Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 820

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 820
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 Company’s principal facility
is located in Pleasanton, CA and has another facility in Plainsboro, NJ. Rent expenses were $135 and $135 for the twelve months ended
December 31, 2024, and December 31, 2023, respectively.

The Company utilized a portfolio approach in determining
the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category
of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the
lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as
well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Leases with a term of 12 months or less are not
recorded on the balance sheet, per the election of the practical expedient noted above. The Company recognizes lease expense for these
leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation
for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate
at the commencement date, otherwise variable lease payments are recognized in the period incurred.

6) Due from Related Party  

SecureKloud Technologies Inc, is a Nevada based
corporation, focusing on digital transformation for Avionics, Technology and Manufacturing Industry. As a pioneer in enabling cloud transformation
for global enterprises, SecureKloud Technologies Inc is building on foundation of cloud capabilities by creating innovative platforms
that are time-tested and designed to drive success in its digital transformation journey. HTI uses the capabilities and resources of SecureKloud
for the execution of projects for its customers.

On October 21, 2024, Healthcare Triangle,
Inc acquired substantially all of the business, assets, and operations relating to cloud and technology domain of SecureKloud Technologies,
Inc a Nevada corporation. The Acquired Assets were acquired by Healthcare Triangle, Inc under an Asset Transfer Agreement, dated October
21, 2024.

The consideration for the Acquired Assets consisted
of the issuance of 1,600,000 shares of newly designated Series B Convertible Preferred Stock (“Series B Preferred Stock”)
which is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval), for a total
consideration of USD 7.44 million.

This is common control transaction, and the fair