Company: HCTI
Filing Date: 2025-02-18
Form Type: 10-K/A
Source: 0001213900-25-014503
Chunk: 95

Company: Healthcare Triangle, Inc.
Filing Date: 2025-02-18
Form: 10-K/A
Chunk 95
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, 2023, 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.

| Nature of Intangibles  |     | Useful Life |
| Customer relationships |     | 5 years     |
| Intellectual property  |     | 5 years     |
| Product development    |     | 5 years     |

Estimated annual amortization expense (including amortization expense associated with capitalized software costs) is as follows:

| December 31, 
 2024         |     | (In thousands) | 857 |
|:-------------|:----|:---------------|----:|
| Total        |     | $              | 857 |

F-25

6) Leases

The Company determines if an arrangement contains
a lease at inception. Right of use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease
liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease
commencement date based on the estimated present value of lease payments over the lease term.

The Company is currently operating from two office
locations leased by its Parent. The Company does not have any signed lease agreement in its name. The Company’s principal facility
is located in Pleasanton, CA and has another facility in Plainsboro, NJ. Rent expenses were $ and $ for the twelve months ended December
31, 2023 and December 31, 2022, respectively.

The Company utilized a portfolio approach in determining
the discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category
of the underlying asset and the Company’s estimated incremental borrowing rate, which is derived from information available at the
lease commencement date, in determining the present value of lease payments. The Company also considered its recent debt issuances as
well as publicly available data for instruments with similar characteristics when calculating the incremental borrowing rates.

Leases with a term of 12 months or less are not
recorded on the balance sheet, per the election of the practical expedient noted above. The Company recognizes lease expense for these
leases on a straight-line basis over the lease term. The Company recognizes variable lease payments in the period in which the obligation
for those payments is incurred. Variable lease payments that depend on