Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 716

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 716
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 preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Customer relationship
and platform development are amortized based on finite lives using either the straight-line method or based on estimated future cash flows
to approximate the pattern in which the economic benefit of the asset will be utilized. Management evaluates the useful lives of these
assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability
of these assets.

As of January 30, 2024, management has identified
a significant change in circumstances arising from the loss of a major customer within our wholly owned subsidiary, Devcool Inc. Historically,
this customer has accounted for approximately 45% to 50% of the Company’s business. However, recent developments have led to a substantial
reduction in transactions with the company. Based on the impairment assessment, management determined that an impairment loss of $1,710
was necessary to reflect the reduced value of the customer relationship as at December 31, 2023. This impairment loss, which is a non-recurring
expense, has been recognized in the financial statements for the reporting period ending on that date

Based on the impairment assessment, management
determined there is no impairment loss as at December 31, 2024.

Goodwill

Goodwill is the excess of the cost of an acquired
entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed.

The Company’s annual goodwill impairment
test resulted in impairment of $0 for the year ended December 31, 2024, and $0 for the year ended December 31, 2023.

F-13

Allowance for Doubtful Accounts

Trade accounts receivable is 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 estimates
and judgments regarding our allowance for doubtful accounts is reasonable, actual results could differ and we may be exposed to increases