Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 86

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during the measurement
period will be recorded in the reporting period in which the adjustment is determined.

14

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

5) Leases 

The Company determines if an arrangement contains
a lease at inception. Right of use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease
liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease
commencement date based on the estimated present value of lease payments over the lease term.

The Company is currently operating from two office
locations leased by SecureKloud. The Company does not have any signed lease agreement in its name. The Company’s principal facility
is located in Pleasanton, CA and has another facility in Plainsboro, NJ. Rent expenses for the three months ended June 30, 2025, and
2024 were $45 and $33 respectively and for the six months ended June 30, 2025 and 2024, were $89 and $67 respectively.

The Company utilized a portfolio approach in determining
the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category
of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the
lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as
well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Leases with a term of 12 months or less are not
recorded on the balance sheet, per the election of the practical expedient noted above, which the Company has adopted. The Company recognizes
lease expense for these leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period
in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured
using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred.

6) Other current assets:

    Particulars 
    June 30,  2025  
    December 31,  2024 
  
    Other current assets