Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 151

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 151
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 our business.

SecureKloud’s control could prevent us
from obtaining essential services at lower rates and if SecureKloud ceases to provide us with services our business could suffer.

SecureKloud provides us with essential services,
including software development, infrastructure development, sales support, recruitment and immigration support, project coordination,
human resources and operation support and management/advisory services. Although we pay SecureKloud for these services at what we believe
are market rates and were negotiated in good faith on an arms-length basis, if we became aware in the future of third parties that could
provide such services on terms more favorable than SecureKloud, SecureKloud’s control over our Board and our Company could prevent
us from obtaining these services on more favorable terms from such third parties or renegotiating the terms with SecureKloud. Also, if
SecureKloud was no longer able to provide us these services, we may be forced to obtain them from third parties on terms that are less
favorable. If we are prevented by SecureKloud in the future from paying third parties less for services currently provided by SecureKloud
or if SecureKloud is unable to provide us services it now provides, such events could have a material adverse effect on our business and
financial condition.

As a “controlled company” under
the Nasdaq Marketplace Rules, we may choose to exempt our Company from certain corporate governance requirements that could have an adverse
effect on our public stockholders.

Under Rule 4350(c) of the Nasdaq Marketplace Rules,
a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company”
and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of our directors
be independent, as defined in Nasdaq rules and the requirement that our compensation and nominating and corporate governance committees
consist entirely of independent directors. Although we do not intend to rely on the “controlled company” exemption under Nasdaq
rules, we could elect to rely on this exemption in the future. If we elect to rely on the “controlled company” exemption,
a majority of the members of our Board might not be independent directors and our nominating and corporate governance and compensation
committees might not consist entirely of independent directors. Accordingly, during any time while we remain a controlled company relying
on the exemption and during any transition period following a time when we are no longer a controlled company, you would not have the
same protections afforded