Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 98

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 98
---
 to payment of dividends and distribution
of assets upon liquidation, dissolution, or winding up of the Corporation, whether voluntary or involuntary, the Series B Convertible
Preferred Stock will rank: (i) senior to all other classes or series of capital stock of the Corporation now existing or hereafter authorized,
classified or reclassified, and (ii) junior to all Indebtedness of the Corporation now existing or hereafter authorized (including Indebtedness
convertible into Common Stock).

The holders of the Series B Convertible Preferred
Stock shall not be entitled to receive dividends paid on the Corporation's Common Stock.

Series B Preferred Stock

On
October 21, 2024, the Company acquired the customer contracts from SecureKloud Technologies, Inc (a common control entity) and in consideration
for the acquired assets, issued 1,600,000 shares of Series B Convertible Preferred Stock (“Series B Preferred Stock”) which
is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval). The Company did
not record revenue during the financial year ended December 31, 2024, since the customer contracts were not in the Company’s name
and the Company is waiting for the contracts to novate in order to recognize revenue accordingly. The Series B Preferred Stock were valued
at USD 7.44 million. 

The authorized Preferred Stock as of December 31, 2024, was 8,394,000.

F-20

9) Debt Securities

A. Convertible Note

On December 28, 2023, the Company entered into
the Securities Purchase Agreement with the selling stockholder, pursuant to which the Company agreed to issue to the selling stockholder,
in a private placement (the “Private Placement”), Senior Secured 15% Original Issue Discount Convertible Promissory Notes
(the “Notes”) in the aggregate principal amount of up to $5,200,000 which will result in gross proceeds to the Company in
the amount of up to $4,420,000 due to the original issue discount, and warrants (the “Warrants”) to purchase a number of shares
of the Company’s common stock (the “Warrant Shares”) equal to 50% of the face value of the Notes divided by the volume
weighted average price, in three tranches. 

Under the first tranche of funding, which closed
upon signing of the Purchase Agreement on December 28,