Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 10

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 customers to perform (i) Strategic advisory services which include assessment of the enterprise network, applications environment
and advise on the design and tools; (ii) Implementation services which include deployment, upgrades, enhancements, migration, training,
documentation and maintenance of various electronic health record systems; and (iii) Development services which include customization
of network and applications in the public cloud environment.

Revenue from Strategic Advisory, Implementation
and Development Services comprise of distinct performance obligations, and is recognized on time-and-material or fixed-price project
basis. Revenue related to time-and-material is recognized over the period the services are provided using labor hours. Revenue related
to fixed-price contracts is recognized as the service is performed using the cost-to-cost method, under which the total value of revenue
is recognized based on the percentage that each contract’s total labor cost to date bears to the total expected labor costs. The
cost-to-cost method requires estimation of future costs, which is updated as the project progresses to reflect the latest available information;
such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected
in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized
immediately, where appropriate.

We may enter into contracts that consist of multiple
performance obligations. Such contracts may include any combination of our deliverables. To the extent a contract includes multiple promised
deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context
of the contract. 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.

8

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