Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 90

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 appears in the income statement)
and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased
to include the number of additional common stocks that would have been outstanding if the dilutive potential common stocks had been issued
during the period to reflect the potential dilution that could occur from common stocks issuable through contingent shares issuance arrangement,
stock options or warrants.

Fair Value Measurements

The Company measures its financial assets at
fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of
unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable
inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

    Level 1 — 
    Inputs are observable and
    reflect quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement
    date.

    Level 2 — 
    Inputs other than quoted
    prices included within Level 1 that are observable, either directly or indirectly.

    Level 3 — 
    Inputs that are unobservable

Money market funds and U.S. treasury securities
are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing
market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model
driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or
alternative pricing sources with reasonable levels of price transparency.

12

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Stock-Based Compensation

The Company accounts for stock-based awards to
employees and consultants in accordance with applicable accounting principles, which requires compensation expense related to share-based
transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of
the fair value of the stock options over the instruments vesting period. Options awarded to purchase shares of common stock issued to
non-employees do not need to be remeasured as per ASU 2018-07 principles.

The Company adopted the “2020 Stock Incentive
Plan” (Plan), and the