Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 112

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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OW) which provides for service obligations that need to be fulfilled as agreed with the customer. The majority
of our software services arrangements are billed on a time and materials basis, and revenues are recognized over time based on time incurred
and contractually agreed upon rates. Certain software services revenues are billed on a fixed fee basis and revenues are typically recognized
over time as the services are delivered based on time incurred and customer acceptance. We recognize revenue when we have the right to
invoice the customer using the allowable practical expedient under ASC 606-10-55-18 since the right to invoice the customer corresponds
with the performance obligations completed.

33

Managed Services and Support 

Managed Services and Support include post implementation
support and cloud hosting. Managed Services and Support are a distinct performance obligation. Revenue for Managed Services and Support
is recognized ratably over the life of the contract.

Platform Services 

Platform Services from CloudEz, DataEz are offered
both as a solution delivery model and as SaaS on a subscription model, whereas Readbl.ai is offered only as SaaS, on a subscription model.

The revenue from solutions delivery model contains
a series of separately identifiable and distinct services that represent performance obligations which are satisfied over time. During
the periods presented, the company generated Platform revenue on SaaS, which is recurring revenue.

Our SaaS agreements are generally non-cancellable
during the term, although customers typically will have the right to terminate their agreements for cause in the event of material breach.

SaaS revenues will be recognized ratably over
the respective non-cancellable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements
will be considered service contracts, and the customer will not have the right to take possession of the software. Segment wise revenue
breakup.

Cost of Revenue

Cost of revenue consists primarily of employee-related
costs associated with the rendering of our services, including salaries, benefits and stock-based compensation expense, the cost of subcontractors,
travel costs, cloud hosting charges and allocated overhead the cost of providing professional services is significantly higher as a percentage
of the related revenues than for our subscription services due to the direct labor costs and costs of subcontractors. Our business and
operational models are designed to be highly scalable and leverage variable costs to support revenue-generating activities. 

While we may grow our headcount overtime to capitalize
on our market opportunities, we believe our increased investment in automation, electronic health record integration capabilities, and
economies of scale in