Due from Affiliates |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Due from Affiliates [Abstract] | |
| Due from Affiliates | 6) Due from Affiliates
On October 21, 2024, Healthcare Triangle, Inc acquired substantially all of the business, assets, and operations relating to cloud and technology domain of SecureKloud Technologies, Inc a Nevada corporation. The Acquired Assets were acquired by Healthcare Triangle, Inc under an Asset Transfer Agreement, dated October 21, 2024.
The consideration for the Acquired Assets consisted of the issuance of 1,600,000 shares of newly designated Series B Convertible Preferred Stock (“Series B Preferred Stock”) which is/are convertible each into 10 common shares at the holder’s option (subject to shareholder’s approval), for a total consideration of USD 7.44 million.
This is common control transaction, and the fair value of the assets acquired were calculated as $7,435. The transaction was treated as an asset acquisition and due to the common control nature, the company recorded deemed dividend and the acquired assets at $0, which was the carrying value of the common control seller.
On January 1, 2025, the Company entered into a Rental Sublease Agreement with Securekloud Technologies Inc ("SKI") and Master Service Agreement with Securekloud Technologies Inc ("SKI") and Securekloud Technologies Limited ("SKL). As per the Master Services Agreement, SKI and SKL provide technical resources according to the statement of work from the Company. The initial term of the agreement between SKI and the principal lessor is twenty-four months, which is extendable based on mutual consent. The Company received services amounting to $1,132 and $813 for the quarter ended March 31, 2025, and 2024 respectively. The Company has paid for these services during the quarter.
As per the terms of the Rental Sublease Agreement, the cost incurred by SKI on behalf of the Company are settled at cost. The Company received services amounting to $43 and $33 for the quarter ended March 31, 2025, and 2024 respectively. The Company has paid for rent during the quarter. |