Systems and methods for processing neural signals are provided. A neural data analysis system may comprise a feature extraction module configured to extract a plurality of features from neural signal waveforms obtained by an implanted neural interface probe with a plurality of channels or electrodes, and transmit the extracted features as a plurality of discrete outputs. The neural data analysis system may also comprise a feature-event coalescence module configured to receive the plurality of discrete outputs from the feature extraction module, and construct a model-based inference of bioelectric activity based on feature event statistics, prior knowledge of bioelectric signals, and/or a behavioral model of the feature extraction module. The neural data analysis system may further comprise an approximator module configured to receive a plurality of coalesced events from the feature-event coalescence module, and apply a series of transformations to the coalesced event data to generate a higher entropy neural code.