Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 87

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 87
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 at the time of delivery to customer. In addition, the Company needs to integrate seamlessly into the customers’ systems. Also, the customer has a right to cancel all, or part of the services rendered if it is not in accordance with statement of work and within the stipulated time Contract Balances The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deferred revenue (contract liabilities) on the Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, generally monthly upon achievement of contractual milestones. Generally, billing occurs after revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international contracts, before revenue is recognized, resulting in contract liabilities. These deposits are liquidated when revenue is recognized F-20

The beginning and ending contract balances were as follows:

|                     |     |               | December 31, 2023 |     |   | December 31, 2022 |
|:--------------------|:----|:--------------|------------------:|:----|:--|------------------:|
|                     |     | -In thousands |                   |     |   |                   |
| Accounts Receivable |     | $             |             3,595 |     | $ |             5,865 |

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, 2022 and 2023 the Company did not provide allowances
for uncollectible accounts. Based on the information available, management believes the Company’s accounts receivable are 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 to years. Leasehold improvements