Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 719

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 719
---
 the investments are valued using model driven
valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative
pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment
prices from a third-party pricing provider that incorporates standard inputs in various asset price models. In connection with the acquisition
of Devcool, Inc., the Company recognized a liability on the acquisition date for the estimated fair value of the contingent consideration
based on the probability of achieving certain milestones pursuant to the acquisition agreement. The fair value measurement of the contingent
consideration is based on significant unobservable inputs and management judgment; therefore, it is categorized under Level 3 at the balance
sheet date in the table below.

    December 31, 2024 

    Fair Value Measured Using 

    (In thousands) 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liabilities 
     —  
     —  
    $—  
    $— 
  
    Acquisition-related contingent consideration 
     —  
     —  
    $500  
    $500 

    December 31, 2023 

    Fair Value Measured Using 

    (In thousands) 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liabilities 
     -  
     -  
    $-  
    $- 
  
    Acquisition-related contingent consideration 
     —  
     —  
    $500  
    $500 

Stock-Based Compensation

The Company accounts for stock-based awards to
employees and consultants in accordance with applicable accounting principles, which requires compensation expense related to share-based
transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of
the fair value of the stock options over the instruments vesting period. Options awarded to purchase shares of common stock issued to
non-employees do not need to be remeasured as per ASU 2018-07 principles.

The Company adopted the “2020 Stock Incentive Plan” (Plan).
The Company has reserved 861,764 shares of the Company’s Common stock.

F-15

Income taxes

The provision for income