Phreesia, Inc 8-K/A, filed Sep 10, 2020

Phreesia, Inc. (PHR)

8-K/A 2020-09-10 For: 2020-09-08

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Added on April 04, 2026

About this 8-K/A

Phreesia, Inc filed this 8-K/A on September 10, 2020, reporting on events of September 8, 2020.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit Number						Description
99.1						Press release, dated September 8 , 2020, by Phreesia, Inc.


	July 31, 2020		January 31, 2020
	(unaudited)
Assets
Current:
Cash and cash equivalents	$	84,199	$	90,315
Settlement assets	10,717		12,368
Accounts receivable, net of allowances	22,972		21,978
Deferred contract acquisition costs	1,684		1,720
Prepaid expenses and other current assets	8,378		5,157
Total current assets	127,950		131,538
Property and equipment, net of accumulated depreciation and amortization of $40,219 and $35,551	17,070		14,487
Capitalized internal-use software, net of accumulated amortization of $22,420 and $19,554	9,501		8,735
Operating lease right-of-use assets (1)	2,406		—
Deferred contract acquisition costs	1,256		1,594
Intangible assets, net of accumulated amortization of $390 and $271	1,080		1,199
Deferred tax assets	666		775
Goodwill	250		250
Other assets	108		180
Total assets	$	160,287	$	158,758
Liabilities and Stockholders’ Equity
Current:
Settlement obligations	$	10,717	$	12,368
Current portion of debt and finance lease liabilities	4,939		2,324
Current portion of operating lease liabilities (1)	1,221		—
Accounts payable	5,103		6,017
Accrued expenses	9,838		9,243
Deferred revenue	6,257		5,401
Total current liabilities	38,075		35,353
Long-term debt and finance lease liabilities	23,131		21,540
Operating lease liabilities, noncurrent (1)	1,394		—
Total liabilities	62,600		56,893
Commitments and contingencies
Stockholders’ Equity:
Common stock, $0.01 par value—500,000,000 shares authorized as of July 31, 2020 and January 31, 2020, respectively; 37,882,837 and 36,610,763 shares issued and outstanding as of July 31, 2020 and January 31, 2020, respectively	379		366
Additional paid-in capital	395,145		386,383
Accumulated deficit	(296,968)		(284,485)
Treasury stock	(869)		(399)
Total Stockholders’ Equity	97,687		101,865
Total Liabilities and Stockholders’ Equity	$	160,287	$	158,758
(1) Figures as of July 31, 2020 reflect the Company's February 1, 2020 adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases.


	Three months ended July 31,						Six months ended July 31,
	2020		2019		2020		2019
Revenue:
Subscription and related services	$	17,129	$	14,004	$	32,728	$	26,686
Payment processing fees	11,828		11,665		23,535		23,222
Life sciences	6,052		5,148		12,142		9,218
Total revenues	35,009		30,817		68,405		59,126
Expenses:
Cost of revenue (excluding depreciation and amortization)	5,271		4,210		10,005		8,206
Payment processing expense	6,747		7,101		13,595		14,050
Sales and marketing	10,098		8,120		19,532		15,822
Research and development	5,530		4,690		10,535		8,989
General and administrative	9,631		7,421		18,351		13,665
Depreciation	2,410		2,136		4,678		4,291
Amortization	1,632		1,279		2,985		2,498
Total expenses	41,319		34,957		79,681		67,521
Operating loss	(6,310)		(4,140)		(11,276)		(8,395)
Other income (expense)	424		327		(291)		(818)
Change in fair value of warrant liability	—		(2,884)		—		(3,307)
Interest income (expense)	(419)		(745)		(739)		(1,549)
Total other income (expense)	5		(3,302)		(1,030)		(5,674)
Loss before provision for income taxes	(6,305)		(7,442)		(12,306)		(14,069)
Provision for income taxes	(66)		(51)		(177)		(119)
Net loss	$	(6,371)	$	(7,493)	$	(12,483)	$	(14,188)
Preferred stock dividend paid	—		(14,955)		—		(14,955)
Accretion of redeemable preferred stock	—		(48,312)		—		(56,175)
Net loss attributable to common stockholders, basic and diluted	$	(6,371)	$	(70,760)	$	(12,483)	$	(85,318)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.17)	$	(10.42)	$	(0.33)	$	(19.20)
Weighted-average common shares outstanding, basic and diluted	37,735,155		6,793,363		37,523,966		4,443,155


	Six months ended July 31,
	2020		2019
Cash flows from operating activities:
Net loss	$	(12,483)	$	(14,188)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	7,663		6,789
Stock-based compensation expense	6,300		2,067
Change in fair value of warrants liability	—		3,307
Amortization of debt discount	245		265
Loss on extinguishment of debt	—		1,073
Cost of Phreesia hardware purchased by customers	439		319
Deferred contract acquisition costs amortization	1,775		974
Non-cash operating lease expense	777		—
Deferred tax asset	109		—
Changes in operating assets and liabilities
Accounts receivable	(994)		(679)
Prepaid expenses and other assets	(2,892)		(3,657)
Deferred contract acquisition costs	(1,401)		(858)
Accounts payable	(1,275)		4,548
Accrued expenses and other liabilities	1,116		3,330
Lease liability	(755)		—
Deferred revenue	856		(705)
Net cash (used in) provided by operating activities	(520)		2,585
Cash flows used in investing activities:
Capitalized internal-use software	(2,737)		(2,878)
Purchase of property and equipment	(4,659)		(2,754)
Net cash used in investing activities	(7,396)		(5,632)
Cash flows from financing activities:
Proceeds from IPO, net of underwriters' discounts and commissions	—		130,781
Proceeds from revolving line of credit	—		9,876
Payments of revolving line of credit	—		(17,676)
Proceeds from term loan	—		20,000
Repayment of term loan	—		(1,042)
Repayment of loan payable	—		(20,000)
Payment of preferred stock dividends	—		(14,955)
Insurance financing arrangement	2,009		—
Principal portion of finance lease payments	(1,301)		(1,164)
Principal payments on financing arrangements	(220)		—
Debt extinguishment costs	—		(300)
Debt issuance costs	(69)		(112)
Proceeds from issuance of common stock upon exercise of stock options	2,475		78
Purchase of treasury stock	(869)		—
Payment of offering costs	—		(3,930)
Loan facility fee payment	(225)		—


Net cash provided by financing activities	1,800		101,556
Net (decrease) increase in cash and cash equivalents	(6,116)		98,509
Cash and cash equivalents – beginning of period	90,315		1,543
Cash and cash equivalents – end of period	$	84,199	$	100,051
Supplemental information of non-cash investing and financing information:
Right-of-use assets recorded in exchange for operating lease liabilities (1)	$	3,183	$	—
Property and equipment acquisitions through finance leases	$	3,657	$	1,510
Capitalized software acquired through vendor financing	$	174	$	—
Deferred issuance costs included in accounts payable and accrued expenses	$	—	$	1,958
Purchase of property and equipment and capitalized software included in accounts payable	$	1,358	$	699
Issuance of warrants related to debt	$	—	$	833
Cashless transfer of term loan and related accrued fees into revolving credit facility	$	20,257	$	—
Cashless transfer of lender fees through increase in debt balance	$	406	$	—
Cash payments for:
Interest	$	833	$	1,347
(1) Includes $2,741 initial right of use asset recorded upon adoption of ASC 842.


	Three months ended July 31,						Six months ended July 31,
(in thousands, unaudited)	2020		2019		2020		2019
Net loss	$	(6,371)	$	(7,493)	$	(12,483)	$	(14,188)
Interest (income) expense	419		745		739		1,549
Depreciation and amortization	4,042		3,415		7,663		6,789
Stock-based compensation expense	3,428		1,467		6,300		2,067
Change in fair value warrant liability	—		2,884		—		3,307
Provision for income taxes	66		51		177		119
Other (income) expense	(424)		(327)		291		818
Adjusted EBITDA	$	1,160	$	742	$	2,687	$	462


	Three months ended July 31,						Six months ended July 31,
(in thousands)	2020		2019		2020		2019
GAAP operating expenses
General and administrative	$	9,631	$	7,421	$	18,351	$	13,665
Sales and marketing	10,098		8,120		19,532		15,822
Research and development	5,530		4,690		10,535		8,989
Cost of revenue	5,271		4,210		10,005		8,206
	$	30,530	$	24,441	$	58,423	$	46,681
Stock compensation included in GAAP operating expenses
General and administrative	$	1,928	$	992	$	3,534	$	1,313
Sales and marketing	794		270		1,522		426
Research and development	573		164		1,024		253
Cost of revenue	133		41		220		74
	$	3,428	$	1,467	$	6,300	$	2,067
Adjusted operating expenses
General and administrative	$	7,703	$	6,429	$	14,817	$	12,352
Sales and marketing	9,304		7,850		18,010		15,396
Research and development	4,957		4,526		9,511		8,735
Cost of revenue	5,138		4,169		9,785		8,132
	$	27,102	$	22,974	$	52,123	$	44,615


	Three months ended July 31,						Six months ended July 31,
	2020		2019		2020		2019
Key Metrics:
Provider clients (average over period)	1,668		1,558		1,650		1,554
Average revenue per provider client	$	17,360	$	16,472	$	34,099	$	31,126
Patient payment volume (in millions)	$	466	$	464	$	921	$	925