Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 181

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 181
---
 market.

If our shares of common stock become subject to the penny stock
rules, it would become more difficult to trade our shares.

The Securities and Exchange Commission (or SEC)
has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity
securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for
quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such
securities is provided by the exchange or system. If we do not retain a listing on Nasdaq and if the price of our common stock is less
than $5.00, our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny
stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition,
the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s
written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks;
and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the
trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.

SecureKloud Technologies, Inc (“SecureKloud”)
owns approximately 45% of our common stock and will be able to exert a controlling influence over our business affairs and matters submitted
to stockholders for approval. As a result, SecureKloud has control over all matters submitted to our stockholders for approval, including
the election and removal of directors, amendments to our certificate of incorporation and bylaws, the approval of any business combination,
and any other significant corporate transaction. These actions may be taken even if they are opposed by other stockholders, including
public stockholders like you.

Sales of a significant number of shares of
our common stock in the public markets, or the perception that such sales could occur, could depress the market price of our common stock.

Sales of a substantial number of shares of our
common stock in the public markets could depress the market price of our common stock and impair our ability to raise capital through
the sale of additional