Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 107

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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-  
     -  
     - 
  
    Income after income taxes 
     (691) 
     (493) 
     (678) 
     (1,862)

36

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 March 31, 2025 financial statement is 3 compared to 0.7 for the financial year ended December 31, 2024.

The Company’s current debt equity ratio,
based on the three months ended March 31, 2025 financial statement is .37, compared to (1.38) for the quarter ended December 31, 2024.

The Company does not have inventory and hence
the quick ratio is the same as current ratio.

Sources of Liquidity

As of March 31, 2025, our principal sources of
liquidity consisted of cash and cash equivalents of $6.8 million. We believe that the future operating cash flows of the entity will provide
adequate resources to fund ongoing cash requirements.

    As of 
March 31,
2025

    As of 
March 31, 2024

    (In thousands)

    Cash and cash equivalents
     
    $
    6,826

    $
    301

    Short-term investments

    —

    —

    Total cash, cash equivalents and short-term investments
     
    $
    6,826

    $
    301

As of March 31, 2025, our principal sources of
liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $6.8 million.

We have financed our operations primarily through
financing activity and operating cash flows. We believe our existing cash, cash equivalents and short-term investments generated from
operations will be sufficient to meet our working capital over the next 12 months. Our future capital requirements will depend on many
factors including our growth rate, subscription renewal activity, the expansion of sales and marketing activities and the ongoing investments