Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 111

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during
the measurement period will be recorded in the reporting period in which the adjustment is determined.

Adoption of our solutions by new and existing
customers 

We believe that our ability to increase our customer
base will enable us to drive growth. Most of our customers initially deploy our solutions within a division or geography and may only
initially deploy a limited set of our available solutions. Our future growth is dependent upon our existing customers’ continued
success and renewals of our solutions agreements, deployment of our solutions to additional divisions or geographies and the purchase
of subscriptions to additional solutions. Our growth is also dependent on the adoption of our solutions by new customers. Our customers
are large organizations who typically have long procurement cycles which may lead to declines in the pace of our new customer additions.

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Subscription services adoption 

The key factor to our success in generating substantial
recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our Software
as a Service (“SaaS”) offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI,
and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription
revenue from these offerings will have a material impact on our revenue growth.

Mix of solutions and software services revenues

Another factor to our success is the ability to
sell our solutions to the existing software services customers. During the initial period of deployment by a customer, we generally provide
a greater number of services including advisory, implementation and training. At the same time, many of our customers have historically
purchased our solutions after the deployment. Hence, the proportion of total revenues for a customer associated with software services
is relatively high during the initial deployment period. While our software services help our customers achieve measurable improvements
and make them stickier, they have lower gross margins than solution-based revenue. Over time, we expect the revenues to shift towards
recurring and subscription-based revenues.

Components of Results of Operations

Revenues

We provide our services and manage our business under these operating
segments:

●Software
services

●Managed
services and support

●Platform
services

Software Services 

The Company earns revenue primarily through the
sale of software services that is generated from providing strategic advisory, implementation, and development services. The Company enters
into Statement of Work (S