Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 880

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 880
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 resources,
finance, legal, and executive management. The general and administrative expenses also include occupancy expenses (including rent, utilities,
and facilities maintenance), professional fees, consulting fees, insurance, travel, contingent consideration, transaction costs, integration
costs, and other expenses. Our general and administrative expenses exclude depreciation and amortization.

In the nearest future, we expect our general and
administrative expenses to continue to increase to support business growth. Over the long term, we expect general and administrative expenses
to decrease as a percentage of revenue.

Depreciation and amortization expenses

Our depreciation and amortization expense consists
primarily of depreciation of fixed assets, amortization of Customer relationship and capitalized software development costs, and amortization
of intangible assets. We expect our depreciation and amortization expense to increase as we expand our business organically and through
acquisitions.

Other income (expense), Net

Other income (expense), net consists of finance cost and gains or losses
on foreign currency.

Deferred revenues

Advanced billings to clients in excess of revenue
earned are recorded as deferred revenue until the revenue recognition criteria are met.

38

Unbilled accounts receivable

Unbilled accounts receivable is a contract asset
related to the delivery of our professional services for which the related billings will occur in a future period. Unbilled receivables
are classified as accounts receivable on the consolidated balance sheet.

Although we believe that our approach to estimates
and judgments regarding revenue recognition is reasonable, actual results could differ and we may be exposed to increases or decreases
in revenue that could be material.

Provision for income taxes

Provision for income taxes consists of federal
and state income taxes in the United States, including deferred income taxes reflecting the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes.

Paycheck protection program

On February 9, 2021, we received a PPP loan pursuant
to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) amounting to $1.06 million. The PPP, established
as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses
for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable
after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities,
and maintains its