Healthcare Triangle(US:HCTI)2025-11-13 13:01Financial Performance - Net revenue for the three months ended September 30, 2025, was $3,489,000, representing a 44.7% increase from $2,413,000 in the same period of 2024[20] - Net revenue for the nine months ended September 30, 2025, reached $10,752,000, up 13.1% from $9,506,000 in the prior year[20] - The company reported a net loss of $1,906,000 for the three months ended September 30, 2025, compared to a net loss of $1,249,000 in the same period of 2024[20] - The company reported a net loss of $(4,973) for the nine months ended September 30, 2025[23] - The total net loss for the nine months ended September 30, 2025, was $4,973,000, compared to a net loss of $4,621,000 for the same period in 2024, indicating a slight increase in losses[123] Assets and Liabilities - Total current assets increased significantly to $7,942,000 as of September 30, 2025, compared to $1,949,000 as of December 31, 2024[18] - Total liabilities decreased to $5,112,000 as of September 30, 2025, down from $7,075,000 as of December 31, 2024[18] - Cash and cash equivalents surged to $1,629,000 as of September 30, 2025, compared to $20,000 as of December 31, 2024[18] - The company’s accumulated deficit increased to $38,520,000 as of September 30, 2025, from $33,571,000 as of December 31, 2024[18] - As of September 30, 2025, the total equity amounted to $8,726, with a net loss of $38,520 for the three months ended[23] Revenue Breakdown - Software services revenue for the nine months ended September 30, 2025, was $6,242,000, reflecting a 107% increase from $3,010,000 in the same period of 2024[120] - Managed services and support revenue decreased by 33% to $4,235,000 for the nine months ended September 30, 2025, down from $6,295,000 in the same period of 2024[120] - Revenue from the top five customers accounted for approximately 56% of total revenue, down from 61% in the same quarter of 2024[67] - Revenue from Software Services increased by $1.20 million, or 155%, to $1.97 million for the quarter ended September 30, 2025, while revenue from Managed Services and Support decreased by $0.19 million, or 12%, to $1.37 million[198] Expenses - Operating expenses for the three months ended September 30, 2025, totaled $3,209,000, an increase from $1,889,000 in the prior year[20] - General and administrative expenses rose to $2,085,000 for the three months ended September 30, 2025, compared to $1,077,000 in the same period of 2024[20] - Advertising and marketing expenses for the three months ended September 30, 2025, were $649,000, compared to $78,000 for the same period in 2024[143] - Research and Development expenses decreased by $0.11 million, or 66%, to $0.05 million for the quarter ended September 30, 2025[190] - Sales and Marketing expenses increased by $0.72 million, or 248%, to $1.02 million for the quarter ended September 30, 2025[191] Cash Flow - Net cash used in operating activities was $9,689,000 for the nine months ended September 30, 2025, a significant increase from $270,000 in the same period of 2024[26] - The company reported a net cash provided by financing activities of $12,587,000, a substantial increase from a net cash used of $936,000 in the prior year[26] - The net increase in cash and cash equivalents for the nine months ended September 30, 2025, was $1.61 million, compared to a decrease of $(1.21) million in 2024[211] Acquisitions and Investments - The company entered into an Asset Transfer Agreement to acquire Niyama Healthcare, Inc. and its 100% equity interest in Ezovion Solutions Private Limited, enhancing its market presence in mental health and hospital information systems[28] - The total consideration for the acquisition of Niyama Healthcare, Inc. is $5,700,000, which includes $1,500,000 in cash and 1,388,041 shares of restricted common stock valued at $3,000,000[72] - The company acquired intangible assets for $1,283,000 during the nine months ended September 30, 2025[26] Stock and Equity - The company issued 3,000 shares to be issued as part of its equity structure[24] - The company issued a convertible note on December 28, 2023, with a principal amount of $2,000,000, resulting in gross proceeds of $1,700,000[111] - As of September 30, 2025, the total issued and outstanding Series A Preferred Stock was 20,000 shares, with super voting rights equivalent to 1,000 votes per share[99] Future Outlook - The Company expects future profit margins to increase materially as new contracts are negotiated at higher margins[174] - Research and development expenses are expected to increase in absolute dollars as the Company focuses on developing new product offerings[176] - Sales and marketing expenses are anticipated to continue increasing as the Company strategically invests to expand its business[178] - The Company aims to enhance its customer base by encouraging existing customers to deploy additional solutions and attracting new customers[164]