Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 907

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 907
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 measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided.

Software Services

The Company enters into contractual obligations
with the customers to perform (i) Strategic advisory services which include assessment of the enterprise network, applications environment
and advise on the design and tools; (ii) Implementation services which include deployment, upgrades, enhancements, migration, training,
documentation and maintenance of various electronic health record systems and (iii) Development services which include customization of
network and applications in the public cloud environment.

Revenue from Strategic advisory, Implementation
and Development services are distinct performance obligation and is recognized on time-and-material or fixed-price project basis. Revenues
related to time-and-material are recognized over the period the services are provided using labor hours. Revenues related to fixed-price
contracts are recognized as the service is performed using the cost-to-cost method, under which the total value of revenues is recognized
based on the percentage that each contract’s total labor cost to date bears to the total expected labor costs. The cost-to-cost
method requires estimation of future costs, which is updated as the project progresses to reflect the latest available information; such
estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the
financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately,
where appropriate.

We may enter into contracts that consist of multiple
performance obligations. Such contracts may include any combination of our deliverables. To the extent a contract includes multiple promised
deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context
of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For
contracts with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative
standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer.
When not directly observable, we estimate standalone selling price by using the expected cost plus a margin approach. We establish a standalone
selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change.

F-11

Managed Services and Support

The Company has standard contracts for its Managed
Services and Support, however the statement of work contained in such contracts is unique for each customer. A typical Managed Services
and Support contract would provide for some or all