Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 331

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 331
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    Product development 
     -  
     477  
     477  
     -  
     477  
     333  
     144 
  
    Total Intangible Assets 
     -  
    $14,288  
    $14,288  
    $-  
    $14,288  
    $13,431  
    $857 

Amortization expense for the year ended December
31, 2024, and 2023 were $857 and $1,518, respectively. This relates amortization of internally developed software, intellectual property,
and customer relationships. The net carrying amount of intangible as of December 31, 2024, and December 31, 2023 were $0 and $857 respectively.

  Nature of Intangibles   Useful Life  Customer relationships   5 years  Intellectual property   5 years  Product development   5 years 

F-17

5) Leases

The Company determines if an arrangement contains
a lease at inception. Right of use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease
liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease
commencement date based on the estimated present value of lease payments over the lease term.

The Company is currently operating from two office
locations leased by SecureKloud. The Company does not have any signed lease agreement in its name. The Company’s principal facility
is located in Pleasanton, CA and has another facility in Plainsboro, NJ. Rent expenses were $135 and $135 for the twelve months ended
December 31, 2024, and December 31, 2023, respectively.

The Company utilized a portfolio approach in determining
the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category
of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the
lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as
well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Leases with a term of 12 months or less are not
recorded on the balance sheet, per the election of the practical expedient noted above. The Company recognizes lease expense for these
leases