Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 891

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 891
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 our principal sources
of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.002 million.

The accompanying financial statements have been
prepared assuming the Company will continue as a going concern. The Company is yet to achieve profitable operations, has negative cash
flows from operating activities, and is dependent upon equity or other financings to fund ongoing operations, all of which raises substantial
doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from
the outcome of this uncertainty. 

Liquidity

The current ratio measures a company’s ability
to pay off its current liabilities (payable within one year) with its total current assets such as cash, accounts receivable, and inventories.
The higher the ratio, the better the company’s liquidity position. A good current ratio is between 1.2 to 2, which means that a
business has 2 times more current assets than liabilities to covers its debts. The Company’s current ratio, as of December 31, 2024,
is 0.33 compared to 0.74 as of December 31, 2023.

The Company’s current debt equity ratio,
as on December 31, 2024, is (0.50), compared to (3.2) as on December 31, 2023. A debt-to-equity ratio below 1 means that a company has
lower exposure to debts than equity.

The Company does not have inventory and hence the quick ratio is the
same as the current ratio.

Sources of Liquidity

As of December 31, 2024, our principal sources
of liquidity consisted of cash and cash equivalents of $0.002 million. We believe that the fund raise of $15.20 million in February, 2025
will be sufficient to meet our working capital requirements over the next 12 months. If sources of liquidity are not available or if we
cannot generate sufficient cash flow from operations during the next twelve months, we may be required to obtain additional sources of
funds through additional operational improvements, capital market transactions, asset sales or financing from third parties, a combination
thereof or otherwise. We cannot provide assurance that these additional sources of funds will be available or, if available, would have
reasonable terms.

Operating Activities

Net cash used in operating activities was $1.08
million for the twelve months ended December 31, 2024, and