Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 13

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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the purchase price paid by the acquirer to the identifiable tangible and intangible assets acquired, the liabilities assumed, including
any contingent consideration and any non-controlling interest in the acquiree at their acquisition date fair values.

Goodwill represents the excess of the purchase
price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible
assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs
are incurred. The results of operations of acquired businesses are included in our condensed consolidated financial statements from the
date of effective control.

Valuation of Contingent Earn-out Consideration.

Acquisitions may include contingent consideration
payments based on the achievement of certain future financial performance measures of the acquired company. Contingent consideration is
required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial
projections of the acquired companies and estimated probabilities of achievement. We believe our estimates and assumptions are reasonable,
however, there is significant judgment involved. We evaluate, on a routine, periodic basis, the estimated fair value of the contingent
consideration and changes in estimated fair value, subsequent to the initial fair value estimate at the time of the acquisition, will
be reflected in income or expense in the consolidated statements of operations. Changes in the fair value of contingent consideration
obligations may result from changes in discount periods and rates, changes in the timing and amount of revenue and/or earnings estimates
and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. Any changes in the estimated
fair value of contingent consideration may have a material impact on our operating results.

11

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Earnings (Loss) Per Share

Earnings per share (“EPS”) is the
amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss
per share. EPS is computed pursuant to Section 260-10-45 of the FASB Accounting Standards Codification. Pursuant to ASC Paragraphs 260-10-45-10
through 260-10-45-16, basic EPS shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average
number of common stocks outstanding (the denominator)