Overview

The Company operates to develop artificial intelligence products that enable companies and individuals to reach their highest potential by eliminating language barriers in daily communications. The Company’s focus is on developing a proprietary architecture that is faster and more accurate than any other company, with a commitment to providing superior quality services to its customers. The Company intends to serve a wide variety of markets and customers and will be focused on becoming a leader in the creation of pragmatic products for the interpretation and translation industry.

Business Summary

The Company develops and markets artificial intelligence products that eliminate language barriers in daily communications by providing high-quality, accurate, and efficient interpretation and translation services using natural language processing (NLP) technology. The Company’s proprietary AI and machine learning architecture enable seamless translation and transcription of spoken and written words in seconds across multiple languages. The VerbumSuite platform facilitates fluid and effective communication among individuals regardless of linguistic differences, with support for real-time conversations over-the-phone, virtual meetings, and online chats in over 140 languages and dialects.

Our Products

The Company’s current VerbumSuite products are built on its proprietary and patented systems and methods for substantially real-time speech, transcription, and translation technology. The key products are:

Product	Description
Verbum	Supports real-time web-based conversations, discussions, meetings, and online chats in 140 languages, enabling fluent and effective communication among individuals that do not speak the same language. Distributed through the online platform, direct sales, and partnerships with video conferencing providers.
VerbumOnSite	Unlocks the power of seamless communication at live events through real-time translation and captioning services in over 140 languages. Integrates into the event setup to ensure a smooth and hassle-free experience.
VerbumCall	Unlocks the power of seamless communication over the phone in 140+ languages without the need for internet connection or additional applications. Integrates into the user’s current systems.
Verbum for Microsoft Teams	Enhances the Microsoft Teams experience by facilitating multilingual groups to come together in meetings, enabling collaborators from all over the world to work together without language barriers.
Verbum SDK	Allows software programmers, potential channel partners, and corporate development teams to integrate the Verbum platform into new or existing software applications, helping them remove communications barriers.

Components of Our Results of Operations

Net Revenue The Company currently derives its revenue primarily from the sale of its products. Net revenue is expected to increase as the Company adds new customers and offers additional products, though it may fluctuate due to various factors.

Operating Expenses Operating expenses consist primarily of research and development, salaries and benefits, infrastructure and equipment, professional services, and distribution and delivery.

Total Other Expense Other expenses consist primarily of interest expense and any gains or losses from changes in fair market value of derivative liabilities associated with the issuance of convertible notes.

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Metric	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024	Increase/(Decrease)
Revenue	$128,518	$5,387	$123,131
Total Revenue	$128,518	$5,387	$123,131
Total Operating Expenses	$1,058,051	$935,605	$122,446
Loss from Operations	$(929,533)	$(930,218)	$(685)
Total Other Expense	$(24,682)	$(6,879)	$17,803
Net Loss	$(954,215)	$(937,097)	$17,118

Net Revenue The Company’s net revenue for the three months ended March 31, 2025 was $128,518, compared to $5,387 for the three months ended March 31, 2024, an increase of $123,131. This increase was due to the Company entering into an OEM service agreement during the year ended December 31, 2024.

Operating Expenses Total operating expenses for the three months ended March 31, 2025 were $1,058,051, compared to $935,605 for the three months ended March 31, 2024, an increase of $122,446. This increase was primarily due to higher research and development, general and administrative, and legal and professional expenses related to the development and marketing of translation and transcription products, as well as increased consulting fees.

Other Expense Other expense increased by $17,803 for the three months ended March 31, 2025 compared to the same period in 2024, primarily due to increased interest expense attributable to higher borrowings.

Net Loss Net loss for the three months ended March 31, 2025 was $954,215, compared to $937,097 for the three months ended March 31, 2024, an increased net loss of $17,118. This was primarily due to the $122,446 increase in operating expenses.

Liquidity and Capital Resources

As of March 31, 2025, the Company had a working capital deficit of $3,555,134. The Company has incurred net losses since inception and anticipates net losses and negative operating cash flows in the near future. The Company’s primary sources of capital have been cash generated from common stock sales and debt financing, including loans from the President and CFO and related parties.

Cash Flow

Metric	Three Months Ended March 31, 2025	Three Months Ended March 31, 2024
Net Cash Used in Operating Activities	$(616,575)	$(964,843)
Net Cash Provided by Financing Activities	$443,000	$35,000
Net Change in Cash	$(173,575)	$(929,843)

The decrease in net cash used in operating activities and the increase in net cash provided by financing activities were primarily attributable to changes in accounts receivable, accounts payable, deferred revenue, and increased debt financing.

Critical Accounting Policies and Estimates There were no changes to the application of critical accounting policies previously disclosed in the Registration Statement.

Cautionary Notice Regarding Forward-Looking Statements This report includes forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from the Company’s expectations.

Notice Regarding Trademarks This report includes trademarks, tradenames and service marks that are the Company’s property or the property of others. The absence of any “™” or “®” symbol is not intended to suggest a lack of assertion of the Company’s rights or the rights of any applicable licensor.