Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion summarizes the significant factors affecting the operating results, financial condition, liquidity, and cash flows of our Company as of and for the periods presented below. The following discussion and analysis should be read in conjunction with the consolidated financial statements and the related notes thereto, and the consolidated financial statements and the related notes thereto all included elsewhere in this report. The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity, and capital resources, and all other non-historical statements in this discussion are forward-looking statements and are based on the beliefs of our management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report, and in the sections entitled "Special Note Regarding Forward-Looking Statements" and "Risk Factors".

Overview

Healthcare Triangle, Inc. is a leading healthcare information technology company focused on advancing innovative, industry-transforming solutions in the areas of cloud services, data science, professional and managed services for the Healthcare and Life Sciences industry.

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. As of December 31, 2025, we had a total of 43 full-time employees, 15 part-time employees, and 26 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. During the year ended December 31, 2025, we generated revenues of approximately $13.9 million compared to $11.7 million for the year ended December 31, 2024, which represents an increase of $2.2 million or 19% compared to the previous year.

Our approach leverages our proprietary technology platforms, extensive industry knowledge, and healthcare domain expertise to provide solutions and services that reinforce healthcare progress. Through our platform, solutions, and services, we support healthcare delivery organizations, healthcare insurance companies, pharmaceutical, and Life Sciences, biotech companies, and medical device manufacturers in their efforts to improve data management, develop analytical insights into their operations, and deliver measurable clinical, financial, and operational improvements.

We offer a comprehensive suite of software, solutions, platforms, and services that enables some of the world's leading healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to real-world evidence, and accelerate their digital transformation. We combine our expertise in the healthcare technology domain, cloud technologies, DevOps and automation, data engineering, advanced analytics, AI/ML, IoT, security, compliance, and governance to deliver platforms and solutions that drive improved results in the complex workflows of Life Sciences, biotech, healthcare providers, and payers. Our differentiated solutions, enabled by our intellectual property and delivered as a service, provide advanced analytics, data science applications, and data aggregation in these highly regulated environments in a more compliant, secure, and cost-effective manner to our customers.

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 technological innovation.

Our Business Model

The majority of our revenue is generated by our full-time employees and consultants who provide software services and Managed Services and Support to our clients in the Healthcare and Life Sciences industry. Our software services include strategic advisory, implementation, and development services, while our Managed Services and Support offerings include post-implementation support and cloud hosting.

Our proprietary platforms, including CloudEz, DataEz, Readabl.AI, Ziloy, and Ezovion, are available for deployment through our solution delivery model as well as through Software-as-a-Service (SaaS) offerings, and continue to be enhanced and upgraded on a regular basis to address evolving client needs and technological advancements.

While these platforms are commercially available, we are still in the early stages of scaling our SaaS offerings and do not yet have sufficient information regarding competitive dynamics or customer adoption to determine the extent to which subscription-based revenue will materially impact our overall revenue growth.

Key Factors of Success

We believe that our future growth, success, and performance are dependent on many factors, including those mentioned below. While these factors present significant opportunities for us, they also represent the challenges that we must successfully address in order to grow our business and improve our results of operations.

Investment in scaling the business

We need to continuously invest in research and development to build new solutions, 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.

Adoption of our solutions by new and existing customers

We believe that our ability to increase our customer base will enable us to drive growth. Most of our customers initially deploy our solutions within a division or geography and may only initially deploy a limited set of our available solutions. Our future growth is dependent upon our existing customers' continued success and renewals of our solutions agreements, deployment of our solutions to additional divisions or geographies and the purchase of subscriptions to additional solutions. Our growth is also dependent on the adoption of our solutions by new customers. Our customers are large organizations who typically have long procurement cycles which may lead to declines in the pace of our new customer additions.

Subscription services adoption

The key factor to our success in generating substantial recurring subscription revenues in future will be our ability to effectively market and encourage 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, Ziloy and Ezovion, 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 overall revenue growth.

Mix of solutions and software services revenues

Another factor to our success is the ability to sell our solutions to the existing software services customers. During the initial period of deployment by a customer, we generally provide a greater number of services including advisory, implementation and training. At the same time, many of our customers have historically purchased our solutions after the deployment. Hence, the proportion of total revenues for a customer associated with software services is relatively high during the initial deployment period. While our software services help our customers achieve measurable improvements and make them stickier, they have lower gross margins than solution-based revenue. Over time, we expect the revenues to shift towards recurring and subscription-based revenues.

Components of Results of Operations

Revenues

We provide our services and manage our business under these operating segments:

●

Software Services

	●	Managed Services and Support
	●	Corporate and Others

Software Services

The Company earns revenue primarily through the sale of software services that is generated from providing strategic advisory, implementation, and development services. 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. Certain software services revenues are billed on a fixed fee basis and revenues are typically recognized over time as the services are delivered based on time incurred and customer acceptance. We recognize revenue when we have the right to invoice the customer using the allowable practical expedient under ASC 606-10-55-18 since the right to invoice the customer corresponds with the performance obligations completed.

Managed Services and Support

Managed Services and Support include post implementation support and cloud hosting. Managed Services and Support are a distinct performance obligation. Revenue for Managed Services and Support is recognized ratably over the life of the contract.

Corporate and Others

This segment includes Corporate Head Office of the Company as well as the standard contracts for its Platform Services, however the statement of work contained in such contracts is unique for each customer. A typical Platform Services contract would provide for some or all of the following types of services being provided to the customer: Data Analytics, Backup and Recovery, through our Platform. The revenue from Platform services is a distinct performance obligation and recognized based on SSP. During the periods presented the Company generated revenue from Platform services on a fixed-price solutions delivery model. Revenues related to fixed-price contracts are recognized as the service is performed using the cost-to-cost method, under which the total value of revenues is recognized based on the percentage that each contract's total labor cost to date bears to the total expected labor costs. The cost-to-cost method requires estimation of future costs, which is updated as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately, where appropriate.

Cost of revenue

Cost of revenue consists primarily of employee-related costs associated with the rendering of our services, including salaries, benefits and stock-based compensation expense, the cost of subcontractors, travel costs, cloud hosting charges and allocated overhead the cost of providing professional services is significantly higher as a percentage of the related revenues than for our subscription services due to the direct labor costs and costs of subcontractors. Our business and operational models are designed to be highly scalable and leverage variable costs to support revenue-generating activities.

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.

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. Research and development expenses also include certain third-party consulting fees. Our research and development expense excludes any depreciation and amortization.

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.

Sales and marketing

Sales and marketing expense consists primarily of employee-related expenses, including salaries, benefits, commissions, travel, discretionary incentive compensation, employment taxes, severance, and equity compensation costs for our employees engaged in sales, sales support, business development, and marketing. Sales and marketing expense also includes operating expenses for marketing programs, research, trade shows, and brand messages, and public relations costs.

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.

General and administrative

Our general and administrative expenses consist primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance, and stock-based compensation expenses, for employees who are responsible for management information systems, administration, human resources, finance, legal, and executive management. The general and administrative expenses also include occupancy expenses (including rent, utilities, and facilities maintenance), professional fees, consulting fees, insurance, travel, contingent consideration, transaction costs, integration costs, and other expenses. Our general and administrative expenses exclude depreciation and amortization.

In the nearest future, we expect our general and administrative expenses to continue to increase to support business growth. Over the long term, we expect general and administrative expenses to decrease as a percentage of revenue.

Depreciation and amortization expenses

Our depreciation and amortization expense consists primarily of depreciation of fixed assets, amortization of Customer relationship and software costs, and amortization of IP technology and intangible assets. We expect our depreciation and amortization expense to increase as we expand our business organically and through acquisitions.

An impairment charge is recognized when the carrying value of an asset exceeds its estimated recoverable amount.

Other income / (expense), net

Other income / (expense), net, consists of finance cost and gains or losses on foreign currency.

Deferred revenues

Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the revenue recognition criteria are met.

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. Unbilled receivables are classified as accounts receivable on the consolidated balance sheet.

Although we believe that our approach to estimates and judgments regarding revenue recognition is reasonable, actual results could differ and we may be exposed to increases or decreases in revenue that could be material.

Provision for income taxes

Provision for income taxes consists of federal and state income taxes in the United States, including deferred income taxes reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes.

Results of Operations

The following tables set forth selected Consolidated Statements of Operations and Comprehensive Loss data and such data as a percentage of total revenues for each of the periods indicated:

		Year Ended December 31,
		(Amounts in '000)
		2025				% of Sales				2024				% of Sales
Revenue		$	13,891				100	%		$	11,696				100	%
Less:
Cost of revenue (exclusive of depreciation /amortization)			12,001				86	%			8,806				75	%
Sales and marketing			3,084				22	%			2,203				19	%
General and administrative			7,337				53	%			3,950				34	%
Bad debt expense			17				0	%			170				1	%
Research and development			536				4	%			429				4	%
Depreciation and amortization			705				5	%			889				8	%
Other income			(857	)			(6	)%			(7	)			0	%
Changes in fair value			(41	)			0	%			-				0	%
Forex loss			18				0	%			-				0	%
Interest expense			567				4	%			1,213				10	%
Income taxes			-				0	%			12				0	%
Net loss		$	(9,476	)			(68	)%		$	(5,969	)			(51	)%

Revenue from operations

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Net Revenue		$	13,891			$	11,696				2,195				19	%

Revenue increased by $2.2 million, or 19% to $13.9 million for the year ended December 31, 2025 as compared to $11.7 million for the year ended December 31, 2024. Revenue from Software Services, Managed Services and Support and Corporate and Others revenue have increased in the current year.

Our top 5 customers accounted for 58% of revenue during the year ended December 31, 2025, and 58% during the year ended December 31, 2024, respectively.

The following table shows the breakdown of our revenues for the year ended December 31, 2025, and 2024 for each of our top 5 customers.

		Year Ended December 31,
		2025								2024
		Amount (In '000)				% of Revenue				Amount (In '000)				% of Revenue
Customer 1		$	2,718				20	%		$	1,945				17	%
Customer 2			2,568				18	%			1,911				16	%
Customer 3			1,347				10	%			1,233				11	%
Customer 4			852				6	%			877				7	%
Customer 5		$	548				4	%		$	847				7	%

The following table provides details of Customer 1 revenue by operating segments:

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Software services		$	-			$	98			$	(98	)			(100	)%
Managed services and support			2,718				1,847				871				47	%
Total Revenue		$	2,718			$	1,945			$	773				40	%

Revenue from Customer 1 increased by $0.8 million, or 40% to $2.7 million for the year ended December 31, 2025, as compared to $1.9 million for the year ended December 31, 2024. Software services decreased by $0.1 million, or 100 % to $0 for the year ended December 31, 2025, as compared to $0.1 million for the year ended December 31, 2024. Managed Services and Support revenue increased by $0.9 million, or 47% to $2.7 million for the year ended December 31, 2025, as compared to $1.8 million for the year ended December 31, 2024.

Cost of revenue (exclusive of depreciation /amortization)

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Cost of revenue (exclusive of depreciation /amortization)		$	12,001			$	8,806			$	3,195				36	%

Cost of revenue (exclusive of depreciation /amortization) increased by $3.2 million, or 36 % to $12 million for the year ended December 31, 2025, as compared to $8.8 million for the year ended December 31, 2024.

Gross margin

During the year ended December 31, 2025, the gross margin generated by the Company remained 13.6%, as compared to 24.7% during the year ended December 31, 2024. This is mainly 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 future gross margins to increase materially over the next few quarters.

Sales and marketing

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Sales and marketing		$	3,084			$	2,203			$	881				40	%

Sales and marketing increased by $0.9 million, or 40% to $3 million for the year ended December 31, 2025, as compared to $2.2 million for the year ended December 31, 2024.

General and administrative

		Year Ended
		December 31,
		(In thousands)								Changes
		2025				2024				Amount				%
General and administrative		$	7,337			$	3,950			$	3,387				86	%

General and administrative increased by $3.4 million, or 86% to $7.3 million for the year ended December 31, 2025, as compared to $4 million for the year ended December 31, 2024.

Bad debt expense

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Bad debt expense		$	17			$	170			$	(153	)			(90	)%

Bad debt expense decreased by $0.2 million, or 90% to $0.02 million for the year ended December 31, 2025, as compared to $0.2 million for the year ended December 31, 2024.

Research and development

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Research and development		$	536			$	429			$	107				25	%

Research and development increased by $0.1 million, or 25% to $0.5 million for the year ended December 31, 2025, as compared to $0.4 million for the year ended December 31, 2024.

Depreciation and amortization

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Depreciation and amortization		$	705			$	889				(184	)			(21	)%

Depreciation and amortization decreased by $0.2 million, or 21% to $0.7 million for the year ended December 31, 2025, as compared to $0.9 million for the year ended December 31, 2024.

Interest expense

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Interest expense		$	567			$	1,213			$	(646	)			(53	)%

Interest expense decreased by 53% to $0.6 million for the year ended December 31, 2025, as compared to $1.2 million for the year ended December 31, 2024.

Other income

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Other income		$	857			$	7			$	850				12,143	%

Other income increased by 12,143% to $0.9 million for the year ended December 31, 2025, as compared to $0.01 million for the year ended December 31, 2024.

Provision for income taxes

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Provision for income taxes		$	-			$	12			$	(12	)			(100	)%

Provision for income taxes decreased by 100% to $0 for the year ended December 31, 2025, as compared to $0.01 million for the year ended December 31, 2024.

Changes in fair value

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Changes in fair value		$	41			$	-			$	41				100	%

Changes in fair value remained $0.04 million for the year ended December 31, 2025, showing an increase of 100%, as compared to $0 for the year ended December 31, 2024.

Forex loss

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Forex loss		$	(18	)		$	-			$	(18	)			(100	)%

Forex loss increased by 100% to $0.02 million for the year ended December 31, 2025, as compared to $0 for the year ended December 31, 2024.

Revenue, Cost of Revenue and Operating Profit by Operating Segments

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Software services		$	8,255			$	4,692			$	3,563				76	%
Managed services and support			5,358				6,716				(1,358	)			(20	)%
Corporate & others			278				288				(10	)			(3	)%
Net revenue		$	13,891			$	11,696			$	2,195				19	%

We manage our business under three operating segments, which are Software Services, Managed Services and Support and Corporate & Others.

Revenue from Software Services increased by $3.6 million, or 76% to $8.3 million for the year ended December 31, 2025, as compared to $4.7 million for the year ended December 31, 2024. Revenue from Managed Services and Support decreased by $1.4 million, or 20% to $5.4 million for the year ended December 31, 2025, as compared to $6.7 million for the year ended December 31, 2024. Revenue from Corporate & Others decreased by $0.01 million, or 3% to $0.3 million for the year ended December 31, 2025, as compared to $0.3 million for the year ended December 31, 2024.

Factors affecting revenues of Software Services, Managed Services and Support and Corporate & Others

Our strategy is to achieve meaningful long-term revenue growth through sales of Managed Services and Support, and Corporate & Others, to existing and new clients within our target market. To increase cross-selling opportunities between our operating segments and support long-term revenue growth, our focus has shifted toward Managed Services and Support and Corporate & Others, which typically generate recurring revenue, compared to the Software Services segment, which is generally non-recurring in nature.

This strategic focus supports stronger client relationships and customer retention by leveraging our Managed Services and Support and Other offerings as ongoing value-added solutions. In addition, our emphasis on subscription-based, platform-driven delivery models is expected to help expand our customer base and improve customer retention, which can be more challenging in our traditional Software Services segment.

Our platforms, including CloudEz, DataEz, Readabl.AI, Ziloy, and Ezovion, are gaining increased market traction, which we expect will contribute to growth in revenue from platform services. To support this growth, we have made additional investments in Sales and Marketing as well as Research and Development to expand our Managed Services and Support and Corporate & Other offerings. We expect this trend to continue and to have a positive impact on our overall results of operations.

Cost of Revenue

		Year Ended
		December 31,
		(In '000)								Changes
		2025				2024				Amount				%
Software Services		$	6,893			$	3,962			$	2,931				74	%
Managed Services and Support			4,229				4,671				(442	)			(9	)%
Corporate & Others			879				173				706				408	%
Cost of Revenue		$	12,001			$	8,806			$	3,195				36	%

Cost of Revenue from Software Services increased by $2.9 million, or 74% to $6.9 million for the year ended December 31, 2025, as compared to $4 million for the year ended December 31, 2024. Cost of Revenue from Managed Services and Support decreased by $0.4 million, or 9% to $4.2 million for the year ended December 31, 2025, as compared to $4.7 million for the year ended December 31, 2024. Cost of Revenue from Corporate & others increased by $0.7 million, or 408% to $0.9 million for the year ended December 31, 2025, as compared to $0.2 million for the year ended December 31, 2024.

Segment operating profits by reportable segment were as follows:

		For the Year ended December 31, 2025
Particulars		Software Services				Managed Services and Support				Corporate & Others				Total
Net revenue		$	8,255			$	5,358			$	278			$	13,891
Less:
Cost of revenue			(6,893	)			(4,229	)			(879	)			(12,001	)
Segment gross profit			1,362				1,129				(601	)			1,890
Sales and marketing			(833	)			(493	)			(1,758	)			(3,084	)
General and administrative			(732	)			(304	)			(6,301	)			(7,337	)
Bad debts			-				-				(17	)			(17	)
Research and development			(222	)			-				(314	)			(536	)
Segment operating profit/(loss)		$	(425	)		$	332			$	(8,991	)		$	(9,084	)
Interest expense			-				-				(567	)			(567	)
Depreciation and amortization			(419	)			(272	)			(14	)			(705	)
Other income			-				-				857				857
Forex loss			-				-				(18	)			(18	)
Changes in fair value			-				-				41				41
Income/(Loss) before income tax			(844	)			60				(8,692	)			(9,476	)
Income tax			-				-				-				-
Net income/(loss)		$	(844	)		$	60			$	(8,692	)		$	(9,476	)

		For the Year ended December 31, 2024
Particulars		Software Services(*)				Managed Services and Support(*)				Corporate & Others(*), (1)				Total
Net Revenue		$	4,692			$	6,716			$	288			$	11,696
Less:															-
Cost of revenue			(3,962	)			(4,671	)			(173	)			(8,806	)
Segment gross profit			730				2,045				115				2,890
Sales and marketing			(505	)			(722	)			(976	)			(2,203	)
General and administrative			(195	)			(279	)			(3,476	)			(3,950	)
Bad debts											(170	)			(170	)
Research and development			-				-				(429	)			(429	)
Segment operating profit / (loss)		$	30			$	1,044			$	(4,936	)		$	(3,862	)
Interest expense			-				-				(1,213	)			(1,213	)
Depreciation and amortization			(356	)			(511	)			(22	)			(889	)
Other income			-				-				7				7
Income/(Loss) before income tax			(326	)			533				(6,164	)			(5,957	)
Income tax			-				-				(12	)			(12	)
Net income/(loss)		$	(326	)		$	533			$	(6,176	)		$	(5,969	)

(1)	formerly classified under Platform Segment.

(*)	Prior year figures have been reclassified for the purpose of comparison.

Liquidity and Capital Resources

		As of December 31,
		2025				2024
		(In '000)
Cash, cash equivalents and short-term investments		$	7,625			$	20
Total cash, cash equivalents and short-term investments		$	7,625			$	20

		For The Year Ended December 31,
		2025				2024
		(In '000)
Cash flows used in operating activities		$	(16,523	)		$	(1,081	)
Cash flows used in investing activities			(1,751	)			-
Cash flows provided by/(used in) financing activities			25,879				(133	)
Net increase/(decrease) in cash and cash equivalents		$	7,605			$	(1,214	)

As of December 31, 2025, our principal sources of liquidity for working capital purposes were cash, cash equivalents and short-term investments totaling $7.6 million.

The Company incurred losses from operations of $9,789 and $4,751, negative operating cash flows of $16,523 and $1,081, and accumulated deficits of $42,999 and $33,571 for the years ended December 31, 2025 and 2024, respectively. Management evaluated these conditions and concluded that they have been sufficiently mitigated by the Company's net assets of $9,944 (including cash and cash equivalents of $7,625) at December 31, 2025, and the gross proceeds of $9,825 raised through equity issuance subsequent to the year-end. Accordingly, management has concluded that the Company has sufficient resources to fund operations and meet its obligations as they become due for a period of at least twelve months from the date these consolidated financial statements are issued. Refer to Note 9 for further details.

The Company has historically financed its operations primarily through equity issuances, debt financings, and other capital raising transactions. Management is actively pursuing additional sources of liquidity and is focused on improving operating performance through revenue growth, expense management, and working capital optimization. The Company may also seek strategic alternatives or other financing arrangements to support its capital requirements.

There can be no assurance, however, that the Company will be able to obtain additional capital on acceptable terms, or at all, or that it will achieve sustainable positive cash flows from operations. Failure to obtain additional funding or achieve improved operating performance could have a material adverse effect on the Company's business, financial condition, and results of operations.

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. A good current ratio is between 1.2 to 2, which means that a business has 2 times more current assets than liabilities to cover its debts. The Company's current ratio, as of December 31, 2025, is 1.03 compared to 0.33 as of December 31, 2024.

The Company's debt equity ratio, as of December 31, 2025, is 1.08, compared to (0.50) as on December 31, 2024. 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.

Sources of Liquidity

As of December 31, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $7.6 million. 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 routine working capital over the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, our ability to fund such capital requirements and in turn attract investors to invest in our business, the expansion of sales and marketing activities and the ongoing investments in platform development.

Operating Activities

Net cash used in operating activities was ($16.5) million and ($1.1) million respectively for the years ended December 31, 2025, and 2024.

Investing Activities

Net cash used in investing activities was ($1.8) million and $0 respectively for the years ended December 31, 2025, and 2024.

Financing Activities

Net cash generated from financing activities was $25.9 million and net cash used in financing activities was ($0.1) respectively for the years ended December 31, 2025, and 2024.

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, 2025.