Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 106

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 106
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 December 31, 2023. The Convertible note does not possess a beneficial conversion feature and therefore the convertible debt balance has been classified as a single liability and resulted in a lower cash interest expense; this accounting treatment had no impact on the Company’s cash flows. |

F-33

| ASU 2021-08—Business      
 Combinations (Topic 805): |

| ASU 2016-08-Leases (Topic 
 842):                     |

| The Company has entered into a short-term rental sub-lease agreement with effect from January 01, 2023. The lease term is for a period of 12 months; the lease payments are recognized as lease expense on a straight-line basis over the lease term. For the year ended December 31, 2023, the total lease expense recognized for the short-term lease was $89. Since the lease qualifies for the short-term lease exemption, there are no future minimum lease payment obligations disclosed beyond the current period. |

| ASU 2021-10—Government 
 Assistance             |

| The Company did not                                                                            
 receive any government assistance within the scope of this standard during the reporting       
 period ending December 31, 2023. Therefore, the adoption of ASU 2021-10 did not have an impact 
 on the Company’s financial statements or related disclosures.                                  |

13) Legal Matters The Company is not involved in any action, arbitration and / or other legal proceedings that it expects to have a material adverse effect on the business, financial condition, results of operations or liquidity of the Company. All legal cost is expensed as incurred.

14) Share Based Compensation

We estimate the fair value of our stock options
using the Black-Scholes option pricing model. This requires the input of subjective assumptions, including the fair value of our underlying
common stock, the expected term of stock options, the expected volatility of the price of our common stock, risk-free interest rates,
and the expected dividend yield of our common stock, the most critical of which, prior to our IPO, was the estimated fair value of common
stock. The assumptions used in our option pricing model represent our best estimates. These estimates involve inherent uncertainties and
the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense
could be materially different in the future. The resulting fair value, net of actual forfeitures, is recognized on a straight-line basis
over the period during which an employee is required to provide service