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What changed in Healthcare Triangle, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Healthcare Triangle, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+102 added−93 removedSource: 10-K (2025-03-31) vs 10-K (2024-03-18)

Top changes in Healthcare Triangle, Inc.'s 2024 10-K

102 paragraphs added · 93 removed · 82 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe are a leading partner of Google Cloud and a Gold Cloud Partner of Microsoft Azure Cloud. HTI, along with the Parent, is currently one of the top tier Healthcare and Life Sciences competency partners of AWS among more than 100,000 partners in their global community of partners.
Biggest changeHTI, along with SecureKloud, is currently one of the top tier Healthcare and Life Sciences competency partners of AWS among more than 100,000 partners in their global community of partners. The Company is also recognized as one of the top eight partners of Google Cloud Healthcare Interoperability Readiness Program. The Company has also established partnerships with Medical Information Technology, Inc.
Our Parent is 60.71% owned by SecureKloud Technologies Ltd., an Indian company that is publicly traded in India. 2 We are led by a diverse, global, and talented team of data scientists, thought leaders, software developers, and subject matter experts who seek to understand our customers’ challenges and are dedicated to tackling these challenges.
SecureKloud is 60.71% owned by SecureKloud Technologies Ltd., an Indian company that is publicly traded in India. 2 We are led by a diverse, global, and talented team of data scientists, thought leaders, software developers, and subject matter experts who seek to understand our customers’ challenges and are dedicated to tackling these challenges.
Cloud IT Services Cloud IT is a service offering that we provide that incorporates several of our existing technological platforms. Below are several of the benefits of our Cloud IT service: 1. Multi-Cloud Advisory: Our certified public cloud architects and engineers are highly experienced and successful in providing end-to-end cloud advisory and deployment services.
Cloud IT Services Cloud IT is a service that we provide that incorporates several of our existing technological platforms. Below are several of the benefits of our Cloud IT service: 1. Multi-Cloud Advisory: Our certified public cloud architects and engineers are highly experienced and successful in providing end-to-end cloud advisory and deployment services.
The platforms enable healthcare organizations to implement highly sophisticated value-based initiatives on a very large scale. At the core of value-based initiatives is the need to aggregate and analyse data, garner meaningful insight from the results, and use these insights to drive material change to outcomes and economics.
The platforms enable healthcare organizations to implement highly sophisticated value-based initiatives on a very large scale. At the core of value-based initiatives is the need to aggregate and analyze data, garner meaningful insight from the results, and use these insights to drive material change to outcomes and economics.
This reality has been particularly obvious during the COVID 19 pandemic. The NY Times recently highlighted that the fax machine continues to be a primary data communication tool in the fight against the virus. Healthcare organizations demand an advanced automation solution to easily convert paper-based unstructured data into meaningful information for patient care.
The NY Times recently highlighted that the fax machine continues to be a primary data communication tool in the fight against the virus. Healthcare organizations demand an advanced automation solution to easily convert paper-based unstructured data into meaningful information for patient care.
Our Healthcare IT services include systems selection, EHR implementation, post-implementation support to manage EHRs, legacy support, optimization, training, and creation of efficient EHR systems, and improvement of clinical outcomes for hospitals.
We conduct our business directly with hospitals and other healthcare providers. Our Healthcare IT services include systems selection, EHR implementation, post-implementation support to manage EHRs, legacy support, optimization, training, and creation of efficient EHR systems, and improvement of clinical outcomes for hospitals.
These cutting-edge solutions consist of a public cloud-based data lake where the data from various devices and sensors are ingested and stored through automated provisioning, and a scalable dashboard that is capable of monitoring hundreds of thousands of patients at a time based on the cloud-stored data. ● Clinical and Training Consulting: HTI also provides clinical and operational consultants to healthcare organizations to support the improvement of their business, clinical, and patient outcomes and experience. 10 Corporate Information Our principal executive office is located at 7901 Stoneridge Drive, Suite 220, Pleasanton, CA 94588.
These cutting-edge solutions consist of a public cloud-based data lake where the data from various devices and sensors are ingested and stored through automated provisioning, and a scalable dashboard that is capable of monitoring hundreds of thousands of patients at a time based on the cloud-stored data. ● Clinical and Training Consulting: HTI also provides clinical and operational consultants to healthcare organizations to support the improvement of their business, clinical, and patient outcomes and experience.
Background As of December 31, 2023, SecureKloud Technologies, Inc., f/k/a 8K Miles Software Services, Inc., a Nevada corporation (the “Parent”), owns approximately 59.18% of the Company.
Background As of December 31, 2024, SecureKloud Technologies, Inc., f/k/a 8K Miles Software Services, Inc., a Nevada corporation (“SecureKloud”), owns approximately 45% of the Company.
Analytics workbench enables agile analytics, by providing capabilities of data discovery, model building, model management, model consumption, visualization, and workflow management in an integrated platform to accelerate the data science life cycle using AI/ML algorithms as well as data analytics at scale.
Analytics workbench enables agile analytics, by providing capabilities of data discovery, model building, model management, model consumption, visualization, and workflow management in an integrated platform to accelerate the data science life cycle using AI/ML algorithms as well as data analytics at scale. 7 DataEz Platform Architecture: DataEz platform architecture is composed of various stages of data pipeline management including ingestion, quarantine, pre-curated, data curated, analytics/data warehouse, visualization/data warehouse and visualization/data science.
Our Parent was rated in 2021 by Solutions Review, an independent online magazine, as one of the 22 best AWS-managed services providers(1). The Company has several Fortune 500 clients in the Life Sciences industry and partners with many hospitals in their cloud transformation journey. We conduct our business directly with hospitals and other healthcare providers.
MEDITECH, Epic Systems, Splunk Inc., Snowflake Inc., Looker Inc. (acquired by Google), and other technology companies. SecureKloud was rated in 2021 by Solutions Review, an independent online magazine, as one of the 22 best AWS-managed services providers (1). The Company has several Fortune 500 clients in the Life Sciences industry and partners with many hospitals in their cloud transformation journey.
DataEz Platform Architecture: DataEz platform architecture is composed of various stages of data pipeline management including ingestion, quarantine, pre-curated, data curated, analytics/data warehouse, visualization/data warehouse and visualization/data science. 7 DataEz: Data Lake Management, Analytics & Data Science platform architecture diagram Readabl.AI Despite significant investments in electronic health records, paper-based unstructured data, such as faxes and clinical reports, remain the prevalent methods to share information about patients as they navigate the continuum of care.
DataEz: Data Lake Management, Analytics & Data Science platform architecture diagram Readabl.AI Despite significant investments in electronic health records, paper-based unstructured data, such as faxes and clinical reports, remain the prevalent methods to share information about patients as they navigate the continuum of care. This reality has been particularly obvious during the COVID 19 pandemic.
DevOps as a Service: Cloud DevOps, often also referred to as DevSecOps given the criticality of security of the cloud, is the IT methodology through which enterprises migrate and manage their platforms and solutions in a continuous fashion on the cloud. healthcare enterprise IT leadership can rely on HTI’s turnkey managed services, strategic advisory services, proven methodology, automation capabilities, and expertise to steadily migrate their IT assets to the cloud. 3.
DevOps as a Service: Cloud DevOps, often also referred to as DevSecOps given the criticality of security of the cloud, is the IT methodology through which enterprises migrate and manage their platforms and solutions in a continuous fashion on the cloud.
Ransomware Protection: We are taking a proactive role in educating and equipping rural hospitals, community hospitals, and large health systems with critical resources for improving their preparedness, prevention, detection, response, and recovery from ransomware incidents.
Our solution specifically serves the MEDITECH market today. MEDITECH BU/DR solution will soon be available on AWS marketplace for healthcare customers. 5. Ransomware Protection: We are taking a proactive role in educating and equipping rural hospitals, community hospitals, and large health systems with critical resources for improving their preparedness, prevention, detection, response, and recovery from ransomware incidents.
The US healthcare cloud transformation services market will grow to $30B by 2027 with 17.4% CAGR as per Absolution Market Insights (2) . Bloomberg business report estimates that the global market for healthcare data science and analytics will be $40B by 2025 with a CAGR of 23.5% (3) .
The US healthcare cloud transformation services market is expected to grow to $34.4 billion by 2033 with 12.1% CAGR during the period 2025 to 2033 as per IMARC Group (2). SkyQuest business report estimates that the global market for healthcare data science and analytics will be $266.6 billion by 2032 with a CAGR of 25.6% (3).
The US healthcare IT services market is estimated to be $149B by 2025 with a CAGR 11.7% as per Allied Market Research (4) . The medical document management market is estimated to be $555M by 2025 as per Market Data Forecast (5) .
The US healthcare IT services market is estimated to be $395.2 billion by 2030 with a CAGR 15.46% as per Grand View Research (4). The medical document management market is estimated to be $1.1 billion by 2032 as per Markets and Markets.
Healthcare Cloud Backup and Disaster Recovery (BU/DR): Our cloud disaster recovery solution is a fully managed infrastructure solution that enables hospitals to host their DR instances on public cloud platforms such as AWS. Our solution specifically serves the MEDITECH market today. MEDITECH BU/DR solution will soon be available on AWS marketplace for healthcare customers. 5.
By implementing automated BOTs, our operations centre ensures our clients have a de-risked cloud environment by ensuring continuous security and regulatory compliance. 4. Healthcare Cloud Backup and Disaster Recovery (BU/DR): Our cloud disaster recovery solution is a fully managed infrastructure solution that enables hospitals to host their DR instances on public cloud platforms such as AWS.
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. The Company, along with the Parent, is a born-on-the-cloud Premier Partner of AWS and an audited next generation MSP.
As of December 31, 2024, we had a total of 36 full time employees, 24 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 software development, regulatory science, and market access.
Cloud Security Operations Centre (SOC): CloudEz comes with advanced AI/ML-enabled alerts and monitoring services over and across the enterprise cloud environment. By implementing automated BOTs, our operations centre ensures our clients have a de-risked cloud environment by ensuring continuous security and regulatory compliance. 4.
Healthcare enterprise IT leadership can rely on HTI’s turnkey managed services, strategic advisory services, proven methodology, automation capabilities, and expertise to steadily migrate their IT assets to the cloud. 3. Cloud Security Operations Centre (SOC): CloudEz comes with advanced AI/ML-enabled alerts and monitoring services over and across the enterprise cloud environment.
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As of December 31, 2023, we had a total of 33 full time employees, 164 sub-contractors, including 95 certified cloud engineers, 66 Epic Certified EHR experts and 21 MEDITECH Certified EHR experts.
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The Company, along with SecureKloud, is a born-on-the-cloud Premier Partner of AWS and an audited next generation MSP. We are a leading partner of Google Cloud and a Gold Cloud Partner of Microsoft Azure Cloud.
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The Company is also recognized as one of the top eight partners of Google Cloud Healthcare Interoperability Readiness Program. The Company has also established partnerships with Medical Information Technology, Inc. MEDITECH, Epic Systems, Splunk Inc., Snowflake Inc., Looker Inc. (acquired by Google), and other technology companies.
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Nasdaq Deficiency and Potential Reverse Stock-Split On February 24, 2025, Healthcare Triangle, Inc.'s Board of Directors unanimously adopted resolutions approving, declaring advisable and recommending to the stockholders for their approval a proposal to authorize the Board of Directors, in its discretion, to amend our Amended and Restated Certificate of Incorporation to effect a reverse stock split of our issued and outstanding Common Stock at a ratio of up to and including 250:1, such ratio to be determined by the Board of Directors, including any increase in our authorized capital required in the event a fractional share will be created as a result of the reverse stock split.
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On February 24, 2025, the majority stockholders of the Company approved the reverse stock split, granting the Board of Directors the authority, without further action by the stockholders, to carry out such action, with the exact exchange ratio and timing to be determined at the discretion of the Board of Directors.
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The Board of Directors may determine in its discretion not to effect the reverse stock split and not to file any amendment to our Amended and Restated Certificate of Incorporation.
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The primary purpose for effecting the reverse stock split, should the Board of Directors choose to effect one, would be to increase the per share price of our Common Stock to regain compliance with the minimum bid price requirement for continued listing set forth in Nasdaq Listing Rule 5550(a)(2).
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On February 26, 2025, the Company received a letter (the "Bid Price Deficiency Notice”) from Nasdaq notifying the Company that, because the closing bid price for its common stock had been below $1.00 per share for 30 consecutive trading days, it was not compliant with the Minimum Bid Price Requirement.
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In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Company had a period of 180 calendar days, or until August 25, 2025, to regain compliance with the Minimum Bid Price Requirement.
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If at any time before August 25, 2025, the closing bid price of the Company’s common stock closed at or above $1.00 per share for a minimum of 10 consecutive trading days (which number days may be extended by Nasdaq), Nasdaq would provide written notification that the Company had achieved compliance with the Minimum Bid Price Requirement, and the matter would be resolved. 10 Corporate Information Our principal executive office is located at 7901 Stoneridge Drive, Suite 220, Pleasanton, CA 94588.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline. The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. Several analysts cover our stock.
Biggest changeThe trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. Several analysts cover our stock. If one or more of those analysts downgrade our stock or publish inaccurate or unfavorable research about our business, our stock price would likely decline.
We depend, in part, on our strategic partners’ ability to generate increased acceptance and use of our products and services. If we lose any of these strategic relationships or fail to establish additional relationships, or if our strategic relationships fail to benefit us as expected, this could materially and adversely impact our business, financial condition, and operating results.
We depend, in part, on our strategic partners’ ability to generate increased acceptance and use of our products and services. If we lose any of these strategic relationships or fail to establish additional relationships, or if our strategic relationships fail to benefit us as expected, this could materially and adversely impact on our business, financial condition, and operating results.
As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. 30 The elimination of personal liability against our directors and officers under Delaware law and the existence of indemnification rights held by our directors, officers and employees may result in substantial expenses.
As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. The elimination of personal liability against our directors and officers under Delaware law and the existence of indemnification rights held by our directors, officers and employees may result in substantial expenses.
It is also possible that such problems could result in losses of data. 13 Since our customers use our platforms and services for important aspects of their business, any errors, defects, disruptions, service degradations, or other performance problems with our solutions could hurt our reputation and may damage our customers’ businesses.
It is also possible that such problems could result in losses of data. 13 Since our customers use our platforms and services for important aspects of their business, any errors, defects, disruptions, service degradations, or other performance problems with our solutions could hurt our reputation and may damage our customers’ business.
If markets fail to develop, develop more slowly than expected, or become saturated with competitors, our business, financial condition, and operating results could be materially and adversely impacted. If the demand for cloud-based solutions declines, particularly in the Life Sciences industry, our revenues could decrease, and our business could be adversely affected.
If markets fail to develop, develop more slowly than expected, or become saturated with competitors, our business, financial condition, and operating results could be materially and adversely impacted. 27 If the demand for cloud-based solutions declines, particularly in the Life Sciences industry, our revenues could decrease, and our business could be adversely affected.
Also, whether there is an actual or a perceived breach of our security, our reputation could suffer irreparable harm, causing our current and prospective customers to reject our products and services in the future, deterring data suppliers from supplying us data or customers from using our services, or changing consumer behaviour adversely affecting our technology’s market coverage.
Also, whether there is an actual or a perceived breach of our security, our reputation could suffer irreparable harm, causing our current and prospective customers to reject our products and services in the future, deterring data suppliers from supplying us data or customers from using our services, or changing consumer behavior adversely affecting our technology’s market coverage.
If we are prevented by the Parent in the future from paying third parties less for services currently provided by the Parent or if the Parent is unable to provide us services it now provides, such events could have a material adverse effect on our business and financial condition.
If we are prevented by SecureKloud in the future from paying third parties less for services currently provided by SecureKloud or if SecureKloud is unable to provide us services it now provides, such events could have a material adverse effect on our business and financial condition.
The market price for our common stock may never exceed, and may fall below, the price that you pay for such common stock.
The market price for our common stock may never exceed, and may fall below, the price that you pay for such common stock. 31
Although we pay our Parent for these services at what we believe are market rates and were negotiated in good faith on an arms-length basis, if we became aware in the future of third parties that could provide such services on terms more favorable than the Parent, our Parent’s control over our Board and our Company could prevent us from obtaining these services on more favorable terms from such third parties or renegotiating the terms with our Parent.
Although we pay SecureKloud for these services at what we believe are market rates and were negotiated in good faith on an arms-length basis, if we became aware in the future of third parties that could provide such services on terms more favorable than SecureKloud, SecureKloud’s control over our Board and our Company could prevent us from obtaining these services on more favorable terms from such third parties or renegotiating the terms with SecureKloud.
Our Parent’s control could prevent us from obtaining essential services at lower rates and if our Parent ceases to provide us with services our business could suffer. Our Parent provides us with essential services, including software development, infrastructure development, sales support, recruitment and immigration support, project coordination, human resources and operation support and management/advisory services.
SecureKloud’s control could prevent us from obtaining essential services at lower rates and if SecureKloud ceases to provide us with services our business could suffer. SecureKloud provides us with essential services, including software development, infrastructure development, sales support, recruitment and immigration support, project coordination, human resources and operation support and management/advisory services.
Also, if the Parent was no longer able to provide us these services, we may be forced to obtain them from third parties on terms that are less favorable.
Also, if SecureKloud was no longer able to provide us these services, we may be forced to obtain them from third parties on terms that are less favorable.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares. Our Parent owns approximately 59.18% of our common stock and will be able to exert a controlling influence over our business affairs and matters submitted to stockholders for approval.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares. SecureKloud Technologies, Inc (“SecureKloud”) owns approximately 45% of our common stock and will be able to exert a controlling influence over our business affairs and matters submitted to stockholders for approval.
The Privacy Standards grant a number of rights to individuals as to their PHI and restrict the use and disclosure of PHI by “Covered Entities,” defined as “health plans,” “healthcare providers,” and “healthcare clearinghouses.” 23 Any failure or perceived failure by us to comply with the aforementioned laws and regulations in connection with our products and services provided to our clients or used by third parties, or our related legal obligations, or any compromise of security that results in the unauthorized release or transfer protected information, may result in governmental enforcement actions, litigation, class action, or public statements against us by consumer advocacy groups or others and could cause our clients to lose trust in us, which could have an adverse effect on our business, financial condition, results of operations, reputation or prospects.
The Privacy Standards grant a number of rights to individuals as to their PHI and restrict the use and disclosure of PHI by “Covered Entities,” defined as “health plans,” “healthcare providers,” and “healthcare clearinghouses.” Any failure or perceived failure by us to comply with the aforementioned laws and regulations in connection with our products and services provided to our clients or used by third parties, or our related legal obligations, or any compromise of security that results in the unauthorized release or transfer protected information, may result in governmental enforcement actions, litigation, class action, or public statements against us by consumer advocacy groups or others and could cause our clients to lose trust in us, which could have an adverse effect on our business, financial condition, results of operations, reputation or prospects. 23 If we fail to regain compliance with the continued listing requirements of Nasdaq, our common stock may be delisted and the price of our common stock and our ability to access the capital markets could be negatively impacted.
Historically, our revenue has been concentrated among a small number of customers. In the fiscal year ended December 31, 2023, our top customer and our top five customers accounted for 23% and 77% of our revenue, respectively.
Historically, our revenue has been concentrated among a small number of customers. In the fiscal year ended December 31, 2024, our top customer and our top five customers accounted for 17% and 58% of our revenue, respectively.
Sales of a substantial number of shares of our common stock in the public markets could depress the market price of our common stock and impair our ability to raise capital through the sale of additional equity securities. We cannot predict the effect that future sales of our common stock would have on the market price of our common stock.
Sales of a substantial number of shares of our common stock in the public markets could depress the market price of our common stock and impair our ability to raise capital through the sale of additional equity securities.
If a court were to find the choice of forum provision contained in our restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, financial condition or results of operations. 31 These broad market and industry fluctuations may materially adversely affect the market price of our common stock, regardless of our actual operating performance.
If a court were to find the choice of forum provision contained in our restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, financial condition or results of operations.
In addition, price volatility may be greater if the public float and trading volume of our common stock are low. In the past, following periods of market volatility, stockholders have instituted securities class action litigation.
These broad market and industry fluctuations may materially adversely affect the market price of our common stock, regardless of our actual operating performance. In addition, price volatility may be greater if the public float and trading volume of our common stock are low. In the past, following periods of market volatility, stockholders have instituted securities class action litigation.
We sell our products and services to organizations whose businesses fluctuate based on general economic and business conditions. In addition, a portion of our revenue is attributable to the number of users of our products at each of our clients, which in turn is influenced by the employment and hiring patterns of our clients and potential clients.
In addition, a portion of our revenue is attributable to the number of users of our products at each of our clients, which in turn is influenced by the employment and hiring patterns of our clients and potential clients.
If cloud-based solutions do not continue to achieve more widespread adoption in the Life Sciences industry, or there is a widespread reduction in demand for cloud-based solutions, our revenues could decrease and our business could be adversely affected. 27 Unfavorable conditions in our industry or the U.S. economy, or reductions in information technology spending, could limit our ability to grow our business and negatively affect our operating results.
If cloud-based solutions do not continue to achieve more widespread adoption in the Life Sciences industry, or there is a widespread reduction in demand for cloud-based solutions, our revenues could decrease and our business could be adversely affected.
The Company and its products are subject to laws and regulations concerning electronic prescribing standards and the adoption of controlled substance electronic prescribing. Our actual or perceived failure to comply with these laws and regulations could harm our business, financial condition, results of operations, reputation, or prospects.
Our actual or perceived failure to comply with these laws and regulations could harm our business, financial condition, results of operations, reputation, or prospects.
Various events outside of our control pose a threat to our intellectual property rights, as well as to our products, services, and technologies. For instance, any of our current or future intellectual property rights may be challenged by others or invalidated through administrative process or litigation.
For instance, any of our current or future intellectual property rights may be challenged by others or invalidated through administrative process or litigation.
Our Parent owns approximately 59.18% of our common stock. As a result, our Parent has control over all matters submitted to our stockholders for approval, including the election and removal of directors, amendments to our certificate of incorporation and bylaws, the approval of any business combination, and any other significant corporate transaction.
As a result, SecureKloud has control over all matters submitted to our stockholders for approval, including the election and removal of directors, amendments to our certificate of incorporation and bylaws, the approval of any business combination, and any other significant corporate transaction. These actions may be taken even if they are opposed by other stockholders, including public stockholders like you.
These actions may be taken even if they are opposed by other stockholders, including public stockholders like you. 29 Sales of a significant number of shares of our common stock in the public markets, or the perception that such sales could occur, could depress the market price of our common stock.
Sales of a significant number of shares of our common stock in the public markets, or the perception that such sales could occur, could depress the market price of our common stock.
Our certificate of incorporation will designate the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.
Further, those provisions and resulting costs may discourage us or our stockholders from bringing a lawsuit against any of our current or former directors or officers for breaches of their fiduciary duties, even if such actions might otherwise benefit our stockholders. 30 Our certificate of incorporation will designate the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us.
Our operating results may vary based on the impact of changes in our industry or the United States economy on us or our clients. The revenue growth and potential profitability of our business depend on demand for the workforce and provide platforms and programmatic for healthcare providers.
The revenue growth and potential profitability of our business depend on demand for the workforce and provide platforms and programmatic for healthcare providers. We sell our products and services to organizations whose businesses fluctuate based on general economic and business conditions.
Risks Related to Our Intellectual Property and Our Platforms and Services Protection of certain intellectual property may be difficult and costly, and our inability to protect our intellectual property could reduce the value of our products and services. Our trademarks, trade secrets, copyrights, and other intellectual property rights are important assets to us.
Our trademarks, trade secrets, copyrights, and other intellectual property rights are important assets to us. Various events outside of our control pose a threat to our intellectual property rights, as well as to our products, services, and technologies.
If one or more of those analysts downgrade our stock or publish inaccurate or unfavorable research about our business, our stock price would likely decline.
We cannot predict the effect that future sales of our common stock would have on the market price of our common stock. 29 If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.
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Further, those provisions and resulting costs may discourage us or our stockholders from bringing a lawsuit against any of our current or former directors or officers for breaches of their fiduciary duties, even if such actions might otherwise benefit our stockholders.
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Top Five Customers’ Revenue for Twelve months ended December 31, 2024 Customer Amount (in thousands) % of Revenue Customer 1 $ 1,945 17 % Customer 2 1,911 16 % Customer 3 1,233 11 % Customer 4 877 7 % Customer 5 $ 847 7 % Top Five Customers’ Revenue for Twelve months ended December 31, 2023 Customer Amount (in thousands) % of Revenue Customer 1 $ 17,322 52 % Customer 2 3,114 9 % Customer 3 2,286 7 % Customer 4 2,011 6 % Customer 5 $ 1,751 5 % Risks Related to Our Intellectual Property and Our Platforms and Services Protection of certain intellectual property may be difficult and costly, and our inability to protect our intellectual property could reduce the value of our products and services.
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On February 26, 2025, we received a deficiency letter from the Listing Qualifications Department of the Nasdaq Stock Market, or Nasdaq, notifying us that, for the last 30 consecutive business days, the bid price for our common stock had closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Capital Market, referred to as the minimum bid price rule.
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In accordance with Nasdaq Listing Rules, we have been provided an initial period of 180 calendar days, or until August 25, 2025, to regain compliance with the minimum bid price rule. To date, we have not regained compliance with the minimum bid price rule.
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If, at any time during the compliance period the bid price for our common stock closes at $1.00 or more per share for a minimum of 10 consecutive business days, the Nasdaq Listing Qualifications Department staff will provide written notification to us that we are in compliance with the minimum bid price rule, unless the staff exercises its discretion to extend this 10-day period pursuant to the Nasdaq Listing Rules.
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If we do not regain compliance with the minimum bid price rule by the required date and we are not eligible for any additional compliance period at that time, the Nasdaq Listing Qualifications Department staff will provide us written notification that our common stock may be delisted.
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At that time, we may appeal the staff’s delisting determination to a Nasdaq Listing Qualifications Panel. We expect that our common stock would remain listed pending the panel’s decision. However, there can be no assurance that, even if we appeal the staff’s delisting determination to the Nasdaq Listing Qualifications Panel, such appeal would be successful.
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There are many factors that may adversely affect our minimum bid price, including those described throughout this section titled “Risk Factors.” Many of these factors are outside of our control. As a result, we may not be able to sustain compliance with the minimum bid price rule in the long term.
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Any potential delisting of our common stock from the Nasdaq Capital Market would likely result in decreased liquidity and increased volatility for our common stock and would adversely affect our ability to raise additional capital or to enter into strategic transactions.
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Any potential delisting of our common stock from the Nasdaq Capital Market would also make it more difficult for our stockholders to sell our common stock in the public market. The Company and its products are subject to laws and regulations concerning electronic prescribing standards and the adoption of controlled substance electronic prescribing.
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Unfavorable conditions in our industry or the U.S. economy, or reductions in information technology spending, could limit our ability to grow our business and negatively affect our operating results. Our operating results may vary based on the impact of changes in our industry or the United States economy on us or our clients.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeNumber of Securities Remaining Available for Number of Future Issuance Securities to be Under Equity issued Upon Compensation Exercise of Weighted Average Plans (Excluding Outstanding Exercise Price of Securities Options, Warrants, Outstanding Reflected in Plan category: and Rights (a) Options (b) column (a)) (c) Equity compensation plans approved by stockholders (1) 276,500 $ 3.7 1,023,050 Total 276,500 $ 3.7 1,023,050 (1) The Plan permits grants of equity awards to employees, directors, consultants and other independent contractors.
Biggest changeRecent Sales of Unregistered Securities None Securities Authorized for Issuance under Equity Compensation Plans The following table provides information as of December 31, 2024, regarding our common stock that may be issued under the Plan (2) Plan category: Number of Securities to be issued Upon Exercise of Outstanding Options, Warrants, and Rights (a) Weighted Average Exercise Price of Outstanding Options (b) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in column (a)) (c) Equity compensation plans approved by stockholders (1) 276,500 $ 3.7 1,023,050 Total 276,500 $ 3.7 1,023,050 (1) The Plan permits grants of equity awards to employees, directors, consultants and other independent contractors.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock is trading on the Nasdaq Capital Market under the symbol “HCTI.” Holders As of March 18, 2024, there were 49 stockholders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock is trading on the Nasdaq Capital Market under the symbol “HCTI.” Holders As of March 31, 2025, there were 41 stockholders of record of our common stock.
Our board of directors and shareholders have approved a total reserve of 600,000 shares for issuance under the Plan. (2) The total reserve of 600,000 shares represents 13.92%of the equity on a fully diluted basis. We have not issued any options outside of the Plan.
(2) Our board of directors and shareholders have approved a total reserve of 861,764 shares for issuance under the Plan which represents 13.20% of the equity on a fully diluted basis. We have not issued any options outside of the Plan.
Removed
Recent Sales of Unregistered Securities None 34 Securities Authorized for Issuance under Equity Compensation Plans The following table provides information as of December 31, 2023, regarding our common stock that may be issued under the Plan.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

34 edited+2 added−7 removed48 unchanged
Biggest changeGeneral and administrative Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % General and administrative $ 5,424 $ 5,575 $ (151 ) (3 )% General and administrative expenses decreased by $0.2 million, or 3 % to $5.4 million for the twelve months ended December 31, 2023, as compared to $5.6 million for the twelve months ended December 31, 2022. 42 Depreciation and amortization Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Depreciation and amortization $ 7,232 $ 3,374 $ 3,859 114 % Depreciation and amortization expenses increased by $3.9 million, or 114% to $7.2 million for the twelve months ended December 31, 2023, as compared to $3.4 million for the twelve months ended December 31, 2022.
Biggest changeGeneral and administrative Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % General and administrative $ 3,950 $ 5,727 $ (1,777 ) (31 )% General and administrative decreased by $1.78 million, or 31 % to $3.95 million for the twelve months ended December 31, 2024 as compared to $5.73 million for the twelve months ended December 31,2023 Depreciation and amortization Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Depreciation and amortization $ 889 $ 1,566 (677 ) (43 )% Depreciation and amortization decreased by $0.68 million, or 43 % to $0.89 million for the twelve months ended December 31, 2024 as compared to $1.57 million for the twelve months ended December 31,2023 Impairment expense Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Impairment expense $ - $ 1,710 $ (1,710 ) (100 )% Impairment expense decreased by $1.71 million, or 100 % to $0 million for the twelve months ended December 31, 2024 as compared to $1.71 million for the twelve months ended December 31,2023 42 Interest expense Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Interest expense $ 1,213 $ 968 $ 245 (25 )% Interest expense increased by $0.24 million, or 25 % to $1.21 million for the twelve months ended December 31, 2024 as compared to $0.97 million for the twelve months ended December 31,2023 Other income Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Other income $ 7 $ 12 $ (5 ) (42 )% Other income decreased by $0.005 million, or 42 % to $0.007 million for the twelve months ended December 31, 2024, as compared to $0.012 million for the twelve months ended December 31, 2023.
The Company enters into Statement of Work (SOW) which provides for service obligations that need to be fulfilled as agreed with the customer. The majority of our software services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed upon rates.
The Company enters into Statement of Work (SOW) which provides for service obligations that need to be fulfilled as agreed with the customer. The majority of our software services arrangements are billed on a time and materials basis and revenues are recognized over time based on time incurred and contractually agreed rates.
While we may grow our headcount overtime to capitalize on our market opportunities, we believe our increased investment in automation, electronic health record integration capabilities, and economies of scale in our operating model, will position us to grow our platform solutions revenue at a greater rate than our cost of revenue. 38 Operating Expenses Research and development Research and development expense (majorly our investment in innovation) consists primarily of employee-related expenses, including salaries, benefits, incentives, employment taxes, severance, and equity compensation costs for our software developers, engineers, analysts, project managers, and other employees engaged in the development and enhancement of our cloud-based platform applications.
While we may grow our headcount overtime to capitalize on our market opportunities, we believe our increased investment in automation, electronic health record integration capabilities, and economies of scale in our operating model, will position us to grow our platform solutions revenue at a greater rate than our cost of revenue. 37 Operating Expenses Research and development Research and development expense (majorly our investment in innovation) consists primarily of employee-related expenses, including salaries, benefits, incentives, employment taxes, severance, and equity compensation costs for our software developers, engineers, analysts, project managers, and other employees engaged in the development and enhancement of our cloud-based platform applications.
Off-Balance Sheet Arrangements We do not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes as defined by Item 303(a)(4) of SEC Regulation S-K, as of December 31, 2023. 46
Off-Balance Sheet Arrangements We do not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes as defined by Item 303(a)(4) of SEC Regulation S-K, as of December 31, 2024. 46
We do not yet have enough information about our competition or customer acceptance of our SaaS offerings to determine whether or not recurring subscription revenue will have a material impact on our revenue growth. 36 Key Factors of Success We believe that our future growth, success, and performance are dependent on many factors, including those mentioned below.
We do not yet have enough information about our competition or customer acceptance of our SaaS offerings to determine whether or not recurring subscription revenue will have a material impact on our revenue growth. 35 Key Factors of Success We believe that our future growth, success, and performance are dependent on many factors, including those mentioned below.
Revenue for Managed Services and Support is recognized rateably over the life of the contract. Platform Services Platform Services from CloudEz, DataEz and Readabl.AI are offered as a solution delivery model till 2021. We have launched our platforms as Software as a Service (SaaS) on a subscription model.
Revenue for Managed Services and Support is recognized ratably over the life of the contract. Platform Services Platform Services from CloudEz, DataEz and Readabl.AI are offered as a solution delivery model till 2021. We have launched our platforms as Software as a Service (SaaS) on a subscription model.
Combined with our software and solutions, our services provide clients with an end-to-end partnership for their technology innovation. Our Business Model The majority of our revenue is generated by our full-time employees/consultants who provide software services and Managed Services and Support to our clients in the Healthcare and Life Sciences industry.
Combined with our software and solutions, our services provide clients with an end-to-end partnership for their technological innovation. Our Business Model The majority of our revenue is generated by our full-time employees/consultants who provide software services and Managed Services and Support to our clients in the Healthcare and Life Sciences industry.
Deferred revenues Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the revenue recognition criteria are met. 39 Unbilled accounts receivable Unbilled accounts receivable is a contract asset related to the delivery of our professional services for which the related billings will occur in a future period.
Deferred revenues Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the revenue recognition criteria are met. 38 Unbilled accounts receivable Unbilled accounts receivable is a contract asset related to the delivery of our professional services for which the related billings will occur in a future period.
Components of Results of Operations Revenues We provide our services and manage our business under these operating segments: ● Software Services ● Managed Services and Support ● Platform Services 37 Software Services The Company earns revenue primarily through the sale of software services that is generated from providing strategic advisory, implementation, and development services.
Components of Results of Operations Revenues We provide our services and manage our business under these operating segments: ● Software Services ● Managed Services and Support ● Platform Services 36 Software Services The Company earns revenue primarily through the sale of software services that is generated from providing strategic advisory, implementation, and development services.
Our SaaS agreements will be generally non-cancellable during the term, although customers typically will have the right to terminate their agreements for cause in the event of material breach. SaaS revenues will be recognized rateably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer.
Our SaaS agreements will be generally non-cancellable during the term, although customers typically will have the right to terminate their agreements for cause in the event of material breach. SaaS revenues will be recognized ratably over the respective non-cancellable subscription term because of the continuous transfer of control to the customer.
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 s Life Sciences business to us.
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 transferred its Life Sciences business to us.
The following table has the breakdown of our revenues for the twelve months ended December 31, 2023 and 2022 for each of our top 5 customers.
The following table has the breakdown of our revenues for the twelve months ended December 31, 2024, and 2023 for each of our top 5 customers.
We cannot provide assurance that these additional sources of funds will be available or, if available, would have reasonable terms. Operating Activities Net cash used in operating activities was $1.6 million for the twelve months ended December 31, 2023, and net cash used in operations was $2.6 million for the twelve months ended December 31, 2022.
We cannot provide assurance that these additional sources of funds will be available or, if available, would have reasonable terms. Operating Activities Net cash used in operating activities was $1.08 million for the twelve months ended December 31, 2024, and net cash used in operations was $2.1 million for the twelve months ended December 31, 2023.
Pay check protection program On February 9, 2021, we received a PPP loan pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) amounting to $1.06 million.
Paycheck protection program On February 9, 2021, we received a PPP loan pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) amounting to $1.06 million.
The Company’s current debt equity ratio, as on December 31, 2023 is 9.8, compared to 0.2 as on December 31, 2022. A debt-to-equity ratio below 1 means that a company has lower exposure to debts than equity. The Company does not have inventory and hence the quick ratio is the same as current ratio.
The Company’s current debt equity ratio, as on December 31, 2024, is (0.50), compared to (3.2) as on December 31, 2023. A debt-to-equity ratio below 1 means that a company has lower exposure to debts than equity. The Company does not have inventory and hence the quick ratio is the same as the current ratio.
Revenue from Software Services, Managed Services and Support and Platform Services revenue have decreased in the current year. Our top 5 customers accounted for 77% of revenue during the twelve months ended December 31, 2023 and 72% during the twelve months ended December 31, 2022, respectively.
Revenue from Software Services, Managed Services and Support and Platform Services revenue have decreased in the current year. Our top 5 customers accounted for 58% of revenue during the twelve months ended December 31, 2024, and 79% during the twelve months ended December 31, 2023, respectively.
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, as of December 31, 2023 is 0.7 compared to 1.3 as of December 31, 2022.
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, as of December 31, 2024, is 0.33 compared to 0.74 as of December 31, 2023.
Revenue from Managed Services and Support decreased by $4.7 million, or 31% to $10.5 million for the twelve months ended December 31, 2023, as compared to $15.2 million for the twelve months ended December 31, 2022.
Revenue from Managed Services and Support decreased by $3.7 million, or 36% to $6.7 million for the twelve months ended December 31, 2024, as compared to $10.5 million for the twelve months ended December 31, 2023.
During the twelve months ended December 31, 2023, we generated revenues of approximately $33.2 million compared to revenue of $45.9 million for the twelve months ended December 31, 2022, which represents a decrease of $12.7 million or 28% compared to the previous year.
During the twelve months ended December 31, 2024, we generated revenues of approximately $11.7 million compared to revenue of $33.2 million for the twelve months ended December 31, 2023, which represents a decrease of $21.6 million or 65% compared to the previous year.
Cost of Revenue from Managed Services and Support decreased by $3.0 million, or 28% to $7.7 million for the twelve months ended December 31, 2023, as compared to $10.7 million for the twelve months ended December 31, 2022.
Cost of Revenue from Managed Services and Support decreased by $3.1 million, or 40% to $4.7 million for the twelve months ended December 31, 2024, as compared to $7.8 million for the twelve months ended December 31, 2023.
Revenue from Platform Services decreased by $3.2 million, or 66% to $1.6 million for the twelve months ended December 31, 2023, as compared to $4.8 million for the twelve months ended December 31, 2022.
Revenue from Platform Services decreased by $1.3 million, or 82% to $0.3 million for the twelve months ended December 31, 2024, as compared to $1.6 million for the twelve months ended December 31, 2023.
Investing Activities Net cash used in investing activities was $0.01 million for the twelve months ended December 31, 2023, and $3.3 million for the twelve months ended December 31, 2022. Financing Activities Cash flows from financing activities was $1.5 million for the twelve months ended December 31, 2023, and $5.5 million for the twelve months ended December 31, 2022.
Investing Activities Net cash used in investing activities was $0 million for the twelve months ended December 31, 2024, and $0.013 million for the twelve months ended December 31, 2023. Financing Activities Cash flows from financing activities was $0.135 million for the twelve months ended December 31, 2024, and $2 million for the twelve months ended December 31, 2023.
Provision for income taxes Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Income tax $ 35 $ 63 $ (28 ) (44 )% Income tax decreased by $0.03 million, or 44% to $0.04 million for the twelve months ended December 31, 2023, as compared to $0.06 million for the twelve months ended December 31, 2022, this represents state taxes.
Provision for income taxes Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Provision for income taxes $ 12 $ 35 $ (23 ) (66 )% Provision for income taxes decreased by $0.02 million, or 65 % to $0.01 million for the twelve months ended December 31, 2024, as compared to $0.03 million for the twelve months ended December 31, 2023, this represents state taxes.
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.
As of December 31, 2024, we had a total of 36 full-time employees, 24 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 software development, regulatory science, and market access.
Software Services revenue increased by $1 million or 8% to $15.6 million for the twelve months ended December 31, 2023, as compared to $14.5 million for the twelve months ended December 31, 2022.
Software Services revenue increased by $0.09 million or 100% to $0.09 million for the twelve months ended December 31, 2024, as compared to $0 million for the twelve months ended December 31, 2023.
Operating profit from Managed Services and Support decreased by $1.7 million, or 39% to $2.8 million for the twelve months ended December 31, 2023, as compared to $4.5 million for the twelve months ended December 31, 2022.
Managed Services and Support revenue decreased by $1.3 million, or 41% to $1.8 million for the twelve months ended December 31, 2024, as compared to $3.1 million for the twelve months ended December 31, 2023.
Results of Operations The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Twelve Months Ended December 31, (In thousands) 2023 % of Sales 2022 % of Sales Revenue $ 33,203 100 % $ 45,886 100 % Cost of revenue (exclusive of depreciation /amortization) 26,426 80 % 34,591 75 % Research and development 799 2 % 5,954 13 % Sales and marketing 4,670 14 % 6,808 15 % General and administrative 5,424 16 % 5,575 12 % Depreciation and amortization 7,232 22 % 3,374 7 % Other income (12 ) 0 % (1,081 ) (2 )% Interest expense 968 3 % 212 0 % Income taxes 35 0 % 63 0 % Net (loss) $ (12,339 ) (37 )% $ (9,610 ) (21 )% 40 Twelve Months Ended December 31, 2023, and 2022 Revenue from operations Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Revenue $ 33,203 $ 45,886 $ (12,683 ) (28 )% Revenue decreased by $12.7 million, or 28% to $33.2 million for the twelve months ended December 31, 2023, as compared to $45.9 million for the twelve months ended December 31, 2022.
Results of Operations The following tables set forth selected consolidated statements of operations data and such data as a percentage of total revenues for each of the periods indicated: Twelve Months Ended December 31, (In thousands) 2024 % of Sales 2023 % of Sales Revenue $ 11,696 100 % $ 33,203 100 % Cost of revenue (exclusive of depreciation /amortization) 8,806 75 % 26,426 80 % Bad debt expense 170 1 % - 0 % Research and development 429 4 % 799 2 % Sales and marketing 2,203 19 % 4,670 14 % General and administrative 3,950 34 % 5,727 17 % Depreciation and amortization 889 8 % 1,566 5 % Impairment expense - 0 % 1,710 5 % Other income (7 ) 0 % (12 ) 0 % Interest expense 1,213 10 % 968 3 % Income taxes 12 0 % 35 0 % Net (loss) $ (5,969 ) (51 )% $ (8,686 ) (26 )% 39 Twelve Months Ended December 31, 2024, and 2023 Revenue from operations Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Revenue $ 11,696 $ 33,203 (21,507 ) (65 )% Revenue decreased by $21.51 million, or 65% to $11.7 million for the twelve months ended December 31, 2024, as compared to $33.2 million for the twelve months ended December 31, 2023.
Revenue, Cost of Revenue and Operating Profit by Operating Segment Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Software Services $ 21,132 $ 25,883 $ (4,751 ) (18 )% Managed Services and Support 10,452 15,178 (4,726 ) (31 )% Platform Services 1,619 4,825 (3,206 ) (66 )% Revenue $ 33,203 $ 45,886 $ (12,683 ) (28 )% We currently provide our services and manage our business under three operating segments which are Software Services, Managed Services and Support and Platform Services. 43 Revenue from Software Services decreased by $4.8 million, or 18% to $21.1 million for the twelve months ended December 31, 2023, as compared to $25.9 million for the twelve months ended December 31, 2022.
Revenue, Cost of Revenue and Operating Profit by Operating Segment Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Software Services $ 4,692 $ 21,132 $ (16,440 ) (78 )% Managed Services and Support 6,716 10,452 (3,736 ) (36 )% Platform Services 288 1,619 (1,331 ) (82 )% Revenue $ 11,696 $ 33,203 $ (21,507 ) (65 )% We manage our business under three operating segments, which are Software Services, Managed Services and Support and Platform Services. 43 Revenue from Software Services decreased by $16.4 million, or 78% to $4.7 million for the twelve months ended December 31, 2024, as compared to $21.1 million for the twelve months ended December 31, 2023.
Top Five Customers’ Revenue for Twelve months ended December 31, 2023 Customer Amount (In thousands) % of Revenue Customer 1 $ 17,292 52 % Customer 2 3,114 9 % Customer 3 2,217 7 % Customer 4 1,751 5 % Customer 5 $ 1,359 4 % Top Five Customers’ Revenue for Twelve months ended December 31, 2022 Customer Amount (In thousands) % of Revenue Customer 1 $ 17,768 39 % Customer 2 5,598 12 % Customer 3 4,676 10 % Customer 4 3,698 8 % Customer 5 $ 1,585 3 % The following table provides details of Customer 1 revenue by operating segments: Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Software services $ 15,569 $ 14,519 $ 1,092 8 % Managed services and support 1,723 3,267 (1,544 ) (47 )% Platform services — — — — Total Revenue $ 17,292 $ 17,744 $ (452 ) (3 )% Revenue from Customer 1 decreased by $0.5 million, or 3% to $17.3 million for the twelve months ended December 31, 2023, as compared to $17.8 million for the twelve months ended December 31, 2022.
Top Five Customers’ Revenue for Twelve months ended December 31, 2024 Customer Amount (in thousands) % of Revenue Customer 1 $ 1,945 17 % Customer 2 1,911 16 % Customer 3 1,233 11 % Customer 4 877 7 % Customer 5 $ 847 7 % Top Five Customers’ Accounts receivable for Twelve months ended December 31, 2024 Customer Amount (in thousands) % of Revenue Customer 1 $ 362 32 % Customer 2 138 12 % Customer 3 109 10 % Customer 4 106 9 % Customer 5 $ 102 9 % Top Five Customers’ Revenue for Twelve months ended December 31, 2023 Customer Amount (in thousands) % of Revenue Customer 1 $ 17,322 52 % Customer 2 3,114 9 % Customer 3 2,286 7 % Customer 4 2,011 6 % Customer 5 $ 1,751 5 % 40 The following table provides details of Customer 1 revenue by operating segments: Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Software services $ 98 $ - $ 98 100 % Managed services and support 1,847 3,114 (1,267 ) (41 )% Platform services - - - 0 % Total Revenue $ 1,945 $ 3,114 $ (1,169 ) (38 )% Revenue from Customer 1 decreased by $1.2 million, or 38% to $1.9 million for the twelve months ended December 31, 2024, as compared to $3.1 million for the twelve months ended December 31, 2023.
Research and development Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Research and development $ 799 $ 5,954 $ (5,155 ) (87 )% Research and development expenses decreased by $5.2 million, or 87% to $0.8 million for the twelve months ended December 31, 2023, as compared to $5.9. million for the twelve months ended December 31, 2022.
Research and development Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Research and development $ 429 $ 799 $ (370 ) (46 )% Research and development decreased by $0.37 million, or 46 % to $0.43 million for the twelve months ended December 31, 2024 as compared to $0.8 million for the twelve months ended December 31,2023 41 Sales and marketing Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Sales and marketing $ 2,203 $ 4,670 $ (2,467 ) (53 )% Sales and marketing decreased by $2.47 million, or 53 % to $2.20 million for the twelve months ended December 31, 2024 as compared to $4.67 million for the twelve months ended December 31,2023.
Managed Services and Support revenue decreased by $1.5 million, or 47% to $1.7 million for the twelve months ended December 31, 2023, as compared to $3.3 million for the twelve months ended December 31, 2022. 41 Cost of revenue (exclusive of depreciation /amortization) Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Cost of revenue (exclusive of depreciation /amortization) $ 26,426 $ 34,591 $ (8,165 ) (24 )% Cost of revenue, excluding depreciation and amortization decreased by $8.2 million, or 24%, to $26.4 million for the twelve months ended December 31, 2023, as compared to $34.6 million for the twelve months ended December 31, 2022.
Cost of Revenue Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Software Services $ 3,962 $ 17,585 $ (13,623 ) (77 )% Managed Services and Support 4,671 7,794 (3,123 ) (40 )% Platform Services 173 1,047 (874 ) (83 )% Cost of Revenue $ 8,806 $ 26,426 $ (17,620 ) (67 )% Cost of Revenue from Software Services decreased by $13.6 million, or 77% to $3.9 million for the twelve months ended December 31, 2024, as compared to $17.5 million for the twelve months ended December 31, 2023.
Sources of Liquidity As of December 31, 2023, our principal sources of liquidity consisted of cash and cash equivalents of $1.2 million. We believe that our cash and cash equivalents as of December 31, 2023, and the future operating cash flows of the entity will provide adequate resources to fund ongoing cash requirements for the next twelve months.
Sources of Liquidity As of December 31, 2024, our principal sources of liquidity consisted of cash and cash equivalents of $0.002 million. We believe that the fund raise of $15.20 million in February, 2025 will be sufficient to meet our working capital requirements 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. 45 Liquidity 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 financial statements do not include any adjustments that might result from the outcome of this uncertainty. Liquidity 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.
Interest expense Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Interest expense $ 968 $ 212 $ 756 357 % Interest expenses increased by $0.8 million, or 357% to $1.0 million for the twelve months ended December 31, 2023, as compared to $0.2 million for the twelve months ended December 31, 2022, this is primarily due to short term funding.
Cost of revenue (exclusive of depreciation /amortization) Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Cost of revenue (exclusive of depreciation /amortization) $ 8,806 $ 26,426 $ (17,620 ) (67 )% Cost of revenue (exclusive of depreciation /amortization) decreased by $17.62 million, or 67 % to $8.81 million for the twelve months ended December 31, 2024 as compared to $26.43 million for the twelve months ended December 31,2023 Bad debt expense Twelve Months Ended December 31, (In thousands) Changes 2024 2023 Amount % Bad debt expense $ 170 $ - $ (170 ) (100 )% Bad debt expense increased by $0.17 million, or 100 % to $0.17 million for the twelve months ended December 31, 2024 as compared to $0 million for the twelve months ended December 31,2023.
Removed
As of December 31, 2023, we had a total of 33 full time employees, 164 sub-contractors, including 95 certified cloud engineers, 66 Epic Certified EHR experts and 21 MEDITECH Certified EHR experts.
Added
Cost of Revenue from Platform Services decreased by $0.9 million, or 83% to $0.2 million for the twelve months ended December 31, 2024, as compared to $1.1 million for the twelve months ended December 31, 2023. 44 Segment operating profits by reportable segment were as follows: As of December 31, 2024 Particulars Software Services Managed Services Platform Services Total Revenue from customers $ 4,692 $ 6,716 $ 288 $ 11,696 Intersegment revenues - - - - Total 4,692 6,716 288 11,696 Less: - Elimination of intersegment revenues - - - - Cost of revenue (3,962 ) (4,671 ) (173 ) (8,806 ) Segmental gross profit 730 2,045 115 2,890 Research and development 429 429 Sales and marketing 952 1,364 59 2,375 General and administrative 1,584 2,267 97 3,948 Segmental profit / (loss) $ (1,806 ) $ (1,586 ) $ (470 ) $ (3,862 ) Interest expenses (487 ) (696 ) (30 ) (1,213 ) Depreciation and amortization - - (889 ) (889 ) Other income 3 4 - 7 Income before income taxes (2,290 ) (2,278 ) (1,389 ) (5,957 ) Income tax 5 7 - 12 Income after income taxes (2,295 ) (2,285 ) (1,389 ) $ (5,969 ) As of December 31, 2023 Particulars Software Services Managed Services Platform Services Total Revenue from customers $ 21,132 $ 10,452 $ 1,619 $ 33,203 Intersegment revenues - - - - Total 21,132 10,452 1,619 33,203 Less: - Elimination of intersegment revenues - - - - Cost of revenue (17,585 ) (7,794 ) (1,047 ) (26,426 ) Segmental gross profit 3,547 2,658 572 6,777 Research and development - - 799 799 Sales and marketing 2,972 1,470 228 4,670 General and administrative 3,645 1,803 279 5,727 Segmental profit / (loss) $ (3,070 ) $ (615 ) $ (734 ) $ (4,419 ) Interest expenses (616 ) (305 ) (47 ) (968 ) Depreciation and amortization - - (1,566 ) (1,566 ) Impairment - - (1,710 ) (1,710 ) Other income 8 3 1 12 Income before income taxes (3,678 ) (917 ) (4,056 ) (8,651 ) Income tax 22 11 2 35 Income after income taxes (3,700 ) (928 ) (4,058 ) $ (8,686 ) 45 Liquidity and Capital Resources As of As of December 31, December 31, 2024 2023 (In thousands) Cash and cash equivalents $ 20 $ 1,234 Total cash, cash equivalents and short-term investments $ 20 $ 1,234 As of As of December 31, December 31, 2024 2023 (In thousands) Cash flows used in operating activities $ (1,081 ) $ (2,151 ) Cash flows used in investing activities - (12 ) Cash flows provided by financing activities (133 ) 2,056 Net increase (decrease) in cash and cash equivalents $ (1,214 ) $ (107 ) As of December 31, 2024, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $0.002 million.
Removed
Sales and marketing Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Sales and marketing $ 4,670 $ 6,808 $ (2,138 ) (31 )% Sales and marketing expenses decreased by $2.1 million, or 31% to $4.7 million for the twelve months ended December 31, 2023, as compared to $6.8 million for the twelve months ended December 31, 2022.
Added
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company is yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon equity or other financings to fund ongoing operations, all of which raises substantial doubt about its ability to continue as a going concern.
Removed
Cost of Revenue Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Software Services $ 17,260 $ 20,533 $ (3,273 ) (16 )% Managed Services and Support 7,696 10,697 (3,001 ) (28 )% Platform Services 1,470 3,361 (1,891 ) (56 )% Cost of Revenue $ 26,426 $ 34,591 $ (8,165 ) (24 )% Cost of Revenue from Software Services decreased by $3.3 million, or 16% to $17.3 million for the twelve months ended December 31, 2023, as compared to $20.5 million for the twelve months ended December 31, 2022.
Removed
Cost of Revenue from Platform Services decreased by $1.9 million, or 56% to $1.5 million for the twelve months ended December 31, 2023, as compared to $3.4 million for the twelve months ended December 31, 2022. 44 Segment operating profits by reportable segment were as follows: Twelve Months Ended December 31, (In thousands) Changes 2023 2022 Amount % Software Services $ (2,507 ) $ (1,381 ) $ (1,126 ) (82 )% Managed Services and Support 2,755 4,481 (1,726 ) (39 )% Platform Services (649 ) (4,489 ) 3,840 86 % Total segment operating profit (loss) (401 ) (1,389 ) 988 (71 )% Less: unallocated costs 10,947 9,027 1,920 21 % Income from operations (11,348 ) (10,416 ) (932 ) (9 )% Other Income 12 1,081 (1,069 ) (99 )% Interest expense 968 212 (757 ) (359 )% Net (loss) before income tax $ (12,304 ) $ (9,547 ) $ (2,757 ) (29 )% Operating loss from Software Services increased by $1.1 million, or 82% to $2.5 million for the twelve months ended December 31, 2023, as compared to $1.4 million for the twelve months ended December 31, 2022.
Removed
Operating loss from Platform Services decreased by $3.8 million, or 86 % to $0.7 million for the twelve months ended December 31, 2023, as compared to $4.5 million for the twelve months ended December 31, 2022 Liquidity and Capital Resources As of As of December 31, December 31, 2023 2022 (In thousands) Cash and cash equivalents $ 1,234 $ 1,341 Total cash, cash equivalents and short-term investments $ 1,234 $ 1,341 As of As of December 31, December 31, 2023 2022 (In thousands) Cash flows used in operating activities $ (1,612 ) $ (2,600 ) Cash flows used in investing activities (13 ) (3,319 ) Cash flows provided by financing activities 1,518 5,490 Net increase (decrease) in cash and cash equivalents $ (107 ) $ (429 ) As of December 31, 2023, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $1.2 million.
Removed
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.
Removed
During the year 2023, the company raised an aggregate gross amount of $5.2 million through Senior Secured 15% Original Issue Discount Convertible Promissory Note. The first tranche of $2 million was received during the period ended December 31, 2023.

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