Healthcare Triangle Inc
For the period ended Jun 30, 2024. Filed Aug 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 19, 2024
HCTI$3.70+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-20.
0001213900-24-045251
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001213900-24-070692
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 111 current paragraphs.
87 unchanged; 18 reworded; 6 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Revenue decreased by $5.5 million, or 65% to $2.9 million for the quarter ended June 30, 2024, as compared to $8.5 million for the quarter ended June 30, 2023. Revenue from Software Services, Managed Services and support and Platform services have reduced resulting in net decrease in revenue. The major revenue reduction is due to a reduction in revenue from a major customer.
Current report
Revenue from Customer 1 has decreased by $3.6 million, or 80% to $0.9 million for the quarter ended June 30, 2024, as compared to $4.5 million for the quarter ended June 30, 2023.
Current report
Research and Development expenses increased by $0.11 million, or 103% to $0.21 million for the quarter ended June 30, 2024, as compared to $0.1 million for the quarter ended June 30, 2023. The cost has increased on account of new research being done on readabl.ai.
Current report
Sales and Marketing expenses decreased by $0.4 million, or 38% to $0.6 million for the quarter ended June 30, 2024, as compared to $1 million for the quarter ended June 30, 2023, this is primarily due to reduction in headcount and stock compensation expenses.
Current report
Interest expenses increased by $0.05 million, or 30% to $0.13 million for the quarter ended June 30, 2024, as compared to $0.19 million for the quarter ended June 30, 2023, the decrease was due to repayment of funding acquired.
Current report
Revenue from Software Services decreased by $4.5 million, or 87% to $0.7 million for the quarter ended June 30, 2024, as compared to $5.2 million for the quarter ended June 30, 2023. Revenue from Managed Services and Support decreased by $0.6 million, or 21% to $2.3 million for the quarter ended June 30, 2024, as compared to $2.9 million for the quarter ended June 30, 2023. Revenue from Platform Services decreased by $0.4 million, or 86% to $0.07 million for the quarter ended June 30, 2024, as compared to $0.5 million for the quarter ended June 30, 2023.
Removed paragraphs (6)
Previous report
Revenue decreased by $5.7 million, or 58% to $4.1 million for the quarter ended March 31, 2024, as compared to $9,8 million for the quarter ended March 31, 2023. Revenue from Software Services , Managed Services and support and Platform services have reduced resulting in net decrease in revenue. The Software Services are typically short-term engagements to provide software consulting and development services, which do not require continual third-party maintenance. Managed Services and Support such as cloud hosting, and cloud disaster recovery requires continuous monitoring.
Previous report
Revenue from Customer 1 decreased by $4.1 million, or 84% to $0.8 million for the quarter ended March 31, 2024, as compared to $4.9 million for the quarter ended March 31, 2023. Software services revenue decreased by $3.6 million or 82% to $0.79 million for the quarter ended March 31, 2024, as compared to $4.4 million for the quarter ended March 31, 2023. Managed Services and Support revenue decreased by $0.47 million, or 96% to $0.02 million for the quarter ended March 31, 2024, as compared to $0.49 million for the quarter ended March 31, 2023. There was a revenue reduction of $4.1 million due to the termination of the Supplier Master Services Agreement with Customer 1, effective February 4, 2024.
Previous report
Research and development expenses decreased by $0.4 million, or 76% to $0.1 million for the quarter ended March 31, 2024, as compared to $0.5 million for the quarter ended March 31, 2023. The costs have come down since all our platforms have been developed and are available in the market.
Previous report
Sales and marketing expenses decreased by $0.9 million, or 50% to $0.88 million for the quarter ended Mach 31, 2024, as compared to $1.7 million for the quarter ended March 31, 2023. The reduction is due to (i) Rationalization of sales and marketing resources (ii) Lower commission due to lower revenue.
Previous report
Interest expenses increased by $0.08 million, or 140% to $0.15 million for the quarter ended March 31, 2024, as compared to $0.06 million for the quarter ended March 31, 2023. Interest expense increased in the quarter due to L1 convertible notes.
Previous report
Revenue from Software services $1.0 million, or 33% to $2.0 million for the quarter ended March 31, 2024, as compared to $3.0 million for the quarter ended March 31, 2023. Revenue from Managed services and support decreased by $4.4 million, or 69% to $1.9 million for the quarter ended March 31, 2024, as compared to $6.5 million for the quarter ended March 31, 2023. Revenue from Platform Services decreased by $0.25 million, or 74% to $0.08 million for the quarter ended March 31, 2024, as compared to $0.33 million for the quarter ended March 31, 2023.
Reworded paragraphs (18)
Previous wording
The Company was formed on October 29, 2019, as a Nevada corporation and then converted into a Delaware corporation on April 24, 2020, to provide IT and data services to the Healthcare and Life Sciences (“HCLS”) industry. The business commenced on January 1, 2020, after the Parent transferred its Life Sciences business to us. As of March 31, 2024, we had a total of 23 full time employees, 125 sub-contractors, including 95 certified cloud engineers, 23 Epic Certified EHR experts and 23 MEDITECH Certified EHR experts. Many of the senior management team and the members of our board of directors hold advanced degrees and some are leading experts in software development, regulatory science, and market access. During the quarter ended March 31, 2024, we generated revenues of approximately $4.1 million compared to revenue of $9.8 million for the quarter ended March 31, 2023 which represents a decrease of $5.7 million or 58% compared to the previous year.
Current wording
The Company was formed on October 29, 2019, as a Nevada corporation and then converted into a Delaware corporation on April 24, 2020, to provide IT and data services to the Healthcare and Life Sciences (“HCLS”) industry. The business commenced on January 1, 2020, after the Parent transferred its Life Sciences business to us. As of June 30, 2024, we had a total of 22 full time employees, 114 sub-contractors, including 90 certified cloud engineers, 19 Epic Certified EHR experts and 16 MEDITECH Certified EHR experts. Many of the senior management team and the members of our board of directors hold advanced degrees and some are leading experts in software development, regulatory science, and market access. During the quarter ended June 30, 2024, we generated revenues of approximately $ 2.9 million compared to revenue of $ 8.5 million for the quarter ended June 30, 2023 which represents decrease of $ 5.6 million or 65% compared to the previous year.
Previous wording
We offer a comprehensive suite of software, solutions, platforms, and services that enables some of the world’s leading healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to real-world evidence, and accelerate their digital transformation. We combine our expertise in the healthcare technology domain, cloud technologies, DevOps and automation, data engineering, advanced analytics, security, compliance, and governance to deliver platforms and solutions that drive improved results in the complex workflows of Life Sciences, biotech, healthcare providers, and payers. Our differentiated solutions, enabled by our intellectual property and delivered as a service, provide advanced analytics, data science applications, and data aggregation in these highly regulated environments in a more compliant, secure, and cost-effective manner to our customers.
Current wording
We offer a comprehensive suite of software, solutions, platforms, and services that enables some of the world’s leading healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to real-world evidence, and accelerate their digital transformation. We combine our expertise in the healthcare technology domain, cloud technologies, DevOps and automation, data engineering, advanced analytics, AI/ML, IoT, security, compliance, and governance to deliver platforms and solutions that drive improved results in the complex workflows of Life Sciences, biotech, healthcare providers, and payers. Our differentiated solutions, enabled by our intellectual property and delivered as a service, provide advanced analytics, data science applications, and data aggregation in these highly regulated environments in a more compliant, secure, and cost-effective manner to our customers.
Previous wording
Managed Services and Support include post implementation support and cloud hosting. Managed Services and Support are a distinct performance obligation. Revenue for Managed Services and Support is recognized rateably over the life of the contract.
Current wording
Managed Services and Support include post implementation support and cloud hosting. Managed Services and Support are a distinct performance obligation. Revenue for Managed Services and Support is recognized ratably over the life of the contract.
Previous wording
SaaS revenues will be recognized rateably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements will be considered service contracts, and the customer will not have the right to take possession of the software Segment wise revenue breakup.
Current wording
SaaS revenues will be recognized ratably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer. Our subscription arrangements will be considered service contracts, and the customer will not have the right to take possession of the software Segment wise revenue breakup.
Previous wording
Our top 5 customers accounted for 70% of the revenue in quarter ended March 31, 2024, and 80% during quarter ended March 31, 2023, respectively.
Current wording
Our top 5 customers accounted for 68% of the revenue in quarter ended June 30, 2024, and 81% during quarter ended June 30, 2023, respectively.
Previous wording
Top Five Customers Revenue for three months ended Mach 31 2024 and 2023.
Current wording
Top Five Customers Revenue for three months ended June 30, 2024 and 2023.
Previous wording
Cost of revenue, excluding depreciation and amortization decreased by $5.1 million, or 62%, to $3.1 million for the quarter ended March 31, 2024, as compared to $8.2 million for the quarter ended March 31, 2023.
Current wording
Cost of revenue, excluding depreciation and amortization decreased by $4.5 million, or 68%, to $2.1 million for the quarter ended June 30, 2024, as compared to $6.6 million for the quarter ended June 30, 2023. The reduction is in proportion to reduction to revenue.
Previous wording
General and administrative expenses decreased by $0.4 million, or 28% to $1.2 million for the quarter ended March 31, 2024, as compared to $1.6 million for the quarter ended March 31, 2023. The decrease is due to reduction in manpower costs and D&O Insurance.
Current wording
General and Administrative expenses decreased by $0.7 million, or 44% to $0.9 million for the quarter ended June 30, 2024, as compared to $1.6 million for the quarter ended June 30, 2023, this is primarily due to reduction in headcount.
Previous wording
Depreciation and amortization expenses decreased by $0.3 million, or 39% to $0.5 million for the quarter ended March 31, 2024, as compared to $0.8 million for the quarter ended March 31, 2023. The decrease is due to accelerated write-off of intangibles in Q4FY23.
Current wording
Depreciation and amortization expenses decreased by $0.2 million, or 33% to $0.5 million for the quarter ended June 30, 2024, as compared to $0.8 million for the quarter ended June 30, 2023, this primarily due to completion of useful life for Customer relationships and Product Development.
Previous wording
Income tax expenses decreased by $0.01 million, or 74% to $0.005 million for the quarter ended March 31, 2024, as compared to $0.19 million for the quarter ended March 31, 2023.
Current wording
Income tax increased by $0.004 million, or 80% to $0.001 million for the quarter ended June 30, 2024, as compared to $0.005 million for the quarter ended June 30, 2023.
Previous wording
Cost of revenue from Software services decreased by $3.9 million, or 70% to $1.6 million for the quarter ended March 31, 2024, as compared to $5.5 million for the quarter ended March 31, 2023. Cost of revenue from Managed services and support decreased by $1.0 million, or 43% to $1.4 million for the quarter ended March 31, 2024, as compared to $2.5 million for the quarter ended March 31, 2023. Cost of revenue from Platform services decreased by $0.2 million, or 79% to $0.058 million for the quarter ended March 31, 2024, as compared to $0.26 million for the quarter ended March 31, 2023.
Current wording
Cost of Revenue from Software Services decreased by $3.7 million, or 88% to $0.5 million for the quarter ended June 30, 2024, as compared to $4.2 million for the quarter ended June 30, 2023. Cost of Revenue from Managed Services and Support decreased by $0.5 million, or 24% to $1.5 million for the quarter ended June 30, 2024, as compared to $2 million for the quarter ended June 30, 2023. Cost of Revenue from Platform Services decreased by $0.2 million, or 85% to $0.04 million for the quarter ended June 30, 2024, as compared to $0.29 million for the quarter ended June 30, 2023.
Previous wording
Operating loss from Software services decreased by $0.5 million, or 47% to $0.5 million for the quarter ended March 31, 2024, as compared to operating loss of $1.1 million for the quarter ended March 31, 2023. Operating profit from Managed services and support decreased by $0.03 million, or 5% to $0.58 million for the quarter ended March 31, 2024, as compared to $0.55 million for the quarter ended March 31, 2023. Operating profit from Platform services increased by $0.4 million, or 79% to $0.09 million for the quarter ended March 31, 2024, as compared to a loss of $0.5 million for the quarter ended March 31, 2023.
Current wording
Operating loss from Software Services decreased by $0.5 million, or 74% to $0.2 million for the quarter ended June 30, 2024, as compared to operating loss of $0.64 million for the quarter ended June 30, 2023. Operating profit from Managed Services and Support decreased by $0.1 million, or 14% to $0.7 million for the quarter ended June 30, 2024, as compared to $0.8 million for the quarter ended June 30, 2023. Operating loss from Platform Services increased by $0.3 million, or 315% to $0.2 million for the quarter ended June 30, 2024, as compared to $ 0.08 million for the quarter ended June 30, 2023.
Previous wording
The Company’s current debt equity ratio, based on the three months ended March 31, 2024, financial statement is (5.25), for the quarter ended March 31, 2024, compared to 8.02 for the quarter ended December 31, 2023.
Current wording
The Company’s current debt equity ratio, based on the three months ended June 30, 2024, financial statement is -3.54, for the quarter ended June 30, 2024, compared to 9.80 for the quarter ended December 31, 2023. A debt-to-equity ratio below 1 means that a company has lower exposure to debts than equity.
Previous wording
As of March 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents of $0.3 million. We believe that the future operating cash flows of the entity will provide adequate resources to fund ongoing cash requirements. If sources of liquidity are not available or if we cannot generate sufficient cash flow from operations during the next twelve months, we may be required to obtain additional sources of funds through additional operational improvements, capital market transactions, asset sales or financing from third parties, a combination thereof or otherwise. We cannot provide assurance that these additional sources of funds will be available or, if available, would have reasonable terms.
Current wording
As of June 30, 2024, our principal sources of liquidity consisted of cash and cash equivalents of $0.03 million. We believe that our cash and cash equivalents as of June 30, 2024, and the future operating cash flows of the entity will provide adequate resources to fund ongoing cash requirements. If sources of liquidity are not available or if we cannot generate sufficient cash flow from operations during the next twelve months, we may be required to obtain additional sources of funds through additional operational improvements, capital market transactions, asset sales or financing from third parties, a combination thereof or otherwise. We cannot provide assurance that these additional sources of funds will be available or, if available, would have reasonable terms.
Previous wording
As of March 31, 2024, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.3 million.
Current wording
As of June 30, 2024, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.03 million.
Previous wording
Net cash used in operating activities during the three months ended March 31, 2024, was $(0.05) million compared to $(1.6) million for the three months ended March 31, 2023.
Current wording
Net Cash generated (used) by operating activities during the six months ended June 30, 2024, was $ (0.99) million compared to $(2.75) million for the six months ended June 30, 2023.
Previous wording
Net cash used in investing activities was zero for the three months ended March 31, 2024, compared to $ (0.004) million for the three months ended March 31, 2023.
Current wording
Net cash used in investing activities was $0 for the six months ended June 30, 2024, and $ (0.002) million for the six months ended June 30, 2023.
Previous wording
Cash (outflow)/inflow from financing activities was ($0.9) million for the three months ended March 31, 2024, compared to $0.5 million for the three months ended March 31, 2023.
Current wording
Cash (outflow)/inflow from financing activities was $(0.22) million for the six months ended June 30, 2024, and $1.5 million for the six months ended June 30, 2023.