Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 520

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 520
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, 2023. Based on the information available, management believes the Company’s
other receivable is collectible.

Property and Equipment

Property and equipment are stated at cost. The
Company provides for depreciation of property and equipment using the straight-line method over the estimated useful lives of the related
assets ranging from 3 to 7 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease terms
or the useful lives of the improvements. The Company charges repairs and maintenance costs that do not extend the lives of the assets
to expenses as incurred.

Intangible Assets

We capitalize certain costs incurred for the platform
development when it is determined that it is probable that the platform will be completed and will be used as intended. Costs related
to preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Customer relationship
and platform development are amortized based on finite lives using either the straight-line method or based on estimated future cash flows
to approximate the pattern in which the economic benefit of the asset will be utilized. Management evaluates the useful lives of these
assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability
of these assets.

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 $1,710
was necessary to reflect the reduced value of the customer relationship as at December 31, 2023. This impairment loss, which is a non-recurring
expense, has been recognized in the financial statements for the reporting period ending on that date

Based on the impairment assessment, management
determined there is no impairment loss as at December 31, 2024.

Goodwill

Goodwill is the excess of the cost of an acquired
entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed.

The Company’s annual goodwill impairment
test resulted in impairment of $0 for the year ended December 31, 2024, and $0 for the year ended December 31, 2023.

F-13

Allowance for Doubtful Accounts

Trade accounts