Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 36

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 in the Healthcare and Life Sciences
industry. Our software services include strategic advisory, implementation and development services and Managed Services and Support include
post implementation support and cloud hosting.

Key Factors of Success

We believe that our future growth, success, and
performance are dependent on many factors, including those mentioned below. While these factors present significant opportunities for
us, they also represent the challenges that we must successfully address in order to grow our business and improve our results of operations.

Investment in scaling the business 

We need to continuously invest in sales, and marketing
to promote our solutions to new and existing customers in various geographies, and other operational and administrative functions in systems,
controls and governance to support our expected growth and our transition to a public company. We anticipate that our employee strength
will increase because of these investments.

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.

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Subscription services adoption 

The key factor to our success in generating substantial
recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our SaaS offerings.
We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI, and do not yet have enough information
about our competition or customer acceptance to determine whether or not recurring subscription revenue from these offerings will have
a material impact on our revenue growth.

Mix of solutions and software services revenues

Another factor to our success is the ability to
sell our solutions to the existing software services customers. During the initial period of deployment by a customer, we generally provide
a greater number of services including advisory, implementation and training. At the same time, many of our customers have historically
purchased our solutions after the deployment. Hence, the proportion of total revenues for a customer associated with software services
is relatively high during the initial deployment period. While our software services help our