Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 91

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 91
---
 arrangement, stock options or warrants. F-22

Fair Value Measurements

The Company measures its financial assets at fair
value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable
inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level
3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are observable and reflect
quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level
1 that are observable, either directly or indirectly.

Level 3—Inputs that are unobservable

Money market funds and U.S. treasury securities
are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market
observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven
valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative
pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment
prices from a third-party pricing provider that incorporates standard inputs in various asset price models. In connection with the acquisition
of Devcool, Inc., the Company recognized a liability on the acquisition date for the estimated fair value of the contingent consideration
based on the probability of achieving certain milestones pursuant to the acquisition agreement.

|                                              |     | December 31, 2023         |   |     |         |   |     |         |     |     |       |     |
|:---------------------------------------------|:----|:--------------------------|:--|:----|:--------|:--|:----|:--------|----:|:----|:------|----:|
|                                              |     | Fair Value Measured Using |   |     |         |   |     |         |     |     |       |     |
|                                              |     | -In thousands             |   |     |         |   |     |         |     |     |       |     |
|                                              |     | Level 1                   |   |     | Level 2 |   |     | Level 3 |     |     | Total