Company: PHR
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001412408-25-000132
Chunk: 59

Company: Phreesia, Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part II, Item 1A
Chunk 59
---
 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 and cash equivalents fail.

We regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limit, and there can be no assurance that we will be able to access uninsured funds in a timely manner or at all in the event of a failure of these financial institutions. If any such depositary institution fails to return our deposits, or if a depository institution is subject to other adverse conditions in the financial or credit markets, this could further impact access to our invested cash or cash equivalents and could adversely impact our operating liquidity and financial performance.

In order to support the growth of our business, we may need to incur additional indebtedness under our current credit facilities or seek capital through new equity or debt financings, which sources of additional capital may not be available to