Healthcare Triangle Inc.
11/13/2025 | Press release | Distributed by Public on 11/13/2025 07:02
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
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 condensed consolidated financial statements and the related notes thereto, and the consolidated financial statements and the related notes thereto all included elsewhere in this prospectus. 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" contained in the Company's final prospectus for its initial public offering filed with the Securities and Exchange Commission ("SEC").
Overview
Healthcare Triangle, Inc. (the "Company") 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 Technologies Inc, transferred its Life Sciences business to us. As of September 30, 2025, we had a total of 59 full time employees and 32 sub-contractors, including 42 certified cloud engineers, 21 Epic Certified EHR experts, 12 MEDITECH Certified EHR experts and 3 Admin sub-contractors. Many of the senior management team and the members of our board of directors hold advanced degrees and some are leading experts in the field of technology, investment banking and public markets.
During the period ended September 30, 2025, the Company effected a 1-for 249 reverse split of its issued and outstanding common stock on August 01, 2025. The reverse split reduced the number of issued and outstanding shares of common stock in proportion to the split ratio, without changing the total authorized shares or the par value per share.
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, 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 technology allows us to reinforce our clients' progress by accelerating their innovation. Our healthcare IT services include Electronic Health Records (EHR) and software implementation, optimization, extension to community partners, as well as application managed services, and backup and disaster recovery capabilities on public cloud. Our 24x7 managed services are used by hospitals and health systems, payers, Life Sciences, and biotech organizations in their effort to improve health outcomes and deliver deeper, more meaningful patient and consumer experiences. Through our services, our customers achieve a return on investment in their technology by delivering measurable improvements. Combined with our software and solutions, our services provide clients with an end-to-end partnership for their technology innovation.
Our Business Model
The majority of our revenue is generated by our full-time employees 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, and Managed Services and Support include post implementation support and cloud hosting.
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 sales, and marketing to promote our solutions to new and existing customers in various geographies, and other operational and administrative functions in systems, controls and governance to support our expected growth and our transition to a public company. We anticipate that our employee strength will increase over time because of such investments.
On June 16, 2025 (the "Closing date"), Healthcare Triangle, Inc. through its wholly owned subsidiary Quantum Nexus Inc. (the "Company") and Niyama Healthcare, Inc., a Delaware corporation, a provider of Mental Health and Hospital Information Systems technology, across India, South East Asia, and Europe (the "Seller") entered into an Asset and Stock Transfer Agreement (the "Agreement"). Pursuant to the Agreement, the Company agreed to purchase from the Seller the Transferred Assets (comprising of contracts, intellectual property and related assets), and (ii) the Seller's 100% shareholder equity interest in Ezovion Solutions Private Limited, Chennai, India - Hospital Information Systems SaaS Provider as Seller's Equity (the "Transferred Equity"), as a whole and as a going concern in exchange for the Purchase Price (as defined below).
The total consideration for the acquisition, which is referred to herein as the "Purchase Price", is $5,700 which includes: (1) $1,500 in cash, of which $1,200 is due on the Closing Date and $300 to be paid at the later of the satisfaction of certain withholding requirements or within 120 days of the Closing Date; during the period ended September 30, 2025, the Company made payments amounting to $1,045 out of the $1,500 obligation. The remaining balance of $455 is recognized as payable as at September 30, 2025. (2) 1,388,041 shares of restricted common stock of the Company equal to $3,000 divided by $2.16, issued on the Closing Date; and (3) up to $1,200 in earn-out payments contingent on first-year financial performance targets to be agreed upon mutually.
The final determination of the fair values, purchase consideration, related income tax impacts and residual goodwill will be completed as soon as practicable, and within the measurement period of up to one year from the acquisition date as permitted under GAAP. Any adjustments to provisional amounts that are identified during the measurement period will be recorded in the reporting period in which the adjustment is determined.
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 successfully market and persuade new customers to adopt our Software as a Service ("SaaS") offerings. We are in the early stages of marketing our SaaS offerings such as DataEz, CloudEz and Readabl.AI, and do not yet have enough information about our competition or customer acceptance to determine whether or not recurring subscription revenue from these offerings will have a material impact on our revenue growth.
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
During the quarter ended September 30, 2025, the Company generated revenues of approximately $3.49 million compared to revenue of $2.40 million for the quarter ended September 30, 2024 which represents an increase of $1.09 million or 45% compared to the previous year comparative quarter. Similarly, the Company generated revenues of approximately $10.8 million during the nine months ended September 30, 2025, compared to a revenue of $9.5 million for the nine months ended September 30, 2024, which represents an increase of $1.3 million or 13.7%.
We provide our services and manage our business under these operating segments:
| ● | Software services |
| ● | Managed services and support |
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 upon 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.
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.
Gross Margin
In the current period, the gross margin generated by the Company has been reduced to 18% and 13% in the 3 months and 9 months ended September 30, 2025, as compared to 30% and 27% in the 3 months and 9 months ended September 30, 2024, respectively. This is due to the acquisition and onboarding of the SecureKloud contracts, which had been negotiated at lower margins prior to the acquisition. Going forward, all new contracts are being negotiated at higher margins and as a result we expect future profit margins to increase materially over the next few quarters.
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 future 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 future sales and marketing expenses to continue to increase in absolute dollar terms as we strategically invest to expand our business, although it may vary from period to period as a percentage of total revenues.
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 capitalized software development costs, and amortization of intangible assets. We expect our depreciation and amortization expense to increase as we continue to invest and expand our business organically and through acquisitions.
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.
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:
| Three Months Ended September 30, | ||||||||||||||||
| 2025 | % Sales | 2024 | % Sales | |||||||||||||
| Revenue | $ | 3,489 | 100 | % | $ | 2,413 | 100 | % | ||||||||
| Cost of revenue (exclusive of depreciation /amortization) | 2,871 | 82 | % | 1,691 | 70 | % | ||||||||||
| (Reversal)/Allowance for current expected credit loss | (20 | ) | 0 | % | - | 0 | % | |||||||||
| Research and development | 59 | 2 | % | 175 | 7 | % | ||||||||||
| Sales and marketing | 1,022 | 29 | % | 294 | 12 | % | ||||||||||
| General and administrative | 2,085 | 60 | % | 1,077 | 45 | % | ||||||||||
| Depreciation and amortization | 63 | 2 | % | 343 | 14 | % | ||||||||||
| Other income | (731 | ) | (21 | )% | - | 0 | % | |||||||||
| Interest expense | 32 | 1 | % | 80 | 3 | % | ||||||||||
| Forex loss | 14 | 0 | % | - | 0 | % | ||||||||||
| Provision for income tax | - | 0 | % | 2 | 0 | % | ||||||||||
| Net loss | $ | (1,906 | ) | (55 | )% | $ | (1,249 | ) | (52 | )% | ||||||
Revenue from operations
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Revenue | $ | 3,489 | $ | 2,413 | $ | 1,076 | 45 | % | ||||||||
Revenue increased by $1.07 million, or 45% to $3.48 million for the quarter ended September 30, 2025, as compared to $2.41 million for the quarter ended September 30, 2024. The Software Services are typically short-term engagements to provide software consulting and development services, which do not require continual third-party maintenance. Managed Services and Support such as cloud hosting, and cloud disaster recovery requires continuous monitoring.
Our top 5 customers accounted for 56% of the revenue in quarter ended September 30, 2025, and 61% during quarter ended September 30, 2024, respectively.
The following table has the breakdown of our revenues for the quarter ended September 30, 2025, and 2024 for each of our top 5 customers.
Top Five Customers Revenue for three months ended September 30, 2025 and 2024.
(In thousands, except percentages)
|
Three months ended September 30, 2025 |
Three months ended September 30, 2024 |
|||||||||||||||
| Customer | Amount | % of Revenue | Amount | % of Revenue | ||||||||||||
| Customer 1 | $ | 689 | 20 | % | $ | 500 | 21 | % | ||||||||
| Customer 2 | 583 | 17 | % | 300 | 12 | % | ||||||||||
| Customer 3 | 296 | 8 | % | 261 | 11 | % | ||||||||||
| Customer 4 | 235 | 7 | % | 236 | 10 | % | ||||||||||
| Customer 5 | 133 | 4 | % | $ | 174 | 7 | % | |||||||||
The following table provides details of Customer 1 revenue by operating segments:
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Software services | $ | - | $ | 283 | $ | (283 | ) | 100 | % | |||||||
| Managed services and support | 689 | 217 | 472 | 218 | % | |||||||||||
| Total Revenue | $ | 689 | $ | 500 | $ | 189 | 38 | % | ||||||||
Total revenue from Customer 1 increased by $0.2 million, or 38% to $0.68 million for the quarter ended September 30, 2025, as compared to $0.50 million for the quarter ended September 30, 2024. Software Services revenue decreased by $0.28 million or 100% to nil for the quarter ended September 30, 2025, as compared to $0.28 million for the quarter ended September 30, 2024. Managed Services and Support revenue increased by $0.47 million, or 218% to $0.68 million for the quarter ended September 30, 2025, as compared to $0.21 million for the quarter ended September 30, 2024.
Cost of Revenue (exclusive of depreciation/amortization)
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Cost of revenue (exclusive of depreciation/amortization) | $ | 2,871 | $ | 1,691 | $ | 1,180 | 70 | % | ||||||||
Cost of revenue, excluding depreciation and amortization increased by $1.18 million, or 70%, to $2.87 million for the quarter ended September 30, 2025, as compared to $1,69 million for the quarter ended September 30, 2024.
Research and Development
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Research and development | $ | 59 | $ | 175 | $ | (116 | ) | (66 | )% | |||||||
Research and Development expenses decreased by $0.11 million, or 66% to $0.05 million for the quarter ended September 30, 2025, as compared to $0.17 million for the quarter ended September 30, 2024.
Sales and Marketing
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Sales and marketing | $ | 1,022 | $ | 294 | $ | 728 | 248 | % | ||||||||
Sales and Marketing expenses increased by $0.72 million, or 248% to $1.02 million for the quarter ended September 30, 2025, as compared to $0.29 million for the quarter ended September 30, 2024.
General and Administrative
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| General and administrative | $ | 2,085 | $ | 1,077 | $ | 1,008 | 94 | % | ||||||||
General and Administrative expenses increased by $1.00 million, or 94% to $2.08 million for the quarter ended September 30, 2025, as compared to $1.07 million for the quarter ended September 30, 2024.
Depreciation and Amortization
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Depreciation and amortization | $ | 63 | $ | 343 | $ | (280 | ) | (82 | )% | |||||||
Depreciation and Amortization expenses decreased by $0.28 million, or 82% to $0.06 million for the quarter ended September 30, 2025, as compared to $0.34 million for the quarter ended September 30, 2024.
Interest Expense
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Interest expense | $ | 32 | $ | 80 | $ | (48 | ) | (60 | )% | |||||||
Interest expenses decreased by $0.04 million, or 60% to $0.03 million for the quarter ended September 30, 2025, as compared to $0.08 million for the quarter ended September 30, 2024.
Other income
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Other income | $ | 731 | $ | - | $ | 731 | 100 | % | ||||||||
Other income increased by $0.73 million, or 100% to $0.73 million for the quarter ended September 30, 2025, as compared to nil for the quarter ended September 30, 2024.
Revenue, Cost of Revenue and Operating Profit by Operating Segment
We manage and report our business under two operating segments which are Software services and Managed services and support.
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Software services | $ | 1,977 | 775 | 1,202 | 155 | % | ||||||||||
| Managed services and Support | 1,379 | 1,571 | (192 | ) | (12 | )% | ||||||||||
| Corporate and others | 133 | 67 | 66 | 99 | % | |||||||||||
| Revenue | $ | 3,489 | $ | 2,413 | $ | 1,076 | 45 | % | ||||||||
Revenue from Software services increased by $1.20 million, or 155% to $1.97 million for the quarter ended September 30, 2025, as compared to $0.77 million for the quarter ended September 30, 2024. Revenue from Managed services and support decreased by $0.19 million, or 12% to $1.37 million for the quarter ended September 30, 2025, as compared to $1.57 million for the quarter ended September 30, 2024. Revenue from Corporate and others increased by $0.06 million, or 99% to $0.13 million for the quarter ended September 30, 2025, as compared to $0.07 million for the quarter ended September 30, 2024.
Factors affecting revenues of Software Services, and Managed Services and Support
Our strategy is to achieve meaningful long-term revenue growth through sales of Managed Services and Support to existing and new clients within our target market. In order to increase our cross-selling opportunity between our operating segments and realize long time revenue growth, our focus has shifted more towards Managed Services and Support which is of recurring nature when compared to Software Services segment which is of non-recurring nature. This also helps in retaining existing customers by leveraging our Managed Services and Support and Platform Services as a growth agent. This renewed focus on driving demand for subscription and platform-based model will help us in expanding our customer base and enhance customer retention which is a challenge for our existing Software Services segment. Software Services contracts are driven by Time and Material and on-site employees delivering services at customers location.
Cost of Revenue
|
Three Months Ended September 30, |
Changes | |||||||||||||||
| 2025 | 2024 | Amount | % | |||||||||||||
| Software services | $ | 1,667 | $ | 531 | $ | 1,136 | 214 | % | ||||||||
| Managed services and support | 1,092 | 1,117 | (25 | ) | (2 | )% | ||||||||||
| Corporate and others | 112 | 43 | 69 | 160 | % | |||||||||||
| Cost of revenue | $ | 2,871 | $ | 1,691 | $ | 1,180 | 70 | % | ||||||||
Cost of revenue from Software services increased by $1.13 million, or 214% to $1.66 million for the quarter ended September 30, 2025, as compared to $0.53 million for the quarter ended September 30, 2024. Cost of revenue from Managed Services and Support decreased by $0.02 million, or 2% to $1.09 million for the quarter ended September 30, 2025, as compared to $1.11 million for the quarter ended September 30, 2024. Cost of revenue from corporate and others increased by $0.07 million, or 160% to $0.11 million for the quarter ended September 30, 2025, as compared to $0.04 million for the quarter ended September 30, 2024.
Segment operating results by reportable segments were as follows:
Operating results by Operating Segment
| Three months ended September 30, 2025 | ||||||||||||||||
| Particulars |
Software Services |
Managed Services |
Corporate and others |
Total | ||||||||||||
| Revenue from customers | $ | 1,977 | $ | 1,379 | $ | 133 | $ | 3,489 | ||||||||
| Cost of revenue | (1,667 | ) | (1,092 | ) | (112 | ) | (2,871 | ) | ||||||||
| Segmental gross profit | $ | 310 | $ | 287 | $ | 21 | $ | 618 | ||||||||
| Net loss | $ | (1,050 | ) | $ | (662 | ) | $ | (194 | ) | $ | (1,906 | ) | ||||
Due from related parties:
On January 1, 2025, the Company entered into a Master Service Agreement with Securekloud Technologies Inc. ("SKI") and Securekloud Technologies Limited ("SKL). The initial term of the agreement is twenty-four months, which is extendable based on mutual consent. As per the Master Services Agreement, SKI and SKL provide technical resources according to the statement of work from the Company.
In addition, on January 1, 2025, the Company entered into a Rental Sublease Agreement with Securekloud Technologies Inc. ("SKI"), The initial term of the agreement between SKI and the principal lessor is twenty-four months, which is extendable based on mutual consent. As per the terms of the Rental Sublease Agreement, the cost incurred by SKI on behalf of the Company are settled at cost.
41
The balance outstanding from the affiliates as of September 30, 2025 is $3,502 as compared to $497 as of December 31, 2024. The balance as at September 30, 2025 is unsecured, non-interest bearing and is expected to be settled within six months from the balance sheet date, as outlined below
| - | SecureKloud Technologies Limited(*) (public company in India) balance outstanding as of September 30, 2025 is $3,287 (including the balance previously owed by SecureKloud Technologies Inc.) as compared to nil as of December 31, 2024, |
| - | SecureKloud Technologies, Inc.,(*) balance outstanding as of September 30, 2025 is nil as compared to $497 as of December 31, 2024, and |
| - | Blockedge Technologies, Inc., balance outstanding as of September 30, 2025 is $215 as compared to nil as of December 31, 2024 |
| (*) | During the period ended September 30, 2025, the Company, together with SecureKloud Technologies Limited and SecureKloud Technologies, Inc., entered into a tripartite agreement, pursuant to which, SecureKloud Technologies Limited took over the contractual obligations, outstanding balance and transactions between the Company and SecureKloud Technologies, Inc. Accordingly, the balance receivable from SecureKloud Technologies Inc., has since been novated to SecureKloud Technologies, Limited as of the effective date of the novation. |
Related party transactions:
Following are the transactions with the above related parties during the period:
| Related Parties | Nature of transactions |
Quarter ended September 30, 2025 |
Quarter ended September 30, 2024 |
Nine-months ended September 30, 2025 |
Nine-months ended September 30, 2024 |
|||||||||||||
| SecureKloud Technologies Limited, India | Services received | $ | 470 | - | $ | 1,945 | - | |||||||||||
| Amounts advanced | $ | 525 | - | $ | 2,793 | - | ||||||||||||
| SecureKloud Technologies, Inc. | Services received | - | $ | 547 | $ | 269 | $ | 2,793 | ||||||||||
| Amounts advanced | - | $ | 184 | $ | 1,666 | $ | 2,489 | |||||||||||
| Services rendered | - | - | $ | 138 | - | |||||||||||||
| Amounts collected | $ | 27 | - | $ | 407 | - | ||||||||||||
| Rent expenses paid | $ | 90 | $ | 34 | $ | 135 | $ | 101 | ||||||||||
| Blockedge Technologies, Inc. | Services received | $ | 40 | - | $ | 70 | - | |||||||||||
| Amounts advanced | $ | 140 | - | $ | 285 | - | ||||||||||||
| Revenue | $ | 9 | - | $ | 9 | - | ||||||||||||
| Accounts receivable | $ | 9 | - | $ | 9 | - | ||||||||||||
| Key management personnel | Remuneration | $ | 133 | $ | 70 | $ | 385 | $ | 209 | |||||||||
Liquidity and Capital Resources
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 upto 2 times more current assets than liabilities to covers its debts. The Company's current ratio, as at September 30, 2025 is 1.13 compared to 0.22 as at December 31, 2024.
The Company's current debt equity ratio, as at September 30, 2025 financial statement is 0.14, compared to (0.10) as at December 31, 2024.
The Company does not have inventory and hence the quick ratio is the same as the current ratio.
Sources of Liquidity
|
As of September 30, 2025 |
As of September 30, 2024 |
|||||||
| Cash and cash equivalents | $ | 1,629 | $ | 28 | ||||
As of September 30, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $1.63 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 working capital over the next 12 months. Our future capital requirements will depend on many factors including our growth rate, subscription renewal activity, the expansion of sales and marketing activities and the ongoing investments in platform development.
Cash Flows
The following table presents a summary of our consolidated cash flows provided by / (used in) operating, investing, and financing activities for the periods indicated:
|
As of September 30, 2025 |
As of September 30, 2024 |
|||||||
| Cash flows used in operating activities | $ | (9,689 | ) | $ | (33 | ) | ||
| Cash flows used in investing activities | (1,289 | ) | - | |||||
| Cash flows provided by / (used in) financing activities | 12,587 | (1,174 | ) | |||||
| Net increase / (decrease) in cash and cash equivalents | $ | 1,609 | $ | (1,206 | ) | |||
Operating Activities
Net cash used in operating activities during the nine months ended September 30, 2025, was $(9.69) million compared to $(0.03) million for the nine months ended September 30, 2024.
Investing Activities
Net cash used in investing activities was $(1.29) million for the nine months ended September 30, 2025 mainly representing partial payment of the acquisition cost (see note 3.3), compared to nil for the nine months ended September 30, 2024.
Financing Activities
Cash inflow from financing activities was $12.58 million for the nine months ended September 30, 2025, compared to a net outflow of $(1.17) million for the nine months ended September 30, 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 September 30, 2025.
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