Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 980

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 980
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 a California corporation (“Seller”), and Mr. Sandeep Deokule, current Chief Executive
Officer of Devcool (“SD”). Pursuant to the Share Purchase Agreement, the Company will acquire 5,000,000 shares of Devcool’s
Class B Common Stock, par value $0.0001, which represents all the issued and outstanding capital stock of Devcool (the “Acquisition”).
The closing of the Acquisition occurred on December 10, 2021 (the “Closing Date”). The Company exercised control by virtue
of taking over the operations from November 01, 2021 (effective date) and the financials have been consolidated from this date.

F-7

2) Summary of Significant Accounting Policies

Policies Basis of consolidated financial statements

The accompanying condensed consolidated financial
statements include the accounts of Healthcare Triangle and its wholly owned subsidiary. The condensed consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany balances
and transactions have been eliminated in consolidation.

The accompanying statements of operations include
expenses for certain functions historically performed by SecureKloud company, including general corporate services, such as legal, accounting,
treasury, information technology, human resources and administration. These expenses are based primarily on direct usage when identifiable,
direct capital expenditure or other relevant allocations during the respective periods. We believe the assumptions underlying the accompanying
condensed consolidated financial statements, including the assumptions regarding these expenses from this related party, are reasonable.
Actual results may differ from these expenses, assumptions and estimates. The amounts recorded in the accompanying condensed consolidated
financial statements are not necessarily indicative of the actual amount of such indirect expenses that would have been recorded had we
been a separate independent entity.

Reclassifications

Certain prior year amounts have been reclassified to conform to the
current year’s presentation. The reclassifications have no effect on the previously reported net loss.

Accounting policy on common control transactions

The preparation of financial statements is in conformity with GAAP,
and specifically with ASC 350 and ASC 805. As such, any assets acquired from non-arm’s length parties are recorded at their original
carrying amounts.

ASC 350-30-30-1 provides that “An intangible
asset that is acquired either individually or with a group of other assets shall be initially measured based on the guidance
included in paragraphs ASC 805-50-15-3 and ASC 805-50-30-1 through