Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 990

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 990
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 the impairment assessment, management determined that an impairment loss of $1,710
was necessary to reflect the reduced value of the customer relationship as at December 31, 2023. This impairment loss, which is a non-recurring
expense, has been recognized in the financial statements for the reporting period ending on that date

Based on the impairment assessment, management
determined there is no impairment loss as at December 31, 2024.

Goodwill

Goodwill is the excess of the cost of an acquired
entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed.

The Company’s annual goodwill impairment
test resulted in impairment of $0 for the year ended December 31, 2024, and $0 for the year ended December 31, 2023.

F-13

Allowance for Doubtful Accounts

Trade accounts receivable is stated at the amount
the Company expects to collect and do not bear interest. The collectability of trade receivable balances is regularly evaluated based
on a combination of factors such as customer creditworthiness, past transaction history with the customer, current economic industry trends
and changes in customer payment pattern. Additionally, if it is determined that a customer will be unable to fully meet its financial
obligation, such as in the case of a bankruptcy filing or other material event impacting its business, a specific allowance for doubtful
accounts may be recorded to reduce the related receivable to the amount expected to be recovered.

Although we believe that our approach to estimates
and judgments regarding our allowance for doubtful accounts is reasonable, actual results could differ and we may be exposed to increases
or decreases in required allowances that could be material.

Business Combinations

As per ASC 805-50 a common-control transaction
does not meet the definition of a business combination because there is no change in control over the net assets. The accounting for these
transactions is addressed in the “Transactions Between Entities Under Common Control”. The net assets are derecognized by
the transferring entity and recognized by the receiving entity at the historical cost of the entities under common control. Any difference
between the proceeds transferred or received and the carrying amounts of the net assets is recognized in equity in the transferring and
receiving entities’ separate financial statements and eliminated in consolidation. The change in accounting principle is applied
retroactively for all periods presented.

We account for business combinations using the
acquisition method, which requires the identification of the acquirer, the determination of the acquisition date