Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 609

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 609
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 amounts recorded in the accompanying condensed consolidated
financial statements are not necessarily indicative of the actual amount of such indirect expenses that would have been recorded had we
been a separate independent entity.

Reclassifications

Certain prior year amounts have been reclassified to conform to the
current year’s presentation. The reclassifications have no effect on the previously reported net loss.

Accounting policy on common control transactions

The preparation of financial statements is in conformity with GAAP,
and specifically with ASC 350 and ASC 805. As such, any assets acquired from non-arm’s length parties are recorded at their original
carrying amounts.

ASC 350-30-30-1 provides that “An intangible
asset that is acquired either individually or with a group of other assets shall be initially measured based on the guidance
included in paragraphs ASC 805-50-15-3 and ASC 805-50-30-1 through 30-4.”

Ultimately ASC 805-50-30-5 provides” When
accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets
or the equity interests shall initially measure the recognized assets and liabilities transferred at their carrying amounts
in the accounts of the transferring entity at the date of transfer. If the carrying amounts of the assets and liabilities transferred
differ from the historical cost of the parent of the entities under common control, for example, because push down accounting had
not been applied, then the financial statements of the receiving entity shall reflect the transferred assets and liabilities at the historical
cost of the parent of the entities under common control.”

Accounting Policies

Use of Estimates

The preparation of financial statements is in
conformity with GAAP which requires us to make estimates, judgments and assumptions that affect the financial statements and the notes
thereto. These estimates are based on information available as of the date of the financial statements. On a regular basis, management
evaluates these estimates and assumptions. Items subject to such estimates and assumptions include, but are not limited to:

    ●
    the standalone selling price for each distinct performance obligation

    ●
    the determination of the period of benefit for amortization of deferred costs

    ●
    the fair value of assets acquired, and liabilities assumed for business combinations.

    ●
    Share based compensation including warrants

Going Concern

The accompanying financial statements have been
prepared assuming the Company will continue as a going