Company: HCTI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-045994
Chunk: 80

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 80
---
 Triangle, Inc under an Asset Transfer Agreement, dated October
21, 2024.

The consideration for the Acquired Assets consisted
of the issuance of 1,600,000 shares of newly designated Series B Convertible Preferred Stock (“Series B Preferred Stock”)
which is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval), for a total
consideration of USD 7.44 million.

This is common control transaction, and the fair
value of the assets acquired were calculated as $7,435. The transaction was treated as an asset acquisition and due to the common control
nature, the company recorded deemed dividend and the acquired assets at $0, which was the carrying value of the common control seller.

On January 1, 2025, the Company entered into a
Rental Sublease Agreement with Securekloud Technologies Inc ("SKI") and Master Service Agreement with Securekloud Technologies
Inc ("SKI") and Securekloud Technologies Limited ("SKL). As per the Master Services Agreement, SKI and SKL provide technical
resources according to the statement of work from the Company. The initial term of the agreement between SKI and the principal lessor
is twenty-four months, which is extendable based on mutual consent. The Company received services amounting to $1,132 and $813 for the
quarter ended March 31, 2025, and 2024 respectively. The Company has paid for these services during the quarter. 

As per the terms of the Rental Sublease Agreement,
the cost incurred by SKI on behalf of the Company are settled at cost. The Company received services amounting to $43 and $33 for the
quarter ended March 31, 2025, and 2024 respectively. The Company has paid for rent during the quarter.

7) Contingent consideration 

On February 24, 2025, the Company executed a settlement
agreement and issued 594,130 common stocks at $0.6733 amounting to $400 and the balance $100 was settled by cash on March 31, 2025.

17

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

8) Equity Transactions

On February 27, 2025, Healthcare Triangle, Inc.
(the “Company”) entered into Securities Purchase Agreements dated February 27, 2025 (the “Purchase