Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 16

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 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.

Concentrations

Financial instruments that potentially subject
the Company to concentrations 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 the credit
worthiness of its customers. For the quarter ended September 30, 2025 and 2024 revenue from the top five customers accounted for approximately
56% and 61% of total revenue respectively. For the quarter ended September 30, 2025, and year ended December 31, 2024, accounts receivable
from five major customers accounted for approximately 51% and 72% of the total accounts receivables.

The Company maintains cash balances in various
financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation up to $250,000 (valid through
September 30, 2025) per institution.

As of September 30, 2025, and December 31, 2024,
the Company had $735 and $0 respectively, of uninsured cash balances. The Company has not experienced any losses in such accounts and
believes it is not exposed to any significant credit risk on cash.

13

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

3) Balance sheet schedules

3.1) Accounts Receivable, net

    September 30, 2025  
    December 31,  2024 
  
    Accounts receivable, gross 
    $2,606  
    $1,295 
  
    Less: Allowance for doubtful accounts (current expected credit loss) 
     (165) 
     (185)
  
    Accounts receivable, net 
    $2,441  
    $1,110 

As at September 30, 2025, the Company remeasured
its allowance for current expected credit loss to $165, showing a net reduction of $20 from the balance as at December 31, 2024.

3.2) Furniture