve an amendment to the Amended and Restated Certificate of Incorporation to extend the date by which the Company must consummate its initial Business Combination from May 5, 2023 to November 3, 2023 (or such earlier date as determined by the Board); |
• | “First Extension Promissory Note” are to the promissory note issued on May 8, 2023 by the Company to the Sponsor in an amount of up to $630,000 to be deposited into the Trust Account ($105,000 per month following the 5th of each month from May 8, 2023 through November 3, 2023) in connection with the First Extension; |
• | “First Nasdaq Notice” are to the deficiency notice from Nasdaq received by the Company on June 28, 2023; |
• | “First Special Meeting” are to the special meeting of the stockholders of the Company held on May 3, 2023; |
• | “Forward Purchaser” or “Forward Purchasers” are to Carnagie Park and Crescent Park, individually or collectively; |
• | “Founder Shares” are to the shares of Class B Common Stock initially purchased by our Sponsor in the Private Placement (as defined below) and the shares of Class A Common Stock that (i) will be issued upon the automatic conversion of the shares of Class B Common Stock at the time of our Business Combination as described herein and (ii) are held by the Sponsor following the Founder Share Conversion (as defined below) (for the avoidance of doubt, such Class A Common Stock will not be “Public Shares” (as defined below)); |
• | “Founder Share Conversion” are to the election of the Sponsor, on November 3. 2023, to convert 2,824,999 shares of outstanding Class B Common Stock on a one-for-one basis into shares of Class A Common Stock, with immediate effect; |
• | “Founder Share Amendment Proposal” are to a proposal at the Second Special Meeting to approve an amendment to the Amended and Restated Certificate of Incorporation to grant a holder of shares of Class B common stock the right to convert such shares into shares of Class A common stock on a one-for-one basis prior to the closing of a Business Combination; |
• | “GAAP” are to the accounting principles generally accepted in the United States of America; |
• | “Initial Public Offering” or “IPO” are to the initial public offering that was consummated by the Company on November 2, 2021; |
• | “Initial Stockholders” are to holders of our Founder Shares prior to our Initial Public Offering; |
• | “Investment Company Act” are to the Investment Company Act of 1940, as amended; |
iii
• | “IPO Promissory Note” are to the promissory note issued by the Company to the Sponsor in advance of the IPO; |
• | “IR Act” are to the Inflation Reduction Act of 2022; |
• | “JOBS Act” are to the Jumpstart Our Business Startups Act of 2012; |
• | “Joining Sellers” are to other holders of Flybondi’s outstanding shares and/or options that join the FlyBondi Business Combination Agreement by delivering a Seller Joinder (as defined below) after the date of the Flybondi Business Combination Agreement; |
• | “J.V.B” are to J.V.B. Financial Group, LLC; |
• | “Management” are to the Company’s executive officers and directors; |
• | “Market Value Standard” are to Nasdaq Listing Rule 5450(b)(2)(A); |
• | “Merger Sub” are to Gaucho MS, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of FB Parent; |
• | “Minimum Total Holders Rule” are to Nasdaq Listing Rule 5450(a)(2); |
• | “MVLS” are to the market value of listed securities; |
• | “Nasdaq” are to the Nasdaq Global Market; |
• | “Nasdaq Compliance Period” are to a period of 180 calendar days, from June 28, 2023 until December 26, 2023; |
• | “PIPEs” are to private placements of the Class A Common Stock that occur on or prior to the date of the initial Business Combination; |
• | “Private Placement” are to the Private Placement of Warrants (as defined below) that occurred simultaneously with the closing of our Initial Public Offering; |
• | “Private Placement Warrants” are to the warrants issued to our Sponsor in the Private Placement; |
• | “Public Shares” are to the shares of Class A Common Stock sold in our Initial Public Offering as part of the Units (as defined below) (whether they were purchased in our Initial Public Offering or thereafter in the open market); |
• | “Public Stockholders” are to the holders of our Public Shares, including our Initial Stockholders and Management to the extent our Initial Stockholders and/or members of Management purchase Public Shares, provided that each Initial Stockholder’s and member of Management’s status as a “Public Stockholder” will only exist with respect to such Public Shares; |
• | “Registration Statement” are to the Registration Statement on Form S-1 initially filed with the SEC (as defined below) on June 14, 2021, as amended, and declared effective on November 2, 2021 (File No. 333- 257058); |
• | “Report” are to this Quarterly Report on Form 10-Q for the quarter ended September 30, 2023; |
• | “Sarbanes-Oxley Act” are to the Sarbanes-Oxley Act of 2002; |
• | “SEC” are to the U.S. Securities and Exchange Commission; |
• | “Second Extension” are to the extension of the date by which the Company must consummate its initial Business Combination from November 3, 2023 to November 5, 2024 (or such earlier date as determined by the Board of Directors), as approved by the stockholders at the Second Special Meeting (as defined below); |
• | “Second Extension Amendment Proposal” are to a proposal at the Second Special Meeting to approve an amendment to the Amended and Restated Certificate of Incorporation to extend the date by which the Company must consummate its initial Business Combination from November 3, 2023 to November 5, 2024 (or such earlier date as determined by the Board); |
• | “Second Extension Promissory Note” are to the promissory note issued on November 8, 2023 by the Company to the Sponsor in an amount of up to $359,503 to be deposited into the Trust Account ($29,959 per month following the 5th of each month from November 8, 2023 through November 5, 2024) in connection with the Second Extension. |
• | “Second Nasdaq Notice” are to the deficiency notice from Nasdaq received by the Company on October 24, 2023; |
iv
• | “Second Special Meeting” are to the special meeting in lieu of an annual meeting of the stockholders of the Company held on November 2, 2023; |
• | “Securities Act” are to the Securities Act of 1933, as amended; |
• | “Seller Joinder” are to a joinder agreement executed by a Joining Seller and delivered to the Company, FB Parent and Flybondi after the date of the FlyBondi Business Combination Agreement; |
• | “Sellers” are to the Joining Sellers and the Signing Sellers; |
• | “Signing Sellers” are to certain holders of Flybondi’s outstanding shares that have executed the Flybondi Business Combination Agreement; |
• | “Sponsor” are to Integral Sponsor LLC, a Delaware limited liability company; |
• | “Staff” are to the Listing Qualifications Department of Nasdaq; |
• | “Treasury” are to the U.S. Department of the Treasury; |
• | “Trust Account” are to the U.S.-based trust account in which an amount of $116,725,000 from the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement Warrants in the Private Placement was placed following the closing of the Initial Public Offering, as such amount was reduced in connection with redemptions of Public Shares validly submitted by Public Stockholders in connection with the First Extension and the Second; |
• | “Units” are to the units sold in our Initial Public Offering, which consist of one share of Class A Common Stock and one-half of one redeemable warrant; |
• | “warrants” are to the Private Placement Warrants and the Public Warrants; |
• | “WCL Promissory Note” are to the promissory note issued on July 10, 2023 by the Company to the Sponsor in an amount of up to $1,500,000 in connection with Working Capital Loans (as defined below); and |
• | “Working Capital Loans” are to funds that, in order to provide working capital or finance transaction costs in connection with a Business Combination, the Initial Stockholders or an affiliate of the Initial Stockholders or certain of our directors and officers may, but are not obligated to, loan us. |
v
Item 1. |
Financial Statements. |
September 30, 2023 |
December 31, 2022 |
|||||||
(Unaudited) | ||||||||
Assets |
||||||||
Cash |
$ | 41,740 | $ | 601,088 | ||||
Prepaid expenses |
26,204 | 234,276 | ||||||
Total current assets |
67,944 | 835,364 | ||||||
Investments held in Trust Account |
32,658,888 | 118,064,355 | ||||||
Total Assets |
$ |
32,726,832 |
$ |
118,899,719 |
||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit |
||||||||
Current liabilities: |
||||||||
Accrued expenses |
$ | 516,050 | $ | 35,499 | ||||
First Extension Promissory Note |
355,000 | — | ||||||
Working Capital Loans |
165,000 | — | ||||||
Excise Tax payable |
878,437 | — | ||||||
Income taxes payable |
331,980 | 190,069 | ||||||
Franchise tax payable |
30,000 | 60,164 | ||||||
Total current liabilities |
2,276,467 | 285,732 | ||||||
Deferred tax liability |
— | 79,128 | ||||||
Deferred underwriting commission |
— | 6,050,000 | ||||||
FPA liability |
2,753,047 | 2,708,717 | ||||||
Total liabilities |
5,029,514 |
9,123,577 |
||||||
Commitments and Contingencies (Note 4) |
||||||||
Class A Common Stock subject to possible redemption, 3,029,941 and 11,500,000 shares at redemption value of $10.66 and $10.23 per share at September 30, 2023 and December 31, 2022, respectively |
32,298,742 | 117,737,665 | ||||||
Stockholders’ Deficit |
||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding |
— | — | ||||||
Class A Common Stock, $0.0001 par value; 100,000,000 shares authorized; none issued and outstanding, (excluding 3,029,941 and 11,500,000 shares subject to possible redemption, respectively) |
— | — | ||||||
Class B Common Stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding |
288 | 288 | ||||||
Additional paid-in capital |
— | — | ||||||
Accumulated deficit |
(4,601,712 | ) | (7,961,811 | ) | ||||
Total stockholders’ deficit |
(4,601,424 |
) |
(7,961,523 |
) |
||||
Total Liabilities, Redeemable Common Stock and Stockholders’ Deficit |
$ |
32,726,832 |
$ |
118,899,719 |
||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Operating costs |
$ | 520,762 | $ | 240,378 | $ | 1,393,021 | $ | 780,468 | ||||||||
Loss from operations |
(520,762 |
) |
(240,378 |
) |
(1,393,021 |
) |
(780,468 |
) |
||||||||
Other income (expenses): |
||||||||||||||||
Unrealized (loss) gain on change in fair value of Forward Purchase Agreement liability |
818,251 | (43,577 | ) | (44,330 | ) | (1,033,639 | ) | |||||||||
Unrealized gain on Trust Account |
6,972 | — | 139,355 | — | ||||||||||||
Interest income |
412,108 | 391,582 | 2,329,140 | 447,418 | ||||||||||||
Total other income (expenses), net |
1,237,331 | 348,005 | 2,424,165 | (586,221 | ) | |||||||||||
(Loss) Income before provision for income taxes |
716,569 | 107,627 | 1,031,144 | (1,366,689 | ) | |||||||||||
Provision for income taxes |
(28,417 | ) | (28,766 | ) | (437,783 | ) | (28,766 | ) | ||||||||
Net income (loss) |
$ |
688,152 |
$ |
78,861 |
$ |
593,361 |
$ |
(1,395,455 |
) |
|||||||
Basic and diluted weighted average shares outstanding, Common Stock subject to redemption |
3,029,941 | 11,500,000 | 7,063,302 | 11,500,000 | ||||||||||||
Basic and diluted net income (loss) per Common Stock subject to redemption |
$ |
0.12 |
$ |
0.01 |
$ |
0.06 |
$ |
(0.10 |
) |
|||||||
Basic and diluted weighted average shares outstanding, non-redeemable Common Stock |
2,875,000 | 2,875,000 | 2,875,000 | 2,875,000 | ||||||||||||
Basic and diluted net income (loss) per non-redeemable Common Stock |
$ |
0.12 |
$ |
0.01 |
$ |
0.06 |
$ |
(0.10 |
) |
|||||||
Common Stock |
Additional Paid-in |
Accumulated |
Total Stockholders’ |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||
Balance as of December 31, 2022 |
2,875,000 |
$ |
288 |
$ |
— |
$ |
(7,961,811 |
) |
$ |
(7,961,523 |
) |
|||||||||
Accretion of Class A Common Stock to redemption amount |
— | — | — | (949,072 | ) | (949,072 | ) | |||||||||||||
Net income |
— | — | — | 451,060 | 451,060 | |||||||||||||||
Balance as of March 31, 2023 (unaudited) |
2,875,000 |
288 |
— |
(8,459,823 |
) |
(8,459,535 |
) |
|||||||||||||
Accretion of Class A Common Stock to redemption amount |
— | — | — | (800,927 | ) | (800,927 | ) | |||||||||||||
Excise Tax payable |
— | — | — | (878,437 | ) | (878,437 | ) | |||||||||||||
Net loss |
— | — | — | (545,851 | ) | (545,851 | ) | |||||||||||||
Balance as of June 30, 2023 (unaudited) |
2,875,000 |
288 |
— |
(10,685,038 |
) |
(10,684,750 |
) |
|||||||||||||
Accretion of Class A Common Stock to redemption amount |
— | — | — | (654,826 | ) | (654,826 | ) | |||||||||||||
Waiver of deferred underwriters’ fee |
— | — | — | 6,050,000 | 6,050,000 | |||||||||||||||
Net income |
— | — | — | 688,152 | 688,152 | |||||||||||||||
Balance as of September 30, 2023 (unaudited) |
2,875,000 |
$ |
288 |
$ |
— |
$ |
(4,601,712 |
) |
$ |
(4,601,424 |
) |
|||||||||
Common stock |
Additional Paid-in
Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
|||||||||||||||||
Shares |
Amount |
|||||||||||||||||||
Balance as of December 31, 2021 |
2,875,000 | $ | 288 | $ | — | $ | (5,506,832 | ) | $ | (5,506,544 | ) | |||||||||
Net loss |
— | — | — | (1,277,484 | ) | (1,277,484 | ) | |||||||||||||
Balance as of March 31, 2022 (unaudited) |
2,875,000 |
288 |
— |
(6,784,316 |
) |
(6,784,028 |
) |
|||||||||||||
Net loss |
— | — | — | (196,832 | ) | (196,832 | ) | |||||||||||||
Balance as of June 30, 2022 (unaudited) |
2,875,000 |
288 |
— |
(6,981,148 |
) |
(6,980,860 |
) |
|||||||||||||
Accretion of Class A Common Stock to redemption amount |
— | — | — | (102,207 | ) | (102,207 | ) | |||||||||||||
Net income |
— | — | — | 78,861 | 78,861 | |||||||||||||||
Balance as of September 30, 2022 (unaudited) |
2,875,000 |
$ |
288 |
$ |
— |
$ |
(7,004,494 |
) |
$ |
(7,004,206 |
) |
|||||||||
For the Nine Months Ended September 30, |
||||||||
2023 |
2022 |
|||||||
Cash flows from Operating Activities: |
||||||||
Net income (loss) |
$ | 593,361 | $ | (1,395,455 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||
Unrealized gain on Trust Account |
(139,355 | ) | — | |||||
Unrealized loss on change in fair value of Forward Purchase Agreement liability |
44,330 | 1,033,639 | ||||||
Interest earned on investments held in Trust Account |
(2,329,140 | ) | (447,409 | ) | ||||
Changes in current assets and current liabilities: |
||||||||
Prepaid expenses |
208,072 | 156,488 | ||||||
Accrued expenses |
480,551 | (16,021 | ) | |||||
Income taxes payable |
62,783 | 28,766 | ||||||
Franchise taxes payable |
(30,164 | ) | (129,722 | ) | ||||
Net cash used in operating activities |
(1,109,562 |
) |
(769,714 |
) |
||||
Cash flows from Investing Activities: |
||||||||
Extension funding of Trust Account |
(525,000 | ) | — | |||||
Funds withdrawn for redemptions from the Trust Account |
87,843,748 | — | ||||||
Cash withdrawn from Trust Account to pay taxes |
555,214 | 282,393 | ||||||
Net cash provided by investing activities |
87,873,962 |
282,393 |
||||||
Cash flows from Financing Activities: |
||||||||
Funds withdrawn for redemptions from the Trust Account |
(87,843,748 | ) | — | |||||
Proceeds from loans from the First Extension Promissory Note |
355,000 | — | ||||||
Proceeds from issuance of Working Capital Loans |
165,000 | — | ||||||
Net cash used in financing activities |
(87,323,748 |
) |
— |
|||||
Net change in cash |
(559,348 |
) |
(487,321 |
) |
||||
Cash, beginning of the period |
601,088 | 1,309,165 | ||||||
Cash, end of the period |
$ |
41,740 |
$ |
821,844 |
||||
Supplemental disclosure of noncash investing and financing activities: |
||||||||
Income Tax Paid |
$ | 375,000 | $ | — | ||||
Accretion of Class A Common Stock to redemption amount |
$ | 2,404,825 | $ | 102,207 | ||||
Impact of the waiver of deferred commission by the underwriters |
$ | 6,050,000 | $ | — | ||||
Excise Tax payable |
$ | 878,437 | $ | — | ||||
• | Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. |
• | Level 2—Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means. |
• | Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Class A Common Stock subject to possible redemption, December 31, 2022 |
$ |
117,737,665 |
||
Less: |
||||
Redemptions |
(87,843,748 | ) | ||
Plus: |
||||
Remeasurement of carrying value to redemption value |
2,404,825 | |||
|
|
|||
Class A Common Stock subject to possible redemption, September 30, 2023 |
$ |
32,298,742 |
||
|
|
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||||||||||||||||||
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
|||||||||||||||||||||||||
Basic and diluted net income (loss) per share |
||||||||||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||||||||||
Allocation of net income (loss) |
$ | 353,104 | $ | 335,048 | $ | 63,089 | $ | 15,772 | $ | 421,711 | $ | 171,650 | $ | (1,116,364 | ) | $ | (279,091 | ) | ||||||||||||||
Denominator: |
||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding |
3,029,941 | 2,875,000 | 11,500,000 | 2,875,000 | 7,063,302 | 2,875,000 | 11,500,000 | 2,875,000 | ||||||||||||||||||||||||
Basic and diluted net income (loss) per share |
$ | 0.12 | $ | 0.12 | $ | 0.01 | $ | 0.01 | $ | 0.06 | $ | 0.06 | $ | (0.10 | ) | $ | (0.10 | ) |
• | to $9.20 if the aggregate purchase price paid by a Forward Purchaser at $10.00 per share would exceed the lesser of (i) a specified dollar amount and (ii) a specified percentage of the aggregate purchase price paid by the purchasers of the Class A Common Stock in a PIPE; |
• | and to below $9.20 if the price per share in any PIPE is less than $9.20 (in which case the price per share paid by the Forward Purchaser will be at an 8% discount from the price per share in such PIPE). |
• | Each FPA Share is one share of the Class A Common Stock. No payment is due from the Forward Purchaser until immediately before the initial Business Combination. The purchase price is $10.00 per FPA Share, subject to the discounted purchase price. The discounted purchase price is either at $9.20 per share or at an 8% discount to the PIPE price if the PIPE is priced below $9.20. |
• | The conditions upon obtaining a $9.20 purchase price are within the control of the FPA Holder because the FPA holder will control the aggregate purchase price of the FPA Shares to be purchased by the FPA Holder and, in the case of the Forward Purchaser that is expected to purchase Units, such Forward Purchaser and its affiliates will control whether such Forward Purchaser and its affiliates sell or redeem more than 50% of the Units (or, following the separate trading of the Public Shares and the Public Warrants, the Public Shares) on or prior to the initial Business Combination. The FPA Holder that is expected to purchase Units is assumed to have no negative economic impact from not selling or redeeming more than 50% of the Units (or, following the separate trading of the Public Shares and the Public Warrants) on or prior to the initial Business Combination since such Forward Purchaser would be selling at market price, without knowledge of future pricing, so that not selling or redeeming and realizing the 8% discount to market price on its future purchase is actually a positive feature to such FPA Holder. Therefore, Management assumed that the likelihood of the FPA Holder to have a $10.00 purchase price is de minimis. |
• | Management assumed a PIPE would be priced below $9.20 per share only 5% of the time and would be priced at $9.00 per share when it is priced below $9.20 per share. |
• | In whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon not less than 30 days’ prior written notice of redemption given after the warrants become exercisable to each warrant holder; and |
• | if, and only if, the reported last sale price of the Class A Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading-day |
Level 1 |
Level 2 |
Level 3 |
||||||||||
Assets |
||||||||||||
Investments held in Trust Account |
$ | 32,658,888 | $ | — | $ | — | ||||||
Liabilities |
||||||||||||
FPA |
$ | — | $ | — | $ | 2,753,047 |
Level 1 |
Level 2 |
Level 3 |
||||||||||
Assets |
||||||||||||
Investments held in Trust Account |
$ | 118,064,355 | $ | — | $ | — | ||||||
Liabilities |
||||||||||||
FPA |
$ | — | $ | — | $ | 2,708,717 |
Input |
September 30, 2023 |
December 31, 2022 |
||||||
Probability of successful Business Combination |
85 | % | 85 | % | ||||
Likelihood by 04/30/2023 |
— | % | 15 | % | ||||
Likelihood by 06/30/2023 |
— | % | 15 | % | ||||
Likelihood by 10/31/2023 |
— | % | 70 | % | ||||
Likelihood by 03/31/2024 |
50 | % | — | % | ||||
Likelihood by 06/30/2024 |
50 | % | ||||||
Risk-free rate |
5.51 | % | 4.75 | % | ||||
Stock price |
$ | 10.75 | $ | 10.11 | ||||
Estimated term remaining (years) |
0.63 | 0.71 |
Fair Value at December 31, 2022 |
$ | 2,708,717 | ||
Change in fair value |
219,842 | |||
Fair Value at March 31, 2023 |
$ | 2,928,559 | ||
Change in fair value |
642,739 | |||
Fair Value at June 30, 2023 |
$ | 3,571,298 | ||
Change in fair value |
(818,251 | ) | ||
Fair Value at September 30, 2023 |
$ | 2,753,047 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Cautionary Note Regarding Forward-Looking Statements
All statements other than statements of historical fact included in this Report including, without limitation, statements in this section regarding our financial position, business strategy and the plans and objectives of Management for future operations, are forward-looking statements. When used in this Report, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our Management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of our Management, as well as assumptions made by, and information currently available to, our Management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto included in this Report under “Item 1. Financial Statements”.
Overview
We are a blank check company incorporated on February 16, 2021 as a Delaware corporation and formed for the purpose of effect Business Combination.
Our Sponsor, Integral Sponsor, LLC, is a Delaware limited liability company. The Registration Statement was declared effective on November 2, 2021. On November 5, 2021, we consummated our Initial Public Offering of 11,500,000 Units, including the full exercise of the underwriters’ over-allotment option to purchase 1,500,000 Units, at a purchase price of $10.00 per Unit. Offering costs amounted to $10,757,787 consisting of $2,000,000 of underwriting commissions, $6,050,000 of deferred underwriting commissions, an excess of fair value of the Founder Shares attributed to the Anchor Investors of $3,386,739, and $556,048 of other offering costs (before $1,235,000 of offering costs reimbursed by the underwriter). Of the total offering costs, $10,247,056 was charged to temporary equity and the remaining $510,731 is included in equity.
Simultaneously with the closing of the IPO, we completed the private sale of an aggregate of 4,950,000 Private Placement Warrants, including 90,000 warrants issued in connection with the exercise in full by the underwriter of its option to purchase additional Units to the Sponsor at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to us of $4,950,000.
Upon the closing of the IPO, Management agreed that an amount equal to at least $10.15 per Unit sold in the IPO, including the proceeds of the Private Placement Warrants, would be held in the Trust Account with Continental acting as trustee, and would be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct Treasury obligations. Except with respect to interest earned on the funds held in the Trust Account that may be released to us to pay taxes, if any, the proceeds from the IPO and the sale of the Private Placement Warrants will not be released from the Trust Account until the earliest of (i) the completion of initial Business Combination, (ii) the redemption of the Public Shares if we are unable to complete an initial Business Combination within the Combination Period, subject to applicable law, or (iii) the redemption of the Public Shares properly submitted in connection with a stockholder vote to amend the Amended and Restated Certificate of Incorporation to modify the substance or timing of our obligation to redeem 100% of its Public Shares if we have not consummated an initial Business Combination within the Combination Period or with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of our creditors, if any, which could have priority over the claims of our Public Stockholders.
If we are unable to complete the initial Business Combination within the Combination Period, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (which interest shall be net of taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and the Board of Directors, liquidate and dissolve, subject, in each case, to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.
Extension of Our Combination Period
On May 3, 2023, we held the First Special Meeting. At the First Special Meeting, our stockholders approved, among other things, the First Extension Amendment Proposal. In connection with the First Extension, stockholders holding 8,470,059 Public Shares exercised their right to redeem such shares for a pro rata portion of the funds in the Trust Account. As a result, $87,843,748 (approximately $10.37 per share) was removed from the Trust Account to pay such stockholders.
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In connection with the approval of the First Extension, we agreed to make monthly deposits of $105,000 into the Trust Account for each calendar month (commencing on May 8, 2023) that was needed by us to complete an initial Business Combination until November 3, 2023, and such amount will be distributed either to: (i) all of the holders of Public Shares upon the Company’s liquidation or (ii) holders of Public Shares who elect to have their shares redeemed in connection with the consummation of the Business Combination. As of September 30, 2023, we had paid $525,000 to fund the Trust Account for the First Extension, with $520,000 of such funds coming from the First Extension Promissory Note and the WCL Promissory Note, and $5,000 coming from our operating bank account.
First Nasdaq Notice
On June 28, 2023, we received the First Nasdaq Notice from the Staff notifying us that for the prior 30 consecutive business days, our MVLS was below the minimum of $50 million required for continued listing on Nasdaq pursuant to the Market Value Standard. This notification had no immediate effect on the listing or trading of our securities on Nasdaq and the Class A Common Stock, warrants and Units continue to trade under the symbols “INTE,” “INTEW” and “INTEU,” respectively.
In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we have a period of 180 calendar days, or until December 26, 2023, to regain compliance with the Market Value Standard. The First Nasdaq Notice states that to regain compliance, our MVLS must close at $50 million or more for a minimum of ten consecutive business days during the Nasdaq Compliance Period, at which time, Nasdaq will provide written notification that we have achieved compliance under the Market Value Standard and the matter will be closed.
We have been monitoring and intend to continue to actively monitor our MVLS and are continuing to evaluate available options to regain compliance with the Market Value Standard. However, there can be no assurance that we will be able to regain compliance under the Market Value Standard or will otherwise be in compliance with other Nasdaq listing criteria.
In the event we do not regain compliance with the Market Value Standard within the Nasdaq Compliance Period, we will receive written notification that our securities are subject to delisting from Nasdaq. At such time, we will have the opportunity to appeal the delisting decision in front of a Nasdaq Hearings Panel.
Recent Developments
Flybondi Business Combination
On October 19, 2023, we entered into the Flybondi Business Combination Agreement with Flybondi, FB Parent, Merger Sub and the Signing Sellers. After the date of the Flybondi Business Combination Agreement, the Joining Sellers may join the Flybondi Business Combination Agreement by executing and delivering a Seller Joinder.
The Flybondi Business Combination Agreement provides for, among other things, the following transactions: (i) FB Parent will acquire the shares of Flybondi held by the Sellers in exchange for the issuance by FB Parent of new ordinary shares of FB Parent, and (ii) we will merge with and into Merger Sub, with the Company continuing as the surviving entity and as a wholly-owned subsidiary of FB Parent, and each of our issued and outstanding securities will be cancelled and converted into the right of the holder thereof to receive a substantially equivalent security of FB Parent.
For a full description of the Flybondi Business Combination Agreement and the proposed Flybondi Business Combination, please see the unaudited condensed financial statements and the notes thereto included in this Report under “Item 1. Financial Statements”, as well as our Current Report on Form 8-K filed with the SEC on October 25, 2023.
Second Nasdaq Notice
On October 24, 2023, we received the Second Nasdaq Notice from the Staff indicating that we are not in compliance with the Minimum Total Holders Rule, which requires the Company to maintain at least 400 total holders for continued listing on the Nasdaq Global Market. The Notice is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of our securities on the Nasdaq Global Market.
In accordance with Nasdaq Listing Rule 5810(c)(2)(A)(i), the Second Nasdaq Notice states that we have 45 calendar days, or until December 8, 2023, to submit a plan to regain compliance with the Minimum Total Holders Rule.
If we are unable to regain compliance by that date, we intend to submit a plan to regain compliance with the Minimum Total Holders Rule within the required timeframe. If Nasdaq accepts our plan, Nasdaq may grant us an extension of up to 180 calendar days from the date of the Second Nasdaq Notice to evidence compliance with the Minimum Total Holders Rule. If Nasdaq does not accept our plan, we will have the opportunity to appeal the decision in front of a Nasdaq Hearings Panel.
Second Special Meeting of the Stockholders
On November 2, 2023, we held the Second Special Meeting, at which our stockholders approved, among other things, the Charter Amendment Proposals. In connection with the vote to approve the Charter Amendment Proposals, the holders of 1,831,599 shares of Class A Common Stock properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.79 per share, for an aggregate redemption amount of $19,763,618.
In connection with the approval of the Charter Amendment Proposals, on November 8, 2023, the Company issued the Second Extension Promissory Note in the aggregate principal amount of up to $359,503 to the Sponsor. The Second Extension Promissory Note bears no interest and is repayable in full upon the date of the consummation of the initial Business Combination or our liquidation.
23
We will deposit $29,959 into the Trust Account for each calendar month (commencing on November 8, 2023 and ending on the 5th day of each subsequent month), or portion thereof, that is needed by us to complete an initial Business Combination until November 5, 2024, and such amount will be distributed either to: (i) all of the holders of Public Shares upon the our liquidation or (ii) holders of Public Shares who elect to have their shares redeemed in connection with the consummation of the initial Business Combination. On November 8, 2023, $29,959 of the $359,503 available to us under the Second Extension Promissory Note was deposited in the Trust Account in connection with the Second Extension.
Founder Share Conversion
Following approval of the Founder Share Amendment Proposal, on November 3, 2023, we issued an aggregate of 2,824,999 shares of Class A Common Stock to the Sponsor upon the conversion of an equal number of shares of Class B common stock held by the Sponsor as Founder Shares in the Founder Share Conversion. The 2,824,999 shares of Class A Common Stock issued in connection with the Founder Share Conversion are subject to the same restrictions as applied to the Class B Common Stock before the Founder Share Conversion, including, among other things, certain transfer restrictions, waiver of redemption rights and the obligation to vote in favor of an initial Business Combination as described in the Registration Statement. Following the Founder Share Conversion and redemptions in connection with the approval of the Charter Amendment Proposals, (i) there were 4,023,341 shares of Class A Common Stock issued and outstanding and 50,0001 shares of Class B Common Stock issued and outstanding and (ii) the Sponsor now holds approximately 69.4% of the issued and outstanding shares of Class A Common Stock.
Transfer of Trust Account Funds
To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, on October 31, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest bearing demand deposit account at JPMorgan Chase Bank, N.A., with Continental continuing to act as trustee, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account to our stockholders, as described elsewhere in this Report.
Results of Operations
As of September 30, 2023, we had not commenced any operations. All activity for the period from February 16, 2021 (inception) through September 30, 2023 relates to our formation and the IPO and since the closing of the IPO, the search for a prospective and consummating an initial Business Combination. We have neither engaged in any operations nor generated any revenues to date. We will not generate any operating revenues until after the completion of our initial Business Combination, at the earliest. We will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering and held in our Trust Account. We expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.
For the three months ended September 30, 2023, we had net income of $688,152, which consisted of trust interest income of $412,108, an unrealized gain on the change in the fair value of the FPA liability of $818,251 and unrealized gain on the Trust Account of $6,972, offset by operating costs of $520,762 and provision from income tax of $28,417.
For the nine months ended September 30, 2023, we had net income of $593,361, which consisted of trust interest income of $2,329,140 and unrealized gain on the Trust Account of $139,355, offset by operating costs of $1,393,021, an unrealized loss on the change in the fair value of the FPA liability of $44,330 and provision from income tax of $437,783.
For the three months ended September 30, 2022, we had net income of $78,861, which consisted of trust interest income of $391,582, offset by operating costs of $240,378, an unrealized loss on the change in the fair value of the FPA liability of $43,577 and provision from income tax of $28,766.
For the nine months ended September 30, 2022, we had net loss of $1,395,455, which consisted of operating costs of $780,468, provision from income taxes of $28,766 and an unrealized loss on the change in the fair value of the FPA liability of $1,033,639, partially offset by trust interest income of $447,418.
Factors That May Adversely Affect our Results of Operations
Our results of operations and our ability to complete an initial Business Combination may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. Our business could be impacted by, among other things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest rates, supply chain disruptions, declines in consumer confidence and spending, the ongoing effects of the COVID-19 pandemic, including resurgences and the emergence of new variants, and geopolitical instability, such as the military conflict in Ukraine and the Middle East. We cannot at this time fully predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact our business and our ability to complete an initial Business Combination.
Liquidity, Capital Resources and Going Concern
As of September 30, 2023, we had $41,740 in our operating bank account and working capital deficit of $2,208,523.
Prior to the completion of the IPO, our liquidity needs had been satisfied through a loan under the IPO Promissory Note issued to the Sponsor totaling $252,950 and the issuance of 2,875,000 Class B Common Stock at approximately $0.009 per share for gross proceeds of $25,000. The IPO Promissory Note has been repaid and no other borrowings are permitted. Subsequent to the consummation of the Initial Public Offering, our liquidity needs have been satisfied through the issuance of the Private Placement Warrants, which generated gross proceeds of $4,950,000.
24
On May 8, 2023, we entered into the First Extension Promissory Note, pursuant to which the Sponsor agreed to loan us up to $630,000 to be deposited into the Trust Account. As of September 30, 2023, $355,000 had be borrowed under the First Extension Promissory Note.
Additionally, on July 10, 2023, we entered into the WCL Promissory Note, pursuant to which the Sponsor agreed to loan us up to $1,500,000 to be deposited into the Trust Account. As of September 30, 2023, $165,000 had been borrowed under the WCL Promissory Note
In connection with our assessment of going concern considerations in accordance with ASU 2014-15, Management has determined that the mandatory liquidation and subsequent dissolution, should we be unable to complete a Business Combination within the Combination Period, and insufficient cash, raises substantial doubt about our ability to continue as a going concern. Following the Second Special Meeting, we have November 5, 2024 to consummate a Business Combination. It is uncertain that we will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution. No adjustments have been made to the carrying amounts of assets or liabilities should we be required to liquidate after the end of the Combination Period.
Inflation Reduction Act of 2022
On August 16, 2022, the IR Act was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% Excise Tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The Excise Tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the Excise Tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the Excise Tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the Excise Tax. The Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the Excise Tax.
Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the Excise Tax. Whether and to what extent we would be subject to the Excise Tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any PIPE or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the Excise Tax would be payable by us and not by the redeeming holder, the mechanics of any required payment of the Excise Tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in our ability to complete a Business Combination.
In connection with the approval of the First Extension Amendment Proposal, holders of 8,470,059 shares of Class A Common Stock properly exercised their right to redeem their shares of Class A Common Stock for an aggregate redemption amount of $87,843,748. As such, we have recorded a 1% Excise Tax liability in the amount of $878,437 on the condensed balance sheet as of September 30, 2023 included in this Report under “Item 1. Financial Statements”. The liability does not impact the unaudited condensed statements of operations included in this Report under “Item 1. Financial Statements” and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available.
This Excise Tax liability can be offset by future share issuances within the same fiscal year, which will be evaluated and adjusted in the period in which the issuances occur. Should the we liquidate prior to December 31, 2023, the Excise Tax liability will not be due.
Contractual Obligations
We do not have any long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or long-term liabilities.
Administrative Services Agreement
Commencing on the date the Units were first listed on the Nasdaq, we agreed to pay the Sponsor a total of $20,000 per month for office space, utilities, and secretarial and administrative support. Upon completion of the Initial Business Combination or our liquidation, we will cease paying these monthly fees. Total administrative fees for the three and nine months ended September 30, 2023 are $60,000 and $180,000, respectively. Total administrative fee for the three and nine months ended September 30, 2022 are $60,000 and $160,000, respectively. At September 30, 2023 and December 31, 2022, $80,000 and $0 is reported in accrued expenses on the condensed balance sheet included in this Report under “Item 1. Financial Statements” as due to the Sponsor for the administrative fees due.
Registration and Stockholder Rights
The holders of the (i) Founder Shares, which were issued in a private placement prior to the closing of the IPO, (ii) Private Placement Warrants, which were issued in the Private Placement simultaneously with the closing of the IPO and the shares of Class A Common Stock underlying such Private Placement Warrants, (iii) Private Placement Warrants that may be issued upon conversion of the Working Capital Loans and (iv) the FPA Shares that may be purchased pursuant to the related FPAs will have registration rights to require us to register a sale of any of our securities held by them prior to the consummation of our initial Business Combination pursuant to a registration rights agreement executed in connection with the IPO. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial Business Combination. We will bear the expenses incurred in connection with the filing of any such registration statements.
25
Engagement of Services
On May 28, 2021, we entered into a letter agreement with J.V.B. pursuant to which we Cohen & Company Capital Markets, a division of J.V.B., to provide consulting and advisory services in connection with the IPO in return for a transaction fee to be paid to J.V.B. in an amount equal to 10.0% of the aggregate underwriting discount and commissions earned by the underwriters in connection with the IPO to be paid simultaneously with the actual payment of such underwriting discount and commissions to the underwriters upon (i) the closing of the IPO and (ii) the completion of the initial Business Combination. J.V.B. was one of the Anchor Investors that purchased Units in the IPO and became a member of the Sponsor at the closing of our IPO to hold an indirect interest in a specified number of the Founder Shares held by the Sponsor.
On November 4, 2021, we paid J.V.B. $85,000 in cash from funds outside of the Trust Account. Funds due to J.V.B. upon the completion of the initial Business Combination ($605,000 in the aggregate) will be paid by the underwriters of the IPO.
Underwriter Agreement
The underwriters of the IPO were entitled to a deferred underwriting commission of $0.50 on the first 10,000,000 Units sold in the IPO and $0.70 per Unit per Unit sold thereafter, or $6,050,000 in the aggregate. On August 28, 2023, the underwriters waived any right to receive the deferred underwriting commission and will therefore receive no additional underwriting commissions in connection with the Flybondi Business Combination. As a result, $6,050,000 was recorded to accumulated deficit in relation to the reduction of the deferred underwriter fee. As of September 30, 2023 and December 31, 2022, the deferred underwriting fee is $0 and $6,050,000, respectively.
We comply with ASC 405 and derecognized the deferred underwriting commission liability upon being released of the obligation by the underwriters. To account for the waiver of the deferred underwriting commission, we reduced the deferred underwriter commission liability to $0 and reversed the previously recorded cost of issuing the instruments in the IPO, which included a reduction in the accumulated deficit and increased income available to Class B Common Stock by $6,050,000, which was previously allocated to the Class A Common Stock subject to redemption and accretion recognized at the IPO date.
Anchor Investment
Certain qualified institutional buyers or institutional accredited investors (none of which are affiliated with any member of the Company’s Management, the Sponsor or any other anchor investor) (the “Anchor Investors”), have purchased an aggregate of approximately $60.8 million of the Units in the IPO at the public offering price. There can be no assurance that the Anchor Investors will retain their Units prior to or upon the consummation of the initial Business Combination. In addition, none of the Anchor Investors has any obligation to vote any of their Public Shares in favor of the initial Business Combination.
The Anchor Investors have not been granted any stockholder or other rights that are in addition to those granted to our other Public Stockholders, and will only be issued equity interests in our Sponsor, with no right to control our Sponsor or vote or dispose of any securities held by our Sponsor. Further, unlike some anchor investor arrangements of other blank check companies, the Anchor Investors are not required to (i) hold any Units, Class A Common Stock or warrants they may purchase in this offering or thereafter for any amount of time, (ii) vote any shares of Class A Common Stock they may own at the applicable time in favor of our initial Business Combination or (iii) refrain from exercising their right to redeem their Public Shares at the time of our initial Business Combination. The Anchor Investors will have the same rights to the funds held in the Trust Account with respect to the Class A Common Stock underlying the Units they may purchase in the IPO as the rights afforded to the Company’s other Public Stockholders.
Forward Purchase Shares
Crescent Park, which is one of the Anchor Investors, and Carnegie Park have agreed, pursuant to their respective FPAs entered into with us, to purchase up to 2,500,000 FPA Shares (in the case of Crescent Park) and up to 500,000 FPA Shares (in the case of Carnegie Park) at $10.00 per share (as such price per share may be reduced to $9.20 per share or further reduced to below $9.20 per share with respect to all or part of the FPA Shares that are purchased in the manner described below) for gross proceeds up to $30,000,000 in the aggregate if all of the FPA Shares are purchased at $10.00 per share (or up to $27,600,000 in the aggregate if all of the FPA Shares are purchased at $9.20 per share or up to a lower amount in the aggregate if all of the FPA Shares are purchased at less than $9.20 per share) in private placements that are to occur concurrently with the consummation of the initial Business Combination.
The price to be paid for the FPA Shares will be reduced to or below $9.20 per share in the following circumstances:
• | to $9.20 if the aggregate purchase price paid by a Forward Purchaser at $10.00 per share would exceed the lesser of (i) a specified dollar amount and (ii) a specified percentage of the aggregate purchase price paid by the purchasers of the Class A Common Stock in a PIPE; |
• | and to below $9.20 if the price per share in any PIPE is less than $9.20 (in which case the price per share paid by the Forward Purchaser will be at an 8% discount from the price per share in such PIPE). |
26
One of the Forward Purchasers and/or its affiliates purchased Units. If such Forward Purchaser and/or any of its affiliates sell more than 50% of the aggregate number of the Units purchased in the IPO or, following the separate trading of the Public Shares and the Public Warrants, the Public Shares that are a component of the Units that are purchased by the Forward Purchaser or any of its affiliates in the IPO, in sales that are consummated on or prior to the initial Business Combination, then the price per share for the FPA Shares will remain at $10.00 per share for FPA Shares in an aggregate number equal to the number of public Units and Public Shares sold by the Forward Purchaser and/or its affiliates in such manner.
The following assumptions were utilized in the determination of fair value for the FPA liability:
• | Each FPA Share is one share of the Class A Common Stock. No payment is due from the Forward Purchaser until immediately before the initial Business Combination. The purchase price is $10.00 per FPA Share, subject to the discounted purchase price. The discounted purchase price is either at $9.20 per share or at an 8% discount to the PIPE price if the PIPE is priced below $9.20. |
• | The conditions upon obtaining a $9.20 purchase price are within the control of the FPA Holder because the FPA holder will control the aggregate purchase price of the FPA Shares to be purchased by the FPA Holder and, in the case of the Forward Purchaser that is expected to purchase Units, such Forward Purchaser and its affiliates will control whether such Forward Purchaser and its affiliates sell or redeem more than 50% of the Units (or, following the separate trading of the Public Shares and the Public Warrants, the Public Shares) on or prior to the initial Business Combination. The FPA Holder that is expected to purchase Units is assumed to have no negative economic impact from not selling or redeeming more than 50% of the Units (or, following the separate trading of the Public Shares and the Public Warrants) on or prior to the initial Business Combination since such Forward Purchaser would be selling at market price, without knowledge of future pricing, so that not selling or redeeming and realizing the 8% discount to market price on its future purchase is actually a positive feature to such FPA Holder. Therefore, Management assumed that the likelihood of the FPA Holder to have a $10.00 purchase price is de minimis. |
• | Management assumed a PIPE would be priced below $9.20 per share only 5% of the time and would be priced at $9.00 per share when it is priced below $9.20 per share. |
The purchase of FPA Shares by Crescent Park and Carnegie Park as the Forward Purchasers pursuant to their respective FPAs is subject to their respective internal approval processes and the other closing conditions set forth in their respective FPAs. Since the decision whether or not to purchase the FPA Shares will be in the sole discretion of the Forward Purchasers, there can be no assurance that such purchases will be consummated.
Each of the Forward Purchasers has the right to transfer all or a portion of its rights and obligation to purchase the FPA Shares to one or more transferees who are affiliates of the Forward Purchaser, subject to compliance with applicable securities laws. Any such transferee will be subject to the same terms and conditions under the relevant FPA. The FPA Shares will be identical to the shares of Class A Common Stock underlying the Units sold in the IPO, except that they will be subject to certain registration rights and transfer restrictions. The funds from the sale of the FPAs will be used as part of the consideration to the sellers in the initial Business Combination and any excess funds will be used for working capital in the post-transaction company. This commitment is independent of the percentage of stockholders electing to redeem their Public Shares and is intended to provide us with a minimum funding level for the initial Business Combination.
Critical Accounting Estimates
Forward Purchase Agreement Liability
We account for the 3,000,000 FPA Shares issued pursuant to the FPAs in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the FPA Shares do not meet the criteria for equity treatment thereunder, each FPA Share must be recorded as a liability. Accordingly, we classify each FPA Share as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the FPA liability will be adjusted to fair value, with the change in fair value recognized in the statement of operations.
Common Stock Subject to Possible Redemption
All of the 11,500,000 Common Stock sold as part of the Units in the IPO contain a redemption feature that allows for the redemption of such Public Shares in connection with our liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to our Amended and Restated Certificate of Incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require Common Stock subject to redemption to be classified outside of permanent equity. Therefore, all shares of Class A Common Stock have been classified outside of permanent equity.
We recognize changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable Common Stock are affected by charges against additional paid in capital and accumulated deficit.
Net Loss Per Share of Common Stock
Net loss per Share of Common Stock is computed by dividing net loss by the weighted average number of Common Stock outstanding during the period. At September 30, 2023 and 2022, we did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into Common Stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.
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Warrants
We account for the 10,700,000 warrants issued in connection with the IPO (comprised of 5,750,000 Public Warrants and 4,950,000 Private Placement Warrants) in accordance with the guidance contained in ASC 815-40. Such guidance provides that the warrants described are not precluded from equity classification. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.
Recent Accounting Pronouncements
Management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on our unaudited condensed financial statements and the notes thereto included in this Report under “Item 1. Financial Statements”.
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.
Item 4. | Controls and Procedures. |
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to Management, including our Chief Executive Officer and Chief Financial Officer (together, the “Certifying Officers”), or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our Management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were not effective due to identified material weaknesses related to errors in fair value calculation of certain financial instruments and unrecorded liabilities. Management plans to enhance internal controls and procedures, including enhancing access to accounting literature, identification and consideration of third-party professionals with whom to consult regarding complex accounting applications and implementing additional layers of reviews in the financial close process.
In light of these material weaknesses, we have enhanced our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our financial statements including making greater use of third-party professionals with whom we consult regarding complex accounting applications. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects. We believe our efforts will enhance our controls relating to accounting for complex financial transactions, but we can offer no assurance that our controls will not require additional review and modification in the future as industry accounting practice may evolve over time.
We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Changes in Internal Control over Financial Reporting
Other than as discussed above, there was no change in our internal control over financial reporting that occurred during the quarterly period ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
Item 1. | Legal Proceedings. |
To the knowledge of our Management, there is no litigation currently pending or contemplated against us, any of our officers or directors in their capacity as such or against any of our property
Item 1A. | Risk Factors. |
As a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. However, as of the date of this Report, other than as set forth below, there have been no material changes with respect to those risk factors previously disclosed in our (i) Registration Statement, (ii) our Annual Reports on Form 10-K for the fiscal years ended December 31, 2021 and December 31, 2022, as filed with the SEC on April 1, 2022 and March 31, 2023, respectively, (iii) our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, September 30, 2022 and March 31, 2023, as filed with the SEC on May 16, 2022, August 15, 2022, November 14, 2022 and May 15, 2023, respectively; and (iv) our Definitive Proxy Statement, as filed with SEC on October 16, 2023. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risks could arise that may also affect our business or ability to consummate an initial Business Combination. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.
For risks related to Flybondi and the Flybondi Business Combination, please see the Flybondi Registration Statement.
There is substantial doubt about our ability to continue as a “going concern.”
In connection with our assessment of going concern considerations under applicable accounting standards, Management has determined that our possible need for additional financing to enable us negotiate and complete our initial Business Combination, as well as the deadline by which we may be required to liquidate our Trust Account, raises substantial doubt about our ability to continue as a going concern through approximately one year from the date the unaudited condensed financial statements included in this Report under “Item 1. Financial Statements” were issued.
To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, on October 31, 2023, we instructed the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at a bank until the earlier of the consummation of our initial Business Combination or our liquidation. As a result, we may receive less interest on the funds held in the Trust Account than the interest we would have received pursuant to our original Trust Account investments, which could reduce the dollar amount our Public Stockholders would receive upon any redemption or our liquidation.
The funds in the Trust Account had, since our Initial Public Offering, been held in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds investing solely in U.S. government treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act. However on October 31, 2023, to mitigate the risk of us being deemed to be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company Act) and thus subject to regulation under the Investment Company Act, we instructed Continental, the trustee with respect to the Trust Account, to liquidate the U.S. government treasury obligations or money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in an interest-bearing demand deposit account at a JPMorgan Chase Bank, N.A., until the earlier of the consummation of our initial Business Combination or liquidation. Following such liquidation, we may receive less interest on the funds held in the Trust Account than the interest we would have received pursuant to our original Trust Account investments; however, interest previously earned on the funds held in the Trust Account still may be released to us to pay our taxes, if any, and certain other expenses as permitted. Consequently, the transfer of the funds in the Trust Account to an interest-bearing demand deposit account could reduce the dollar amount our Public Stockholders would receive upon any redemption or our liquidation.
In the event that we may be deemed to be an investment company, we may be required to liquidate the Company.
We have received the First Nasdaq Notice and the Second Nasdaq Notice. If we cannot regain compliance, our securities will be subject to delisting and the liquidity and the trading price of our securities could be adversely affected.
On June 28, 2023, we received the First Nasdaq Notice from the Staff notifying us that for the prior 30 consecutive business days, our MVLS was below the minimum of $50 million required for continued listing on Nasdaq pursuant to the Market Value Standard. This notification had no immediate effect on the listing or trading of the our securities on Nasdaq and the Class A Common Stock, warrants and Units continue to trade under the symbols “INTE,” “INTEW” and “INTEU,” respectively.
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In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we have a period of 180 calendar days, or until December 26, to regain compliance with the Market Value Standard. The First Nasdaq Notice states that to regain compliance, our MVLS must close at $50 million or more for a minimum of ten consecutive business days during the Nasdaq Compliance Period, at which time, Nasdaq will provide written notification that we have achieved compliance under the Market Value Standard and the matter will be closed.
We have been monitoring and intend to continue to actively monitor our MVLS and are continuing to evaluate available options to regain compliance with the Market Value Standard. However, there can be no assurance that we will be able to regain compliance under the Market Value Standard or will otherwise be in compliance with other Nasdaq listing criteria.
In the event we do not regain compliance with the Market Value Standard within the Nasdaq Compliance Period, we will receive written notification that our securities are subject to delisting from Nasdaq. At such time, we will have the opportunity to appeal the delisting decision in front of a Nasdaq Hearings Panel.
On October 24, 2023, we received the Second Nasdaq Notice from the Staff indicating that we are not in compliance with the Minimum Total Holders Rule, which requires the Company to maintain at least 400 total holders for continued listing on the Nasdaq Global Market. The Notice is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of our securities on the Nasdaq Global Market.
In accordance with Nasdaq Listing Rule 5810(c)(2)(A)(i), the Second Nasdaq Notice states that we have 45 calendar days, or until December 8, 2023, to submit a plan to regain compliance with the Minimum Total Holders Rule.
If we are unable to regain compliance by that date, we intend to submit a plan to regain compliance with the Minimum Total Holders Rule within the required timeframe. If Nasdaq accepts our plan, Nasdaq may grant us an extension of up to 180 calendar days from the date of the Second Nasdaq Notice to evidence compliance with the Minimum Total Holders Rule. If Nasdaq does not accept our plan, we will have the opportunity to appeal the decision in front of a Nasdaq Hearings Panel.
If Nasdaq delists our securities from trading on its exchange and we are not able to list our securities on another national securities exchange, we expect our securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including:
• | a limited availability of market quotations for our securities; |
• | reduced liquidity for our securities; |
• | a determination that our Class A Common Stock is a “penny stock” which will require brokers trading in our Class A Common Stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; |
• | a limited amount of news and analyst coverage; |
• | a decreased ability to issue additional securities or obtain additional financing in the future; and |
• | being subject to regulation in each state in which we offer our securities, including in connection with our initial Business Combination. |
Military or other conflicts in Ukraine, the Middle East or elsewhere may lead to increased volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential target companies, which could make it more difficult for us to consummate an initial Business Combination.
Military or other conflicts in Ukraine, the Middle East or elsewhere may lead to increased volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential target companies, and to other company or industry-specific, national, regional or international economic disruptions and economic uncertainty, any of which could make it more difficult for us to identify a Business Combination target and consummate an initial Business Combination on acceptable commercial terms, or at all.
Item 2. | Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities |
Unregistered Sales of Equity Securities
There were no sales of unregistered securities during the fiscal quarter covered by the Report. However, on November 3, 2023, we issued an aggregate of 2,824,999 shares of Class A Common Stock to the Sponsor, upon the conversion of an equal number of shares of Class B Common Stock held by the Sponsor in the Founder Share Conversion. For more information on the Founder Share Conversion, see the disclosure under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in “Part 1. Financial Information” of this Report.
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Use of Proceeds
For a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 5 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on April 1, 2022. There has been no material change in the planned use of proceeds from our Initial Public Offering and Private Placement as described in the Registration Statement. The specific investments in our Trust Account may change from time to time.
On October 31, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in an interest-bearing demand deposit account at JPMorgan Chase Bank, N.A., with Continental continuing to act as trustee, until the earlier of the consummation of our initial Business Combination or our liquidation. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government securities or money market funds.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
On November 2, 2023, we held the Second Special Meeting, at which our stockholders approved, among other things, the Charter Amendment Proposals. In connection with the vote to approve the Charter Amendment Proposals, the holders of 1,831,599 shares of Class A Common Stock properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.79 per share, for an aggregate redemption amount of $19,763,618.
There were no such repurchases of our equity securities by us or an affiliate during the fiscal quarter covered by the Report.
Item 3. | Defaults upon Senior Securities. |
None.
Item 4. | Mine Safety Disclosures. |
Not applicable.
Item 5. | Other Information |
None.
Item 6. | Exhibits. |
The following exhibits are filed as part of, or incorporated by reference into, this Report.
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101.SCH | Inline XBRL Taxonomy Extension Schema Document.* | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.* | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document.* | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.* | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.* | |
104 | Cover Page Interactive Data File (Embedded as Inline XBRL document and contained in Exhibit 101).* |
+ | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5) or 601(b)(2), as applicable. The Company agrees to furnish supplementally a copy of all omitted exhibits and schedules to the SEC upon its request. |
* | Filed herewith. |
** | Furnished herewith. |
(1) | Incorporated by reference to the Company’s Current Report on Form 8-K, filed with the SEC on October 25, 2023. |
(2) | Incorporated by reference to the Company’s Current Report on Form 8-K, filed with the SEC on November 8, 2023. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
INTEGRAL ACQUISITION CORPORATION 1 | ||||||
Dated: November 21, 2023 | /s/ Enrique Klix | |||||
Name: | Enrique Klix | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Dated: November 21, 2023 | /s/ Oliver Matlock | |||||
Name: | Oliver Matlock | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
33
EXHIBIT 31.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Enrique Klix, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Integral Acquisition Corporation 1; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 21, 2023 | By: | /s/ Enrique Klix |
||||
Enrique Klix | ||||||
Chief Executive Officer (Principal Executive Officer) |
EXHIBIT 31.2
CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER
PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Oliver Matlock, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Integral Acquisition Corporation 1; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 21, 2023 | By: | /s/ Oliver Matlock |
||||
Oliver Matlock | ||||||
Chief Financial Officer (Principal Financial Officer) |
EXHIBIT 32.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Integral Acquisition Corporation 1 (the “Company”) for the quarterly period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Enrique Klix, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company, as of and for the period covered by the Report. |
Date: November 21, 2023 | By: | /s/ Enrique Klix |
||||
Enrique Klix | ||||||
Chief Executive Officer (Principal Executive Officer) |
EXHIBIT 32.2
CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Integral Acquisition Corporation 1 (the “Company”) for the quarterly period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Oliver Matlock, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company, as of and for the period covered by the Report. |
Date: November 21, 2023 | By: | /s/ Oliver Matlock |
||||
Oliver Matlock | ||||||
Chief Financial Officer (Principal Financial Officer) |