Healthcare Triangle, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 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.
Jun 30, 2025 · Filed Aug 14, 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 2025-03-31; filed 2025-05-20.
0001213900-25-045994
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-076686
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 106 previous paragraphs and 113 current paragraphs.
72 unchanged; 29 reworded; 12 added; 4 removed; 1 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 (12)
Current report
Subsequent to the quarter ended June 30, 2025, the Company effected a [1-for 249] reverse split of its issued and outstanding common stock on August 01, 2025. The reverse split reduced the number of issued and outstanding shares of common stock in proportion to the split ratio, without changing the total authorized shares or the par value per share.
Current report
On June 16, 2025, Healthcare Triangle, Inc. through its wholly owned subsidiary Quantum Nexus Inc. (the “Company”) and Niyama Healthcare, Inc., a Delaware corporation, a provider of Mental Health and Hospital Information Systems technology, across India, South East Asia, and Europe (the “Seller”) entered into an Asset Transfer Agreement (the “Agreement”). Pursuant to the Agreement, the Company agreed to purchase from the Seller the Transferred Assets (as defined below), and (ii) the Seller’s 100% shareholder equity interest in Ezovion Solutions Private Limited, Chennai, India - Hospital Information Systems SaaS Provider as Seller’s Equity (the “Transferred Equity”), as a whole and as a going concern in exchange for the Purchase Price (as defined below). The acquisition closed on June 16, 2025.
Current report
The total consideration for the acquisition, which is referred to herein as the “Purchase Price” is $5.7 million which includes: (1) $1.5 million in cash, of which $1.2 million is due on the Closing Date and $300,000 to be paid at the later of the satisfaction of certain withholding requirements or within 120 days of the Closing Date; during the quarter ended June 30, 2025, the Company made a payment of $0.6 million out of the $1.5 million obligation. The remaining balance of $0.9 million is recognized as payable as at June 30, 2025. (2) 1,388,041 shares of restricted common stock of the Company equal to $3,000,000 divided by $2.16, issued on the Closing Date; and (3) up to $1.2 million in earn-out payments contingent on first-year financial performance targets to be agreed upon within 90 days of the Closing Date.
Current report
The final determination of the fair values, purchase consideration, related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period of up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during the measurement period will be recorded in the reporting period in which the adjustment is determined.
Current report
In the current period, the gross margin generated by the Company has been reduced to 14% and 11% in the 3 months and 6 months ended June 30 th, 2025, as compared to 30% and 27% in the 3 months and 6 months ended June 30 th, 2024, respectively. This is due to the acquisition and onboarding of the SecureKloud contracts, which had been negotiated at lower margins prior to the acquisition. Going forward, all new contracts are being negotiated at higher margins and as a result we expect that profit margins to increase materially over the next few quarters.
Current report
Research and Development expenses decreased by $0.15 million, or 73% to $0.05 million for the quarter ended June 30, 2025, as compared to $0.21 million for the quarter ended June 30, 2024.
Current report
Interest expenses decreased by $0.11 million, or 84% to $0.13 million for the quarter ended June 30, 2025, as compared to $0.02 million for the quarter ended June 30, 2024.
Current report
Cost of revenue from Software services increased by $1.35 million, or 273% to $1.85 million for the quarter ended June 30, 2025, as compared to $0.49 million for the quarter ended June 30, 2024. Cost of revenue from Managed Services and Support decreased by $0.39 million, or 25% to $1.16 million for the quarter ended June 30, 2025, as compared to $1.55 million for the quarter ended June 30, 2024. Cost of revenue from Platform Services increased by $0.01 million, or 31% to $0.05 million for the quarter ended June 30, 2025, as compared to $0.04 million for the quarter ended June 30, 2024.
Current report
Operating results by Operating Segment
Current report
Due from Affiliates
Current report
On January 1, 2025, the Company entered into a Master Service Agreement with Securekloud Technologies Inc. (“SKI”) and Securekloud Technologies Limited (“SKL). The initial term of the agreement is twenty-four months, which is extendable based on mutual consent. As per the Master Services Agreement, SKI and SKL provide technical resources according to the statement of work from the Company. The Company received services amounting to $1,025 and $755 for the quarter ended June 30, 2025, and 2024 respectively and $2,020 and $1,568 for the six months ended June 30, 2025 and 2024 respectively, while the Company made advance payments amounting to $4,843 during the six months ended June 30, 2025. As at June 30, 2025, the due from affiliates balance of $3,320 represents advance payments to the affiliates which is expected to be settled within six months from the balance sheet date.
Current report
On January 1, 2025, the Company entered into a Rental Sublease Agreement with Securekloud Technologies Inc. (“SKI”), The initial term of the agreement between SKI and the principal lessor is twenty-four months, which is extendable based on mutual consent. As per the terms of the Rental Sublease Agreement, the cost incurred by SKI on behalf of the Company are settled at cost. The Company paid rental expenses amounting to $15 and $34 for the quarter ended June 30, 2025, and 2024 respectively and $59 and $67 for the six months ended June 30, 2025 and 2024 respectively.
Removed paragraphs (4)
Previous report
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 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.
Previous report
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 report
Operating profit by Operating Segment
Reworded paragraphs (29)
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 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.
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 June 30, 2025, we had a total of 44 full time employees and 34 sub-contractors, including 18 certified cloud engineers, 6 Epic Certified EHR experts, 8 MEDITECH Certified EHR experts and 2 Admin sub-contractors. 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
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 wording
During the quarter ended June 30, 2025, the Company generated revenues of approximately $3.5 million compared to revenue of $2.9 million for the quarter ended June 30, 2024 which represents an increase of $0.6 million or 21% compared to the previous year.
Previous wording
Our deep expertise in healthcare allows us to reinforce our clients’ progress by accelerating their innovation. Our healthcare IT services include Electronic Health Records (EHR) and software implementation, optimization, extension to community partners, as well as application managed services, and backup and disaster recovery capabilities on public cloud. Our 24x7 managed services are used by hospitals and health systems, payers, Life Sciences, and biotech organizations in their effort to improve health outcomes and deliver deeper, more meaningful patient and consumer experiences. Through our services, our customers achieve a return on investment in their technology by delivering measurable improvements. Combined with our software and solutions, our services provide clients with an end-to-end partnership for their technology innovation.
Current wording
Our deep expertise in healthcare technology allows us to reinforce our clients’ progress by accelerating their innovation. Our healthcare IT services include Electronic Health Records (EHR) and software implementation, optimization, extension to community partners, as well as application managed services, and backup and disaster recovery capabilities on public cloud. Our 24x7 managed services are used by hospitals and health systems, payers, Life Sciences, and biotech organizations in their effort to improve health outcomes and deliver deeper, more meaningful patient and consumer experiences. Through our services, our customers achieve a return on investment in their technology by delivering measurable improvements. Combined with our software and solutions, our services provide clients with an end-to-end partnership for their technology innovation.
Previous wording
We need to continuously invest in sales, and marketing to promote our solutions to new and existing customers in various geographies, and other operational and administrative functions in systems, controls and governance to support our expected growth and our transition to a public company. We anticipate that our employee strength will increase because of these investments.
Current wording
We need to continuously invest in sales, and marketing to promote our solutions to new and existing customers in various geographies, and other operational and administrative functions in systems, controls and governance to support our expected growth and our transition to a public company. We anticipate that our employee strength will increase over time because of such investments.
Previous wording
The key factor to our success in generating substantial recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our SaaS offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI, and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription revenue from these offerings will have a material impact on our revenue growth.
Current wording
The key factor to our success in generating substantial recurring subscription revenues in future will be our ability to successfully market and persuade new customers to adopt our Software as a Service (“SaaS”) offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI, and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription revenue from these offerings will have a material impact on our revenue growth.
Previous wording
Platform Services from CloudEz, DataEz are offered both as a solution delivery model and as Software as a Service (SaaS) on a subscription model. readbl.ai is offered only as Software as a Service (SaaS) on a subscription model.
Current wording
Platform Services from CloudEz, DataEz are offered both as a solution delivery model and as SaaS on a subscription model, whereas Readbl.ai is offered only as SaaS, on a subscription model.
Previous wording
The revenue from solutions delivery model contains a series of separately identifiable and distinct services that represent performance obligations that are satisfied over time. During the periods presented the company generated Platform revenue on SaaS, which is recurring revenue.
Current wording
The revenue from solutions delivery model contains a series of separately identifiable and distinct services that represent performance obligations which are satisfied over time. During the periods presented, the company generated Platform revenue on SaaS, which is recurring revenue.
Previous wording
We expect to continue our focus on developing new product offerings and enhancing our existing product offerings. As a result, we expect our research and development expense to increase in absolute dollars, although it may vary from period to period as a percentage of revenue.
Current wording
We expect to continue our focus on developing new product offerings and enhancing our existing product offerings. As a result, we expect our future research and development expense to increase in absolute dollars, although it may vary from period to period as a percentage of revenue.
Previous wording
We expect our sales and marketing expenses to continue to increase in absolute dollar terms as we strategically invest to expand our business, although it may vary from period to period as a percentage of total revenues.
Current wording
We expect our future sales and marketing expenses to continue to increase in absolute dollar terms as we strategically invest to expand our business, although it may vary from period to period as a percentage of total revenues.
Previous wording
Our depreciation and amortization expense consists primarily of depreciation of fixed assets, amortization of Customer relationship and capitalized software development costs, and amortization of intangible assets. We expect our depreciation and amortization expense to increase as we expand our business organically and through acquisitions.
Current wording
Our depreciation and amortization expense consists primarily of depreciation of fixed assets, amortization of customer relationship and capitalized software development costs, and amortization of intangible assets. We expect our depreciation and amortization expense to increase as we continue to invest and expand our business organically and through acquisitions.
Previous wording
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 wording
Revenue increased by $0.6 million, or 19% to $3.5 million for the quarter ended June 30, 2025, as compared to $2.9 million for the quarter ended June 30, 2024.. 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 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.
Current wording
Our top 5 customers accounted for 58% of the revenue in quarter ended June 30, 2025, and 68% during quarter ended June 30, 2024, respectively.
Previous wording
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 wording
Total revenue from Customer 1 decreased by $0.2 million, or 24% to $0.71 million for the quarter ended June 30, 2025, as compared to $0.93 million for the quarter ended June 30, 2024. Software Services revenue increased by $0.64 million or 997% to $0.7 million for the quarter ended June 30, 2025, as compared to $0.06 million for the quarter ended June 30, 2024. Managed Services and Support revenue decreased by $0.86 million, or 99% to $0.05 million for the quarter ended June 30, 2025, as compared to $0.86 million for the quarter ended June 30, 2024.
Previous 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.
Current wording
Cost of revenue, excluding depreciation and amortization increased by $0.98 million, or 47%, to $3.0 million for the quarter ended June 30, 2025, as compared to $2.0 million for the quarter ended June 30, 2024.
Previous 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.
Current wording
Sales and Marketing expenses decreased by $0.01 million, or 2% to $0.62 million for the quarter ended June 30, 2025, as compared to $0.63 million for the quarter ended June 30, 2024.
Previous wording
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 wording
General and Administrative expenses increased by $0.29 million, or 31% to $1.2 million for the quarter ended June 30, 2025, as compared to $0.90 million for the quarter ended June 30, 2024.
Previous 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.
Current wording
Depreciation and Amortization expenses decreased by $0.53 million, or 100% to $0 million for the quarter ended June 30, 2025, as compared to $0.53 million for the quarter ended June 30, 2024.
Previous wording
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.
Current wording
Revenue from Software services increased by $1.4 million, or 217% to $2.1 million for the quarter ended June 30, 2025, as compared to $0.66 million for the quarter ended June 30, 2024. Revenue from Managed services and support decreased by $0.87 million, or 38% to $1.4 million for the quarter ended June 30, 2025, as compared to $2.3 million for the quarter ended June 30, 2024. Revenue from Platform Services increased by $0.002 million, or 2% to $0.07 million for the quarter ended June 30, 2025, as compared to $0.06 million for the quarter ended June 30, 2024.
Previous wording
Our strategy is to achieve meaningful long-term revenue growth through sales of Managed Services and Support and Platform Services to existing and new clients within our target market. In order to increase our cross-selling opportunity between our operating segments and realize long time revenue growth, our focus has shifted more towards Managed Services and Support and Platform Services which is of recurring nature when compared to Software Services segment which is of non-recurring nature. This also helps in retaining existing customers by leveraging our Managed Services and Support and Platform Services as a growth agent. This renewed focus on driving demand for subscription and platform-based model will help us in expanding our customer base and enhance customer retention which is a challenge for our existing Software Services segment. Software Services contracts are driven by Time and Material and on-site employees delivering services at customers location.
Current wording
Our strategy is to achieve meaningful long-term revenue growth through sales of Managed Services and Support and Platform Services to existing and new clients within our target market. In order to increase our cross-selling opportunity between our operating segments and realize long time revenue growth, our focus has shifted more towards Managed Services and Support and Platform Services which are of recurring nature when compared to Software Services segment which is of non-recurring nature. This also helps in retaining existing customers by leveraging our Managed Services and Support and Platform Services as a growth agent. This renewed focus on driving demand for subscription and platform-based model will help us in expanding our customer base and enhance customer retention which is a challenge for our existing Software Services segment. Software Services contracts are driven by Time and Material and on-site employees delivering services at customers location.
Previous wording
Segment operating profits by reportable segment were as follows:
Current wording
Segment operating results by reportable segment were as follows:
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 March 31, 2025 financial statement is 3 compared to 0.7 for the financial year ended December 31, 2024.
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 June 30, 2025 financial statement is 1.75 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 March 31, 2025 financial statement is .37, compared to (1.38) for the quarter ended December 31, 2024.
Current wording
The Company’s current debt equity ratio, based on the three months ended June 30, 2025 financial statement is 0.42, compared to (1.38) for the quarter ended December 31, 2024.
Previous wording
The Company does not have inventory and hence the quick ratio is the same as current ratio.
Current wording
The Company does not have inventory and hence the quick ratio is the same as the current ratio.
Previous 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.
Current wording
As of June 30, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $3.2 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 March 31, 2025, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $6.8 million.
Current wording
As of June 30, 2025, our principal sources of liquidity for working capital purposes were cash and cash equivalents totaling $3.2 million.
Previous wording
We have financed our operations primarily through financing activity and operating cash flows. We believe our existing cash, cash equivalents and short-term investments generated from operations will be sufficient to meet our working capital over the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the expansion of sales and marketing activities and the ongoing investments in platform development.
Current wording
We have financed our operations primarily through financing activity and operating cash flows. We believe our existing cash and cash equivalents generated from operations will be sufficient to meet our working capital over the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the expansion of sales and marketing activities and the ongoing investments in platform development.
Previous 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.
Current wording
Net cash used in operating activities during the six months ended June 30, 2025, was $(8.19) million compared to $(0.98) million for the six months ended June 30, 2024.
Previous 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.
Current wording
Net cash used in investing activities was $(0.60) million for the six months ended June 30, 2025 representing partial payment of the acquisition cost (see note 8), compared to $0 for the six months ended June 30, 2024.
Previous 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.
Current wording
Cash outflow/inflow from financing activities was $12.0 million for the six months ended June 30, 2025, compared to $(0.22) million for the six months ended June 30, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Three Months Ended March 31, 2025 and March 31, 2024.