Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 324

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 324
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 thousands) 
  
    Accounts receivable 
    $1,110  
    $3,595 

Cash and Cash Equivalents

The Company considers all highly liquid investments
(including money market funds) with an original maturity at acquisition of three months or less to be cash equivalents. The Company maintains
cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk.

Accounts Receivable

The Company extends credit to clients based upon
management’s assessment of their creditworthiness on an unsecured basis. The Company provides an allowance for uncollectible accounts
based on historical experience and management evaluation of trend analysis. The Company includes any balances that are determined to be
uncollectible in its allowance for doubtful accounts. For the year ended December 31, 2024, Company has provided allowance for uncollectible
accounts for a value of $170 and $0 for the year end December 31, 2023. Based on the information available, management believes the Company’s
other receivable is collectible.

Property and Equipment

Property and equipment are stated at cost. The
Company provides for depreciation of property 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.

Intangible Assets

We capitalize certain costs incurred for the platform
development when it is determined that it is probable that the platform will be completed and will be used as intended. Costs related
to preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Customer relationship
and platform development are amortized based on finite lives using either the straight-line method or based on estimated future cash flows
to approximate the pattern in which the economic benefit of the asset will be utilized. Management evaluates the useful lives of these
assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability
of these assets.

As of January 30, 2024, management has identified
a significant change in circumstances arising from the loss of a major customer within our wholly owned subsidiary, Devcool Inc. Historically,
this customer has accounted for approximately 45% to 50% of the Company’s business. However,