Company: HCTI
Filing Date: 2025-02-25
Form Type: PRE 14A
Source: 0001213900-25-017146
Chunk: 25

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-25
Form: PRE 14A
Chunk 25
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 those of our stockholders. Our Board of Directors believes that the number of shares
of common stock currently available for issuance under our Plan is insufficient in view of our anticipated growth, compensation structure,
business strategy and our plans to issue additional shares of common stock in the future to increase our capitalization to permit investment
in our future growth.

Under the current Plan, in order to increase
the number of shares of common stock available for the Plan, we would need to obtain stockholder approval each time an increase was deemed
necessary. Stockholder approval requires that the board wait until the time for our annual meeting, which could result in the loss of
important members of our team or call a special meeting of stockholders which would result in some distraction to management from its
focus on our business and substantial additional expense, the funds of which could be better used for non-administrative matters.

If we cannot increase the amount of shares of
common stock available for issuance pursuant to the Plan Amendment, it could have a negative impact on our ability to retain and attract
key employees. Accordingly, we are seeking stockholder approval of the Plan Amendment. In the event that the Plan Amendment is not approved
by stockholders, the Plan will continue in effect without the amendment described above.

Any increase in the number of shares of common
stock reserved under the Plan has the potential to dilute the ownership of our current stockholders. Dilution will decrease such stockholders’
voting power, will decrease their proportionate share of any dividends we may declare and may make it more difficult for a stockholder
to increase his/her percentage ownership in the Company. Moreover, an automatic increase in the number of shares subject to the Plan
eliminates the ability of our stockholders to have control over this form of compensation to our directors and management. These reasons
and others are why certain advisory firms recommend against such provisions in a company’s equity incentive plan.

As of February [●], 2025: (i) [●]
shares of our common stock remained available for future awards under our Plan; and (ii) [●]shares of our common stock were subject
to outstanding options under our Plan (with the outstanding options having a weighted average exercise price of $[*] per share
and a weighted average term to scheduled expiration of 2.25 years). During the fiscal year ended December 31, 2024, our Board of Directors
approved the grant of options to purchase [●] shares of common stock under our Plan.