Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 80

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 billed as work progresses in accordance with agreed-upon
contractual terms, generally monthly upon achievement of contractual milestones. Generally, billing occurs after revenue recognition,
resulting in contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international
contracts, before revenue is recognized, resulting in contract liabilities. These deposits are liquidated when revenue is recognized.

9

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Cash and Cash Equivalents

The Company considers all highly liquid investments
(including money market funds) with an original maturity at acquisition of three months or less to be cash equivalents. The Company maintains
cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk.

Accounts Receivable

The
Company extends credit to clients based upon the management’s assessment of their creditworthiness on an unsecured basis. The Company
provides an allowance for uncollectible accounts based on historical experience and management evaluation of trend analysis. The Company
includes any balances that are determined to be uncollectible in its allowance for doubtful accounts. For the quarter ended June 30,
2025, the Company did not provide an additional allowance for uncollectible accounts and the balance is the same as that held at the
year ended December 31, 2024, amounting to $185. Based on the information available, management believes the Company’s accounts
receivable are collectible.

    June 30, 2025  
    December 31,  2024 
  
    Accounts receivable, (net) 
    $1,862  
    $1,110 

Allowance for Doubtful Accounts

Trade accounts receivable are stated at the amount
the Company expects to collect and do not bear interest. The collectability of trade receivable balances is regularly evaluated based
on a combination of factors such as customer creditworthiness, past transaction history with the customer, current economic industry trends
and changes in customer payment pattern. Additionally, if it is determined that a customer will be unable to fully meet its financial
obligation, such as in the case of a bankruptcy filing or other material event impacting its business, a specific allowance for doubtful
accounts may be recorded to reduce the related receivable to the amount expected to be recovered.

Although we believe that our approach to significant
estimates and judgments regarding our