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Composition of certain financial statement captions
 6 Months Ended
Jul. 31, 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 July 31, 2020 and January 31, 2020 are as follows:
 July 31, 2020January 31, 2020
Payroll-related expenses and taxes$5,522 $5,032 
Payment processing fees liability2,418 2,738 
Other1,898 1,473 
Total$9,838 $9,243 

(b) Property and equipment
Property and equipment as of July 31, 2020 and January 31, 2020 are as follows:
 
Useful Life
 (years)July 31, 2020January 31, 2020
PhreesiaPads and Arrivals Stations3$28,771 $26,389 
Computer equipment322,969 18,394 
Computer software32,582 2,297 
Hardware development31,024 1,024 
Furniture and fixtures7743 743 
Leasehold improvements21,200 1,191 
Total property and equipment$57,289 $50,038 
Less accumulated depreciation and amortization(40,219)(35,551)
Property and equipment — net$17,070 $14,487 
Depreciation expense related to property and equipment amounted to $2,410 and $2,136 for the three months ended July 31, 2020 and 2019, respectively. Depreciation expense related to property and equipment amounted to $4,678 and $4,291 for the six months ended July 31, 2020 and 2019, respectively. Finance lease depreciation, included in depreciation expense, was $1,586 for the six months ended July 31, 2020.
Assets under finance leases included in computer equipment were $15,940 and $12,283 as of July 31, 2020 and January 31, 2020. Accumulated amortization of assets under finance leases was $9,310 and $7,724 as of July 31, 2020 and January 31, 2020, respectively.

(c) Capitalized internal use software
For the three months ended July 31, 2020 and 2019, the Company capitalized $1,876 and $1,467, respectively, of costs related to the Phreesia Platform. For the six months ended July 31, 2020 and 2019, the Company capitalized $3,632 and $2,878, respectively, of costs related to the Phreesia Platform.
During the three months ended July 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $1,573 and $1,220, respectively. During the six months ended July 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $2,866 and $2,379, respectively. As of July 31, 2020 and January 31, 2020, the net book value of the Phreesia Platform was $9,501 and $8,735, respectively.
(d) Intangible assets and goodwill
The following presents the details of intangible assets as of July 31, 2020 and January 31, 2020:

Useful Life
 (years)July 31, 2020January 31, 2020
Acquired technology gross carrying value5$490 $490 
Customer relationship gross carrying value7980 980 
Total intangible assets$1,470 $1,470 
Less accumulated amortization(390)(271)
Net carrying value$1,080 $1,199 
The remaining useful life for acquired technology in years is 3.4 and 3.9 as of July 31, 2020 and January 31, 2020, respectively. The remaining useful life for customer relationships in years is 5.4 and 5.9 as of July 31, 2020 and January 31, 2020, respectively.
Amortization expense associated with intangible assets amounted to $60 and $60 for the three months ended July 31, 2020 and 2019, respectively. Amortization expense associated with intangible assets amounted to $119 and $119 for the six months ended July 31, 2020 and 2019, respectively.
The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of July 31, 2020:

July 31, 2020
2021 (Remaining six months)$119 
Years ending January 31,
2022238 
2023238 
2024224 
2025 - thereafter261 
Total$1,080 

There were no changes to the Company's goodwill balance during the six months ended July 31, 2020. The Company did not record any impairments of goodwill during the three and six months ended July 31, 2020 or 2019, respectively. Goodwill was $250 as of July 31, 2020 and January 31, 2020.

(e) Accounts receivable
Accounts receivable as of July 31, 2020 and January 31, 2020 are as follows:
 
 July 31, 2020January 31, 2020
Billed$20,501 $22,245 
Unbilled3,147 676 
Total accounts receivable, gross$23,648 $22,921 
Less accounts receivable allowances(676)(943)
Total accounts receivable$22,972 $21,978 
Activity in our allowance for doubtful accounts was as follows for the six months ended July 31, 2020:

 July 31, 2020
Balance, January 31, 2020$943 
Bad debt expense271 
Write-offs and adjustments(538)
Balance, July 31, 2020$676 

In estimating the allowance for doubtful accounts, the Company considers past events, current conditions and reasonable forecasts about the future. The Company's allowance includes a percentage of overall accounts receivable plus a specific reserve for customers in financial distress, such as customers who have declared bankruptcy. The Company's accounts receivable are considered past due when they are outstanding past the due date listed on the invoice to the customer. As of July 31, 2020, 53% of the Company's accounts receivable was aged less than 30 days from the invoice date and 19% of the Company's accounts receivable was aged over 90 days from the invoice date. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivable to be uncollectible.

(f) Prepaid and other current assets
Prepaid and other current assets as of July 31, 2020 and January 31, 2020 are as follows:
 
 July 31, 2020January 31, 2020
Prepaid software and business systems1,854 $1,611 
Prepaid PhreesiaPads958 645 
Prepaid data center expenses460 751 
Prepaid insurance2,778 1,259 
Other prepaid expenses and other current assets2,328 891 
Total prepaid and other current assets$8,378 $5,157 
The Company enters into cloud computing service contracts to support our sales and marketing, product development and administrative activities. Subsequent to the adoption of ASU 2018-15 in May 2020, we capitalize certain implementation costs for cloud computing arrangements that meet the definition of a service contract. We include these capitalized implementation costs within Prepaid software and business systems in the table above. Once placed in service, we amortize these costs over the remaining subscription term to the same expense line as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $213 for the three months ended July 31, 2020. Accumulated amortization of capitalized implementation costs for these arrangements was $2 as of July 31, 2020.

(g) Other income (expense)

Other income for the three and six months ended July 31, 2020 is composed primarily of foreign exchange gains. Other expense for the three months ended July 31, 2019 was composed primarily of foreign exchange losses. Other expense for the six months ended July 31, 2019 was composed primarily of loss on extinguishment of debt of $1,073, partially offset by foreign exchange gains.