Company: PHR
Filing Date: 2025-09-05
Form Type: 10-Q
Source: 0001412408-25-000062
Chunk: 93

Company: Phreesia, Inc.
Filing Date: 2025-09-05
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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January 31, 2025Prepaid software and business systems$8,040 $6,849 Prepaid data center expenses4,084 3,558 Prepaid insurance157 912 Other prepaid expenses and other current assets5,946 4,552 Total prepaid and other current assets$18,227 $15,871 (g) Cloud computing implementation costs The Company enters into cloud computing service contracts to support its sales and marketing, product development and administrative activities. The Company capitalizes certain implementation costs for cloud computing arrangements that meet the definition of a service contract. The Company includes these capitalized implementation costs within prepaid expenses and other current assets and within other assets on its consolidated balance sheets. Once placed in service, the Company amortizes these costs over the remaining subscription term to the same caption in the consolidated statements of operations as the related cloud subscription. Capitalized implementation costs for cloud computing arrangements accounted for as service contracts were $1,532 as of January 31, 2025. Accumulated amortization of capitalized implementation costs for these arrangements were $1,432 as of January 31, 2025. These arrangements were fully amortized during the three months ended April 30, 2025.

5. Revenue and contract costs

The Company generates revenue primarily from providing integrated SaaS-based software and payment solutions for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s healthcare services clients for access to the Company's solutions, payment processing fees based on patient payment volume, and fees from life sciences companies and other organizations for delivering qualified direct communications to patients who consent to receive this type of engagement using the Company's solutions.The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $1,832 and $2,324 for the three months ended July 31, 2025 and 2024, respectively, and $4,251 and $4,712 for the six months ended July 31, 2025 and 2024, respectively.

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Table of Contents

Contract balancesThe following table represents a roll-forward of contract assets:Balance, January 31, 2025$4,743 Amount transferred to receivables from beginning balance of contract assets(4,613)Contract asset additions, net of reclassification to receivables6,918 Balance, July 31, 2025$7,048 The