Company: HCTI
Filing Date: 2025-05-08
Form Type: CORRESP
Source: 0001213900-25-041191
Chunk: 2

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-08
Form: CORRESP
Chunk 2
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 securities had been halted by Nasdaq, Damon had already received     
 a notice from Nasdaq that it was not in compliance with the MVPHS Rule and its stock price had fallen to a price below $0.01 per share.       
 In that situation, Nasdaq may have believed Damon would not be able to ever regain compliance with the MVPHS Rule. Damon’s non-compliance     
 with the MVPHS Rule was not cured by its transaction and may have been exacerbated. The Company immediately regained compliance with the      
 minimum stockholders’ equity rule as a result of the closing of the Private Placement.                                                        |

| (ii) | Prior to Damon’s transaction (the day prior to the first filing                                                                        
 of their S-1 registration statement), the closing price of Damon’s common stock was $0.1499 per share and $0.0373 per share on the     
 closing date of the transaction. The day prior to pricing of the Private Placement, the closing price of the Company’s common stock    
 was $0.51 and $0.446 per share on the closing date of the Private Placement. Therefore, the Company is better able to sustain dilution 
 than Damon’s common stock and a decline in its stock price due to the expected dilution from the issuance of the Series B Warrants     
 may not cause the level of concern that led Nasdaq to use its discretionary authority, in making a delisting determination and to halt 
 trading of Damon’ common stock.                                                                                                        |

| (iii) | Damon’s stockholders did not consent to the exercise of its zero exercise price warrants. The majority                                    
 of the Company’s stockholder’s approved the exercise of the Series A Warrants and Series B Warrants. Without a majority of                
 the Company’s stockholders approval, the Series A Warrants and Series B Warrants may not be exercised and thus Nasdaq should take         
 into consideration that dilution caused by the exercise of the Series A Warrants and Series B Warrants was previously known and consented 
 to by  a majority of those who stand to bear the majority of any adverse economic consequences of the Private Placement.                  |

| (iv) | Finally, there may have been other contributing factors unknown to                                                                       
 the concerned Company that resulted in Nasdaq’s actions against the de-listing of Damon’s common stock. Currently, the Company           
 is in compliance with all of the Nasdaq continued listing requirements other than the minimum bid price, which the Company can cure with 
 a reverse stock split even if its