Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 87

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 future costs, which is updated
as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment.
The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes
known and any anticipated losses on contracts are recognized immediately, where appropriate.

Our contractual terms and conditions for Software
Services, Managed Services and Support and Platform Services mandate that our services are documented and subject to inspection, testing
at the time of delivery to customer. In addition, the Company needs to integrate seamlessly into the customers’ systems. Also,
the customer has a right to cancel all, or part of the services rendered if it is not in accordance 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 Condensed Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with
agreed-upon contractual terms, generally monthly, upon achievement of contractual milestones. Typically, 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 advances or deposits are liquidated when
revenue is recognized.

9

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

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
the management’s assessment of their creditworthiness on an unsecured basis. Trade accounts receivable are stated at the amount
the Company expects to collect and do not bear interest. The Company includes any balances that are determined to be uncollectible in
its allowance for doubtful accounts.

Allowance
for Doubtful Accounts - (current expected credit loss)  

The Company provides an allowance for uncollectible accounts (current
expected credit loss) based on historical experience and management evaluation of trend analysis. The collectability