Healthcare Triangle, Inc.
For the period ended Mar 31, 2025. Filed May 20, 2025.
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.
Mar 31, 2025 · Filed May 20, 2025
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 2024-09-30; filed 2024-11-14.
0001213900-24-098548
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-20.
0001213900-25-045994
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 114 previous paragraphs and 106 current paragraphs.
84 unchanged; 16 reworded; 6 added; 14 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
During the quarter ended March 31, 2025, the Company generated revenues of approximately $3.7 million compared to revenue of $4.1 million for the quarter ended March 31, 2024 which represents a decrease of $0.4 million or 10% compared to the previous year.
Current report
Revenue decreased by $0.4 million, or 10% to $3.7 million for the quarter ended March 31, 2025, as compared to $4.1 million for the quarter ended March 31, 2024. 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.
Current report
Revenue from Customer 1 decreased by $0.05 million, or 7% to $0.75 million for the quarter ended March 31, 2025, as compared to $0.80 million for the quarter ended March 31, 2024. Software services revenue decreased by $0.06 million or 8% to $0.72 million for the quarter ended March 31, 2025, as compared to $0.78 million for the quarter ended March 31, 2024. Managed Services and Support revenue increased by $0.01 million, or 65% to $0.03 million for the quarter ended March 31, 2025, as compared to $0.02 million for the quarter ended March 31, 2024.
Current report
General and administrative expenses increased by $0.02 million, or 2% to $1.2 million for the quarter ended March 31, 2025, as compared to $1.2 million for the quarter ended March 31, 2024.
Current report
Interest expenses increased by $0.26 million, or 177% to $0.41 million for the quarter ended March 31, 2025, as compared to $0.14 million for the quarter ended March 31, 2024.
Current report
Revenue from Software services decrease by $0.3 million, or 14% to $1.73 million for the quarter ended March 31, 2025, as compared to $2.02 million for the quarter ended March 31, 2024. Revenue from Managed services and support decreased by $0.1 million, or 5% to $1.9 million for the quarter ended March 31, 2025, as compared to $1.99 million for the quarter ended March 31, 2024. Revenue from Platform Services decreased by $0.18 million, or 20% to $0.70 million for the quarter ended March 31, 2025, as compared to $0.88 million for the quarter ended March 31, 2024.
Removed paragraphs (14)
Previous report
Impacts of the COVID-19 Pandemic
Previous report
The COVID-19 pandemic has had, and is likely to continue to have, a severe and unprecedented impact on the world and on our business. Measures to prevent its spread, including government-imposed restrictions on large gatherings, closures of face-to-face events, “shelter in place” health orders and travel restrictions have had a significant effect on certain of our business operations. In response to these business disruptions, which include a transition to remote working, reducing certain of our discretionary expenditures and eliminating non-essential travel particularly with respect to COVID-19 impacted operation and complying with health and safety guidelines to protect employees, contractors, and customers.
Previous report
There has been no major impact on account of COVID19 during the quarter ended September 30, 2024.
Previous report
The Company has obtained necessary funding to manage our short-term working capital requirements. The Company has not altered any credit terms with its customers and the realization from the customers have generally been on time. The Company has been able to service its debt and other obligations on time. There has been no material impact on the operational liquidity and capital resources on account of COVID-19.
Previous report
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 report
(In thousands, except percentages)
Previous report
(In thousands, except percentages)
Previous report
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 report
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 report
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 report
Provision for Income Taxes
Previous 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.
Previous report
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 report
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.
Reworded paragraphs (16)
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 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.
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 SecureKloud Technologies Inc, transferred its Life Sciences business to us. As of March 31, 2024, we had a total of 44 full time employees, 41 sub-contractors, including 24 certified cloud engineers, 6 Epic Certified EHR experts and 11 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 the field of technology, investment banking and public markets.
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, 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.
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, 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
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.
Current wording
Our top 5 customers accounted for 57% of the revenue in quarter ended March 31, 2025, and 70% during quarter ended March 31, 2024, respectively.
Previous 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.
Current wording
The following table has the breakdown of our revenues for the quarter ended March 31, 2025, and 2024 for each of our top 5 customers.
Previous 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.
Current wording
Cost of revenue, excluding depreciation and amortization increased by $0.28 million, or 9%, to $3.3 million for the quarter ended March 31, 2025, as compared to $3.0 million for the quarter ended March 31, 2024.
Previous 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.
Current wording
Research and development expenses increased by $0.01 million, or 13% to $0.14 million for the quarter ended March 31, 2025, as compared to $0.0.12 million for the quarter ended March 31, 2024.
Previous 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.
Current wording
Sales and marketing expenses decreased by $0.51 million, or 58% to $0.37 million for the quarter ended March 31, 2025, as compared to $0.88 million for the quarter ended March 31, 2024.
Previous 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.
Current wording
Depreciation and amortization expenses decreased by $0.52 million, or 98% to $0.01 million for the quarter ended March 31, 2025, as compared to $0.53 million for the quarter ended March 31, 2024.
Previous 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.
Current wording
Cost of revenue from Software services decreased by $0.08 million, or 5% to $1.54 million for the quarter ended March 31, 2025, as compared to $1.62 million for the quarter ended March 31, 2024. Cost of revenue from Managed services and support increase by $0.40 million, or 29% to $1.82 million for the quarter ended March 31, 2025, as compared to $1.41 million for the quarter ended March 31, 2024. Cost of revenue from Platform services decreased by $0.04 million, or 85% to $0.01 million for the quarter ended March 31, 2025, as compared to $0.05 million for the quarter ended March 31, 2024.
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 September 30, 2024, financial statement is 0.3 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 March 31, 2025 financial statement is 3 compared to 0.7 for the financial year ended December 31, 2024.
Previous 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.
Current wording
The Company’s current debt equity ratio, based on the three months ended March 31, 2025 financial statement is .37, compared to (1.38) for the quarter ended December 31, 2024.
Previous wording
As of September 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 September 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.
Current wording
As of March 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $6.8 million. We believe that the future operating cash flows of the entity will provide adequate resources to fund ongoing cash requirements.
Previous wording
As of September 30, 2024, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.03 million.
Current wording
As of March 31, 2025, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $6.8 million.
Previous 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.
Current wording
Net cash used in operating activities during the three months ended March 31, 2025, was $5.55 million compared to $0.05 million for the three months ended March 31, 2024.
Previous 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.
Current wording
Net cash used in investing activities was $0 for the three months ended March 31, 2025, compared to $0 million for the three months ended March 31, 2024.
Previous 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.
Current wording
Cash outflow/inflow from financing activities was $12.36 million for the three months ended March 31, 2025, compared to $(0.90) million for the three months ended March 31, 2024.