Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 797

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 797
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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated
below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way
our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing
separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition

As discussed in the notes to the financial statements,
the Company recognizes revenue upon transfer of control of promised services to customers in an amount that reflects the consideration
the Company expects to receive in exchange for those products or services.

Auditing management’s evaluation of agreements with customers
involves significant judgement, given the fact that some agreements require management’s evaluation and allocation of the standalone
transaction prices to the performance obligation.

To evaluate the appropriateness and accuracy of the assessment
by management, we evaluated management’s assessment in relationship to the relevant agreements.

The procedures performed included
evaluation of the methods and assumptions used by the Company, tests of the data used and an evaluation of the findings. We evaluated
and tested the Company’s significant judgments that determine the impairment evaluation of intangible assets.

/s/ M&K CPAS, PLLC

We have served as the Company’s auditor since 2024.

The Woodlands, TX

March 31, 2025

F-2

HEALTHCARE TRIANGLE INC

Consolidated Balance Sheets

    December 31, 

    2024  
    2023 

    (In thousands) 
  
    Assets 

    Current assets 

    Cash and cash equivalents 
    $20  
    $1,234 
  
    Accounts receivable 
     1,110  
     3,595 
  
    Other current assets 
     322  
     824 
  
    Total current assets 
     1,452  
     5,653 
  
    Property and equipment, net 
     12  
     44 
  
    Intangible assets, net 
     -  
     857 
  
    Due from affiliates 
     497