Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 42

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 requirements or within 120
days of the Closing Date; during the quarter ended June 30, 2025, the Company made a payment of $0.6 million out of the $1.5 million obligation.
The remaining balance of $0.9 million is recognized as payable as at June 30, 2025. (2) 1,388,041 shares of restricted common stock of
the Company equal to $3,000,000 divided by $2.16, issued on the Closing Date; and (3) up to $1.2 million in earn-out payments contingent
on first-year financial performance targets to be agreed upon within 90 days of the Closing Date.

The final determination of the fair values, purchase
consideration, related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period
of up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during
the measurement period will be recorded in the reporting period in which the adjustment is determined.

Adoption of our solutions by new and existing
customers 

We believe that our ability to increase our customer
base will enable us to drive growth. Most of our customers initially deploy our solutions within a division or geography and may only
initially deploy a limited set of our available solutions. Our future growth is dependent upon our existing customers’ continued
success and renewals of our solutions agreements, deployment of our solutions to additional divisions or geographies and the purchase
of subscriptions to additional solutions. Our growth is also dependent on the adoption of our solutions by new customers. Our customers
are large organizations who typically have long procurement cycles which may lead to declines in the pace of our new customer additions.

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Subscription services adoption 

The key factor to our success in generating substantial
recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our Software
as a Service (“SaaS”) offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI,
and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription
revenue from these offerings will have a material impact on our revenue growth.

Mix of solutions and software services revenues

Another factor to our success is the ability to
sell our solutions to the existing software services customers. During the initial period of deployment by a customer, we generally provide
a