Balance Sheet Components

6 Months Ended

Jul. 31, 2022

Note 4: Balance Sheet Components

The following sections and tables provide details of selected balance sheet items (in thousands):

Inventories


	As of
	July 31, 2022		January 31, 2022
Finished goods	$	12,196	$	10,452
Raw materials		8,879		3,389
Total inventory	$	21,075	$	13,841

Other current and non-current assets


	As of
	July 31, 2022		January 31, 2022
Deferred sales commissions, current	$	7,036	$	6,395
Inventory prepayments		2,516		1,462
Convertible note receivable (see "GTC" below)		1,865		1,773
Prepaid expenses and other		3,551		3,968
Total other current assets	$	14,968	$	13,598

Deferred sales commissions, non-current	$	13,396	$	13,228
Other assets		1,736		647
Total other non-current assets	$	15,132	$	13,875

Customer Acquisition Costs. Amortization expense for deferred sales commissions was $1.8 million and $1.4 million for the three months ended July 31, 2022 and 2021, respectively, and $3.6 million and $2.8 million for the six months ended July 31, 2022 and 2021, respectively. There was no impairment in relation to the costs capitalized for the periods presented.

Global Telecom Corporation (“GTC”). In December 2018, the Company invested $1.3 million in cash in GTC, a privately-held technology company, in exchange for a convertible promissory note that will convert to shares of GTC stock upon the occurrence of certain future events. As amended, the promissory note and accrued interest is due and payable upon the Company’s demand at any time after September 30, 2022. GTC is a variable interest entity for accounting purposes and the Company does not consolidate GTC into its financial statements because the Company is not the primary beneficiary. As of July 31, 2022, the Company’s maximum exposure to loss is equal to the carrying value of the convertible note receivable of $1.9 million, including accrued interest. During the six months ended July 31, 2022, the Company made total payments to GTC of approximately $2.3 million for inventory purchases and related shipping costs. As of July 31, 2022, the Company did not have any non-cancelable inventory purchase commitments to GTC.

Accrued expenses and other current liabilities


	As of
	July 31, 2022		January 31, 2022
Payroll and related expenses	$	8,907	$	10,853
Regulatory fees and taxes		3,991		3,933
Short-term operating lease liabilities		3,711		3,260
Customer-related liabilities		1,457		1,587
Other		4,838		3,190
Total accrued expenses and other current liabilities	$	22,904	$	22,823