Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 937

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 937
---
 company’s internal controls over
financial reporting were determined to be ineffective.

Based on the foregoing, our Chief Executive Officer
and principal financial officer concluded that our disclosure controls and procedures were ineffective to ensure that the material information
required to be included in our Securities and Exchange Commission reports is accumulated and communicated to our management, including
our principal executive and financial officer, recorded, processed, summarized and reported within the time periods specified in Securities
and Exchange Commission rules and forms relating to the Company, based on the assessment and control of disclosure decisions currently
performed by a small team. The Company plans to expand its management team and build a fulsome internal control framework required by
a more complex entity. 

Management’s Annual Report on Internal Control over Financial
Reporting

Our management is responsible for establishing
and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act.
Our management conducted an assessment of the effectiveness of our internal control over financial reporting based on the criteria set
forth in “Internal Control - Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway
Commission.

The Company carried out various assessments for
the financial year ended December 31, 2024:

    1.
    The Company recorded revenues and expenses from an acquisition from a related party; the contracts had not novated at the year end. 

    2.
    As part audit of Financial Statements, the management carried out adjustments to remove the value of unsupported intangible assets. 

    3.
    As part audit of Financial Statements, the management carried out adjustments to correct the recording of Preferred Series B Common Stocks issued to an affiliate, as a deemed dividend. 

    4.
    Adjustment to record amortization of Debt discount. 

    5.
    Adjustment to reverse Debt discount already recorded in the financial statements. 

    6.
    The management concluded that our limited resources prevented us from being able to employ sufficient resources to enable us to have an adequate level of supervision and segregation of duties. Further we have limited specific technical accountants and therefore it is difficult for us to effectively segregate accounting duties and have proper financial reporting, which creates a material weakness in our internal controls over financial reporting.

Accordingly, management concluded there was a
material weakness in our internal control over financial reporting at December 31, 2024.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control
over