Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 77

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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 term ‘Chief Operating Decision Maker’
(CODM) to be the Chief Financial Officer and Chief Operating Officer. The CODM, along with the management team, reviews the financial
information presented on a consolidated basis and uses net results for purposes of making operating decisions, allocating resources, and
evaluating financial performance. Accordingly, the Company has determined that it operates in three distinct reportable operating segments,
and all required financial segments information can be found in the interim condensed consolidated financial statements. The long-lived
assets are not material as of June 30, 2025. The measure of segment assets is reported on the balance sheet as total consolidated assets.
Refer to the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 for total consolidated assets

7

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Revenue Recognition

We recognize revenues as we transfer control of
deliverables (services, solutions, and platform) to our clients in an amount reflecting the consideration to which we expect to be entitled.
To recognize revenues, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance
obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in
the contract, and (5) recognize revenues when a performance obligation is satisfied. We account for a contract when it has approval and
commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance
and collectability of consideration is probable. We apply judgment in determining the customer’s ability and intention to pay based
on a variety of factors including the customer’s historical payment experience.

For performance obligations where control is transferred
over time, revenues are recognized based on the extent of progress towards completion of the performance obligation. The selection of
the method to measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided.

Software Services

The Company enters into contractual obligations
with the customers to perform (i) Strategic advisory services which include assessment of the enterprise network, applications environment
and advise on the design and tools; (ii) Implementation services which include deployment, upgrades, enhancements, migration, training,
documentation and maintenance of various electronic health record systems and (iii) Development services which include customization of
network and applications