Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 52

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 $(1,508)

40

Due from Affiliates 

On January 1, 2025, the Company entered into a
Master Service Agreement with Securekloud Technologies Inc. (“SKI”) and Securekloud Technologies Limited (“SKL). The initial
term of the agreement is twenty-four months, which is extendable based on mutual consent. As per the Master Services Agreement, SKI and
SKL provide technical resources according to the statement of work from the Company. The Company received services amounting to $1,025
and $755 for the quarter ended June 30, 2025, and 2024 respectively and $2,020 and $1,568 for the six months ended June 30, 2025 and 2024
respectively, while the Company made advance payments amounting to $4,843 during the six months ended June 30, 2025. As at June 30, 2025,
the due from affiliates balance of $3,320 represents advance payments to the affiliates which is expected to be settled within six months
from the balance sheet date. 

On January 1, 2025, the Company entered into a
Rental Sublease Agreement with Securekloud Technologies Inc. (“SKI”), The initial term of the agreement between SKI and the
principal lessor is twenty-four months, which is extendable based on mutual consent. As per the terms of the Rental Sublease Agreement,
the cost incurred by SKI on behalf of the Company are settled at cost. The Company paid rental expenses amounting to $15 and $34 for the
quarter ended June 30, 2025, and 2024 respectively and $59 and $67 for the six months ended June 30, 2025 and 2024 respectively.

Liquidity and Capital Resources

Liquidity

The current ratio measures a company’s ability
to pay off its current liabilities (payable within one year) with its total current assets such as cash, accounts receivable, and inventories.
The higher the ratio, the better the company’s liquidity position. A good current ratio is between 1.2 to 2, which means that a
business has 2 times more current assets than liabilities to covers its debts. The Company’s current ratio, based on the three months
ended June 30, 2025 financial statement is 1.75 compared to 0.7 for the financial year ended December 31,