Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 17

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 paid or payable for the current year plus the change in deferred taxes during the period. Deferred taxes result from differences
between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws
when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit
will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income
in the period that includes the enactment date.

Advertising Costs

 The Company expenses advertising cost as incurred.
Marketing and advertising expenses for the quarters ended March 31, 2025, and March 31, 2024, were $58 and $268 respectively. 

Concentrations

Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash and trade receivables. Credit risks associated with trade receivables
is minimal due to the Company’s customer base which consist of large customer base and ongoing procedures, which monitor the credit
worthiness of its customers. For the quarter ended March 31, 2025 and 2024 revenue from the top five customers accounted for approximately
57% and 70% of total revenue respectively. For the quarter ended March 31, 2025, and year ended December 31, 2024, accounts receivable
from five major customers accounted for approximately 59% and 63% of the total accounts receivables.

The Company maintains cash balances in various
financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation up to $250,000 (valid through
March 31, 2025) per institution.

As of March 31, 2025, and December 31, 2024, the
Company had $2.9 million and $0 million respectively, of uninsured cash balances. The Company has not experienced any losses in such accounts
and believes it is not exposed to any significant credit risk on cash.

15

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

3) Property and Equipment

Property and equipment consisted of the following:

Schedule of property and equipment

    March 31, 2025  
    December 31,  202