Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 82

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 the acquisition date. We estimate the fair value of these liabilities based on financial
projections of the acquired companies and estimated probabilities of achievement. We believe our estimates and assumptions are reasonable,
however, there is significant judgment involved. We evaluate, on a routine, periodic basis, the estimated fair value of the contingent
consideration and changes in estimated fair value, subsequent to the initial fair value estimate at the time of the acquisition, will
be reflected in income or expense in the consolidated statements of operations. Changes in the fair value of contingent consideration
obligations may result from changes in discount periods and rates, changes in the timing and amount of revenue and/or earnings estimates
and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. Any changes in the estimated
fair value of contingent consideration may have a material impact on our operating results.

11

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Earnings (Loss) Per Share

Earnings per share (“EPS”) is the
amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss
per share. EPS is computed pursuant to Section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10
through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average
number of common stocks outstanding (the denominator) during the period. Income available to common stockholders shall be computed by
deducting both the dividends declared in the period on preferred stock (whether or not paid) and the dividends accumulated for the period
on cumulative preferred stock (whether or not earned) from income from continuing operations (if that amount appears in the income statement)
and also from net income. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased
to include the number of additional common stocks that would have been outstanding if the dilutive potential common stocks had been issued
during the period to reflect the potential dilution that could occur from common stocks issuable through contingent shares issuance arrangement,
stock options or warrants.

Fair Value Measurements

The Company measures its financial assets at fair
value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the