Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 499

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 4
Chunk 499
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 Code. In addition, under the Tax Cuts and Jobs Act of 2017, as amended by The Coronavirus Aid, Relief, and Economic Security Act of 2020, the amount of post-2017 NOLs that we are permitted to utilize in any taxable year is limited to 80% of our taxable income in such year, where taxable income is determined without regard to the NOL deduction itself. For these reasons, we may not be able to realize a tax benefit from the use of our NOLs. We have a valuation allowance related to our NOLs to recognize only the portion of the deferred tax asset that is more likely than not to be realized.

82

Risks relating to our financing needs 

The Bridge Loan, net of any prepayments, will become payable in full at maturity on November 11, 2026. There can be no assurance that our cash from operations and available borrowing capacity will be sufficient to satisfy our obligations under the Bridge Loan, and we may be unable to obtain long-term financing or other alternative financing on favorable terms in a timely manner or at all.

The Bridge Loan, net of any prepayments, will become payable in full at maturity on November 11, 2026. Additionally, the Bridge Loan is subject to mandatory prepayment upon certain debt incurrences, equity issuances or asset sales. While we believe that our cash from operations and available borrowing capacity under our Capital One Credit Facility will be sufficient to satisfy our obligations under the Bridge Loan, we expect to refinance or replace the Bridge Loan with a long-term credit facility. However, there can be no assurance that our cash from operations and available borrowing capacity under our Capital One Credit Facility will be sufficient to satisfy our obligations, or that we will obtain long-term financing or other alternative financing on favorable terms in a timely manner or at all. Alternative financing could subject us to higher borrowing costs and additional restrictive covenants not present in the agreements governing our existing Capital One Credit Facility or in the Bridge Loan, which could reduce our profitability and diminish our operational flexibility. If we are unable to repay the Bridge Loan, either through cash from operations, available borrowing capacity under our Capital One Credit Facility or any alternative financing, or if borrowing costs dramatically increase, our ability to meet our short-term and long-term obligations could be adversely affected, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our cash