NeuralBase AI Reports Turnaround in Financial Performance, Net Income of $1.3M for Nine Months Ended September 30, 2024

NeuralBase AI Ltd. (formerly Viratech Corp) reported significant financial developments for the nine months ended September 30, 2024, as outlined in its recent 10-Q filing. The company experienced a notable turnaround in its financial performance, achieving a net income of $1,302,773, compared to a net loss of $(253,886) for the same period in 2023. This improvement was primarily driven by a substantial increase in other income, which reached $1,360,033, contrasting with an expense of $(6,467) in the prior year.

Operating expenses for the nine months decreased significantly to $57,260 from $247,419 in the previous year, reflecting a strategic effort to reduce costs. For the three months ended September 30, 2024, the company reported total operating expenses of $17,505, up from $11,950 in the same quarter of 2023. Despite this increase, the overall trend indicates a strong focus on cost management.

The company’s total liabilities decreased to $684,556 as of September 30, 2024, down from $2,707,329 at the end of 2023. Current liabilities also saw a reduction, amounting to $638,556 compared to $2,661,329 previously. This decline in liabilities contributed to an improved accumulated deficit of $(3,940,916), an improvement from $(5,243,689) at the end of 2023.

In terms of strategic developments, NeuralBase AI executed an Asset Purchase Agreement on May 16, 2024, acquiring proprietary AI assets related to "Multidoc AI" for 9,000,000 restricted shares of Series A Preferred Stock valued at $720,000. This acquisition was part of a broader strategy to enhance its product offerings. However, the company also recorded an impairment of goodwill amounting to $720,000 for the nine months ended September 30, 2024, indicating challenges in asset valuation.

Key management changes included the resignation of Mr. Charandeep Gopishetty as President and CEO, with Mr. Frank Gomez appointed as the new Sole-Officer and Director. Additionally, an unwind agreement was executed to return assets acquired under a previous purchase agreement.

Despite these positive developments, the company faces challenges regarding its ability to continue as a going concern, primarily due to reliance on external funding sources and the absence of firm financing agreements. As of September 30, 2024, NeuralBase AI had 1,499,338,547 shares of common stock issued and outstanding, with a working capital deficit of $638,556.