Healthcare Triangle Inc
For the period ended Sep 30, 2024. Filed Nov 14, 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.
Sep 30, 2024 · Filed Nov 14, 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 2024-06-30; filed 2024-08-19.
0001213900-24-070692
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001213900-24-098548
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 114 current paragraphs.
91 unchanged; 19 reworded; 4 added; 1 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 (4)
Current report
(In thousands, except percentages)
Current report
(In thousands, except percentages)
Current report
Income tax decreased by $0.002 million, or 50% to $0.002 million for the quarter ended September 30, 2024, as compared to $0.004 million for the quarter ended September 30, 2023.
Current report
Operating profit by Operating Segment
Removed paragraphs (1)
Previous report
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.
Reworded paragraphs (19)
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 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.
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 September 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 September 30, 2024, we generated revenues of approximately $ 2.4 million compared to revenue of $ 7.8 million for the quarter ended September 30, 2023 which represents decrease of $ 5.4 million or 69% compared to the previous year.
Previous wording
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 wording
Revenue decreased by $5.4 million, or 69% to $2.4 million for the quarter ended September 30, 2024, as compared to $7.8 million for the quarter ended September 30, 2023. Revenue from Software Services, Managed Services and support and Platform services have reduced resulting in decrease in revenue. The revenue reduction is due to a loss of revenue from a major customer.
Previous 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.
Current wording
Our top 5 customers accounted for 61% of the revenue in quarter ended September 30, 2024, and 79% during quarter ended September 30, 2023, respectively.
Previous wording
The following table has the breakdown of our revenues for the quarter ended June 30, 2024, and 2023 for each of our top 5 customers. Two of the top 5 customers in 2024 are not the same for 2023.
Current wording
The following table has the breakdown of our revenues for the quarter ended September 30, 2024, and 2023 for each of our top 5 customers. Top 5 customers in 2024 are not the same for 2023.
Previous wording
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 wording
Revenue from Customer 1 has decreased by $3.7 million, or 88% to $0.5 million for the quarter ended September 30, 2024, as compared to $4.2 million for the quarter ended September 30, 2023.The top customer 1 is not the same for September 2024.
Previous 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.
Current wording
Cost of revenue, excluding depreciation and amortization decreased by $4.4 million, or 72%, to $1.7 million for the quarter ended September 30, 2024, as compared to $6.1 million for the quarter ended September 30, 2023. The reduction is in proportion to reduction to revenue.
Previous wording
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 wording
Research and Development expenses increased by $0.2 million, or 224% to $0.21 million for the quarter ended September 30, 2024, as compared to $0.05 million for the quarter ended September 30, 2023. The cost has increased on account of new research being done on readabl.ai.
Previous wording
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 wording
Sales and Marketing expenses decreased by $0.8 million, or 73% to $0.3 million for the quarter ended September 30, 2024, as compared to $1.1 million for the quarter ended September 30, 2023, this is primarily due to reduction in headcount and stock compensation expenses.
Previous 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.
Current wording
General and Administrative expenses decreased by $0.3 million, or 21% to $1.1 million for the quarter ended September 30, 2024, as compared to $1.4 million for the quarter ended September 30, 2023, this is primarily due to reduction in headcount.
Previous 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.
Current wording
Depreciation and amortization expenses decreased by $0.4 million, or 52% to $0.4 million for the quarter ended September 30, 2024, as compared to $0.7 million for the quarter ended September 30, 2023, this primarily due to completion of useful life for Customer relationships and Product Development.
Previous wording
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 wording
Interest expenses increased by $0.3 million, or 81% to $0.08 million for the quarter ended September 30, 2024, as compared to $0.42 million for the quarter ended September 30, 2023, the decrease was due to repayment of funding acquired.
Previous wording
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.
Current wording
Revenue from Software Services decreased by $4.1 million, or 84% to $0.8 million for the quarter ended September 30, 2024, as compared to $5.0 million for the quarter ended September 30, 2023. Revenue from Managed Services and Support decreased by $0.9 million, or 36% to $1.6 million for the quarter ended September 30, 2024, as compared to $2.5 million for the quarter ended September 30, 2023. Revenue from Platform Services decreased by $0.3 million, or 84% to $0.07 million for the quarter ended September 30, 2024, as compared to $0.4 million for the quarter ended September 30, 2023.
Previous 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.
Current wording
Cost of Revenue from Software Services decreased by $3.5 million, or 87% to $0.5 million for the quarter ended September 30, 2024, as compared to $4.1 million for the quarter ended September 30, 2023. Cost of Revenue from Managed Services and Support decreased by $0.6 million, or 36% to $1.1 million for the quarter ended September 30, 2024, as compared to $1.7 million for the quarter ended September 30, 2023. Cost of Revenue from Platform Services decreased by $0.2 million, or 83% to $0.04 million for the quarter ended September 30, 2024, as compared to $0.25 million for the quarter ended September 30, 2023.
Previous 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.
Current wording
Operating loss from Software Services decreased by $0.5 million, or 74% to ($0.2) million for the quarter ended September 30, 2024, as compared to operating loss of $0.7 million for the quarter ended September 30, 2023. Operating profit from Managed Services and Support decreased by $0.2 million, or 29% to $0.5 million for the quarter ended September 30, 2024, as compared to $0.7 million for the quarter ended September 30, 2023. Operating loss from Platform Services increased by $0.2 million, or 249% to ($0.1) million for the quarter ended September 30, 2024, as compared to $ 0.1 million for the quarter ended September 30, 2023.
Previous wording
The current ratio measures a company’s ability to pay off its current liabilities (payable within one year) with its total current assets such as cash, accounts receivable, and inventories. The higher the ratio, the better the company’s liquidity position. A good current ratio is between 1.2 to 2, which means that a business has 2 times more current assets than liabilities to covers its debts. The Company’s current ratio, based on the three months ended June 30, 2024, financial statement is 0.5 compared to 0.7 for the financial year ended December 31, 2023.
Current wording
The current ratio measures a company’s ability to pay off its current liabilities (payable within one year) with its total current assets such as cash, accounts receivable, and inventories. The higher the ratio, the better the company’s liquidity position. A good current ratio is between 1.2 to 2, which means that a business has 2 times more current assets than liabilities to covers its debts. The Company’s current ratio, based on the three months ended September 30, 2024, financial statement is 0.3 compared to 0.7 for the financial year ended December 31, 2023.
Previous 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.
Current wording
The Company’s current debt equity ratio, based on the three months ended September 30, 2024, financial statement is -1.33, for the quarter ended September 30, 2024, compared to 8.99 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
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.
Current wording
Net Cash generated (used) by operating activities during the six months ended September 30, 2024, was $(0.03) million compared to $(2.86) million for the six months ended September 30, 2023.
Previous 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.
Current wording
Net cash used in investing activities was $0 for the six months ended September 30, 2024, and $ (0.007) million for the six months ended September 30, 2023.
Previous 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.
Current wording
Cash (outflow)/inflow from financing activities was $(1.1) million for the six months ended September 30, 2024, and $1.5 million for the six months ended September 30, 2023.