Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 620

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 620
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and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. Any changes in the estimated
fair value of contingent consideration may have a material impact on our operating results.

Earnings (Loss) Per Share.

Earnings per share (“EPS”) is the
amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per
share. EPS is computed pursuant to Section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10
through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average
number of common shares outstanding (the denominator) during the period. Income available to common stockholders shall be computed by
deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period
on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement)
and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased
to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued
during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement,
stock options or warrants.

F-14

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