Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 71

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 71
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 were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Goodwill and Intangible Assets As discussed in Note 2 and 5 to the financial statements, the Company acquired two entities during 2020 and 2021 accounted for as business combinations, which required assets and liabilities assumed to be measured at their acquisition date fair values. The Company capitalized software development costs paid to a related party during 2022 and prior. At least annually, goodwill is to be evaluated for impairment. Certain intangible assets are required to be assessed annually for impairment based if it is determined that there are impairment indicators. Auditing management’s evaluation of the impairment of goodwill and intangible assets can be a significant judgment given the fact that the Company uses management estimates on future revenues and expenses which are not easily able to be substantiated. Given these factors and due to significant judgements made by management, the related audit effort in evaluating management’s judgments in evaluation of intangible assets required a high degree of auditor judgment. The procedures performed included evaluation of the methods and assumptions used by the Company, tests of the data used and an evaluation of the findings. We evaluated and tested the Company’s significant judgments that determine the impairment evaluation of intangible assets. /s/ M&K CPAS, PLLC We have served as the Company’s auditor since 2024. The Woodlands, TX February 14, 2025 F-3 HEALTHCARE TRIANGLE INC Consolidated Balance Sheets

| Assets                                                                                                                                                                    
 Current assets                                                                                                                                                            |     | December 31,   
 2023           
 (Restated)     
 (In thousands) |         |   |     | 2022       
 (Restated) |         |   |
|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:---------------|--------:|:--|:----|:-----------|--------:|:--|
| Cash and cash equivalents                                                                                                                                                 |     | $              |   1,234 |   |     | $          |   1,341 |   |
| Accounts receivable                                                                                                                                                       |     |                |   3,