Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 737

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 737
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 the volatility of similar publicly-held entities (guideline companies) over a period equivalent to the expected term of the awards. In evaluating the similarity of guideline companies to us, we considered factors such as industry, stage of life cycle, size, and financial leverage. We intend to continue to consistently apply this process using the same or similar guideline companies to estimate the expected volatility until sufficient historical information regarding the volatility of the share price of our common stock becomes available.

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    Expected term. We estimate the expected term using the simplified method, as we do not have sufficient historical exercise activity to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The simplified method calculates the average period the stock options are expected to remain outstanding as the midpoint between the vesting date and the contractual expiration date of the award.

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    Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for maturities corresponding with the expected term of the option.

    ● Expected dividend yield. We have never declared or paid any dividends and do not presently plan to pay dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero. 

F-26

We are required to estimate the fair value of
the common stock underlying our stock-based awards when performing fair value calculations Historically for all periods prior to our IPO,
given the absence of a public trading market for our common stock, and in accordance with the American Institute of Certified Public Accountants
Practice Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation, we exercised reasonable judgment and considered
numerous objective and subjective factors to determine the best estimate of the fair value of our common stock including:

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    contemporaneous valuations performed at periodic intervals by unrelated third-party specialists

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    contemporaneous valuations performed at periodic intervals by unrelated third-party specialists

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    our actual operating and financial performance.

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    relevant precedent transactions involving our capital stock;

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    likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given prevailing market conditions and the nature and history of our business;

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    market multiples of comparable companies in our industry;

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    stage of development.

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    industry information such as market size and growth;

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    illiquidity of stock-based awards involving securities in a private company; and

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