Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 91

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 Corporation’s Common Stock.

With respect to payment of dividends and distribution
of assets upon liquidation, dissolution, or winding up of the Corporation, whether voluntary 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 June 30, 2025, the total issued and outstanding
Series A Preferred Stock was 20,000.

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’s
approval), for a total consideration of $7,435. This is common control transaction, and the fair value of the assets acquired was calculated
as $7,435 which is also the carrying value of this assets. The transaction was treated as an asset acquisition and due to the common
control nature, the company recorded deemed dividend and the acquired assets at $0, which was the carrying value of the common control
seller.

18

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

10) Short Term Borrowing

    Particulars 
    June 30,