Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 294

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 294
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 Expenses

Research and development

Research and development expense (majorly our
investment in innovation) consists primarily of employee-related expenses, including salaries, benefits, incentives, employment taxes,
severance, and equity compensation costs for our software developers, engineers, analysts, project managers, and other employees engaged
in the development and enhancement of our cloud-based platform applications. Research and development expenses also include certain third-party
consulting fees. Our research and development expense excludes any depreciation and amortization.

We expect to continue our focus on developing
new product offerings and enhancing our existing product offerings. As a result, we expect our research and development expense to increase
in absolute dollars, although it may vary from period to period as a percentage of revenue.

Sales and marketing

Sales and marketing expense consists primarily
of employee-related expenses, including salaries, benefits, commissions, travel, discretionary incentive compensation, employment taxes,
severance, and equity compensation costs for our employees engaged in sales, sales support, business development, and marketing. Sales
and marketing expense also includes operating expenses for marketing programs, research, trade shows, and brand messages, and public relations
costs.

We expect our sales and marketing expenses to
continue to increase in absolute dollar terms as we strategically invest to expand our business, although it may vary from period to period
as a percentage of total revenues.

General and administrative

Our general and administrative expenses consist
primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance,
and stock-based compensation expenses, for employees who are responsible for management information systems, administration, human resources,
finance, legal, and executive management. The general and administrative expenses also include 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 expand our business organically and through
acquisitions.

Other income (expense), Net

Other income (