Healthcare Triangle Reports 69% Revenue Decline, Net Loss Improvement in Q3 2024

Healthcare Triangle, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ended September 30, 2024. The company experienced a substantial decline in revenue, with net revenue for the three months amounting to $2.4 million, a decrease of 69% from $7.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenue totaled $9.5 million, down 64% from $26.1 million in the prior year. This decline is attributed to reduced sales across its Software Services, Managed Services, and Platform Services segments, primarily due to the loss of a major customer.

Despite the revenue drop, Healthcare Triangle reported a decrease in operating expenses, which totaled $1.9 million for the quarter, down from $3.2 million in Q3 2023. The company recorded a loss from operations of $1.2 million for the quarter, an improvement from a loss of $1.5 million in the same period last year. The net loss for Q3 2024 was $1.2 million, compared to a net loss of $1.9 million in Q3 2023, indicating a 36% improvement in net loss before income tax expenses.

Total assets decreased significantly to $4.8 million as of September 30, 2024, from $9.6 million at the end of 2023. The company’s total stockholders’ equity fell to a deficit of $1.8 million, down from a positive equity of $538,000 at the end of 2023. Cash and cash equivalents also saw a sharp decline, dropping to $28,000 from $1.2 million at the end of 2023.

Healthcare Triangle has been actively managing its capital structure, entering into an At-the-Market (ATM) sales agreement and issuing convertible promissory notes to raise funds. As of the report date, the company had sold $956,000 of shares through the ATM and had a remaining capacity of $1.4 million. Additionally, on October 4, 2024, the company entered into an Asset Transfer Agreement with SecureKloud Technologies, Inc. to acquire assets valued at up to $7.2 million, payable through the issuance of 1.6 million shares of Series B Convertible Preferred Stock.

The company continues to focus on its core services in the healthcare and life sciences sectors, emphasizing digital transformation, security, and compliance. However, the ongoing financial losses and reduced cash reserves raise concerns about its operational sustainability moving forward.