Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 111

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 111
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-37

In accordance with the terms outlined in the Security Purchase Agreement and First Tranche Note executed by the Company on December 28, 2023, the Company has commenced repayment of the convertible note. The first two installments totaling $ 250and three accelerated installments totaling $ 375were repaid on February 14, 2024 and March 02, 2024, through conversion by issuing 136,010common stocks of the Company at an average conversion price of $ 1.93per share and 205,077common stocks of the Company at an average conversion price of $ 1.92per share. As per the terms of the agreement, the Company retains the option to repay future installments either in cash or through conversion, with the conversion price determined by the lesser of the prevailing conversion price or 95% of the average of the three lowest daily VWAPs during the 20 trading days prior to the payment date.

As of January 30, 2024, management has identified a significant change in circumstances arising from the loss of a major customer within our wholly owned subsidiary, Devcool Inc. Historically, this customer has accounted for approximately 45% to 50% of the Company’s business. However, recent developments have led to a substantial reduction in transactions with the company.

Based on the impairment assessment, management determined that an impairment loss of $ 2,385was necessary to reflect the reduced value of the customer relationship as at December 31, 2023, which reflects the impact of the loss of the major customer on the Company’s financial position and results of operations. This impairment loss, which is a non-recurring expense, has been recognized in the financial statements for the reporting period ending on that date.

Changes in Registrant’s Certifying Accountant

| (a) | Dismissal of Independent Registered Public Accounting 
 Firm                                                  |

On May 3, 2024, the Audit Committee (the “Audit Committee”) of the Board of Directors of Healthcare Triangle, Inc., a Delaware corporation (or the “Company”) approved the dismissal of BF Borgers CPA PC (“BF Borgers”) as the Company’s independent registered public accounting firm in light of the Securities and Exchange Commission (SEC)’s enforcement actions against BF Borgers CPA PC.

| (b) | Appointment of Independent        
 Registered Public Accounting Firm |

On May 8, 2024, M&K CPAS, PLLC (“M&K”) was appointed as the new independent registered public