Healthcare Triangle switches to new accounting firm

Healthcare Triangle , Inc. (NASDAQ:HCTI), a micro-cap technology company with a market value of approximately $10 million, announced a change in its independent registered public accounting firm. According to InvestingPro data, the company currently shows weak financial health metrics and has faced significant challenges, with revenue declining by about 65% in the last twelve months. On Thursday, the board of directors directed the dismissal of M&K CPAS, PLLC, the firm’s previous accountant. The decision to terminate M&K’s services was not due to any disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedures for the year ended December 31, 2024, or up to the date of the report.

The company, in compliance with regulatory requirements, has obtained a letter from M&K CPAS, PLLC confirming their agreement with the statements made about the absence of disagreements or reportable events. This letter is included as Exhibit 16.1 in the Form 8-K filed with the Securities and Exchange Commission.

Following the termination of M&K, Healthcare Triangle has engaged SRCO Professional Corporation, Chartered Professional Accountants, as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. The appointment of SRCO was approved by both the Audit Committee and the Board of Directors, and it is seen as being in the best interests of the company.

Prior to the engagement, Healthcare Triangle had not consulted with SRCO regarding any accounting principles or transactions, nor had there been any disagreements or reportable events with the newly appointed firm.

This transition in certifying accountants comes as part of the company’s ongoing corporate governance and oversight measures. Healthcare Triangle’s decision to change its auditor is disclosed in the context of regulatory norms and corporate transparency. InvestingPro analysis reveals concerning financial indicators, including a current ratio of 0.21, suggesting potential liquidity challenges. Subscribers to InvestingPro have access to over 8 additional key insights about HCTI’s financial position and market performance.

The information provided in this article is based on a press release statement from Healthcare Triangle, Inc. and the attached exhibits from the company’s recent SEC filing. The company’s next earnings report is expected on May 15, 2025, which will provide further clarity on its financial position and the impact of these corporate changes.

In other recent news, Healthcare Triangle, Inc. announced that its financial statements for the year ended December 31, 2023, will be restated due to identified errors. This decision follows a re-audit by M&K CPAS, PLLC, which revealed necessary adjustments including a write-down of intangible assets and revisions related to the acquisition of Devcool Inc. Additionally, Healthcare Triangle disclosed a $15.2 million PIPE offering to raise funds, with RBW Capital, LLC and Spartan Capital Securities, LLC acting as co-placement agents.

The company also held its virtual annual meeting, where shareholders approved several key proposals, including amendments to the 2020 stock incentive plan and the appointment of M&K CPAS, PLLC as the independent auditor for the fiscal year ending December 31, 2024. In leadership news, Healthcare Triangle appointed David Ayanoglou as the new Chief Financial Officer and Sujatha Ramesh as a Director on the Board. Ramesh was also named as the new Chief Operating Officer, bringing her extensive experience in technology and financial services to the role.

These developments reflect Healthcare Triangle’s ongoing strategic initiatives and commitment to enhancing its operational and financial framework.

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