Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 34

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 In evaluating the similarity of guideline
companies to us, we considered factors such as industry, stage of life cycle, size, and financial leverage. We intend to continue to
consistently apply this process using the same or similar guideline companies to estimate the expected volatility until sufficient historical
information regarding the volatility of the share price of our common stock becomes available.

●Expected
term. We estimate the expected term using the simplified method, as we do not have sufficient historical exercise activity to develop
reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The simplified method calculates
the average period the stock options are expected to remain outstanding as the midpoint between the vesting date and the contractual
expiration date of the award.

●Risk-free
interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for maturities
corresponding with the expected term of the option.

●Expected
dividend yield. We have never declared or paid any dividends and do not presently plan to pay dividends in the foreseeable future.
Consequently, we use an expected dividend yield of zero.

27

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

We are required to estimate the fair value of
the common stock underlying our stock-based awards when performing fair value calculations

Historically for all periods prior to our IPO,
given the absence of a public trading market for our common stock, and in accordance with the American Institute of Certified Public Accountants
Practice Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation, we exercised reasonable judgment and considered
numerous objective and subjective factors to determine the best estimate of the fair value of our common stock including:

●contemporaneous
valuations performed at periodic intervals by unrelated third-party specialists

●our
actual operating and financial performance.

●relevant
precedent transactions involving our capital stock;

●likelihood
of achieving a liquidity event, such as an initial public offering or a sale of our company given prevailing market conditions and the
nature and history of our business;

●market
multiples of comparable companies in our industry;

●stage
of development.

●industry
information such as market size and growth;

●illiquidity
of stock-based awards involving securities in a private company; and

In valuing our common stock prior to our IPO,
our board of directors determined the enterprise