Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 909

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 909
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 with statement of work and within the
stipulated time

Contract Balances

The timing of revenue recognition, billings, and
cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deferred revenue
(contract liabilities) on the Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual
terms, generally monthly upon achievement of contractual milestones. Generally, billing occurs after revenue recognition, resulting in
contract assets. However, we sometimes receive advances or deposits from our customers, particularly on our international contracts, before
revenue is recognized, resulting in contract liabilities. These deposits are liquidated when revenue is recognized

F-12

The beginning and ending contract balances were as follows:

    December 31,  
    December 31, 

    2024  
    2023 

    (In thousands) 
  
    Accounts receivable 
    $1,110  
    $3,595 

Cash and Cash Equivalents

The Company considers all highly liquid investments
(including money market funds) with an original maturity at acquisition of three months or less to be cash equivalents. The Company maintains
cash balances, which may exceed federally insured limits. The Company does not believe that this results in any significant credit risk.

Accounts Receivable

The Company extends credit to clients based upon
management’s assessment of their creditworthiness on an unsecured basis. The Company provides an allowance for uncollectible accounts
based on historical experience and management evaluation of trend analysis. The Company includes any balances that are determined to be
uncollectible in its allowance for doubtful accounts. For the year ended December 31, 2024, Company has provided allowance for uncollectible
accounts for a value of $170 and $0 for the year end December 31, 2023. Based on the information available, management believes the Company’s
other receivable is collectible.

Property and Equipment

Property and equipment are stated at cost. The
Company provides for depreciation of property and equipment using the straight-line method over the estimated useful lives of the related
assets ranging from 3 to 7 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease terms
or the useful lives of the improvements. The Company charges repairs and maintenance costs that do not extend the lives of the assets
to expenses as incurred.

Intangible Assets

We capitalize certain costs incurred for the platform