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

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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urniture and Equipment

Furniture and equipment are stated at cost. The
Company provides for depreciation of furniture and equipment using the straight-line method over the estimated useful lives of the related
assets ranging from 3 to 7 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease terms
or the useful lives of the improvements. The Company charges repairs and maintenance costs, that do not extend the lives of the assets,
to expenses as incurred.

10

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Business Combinations

As per ASC 805-50, a common-control transaction
does not meet the definition of a business combination because there is no change in control over the net assets. The accounting for
these transactions is addressed in the “Transactions Between Entities Under Common Control”. The net assets are derecognized
by the transferring entity and recognized by the receiving entity at the historical cost of the parent of the entities under common control.
Any difference between the proceeds transferred or received and the carrying amounts of the net assets is recognized in equity in the
transferring and receiving entities’ separate financial statements and eliminated in consolidation. The change in accounting principle
is applied retroactively for all periods presented.

We account for business combinations using the
acquisition method, which requires the identification of the acquirer, the determination of the acquisition date and the allocation of
the purchase price paid by the acquirer to the identifiable tangible and intangible assets acquired, the liabilities assumed, including
any contingent consideration and any noncontrolling interest in the acquiree at their acquisition date fair values.

Goodwill represents the excess of the purchase
price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible
assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs
are incurred. The results of operations of acquired businesses are included in our condensed consolidated financial statements from the
date of effective control.

Valuation of Contingent Earn-out Consideration

Acquisitions may include contingent consideration
payments based on the achievement of certain future financial performance measures of the acquired company. Contingent consideration
is required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial
projections of the acquired companies and estimated probabilities of achievement. We