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

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 following types of services being provided to the customer: Cloud Hosting,
Continuous Monitoring of Applications, Security and Compliance, and Support.

Revenue from Managed Services and Support is
a distinct performance obligation and recognized based on SSP (standalone selling price), ratably on a straight-line basis over the period
in which the services are rendered. Contract with customers includes subcontractor services or third-party cloud infrastructure services
in certain integrated services arrangements. In these types of arrangements, revenue is recognized net of costs when the Company is acting
as an agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company
first evaluates whether it controls the platform or service before it is transferred to the customer. The Company considers whether it
has the primary obligation to fulfil the contract, pricing discretion and other factors to determine whether it controls the platform
or service and therefore is acting as a principal or an agent. Payment for managed services and support is due 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