Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 91

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 Company has reserved 4,000,000 shares of the Company’s Common stock.

Income taxes

The provision for income taxes was determined
using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences
expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents
income taxes paid or payable for the current year plus the change in deferred taxes during the period. Deferred taxes result from differences
between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws
when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax
benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which
they are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized
in income in the period that includes the enactment date.

Concentrations

Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash and trade receivables. Credit risks associated with trade receivables
is minimal due to the Company’s customer base which consist of large customer base and ongoing procedures, which monitor the credit
worthiness of its customers. For the quarter ended September 30, 2025 and 2024 revenue from the top five customers accounted for approximately
56% and 61% of total revenue respectively. For the quarter ended September 30, 2025, and year ended December 31, 2024, accounts receivable
from five major customers accounted for approximately 51% and 72% of the total accounts receivables.

The Company maintains cash balances in various
financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation up to $250,000 (valid through
September 30, 2025) per institution.

As of September 30, 2025, and December 31, 2024,
the Company had $735 and $0 respectively, of uninsured cash balances. The Company has not experienced any losses in such accounts and
believes it is not exposed to any significant credit risk on cash.

13

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

3) Balance sheet schedules

3.1) Accounts