Composition of certain financial statement captions

12 Months Ended

Jan. 31, 2020

Composition of Certain Financial Statement Captions [Abstract]

Composition of certain financial statement captions

Composition of certain financial statement captions

(a) Accrued expenses

Accrued expenses at January 31, 2020 and 2019 are as follows:

	January 31,
	2020		2019
Payment processing fees liability	$	2,738	$	2,267
Commission and bonus	3,100		320
Payroll	1,360		267
Accrued payment related to acquisition of Vital Score	—		350
Vacation	573		417
Other	1,472		1,886
Total	$	9,243	$	5,507

(b) Property and equipment

Property and equipment at January 31, 2020 and 2019 are as follows:

	Useful life (years)	January 31,
		2020		2019
PhreesiaPads and Arrivals Stations	3	$	26,389	$	22,747
Computer equipment	3	18,394		14,338
Computer software	3	2,297		2,166
Hardware development	3	1,024		1,024
Furniture and fixtures	7	743		647
Leasehold improvements	2	1,191		1,151
Total property and equipment		$	50,038	$	42,073
Less accumulated depreciation and amortization		(35,551)		(27,862)
Property and equipment—net		$	14,487	$	14,211

Depreciation expense related to property and equipment amounted to $8,753, $7,552, and $6,832 for the fiscal years ended January 31, 2020, 2019, and 2018, respectively.

Assets under capital leases included in computer equipment were $12,283 and $10,235 at January 31, 2020 and 2019, respectively. Accumulated amortization of assets under capital lease was $7,724 and $5,369 at January 31, 2020 and 2019, respectively.

(c) Capitalized internal-use software

For the fiscal years ended January 31, 2020 and 2019, the Company capitalized $5,852 and $5,109 of costs related to the Phreesia Platform, respectively.

During the fiscal years ended January 31, 2020, 2019, and 2018 amortization expense of capitalized internal-use software was $4,933, $4,009, and $2,808, respectively. As of January 31, 2020 and January 31, 2019, the net book value of the Phreesia Platform was $8,735 and $7,816, respectively.

(d) Intangible assets and goodwill

The following presents the details of intangible assets as of January 31, 2020 and January 31, 2019.

	January 31, 2020
	Gross carrying amount		Accumulated amortization		Net		Life	Remaining useful life (in years)
Acquired technology	$	490	$	(112)	$	378	5	3.9
Customer Relationship	980		(159)		821		7	5.9
	$	1,470	$	(271)	$	1,199

	January 31, 2019
	Gross carrying amount		Accumulated amortization		Net		Life	Remaining useful life (in years)
Acquired technology	$	490	$	(14)	$	476	5	4.8
Customer Relationship	980		(19)		961		7	6.8
	$	1,470	$	(33)	$	1,437

Amortization expense associated with intangible assets for the fiscal years ended January 31, 2020 and 2019 was $238 and $33. There was no amortization expense in fiscal 2018.

The estimated amortization expense for intangible assets for the next five years and thereafter is as follows as of January 31, 2020:

Year Ending January 31,
2021	$	238
2022	238
2023	238
2024	224
Thereafter	261
	$	1,199

The carrying amount of goodwill as of January 31, 2020 and 2019 was $250 related to the Vital Score Acquisition. There were no acquisitions or divestitures in the year ended January 31, 2020.

(e) Deferred offering costs

Deferred offering costs consist primarily of accounting, legal, and other fees related to the Company's IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets on the accompanying balance sheet. As of January 31, 2020, a total of $6,412 in deferred offering costs related to the IPO was recorded in stockholders' deficit as a reduction of additional paid in capital. Deferred offering costs of $540 were recorded within other assets on the accompanying balance sheet as of January 31, 2019.

(f) Accounts receivable

Accounts Receivable at January 31, 2020 and 2019 are as follows:

	January 31,
	2020		2019
Billed	$	22,245	$	15,954
Unbilled	676		636
	22,921		16,590
Less: Allowance for doubtful accounts	(943)		(517)
	$	21,978	$	16,073

(g) Prepaid and other current assets

Prepaid and other current assets at January 31, 2020 and 2019 are as follows:

	January 31,
	2020		2019
Prepaid software and business systems	$	1,611	$	1,804
Prepaid insurance	1,259		88
Prepaid data center expenses	751		920
Prepaid PhreesiaPads	645		435
Other prepaid expenses and other current assets	891		564
	$	5,157	$	3,811