Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 1028

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1028
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 in enabling cloud transformation
for global enterprises, SecureKloud Technologies Inc is building on foundation of cloud capabilities by creating innovative platforms
that are time-tested and designed to drive success in its digital transformation journey. HTI uses the capabilities and resources of SecureKloud
for the execution of projects for its customers.

On October 21, 2024, the Healthcare Triangle,
Inc acquired substantially all of the business, assets, and operations relating to cloud and technology domain of SecureKloud Technologies,
Inc a Nevada corporation. The Acquired Assets were acquired by Healthcare Triangle, Inc under an Asset Transfer Agreement, dated October
21, 2024.

The consideration for the Acquired Assets consisted
of the issuance of 1,600,000 shares of newly designated Series B Convertible Preferred Stock (“Series B Preferred Stock”)
which is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval), for a total
consideration of at $4.50 per share of Series B Preferred Stock valuing the transferred assets at USD 7.20 million.

This is common control transaction, and the fair
value of the assets acquired were calculated as $7,435. The transaction was treated as an asset acquisition and due to the common control
nature, the company recorded deemed dividend and the acquired assets at $0, which was the carrying value of the common control seller.

SecureKloud Technologies Inc owns 45% of Healthcare Triangle Inc as
of December 31, 2024.

The Company entered into a Master Service Agreement,
Shared Services Agreement and Rental Sublease Agreement with SecureKloud Technologies Inc. As per the Master Services Agreement, SecureKloud
provides technical resources according to the statement of work from the Company. The initial term of the agreement is twenty-four months,
which is extendable based on mutual consent. SecureKloud charges for the services at cost. The Company received services amounting to
$3,139 and $5,445 for the year ended December 31, 2024, and 2023 respectively. The Company has paid for these services during the year.

As per the terms of the Shared Services and Rental
Sublease Agreement, the cost incurred by SecureKloud on behalf of the Company is settled at cost. The Shared Services Agreement includes
Development infrastructure, Sales support, Recruitment and Immigration support, Project coordination, HR and Operation support, Management
/Advisory services. The Company received services amounting to $335 and $