Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 11

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 estimates is reflected in the financial reporting period in which the change in estimate becomes
known and any anticipated losses on contracts are recognized immediately, where appropriate.

Our contractual terms and conditions for Software
services, Managed Services and Support and Platform services mandate that our services are documented and subject to inspection, testing
at the time of delivery to customer. In addition, the Company needs to integrate seamlessly into the customers’ systems. Also, the
customer has a right to cancel all, or part of the services rendered if it is not in accordance with statement of work and within the
stipulated time. 

Contract Balances 

 The timing of revenue recognition, billings, and
cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deferred revenue
(contract liabilities) on the Condensed Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon
contractual terms, generally monthly upon achievement of contractual milestones. Generally, billing occurs after revenue recognition,
resulting in contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international
contracts, before revenue is recognized, resulting in contract liabilities. These deposits are liquidated when revenue is recognized.

9

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Cash and Cash Equivalents

The Company considers all highly liquid investments
(including money market funds) with an original maturity at acquisition of three months or less to be cash equivalents. The Company maintains
cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk.

Accounts Receivable

The
Company extends credit to clients based upon the management’s assessment of their creditworthiness on an unsecured basis. The Company
provides an allowance for uncollectible accounts based on historical experience and management evaluation of trend analysis. The Company
includes any balances that are determined to be uncollectible in its allowance for doubtful accounts. For the quarter ended June 30,
2025, the Company did not provide an additional allowance for uncollectible accounts and the balance is the same as that held at the
year ended December 31, 2024, amounting to $185. Based on the information available, management believes the Company’s accounts
receivable are collectible.

    June 30, 2025  
    December 31,