As
filed with the Securities and Exchange Commission on January 4, 2024
Registration
No. 333-[●]
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
____________________________
FORM
S-3
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
HEALTHCARE
TRIANGLE, INC.
(Exact
name of registrant as specified in its charter)
| Delaware |
|
7373 |
|
84-3559776 |
| (State
or other jurisdiction of incorporation or organization) |
|
(Primary
Standard Industrial Classification Code Number) |
|
(I.R.S.
Employer
Identification Number) |
____________________________
7901
Stoneridge Drive, Suite 220
Pleasanton,
CA 94588
(925)
270-4812
(Address,
including zip code, and telephone number, including area code, of registrant’s principal executive offices)
____________________________
Thyagarajan
Ramachandran
Chief
Financial Officer
Healthcare
Triangle, Inc.
7901
Stoneridge Drive, Suite 220
Pleasanton,
CA 94588
(925)
270-4812
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
____________________________
Copies
to:
Ross
Carmel, Esq.
Jeffrey
Wofford, Esq.
Sichenzia
Ross Ference Carmel LLP
1185
Avenue of the Americas, 31st Floor
New
York, NY 10036
(212)
930-9700
Approximate
date of commencement of proposed sale to the public: From time to time after this registration statement becomes effective.
If
the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check
the following box: ☐
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following
box: ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective
upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, please check the following box. ☒
If
this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional
securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company,
or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller
reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated
filer ☐ | Accelerated
filer ☐ |
| Non-accelerated filer ☐ | Smaller
reporting company ☒ |
| | Emerging
growth company ☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for comply
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such
date as the Commission, acting pursuant to such Section 8(a), may determine.
EXPLANATION
OF THE FILING
This
shelf registration statement will provide our company with the flexibility to issue and sell securities if and when deemed appropriate
and in the best interest of our stockholders. We may or may not issue and sell any securities under this registration statement. Filing
this registration statement merely gives us flexibility to issue registered securities if and when we deem doing so is appropriate and
in the best interest of our stockholders, without any unnecessary delays. This registration statement helps us maintain an optimal state
of readiness at all times.
This
registration statement contains two prospectuses:
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• |
a
base prospectus that covers the potential offering, issuance, and sale from time to time of our common stock, preferred stock, warrants,
debt securities, and units in one or more offerings with a total value of up to $50,000,000; and |
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• |
a
sales agreement prospectus covering the potential offering, issuance, and sale from time to time of shares of our common stock having
an aggregate gross sales price of up to $7,200,000 pursuant to an sales agreement with Dawson James Securities, Inc. |
The
base prospectus immediately follows this explanatory note. The specific terms of any securities to be offered pursuant to the base prospectus
will be specified in a prospectus supplement to the base prospectus. The sales agreement prospectus, which specifies the terms of our
common stock to be sold under the sales agreement, immediately follows the base prospectus. The common stock that may be offered, issued,
and sold under the sales agreement prospectus is included in the $50,000,000 of securities that may be offered, issued, and sold under
the base prospectus. Upon termination of the sales agreement, any portion of the $7,200,000 included in the sales agreement prospectus
that is not sold pursuant to the sales agreement will be available for sale in other offerings pursuant to the base prospectus.
The
information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting
an offer to buy these securities in any state or other jurisdiction where the offer or sale is not permitted.
PRELIMINARY
PROSPECTUS
SUBJECT TO COMPLETION, DATED JANUARY 4, 2024
$
50,000,000
HEALTHCARE
TRIANGLE, INC.
Common
Stock
Preferred
Stock
Warrants
Debt
Securities
Rights
Units
____________________________
This
prospectus will allow us to issue, from time to time at prices and on terms to be determined at or prior to the time of the offering,
up to $50,000,000 of any combination of the securities described in this prospectus, either individually or in units. We may also offer
common stock or preferred stock upon conversion of or exchange for the debt securities; common stock upon conversion of or exchange for
the preferred stock; common stock, preferred stock or debt securities upon the exercise of warrants, rights or performance of purchase
contracts; or any combination of these securities upon the performance of purchase contracts.
This
prospectus describes the general terms of these securities and the general manner in which these securities will be offered. We will
provide you with the specific terms of any offering in one or more supplements to this prospectus. The prospectus supplements will also
describe the specific manner in which these securities will be offered and may also supplement, update or amend information contained
in this document. You should read this prospectus and any prospectus supplement, as well as any documents incorporated by reference into
this prospectus or any prospectus supplement, carefully before you invest.
Our
securities may be sold directly by us to you, through agents designated from time to time or to or through underwriters or dealers. For
additional information on the methods of sale, you should refer to the section entitled “Plan of Distribution” in
this prospectus and in the applicable prospectus supplement. If any underwriters or agents are involved in the sale of our securities
with respect to which this prospectus is being delivered, the names of such underwriters or agents and any applicable fees, commissions
or discounts and over-allotment options will be set forth in a prospectus supplement. The price to the public of such securities and
the net proceeds that we expect to receive from such sale will also be set forth in a prospectus supplement.
Pursuant
to General Instruction I.B.6 of Form S-3, in no event will we sell our securities in public primary offerings with a value exceeding
more than one-third of our public float in any 12-month period so long as our public float remains below $75.0 million. As of January
4, 2024, the aggregate market value of our outstanding common stock held by non- affiliates, or public float, was $7,241,244 based on
1,703,822 shares of our outstanding common stock that were held by non-affiliates on such date and a price of $4.25 per share, which
was the price at which our common stock was last sold on the Nasdaq Capital Market on November 15, 2023, calculated in accordance with
General Instruction I.B.6 of Form S-3. We have not offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the
twelve-month period that ends on and includes the date hereof. Our common stock is listed on The Nasdaq Capital Market under the symbol
“HCTI.”
On
January 2, 2024, the last reported sale price of our common stock was $2.855 per share. The applicable prospectus supplement will contain
information, where applicable, as to any other listing, if any, on The Nasdaq Capital Market or any securities market or other securities
exchange of the securities covered by the prospectus supplement. Prospective purchasers of our securities are urged to obtain current
information as to the market prices of our securities, where applicable.
Investing
in our securities involves a high degree of risk. Before deciding whether to invest in our securities, you should read carefully and
consider the “Risk Factors” referenced on page 17 of this prospectus, as well as those contained in the applicable prospectus
supplement and in the documents that are incorporated by reference herein or the applicable prospectus supplement.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Currently,
we are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and are subject
to reduced public company reporting requirements. Please read “Implications of Being an Emerging Growth Company.”
The
date of this prospectus is January 4, 2024
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “Securities Act”), using a “shelf” registration process for the delayed
offering and sale of securities pursuant to Rule 415 under the Securities Act. Under the shelf process, we may, from time to time, sell
any of the securities described in this prospectus in one or more offerings and selling security holders may offer such securities owned
by them from time to time.
This
prospectus provides you with a general description of the securities we may offer. Each time we or selling security holders sell securities,
we will provide one or more prospectus supplements that will contain specific information about the terms of the offering. The prospectus
supplement may also add, update, or change information contained in this prospectus. You should read both this prospectus and the accompanying
prospectus supplement together with the additional information described under the heading “Where You Can Find More Information.”
We
have not authorized anyone to provide you with any additional information. This prospectus and any accompanying prospectus supplement
do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the securities described in the accompanying
prospectus supplement or an offer to sell or the solicitation of an offer to buy such securities in any circumstances in which such offer
or solicitation is unlawful. You should assume that the information appearing in this prospectus, any prospectus supplement, the documents
incorporated by reference, and any related free writing prospectus is accurate only as of their respective dates. Our business, financial
condition, results of operations, and prospects may have changed materially since those dates.
As
used in this prospectus, unless the context otherwise requires, the terms “HCTI,” the “Company,” the “registrant,”
“we,” “us,” “our,” “our company,” or “ours” refer to Healthcare Triangle,
Inc. and its consolidated subsidiaries.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus, the documents incorporated by reference herein and therein, and other written and oral statements we make from time to time
contain certain “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can identify these forward-looking statements by the
fact they use words such as “could,” “expect,” “anticipate,” “estimate,” “target,”
“may,” “project,” “guidance,” “intend,” “plan,” “believe,” “will,”
“potential,” “opportunity,” “future,” and other words and terms of similar meaning and expression
in connection with any discussion of future operating or financial performance. You can also identify forward-looking statements by the
fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations
and involve inherent risks and uncertainties, including factors that could delay, divert, or change any of them, and could cause actual
outcomes to differ materially from current expectations. These statements are likely to relate to, among other things, our business strategy,
our research and development, our product development efforts, our ability to commercialize our product candidates, the activities of
our licensees, our prospects for initiating partnerships or collaborations, the timing of the introduction of products, the effect of
new accounting pronouncements, uncertainty regarding our future operating results and our profitability, anticipated sources of funds
as well as our plans, objectives, expectations, and intentions.
We
have included more detailed descriptions of these risks and uncertainties and other risks and uncertainties applicable to our business
that we believe could cause actual results to differ materially from any forward-looking statement in the “Risk Factors”
sections of this prospectus and the documents incorporated by reference herein including, but not limited to, the risk factors incorporated
by reference from our filings with the SEC. We encourage you to read those descriptions carefully. Although we believe we have been prudent
in our plans and assumptions, no assurance can be given that any goal or plan set forth in forward-looking statements can be achieved.
We caution investors not to place significant reliance on forward-looking statements; such statements need to be evaluated in light of
all the information contained and incorporated by reference in this prospectus. Furthermore, the statements speak only as of the date
of each document, and we undertake no obligation to update or revise these statements.
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PROSPECTUS
SUMMARY
This
summary highlights selected information that is presented in greater detail elsewhere, or incorporated by reference, in this prospectus.
It does not contain all of the information that may be important to you and your investment decision. Before investing in our securities,
you should carefully read this entire prospectus, including the matters set forth in the section titled “Risk Factors” and
the financial statements and related notes and other information that we incorporate by reference herein, including our Annual Report
on Form 10-K.
Overview
We
are a healthcare information technology company focused on advancing innovative industry-transforming solutions in the sectors of cloud
services, data science, and professional and managed services for the Electronic Health Record (EHR), healthcare and life sciences industry.
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, AI/ML, Internet
of things (“IoT”), 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 intellectual
property platforms provide advanced analytics, data science applications, and data aggregation in a secure, compliant and cost-effective
manner to our customers. Our approach reinforces healthcare progress through advanced technology, extensive industry knowledge, and domain
expertise.
Our
deep expertise in healthcare allows us to reinforce our clients’ progress by accelerating their innovation. Our healthcare IT services
include 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 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.
We
believe our principal competitive factors in our market include our technology capabilities, domain expertise, and on-demand customer
support for companies to realize the benefits of modern cloud, data, and security architectures. There are several unique factors mentioned
below that make HCTI an attractive service provider for healthcare and life sciences companies:
•
Technology Platforms: our proprietary software platforms, CloudEz and DataEz, are leveraged by our healthcare and life sciences customers
for cloud transformation, automation, data management, security and data governance, and clinical and non-clinical operations management.
Our Readabl.AI platform uses state-of-the-art public cloud artificial intelligence and machine learning to recognize and extract healthcare
information from documents, faxes, and narrative reports.
•
Technology Enabled Services: our ability to deliver world-class services in the areas of cloud technologies, data, AI/ML, security, compliance,
governance and extend these capabilities with clinical and operational consultants that work across the healthcare industry to improve
patient and consumer outcomes.
•
Expertise in Compliance: our compliance and validation experts enable us to implement Health Insurance Portability and Accountability
Act (HIPAA) requirements in GxP regulated establishments; GxP encompasses a broad range of compliance-related activities such as Good
Laboratory Practices (GLP), Good Clinical Practices (GCP), and Good Manufacturing Practices (GMP). HCTI’s technology platforms
CloudEz and DataEz are HITRUST self-certified. HCTI also supports BAA (Business Associate Agreement) coverage for healthcare clients
along with cloud providers and PCI-DSS standards.
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•
Engagement and Flexibility: HCTI’s ability to achieve customer operational objectives
through our design and commercialization of innovative solutions with an outcome-based approach
and prompt feedback.
•
Team Members: our world-class team of certified cloud architects and our unique expertise in large global pharmaceutical and biotech
organizations and other participants of the healthcare industry.
•
Personal Approach to Customers: our strong relationship management and deep understanding of customer requirements enable us to continuously
drive innovation. Our delivery methodology and automation-based approach give us the ability to respond to our customers’ needs
and requirements rapidly.
•
Partnership with Industry Leaders: our established relationships with healthcare and life sciences teams of the public cloud providers,
including Amazon Web Services (“AWS”), Google Cloud, Microsoft Azure Cloud, and EHR vendors such as MEDITECH and EPICSystems
while engaging with our customers for overall success.
Our
organizational capabilities and unique advantages also include solving data insights and data interoperability challenges for the HCLS
industry with our domain knowledge and technology solutions. To accelerate healthcare providers’ adoption of cloud and next-generation
technologies, we leverage our life sciences and medical device industry experience in cloud, data, IoT, AI/ML, security & compliance.
The
majority of our revenue is generated by our employees and contractors who provide software services and managed services and support
to our clients. Our software services include strategic advisory, implementation and development services and managed services and support
include post implementation support and cloud hosting. We are in the early stages of marketing CloudEz, DataEz and Readabl.AI as our
SaaS offerings on a subscription basis, which we expect will provide us with recurring revenues. We do not yet have enough information
about our competition or customer acceptance of the proposed SaaS offerings to determine whether or not recurring subscription revenue
will have a material impact on our revenue growth. Our SaaS offerings have been launched and commercially available for customers.
Background
As
of January 4, 2024, SecureKloud Technologies, Inc., f/k/a 8K Miles software services, Inc., a Nevada corporation (the “Parent”),
owns approximately 59.18% of the Company. Our Parent is 60.71% owned by SecureKloud Technologies Ltd., an Indian company that is publicly
traded in India.
We
are led by a diverse, global, and talented team of data scientists, thought leaders, software developers, and subject matter experts
who seek to understand our customers’ challenges and are dedicated to tackling these challenges. As of January 4, 2024 we had a
total of 33 full time employees, 164 sub-contractors, including 95 certified cloud engineers, 66 Epic Certified EHR experts and 21 MEDITECH
Certified EHR experts. Many of the senior management team and the members of our board of directors hold advanced degrees and some are
leading experts in software development, regulatory science, and market access.
The
Company, along with the Parent, is a born-on-the-cloud Premier Partner of AWS and an audited next generation MSP. We are a leading partner
of Google Cloud and a Gold Cloud Partner of Microsoft Azure Cloud. The Company, along with the Parent, is currently one of the top tier
healthcare and life sciences competency partners of AWS among more than 100,000 partners in their global community of partners. The Company
is also recognized as one of the top eight partners of Google Cloud Healthcare Interoperability Readiness Program. The Company has also
established partnerships with Medical Information Technology, Inc. MEDITECH, Epic Systems, Splunk Inc., Snowflake Inc., Looker Inc. (acquired
by Google), and other technology companies. Our Parent was rated in 2021 by Solutions Review, an independent online magazine, as one
of the 22 best AWS-managed services providers(1). The Company has several Fortune 500 clients in the life sciences industry and partners
with many hospitals in their cloud transformation journey. We conduct our business directly with hospitals and other healthcare providers.
Our Healthcare IT services include systems selection, EHR implementation, post-implementation support to manage EHRs, legacy support,
optimization, training, and creation of efficient EHR systems, and improvement of clinical outcomes for hospitals.
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Market
Our
target markets are healthcare delivery organizations (e.g., hospitals, clinics, physician practices, and other healthcare providers)
and life sciences organizations (e.g., pharmaceutical and biotech companies). These target markets are large and rapidly expanding, and
the opportunity before us is substantial as data increasingly becomes more critical to successful clinical quality improvement and outcomes,
financial performance, drug discoveries, and the ever-important need to ensure a positive patient and consumer experience.
The
US healthcare cloud transformation services market will grow to $30B by 2027 with 17.4% CAGR as per Absolution Market Insights1.
Bloomberg business report estimates that the global market for healthcare data science and analytics will be $40B by 2025 with a CAGR
of 23.5%2. The US healthcare IT services market
is estimated to be $149B by 2025 with a CAGR 11.7% as per Allied Market Research3.
The medical document management market is estimated to be $555M by 2025 as per Market Data Forecast4.
Based
on the above market data on cloud transformation, healthcare data science and analytics, healthcare IT services and medical document
management, we believe CloudEz, DataEz and Readabl.AI platforms have significant market opportunity. As COVID-19 and technological advancements
accelerate a rapid shift toward digital health, healthcare technology companies like HCTI will help to transform the healthcare and life
sciences industry and pave the way for sizeable market opportunities.
We
believe the industry challenges and market dynamics described below are transforming the way data and analytics are used by healthcare
organizations and provide us with a significant opportunity.
Challenges
Associated With Increasing Complexity Of Healthcare Data
Across
the healthcare landscape, a significant amount of data is being created every day, driven by patient care, payment systems, regulatory
compliance, and recordkeeping. This includes information within patient health records, clinical trials, pharmacy benefit programs, imaging
systems, sensors, and monitoring platforms, laboratory results, patient-reported information, hospital, and physician performance programs,
and billing and payment processing.
The
U.S. healthcare system has invested billions of dollars to collect vast amounts of detailed information in digital format. Examples of
major areas of investment include electronic transactional systems that digitize clinical information (e.g., EHR systems, pharmacy, laboratory,
imaging, patient satisfaction, and healthcare information exchanges), financial information (e.g., general ledger, costing, and billing),
and operational information (e.g., supply chain, human resources, time and attendance, IT support, and patient engagement). Wearables
and sensors drive personalized health data for continuous monitoring of patients through daily activity logs, biometric sensors, fall
sensors, social activity sensors, etc. These wearables and sensors result in a proliferation of healthcare data that also includes socioeconomic,
genomic, and remote patient monitoring information. Collecting, storing, and using healthcare data is complicated by the breadth and
depth of disparate sources, the multitude of formats, and increasing regulatory requirements.
The
data is vital for life sciences and pharmaceutical industries; however, traditional and current data platforms are not equipped to meet
this surge or the analytic demands. Today, the data platform is expected to stay relevant for at least 15 years, be able to democratize
the data, and still be secure and compliant. Data and analytics in healthcare is transforming the way illnesses are identified and treated,
improving quality of life and avoiding preventable deaths.
We
believe our DataEz platform addresses these challenges. DataEz is a cloud-based data pipeline platform that helps to enable personal
healthcare data management, analytics, and data science capabilities for large life sciences, pharmaceutical, and healthcare organizations.
It integrates with a larger variety of data sources to ingest, process, store, analyze, and gain insights from the data. By leveraging
the real-world evidence data and the ability to diagnose through advanced predictive modelling, AI/ML makes the process simpler and less
expensive. Life sciences industries will require a secure, privacy-compliant, and future-proof data platform as a foundation for large-scale
genomics collaborations and for efforts to analyze archived data, including privacy-protected data. This means most organizations will
turn into data organizations and will aggressively leverage data as a core asset to drive innovation in their businesses.
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Challenges
Due To Lack Of Coordination And Interoperability
The
healthcare industry is fragmented and inefficient, with different legacy health insurers, hospital systems, provider groups, and pharmacy
networks each possessing distinct incentive structures—some or all of which may diverge from consumers’ interests. Even as
consumer demand for greater coordination grows, inflexible and disparate legacy technological systems present a significant barrier to
meeting consumers’ wants and needs.
After
decades of investing in EHR technology, the state of interoperability is insufficient and inhibits care coordination, health data exchange,
clinical efficiency, and the quality of care provided to patients. Given that the EHR is the principal electronic interface used today
at the point of care, the path to improved data-driven decision support will require integration between EHR systems and other data and
analytics providers. Incidentally, the U.S. healthcare system is in the midst of an “open data wave,” with an increasing
focus on, and demand for, patient data interoperability. Additionally, recent laws and regulations, such as the 21st Century Cures Act,
promote and prioritize interoperability and the free exchange of health information. The COVID-19 pandemic in 2020 has helped to pave
the way for advancements in EHR interoperability and standardization. The federal government’s new regulations aim to help patients
gain better control of their health data via smartphone apps, interoperability is expected to increase between providers, payers, and
healthcare technology companies.
We
believe our Healthcare Interoperability solutions and proprietary platforms drive resilient interoperable health infrastructure as a
catalyst for delivering better care and reducing costs. We participate in Google Cloud’s Healthcare Interoperability Readiness
Program, which aims to help free up patient data and make it more accessible across the continuum of care, as well as set up organizations
for long-term success with more modern, interoperable API-first architectures. We help healthcare providers understand their current
interoperability maturity levels and map out a stepwise journey to enable interoperability. For example, our Readabl.AI is a Google Cloud-based
AI/ML platform to ingest documents, which provides OCR (optical character recognition) capabilities with Natural Language Processing
where the patient information is extracted and matched/validated with healthcare providers’ EHR system via FHIR (Fast Healthcare
Interoperability Resources) API.
Impact
Of, And Response To, COVID-19 Pandemic
Because
of COVID-19, healthcare and life sciences organizations are accelerating research, rethinking patient care, and maintaining clinical
and operational continuity during this unprecedented time for the global health system. COVID-19 has necessitated the adoption of digital
communication channels and remote working technology within the healthcare and life sciences industry at a rapid pace.
We
believe our proprietary platforms and solutions address these challenges. Our business is focused on providing digital platform solutions
to healthcare organizations and it is our mission to adequately address COVID-19 challenges for the benefit of our customers and society
in general. As a result, consumers have better personal care, convenience, and value. We believe that COVID-19 is expected to drive increased
utilization of technology during and after the pandemic, and such shift to a virtual approach creates a unique opportunity for our business
to shape the new virtual-oriented experiences of businesses through our cloud technology and services.
Our
Technology And Services
We
offer two proprietary software platforms, CloudEz and DataEz, for cloud transformation, automation, data management, security and data
governance, and clinical and non-clinical operations management. The platforms are composed of individual, proprietary technology toolsets
and deep data assets that can be rapidly configured to empower the operationalization of large-scale, data-driven healthcare initiatives.
The platforms enable healthcare organizations to implement highly sophisticated value-based initiatives on a very large scale. At the
core of value-based initiatives is the need to aggregate and process data, garner meaningful insight from the results, and use these
insights to drive material change to outcomes and economics. The platforms address these needs through their major competencies: (i)
large-scale data connectivity, integration, and validation capabilities, (ii) advanced predictive analytics and high-speed computing,
(iii) toolsets to translate resulting insights into real-world impact, and (iv) purpose-built data visualization and reporting.
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CloudEz
Technology Platform
CloudEz
is an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure across
private, hybrid, and public cloud infrastructures from providers such as AWS, Microsoft Azure, and Google Cloud. CloudEz offers cloud
services to highly regulated industries, including healthcare, life sciences, and pharma and biotech organizations, in their cloud transformation
journey. It leverages a library of infrastructure and application code developed ‘in-house’ to deliver infrastructure services
that are secure and compliant. CloudEz also delivers an automated infrastructure compliance framework that facilitates our customers
in being continuously compliant with regulatory requirements.
Implementing
a secured cloud that requires continuous adherence of GxP / HIPAA compliance across a number of business units that individually span
over a number of different vendors is the biggest challenge across all regulatory specific industries, such as pharma and healthcare.
An automation framework that offers secure, continuous GxP / HIPAA compliance for pharmaceutical and healthcare businesses is required
for faster deployment of business applications.
CloudEz
platform has several security controls including identity & access management, cloud security & governance, data security, security
information & event management, network and application security.
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DataEz
Technology Platform
Managing
a data and data analytics platform is cumbersome with numerous moving components and current best practices that are prone to over-complication.
The implemented architecture of some competing solutions is typically not scalable or does not allow workload flexibility. Reengineering
such massive ecosystems is neither cost-effective nor practical for enterprises that want to focus on maintaining their market position.
Additionally, and more importantly, when enterprise IT teams want to build their Data Lakes, centralized repository that store data,
on the cloud, they must deal with overwhelming complexities – from choosing the right cloud provider that addresses their needs
and ensures necessary government regulatory security and compliances are met to continuously managing a cost-effective infrastructure.
HCTI
brings together large-scale datasets, expansive connectivity, robust technology infrastructure, and industry-leading subject matter expertise.
The capabilities of the HCTI platforms enable both the efficient determination of highly meaningful insights and the reliable achievement
of meaningful impact in the quality and economics of healthcare.
DataEz
is a cloud-based data analytics and data science platform purpose-built for the data analytics and data science requirements of large
life sciences/pharmaceutical and healthcare provider organizations. This platform enables our healthcare customers to ingest, securely
analyze, and transform data from disparate sources to gain operational, financial, and clinical insights. DataEz is a fully secured and
compliant platform that meets the regulatory requirements and we offer this as a solution and Software as a Service (SaaS) subscription
model for life sciences and healthcare provider customers.
Combinations
of all proprietary technology toolsets are configured to quickly empower highly differentiated solutions for customer needs in a highly
scalable fashion. The flexibility of the platform’s modular design enables customers to integrate the capabilities of the platform
with their own internal capabilities or other third-party solutions. The platforms bring to the marketplace a highly extensible, national-scale
capability to interconnect with the healthcare ecosystem on a massive scale. This enables healthcare organizations to aggregate and analyze
data in petabyte volumes, arrive at sophisticated insights in real-time, drive meaningful impact, and intuitively visualize data and
information to inform business strategy and execution.
DataEz
platform includes the advanced analytics capability for data scientists and analysts to rapidly spin up secure analytics workbenches.
Analytics workbench enables agile analytics, by providing capabilities of data discovery, model building, model management, model consumption,
visualization, and workflow management in an integrated platform to accelerate the data science life cycle using AI/ML algorithms as
well as data analytics at scale.
DataEz
Platform Architecture
DataEz
platform architecture is composed of various stages of data pipeline management including ingestion, quarantine, pre-curated, data curated,
analytics/data warehouse, visualization/data warehouse and visualization/data science.
DataEz:
Data Lake Management, Analytics & Data Science platform architecture diagram
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Readabl.AI
Despite
significant investments in electronic health records, paper-based unstructured data, such as faxes and clinical reports, remain the prevalent
methods to share information about patients as they navigate the continuum of care. This reality has been particularly obvious during
the COVID 19 pandemic. The NY Times recently highlighted that the fax machine continues to be a primary data communication tool in the
fight against the virus.
Healthcare
organizations demand an advanced automation solution to easily convert paper-based unstructured data into meaningful information for
patient care. Readabl.AI uses state-of-the-art public cloud artificial intelligence and machine learning to recognize and extract healthcare
information from documents, faxes, and narrative reports. Including Readabl.AI in customer organization’s workflow improves patient
care and clinical efficiencies while maintaining security & confidentiality. Readabl.AI ensures that the necessary health information
is available for patient care with reduced labor requirements and faster processing.
Readabl.AI
is offered as a solution on public cloud marketplaces such as Google Cloud marketplace and is commercially available on a Software-as-a-Service
(SaaS) subscription model.
Cloud
IT Services
Cloud
IT is a service offering that we provide that incorporates several of our existing technological platforms. Below are several of the
benefits of our Cloud IT service:
1.
Multi-Cloud Advisory: Our certified public cloud architects and engineers are highly experienced and successful in providing end-to-end
cloud advisory and deployment services. Our expert team of cloud certified professionals develops and deploys complex applications onto
public, private, and hybrid clouds. In addition, we have a proven track record of migrating various IT infrastructures into cloud technologies,
enabling healthcare organizations to attain their business goals. We help our customers analyze and identify suitable cloud options for
their IT enterprise by clearly defining strategies of the cloud and the roadmap for its transformation. Our experts create secure, scalable,
innovative, and robust cloud solutions that address the requirements of healthcare organizations by performing a detailed evaluation
of technical compatibility and business objectives.
2.
DevOps as a Service: Cloud DevOps, often also referred to as DevSecOps given the criticality of security of the cloud, is the
IT methodology through which enterprises migrate and manage their platforms and solutions in a continuous fashion on the cloud. healthcare
enterprise IT leadership can rely on HCTI’s turnkey managed services, strategic advisory services, proven methodology, automation
capabilities, and expertise to steadily migrate their IT assets to the cloud.
3.
Cloud Security Operations Centre (SOC): CloudEz comes with advanced AI/ML-enabled alerts and monitoring services over and across
the enterprise cloud environment. By implementing automated BOTs, our operations centre ensures our clients have a de-risked cloud environment
by ensuring continuous security and regulatory compliance.
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4.
Healthcare Cloud Backup and Disaster Recovery (BU/DR): Our cloud disaster recovery
solution is a fully managed infrastructure solution that enables hospitals to host their
DR instances on public cloud platforms such as AWS. Our solution specifically serves the
MEDITECH market today. MEDITECH BU/DR solution will soon be available on AWS marketplace
for healthcare customers.
5.
Ransomware Protection: We are taking a proactive role in educating and equipping rural hospitals, community hospitals, and large
health systems with critical resources for improving their preparedness, prevention, detection, response, and recovery from ransomware incidents.
Our service offerings include risk assessment, recommendations for most effective tools and processes, continuous monitoring of systems
and backup and recovery plan.
Healthcare
IT Services
Healthcare
IT is a separate service we provide primarily to hospitals and healthcare centres. Our healthcare IT services are utilized by 100+ hospitals
across the US. These services include EHR implementation and optimization, managed services, interoperability, data assessments and tools,
and clinical and training consulting to improve clinical outcomes and the patient experience.
•
EHR Implementation and Optimization: HCTI is among one of the few MEDITECH READY-certified implementation partners for MEDITECH,
a leading EHR system vendor. This READY certification from MEDITECH enables HCTI to provide hospital clients with their EHR implementations.
We have worked with hundreds of MEDITECH customers and successfully implemented and optimized the MEDITECH platform. Additionally, HCTI
is one of 15 partners (out of 200 total firms tracked by Epic Systems, Inc., a leading EHR system vendor) that works with Epic on a regular
basis to discuss synergies and client performances. Our implementation solution set specifically addresses mergers and acquisitions as
well as community technology extensions. We have successfully enabled over 600 community physicians in over 100 locations through our
community technology deployment services.
•
EHR Managed Services: Our end-to-end EHR managed services cover hospital-wide IT support including Tier 2/Tier 3 support, technical
support, report writing, on-demand application support, Community Connect, and acquisition services. HCTI addresses healthcare organizations’
growing frustrations, inefficiencies, and high provider turnover in the healthcare communities through training and support to prevent
loss of additional clinical resources, downturns in patient service volume, and loss of significant revenue. HCTI’s Epic team offers
a monthly support plan that provides comprehensive flexibility. It gives “flex support” for clients, allowing for the division
of necessary work hours across different Epic resources and applications. Since the pandemic started, more hospitals and health systems
are slowly making the transition to cloud platforms to host their EHRs and information systems to offer real-time data insights and more
storage solutions. HCTI sees this as an opportunity to provide EHR-as-a-service capabilities in real-time for hospitals on public cloud
platforms.
•
Interoperability Assessments and Services: HCTI is recognized as one of the top eight partners of the Google Cloud Healthcare
Interoperability Readiness Program. Our services enable health systems to understand their readiness to meet CURES act requirements and
develop and execute a roadmap across technology platforms utilizing HL7’s (Health Level Seven International provides standards
and solutions to empower global health data interoperability) and FHIR (Fast Healthcare Interoperability Resources) standards.
•
Data Assessment and Toolsets: healthcare clients also approach us to build two-way data applications for quick and seamless communication
with patients and to perform predictive analytics based on prior outcomes and readings from monitoring devices. We offer self-cataloguing
data lakes and automated data quality check solutions. These cutting-edge solutions consist of a public cloud-based data lake where the
data from various devices and sensors are ingested and stored through automated provisioning, and a scalable dashboard that is capable
of monitoring hundreds of thousands of patients at a time based on the cloud-stored data.
•
Clinical and Training Consulting: HCTI also provides clinical and operational consultants to healthcare organizations to support
the improvement of their business, clinical, and patient outcomes and experience.
Corporate
Information
Our
principal executive office is located at 7901 Stoneridge Drive, Suite 220, Pleasanton, CA 94588. Our telephone number is (925) 270-4812.
Our website address is https://www.healthcaretriangle.com/
.. The information included on our website or in any social media associated with the Company is not part of this prospectus.
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Implications
of Being an Emerging Growth Company
We
are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).
We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of
the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act; (ii) the last
day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued
more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated
filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable future, but cannot retain
our emerging growth company status indefinitely and will no longer qualify as an emerging growth company on or before the last day of
the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration
statement under the Securities Act. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions
from specified disclosure requirements that are applicable to other public companies that are not emerging growth companies.
These
exemptions include:
• being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial
statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
disclosure;
• not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;
• not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding
mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the
financial statements;
• reduced disclosure obligations regarding executive compensation; and
• not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute
payments not previously approved.
We
have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may
be different than the information you receive from other public companies in which you hold stock.
An
emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for
complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting
standards until those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves of this extended
transition period and, as a result, we will not be required to adopt new or revised accounting standards on the dates on which adoption
of such standards is required for other public reporting companies.
We
are also a “smaller reporting company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and have elected to take advantage of certain of the scaled disclosure available for smaller reporting companies.
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RISK
FACTORS
Investing
in our securities involves a high degree of risk. You should carefully consider the risks described in the documents incorporated by
reference in this prospectus and any prospectus supplement, as well as other information we include or incorporate by reference into
this prospectus and any applicable prospectus supplement, before making an investment decision. Our business, financial condition or
results of operations could be materially adversely affected by the materialization of any of these risks. The trading price of our securities
could decline due to the materialization of any of these risks, and you may lose all or part of your investment. This prospectus and
the documents incorporated herein by reference also contain forward-looking statements that involve risks and uncertainties. Actual results
could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks
described in the documents incorporated herein by reference, together with the other information set forth in this prospectus, the risks
described in Part I, Item 1A, Risk Factors in our most recent Annual Report on Form 10-K and in the other documents that we include or
incorporate by reference into this prospectus, as updated by our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other
filings we make with the SEC, the risk factors described under the caption “Risk Factors” in any applicable prospectus supplement
and any risk factors set forth in our other filings with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act,
before making a decision about investing in our securities. The risks and uncertainties we have described are not the only ones we face.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our operations. If
any risks actually occur, our business, financial condition and results of operations may be materially and adversely affected. In such
an event, the trading price of our common stock could decline and you could lose part or all of your investment.
For
more information about our SEC filings, please see “Where You Can Find More Information” and “Incorporation
by Reference.”
Additional
risks not presently known or that we presently consider to be immaterial could subsequently materially and adversely affect our financial
condition, results of operations, business, and prospects.
USE
OF PROCEEDS
We
intend to use the net proceeds from the sale of the securities from offerings under this prospectus for capital expenditures, repayment
and refinancing of debt, research and development expenditures, acquisitions of additional companies or technologies, investments and
general corporate purposes, including working capital unless the applicable prospectus supplement states otherwise. General corporate
purposes may include working capital purposes.
We
may temporarily invest the net proceeds in investment-grade, interest-bearing securities until they are used for their stated purpose.
We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, we will retain broad discretion
over the allocation of net proceeds. We would not receive proceeds from sales by our security holders.
SELLING
STOCKHOLDERS
Selling
stockholders are persons or entities that, directly or indirectly, have acquired or will from time to time acquire from us, our securities
in various private transactions. Such selling stockholders may be parties to registration rights agreements with us, or we otherwise
may have agreed or will agree to register their securities for sale. Certain holders of our securities, as well as their transferees,
pledgees, donees, or successors, all of whom we refer to as “Selling Stockholders,” may from time to time offer and
sell the securities pursuant to this prospectus and any applicable prospectus supplement.
The
applicable prospectus supplement will set forth the name of each selling security holder and the number of and type of securities beneficially
owned by such selling security holder that are covered by such prospectus supplement. The applicable prospectus supplement will also
disclose whether any of the selling security holders have held any position or office with, have been employed by, or otherwise have
had a material relationship with us during the three years prior to the date of the prospectus supplement.
DESCRIPTION
OF SECURITIES TO BE REGISTERED
The
descriptions of the securities contained in this prospectus, together with the applicable prospectus supplements, summarize the material
terms and provisions of the various types of securities that we may offer. We will describe in the applicable prospectus supplement relating
to any securities the particular terms of the securities offered by that prospectus supplement. If we so indicate in the applicable prospectus
supplement, the terms of the securities may differ from the terms we have summarized below. We will also include in the prospectus supplement
information, where applicable, about material U.S. federal income tax considerations relating to the securities, and the securities exchange,
if any, on which the securities will be listed.
We
may sell from time to time common stock, preferred stock, debt securities, warrants to purchase any such securities, or any combination
of the foregoing.
In
this prospectus, we refer to the common stock, preferred stock, debt securities, and warrants to be sold by us collectively as “securities.”
If
we issue debt securities at a discount from their original stated principal amount, then we will use the issue price, and not the principal
amount, of such debt securities for purposes of calculating the total dollar amount of all securities issued under this prospectus.
This
prospectus may not be used to consummate a sale of securities unless it is accompanied by a prospectus supplement.
DESCRIPTION
OF COMMON STOCK
We
are authorized to issue up to 110,000,000 shares of capital stock, of which 100,000,000 are shares of common stock, par value $0.00001
per share, and 10,000,000 shares of preferred stock, $0.00001 par value, of which 20,000 have been designated as Series A Super Voting
Preferred Stock, $0.00001 par value (the “Super Voting Preferred Stock”). As of January 4, 2024, there were 4,308,822 shares
of our common stock outstanding and 6,000 shares of our Super Voting Preferred Stock outstanding.
Common
Stock
The
holders of our common stock are entitled to the following rights:
Voting
Rights. Our common stock is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders,
including the election of directors, and does not have cumulative voting rights. Accordingly, all elections shall be determined by a
plurality of the votes cast, and except as otherwise required by law, all other matters shall be determined by a majority of the votes
cast affirmatively or negatively.
Dividends.
The holders of our common stock are entitled to receive dividends if any, as may be declared from time to time by our board of directors
out of legally available funds.
Liquidation.
In the event of our liquidation, dissolution, or winding up, holders of our common stock will be entitled to share rateably in the net
assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the
satisfaction of any liquidation preference granted to the holders of any outstanding shares of our preferred stock.
Rights
and Preferences. Holders of our common stock have no pre-emptive, conversion, or subscription rights, and there are no redemption
or sinking fund provisions applicable to our common stock.
Fully
Paid and Nonassessable. All of our outstanding shares of our common stock are, and the shares of our common stock to be issued
in this offering will be, fully paid and nonassessable.
Exclusive
Forum
Our
Certificate of Incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery
of the State of Delaware shall be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Company,
(b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, employee or agent of the Company to the
Company or the Company’s stockholders, (c) any action asserting a claim arising pursuant to any provision of the Delaware General
Corporation Law, our Certificate of Incorporation or Bylaws, or (d) any action asserting a claim governed by the internal affairs doctrine,
in each case subject to said Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.
This exclusive forum provision may limit the ability of our stockholders to bring a claim in a judicial forum that such stockholders
find favorable for disputes with us or our directors or officers, which may discourage lawsuits against us or our directors or officers.
Our Certificate of Incorporation also provides that this choice of forum provision does not apply to claims arising under federal securities
laws.
Section
203 of the Delaware General Corporation Law
We
are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. This statute prevents certain Delaware corporations,
under certain circumstances, from engaging in a “business combination” with:
| • | | a
stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an “interested
stockholder”); |
| • | | an
affiliate of an interested stockholder; or |
| • | | an
associate of an interested stockholder, for three years following the date that the stockholder
became an interested stockholder. |
A
“business combination” includes a merger or sale of more than 10% of our assets. However, the above provisions of Section
203 do not apply if:
| • | | our
board of directors approves the transaction that made the stockholder an “interested
stockholder,” prior to the date of the transaction; or |
| • | | after
the completion of the transaction that resulted in the stockholder becoming an interested
stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time
the transaction commenced, other than statutorily excluded shares of common stock. |
DESCRIPTION
OF PREFERRED STOCK
This
section describes the general terms and provisions of the preferred stock that we may offer by this prospectus. The prospectus supplement
will describe the specific terms of the series of preferred stock offered through that prospectus supplement. Those terms may differ
from the terms discussed below. Any series of preferred stock that we issue will be governed by our certificate of incorporation, as
amended, including the certificate of designations relating to such series of preferred stock, and our by-laws.
As
of January 4, 2024, we have designated 20,000 shares of preferred stock as Series A Super Voting Preferred Stock, of which 6,000 shares
are issued and outstanding.
We
will fix the rights, preferences, privileges, and restrictions of the preferred stock of each series in the certificate of designations
relating to that series. We will incorporate by reference as an exhibit to the registration statement that includes this prospectus the
form of any certificate of designations that describes the terms of the series of preferred stock we are offering before the issuance
of the related series of preferred stock. This description will include the following, to the extent applicable:
| • |
|
the
title and stated value; |
| • |
|
the
number of shares we are offering; |
| • |
|
the
liquidation preference per share; |
| • |
|
the
purchase price; |
| • |
|
the
dividend rate, period and payment date, and method of calculation for dividends, if any; |
| • |
|
whether
any dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends will accumulate; |
| • |
|
the
provisions for a sinking fund, if any; |
| • |
|
the
provisions for redemption or repurchase, if applicable, and any restrictions on our ability to exercise those redemption and repurchase
rights; |
| • |
|
any
listing of the preferred stock on any securities exchange or market; |
| • |
|
whether
the preferred stock will be convertible into our common stock and, if applicable, the conversion price, or how it will be calculated,
and the conversion period; |
| • |
|
whether
the preferred stock will be exchangeable into debt securities and, if applicable, the exchange price, or how it will be calculated,
and the exchange period; |
| • |
|
voting
rights, if any, of the preferred stock; |
| • |
|
preemptive
rights, if any; |
| • |
|
restrictions
on transfer, sale, or other assignment, if any; |
| • |
|
whether
interests in the preferred stock will be represented by depositary shares; |
| • |
|
a
discussion of any material or special U.S. federal income tax considerations applicable to the preferred stock; |
| • |
|
the
relative ranking and preferences of the preferred stock as to dividend rights and rights if we liquidate, dissolve, or wind up our
affairs; any limitations on issuance of any class or series of preferred stock ranking senior to or on a parity with the series of
preferred stock as to dividend rights and rights if we liquidate, dissolve, or wind up our affairs; and |
| • |
|
any
other specific terms, preferences, rights, or limitations of, or restrictions on, the preferred stock. |
When
we issue shares of preferred stock under this prospectus, the shares, when issued in accordance with the terms of the applicable agreement,
will be validly issued, fully paid, and non-assessable and will not have, or be subject to, any preemptive or similar rights.
Section
242 of DGCL provides that the holders of each class or series of stock will have the right to vote separately as a class on certain amendments
to our certificate of incorporation, as amended, that would affect the class or series of preferred stock, as applicable. This right
is in addition to any voting rights that may be provided for in the applicable certificate of designation.
Series
A Super Voting Preferred Stock
The
following is a summary of the terms of our Series A Super Voting Preferred Stock
Voting
Rights. Each share of our Super Voting Preferred Stock entitles its holder to 1,000 votes per share and votes with our common
stock as a single class on all matters to be voted or consented upon by the stockholders.
Dividend
Rights. The holders of our Super Voting Preferred Stock are not entitled to any dividend rights.
Liquidation
Rights. The holders of our Super Voting Preferred Stock are not entitled to any liquidation preference.
Other
Matters. The holders of our Super Voting Preferred Stock have no subscription, redemption or conversion privileges and are not
subject to redemption. Our Super Voting Preferred Stock does not entitle its holders to pre-emptive rights. All of the outstanding shares
of our Super Voting Preferred Stock are fully paid and non-assessable.
Our
Board also has the authority to issue up to 9,980,000 additional shares of preferred stock in one or more classes or series and to fix
the designations, powers, preferences, and rights, and the qualifications, limitations, or restrictions thereof including dividend rights,
dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares
constituting any class or series, without further vote or action by the stockholders.
While
we do not currently have any plans for the issuance of any additional preferred stock, the issuance of additional preferred stock could
adversely affect the rights of the holders of common stock and, therefore, reduce the value of the common stock. It is not possible to
state the actual effect of the issuance of any shares of preferred stock on the rights of holders of the common stock until the Board
determines the specific rights of the holders of the preferred stock; however, these effects may include:
| • | | Restricting
dividends on the common stock; |
| • | | Diluting
the voting power of the common stock; |
| • | | Impairing
the liquidation rights of the common stock; or |
| • | | Delaying
or preventing a change in control of the Company without consent of the stockholders |
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock will be VStock Transfer, LLC.
DESCRIPTION
OF WARRANTS
General
As
of January 4, 2024, warrants to purchase approximately 609,756 shares of our common stock with a weighted average exercise price per
share of $10.66 were outstanding.
We
may offer by means of this prospectus warrants for the purchase of our common stock or preferred stock. We may issue warrants separately
or together with any other securities offered by means of this prospectus, and the warrants may be attached to or separate from such
securities. Each series of warrants will be issued under a separate warrant agreement to be entered into between us and a warrant agent
specified therein. The warrant agent will act solely as our agent in connection with the warrants of such series and will not assume
any obligation or relationship of agency or trust for or with any holders or beneficial owners of warrants.
When
we refer to a series of securities in this section, we mean all securities issued as part of the same series under any applicable indenture,
agreement, or other instrument. When we refer to the prospectus supplement, we mean the applicable prospectus supplement describing the
specific terms of the security you purchase. The terms used in the prospectus supplement will have the meanings described in this prospectus,
unless otherwise specified.
The
following description of warrants does not purport to be complete and is qualified in its entirety by reference to the description of
a particular series of warrants contained in an applicable prospectus supplement. For information relating to our capital stock, see
“Description of Common Stock,” and “Description of Preferred Stock.”
Agreements
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. Each series of warrants may be evidenced by certificates and may be issued under a separate indenture, agreement, or
other instrument to be entered into between us and a bank that we select as agent with respect to such series. The agent, if any, will
have its principal office in the United States and have a combined capital and surplus of at least $50,000,000. Warrants in book-entry
form will be represented by a global security registered in the name of a depositary, which will be the holder of all the securities
represented by the global security. Those who own beneficial interests in a global security will do so through participants in the depositary’s
system, and the rights of these indirect owners will be governed solely by the applicable procedures of the depositary and its participants.
General
Terms of Warrants
The
prospectus supplement relating to a series of warrants will identify the name and address of the warrant agent, if any. The prospectus
supplement will describe the following terms, where applicable, of the warrants in respect of which this prospectus is being delivered:
| • | | the
title and issuer of the warrants; |
| • | | the
aggregate number of warrants; |
| • | | the
price or prices at which the warrants will be issued; |
| • | | the
currencies in which the price or prices of the warrants may be payable; |
| • | | the
designation, amount, and terms of the securities purchasable upon exercise of the warrants; |
| • | | the
designation and terms of the other securities with which the warrants are issued and the
number of warrants issued with each such security or each principal amount of security; |
| • | | if
applicable, the date on and after which the warrants and any related securities will be separately
transferable; |
| • | | any
securities exchange or quotation system on which the warrants or any securities deliverable
upon exercise of such securities may be listed; |
| • | | the
price or prices at which and currency or currencies in which the securities purchasable upon
exercise of the warrants may be purchased; |
| • | | the
date on which the right to exercise the warrants shall commence and the date on which such
right shall expire; |
| • | | the
minimum or maximum amount of warrants that may be exercised at any one time; |
| • | | whether
the warrants will be issued in fully registered for or bearer form, in global or non-global
form, or in any combination of these forms; |
| • | | information
with respect to book-entry procedures, if any; |
| • | | a
discussion of certain U.S. federal income tax considerations; and |
| • | | any
other material terms of the warrants, including terms, procedures, and limitations relating
to the exchange and exercise of the warrants. |
Exercise
of Warrants
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. If any warrant is exercisable for other securities or other property, the following provisions will apply. Each such
warrant may be exercised at any time up to any expiration date and time mentioned in the prospectus supplement relating to those warrants.
After the close of business on any applicable expiration date, unexercised warrants will become void.
Warrants
may be exercised by delivery of the certificate representing the securities to be exercised, or in the case of global securities by delivery
of an exercise notice for those warrants, together with certain information, and payment to any agent in immediately available funds,
as provided in the prospectus supplement, of the required purchase amount, if any. Upon receipt of payment and the certificate or exercise
notice properly executed at the office indicated in the prospectus supplement, we will, in the time period the relevant agreement provides,
issue and deliver the securities or other property purchasable upon such exercise. If fewer than all of the warrants represented by such
certificates are exercised, a new certificate will be issued for the remaining amount of warrants.
If
mentioned in the prospectus supplement, securities may be surrendered as all or part of the exercise price for warrants.
Antidilution
Provisions
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. In the case of warrants to purchase common stock, the exercise price payable and the number of shares of common stock
purchasable upon warrant exercise may be adjusted in certain events, including:
| • | | the
issuance of a stock dividend to common stockholders or a combination, subdivision, or reclassification
of common stock; |
| • | | the
issuance of rights, warrants, or options to all common and preferred stockholders entitling
them to purchase common stock for an aggregate consideration per share less than the current
market price per share of common stock; |
| • | | any
distribution to our common stockholders of evidences of our indebtedness of assets, excluding
cash dividends or distributions referred to above; and |
| • | | any
other events mentioned in the prospectus supplement. |
The
prospectus supplement will describe which, if any, of these provisions shall apply to a particular series of warrants.
Unless
otherwise specified in the applicable prospectus supplement, no adjustment in the number of shares purchasable upon warrant exercise
will be required until cumulative adjustments require an adjustment of at least 1% of such number and no fractional shares will be issued
upon warrant exercise, but we will pay the cash value of any fractional shares otherwise issuable.
Modification
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. We and any agent for any series of warrants may amend any warrant or rights agreement and the terms of the related warrants
by executing a supplemental agreement, without any such warrant holders’ consent, for the purpose of:
| |
• |
curing
any ambiguity, any defective or inconsistent provision contained in the agreement, or making any other corrections to the agreement
that are not inconsistent with the provisions of the warrant certificates; |
| |
• |
evidencing
the succession of another corporation to us and its assumption of our covenants contained in the agreement and the securities; |
| |
• |
appointing
a successor depository, if the securities are issued in the form of global securities; |
| |
• |
evidencing
a successor agent’s acceptance of appointment with respect to any securities; |
| |
• |
adding
to our covenants for the benefit of securityholders or surrendering any right or power we have under the agreement; |
| |
• |
issuing
warrants in definitive form, if such securities are initially issued in the form of global securities; or |
| |
• |
amending
the agreement and the warrants as we deem necessary or desirable and that will not adversely affect the interests of the applicable
warrant holders in any material respect. |
We
and any agent for any series of warrants may also amend any agreement and the related warrants by a supplemental agreement with the consent
of the holders of a majority of the warrants of any series affected by such amendment, for the purpose of adding, modifying, or eliminating
any of the agreement’s provisions or of modifying the rights of the holders of warrants. However, no such amendment that:
| |
• |
reduces
the number or amount of securities receivable upon any exercise of any such security; |
| |
• |
shortens
the time period during which any such security may be exercised; |
| |
• |
otherwise
adversely affects the exercise rights of warrant holders in any material respect; or |
| |
• |
reduces
the number of securities the consent of holders of which is required for amending the agreement or the related warrants; |
may
be made without the consent of each holder affected by that amendment.
Consolidation,
Merger, and Sale of Assets
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. Any agreement with respect to warrants will provide that we are generally permitted to merge or consolidate with another
corporation or other entity. Any such agreement will also provide that we are permitted to sell our assets substantially as an entirety
to another corporation or other entity or to have another entity sell its assets substantially as an entirety to us. With regard to any
series of warrants, however, we may not take any of these actions unless all of the following conditions are met:
| |
• |
if
we are not the successor entity, the person formed by the consolidation or into or with which we merge or the person to which our
properties and assets are conveyed, transferred, or leased must be an entity organized and existing under the laws of the United
States, any state, or the District of Columbia and must expressly assume the performance of our covenants under any relevant indenture,
agreement, or other instrument; and |
| |
• |
we
or that successor corporation must not immediately be in default under that agreement. |
Enforcement
by Holders of Warrants
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. Any agent for any series of warrants will act solely as our agent under the relevant agreement and will not assume any
obligation or relationship of agency or trust for any securityholder. A single bank or trust company may act as agent for more than one
issue of securities. Any such agent will have no duty or responsibility in case we default in performing our obligations under the relevant
agreement or warrant, including any duty or responsibility to initiate any legal proceedings or to make any demand upon us. Any securityholder
may, without the agent’s consent or consent of any other securityholder, enforce by appropriate legal action its right to exercise
any warrant exercisable for any property.
Replacement
of Certificates
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. We will replace any destroyed, lost, stolen, or mutilated warrant or rights certificate upon delivery to us and any
applicable agent of satisfactory evidence of the ownership of that certificate and of its destruction, loss, theft or mutilation, and
(in the case of mutilation) surrender of that certificate to us or any applicable agent, unless we have, or the agent has, received notice
that the certificate has been acquired by a bona fide purchaser. That securityholder will also be required to provide indemnity satisfactory
to us and the relevant agent before a replacement certificate will be issued.
Title
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any warrants we issue pursuant to
this prospectus. We, any agents for any series of warrants, and any of their agents may treat the registered holder of any certificate
as the absolute owner of the securities evidenced by that certificate for any purpose and as the person entitled to exercise the rights
attaching to the warrants so requested, despite any notice to the contrary.
DESCRIPTION
OF DEBT SECURITIES
Any
debt securities we may issue, offered by this prospectus and any accompanying prospectus supplement, will be issued under an indenture
to be entered into between our company and the trustee identified in the applicable prospectus supplement. The terms of the debt securities
will include those stated in the indenture and those made part of the indenture by reference to the Trust Indenture Act of 1939, as in
effect on the date of the indenture. We have filed a copy of the form of indenture as an exhibit to the registration statement in which
this prospectus is included. The indenture will be subject to and governed by the terms of the Trust Indenture Act of 1939.
Unless
otherwise specified in the applicable prospectus supplement, the debt securities will represent direct, unsecured obligations of our
company and will rank equally with all of our other unsecured indebtedness.
The
following statements relating to the debt securities and the indenture are summaries, qualified in their entirety to the detailed provisions
of the indenture.
General
We
may issue the debt securities in one or more series with the same or various maturities, at par, at a premium, or at a discount. We will
describe the particular terms of each series of debt securities in a prospectus supplement relating to that series, which we will file
with the SEC.
The
prospectus supplement will set forth, to the extent required, the following terms of the debt securities in respect of which the prospectus
supplement is delivered:
| |
• |
the
title of the series; |
| |
• |
the
aggregate principal amount; |
| |
• |
the
issue price or prices, expressed as a percentage of the aggregate principal amount of the debt securities; |
| |
• |
any
limit on the aggregate principal amount; |
| |
• |
the
date or dates on which principal is payable; |
| |
• |
the
interest rate or rates (which may be fixed or variable) or, if applicable, the method used to determine such rate or rates; |
| |
• |
the
date or dates from which interest, if any, will be payable and any regular record date for the interest payable; |
| |
• |
the
place or places where principal and, if applicable, premium and interest, is payable; |
| |
• |
the
terms and conditions upon which we may, or the holders may require us to, redeem or repurchase the debt securities; |
| |
• |
the
denominations in which such debt securities may be issuable, if other than denominations of $1,000, or any integral multiple of that
number; |
| |
• |
whether
the debt securities are to be issuable in the form of certificated debt securities (as described below) or global debt securities
(as described below); |
| |
• |
the
portion of principal amount that will be payable upon declaration of acceleration of the maturity date if other than the principal
amount of the debt securities; |
| |
• |
the
currency of denomination; |
| |
• |
the
designation of the currency, currencies, or currency units in which payment of principal and, if applicable, premium and interest,
will be made; |
| |
• |
if
payments of principal and, if applicable, premium or interest, on the debt securities are to be made in one or more currencies or
currency units other than the currency of denomination, the manner in which the exchange rate with respect to such payments will
be determined; |
| |
• |
if
amounts of principal and, if applicable, premium and interest may be determined by reference to an index based on a currency or currencies,
or by reference to a commodity, commodity index, stock exchange index, or financial index, then the manner in which such amounts
will be determined; |
| |
• |
the
provisions, if any, relating to any collateral provided for such debt securities; |
| |
• |
any
addition to or change in the covenants and/or the acceleration provisions described in this prospectus or in the indenture; |
| |
• |
any
events of default, if not otherwise described below under “Events of Default”; |
| |
• |
the
terms and conditions, if any, for conversion into or exchange for shares of common stock or preferred stock; |
| |
• |
any
depositaries, interest rate calculation agents, exchange rate calculation agents, or other agents; and |
| |
• |
the
terms and conditions, if any, upon which the debt securities shall be subordinated in right of payment to other indebtedness of our
company. |
We
may issue discount debt securities that provide for an amount less than the stated principal amount to be due and payable upon acceleration
of the maturity of such debt securities in accordance with the terms of the indenture. We may also issue debt securities in bearer form,
with or without coupons. If we issue discount debt securities or debt securities in bearer form, we will describe material U.S. federal
income tax considerations and other material special considerations which apply to these debt securities in the applicable prospectus
supplement.
We
may issue debt securities denominated in or payable in a foreign currency or currencies or a foreign currency unit or units. If we do,
we will describe the restrictions, elections, and general tax considerations relating to the debt securities and the foreign currency
or currencies or foreign currency unit or units in the applicable prospectus supplement.
Exchange
and/or Conversion Rights
We
may issue debt securities that can be exchanged for or converted into shares of common stock or preferred stock. If we do, we will describe
the terms of exchange or conversion in the prospectus supplement relating to these debt securities.
Transfer
and Exchange
We
may issue debt securities that will be represented by either:
| • | | “book-entry
securities,” which means that there will be one or more global securities registered
in the name of a depositary or a nominee of a depositary; or |
| • | | “certificated
securities,” which means that they will be represented by a certificate issued in definitive
registered form. |
We
will specify in the prospectus supplement applicable to a particular offering whether the debt securities offered will be book-entry
or certificated securities.
Certificated
Debt Securities
Those
who hold certificated debt securities may transfer or exchange such debt securities at the trustee’s office or at the paying agent’s
office or agency in accordance with the terms of the indenture. There will be no service charge for any transfer or exchange of certificated
debt securities, but there may be a requirement to pay an amount sufficient to cover any tax or other governmental charge payable in
connection with such transfer or exchange.
Those
who hold certificated debt securities may effect the transfer of certificated debt securities and of the right to receive the principal
of, premium, and/or interest, if any, on the certificated debt securities only by surrendering the certificate representing the certificated
debt securities and having us or the trustee issue a new certificate to the new holder.
Global
Securities
If
we decide to issue debt securities in the form of one or more global securities, then we will register the global securities in the name
of the depositary for the global securities or the nominee of the depositary, and the global securities will be delivered by the trustee
to the depositary for credit to the accounts of the holders of beneficial interests in the debt securities.
The
prospectus supplement will describe the specific terms of the depositary arrangement for debt securities of a series that are issued
in global form. None of us, the trustee, any payment agent, or the security registrar will have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial ownership interests in a global debt security or for maintaining,
supervising, or reviewing any records relating to these beneficial ownership interests.
No
Protection in the Event of Change of Control
The
indenture does not have any covenants or other provisions providing for a put or increased interest or otherwise that would afford holders
of debt securities additional protection in the event of a recapitalization transaction, a change of control of our company, or a highly
leveraged transaction. If we offer any covenants or provisions of this type with respect to any debt securities covered by this prospectus,
we will describe them in the applicable prospectus supplement.
Covenants
Unless
otherwise indicated in this prospectus or a prospectus supplement, the debt securities will not have the benefit of any covenants that
limit or restrict our business or operations, the pledging of our assets, or the incurrence by us of indebtedness. We will describe in
the applicable prospectus supplement any material covenants in respect of a series of debt securities.
Consolidation,
Merger, and Sale of Assets
We
will agree in the indenture that we will not consolidate with or merge into any other person, or convey, transfer, sell, or lease our
properties and assets substantially as an entirety to any person, unless:
| • | | the
person formed by the consolidation or into or with which we are merged or the person to which
our properties and assets are conveyed, transferred, sold, or leased, is a corporation organized
and existing under the laws of the United States, any state, or the District of Columbia,
or a corporation or comparable legal entity organized under the laws of a foreign jurisdiction
and, if we are not the surviving person, the surviving person has expressly assumed all of
our obligations, including the payment of the principal of, and premium, if any, and interest
on the debt securities and the performance of the other covenants under the indenture; and |
| • | | immediately
after giving effect to the transaction, no event of default, and no event which, after notice
or lapse of time or both, would become an event of default, has occurred and is continuing
under the indenture. |
Events
of Default
Unless
otherwise specified in the applicable prospectus supplement, the following events will be events of default under the indenture with
respect to debt securities of any series:
| • | | we
fail to pay any principal or premium, if any, when it becomes due and such default is not
cured within 5 business days; |
| • | | we
fail to pay any interest within 30 days after it becomes due; |
| • | | we
fail to comply with any other covenant in the debt securities or the indenture for 60 days
after written notice specifying the failure from the trustee or the holders of not less than
25% in aggregate principal amount of the outstanding debt securities of that series; and |
| • | | certain
events involving bankruptcy, insolvency, or reorganization of our company or any of our significant
subsidiaries. |
The
trustee may withhold notice to the holders of the debt securities of any series of any default, except in payment of principal of, or
premium, if any, or interest on the debt securities of a series, if the trustee considers it to be in the best interest of the holders
of the debt securities of that series to do so.
If
an event of default (other than an event of default resulting from certain events of bankruptcy, insolvency, or reorganization) occurs,
and is continuing, then the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding debt securities
of any series may accelerate the maturity of the debt securities. If this happens, the entire principal amount, plus the premium, if
any, of all the outstanding debt securities of the affected series plus accrued interest to the date of acceleration will be immediately
due and payable. At any time after the acceleration, but before a judgment or decree based on such acceleration is obtained by the trustee,
the holders of a majority in aggregate principal amount of outstanding debt securities of such series may rescind and annul such acceleration
if:
| • | | all
events of default (other than non-payment of accelerated principal, premium, or interest)
have been cured or waived; |
| • | | all
lawful interest on overdue interest and overdue principal has been paid; and |
| • | | the
rescission would not conflict with any judgment or decree. |
In
addition, if the acceleration occurs at any time when we have outstanding indebtedness which is senior to the debt securities, the payment
of the principal amount of outstanding debt securities may be subordinated in right of payment to the prior payment of any amounts due
under the senior indebtedness, in which case the holders of debt securities will be entitled to payment under the terms prescribed in
the instruments evidencing the senior indebtedness and the indenture.
If
an event of default resulting from certain events of bankruptcy, insolvency, or reorganization occurs, the principal, premium, and interest
amount with respect to all of the debt securities of any series will be due and payable immediately without any declaration or other
act on the part of the trustee or the holders of the debt securities of that series.
The
holders of a majority in principal amount of the outstanding debt securities of a series will have the right to waive any existing default
or compliance with any provision of the indenture or the debt securities of that series and to direct the time, method, and place of
conducting any proceeding for any remedy available to the trustee, subject to certain limitations specified in the indenture.
No
holder of any debt security of a series will have any right to institute any proceeding with respect to the indenture or for any remedy
under the indenture, unless:
| • | | the
holder gives to the trustee written notice of a continuing event of default; |
| • | | the
holders of at least 25% in aggregate principal amount of the outstanding debt securities
of the affected series make a written request and offer reasonable indemnity to the trustee
to institute a proceeding as trustee; |
| • | | the
trustee fails to institute a proceeding within 60 days after such request; and |
| • | | the
holders of a majority in aggregate principal amount of the outstanding debt securities of
the affected series do not give the trustee a direction inconsistent with such request during
such 60-day period. |
These
limitations do not, however, apply to a suit instituted for payment on debt securities of any series on or after the due dates expressed
in the debt securities.
Modification
and Waiver
From
time to time, we and the trustee may, without the consent of holders of the debt securities of one or more series, amend the indenture
or the debt securities of one or more series, or supplement the indenture, for certain specified purposes, including:
| • | | to
provide that the surviving entity following a change of control of our company permitted
under the indenture will assume all of our obligations under the indenture and debt securities; |
| • | | to
provide for certificated debt securities in addition to uncertificated debt securities; |
| • | | to
comply with any requirements of the SEC under the Trust Indenture Act of 1939; |
| • | | to
cure any ambiguity, defect, or inconsistency, or make any other change that does not materially
and adversely affect the rights of any holder; and |
| • | | to
appoint a successor trustee under the indenture with respect to one or more series. |
From
time to time, we and the trustee may, with the consent of holders of at least a majority in principal amount of the outstanding debt
securities, amend or supplement the indenture or the debt securities, or waive compliance in a particular instance by us with any provision
of the indenture or the debt securities. We may not, however, without the consent of each holder affected by such action, modify or supplement
the indenture or the debt securities, or waive compliance with any provision of the indenture or the debt securities in order to:
| • | | reduce
the amount of debt securities whose holders must consent to an amendment, supplement, or
waiver to the indenture or such debt security; |
| • | | reduce
the rate of or change the time for payment of interest; |
| • | | reduce
the principal of or change the stated maturity of the debt securities; |
| • | | make
any debt security payable in money other than that stated in the debt security; |
| • | | change
the amount or time of any payment required, or reduce the premium payable upon any redemption,
or change the time before which no such redemption may be made; |
| • | | waive
a default in the payment of the principal of, premium, if any, or interest on the debt securities
or a redemption payment; or |
| • | | take
any other action otherwise prohibited by the indenture to be taken without the consent of
each holder affected by the action. |
Defeasance
of Debt Securities and Certain Covenants in Certain Circumstances
The
indenture will permit us, at any time, to elect to discharge our obligations with respect to one or more series of debt securities by
following certain procedures described in the indenture. These procedures will allow us either:
| • | | to
defease and be discharged from any and all of our obligations with respect to any debt securities
except for the following obligations (which discharge is referred to as “legal defeasance”): |
(1)
to register the transfer or exchange of such debt securities;
(2)
to replace temporary or mutilated, destroyed, lost, or stolen debt securities;
(3)
to compensate and indemnify the trustee; or
(4)
to maintain an office or agency in respect of the debt securities and to hold monies for payment in trust; or
| • | | to
be released from our obligations with respect to the debt securities under certain covenants
contained in the indenture, as well as any additional covenants which may be contained in
the applicable supplemental indenture (which release is referred to as “covenant defeasance”). |
In
order to exercise either defeasance option, we must deposit with the trustee or other qualifying trustee, in trust for that purpose:
| • | | U.S.
Government Obligations (as described below) or Foreign Government Obligations (as described
below), which through the scheduled payment of principal and interest in accordance with
their terms will provide money; or |
| • | | a
combination of money and/or U.S. Government Obligations and/or Foreign Government Obligations
sufficient in the written opinion of a nationally-recognized firm of independent accountants
to provide money; |
which
in each case specified above, provides a sufficient amount to pay the principal of, premium, if any, and interest, if any, on the debt
securities of the series, on the scheduled due dates, or on a selected date of redemption in accordance with the terms of the indenture.
In
addition, defeasance may be effected only if, among other things:
| • | | in
the case of either legal or covenant defeasance, we deliver to the trustee an opinion of
counsel, as specified in the indenture, stating that as a result of the defeasance neither
the trust nor the trustee will be required to register as an investment company under the
Investment Company Act of 1940; |
| • | | in
the case of legal defeasance, we deliver to the trustee an opinion of counsel stating that
we have received from, or there has been published by, the Internal Revenue Service a ruling
to the effect that, or there has been a change in any applicable federal income tax law with
the effect that (and the opinion shall confirm that), the holders of outstanding debt securities
will not recognize income, gain, or loss for U.S. federal income tax purposes solely as a
result of such legal defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner, including as a result of prepayment, and at the same times as
would have been the case if legal defeasance had not occurred; |
| • | | in
the case of covenant defeasance, we deliver to the trustee an opinion of counsel to the effect
that the holders of the outstanding debt securities will not recognize income, gain, or loss
for U.S. federal income tax purposes as a result of covenant defeasance and will be subject
to U.S. federal income tax on the same amounts, in the same manner, and at the same times
as would have been the case if covenant defeasance had not occurred; and |
| • | | certain
other conditions described in the indenture are satisfied. |
If
we fail to comply with our remaining obligations under the indenture and applicable supplemental indenture after a covenant defeasance
of the indenture and applicable supplemental indenture, and the debt securities are declared due and payable because of the occurrence
of any undefeased event of default, the amount of money and/or U.S. Government Obligations and/or Foreign Government Obligations on deposit
with the trustee could be insufficient to pay amounts due under the debt securities of the affected series at the time of acceleration.
We will, however, remain liable in respect of these payments.
The
term “U.S. Government Obligations” as used in the above discussion means securities that are direct obligations of or non-callable
obligations guaranteed by the United States of America for the payment of which obligation or guarantee the full faith and credit of
the United States of America is pledged.
The
term “Foreign Government Obligations” as used in the above discussion means, with respect to debt securities of any series
that are denominated in a currency other than U.S. dollars (1) direct obligations of the government that issued or caused to be issued
such currency for the payment of which obligations its full faith and credit is pledged or (2) obligations of a person controlled or
supervised by or acting as an agent or instrumentality of such government the timely payment of which is unconditionally guaranteed as
a full faith and credit obligation by that government, which in either case under clauses (1) or (2), are not callable or redeemable
at the option of the issuer.
Regarding
the Trustee
We
will identify the trustee with respect to any series of debt securities in the prospectus supplement relating to the applicable debt
securities. You should note that if the trustee becomes a creditor of our company, the indenture and the Trust Indenture Act of 1939
limit the rights of the trustee to obtain payment of claims in certain cases, or to realize on certain property received in respect of
any such claim, as security or otherwise. The trustee and its affiliates may engage in, and will be permitted to continue to engage in,
other transactions with us and our affiliates. If, however, the trustee acquires any “conflicting interest” within the meaning
of the Trust Indenture Act of 1939, it must eliminate such conflict or resign.
The
holders of a majority in principal amount of the then outstanding debt securities of any series may direct the time, method, and place
of conducting any proceeding for exercising any remedy available to the trustee. If an event of default occurs and is continuing, the
trustee, in the exercise of its rights and powers, must use the degree of care and skill of a prudent person in the conduct of his or
her own affairs. Subject to that provision, the trustee will be under no obligation to exercise any of its rights or powers under the
indenture at the request of any of the holders of the debt securities, unless they have offered to the trustee reasonable indemnity or
security.
DESCRIPTION
OF RIGHTS
General
We
may issue rights to our stockholders to purchase shares of our common stock, preferred stock or the other securities described in this
prospectus. We may offer rights separately or together with one or more additional rights, debt securities, preferred stock, common stock
or warrants, or any combination of those securities in the form of units, as described in the applicable prospectus supplement. Each
series of rights will be issued under a separate rights agreement to be entered into between us and a bank or trust company, as rights
agent. The rights agent will act solely as our agent in connection with the certificates relating to the rights of the series of certificates
and will not assume any obligation or relationship of agency or trust for or with any holders of rights certificates or beneficial owners
of rights. The following description sets forth certain general terms and provisions of the rights to which any prospectus supplement
may relate. The particular terms of the rights to which any prospectus supplement may relate and the extent, if any, to which the general
provisions may apply to the rights so offered will be described in the applicable prospectus supplement. To the extent that any particular
terms of the rights, rights agreement or rights certificates described in a prospectus supplement differ from any of the terms described
below, then the terms described below will be deemed to have been superseded by that prospectus supplement. We encourage you to read
the applicable rights agreement and rights certificate for additional information before you decide whether to purchase any of our rights.
We will provide in a prospectus supplement the following terms of the rights being issued:
| • | | the
date of determining the stockholders entitled to the rights distribution; |
| • | | the
aggregate number of shares of common stock, preferred stock or other securities purchasable
upon exercise of the rights; |
| • | | the
aggregate number of rights issued; |
| • | | whether
the rights are transferrable and the date, if any, on and after which the rights may be separately
transferred; |
| • | | the
date on which the right to exercise the rights will commence, and the date on which the right
to exercise the rights will expire; |
| • | | the
method by which holders of rights will be entitled to exercise; |
| • | | the
conditions to the completion of the offering, if any; |
| • | | the
withdrawal, termination and cancellation rights, if any; |
| • | | whether
there are any backstop or standby purchaser or purchasers and the terms of their commitment,
if any; |
| • | | whether
stockholders are entitled to oversubscription rights, if any; |
| • | | any
applicable material United States federal income tax considerations; and |
| • | | any
other terms of the rights, including terms, procedures and limitations relating to the distribution,
exchange and exercise of the rights, as applicable. |
Each
right will entitle the holder of rights to purchase for cash the principal amount of shares of common stock, preferred stock or other
securities at the exercise price provided in the applicable prospectus supplement. Rights may be exercised at any time up to the close
of business on the expiration date for the rights provided in the applicable prospectus supplement.
Holders
may exercise rights as described in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly
completed and duly executed at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement,
we will, as soon as practicable, forward the shares of common stock, preferred stock or other securities, as applicable, purchasable
upon exercise of the rights. If less than all of the rights issued in any rights offering are exercised, we may offer any unsubscribed
securities directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination of such
methods, including pursuant to standby arrangements, as described in the applicable prospectus supplement.
Rights
Agent
The
rights agent for any rights we offer will be set forth in the applicable prospectus supplement.
DESCRIPTION
OF UNITS
This
section outlines some of the provisions of the units and the unit agreements that we may enter into. This information may not be complete
in all respects and is qualified entirely by reference to the unit agreement with respect to the units of any particular series. The
specific terms of any series of units will be described in the applicable prospectus supplement. If so described in a particular supplement,
the specific terms of any series of units may differ from the general description of terms presented below.
We
may issue units comprised of one or more debt securities, shares of common stock, shares of preferred stock, and warrants in any combination.
Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of
a unit will have the rights and obligations of a holder of each included security. The unit agreement under which a unit is issued may
provide that the securities included in the unit may not be held or transferred separately, at any time or at any time before a specified
date.
The
applicable prospectus supplement may describe:
| • | | the
designation and terms of the units and of the securities comprising the units, including
whether and under what circumstances those securities may be held or transferred separately; |
| • | | any
provisions of the governing unit agreement that differ from those described below; and |
| • | | any
provisions for the issuance, payment, settlement, transfer, or exchange of the units or of
the securities comprising the units. |
The
provisions described in this section, as well as those described under “Description of Common Stock,” “Description
of Preferred Stock,” “Description of Warrants,” and “Description of Debt Securities” will apply to the
securities included in each unit, to the extent relevant.
Issuance
in Series
We
may issue units in such amounts and in as many distinct series as we wish. This section summarizes terms of the units that apply generally
to all series. Most of the financial and other specific terms of your series will be described in the applicable prospectus supplement.
Unit
Agreements
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant to this
prospectus. We will issue the units under one or more unit agreements to be entered into between us and a bank or other financial institution,
as unit agent. We may add, replace, or terminate unit agents from time to time. We will identify the unit agreement under which each
series of units will be issued and the unit agent under that agreement in the applicable prospectus supplement.
The
following provisions will generally apply to all unit agreements unless otherwise stated in the applicable prospectus supplement.
Enforcement
of Rights
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant to this
prospectus. The unit agent under a unit agreement will act solely as our agent in connection with the units issued under that agreement.
The unit agent will not assume any obligation or relationship of agency or trust for or with any holders of those units or of the securities
comprising those units. The unit agent will not be obligated to take any action on behalf of those holders to enforce or protect their
rights under the units or the included securities.
Except
as indicated in the next paragraph, a holder of a unit may, without the consent of the unit agent or any other holder, enforce its rights
as holder under any security included in the unit, in accordance with the terms of that security and the indenture, warrant agreement,
rights agreement or other instrument under which that security is issued. Those terms are described elsewhere in this prospectus under
the sections relating to debt securities, preferred stock, common stock, or warrants, as relevant.
Notwithstanding
the foregoing, a unit agreement may limit or otherwise affect the ability of a holder of units issued under that agreement to enforce
its rights, including any right to bring a legal action, with respect to those units or any securities, other than debt securities, that
are included in those units. Limitations of this kind will be described in the applicable prospectus supplement.
Modification
without Consent of Holders. Unless otherwise provided in the applicable prospectus supplement, the following provisions will
apply to any units we issue pursuant to this prospectus. We and the applicable unit agent may amend any unit or unit agreement without
the consent of any holder:
| • | | to
correct or supplement any defective or inconsistent provision; or |
| • | | to
make any other change that we believe is necessary or desirable and will not adversely affect
the interests of the affected holders in any material respect. |
We
do not need any approval to make changes that affect only units to be issued after the changes take effect. We may also make changes
that do not adversely affect a particular unit in any material respect, even if they adversely affect other units in a material respect.
In those cases, we do not need to obtain the approval of the holder of the unaffected unit; we need only obtain any required approvals
from the holders of the affected units.
Modification
with Consent of Holders. Unless otherwise provided in the applicable prospectus supplement, the following provisions will apply
to any units we issue pursuant to this prospectus. We may not amend any particular unit or a unit agreement with respect to any particular
unit unless we obtain the consent of the holder of that unit, if the amendment would:
| • | | impair
any right of the holder to exercise or enforce any right under a security included in the
unit if the terms of that security require the consent of the holder to any changes that
would impair the exercise or enforcement of that right; or |
| • | | reduce
the percentage of outstanding units or any series or class the consent of whose holders is
required to amend that series or class, or the applicable unit agreement with respect to
that series or class, as described below. |
Any other
change to a particular unit agreement and the units issued under that agreement would require the following approval:
| • | | if
the change affects only the units of a particular series issued under that agreement, the
change must be approved by the holders of a majority of the outstanding units of that series;
or |
| • | | if
the change affects the units of more than one series issued under that agreement, it must
be approved by the holders of a majority of all outstanding units of all series affected
by the change, with the units of all the affected series voting together as one class for
this purpose. |
These provisions
regarding changes with majority approval also apply to changes affecting any securities issued under a unit agreement, as the governing
document.
In
each case, the required approval must be given by written consent.
Unit
Agreements Will Not Be Qualified Under Trust Indenture Act. No unit agreement will be qualified as an indenture, and no unit
agent will be required to qualify as a trustee, under the Trust Indenture Act. Therefore, holders of units issued under unit agreements
will not have the protections of the Trust Indenture Act with respect to their units.
Mergers
and Similar Transactions Permitted; No Restrictive Covenants or Events of Default
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant to this
prospectus. The unit agreements will not restrict our ability to merge or consolidate with, or sell our assets to, another corporation
or other entity or to engage in any other transactions. If at any time we merge or consolidate with, or sell our assets substantially
as an entirety to, another corporation or other entity, the successor entity will succeed to and assume our obligations under the unit
agreements. We will then be relieved of any further obligation under these agreements.
The
unit agreements will not include any restrictions on our ability to put liens on our assets, including our interests in our subsidiaries,
nor will they restrict our ability to sell our assets. The unit agreements also will not provide for any events of default or remedies
upon the occurrence of any events of default.
Governing
Law
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant to this
prospectus. The unit agreements and the units will be governed by Delaware or New York law as decided by the Company at the time of issuance.
Form,
Exchange, and Transfer
Unless
otherwise provided in the applicable prospectus supplement, the following provisions will apply to any units we issue pursuant to this
prospectus. We will issue each unit in global—that is, book-entry—form only. Units in book-entry form will be represented
by a global security registered in the name of a depositary, which will be the holder of all the units represented by the global security.
Those who own beneficial interests in a unit will do so through participants in the depositary’s system, and the rights of these
indirect owners will be governed solely by the applicable procedures of the depositary and its participants.
In
addition, we will issue each unit in registered form, unless we say otherwise in the applicable prospectus supplement. Bearer securities
would be subject to special provisions, as we describe below under “Securities Issued in Bearer Form.”
Each
unit and all securities comprising the unit will be issued in the same form.
If
we issue any units in registered, non-global form, the following will apply to them.
The
units will be issued in the denominations stated in the applicable prospectus supplement. Holders may exchange their units for units
of smaller denominations or combined into fewer units of larger denominations, as long as the total amount is not changed.
| • | | Holders
may exchange or transfer their units at the office of the unit agent. Holders may also replace
lost, stolen, destroyed, or mutilated units at that office. We may appoint another entity
to perform these functions or perform them ourselves. |
| • | | Holders
will not be required to pay a service charge to transfer or exchange their units, but they
may be required to pay for any tax or other governmental charge associated with the transfer
or exchange. The transfer or exchange, and any replacement, will be made only if our transfer
agent is satisfied with the holder’s proof of legal ownership. The transfer agent may
also require an indemnity before replacing any units. |
| • | | If
we have the right to redeem, accelerate, or settle any units before their maturity, and we
exercise our right as to less than all those units or other securities, we may block the
exchange or transfer of those units during the period beginning 15 days before the day we
mail the notice of exercise and ending on the day of that mailing, in order to freeze the
list of holders to prepare the mailing. We may also refuse to register transfers of or exchange
any unit selected for early settlement, except that we will continue to permit transfers
and exchanges of the unsettled portion of any unit being partially settled. We may also block
the transfer or exchange of any unit in this manner if the unit includes securities that
are or may be selected for early settlement. |
Only the
depositary will be entitled to transfer or exchange a unit in global form, since it will be the sole holder of the unit.
Payments
and Notices
In
making payments and giving notices with respect to our units, we will follow the procedures we plan to use with respect to our debt securities,
where applicable.
PLAN
OF DISTRIBUTION
We
and any selling security holders may sell the securities covered by this prospectus directly to purchasers or through underwriters, broker-dealers,
or agents, who may receive compensation in the form of discounts, concessions, or commissions from us. These discounts, concessions,
or commissions as to any particular underwriter, broker-dealer, or agent may be in excess of those customary in the types of transactions
involved. In addition, we may issue the securities as a dividend or distribution or in a subscription rights offering to our existing
security holders.
The
securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices
determined at the time of sale, or at negotiated prices. These sales may be effected in transactions which may involve crosses or block
transactions.
If
underwriters are used in an offering of securities, such offered securities may be resold in one or more transactions:
| • | | on
any national securities exchange or quotation service on which the common stock or the preferred
stock may be listed or quoted at the time of sale, including, as of the date of this prospectus,
the Nasdaq Capital Market in the case of the common stock; |
| • | | in
the over-the-counter market; |
| • | | in
transactions otherwise than on these exchanges or services or in the over-the-counter market;
or |
| • | | through
the writing of options, whether the options are listed on an options exchange or otherwise. |
Each prospectus
supplement will state the terms of the offering, including, but not limited to:
| • | | the
names of any underwriters, dealers, or agents; |
| • | | the
public offering or purchase price of the securities and the net proceeds that we will receive
from the sale; |
| • | | any
underwriting discounts and commissions or other items constituting underwriters’ compensation; |
| • | | any
discounts, commissions, or fees allowed or paid to dealers or agents; and |
| • | | any
securities exchange on which the offered securities may be listed. |
If
we sell securities to underwriters, we will execute an underwriting agreement with them at the time of the sale and will name them in
the applicable prospectus supplement. In connection with these sales, the underwriters may be deemed to have received compensation in
the form of underwriting discounts and commissions. The underwriters also may receive commissions from purchasers of securities for whom
they may act as agent. Unless we specify otherwise in the applicable prospectus supplement, the underwriters will not be obligated to
purchase the securities unless the conditions set forth in the underwriting agreement are satisfied, and if the underwriters purchase
any of the securities offered by such prospectus supplement, they will be required to purchase all of such offered securities. The underwriters
may acquire the securities for their own account and may resell the securities from time to time in one or more transactions, including
negotiated transactions, at a fixed public offering price or varying prices determined at the time of sale. The underwriters may sell
the securities to or through dealers, and those dealers may receive discounts, concessions, or commissions from the underwriters as well
as from the purchasers for whom they may act as agent.
We
may designate agents who agree to use their reasonable efforts to solicit purchasers for the period of their appointment or to sell securities
on a continuing basis. We may also sell securities directly to one or more purchasers without using underwriters or agents.
Under
agreements entered into with us, underwriters and agents may be entitled to indemnification by us against certain civil liabilities,
including liabilities under the Securities Act, or to contribution for payments the underwriters or agents may be required to make. The
underwriters, agents, and their affiliates may engage in financial or other business transactions with us and our subsidiaries in the
ordinary course of business.
The aggregate
proceeds to us from the sale of the securities will be the purchase price of the securities less discounts and commissions, if any.
In
order to comply with the securities laws of certain states, if applicable, any securities covered by this prospectus must be sold in
such jurisdictions only through registered or licensed brokers or dealers. In addition, in certain states securities may not be sold
unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.
In
order to facilitate the offering of the securities, any underwriters may engage in transactions that stabilize, maintain, or otherwise
affect the price of the securities or any other securities the prices of which may be used to determine payments on such securities.
Specifically, any underwriters may over-allot in connection with the offering, creating a short position for their own accounts. In addition,
to cover overallotments or to stabilize the price of the securities or of any such other securities, the underwriters may bid for, and
purchase, the securities or any such other securities in the open market. Finally, in any offering of the securities through a syndicate
of underwriters, the underwriting syndicate may reclaim selling concessions allowed to an underwriter or a dealer for distributing the
securities in the offering if the syndicate repurchases previously distributed securities in transactions to cover syndicate short positions,
in stabilization transactions, or otherwise. Any of these activities may stabilize or maintain the market price of the securities above
independent market levels. Any such underwriters are not required to engage in these activities and may end any of these activities at
any time.
The
applicable prospectus supplement may provide that the original issue date for your securities may be more than three scheduled business
days after the trade date for your securities. Accordingly, in such a case, if you wish to trade securities on any date prior to the
third business day before the original issue date for your securities, you will be required, by virtue of the fact that your securities
initially are expected to settle in more than three scheduled business days after the trade date for your securities, to make alternative
settlement arrangements to prevent a failed settlement.
The
securities may be new issues of securities and may have no established trading market. The securities may or may not be listed on a national
securities exchange. We can make no assurance as to the liquidity of or the existence of trading markets for any of the securities.
In
order to comply with the securities laws of some states, if applicable, the shares of common stock offered by this prospectus must be
sold in such jurisdictions only through registered or licensed brokers or dealers. In addition, in some states the shares of common stock
may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration
or qualification requirement is available and is complied with.
To
the extent required, this prospectus may be amended or supplemented from time to time to describe a specific plan of distribution.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is VStock Transfer, LLC.
LEGAL
MATTERS
The
validity of the securities that may be offered hereby will be passed upon for us by Sichenzia Ross Ference Carmel LLP, New York, New
York. Additional legal matters may be passed upon for us or any underwriters, dealers, or agents by counsel that we will name in the
applicable prospectus supplement.
EXPERTS
The
consolidated financial statements of Healthcare Triangle, Inc. as of and for the year ended December 31, 2022 and December 31, 2021 have
been incorporated by reference herein and in the registration statement in reliance upon the reports of BF Borgers CPA PC, an independent
registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
WHERE
YOU CAN FIND MORE INFORMATION
We
are subject to the informational requirements of the Exchange Act and in accordance therewith file annual, quarterly and current reports,
proxy statements and other information with the Securities and Exchange Commission. The Securities and Exchange Commission maintains
a website that contains reports, proxy and information statements and other information regarding registrants that file electronically
with the Securities and Exchange Commission. The address of the Securities and Exchange Commission’s website is www.sec.gov.
We
make available free of charge on or through our website at www.healthcaretriangle.com, our Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Exchange Act as soon as reasonably practicable after we electronically file such material with or otherwise furnish it to the Securities
and Exchange Commission.
We
have not incorporated by reference into this prospectus the information on our website, and you should not consider it to be a part of
this prospectus.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
SEC allows us to “incorporate by reference” in this prospectus the information we file with the SEC. This helps us disclose
certain important information to you by referring you to the documents we file. The information we incorporate by reference is an important
part of this prospectus. Because we are incorporating by reference future filings with the SEC, this prospectus is continually updated
and those future filings may modify or supersede some of the information included or incorporated in this prospectus. This means that
you must look at all of the SEC filings that we incorporate by reference to determine if any of the statements in this prospectus or
in any document previously incorporated by reference have been modified or superseded. We incorporate by reference each of the documents
listed below:
| • | | Our
Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities
and Exchange Commission on March
28, 2023, as amended by Amendment No. 1 filed with the Securities and Exchange Commission
on January
4, 2023; |
| • | | Our
Definitive Proxy Statement filed with the Securities and Exchange Commission on November 9, 2023 and the Revised Definitive Proxy Statement filed with the Securities and Exchange
Commission on November 16, 2023; |
| • | | Our
Quarterly Reports on Form 10-Q for the three months ended March 31, 2023, the six months
ended June 30, 2023, and the nine months ended September 30, 2023 (our “Quarterly Reports”),
filed with the Securities and Exchange Commission on May
9, 2023 , August
10, 2023 and November
13, 2023; |
| • | | The
description of our common stock contained in our Registration Statement on Form 8-A filed
with the Securities and Exchange Commission on October
12, 2021, and any subsequent amendment thereto filed for the purpose of updating such
description. |
| • | | Our
Current Reports on Form 8-K, filed with the Securities and Exchange Commission on January
27, 2023, April
6, 2023, May
4, 2023, May
30, 2023, June
5, 2023, June
29, 2023, July
14, 2023, September
5, 2023, November
29, 2023 and January
2, 2024 |
All
filings filed by us pursuant to the Exchange Act after the date of the initial filing of this registration statement and prior to the
effectiveness of such registration statement (excluding information furnished pursuant to Items 2.02 and 7.01 of Form 8-K) shall also
be deemed to be incorporated by reference into the prospectus.
Certain
statements in and portions of this prospectus update and replace information in the above listed documents incorporated by reference.
Likewise, statements in or portions of a future document incorporated by reference in this prospectus may update and replace statements
in and portions of this prospectus or the above listed documents.
We
will provide you without charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this
prospectus, other than exhibits to such documents which are not specifically incorporated by reference into such documents. Please direct
your written or telephone requests to:
Healthcare
Triangle, Inc.
Attn:
Investor Relations
7901
Stoneridge Drive, Suite 220
Pleasanton,
CA 94588
(925)
270-4812
The
information contained on our website is not a part of this prospectus.
HEALTHCARE
TRIANGLE, INC.
$
50,000,000
Common
Stock
Preferred
Stock
Warrants
Debt
Securities
Rights
Units
______________________
PROSPECTUS
______________________
January
4, 2024
| |
| The
information in this prospectus is not complete and may be changed. We may not sell these
securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and is not soliciting
an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION, DATED JANUARY 4, 2024
PROSPECTUS
Up
to $7,200,000
Healthcare
Triangle, Inc.
Common
Stock
We
have entered into ATM Sales Agreement (“ATM Sales Agreement”) with Dawson James Securities, Inc. (the “Sales Agent”)
dated January 4, 2024, pursuant to which we may, from time to time, issue and sell the shares of our common stock, $0.00001 par value
per share, covered by this prospectus from time to time through or to the Sales Agent, acting as our agent or principal.
Under
the ATM Sales Agreement, we are not obligated to sell any shares, but we may issue and sell shares of our common stock having an aggregate
gross sales price of up to $7,200,000 through the Sales Agent.
Our
common stock trades on the Nasdaq Capital Market (“Nasdaq”) under the symbol “HCTI.” The last reported sale price
of our common stock on Nasdaq on January 2, 2024 was $2.855 per share.
Pursuant
to General Instruction I.B.6 of Form S-3, in no event will we sell our securities in public primary offerings with a value exceeding
more than one-third of our public float in any 12-month period so long as our public float remains below $75.0 million. As of January
2, 2024, the aggregate market value of our outstanding common stock held by non- affiliates, or public float, was $7,241,244, based on
1,703,822 shares of our outstanding common stock that were held by non-affiliates on such date and a price of $4.25 per share, which
was the price at which our common stock was last sold on the Nasdaq Capital Market on November 15, 2023, calculated in accordance with
General Instruction I.B.6 of Form S-3. We have not offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the
twelve-month period that ends on and includes the date hereof.
Shares
of our common stock covered by this prospectus may be sold by any method deemed to be an “at the market offering” as defined
in Rule 415(a)(4) under the Securities Act of 1933, as amended (the “Securities Act”). When it receives a sale order from
us, the Sales Agent has agreed to use commercially reasonable efforts consistent with its normal trading and sales practices to execute
the order on mutually agreed terms. There is no arrangement for funds to be received in any escrow, trust, or similar arrangement.
The
compensation payable to the Sales Agent for sales of common stock sold pursuant to the ATM Sales Agreement will be 3% of the gross proceeds
of the sales price of common stock sold. We anticipate no other commissions or material expenses for sales under the ATM Sales Agreement.
The orders will be executed at price limits imposed by us.
Even
though this prospectus does not relate to a marketed offering of our common stock, in connection with the sale of common stock under
the ATM Sales Agreement, the Sales Agent will be deemed to be an “underwriter” within the meaning of the Securities Act,
and the compensation of the Sales Agent will be deemed to be underwriting commissions or discounts. We have agreed to indemnify the Sales
Agent against certain civil liabilities, including liabilities under the Securities Act or the Securities Exchange Act of 1934, as amended.
See the section titled “Plan of Distribution” on page 61 of this prospectus.
Currently,
we are an “emerging growth company” as defined in Section 2(a) of the Securities Act, and are subject to reduced public
company reporting requirements. Please read “Implications of Being an Emerging Growth Company” on page 55 of this
prospectus.
You
should read carefully and consider the “Risk Factors” referenced on page 57 of this prospectus and the risk
factors described in other documents incorporated by reference herein.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed
upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
Dawson
James Securities, Inc.
The
date of this prospectus is January 4, 2024.
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TABLE
OF CONTENTS
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ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “SEC”) utilizing
a “shelf” registration process on January 4, 2024. Under the shelf registration process, we may offer shares of our common
stock from time to time having an aggregate offering price of up to $7,200,000. Under this prospectus, we may from time to time sell
shares of our common stock having an aggregate offering price of up to $7,200,000at prices and on terms to be determined by market conditions
at the time of offering in accordance with the ATM Sales Agreement. This prospectus and the documents incorporated herein by reference
include important information about us, the shares being offered, and other information you should know before investing in our common
stock.
You
should rely only on this prospectus and the information incorporated or deemed to be incorporated by reference in this prospectus. We
have not, and the Sales Agent has not, authorized anyone to provide you with information that is in addition to or different from that
contained or incorporated by reference in this prospectus. We are not, and the Sales Agent is not, offering to sell these securities
in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained or incorporated by
reference in this prospectus is accurate as of any date other than as of the date of this prospectus or in the case of the documents
incorporated by reference, the date of such documents regardless of the time of delivery of this prospectus or any sale of our common
stock. Our business, financial condition, liquidity, results of operations, and prospects may have changed since those dates.
You
should read this prospectus and the documents incorporated by reference into this prospectus that we may authorize for use in connection
with this offering in their entirety before making an investment decision. You should also read and consider the information in the documents
to which we have referred you in the sections of this prospectus entitled “Where You Can Find More Information” and
“Incorporation of Certain Information by Reference.”
We
are offering to sell, and seeking offers to buy, shares of common stock only in jurisdictions where offers and sales are permitted. The
distribution of this prospectus and the offering of the common stock in certain jurisdictions may be restricted by law. Persons outside
the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to,
the offering of the common stock and the distribution of this prospectus outside the United States. This prospectus does not constitute,
and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by this prospectus
by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation.
We
further note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document
that is incorporated by reference into the prospectus and accompanying prospectus were made solely for the benefit of the parties to
such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreement, and should not be deemed
to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of
the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the
current state of our affairs.
As
used in this prospectus, unless the context otherwise requires, the terms “HCTI,” the “Company,” the “registrant,”
“we,” “us,” “our,” “our company,” or “ours” refer to Healthcare Triangle,
Inc. and its consolidated subsidiaries.
|
| |
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CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus, the accompanying prospectus, and the documents incorporated by reference herein and therein, and other written and oral statements
we make from time to time contain certain “forward-looking” statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can identify these forward-looking
statements by the fact they use words such as “could,” “expect,” “anticipate,” “estimate,”
“target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe,”
“will,” “potential,” “opportunity,” “future,” and other words and terms of similar meaning
and expression in connection with any discussion of future operating or financial performance. You can also identify forward-looking
statements by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on
current expectations and involve inherent risks and uncertainties, including factors that could delay, divert, or change any of them,
and could cause actual outcomes to differ materially from current expectations. These statements are likely to relate to, among other
things, our business strategy, our research and development, our product development efforts, our ability to commercialize our product
candidates, the activities of our licensees, our prospects for initiating partnerships or collaborations, the timing of the introduction
of products, the effect of new accounting pronouncements, uncertainty regarding our future operating results and our profitability, anticipated
sources of funds as well as our plans, objectives, expectations, and intentions.
We
have included more detailed descriptions of these risks and uncertainties and other risks and uncertainties applicable to our business
that we believe could cause actual results to differ materially from any forward-looking statement in the “Risk Factors”
sections of this prospectus and the documents incorporated by reference herein including, but not limited to, the risk factors incorporated
by reference from our filings with the SEC. We encourage you to read those descriptions carefully. Although we believe we have been prudent
in our plans and assumptions, no assurance can be given that any goal or plan set forth in forward-looking statements can be achieved.
We caution investors not to place significant reliance on forward-looking statements; such statements need to be evaluated in light of
all the information contained and incorporated by reference in this prospectus. Furthermore, the statements speak only as of the date
of each document, and we undertake no obligation to update or revise these statements.
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PROSPECTUS
SUMMARY
The
following is a summary of selected information contained elsewhere in this prospectus or incorporated by reference. It does not contain
all of the information that you should consider before buying our common stock. You should read this prospectus in its entirety, including
the information incorporated by reference herein and therein..
Overview
We
are a Healthcare information technology company focused on advancing innovative industry-transforming solutions in the sectors of cloud
services, data science, and professional and managed services for the Electronic Health Record, healthcare and life sciences industry.
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, AI/ML, Internet
of things (“IoT”), 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 intellectual
property platforms provide advanced analytics, data science applications, and data aggregation in a secure, compliant and cost-effective
manner to our customers. Our approach reinforces healthcare progress through advanced technology, extensive industry knowledge, and domain
expertise.
Our
deep expertise in healthcare allows us to reinforce our clients’ progress by accelerating their innovation. Our healthcare IT services
include IEHR 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 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.
We
believe our principal competitive factors in our market include our technology capabilities, domain expertise, and on-demand customer
support for companies to realize the benefits of modern cloud, data, and security architectures. There are several unique factors mentioned
below that make HCTI an attractive service provider for healthcare and life sciences companies:
•
Technology Platforms: our proprietary software platforms, CloudEz and DataEz, are leveraged by our healthcare and life sciences customers
for cloud transformation, automation, data management, security and data governance, and clinical and non-clinical operations management.
Our Readabl.AI platform uses state-of-the-art public cloud artificial intelligence and machine learning to recognize and extract healthcare
information from documents, faxes, and narrative reports.
•
Technology Enabled Services: our ability to deliver world-class services in the areas of cloud technologies, data, AI/ML, security, compliance,
governance and extend these capabilities with clinical and operational consultants that work across the healthcare industry to improve
patient and consumer outcomes.
•
Expertise in Compliance: our compliance and validation experts enable us to implement Health Insurance Portability and Accountability
Act (HIPAA) requirements in GxP regulated establishments; GxP encompasses a broad range of compliance-related activities such as Good
Laboratory Practices (GLP), Good Clinical Practices (GCP), and Good Manufacturing Practices (GMP). HCTI’s technology platforms
CloudEz and DataEz are HITRUST self-certified. HCTI also supports BAA (Business Associate Agreement) coverage for healthcare clients
along with cloud providers and PCI-DSS standards.
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•
Engagement and Flexibility: HCTI’s ability to achieve customer operational objectives
through our design and commercialization of innovative solutions with an outcome-based approach
and prompt feedback.
•
Team Members: our world-class team of certified cloud architects and our unique expertise in large global pharmaceutical and biotech
organizations and other participants of the healthcare industry.
•
Personal Approach to Customers: our strong relationship management and deep understanding of customer requirements enable us to continuously
drive innovation. Our delivery methodology and automation-based approach give us the ability to respond to our customers’ needs
and requirements rapidly.
•
Partnership with Industry Leaders: our established relationships with healthcare and life sciences teams of the public cloud providers,
including Amazon Web Services (“AWS”), Google Cloud, Microsoft Azure Cloud, and EHR vendors such as MEDITECH and Epic Systems
while engaging with our customers for overall success.
Our
organizational capabilities and unique advantages also include solving data insights and data interoperability challenges for the HCLS
industry with our domain knowledge and technology solutions. To accelerate healthcare providers’ adoption of cloud and next-generation
technologies, we leverage our life sciences and medical device industry experience in cloud, data, IoT, AI/ML, security & compliance.
The
majority of our revenue is generated by our employees and contractors who provide software services and managed services and Support
to our clients. Our software services include strategic advisory, implementation and development services and managed services and support
include post implementation support and cloud hosting. We are in the early stages of marketing CloudEz, DataEz and Readabl.AI as our
SaaS offerings on a subscription basis, which we expect will provide us with recurring revenues. We do not yet have enough information
about our competition or customer acceptance of the proposed SaaS offerings to determine whether or not recurring subscription revenue
will have a material impact on our revenue growth. Our SaaS offerings have been launched and commercially available for customers.
Background
As
of January 4, 2024, SecureKloud Technologies, Inc., f/k/a 8K Miles software services, Inc., a Nevada corporation (the “Parent”),
owns approximately 59.18% of the Company. Our Parent is 60.71% owned by SecureKloud Technologies Ltd., an Indian company that is publicly
traded in India.
We
are led by a diverse, global, and talented team of data scientists, thought leaders, software developers, and subject matter experts
who seek to understand our customers’ challenges and are dedicated to tackling these challenges. As of September 30, 2023, we had
a total of 67 full time employees, 160 sub-contractors, including 82 certified cloud engineers, 93 Epic Certified EHR experts and 16
MEDITECH Certified EHR experts. Many of the senior management team and the members of our board of directors hold advanced degrees and
some are leading experts in software development, regulatory science, and market access.
The
Company, along with the Parent, is a born-on-the-cloud Premier Partner of AWS and an audited next generation MSP. We are a leading partner
of Google Cloud and a Gold Cloud Partner of Microsoft Azure Cloud. HCTI, along with the Parent, is currently one of the top tier Healthcare
and life sciences competency partners of AWS among more than 100,000 partners in their global community of partners. The Company is also
recognized as one of the top eight partners of Google Cloud Healthcare Interoperability Readiness Program. The Company has also established
partnerships with Medical Information Technology, Inc. MEDITECH, Epic Systems, Splunk Inc., Snowflake Inc., Looker Inc. (acquired by
Google), and other technology companies. Our Parent was rated in 2021 by Solutions Review, an independent online magazine, as one of
the 22 best AWS-managed services providers(1). The Company has several Fortune 500 clients in the life sciences industry and
partners with many hospitals in their cloud transformation journey. We conduct our business directly with hospitals and other healthcare
providers. Our Healthcare IT services include systems selection, EHR implementation, post-implementation support to manage EHRs, legacy
support, optimization, training, and creation of efficient EHR systems, and improvement of clinical outcomes for hospitals.
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Market
Our
target markets are healthcare delivery organizations (e.g., hospitals, clinics, physician practices, and other healthcare providers)
and life sciences organizations (e.g., pharmaceutical and biotech companies). These target markets are large and rapidly expanding, and
the opportunity before us is substantial as data increasingly becomes more critical to successful clinical quality improvement and outcomes,
financial performance, drug discoveries, and the ever-important need to ensure a positive patient and consumer experience.
The
US healthcare cloud transformation services market will grow to $30B by 2027 with 17.4% CAGR as per Absolution Market Insights5.
Bloomberg business report estimates that the global market for healthcare data science and analytics will be $40B by 2025 with a CAGR
of 23.5%6. The US healthcare IT services market
is estimated to be $149B by 2025 with a CAGR 11.7% as per Allied Market Research7.
The medical document management market is estimated to be $555M by 2025 as per Market Data Forecast8.
Based
on the above market data on cloud transformation, healthcare data science and analytics, healthcare IT services and medical document
management, we believe CloudEz, DataEz and Readabl.AI platforms have significant market opportunity. As COVID-19 and technological advancements
accelerate a rapid shift toward digital health, healthcare technology companies like HCTI will help to transform the healthcare and life
sciences industry and pave the way for sizeable market opportunities.
We
believe the industry challenges and market dynamics described below are transforming the way data and analytics are used by healthcare
organizations and provide us with a significant opportunity.
Challenges
Associated With Increasing Complexity Of Healthcare Data
Across
the healthcare landscape, a significant amount of data is being created every day, driven by patient care, payment systems, regulatory
compliance, and recordkeeping. This includes information within patient health records, clinical trials, pharmacy benefit programs, imaging
systems, sensors, and monitoring platforms, laboratory results, patient-reported information, hospital, and physician performance programs,
and billing and payment processing.
The
U.S. Healthcare system has invested billions of dollars to collect vast amounts of detailed information in digital format. Examples of
major areas of investment include electronic transactional systems that digitize clinical information (e.g., EHR systems, pharmacy, laboratory,
imaging, patient satisfaction, and healthcare information exchanges), financial information (e.g., general ledger, costing, and billing),
and operational information (e.g., supply chain, human resources, time and attendance, IT support, and patient engagement). Wearables
and sensors drive personalized health data for continuous monitoring of patients through daily activity logs, biometric sensors, fall
sensors, social activity sensors, etc. These wearables and sensors result in a proliferation of healthcare data that also includes socioeconomic,
genomic, and remote patient monitoring information. Collecting, storing, and using healthcare data is complicated by the breadth and
depth of disparate sources, the multitude of formats, and increasing regulatory requirements.
The
data is vital for life sciences and pharmaceutical industries; however, traditional and current data platforms are not equipped to meet
this surge or the analytic demands. Today, the data platform is expected to stay relevant for at least 15 years, be able to democratize
the data, and still be secure and compliant. Data and analytics in healthcare is transforming the way illnesses are identified and treated,
improving quality of life and avoiding preventable deaths.
We
believe our DataEz platform addresses these challenges. DataEz is a cloud-based data pipeline platform that helps to enable personal
healthcare data management, analytics, and data science capabilities for large life sciences, pharmaceutical, and healthcare organizations.
It integrates with a larger variety of data sources to ingest, process, store, analyze, and gain insights from the data. By leveraging
the real-world evidence data and the ability to diagnose through advanced predictive modelling, AI/ML makes the process simpler and less
expensive. life sciences industries will require a secure, privacy-compliant, and future-proof data platform as a foundation for large-scale
genomics collaborations and for efforts to analyze archived data, including privacy-protected data. This means most organizations will
turn into data organizations and will aggressively leverage data as a core asset to drive innovation in their businesses.
Challenges
Due To Lack Of Coordination And Interoperability
The
healthcare industry is fragmented and inefficient, with different legacy health insurers, hospital systems, provider groups, and pharmacy
networks each possessing distinct incentive structures—some or all of which may diverge from consumers’ interests. Even as
consumer demand for greater coordination grows, inflexible and disparate legacy technological systems present a significant barrier to
meeting consumers’ wants and needs.
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After
decades of investing in EHR technology, the state of interoperability is insufficient and
inhibits care coordination, health data exchange, clinical efficiency, and the quality of
care provided to patients. Given that the EHR is the principal electronic interface used
today at the point of care, the path to improved data-driven decision support will require
integration between EHR systems and other data and analytics providers. Incidentally, the
U.S. healthcare system is in the midst of an “open data wave,” with an increasing
focus on, and demand for, patient data interoperability. Additionally, recent laws and regulations,
such as the 21st Century Cures Act, promote and prioritize interoperability and the free
exchange of health information. The COVID-19 pandemic in 2020 has helped to pave the way
for advancements in EHR interoperability and standardization. The federal government’s
new regulations aim to help patients gain better control of their health data via smartphone
apps, interoperability is expected to increase between providers, payers, and healthcare
technology companies.
We
believe our healthcare Interoperability solutions and proprietary platforms drive resilient interoperable health infrastructure as a
catalyst for delivering better care and reducing costs. We participate in Google Cloud’s healthcare Interoperability Readiness
Program, which aims to help free up patient data and make it more accessible across the continuum of care, as well as set up organizations
for long-term success with more modern, interoperable API-first architectures. We help healthcare providers understand their current
interoperability maturity levels and map out a stepwise journey to enable interoperability. For example, our Readabl.AI is a Google Cloud-based
AI/ML platform to ingest documents, which provides OCR (optical character recognition) capabilities with Natural Language Processing
where the patient information is extracted and matched/validated with healthcare providers’ EHR system via FHIR (Fast Healthcare
Interoperability Resources) API.
Impact
Of, And Response To, COVID-19 Pandemic
Because
of COVID-19, healthcare and life sciences organizations are accelerating research, rethinking patient care, and maintaining clinical
and operational continuity during this unprecedented time for the global health system. COVID-19 has necessitated the adoption of digital
communication channels and remote working technology within the healthcare and life sciences industry at a rapid pace.
We
believe our proprietary platforms and solutions address these challenges. Our business is focused on providing digital platform solutions
to healthcare organizations and it is our mission to adequately address COVID-19 challenges for the benefit of our customers and society
in general. As a result, consumers have better personal care, convenience, and value. We believe that COVID-19 is expected to drive increased
utilization of technology during and after the pandemic, and such shift to a virtual approach creates a unique opportunity for our business
to shape the new virtual-oriented experiences of businesses through our cloud technology and services.
Our
Technology And Services
We
offer two proprietary software platforms, CloudEz and DataEz, for cloud transformation, automation, data management, security and data
governance, and clinical and non-clinical operations management. The platforms are composed of individual, proprietary technology toolsets
and deep data assets that can be rapidly configured to empower the operationalization of large-scale, data-driven healthcare initiatives.
The platforms enable healthcare organizations to implement highly sophisticated value-based initiatives on a very large scale. At the
core of value-based initiatives is the need to aggregate and analyse data, garner meaningful insight from the results, and use these
insights to drive material change to outcomes and economics. The platforms address these needs through their major competencies: (i)
large-scale data connectivity, integration, and validation capabilities, (ii) advanced predictive analytics and high-speed computing,
(iii) toolsets to translate resulting insights into real-world impact, and (iv) purpose-built data visualization and reporting.
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CloudEz
Technology Platform
CloudEz
is an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure across
private, hybrid, and public cloud infrastructures from providers such as AWS, Microsoft Azure, and Google Cloud. CloudEz offers cloud
services to highly regulated industries, including healthcare, life sciences, and pharma and biotech organizations, in their cloud transformation
journey. It leverages a library of infrastructure and application code developed ‘in-house’ to deliver infrastructure services
that are secure and compliant. CloudEz also delivers an automated infrastructure compliance framework that facilitates our customers
in being continuously compliant with regulatory requirements.
Implementing
a secured cloud that requires continuous adherence of GxP / HIPAA compliance across a number of business units that individually span
over a number of different vendors is the biggest challenge across all regulatory specific industries, such as pharma and healthcare.
An automation framework that offers secure, continuous GxP / HIPAA compliance for pharmaceutical and healthcare businesses is required
for faster deployment of business applications.
CloudEz
platform has several security controls including identity & access management, cloud security & governance, data security, security
information & event management, network and application security.
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DataEz
Technology Platform
Managing
a data and data analytics platform is cumbersome with numerous moving components and current best practices that are prone to over-complication.
The implemented architecture of some competing solutions is typically not scalable or does not allow workload flexibility. Reengineering
such massive ecosystems is neither cost-effective nor practical for enterprises that want to focus on maintaining their market position.
Additionally, and more importantly, when enterprise IT teams want to build their Data Lakes, centralized repository that store data,
on the cloud, they must deal with overwhelming complexities – from choosing the right cloud provider that addresses their needs
and ensures necessary government regulatory security and compliances are met to continuously managing a cost-effective infrastructure.
HCTI
brings together large-scale datasets, expansive connectivity, robust technology infrastructure, and industry-leading subject matter expertise.
The capabilities of the HCTI platforms enable both the efficient determination of highly meaningful insights and the reliable achievement
of meaningful impact in the quality and economics of healthcare.
DataEz
is a cloud-based data analytics and data science platform purpose-built for the data analytics and data science requirements of large
life sciences/pharmaceutical and healthcare provider organizations. This platform enables our healthcare customers to ingest, securely
analyze, and transform data from disparate sources to gain operational, financial, and clinical insights. DataEz is a fully secured and
compliant platform that meets the regulatory requirements and we offer this as a solution and Software as a Service (SaaS) subscription
model for life sciences and healthcare provider customers.
Combinations
of all proprietary technology toolsets are configured to quickly empower highly differentiated solutions for customer needs in a highly
scalable fashion. The flexibility of the platform’s modular design enables customers to integrate the capabilities of the platform
with their own internal capabilities or other third-party solutions. The platforms bring to the marketplace a highly extensible, national-scale
capability to interconnect with the healthcare ecosystem on a massive scale. This enables healthcare organizations to aggregate and analyze
data in petabyte volumes, arrive at sophisticated insights in real-time, drive meaningful impact, and intuitively visualize data and
information to inform business strategy and execution.
DataEz
platform includes the advanced analytics capability for data scientists and analysts to rapidly spin up secure analytics workbenches.
Analytics workbench enables agile analytics, by providing capabilities of data discovery, model building, model management, model consumption,
visualization, and workflow management in an integrated platform to accelerate the data science life cycle using AI/ML algorithms as
well as data analytics at scale.
DataEz
Platform Architecture
DataEz
platform architecture is composed of various stages of data pipeline management including ingestion, quarantine, pre-curated, data curated,
analytics/data warehouse, visualization/data warehouse and visualization/data science.
DataEz:
Data Lake Management, Analytics & Data Science platform architecture diagram
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Readabl.AI
Despite
significant investments in electronic health records, paper-based unstructured data, such as faxes and clinical reports, remain the prevalent
methods to share information about patients as they navigate the continuum of care. This reality has been particularly obvious during
the COVID 19 pandemic. The NY Times recently highlighted that the fax machine continues to be a primary data communication tool in the
fight against the virus.
Healthcare
organizations demand an advanced automation solution to easily convert paper-based unstructured data into meaningful information for
patient care. Readabl.AI uses state-of-the-art public cloud artificial intelligence and machine learning to recognize and extract healthcare
information from documents, faxes, and narrative reports. Including Readabl.AI in customer organization’s workflow improves patient
care and clinical efficiencies while maintaining security & confidentiality. Readabl.AI ensures that the necessary health information
is available for patient care with reduced labor requirements and faster processing.
Readabl.AI
is offered as a solution on public cloud marketplaces such as Google Cloud marketplace and is commercially available on a Software-as-a-Service
(SaaS) subscription model.
Cloud
IT Services
Cloud
IT is a service offering that we provide that incorporates several of our existing technological platforms. Below are several of the
benefits of our Cloud IT service:
6.
Multi-Cloud Advisory: Our certified public cloud architects and engineers are highly experienced and successful in providing end-to-end
cloud advisory and deployment services. Our expert team of cloud certified professionals develops and deploys complex applications onto
public, private, and hybrid clouds. In addition, we have a proven track record of migrating various IT infrastructures into cloud technologies,
enabling healthcare organizations to attain their business goals. We help our customers analyze and identify suitable cloud options for
their IT enterprise by clearly defining strategies of the cloud and the roadmap for its transformation. Our experts create secure, scalable,
innovative, and robust cloud solutions that address the requirements of healthcare organizations by performing a detailed evaluation
of technical compatibility and business objectives.
7.
DevOps as a Service: Cloud DevOps, often also referred to as DevSecOps given the criticality of security of the cloud, is the
IT methodology through which enterprises migrate and manage their platforms and solutions in a continuous fashion on the cloud. healthcare
enterprise IT leadership can rely on HCTI’s turnkey managed services, strategic advisory services, proven methodology, automation
capabilities, and expertise to steadily migrate their IT assets to the cloud.
8.
Cloud Security Operations Centre (SOC): CloudEz comes with advanced AI/ML-enabled alerts and monitoring services over and across
the enterprise cloud environment. By implementing automated BOTs, our operations centre ensures our clients have a de-risked cloud environment
by ensuring continuous security and regulatory compliance.
9.
Healthcare Cloud Backup and Disaster Recovery (BU/DR): Our cloud disaster recovery solution is a fully managed infrastructure
solution that enables hospitals to host their DR instances on public cloud platforms such as AWS. Our solution specifically serves the
MEDITECH market today. MEDITECH BU/DR solution will soon be available on AWS marketplace for healthcare customers.
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Ransomware
Protection: We are taking a proactive role in educating and equipping rural hospitals,
community hospitals, and large health systems with critical resources for improving their
preparedness, prevention, detection, response, and recovery from ransomware incidents.
Our service offerings include risk assessment, recommendations for most effective tools and
processes, continuous monitoring of systems and backup and recovery plan.
Healthcare
IT Services
Healthcare
IT is a separate service we provide primarily to hospitals and healthcare centres. Our healthcare IT services are utilized by 100+ hospitals
across the US. These services include EHR implementation and optimization, managed services, interoperability, data assessments and tools,
and clinical and training consulting to improve clinical outcomes and the patient experience.
•
EHR Implementation and Optimization: HCTI is among one of the few MEDITECH READY-certified implementation partners for MEDITECH,
a leading EHR system vendor. This READY certification from MEDITECH enables HCTI to provide hospital clients with their EHR implementations.
We have worked with hundreds of MEDITECH customers and successfully implemented and optimized the MEDITECH platform. Additionally, HCTI
is one of 15 partners (out of 200 total firms tracked by Epic Systems, Inc., a leading EHR system vendor) that works with Epic on a regular
basis to discuss synergies and client performances. Our implementation solution set specifically addresses mergers and acquisitions as
well as community technology extensions. We have successfully enabled over 600 community physicians in over 100 locations through our
community technology deployment services.
•
EHR Managed Services: Our end-to-end EHR managed services cover hospital-wide IT support including Tier 2/Tier 3 support, technical
support, report writing, on-demand application support, Community Connect, and acquisition services. HCTI addresses healthcare organizations’
growing frustrations, inefficiencies, and high provider turnover in the healthcare communities through training and support to prevent
loss of additional clinical resources, downturns in patient service volume, and loss of significant revenue. HCTI’s Epic team offers
a monthly support plan that provides comprehensive flexibility. It gives “flex support” for clients, allowing for the division
of necessary work hours across different Epic resources and applications. Since the pandemic started, more hospitals and health systems
are slowly making the transition to cloud platforms to host their EHRs and information systems to offer real-time data insights and more
storage solutions. HCTI sees this as an opportunity to provide EHR-as-a-service capabilities in real-time for hospitals on public cloud
platforms.
•
Interoperability Assessments and Services: HCTI is recognized as one of the top eight partners of the Google Cloud Healthcare
Interoperability Readiness Program. Our services enable health systems to understand their readiness to meet CURES act requirements and
develop and execute a roadmap across technology platforms utilizing HL7’s (Health Level Seven International provides standards
and solutions to empower global health data interoperability) and FHIR (Fast Healthcare Interoperability Resources) standards.
•
Data Assessment and Toolsets: healthcare clients also approach us to build two-way data applications for quick and seamless communication
with patients and to perform predictive analytics based on prior outcomes and readings from monitoring devices. We offer self-cataloguing
data lakes and automated data quality check solutions. These cutting-edge solutions consist of a public cloud-based data lake where the
data from various devices and sensors are ingested and stored through automated provisioning, and a scalable dashboard that is capable
of monitoring hundreds of thousands of patients at a time based on the cloud-stored data.
•
Clinical and Training Consulting: HCTI also provides clinical and operational consultants to healthcare organizations to support
the improvement of their business, clinical, and patient outcomes and experience.
Corporate
Information
Our
principal executive office is located at 7901 Stoneridge Drive, Suite 220, Pleasanton, CA 94588. Our telephone number is (925) 270-4812.
Our website address is https://www.healthcaretriangle.com/
.. The information included on our website or in any social media associated with the Company is not part of this prospectus.
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Implications
of Being an Emerging Growth Company
We
are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).
We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of
the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act; (ii) the last
day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (iii) the date on which we have issued
more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated
filer under applicable SEC rules. We expect that we will remain an emerging growth company for the foreseeable future, but cannot retain
our emerging growth company status indefinitely and will no longer qualify as an emerging growth company on or before the last day of
the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration
statement under the Securities Act. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions
from specified disclosure requirements that are applicable to other public companies that are not emerging growth companies.
These
exemptions include:
• being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial
statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
disclosure;
• not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting;
• not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding
mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the
financial statements;
• reduced disclosure obligations regarding executive compensation; and
• not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute
payments not previously approved.
We
have taken advantage of certain reduced reporting requirements in this prospectus. Accordingly, the information contained herein may
be different than the information you receive from other public companies in which you hold stock.
An
emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for
complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting
standards until those standards would otherwise apply to private companies. We have irrevocably elected to avail ourselves of this extended
transition period and, as a result, we will not be required to adopt new or revised accounting standards on the dates on which adoption
of such standards is required for other public reporting companies.
We
are also a “smaller reporting company” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and have elected to take advantage of certain of the scaled disclosure available for smaller reporting companies.
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| THE
OFFERING |
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| Common
Stock to be Offered by Us: |
|
Shares
of common stock having an aggregate gross sales price of up to $7,200,000. |
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|
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| Number
of Shares of Common Stock Outstanding After This Offering(1) |
|
Up
to 6,826,305 shares, assuming sales of 2,517,483 shares of our common stock in this offering at an offering price of $2.855 per share,
which was the last reported sale price of our common stock on Nasdaq on January 2, 2024. The actual number of shares issued will
vary depending on how many shares we choose to sell and the sales price under this offering. |
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|
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| Use
of Proceeds: |
|
We
intend to use the net proceeds from the sale of our common stock from offerings under this prospectus, if any, for capital expenditures,
repayment and refinancing of debt, research and development expenditures, acquisitions of additional companies or technologies, investments
and general corporate purposes, including working capital unless the applicable prospectus supplement states otherwise. General corporate
purposes may include working capital purposes. We may temporarily invest the net proceeds in investment-grade, interest-bearing securities
until they are used for their stated purpose. We have not determined the amount of net proceeds to be used specifically for such
purposes. As a result, we will retain broad discretion over the allocation of net proceeds. |
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| Risk
factors: |
|
Your
investment in shares of our common stock involves substantial risks. You should consider
the “Risk Factors” included and incorporated by reference in this prospectus,
including the risk factors incorporated by reference from our filings with the SEC. |
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|
|
| Plan
of Distribution: |
|
“At
the market offering” that may be made from time to time for our common stock in the United States through or to the Sales Agent,
acting as sales agent or principal. See the section entitled “Plan of Distribution” below. |
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| Nasdaq
Symbol for our Common Stock: |
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“HCTI”. |
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(1)
The number of shares of our common stock to be outstanding after this offering is based
on 4,308,822 shares of our common stock outstanding as of January 4, 2024, and does not include:
•
warrants to purchase 609,756 shares of common stock at a weighted average exercise price of $10.66 per share, and
•
Options to purchase 328,664 shares of our common stock at a weighted average exercise price of $3.59 per share. |
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RISK
FACTORS
Before
purchasing our common stock you should carefully consider the risk factors relating to our company described below and incorporated by
reference in this prospectus from our Annual Report on Form 10-K for the year ended December 31, 2022, as well as the risks, uncertainties,
and additional information set forth in our reports on Forms 10-K, 10-Q, and 8-K filed with the SEC, and in the other documents incorporated
by reference in this prospectus. For a description of these reports and documents, and information about where you can find them, see
“Where You Can Find More Information” and “Incorporation of Certain Information By Reference.” Additional risks
not presently known or that we presently consider to be immaterial could subsequently materially and adversely affect our financial condition,
results of operations, business, and prospects.
Risks
Relating to this Offering
We
may allocate the net proceeds from this offering in ways that you and other stockholders may not approve.
We
currently intend to use the net proceeds of this offering, if any, for general corporate purposes, which may include working capital,
capital expenditures, repayment and refinancing of debt, research and development expenditures, acquisitions of additional companies
or technologies, and investments. This expected use of the net proceeds from this offering represents our intentions based upon our current
plans and business conditions. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors.
Because of the number and variability of factors that will determine our use of the proceeds from this offering, their ultimate use may
vary substantially from their currently intended use. As a result, we will retain broad discretion over the allocation of the net proceeds
from this offering and could spend the proceeds in ways that do not necessarily improve our operating results or enhance the value of
our common stock. See “Use of Proceeds.”
You
may experience immediate and substantial dilution.
The
offering price per share in this offering may exceed the net tangible book value per share of our common stock outstanding prior to this
offering. Assuming the sale of 2,517,483 shares of our common stock in this offering in the aggregate amount of $7,200,000 at an assumed
offering price of $2.855 per share, which was the last reported sale price of our common stock on Nasdaq on January 2, 2024, and net
tangible book value per share of our common stock of $1.90 as of September 30, 2023, you will suffer immediate and substantial dilution
of $0.955 per share representing the difference between our as-adjusted net tangible book value per share as of September 30, 2023 after
giving effect to this offering and the assumed offering price. To the extent shares are issued under outstanding options or warrants,
you will incur further dilution. See “Dilution” for a more detailed description of the dilution to new investors in
the offering.
The
sale of our common stock in this offering and any future sales of our common stock may depress our stock price and our ability to raise
funds in new stock offerings.
We
may issue common stock from time to time in connection with this offering. This issuance from time to time of these new shares of our
common stock, or our ability to issue these shares of common stock in this offering, could result in resales of our common stock by our
current stockholders concerned about the potential dilution of their holdings. In addition, sales of our common stock in the public market
following this offering could lower the market price of our common stock. Sales may also make it more difficult for us to sell equity
securities or equity-related securities in the future at a time and price that our management deems acceptable, or at all. We cannot
predict the number of these shares that might be resold or the effect that future sales of our shares of common stock would have on the
market price of our shares of common stock.
We
plan to sell shares of our common stock in “at the market offerings” and investors who buy shares of our common stock at
different times will likely pay different prices.
Investors
who purchase shares of our common stock in this offering at different times will likely pay different prices and may experience different
outcomes in their investment results. We will have discretion, subject to the effect of market conditions, to vary the timing, prices,
and numbers of shares sold in this offering. Investors may experience a decline in the value of their shares of our common stock. The
trading price of our common stock has been volatile and subject to wide fluctuations. Many factors could have an impact on the market
price of our common stock, including the factors described above and in the accompanying prospectus and those incorporated by reference
herein and therein.
We
cannot predict the actual number of shares of our common stock that we will sell under the ATM Sales Agreement, or the gross proceeds
resulting from those sales.
Subject
to certain limitations in the ATM Sales Agreement and compliance with applicable law, we have the discretion to deliver a placement notice
to the Sales Agent at any time throughout the term of the ATM Sales Agreement. The number of shares, if any, of our common stock that
are sold through the Sales Agent will fluctuate based on a number of factors, including the market price of our common stock during the
sales period, the limits we set with the Sales Agent in any applicable placement notice, and the demand for our common stock during the
sales period. Because the price per share of each share sold, if any, will fluctuate during the sales period, it is not possible to predict
the number of shares that will be sold or the gross proceeds we will raise in connection with those sales.
Sales
of a significant number of shares of our common stock in the public markets, or the perception that such sales could occur, could depress
the market price of our common stock.
Sales
of a significant number of shares of our common stock in the public markets, or the perception that such sales could occur as a result
of our utilization of our shelf registration statement, our ATM Sales Agreement with the Sales Agent or otherwise could depress the market
price of our common stock and impair our ability to raise capital through the sale of additional equity securities. We cannot predict
the effect that future sales of our common stock or the market perception that we are permitted to sell a significant number of our securities
would have on the market price of our common stock.
USE
OF PROCEEDS
We
intend to use the net proceeds from the sale of our common stock from offerings under this prospectus, if any, for capital expenditures,
repayment and refinancing of debt, research and development expenditures, acquisitions of additional companies or technologies, investments
and general corporate purposes, including working capital unless the applicable prospectus supplement states otherwise. General corporate
purposes may include working capital purposes.
We
may temporarily invest the net proceeds in investment-grade, interest-bearing securities until they are used for their stated purpose.
We have not determined the amount of net proceeds to be used specifically for such purposes. As a result, we will retain broad discretion
over the allocation of net proceeds. We would not receive proceeds from sales by our security holders.
DILUTION
If
you invest in our common stock, your ownership interest will be diluted to the extent of the difference between the public offering price
per share and the as-adjusted net tangible book value per share after this offering. We calculate net tangible book value per share by
dividing the net tangible book value, which is tangible assets less total liabilities, by the number of outstanding shares of our common
stock. Dilution with respect to net tangible book value per share represents the difference between the amount per share paid by purchasers
of shares of common stock in this offering and the net tangible book value per share of our common stock immediately after this offering.
The net tangible book value of our common stock as of September 30, 2023, was approximately $6,127,000 or $1.42 per share of common stock.
After
giving effect to the sale of 2,517,483 shares of our common stock pursuant to this prospectus in the aggregate amount of $7,200,000 at
an assumed price of $2.855 per share, which was the last reported sale price of our common stock on Nasdaq on January 2, 2024, and after
deducting commissions and estimated offering expenses payable by us (estimated at $366,000), our as-adjusted net tangible book value
as of September 30, 2023 would have been approximately $12,961,000 or approximately $1.90 per share. This represents an immediate increase
in net tangible book value of approximately $0.48 per share of common stock to our existing stockholders and an immediate dilution in
as-adjusted net tangible book value of approximately $ 0.955 per share to purchasers of our common stock in this offering, as illustrated
by the following table:
| Assumed
offering price per share of common stock |
|
|
|
|
|
$ |
2.855 |
|
| Net
tangible book value per share as of September 30, 2023 |
|
$ |
1.42 |
|
|
|
|
|
| Increase
in net tangible book value per share attributable to this offering |
|
|
0.48 |
|
|
|
|
|
| As-adjusted
net tangible book value per share after giving effect to this offering |
|
|
|
|
|
|
1.90 |
|
| Dilution
per share to new investors participating in this offering |
|
|
|
|
|
$ |
0.955 |
|
The
table above assumes, for illustrative purposes, that an aggregate of 2,521,891 shares of our common stock are sold at an offering price
of $2.855 per share, the last reported sale price of our common stock on the Nasdaq Capital Market on January 2, 2024, for aggregate
gross proceeds of $7,200,000. However, the shares sold in this offering, if any, will be sold from time to time at various prices.
The
above discussion and table are based on approximately 4,308,822 shares of our common stock outstanding as of January 2, 2024 and does
not include:
| • | | warrants
to purchase 609,756 shares of common stock at a weighted average exercise price of $10.66
per share, and |
| • | | Options
to purchase 328,664 shares of our common stock at a weighted average exercise price of $3.59
per share. |
To
the extent that any of our outstanding options or warrants are exercised, we grant additional options or other awards under our stock
incentive plan or issue additional warrants, or we issue additional shares of common stock in the future, there may be further dilution.
PLAN
OF DISTRIBUTION
We
have entered into an ATM Sales Agreement with Dawson James Securities, Inc. (“Dawson James”), under which we may issue and
sell shares of our common stock having an aggregate gross sales price of up to $7,200,000
from
time to time through Dawson James acting as a sales agent or principal. Sales of our common stock, if any, under this prospectus may
be made by any method that is deemed to be an “at the market offerings” as defined in Rule 415 promulgated under the
Securities Act.
Each
time we wish to issue and sell common stock, we will notify Dawson James of the number of shares to be issued, the dates on which such
sales are anticipated to be made, any minimum price below which sales may not be made and other sales parameters as we deem appropriate.
Once we have so instructed Dawson James, unless Dawson James declines to accept the terms of the notice, Dawson James has agreed, subject
to the terms and conditions of the ATM Sales Agreement, to use its commercially reasonable efforts consistent with its normal trading
and sales practices to sell such shares up to the amount specified on such terms. We may instruct Dawson James not to sell shares of
common stock if the sales cannot be effected at or above the price designated by us in any such instruction. We or Dawson James may suspend
the offering of shares of common stock being made through Dawson James under the ATM Sales Agreement upon proper notice to the other
party.
We
will pay Dawson James commissions for its services in acting as agent in the sale of our common stock. Dawson James will be entitled
to compensation at a commission rate equal to 3% of the aggregate gross sales price of the shares sold. Because there is no minimum offering
amount required as a condition to close this offering, the actual total public offering amount, commissions and proceeds to us, if any,
are not determinable at this time. We have also agreed to reimburse Dawson James for certain specified expenses, including the fees and
disbursements of its legal counsel in an amount not to exceed $50,000 in connection with the filing of the ATM Sales Agreement and up
to $10,000 per year in connection with ongoing diligence arising from the transactions contemplated by the ATM Sales Agreement. We estimate
that the total expenses for the offering, excluding compensation and reimbursements payable to Dawson James under the terms of the ATM
Sales Agreement, will be approximately $150,000.
Settlement
for sales of common stock will occur on the third business day following the date on which any sales are made, or on some other date
that is agreed upon by us and Dawson James in connection with a particular transaction, in return for payment of the net proceeds to
us. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.
In
connection with the sale of the common stock on our behalf, Dawson James may be deemed to be an “underwriter” within the
meaning of the Securities Act and the compensation of Dawson James may be deemed to be underwriting commissions or discounts. We have
agreed to provide indemnification and contribution to Dawson James against certain civil liabilities, including liabilities under the
Securities Act.
The offering
of our common stock pursuant to the ATM Sales Agreement will terminate upon the termination of such ATM Sales Agreement as permitted
therein.
Our
common stock is listed on the Exchange and trades under the symbol “HCTI.” The transfer agent of our common stock is VStock
Transfer LLC.
Dawson
James and/or its affiliates have in the past and may in the future provide various investment banking and other financial services for
us for which services they may in the future receive customary fees.
LEGAL
MATTERS
The
validity of the securities that may be offered hereby will be passed upon for us by Sichenzia Ross Ference Carmel LLP, New York, New
York. Dawson James is being represented in connection with this offering by ArentFox Schiff LLP, Washington, D.C.
EXPERTS
The
consolidated financial statements of Healthcare Triangle, Inc. as of and for the years ended December 31, 2022 and December 31, 2021
have been incorporated by reference herein and in the registration statement in reliance upon the reports of BF Borgers CPA PC, an independent
registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
WHERE
YOU CAN FIND MORE INFORMATION
We
are subject to the informational requirements of the Exchange Act and in accordance therewith file annual, quarterly and current reports,
proxy statements and other information with the Securities and Exchange Commission. The Securities and Exchange Commission maintains
a website that contains reports, proxy and information statements and other information regarding registrants that file electronically
with the Securities and Exchange Commission. The address of the Securities and Exchange Commission’s website is www.sec.gov.
We
make available free of charge on or through our website at www.healthcaretriangle.com, our Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Exchange Act as soon as reasonably practicable after we electronically file such material with or otherwise furnish it to the Securities
and Exchange Commission.
We
have not incorporated by reference into this prospectus the information on our website, and you should not consider it to be a part of
this prospectus.
INCORPORATION
OF CERTAIN INFORMATION BY REFERENCE
The
SEC allows us to “incorporate by reference” in this prospectus the information we file with the SEC. This helps us disclose
certain important information to you by referring you to the documents we file. The information we incorporate by reference is an important
part of this prospectus. Because we are incorporating by reference future filings with the SEC, this prospectus is continually updated
and those future filings may modify or supersede some of the information included or incorporated in this prospectus. This means that
you must look at all of the SEC filings that we incorporate by reference to determine if any of the statements in this prospectus or
in any document previously incorporated by reference have been modified or superseded. We incorporate by reference each of the documents
listed below:
| • | | Our
Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities
and Exchange Commission on March
28, 2023 as amended by Amendment No. 1 filed with the Securities and Exchange Commission
on January
4, 2024; |
| • | | Our
Definitive Proxy Statement filed with the Securities and Exchange Commission on November 9, 2023 and the Revised Definitive Proxy Statement filed with the Securities and Exchange
Commission on November 16, 2023; |
| • | | Our
Quarterly Reports on Form 10-Q for the three months ended March 31, 2023, the six months
ended June 30, 2023, and the nine months ended September 30, 2023 (our “Quarterly Reports”),
filed with the Securities and Exchange Commission on May
9, 2023 , August
10, 2023 and November
13, 2023; |
| • | | The
description of our common stock contained in our Registration Statement on Form 8-A filed
with the Securities and Exchange Commission on October
12, 2021, and any subsequent amendment thereto filed for the purpose of updating such
description. |
| • | | Our
Current Reports on Form 8-K, filed with the Securities and Exchange Commission on January
27, 2023, April
6, 2023, May
4, 2023, May
30, 2023, June
5, 2023, June
29, 2023, July
14, 2023, September
5, 2023, November
29, 2023 and January
2, 2024 |
All
filings filed by us pursuant to the Exchange Act after the date of the initial filing of this registration statement and prior to the
effectiveness of such registration statement (excluding information furnished pursuant to Items 2.02 and 7.01 of Form 8-K) shall also
be deemed to be incorporated by reference into the prospectus.
Certain
statements in and portions of this prospectus update and replace information in the above listed documents incorporated by reference.
Likewise, statements in or portions of a future document incorporated by reference in this prospectus may update and replace statements
in and portions of this prospectus or the above listed documents.
We
will provide you without charge, upon your written or oral request, a copy of any of the documents incorporated by reference in this
prospectus, other than exhibits to such documents which are not specifically incorporated by reference into such documents. Please direct
your written or telephone requests to:
Healthcare
Triangle, Inc.
Attn:
Investor Relations
7901
Stoneridge Drive, Suite 220
Pleasanton,
CA 94588
(925)
270-4812
HEALTHCARE
TRIANGLE, INC.
$7,200,000
Common
Stock
______________________
PROSPECTUS
______________________
Dawson
James Securities, Inc.
January
4, 2024
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Item
14. Other Expenses of Issuance and Distribution
The
following table sets forth the various expenses in connection with the registration of the securities offered hereby. We will bear all
of these expenses. All amounts are estimated except for the SEC registration fee:
| | |
Amount |
| SEC
registration fee | |
$ | 7,380 | |
| FINRA filing fee | |
| 8,000 | |
| Accounting fees and expenses | |
| 75,000 | |
| Legal fees and expenses | |
| 50,000 | |
| Printing and related fees
and expenses | |
| 5,000 | |
| Miscellaneous
fees and expenses | |
| 4,500 | |
| Total | |
$ | 150,000 | |
Item
15. Indemnification of Directors and Officers
Section
102 of the General Company Law of the State of Delaware (“DGCL”) permits a Company to eliminate the personal liability of
directors of a Company to the Company or its stockholders for monetary damages for a breach of fiduciary duty as a director, except where
the director breached his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law,
authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal
benefit. Our amended and restated certificate of incorporation provides that no director of the Company shall be personally liable to
it or its stockholders for monetary damages for any breach of fiduciary duty as a director, notwithstanding any provision of law imposing
such liability, except to the extent that the DGCL prohibits the elimination or limitation of liability of directors for breaches of
fiduciary duty.
Section
145 of the DGCL provides that a Company has the power to indemnify a director, officer, employee, or agent of the Company, or a person
serving at the request of the Company for another Company, partnership, joint venture, trust or other enterprise in related capacities
against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened to be made a party to any
threatened, ending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the Company, and, in any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful, except that, in the case of actions brought by or in the right of the Company,
no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable
to the Company unless and only to the extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication
of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such
expenses which the Court of Chancery or such other court shall deem proper.
Our
amended and restated certificate of incorporation provides that we will indemnify to the fullest extent permitted from time to time by
the DGCL or any other applicable laws as presently or hereafter in effect, any person who was or is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
including, without limitation, an action by or in the right of the Company, by reason of his acting as a director or officer of the Company
or any of its subsidiaries (and the Company, in the discretion of the Board of Directors, may so indemnify a person by reason of the
fact that he is or was an employee or agent of the Company or any of its subsidiaries or is or was serving at the request of the Company
in any other capacity for or on behalf of the Company) against any liability or expense actually and reasonably incurred by such person
in respect thereof; provided, however, the Company shall be required to indemnify an officer or director in connection with an action,
suit or proceeding (or part thereof) initiated by such person only if (i) such action, suit or proceeding (or part thereof) was authorized
by the Board of Directors and (ii) the indemnification does not relate to any liability arising under Section 16(b) of the Exchange Act,
as amended, or any rules or regulations promulgated thereunder. Such indemnification is not exclusive of any other right to indemnification
provided by law or otherwise.
If
a claim is not paid in full by the Company, the claimant may at any time thereafter bring suit against the Company to recover the unpaid
amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting
such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending
any proceeding in advance of its final disposition where any undertaking required by the By-laws of the Company has been tendered to
the Company) that the claimant has not met the standards of conduct which make it permissible under the DGCL for the Company to indemnify
the claimant for the amount claimed, but the burden of proving such defense shall be on the Company. Neither the failure of the Company
(including its Board of Directors, legal counsel, or its stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct
set forth in the DGCL, nor an actual determination by the Company (including its Board of Directors, legal counsel, or its stockholders)
that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the
claimant has not met the applicable standard of conduct. Indemnification shall include payment by the Company of expenses in defending
an action or proceeding in advance of the final disposition of such action or proceeding upon receipt of an undertaking by the person
indemnified to repay such payment if it is ultimately determined that such person is not entitled to indemnification.
Item
16. Exhibits.
(a) Exhibits.
| Exhibit
No. |
|
Description |
| 1.1* |
|
Form
of Underwriting Agreement or Purchase Agreement |
| 1.2 |
|
ATM Sales Agreement, dated January 4, 2024 between the Registrant and Dawson James Securities, Inc. |
| 3.1 |
|
Certificate of Incorporation of the Company(1) |
| 3.2 |
|
Bylaws of the Company(1) |
| 3.3 |
|
Amendment to Certificate of Incorporation of the Company(1) |
| 3.4 |
|
Series A Super Voting Preferred Stock Certificate of Designation(1) |
| 3.5 |
|
Series A Super Voting Preferred Stock Amended and Restated Certificate of Designations(1) |
| 4.1 |
|
Form
of Representative’s Warrant(1) |
| 4.2* |
|
Form
of Senior Indenture |
| 4.3* |
|
Form
of Subordinated Indenture |
| 4.4* |
|
Form
of Certificate of Designation |
| 4.5* |
|
Form
of Deposit Agreement |
| 4.6* |
|
Form
of Depositary Agreement |
| 4.7* |
|
Form
of Warrant Agreement |
| 4.8* |
|
Form
of Warrant |
| 4.9* |
|
Form
of Rights Agreement |
| 4.10* |
|
Form
of Unit Agreement |
| 5.1 |
|
Opinion of Sichenzia Ross Ference Carmel LLP relating to the base prospectus |
| 5.2 |
|
Opinion of Sichenzia Ross Ference Carmel LLP relating to the ATM prospectus |
| 10.1 |
|
Asset Transfer Agreement, dated January 1, 2020 between the Company and SecureKloud Technologies, Inc(1) |
| 10.2 |
|
Equity Purchase Agreement, dated May 8, 2020 between the Company and SecureKloud Technologies, Inc. (1) |
| 10.3 |
|
Form of Common Stock Securities Purchase Agreement(1) |
| 10.4 |
|
Form of 10% Convertible Promissory Note issued pursuant to the Securities Purchase Agreement(1) |
| 10.5 |
|
Form of Common Stock Purchase Warrant issued pursuant to the Securities Purchase Agreement(1) |
| 10.6 |
|
The Company’s 2020 Stock Incentive Plan(1) |
| 10.7 |
|
Form of Grant(1) |
| 10.8 |
|
Master Services Agreement dated January 1, 2020 between the Company and SecureKloud Technologies, Inc.(1) |
| 10.9 |
|
Shared Services Agreement dated January 1, 2020 between the Company and SecureKloud Technologies, Inc.(1) |
| 10.10 |
|
Rental Sublease Agreement dated January 4, 2020 between SecureKloud Technologies, Inc. and the Company(1) |
| 10.11 |
|
IT Master Services Agreement effective as of May 1, 2017 between F. Hoffmann-La Roche Ltd and the Company(1) |
| 10.12 |
|
Form of Statement of Work under Master Services Agreement between F. Hoffmann-La Roche Ltd and the Company(1) |
| 10.13 |
|
Form of Common Stock Purchase Warrant to be issued to the Placement Agent for the Note and Warrant Private Offering(1) |
| 10.14 |
|
Share Purchase Agreement, dated December 10, 2021, among Healthcare Triangle, Inc., Devcool, Inc., Go To Assistance Inc., and Mr. Sandeep Deokule(2) |
| 10.15 |
|
Convertible Promissory Note, dated December 10, 2021 made to Go To Assistance Inc(3) |
| 10.16 |
|
Consulting Agreement dated December 10, 2021 between the Company and Sandeep Deokule(3) |
| 21.1 |
|
List of Subsidiaries of the Company(1) |
| 23.1 |
|
Consent of BF Borgers CPA PC |
| 23.2 |
|
Consent of Sichenzia Ross Ference Carmel LLP (included in Exhibit 5.1) |
| 24.1 |
|
Power
of Attorney (included on the signature page of this prospectus) |
| 25.1* |
|
Form
T-1 Statement of Eligibility to act as trustee under the Indenture |
| 107 |
|
Exhibit Filing Fees |
__________
* To be
filed, if necessary, by post-effective amendment to this registration statement or as an exhibit to a current report of the registrant
on Form 8-K and incorporated herein by reference.
(1) Incorporated
by reference to the Company’s Registration Statement on Form S-1 (No. 333-259180), filed with the SEC on October 8, 2020.
(2) Incorporated
by reference to the Company’s Current Report on Form 8-K filed on December 14, 2021.
(3) Incorporated
by reference to the Company’s Annual Report on Form 10-K filed on March 8, 2022.
(b)
Financial Statement Schedules.
All
financial statement schedules are omitted because the information called for is not required or is shown either in the financial statements
or in the notes thereto.
Item
17. Undertakings
The
undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933, as amended (the “Securities Act”);
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation
of Registration Fee” table in the effective registration statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
Provided,
however, that:
Paragraphs
(1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs
is contained in reports filed with or furnished to the Securities and Exchange Commission by the registrant pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained
in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4)
The undersigned registrant hereby undertakes that:
(i)
For purposes of determining any liability under the Securities Act of 1933, as amended, the information omitted from a form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of 1933, as amended, shall be deemed to be part of this registration
statement as of the time it was declared effective.
(ii)
For the purpose of determining any liability under the Securities Act of 1933, as amended, each post-effective amendment that contains
a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(5)
That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report
pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(6)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of
the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is,
therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant
of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and
will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on January 4, 2024
| |
Healthcare
Triangle, Inc. |
| |
By: |
/s/
Dave Rosa |
| |
|
Dave
Rosa |
| |
|
Chairman
of the Board and Director |
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.
| SIGNATURE |
TITLE |
DATE |
| |
|
|
| /s/
Dave Rosa |
|
Chairman
of the Board and Director |
January
4, 2024 |
| Dave
Rosa |
|
|
| |
|
|
| /s/
Thyagarajan Ramachandran |
|
Chief
Financial Officer (principal financial and accounting officer) |
January
4, 2024 |
| Thyagarajan
Ramachandran |
|
|
| |
|
|
| /s/
Lakshmanan Kannappan |
|
Business
Head (principal executive officer) |
January
4, 2024 |
| Lakshmanan
Kannappan |
|
|
| |
|
|
| /s/
Shibu Kizhakevilayil |
|
Director |
January
4, 2024 |
| Shibu
Kizhakevilayil |
|
|
| |
|
|
| /s/
Ronald McClurg |
Director |
January
4, 2024 |
| Ronald
McClurg |
|
|
| |
|
|
| |
|
|
| /s/
Jainal Bhuiyan |
Director |
January
4, 2024 |
| Jainal
Bhuiyan |
|
|
| |
|
|
1
https://www.absolutemarketsinsights.com/reports/healthcare-Cloud-Computing-Market--2019-2027-234
2
https://www.bloomberg.com/press-releases/2020-04-16/healthcare-analytics-market-size-to-reach-usd-40-781- billion-by-2025-cagr-of-23-55-valuates-reports
3
https://www.alliedmarketresearch.com/press-release/us-healthcare-it-market.html
4
https://www.marketdataforecast.com/market-reports/medical-documents-management-market
5
https://www.absolutemarketsinsights.com/reports/healthcare-Cloud-Computing-Market--2019-2027-234
6
https://www.bloomberg.com/press-releases/2020-04-16/healthcare-analytics-market-size-to-reach-usd-40-781- billion-by-2025-cagr-of-23-55-valuates-reports
7
https://www.alliedmarketresearch.com/press-release/us-healthcare-it-market.html
8
https://www.marketdataforecast.com/market-reports/medical-documents-management-market
HEALTHCARE
TRIANGLE, INC.
COMMON
STOCK
ATM
SALES AGREEMENT
January 4, 2024
Dawson James Securities, Inc.
101 North Federal Highway
Suite 600
Boca Raton, Fl 33432
Ladies and Gentlemen:
Healthcare Triangle, Inc.,
a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”)
with Dawson James Securities, Inc., as follows:
1. Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement as set forth below, on the terms
and subject to the conditions set forth herein, it may issue and sell to or through Dawson James Securities, Inc., acting as agent and/or
principal (the “Sales Agent”), shares of the Company’s common stock, par value $0.00001 per share (the
“Common Stock”), subject to the limitations set forth in Section 3(b) hereof. The issuance and sale of
the Common Stock to or through the Sales Agent will be effected pursuant to the Registration Statement (as defined below) filed by the
Company and which was declared effective under the Securities Act (as defined below) by the U.S. Securities and Exchange Commission (the
“Commission”).
The term of this Agreement
shall commence on the date on which the Registration Statement (as defined below) is declared effective by the Commission and shall end
upon the termination or expiration of this Agreement in accordance with Section 11.
On the date of this Agreement,
the Company has filed, or will file, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations
thereunder (collectively, the “Securities Act”), with the Commission, a shelf registration statement on Form
S-3, including a base prospectus (the “Base Prospectus”), relating to certain securities, including the Common
Stock, to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will
file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively,
the “Exchange Act”). The Company has prepared a prospectus specifically relating to the offering of Common Stock
pursuant to this Agreement included as part of such registration statement (the “ATM Prospectus” and, together
with the Base Prospectus, collectively, the “Initial Prospectus”). As soon as practicable following the date
that such registration statement is declared effective, the Company will furnish to the Sales Agent, for use by the Sales Agent, copies
of the ATM Prospectus included as part of such registration statement, relating to the Placement Shares (as defined below). Except where
the context otherwise requires, such registration statement, as amended when it becomes effective, including all documents filed as part
thereof or incorporated by reference therein, and including any information contained in any prospectus subsequently filed with the Commission
pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B or 462(b)
of the Securities Act, is herein called the “Registration Statement.” The Initial Prospectus, including all
documents incorporated therein by reference (to the extent such information has not been superseded or modified in accordance with Rule
412 under the Securities Act (as qualified by Rule 430B(g) of the Securities Act), as may be supplemented from time to time by any additional
prospectus supplement, in the form in which such Base Prospectus and/or ATM Prospectus have most recently been filed by the Company with
the Commission pursuant to Rule 424(b) under the Securities Act, together with any “issuer free writing prospectus” (“Issuer
Free Writing Prospectus”), as defined in Rule 433 of the Securities Act (“Rule 433”), relating
to the Placement Shares that (i) is required to be filed with the Commission by the Company or (ii) is exempt from filing pursuant to
Rule 433(d)(5)(i), in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the
form retained in the Company’s records pursuant to Rule 433(g), is herein called the “Prospectus.” Any
reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to and
include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing
after the execution hereof of any document with the Commission deemed to be incorporated by reference therein. For purposes of this Agreement,
all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include any
copy filed with the Commission pursuant to either the Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive
Data Electronic Applications (collectively “EDGAR”).
2. Placements.
Each time that the Company wishes to issue and sell the Common Stock through the Sales Agent, as agent, hereunder (each, a “Placement”),
it will notify the Sales Agent by email notice (or other method mutually agreed to in writing by the parties) (a “Placement
Notice”) containing the parameters in accordance with which it desires the Common Stock to be sold, which shall at a minimum
include the number of shares of Common Stock to be issued (the “Placement Shares”), the time period during which
sales are requested to be made, any limitation on the number of shares of Common Stock that may be sold in any one Trading Day (as defined
in Section 3) and any minimum price below which sales may not be made, a form of which containing such minimum sales parameters
necessary is attached hereto as Schedule 1. The Placement Notice shall originate from any of the individuals from the Company
set forth on Schedule 2 (with a copy to each of the other individuals from the Company listed on such schedule), and shall
be addressed to each of the individuals from the Sales Agent set forth on Schedule 2, as such Schedule 2 may
be amended from time to time. The Placement Notice shall be effective upon receipt by the Sales Agent unless and until (i) in accordance
with the notice requirements set forth in Section 4, the Sales Agent declines to accept the terms contained therein for any reason,
in its sole discretion, (ii) the entire amount of the Placement Shares have been sold, (iii) in accordance with the notice requirements
set forth in Section 4, the Company suspends or terminates the Placement Notice, (iv) the Company issues a subsequent Placement
Notice with parameters superseding those on the earlier dated Placement Notice, or (v) the Agreement has been terminated under the provisions
of Section 11. The amount of any discount, commission or other compensation to be paid by the Company to the Sales Agent in connection
with the sale of the Placement Shares through the Sales Agent, as agent, shall be as set forth in Schedule 3. It is expressly
acknowledged and agreed that neither the Company nor the Sales Agent will have any obligation whatsoever with respect to a Placement or
any Placement Shares unless and until the Company delivers a Placement Notice to the Sales Agent and the Sales Agent does not decline
such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of
a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.
3. Sale
of Placement Shares by the Sales Agent.
(a) Subject to the terms and
conditions herein set forth, upon the Company’s issuance of a Placement Notice, and unless the sale of the Placement Shares described
therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Sales Agent, as agent
for the Company, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state
and federal laws, rules and regulations and the rules of The Nasdaq Capital Market (the “Exchange”), for the
period specified in the Placement Notice, to sell such Placement Shares up to the amount specified by the Company in, and otherwise in
accordance with the terms of such Placement Notice. If acting as agent hereunder, the Sales Agent will provide written confirmation to
the Company (including by email correspondence to each of the individuals of the Company set forth on Schedule 2, if receipt
of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) no later
than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares
hereunder setting forth the number of Placement Shares sold on such day, the volume-weighted average price of the Placement Shares, the
compensation payable by the Company to the Sales Agent pursuant to Section 2 with respect to such sales, and the Net Proceeds (as
defined below) payable to the Company, with an itemization of the deductions made by the Sales Agent (as set forth in Section 5(a))
from the gross proceeds that it receives from such sales. Subject to the terms of the Placement Notice, the Sales Agent may sell Placement
Shares by any method permitted by law deemed to be an “at the market” offering as defined in Rule 415 under the Securities
Act, including without limitation sales made directly on the Exchange, on any other existing trading market for the Common Stock or to
or through a market maker. Subject to the terms of a Placement Notice, the Sales Agent may also sell Placement Shares by any other method
permitted by law, including but not limited to in negotiated transactions with the Company’s prior written consent. The Company
acknowledges and agrees that (i) there can be no assurance that the Sales Agent will be successful in selling Placement Shares, (ii) the
Sales Agent will incur no liability or obligation to the Company or any other person or entity if it does not sell Placement Shares for
any reason other than a failure by the Sales Agent to use its commercially reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Placement Shares as required under this Agreement and (iii) the Sales Agent
shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement, except as otherwise agreed
by the Sales Agent and the Company in writing and expressly set forth in a Placement Notice. For the purposes hereof, “Trading
Day” means any day on which shares of the Company’s Common Stock are purchased and sold on the principal market on
which the shares of Common Stock are listed or quoted.
(b) Under no circumstances shall
the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares, the
aggregate number or gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the lesser of: (i) the number
or dollar amount of Common Stock registered pursuant to the Registration Statement pursuant to which the offering hereunder is being made,
(ii) the number of authorized but unissued and unreserved Common Stock, (iii) the number or dollar amount of shares of Common Stock permitted
to be offered and sold by the Company under Form S-3 (including General Instruction I.B.6. of Form S-3, if and for so long as applicable),
(iv) the number or dollar amount of shares of Common Stock authorized from time to time to be issued and sold under this Agreement by
the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to
the Sales Agent in writing, or (v) the number or dollar amount of shares of Common Stock for which the Company has filed the ATM Prospectus
or other prospectus supplement specifically relating to the offering of the Placement Shares pursuant to this Agreement. Under no circumstances
shall the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum
price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized
executive committee, and notified to the Sales Agent in writing. Notwithstanding anything to the contrary contained herein, the parties
hereto acknowledge and agree that compliance with the limitations set forth in this Section 3(b) on the number or dollar amount
of Placement Shares that may be issued and sold under this Agreement from time to time shall be the sole responsibility of the Company,
and that the Sales Agent shall have no obligation in connection with such compliance.
(c) During the term of this
Agreement, neither the Sales Agent nor any of its affiliates or subsidiaries shall engage in (i) any short sale of any security of the
Company or (ii) any sale of any security of the Company that the Sales Agent does not own or any sale which is consummated by the delivery
of a security of the Company borrowed by, or for the account of, the Sales Agent. During the term of this Agreement and notwithstanding
anything to the contrary herein, the Sales Agent agrees that in no event will the Sales Agent or its affiliates engage in any market making,
bidding, stabilization or other trading activity with regard to the Common Stock or related derivative securities if such activity would
be prohibited under Regulation M or other anti-manipulation rules under the Exchange Act.
4. Suspension
of Sales.
(a) The Company or the Sales
Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party
set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the
notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence
to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares for a period
of time (a “Suspension Period”); provided, however, that such suspension shall not affect or impair
either party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt and acknowledgement of such
notice. Each of the parties agrees that no such notice under this Section 4 shall be effective against the other unless it is made
to one of the individuals named on Schedule 2 hereto, as such schedule may be amended from time to time. During a Suspension
Period, the Company shall not issue any Placement Notices and the Sales Agent shall not sell any Placement Shares hereunder. The party
that issued a suspension notice shall notify the other party in writing of the Trading Day on which the Suspension Period shall expire
not later than twenty-four (24) hours prior to such Trading Day.
(b) Notwithstanding any other
provision of this Agreement, during any period in which the Company is in possession of material non-public information, the Company and
the Sales Agent agree that (i) no sale of Placement Shares will take place, (ii) the Company shall not request the sale of any Placement
Shares, and (iii) the Sales Agent shall not be obligated to sell or offer to sell any Placement Shares.
5. Settlement.
(a) Settlement of Placement
Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the
second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the respective Point
of Sale (as defined below) (each, a “Settlement Date”). The amount of proceeds to be delivered to the Company
on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the
aggregate sales price received by the Sales Agent at which such Placement Shares were sold, after deduction for (i) the Sales Agent’s
discount, commission or other compensation for such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts
due and payable by the Company to the Sales Agent hereunder pursuant to Section 7(g) (Expenses) hereof and (iii) any transaction fees,
trading expenses or execution fees imposed by any clearing organization or any governmental or self-regulatory organization and any other
fees incurred by the Sales Agent in respect of such sales.
(b) Delivery of Placement
Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement
Shares being sold by crediting the Sales Agent’s or its designee’s account (provided the Sales Agent shall have given the
Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal
at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be
freely tradable, transferable, registered shares in good deliverable form. On each Settlement Date, the Sales Agent will deliver the related
Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date. The Company agrees that if
the Company, or its transfer agent (if applicable), defaults in its obligation to deliver duly authorized Placement Shares on a Settlement
Date, the Company agrees that, in addition to and in no way limiting the rights and obligations set forth in Section 9(a) (Indemnification
and Contribution) hereto, the Company will (i) hold the Sales Agent, its directors, officers, members, partners, employees and agents
of the Sales Agent, each broker dealer affiliate of the Sales Agent, and each person, if any, who (A) controls the Sales Agent within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (B) is controlled by or is under common control with
the Sales Agent (each, a “Sales Agent Affiliate”), and the Sales Agent’s clearing organization, harmless
against any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred, arising out of or in connection
with such default by the Company or its transfer agent (if applicable) and (ii) pay to the Sales Agent any commission, discount, or other
compensation to which it would otherwise have been entitled absent such default.
6. Representations
and Warranties of the Company. The Company, on behalf of itself and its subsidiaries, represents and warrants to, and agrees with,
the Sales Agent that as of each Applicable Time (as defined in Section 22(a)):
(a) Compliance with Registration
Requirements. As of each Applicable Time other than the date of this Agreement, the Registration Statement and any Rule 462(b) Registration
Statement have been declared effective by the Commission under the Securities Act. As of each Applicable Time other than the date of this
Agreement, the Company has not received from the Commission any notice pursuant to Rule 401(g)(1) under the Securities Act objecting to
the use of the shelf registration statement form. At the time of the initial filing of the Registration Statement, the Company paid (or
will pay) the required Commission filing fees relating to the Placement Shares in accordance with Rules 456(a) and 457(o) under the Securities
Act. The Company has complied to the Commission’s satisfaction with all requests of the Commission for additional or supplemental
information related to the Registration Statement and the Prospectus. No stop order suspending the effectiveness of the Registration Statement
or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to
the best knowledge of the Company, are contemplated or threatened by the Commission. At the time of (i) the initial filing of the Registration
Statement with the Commission and (ii) the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Securities
Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the Exchange
Act or form of prospectus), the Company met the then applicable requirements for use of Form S-3 under the Securities Act, including compliance
with General Instructions I.A and I.B.6. of Form S-3, if and for so long as applicable. The Registration Statement and the offer and sale
of the Placement Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply in all material respects
with said Rule. In the section entitled “Plan of Distribution” in the ATM Prospectus, the Company has named Dawson James Securities,
Inc. as an agent that the Company has engaged in connection with the transactions contemplated by this Agreement. The Company was not
and is not an “ineligible issuer” as defined in Rule 405 under the Securities Act.
(b) No Misstatement or Omission. The
Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective, complied or will comply
in all material respects with the Securities Act. The Prospectus, and any amendment or supplement thereto, on the date of such Prospectus
or amendment or supplement, complied or will comply in all material respects with the Securities Act. The Registration Statement and
any post-effective amendment thereto, at the time it became or becomes effective, did not and will not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.
The Prospectus, as amended or supplemented, as of its date, did not and, as of each Point of Sale and each Settlement Date, will not
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the two immediately
preceding sentences do not apply to statements in or omissions from the Registration Statement or any post-effective amendment thereto,
or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in conformity with information relating to the
Sales Agent furnished to the Company in writing by the Sales Agent expressly for use therein. “Point of Sale”
means, for a Placement, the time at which an acquiror of Placement Shares entered into a contract, binding upon such acquiror, to acquire
such Placement Shares.
(c) Offering Materials Furnished
to the Sales Agent. Copies of the Registration Statement, the Prospectus, and all amendments or supplements thereto and all documents
incorporated by reference therein that were filed with the Commission on or prior to the date of this Agreement, have been delivered,
or are publicly available through EDGAR, to the Sales Agent. Each Prospectus delivered to the Sales Agent for use in connection with the
sale of the Placement Shares pursuant to this Agreement will be identical to the version of such Prospectus filed with the Commission
via EDGAR, except to the extent permitted by Regulation S-T.
(d) Distribution of Offering
Material By the Company. The Company has not distributed and will not distribute, prior to the completion of the Sales Agent’s
distribution of the Placement Shares, any offering material in connection with the offering and sale of the Placement Shares other than
the Prospectus or the Registration Statement.
(e) The Sales Agreement.
This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal, and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity hereunder may be limited by
federal or state securities laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the rights of creditors generally, and subject to general principles of equity. The Company has full corporate
power and authority to enter into this Agreement and to authorize, issue and sell the Placement Shares as contemplated by this Agreement.
This Agreement conforms in all material respects to the descriptions thereof in the Registration Statement and the Prospectus.
(f) Authorization of the
Placement Shares. The Placement Shares, when issued and paid for as contemplated herein, will be validly issued, fully paid and nonassessable,
will be issued in compliance with all applicable securities laws, and will be free of preemptive, registration or similar rights, and
will conform to the description of the Common Stock contained in the Registration Statement and the Prospectus.
(g) No Applicable Registration or Other
Similar Rights. There are no persons with registration or other similar rights to have any equity or debt securities registered for
sale under the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been
duly waived. No person has the right to act as an underwriter or as a financial advisor to the Company in connection with the offer and
sale of the Placement Shares hereunder, whether as a result of the filing or effectiveness of the Registration Statement or the sale
of the Placement Shares as contemplated hereby or otherwise.
(h) No Material Adverse Change.
Except as otherwise disclosed in the Prospectus, subsequent to the respective dates as of which information is given in the Prospectus:
(i) there has been no material adverse change in the business, properties, prospects, operations, condition (financial or otherwise) or
results of operations of the Company and its subsidiaries, taken as a whole (any such change is called a “Material Adverse
Change”), or any development involving a prospective material adverse change, which, individually or in the aggregate, has
had or would reasonably be expected to result in a Material Adverse Change; (ii) the Company and its subsidiaries, considered as one entity,
have not incurred any material liability or obligation, indirect, direct or contingent, not in the ordinary course of business nor entered
into any material transaction or agreement not in the ordinary course of business; (iii) there has been no dividend or distribution of
any kind declared, paid or made by the Company or, except for regular quarterly dividends publicly announced by the Company or dividends
paid to the Company or other subsidiaries, by any of its subsidiaries on any class of capital stock or repurchase or redemption by the
Company or any of its subsidiaries of any class of capital stock; (iv) no officer or director of the Company has resigned from any position
with the Company; and (v) there has not been any Material Adverse Change in the Company’s long-term debt.
(i) Independent Accountants.
To the knowledge of the Company, BF Borgers CPA PC, whose report is filed with the Commission and included or incorporated by reference
in the Registration Statement and the Prospectus, and Ram Associates, CPAS, are each an independent registered public accounting firm
as required by the Securities Act and the Public Company Accounting Oversight Board.
(j) Financial Statements.
The financial statements incorporated by reference in the Registration Statement and in the Prospectus, together with the related notes
and schedules, comply in all material respects with the applicable requirements of the Securities Act and the Exchange Act, and fairly
present the consolidated financial position of the Company and its subsidiaries as of and at the dates indicated and the results of their
operations and cash flows for the periods therein specified. Such financial statements and supporting schedules have been prepared in
conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the
periods involved. No other financial statements, pro forma financial information or schedules are required under the Securities Act or
the Exchange Act to be included in or incorporated by reference in the Registration Statement or the Prospectus.
(k) Forward-Looking Statements.
The Company had a reasonable basis for, and made in good faith, each “forward-looking statement” (within the meaning of Section
27A of the Securities Act or Section 21E of the Exchange Act) contained or incorporated by reference in the Registration Statement or
the Prospectus.
(l) Statistical and Marketing-Related Data.
All statistical or market-related data included or incorporated by reference in the Registration Statement or the Prospectus are based
on or derived from sources that the Company reasonably believes to be reliable and accurate, and, to the Company’s knowledge, the
Company has obtained the written consent to the use of such data from such sources to the extent required.
(m) XBRL. The interactive
data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement fairly presents the
information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable
thereto.
(n) Incorporation and Good
Standing of the Company and its Subsidiaries. The Company is a corporation duly incorporated and validly existing under the laws of
the State of Delaware and in good standing under such laws. The Company has requisite corporate power to carry on its business as described
in the Prospectus. The Company is duly qualified to transact business and is in good standing in all jurisdictions in which the conduct
of its business requires such qualification; except where the failure to be so qualified or to be in good standing would not result in
a Material Adverse Change. The Company does not own or control, directly or indirectly, any corporation, association or other entity other
than the subsidiaries listed on Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the most recently ended fiscal year
and other than (i) those subsidiaries not required to be listed on Exhibit 21.1 by Item 601 of Regulation S-K under the Exchange Act,
and (ii) as disclosed in the Registration Statement and the Prospectus. Each subsidiary is a corporation or limited liability company
duly incorporated or formed and validly existing under the laws of the jurisdiction of its incorporation or formation and is in good standing
under such laws. Each of the subsidiaries has requisite corporate power to carry on its business as described in the Prospectus. Each
of the subsidiaries is duly qualified to transact business and is in good standing in all jurisdictions in which the conduct of its business
requires such qualification; except where the failure to be so qualified or to be in good standing would not result in a Material Adverse
Change.
(o) Capital Stock Matters.
The Company has an authorized capitalization as set forth in the Registration Statement and the Prospectus. The form of certificates for
the Common Stock conforms to the corporate law of the jurisdiction of the Company’s incorporation. All of the issued and outstanding
shares of capital stock of the Company are duly authorized and validly issued, fully paid and nonassessable, and have been issued in compliance
with all applicable securities laws, and conform to the description thereof in the Registration Statement and the Prospectus. None of
the outstanding shares of capital stock of the Company were issued in violation of any preemptive rights, rights of first refusal or other
similar rights to subscribe for or purchase securities of the Company. All of the issued shares of capital stock of each subsidiary of
the Company have been duly and validly authorized and issued, are fully paid and nonassessable and, except as set forth in the Registration
Statement and the Prospectus, are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or
claims. Except for the issuances of options or restricted stock pursuant to the Company’s incentive plans or as otherwise set forth
in the Registration Statement and the Prospectus, since the respective dates as of which information is provided in the Registration Statement
or the Prospectus, the Company has not entered into or granted any convertible or exchangeable securities, options, warrants, agreements,
contracts or other rights in existence to purchase or acquire from the Company any shares of the capital stock of the Company.
(p) Non-Contravention of
Existing Instruments; No Further Authorizations or Approvals Required. The Company’s execution, delivery and performance of
this Agreement and consummation of the transactions contemplated hereby or by the Registration Statement and the Prospectus (including
the issuance and sale of the Placement Shares and the use of the proceeds from the sale of the Placement Shares as described in the Prospectus
under the caption “Use of Proceeds”) will not (A) result in a breach or violation of any of the terms and provisions of, or
constitute a default under, any law, order, rule or regulation to which the Company or any subsidiary is subject, or by which any property
or asset of the Company or any subsidiary is bound or affected, (B) conflict with, result in any violation or breach of, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any right of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) (a “Default Acceleration Event”)
of, any agreement, lease, credit facility, debt, note, bond, mortgage, indenture or other instrument (“Contract”)
or obligation or other understanding to which the Company or any subsidiary is a party or by which any property or asset of the Company
or any subsidiary is bound or affected, except to the extent that such conflict, default, or Default Acceleration Event is not reasonably
likely to result in a Material Adverse Change, or (C) result in a breach or violation of any of the terms and provisions of, or constitute
a default under, the Company’s certificate of incorporation or bylaws. Except as set forth in the Registration Statement and the
Prospectus, neither the Company nor any of its subsidiaries is in violation, breach or default under its Certificate of Incorporation,
by-laws or other equivalent organizational or governing documents. Neither the Company nor any its subsidiaries nor, to its knowledge,
any other party is in violation, breach or default of any Contract that has resulted in or could reasonably be expected to result in a
Material Adverse Change. Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative
or other governmental body necessary in connection with the execution and delivery by the Company of this Agreement and the performance
of the Company of the transactions herein contemplated has been obtained or made and is in full force and effect, except (i) with respect
to any Applicable Time at which the Sales Agent would not be able to rely on Rule 5110(h)(1)(C) of the Financial Industry Regulatory Authority,
Inc. (“FINRA”), such additional steps as may be required by FINRA, (ii) filings with the Commission required
under the Securities Act or the Exchange Act, or filings with the Exchange pursuant to the rules and regulations of the Exchange, in each
case that are contemplated by this Agreement to be made after the date of this Agreement, and (iii) such additional steps as may be necessary
to qualify the Common Stock for sale by the Sales Agent under state securities or Blue Sky laws.
(q) No Material Actions or
Proceedings. Except as set forth in the Registration Statement and the Prospectus, there is not pending or, to the knowledge of the
Company, threatened, any action, suit or proceeding to which the Company or any of its subsidiaries is a party or of which any property
or assets of the Company or any of its subsidiaries is the subject before or by any court or governmental agency, authority or body, or
any arbitrator or mediator
(r) Labor Disputes. There
is (A) no unfair labor practice complaint pending against the Company, or any of its subsidiaries, nor to the Company’s knowledge,
threatened against it or any of its subsidiaries, before the National Labor Relations Board, any state or local labor relation board or
any foreign labor relations board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement
is so pending against the Company or any of its subsidiaries, or, to the Company’s knowledge, threatened against it and (B) no labor
disturbance by the employees of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is imminent, and the
Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries, principal suppliers,
manufacturers, customers or contractors, that could reasonably be expected, singularly or in the aggregate, to have a Material Adverse
Change. The Company is not aware that any key employee or significant group of employees of the Company or any subsidiary plans to terminate
employment with the Company or any such subsidiary.
(s) All Necessary Permits,
etc. Except as set forth in the Registration Statement and the Prospectus, the Company and each of its subsidiaries holds, and is
in compliance with, all franchises, grants, authorizations, licenses, permits, easements, consents, certificates and orders (“Permits”)
of any governmental or self-regulatory agency, authority or body required for the conduct of its business, and all such Permits are in
full force and effect.
(t) Tax Law Compliance.
Other than as disclosed in the Registration Statement Package and the Prospectus, each of the Company and its subsidiaries has (a) filed
all foreign, federal, state and local tax returns (as hereinafter defined) required to be filed with taxing authorities prior to the date
hereof or has duly obtained extensions of time for the filing thereof and (b) paid all taxes (as hereinafter defined) shown as due and
payable on such returns that were filed and has paid all taxes imposed on or assessed against the Company or such respective subsidiary.
The provisions for taxes payable, if any, shown on the financial statements included or incorporated by reference in the Registration
Statement and the Prospectus are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including
the dates of such consolidated financial statements. Other than as disclosed in the Registration Statement and the Prospectus, no issues
have been raised (and are currently pending) by any taxing authority in connection with any of the returns or taxes asserted as due from
the Company or its subsidiaries, and no waivers of statutes of limitation with respect to the returns or collection of taxes have been
given by or requested from the Company or its subsidiaries. There are no tax liens against the assets, properties or business of the Company
or any of its subsidiaries. The term “taxes” mean all federal, state, local, foreign, and other net income,
gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding,
payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees,
assessments, or charges of any kind whatever, together with any interest and any penalties, additions to tax, or additional amounts with
respect thereto. The term “returns” means all returns, declarations, reports, statements, and other documents
required to be filed in respect to taxes.
(u) Company Not an “Investment
Company”. The Company is not, and will not be, either after receipt of payment for the Placement Shares or after the application
of the proceeds therefrom as described under “Use of Proceeds” in the Registration Statement or the Prospectus, required to
register as an “investment company” under the Investment Company Act of 1940, as amended (the “Investment Company
Act”).
(v) Insurance. The Company
and each of its subsidiaries carries, or is covered by, insurance in such amounts and covering such risks as is adequate for the conduct
of its business and the value of its properties and as is customary for companies engaged in similar businesses in similar industries,
and all such insurance is in full force and effect. Neither the Company nor any of its subsidiaries has reason to believe that it will
not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable coverage from similar
institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that would not result in a Material
Adverse Change.
(w) No Price Stabilization
or Manipulation. Neither the Company nor any of its subsidiaries has taken, directly or indirectly (without giving any effect to the
activities of the Agent), any action designed to or that might cause or result in stabilization or manipulation of the price of the Common
Stock or of any “reference security” (as defined in Rule 100 of Regulation M under the Exchange Act (“Regulation
M”)) with respect to the Common Stock, whether to facilitate the sale or resale of the Placement Shares or otherwise, and
has taken no action which would directly or indirectly violate Regulation M.
(x) Related Party Transactions.
There are no business relationships or related party transactions involving the Company, any of its subsidiaries, or any other person
required to be described in the Registration Statement and the Prospectus that have not been described as required pursuant to the Securities
Act.
(y) Exchange Act Compliance.
The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the Prospectus or any amendment or
supplement thereto, at the time they were or hereafter are filed with the Commission under the Exchange Act, complied and will comply
in all material respects with the requirements of the Exchange Act, and, when read together with the other information in the Prospectus,
at each Point of Sale and each Settlement Date, will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.
(z) Conformity of Issuer
Free Writing Prospectus. Each Issuer Free Writing Prospectus conformed or will conform in all material respects to the requirements
of the Securities Act on the date of first use, and the Company has complied or will comply with any filing requirements applicable to
such Issuer Free Writing Prospectus pursuant to the Securities Act. Each Issuer Free Writing Prospectus, as of its issue date and at all
subsequent times through the completion of the public offer and sale of the Placement Shares, did not, does not and will not include any
information that conflicted, conflicts or will conflict with the information contained in the Registration Statement or the Prospectus,
including any document incorporated by reference therein that has not been superseded or modified. The Company has not made any offer
relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus without the prior written consent of the Sales
Agent. The Company has retained in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not required to be
filed pursuant to the Securities Act.
(aa) Compliance with Environmental
Laws. The Company and its subsidiaries are in compliance with all foreign, federal, state and local rules, laws and regulations relating
to the use, treatment, storage and disposal of hazardous or toxic substances or waste and protection of health and safety or the environment
which are applicable to their businesses (“Environmental Laws”), except where the failure to comply has not
had and would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Change. There has been no storage,
generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of toxic or other wastes
or other hazardous substances by, due to, or caused by the Company or any of its subsidiaries (or, to the Company’s knowledge, any
other entity for whose acts or omissions the Company or any of its subsidiaries is or may otherwise be liable) upon any of the property
now or previously owned or leased by the Company or any of its subsidiaries, or upon any other property, in violation of any law, statute,
ordinance, rule, regulation, order, judgment, decree or permit or which would, under any law, statute, ordinance, rule (including rule
of common law), regulation, order, judgment, decree or permit, give rise to any liability, except for any violation or liability which
has not had and would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Change; and there has been
no disposal, discharge, emission or other release of any kind onto such property or into the environment surrounding such property of
any toxic or other wastes or other hazardous substances with respect to which the Company or any of its subsidiaries has knowledge. The
Company and its subsidiaries have reviewed the effect of Environmental Laws on their business and assets, in the course of which they
identified and evaluated associated costs and liabilities (including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws or governmental permits issued thereunder, any related constraints
on operating activities and any potential liabilities to third parties). On the basis of such review, the Company has reasonably concluded
that such associated costs and liabilities would not have, singularly or in the aggregate, a Material Adverse Change.
(bb) Intellectual Property. The Company
and each of its subsidiaries own or possess or have valid rights to use all patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets and similar rights
(“Intellectual Property Rights”) necessary for the conduct of the business of the Company and its subsidiaries
as currently carried on and as described in the Registration Statement and the Prospectus, except as would not be reasonably likely to
result in a Material Adverse Change. To the knowledge of the Company, no action or use by the Company or any of its subsidiaries necessary
for the conduct of their business as currently carried on and as described in the Registration Statement and the Prospectus will involve
or give rise to any infringement of, or license or similar fees for, any Intellectual Property Rights of others, except where such action,
use, license or fee is not reasonably likely to result in a Material Adverse Change. Neither the Company nor any of its subsidiaries
have received any notice alleging any such infringement, fee or conflict with asserted Intellectual Property Rights of others. Except
as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change (A) to the knowledge of
the Company, there is no infringement, misappropriation or violation by third parties of any of the Intellectual Property Rights owned
by the Company or any of its subsidiaries; (B) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding
or claim by others challenging the rights of the Company or any of its subsidiaries in or to any such Intellectual Property Rights, and
the Company is unaware of any facts which would form a reasonable basis for any such claim, that would, individually or in the aggregate,
together with any other claims in this Section 6(bb), reasonably be expected to result in a Material Adverse Change; (C) the Intellectual
Property Rights owned by the Company or any of its subsidiaries and, to the knowledge of the Company, the Intellectual Property Rights
licensed to the Company have not been adjudged by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and
there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity
or scope of any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any
such claim that would, individually or in the aggregate, together with any other claims in this Section 6(bb), reasonably be expected
to result in a Material Adverse Change; (D) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or claim by others that the Company or any of its subsidiaries infringes, misappropriates or otherwise violates any Intellectual Property
Rights or other proprietary rights of others, neither the Company nor any of its subsidiaries has received any written notice of such
claim and the Company is unaware of any other facts which would form a reasonable basis for any such claim that would, individually or
in the aggregate, together with any other claims in this Section 6(bb), reasonably be expected to result in a Material Adverse
Change; and (E) except as disclosed in the Registration Statement and the Prospectus, to the Company’s knowledge, no employee of
the Company or any of its subsidiaries is in or has ever been in violation in any material respect of any term of any employment contract,
patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement
or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment
with the Company or any of its subsidiaries, or actions undertaken by the employee while employed with the Company or any of its subsidiaries
and could reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change. To the Company’s knowledge,
all material technical information developed by and belonging to the Company or any of its subsidiaries which has not been patented has
been kept confidential. Neither the Company nor any of its subsidiaries is a party to or bound by any options, licenses or agreements
with respect to the Intellectual Property Rights of any other person or entity that are required to be set forth in the Registration
Statement and the Prospectus and are not described therein. The Registration Statement and the Prospectus contain in all material respects
the same description of the matters set forth in the preceding sentence. None of the technology employed by the Company or its subsidiaries
has been obtained or is being used by the Company or any of its subsidiaries in violation of any contractual obligation binding on the
Company or any such subsidiary or, to the Company’s knowledge, any of its or its subsidiaries’ officers, directors or employees,
or otherwise in violation of the rights of any persons.
(cc) Brokers. Neither
the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other than as contemplated
by this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries or the Sales Agent for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Placement Shares by the Sales Agent under
this Agreement.
(dd) No Outstanding Loans
or Other Indebtedness. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course
of business) or guarantees or indebtedness by the Company or any of its subsidiaries to or for the benefit of any of the officers or directors
of the Company or executive officers of any of its subsidiaries to the extent such executive officers may be deemed executive officers
of the Company, or any of their respective family members, except as disclosed in the Registration Statement and the Prospectus. The Company
has not directly or indirectly extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit,
in the form of a personal loan to or for any director or executive officer of the Company.
(ee) No Reliance. The
Company has not relied upon the Sales Agent or legal counsel for the Sales Agent for any legal, tax or accounting advice in connection
with the offering and sale of the Placement Shares.
(ff) Broker-Dealer Status.
Neither the Company nor any of its related entities (i) is required to register as a “broker” or “dealer” in accordance
with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person
associated with a member” or “associated person of a member” (within the meaning of Article I of the NASD Manual administered
by FINRA). To the Company’s knowledge, there are no affiliations or associations between any member of FINRA and any of the Company’s
officers, directors or 10% or greater security holders, except as set forth in the Registration Statement.
(gg) Public Float Calculation.
At the time the Registration Statement and any Rule 462(b) Registration Statement was or will be filed with the Commission, at the time
the Registration Statement and any Rule 462(b) Registration Statement was or will be declared effective by the Commission, and at the
time the Company’s most recent Annual Report on Form 10-K was filed with the Commission, the Company met or will meet the then applicable
requirements for the use of Form S-3 under the Securities Act. As of the close of trading on the Exchange on January 3, 2024, the aggregate
market value of the outstanding voting and non-voting common equity (as defined in Rule 405) of the Company held by persons other than
affiliates of the Company (pursuant to Rule 144 of the Securities Act, those that directly, or indirectly through one or more intermediaries,
control, or are controlled by, or are under common control with, the Company) (the “Non-Affiliate Shares”),
was approximately $7,241,243.50 (calculated by multiplying $4.25 the price at which the common equity of the Company was last sold on
the Exchange on November 15, 2023 by 1,703,822 the number of Non-Affiliate Shares outstanding on January 4, 2024). The Company is not
a shell company (as defined in Rule 405) and has not been a shell company for at least 12 calendar months previously and if it has been
a shell company at any time previously, has filed current Form 10 information (as defined in Instruction I.B.6. of Form S-3) with the
Commission at least 12 calendar months previously reflecting its status as an entity that is not a shell company.
(hh) FINRA Matters. All of the information
provided to the Sales Agent or to counsel for the Sales Agent by the Company, its counsel, its officers and directors and, to the Company’s
knowledge, the holders of any securities (debt or equity) or options to acquire any securities of the Company in connection with the
offering of the Placement Shares is true, complete, correct and compliant with FINRA’s rules in all material respects and any letters,
filings or other supplemental information provided to FINRA pursuant to FINRA Rules or NASD Conduct Rules is true, complete and correct
in all material respects. Except as disclosed in the Registration Statement and the Prospectus, there is no (i) officer or director of
the Company, (ii) beneficial owner of 10% or more of any class of the Company’s securities or (iii) beneficial owner of the Company’s
unregistered equity securities that were acquired during the 180-day period immediately preceding the date of this Agreement that is
an affiliate or associated person of a FINRA member participating in the offer, issuance and sale of the Placement Shares as contemplated
by this Agreement and the Registration Statement and the Prospectus (as determined in accordance with the rules and regulations of FINRA).
(ii) Compliance with Orders.
Neither the Company nor any of its subsidiaries is in violation of any material judgment, decree, or order of any court, arbitrator or
other governmental authority.
(jj) Compliance with Certain
Applicable Laws. The Company and each of its subsidiaries: (A) is and at all times has been in compliance with all statutes, rules,
or regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling,
promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured or distributed by the Company (“Applicable
Laws”), except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change;
(B) has not received any warning letter, untitled letter or other correspondence or notice from any governmental authority alleging or
asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements
or amendments thereto required by any such Applicable Laws (“Authorizations”); (C) possesses all material Authorizations
and such Authorizations are valid and in full force and effect and are not in material violation of any term of any such Authorizations;
(D) has not received notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from
any governmental authority or third party alleging that any product operation or activity is in violation of any Applicable Laws or Authorizations
and has no knowledge that any such governmental authority or third party is considering any such claim, litigation, arbitration, action,
suit, investigation or proceeding; (E) has not received notice that any governmental authority has taken, is taking or intends to take
action to limit, suspend, modify or revoke any Authorizations and has no knowledge that any such governmental authority is considering
such action; and (F) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records,
claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports, documents,
forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct on the date filed (or
were corrected or supplemented by a subsequent submission).
(kk) Sarbanes–Oxley
Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities
as such, to comply in all material respects with any applicable provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections
302 and 906 related to certifications..
(ll) Disclosure Controls
And Procedures. Except as set forth in the Registration Statement and the Prospectus, the Company and its subsidiaries maintain systems
of “internal control over financial reporting” (as defined under Rules 13a-15 and 15d-15 under the Exchange Act) that comply
with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal executive
and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, including, but not limited
to, internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general
or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language included
or incorporated by references in the Registration Statement and the Prospectus fairly present the information called for in all material
respects and are prepared in accordance with the Commission’s rules and guidelines applicable thereto. Since the date of the latest
audited financial statements included in the Registration Statement and the Prospectus, there has been no change in the Company’s
internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.
(mm) ERISA. The Company,
its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act of 1974, as
amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) established or
maintained by the Company, its subsidiaries or any of their “ERISA Affiliates” (as defined below) are in compliance in all
material respects with ERISA. “ERISA Affiliate” means, with respect to the Company and each of its subsidiaries,
any member of any group of organizations described in Sections 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended,
and the regulations and published interpretations thereunder (the “Code”) of which the Company or any of its
subsidiaries is a member. No “reportable event” (as defined under ERISA) has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the Company, or any of its subsidiaries or any of their
ERISA Affiliates. No “employee benefit plan” established or maintained by the Company, any of its subsidiaries or any of their
ERISA Affiliates, if such “employee benefit plan” were terminated, would have any “amount of unfunded benefit liabilities”
(as defined under ERISA). Neither the Company nor any of its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably
expects to incur any material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee
benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan” established or maintained
by the Company, any of its subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of the
Code is so qualified and, to the knowledge of the Company, nothing has occurred, whether by action or failure to act, which would cause
the loss of such qualification.
(nn) Contracts and Agreements.
The agreements and documents described in the Registration Statement and the Prospectus conform in all material respects to the descriptions
thereof contained therein and there are no agreements or other documents required by the Securities Act to be described in the Registration
Statement and the Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described
or filed. Each agreement or other instrument (however characterized or described) to which the Company or any of its subsidiaries is a
party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement and the Prospectus, or (ii)
is material to the Company’s or its subsidiaries’ business, has been duly authorized and validly executed by the Company,
is in full force and effect in all material respects and is enforceable against the Company or any of its subsidiaries and, to the Company’s
knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification or contribution
provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance and injunctive and
other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding
therefor may be brought. Except as disclosed in the Registration Statement and the Prospectus, none of such agreements or instruments
has been assigned by the Company or its subsidiaries, and neither the Company, its subsidiaries nor, to the Company’s knowledge,
any other party is in default thereunder and, to the Company’s knowledge, no event has occurred that, with the lapse of time or
the giving of notice, or both, would constitute a default thereunder. To the best of the Company’s knowledge, performance by the
Company or any of its subsidiaries of the material provisions of such agreements or instruments will not result in a violation of any
existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having
jurisdiction over the Company, its subsidiaries or any of their assets or businesses (each, a “Governmental Entity”),
including, without limitation, those relating to environmental laws and regulations.
(oo) Title to Properties.
Except as set forth in the Registration Statement and the Prospectus, the Company and each of its subsidiaries have good and marketable
title in fee simple to, or have valid rights to lease or otherwise use, all items of real or personal property which are material to the
business of the Company, in each case free and clear of all liens, encumbrances, security interests, claims and defects that do not, singly
or in the aggregate, materially affect the value of such property and do not interfere with the use made and proposed to be made of such
property by the Company or any of its subsidiaries; and all of the leases and subleases material to the business of the Company, and under
which the Company or any of its subsidiaries hold properties described in the Registration Statement and the Prospectus, are in full force
and effect, and neither the Company nor any of its subsidiaries has received any notice of any material claim of any sort that has been
asserted by anyone adverse to the rights of the Company or any of its subsidiaries under any of the leases or subleases mentioned above,
or affecting or questioning the rights of the Company or any of its subsidiaries to the continued possession of the leased or subleased
premises under any such lease or sublease, which would result in a Material Adverse Change.
(pp) No Unlawful Contributions
or Other Payments. No payments or inducements have been made or given, directly or indirectly, to any federal or local official or
candidate for, any federal or state office in the United States or foreign offices by the Company, any of its subsidiaries or any of their
officers or directors, or, to the knowledge of the Company, by any of its employees or agents or any other person in connection with any
opportunity, contract, permit, certificate, consent, order, approval, waiver or other authorization relating to the business of the Company
or any of its subsidiaries, except for such payments or inducements as were lawful under applicable laws, rules and regulations. Neither
the Company, any of its subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee or other person associated
with or acting on behalf of the Company or any of its subsidiaries, (i) has used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any government
official or employee from corporate funds; or (iii) made any bribe, unlawful rebate, payoff, influence payment, kickback or other unlawful
payment in connection with the business of the Company.
(qq) Foreign Corrupt Practices
Act. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or other person acting on behalf of the Company or any of its subsidiaries, is aware of or has taken any action, directly or indirectly,
that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (collectively, the “FCPA”), including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of
any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official”
(as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office,
in contravention of the FCPA. The Company and its subsidiaries have conducted their respective businesses in compliance with the FCPA
and have instituted and maintains policies and procedures designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.
(rr) Money Laundering Laws.
The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of
all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with
respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(ss) OFAC. None of the
Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate or person acting
on behalf of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds
of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person
or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
(tt) Exchange Listing. The Common Stock
is registered pursuant to Section 12(b) of the Exchange Act and is currently listed on the Exchange under the trading symbol “HCTI”.
Except as disclosed in the Registration Statement and the Prospectus, there is no action pending by the Company or, to the Company’s
knowledge, the Exchange to delist the Common Stock from the Exchange, nor has the Company received any notification that the Exchange
is contemplating terminating such listing. The Company has no intention to delist the Common Stock from the Exchange or to deregister
the Common Stock under the Exchange Act, in either case, at any time during the period commencing on the date of this Agreement through
and including the 90th calendar day after the termination of this Agreement. The Placement Shares have been approved for listing on the
Exchange. The issuance and sale of the Placement Shares under this Agreement does not contravene the rules and regulations of the Exchange.
(uu) Margin Rules. The
Company owns no “margin securities” as that term is defined in Regulation U of the Board of Governors of the Federal Reserve
System (the “Federal Reserve Board”), and none of the proceeds from the issuance, sale and delivery of the Placement
Shares as contemplated by this Agreement and as described in the Registration Statement and the Prospectus will be used, directly or indirectly,
for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any indebtedness which was originally
incurred to purchase or carry any margin security or for any other purpose which might cause any of the shares of Common Stock to be considered
a “purpose credit” within the meanings of Regulation T, U or X of the Federal Reserve Board.
(vv) Underwriter Agreements.
The Company is not a party to any agreement with an agent or underwriter for any other “at-the-market” or continuous equity
transaction.
(ww) Board of Directors.
The qualifications of the persons serving as board members of the Company and the overall composition of the Company’s Board of
Directors comply with the applicable requirements of the Exchange Act and the Sarbanes-Oxley Act and the listing rules of the Exchange
applicable to the Company. At least one member of the Audit Committee of the Board of Directors of the Company qualifies as an “audit
committee financial expert,” as such term is defined under Regulation S-K and the listing rules of the Exchange. In addition, at
least a majority of the persons serving on the Board of Directors of the Company qualify as “independent,” as defined under
the listing rules of the Exchange.
(xx) No Integration.
Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause the offer and sale of the Placement
Shares hereunder to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration
of any such securities under the Securities Act.
(yy) No Material Defaults.
Neither the Company nor any of its subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on
one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Change. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual
Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually
or in the aggregate, could reasonably be expected to result in a Material Adverse Change.
(zz) Books and Records.
The minute books of the Company and each of its subsidiaries have been made available to the Sales Agent and counsel for the Sales Agent,
and such books (i) contain a substantially complete summary of all meetings and material actions of the board of directors (including
each board committee) and stockholders of the Company (or analogous governing bodies and interest holders, as applicable) and each of
its subsidiaries since the time of its respective incorporation or organization through the date of the latest meeting and action, and
(ii) accurately in all material respects reflect all transactions referred to in such minutes.
(aaa) Continued Business.
No supplier, customer, distributor or sales agent of the Company or any subsidiary has notified the Company or any subsidiary that it
intends to discontinue or decrease the rate of business done with the Company or any subsidiary, except where such discontinuation or
decrease has not resulted in and could not reasonably be expected to result in a Material Adverse Change.
(bbb) Regulations. The
disclosures in the Registration Statement and the Prospectus concerning the effects of federal, state, local and all foreign regulation
on the Company’s business in the past and as currently contemplated are correct in all material respects and no other such regulations
are required to be disclosed in the Registration Statement and the Prospectus which are not so disclosed.
(ccc) Confidentiality and
Non-Competitions. To the Company’s knowledge, no director, officer, key employee or consultant of the Company or any of its
subsidiaries is subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with any employer
or prior employer that could reasonably be expected to materially affect his or her ability to be and act in his or her respective capacity
for the Company or to result in a Material Adverse Change.
(ddd) Dividend Restrictions.
Except as described in the Registration Statement and the Prospectus, no subsidiary of the Company
is prohibited or restricted, directly or indirectly, from paying dividends to the Company, or from making any other distribution with
respect to such subsidiary’s equity securities or from repaying to the Company or any other subsidiary of the Company any amounts
that may from time to time become due under any loans or advances to such subsidiary from the Company or from transferring any property
or assets to the Company or to any other subsidiary.
Any certificate signed by an officer of the Company
and delivered to the Sales Agent or to counsel for the Sales Agent pursuant to or in connection with this Agreement shall be deemed to
be a representation and warranty by the Company to the Sales Agent as to the matters set forth therein.
The Company acknowledges that the Sales Agent and, for purposes
of the opinions to be delivered pursuant to Section 7 hereof, counsel to the Company and counsel to the Sales Agent, will rely
upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance.
7. Covenants
of the Company. The Company covenants and agrees with the Sales Agent that:
(a) Registration Statement
Amendments. After the date of this Agreement and during any period in which a Prospectus relating to any Placement Shares is required
to be delivered by the Sales Agent under the Securities Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 153 or Rule 172 under the Securities Act), (i) the Company will notify the Sales Agent promptly of the time when any subsequent
amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the Commission and/or has
become effective or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any amendment
or supplement to the Registration Statement or Prospectus or for additional information; (ii) the Company will prepare and file with the
Commission, promptly upon the Sales Agent’s reasonable request, any amendments or supplements to the Registration Statement or Prospectus
that, in the Sales Agent’s reasonable opinion, may be necessary or advisable in connection with the distribution of the Placement
Shares by the Sales Agent (provided, however, that the failure of the Sales Agent to make such request shall not relieve
the Company of any obligation or liability hereunder, or affect the Sales Agent’s right to rely on the representations and warranties
made by the Company in this Agreement, and provided, further, that the only remedy the Sales Agent shall have with respect
to the failure to make such filing shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii)
the Company will not file any amendment or supplement to the Registration Statement or Prospectus, other than documents incorporated by
reference, relating to the Placement Shares or a security convertible into the Placement Shares unless a copy thereof has been submitted
to the Sales Agent within a reasonable period of time before the filing and the Sales Agent has not reasonably objected thereto (provided,
however, that the failure of the Sales Agent to make such objection shall not relieve the Company of any obligation or liability
hereunder, or affect the Sales Agent’s right to rely on the representations and warranties made by the Company in this Agreement,
and provided, further, that the only remedy the Sales Agent shall have with respect to the failure by the Company to obtain
such consent shall be to cease making sales under this Agreement); (iv) the Company will furnish to the Sales Agent at the time of filing
thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus,
except for those documents available via EDGAR; and (v) the Company will cause each amendment or supplement to the Prospectus, other than
documents incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of
the Securities Act (without reliance on Rule 424(b)(8) of the Securities Act) or, in the case of any documents incorporated by reference,
to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed.
(b) Notice of Commission
Stop Orders. The Company will advise the Sales Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance
by the Commission of any stop order suspending the effectiveness of the Registration Statement or any notice objecting to, or other order
preventing or suspending the use of, the Prospectus, of the suspension of the qualification of the Placement Shares for offering or sale
in any jurisdiction, or of the initiation of any proceeding for any such purpose or any examination pursuant to Section 8(e) of the Securities
Act, or if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the offering of the
Placement Shares; and it will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain
its withdrawal if such a stop order should be issued. Until such time as any stop order is lifted, the Sales Agent shall cease making
offers and sales under this Agreement.
(c) Delivery of Prospectus;
Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Sales
Agent under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement
may be satisfied pursuant to Rule 153 or Rule 172 under the Securities Act), the Company will comply with all requirements imposed upon
it by the Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive
proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or
any other provision of or under the Exchange Act. If during such period any event occurs as a result of which the Prospectus as then amended
or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement
the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Sales Agent to suspend
the offering of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus
(at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay any such amendment or supplement if, in the reasonable judgment of the Company, it is in the best interests
of the Company to do so.
(d) Listing of Placement
Shares. During any period in which the Prospectus relating to the Placement Shares is required to be delivered by the Sales Agent
under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement may
be satisfied pursuant to Rule 153 or Rule 172 under the Securities Act), the Company will use its commercially reasonable efforts
to cause the Placement Shares to be listed on the Exchange and to qualify the Placement Shares for sale under the securities laws of such
jurisdictions as the Sales Agent reasonably designates and to continue such qualifications in effect so long as required for the distribution
of the Placement Shares; provided, however, that the Company shall not be required in connection therewith to qualify as
a foreign corporation or dealer in securities or file a general consent to service of process in any jurisdiction.
(e) Delivery of Registration
Statement and Prospectus. The Company will furnish to the Sales Agent and its counsel (at the expense of the Company) copies of the
Registration Statement, the Prospectus (including all documents incorporated by reference therein) and all amendments and supplements
to the Registration Statement or Prospectus that are filed with the Commission during any period in which a Prospectus relating to the
Placement Shares is required to be delivered under the Securities Act (including all documents filed with the Commission during such period
that are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and in such quantities as the
Sales Agent may from time to time reasonably request and, at the Sales Agent’s request, will also furnish copies of the Prospectus
to each exchange or market on which sales of the Placement Shares may be made; provided, however, that the Company shall
not be required to furnish any document (other than the Prospectus) to the Sales Agent to the extent such document is available on EDGAR.
(f) Earnings Statement.
The Company will make generally available to its security holders as soon as practicable, but in any event not later than 15 months after
the end of the Company’s current fiscal quarter, an earnings statement of the Company and its subsidiaries (which need not be audited)
covering a 12-month period that complies with Section 11(a) and Rule 158 of the Securities Act. The terms “earnings statement”
and “make generally available to its security holders” shall have the meanings set forth in Rule 158 under the Securities
Act.
(g) Expenses. The Company,
whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated in accordance with the provisions
of Section 11 hereunder, will pay the following expenses all incident to the performance of its obligations hereunder, including,
but not limited to, expenses relating to (i) the preparation, printing and filing of the Registration Statement and each amendment and
supplement thereto, of each Prospectus and of each amendment and supplement thereto, (ii) the preparation, issuance and delivery of the
Placement Shares, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery
of the Placement Shares to the Sales Agent, (iii) the fees and disbursements of the counsel, accountants and other advisors to the Company
in connection with the transactions contemplated by this Agreement; (iv) the qualification of the Placement Shares under securities laws
in accordance with the provisions of Section 7(d) of this Agreement, including filing fees (provided, however, that
any fees or disbursements of counsel for the Sales Agent in connection therewith shall be paid by the Sales Agent except as set forth
in (ix) below), (v) the printing and delivery to the Sales Agent of copies of the Prospectus and any amendments or supplements thereto,
and of this Agreement, (vi) the fees and expenses incurred in connection with the listing or qualification of the Placement Shares for
trading on the Exchange, (vii) the fees and expenses of the transfer agent or registrar for the Common Stock; (viii) filing fees and expenses,
if any, of the Commission and the FINRA Corporate Financing Department (provided, however, that any fees or disbursements
of counsel for the Sales Agent in connection therewith shall be paid by the Sales Agent except as set forth in (ix) below) and (ix) the
Company shall reimburse the Sales Agent for its out-of-pocket expenses (including but not limited to the reasonable and documented fees
and expenses of counsel to the Sales Agent) (A) in an amount not to exceed $50,000 prior to the execution of this Agreement and (B)(1)
in reasonable amounts to be mutually agreed upon by the Company and the Sales Agent from time to time after the date of this Agreement
for each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which
no waiver is applicable pursuant to Section 7(m), provided with respect to this clause (B) the Sales Agent has reasonably incurred such
fees and expenses of its counsel in connection with any “bring-down” due diligence investigation of the Company in connection
with such Representation Date and (2) the Company’s reimbursement obligation shall not exceed $10,000 per fiscal year.
(h) Use of Proceeds.
The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”
(i) Notice of Other Sales.
The Company (I) shall provide the Sales Agent notice as promptly as reasonably possible before it offers to sell, contracts to sell, sells,
grants any option to sell or otherwise disposes of any shares of Common Stock (other than Placement Shares offered pursuant to the provisions
of this Agreement) or securities convertible into or exchangeable for Common Stock, or warrants or any rights to purchase or acquire Common
Stock, during the period beginning on the fifth (5th) Trading Day immediately prior to the date on which any Placement Notice is delivered
to the Sales Agent hereunder and ending on the fifth (5th) Trading Day immediately following the final Settlement Date with respect to
Placement Shares sold pursuant to such Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the sale
of all Placement Shares covered by a Placement Notice, the fifth (5th) Trading Day immediately following the date of such suspension or
termination), and (II) will not directly or indirectly in any other “at-the-market” or continuous equity transaction offer
to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the Placement Shares offered
pursuant to this Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire,
Common Stock prior to the termination of this Agreement; provided, however, that such notice requirements or restrictions,
as the case may be, will not be required in connection with the Company’s issuance or sale of (i) Common Stock, options to purchase
Common Stock, other equity awards or Common Stock issuable upon the exercise of options or other equity awards, pursuant to any employee
or director stock option or benefits plan, stock ownership plan or dividend reinvestment plan of the Company whether now in effect or
hereafter implemented, (ii) Common Stock issuable upon exchange, conversion or redemption of securities or the exercise of warrants, options
or other rights in effect or outstanding, and disclosed in filings by the Company available on EDGAR and (iii) Common Stock or securities
convertible into or exchangeable for Common Stock as consideration for mergers, acquisitions, sale or purchase of assets or other business
combinations or strategic alliances occurring after the date of this Agreement which are not issued for capital raising purposes. Notwithstanding
the foregoing, the Company shall provide the Sales Agent notice at least two (2) days prior to pursuing any private or public offerings
of equity and/or other securities (including debt securities) in one or more transactions.
(j) Change of Circumstances.
The Company will, at any time during a fiscal quarter in which the Company intends to tender a Placement Notice or sell Placement Shares,
advise the Sales Agent promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would
alter or affect in any material respect any opinion, certificate, letter or other document provided to the Sales Agent pursuant to this
Agreement.
(k) Due Diligence Cooperation.
The Company will cooperate with any reasonable due diligence review conducted by the Sales Agent or its agents in connection with the
transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate
officers, during regular business hours and at the Company’s principal offices, as the Sales Agent may reasonably request.
(l) Required Filings Relating
to Placement of Placement Shares. The Company shall set forth in each Annual Report on Form 10-K and Quarterly Report on Form 10-Q
filed by the Company with the Commission in respect of any quarter in which sales of Placement Shares were made by or through the Sales
Agent under this Agreement, with regard to the relevant period, the amount of Placement Shares sold to or through the Sales Agent, the
Net Proceeds to the Company and the compensation payable by the Company to the Sales Agent with respect to such sales of Placement Shares.
To the extent that the filing of a prospectus supplement with the Commission with respect to any sales of Placement Shares becomes required
under Rule 424(b) under the Securities Act, the Company agrees that, on or before such dates as the Securities Act shall require, the
Company will (i) file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act,
which prospectus supplement will set forth, with regard to the relevant period, the amount of Placement Shares sold to or through the
Sales Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Sales Agent with respect to such Placement
Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange or market on which such sales were
effected as may be required by the rules or regulations of such exchange or market. The Company shall afford the Sales Agent and its counsel
with a reasonable opportunity to review and comment upon, shall consult with the Sales Agent and its counsel on the form and substance
of, and shall give due consideration to all such comments from the Sales Agent or its counsel on, any such filing prior to the issuance,
filing or public disclosure thereof; provided, however, that the Company shall not be required to submit for review (A) any portion of
any periodic reports filed with the Commission under the Exchange Act other than the specific disclosure relating to any sales of Placement
Shares and (B) any disclosure contained in periodic reports filed with the Commission under the Exchange Act if it shall have previously
provided the same disclosure for review in connection with a previous filing.
(m) Representation Dates;
Certificate. On or prior to the date the first Placement Notice is given hereunder and each time the Company (i) files the Prospectus
relating to the Placement Shares or amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares
(other than (A) a prospectus supplement filed in accordance with Section 7(l) of this Agreement or (B) a supplement or amendment
that relates to an offering of securities other than the Placement Shares) by means of a post-effective amendment, sticker, or supplement
but not by means of incorporation of document(s) by reference to the Registration Statement or the Prospectus relating to the Placement
Shares; (ii) files an annual report on Form 10-K under the Exchange Act (including any Form 10-K/A containing amended financial information
or a material amendment to the previously filed Form 10-K); (iii) files a quarterly report on Form 10-Q under the Exchange Act; or (iv)
files a current report on Form 8-K containing amended financial information (other than an earnings release, to “furnish”
information pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification
of certain properties as discontinued operations in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange
Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv) shall be a “Representation
Date”), the Company shall furnish the Sales Agent within three (3) Trading Days after each Representation Date with a certificate,
in the form attached hereto as Exhibit 7(m). The requirement to provide a certificate under this Section 7(m) shall be waived
for any Representation Date occurring at a time at which no Placement Notice is pending, which waiver shall continue until the earlier
to occur of the date the Company delivers a Placement Notice hereunder (which for such calendar quarter shall be considered a Representation
Date) and the next occurring Representation Date; provided, however, that such waiver shall not apply for any Representation
Date on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, if the Company subsequently decides to
sell Placement Shares following a Representation Date when the Company relied on such waiver and did not provide the Sales Agent with
a certificate under this Section 7(m), then before the Company delivers the Placement Notice or the Sales Agent sells any Placement
Shares, the Company shall provide the Sales Agent with a certificate, in the form attached hereto as Exhibit 7(m), dated the date
of the Placement Notice.
(n) Legal Opinions. On
or prior to the date the first Placement Notice is given hereunder, the Company shall cause to be furnished to the Sales Agent the written
opinion and negative assurance of Sichenzia Ross Ference Carmel LLP, as
counsel to the Company, or other counsel reasonably satisfactory to the Sales Agent (“SEC Counsel”), in each
case substantially in the forms previously agreed between the Company and the Sales Agent. Thereafter, within three (3) Trading Days after
each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which
no waiver is applicable pursuant to Section 7(m), and not more than once per calendar quarter, the Company shall cause to
be furnished to the Sales Agent the written opinions and negative assurance of SEC Counsel substantially in the forms previously agreed
between the Company and the Sales Agent, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended
or supplemented; provided, however, that if SEC Counsel has previously furnished to the Sales Agent such written opinions
and negative assurance of such counsel, in each case substantially in the forms previously agreed between the Company and the Sales Agent,
then SEC Counsel may, in respect of any future Representation Date, furnish the Sales Agent with a letter signed by such counsel (each,
a “Reliance Letter”) in lieu of such opinions and negative assurance of such counsel (as applicable) to the
effect that the Sales Agent may rely on the prior opinions and negative assurance of such counsel (as applicable) delivered pursuant to
this Section 7(n) to the same extent as if it were dated the date of such Reliance Letter (except that statements in such prior
opinions and negative assurance (as applicable) shall be deemed to relate to the Registration Statement and the Prospectus as amended
or supplemented to the date of such Reliance Letter).
(o) Comfort Letter. On
or prior to the date the first Placement Notice is given hereunder and within three (3) Trading Days after each subsequent Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver is applicable
pursuant to Section 7(m), other than a Representation Date under Section 7(m)(iii) or Section 7(m)(iv) unless
with respect to a Representation Date under Section 7(m)(iv) the Sales Agent reasonably requests delivery thereof, the Company
shall cause its independent accountants (or its prior independent accountants to the extent such independent accountants have audited
any of the financial statements in the Prospectus) to furnish the Sales Agent letters (the “Comfort Letters”),
dated the date that the Comfort Letter is delivered, in form and substance satisfactory to the Sales Agent, (i) confirming that they are
an independent registered public accounting firm within the meaning of the Securities Act, the Exchange Act and the rules and regulations
of the PCAOB and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation
S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information
and other matters ordinarily covered by accountants’ “comfort letters” to the Sales Agent in connection with registered
public offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort
Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified as
necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.
(p) CFO Certification.
On or prior to the date the first Placement Notice is given hereunder and within three (3) Trading Days after each subsequent Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver is applicable
pursuant to Section 7(m), the Company shall furnish the Sales Agent with certificates, signed on behalf of the Company by
its Chief Financial Officer (each, a “CFO Certificate”), dated the date that the CFO Certificate is delivered,
in form and substance satisfactory to the Sales Agent and its counsel, certifying as to such financial and statistical information, forward-looking
statements and other matters as the Sales Agent may reasonably request.
(q) Market Activities.
The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably
be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale
of the Common Stock or (ii) sell, bid for, or purchase Common Stock in violation of Regulation M, or pay anyone any compensation for soliciting
purchases of the Placement Shares other than the Sales Agent.
(r) Insurance. The Company
and its subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and covering such risks as is reasonable and
customary for the business in which it is engaged.
(s) Investment Company Act.
The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor its subsidiaries or, after giving
effect to the offering and sale of the Placement Shares and the application of proceeds therefrom as described in the Prospectus, will
be, an “investment company” within the meaning of such term under the Investment Company Act.
(t) Securities Act and Exchange
Act. The Company will use its best efforts to comply with all requirements imposed upon it by the Securities Act and the Exchange
Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Placement Shares as
contemplated by the provisions hereof and the Prospectus.
(u) No Offer to Sell.
Other than the Prospectus and an Issuer Free Writing Prospectus approved in advance by the Company and the Sales Agent in its capacity
as principal or agent hereunder, neither the Sales Agent nor the Company (including its agents and representatives, other than the Sales
Agent in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405
under the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to
buy Placement Shares hereunder.
(v) Sarbanes-Oxley Act.
The Company and its subsidiaries will use their reasonable best efforts to comply with all effective applicable provisions of the Sarbanes-Oxley
Act.
(w) Transfer Agent. The
Company shall maintain, at its sole expense, a registrar and transfer agent for the Common Stock.
8. Conditions
to the Sales Agent’s Obligations. The obligations of the Sales Agent hereunder with respect to a Placement will be subject to
the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the
Company of its obligations hereunder, to the completion by the Sales Agent of a due diligence review satisfactory to the Sales Agent in
its reasonable judgment, and to the continuing satisfaction (or waiver by the Sales Agent in its sole discretion) of the following additional
conditions:
(a) Registration Statement
Effective. The Registration Statement shall be effective and shall be available for the sale of all Placement Shares contemplated
to be issued by any Placement Notice which have not yet been issued and sold pursuant to such Registration Statement.
(b) Securities Act Filings
Made. The Company shall have filed with the Commission the ATM Prospectus pursuant to Rule 424(b) under the Securities Act not later
than the Commission’s close of business on the second Business Day following the date of this Agreement. All other filings with
the Commission required by Rule 424(b) or Rule 433 under the Securities Act to have been filed prior to the issuance of any Placement
Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424(b) (without reliance on
Rule 424(b)(8) of the Securities Act) or Rule 433, as applicable.
(c) No Material Notices.
None of the following events shall have occurred and be continuing: (i) receipt by the Company or any of its subsidiaries of any
request for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement
or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes
any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related
Prospectus or such documents so that, in the case of the Registration Statement, it will not contain any materially untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading
and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.
(d) No Misstatement or Material
Omission. The Sales Agent shall not have advised the Company that the Registration Statement or Prospectus, or any amendment or supplement
thereto, contains an untrue statement of fact that in the Sales Agent’s reasonable opinion is material, or omits to state a fact
that in the Sales Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make the statements
therein not misleading.
(e) Material Changes.
Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have
been any material adverse change in the authorized capital stock of the Company or any Material Adverse Change or any development that
could reasonably be expected to result in a Material Adverse Change, or any downgrading in or withdrawal of the rating assigned to any
of the Company’s securities (other than asset backed securities) by any rating organization or a public announcement by any rating
organization that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities),
the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment of the Sales
Agent (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable
or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated by this Agreement and
the Prospectus.
(f) Representation Certificate.
The Sales Agent shall have received the certificate required to be delivered pursuant to Section 7(m) on or before the date on
which delivery of such certificate is required pursuant to Section 7(m).
(g) Legal Opinion. The
Sales Agent shall have received the opinion and negative assurances of SEC Counsel required to be delivered pursuant Section 7(n)
on or before the date on which such delivery of such opinions and negative assurances is required pursuant to Section 7(n).
(h) Comfort Letter. The
Sales Agent shall have received the Comfort Letter required to be delivered pursuant Section 7(o) on or before the date on which
such delivery of such Comfort Letter is required pursuant to Section 7(o).
(i) CFO Certificate.
The Sales Agent shall have received the CFO Certificate required to be delivered pursuant to Section 7(p) on or before the date
on which delivery of such CFO Certificate is required pursuant to Section 7(p).
(j) Secretary’s Certificate.
On or prior to the date the first Placement Notice is given hereunder, the Sales Agent shall have received a certificate, signed on behalf
of the Company by its corporate Secretary, certifying as to (i) the certificate of incorporation of the Company (as the same may be amended
or restated from time to time), (ii) the bylaws of the Company (as the same may be amended or restated from time to time), and (iii) the
resolutions of the Board of Directors of the Company (or a committee thereof) authorizing the execution, delivery and performance of this
Agreement and the issuance of the Placement Shares and (iii) the incumbency of the officers duly authorized to execute this Agreement
and the other documents contemplated by this Agreement.
(k) No Suspension. Trading
in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have been delisted from the Exchange.
(l) Other Materials.
On each date on which the Company is required to deliver a certificate pursuant to Section 7(m), the Company shall have furnished
to the Sales Agent such appropriate further opinions, certificates, letters and documents as the Sales Agent may have reasonably requested.
All such opinions, certificates, letters and other documents shall have been in compliance with the provisions hereof. The Company will
furnish the Sales Agent with such conformed copies of such opinions, certificates, letters and other documents as the Sales Agent shall
have reasonably requested.
(m) Approval for Listing.
The Placement Shares shall either have been (i) approved for listing on the Exchange, subject only to notice of issuance, or (ii) the
Company shall have filed an application for listing of the Placement Shares on the Exchange at, or prior to, the issuance of any Placement
Notice.
(n) No Termination Event.
There shall not have occurred any event that would permit the Sales Agent to terminate this Agreement pursuant to Section 11(a).
(o) FINRA. The Sales
Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such department has determined to
raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the sale of the Placement Shares
pursuant to this Agreement.
9. Indemnification
and Contribution.
(a) Company Indemnification.
The Company agrees to indemnify and hold harmless the Sales Agent, the directors, officers, members, partners, employees and agents of
the Sales Agent, each Sales Agent Affiliate, and the directors, officers, members, shareholders, partners, employees and agents of each
Sales Agent Affiliate, if any, from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited
to, any and all reasonable investigative, legal and other expenses incurred in connection with, and any and all amounts paid in settlement
(in accordance with Section 9(c)) of, any action, suit or proceeding between any of the indemnified parties and any indemnifying
parties or between any indemnified party and any third party, or otherwise, or any claim asserted), as and when incurred, to which the
Sales Agent, or any such person, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law
or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based,
directly or indirectly, on (x) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement
or the Prospectus or any amendment or supplement thereto or in any Issuer Free Writing Prospectus or in any application or other document
executed by or on behalf of the Company or based on written information furnished by or on behalf of the Company filed in any jurisdiction
in order to qualify the Common Stock under the securities laws thereof or filed with the Commission, (y) the omission or alleged omission
to state in any such document a material fact required to be stated in it or necessary to make the statements in it not misleading or
(z) any breach or alleged breach by any of the indemnifying parties of any of their respective representations, warranties and agreements
contained in this Agreement; provided, however, that this indemnity agreement shall not apply to the extent that a court of competent
jurisdiction has made a finding, not subject to appeal or modification, that such loss, claim, liability, expense or damage arises from
the sale of the Placement Shares pursuant to this Agreement and is caused directly by an untrue statement or omission made in reliance
upon and in strict conformity with written information relating to the Sales Agent and furnished to the Company by the Sales Agent expressly
for inclusion in any document as described in clause (x) of this Section 9(a). This indemnity agreement will be in addition to
any liability that the Company might otherwise have.
(b) The Sales Agent Indemnification.
The Sales Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company that signed the Registration
Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act or (ii) is controlled by or is under common control with the Company (each, a “Company Affiliate”)
from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable
investigative, legal and other expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section
9(c)) of, any action, suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified
party and any third party, or otherwise, or any claim asserted), as and when incurred, to which any such Company Affiliate, may become
subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise,
insofar as a court of competent jurisdiction has made a finding, not subject to appeal or modification, that such losses, claims, liabilities,
expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or the Prospectus or any amendment or supplement thereto, or (y) the omission or alleged
omission to state in any such document a material fact required to be stated in it or necessary to make the statements in it not misleading;
provided, however, that this indemnity agreement shall apply only to the extent that such loss, claim, liability, expense
or damage is caused directly by an untrue statement or omission made in reliance upon and in strict conformity with written information
relating to the Sales Agent and furnished to the Company by the Sales Agent expressly for inclusion in any document as described in clause
(x) of this Section 9(b).
(c) Procedure. Any party
that proposes to assert the right to be indemnified under this Section 9 will, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section
9, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission
so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified
party otherwise than under this Section 9 and (ii) any liability that it may have to any indemnified party under the foregoing
provision of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of substantive rights
or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party
of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly
with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the
indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable
costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense
of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying
party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it
or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential
conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which
case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the
indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice
of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more
than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees,
disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will
not, in any event, be liable for any settlement of any action or claim effected without its written consent. No indemnifying party shall,
without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending
or threatened claim, action or proceeding relating to the matters contemplated by this Section 9 (whether or not any indemnified
party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from
all liability arising or that may arise out of such claim, action or proceeding.
(d) Contribution. In
order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs
of this Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the
Sales Agent, the Company and the Sales Agent will contribute to the total losses, claims, liabilities, expenses and damages (including
any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Sales
Agent, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration
Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Sales Agent may be subject
in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Sales Agent
on the other. The relative benefits received by the Company on the one hand and the Sales Agent on the other hand shall be deemed to be
in the same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company
bear to the total compensation received by the Sales Agent from the sale of Placement Shares on behalf of the Company. If, but only if,
the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in
such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative
fault of the Company, on the one hand, and the Sales Agent, on the other, with respect to the statements or omission that resulted in
such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with
respect to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or
the Sales Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Sales Agent agree that it would not be just and equitable if contributions pursuant to this
Section 9(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account
the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability,
expense, or damage, or action in respect thereof, referred to above in this Section 9(d) shall be deemed to include, for the
purpose of this Section 9(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim to the extent consistent with Section 9(c) hereof. Notwithstanding the foregoing provisions
of this Section 9(d), the Sales Agent shall not be required to contribute any amount in excess of the commissions received by it
under this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section
9(d), any person who controls a party to this Agreement within the meaning of the Securities Act will have the same rights to contribution
as that party (and any officers, directors, members, partners, employees or agents of the Sales Agent and each broker dealer affiliate
of the Sales Agent will have the same rights to contribution as the Sales Agent), and each officer of the Company who signed the Registration
Statement and each director of the Company will have the same rights to contribution as the Company, subject in each case to the provisions
hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect
of which a claim for contribution may be made under this Section 9(d), will notify any such party or parties from whom contribution
may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other
obligation it or they may have under this Section 9(d) except to the extent that the failure to so notify such other party materially
prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant
to the last sentence of Section 9(c) hereof, no party will be liable for contribution with respect to any action or claim settled
without its written consent if such consent is required pursuant to Section 9(c) hereof.
10. Representations
and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 9 of this Agreement and
all representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of their respective
dates, regardless of (i) any investigation made by or on behalf of the Sales Agent, any controlling person of the Sales Agent, or the
Company (or any of their respective officers, directors, members or controlling persons), (ii) delivery and acceptance of the Placement
Shares and payment therefor or (iii) any termination of this Agreement.
11. Termination.
(a) The Sales Agent shall have
the right by giving notice as hereinafter specified at any time to terminate this Agreement if (i) any Material Adverse Change, or any
development that could reasonably be expected to result in a Material Adverse Change has occurred that, in the reasonable judgment of
the Sales Agent, may materially impair the ability of the Sales Agent to sell the Placement Shares hereunder, (ii) the Company shall have
failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in the
case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion, or letter required under
Sections 7(m), 7(n), 7(o), 7(p) or 7(q), the Sales Agent’s right to terminate shall not arise
unless such failure to deliver (or cause to be delivered) continues for more than thirty (30) days from the date such delivery was required,
(iii) any other condition of the Sales Agent’s obligations hereunder is not fulfilled, or (iv) any suspension or limitation of trading
in the Placement Shares or in securities generally on the Exchange shall have occurred (including automatic halt in trading pursuant to
market-decline triggers, other than those in which solely program trading is temporarily halted), or a major disruption of securities
settlements or clearing services in the United States shall have occurred, or minimum prices for trading have been fixed on the Exchange.
Any such termination shall be without liability of any party to any other party except that the provisions of Section 7(g) (Expenses),
Section 9 (Indemnification and Contribution), Section 10 (Representations and Agreements to Survive Delivery), Section
11(f), Section 16 (Applicable Law; Consent to Jurisdiction) and Section 17 (Waiver of Jury Trial) hereof shall remain
in full force and effect notwithstanding such termination. If the Sales Agent elects to terminate this Agreement as provided in this Section
11(a), the Sales Agent shall provide the required notice as specified in Section 12 (Notices).
(b) The Company shall have the
right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its sole discretion
at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party except that
the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section 17
hereof shall remain in full force and effect notwithstanding such termination.
(c) The Sales Agent shall have
the right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its sole
discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party
except that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 hereof shall remain in full force and effect notwithstanding such termination.
(d) Unless earlier terminated
pursuant to this Section 11, this Agreement shall automatically terminate upon the earlier to occur of (i) issuance and sale of
all of the Placement Shares to or through the Sales Agent on the terms and subject to the conditions set forth herein and (ii) the expiration
of the Registration Statement on the third (3rd) anniversary of the initial effective date of the Registration Statement pursuant
to Rule 415(a)(5) under the Securities Act; provided that the provisions of Section 7(g), Section 9, Section 10,
Section 11(f), Section 16 and Section 17 hereof shall remain in full force and effect notwithstanding such termination.
(e) This Agreement shall remain
in full force and effect unless terminated pursuant to Sections 11(a), (b), (c) or (d) above or otherwise
by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases
be deemed to provide that Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 shall remain in full force and effect.
(f) Any termination of this
Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination
shall not be effective until the close of business on the date of receipt of such notice by the Sales Agent or the Company, as the case
may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such termination shall not become
effective until the close of business on such Settlement Date and such Placement Shares shall settle in accordance with the provisions
of this Agreement.
12. Notices. All notices
or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement shall
be in writing, unless otherwise specified, and if sent to the Sales Agent, shall be delivered to:
Dawson James Securities, Inc.
101 North Federal Highway
Suite 600
Boca Raton, Fl 33432
Attention:
Email:
with a copy (which shall not constitute notice)
to:
ArentFox Schiff LLP
1717 K Street, NW
Washington, DC 20006
Attention: Ralph V. De Martino, Esq.
Email: rdemartino@safslaw.com
and if to the Company, shall be delivered to:
Healthcare Triangle, Inc.
7901 Stoneridge Drive
Suite 220
Pleasanton, CA 94588
Attention: Thyagarajan Ramachandran
Email: rt@healthcaretriangle.com
with a copy (which shall not constitute notice)
to:
Sichenzia Ross Ference Carmel LLP
1185 Avenue of the Americas, 31st Floor
New York, NY 10036
Attention: Jeffrey Wofford, Esq.
Email: jwofford@srfc.law
Each party may change such
address for notices by sending to the other party to this Agreement written notice of a new address for such purpose. Each such notice
or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to
follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business
Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day
actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes
of this Agreement, “Business Day” shall mean any day on which the Exchange and commercial banks in the City
of New York are open for business.
An electronic communication
(“Electronic Notice”) shall be deemed written notice for purposes of this Section 12 if sent to the electronic
mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives confirmation of receipt by the receiving party (other than pursuant to auto-reply). Any party receiving Electronic
Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.
13. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Sales Agent and their respective
successors and permitted assigns and, as to Sections 5(b) and 9, the other indemnified parties specified therein. References
to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing
in this Agreement, express or implied, is intended to confer upon any other person any rights, remedies, obligations or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under
this Agreement without the prior written consent of the other party; provided, however, that the Sales Agent may assign
its rights and obligations hereunder to an affiliate of the Sales Agent without obtaining the Company’s consent.
14. Adjustments
for Share Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted to
take into account any share split, share dividend or similar event effected with respect to the Common Stock.
15. Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued
pursuant hereto) and any other writing entered into by the parties relating to this Agreement constitutes the entire agreement and supersedes
all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto. Neither this Agreement
nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Sales Agent. In the event that
any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable
as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent
that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal
or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder
of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement.
16. Applicable
Law; Consent to Jurisdiction.
(a) This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to the principles of
conflicts of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in
the City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection with any transaction contemplated
hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested)
to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law.
(b) The Sales Agent
and the Company agree that any suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in any federal or New York State court located in the City and County of New York (a “New York Court”),
and waive any objection which they may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submit to
the non-exclusive jurisdiction of such courts in any suit, action or proceeding. The Company hereby irrevocably designates and appoints
[Sichenzia Ross Ference Carmel LLP] (the “Process Agent”) as its authorized agent upon whom process may be served in
any claim brought against the Company, it being understood that the designation and appointment of the Process Agent as such authorized
agent shall become effective immediately without any further action on the part of the Company. The Company represents to the Sales Agent
that it has notified the Process Agent of such designation and appointment and that the Process Agent has accepted the same. The Company
hereby irrevocably authorizes and directs the Process Agent to accept such service. The Company further agrees that service of process
upon the Process Agent and written notice of said service to the Company, mailed by first-class mail and delivered to the Process Agent,
shall be deemed in every respect effective service of process upon the Company in any such claim. Nothing herein shall affect the right
of the Sales Agent, its partners, directors, officers and members, any person who controls the Sales Agent within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act, or any “affiliate” (within the meaning of Rule 405 under the Securities
Act) of the Sales Agent, or the successors and assigns of all of the foregoing persons, to serve process in any other manner permitted
by law. The provisions of this Section 16 shall survive any termination of this Agreement, in whole or in part.
17. Waiver
of Jury Trial. The Company and the Sales Agent each hereby irrevocably waives any right it may have to a trial by jury in respect
of any claim based upon or arising out of this Agreement or any transaction contemplated hereby.
18. Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) the Sales Agent is acting
solely as agent in connection with the sale of the Placement Shares contemplated by this Agreement and the process leading to such transactions,
and no fiduciary or advisory relationship between the Company or any of its respective affiliates, stockholders (or other equity holders),
creditors or employees or any other party, on the one hand, and the Sales Agent, on the other hand, has been or will be created in respect
of any of the transactions contemplated by this Agreement, irrespective of whether the Sales Agent has advised or is advising the Company
on other matters, and the Sales Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement,
except the obligations expressly set forth in this Agreement;
(b) the Company is capable of
evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement;
(c) the Sales Agent has not
provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement, and the Company
has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;
(d) the Company has been advised
and is aware that the Sales Agent and its affiliates are engaged in a broad range of transactions which may involve interests that differ
from those of the Company and that the Sales Agent has no obligation to disclose such interests and transactions to the Company by virtue
of any fiduciary, advisory or agency relationship; and
(e) the Company waives, to the
fullest extent permitted by law, any claims it may have against the Sales Agent, for breach of fiduciary duty or alleged breach of fiduciary
duty and agrees that the Sales Agent shall have no liability (whether direct or indirect, in contract, tort or otherwise) to the Company
in respect of such a fiduciary claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including
stockholders, partners, employees or creditors of the Company.
19. Use
of Information. The Sales Agent may not provide any information gained in connection with this Agreement and the transactions contemplated
by this Agreement, including due diligence, to any third party other than its legal counsel advising it on this Agreement unless expressly
approved by the Company in writing.
20. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile transmission.
21. Effect
of Headings; Knowledge of the Company. The section and Exhibit headings herein are for convenience only and shall not affect the construction
hereof. All references in this Agreement to the “knowledge of the Company” or the “Company’s knowledge”
or similar qualifiers shall mean the actual knowledge of the directors and officers of the Company, after due inquiry.
22. Definitions.
As used in this Agreement, the following term has the meaning set forth below:
(a) “Applicable Time”
means the date of this Agreement, each Representation Date, each date on which a Placement Notice is given, each Point of Sale, and each
Settlement Date.
[Remainder of Page Intentionally Blank]
If the foregoing correctly
sets forth the understanding between the Company and the Sales Agent, please so indicate in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement between the Company and the Sales Agent.
Very
truly yours,
HEALTHCARE
TRIANGLE, INC.
By:
Name: Thyagarajan
Ramachandran
Title: Chief
Financial Officer
ACCEPTED
as of the date first-above written:
DAWSON
JAMES SECURITIES, INC.
By:
Name:
Title:
SCHEDULE 1
Form of Placement Notice
From: Healthcare Triangle, Inc.
To: Dawson James Securities, Inc.
Attention: [●]
Subject: Placement Notice
Date: _______________,
202__
Ladies and Gentlemen:
Pursuant to the terms and
subject to the conditions contained in the Sales Agreement (the “Sales Agreement”) between Healthcare Triangle,
Inc., a Delaware corporation (the “Company”), and Dawson James Securities, Inc. (the “Sales Agent”),
dated January 4, 2024, the Company hereby requests that the Sales Agent sell up to _______ shares of the Company’s common stock,
par value $0.00001 per share (the “Placement Shares”), at a minimum market price of $________ per share, during
the time period beginning [month, day, time] and ending [month, day, time] [and with no more than ___________ Placement Shares sold in
any one Trading Day].
[The Company may include such
other sale parameters as it deems appropriate.]
Capitalized terms used and
not defined herein shall have the respective meanings assigned to them in the Sales Agreement.
SCHEDULE 2
Notice Parties
Healthcare Triangle, Inc.
rt@healthcaretriangle.com
With copies to:
jigna.s@healthcaretriangle.com
The Sales Agent
InvestmentBanking@DawsonJames.com
With copies to:
jhopkins@dawsonjames.com
and
cwachowiz@dawsonjames.com
SCHEDULE 3
Compensation
The Company shall pay to the Sales Agent in cash,
upon each sale of Placement Shares through the Sales Agent pursuant to this Agreement, an amount equal to 3.0% of the aggregate gross
proceeds from each sale of Placement Shares.*
* The
foregoing rate of compensation shall not apply when the Sales Agent purchases Placement Shares on a principal basis, in which case the
Company may sell the Placement Shares to the Sales Agent as principal at a price to be mutually agreed upon by the Company and the Sales
Agent at the relevant Point of Sale pursuant to the applicable Placement Notice (it being hereby acknowledged and agreed that the Sales
Agent shall be under no obligation to purchase Placement Shares on a principal basis pursuant to the Sales Agreement, except as otherwise
agreed by the Sales Agent and the Company in writing and expressly set forth in a Placement Notice).
Exhibit 7(m)
OFFICER CERTIFICATE
The undersigned, the duly
qualified and appointed Chief Financial Officer of Healthcare Triangle, Inc., a Delaware corporation (the “Company”),
does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(m) of the Sales Agreement, dated January
4, 2024 (the “Sales Agreement”), between the Company and Dawson James Securities, Inc., that:
(i) the
representations and warranties of the Company in Section 6 of the Sales Agreement (A) to the extent such representations and warranties
are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Change, are true and correct
on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations
and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B) to the extent such representations
and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects as of the date hereof
as if made on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof except for those
representations and warranties that speak solely as of a specific date and which were true and correct as of such date; and;
(ii) the
Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Sales Agreement
at or prior to the date hereof;
(iii) as
of the date hereof, (i) the Registration Statement does not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein not misleading, (ii) the Prospectus does not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading and (iii) no event has occurred as a result
of which it is necessary to amend or supplement the Registration Statement or the Prospectus in order to make the statements therein not
untrue or misleading for clauses (i) and (ii) above, respectively, to be true and correct;
(iv) there
has been no Material Adverse Change since the date as of which information is given in the Prospectus, as amended or supplemented;
(v) the
Company will not be in possession of any material non-public information at the time of delivery of any Placement Notice and/or as long
as such Placement Notice is effective; and
(vi) the
aggregate offering price of the Placement Shares that may be issued and sold pursuant to the Sales Agreement and the maximum number or
amount of Placement Shares that may be sold pursuant to the Sales Agreement have been duly authorized by the Company’s board of
directors or a duly authorized committee thereof.
Terms used herein and not defined herein have
the meanings ascribed to them in the Sales Agreement.
| Dated: January 4, 2024 |
By: |
|
| |
Name: |
Thyagarajan Ramachandran |
| |
Title: |
Chief Financial Officer |
January 4, 2024
Healthcare Triangle, Inc.
7901 Stoneridge Drive, Suite 220
Pleasanton, CA 94588
Re: Healthcare Triangle, Inc. - Registration
Statement on Form S-3 with respect to an indeterminate amount of securities
Ladies and Gentlemen:
We have acted as counsel to Healthcare Triangle,
Inc., a Delaware corporation (the “Company”), in connection with the filing by the Company with the Securities and
Exchange Commission (the “Commission”) of a Registration Statement on Form S-3 (the “Registration Statement”)
filed with the Commission on January 4, 2024, relating to the proposed offer and sale from time to time pursuant to Rule 415 under the
Securities Act of up to $50,000,000 of the Company’s securities, consisting of an indeterminate amount of: (i) senior and subordinated
debt securities of the Company (the “Debt Securities”) issued pursuant to one or more indentures (each, an “Indenture”),
between the Company and one or more financial institutions designated as trustee, (ii) shares of the Company’s preferred stock,
par value $0.00001 per share (the “Preferred Stock”), (iii) warrants (the “Warrants”) to purchase
Common Stock, Preferred Stock and/or Debt Securities, issued pursuant to one or more warrant agreements (each, a “Warrant Agreement”)
between the Company and a warrant agent to be selected by the Company prior to the issuance of the applicable Warrants, (iv) shares of
the Company’s common stock, par value $0.00001 per share (the “Common Stock”), (v) rights (the “Rights”)
to purchase Common Stock, Preferred Stock and/or Debt Securities, and (vi) units (the “Units”) comprised of one or
more shares of Common Stock, shares of Preferred Stock, Debt Securities, Warrants and/or Rights. The Debt Securities, Preferred Stock,
Common Stock, Warrants, Rights and Units are hereinafter referred to as the “Securities.” The Registration Statement
will be supplemented from time to time by one or more prospectus supplements.
The law covered by the opinions expressed herein
is limited to the laws of the State of Delaware.
I. DOCUMENTS AND MATTERS EXAMINED.
In connection with this opinion letter, we have
examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents:
| a. | | The Registration
Statement. |
| b. | | The following documents
(the “Organization Documents”) certified to us by an officer of the Company as being complete and in full force and
effect as of the date of this letter: (i) the second amended and restated certificate of incorporation of the Company and (b) the Bylaws
of the Company. |
| c. | | Records certified
to us by an officer of the Company as constituting the records of all proceedings and actions of the Board of Directors of the Company
relevant to the opinions set forth in this letter. |
II. CERTAIN ASSUMPTIONS.
For purposes of this opinion letter, we have relied
on the following assumptions:
| a. | | Each document examined
by us is accurate and complete, each such document that is an original is authentic, each such document that is a copy conforms to an
authentic original, and all signatures on each such document are genuine. If any such signature is electronic, each applicable party
has agreed to conduct the relevant transactions by electronic means within the meaning of applicable law. |
| b. | | All public records
(including their due and proper indexing) are accurate and complete. |
| c. | | All representations
and statements contained in all documents, instruments, and certificates that we have examined in connection with this opinion letter,
including the statements contained in the Opinion Certificate, are accurate and complete. |
| d. | | Each natural person
has sufficient legal capacity to carry out that person’s role in the transactions contemplated by the Registration Statement. |
| e. | | At all relevant
times after the date of this opinion letter: (i) the Registration Statement, and any amendments thereto, will have become effective;
(ii) a prospectus supplement will have been prepared and filed with the Commission describing the Securities offered thereby; (iii) all
Securities will be issued and sold in compliance with the applicable provisions of the Securities Act of 1933, as amended, the Trust
Indenture Act of 1939, as amended, and the securities or blue sky laws of various states and in the manner stated in the Registration
Statement and the applicable prospectus supplement; (iv) the Company shall continue exist as a corporation duly incorporated under Delaware
law; (v) the Company will have taken all necessary corporate action, in compliance with its certificate of incorporation, bylaws and
Delaware law, to approve the issuance and terms of the Securities, including without limitation the making of a finding by the Board
of Directors of the Company that the consideration received or to be received for the Common Stock or the Preferred Stock upon its issuance
is adequate; (vi) at the time of any offering of Common Stock or Preferred Stock, that the Company will have such number of shares of
Common Stock or Preferred Stock, as set forth in such offering or sale, authorized and available for issuance; (vii) all Securities issuable
upon conversion, exchange, settlement or exercise of any Securities being offered will have been duly authorized, created and, if appropriate,
reserved for issuance upon such conversion, exchange, settlement or exercise; (viii) the Indentures, Warrant Agreements or other agreements
with respect to the Securities as described in the Registration Statement and the applicable prospectus supplement, and as filed as an
exhibit to or incorporated by reference in the Registration Statement, will have been duly authorized, executed and delivered by the
parties thereto; (ix) as appropriate, the Securities will have been duly executed and authenticated in accordance with the applicable
agreement or Indenture; and (x) the Company shall not have amended the Organization Documents in any manner material to the opinions
set forth in this opinion letter. |
III. OPINIONS.
Based on and subject to the preceding examinations,
assumptions and other provisions, and also subject to the qualifications, exclusions and other limitations stated or referred to in this
opinion letter, we are of the opinion that the Preferred Stock, when sold and after receipt of payment therefor, and the Common Stock,
when sold and after receipt of payment therefor or when issued upon conversion of any of the Debt Securities or upon the exercise of any
Warrants or Rights, will be validly issued, fully paid and non-assessable.
IV. CERTAIN QUALIFICATIONS AND EXCLUSIONS.
The opinions set forth in this opinion letter
are subject to the following qualifications and exclusions:
| a. | | Our opinions may
be limited by the effects of bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent or avoidable transfer or obligation,
recharacterization of transactions and other similar laws affecting the rights and remedies of creditors generally, and the effects of
general principles of equity, whether considered in a proceeding at law or in equity. |
| b. | | We express no opinion
with respect to the effect of, or compliance with (i) rules, regulations or decisions (A) of counties, towns, municipalities and
special political subdivisions or (B) that as a matter of customary practice are understood to be covered only when expressly referenced
by the opinion giver, including the “Blue Sky” securities laws of any state; or (ii) federal law, rules, regulations or decisions. |
This opinion letter is to be interpreted in accordance
with customary practice as to the matters addressed, the meaning of the language used and the scope and nature of the work we have performed.
The opinions set forth above are expressly limited
to the matters stated. No opinion is implied or may be inferred beyond what is explicitly stated in this opinion letter. Without limiting
the foregoing, we render no opinion with respect to (a) the enforceability of the Debt Securities, Warrants, Rights or Units, or (b) any
matter pertaining to the contents of the Registration Statement other than as expressly stated herein.
This opinion letter is delivered as of its date
and without any undertaking to advise you of any changes of law or fact that occur after the date of this opinion letter even though the
changes may affect the legal analysis, a legal conclusion or information confirmed in this opinion letter. We have no responsibility or
obligation to update this opinion letter, to consider its applicability or correctness as to any person other than its addressee, or to
take into account changes in law, facts or any other development of which we may later become aware.
We hereby consent to the filing of this opinion
of counsel as an exhibit to the Registration Statement. We also consent to the reference to our Firm under the heading “Legal Matters”
in the prospectus or any supplement thereto forming a part of the Registration Statement. In giving this consent, we do not hereby admit
that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules
and regulations of the Commission thereunder.
Very Truly Yours,
/s/ Sichenzia Ross Ference Carmel LLP
Sichenzia
Ross Ference Carmel LLP
1185
AVENUE OF THE AMERICAS | 31ST FLOOR | NEW YORK, NY | 10036 T (212) 930-9700 | F (212) 930-9725 | WWW.SRFC.LAW
January 4, 2024
Healthcare Triangle, Inc.
7901 Stoneridge Drive, Suite 220
Pleasanton, CA 94588
Re: Registration Statement on Form S-3
Dear Board of Directors:
We have acted as counsel to
Healthcare Triangle, Inc., a Delaware corporation (the “Company”), in connection with the filing by the Company with
the Securities and Exchange Commission (the “Commission”) of a Registration Statement on Form S-3 (the “Registration
Statement”) filed with the Commission on January 4, 2024, relating to the proposed offer and sale from time to time pursuant
to Rule 415 under the Securities Act of up to $50,000,000 of the Company’s securities, consisting of an indeterminate amount of:
(i) senior and subordinated debt securities of the Company (the “Debt Securities”) issued pursuant to one or more indentures
(each, an “Indenture”), between the Company and one or more financial institutions designated as trustee, (ii) shares
of the Company’s preferred stock, par value $0.00001 per share (the “Preferred Stock”), (iii) warrants (the “Warrants”)
to purchase Common Stock, Preferred Stock and/or Debt Securities, issued pursuant to one or more warrant agreements (each, a “Warrant
Agreement”) between the Company and a warrant agent to be selected by the Company prior to the issuance of the applicable Warrants,
(iv) shares of the Company’s common stock, par value $0.00001 per share (the “Common Stock”), (v) rights (the
“Rights”) to purchase Common Stock, Preferred Stock and/or Debt Securities, and (vi) units comprised of one or more
shares of Common Stock, shares of Preferred Stock, Debt Securities, Warrants and/or Rights. The Registration Statement will be supplemented
from time to time by one or more prospectus supplements.
A separate opinion has been
rendered in connection with certain matters relating to the Registration Statement, which is being filed as Exhibit 5.1 thereto.
With respect to certain matters
in connection with the proposed offer and sale by the Company of an aggregate of up to $7,200,000 of shares (the “Shares”)
of the Common Stock, pursuant to the Registration Statement, the prospectus and a prospectus supplement relating to the offer and sale
of the Shares (the prospectus and the prospectus supplement shall collectively be referred to as the “Sales Prospectus”).
We understand that the Shares are proposed to be offered and sold by the Company through Dawson James Securities, Inc. as sales agent
(the “Agent”), pursuant to that certain ATM Sales Agreement dated as of January 4, 2024, by and between the Sales Agent
and the Company (the “Sales Agreement”).
In our capacity as your counsel
in connection with such registration, we are familiar with the proceedings taken and proposed to be taken by the Company in connection
with the preparation and filing of the Registration Statement, the preparation and filing of the Sales Prospectus, the negotiation and
execution of the Sales Agreement, and the authorization, issuance and sale of the Shares.
In connection with the preparation
of this supplemental opinion, we have examined such documents and considered such questions of law as we have deemed necessary or appropriate.
We have assumed the authenticity of all documents submitted to us as originals, the conformity to originals of all documents submitted
to us as copies thereof and the genuineness of all signatures.
Based
on the foregoing, we are of the opinion that the Shares have been duly authorized and, when issued and sold in the manner described in
the Registration Statement, the Sales Prospectus and the Sales Agreement, will be validly issued, fully paid and non-assessable.
The
opinions expressed herein are limited exclusively to the laws of the State of New York, and applicable provisions of the Delaware General
Corporation Law, in each case as currently in effect, and we are expressing no opinion as to the effect of the laws of any other jurisdiction.
This supplemental opinion
is for your benefit in connection with the offer and sale of the Shares pursuant to the Registration Statement and may be relied upon
by you and by persons entitled by law to rely upon it pursuant to the applicable provisions of the U.S. federal securities laws. We hereby
consent to the use of this opinion as Exhibit 5.2 to the Registration Statement, and further consent to the use of our name under the
caption “Legal Matters” in the Sales Prospectus which is part of the Registration Statement. In giving such consent, we do
not hereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules
and regulations thereunder.
This opinion letter has been
prepared in accordance with the customary practice of lawyers who regularly give, and lawyers who regularly advise opinion recipients
concerning, opinions of the type contained herein.
This opinion is rendered as
of the date hereof and based solely on our understanding of facts in existence as of such date after the examination described in this
supplemental opinion. We assume no obligation to advise you of any fact, circumstance, event or change in the law or the facts that may
hereafter be brought to our attention whether or not such occurrence would affect or modify the opinions expressed herein.
Very Truly Yours,
/s/ Sichenzia Ross Ference Carmel LLP
Sichenzia
Ross Ference Carmel LLP
1185
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CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We hereby consent to the incorporation in this
Registration Statement on Form S-3 of our report dated January 3, 2024, relating to the financial statements of Healthcare Triangle, Inc.
as of December 31, 2022 and 2021 and to all references to our firm included in this Registration Statement.
Certified Public Accountants
Lakewood, CO
January 4, 2024
Calculation of Filing Fee Tables
S-3
(Form Type)
Healthcare Triangle, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered and Carry Forward
Securities
| | |
Security
Type | |
Security
Class Title | |
Fee
Calculation
or Carry
Forward
Rule | |
Amount
Registered(1) | |
Proposed
Maximum
Offering
Price Per
Share (2) | |
Maximum
Aggregate
Offering
Price( | |
Fee Rate | |
Amount of
Registration
Fee |
| Fees to be Paid | |
Equity | |
| Common Stock, $0.00001 par value per share(3) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Equity | |
| Preferred Stock, $0.00001 par value per share(4) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Other | |
| Warrants(5) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Other | |
| Units(6) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Debt | |
| Debt Securities(7) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Other | |
| Rights(8) | | |
| 457 | (o) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| | |
Unallocated (Universal) Shelf | |
| (1 | ) | |
| 457 | (o) | |
$ | 50,000,000 | | |
| — | | |
$ | 50,000,000 | | |
| 0.0001476 | | |
$ | 7,380 | |
| Total Offering Amounts | |
| |
| | | |
| | | |
| | | |
| | | |
$ | 50,000,000 | | |
| | | |
$ | 7,380 | |
| Net Fee Due | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
$ | 7,380 | |
| (1) | | The table lists
each class of securities being registered and the aggregate proceeds to be raised in the offering and does not specify by each class
information as to the amount to be registered or the proposed maximum offering price per security. Any securities registered hereunder
for the offering may be sold separately or together in combination with other securities registered hereunder for the offering. Any securities
registered hereunder may be sold separately or as units with any other securities registered hereunder. In no event will the aggregate
offering price of all securities issued from time to time in the offering pursuant to the registration statement of which this Exhibit
107 is a part, exceed $50,000,000, inclusive of any exercise price thereof. Pursuant to Rule 416 under the Securities Act of 1933, as
amended (the “Securities Act”), the securities being registered hereunder also include such indeterminate number of securities
as may be issued from time to time with respect to the securities being registered hereunder as a result of stock splits, stock dividends
or similar transactions. |
| (2) | | The proposed maximum
offering price per security will be determined from time to time by the registrant in connection with the issuance by the registrant
of the securities registered hereunder and is not specified as to each class of security pursuant to Instruction 2.A(iii)(b) of Item
16(b) of Form S-3 under the Securities Act. |
| (3) | | Including such
indeterminate amount of common stock as may be issued from time to time at indeterminate prices or upon conversion of debt securities,
preferred stock registered hereby or upon exercise of warrants registered hereby or upon exercise of rights registered hereby, as the
case may be. In the event of a stock split, stock dividend or recapitalization involving the common stock, the number of shares registered
shall automatically be adjusted to cover the additional shares of common stock issuable pursuant to Rule 416 under the Securities Act. |
| (4) | | Including such
indeterminate amount of preferred stock as may be issued from time to time at indeterminate prices or upon conversion of debt securities,
preferred stock registered hereby or upon exercise of warrants registered hereby or upon exercise of rights registered hereby, as the
case may be. |
| (5) | | Warrants may be
sold separately or together with any of the securities registered hereby and may be exercisable for shares of common stock, preferred
stock, debt securities or units registered hereby. Because the warrants will provide a right only to purchase such securities offered
hereunder, no additional registration fee is required. |
| (6) | | Because the units
will provide a right only to purchase such securities offered hereunder, no additional registration fee is required. |
| (7) | | Including such
indeterminate principal amount of debt securities as may be issued from time to time at indeterminate prices or upon exercise of warrants
or rights registered hereby, as the case may be. |
| (8) | | Because the rights
will provide a right only to purchase such securities offered hereunder, no additional registration fee is required. |
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