Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 30

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 based on the U.S. Treasury yield curve in effect at the time of grant for maturities corresponding with the expected term of the option.

   ● Expected dividend yield. We have never declared or paid any dividends and do not presently plan to pay dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero. 

23

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

We are required to estimate the fair value of
the common stock underlying our stock-based awards when performing fair value calculations

Historically for all periods prior to our IPO,
given the absence of a public trading market for our common stock, and in accordance with the American Institute of Certified Public Accountants
Practice Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation, we exercised reasonable judgment and considered
numerous objective and subjective factors to determine the best estimate of the fair value of our common stock including:

    ●
    contemporaneous valuations performed at periodic intervals by unrelated third-party specialists

    ●
    our actual operating and financial performance.

    ●
    relevant precedent transactions involving our capital stock;

    ●
    likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given prevailing market conditions and the nature and history of our business;

    ●
    market multiples of comparable companies in our industry;

    ●
    stage of development.

    ●
    industry information such as market size and growth;

    ●
    illiquidity of stock-based awards involving securities in a private company; and

In valuing our common stock prior to our IPO,
our board of directors determined the enterprise value of our company using both the income approach and market approach valuation methods.
The income approach estimates value based on the expectation of future cash flows that a company will generate. These future cash flows
are discounted to their present values using a discount rate based on the cost of capital at a company’s stage of development. The
market approach estimates value based on a comparison of the subject company to comparable public companies in a similar line of business.
From the comparable companies, a representative market value multiple is determined and then applied to the subject company’s financial
results to estimate the enterprise value of the subject company.

A summary of option activity under the employee
share option plan as of March 31, 2025, and changes during the year then period is presented below.

Schedule