Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 988

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 988
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 monthly.

Platform Services

The Company has standard contracts for its Platform
Services, however the statement of work contained in such contracts is unique for each customer. A typical Platform Services contract
would provide for some or all of the following types of services being provided to the customer: Data Analytics, Backup and Recovery,
through our Platform.

The revenue from Platform services is a distinct
performance obligation and recognized based on SSP. During the periods presented the Company generated revenue from Platform services
on a fixed-price solutions delivery model. Revenues related to fixed-price contracts are recognized as the service is performed using
the cost-to-cost method, under which the total value of revenues is recognized based on the percentage that each contract’s total
labor cost to date bears to the total expected labor costs. The cost-to-cost method requires estimation of future costs, which is updated
as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment.
The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes
known and any anticipated losses on contracts are recognized immediately, where appropriate.

Our contractual terms and conditions for Software
services, Managed Services and Support and Platform services mandate that our services are documented and subject to inspection, testing
at the time of delivery to customer. In addition, the Company needs to integrate seamlessly into the customers’ systems. Also, the
customer has a right to cancel all, or part of the services rendered if it is not in accordance with statement of work and within the
stipulated time

Contract Balances

The timing of revenue recognition, billings, and
cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deferred revenue
(contract liabilities) on the Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual
terms, generally monthly upon achievement of contractual milestones. Generally, billing occurs after revenue recognition, resulting in
contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international contracts, before
revenue is recognized, resulting in contract liabilities. These deposits are liquidated when revenue is recognized

F-12

The beginning and ending contract balances were as follows:

    December 31,  
    December 31, 

    2024  
    2023 

    (In thousands) 
  
    Accounts receivable 
    $1,110  
    $