Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 45

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 certain third-party
consulting fees. Our research and development expense excludes any depreciation and amortization.

We expect to continue our focus on developing
new product offerings and enhancing our existing product offerings. As a result, we expect our future research and development expense
to increase in absolute dollars, although it may vary from period to period as a percentage of revenue.

35

Sales and Marketing

Sales and marketing expense consists primarily
of employee-related expenses, including salaries, benefits, commissions, travel, discretionary incentive compensation, employment taxes,
severance, and equity compensation costs for our employees engaged in sales, sales support, business development, and marketing. Sales
and marketing expense also includes operating expenses for marketing programs, research, trade shows, and brand messages, and public
relations costs.

We expect our future sales and marketing expenses
to continue to increase in absolute dollar terms as we strategically invest to expand our business, although it may vary from period
to period as a percentage of total revenues.

General and Administrative

Our general and administrative expenses consist
primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance,
and stock-based compensation expenses, for employees who are responsible for management information systems, administration, human resources,
finance, legal, and executive management. The general and administrative expenses also include occupancy expenses (including rent, utilities,
and facilities maintenance), professional fees, consulting fees, insurance, travel, contingent consideration, transaction costs, integration
costs, and other expenses. Our general and administrative expenses exclude depreciation and amortization.

In the nearest future, we expect our general
and administrative expenses to continue to increase to support business growth. Over the long term, we expect general and administrative
expenses to decrease as a percentage of revenue.

Depreciation and Amortization Expenses

Our depreciation and amortization expense consists
primarily of depreciation of fixed assets, amortization of customer relationship and capitalized software development costs, and amortization
of intangible assets. We expect our depreciation and amortization expense to increase as we continue to invest and expand our business
organically and through acquisitions. 

Other Income (Expense), Net

Other income (expense), net consists of finance
cost and gains or losses on foreign currency.

Deferred Revenues

Advanced billings to clients in excess of revenue
earned are recorded as deferred revenue until the revenue recognition criteria are met.

36

Results of Operations

The following tables set forth selected consolidated
statements of operations data and such data as a percentage of total revenues