Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 27

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 assets. A valuation allowance
is established to reduced 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.

22

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

The components of the Company’s net deferred
tax assets as of June 30, 2025, and December 31, 2024, were as follows (in thousands):

    June 30,  2025  
    December 31,  2024 

    Deferred tax assets: 

    Net operating loss carry-forward 
    $859  
    $1,667 
  
    Add back: 

    Stock-based compensation 
     (10) 
     (24)
  
    Depreciation and amortization 
     3  
     (249)
  
    Bad debt 
     —  
     (48)
  
    Other income 
     35  
     2 
  
    Total deferred tax asset 
     887  
     1,348 
  
    Less: valuation allowance 
    $(887) 
    $(1,348)
  
    Deferred tax asset, net of valuation allowance 
     —  
     — 
  
    Deferred tax liabilities 
     —  
     — 
  
    Net deferred tax asset 
     —  
     — 

The Company’s current tax expense is nil.

The Company’s federal and state income tax
returns are generally subject to possible examination by the taxing authorities until the expiration of the related statute of limitations
on those tax returns which is generally three