Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 88

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 88
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 are amortized using the straight-line method over the shorter of the lease terms
or the useful lives of the improvements. The Company charges repairs and maintenance costs that do not extend the lives of the assets
to expenses as incurred.

Intangible Assets

We capitalize certain costs incurred for the platform
development when it is determined that it is probable that the platform will be completed and will be used as intended. Costs related
to preliminary project activities, post-implementation activities, training, and maintenance are expensed as incurred. Customer relationship
and platform development are amortized based on finite lives using either the straight-line method or based on estimated future cash flows
to approximate the pattern in which the economic benefit of the asset will be utilized. Management evaluates the useful lives of these
assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability
of these assets.

As of January 30, 2024, management has identified a significant change in circumstances arising from the loss of a major customer within our wholly owned subsidiary, Devcool Inc. Historically, this customer has accounted for approximately 45% to 50% of the Company’s business. However, recent developments have led to a substantial reduction in transactions with the company. Based on the impairment assessment, management determined that an impairment loss of $ 1,710was necessary to reflect the reduced value of the customer relationship as at December 31, 2023, and $ 640as at December 31, 2022, respectively and also an impairment loss of $ 2,437was necessary to reflect value of the intellectual property which reflects the impact of the loss of the major customer on the Company’s financial position and results of operations. This impairment loss, which is a non-recurring expense, has been recognized in the financial statements for the reporting period ending on that date

Goodwill

Goodwill is the excess of the cost of an acquired entity over the net
amounts assigned to tangible and intangible assets acquired and liabilities assumed.

The Company performs its annual goodwill impairment test as of January 30, 2024. Management has identified a significant change in circumstances arising from the loss of a major customer within our wholly owned subsidiary, Devcool Inc. Historically, this customer has accounted for approximately 45% to 50% of the Company’s business. However, recent developments have led to a substantial reduction in transactions with the company.

Based on the impairment assessment, it was determined that the carrying amount of goodwill exceeded its