Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 17

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 at the later of the satisfaction of certain withholding requirements or within 120 days of the Closing
Date; during the quarter ended June 30, 2025, the Company made a payment of $600 out of the $1,500 obligation. The remaining balance of
$900 is recognized as payable as at June 30, 2025. (2) 1,388,041 shares of restricted common stock of the Company equal to $3,000 divided
by $2.16, issued on the Closing Date; and (3) up to $1,200 in earn-out payments contingent on first-year financial performance targets
to be agreed upon within 90 days of the Closing Date.

The final determination of the fair values, purchase consideration,
related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period of up to
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