Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 114

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 occupancy expenses (including rent, utilities,
and facilities maintenance), professional fees, consulting fees, insurance, travel, contingent consideration, transaction costs, integration
costs, and other expenses. Our general and administrative expenses exclude depreciation and amortization.

In the nearest future, we expect our general and
administrative expenses to continue to increase to support business growth. Over the long term, we expect general and administrative expenses
to decrease as a percentage of revenue.

Depreciation and Amortization Expenses

Our depreciation and amortization expense consists
primarily of depreciation of fixed assets, amortization of customer relationship and capitalized software development costs, and amortization
of intangible assets. We expect our depreciation and amortization expense to increase as we continue to invest and expand our business
organically and through acquisitions. 

Other Income (Expense), Net

Other income (expense), net consists of finance
cost and gains or losses on foreign currency.

Deferred Revenues

Advanced billings to clients in excess of revenue
earned are recorded as deferred revenue until the revenue recognition criteria are met.

Unbilled Accounts Receivable

Unbilled accounts receivable is a contract asset
related to the delivery of our professional services for which the related billings will occur in a future period. Unbilled receivables
are classified as accounts receivable on the consolidated balance sheet. Although we believe that our approach to estimates and judgments
regarding revenue recognition is reasonable, actual results could differ and we may be exposed to increases or decreases in revenue that
could be material.

35

Provision for Income Taxes

Provision for income taxes consists of federal
and state income taxes in the United States, including deferred income taxes reflecting the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes.

Results of Operations

The following tables set forth selected consolidated
statements of operations data and such data as a percentage of total revenues for each of the periods indicated:

    Three Months Ended  June 30, 

    2025  
    % Sales  
    2024  
    % Sales 

    Revenue 
    $3,558  
     100% 
    $2,984  
     100%
  
    Cost of revenue (exclusive of depreciation /amortization) 
     3,064  
     86% 
     2,086  
     70%
  
    Research and development 
     55  
     2%