Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 72

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For
contracts with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative
standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer.
When not directly observable, we estimate standalone selling price by using the expected cost plus a margin approach. We establish a standalone
selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change.

10

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share
data)

Managed Services and Support

The Company has standard contracts for its Managed
Services and Support, however the statement of work contained in such contracts is unique for each customer. A typical Managed Services
and Support contract would provide for some or all of the following types of services being provided to the customer: Cloud hosting, Continuous
monitoring of applications, security and compliance and support.

Revenue from Managed services and support is a
distinct performance obligation and recognized based on SSP (standalone selling price), ratably on a straight-line basis over the period
in which the services are rendered. Contract with customers includes subcontractor services or third-party cloud infrastructure services
in certain integrated services arrangements. In these types of arrangements, revenue is recognized net of costs when the Company is acting
as an agent between the customer and the vendor, and gross when the Company is the principal for the transaction. In doing so, the Company
first evaluates whether it controls the platform or service before it is transferred to the customer. The Company considers whether it
has the primary obligation to fulfil the contract, pricing discretion and other factors to determine whether it controls the platform
or service and therefore is acting as a principal or an agent. Payment for managed services and support is due monthly.

Platform Services

The Company has standard contracts for its Platform
Services, however the statement of work contained in such contracts is unique for each customer. A typical Platform Services contract
would provide for some or all of the following types of services being provided to the customer: Data Analytics, Backup and Recovery,
through our Platform.

The revenue from Platform services is a distinct
performance obligation and recognized based on SSP. During the periods presented the Company generated revenue from Platform services
on a fixed-price solutions delivery model. Revenues related to fixed-price contracts are recognized