HEALTHCARE TRIANGLE, INC. Management's discussion and analysis of financial status and operating performance. (Form 10-Q) | Market Filter

2021-11-24 02:33:24 By : Ms. Danrong Huang

Impact of the COVID-19 pandemic

Invest to expand business

New and old customers adopt our solutions

Solution and software service revenue mix.

The company has no inventory, so the quick ratio is the same as the current ratio.

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

The revenue of the solution delivery model consists of a series of individually identifiable and distinguishable services, which represent the performance obligations performed over time. During the reporting period, the company only generated platform revenue through the solution delivery model, that is, non-recurring revenue.

In the near future, we expect our general and administrative expenses will continue to increase to support business growth. In the long run, we expect general and administrative expenses as a percentage of revenue to decline.

Other income (expenses), net includes financial costs and foreign currency gains and losses.

Before the revenue recognition criteria are met, the advance payment to the customer that exceeds the revenue is recorded as deferred revenue.

Uninvoiced accounts receivable are contract assets related to our professional services, and related bills will occur in the future. Uninvoiced accounts receivable are classified as accounts receivable on the consolidated balance sheet.

Although we believe that our estimation and judgment methods for revenue recognition are reasonable, the actual results may be different, and we may face an increase or decrease in revenue that may be significant.

Three months ending September 30, 2021 and 2020

For the quarter ended September 30, 2021, our top 5 customers accounted for 79% and 88% of the quarter ended September 30, 2020.

The abstracts of MSA and SOW are not a complete description of MSA and any specific SOW terms, but are defined as a whole by referring to MSA and SOW. Each abstract is submitted as part of the attachment to the registration statement of this prospectus.

Cost of revenue (excluding depreciation/amortization)

Cost of revenues (excluding depreciation and amortization) for the quarter ended September 30, 2021 decreased by $0.1 million or 0% to $5.3 million, compared to $5.3 million for the quarter ended September 30, 2020.

Compared with the $600,000 for the quarter ended September 30, 2020, the R&D expenses for the quarter ended September 30, 2021 increased by $1.6 million, or 301%, to $2.2 million, mainly due to the development of the platform. Increased investment.

Revenue, revenue cost, and operating profit by business sector

Factors affecting revenue from software services, hosting services, and support and platform services

Our CloudEz and DataEz platforms have become more and more popular, which has led to increased revenue from hosting services and support. We have made additional investments in sales and marketing and R&D to increase revenue from hosting services and support and platform services. We expect this trend to continue and have a net positive impact on overall operating results.

Segment operating profit divided by reporting segment is as follows:

Nine months ending September 30, 2021 and 2020

For the nine months ended September 30, 2021, our top 5 customers accounted for 75% of revenue and 80% for the nine months ended September 30, 2020.

Revenue from the top five customers for the nine months ended September 30, 2021

Revenue from the top five customers for the nine months ended September 30, 2020

Cost of revenue (excluding depreciation/amortization)

Cost of revenue (excluding depreciation/amortization) $ 17,828,791 $ 16,162,776 $ 1,666,015

The research and development expenses for the nine months ended September 30, 2021 increased by US$2.3 million or 157% to US$3.8 million, while the research and development expenses for the nine months ended September 30, 2020 were US$1.5 million, mainly due to Additional investment in platform development.

The depreciation and amortization expenses for the nine months ended September 30, 2021 increased by US$0.3 million or 5% to US$630,000, while the depreciation and amortization expenses for the nine months ended September 30, 2020 were 600,000 Dollar.

Revenue, revenue cost, and operating profit by business sector

Factors affecting revenue from software services, hosting services, and support and platform services

Our CloudEz and DataEz platforms have become more and more popular, which has led to increased revenue from hosting services and support. We have made additional investments in sales and marketing and R&D to increase revenue from hosting services and support and platform services. We expect this trend to continue and have a net positive impact on overall operating results.

As of September 30, 2021, our main sources of liquidity for working capital purposes are cash, cash equivalents, and short-term investments totaling US$1.1 million.

The net cash used in investing activities for the nine months ended September 30, 2021 was US$500,000, and the net cash for the nine months ended September 30, 2020 was US$100,000.

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