Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 146

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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Our Business Model 

The majority of our revenue is generated by our
full-time employees who provide Software Services and Managed Services and Support to our clients in the Healthcare and Life Sciences
industry. Our Software Services include strategic advisory, implementation and development services, and Managed Services and Support
include post implementation support and cloud hosting.

Key Factors of Success

We believe that our future growth, success, and
performance are dependent on many factors, including those mentioned below. While these factors present significant opportunities for
us, they also represent the challenges that we must successfully address in order to grow our business and improve our results of operations.

Investment in scaling the business 

We need to continuously invest in sales, and marketing
to promote our solutions to new and existing customers in various geographies, and other operational and administrative functions in systems,
controls and governance to support our expected growth and our transition to a public company. We anticipate that our employee strength
will increase over time because of such investments.

On June 16, 2025, Healthcare Triangle, Inc. through
its wholly owned subsidiary Quantum Nexus Inc. (the “Company”) and Niyama Healthcare, Inc., a Delaware corporation, a provider
of Mental Health and Hospital Information Systems technology, across India, South East Asia, and Europe (the “Seller”) entered
into an Asset Transfer Agreement (the “Agreement”). Pursuant to the Agreement, the Company agreed to purchase from the Seller
the Transferred Assets (as defined below), and (ii) the Seller’s 100% shareholder equity interest in Ezovion Solutions Private Limited,
Chennai, India - Hospital Information Systems SaaS Provider as Seller’s Equity (the “Transferred Equity”), as a whole
and as a going concern in exchange for the Purchase Price (as defined below). The acquisition closed on June 16, 2025.

The total consideration for the acquisition, which
is referred to herein as the “Purchase Price” is $5.7 million which includes: (1) $1.5 million in cash, of which $1.2 million
is due on the Closing Date and $300,000 to be paid at the later of the satisfaction of certain withholding requirements or within 120
days of the Closing Date; during the quarter ended June 30, 2025, the Company made a payment of $0.6 million out of the $1.5 million obligation.
The remaining balance of $0.9 million is recognized as payable as at June 30,