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Composition of certain financial statement captions
 9 Months Ended
Oct. 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 October 31, 2020 and January 31, 2020 are as follows:
 October 31, 2020January 31, 2020
Payroll-related expenses and taxes$7,846 $5,032 
Payment processing fees liability2,634 2,738 
Other2,182 1,473 
Total$12,662 $9,243 

(b) Property and equipment
Property and equipment as of October 31, 2020 and January 31, 2020 are as follows:
 
Useful Life
 (years)October 31, 2020January 31, 2020
PhreesiaPads and Arrivals Stations3$29,857 $26,389 
Computer equipment325,990 18,394 
Computer software33,010 2,297 
Hardware development31,024 1,024 
Furniture and fixtures7743 743 
Leasehold improvements21,201 1,191 
Total property and equipment$61,825 $50,038 
Less accumulated depreciation and amortization(42,665)(35,551)
Property and equipment — net$19,160 $14,487 
Depreciation expense related to property and equipment amounted to $2,447 and $2,153 for the three months ended October 31, 2020 and 2019, respectively. Depreciation expense related to property and equipment amounted to $7,125 and $6,444 for the nine months ended October 31, 2020 and 2019, respectively. Finance lease depreciation, included in depreciation expense, was $2,278 for the nine months ended October 31, 2020.
Assets under finance leases included in computer equipment were $17,078 and $12,283 as of October 31, 2020 and January 31, 2020. Accumulated amortization of assets under finance leases was $9,555 and $7,724 as of October 31, 2020 and January 31, 2020, respectively.

(c) Capitalized internal use software
For the three months ended October 31, 2020 and 2019, the Company capitalized $1,972 and $1,452, respectively, of costs related to the Phreesia Platform. For the nine months ended October 31, 2020 and 2019, the Company capitalized $5,604 and $4,329, respectively, of costs related to the Phreesia Platform.
During the three months ended October 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $1,487 and $1,266, respectively. During the nine months ended October 31, 2020 and 2019, amortization expense related to capitalized internal-use software was $4,353 and $3,645, respectively. As of October 31, 2020 and January 31, 2020, the net book value of the Phreesia Platform was $9,986 and $8,735, respectively.

(d) Intangible assets and goodwill
The following presents the details of intangible assets as of October 31, 2020 and January 31, 2020:

Useful Life
 (years)October 31, 2020January 31, 2020
Acquired technology5$490 $490 
Customer relationship7980 980 
Total intangible assets, gross carrying value$1,470 $1,470 
Less accumulated amortization(450)(271)
Net carrying value$1,020 $1,199 
The remaining useful life for acquired technology in years is 3.1 and 3.9 as of October 31, 2020 and January 31, 2020, respectively. The remaining useful life for customer relationships in years is 5.1 and 5.9 as of October 31, 2020 and January 31, 2020, respectively.
Amortization expense associated with intangible assets amounted to $59 and $59 for the three months ended October 31, 2020 and 2019, respectively. Amortization expense associated with intangible assets amounted to $178 and $178 for the nine months ended October 31, 2020 and 2019, respectively.
The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of October 31, 2020:

October 31, 2020
2021 (Remaining three months)$60 
Fiscal Years Ending January 31,
2022238 
2023238 
2024224 
2025 - thereafter260 
Total$1,020 

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

(e) Accounts receivable
Accounts receivable as of October 31, 2020 and January 31, 2020 are as follows:
 
 October 31, 2020January 31, 2020
Billed$26,000 $22,245 
Unbilled2,344 676 
Total accounts receivable, gross$28,344 $22,921 
Less accounts receivable allowances(750)(943)
Total accounts receivable$27,594 $21,978 
Activity in our allowance for doubtful accounts was as follows for the nine months ended October 31, 2020:

 October 31, 2020
Balance, January 31, 2020$943 
Bad debt expense396
Write-offs and adjustments(589)
Balance, October 31, 2020
$750 

The Company’s allowance for doubtful accounts represents the current estimate of expected future losses based on prior bad debt experience as well as considerations for specific customers as applicable. 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 October 31, 2020, 58% of the Company's accounts receivable was aged less than 30 days from the invoice date and 15% 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 receivables to be uncollectible.

(f) Prepaid and other current assets
Prepaid and other current assets as of October 31, 2020 and January 31, 2020 are as follows:
 
 October 31, 2020January 31, 2020
Prepaid software and business systems1,994 $1,611 
Prepaid PhreesiaPads394 645 
Prepaid data center expenses350 751 
Prepaid insurance1,969 1,259 
Other prepaid expenses and other current assets2,118 891 
Total prepaid and other current assets$6,825 $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 $283 and $434 for the three and nine months ended October 31, 2020. Accumulated amortization of capitalized implementation costs for these arrangements was $13 as of October 31, 2020.

(g) Other income (expense)

Other income for the three months ended October 31, 2020 and 2019 was $62 and $77, and was composed primarily of foreign exchange gains. Other expense for the nine months ended October 31, 2020 was $229 and was composed primarily of foreign exchange losses. Other expense for the nine months ended October 31, 2019 was $740 and was composed primarily of loss on extinguishment of debt of $1,073, partially offset by foreign exchange gains.