Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 107

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 107
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 in exchange for the award

These assumptions used in the Black-Scholes option pricing model, other
than the fair value of our common stock, are estimated as follows:

| ● | Expected volatility. Since a public market for our common                                                                                  
 stock did not exist prior to our IPO in July 2020 and, therefore, we do not have an extensive trading history of our common stock, we      
 estimated the expected volatility based on the volatility of similar publicly-held entities (guideline companies) over a period equivalent 
 to the expected term of the awards. In evaluating the similarity of guideline companies to us, we considered factors such as industry,     
 stage of life cycle, size, and financial leverage. We intend to continue to consistently apply this process using the same or similar      
 guideline companies to estimate the expected volatility until sufficient historical information regarding the volatility of the share      
 price of our common stock becomes available.                                                                                               |

| ● | Expected term. We estimate the expected term using the simplified                                                                          
 method, as we do not have sufficient historical exercise activity to develop reasonable expectations about future exercise patterns and    
 post-vesting employment termination behavior. The simplified method calculates the average period the stock options are expected to remain 
 outstanding as the midpoint between the vesting date and the contractual expiration date of the award.                                     |

| ● | Risk-free interest rate. The risk-free interest rate is based                                                                      
 on the U.S. Treasury yield curve in effect at the time of grant for maturities corresponding with the expected term of the option. |

| ● | Expected dividend yield. We have never declared or paid any                                                                              
 dividends and do not presently plan to pay dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero. |

F-34

We are required to estimate the fair value of the common stock
underlying our stock-based awards when performing fair value calculations Historically for all periods prior to our IPO, given the
absence of a public trading market for our common stock, and in accordance with the American Institute of Certified Public
Accountants Practice Guide, Valuation of Privately-Held Company Equity Securities Issued as Compensation, we exercised reasonable
judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of our common
stock including:

| ● | contemporaneous valuations performed at periodic intervals 
 by unrelated third-party specialists                       |

| ● | contemporaneous valuations performed at periodic intervals 
 by unrelated third-party specialists                       |

| ● | our actual operating and