Company: HCTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076686
Chunk: 15

Company: Healthcare Triangle, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
 purchase shares of common stock issued to
non-employees do not need to be remeasured as per ASU 2018-07 principles.

The Company adopted the “2020 Stock Incentive
Plan” (Plan). The Company has reserved 4,000,000 shares of the Company’s Common stock.

Income taxes

The provision for income taxes was determined
using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences
expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents
income taxes paid or payable for the current year plus the change in deferred taxes during the period. Deferred taxes result from differences
between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws
when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit
will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates applicable in the years in which they are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax law is recognized in income
in the period that includes the enactment date.

Advertising Costs

The
Company expenses advertising cost as incurred. Marketing and advertising expenses for the quarter   ended
June 30, 2025 and 2024, were $236 and $145 respectively and for the six months ended June 30, 2025 and 2024, were $294 and $467 respectively  

Concentrations

 Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash and trade receivables. Credit risks associated with trade receivables
is minimal due to the Company’s customer base which consist of large customer base and ongoing procedures, which monitor the credit
worthiness of its customers. For the quarter ended June 30, 2025 and 2024 revenue from the top five customers accounted for approximately
57% and 58% of total revenue respectively. For the quarter ended June 30, 2025, and year ended December 31, 2024, accounts receivable
from five major customers accounted for approximately 52% and 72% of the total accounts receivables.

The Company maintains cash balances in various
financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation up to $250,000 (valid through