Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 100

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 or involuntary, the Series B Convertible
Preferred Stock will rank: (i) senior to all other classes or series of capital stock of the Corporation now existing or hereafter authorized,
classified or reclassified, and (ii) junior to all Indebtedness of the Corporation now existing or hereafter authorized (including Indebtedness
convertible into Common Stock).

The holders of the Series B Convertible Preferred
Stock shall not be entitled to receive dividends paid on the Corporation’s Common Stock.

Series A Preferred Stock

On
March 12, 2025, the Board of Directors of the Company approved the issuance of 14,000 Series   A
Preferred Stock to Mr. Suresh Venkatachari, who owns 100% of all issued Series A Preferred Stock. These stocks carried super voting rights
equivalent to 1,000 votes per share. As at September 30, 2025, the total issued and outstanding Series A Preferred Stock was 20,000. The
issuance of additional Series A preferred stock was done as part of the PIPE financing during the period, pursuant to an understanding
with the Series A stockholders that the execution of the financing would not dilute their control over the Company. The issuance of the
Series A Super Voting Preferred Stock was deemed exempt from registration under Section 4(a)(2) of the Securities Act or Regulation D
promulgated thereunder in that the issuance of securities did not involve a public offering. The recipient of such securities represented
its intention to acquire the securities for investment purposes only and not with a view to or for sale in connection with any distribution
thereof.

19

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Series B Preferred Stock

On October 21, 2024, Healthcare Triangle, Inc
acquired substantially all of the business, assets, and operations relating to cloud and technology domain of SecureKloud Technologies,
Inc., a Nevada corporation. The Acquired Assets were acquired by Healthcare Triangle, Inc under an Asset Transfer Agreement, dated October
21, 2024.

The consideration for the Acquired Assets consisted
of the issuance of 1,600,000 shares of newly designated Series B Convertible Preferred Stock (“Series B Preferred Stock”)
which is convertible each into 0.04 common stocks totaling 64,000 common stocks at the holder’s option (subject to shareholder