Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 27

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 authorities, based on
the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50 percent likelihood
of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income tax matters as other expense
in the statement of income. Based on management’s evaluations, there are no uncertain tax positions requiring recognition as of
the date of these financial statements.

21

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

The components of the Company’s net deferred
tax assets as of March 31, 2025, and December 31, 2024, were as follows (in thousands):

    March 31,  2025  
    December 31,  2024 

    (In thousands) 
  
    Deferred tax assets: 

    Net Operating loss carry-forward 
    $476  
    $1,439 
  
    Add back: 

    Stock-based compensation 
     (10) 
     (30)
  
    Depreciation and amortization 
     3  
     (249)
  
    Impairment expense 
     -  
     — 
  
    Bad debt 
     -  
     (48)
  
    Fair value of warrant 
     -  
     (43)
  
    Gain on revaluation 
        
     — 
  
    Other income 
     31  
     - 
  
    Total deferred tax asset 
     500  
     1,069 
  
    Less: valuation allowance 
    $(500) 
    $(1,069)
  
    Deferred tax asset. net of valuation allowance 
     —  
     — 
  
    Deferred tax liabilities 
     —  
     — 
  
    Net deferred tax asset 
     —  
     — 

The Company’s current tax expense is nil.

The Company’s federal and state income tax
returns are generally subject to possible examination by the taxing authorities until the expiration of the related statute of limitations
on those tax returns which is generally three years from the original filing deadline. The Company regularly reviews its deferred tax
assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of
existing taxable temporary differences and tax planning strategies. The Company’s