Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 74

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 is held in an escrow account with Sichenzia
Ross Ference Carmel LLP (SRFC). The funds will be released upon making the S-1 effective no later than 75 days of filing of the 10-K for fiscal 2024.

Accounts Receivable

The Company extends credit to clients based upon
the management’s assessment of their creditworthiness on an unsecured basis. The Company provides an allowance for uncollectible
accounts based on historical experience and management evaluation of trend analysis. The Company includes any balances that are determined
to be uncollectible in its allowance for doubtful accounts. For the quarter ended March 31, 2025, the Company did not provide an allowance
for uncollectible accounts and for the year ended December 31, 2024, the Company provided an allowance for uncollectible accounts of $185.
Based on the information available, management believes the Company’s accounts receivable are collectible.

Property and Equipment

Property and equipment are stated at cost. The
Company provides for depreciation of property and equipment using the straight-line method over the estimated useful lives of the related
assets ranging from 3 to 7 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease terms
or the useful lives of the improvements. The Company charges repairs and maintenance costs that do not extend the lives of the assets
to expenses as incurred.

12

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Allowance for Doubtful Accounts

Trade accounts receivable are stated at the amount
the Company expects to collect and do not bear interest. The collectability of trade receivable balances is regularly evaluated based
on a combination of factors such as customer creditworthiness, past transaction history with the customer, current economic industry trends
and changes in customer payment pattern. Additionally, if it is determined that a customer will be unable to fully meet its financial
obligation, such as in the case of a bankruptcy filing or other material event impacting its business, a specific allowance for doubtful
accounts may be recorded to reduce the related receivable to the amount expected to be recovered.

Although we believe that our approach to estimates
and judgments regarding our allowance for doubtful accounts is reasonable, actual results could differ and we may be exposed to increases
or decreases in required allowances that could be material.

Business Combinations

As per ASC 805