Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 501

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 501
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    December 31,  
    December 31, 

    2024  
    2023 

    (In thousands) 
  
    Cash flows used in operating activities 
    $(1,081) 
    $(2,151)
  
    Cash flows used in investing activities 
     -  
     (12)
  
    Cash flows provided by financing activities 
     (133) 
     2,056 
  
    Net increase (decrease) in cash and cash equivalents 
    $(1,214) 
    $(107)

As of December 31, 2024, our principal sources
of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.002 million.

The accompanying financial statements have been
prepared assuming the Company will continue as a going concern. The Company is yet to achieve profitable operations, has negative cash
flows from operating activities, and is dependent upon equity or other financings to fund ongoing operations, all of which raises substantial
doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty. 

Liquidity

The current ratio measures a company’s ability
to pay off its current liabilities (payable within one year) with its total current assets such as cash, accounts receivable, and inventories.
The higher the ratio, the better the company’s liquidity position. A good current ratio is between 1.2 to 2, which means that a
business has 2 times more current assets than liabilities to covers its debts. The Company’s current ratio, as of December 31, 2024,
is 0.33 compared to 0.74 as of December 31, 2023.

The Company’s current debt equity ratio,
as on December 31, 2024, is (0.50), compared to (3.2) as on December 31, 2023. A debt-to-equity ratio below 1 means that a company has
lower exposure to debts than equity.

The Company does not have inventory and hence the quick ratio is the
same as the current ratio.

Sources of Liquidity

As of December 31, 2024, our principal sources
of liquidity consisted of cash and cash equivalents of $0.002 million. We believe that the fund raise of $15.20 million in February, 2025