Composition of certain financial statement captions | Composition of certain financial statement captions (a) Accrued expenses Accrued expenses as of October 31, 2024 and January 31, 2024 were as follows: October 31, 2024 January 31, 2024 Payroll-related expenses and taxes $ 8,147 $ 8,981 Stock-based compensation liability 3,621 5,890 Payment processing fees liability 5,818 6,008 Acquisition-related liabilities 844 1,888 Income and other tax liabilities 1,961 3,042 Information technology 5,041 5,927 Other 3,648 5,394 Total $ 29,080 $ 37,130 (b) Other current liabilities and other long-term liabilities Other current liabilities as of October 31, 2024 and January 31, 2024 were $7,130 and $5,875, respectively. Other long-term liabilities as of October 31, 2024 and January 31, 2024 were $133 and $2,857, respectively. Other current liabilities and other long-term liabilities primarily represent deferred consideration liabilities payable to the former equity holders of ConnectOnCall.com, LLC (“ConnectOnCall”) that the Company acquired during the year ended January 31, 2024. Deferred consideration liabilities are payable through June 30, 2025. Accordingly, as of October 31, 2024, all deferred consideration liabilities were classified as other current liabilities. (c) Property and equipment Property and equipment as of October 31, 2024 and January 31, 2024 were as follows: Useful Life (years) October 31, 2024 January 31, 2024 PhreesiaPads and Arrivals Kiosks 3 $ 21,971 $ 18,610 Computer equipment 3 77,270 62,888 Computer software 3 to 5 14,018 11,687 Hardware development 3 575 576 Total property and equipment $ 113,834 $ 93,761 Less: accumulated depreciation (87,861) (76,859) Property and equipment — net $ 25,973 $ 16,902 Depreciation expense related to property and equipment amounted to $3,566 and $4,483 for the three months ended October 31, 2024 and 2023, respectively. Depreciation expense related to property and equipment amounted to $11,011 and $13,231 for the nine months ended October 31, 2024 and 2023, respectively. Property and equipment - net and related depreciation expense includes assets acquired under finance leases. Assets acquired under finance leases included in computer equipment were $48,960 and $35,250 as of October 31, 2024 and January 31, 2024, respectively. Accumulated amortization of assets under finance leases was $32,687 and $27,399 as of October 31, 2024 and January 31, 2024, respectively. See Note 10 - Leases for additional information regarding finance leases. (d) Capitalized internal use software For the three months ended October 31, 2024 and 2023, the Company capitalized $8,237 and $5,244, respectively, of costs related to the Company’s solutions. For the nine months ended October 31, 2024 and 2023, the Company capitalized $12,625 and $15,615, respectively, of costs related to the Company’s solutions. During the three months ended October 31, 2024 and 2023, amortization expense related to capitalized internal-use software was $5,162 and $2,192, respectively. During the nine months ended October 31, 2024 and 2023, amortization expense related to capitalized internal-use software was $7,441 and $6,508, respectively. (e) Intangible assets and goodwill The following presents the details of intangible assets as of October 31, 2024 and January 31, 2024: Useful Life (years) October 31, 2024 January 31, 2024 Acquired technology 5 to 7 $ 9,310 $ 9,310 Customer relationship 7 to 15 17,940 17,940 License 15 6,200 6,200 Trademarks 15 3,100 3,100 Total intangible assets, gross carrying value $ 36,550 $ 36,550 Less: accumulated amortization (7,536) (4,925) Net carrying value $ 29,014 $ 31,625 The weighted average remaining useful life for acquired technology in years was 5.3 and 6.0 as of October 31, 2024 and January 31, 2024, respectively. The remaining useful life for customer relationships in years was 11.8 and 12.4 as of October 31, 2024 and January 31, 2024, respectively. The remaining useful life for the license to the Patient Activation Measure ("PAM"®) in years was 12.1 and 12.8 as of October 31, 2024 and January 31, 2024, respectively. The remaining useful life for the trademarks in years was 13.8 and 14.5 as of October 31, 2024 and January 31, 2024, respectively. Amortization expense associated with intangible assets for the three months ended October 31, 2024 and 2023, was $1,740 and $788, respectively. Amortization expense associated with intangible assets for the nine months ended October 31, 2024 and 2023, was $2,611 and $1,495, respectively. The estimated amortization expense for intangible assets for the next five years and thereafter was as follows as of October 31, 2024: October 31, 2024 2025 (Remaining three months) $ 872 Fiscal Years Ending January 31, 2026 3,450 2027 3,157 2028 3,157 2029 - thereafter 18,378 Total $ 29,014 There were no changes to the Company's goodwill balance during the nine months ended October 31, 2024. The Company did not record any impairments of goodwill during the three and nine months ended October 31, 2024 or 2023. (f) Accounts receivable Accounts receivable as of October 31, 2024 and January 31, 2024 were as follows: October 31, 2024 January 31, 2024 Billed $ 66,624 $ 62,880 Unbilled 6,252 3,375 Total accounts receivable, gross $ 72,876 $ 66,255 Less: accounts receivable allowances (1,468) (1,392) Total accounts receivable $ 71,408 $ 64,863 Activity in the Company's allowance for doubtful accounts was as follows for the nine months ended October 31, 2024: October 31, 2024 Balance, January 31, 2024 $ 1,392 Bad debt expense 619 Write-offs and adjustments (543) Balance, October 31, 2024 $ 1,468 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. The Company writes off accounts receivable and removes the associated allowance for doubtful accounts when the Company deems the receivables to be uncollectible. (g) Prepaid and other current assets Prepaid and other current assets as of October 31, 2024 and January 31, 2024 were as follows: October 31, 2024 January 31, 2024 Prepaid software and business systems $ 4,707 $ 4,922 Prepaid data center expenses 2,570 3,872 Prepaid insurance 1,230 1,257 Other prepaid expenses and other current assets 2,510 4,410 Total prepaid and other current assets $ 11,017 $ 14,461 (h) Cloud computing implementation costs |