Company: PATH
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001734722-25-000007
Chunk: 177

Company: UiPath, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 7
Chunk 177
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2024, respectively, and are recorded in other assets, non-current on our consolidated balance sheets. Related amortization expense was $0.3 million, none, and $1.0 million for fiscal years 2025, 2024, and 2023, respectively. Accumulated amortization was $2.4 million and $2.2 million as of January 31, 2025 and 2024, respectively.Software Development CostsWe account for costs incurred to develop software to be licensed in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed. These costs include internal development costs and license fees paid to third parties for their software that is integrated into our products. Beginning in the fourth quarter of fiscal year 2022, we also account for costs incurred to develop our SaaS products in accordance with ASC 985-20. This guidance requires that all costs to establish technological feasibility be expensed as they are incurred. Technological feasibility is established when the working model is complete. Costs incurred subsequent to establishing technological feasibility are capitalized until the product is available for general release to customers, at which point they are amortized on a product-by-product basis. Management evaluates the useful life of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact their recoverability.Our internal development costs are amortized over the estimated useful life of the software, which is five years, on a straight-line basis, and such amortization is included in cost of licenses revenue or cost of subscription services revenue in the consolidated statements of operations based on the nature of the underlying product. Capitalized costs include salaries, benefits, and stock-based compensation charges for employees that are directly involved in developing our products. Capitalized costs are included in other assets, non-current on the consolidated balance sheets. Gross capitalized software development costs were $4.2 million as of January 31, 2025 and 2024. Related amortization expense was $0.8 million, $0.9 million, and $0.9 million for fiscal years 2025, 2024, and 2023, 

86

UiPath, Inc.Notes to Consolidated Financial Statements 

respectively. Accumulated amortization was $3.7 million and $3.0 million as of January 31, 2025 and 2024, respectively.Capitalized license fees paid to third parties are amortized over the license term at the greater of a straight-line or a