Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 235

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 235
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Common Stock.

Series B Preferred Stock

On
October 21, 2024, the Company acquired the customer contracts from SecureKloud Technologies, Inc (a common control entity) and in consideration
for the acquired assets, issued 1,600,000 shares of Series B Convertible Preferred Stock (“Series B Preferred Stock”) which
is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval). The Company did
not record revenue during the financial year ended December 31, 2024, since the customer contracts were not in the Company’s name
and the Company is waiting for the contracts to novate in order to recognize revenue accordingly. The Series B Preferred Stock were valued
at USD 7.44 million. 

The authorized Preferred Stock as of December 31, 2024, was 8,394,000.

F-20

9) Debt Securities

A. Convertible Note

On December 28, 2023, the Company entered into
the Securities Purchase Agreement with the selling stockholder, pursuant to which the Company agreed to issue to the selling stockholder,
in a private placement (the “Private Placement”), Senior Secured 15% Original Issue Discount Convertible Promissory Notes
(the “Notes”) in the aggregate principal amount of up to $5,200,000 which will result in gross proceeds to the Company in
the amount of up to $4,420,000 due to the original issue discount, and warrants (the “Warrants”) to purchase a number of shares
of the Company’s common stock (the “Warrant Shares”) equal to 50% of the face value of the Notes divided by the volume
weighted average price, in three tranches. 

Under the first tranche of funding, which closed
upon signing of the Purchase Agreement on December 28, 2023, the Company issued a Note to the Investor in the principal amount of $2,000,000
which resulted in gross proceeds to the Company of $1,700,000 and Warrants to purchase up to an aggregate of 357,500 Warrant Shares. The
Note and Warrants issued in the first tranche of funding have an initial fixed conversion and exercise price of $3.44688 per share, subject
to adjustment. The Warrants carry a 5-year term and, if not exercised, will terminate on December 28, 2028. The Company received
the first