Company: HCTI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109581
Chunk: 84

Company: Healthcare Triangle, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 following the fifth anniversary of our IPO), (ii) the last day of the first fiscal year in
which we have total annual gross revenue of at least $1.07 billion, (iii) the last day of the first fiscal year in which we are deemed
to be a “large accelerated filer”, as defined in the rules under the Exchange Act, and (iv) the date on which we have issued
more than $1.0 billion in non-convertible debt during the prior three-year period. We refer to the Jumpstart Our Business Startups Act
of 2012 herein as the “JOBS Act,” and any reference herein to “emerging growth company” has the meaning ascribed
to it in the JOBS Act.

Segment Information

The management has chosen to organize the Company
around differences in products and services and segregated the reporting segments as Software Services and Managed Services and Support.

Operating segments are defined as components
of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision
maker in deciding how to allocate resources and assessing performance. The Company defines the term ‘Chief Operating Decision
Maker’ (CODM) to be the Chief Financial Officer and Chief Operating Officer. The CODM, along with the management team, reviews
the financial information presented on a consolidated basis and uses net results for purposes of making operating decisions,
allocating resources, and evaluating financial performance. Accordingly, the Company has determined that it operates in two distinct
reportable operating segments, and all required financial segments information can be found in the interim condensed consolidated
financial statements. The measure of segment assets is reported on the balance sheet as total consolidated assets. Refer to the
Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 for total consolidated assets.

7

HEALTHCARE TRIANGLE, INC.

Notes To Condensed Consolidated Financial Statements

(Unaudited)

(In thousands except share and per share data)

Revenue Recognition

We recognize revenues as we transfer control
of deliverables (services, solutions, and platform) to our clients in an amount reflecting the consideration to which we expect to be
entitled. To recognize revenues, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the
performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations
in the contract, and (5) recognize revenues