Composition of certain financial statement captions

3 Months Ended

Apr. 30, 2020

Composition Of Certain Financial Statement [Abstract]

Composition of certain financial statement captions

Composition of certain financial statement captions

(a) Accrued expenses

Accrued expenses as of April 30, 2020 and January 31, 2020 are as follows:

	April 30, 2020		January 31, 2020
Payroll-related expenses and taxes	$	7,529	$	5,032
Payment processing fees liability	1,752		2,738
Other	2,093		1,473
Total	$	11,374	$	9,243

(b) Property and equipment

Property and equipment as of April 30, 2020 and January 31, 2020 are as follows:

	Useful Life
	(years)	April 30, 2020		January 31, 2020
PhreesiaPads and Arrivals Stations	3	$	27,833	$	26,389
Computer equipment	3	19,612		18,394
Computer software	3	2,386		2,297
Hardware development	3	1,024		1,024
Furniture and fixtures	7	745		743
Leasehold improvements	2	1,199		1,191
Total property and equipment		$	52,799	$	50,038
Less accumulated depreciation and amortization		(37,813)		(35,551)
Property and equipment — net		$	14,986	$	14,487

Depreciation expense related to property and equipment amounted to $2,268 and $2,155 for the three months ended April 30, 2020 and 2019, respectively. Finance lease depreciation, included in depreciation expense, was $725 for the three months ended April 30, 2020.

Assets under finance leases included in computer equipment were $13,110 and $12,283 as of April 30, 2020 and January 31, 2020. Accumulated amortization of assets under finance leases was $8,449 and $7,724 as of April 30, 2020 and January 31, 2020, respectively.

(c) Capitalized internal use software

For the three months ended April 30, 2020 and 2019, the Company capitalized $1,756 and $1,411, respectively, of costs related to the Phreesia Platform.

During the three months ended April 30, 2020 and 2019, amortization expense of capitalized internal-use software was $1,293 and $1,160, respectively. As of April 30, 2020 and January 31, 2020, the net book value of the Phreesia Platform was $9,198 and $8,735, respectively.

(d) Intangible assets

The following presents the details of intangible assets as of April 30, 2020 and January 31, 2020:

	Useful Life
	(years)	April 30, 2020		January 31, 2020
Acquired technology gross carrying value	5	$	490	$	490
Customer relationship gross carrying value	7	980		980
Total intangible assets		$	1,470	$	1,470
Less accumulated amortization		(331)		(271)
Net carrying value		$	1,139	$	1,199

The remaining useful life for acquired technology in years is 3.6 and 3.9 as of April 30, 2020 and January 31, 2020, respectively. The remaining useful life for customer relationships in years is 5.6 and 5.9 as of April 30, 2020 and January 31, 2020, respectively.

Amortization expense associated with intangible assets amounted to $60 and $60 for the three months ended April 30, 2020 and 2019, respectively.

The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of April 30, 2020:

	April 30, 2020
2021 (Remaining nine months)	$	179
Years ending January 31,
2022	238
2023	238
2024	224
2025 - thereafter	260
Total	$	1,139

(e) Accounts receivable

Accounts receivable as of April 30, 2020 and January 31, 2020 are as follows:

	April 30, 2020		January 31, 2020
Billed	$	23,823	$	22,245
Unbilled	1,753		676
Total accounts receivable, gross	$	25,576	$	22,921
Less accounts receivable allowance	(1,353)		(943)
Total accounts receivable	$	24,223	$	21,978

(f) Prepaid and other current assets

Prepaid and other current assets as of April 30, 2020 and January 31, 2020 are as follows:

	April 30, 2020		January 31, 2020
Prepaid software and business systems	2,155		$	1,611
Prepaid PhreesiaPads	1,534		645
Prepaid data center expenses	587		751
Prepaid insurance	530		1,259
Other prepaid expenses and other current assets	629		891
Total prepaid and other current assets	$	5,435	$	5,157