Deep Dive: Neuralbase AI Ltd. 2024 10-K Review

Unlocking enterprise AI document processing—but facing an uphill financial climb.

Warren.AI 💰 2.0 / 10

Executive Summary

Neuralbase AI Ltd. (formerly Viratech Corp.) is a Nevada-based development-stage company that acquired the MultiDoc.ai platform in May 2024. MultiDoc.ai is an AI/ML-powered intelligent document processing (IDP) solution that allows enterprises to train, deploy, and manage custom AI assistants using exclusively their own internal documents. By leveraging OCR, NLP, open-source vector databases, and role-based access, the platform automates information retrieval, classification, and verification across digital, scanned, and handwritten content.

Key takeaways from Neuralbase AI’s 2024 Annual Report (Form 10-K):

• MultiDoc.ai target industries: oil and gas, legal, healthcare/labs, customer support, consulting firms, call centers • Core offerings: subscription licenses, third-party subscriptions (revenue share), B2B licensing • 2024 net income of $1.28 million driven by non-recurring gain on forgiveness ($2.09 million) and asset impairment ($0.72 million) • Zero operating revenues in FY 2024 and FY 2023—still in beta and pre-revenue stage • Working capital deficit of $0.66 million at 12/31/2024 (vs. $2.66 million in 2023) • SBA EDIL loan of $46,000, related-party borrowings, and convertible preferred stock financing • Material doubt about the company’s ability to continue as a going concern without substantial financing • Investment Score: 2.0/10

1. Business Overview

Neuralbase AI Ltd. is a development-stage company solely focused on the MultiDoc.ai platform—an AI/ML system designed for intelligent document processing. Unlike general-purpose LLM chatbots (e.g., ChatGPT), MultiDoc.ai uses customer-owned document archives (PDFs, images, OCR’d scans, handwritten notes) to build private AI assistants. Key features include:

• Document ingestion: High-quality OCR, automatic classification, splitting, and validation
• NLP & semantic search: Tokenization, NER, lemmatization, semantic matching via vector embeddings
• AI assistant creation: Pre-built templates (invoices, receipts, contracts) and custom model training
• Source verification: Precise citations of paragraphs and docs used to generate each answer
• Access control: Role-based permissions, JWT/API key authentication
• Integration: API endpoints, embeddable chat UIs, cloud infrastructure compatibility

MultiDoc.ai is positioned for sectors with large volumes of documents and high compliance needs, including legal firms (case law, contracts), pipeline inspection in oil & gas, environmental labs, call centers, and consulting practices. Revenue models include SaaS subscriptions (tiered by users/doc volume), marketplace subscriptions (content creators selling AI assistants), and enterprise licensing (OEM/B2B deals).

2. Product Strategy & Development

Neuralbase AI leverages open-source ecosystems (vector DBs, NLP frameworks, OCR engines) to accelerate R&D and reduce costs. The platform is in its beta test phase:

• 422 “beta test” licenses issued to individuals and small entities
• Four corporate beta customers, with one in pilot integration

Anticipated product roadmap and milestones (12 months):

• Q1–Q2 2025: Complete core platform refinement, secure initial paid license agreements, ramp marketing campaigns
• Q3–Q4 2025: Achieve active corporate user base, expand industry partnerships, initiate next financing round

Planned 12-month financing need: $400 K (R&D $300 K, Marketing $75 K, Ops $25 K). A minimum $50 K is required to maintain basic operations; failure to secure funding may put the platform development on hold.

3. Competitive Landscape & Market Position

Enterprise document AI is a fast-growing market, with solutions from Microsoft Azure Cognitive Services, Google Cloud Document AI, IBM Watson, and Amazon Comprehend. Neuralbase AI’s differentiators:

• True “private usage”: only ingested customer documents, no external data or hallucinations
• Transparent citations: users can verify answers at the paragraph/document level
• Flexible open-source integration: lower total cost of ownership, modular scaling

However, limited commercial traction and scant operational history place MultiDoc.ai at a disadvantage. Larger cloud incumbents have deeper pockets, established enterprise sales channels, compliance certifications, and robust support teams.

4. Financial Analysis

Neuralbase AI is pre-revenue—no sales in 2024 or 2023. The FY 2024 net income of $1.28 million is solely due to a $2.09 million gain on forgiveness of accrued liabilities and a $0.72 million one-time asset impairment. Key financial metrics:

Operating results

• Loss from operations: $(76,900)
• Other income: $1.355 million
• Net income: $1.278 million (vs. net loss $0.661 million in 2023)

Balance sheet

• Working capital deficit: $(0.66 million)
• Total liabilities: $0.709 million
• Total equity: $(0.708 million)
• No cash on hand at 12/31/24
• Long-dated SBA EDIL loan: $46 K at 3.75% interest
• Related-party advances and promissory notes: $80 K and $7 K

Cash flows

• Operating cash flow: $(63 K)
• Financing cash flow: +$63 K

Burn Rate & Runway

With negative operating cash flow of roughly $5 K per month in 2024 (excluding one-time gain), the current capital structure provides minimal runway. An infusion of at least $50 K is required to sustain operations over the next 12 months; $400 K would fully fund the product roadmap.

5. Risk Factors & Going Concern

The 10-K discloses multiple red flags:

• No revenues; development-stage; dependent on outside financing
• Working capital deficit; zero cash balance
• Material weakness in internal controls (lack of segregation of duties)
• Historically limited management bandwidth; sole director/CEO
• Significant related-party debt and loans
• Ongoing dilution risk: 2.5 billion authorized shares, preferred issuances, reverse stock splits
• Early-stage product with limited market validation (1–4 corporate beta testers)
• Highly competitive market with deep-pocket incumbents
• SBA EDIL loan could restrict cash flows with interest and long maturity
• Going concern opinion by auditors; continued operations hinge on capital raises

6. Management and Governance

As of April 2025, the Board of Directors and executive lineup is a single person, CEO/Chairman/President/CFO/Secretary Frank Gomez. High concentration of control (94.9% beneficial stake) creates governance risk. No formal audit or compensation committees; no code of ethics in place.

7. Investment Thesis

Neuralbase AI has assembled a viable technical foundation with MultiDoc.ai, appealing features, and a clear market need for secure IDP. The emphasis on private data, transparent citations, and role-based security maps well to regulated industries. Yet, the company is severely undercapitalized, pre-revenue, and carries a going concern warning. Major execution risks:

• Insufficient funding to complete product development, sales hiring, and marketing
• Lack of commercial traction and recurring revenue
• Overreliance on open-source components—potential IP and security risks
• Single-person management and material weakness in control environment

Valuation

Early-stage comps trade at high multiples of ARR once revenue scales, but Neuralbase AI is still bled out by expenses. The only tangible “value” on the BS is the $0 net assets, excluding intangible IP and development stage.

8. Conclusion & Investment Score

• Neuralbase AI Ltd. remains a high-risk, pre-revenue startup with no clear path to profitability without rapid financing and commercial adoption.
• Management must secure funding, sign marquee enterprise clients, and prove recurring revenue models within 6–12 months or face potential shutdown.

Investment Score: 2.0/10

This score reflects the cutting-edge IDP technology (upside), counterbalanced by extreme financial fragility, zero revenues, and execution risk (downside). Neuralbase AI is most suitable for deep-value, high-risk investors with strong conviction in multi-disciplinary AI startups and ability to participate in future funding rounds.

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Disclosure: This blog post is for informational purposes only and is not investment advice. Perform your own diligence before making any investment decisions.