Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 108

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 108
---
We
    estimate the expected term using the simplified method, as we do not have sufficient historical exercise activity to develop reasonable
    expectations about future exercise patterns and post-vesting employment termination behavior. The simplified method calculates the
    average period the stock options are expected to remain outstanding as the midpoint between the vesting date and the contractual
    expiration date of the award.

    ●
    Risk-free interest rate. The
    risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for maturities corresponding with
    the expected term of the option.

    ●
    Expected dividend yield. We
    have never declared or paid any dividends and do not presently plan to pay dividends in the foreseeable future. Consequently, we
    use an expected dividend yield of zero.

We are required to estimate the fair value of
the common stock underlying our stock-based awards when performing fair value calculations

27

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Historically for all periods prior to our IPO,
given the absence of a public trading market for our common stock, and in accordance with the American Institute of Certified Public
Accountants Practice Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation, we exercised reasonable judgment
and considered numerous objective and subjective factors to determine the best estimate of the fair value of our common stock including:

    ●
    contemporaneous valuations
    performed at periodic intervals by unrelated third-party specialists

    ●
    our actual operating and
    financial performance.

    ●
    relevant precedent transactions
    involving our capital stock;

    ●
    likelihood of achieving
    a liquidity event, such as an initial public offering or a sale of our company given prevailing market conditions and the nature
    and history of our business;

    ●
    market multiples of comparable
    companies in our industry;

    ●
    stage of development.

    ●
    industry information such
    as market size and growth;

    ●
    illiquidity of stock-based
    awards involving securities in a private company; and

In valuing our common stock prior to our IPO,
our board of directors determined the enterprise value of our company using both the income approach and market approach valuation methods.
The income approach estimates value based on the expectation of future cash flows that a company will generate. These future cash flows