Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 427

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 427
---
    (In thousands) 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liabilities 
     -  
     -  
    $-  
    $- 
  
    Acquisition-related contingent consideration 
     —  
     —  
    $500  
    $500 

Stock-Based Compensation

The Company accounts for stock-based awards to
employees and consultants in accordance with applicable accounting principles, which requires compensation expense related to share-based
transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of
the fair value of the stock options over the instruments vesting period. Options awarded to purchase shares of common stock issued to
non-employees do not need to be remeasured as per ASU 2018-07 principles.

The Company adopted the “2020 Stock Incentive Plan” (Plan).
The Company has reserved 861,764 shares of the Company’s Common stock.

F-15

Income taxes

The provision for income taxes was determined
using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences
expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents
income taxes paid or payable for the current year plus the change in deferred taxes during the period. Deferred taxes result from differences
between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws
when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit
will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income
in the period that includes the enactment date.

Advertising Costs

The Company expenses advertising cost as incurred. Advertising expense
for the year ended December 31, 2024, and 2023 was $607 and $526 respectively.

Concentration

Financial instruments that potentially subject
the Company to concentration of credit risk consist principally of cash and trade receivables. Credit risks associated with trade receivables
is minimal due to the Company’s customer base which consist of large customer base and ongoing procedures, which monitor