For the quarterly period ended March 31, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-40903 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) | Delaware | 84-3559776 | | --- ...

New York, NY, March 04, 2025 (GLOBE NEWSWIRE) -- Spartan Capital Securities, LLC, a premier investment banking firm, is pleased to announce the successful completion of a $15.2 million private placement for Healthcare Triangle, Inc. (Nasdaq: HCTI). Spartan Capital Securities, LLC acted as Co-Placement Agent in this private offering, supporting Healthcare Triangle’s continued expansion and digital transformation initiatives in the healthcare and life sciences industries. The proceeds from this offering will ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-40903 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) Delaware 84-3559776 (State ...

Core Viewpoint - Zacks Investment Research has initiated coverage of Healthcare Triangle, Inc. (HCTI) with an "Underperform" recommendation due to significant financial challenges and concerns about future growth prospects and liquidity [1] Company Overview - Healthcare Triangle, based in Pleasanton, CA, operates in the healthcare information technology sector, providing cloud services, data science, and managed services to healthcare and life sciences industries [2] Financial Performance - In Q2 2024, Healthcare Triangle's revenues fell by 65% year over year to $2.9 million, driven by an 87% decline in its Software Services segment [3] - The company reported a net loss of $1.5 million in Q2 2024, an improvement from a loss of $1.8 million in the previous year, but still presents ongoing risks to investor confidence [3] Liquidity and Financial Risks - As of June 2024, HCTI's cash reserves have dwindled to $29,000, with short-term borrowings of $1.7 million and total liabilities of $6.2 million, indicating severe liquidity issues [4] - The company relies heavily on external funding, which may lead to shareholder dilution and additional downward pressure on the stock [4] Customer Concentration and Growth Risks - HCTI's revenue is heavily dependent on a few large clients, with 68% of Q2 revenues coming from its top five customers, creating vulnerability to potential contract losses [5] - The financial statements include a going concern warning, raising significant investor concerns about the company's long-term viability [5] Potential Growth Opportunities - Healthcare Triangle's expertise in cloud services and artificial intelligence solutions presents growth potential, especially as the healthcare sector prioritizes digital transformation [6] - The company's Software-as-a-Service offerings, such as CloudEz and DataEz, are scalable and generate recurring revenues, which could enhance financial stability [6] - Efforts to diversify the customer base from reliance on a few large clients to a broader range of mid-size healthcare organizations may reduce individual customer risks [6] Market Performance - HCTI's stock has underperformed compared to industry peers and the broader market over the past year, reflecting investor concerns about its financial health and growth prospects [7]

Financial Performance - Net revenue for the three months ended June 30, 2024, was $2,984 thousand, compared to $8,526 thousand for the six months ended June 30, 2024, representing a decrease of approximately 65% year-over-year[12]. - The cost of revenue for the three months ended June 30, 2024, was $2,086 thousand, while for the six months it was $6,579 thousand, indicating a significant increase in costs[12]. - Total operating expenses for the three months ended June 30, 2024, were $2,276 thousand, down from $3,542 thousand for the six months, reflecting a reduction of about 36%[12]. - The net loss for the three months ended June 30, 2024, was $1,510 thousand, compared to a net loss of $1,786 thousand for the six months, showing a slight improvement[12]. - The company reported a loss from operations of $1,378 thousand for the three months ended June 30, 2024, compared to a loss of $1,595 thousand for the six months, indicating a narrowing of losses[12]. - Net income for June 2024 was a loss of $3,372,000, an improvement from a loss of $5,064,000 in 2023, indicating a reduction in losses[15]. - The weighted average shares outstanding used in calculating net loss per common share for the three months ended June 30, 2024, was 5,616,781 shares, resulting in a net loss per share of $(0.28)[12]. - Basic and diluted earnings per share (EPS) for the quarter ended June 30, 2024, were $(0.28), an improvement from $(0.42) in the prior year[118]. Revenue Breakdown - Total revenue for the three months ended June 30, 2024, was $2,984,000, a decrease of 65% compared to $8,526,000 in the same period of 2023[34]. - Software Services revenue for the six months ended June 30, 2024, was $2,235,000, down 81% from $11,643,000 in the same period of 2023[34]. - Managed Services and Support revenue for the three months ended June 30, 2024, was $2,253,000, a decrease of 21% from $2,865,000 in the same period of 2023[34]. - Revenue from the top five customers accounted for approximately 68% of total revenue for the quarter ended June 30, 2024, down from 81% in the same quarter of 2023[73]. - The top customer contributed 31% of revenue for the three months ended June 30, 2024, amounting to $925,000, down from 53% and $4,519,000 in the same period of 2023[36][38]. Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $985,000 in June 2024, compared to $2,750,000 in the same period of 2023, reflecting improved cash management[15]. - The company reported cash and cash equivalents at the end of the period of $29,000, down from $132,000 in 2023, indicating a significant decrease in liquidity[15]. - The total short-term borrowing as of June 30, 2024, is $1,726, a decrease from $3,429 as of December 31, 2023[98]. - The company has a substantial level of indebtedness, which poses risks to its financial stability and ability to repay debt[6]. Investments and Future Prospects - Future growth prospects depend on the company's ability to attract and retain customers, develop new solutions, and manage competition effectively[6]. - The company is focused on maintaining high customer retention rates and enhancing its brand presence in the market[6]. - The parent company, SecureKloud Technologies, Inc., is willing to invest an additional $5 million in equity to support the company's working capital and investment requirements[25]. - The company anticipates gross proceeds of up to $4,420,000 from the issuance of senior secured convertible promissory notes, with an initial tranche of $2,000,000 already issued[24]. - The company has sold $956,000 of shares through its ATM Sales Agreement and plans to utilize an additional capacity of $1,444,000 in the near future[23]. Operational Efficiency - Research and development expenses for the three months ended June 30, 2024, were $207 thousand, while sales and marketing expenses were $631 thousand, highlighting ongoing investment in these areas[12]. - The company is focused on digital transformation in the healthcare sector, leveraging technologies such as AI, ML, and IoT to improve operational efficiencies[18]. - The impact of COVID-19 has not materially affected the company's financial condition, but it has accelerated the adoption of digital solutions in the healthcare sector[20]. Acquisitions and Goodwill - The company has consolidated financials from its acquisition of Devcool, Inc., which enhances its capabilities in solving complex technology problems in the healthcare industry[19]. - The aggregate purchase price for the acquisition of Devcool Inc was $7,773, including $4,500 in cash and $700 in equity[85]. - The Company recorded $1,289 of goodwill from the acquisition of Devcool, which is not tax deductible[88]. - The Company fully impaired goodwill in Q4 FY 2023 due to the loss of a major customer[59]. Shareholder Information - The company has issued warrants convertible into common stock at a price of $7.99 per share, with none exercised as of June 30, 2024[92]. - As of June 30, 2024, the company has 967,256 outstanding warrants with a weighted average exercise price of $7.99 and an aggregate intrinsic value of $3,785[95]. - The company reported a warrant liability of $1,333 at fair value as of June 30, 2024, with the estimated fair value of common stock warrants at $3.91[97]. - The company has not declared or paid any dividends and does not plan to do so in the foreseeable future[109]. Tax and Compliance - The company's effective tax rate is 0% for the quarter ended June 30, 2024, consistent with the previous year[102]. - The company has no uncertain tax positions requiring recognition as of the date of these financial statements[100]. - The company is currently evaluating the impact of new accounting pronouncements on its consolidated financial statements[105]. Internal Controls and Risk Management - There were no changes to internal control over financial reporting during the three months ended June 30, 2024, that materially affected the company's controls[178]. - The company did not utilize derivative financial instruments to manage interest rate risks, indicating a conservative approach to market risk[177].

Financial Performance - Net revenue for Q1 2024 was $4,109,000, a decrease of 58% compared to $9,838,000 in Q1 2023[21] - Net loss for Q1 2024 was $1,862,000, compared to a net loss of $3,278,000 in Q1 2023, representing a 43.2% improvement[21] - Revenue for the quarter ended March 31, 2024, was approximately $4.1 million, a decrease of $5.7 million or 58% compared to $9.8 million for the quarter ended March 31, 2023[159] - Basic and diluted EPS for the quarter ended March 31, 2024, were $(0.42) and $(0.42) respectively, compared to $(0.79) for the same period in 2023[154] - The total segment operating loss improved by 89% to $(115,000) from $(1,046,000) in the prior year[52] Revenue Breakdown - Software services revenue decreased by 33% to $2,025,000, managed services and support revenue decreased by 69% to $1,996,000, and platform services revenue decreased by 74% to $88,000[51] - Revenue from Software Services decreased by $3.6 million, or 82%, to $0.79 million for the quarter ended March 31, 2024, compared to $4.4 million for the same period in 2023[196] - Revenue from the top five customers accounted for approximately 70% of total revenue for the quarter ended March 31, 2024, down from 80% in the same quarter of 2023[90] - Revenue concentration from the top five customers for the three months ended March 31, 2024, shows Customer 1 contributing 20% and Customer 2 contributing 18%[53] Expenses and Cost Management - Operating expenses decreased by 43.3% from $4,802,000 in Q1 2023 to $2,722,000 in Q1 2024[21] - Research and development expenses were $127,000 in Q1 2024, down from $539,000 in Q1 2023, a reduction of 76.5%[21] - Marketing and advertising expenses for the quarters ended March 31, 2024, and March 31, 2023, were $268,000 and $214,000 respectively[89] - General and administrative expenses decreased by $0.4 million, or 28%, to $1.2 million for the quarter ended March 31, 2024, compared to $1.6 million for the same period in 2023[200] - Sales and marketing expenses decreased by $0.9 million, or 50%, to $0.88 million for the quarter ended March 31, 2024, compared to $1.7 million for the same period in 2023[199] Assets and Liabilities - Total current assets decreased by 44.6% from $5,729,000 as of December 31, 2023, to $3,169,000 as of March 31, 2024[19] - Total liabilities decreased by 22.4% from $9,511,000 as of December 31, 2023, to $7,383,000 as of March 31, 2024[19] - The company has a total outstanding debt of $1,250,000 as of March 31, 2024, down from $2,000,000 as of December 31, 2023, after repaying $787,000 of convertible promissory notes during the quarter[113][114] - Cash and cash equivalents decreased from $1,234,000 at the beginning of Q1 2024 to $301,000 at the end of the period[25] Financing and Investment - The company issued 417,395 shares during Q1 2024, increasing additional paid-in capital to $26,256,000[23] - An institutional investor has agreed to purchase convertible promissory notes totaling up to $5,200,000, resulting in gross proceeds of up to $4,420,000 for the Company[37] - The Parent Company, SecureKloud Technologies, Inc., is willing to invest an additional $5 million in equity to support the Company's working capital and investment requirements[38] - The Company has sold $956,000 of shares through the ATM Sales Agreement and plans to sell an additional capacity of approximately $500,000[36] Operational Insights - The company continues to focus on digital transformation solutions for the healthcare sector, leveraging technologies such as AI and Big Data[28] - The Company operates in three distinct reportable segments: Software Services, Managed Services and Support, and Platform Services[47] - The company aims to shift focus towards Managed Services and Support and Platform Services to drive long-term revenue growth and enhance customer retention[206] Future Outlook - The company plans to continue investing in sales and marketing to promote its solutions, anticipating an increase in employee strength due to these investments[168] - Research and development expenses are expected to increase in absolute dollars as the company focuses on developing new product offerings and enhancing existing ones[181] - General and administrative expenses are anticipated to increase to support business growth, although they are expected to decrease as a percentage of revenue over the long term[186] - The company expects that the recent financing transactions will positively impact stockholders' equity by Q4 2024[37]

PLEASANTON, Calif., April 04, 2024 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc. (NASDAQ:HCTI) ("Healthcare Triangle," "HCTI" or the "Company"), a leading provider of healthcare IT solutions, is thrilled to announce its partnership with Cynomi, a pioneer vCISO platform vendor. This collaboration introduces an innovative Virtual Chief Information Security Officer (vCISO) service tailored specifically for the healthcare provider market, setting a new standard in cybersecurity and compliance. The vCISO platfor ...

PLEASANTON, Calif., April 03, 2024 (GLOBE NEWSWIRE) -- Healthcare Triangle, Inc. (NASDAQ:HCTI) ("Healthcare Triangle," "HCTI" or the "Company"), In a pioneering move, a leading health system has partnered with Healthcare Triangle to utilize a groundbreaking cloud-based AI and machine learning solution. This collaboration establishes a revolutionary benchmark in the management and utilization of patient data, ultimately elevating the standards for enhanced care delivery. The deployment of an advanced AI solu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Form 10-K Commission File Number: 001-40903 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 HEALTHCARE TRIANGLE, INC. (Exact name of registrant as specified in its charter) Delaware 84-3559776 (State or other jurisdiction ...

Financial Performance - Net revenue for Q3 2023 was $7,779,000, a decrease of 34.3% compared to $11,950,000 in Q3 2022[21] - Net loss for Q3 2023 was $1,943,000, compared to a net loss of $2,339,000 in Q3 2022, showing an improvement of 15.9%[21] - Net income for the nine months ended September 30, 2023, was a loss of $7,007,000 compared to a loss of $4,747,000 in the same period of 2022[26] - Total revenue for the nine months ended September 30, 2023, was $26,143,000, a decrease of 24% from $34,594,000 in 2022[47] - Revenue for the quarter ended September 30, 2023, decreased by $4.2 million, or 35%, to $7.78 million compared to $11.95 million for the same quarter in 2022[190] Expenses and Costs - Operating expenses for Q3 2023 were $3,231,000, a reduction of 43.1% from $5,675,000 in Q3 2022[21] - Research and development expenses significantly decreased to $54,000 in Q3 2023 from $1,471,000 in Q3 2022, a drop of 96.3%[21] - Sales and marketing expenses increased to $1.1 million, or 14% of total revenue, for the quarter ended September 30, 2023, compared to $1.8 million, or 15%, for the same quarter in 2022[189] - General and administrative expenses for the quarter ended September 30, 2023, were $1.36 million, or 18% of total revenue, compared to $1.48 million, or 12%, for the same quarter in 2022[189] - Interest expenses increased by $0.36 million, or 655% to $0.42 million for the quarter ended September 30, 2023, compared to $0.05 million for the same quarter in 2022[198] Assets and Liabilities - Total assets decreased to $14,466,000 as of September 30, 2023, down from $20,763,000 as of December 31, 2022, representing a decline of 30.5%[19] - Total stockholders' equity decreased to $6,127,000 as of September 30, 2023, down from $12,388,000 as of December 31, 2022, a decline of 50.6%[19] - Total current liabilities increased to $6,852,000 as of September 30, 2023, compared to $6,148,000 as of December 31, 2022, an increase of 11.4%[19] - Cash and cash equivalents fell to $75,000 as of September 30, 2023, down from $1,341,000 as of December 31, 2022, a decrease of 94.4%[19] - Total cash, cash equivalents, and short-term investments decreased to $0.08 million as of September 30, 2023, from $4.14 million as of September 30, 2022[208] Operational Performance - The company reported a loss from operations of $1,524,000 in Q3 2023, compared to a loss of $2,247,000 in Q3 2022, reflecting a 32.2% improvement[21] - For the three months ended September 30, 2023, the total segment operating loss was $108, a decrease of 58% compared to a profit of $260 in the same period of 2022[49] - Software services reported an operating loss of $703 for the three months ended September 30, 2023, which is a 385% increase in loss compared to a loss of $145 in 2022[49] - Managed services and support generated $709 in operating profit for the three months ended September 30, 2023, down 49% from $1,397 in 2022[49] - Platform services saw a significant turnaround with an operating profit of $102 for the three months ended September 30, 2023, compared to a loss of $992 in the same period of 2022, marking a 110% change[49] Customer Concentration - The top customer contributed $4,168, accounting for 54% of revenue for the three months ended September 30, 2023, compared to $4,562 and 38% in the same period of 2022[50][51] - For the quarter ended September 30, 2023, revenue from the top five customers accounted for approximately 78% of total revenue, compared to 76% for the same period in 2022[95] Acquisitions and Goodwill - The Company acquired Cornerstone Advisory Services LLC for a total consideration of $7,000,000, allocated to net working capital of $4,700,000 and intangibles of $2,300,000[107] - The Company recognized a liability for the estimated fair value of contingent consideration related to the acquisition of Devcool, Inc., amounting to $1,487,000[90] - The total purchase price for the acquisition of Devcool Inc. was $7,773,000, which included $4,500,000 in cash and $700,000 in equity[109] - The company recorded $1,289,000 of goodwill from the acquisition, which is not tax deductible[112] Stock and Shareholder Information - Weighted average shares outstanding increased to 4,228,340 in Q3 2023 from 3,602,289 in Q3 2022, an increase of 17.4%[21] - The Company has reserved 600,000 shares of common stock under the "2020 Stock Incentive Plan"[92] - As of September 30, 2023, the Company had nil uninsured cash balances, down from $816,000 as of December 31, 2022[96] - As of September 30, 2023, there was $546 thousand of unrecognized share-based compensation expense related to unvested options, expected to be recognized over approximately two years[143] Future Outlook - The company expects to continue increasing its investment in sales and marketing to support business growth, which may lead to higher expenses in absolute dollar terms[180] - The company anticipates that its employee strength will increase due to investments in scaling the business[163] - The company is currently evaluating the impact of new accounting pronouncements on its consolidated financial statements[130]