Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 638

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 638
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existing taxable temporary differences and tax planning strategies. The Company’s judgment regarding future profitability may change
due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning
strategies. Should there be a change in the ability to recover deferred tax assets, the Company’s income tax provision would increase
or decrease in the period in which the assessment is changed.

F-25

11 A) New Accounting Pronouncements implemented

    I.
    ASU 2021-08—Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in an interim period. 

12) Legal Matters

The Company is not involved in any action, arbitration
and / or other legal proceedings that it expects to have a material adverse effect on the business, financial condition, results of operations
or liquidity of the Company. All legal cost is expensed as incurred.

13) Share Based Compensation

We estimate the fair value of our stock options
using the Black-Scholes option pricing model. This requires the input of subjective assumptions, including the fair value of our underlying
common stock, the expected term of stock options, the expected volatility of the price of our common stock, risk-free interest rates,
and the expected dividend yield of our common stock, the most critical of which, prior to our IPO, was the estimated fair value of common
stock. The assumptions used in our option pricing model represent our best estimates. These estimates involve inherent uncertainties and
the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense
could be materially different in the future. The resulting fair value, net of actual forfeitures, is recognized on a straight-line basis
over the period during which an employee is required to provide service in exchange for the award

These assumptions used in the Black-Scholes option pricing model, other
than the fair value of our common stock, are estimated as follows:

    ●
    Expected volatility. Since a public market for our common stock did not exist prior to our IPO in July 2020 and, therefore, we do not