Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 42

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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”). Pursuant to the Agreement,
the Company agreed to purchase from the Seller the Transferred Assets (comprising of contracts, intellectual property and related assets),
and (ii) the Seller’s 100% shareholder equity interest in Ezovion Solutions Private Limited, Chennai, India - Hospital Information
Systems SaaS Provider as Seller’s Equity (the “Transferred Equity”), as a whole and as a going concern in exchange
for the Purchase Price (as defined below).

The total consideration for the acquisition, which is referred to herein
as the “Purchase Price”, is $5,700 which includes: (1) $1,500 in cash, of which $1,200 is due on the Closing Date and $300
to be paid at the later of the satisfaction of certain withholding requirements or within 120 days of the Closing Date; during the period
ended September 30, 2025, the Company made payments amounting to $1,045 out of the $1,500 obligation. The remaining balance of $455 is
recognized as payable as at September 30, 2025. (2) 1,388,041 shares of restricted common stock of the Company equal to $3,000 divided
by $2.16, issued on the Closing Date; and (3) up to $1,200 in earn-out payments contingent on first-year financial performance targets
to be agreed upon mutually.

The final determination of the fair values, purchase
consideration, related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period
of up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during
the measurement period will be recorded in the reporting period in which the adjustment is determined.

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Adoption of our solutions by new and existing
customers 

We believe that our ability to increase our customer
base will enable us to drive growth. Most of our customers initially deploy our solutions within a division or geography and may only
initially deploy a limited set of our available solutions. Our future growth is dependent upon our existing customers’ continued
success and renewals of our solutions agreements, deployment of our solutions to additional divisions or geographies and the purchase
of subscriptions to additional solutions. Our growth is also dependent on the adoption of our solutions by new customers. Our customers
are large organizations who typically have long procurement cycles which may lead to declines in the pace of our new customer additions.

Subscription services adoption