Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 343

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 343
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 $ 2,676 for the period ended December 31, 2023.

10) Provision for income taxes

The Company accounts for income taxes in accordance
with FASB ASC Topic 740, Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Management evaluates
all available evidence about future taxable income and other possible sources of realization of deferred tax assets. A valuation allowance
is established to reduce deferred tax assets to an amount that represents management’s best estimate of the amount of such deferred
tax assets that more likely than not will be realized. To the extent the Company establishes a valuation allowance or increased the allowance
in any given period, an expense is recognized within the provision for income taxes in the statement of income.

The Company recognizes the tax benefit from uncertain
tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on
the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50 percent likelihood
of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters as other expense
in the statement of income. Based on management’s evaluations, there are no uncertain tax positions requiring recognition as of
the date of these financial statements.

F-24

The components of the Company’s net deferred tax assets as of
December 31, 2024, and 2023, were as follows (in thousands):

    December 31,  2024  
    December 31,  2023 

    (In thousands) 
  
    Deferred tax assets: 

    Net Operating loss carry-forward 
    $1,667  
    $2,421 
  
    Add back: 

    Stock-based compensation 
     (24) 
     (46)
  
    Depreciation and amortization 
     (249) 
     (438)
  
    Impairment expense 
     —  
     (479)
  
    Bad debt 
     (48) 
     — 
  
    Gain on revaluation 
     —  
     — 
  
    Other income 
     2  
     3 
  
    Total deferred tax asset 
     1,348  
     1,461 
  
    Less: valuation allowance