# EDGAR Filing Document

**Accession Number:** 0001018281
**File Stem:** 0001437749-23-008073
**Filing Date:** 2023-3
**Character Count:** 204612
**Document Hash:** 1c8bffe1f69b4c87350c4fe0f98f3939
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-008073.hdr.sgml**: 20230328

**ACCESSION NUMBER**: 0001437749-23-008073

**CONFORMED SUBMISSION TYPE**: 10-12G

**PUBLIC DOCUMENT COUNT**: 41

**FILED AS OF DATE**: 20230328

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTEGRAL TECHNOLOGIES INC
- **CENTRAL INDEX KEY:** 0001018281
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRONIC COMPONENTS, NEC [3679]
- **IRS NUMBER:** 980163519
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 10-12G
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-28353
- **FILM NUMBER:** 23765799

**BUSINESS ADDRESS:**
- **STREET 1:** 2605 EASTSIDE PARK ROAD
- **STREET 2:** SUITE 1
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47715
- **BUSINESS PHONE:** (812) 550-1770

**MAIL ADDRESS:**
- **STREET 1:** 2605 EASTSIDE PARK ROAD
- **STREET 2:** SUITE 1
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47715

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INTEGRAL TECHNOLOGIES INC /CN/
- **DATE OF NAME CHANGE:** 19991105

[**Table of Contents**](#toc)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10**

**GENERAL FORM FOR REGISTRATION OF SECURITIES**

**Pursuant to Section 12(b) or (g) of The Securities Exchange Act of 1934**

---

| |
|:---|
| **Integral Technologies, Inc.** |
| *(Exact name of registrant as specified in charter)* |

---

---

| | |
|:---|:---|
| **Nevada** | **98-0163519** |
| *(State or other jurisdiction of*<br> *incorporation or organization)* | *(I.R.S. Employer*<br> *Identification No.)* |
| **2605 Eastside Park Road, Suite 1 Evansville, IN** | **47715** |
| *(Address of principal executive offices)* | *(Zip Code)* |

---

---

| |
|:---|
| **+1 (812) 550-1770** |
| *(Registrant*'*s telephone number, including area code)* |

---

Securities to be registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| **Title of each class to be registered** | **Name of each exchange on which**<br> **each class is to be registered** |

---

Securities to be registered pursuant to Section 12(g) of the Act:

---

| |
|:---|
| **Common Stock, $0.001 par value** |
| *(Title of class)* |

---

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☑ Smaller reporting company ☑ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

[**Table of Contents**](#toc)

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **PAGE** |
| Item 1 | [Business](#bus) | 3 |
| Item 1A | [Risk Factors](#risk) | 5 |
| Item 2 | [Financial Information](#fininfo) | 9 |
| Item 3 | [Properties](#props) | 10 |
| Item 4 | [Security Ownership Of Certain Beneficial Owners And Management](#secown) | 10 |
| Item 5 | [Directors And Executive Officers](#dirs) | 11 |
| Item 6 | [Executive Compensation](#exco) | 12 |
| Item 7 | [Certain Relationships And Related Transactions, And Director Independence](#cert) | 12 |
| Item 8 | [Legal Proceedings](#legal) | 13 |
| Item 9 | [Market Price Of And Dividends On The Registrant's Common Equity And Related Stockholder Matters](#mkt) | 13 |
| Item 10 | [Recent Sales Of Unregistered Securities](#recent) | 14 |
| Item 11 | [Description Of Registrant's Securities To Be Registered](#desc) | 14 |
| Item 12 | [Indemnification Of Directors And Officers](#indem) | 15 |
| Item 13 | [Financial Statements And Supplementary Data](#fin) | 15 |
| Item 14 | [Changes In And Disagreements With Accountants On Accounting And Financial Disclosure](#change) | 15 |
| Item 15 | [Financial Statements And Exhibits](#exs) | 15 |

---

------

[**Table of Contents**](#toc)

**INFORMATION REQUIRED IN REGISTRATION STATEMENT**

---

| | |
|:---|:---|
| **ITEM 1.** | **BUSINESS.** |

---

**Cautionary Note Regarding Forward Looking Statements**

This Form 10 contains forward-looking statements including statements regarding the Company's implementation of its business plan and expected timelines for meeting its objectives, the need for capital to fund and grow its operations, and liquidity. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements are described in Item 1A. – Risk Factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

**Introductory Comment**

We are filing this General Form for Registration of Securities on Form 10 to register our common stock pursuant to Section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act"). Once this registration statement is deemed effective, we will be subject to the requirements of Section 13(a) under the Exchange Act, which will require us to file annual reports on Form 10-K (or any successor form), quarterly reports on Form 10-Q (or any successor form), and current reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act.

**Company Overview**

Integral Technologies, Inc. ("Integral," the "Company" or "we") was incorporated under the laws of the State of Nevada on February 12, 1996. The major commercial milestones for the company have been the signing of two, 10-year license agreements with Avient Corporation and Hanwha Advanced Materials of South Korea. The initial terms of these agreements expire in 2028 and 2023 respectively. The Company also entered into a technology and asset purchase agreement with Pivotal. Besides the minimal royalties from these license agreements, the Company currently has little operations and is evaluating a number of strategic alternatives including, but not limited to, seeking to acquire a new business in the United States, including potentially by means of a reverse merger with an operating entity. We have not generated material revenues since 2018 and does not expect to do so in the short-term.

Although we have been in discussions with potential partners or targets, we have not entered into any definitive agreements. The evaluation and selection of a business opportunity is a complex and uncertain process, and we have not yet identified a target operating business for acquisition. Business opportunities that we believe are in the best interests of the Company and its shareholders may be scarce, or we may be unable to attract the businesses we identify as viable for our objectives, including due to competitive forces in the marketplace beyond our control. The Company has engaged Ascentaur, LLC, a business consulting firm to assist in identifying prospective partners to enhance the Company's future business opportunities. There is no assurance that we will be able to locate compatible business opportunities for the Company. See Item 1A - Risk Factors.

------

[**Table of Contents**](#toc)

**Our Intellectual Property**

We have developed an innovative, electrically, and thermally conductive resin-based material called "ElectriPlast®." The ElectriPlast® polymer is a compounded formulation of resin-based materials that are conductively loaded, or doped, with a proprietary-controlled, balanced concentration of micron conductive materials, and then pelletized using our patented manufacturing process. The conductive loading or doping within this pellet is then homogenized using conventional molding techniques and conventional molding equipment. The end result is a product that can be molded into any of the infinite number of shapes and sizes associated with plastics, is non-corrosive, and can serve as an electrically conductive alternative material to metal. ElectriPlast® is a patented non-corrosive, durable, conductive plastic pellet that replaces the metallic component currently used for shielding and conductive devices, thus creating applications never before possible and with a 40-60% weight reduction. Various examples of applications for ElectriPlast® include antennas, EMI shielding, lighting circuitry, switch actuators, resistors, batteries, medical devices, thermal management and cable connector bodies, among many others.

Our business model was to generate revenue from license fees and/or royalty revenue stream from the use or sale of our patent portfolio and proprietary "know-how". Our business model called for collaborating with leading resin and fiber suppliers, manufacturers, and technology innovators to manufacture ElectriPlast®, and develop new product applications for ElectriPlast®.

In addition to seeking a strategic partner, we have adjusted our business model to include selling certain intellectual property ("IP") assets that we could not develop internally. In 2019, we sold our bipolar plate ("biplate") technology to Pivotal Battery Corp ("Pivotal"), a company which James Eagan, our Chairman of the Board, is also the Chairman. The Company initially planned to develop the biplate technology inhouse and then commercialize either through the sale of biplates, licensing its manufacture, or through a sale of the entire technology once it had been fully developed. Due to financial limitations, in-house development proved infeasible as was continuing to fund the patent application process. The sale of the biplate technology and related IP requires Pivotal to purchase material, and under certain conditions, exclusively from the Company for 10 years for the production of the biplate, while providing certain rights to the Company to maintain its role as an exclusive supplier. The agreement includes a royalty obligation based on revenue. Since the purchase, Pivotal has obtained two patents from the patent application included in the sale and completed multiple sets of prototype batteries. As part of the sale of the biplate technology, Pivotal entered into Amendment No. 1 To Technology Asset Purchase Agreement, which includes a purchase price of $2,000,000 and 1,500,000 shares of Pivotal common stock. To date, Pivotal has paid the Company $422,800, which is not applied towards the purchase price but is being treated as additional consideration for the sale of the biplate technology. We believe that our remaining IP, outside the already licensed patents related to EMI shielding, especially those patents related to highly conductive end-user applications, would have material value to a number of industries and we will seek to sell these assets when the situation comes to fruition.

**Competition and Market Conditions**

We will face substantial competition in our efforts to identify and pursue a business partner. The primary source of competition is expected to be from other companies organized and funded for similar purposes, including small venture capital firms, blank check companies, and wealthy investors, many of which may have substantially greater financial and other resources than we do. Considering our limited financial and human resources, unless we find a partner that wants to utilize our current intellectual property, we are at a competitive disadvantage compared to many of our competitors in our efforts to obtain an operating business or assets necessary to commence our operations in a new field. Additionally, with the economic downturn caused by the coronavirus pandemic, many venture capital firms and similar firms and individuals have been seeking to acquire businesses at discounted rates, and we therefore currently face additional competition and resultant difficulty obtaining a business. We expect these conditions to persist at least until such time as the economy recovers. Further, even if we are successful in obtaining a business or assets for new operations, we expect there to be enhanced barriers to entry in the marketplace in which we decide to operate because of reduced demand and/or increased raw material costs caused by the pandemic and other economic forces that are beyond our control.

**Employees**

As of March 27th, 2023, we had one officer and two directors and no employees.

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **ITEM 1A.** | **RISK FACTORS.** |

---

Any investment in our securities involves a high degree of risk. Investors should carefully consider the risks described below and all of the information contained in this filing before deciding whether to purchase our securities. Our business, financial condition and results of operations could be materially adversely affected by these risks if any of them actually occur. This filing also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks we face as described below and elsewhere in this Form 10.

**There is substantial doubt about our ability to continue operating as a going concern.**

We have experienced losses from operations since inception and have never generated positive cash flow. The success of our business plan during the next 12 months and beyond will be contingent upon obtaining sufficient financing to cover our operating costs and growth initiatives. This is because we do not anticipate generating material revenue from operations in the short term nor being able to raise capital (prior to consummating a business combination). As of December 31, 2022, the Company had $6,616,121 of outstanding debt, not including interest, penalties and other fees due under the notes. The reports from our independent registered public accounting firm for the fiscal year ended June 30, 2022, and prior years include an explanatory paragraph stating the Company has recurring net losses from operations, negative operating cash flows, does not yet generate revenue from operations and will need additional working capital for ongoing operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. If we are unable to obtain sufficient funding and/or generate material revenue to fund our operations and business plan, our business, prospects, financial condition and results of operations will be materially and adversely affected, we may be unable to continue as a going concern in which case you in turn would lose your investment.

**We currently have nominal operations, and investors therefore have no basis on which to evaluate the Company**'**s future prospects.**

We currently have nominal operations and will be reliant upon a merger with or acquisition of an operating business to commence operations and generate material revenue or raise capital in order to commercialize our intellectual property. Although we have what we believe is valuable intellectual property including our patents, because we have no ability to raise capital to commercialize those assets, we are required to seek out a target business which may utilize our intellectual property. Because we have little operations, investors have no basis upon which to evaluate our ability to achieve our business objective of locating and completing a business combination with a target business. We have no current arrangements or understandings with any prospective target business concerning a business combination and may be unable to complete a business combination in a reasonable timeframe, on reasonable terms or at all. If we fail to complete a business combination as planned, we will never generate any operating revenues.

**We may face difficulties or delays in our search for a business combination, and we may not have access to sufficient capital to consummate a business combination.**

We may face difficulty identifying a viable business opportunity or negotiating or paying for any resulting business combination. Economic factors that are beyond our control, including the COVID-19 pandemic and consequent economic downturn, as well as increased competition for acquisitions of operating entities that we expect to encounter as a result thereof, may hinder our efforts to locate and/or obtain a business that is suitable for our business goals at a price we can afford and on terms that will enable us to sufficiently grow our business to generate value to our shareholders. We have limited capital, and we may not be able to take advantage of any available business opportunities on favorable terms or at all due to the limited availability of capital. There can be no assurance that we will have sufficient capital to provide us with the necessary funds to successfully develop and implement our plan of operation or acquire a business we deem to be appropriate or necessary to accomplish our objectives, in which case we may be forced to terminate our business plan and your investment in the Company could become worthless.

**If we are not successful in acquiring a new business and generating material revenues, investors will likely lose their investment.**

If we are not successful in developing a viable business plan and acquiring a new business through which to implement it, our investors' entire investment in the Company could become worthless. Even if we are successful in combining with or acquiring the assets of an operating entity, we can provide no assurances that the Company will be able to generate significant revenue therefrom in the short-term or at all or that investors will derive a profit from their investment. If we are not successful, our investors will likely lose their entire investment.

------

[**Table of Contents**](#toc)

**Because we have no capital, we may need to raise additional capital in the future by issuing debt or equity securities, the terms of which may dilute our current investors and/or reduce or limit their liquidation or other rights.**

We may require additional capital to acquire a business. We may not be able to obtain additional capital when required. Future business development activities, as well as administrative expenses such as salaries, insurance, general overhead, legal and compliance expenses and accounting expenses will require a substantial amount of additional capital.

The terms of securities we issue in future capital raising transactions may be more favorable to new investors, and may include liquidation preferences, superior voting rights or the issuance of other derivative securities, which could have a further dilutive effect on or subordinate the rights of our current investors. Any additional capital raised through the sale of equity securities will likely dilute the ownership percentage of our shareholders. Additionally, any debt securities we issue would likely create a liquidation preference superior that of our current investors and, if convertible into shares of common stock, would also pose the risk of dilution.

**We may encounter difficulty locating and consummating a business combination, including as a result of the competitive disadvantages we have.**

We expect to face intense competition in our search for a revenue-producing business to combine with or acquire. Given the current economic climate, venture capital firms, larger companies, blank check companies such as special purpose acquisition companies and other investors are purchasing operating entities or the assets thereof in high volumes and at relatively discounted prices. These parties may have greater capital or human resources than we do and/or more experience in a particular industry within which we choose to search. Most of these competitors have a certain amount of liquid cash available to take advantage of favorable market conditions for prospective business purchaser such as those caused by the recent pandemic. Any delay or inability to locate, negotiate and enter into a business combination as a result of the relative illiquidity of our current asset or other disadvantages we have relative to our competitors could cause us to lose valuable business opportunities to our competitors, which would have a material adverse effect on our business.

**We may expend significant time and capital on a prospective business combination that is not ultimately consummated.**

The investigation of each specific target business and any subsequent negotiation and drafting of related agreements, SEC disclosure and other documents will require substantial amounts of management's time and attention and material additional costs in connection with outsourced services from accountants, attorneys and other professionals. We will likely expend significant time and resources searching for, conducting due diligence on, and negotiating transaction terms in connection with a proposed business combination that may not ultimately come to fruition. Unanticipated issues which may be beyond our control or that of the seller of the applicable business may arise that force us to terminate discussions with a target company, such as the target's failure or inability to provide adequate documentation to assist in our investigation, a party's failure to obtain required waivers or consents to consummate the transaction as required by the inability to obtain the required audits, applicable laws, charter documents and agreements, the appearance of a competitive bid from another prospective purchaser, or the seller's inability to maintain its operations for a sufficient time to allow the transaction to close. Such risks are inherent in any search for a new business and investors should be aware of them before investing in an enterprise such as ours.

**We may engage in a business combination that causes tax consequences to us and our shareholders.**

Federal and state tax consequences will, in all likelihood, be a significant factor in considering any business combination that we may undertake. Under current federal law, such transactions may be subject to significant taxation to the buyer and its shareholders under applicable federal and state tax laws. While we intend to structure any business combination so as to minimize the federal and state tax consequences to the extent practicable in accordance with our business objectives, there can be no assurance that any business combination we undertake will meet the statutory or regulatory requirements of a tax-free reorganization or similar favorable treatment or that the parties to such a transaction will obtain the tax treatment intended or expected upon a transfer of equity interests or assets. A non-qualifying reorganization, combination or similar transaction could result in the imposition of significant taxation, both at the federal and state levels, which may have an adverse effect on both parties to the transaction, including our shareholders.

------

[**Table of Contents**](#toc)

**It is unlikely that our shareholders will be afforded any opportunity to evaluate or approve a business combination.**

It is unlikely that our shareholders will be afforded the opportunity to evaluate and approve a proposed business combination. In most cases, business combinations do not require shareholder approval under applicable law, and our Articles of Incorporation and Bylaws do not afford our shareholders with the right to approve such a transaction. In order to develop and implement our business plan, we may in the future hire lawyers, accountants, technical experts, appraisers, or other consultants to assist with determining the Company's direction and consummating any transactions contemplated thereby. We may rely on such persons in making difficult decisions in connection with the Company's future business and prospects. The selection of any such persons will be made by our Board, and any expenses incurred, or decisions made based on any of the foregoing could prove to be adverse to the Company in hindsight, the result of which could be diminished value to our shareholders.

**We may attempt to complete a business combination with a private target company about which little information is available, and such target entity may not generate revenue as expected or otherwise by compatible with us as expected.**

In pursuing our search for a business to acquire, we will likely seek to complete a business combination with a privately held company. Very little public information generally exists about private companies, and the only information available to us prior to making a decision may be from documents and information provided directly to us by the target company in connection with the transaction. Such documents or information or the conclusions we draw therefrom could prove to be inaccurate or misleading. As such, we may be required to make our decision on whether to pursue a potential business combination based on limited, incomplete or faulty information, which may result in our subsequent operations generating less revenue than expected, which could materially harm our financial condition and results of operations.

**Our ability to assess the management of a prospective target business may be limited and, as a result, we may acquire a target business whose management does not have the skills, qualifications or abilities to enable a seamless transition, which could, in turn, negatively impact our results of operations.**

When evaluating the desirability of a potential business combination, our ability to assess the target business's management may be limited due to a lack of time, resources or information. Our management's assessment of the capabilities of the target's management, therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities expected. Further, in most cases the target's management may be expected to want to manage us and replace our Chief Executive Officer. Should the target's management not possess the skills, qualifications or abilities necessary to manage a public company or assist with their former entity's merger or combination into ours, the operations and profitability of the post-acquisition business may be negatively impacted, and our shareholders could suffer a reduction in the value of their shares.

**Changes in laws or regulations, or a failure to comply with the laws and regulations applicable to us, may adversely affect our business, ability to negotiate and complete a business combination, and results of operations.**

We are subject to laws and regulations enacted by federal, state and local governments. In addition to SEC regulations, any business we acquire in the future may be subject to substantial legal or regulatory oversight and restrictions, which could hinder our growth and expend material amounts on compliance. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application by courts and administrative judges may also change from time to time, and any such changes could be unfavorable to us and could have a material adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could result in material defense or remedial costs and/or damages have a material adverse effect on our financial condition.

**Due to factors beyond our control, our stock price will be volatile.**

There is currently no market for our common stock, and there can be no guarantee that an active market for our common stock will develop once we begin trading, even if we are successful in consummating a business combination. Further, even if an active market for our common stock develops, it will likely be subject to significant price volatility when compared to more seasoned issuers. We expect that the price of our common stock will be more volatile than more seasoned issuers for the foreseeable future. Fluctuations in the price of our common stock can be based on various factors in addition to those otherwise described in this Form 10, including:

● A prospective business combination and the terms and conditions thereof;

● The operating performance of any business we acquire, including any failure to achieve material revenues therefrom;

● The performance of our competitors in the marketplace, both pre- and post-combination;

● The public's reaction to our press releases, SEC filings, website content and other public announcements and information;

------

[**Table of Contents**](#toc)

● Changes in earnings estimates of any business that we acquire or recommendations by any research analysts who may follow us or other companies in the industry of a business that we acquire;

● Variations in general economic conditions, including as may be caused by uncontrollable events such as the COVID-19 pandemic and the resulting decline in the economy;

● The public disclosure of the terms of any financing we disclose in the future;

● The number of shares of our common stock that are publicly traded in the future; and

● Actions of our existing shareholders, including sales of common stock by our then directors and then executive officers or by significant investors and debt holders.

Many of these factors are beyond our control and may decrease the market price of our common stock, regardless of whether we can consummate a business combination and of our current or subsequent operating performance and financial condition. In the past, following periods of volatility in the market price of a company's securities, securities class action litigation has often been instituted. A securities class action suit against us could result in substantial costs and divert our management's time and attention, which would otherwise be used to benefit our business.

**Future issuance of our common stock could dilute the interests of our existing shareholders, particularly in connection with an acquisition and any resulting financing.**

We may issue additional shares of our common stock in the future. The issuance of a substantial amount of our common stock could substantially dilute the interests of our shareholders. In addition, the sale of a substantial amount of common stock in the public market, either in the initial issuance or in a subsequent resale by the target company in a business combination which received our common stock as consideration or by investors who has previously acquired such common stock could have an adverse effect on the market price of our common stock.

**Our registration under the Securities Exchange Act of 1934 could be revoked by the Securities and Exchange Commission if we fail to file required reports.**

Even if we are successful in registering our common stock with the Securities and Exchange Commission (the "SEC") on this registration statement on Form 10, if we fail to file reports as required under the Exchange Act, we may lose our registration. While we intend to comply with the Exchange Act's reporting requirements moving forward, and we may be unable to comply in the future as we did in the past. For example, in 2021, the SEC revoked our registration under the Act for failure to file required reports.

If we are unable to comply with the SEC reporting provisions in the future, such failure will affect the liquidity of our common stock and act as a depressant to the price. We cannot assure you we will not become delinquent again.

**Due to recent changes to Rule 15c2-11 under the Exchange Act, our common stock may become subject to limitations or reductions on stock price, liquidity or volume.**

On September 16, 2020, the SEC adopted amendments to Rule 15c2-11 under the Exchange Act. This Rule applies to broker-dealers who quote securities listed on over-the-counter markets such as our common stock. The Rule as amended prohibits broker-dealers from publishing quotations on OTC markets for an issuer's securities unless they are based on current publicly available information about the issuer. When it becomes effective, the amended Rule will also limit the Rule's "piggyback" exception, which allows broker-dealers to publish quotations for a security in reliance on the quotations of a broker-dealer that initially performed the information review required by the Rule, to issuers with current publicly available information or issuers that are up to date in their Exchange Act reports. As of this date, we are uncertain as to what actual effect the Rule may have on us.

The Rule changes could harm the liquidity and/or market price of our common stock by either preventing our shares from being quoted or driving up our costs of compliance.

------

[**Table of Contents**](#toc)

**We are subject to the** "**penny stock**" **rules which will adversely affect the liquidity of our common stock.**

The SEC has adopted regulations which generally define "penny stock" to be an equity security that has a market price of less than $5.00 per share, subject to specific exemptions. We do not expect our stock price to be above $5.00 in the foreseeable future. The "penny stock" designation will require any broker-dealer selling our securities to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities. These rules will limit the ability of broker-dealers to solicit purchases of our common stock and therefore reduce the liquidity of the public market for our shares.

Broker-dealers are increasingly reluctant to permit investors to buy or sell speculative unlisted stock and often impose costs which make it uneconomical for small shareholders to do so. Moreover, as a result of apparent regulatory pressure from the SEC and the Financial Industry Regulatory Authority ("FINRA"), a growing number of broker-dealers decline to permit investors to purchase and sell or otherwise make it difficult to sell shares of penny stocks. The "penny stock" designation may have a depressive effect upon our common stock price once we are trading.

---

| | |
|:---|:---|
| **ITEM 2.** | **FINANCIAL INFORMATION.** |

---

**Management's Discussion and Analysis of Financial Condition and Results of Operations**

Certain statements in "Management's Discussion and Analysis and Plan of Financial Condition and Results of Operations" are forward-looking statements that involve risks and uncertainties. Words such as may, will, should, would, anticipates, expects, intends, plans, believes, seeks, estimates and similar expressions identify such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. You should read the following discussion in conjunction with our financial statements, which are included elsewhere in this Form 10. We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements. Our actual results could differ materially from those discussed in the forward-looking statements. See "Cautionary Note Regarding Forward Looking Statements" and "Summary of Risk Factors" contained in the forepart of this Form 10 for more information.

**Overview**

Our contemplated business plan is to find a partner or acquisition target to merge with who will utilize our intellectual property. As of this filing, we have not entered into any agreements with any such partner or acquisition targets.

**Significant Accounting Policies and Recent Accounting Pronouncements**

Please see the notes to our Financial Statements for information about our Significant Accounting Policies and Recent Accounting Pronouncements.

**Results of Operations**

The following discussion should be read in conjunction with the financial statements and notes thereto included elsewhere in this report.

<u>Fiscal Year Ended June 30, 2022, Compared to the Fiscal Year Ended June 30, 2021.</u>

During the year ended June 30, 2022, the Company's operating activities increased / decreased compared to the prior year ended June 30, 2021, primarily as a result of the following:

---

| |
|:---|
| <u>Revenue</u> decreased by $74,786 due to the reduction in the amount received and recognized pursuant to the technology and asset purchase agreement with Pivotal; |
| <u>Selling, general and administrative</u> increased by $108,210 pursuant to professional fees incurred to complete an audit and file its form 10 to remove the Company's trading suspension; |
| <u>Interest expense</u><br> increased by $185,819 due to an increase in the amount of compounding debt held by the Company; |

---

<u>Six Months ended December 31, 2022, compared to the Six Months Ended December 31, 2021.</u>

During the six months ended December 31, 2022, the Company's operating activities increased / decreased compared to the prior six months ended December 31, 2021, primarily as a result of the following:

---

| |
|:---|
| <u>Selling, general and administrative</u> increased by $23,121 pursuant to professional fees incurred to complete an audit and file its form 10 to remove the Company's trading suspension; |
| <u>Interest expense</u> increased by $136,312 due to an increase in the amount of compounding debt held by the Company; |

---

------

[**Table of Contents**](#toc)

**Liquidity and Capital Resources**

We have approximately $2,000 in available cash as of March 27, 2023, and for the past two years we have been relying on loans from our current investors. We currently have $6,616,121 in outstanding debt, most of which is in default. As reflected in the Financial Statements contained elsewhere in this Form 10, management has expressed substantial doubt about our ability to continue as a going concern during the fiscal year ended June 30, 2022 and the six months ended December 31, 2022, unless we can raise the required capital or generate material revenue to fund our operations. We do not believe that we will be able to raise any capital until such time as we conduct a business combination.

<u>Net Cash used by Operating Activities</u>:

During the year ended June 30, 2022, the Company used $66,091 in operating activities (June 30, 2021 – $9,612), with most activities focused on completing the audit and the filing of its form 10.

During the six months ended December 31, 2022, the Company used $41,038 in operating activities (December 31, 2021 – $37,465), with most activities focused on completing the audit and the filing of its form 10.

<u>Cash Used in Investing Activities</u>:

There were no investing activities during the years ended June 30, 2022, or 2021.

There were no investing activities during the six months ended December 31, 2022, or 2021.

<u>Cash Flows from Financing Activities</u>:

During the year ended June 30, 2022, the Company raised $100,000 (June 30, 2021 - $50,000) in debt financing and repaid $20,700 (June 30, 2021 – $27,600) of debt.

During the six months ended December 31, 2022, the Company raised $23,00 in debt financing and repaid $6,900 of debt. During the six months ended December 31, 2021, the Company raised $40,000 in debt financing.

---

| | |
|:---|:---|
| **ITEM 3.** | **PROPERTIES.** |

---

We do not own any real property and do not pay for office space.

---

| | |
|:---|:---|
| **ITEM 4.** | **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.** |

---

The following table sets forth the number of shares of Integral's voting stock beneficially owned as of March 27, 2023 by (i) those persons known by Integral to be owners of more than 5% of Integral's common stock, (ii) each director of Integral, (iii) all Named Executive Officers (as defined in Item 6), and (iv) all executive officers and directors of Integral as a group:

---

| | | | |
|:---|:---|:---|:---|
| **Title of Class** | **Name and Address of Beneficial Owner** | **Amount and**<br> **Nature of** <br> **Beneficial**<br> **Owner** <br> **(1)** | **Percent of**<br> **Voting** <br> **Power (1)** |
| **Directors and Executive Officers:** | **Directors and Executive Officers:** |  |  |
| Common Stock | Doug Bathauer (2)(3) | 243823 | \* |
| Common Stock | James Eagan (2)(3) | 1556250 | \* |
| Common Stock | All executive officers and directors as a group (2 persons) | 1800073 | \* |
| Common Stock | SBI Investments LLC, 2014-1 | 24367404 | 9.99% |
| Common Stock | Oasis Capital, LLC | 24367404 | 9.99% |

---

\* Less than 1%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents voting power. Applicable percentages are based on 246,135,391 shares of common stock, beneficial ownership is determined under the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to options, warrants and convertible notes currently exercisable or convertible, or exercisable or convertible within 60 days are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. It does not include options held by our management, which are subject to performance standards. Unless otherwise indicated in the footnotes to this table, Integral believes that each of the shareholders named in the table has sole voting and investment power with respect to the shares indicated as beneficially owned by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) An executive officer of the Company or its wholly-owned subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Mr. Jonathan Juchno is the managing partner of the reporting person. Address is: 1111 Brickell Avenue, Suite 2920, Miami, FL 33131. The beneficial ownership of the reporting person is limited to 9.99% of the Company's outstanding securities as a result of conversion and/or exercise blockers in its notes and warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Mr. Adam Long is the managing partner of the reporting person. Address is: 208 Ponce de Leon Ave, Suite 1600, San Juan, PR 00918. The beneficial ownership of the reporting person is limited to 9.99% of the Company's outstanding securities as a result of conversion and/or exercise blockers in its notes and warrants.

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **ITEM 5.** | **DIRECTORS AND EXECUTIVE OFFICERS.** |

---

The following is a list of our directors and executive officers. All directors serve one-year terms or until each of their successors are duly qualified and elected. The officers are elected by the board of directors.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Doug Bathauer | 57 | Chief Executive Officer, President, Treasurer and Director |
| James Eagan | 59 | Chairman of the Board of Directors |

---

**James Eagan.** Mr. Eagan has been our Chairman of the Board since November 2012, and on January 23, 2014, he was appointed Chief Executive Officer of ElectriPlast Corporation, our wholly-owned subsidiary. Since March 2019, Mr. Eagan has also been the Chairman and a director and since September 2019 a consultant to Pivotal Battery Corp., the purchaser of our bipolar plate technology.

**Doug Bathauer.** In November 2012, Mr. Bathauer was appointed to a director and Chief Executive Officer of the Company.

**Family Relationships**

There are no family relationships among our directors or officers.

**Director Independence**

Our Board has determined that neither director is independent under the Nasdaq Stock Market listing rules.

**Committees of the Board of Directors**

Our Company has a Board of Directors that is currently comprised of two members. Each director holds office until the next annual meeting of shareholders or until a successor is elected or appointed.

Our Board of Directors do not currently have any committees. The Board of Directors selects our independent public accountant, establishes procedures for monitoring and submitting information or complaints related to accounting, internal controls or auditing matters, engages outside advisors, and makes decisions related to funding the outside auditory and non-auditory advisors.

**Code of Ethics**

On September 20, 2004, the Board of Directors established a written code of ethics that applies to each of our senior executive officers. A copy of that code is available on our corporate website at http://www.itkg.com. A copy of our Code of Business Conduct and Ethics will also be provided free of charge upon request to: CEO, Integral Technologies Inc. 2605 Eastside Park Road, Suite 1 Evansville, IN 47715.

**Section 16(a) Beneficial Ownership Reporting Compliance**

Section 16(a) of the Securities Exchange Act of 1934 requires our Company's officers and directors, and persons who own more than 10% of a registered class of our Company's equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission ("SEC"). Officers, directors, and greater than 10% shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based solely on our review of copies of such reports received or written representations from certain reporting persons, we believe that, during the year ended June 30, 2022, all Section 16(a) filing requirements applicable to our officers, directors and ten percent shareholders were timely complied with by such persons.

**Shareholder Communications**

Although we do not have a formal policy regarding communications with the Board, shareholders may communicate with the Board by writing to us at Integral Technologies, Inc., 2605 Eastside Park Road, Suite 1 Evansville, IN 47715. Shareholders who would like their submission directed to a member of the Board may so specify, and the communication will be forwarded, as appropriate.

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **ITEM 6.** | **EXECUTIVE COMPENSATION.** |

---

**Summary Compensation Table**

The following table sets forth all compensation, including bonuses, stock option awards and other payments, paid or accrued by Integral and/or its subsidiaries, to or for Integral's principal executive officer and two other highest paid executive officers whose total annual salary and bonus exceeded $100,000 (collectively, the "Named Executive Officers"), during the fiscal years ended June 30, 2022, and 2021.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal<br> Position** | **Fiscal<br> Year<br> Ended** <br> **June 30** | **Salary** <br> **$** | **Bonus** <br> **$** | **Stock** <br> **Awards**<br> **$** | **Options Awards** <br> **$** | **Non-Equity Incentive Plan Compensation** <br> **$** | **Nonqualified Deferred Compensation Earnings** <br> **$** | **All Other Compensation** <br> **$** | **Total** <br> **$** |
| James Eagan | 2022 | 75000 |  |  |  |  |  | 1000 | 76000 |
| Chairman, Director and CEO of wholly owned subsidiary ElectriPlast Corp. | 2021 | 75000 |  |  |  |  |  | 1000 | 76000 |
| Doug Bathauer | 2022 | 75000 |  |  |  |  |  | 1000 | 76000 |
| CEO, Treasurer, Director | 2021 | 75000 |  |  |  |  |  | 1000 | 76000 |

---

Mr. Eagan and Mr. Bathauer are each compensated $75,000 per year under oral agreements. As of December 31, 2022, Messrs. Eagan and Bathauer had accrued $462,773 and $437,500, respectively, in unpaid compensation.

**Director Compensation**

The directors of the Company have not received any compensation paid, distributed nor accrued from the Company for the last two fiscal years.

---

| | |
|:---|:---|
| **ITEM 7.** | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.** |

---

Our Board of Directors is comprised of two members, Doug Bathauer and James Eagan, and both also serve as executive officers of the Company.

On September 9, 2019, the Company entered into a Technology Asset Purchase Agreement (the "Agreement') with Pivotal Battery Corp. ("Pivotal"), a Delaware corporation, completing the sale of our bipolar plate technology, including U.S. Patent Applications Nos. 14/822,315 (Bipolar Plate and Method of Making and Using Same) and 16/236,533 (Method of Making Bipolar Plate), which includes our entire right, title and interest in such Patent Applications and the rights to the related Pending Patents. The sale includes, but is not limited to, all of the Company's trade secrets, know-how, confidential or proprietary information, shop rights, technical data, technology licenses, concepts, drawings, schematics, prototypes, improvements, enhancements, upgrades, materials, works of authorship, derivative, and derivative works related to the patent applications and pending patents for the bipolar plate. The total purchase price for the technology was $2,000,000, with the initial payment of $200,000 and the balance of $1,800,000 paid through a convertible secured promissory note (the "Note") due over a two-year period at an interest rate of 7% per annum. The Company was also to receive 1,500,000 shares of Pivotal's common stock. Those shares have never been issued to the Company. The outstanding principal amount of the Note was to be payable as follows:

1) $125,000 by or before December 31, 2019;

2) $175,000 by or before March 31, 2020;

3) $225,000 by or before June 30, 2020;

4) $225,000 by or before September 30, 2020;

5) $250,000 by or before December 31, 2020;

6) $250,000 by or before March 31, 2021;

7) $275,000 by or before June 30, 2021; and

8) $275,000 by or before September 30, 2021 and all accrued and unpaid interest

James Eagan, the Company's Chairman of the Board, was Pivotal's Chairman of the Board at the time of execution of the Agreement and remains the Chairman as of the filing of this Form 10. Mr. Eagan was also engaged by Pivotal to serve as a consultant in September 2019.

------

[**Table of Contents**](#toc)

Up until the recent amendment to the Note (see below), Pivotal was in default under the Note for, amongst other defaults, failure to timely make repayments. Since the entrance into the Agreement, Pivotal made payments totaling $422,800 to Integral. During this time, Integral made payments to Mr. Eagan of $314,705 towards his compensation payable. Additionally, Mr. Eagan has made loans to Pivotal in the amount of $141,000 of which approximately $120,000 of principal and $nil of interest has been repaid.

Effective June 30, 2022, the Company and Pivotal, amended the Agreement and the Note to provide for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. During the development phase of the Bipolar Plate, the payments under the Note would be $15,000 on December 31, 2022 (paid), and $25,000 every six months thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Upon commercialization of the Biplate ($500,000 in revenue in any fiscal quarter or $1,000,000 in any year), Pivotal would pay $250,000 per year, payable in $125,000 increments due on June 30the and December 31<sup>st</sup> until paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as described below, the amounts due under the Note would be required to be paid no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If there is a change of control of the Company (50% or more), then all payments under the Note would be deferred until December 31, 2027.

Please refer to Exhibit 10.2 for further information on the amendment to the Agreement and the Note.

Since October 2020, SBI Investments, LLC 2014-1 ("SBI") and Oasis Capital LLC, each who we believe are 5% owners, have lent the Company a total of $183,000. The promissory notes: (i) are not convertible, (ii) were or are each due 10 months from the issuance dates and (iii) pay 8% interest per annum on the maturity date. The issuance dates of the notes are as follows: (i) October 27, 2020 - $25,000 note, (ii) August 23, 2021 – $20,000 note, (iii) March 4, 2022 - $30,000 note, and (iv) December 12, 2022 - $23,000 note (invested only by SBI). Other than the most recent note issued to SBI, the Company is in default of convertible notes previously issued to these 5% owners.

---

| | |
|:---|:---|
| **ITEM 8.** | **LEGAL PROCEEDINGS.** |

---

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business. We currently have legal proceedings or claims from unpaid bills that may not likely have, individually or in the aggregate, a material adverse effect on business, financial condition or operating results.

---

| | |
|:---|:---|
| **ITEM 9.** | **MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT**'**S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.** |

---

**Market Information**

Because our common stock is not listed on a securities exchange and its quotations on OTC Pink were halted on March 25, 2021, there is currently no established public trading market for our common stock.

**Holders**

As of December 31, 2022, there were approximately 290 holders, of record of our common stock (this number does not include beneficial owners who hold shares at broker/dealers in "street-name").

------

[**Table of Contents**](#toc)

**Dividends**

As of December 31, 2022, the Company has accrued $40,244 in dividends on its preferred stock. Payment of any dividends will be dependent upon future earnings, if any, our financial condition, and other factors as deemed relevant by our Board of Directors.

**Repurchases of equity securities**

We did not repurchase any of our outstanding equity securities during the year ended June 30, 2022 and the six months ended December 31, 2022.

**Shares Eligible for Future Sale** 

All of the outstanding shares of common stock of the Company are restricted securities and cannot be sold under Rule 144 until 12 months have passed since this Form 10 is effective and the other requirements of Rule 144(i)(1)(ii) have been satisfied, including the Company being current in its SEC periodic reporting obligations.

In general, Rule 144 provides that any non-affiliate of the Company, who has held restricted common stock for at least 12-months, is entitled to sell their restricted stock freely, provided that the Company stays current in its SEC filings.

An officer, director or other person in control of the Company may sell after 12 months with the following restrictions: (i) the Company is current in its SEC filings, (ii) certain manner of sale provisions, (iii) the filing of a Form 144, and (iv) volume limitations limiting the sale of shares within any three-month period to a number of shares that does not exceed 1% of the total number of outstanding shares. A person who has ceased to be an affiliate at least three months immediately preceding the applicable sale and who has owned such shares of common stock for at least one year may sell the shares under Rule 144 without regard to any of the limitations described above.

Such shares may be sold outside of the United States. Further, such shares may be sold to purchasers in the United States under Section 4(a)(1) of the Securities Act if paid for more than two years ago and if the seller is not an affiliate of the Company. However, some broker-dealers and transfer agents will not accept legal opinion relying on Section 4(a)(1).

---

| | |
|:---|:---|
| **ITEM 10.** | **RECENT SALES OF UNREGISTERED SECURITIES.** |

---

There have been no sales of shares in the last three years.

---

| | |
|:---|:---|
| **ITEM 11.** | **DESCRIPTION OF REGISTRANT**'**S SECURITIES TO BE REGISTERED.** |

---

We are authorized to issue up to 250,000,000 shares of common stock, par value $0.001 per share, and 20,000,000 shares of preferred stock, par value $0.001 per share. As of December 31, 2022, 246,135,391 shares of common stock were issued and outstanding.

**Common Stock**

The holders of common stock are entitled to one vote per share on all matters submitted to a vote of shareholders, including the election of directors. There is no cumulative voting in the election of directors. The holders of common stock are entitled to any dividends that may be declared by the board of directors out of funds legally available for payment of dividends subject to the prior rights of holders of preferred stock and any contractual restrictions we have against the payment of dividends on common stock. In the event of our liquidation or dissolution, holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock. Holders of common stock have no preemptive rights and have no right to convert their common stock into any other securities.

**Preferred Stock**

We are authorized to issue 20,000,000 shares of $0.001 par value preferred stock in one or more series with such designations, voting powers, if any, preferences and relative, participating, optional or other special rights, and such qualifications, limitations and restrictions, as are determined by resolution of our Board of Directors. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company without further action by shareholders and could adversely affect the rights and powers, including voting rights, of the holders of common stock. In certain circumstances, the issuance of preferred stock could depress the market price of the common stock.

------

[**Table of Contents**](#toc)

The number of shares of Series B preferred stock is fixed at 1,000 shares, par value $0.001 per share. The Series B Preferred Stock ranks senior to all classes or series of capital stock of the Company now in existence with respect to the distributions upon liquidation, winding up or dissolution of the Company. The holders of the issued and outstanding shares of Series B Preferred Stock shall have no voting rights. As of June 30, 2022, 42 shares of Series B preferred stock were issued and outstanding.

---

| | |
|:---|:---|
| **ITEM 12.** | **INDEMNIFICATION OF DIRECTORS AND OFFICERS.**  |

---

Our certificate of incorporation provides that none of our directors will be personally liable to us or our shareholders for monetary damages for breach of fiduciary duty as a director, except for liability:

● For any breach of the director's duty of loyalty to us or our shareholders;

● For acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of the law;

● Under Section NRS 78.751 of the Nevada Revised Statutes for the unlawful payment of dividends; or

● For any transaction from which the director derives an improper personal benefit.

These provisions eliminate our rights and those of our shareholders to recover monetary damages from a director for breach of his fiduciary duty of care as a director except in the situations described above. The limitations summarized above, however, do not affect our ability or that of our shareholders to seek non-monetary remedies, such as an injunction or rescission against a director for breach of his fiduciary duty.

Section NRS 78.751 of the Nevada Revised Statutes provides a corporation with the power to indemnify any officer or director acting in his capacity as our representative who is or is threatened to be made a party to any lawsuit or other proceeding for expenses, judgment and amounts paid in settlement in connection with such lawsuit or proceeding. The indemnity provisions apply whether the action was instituted by a third party or was filed by one of our shareholders. The Nevada Revised Statutes provides that Section NRS 78.751 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of shareholders or disinterested directors or otherwise. We have provided for this indemnification in our Certificate of Incorporation because we believe that it is important to attract qualified directors and officers law, subject to one limitation described in the next sentence. We have further provided in our Certificate of Incorporation that no indemnification shall be available, whether pursuant to our Certificate of Incorporation or otherwise, arising from any lawsuit or proceeding in which we assert a direct claim, as opposed to a shareholders' derivative action, against any directors and officers. This limitation is designed to ensure that if we sue a director or officer we do not have to pay for his defense.

We have been advised that the SEC believes it is against public policy for us to indemnify our directors and officers for violations of the Securities Act and the Exchange Act. Accordingly, we have agreed that unless our attorneys advise us that the courts have ultimately decided whether the SEC is correct, we will let a court determine whether we can indemnify our directors and officers under such laws.

---

| | |
|:---|:---|
| **ITEM 13.** | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.** |

---

See pages F-1– F-20.

---

| | |
|:---|:---|
| **ITEM 14.** | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.** |

---

None.

---

| | |
|:---|:---|
| **ITEM 15.** | **FINANCIAL STATEMENTS AND EXHIBITS.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Audited consolidated financial statements for the years ended June 30, 2022, and June 30, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated financial statements for the six months ended December 31, 2022.

------

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;(c) Exhibit table.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exhibit** |  | **Incorporated by Reference**  | **Incorporated by Reference**  | **Incorporated by Reference**  |
| **No.** | **Exhibit Description** | **Form** | **Date** | **Number** |
| 3.1 | [Articles of Incorporation, as amended and currently in effect](http://www.sec.gov/Archives/edgar/data/1018281/000114036106007301/ex3_03.txt) | 10-QSB | 3/31/06 | 3.03 |
| 3.1(a) | [Certificate of Designation of the Rights, Preferences and Privileges of Series B Convertible Preferred Stock](http://www.sec.gov/Archives/edgar/data/1018281/000143774918021510/ex_131097.htm) | 8-K | 12/4/18 | 3.1 |
| 3.2 | [Bylaws, as amended and restated on December 31, 1997](http://www.sec.gov/Archives/edgar/data/1018281/000114036106007301/ex3_04.txt) | 10-QSB | 3/31/06 | 3.04 |
| 10.1 | [Technology Asset Purchase Agreement dated September 9, 2019](http://www.sec.gov/Archives/edgar/data/1018281/000143774919018164/ex_157566.htm) | 8-K | 9/11/19 | 10.1 |
| 10.2 | [Amendment No. 1 To Technology Asset Purchase Agreement](ex_427853.htm) |  |  | Filed |
| 10.3 | [Form of Promissory Note and Security Agreement – SBI and Oasis](ex_429802.htm) |  |  | Filed |
| 10.4 | [Form of Convertible Promissory Note dated May 12, 2017 – SBI](ex_429803.htm) |  |  | Filed |
| 10.5 | [Form of Convertible Promissory Note dated May 18, 2017 – Oasis](http://www.sec.gov/Archives/edgar/data/1018281/000143774917010906/ex10-2.htm) | 8-K | 6/8/17 | 10.2 |
| 10.6 | [Form of Securities Purchase Agreement dated May 18, 2017 – Oasis](http://www.sec.gov/Archives/edgar/data/1018281/000143774917010906/ex10-1.htm) | 8-K | 6/8/17 | 10.1 |
| 10.7 | [Promissory Note dated February 21, 2019](ex_429804.htm) |  |  | Filed |
| 10.8 | [Convertible Promissory Note – JMJ Financial](ex_429805.htm) |  |  | Filed |
| 10.9 | [Convertible note modification – SBI](ex_429576.htm) |  |  | Filed |
| 10.10 | [Convertible note modification – Oasis](ex_429577.htm) |  |  | Filed |
| 10.11 | [Professional Services Agreement - Ascentaur](ex_429985.htm) |  |  | Filed |
| 10.12 | [Amendment No. 1 to Professional Services Agreement - Ascentaur](ex_429986.htm) |  |  | Filed |
| 10.13 | [Amendment No. 2 to Professional Services Agreement - Ascentaur](ex_429987.htm) |  |  | Filed |
| 21.1 | [List of Subsidiaries](ex_428070.htm) |  |  | Filed |

---

Copies of this Form 10 (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to our Corporate Secretary at Integral Technologies, Inc., 2605 Eastside Park Road, Suite 1 Evansville, IN 47715.

------

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of Section 12 of the Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Integral Technologies, Inc.** | **Integral Technologies, Inc.** |
| Date: March 27, 2023 | By: | /s/ Doug Bathauer |
|  |  | Doug Bathauer<br> Chief Executive Officer |

---

------

[**Table of Contents**](#toc)

![logodmcl.jpg](logodmcl.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**<br>

To the shareholders and the board of directors of Integral Technologies Inc.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Integral Technologies Inc. (the "Company") as of June 30, 2022 and 2021, the related consolidated statements of operations, stockholders' deficit and cash flows*,* for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern** 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has incurred losses in developing its business, and further losses are anticipated. The Company requires additional funds to meet its obligations and the costs of its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in this regard are described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting in accordance with the standards of the PCAOB. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion in accordance with the standards of the PCAOB.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

**Embedded Conversion Features** 

*Critical Audit Matter Description*

As discussed in Note 10 of the financial statements, the Company has numerous convertible debentures from prior years with conversion rates that are determined by the closing bid price based on a given number of trading dates preceding the conversion date. This and other factors require the embedded conversion feature to be bifurcated and the fair value of the feature to be remeasured at each reporting period. Calculations and accounting for convertible debentures and embedded conversion features require management's judgements related to initial and subsequent recognition of the debt and related conversion features, use of a valuation model, and determination of the appropriate inputs used in the selected valuation model.

------

[**Table of Contents**](#toc)

*Critical Audit Matter Determination*

The embedded conversion features and resulting derivative liability is a highly complex area of accounting with significant impact on the liabilities, additional paid in capital and statement of operations of the Company. It takes a high degree to training to understand and recognized the accounting implications of the conversion features and to understand the assumptions and impact of the specific assumptions on the valuation model used in the calculation of the derivative liability.

*Critical Audit Matter Audit Procedures*

Our audit procedures related to evaluating the Company's accounting for convertible debentures with embedded conversion feature, were as follows:

- We inspected the convertible debenture agreements, identified the embedded conversion feature, confirmed the amount of outstanding debt, and recalculated the accrued interest.

- We assessed the assessments of the accounting treatment of the derivative liabilities

- We evaluated the appropriateness of the significant assumptions used in the estimation of the derivative liabilities at the balance sheet date and related accounting entries.

- We performed independent calculations on a test basis of specific derivatives to evaluate the model used in calculating the derivatives at various measurement dates.

**Warrant Liability**

*Critical Audit Matter Description*

The Company has common stock warrants issued from prior years with exercise prices that are determined by the closing bid price based on a given number of trading dates preceding the conversion date. This and other factors require the warrant to be accounted for as a derivative liability at fair value and the fair value of the feature to be remeasured at each reporting period. Calculations and accounting for warrants require management's judgements related to initial and subsequent recognition of the warrants, use of a valuation model, and determination of the appropriate inputs used in the selected valuation model.

*Critical Audit Matter Determination*

The warrants and corresponding derivative liability is a highly complex area of accounting with significant impact on the liabilities, and statement of operations of the Company. It takes a high degree to training to understand and recognized the accounting implications of the warrant and to understand the assumptions and impact of the specific assumptions on the valuation model used in the calculation of the derivative liability.

*Critical Audit Matter Audit Procedures*

Our audit procedures related to evaluating the Company's accounting for the warrant liability, were as follows:

- We inspected the convertible debenture agreements and warrant certificates, assessed the assessment of the accounting treatment of the warrants, and recalculated the fair value of the warrants.

- We evaluated the appropriateness of the significant assumptions used to calculate the derivative liability at the balance sheet date and related accounting entries.

- We performed independent calculations on a test basis of specific derivatives to evaluate the model used in calculating the derivatives at various measurement dates.

*/s/ DMCL*

DALE MATHESON CARR-HILTON LABONTE LLP

CHARTERED PROFESSIONAL ACCOUNTANTS

We have served as the Company's auditor since 2017

Vancouver, Canada

March 23, 2023

![audimg.jpg](audimg.jpg)

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022** | **June 30, 2021** |
| **ASSETS** |  |  |
| <u>Current assets:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $31983 | $18774 |
| **Total assets** | $31983 | $18774 |
| **LIABILITIES AND STOCKHOLDERS**' **DEFICIT** |  |  |
| <u>Current Liabilities:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | $1348727 | $1226792 |
| &nbsp;&nbsp;&nbsp; Related party payable | 830273 | 698573 |
| &nbsp;&nbsp;&nbsp; Dividend payable | 38305 | 31885 |
| &nbsp;&nbsp;&nbsp; Loans payable | 910861 | 743273 |
| &nbsp;&nbsp;&nbsp; Mandatorily redeemable preferred stock | 105000 | 103350 |
| &nbsp;&nbsp;&nbsp; Convertible debentures | 5020804 | 4057681 |
| **Total liabilities** | 8253970 | 6861554 |
| <u>Stockholders</u><u>'</u> <u>deficit:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Common stock and paid in capital in excess of $0.001 par value, 250,000,000 shares authorized, 246,135,391 (June 30, 2021 – 246,135,391) issued and outstanding | 61457574 | 61457574 |
| &nbsp;&nbsp;&nbsp; Preferred stock and paid-in capital in excess of $0.001 par value, 20,000,000 shares authorized, 42 (June 30, 2021 - 42) issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp; Share subscriptions and obligations to issue shares | 61250 | 61250 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (69740811) | (68361604) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total stockholders**' **deficit** | (8221987) | (6842780) |
|  **TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT** | $31983 | 18774 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Consolidated Statements of Operations**

**Years ended June 30, 2022 and 2021**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp; **Revenue**  | $39900 | $114686 |
| &nbsp;&nbsp;&nbsp; **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general, and administrative expenses | 359789 | 251579 |
| &nbsp;&nbsp;&nbsp; **Total operating expenses** | (359789) | (251579) |
| &nbsp;&nbsp;&nbsp; Accretion expense | (1650) | (3564) |
| &nbsp;&nbsp;&nbsp; Interest expense | (1057668) | (871849) |
| **Net Loss** | $(1379207) | $(1012306) |
| **Net loss per share** – **basic and diluted** | $(0.01) | $(0.00) |
| **Weighted average number of common shares outstanding** | 246135391 | 246135391 |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Consolidated Statements of Stockholders' Deficit**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of** <br> **Shares**<br> **of Common**<br> **Stock** <br> **Issued** | **Common** <br> **Stock**<br> **and Paid-in**<br> **Capital in** <br> **Excess**<br> **of Par** | **Number of**<br> **Shares of**<br> **Preferred**<br> **Stock**<br> **Issued** | **Preferred**<br> **Stock**<br> **and Paid-in**<br> **Capital in**<br> **Excess of** <br> **Par** | **Shares**<br> **Subscriptions**<br> **and** <br> **Obligations**<br> **to Issue** <br> **Shares** | **Accumulated**<br> **Other**<br> **Comprehensive**<br> **Income** | **Accumulated** <br> **Deficit** | **Total** <br> **Stockholders'** <br> **Deficit** |
| Balance June 30, 2020 | 246135391 | $61457574 | 42 | $– $| 61250 | $– $| (67349298) | $(5830474) |
| Net loss for year |  |  |  | – |  | – | (1012306) | (1012306) |
| Balance June 30, 2021 | 246135391 | $61457574 | 42 | $– $| 61250 | $– $| (68361604) | $(6842780) |
| Net loss for year |  |  |  | – |  | – | (1379207) | (1379207) |
| Balance June 30, 2022 | 246135391 | $61457574 | 42 | $– $| 61250 | $– $| (69740811) | $(8221987) |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Consolidated Statements of Cash Flows**

**Years ended June 30, 2022 and 2021**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| <u>Cash flows from operating activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss | $(1379207) | $(1012306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Items not involving cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion interest | 1650 | 3564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on convertible debentures | 963123 | 775602 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt | 88125 | 82707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on mandatorily redeemable preferred stock | 6420 | 13540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in working capital: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 122098 | 56703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party payable | 131700 | 70578 |
| Net cash used in operating activities | (66091) | (9612) |
| <u>Cash flows from financing activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from loans | 100000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of loans | (20700) | (27600) |
| Net cash provided by financing activities | 79300 | 22400 |
| Increase in cash | 13209 | 12788 |
| Cash, beginning of year | 18774 | 5986 |
| Cash, end of year | $31983 | $18774 |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $- | $- |

---

The accompanying notes are an integral part of the consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 1 - <u>NATURE OF OPERATIONS</u>**

Integral Technologies, Inc. (the "Company" or "Integral") was incorporated under the laws of the state of Nevada on February 12, 1996, and has recently relocated its head office to Evansville, Indiana, USA. The Company is in the business of researching, developing and commercializing new electrically-conductive resin-based materials called ElectriPlast.

**NOTE 2 - <u>SIGNIFICANT ACCOUNTING POLICIES</u>**

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") and are presented in United States dollars.

<u>Principles of consolidation</u>

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Electriplast Corp. (formerly Plastenna, Inc.) ("Electriplast"). All intercompany balances and transactions have been eliminated.

<u>Basic and diluted net loss per share</u>

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the year. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common share equivalents outstanding during the period. Because the Company has reported a net loss for all years presented, diluted net loss per common share is the same as basic net loss per common share for those years.

<u>Stock issued in exchange for services</u>

The valuation of common stock issued in exchange for services to non-employees is valued at an estimated fair market value of the Company's stock price based upon trading, sales and other issuances of the Company's common stock. Stock-based compensation expense related to awards to non-employees is recognized based on the then-current fair value at each measurement date over the associated service period of the award, which is generally the vesting term, using the accelerated attribution method. The fair value of non-employee stock options is estimated using the Black-Scholes valuation model with assumptions generally consistent with those used for employee stock options, with the exception of the expected term, which is the remaining contractual life at each measurement date. Restricted shares are issued or become issuable when they vested and are measured at their grant date and recorded evenly over the vesting period.

<u>Revenue recognition</u>

The Company has not generated significant revenue since inception. Although the Company has begun to receive revenue from the sale of material for commercial applications, the Company is devoting substantially all its efforts to developing the business.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 2 - <u>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</u>**

<u>Revenue recognition (continued)</u>

For license agreement that the Company enters into, revenue is measured based on the amount of consideration that is expected to be received by the Company under a contract with a customer, which is initially estimated with pricing specified in the agreement and adjusted for any discounts or other credits at contract inception then updated each reporting period, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when persuasive evidence of a contract with a customer exists and a performance obligation is identified and satisfied as the customer obtains control of the good or services.

The Company's license agreements can provide for upfront license fees, maintenance payments, and/or substantive milestone payments. In accordance with revenue recognition guidance, the Company identifies all of the deliverables at the inception of the agreement. License fees, which are nonrefundable fees will be evaluated for standalone value to the licensor and may be recognized upon delivery pursuant to terms of the agreement. Upfront nonrefundable fees associated with license and development agreements where the Company has continuing involvement that does not meet the requirement of a separate deliverable are recorded as deferred revenue and recognized over the estimated service period. The Company may also enter into agreements to provide engineering services. The Company recognizes revenue from engineering services as the service has been performed and amounts are reasonably assured of collection.

The Company recognizes revenues from royalties when they become due.

<u>Foreign currency translation</u>

The Company's functional and reporting currency is the US dollar. Transactions and balances for the Company's operations that are not in US dollars are translated into US dollars at the exchange rates in effect at the balance sheet dates for monetary assets and liabilities, and at historical exchange rates for non-monetary assets and liabilities. Revenues and expenses are translated at the rate of exchange on the date of the transaction, except for amortization and depreciation, which are translated on the same basis as the related assets. Resulting translation gains or losses are included in the consolidated statements of operations. The foreign currency impact on the consolidated financial statements is immaterial.

<u>Advertising</u>

Advertising costs are charged to operations when incurred. Advertising expense was $nil and $nil for the years ended June 30, 2022, and 2021, respectively.

<u>Research and development</u>

The Company expenses all research and development expenditures as incurred.

<u>Use of estimates</u>

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates include valuation allowance for deferred income tax assets, the determination of the assumptions used in calculating the fair value of stock-based compensation and the determination of the assumptions used in calculating the fair value of derivative financial liabilities and the warrant liability. Actual results could differ from those estimates and could impact future results of operations and cash flows.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 2 - <u>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</u>**

<u>Financial instruments</u>

The Company's balance sheet includes financial instruments, specifically cash, promissory note receivable, accounts payable and accrued expenses, related party payable, dividend payable, mandatorily redeemable preferred stock and loans payable. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instrument and their expected realization.

The Company has issued financial instruments that contain embedded conversion features that qualify as derivatives and are therefore accounted for as liabilities. The derivative liabilities are initially recorded at fair value, with gains and losses arising from changes in fair value recognized in the consolidated statements of operations at each period end while such instruments are outstanding. The derivative liabilities relating to the convertible debt is valued using the Black-Scholes Model where appropriate. The fair value of the warrants issued with reset provisions were measured using the Monte Carlo method.

<u>Fair value measurements</u>

ASC 820 *Fair Value Measurements and Disclosures,* defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). Their fair value hierarchy consists of three board levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

● Level 1 – Quoted prices in active markets for identical securities;

● Level 2 – Other significant observable inputs that are observable through corroboration with market data (including quoted prices in active markets for similar securities); and

● Level 3 – Significant unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability.

The fair value measurement of cash are classified as a Level 1 measurement. The fair value measurement of the derivative liability and warrants with reset provisions are classified as a Level 3 measurement.

<u>Income taxes</u>

The Company uses the asset and liability approach in its method of accounting for income taxes that requires the recognition of deferred tax liabilities and assets for expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance against deferred tax assets is recorded if, based upon weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The impact of an uncertain tax position that is more likely than not of being sustained upon audit by the relevant taxing authority is recognized at the largest amount that is more likely than not to be sustained. No portion of an uncertain tax position will be recognized if the position has less than a 50% likelihood of being sustained.

<u>Stock-based compensation</u>

The Company accounts for stock-based compensation expense associated with stock options and other forms of equity compensation by estimating the fair value of share-based payment awards on the date of grant using the market price of common stock or the Black-Scholes option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. The Company uses the straight-line single-option method to recognize the value of stock-based compensation expense for all share-based payment awards. Stock-based compensation expense recognized in the consolidated statements of operations is reduced for estimated forfeitures, as it is based on awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 2 - <u>SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</u>**

<u>Property and Equipment</u>

Property and equipment are recorded at cost and depreciated over the estimated useful lives using the straight-line method of depreciation. Amortization of the leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the underlying assets and the term of the related lease.

<u>Recent Accounting Pronouncements</u>

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses ("CECL") to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows.

In August 2020, the FASB issued ASU No. 2020-06 ("ASU 2020-06") "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)." ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. The diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. For contracts in an entity's own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective January 1, 2024, for the Company and the provisions of this update can be adopted using either the modified retrospective method or a fully retrospective method. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year.

Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements

**NOTE 3 - <u>GOING CONCERN</u>**

These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of business. The Company's operations have resulted in a net loss of $1,379,207 for the fiscal year ended June 30, 2022 (2021 - $1,012,306), and an accumulated deficit of $69,740,811 and a working capital deficiency of $8,221,987 as at June 30, 2022. The Company does not have sufficient revenue-producing activities to fund its expenditure requirements to continue to advance researching, developing and commercializing its conductive plastics technology, ElectriPlast. The Company estimates that it does not have sufficient funding to continue operating activities; however, it has been able to raise funding to continue to be a publicly traded Company and looks to continue raising funding to operate in this sector. The lack of funding raises substantial doubt about the Company's ability to continue as a going concern.

These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate because management believes that the actions already taken or planned will mitigate the adverse conditions and events that raise doubts about the validity of the going concern assumption used in preparing these consolidated financial statements. Management intends to raise additional capital through stock and debt issuances to finance operations. If none of these events occur, there is a risk that the business will fail.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 4** – **<u>PIVOTAL</u>**

On September 9, 2019, the Company entered into a technology and asset purchase agreement (the "Asset Purchase Agreement") with Pivotal Battery Corp. ("Pivotal"), a company with management in common, whereby the Company will receive the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cash payments totaling $2,000,000 with $200,000 received up front and $1,800,000 in a convertible promissory note bearing interest at 7% per year payable in quarterly installments over a period of two years. The outstanding principal and interest are convertible into shares of common stock of Pivotal at a conversion price of $1 per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Issuance of 1,500,000 shares of common stock from Pivotal. These shares have not yet been received.

Upon initial recognition the conversion option was identified as a embedded derivative and assigned a fair value of $nil.

On June 30, 2022, the Company amended the Asset purchase Agreement to terminate the promissory note agreement and amend the terms as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Payments During Development Phase:* Pivotal shall pay to the Company, payments of $15,000 (subsequently paid) due on December 31st and $25,000 due on June 30th during each subsequent 6 month period following the Amendment. In any case, the purchase price shall be paid in full no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments Upon Commercialization:* Upon commercialization, defined as $500,000 in revenue in any quarter or $1,000,000 in any year ("Commercialization"), Pivotal shall pay to the Company $250,000 per year, payable in $125,000 increments due on June 30th and December 31 until the purchase price, is paid in full. In any case, the purchase price shall be paid in full no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Stock Issuance:* Pivotal shall issue to the Company, 1,500,000 fully paid and non-assessable shares of Pivotal's common stock, par value $.001 upon Commercialization, however, in any event the shares shall be issued no later than December 31, 2027. The issuance of the shares shall be exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Change of Control:* If there is a change of control of the Company (defined as 50% or more), then all payments under the Note would be deferred until December 31, 2027.

The board of directors of the Company shall have the option to nominate 1 director to Pivotal's board of directors, and Pivotal shall take the appropriate corporate action to approve and elect such nominee within 5 business days of the nomination. The Company shall have a right to board representation as long as its ownership of Pivotal's common stock is equal to or greater than 2.5% of the outstanding shares.

The Company has determined that due to uncertainty of collection, revenues are recognized when received. Total revenues recognized pursuant to the Asset Purchase Agreement with Pivotal for the year ended June 30, 2022 was $39,900 (2021 – $114,000).

To date, no royalties are due to the Company. Upon the promissory note being written-off in the year ended June 30, 2019, no interest has been accrued due to uncertainties related to the collectability of the promissory note. The obligations under the promissory note were extinguished upon the amendment on June 30, 2022.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 5 - <u>STOCKHOLDERS</u>**<u>'</u> **<u>DEFICIT</u>**

**Common stock**

During the years ended June 30, 2022, and 2021, there were no common share transactions and the Company's shares remain under a trading halt.

**Preferred stock**

On December 10, 2018, the Company issued 40 shares of the Series B Preferred Stock (the "Preferred Shares") at a price of $2,250, for total proceeds of $90,000.

On January 14, 2019, the Company issued 2 Preferred Shares at a price of $2,250, for total proceeds of $4,500.

Each Preferred Share carries an annual 12% dividend compounded annually for three (3) consecutive years. The Company will pay dividends on a quarterly basis at the discretion of the Board to the extent cash or other assets are available. Dividends may be paid in cash or other property. The Shares have no voting rights.

The shares are convertible into shares of common stock of the Company at the option of the holder on a 1:12,500 basis (subject to adjustments for stock dividends, splits, combinations and similar events) at any time within 12 to 36 months from the date of issuance of the Shares provided that the Company has enough authorized and unissued shares of common stock available for the conversion. Any accrued but unpaid interest or dividends related to the Shares may also be converted into common stock at the discretion of the Board of Directors.

The Company also has the option to call the shares and purchase some or all of the Series B Preferred Stock owned by investors at any time at on a pro rata, nearest whole share basis. The redemption value of the Shares is $2,500 per Share (subject to adjustments for stock dividends, splits, combinations and similar events) (the "Redemption Value"). On the date 36 months from the issuance date of the Shares, if not already converted to common, the Company shall redeem the shares at the Redemption Value and pay all accrued but unpaid dividends and interest to the extent assets are available.

The mandatorily redeemable preferred stock liability of $94,500 has been recognized at the issuance date, with a fair value of $nil assigned to the derivative liability for the conversion option.

During the year ended June 30, 2022, the Company accrued dividends on the preferred stock of $6,420 (2021 - $13,540) which has been included in interest expense in the statement of operations. During the year ended June 30, 2022, the Company recognized accretion interest on the preferred stock of $1,650 (2021 - $3,564).

**Stock options and restricted shares**

The Company currently has no options or restricted shares issued and outstanding.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 5 - <u>STOCKHOLDERS</u>**<u>'</u> **<u>DEFICIT (CONTINUED)</u>**

**Stock purchase warrants**

The following summarizes information about the Company's stock purchase warrants outstanding:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of<br> Warrants**  | **Price Per Share**  | **Weighted<br> Average<br> Exercise Price** |
| Balance, June 30, 2021, and 2020 | 4000000 | $0.05 | $0.05 |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Number of Warrants** | **Number of Warrants** |
| Expiry Date | Exercise Price | June 30, 2021 | June 30, 2020 |
| November 16, 2022 | $0.05 \* | 4000000 | 4000000 |
| Total outstanding and exercisable |  | 4000000 | 4000000 |

---

\*The exercise price of the warrants issued on November 16, 2017 is the lower of $0.05 and the lowest trade price in the 10 days previous to exercise.

Upon initial recognition the warrants were accounted for as a derivative liability at fair value. As at June 20, 2022 the fair value of the warrant liability was $Nil (June 30, 2021 - $Nil).

**Equity portion of convertible debt**

On May 7, 2018, the Company and SBI Investments Inc. and L2 Capital entered into amended convertible debt agreements to fix the conversion price of all outstanding convertible debt at $0.0293 per share. There were no adjustments to the carrying values of convertible debt pursuant to the amendments.

**Share obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pursuant to a separation agreement with a previous CFO, the Company will issue 36,000 shares of common stock with a due date fair value of $3,600 and settle all unpaid fees from July 1, 2016, to February 10, 2017 (effective date of resignation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to director's agreements, the Company is obligated to issue 65,000 shares of common stock. As at June 30, 2021, these shares have not been issued and as such, the due date fair value of $37,650 has been recognized in obligation to issue shares within equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On February 21, 2019, the Company entered into a promissory note for total proceeds of $80,000. The promissory note bears interest at 2% per month and matures on November 21, 2019. As additional consideration to the holder, the Company must also issue 1,000,000 common shares within 180 days of the promissory note. As at June 30, 2021, and 2020, these shares have not been issued and the due date fair value of $20,000 has been recognized within obligation to issue shares within equity.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 6 -<u>RISK MANAGEMENT AND FINANCIAL INSTRUMENTS</u>**

Fair value

The loans payable and mandatorily redeemable preferred stock balances approximate fair value due to its short-term nature.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's financial asset that is exposed to credit risk consists of cash, which is placed with US and Canadian financial institutions.

Concentration of credit risk exists with respect to the Company's cash, as certain amounts are held at US and financial institutions.

All U.S. institution amounts are covered by FDIC insurance as of June 30, 2022. Management deems any related risk to be minimal.

Interest rate risk

The Company is not exposed to significant interest rate risk due to fixed rates of interest on its monetary assets and liabilities.

Currency risk

The Company translates the results of non-US transactions into US dollars using rates of exchange on the date of the transaction. The exchange rate varies from time to time. This risk is considered nominal as the Company does not incur significant transactions in currencies other than US dollars.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company's approach to managing liquidity risk is to provide reasonable assurance that it will have sufficient funds to meet liabilities when due. The Company manages its liquidity risk by forecasting cash flows required for operations and anticipated investing and financing activities.

The Company requires significant additional funding to meet its operational costs in fiscal year 2023.

Financing transactions may include the issuance of equity securities, obtaining additional credit facilities, licensing proprietary technology or other financing mechanisms. However, the Company's shares are not currently trading which has made it more difficult to obtain equity financing.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 7 - INCOME TAXES**

The provision for income taxes consists of the following at June 30:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Current Expense | $- | $- |
| Deferred Expense/(Benefit) | 360000 | 170000 |
| Inc/(Dec) in valuation allowance | (360000) | (170000) |
| Total provision for income tax | $- | $- |

---

The total provision differs from the amount computed by applying federal statutory rates to loss before income taxes due to the following at June 30:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Provision for income tax at the statutory rate of 21% | $(290000) | $(213000) |
| Increase (Decrease) in taxes due to |  |  |
| &nbsp;&nbsp;&nbsp; Change in valuation allowance | (360000) | (170000) |
| &nbsp;&nbsp;&nbsp; Expiration of net operating loss carry forwards | 427000 | 199000 |
| &nbsp;&nbsp;&nbsp; Disallowed expense | 223000 | 184000 |
| Total provision for income tax | $- | $- |

---

The Company has used a federal statutory rate of 21%. The Company has no material state tax liabilities, so no provision for state income tax is needed.

Deferred tax assets and liabilities reflect the tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The Company has net deferred income tax assets which have been reduced to zero through a valuation allowance because of uncertainties relating to utilization of future tax benefits. The increase/(decrease) in the valuation allowance for the years ended June 30, 2022, and June 30, 2021, are respectively ($360,000) and ($170,000).

The components of the net deferred income tax assets, calculated at an effective rate of 21%, are as follows at June 30:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Noncurrent deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp; Net operating loss carry forwards | $9390000 | $9750000 |
| &nbsp;&nbsp;&nbsp; Valuation allowance | (9390000) | (9750000) |
| Net deferred tax asset/(liability) | $- | $- |

---

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 7 - INCOME TAXES (CONTINUED)**

For tax purposes, the Company has unused net operating losses available for carry forwards to future tax years. At June 30, 2022, the Company has net operating loss carry forwards of approximately $42,000,000 which expire 2023 – 2038 and $2,600,000 that can be carried forward indefinitely.

Current federal tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change of a corporation. Accordingly, the Company's ability to utilize net operating loss and tax credit carryforwards may be limited as a result of such ownership changes. Such a limitation could result in the expiration of carryforwards before they are utilized.

**NOTE 8 - <u>RELATED PARTY TRANSACTIONS</u>**

As of June 30, 2022, $830,273 (June 30, 2021 - $698,573) was owed to the Company's executives for outstanding management fees, consulting fees and business-related reimbursements and are unsecured without interest or stated terms of repayment.

During the year ended June 30, 2022, the Company accrued salaries of $150,000 (2021 - $150,000) to the Company's executives.

On September 9, 2019, the Company entered into a technology and asset purchase agreement with a Company with management in common, refer to Note 4 for details. During the year-ended June 30, 2022 the Company received payments of $39,900 (2021 - $114,000) as part of the promissory note issued as part of the Asset Purchase Agreement.

**NOTE 9 - <u>SEGMENT INFORMATION</u>**

The Company operates primarily in one business segment, the development of electronically-conductive resin-based materials, with operations located in the US.

**NOTE 10 - <u>CONVERTIBLE DEBENTURES</u>**

As of June 30, 2022, the Company's convertible debentures have been summarized as follows:

*L2 capital Inc. (*"*L2*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total**<br> **penalties** | **Accrued interest as of**<br> **June 30, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of**<br> **June 30, 2022** | **Original**<br> **interest rate\*** | **Original**<br> **interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 369375 | 479955 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 68045 | 334543 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 249675 | 724455 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |

---

*SBI Investments LLC (*"*SBI*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total**<br> **penalties** | **Accrued interest as of**<br> **June 30, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of**<br> **June 30, 2022** | **Original** <br> **Interest rate\*** | **Original** <br> **Interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 220917 | 588380 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 170240 | 419177 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 180550 | 594299 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |
| 28750 | 46623 | 114705 |  |  |  | 8% | June 23, 2017 | December 23, 2017 |

---

As of June 30, 2021, the Company's convertible debentures have been summarized as follows:

*L2 capital Inc. (*"*L2*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total** <br> **penalties** | **Accrued interest as of** <br> **June 30, 2021** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of** <br> **June 30, 2021** | **Original**<br> **interest rate\*** | **Original**<br> **interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 369375 | 340634 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 68045 | 236300 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 249675 | 512839 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |

---

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 10 - <u>CONVERTIBLE DEBENTURES (CONTINUED)</u>**

*SBI Investments LLC (*"*SBI*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total** <br> **penalties** | **Accrued interest as of** <br> **June 30, 2021** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of**<br> **June 30, 2021** | **Original** <br> **Interest rate\*** | **Original** <br> **Interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 220917 | 422522 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 170240 | 283273 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 180550 | 419319 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |
| 28750 | 46623 | 77504 |  |  |  | 8% | June 23, 2017 | December 23, 2017 |

---

\* In accordance with the default provisions of the original convertible debt agreements, the convertible debentures began accruing interest at 24% per annum following non-payment as of the due dates of the respective convertible debenture notes.

There were no settlements of convertible debentures into shares of common stock during the years ended June 30, 2022 and 2021.

The convertible debentures are convertible into common shares of the Company. On May 7, 2018, the Company entered into amended convertible debt agreements with L2 and SBI and fixed the conversion rate to a price of $0.0293 per common share.

*JMJ Financial*

On November 16, 2017, the Company entered into a debt agreement with JMJ Financial. A total of $200,000 was received. The convertible debenture became due on May 15, 2018 As of June 30, 2021, and 2022, $74,000 remains due.

The note becomes convertible in the event the Company breaches any of the default provisions. On January 16, 2018, the note was in default and accordingly became convertible. The conversion price is the lesser of $0.05 or 50% of the lowest trade price in the 25 trading days previous to the conversion. The lender is limited to holding no more than 4.99% of the issued and outstanding common stock at the time of conversion. After the expiration of 120 days following the delivery date of any consideration, the Company will have no right of prepayment without written consent of the lender.

A reconciliation of the Company's convertible debenture is as follows:

---

| | |
|:---|:---|
| Balance June 30, 2020 | $3282079 |
| Interest | $775602 |
| Balance, June 30, 2021 | $4057681 |
| Interest | $963123 |
| Balance, June 30, 2022 | $5020804 |

---

On March 25, 2021, the Company's common shares were suspended from trading. As a result, the Company is not able to satisfy the conversion rights under the convertible debt agreements, the fair values of all derivative liabilities have been measured at $nil as at June 30, 2021 and 2022.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Consolidated Financial Statements**

**NOTE 11** – **<u>LOANS PAYABLE</u>**

During the year ended June 30, 2022, the Company had the following loan agreements outstanding, summarized as follows:

---

| | |
|:---|:---|
| (a) | On August 23, 2017, and October 5, 2017, the Company received a total of $352,400 pursuant to two promissory notes at 10% interest due 9 months from the agreement date. During the year ended 2020, the Company repaid $20,000 in principle and annual interest of 10% is accrued on the balance of principle. A total of $502,435 is remaining under the promissory notes(2021 - $469,195). |
|  | During the year ended June 30, 2022, interest expense of $30,240 was recognized on the promissory note (June 30, 2021 – $30,240). |

---

---

| | |
|:---|:---|
| (b) | On February 19, 2019, the Company entered into a promissory note agreement and received a total of $80,000, net of $4,000 in fees plus monthly interest at 2%. The promissory note consisting of interest and principal was due April 23, 2019. On May 18, 2019, a late fee of $10,000 became payable on the promissory note due to non-payment. A total of $154,000 is remaining under the promissory note (2021 - $134,800). |
|  | During the year ended June 30, 2022, interest expense of $19,200 was recognized on the promissory note (June 30, 2021 – $19,200). |

---

---

| | |
|:---|:---|
| (c) | On February 21, 2019, the Company entered into a promissory note for total proceeds of $80,000. The promissory note bears interest at 2.5% per month and matures on November 21, 2019. As additional consideration to the holder, the Company must also issue 1,000,000 common shares within 180 days of the promissory note. As of June 30, 2022, no shares have been issued. A total of $93,500 is remaining under the promissory note (2021 - $86,600). |
|  | During the year ended June 30, 2021, interest expense of $27,600 was recognized on the promissory note (June 30, 2020 – $27,600). During the year ended June 30, 2022, repayments of $20,700 were made towards the balance owing on the promissory note (June 30, 2021 – $27,600). |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During October 2021 and March 2022, the Company entered into a total of four promissory notes for an aggregate total of $150,000. Each note bears interest at 8% and are due 10 months after issuance. The proceeds of these promissory notes shall be strictly used pursuant to costs associated with getting its filings current and resumption of trading. The promissory notes also create a lien on and grants a first priority security interest in all of the Company's assets. A total of $160,926 is remaining under the promissory notes ($2021 - $52,678).

**NOTE 12 - <u>SUBSEQUENT EVENT</u>**

On December 12, 2022, the Company entered into a promissory note for an additional $23,000. The note bears interest at 8% and is due 10 months after issuance. The proceeds of these promissory notes shall be strictly used pursuant to costs associated with getting its filings current and resumption of trading. The promissory notes also create a lien on and grants a first priority security interest in all of the Company's assets.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Condensed Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2022**<br> **(Unaudited)** | **June 30, 2022** |
| ASSETS |  |  |
| <u>Current assets:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $7045 | $31983 |
| Total assets | $7045 | $31983 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| <u>Current Liabilities:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | $1432227 | $1348727 |
| &nbsp;&nbsp;&nbsp; Related party payable | 900273 | 830273 |
| &nbsp;&nbsp;&nbsp; Dividend payable | 38305 | 38305 |
| &nbsp;&nbsp;&nbsp; Loans payable | 974036 | 910861 |
| &nbsp;&nbsp;&nbsp; Mandatorily redeemable preferred stock | 105000 | 105000 |
| &nbsp;&nbsp;&nbsp; Deferred revenues | 425 |  |
| &nbsp;&nbsp;&nbsp; Convertible debentures | 5642085 | 5020804 |
| Total liabilities | 9092351 | 8253970 |
| <u>Stockholders</u><u>'</u> <u>deficit:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Common stock and paid in capital in excess of $0.001 par value, 250,000,000 shares authorized, 246,135,391 (June 30, 2022 – 246,135,391) issued and outstanding | 61457574 | 61457574 |
| &nbsp;&nbsp;&nbsp; Preferred stock and paid-in capital in excess of $0.001 par value, 20,000,000 shares authorized, 42 (June 30, 2022 - 42) issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp; Share subscriptions and obligations to issue shares | 61250 | 61250 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (70604130) | (69740811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' deficit | (9085306) | (8221987) |
| TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $7045 | 31983 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Condensed Consolidated Statements of Operations**

**Six and three months ended December 31, 2022 and 2021 (Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months**<br> **ended**<br> **December 31,**<br> **2022** | **Three months**<br> **ended**<br> **December 31,**<br> **2022** | **Six months**<br> **ended** <br> **December 31,**<br> **2022** | **Six months**<br> **ended**<br> **December 31,**<br> **2021** |
| **Revenue**  | $10000 | $17325 | $15000 | $27300 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general, and administrative expenses | 82727 | 71966 | 209963 | 186842 |
| **Total operating expenses** | (82727) | (71966) | (209963) | (186842) |
| &nbsp;&nbsp;&nbsp; Accretion expense |  | (825) |  | (1650) |
| &nbsp;&nbsp;&nbsp; Interest expense | (339775) | (266767) | (668356) | (532044) |
| **Net Loss** | $(412502) | $(322233) | $(863319) | $(693236) |
| **Net loss per share** – **basic and diluted** | $(0.00) | $(0.00) | $(0.00) | $(0.00) |
| **Weighted average number of common shares outstanding** | 246135391 | 246135391 | 246135391 | 246135391 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Condensed Consolidated Statements of Cash Flows**

**Six months ended December 31, 2022 and 2021 (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six months**<br> **ended December 31,**<br> **2022** | **Six months**<br> **ended December 31,**<br> **2021** |
| <u>Cash flows from operating activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Net loss | $(863319) | $(693236) |
| &nbsp;&nbsp;&nbsp; Items not involving cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion expense |  | 1650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on convertible debentures | 621281 | 483780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on debt | 47075 | 41844 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on mandatorily redeemable preferred stock |  | 6420 |
| &nbsp;&nbsp;&nbsp; Changes in working capital: |  |  |
| Deferred revenue | 425 |  |
| Accounts payable and accrued liabilities | 83500 | 84577 |
| Related party payable | 70000 | 37500 |
| Net cash used in operating activities | (41038) | (37465) |
| <u>Cash flows from financing activities:</u> |  |  |
| &nbsp;&nbsp;&nbsp; Repayment of loans | (6900) |  |
| &nbsp;&nbsp;&nbsp; Proceeds from loans | 23000 | 40000 |
| Net cash provided from financing activities | 16100 | 40000 |
| Increase (decrease) in cash | (24938) | 2535 |
| Cash, beginning of period | 31983 | 18774 |
| Cash, end of period | $7045 | $21309 |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp; Interest paid | $- | $- |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

**(Unaudited)**

**NOTE 1 - <u>NATURE OF OPERATIONS</u>**

Integral Technologies, Inc. (the "Company" or "Integral") was incorporated under the laws of the state of Nevada on February 12, 1996 and has recently relocated its head office to Evansville, Indiana, USA. The Company is in the business of researching, developing and commercializing new electrically-conductive resin-based materials called ElectriPlast.

**NOTE 2 - <u>SIGNIFICANT ACCOUNTING POLICIES</u>**

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") and are presented in United States dollars. We have prepared the condensed consolidated financial statements included herein, without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). The consolidated financial statements include the Company's wholly owned subsidiaries. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed from the accompanying consolidated financial statements. The accompanying comparative year end consolidated balance sheet was derived from the audited financial statements included in the annual financial statements. The accompanying interim financial statements are unaudited, and reflect all adjustments which are in the opinion of management, necessary for a fair statement of the Company's consolidated financial position, results of operations, and cash flows for the periods presented. Unless otherwise noted, all such adjustments are of a normal, recurring nature. All intercompany transactions and balances have been eliminated in consolidation. The Company's results of operations and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods. Nevertheless, we believe that the disclosures are adequate to ensure the information presented is not misleading. These unaudited consolidated financial statements should be read in conjunction with our audited financial statements and the notes thereto for the year ended June 30, 2022 included in the Company's Form 10 filed with the SEC concurrently with these consolidated financial statements.

<u>Principles of consolidation</u>

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Integral Operating, LLC ("Operating"), Integral Vision Systems, Inc. ("IVSI"), Antek Wireless Inc. ("Antek"), Electriplast Corp. (formerly Plastenna, Inc.) ("Electriplast"), and Integral Technologies Asia, Inc. ("Asia"), which are currently inactive. All intercompany balances and transactions have been eliminated.

<u>Use of estimates</u>

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates include valuation allowance for deferred income tax assets, the determination of the assumptions used in calculating the fair value of stock-based compensation and the determination of the assumptions used in calculating the fair value of derivative financial liabilities and the warrant liability. Actual results could differ from those estimates and could impact future results of operations and cash flows.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 3 - <u>GOING CONCERN</u>**

These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of business. The Company's operations have resulted in a net loss of $863,319 for the six months ended December 31, 2022 (2021 - $693,236), and an accumulated deficit of $70,604,130 and a working capital deficiency of $9,085,306 as at December 31, 2022. The Company does not have sufficient revenue-producing activities to fund its expenditure requirements to continue to advance researching, developing and commercializing its conductive plastics technology, ElectriPlast. The Company estimates that, does not have sufficient funding to continue operating activities; however, it has been able to raise funding to continuing to be a publicly traded Company and looks to continue raising funding to operate in this sector. The lack of funding raises substantial doubt about the Company's ability to continue as a going concern.

These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate because management believes that the actions already taken or planned will mitigate the adverse conditions and events that raise doubts about the validity of the going concern assumption used in preparing these consolidated financial statements. Management intends to raise additional capital through stock and debt issuances to finance operations. If none of these events occur, there is a risk that the business will fail.

**NOTE 4** – **<u>PIVOTAL</u>**

On September 9, 2019, the Company entered into a technology and asset purchase agreement (the "Asset Purchase Agreement") with Pivotal Battery Corp. ("Pivotal"), whereby the Company will receive the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cash payments totaling $2,000,000 with $200,000 received up front and $1,800,000 in a convertible promissory note bearing interest at 7% per year payable in quarterly installments over a period of two years. The outstanding principal and interest are convertible into shares of common stock of Pivotal at a conversion price of $1 per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Issuance of 1,500,000 shares of common stock from Pivotal. These shares have not yet been received.

Upon initial recognition the conversion option was identified as a embedded derivative and assigned a fair value of $nil.

On June 30, 2022, the Company amended the Asset Purchase Agreement to terminate the promissory note agreement and amend the terms as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Payments During Development Phase:* Pivotal shall pay to the Company, payments of $15,000 due on December 31st (received) and $25,000 due on June 30th during each subsequent 6 month period following the Amendment. In any case, the purchase price shall be paid in full no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Payments Upon Commercialization:* Upon commercialization, defined as $500,000 in Revenue in any quarter or $1,000,000 in any year ("Commercialization"), Pivotal shall pay to the Company $250,000 per year, payable in $125,000 increments due on June 30th and December 31 until the purchase price, is paid in full. In any case, the purchase price shall be paid in full no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Stock Issuance:* Pivotal shall issue to the Company, 1,500,000 fully paid and non-assessable shares of the Pivotal's common stock, par value $.001 upon Commercialization, however, in any event the shares shall be issued no later than December 31, 2027. The issuance of the shares shall be exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Change of Control:* If there is a change of control of the Company (defined as 50% or more), then all payments under the Note would be deferred until December 31, 2027.

The board of directors of the Company shall have the option to nominate 1 director to Pivotal's board of directors, and Pivotal shall take the appropriate corporate action to approve and elect such nominee within 5 business days of the nomination. The Company shall have a right to board representation as long as its ownership of Pivotal's common stock is equal to or greater than 2.5% of the outstanding shares.

The Company has determined that due to uncertainty of collection, revenues are recognized when received. Total revenues recognized pursuant to the Asset Purchase Agreement with Pivotal for the six months ended December 31, 2022 was $15,000 (2021 – $27,300).

To date, no royalties are due to the Company. Upon the promissory note being written-off in the year ended June 30, 2019, no interest has been accrued due to uncertainties related to the collectability of the promissory note. The obligations under the promissory note were extinguished upon amendment on June 30, 2022.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 5 - <u>STOCKHOLDERS</u>**<u>'</u> **<u>DEFICIT</u>**

**Common stock**

During the six months ended December 31, 2022 and year ended June 30, 2022, there were no common share transactions and the Company's shares remain under a trading halt.

**Preferred stock**

On December 10, 2018, the Company issued 40 shares of the Series B Preferred Stock (the "Preferred Shares") at a price of $2,250, for total proceeds of $90,000.

On January 14, 2019, the Company issued 2 Preferred Shares at a price of $2,250, for total proceeds of $4,500.

Each Preferred Share carries an annual 12% dividend compounded annually for three (3) consecutive years. The Company will pay dividends on a quarterly basis at the discretion of the Board to the extent cash or other assets are available. Dividends may be paid in cash or other property. The Shares have no voting rights.

The shares are convertible into shares of common stock of the Company at the option of the holder on a 1:12,500 basis (subject to adjustments for stock dividends, splits, combinations and similar events) at any time within 12 to 36 months from the date of issuance of the Shares provided that the Company has enough authorized and unissued shares of common stock available for the conversion. Any accrued but unpaid interest or dividends related to the Shares may also be converted into common stock at the discretion of the Board of Directors.

The Company also has the option to call the shares and purchase some or all of the Series B Preferred Stock owned by investors at any time on a pro rata, nearest whole share basis. The redemption value of the Shares is $2,500 per Share (subject to adjustments for stock dividends, splits, combinations and similar events) (the "Redemption Value"). On the date 36 months from the issuance date of the Shares, if not already converted to common, the Company shall redeem the Shares at the Redemption Value and pay all accrued but unpaid dividends and interest to the extent assets are available.

The mandatorily redeemable preferred stock liability of $94,500 has been recognized at the issuance date, with a fair value of $nil assigned to the derivative liability for the conversion option.

During the six month period ended December 31, 2022, the company accrued dividends on the preferred stock of $nil (2021 - $6,420) which has been included in interest expense in the statement of operations. During the six month period ended December 31, 2022, the Company recognized accretion interest on the preferred stock of $nil (2021 - $1,650).

**Stock options and restricted shares**

The Company currently has no options or restricted shares issued and outstanding.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 5 - <u>STOCKHOLDERS</u>**<u>'</u> **<u>DEFICIT (CONTINUED)</u>**

**Stock purchase warrants**

On November 16, 2022, 4,000,000 warrants with an exercise price of the lower of $0.05 and the lowest trade price in the 10 days previous to exercise, expired unexercised.

**Equity portion of convertible debt**

On May 7, 2018, the Company and SBI Investments Inc. and L2 Capital entered into amended convertible debt agreements to fix the conversion price of all outstanding convertible debt at $0.0293 per share. There were no adjustments to the carrying values of convertible debt pursuant to the amendments.

**Share obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pursuant to a separation agreement with a previous CFO, the Company will issue 36,000 shares of common stock with a due date fair value of $3,600 and settle all unpaid fees from July 1, 2016 to February 10, 2017 (effective date of resignation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to director's agreements, the Company is obligated to issue 65,000 shares of common stock. As at June 30, 2021, these shares have not been issued and as such, the due date fair value of $37,650 has been recognized in obligation to issue shares within equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On February 21, 2019, the Company entered into a promissory note for total proceeds of $80,000. The promissory note bears interest at 2% per month and matures on November 21, 2019. As additional consideration to the holder, the Company must also issue 1,000,000 common shares within 180 days of the promissory note. As at June 30, 2021 and 2020, these shares have not been issued and the due date fair value of $20,000 has been recognized within obligation to issue shares within equity.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 6 -<u>RISK MANAGEMENT AND FINANCIAL INSTRUMENTS</u>**

Fair value

The loans payable and preferred stock balances approximates fair value due to its short-term nature.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's financial asset that is exposed to credit risk consists of cash, which is placed with US and Canadian financial institutions.

Concentration of credit risk exists with respect to the Company's cash, as certain amounts are held at US and financial institutions.

All U.S. institution amounts are covered by FDIC insurance as of December 31, 2022. Management deems any related risk to be minimal.

Interest rate risk

The Company is not exposed to significant interest rate risk due to fixed interest rates on its monetary assets and liabilities.

Currency risk

The Company translates the results of non-US transactions into US dollars using rates of exchange on the date of the transaction. The exchange rate varies from time to time. This risk is considered nominal as the Company does not incur significant transactions in currencies other than US dollars.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company's approach to managing liquidity risk is to provide reasonable assurance that it will have sufficient funds to meet liabilities when due. The Company manages its liquidity risk by forecasting cash flows required for operations and anticipated investing and financing activities.

The Company requires significant additional funding to meet its operational costs in the fiscal year 2023.

Financing transactions may include the issuance of equity securities, obtaining additional credit facilities, licensing proprietary technology or other financing mechanisms. However, the Company's shares are not currently trading which has made it more difficult to obtain equity financing.

**NOTE 7 - <u>RELATED PARTY TRANSACTIONS</u>**

As of December 31, 2022, $900,273 (June 30, 2022 - $830,273) was owed to the Company's executives for outstanding management fees, consulting fees and business-related reimbursements and are unsecured without interest or stated terms of repayment.

During the six months ended December 31, 2022, the Company accrued salaries of $75,000 (2021 - $75,000) to the Company's executives.

On September 9, 2019, the Company entered into a technology and asset purchase agreement with a Company with management in common, refer to Note 4 for details. During the six months ended December 31, 2022 the Company received payments of $15,000 (2021 - $27,300) as part of the promissory note issued as part of the Asset Purchase Agreement.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 8 - <u>SEGMENT INFORMATION</u>**

The Company operates primarily in one business segment, the development of electronically-conductive resin-based materials, with operations located in the US.

**NOTE 9 - <u>CONVERTIBLE DEBENTURES</u>**

As of December 31, 2022, the Company's convertible debentures have been summarized as follows:

*L2 capital Inc. (*"*L2*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total**<br> **penalties** | **Accrued interest as of** <br> **December 31, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of** <br> **December 31, 2022** | **Original** <br> **interest rate\*** | **Original** <br> **interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 369375 | 569681 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 68045 | 397811 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 249675 | 860738 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |

---

*SBI Investments LLC (*"*SBI*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total**<br> **penalties** | **Accrued interest as of** <br> **December 31, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of**<br> **December 31, 2022** | **Original**<br> **Interest rate\*** | **Original**<br> **Interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 220917 | 695522 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 170240 | 506971 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 180550 | 707336 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |
| 28750 | 46623 | 138736 |  |  |  | 8% | June 23, 2017 | December 23, 2017 |

---

As of June 30, 2022, the Company's convertible debentures have been summarized as follows:

*L2 capital Inc. (*"*L2*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total** <br> **penalties** | **Accrued interest as of** <br> **June 30, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of** <br> **June 30, 2022** | **Original**<br> **interest rate\*** | **Original**<br> **interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 369375 | 479955 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 68045 | 334543 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 249675 | 724455 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |

---

*SBI Investments LLC (*"*SBI*"*)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Original debt** | **Total** <br> **penalties** | **Accrued interest as of**<br> **June 30, 2022** | **Total balance settled**<br> **through issuance of shares** | **Balance due as of**<br> **June 30, 2022** | **Original**<br> **Interest rate\*** | **Original**<br> **Interest rate\*** | **Inception** | **Original due date** |
| $| $ | $ | $ | $ | $— |  |  |  |
| 469760 | 220917 | 588380 |  |  |  | 12% | May 12, 2017 | November 12, 2017 |
| 105000 | 170240 | 419177 |  |  |  | 8% | May 19, 2017 | November 19, 2017 |
| 119227 | 180550 | 594299 |  |  |  | 8% | May 18, 2017 | November 18, 2017 |
| 28750 | 46623 | 114705 |  |  |  | 8% | June 23, 2017 | December 23, 2017 |

---

\* In accordance with the default provisions of the original convertible debt agreements, the convertible debentures began accruing interest at 24% per annum following non-payment as of the due dates of the respective convertible debenture notes.

There were no settlements of convertible debentures into shares of common stock during the six month period ended December 31, 2022 and 2021.

The convertible debentures are convertible into common shares of the Company. On May 7, 2018, the Company entered into amended convertible debt agreements with L2 and SBI and fixed the conversion rate to a price of $0.0293 per common share.

*JMJ Financial*

On November 16, 2017, the Company entered into a debt agreement with JMJ Financial. A total of $200,000 was received. The convertible debenture became due on May 15, 2018. As of June 30, 2021, 2022 and December 31, 2022, $74,000 remains due.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 9 - <u>CONVERTIBLE DEBENTURES (CONTINUED)</u>**

The note becomes convertible in the event the Company breaches any of the default provisions. On January 16, 2018, the note was in default and accordingly became convertible. The conversion price is the lesser of $0.05 or 50% of the lowest trade price in the 25 trading days previous to the conversion. The lender is limited to holding no more than 4.99% of the issued and outstanding common stock at the time of conversion. After the expiration of 120 days following the delivery date of any consideration, the Company will have no right of prepayment without written consent of the lender.

A reconciliation of the Company's convertible debenture is as follows:

---

| | |
|:---|:---|
| Balance June 30, 2020 | $3282079 |
| Interest | $775601 |
| Balance, June 30, 2021 | $4057680 |
| Interest | $963123 |
| Balance, June 30, 2022 | $5020804 |
| Interest | $621281 |
| Balance December 31, 2022 | $5642085 |

---

On March 25, 2021, the Company's common shares were suspended from trading. As a result, the Company is not able to satisfy the conversion rights under the convertible debt agreements, the fair values of all derivative liabilities have been measured at $nil as at June 30, 2021, 2022 and December 31, 2022.

------

[**Table of Contents**](#toc)

**Integral Technologies, Inc**.

**Notes to the Condensed Consolidated Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**NOTE 10** – **<u>LOANS PAYABLE</u>**

During the six months ended December 31, 2022, the Company had the following loan agreements outstanding, summarized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On August 23, 2017 and October 5, 2017, the Company received a total of $352,400 pursuant to two promissory notes at 10% interest due 9 months from the agreement date. During the year ended 2020, the Company repaid $20,000 in principle and annual interest of 10% is accrued on the balance of principle. A total of $519,055 is remaining under the promissory notes (June 30, 2022 - $502,435).

During the six months ended December 31, 2022, interest expense of $16,620 was recognized on the promissory note (2021 – $16,620).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On February 19, 2019, the Company entered into a promissory note agreement and received a total of $80,000, net of $4,000 in fees plus monthly interest at 2%. The promissory note consisting of interest and principle was due April 23, 2019. On May 18, 2019, a late fee of $10,000 became payable on the promissory note due to non-payment. A total of $163,600 is remaining under the promissory note (June 30, 2022 - $154,000).

During the six months ended December 31, 2022, interest expense of $9,600 was recognized on the promissory note (2021 – $9,600).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On February 21, 2019, the Company entered into a promissory note for total proceeds of $80,000. The promissory note bears interest at 2.5% per month and matures on November 21, 2019. As additional consideration to the holder, the Company must also issue 1,000,000 common shares within 180 days of the promissory note. As of June 30, 2022, no shares have been issued. A total of $100,400 is remaining under the promissory note (June 30, 2022 - $93,500).

During the six months ended December 31, 2022, interest expense of $13,800 was recognized on the promissory note (2021 – $13,800). During the six months ended December 31, 2022, repayments of $6,900 were made towards the balance owing on the promissory note (2021 – $11,500).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During October 2021 and March 2022, the Company entered into a total of four promissory notes for an aggregate total of $150,000. Each note bears interest at 8% and are due 10 months after issuance. The proceeds of these promissory notes shall be strictly used pursuant to costs associated with getting its filings current and resumption of trading. The promissory notes also create a lien on and grants a first priority security interest in all of the Company's assets. As of December 31, 2022, a total of $190,981 is remaining under the promissory notes (June 30, 2022 - $160,926).

During the six months ended December 31, 2022, interest expense of $7,055 was recognized on the promissory note (2021 – $4,124).

## Exhibit 10.2

**Exhibit 10.2**

**AMENDMENT NO. 1 TO TECHNOLOGY ASSET PURCHASE AGREEMENT**

This Amendment No. 1 to the Technology Asset Purchase Agreement (the "**Amendment**") dated June 30, 2022 is entered into by and between Integral Technologies, Inc. ("**Integral**" or "**Seller**"), a corporation organized under the laws of the State of Nevada, and Pivotal Battery Corp. ("**Pivotal**" or "**Purchaser**"), a corporation organized under the laws of the State of Delaware.

**RECITALS**

**WHEREAS**, the Purchaser and the Seller are parties to that certain Technology Asset Purchase Agreement, dated September 9, 2019 (the "**Agreement**"), pursuant to which, among other things, the Purchaser agreed to acquire the Purchased Assets from the Seller on the terms and subject to the conditions set forth in the Agreement;

**WHEREAS**, capitalized terms used in this Amendment, but not otherwise defined herein, are used herein with the respective meanings ascribed to such terms under the Agreement;

**WHEREAS,** due to the unforeseen business environment, precipitated in large part from the COVID-19 global pandemic that caused supply shortages around the world, in particular, the Seller's ability to source conductive fiber needed to enter into a supplier agreement, Purchaser and Seller desire to amend the Agreement as set forth herein;

**NOW, THEREFORE**, in consideration of the foregoing, and the mutual terms, covenants and conditions herein below set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

**AGREEMENT**

The Agreement shall be amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The previous payments totaling $422,800 made between 2019 - 2022 by Purchaser to Seller shall be treated as consideration for the Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Parties agree to delete Sections 2, 2.1, 2.2 and 2.3, including Exhibit B and Exhibit C in their entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Parties agree to cancel the Promissory Note dated September 9, 2019 and the Promissory Note Modification Agreement dated October 23, 2020. The Parties agree the Promissory Note dated September 9, 2019 and the Promissory Note Modification Agreement dated October 23, 2020, including all unpaid interest, are hereby cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Parties agree a new Section 2, 2.1, 2.2, 2.3, and 2.4 shall be added to the Agreement, as follows:

"2. <u>ASSIGNMENTS; TECHNOLOGY PURCHASE PRICE; SECURITY & DEFAULT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Seller hereby agrees to sell, assign and transfer, and Purchaser hereby agrees to purchase and accept, all of Seller's right, title, interest and benefit in and to the Technology and Proprietary Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Purchase Price. The total purchase price of the assets shall be $2,000,000 in cash and 1,500,000 shares of Pivotal's common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Payments During Development Phase: Purchaser shall pay to Seller, payments of $15,000 due on December 31<sup>st</sup> and $25,000 due on June 30<sup>th</sup> during each subsequent six (6) month period following the Amendment. In any case, the purchase price shall be paid in full no later than December 31, 2027.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Payments Upon Commercialization: Upon commercialization, defined as $500,000 in Revenue in any quarter or $1,000,000 in any year ("Commercialization"), Purchaser shall pay to Seller $250,000 per year, payable in $125,000 increments due on June 30<sup>th</sup> and December 31 until the purchase price, is paid in full. In any case, the purchase price shall be paid in full no later than December 31, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Stock Issuance. Purchaser shall issue to Seller, 1,500,000 fully paid and non-assessable shares of the Purchaser's common stock, par value $.001 upon Commercialization, as defined in Section 2.2(b) above, however, in any event the shares shall be issued no later than December 31, 2027. The issuance of the shares shall be exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(a)(2) of that act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Board Representation. The board of directors of Seller shall have the option to nominate one (1) director to Purchaser's board of directors, and Purchaser shall take the appropriate corporate action to approve and elect such nominee within five (5) business days of the nomination. Seller shall have a right to board representation as long as its ownership of Purchaser's common stock is equal to or greater than 2.5% of the outstanding shares.

2.3 Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seller is hereby granted a first priority security interest (to the extent allowed by law) on U.S. Patent Application Nos. 14/822,315 and 16/236,533 and its subsequent issued patents (the "Collateral"), which shall be enforceable upon an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Purchaser hereby authorizes Seller to file UCC statements, without notice to Purchaser, with all appropriate jurisdictions to perfect or protect Seller's interest or rights hereunder, including a notice that any disposition of the Collateral shall be deemed to violate the rights of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Default. Upon the occurrence of an Event of Default the purchase price, and all other amounts owing hereunder may, at the option of the Seller, become immediately due and payable to Seller. An "Event of Default" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Commencement of proceedings against the Purchaser under any bankruptcy or insolvency law or other law for the reorganization, arrangement, composition or similar relief or aid of debtors or creditors if such proceeding remains undismissed and unstayed for a period of 90 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If the Purchaser shall dissolve, liquidate or wind up its affairs or sell substantially all of its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. If the Purchaser breaches any of its representations, warranties, covenants or agreements set forth in the Agreement and such breach shall not be cured within 60 days following notice to the Purchaser by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Purchaser is in material breach of any provision of the Agreement, which breach continues for more than 60 calendar days following notice to the Purchaser by the Seller."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Parties agree to amend Section 5.1(a) by deleting the following in the Section:

",and any other consideration stated in Exhibit B,"

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Parties agree to delete Section 5.2(b) in its entirety and to renumber Section 5.2(c) as 5.2(b), and renumber Section 5.2(d) as 5.2(c) and renumber Section 5.2(e) as 5.2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Parties agree to add Sections 16, 16.1 and 16.2 with the following:

&nbsp;&nbsp;&nbsp;&nbsp;**"16. SUPPLIER AGREEMENT**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 Purchaser and Seller shall enter into an exclusive ten (10) year supplier agreement (the "Exclusive Supplier Period") as soon as Seller has developed a version of ElectriPlast that the parties agree is suitable for use in the manufacture of bipolar plates using the Technology. The supply agreement shall include the following key terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. During the Exclusive Supplier Period, Seller shall be the exclusive supplier of conductive plastic material ("ElectriPlast") used by Purchaser for the manufacture of bi-polar plates using the Technology, and Purchaser shall only use ElectriPlast for its bipolar plates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. During the Exclusive Supplier Period, Seller shall supply ElectriPlast at a mutually agreeable price, and upon the expiration of the Exclusive Supplier Period, Seller shall have the right to match any third-party supplier price to maintain its exclusive supplier role with Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. During the Exclusive Supplier Period, the Purchaser shall be the Seller's sole customer and Seller shall not market, sell, transfer, or distribute the ElectriPlast material to any third party without Purchaser's written consent. During the Exclusive Supplier Period, Purchaser shall be the Seller's exclusive distributor of ElectriPlast for use with the Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 Third-Party Supplier. Until the parties enter into an exclusive supplier agreement, Purchaser shall have the right to purchase materials as needed from any third-party supplier, to continue its development of the bipolar plate for commercialization in energy storage devices. In the event Purchaser enters into a supply agreement with a third-party supplier to secure the availability of materials for its biplate development and commercialization efforts, Purchaser shall not be required to enter into an exclusive supplier agreement with the Seller as stated in Section 16.1, but make best effort to enter into a non-exclusive supplier agreement with Seller that does not disadvantage Purchaser from any existing supplier agreement it may have with a third-party supplier."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Parties agree to add Sections 17 and 17.1 with the following:

**"17**. **CHANGE IN CONTROL.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 Change in Control. In the event either company becomes the target of an acquisition or merger, where its common shareholders, immediately prior to a merger or acquisition, owns less than fifty percent (50%) of the outstanding common stock of the acquiring entity or, in the case of a merger transaction, the surviving corporation, the following shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If Integral is the acquired or merged company, then all unpaid payments and stock owed to Integral by Pivotal shall be deferred until December 31, 2027 and Section 2.2(d) shall no longer remain in effect and the Seller shall no longer have board representation on Pivotal's board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If Pivotal is the acquired or merged company, then all unpaid payments and stock owed to Integral by Pivotal shall be due and payable in full sixty (60) days after the closing of the transaction."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Except for the amendment stated above, no other provisions of the Agreement are amended and it shall remain in full force and effect.

------

**IN WITNESS WHEREOF**, the parties have executed this Amendment as of the day and date first above written.

---

| | |
|:---|:---|
| **Pivotal Battery Corp.** | **Integral Technologies, Inc.** |
| By: | By: |
| Name: Richard Bogan | Name: Doug Bathauer |
| Title: Managing Director | Title Chief Executive Officer |

---

## Exhibit 10.3

**<u>Exhibit 10.3</u>**

**<u>Promissory Note And Security Agreement</u>**

---

| | |
|:---|:---|
| U.S. $________ | Issuance Date: _____ ___, 20__ |

---

The undersigned maker ("<u>Maker</u>") promises to pay to the order of ___________, a Delaware limited liability company (the "<u>Lender</u>) the principal sum of U.S. $__________, together with interest accruing thereon from the date hereof at the rate and time hereinafter provided.

Interest (computed on the basis of a 360-day year for the actual number of days elapsed) on the outstanding balance of principal evidenced by this Promissory Note and Security Agreement ("<u>Note</u>") shall accrue at a rate per annum equal to 8%.

On the **10th month anniversary** of the Issuance Date of this Note (the "<u>Maturity Date</u>"), all outstanding principal, accrued and unpaid interest and all other amounts due and payable hereunder shall be immediately due and payable in full; provided however, the Maturity Date of this Note will be extended an additional six months if at the time of the Maturity Date the Company is current in its Securities Exchange Act of 1934 filings ("<u>34 Act Filings</u>") and its common stock is listed or quoted (and there must be a bid) on a national securities exchange or the OTC Markets. **<u>The proceeds of this Note shall be strictly used in accordance with that certain Escrow Agent Agreement dated the same date of the Issuance Date among the Maker, the Lender and Nason Yeager Gerson Harris & Fumero, P.A.</u>**

This Note also creates a lien on and grants a first priority security interest in all of Maker's Accounts, Goods, Inventory, Equipment, Investment Property, General Intangibles, Instruments, Documents, and all other assets and personal property of the Maker, wherever located, together with all the proceeds now or hereafter arising in connection therewith (the "<u>Collateral</u>"). This Note shall also constitute a security agreement under the New York Uniform Commercial Code or other law applicable to the creation of liens on personal property. Capitalized terms used in this paragraph shall have the meanings that are given to them under the New York Uniform Commercial Code. Maker acknowledges and agrees that Lender shall have the right to file a UCC-1 financing statement and any renewals and continuations thereof or other documents as Lender may reasonably require with respect to this security interest. If a default occurs under this Note, Lender shall have all rights and remedies of a secured party under the New York Uniform Commercial Code.

The failure of Maker to pay to Lender (as required under this Note) promptly within 10 days after written notice from Lender that amounts are due and payable under this Note shall constitute an event or default under this Note.

During the first six months of this Note, the Maker shall engage a third-party consultant (pre-approved by the Lender) to assist in the Maker's corporate restructuring and preparation of the filing of the Maker's 34 Act Filings. Any such failure to engage such third-party consultant, subject to a 10-day cure period, shall be an event of default.

At any time after the occurrence of any event of default, the indebtedness evidenced by this Note and/or any note(s) or other obligation(s) which may be taken in renewal, extension, substitution or modification of all or any part of the indebtedness evidenced thereby and all other obligations of Maker to Lender howsoever created and existing shall, at the option of the Lender in its sole discretion, immediately become due and payable without demand upon or notice to Maker, and Lender shall be entitled to exercise all remedies as provided by law and/or equity.

------

Maker hereby waives presentment for payment, demand, notice of dishonor and protest and agrees that (i) any collateral, lien or right of setoff securing any indebtedness evidenced by this Note may, from time to time, in whole or in part, be exchanged or released, and any person liable on or with respect to this Note may be released, all without notice to or further reservations of rights against Maker, any endorser, surety or guarantor and all without in any way affecting or releasing the liability of Maker, any endorser, surety or guarantor, and (ii) none of the terms or provisions hereof may be waived, altered, modified or amended except as Lender may consent thereto in writing.

Maker hereby agrees to pay all actual out-of-pocket costs and expenses, including reasonable attorneys' fees, incurred by Lender in the collection of the indebtedness evidenced by this Note, in enforcing any of the rights, powers, remedies and privileges of Lender hereunder, or in connection with any further negotiations, modifications, releases, or otherwise incurred by Lender in connection with this Note. As used in this Note, the term "attorneys' fees" shall mean reasonable actual out-of-pocket charges and expenses for legal services rendered to or on behalf of Lender in connection with the collection of the indebtedness evidenced by this Note at any time whether prior to the commencement of judicial proceedings and/or thereafter at the trial and/or appellate level and/or in pre-judgment and post-judgment or bankruptcy proceedings.

In no event shall the rate of interest charged under this Note exceed the rate that may legally be charged to Maker for obligations of this nature under the laws of the State of Nevada, and any interest that may be paid in excess of the legal limit shall, at the option of Lender, be refunded to Maker or shall be applied towards payment of the principal obligation under this Note.

Each party hereto irrevocably and unconditionally submits to the jurisdiction of the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York and agrees that any such action, litigation, or proceeding may be brought in any such New York State court or, to the fullest extent permitted by applicable law, in such federal court. Each party hereto agrees that a final judgment in any such action, litigation, or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing herein shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Note against Maker or its properties in the courts of any jurisdiction.

Notwithstanding the foregoing, Lender, in its sole discretion, may elect for arbitration in connection with this Note as follows:

Any disputes, claims, or controversies arising out of or relating to this Note, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be referred to and resolved solely and exclusively by binding arbitration to be conducted before the Judicial Arbitration and Mediation Service ("JAMS"), or its successor pursuant to the expedited procedures set forth in the JAMS Comprehensive Arbitration Rules and Procedures (the "Rules"), including Rules 16.1 and 16.2 of those Rules. The arbitration shall be held in New York, New York, before a tribunal consisting of three arbitrators each of whom will be selected in accordance with the "strike and rank" methodology set forth in Rule 15. Either party to this Note may, without waiving any remedy under this Note, seek from any federal or state court sitting in the State of New York any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of the arbitral tribunal. The costs and expenses of such arbitration shall be paid by and be the sole responsibility of Maker, including but not limited to the Maker's attorneys' fees, and each arbitrator's fees. The arbitrators' decision must set forth a reasoned basis for any award of damages or finding of liability. The arbitrators' decision and award will be made and delivered as soon as reasonably possible and in any case within 60 days following the conclusion of the arbitration hearing and shall be final and binding on the parties and may be entered by any court having jurisdiction thereof.

------

To the extent that Lender receives any payment on account of any of Maker's obligations, and any such payment(s) or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, subordinate and/or required to be repaid to a trustee, receiver or any other person or entity under any bankruptcy act, state or federal law, common law or equitable cause, then, to the extent of such payment(s) received, Maker's obligations or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment(s) had not been received by Lender and applied on account of Maker's obligations.

Maker agrees that this Note shall be deemed to have been made under and shall be governed by the laws of the State of Nevada in all respects, including matters of construction, validity and performance. If any provisions of this Note shall be deemed unenforceable under applicable law, such provision shall be ineffective, but only to the extent of such unenforceability, without invalidating the remainder of such provision or the remaining provisions of this Note. All of the terms and provisions of this Note shall be applicable to and be binding upon each and every maker, endorser, surety, guarantor, all other persons who are or may become liable for the payment hereof and their heirs, personal representatives, successors or assigns.

Time is of the essence as to each provision of this Note which requires Maker to take any action within a specified time period.

MAKER AND LENDER (BY ACCEPTING THIS NOTE) HEREBY MUTUALLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER MAKER OR LENDER AGAINST THE OTHER AND BASED UPON, ARISING OUT OF, OR IN CONNECTION WITH, THIS NOTE, OR OTHER DOCUMENTS SECURING OR EXECUTED IN CONNECTION WITH THIS NOTE.

At any time the Maker may prepay all or any portion of the principal amount of this Note and any accrued and unpaid interest without penalty.

------

IN WITNESS WHEREOF, the Maker has executed this Note as of _______.

INTEGRAL TECHNOLOGIES, INC. a Nevada corporation By:___________________________________ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Douglas Bathauer, its Chief Executive Officer

## Exhibit 10.4

**Exhibit 10.4**

![a01.jpg](a01.jpg)

------

![a02.jpg](a02.jpg)

------

![a03.jpg](a03.jpg)

------

![a04.jpg](a04.jpg)

------

![a05.jpg](a05.jpg)

------

![a06.jpg](a06.jpg)

------

![a07.jpg](a07.jpg)

------

![a08.jpg](a08.jpg)

------

![a09.jpg](a09.jpg)

------

![a10.jpg](a10.jpg)

------

![a11.jpg](a11.jpg)

------

![a12.jpg](a12.jpg)

------

![a13.jpg](a13.jpg)

------

![a14.jpg](a14.jpg)

------

![a15.jpg](a15.jpg)

------

![a16.jpg](a16.jpg)

------

![a17.jpg](a17.jpg)

## Exhibit 10.7

**Exhibit 10.7**

![b01.jpg](b01.jpg)

------

![b02.jpg](b02.jpg)

------

![b03.jpg](b03.jpg)

------

![b04.jpg](b04.jpg)

## Exhibit 10.8

**Exhibit 10.8**

![c01.jpg](c01.jpg)

------

![c02.jpg](c02.jpg)

------

![c03.jpg](c03.jpg)

------

![c04.jpg](c04.jpg)

------

![c05.jpg](c05.jpg)

------

![c06.jpg](c06.jpg)

## Exhibit 10.9

**Exhibit 10.9**

May 7, 2018

Sea Otter Global Ventures, LLC

c/o SBI Investments LLC, 2014-1

1111 Brickell Ave, Ste 2920

Miami, FL 33131

<u>Re: Amendment to Convertible Promissory Note</u>

Dear SBI Investments LLC, 2014-1:

This letter agreement (this "Letter Agreement") will confirm our agreement in amending the Replacement Convertible Promissory Note dated May 11, 2017 (the "Note"). Capitalized terms used but not defined herein shall have the respective meaning given to them in the Note.

The Note provides the Holder the right to convert all or any part of the outstanding and unpaid principal amount and accrued and unpaid interest of the Note into fully paid and non-assessable share of Common Stock, and further states the method for calculating such conversions. The Conversion Price is based on market conditions affecting the Common Stock, such as the Market Price. A fixed stock price would greatly simplify the valuation process.

On May 7, 2018, the Borrower reached its authorized Common Stock limit of 250,000,000 shares, including approximately 6,700,000 shares held in reserve. Upon this event, the parties agree to the following amendment to the Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Calculation of Conversion Price</u>. Effective May 7, 2018, the parties agree to a fixed Market Price of $0.0450, the closing Common Stock price on May 7, 2018. The parties further agree to a Conversion Price of $0.0293.

---

| | | |
|:---|:---|:---|
| Very truly yours, | Very truly yours, | **ACCEPTED AND AGREED** |
| **Integral Technologies, Inc.** | **Integral Technologies, Inc.** |  |
| By: |  | By: |
| Name: | Doug Bathauer | Name: |
| Title: | Chief Executive Officer | Title: |

---

## Exhibit 10.10

**Exhibit 10.10**

Oasis Capital, LLC

411 Dorado Beach East

Dorado, PR 00646

<u>Re: Amendment to Convertible Promissory Note</u>

Dear Oasis, LLC:

This letter agreement (this "Letter Agreement") confirms our previous agreement to a fixed price conversion of the Common Stock referenced in the Convertible Promissory Notes with original issue dates of May 11, 2017, May 18 2017, and May 19 2017 in the name of L2 Capital, LLC and later assigned to Oasis Capital, LLC (the "Notes"). Capitalized terms used but not defined herein shall have the respective meaning given to them in the Notes.

The Notes provide the Holder the right to convert all or any part of the outstanding and unpaid principal amount and accrued and unpaid interest of the Notes into fully paid and non-assessable share of Common Stock, and further states the method for calculating such conversions. The Conversion Price is based on market conditions affecting the Common Stock, such as the Market Price. A fixed stock price would greatly simplify the valuation process.

On May 7, 2018, the Borrower reached its authorized Common Stock limit of 250,000,000 shares, including approximately 6,700,000 shares held in reserve. Upon this event, the parties agreed to the following amendment to the Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Calculation of Conversion Price</u>.Effective May 7, 2018, the parties agree to a fixed Market Price of $0.0450, the closing Common Stock price on May 7, 2018. The parties further agree to a Conversion Price of $0.0293.

---

| | | |
|:---|:---|:---|
| Very truly yours, | Very truly yours, | **ACCEPTED AND AGREED** |
| **Integral Technologies, Inc.** | **Integral Technologies, Inc.** |  |
| By: |  | By: |
| Name: | Doug Bathauer | Name: |
| Title: | Chief Executive Officer | Title: |

---

## Exhibit 10.11

**Exhibit 10.11**

**Professional Services Agreement**

Integral Technologies, Inc. (the "Company") located at 2605 Eastside Park Rd., Suite 1, Evansville, Indiana 47715 has engaged the services of Ascentaur, LLC ("Consultant") with offices located 149 Schweitzer Lane, Bardonia, New York 10954 to provide consulting services described on Schedule 1 attached hereto (the "Services"). This letter agreement ("Agreement") sets forth the terms on which Consultant will provide the Services to the Company. The list of Services set forth on Schedule 1 may be amended in writing by mutual agreement of the parties from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company shall provide Consultant with full access to all Company records, including information concerning the business, assets, operations and financial condition of the Company. In addition, Consultant shall have full access to all personnel within the Company as well as the Company's outside professional advisors, including its outside auditors and attorneys. The Company agrees that Consultant will be authorized to make appropriate use of all such information in connection with the performance of the Services, provided, however, that such information shall be kept confidential (consistent with the Nondisclosure Agreement previously executed on July 24, 2020) to the extent that it contains material, non-public information, the disclosure of which may be subject to applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company shall promptly disclose to Consultant any information relating to any known misstatement of material fact contained in any information provided to Consultant concerning the business, assets, operations and financial condition of the Company or any fraud or alleged fraud, whether or not material, that involves management or other personnel that are responsible for the preparation of the Company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The relationship of Consultant to the Company shall at all times be that of an independent contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Consultant shall be subject solely to the control of the Board of Directors of the Company or its assignees. Except for such control, Consultant shall not be subject to the control of any other person or persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Consultant shall be compensated for the Services based on the attached Schedule I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Company agrees to indemnify and hold harmless Consultant and each of its equity holders, managers, directors, officers, employees, and agents (each, "Consultant Indemnified Person") from and against any losses, claims, damages, expenses and liabilities or actions in respect thereof (collectively, "Losses"), and to reimburse each Consultant Indemnified Person for all such Losses as they may be incurred (including all legal fees and other expenses incurred in connection with investigating, preparing, pursuing, defending, paying, settling or compromising any Losses, whether or not in connection with any pending or threatened litigation in which any Consultant Indemnified Person is a named party), arising out of or related to the Services rendered or to be rendered by any Consultant Indemnified Person in connection with this engagement, any regulations promulgated under such laws; provided that the Company will not be responsible for any Losses of any Consultant Indemnified Person to the extent that a court of competent jurisdiction shall have determined by a final judgment that such Losses resulted primarily from actions taken or omitted to be taken by such Consultant Indemnified Person due to his bad faith or willful misconduct.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The engagement of the Consultant shall be for a term commencing on February 16, 2021 and continuing through June 30, 2022 (17 months). Notwithstanding the foregoing, the parties can extend this Agreement by mutual consent on a month-to-month basis. Otherwise, this Agreement may be terminated, at any time, upon five days notice pursuant to the Section 12 below. The obligations of the Company of this Agreement shall survive the completion or termination of this engagement regardless of the manner of such completion or termination and shall be binding upon the Company's successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Representations and Warranties of Company.** 

The Company represents and warrants that upon execution of this Agreement, it has the financial resources to fulfill its obligations under this Agreement, at least as it pertains to the payment of Consulting Fee and Expenses during the Term of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Representations and Warranties of Consultant.** 

Consultant represents and warrants that (a) Consultant is under no restriction which would prevent the Consultant from performing his duties hereunder; (b) Consultant has no physical or mental disability that would hinder his performance of duties under this Agreement; (c) Consultant does presently provide similar services to other companies however such engagements shall not inhibit Consultant's ability to provide the Services to the Company; and (d) Sebastian Giordano is the 100% owner of Ascentaur, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Survival.** 

The covenants, agreements, representations, and warranties contained in or made pursuant to this Agreement shall survive Consultant's termination of Agreement, irrespective of any investigation made by or on behalf of any party.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Modification.** 

This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, supersedes all existing agreements between them concerning such subject matter, and may be modified only by a written instrument duly executed by each party.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Notices.** 

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be by certified mail, return receipt requested, or delivered against receipt to the party to whom it is given at the address of such party set forth in the preamble to this Agreement. Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice of changing a party's address which shall be deemed given at the time of receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Waiver.** 

Any waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing.

------

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Binding Effect. Assignment.** 

Consultant's rights and obligations under this Agreement shall not be transferable by assignment or otherwise, such rights shall not be subject to encumbrances or the claims of Consultant's creditors, and any attempt to do any of the foregoing shall be void. The provisions of this Agreement shall be binding upon and inure to the benefit of Consultant, and shall be binding upon and inure to the benefit of the Company and its successors and assigns. In the case of a change of control event, the Company may elect to assign this Agreement and all of its rights and obligations hereunder to the acquiring or surviving entity.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Governing Law.** 

This Agreement shall be governed by and construed in accordance with the laws of the State of New York. Any disputes which arise under this contract, even after the termination of this contract, will be heard only in the state or federal courts located in the State of New York. The parties hereto expressly agree to submit themselves to the jurisdiction of the foregoing courts in the State of New York. The parties hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the State of New York. Parties waive the right to a jury trial.

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Headings.** 

The headings in this Agreement are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

Accepted and Agreed to this 8<sup>th</sup> day of September 2020.

---

| | | | |
|:---|:---|:---|:---|
| Integral Technologies, Inc. | Integral Technologies, Inc. | Ascentaur, LLC | Ascentaur, LLC |
| By: |  | By: |  |
|  | Doug Bathauer |  | Sebastian Giordano |
|  | Chief Executive Officer |  | Chief Executive Officer |

---

------

**SCHEDULE 1**

<u>Services to be provided by Ascentaur to the Company:</u>

Provide the services as a restructuring consultant to include any other advisory capacities as directed by the Board of Directors including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Undertaken a complete evaluation of the Company's current financial and operational situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Creating a plan that demonstrates short, mid and long-term viability supported by believable assumptions about the future in order to secure financing necessary to restructure the Company's debts, position the Company's business/assets for sale and/or grow the business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Leading restructuring and settlement discussions and arrangements with lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Assisting and/or negotiating directly with trade creditors to assure continued support;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Assisting management in identifying revenue, monetization, profit and cash improvement strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Identifying solutions and assisting management in working out arrangements with unsecured creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Overseeing the timely completion of past due SEC reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Working with outside counsel with strategies for securing increase in authorization shares of the Company's common stock.

Consultant will provide the Board of Directors with ongoing weekly written updates, assessments, recommendations, action and progress throughout this process.

<u>Consulting Fees</u>:

The Company will pay at execution of this Agreement a retainer of $10,000 per month of the Services, payable on the first day of each month, as well as reasonable and customary business expenses in connection with the services provided under this Agreement payable immediately upon the submission of expense report and supporting documentation. Presuming the Agreement continues to June 30, 2022, then the Parties agree that the total amount of consulting fees due will be $170,000.

Commencement of this Agreement and all payments due under this Agreement are contingent upon the Company obtaining financing of approximately $100,000.

<u>Wire Instructions</u>:

## Exhibit 10.12

**Exhibit 10.12**

**AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT**

**THIS AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT (**"**Amendment**"**)** is made and entered into this 1st day of July 2022, by and between Integral Technologies, Inc. (the "Company") and Ascentaur, LLC (the "Consultant"), together sometimes hereinafter referred to as the "Parties".

**<u>RECITALS:</u>**

**WHEREAS,** the Company and the Consultant are parties to a certain Professional Services Agreement dated September 8, 2020 ("Agreement");

**WHEREAS**, the term of the Professional Services Agreement expired on June 30, 2022 ("Term");

**WHEREAS,** the Parties, pursuant to Paragraph 6 of the Agreement, desire to extend the Term of the Agreement.

**NOW, THEREFORE,** for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the mutual covenants contained herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless otherwise defined herein, Capitalized terms shall have the meaning ascribed to such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Additional Term.</u> The Parties hereby agree to extend the Agreement for additional three months ending on September 30, 2022 (the "Additional Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Continuance of the Agreement</u>. Except as amended by this Amendment, all other terms and provisions of the Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation</u>. The parties agree that the Compensation paid to the Consultant for the Additional Term shall be at the rate of $10,000 per month, such monthly amount which shall be added, on the 1<sup>st</sup> day of each month commencing July 1, 2022, to the total amount of $170,000 currently due and owing for the original Term of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Services</u>. Schedule 1, attached herein, further clarifies the Services to be provided by the Consultant and sets forth certain deliverables by the Company to the Consultant.

IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their respective and proper corporate officers the day and year first written above.

---

| | |
|:---|:---|
| **ACKNOWLEDGED, AGREED & ACCEPTED:**<br> **Integral Technologies, Inc.**<br> By:_________________ <br> Doug Bathauer, CEO | **Ascentaur LLC**<br> By:_________________<br> Sebastian Giordano, CEO |

---

------

**Schedule 1**

**Services**

**To facilitate the next phase of the Agreement during the Extended Period, the Parties agree to the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Company will appoint you as a company representative to the auditors and be responsible for facilitating the audit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Consultant to establish and manage timeline for audit and relisting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Consultant to determine and manage budget to complete the audit and filing process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Consultant to engage appropriate vendors needed for filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Consultant to negotiate settlements and/or work outs with vendor, debt holders, past employees and other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Consultant to work with the board to structure pathway forward for the company that enables the possibility for best shareholder value possible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Consultant to work with board to coordinate communication strategy with shareholders/market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Consultant to work with board to determine management structure of the company going forward.

Integral understands that it needs to timely provide to Ascentaur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All outstanding debts/vendors/note holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Overview of the history of Integral to better provide context;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Board's desire for future involvement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Board's thoughts on the future path forward.

## Exhibit 10.13

**Exhibit 10.13**

**SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT**

**THIS AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT (**"**Amendment**"**)** is made and entered into this 1st day of October 2022, by and between Integral Technologies, Inc. (the "Company") and Ascentaur, LLC (the "Consultant"), together sometimes hereinafter referred to as the "Parties".

**<u>RECITALS:</u>**

**WHEREAS,** the Company and the Consultant are parties to a certain Professional Services Agreement dated September 8, 2020 ("Agreement");

**WHEREAS**, the term of the Professional Services Agreement expired on June 30, 2022 ("Term");

WHEREAS, the Term was previously extended to September 30, 2022 (the "Additional Term"); and

**WHEREAS,** the Parties, pursuant to Paragraph 6 of the Agreement, desire to further extend the Term of the Agreement.

**NOW, THEREFORE,** for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the mutual covenants contained herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless otherwise defined herein, Capitalized terms shall have the meaning ascribed to such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Additional Term.</u> The Parties hereby agree to further extend the Agreement for additional three months ending on December 31, 2022 (the "Second Additional Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Continuance of the Agreement</u>. Except as amended by this Amendment, all other terms and provisions of the Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation</u>. The parties agree that the Compensation paid to the Consultant for the Second Additional Term shall be at the rate of $10,000 per month, such monthly amount which shall be added, on the 1<sup>st</sup> day of each month commencing October 1, 2022, to the total amount of $200,000 currently due and owing for the original Term and the Additional Term of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Services</u>. Schedule 1, attached herein, further clarifies the Services to be provided by the Consultant and sets forth certain deliverables by the Company to the Consultant.

IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their respective and proper corporate officers the day and year first written above.

---

| | |
|:---|:---|
| **ACKNOWLEDGED, AGREED & ACCEPTED:**<br> **Integral Technologies, Inc.**<br> By:_________________<br> Doug Bathauer, CEO | **Ascentaur LLC**<br> By:_________________<br> Sebastian Giordano, CEO |

---

------

**Schedule 1**

**Services**

**To facilitate the next phase of the Agreement during the Extended Period, the Parties agree to the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Company will appoint you as a company representative to the auditors and be responsible for facilitating the audit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Consultant to establish and manage timeline for audit and relisting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Consultant to determine and manage budget to complete the audit and filing process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Consultant to engage appropriate vendors needed for filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Consultant to negotiate settlements and/or work outs with vendor, debt holders, past employees and other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Consultant to work with the board to structure pathway forward for the company that enables the possibility for best shareholder value possible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Consultant to work with board to coordinate communication strategy with shareholders/market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Consultant to work with board to determine management structure of the company going forward.

Integral understands that it needs to timely provide to Ascentaur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All outstanding debts/vendors/note holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Overview of the history of Integral to better provide context;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Board's desire for future involvement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Board's thoughts on the future path forward.

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ElectriPlast Corp., a wholly owned subsidiary, was incorporated in the State of Virginia on January 20, 1994.