0001558370-20-011470 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Aug. 31, 2020	Sep. 30, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Aug. 31, 2020
Entity File Number	001-39348
Entity Registrant Name	ACCOLADE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	01-0969591
Entity Address State Or Province	WA
Entity Address, Address Line One	1201 Third Avenue
Entity Address, Address Line Two	Suite 1700
Entity Address, City or Town	Seattle
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	926-8100
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	ACCD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,289,164
Entity Central Index Key	0001481646
Current Fiscal Year End Date	--02-28
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Aug. 31, 2020	Feb. 29, 2020
Current assets:
Cash and cash equivalents	$ 222,111	$ 33,155
Accounts receivable, net	10,661	294
Unbilled revenue	109	895
Current portion of deferred contract acquisition costs	1,709	1,368
Current portion of deferred financing fees	233	279
Prepaid and other current assets	8,014	12,944
Total current assets	242,837	48,935
Property and equipment, net	11,728	13,625
Goodwill	4,013	4,013
Acquired technology, net	1,329	2,054
Deferred contract acquisition costs	5,607	3,876
Other assets	1,363	745
Total assets	266,877	73,248
Current liabilities:
Accounts payable	3,811	5,273
Accrued expenses	2,631	6,580
Accrued compensation	24,488	23,838
Deferred rent and other current liabilities	491	674
Due to customers	4,741	4,674
Current portion of deferred revenue	32,773	28,919
Total current liabilities	68,935	69,958
Loans payable, net of unamortized issuance costs		21,144
Deferred rent and other noncurrent liabilities	5,516	5,523
Deferred revenue	322	396
Total liabilities	74,773	97,021
Convertible preferred stock :
Preferred stock par value $0.0001; 25,000,000 shares authorized; 0 and 19,513,939 issued and outstanding at August 31, 2020 and February 29, 2020, respectively		233,022
Stockholders' equity (deficit)
Common stock par value $0.0001; 500,000,000 shares authorized; 49,269,342 and 6,033,450 shares issued and outstanding at August 31, 2020 and February 29, 2020, respectively	5	2
Additional paid-in capital	542,298	64,071
Accumulated deficit	(350,199)	(320,868)
Total stockholders' equity (deficit)	192,104	(256,795)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	$ 266,877	$ 73,248

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Aug. 31, 2020	Feb. 29, 2020
Condensed Consolidated Balance Sheets (unaudited)
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	19,513,939
Preferred stock, shares outstanding	0	19,513,939
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	49,269,342	6,033,450
Common stock, shares outstanding	49,269,342	6,033,450

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Condensed Consolidated Statements of Operations (unaudited)
Revenue	$ 36,788	$ 29,651	$ 72,682	$ 58,414
Cost of revenue, excluding depreciation and amortization	21,071	16,764	43,310	34,199
Operating expenses:
Product and technology	12,236	11,303	23,606	22,549
Sales and marketing	7,881	7,616	15,196	15,278
General and administrative	6,453	6,011	12,120	11,574
Depreciation and amortization	2,049	2,222	3,977	4,382
Total operating expenses	28,619	27,152	54,899	53,783
Loss from operations	(12,902)	(14,265)	(25,527)	(29,568)
Interest expense, net	(2,347)	(701)	(3,629)	(1,244)
Other expense	(104)	(46)	(119)	(80)
Loss before income taxes	(15,353)	(15,012)	(29,275)	(30,892)
Income tax expense	(18)	(14)	(56)	(37)
Net loss	$ (15,371)	$ (15,026)	$ (29,331)	$ (30,929)
Net loss per share, basic and diluted	$ (0.47)	$ (2.82)	$ (1.45)	$ (6.02)
Weighted-average common shares outstanding, basic and diluted	33,029,147	5,336,501	20,277,416	5,141,047

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit (unaudited) - USD ($) $ in Thousands	Convertible Preferred stock	Common stock	Additional paid-in capital	Accumulated deficit	Total
Balance at Feb. 28, 2019		$ 1	$ 38,881	$ (269,503)	$ (230,621)
Balance (shares) at Feb. 28, 2019		3,616,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and common stock warrants			356		356
Exercise of stock options and common stock warrants (shares)	0	90,322
Stock-based compensation expense			1,436		1,436
Net loss				(15,903)	(15,903)
Balance at May. 31, 2019		$ 1	40,673	(285,406)	(244,732)
Balance (shares) at May. 31, 2019		3,706,871
Balance at Feb. 28, 2019	$ 214,664
Balance (shares) at Feb. 28, 2019	18,640,901
Balance at May. 31, 2019	$ 214,664
Balance (shares) at May. 31, 2019	18,640,901
Balance at Feb. 28, 2019		$ 1	38,881	(269,503)	(230,621)
Balance (shares) at Feb. 28, 2019		3,616,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss					(30,929)
Balance at Aug. 31, 2019		$ 1	50,939	(300,432)	(249,492)
Balance (shares) at Aug. 31, 2019		4,401,727
Balance at Feb. 28, 2019	$ 214,664
Balance (shares) at Feb. 28, 2019	18,640,901
Balance at Aug. 31, 2019	$ 214,664
Balance (shares) at Aug. 31, 2019	18,640,901
Balance at May. 31, 2019		$ 1	40,673	(285,406)	(244,732)
Balance (shares) at May. 31, 2019		3,706,871
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with acquisition			6,164		6,164
Issuance of common stock in connection with acquisition (shares)		279,436
Issuance of common stock warrants in connection with July 2019 debt			779		779
Exercise of stock options and common stock warrants	$ 0	$ 0	1,428	0	1,428
Exercise of stock options and common stock warrants (shares)	0	415,420
Stock-based compensation expense			1,895		1,895
Net loss				(15,026)	(15,026)
Balance at Aug. 31, 2019		$ 1	50,939	(300,432)	(249,492)
Balance (shares) at Aug. 31, 2019		4,401,727
Balance at May. 31, 2019	$ 214,664
Balance (shares) at May. 31, 2019	18,640,901
Balance at Aug. 31, 2019	$ 214,664
Balance (shares) at Aug. 31, 2019	18,640,901
Balance at Feb. 29, 2020		$ 2	64,071	(320,868)	(256,795)
Balance (shares) at Feb. 29, 2020		6,033,450
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and common stock warrants			2,999		2,999
Exercise of stock options and common stock warrants (shares)		347,807
Stock-based compensation expense			1,259		1,259
Net loss				(13,960)	(13,960)
Balance at May. 31, 2020		$ 2	68,329	(334,828)	(266,497)
Balance (shares) at May. 31, 2020		6,381,257
Balance at Feb. 29, 2020	$ 233,022				$ 233,022
Balance (shares) at Feb. 29, 2020	19,513,939				19,513,939
Balance at May. 31, 2020	$ 233,022
Balance (shares) at May. 31, 2020	19,513,939
Balance at Feb. 29, 2020		$ 2	64,071	(320,868)	$ (256,795)
Balance (shares) at Feb. 29, 2020		6,033,450
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss					(29,331)
Balance at Aug. 31, 2020		$ 5	542,298	(350,199)	192,104
Balance (shares) at Aug. 31, 2020		49,269,342
Balance at Feb. 29, 2020	$ 233,022				$ 233,022
Balance (shares) at Feb. 29, 2020	19,513,939				19,513,939
Balance at Aug. 31, 2020
Balance (shares) at Aug. 31, 2020					0
Balance at May. 31, 2020		$ 2	68,329	(334,828)	$ (266,497)
Balance (shares) at May. 31, 2020		6,381,257
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with acquisition			156		156
Issuance of common stock in connection with acquisition (shares)		97,019
Exercise of stock options and common stock warrants			1,726		1,726
Exercise of stock options and common stock warrants (shares)		383,575
Issuance of common stock in initial public offering, net of issuance costs of $4,596		$ 1	231,227		231,228
Issuance of common stock in initial public offering, net of issuance costs of $4,596 (shares)		11,526,134
Conversion of preferred stock into common stock		$ 2	233,020		233,022
Conversion of preferred stock into common stock (shares)		29,479,521
Automatic exercise of warrants into common stock in connection with initial public offering		1,401,836
Issuance of stock options to satisfy bonus obligation			5,735		5,735
Stock-based compensation expense			2,105		2,105
Net loss				(15,371)	(15,371)
Balance at Aug. 31, 2020		$ 5	$ 542,298	$ (350,199)	192,104
Balance (shares) at Aug. 31, 2020		49,269,342
Balance at May. 31, 2020	$ 233,022
Balance (shares) at May. 31, 2020	19,513,939
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of preferred stock into common stock	$ (233,022)
Conversion of preferred stock into common stock (shares)	(19,513,939)
Balance at Aug. 31, 2020
Balance (shares) at Aug. 31, 2020					0

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit (unaudited) (Parenthetical) $ in Thousands	3 Months Ended
	Aug. 31, 2020 USD ($)
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit (unaudited)
Issuance costs	$ 4,596

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Cash flows from operating activities:
Net loss	$ (29,331)	$ (30,929)
Adjustments to reconcile net loss to net cash used in
Depreciation and amortization expense	3,977	4,382
Amortization of deferred contract acquisition costs	740	460
Noncash interest expense	1,316	265
Stock-based compensation expense	3,364	3,331
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue	(9,581)	149
Accounts payable and accrued expenses	(806)	409
Deferred contract acquisition costs	(2,812)	(712)
Deferred revenue and due to customer	3,847	4,824
Accrued compensation	6,580	(1,439)
Deferred rent and other liabilities	(212)	(157)
Other assets	(437)	(985)
Net cash used in operating activities	(23,355)	(20,402)
Cash flows from investing activities:
Capitalized software development costs	(374)
Purchases of property and equipment	(981)	(1,064)
Net cash acquired in acquisition of MD Insider		(206)
Earnout payments to MD Insider	(58)
Net cash used in investing activities	(1,413)	(1,270)
Cash flows from financing activities:
Proceeds from IPO, net of underwriters' discounts and commissions and offering costs	231,675
Proceeds from stock option and warrant exercises	4,802	1,241
Proceeds from borrowings on debt	51,166	1,660
Repayments of debt principal	(73,166)
Payments related to debt retirement	(753)
Net cash provided by financing activities	213,724	2,901
Net increase (decrease) in cash and cash equivalents	188,956	(18,771)
Cash and cash equivalents, beginning of period	33,155	42,701
Cash and cash equivalents, end of period	222,111	23,930
Supplemental cash flow information:
Interest paid	2,194	1,201
Fixed assets included in accounts payable	48	248
Other receivable related to stock option exercises	108	543
Income taxes paid	105	55
Offering costs included in accounts payable and accrued expenses	312
Bonus paid in the form of stock options	$ 5,735

Background

6 Months Ended

Aug. 31, 2020

Background

Background

(1) Background

(a) Business

The entity was initially organized as a limited liability company under the name Accretive Care LLC in Delaware on January 23, 2007. On June 14, 2010, the entity converted from a limited liability company to a Delaware corporation and changed its name to Accolade, Inc (Accolade or the Company). Accolade’s offices and operations are in Seattle, Washington; Plymouth Meeting, Pennsylvania; Scottsdale, Arizona; Santa Monica, California; and Prague, Czech Republic.

On February 6, 2016, Accolade established a wholly owned subsidiary in the Czech Republic and on July 31, 2019, Accolade acquired all the equity interests of a Delaware corporation (together with Accolade, the Company), and their results of operations have been included in the consolidated financial statements since those respective dates.

The Company provides personalized, technology-enabled solutions that help people better understand, navigate, and utilize the healthcare system and their workplace benefits. The Company’s customers are primarily employers that contract with Accolade to provide their employees and their employees’ families (the members) a single place to turn for their health, healthcare, and benefits needs. The service is designed to drive better healthcare outcomes and increased satisfaction for the participants while lowering costs for the payor. The Company provides its services to customers throughout the United States.

(b) COVID-19

Due to the government-imposed quarantines and other public health safety measures put into place in March 2020, COVID-19 has caused disruption in the markets where the Company sells its offerings and related services. Although the Company has not experienced any significant financial impact as a result of the COVID-19 pandemic, the Company will continue to closely monitor for any changes to the Company’s operations and the operations of our customers.

On July 7, 2020, the Company closed its initial public offering of common stock (IPO) in which the Company issued and sold 11,526,134 shares (inclusive of the underwriters’ over-allotment option to purchase 1,503,408 shares) of common stock at $22.00 per share. The Company received net proceeds of $231,228 after deducting underwriting discounts and commissions, as well as offering costs of $4,596, of which $4,284 was paid as of August 31, 2020. Upon the closing of the IPO, all shares of outstanding convertible preferred stock converted into 29,479,521 shares of common stock, and an additional 1,401,836 shares of common stock were issued upon the automatic net exercise of warrants then outstanding.

Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Aug. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

(2) Basis of Presentation and Summary of Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended February 29, 2020 appearing in the Company’s Final Prospectus for our IPO, dated as of July 1, 2020 and filed with the Securities and Exchange Commission (the SEC) pursuant to Rule 424(b)(4) on July 2, 2020. Since the date of those audited financial statements, there have been no changes to the Company’s significant accounting policies, other than those detailed below.

(a) Basis of Presentation and Principles of Consolidation

Accolade’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the Company’s accounts and those of the

Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

(b) Unaudited Interim Financial Statements

The accompanying consolidated financial statements and the related footnote disclosures are unaudited. The unaudited consolidated interim financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s interim consolidated financial position as of August 31, 2020 and the results of its operations and its cash flows for the three and six months ended August 31, 2020 and 2019. The results for the three and six months ended August 31, 2020, are not necessarily indicative of results to be expected for the year ending February 28, 2021, any other interim periods, or any future year or period. The Company’s management believes that the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited financial statements and accompanying notes for the year ended February 29, 2020.

Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, including tools that enable the Company’s employees to interact with members and their providers, with no substantive plans to market such software at the time of development, are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post-implementation operational stage are expensed as incurred.

Costs related to minor upgrades, minor enhancements, and maintenance activities are expensed as incurred. Costs incurred during the application development stage of the project are capitalized.

Internal-use software is included in property and equipment and is amortized on a straight-line basis over 3 years.

For the three months ended August 31, 2020 and 2019, the Company capitalized $85 and $0, respectively, for internal-use software. For the six months ended August 31, 2020 and 2019, the Company capitalized $374 and $0, respectively, for internal-use software. Amortization expense related to capitalized internal-use software during the three months ended August 31, 2020 and 2019 was $1,120 and $1,054, respectively. Amortization expense related to capitalized internal-use software during the six months ended August 31, 2020 and 2019 was $2,131 and $2,431, respectively.

(d) Intangible Assets

As part of the acquisition of MD Insider, Inc. (MDI) in July 2019 (Note 4), the Company acquired an intangible asset in the form of acquired technology in the amount of $2,900. This intangible asset is subject to amortization and is being amortized on the straight-line basis over its estimated useful life of two years. Amortization expense related to the intangible asset was $362 and $121 during the three months ended August 31, 2020 and 2019, respectively, and $724 and $121 during the six months ended August 31, 2020 and 2019, respectively.

(e) Concentration of Credit Risk

Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents. The Company maintains its cash primarily with domestic financial institutions of high credit quality, which may exceed federal deposit insurance corporation limits. The Company invests its cash equivalents in highly rated money market funds. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents and performs periodic evaluations of the credit standing of such institutions.

Significant customers are those which represent 10% or more of the Company’s revenue during the periods. For each significant customer, revenue as a percentage of total revenue was as follows:


	For the three months ended August 31,				For the six months ended August 31,
	2020		2019		2020		2019
Customer 1	14	%	27	%	17	%	27	%
Customer 2	12	%	11	%	12	%	12	%
Customer 3	11	%	11	%	11	%	11	%
Total	37	%	49	%	40	%	50	%

Accounts receivable outstanding related to these customers at August 31, 2020 was as follows:


	August 31, 2020
Customer 1	$	—
Customer 2		—
Customer 3		6,670

(f) Deferred Offering Costs

The Company capitalized certain legal, accounting and other third-party fees that were directly associated with the IPO as deferred offering costs until the IPO was completed in July 2020. Upon the completion of the IPO, total deferred costs of $4,596 were recorded in stockholders’ equity (deficit) as a reduction of additional paid-in-capital. Deferred offering costs were $0 and $3,042 at August 31, 2020 and February 29, 2020, respectively, and were included within prepaid and other current assets on the accompanying consolidated balance sheet at February 29, 2020. As of August 31, 2020, $312 of deferred costs were included in accounts payable and accrued expenses.

(g) New Accounting Pronouncements Not Yet Adopted

Leases: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which affect certain aspects of the previously issued guidance. In December 2018, the FASB issued ASU No. 2018-20, Narrow-Scope Improvements for Lessor, Leases (Topic 842), which provides guidance on sales tax and other taxes collected from lessees. In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements to Topic 842, Leases, which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities, which delayed the adoption period of Topic 842. The guidance (collectively ASC 842) will require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. ASC 842 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASC 842 is effective for the Company for fiscal year ending February 28, 2023. Early adoption is permitted. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.

Credit Losses: In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 introduces the current expected credit loss (CECL) model, which will require entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. ASU 2016-13 is effective for the Company for fiscal year ending February 28, 2023. Early adoption is permitted. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.

Internal Use Software: In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud

Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use-software. This ASU is effective for the fiscal year ending February 28, 2022, and interim periods within the fiscal year ending February 28, 2023. Early adoption is permitted. The Company is evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption.

Revenue

6 Months Ended

Aug. 31, 2020

Revenue

Revenue

(3) Revenue

The Company earns revenue from its customers by providing personalized health guidance solutions to members. The Company’s solutions allow its members to interact with its Accolade Health Assistants and clinicians through various means of communication, including telephony and secure messaging and via its mobile application and member portal. The Company prices its personalized health guidance solutions using a recurring per-member-per-month fee (PMPM), typically with a portion of the fee calculated as the product of a fixed rate times the number of members (fixed PMPM fee), plus a variable PMPM fee calculated as the product of a variable rate times the number of members (variable PMPM fee). The fees associated with the variable PMPM fee can be earned through the achievement of performance metrics and/or the realization of healthcare cost savings resulting from the utilization of the Company’s services. Collectively, the fixed PMPM fee and variable PMPM fee are referred to as the total PMPM fee. The Company’s PMPM pricing varies by contract. In certain contracts, the maximum total PMPM fee varies during the contract term (total PMPM rate increases or decreases annually), while in other contracts, the total PMPM maximum fee is consistent over the term, yet the fixed and variable portions vary. For example, in certain contracts the fixed PMPM fee increases on an annual basis while the variable PMPM fee decreases on an annual basis, resulting in the same total PMPM fee throughout the term of the contract.

At contract inception, the Company assesses the type of services being provided and assesses the performance obligations in the contract. The Company’s contracts for personalized health guidance solutions generally include two performance obligations: stand ready services as discussed in the following sentence and reporting. The Company’s contracts include stand ready services to provide eligible participants with access to the Company’s services and to perform an unspecified quantity of interactions with members during the contract period. Accordingly, the Company’s services are generally viewed as stand ready performance obligations comprised of a series of distinct daily services that are substantially the same and have the same pattern of transfer. For the stand ready services, the Company satisfies these performance obligations over time and recognizes revenue related to its services as the services are provided using a measure of progress based upon the actual number of members eligible for the service during the respective period as a percentage of the estimated members expected to be eligible for the service over the term of the contract. The Company believes a measure of progress based on the number of members is the most appropriate measurement of control of the services being transferred to the customer as the amount of internal resources necessary to stand ready is directly correlated to the number of members who can use the services. In addition, the Company’s contracts may include additional add-on services as separate performance obligations that are also considered stand ready services. These add-on services have the same pattern of transfer and revenue recognition as discussed above.

As of August 31, 2020, $227,365 of revenue is expected to be recognized from remaining performance obligations and is expected to be recognized as follows:


Fiscal year ending February 28(29),
Remainder of 2021	$	77,630
2022		104,703
2023		35,033
2024		9,999
Total	$	227,365

The expected revenue includes variable fee estimates for the non-cancellable term of the Company’s contracts. The expected revenue does not include amounts of variable consideration that are constrained.

Significant changes in the deferred revenue balances during the six months ended August 31, 2020 and 2019 were the result of recognized revenue of $23,725 and $19,225 respectively, that were previously included in deferred revenue.

Revenue related to performance obligations satisfied in prior periods that was recognized during the three months ended August 31, 2020 and 2019 was $1,535 and $689, respectively. Revenue related to performance obligations satisfied in prior periods that was recognized during the six months ended August 31, 2020 and 2019 was $3,014 and $1,084, respectively. These amounts relate to prior changes in estimates that were due to the inclusion of consideration that was previously constrained related to the Company’s achievement of healthcare cost savings.

Cost to obtain and fulfill a contract

The Company capitalizes sales commissions paid to internal sales personnel that are both incremental to the acquisition of customer contracts and recoverable. These costs are recorded as deferred contract acquisition costs in the accompanying consolidated balance sheets. The Company capitalized commission costs of $1,999 and $229 for the three months ended August 31, 2020 and 2019, respectively. The Company capitalized commission costs of $2,502 and $523 for the six months ended August 31, 2020 and 2019, respectively. The Company defers costs based on its sales compensation plans only if the commissions are incremental and would not have occurred absent the customer contract. Payments to direct sales personnel are typically made in two increments as follows: 75% upon signature of the contract, with the remaining 25% upon customer launch. The Company does not pay commissions on contract renewals.

Deferred commissions paid on the initial acquisition of a contract are amortized ratably over an estimated period of benefit of five years, which is the estimated customer life. The Company determined the period of amortization for deferred commissions by taking into consideration current customer contract terms, historical customer retention, and other factors. Amortization is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $237 and $158 for the three months ended August 31, 2020 and 2019, respectively. Amortization is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $470 and $314 for the six months ended August 31, 2020 and 2019, respectively. The Company periodically reviews deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the estimated period of benefit. There were no impairment losses recorded during the periods presented.

For certain customer contracts, the Company may incur direct and incremental costs related to customer set-up and implementation. The Company recorded deferred implementation costs of $166 and $138 for the three months ended August 31, 2020 and 2019, respectively. The Company recorded deferred implementation costs of $310 and $189 for the six months ended August 31, 2020 and 2019, respectively These implementation costs are deferred and amortized over the expected useful life of the Company’s customers, which is five years. Amortization is included in cost of revenues in the Company’s consolidated statements of operations and totaled $110 and $75 for the three months ended August 31, 2020 and 2019, respectively, and $270 and $146 for the six months ended August 31, 2020, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Acquisition of MD Insider

6 Months Ended

Aug. 31, 2020

Acquisition of MD Insider

Acquisition of MD Insider

(4) Acquisition of MD Insider

On July 31, 2019, the Company acquired the outstanding equity interests of MDI. Based in California, MDI is a provider of machine learning-enabled physician performance transparency. The aggregate purchase price consideration of $6,488 was paid primarily through the issuance of up to 462,691 shares of the Company’s common stock, of which 386,339 and 289,320 were issued as of August 31, 2020 and February 29, 2020, respectively, with the remaining shares issuable subject to certain working capital and indemnity adjustments (if applicable). Shareholders were eligible to receive 100,607 additional shares of the Company’s common stock upon the completion of a platform solution, as defined in the purchase agreement (MDI Earnout). The deadline to complete the cost transparency platform solution in order to qualify for the MDI Earnout was initially March 1, 2020, and was subsequently extended to July 1, 2020, by which time it had been earned. During August 2020, the Company issued 96,487 shares of common stock in connection with the MDI Earnout, with the remaining 4,120 shares of common stock expected to be issued during the remainder of fiscal 2021. The MDI Earnout was accounted for as an equity classified instrument and is not subject to remeasurement in subsequent periods.

Fair Value Measurements

6 Months Ended

Aug. 31, 2020

Fair Value Measurements

Fair Value Measurements

(5) Fair Value Measurements

The following table sets forth the fair value of the Company’s financial assets and within the fair value hierarchy:


	August 31, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets
Cash equivalents:
Money market funds	$	212,221	$	—	$	—	$	212,221

	February 29, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets
Cash equivalents:
Money market funds	$	21,332	$	—	$	—	$	21,332
Certificates of deposit	$	5,000	$	—	$	—	$	5,000

Also, the carrying value of the Company’s debt approximates fair value based on interest rates available for debt with similar terms at February 29, 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt Facility

6 Months Ended

Aug. 31, 2020

Debt Facility

Debt Facility

(6) Debt Facility

(a) Term Loan and Revolving Credit Facility

Term Loan

On January 30, 2017, the Company entered into a $20,000 term loan facility (the Term Loan). Under the terms of the Term Loan, the Company was permitted to borrow up to an aggregate principal amount of $20,000, with the total amount of available borrowings subject to certain monthly recurring revenue calculations.

Interest on the outstanding balance was payable monthly at a rate of 11.75%. Principal payments were scheduled to be made monthly beginning January 31, 2019, in equal installments calculated as 1/24th of the outstanding balance on December 31, 2018. However, the Company had the ability to extend the interest-only period for an additional twelve months, subject to an additional fee and other conditions, which would extend the maturity date from December 31, 2020 to December 31, 2021. The Company committed to extend this interest-only period, and the maturity date was extended to December 31, 2021. As a result, principal payments were scheduled to start January 2020. During July 2019, an amendment (Amendment 1) was entered into which eliminated monthly payments, with principal to be paid in full in December 2022.

Amendment 1 resulted in an additional $2,000 of availability, increasing total availability to $22,000. Pursuant to the Amendment 1, interest on the outstanding balance was payable monthly at a rate of 10.00% per annum and interest payable-in-kind accrued at a rate of 2.00% per annum, compounded monthly, and was due at maturity. Additionally, the Company was required to pay an exit fee equal to 1% of the aggregate principal borrowings at the time of maturity (end of term charge).

During May 2020, the Company entered into an additional amendment (Amendment 2) to the existing Term Loan agreement, which resulted in an additional $2,500 of availability, increasing total availability to $24,500. Pursuant to Amendment 2, interest on the outstanding balance was payable monthly at a rate of 8.00% per annum and interest payable-in-kind accrued at a rate of 4.50% per annum, compounded monthly, and was due at maturity. Additionally, the Company was required to pay a prepayment fee equal to 2% of the aggregate principal borrowings if prepayment occurred on or prior to December 31, 2020, and 0.50% if prepayment occurred after December 31, 2020 but on or prior to maturity (prepayment fee), plus the end of term charge. Amendment 2 was accounted for as a debt modification, and all new lender fees were recorded as additional debt discount and third-party costs incurred in connection with the amendment were expensed as incurred.

During July 2020 the Company terminated the Term Loan. The Company repaid the outstanding balance of $24,500 in its entirety, along with accrued interest in kind of $600, the end of term charge of $251, and the prepayment fee of $502.

During the three months ended August 31, 2020 and 2019, the Company recorded interest expense of $2,043 and $647, respectively. Included in interest expense for the three months ended August 31, 2020, was $1,045 related to the remaining debt discount that was recorded as interest expense as a result of the termination, as well as $502 related to the prepayment fee and the remaining unamortized amount related to the end of term charge. During the six months ended August 31, 2020 and 2019, the Company recorded interest expense of $2,837 and $1,316, respectively.

Revolving Credit Facility

During July 2019, the Company entered into a revolving credit facility (the 2019 Revolver) with a syndicate of two banks. Under the 2019 Revolver, the Company has the capacity to borrow up to $50,000 on a revolving facility, and to the extent certain customer bookings thresholds are achieved, the capacity on the 2019 Revolver may increase by an additional amount of up to $30,000 (resulting in total potential availability of $80,000). Availability of borrowings on the 2019 Revolver is calculated as a multiple of the Company’s eligible monthly recurring revenues (as defined in the 2019 Revolver). As of August 31, 2020 and February 29, 2020, the Company had outstanding letters of credit to serve as office landlord security deposits in the amount of $1,334. These letters of credit are secured through the revolving credit facility, thus reducing the capacity of the revolving credit facility to $48,666 as of August 31, 2020. No amounts are outstanding as of August 31, 2020.

The 2019 Revolver has a term of 24 months, and there is an automatic extension of an additional 12-month period should the Company achieve certain revenues, as defined. The interest rate on the outstanding borrowings are at LIBOR plus 350 basis points or Base Rate (as defined) plus 250 basis points, with the LIBOR rate and Base Rate subject to minimum levels. Interest payments are to be made in installments of one, two, or three months as chosen by the Company.

The 2019 Revolver was accounted for as a debt modification to which all new lender and third-party fees were deferred. Issuance costs of $543, including the fair value of warrants issued, were capitalized and are being amortized to interest expense over the remainder of the 2019 Revolver term. During the three months ended August 31, 2020 and 2019, the Company recorded interest expense of $323 and $65, respectively, related to the revolving credit facility. During the six months ended August 31, 2020 and 2019, the Company recorded interest expense of $880 and $71, respectively. As of August 31, 2020 and 2019, the balance of deferred financing fees was $233 and $512, respectively, and is recorded in other assets in the accompanying consolidated balance sheets.

On August 21, 2020, the Company entered into an amendment to the 2019 Revolver which revised the terms of the revenue covenant and imposed minimum LIBOR and Base Rate levels. On September 11, 2020, the Company entered into another amendment to the 2019 Revolver which modified the amount of cash required to be held at each of the two lenders participating in the 2019 Revolver.

The 2019 Revolver is collateralized by substantially all of the assets of the Company.

Current and long-term debt consisted of the following at February 29, 2020:


	February 29, 2020

Current - Interest payable – 2019 Revolver	$	—
Long-term
2019 Revolver	$	—
Term loan - principal outstanding	$	22,000
Interest payable-in-kind		273
Unamortized issuance costs		(1,129)
Total long-term	$	21,144

Stockholders' Equity

6 Months Ended

Aug. 31, 2020

Stockholders' Equity

Stockholders' Equity

(7) Stockholders’ Equity

(a) Common Stock

The Company closed its IPO on July 7, 2020 and filed an amended and restated certificate of incorporation authorizing the issuance of up to 500,000,000 shares of common stock, par value $0.0001 per share.

Upon completion of the IPO, the Company issued and sold 11,526,134 shares of common stock at an issuance price of $22.00 per share resulting in net proceeds of $231,229, after deducting underwriting discounts, commissions and offering costs. In addition, all outstanding shares of Convertible Preferred stock converted into 29,479,521 shares of common stock and the Company issued 1,401,836 shares of common stock as a result of the automatic net exercise of warrants (See Note 8).

(b) Convertible Preferred Stock

On July 7, 2020, upon the closing of our IPO, all shares of our outstanding convertible preferred stock converted into 29,479,521 shares of common stock. As of August 31, 2020, there were no shares of convertible preferred stock issued and outstanding.

Equity-based Compensation and Warrants

6 Months Ended

Aug. 31, 2020

Equity-based Compensation and Warrants

Equity-based Compensation and Warrants

(8) Equity-based Compensation and Warrants

(a) Stock Options

In July 2020, the Company adopted the 2020 Equity Incentive Plan (the Incentive Plan), which authorized the Company to grant up to 4,300,000 shares of common stock to eligible employees, directors, and consultants to the Company in the form of stock options, restricted stock units, and other various equity awards, including any shares subject to stock options or other awards granted under the Company’s prior stock option plan that expire or terminate for any reason (other than being exercised in full) or are cancelled in accordance with the terms of the prior stock option plan. The Incentive Plan also includes an annual evergreen increase, and the amount, terms of grants, and exercisability provisions are determined by the board of directors. The term of an award may be up to 10 years and options generally vest over four years, with one quarter of an award vesting one year after grant and the remainder vesting on a monthly basis over three years. As of August 31, 2020, there were 3,981,071 shares of common stock available for future grants under the Incentive Plan.

In July 2020, the Board of Directors adopted the Company’s 2020 Employee Stock Purchase Plan (the ESPP), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO. The total shares of common stock initially reserved under the ESPP is limited to 1,100,000 shares. There was no activity during the second fiscal quarter ended August 31, 2020.

The following table summarizes the amount of stock-based compensation included in the consolidated statements of operations:


	Three months ended August 31,				Six months ended August 31,
	2020		2019		2020		2019
Cost of revenue	$	218	$	103	$	327	$	175
Product and technology		718		491		1,152		852
Sales and marketing		490		475		792		822
General and administrative		679		826		1,093		1,482
Total stock-based compensation	$	2,105	$	1,895	$	3,364	$	3,331

The following is a summary of stock option activity under the Incentive Plan:


		Weighted		Weighted
		average		remaining		Aggregate
		exercise		contractual life		intrinsic
	Stock Options	price		in years		value
Balance, February 29, 2020	7,996,056	$	6.19
Granted	2,149,575		17.25
Exercised	(571,382)		4.42
Forfeited	(147,684)		6.12
Balance, August 31, 2020	9,426,565	$	8.82	7.4	years	$	223,660
Vested and expected to vest as of August 31, 2020	9,426,565	$	8.82	7.4	years	$	223,660
Exercisable as of August 31, 2020	5,499,412	$	6.19	6.3	years	$	150,792

The aggregate intrinsic value of stock options exercised was $5,676 and $7,806 for the three and six months ended August 31, 2020, respectively. As of August 31, 2020, approximately $27,203 of unrecognized compensation expense related to our stock options is expected to be recognized over a weighted average period of 2.2 years.

During June 2020, the Company issued 525,907 fully-vested stock options in lieu of cash payments related to the Company’s fiscal 2020 bonus with a value of $5,735. These options are included in the table above.

(b) Common Stock Warrants

The following tables summarize the activity for the Company’s warrants for the six months ended August 31, 2020:


		Common Stock
		Warrants

Balance, February 29, 2020		1,653,268
Issued		—
Exercised		(160,000)
Automatic exercise of warrants in connection with IPO		(1,493,268)
Balance, August 31, 2020		—

On June 29, 2015, the Company issued a warrant to its initial customer to purchase up to 200,000 common shares. Based on the vesting provisions and the remaining period over which the warrant was exercisable, the maximum number of shares that could vest pursuant to the warrant was 160,000 shares of common stock, all of which were exercised in March 2020.

On July 7, 2020, upon the closing of our IPO, 1,401,836 shares of common stock were issued upon the automatic net exercise of all warrants that were outstanding as of the IPO date. There were no warrants outstanding as of August 31, 2020.

Income Taxes

6 Months Ended

Aug. 31, 2020

Income Taxes

Income Taxes

(9) Income Taxes

The provision for income taxes consists of provisions for federal, state and foreign income taxes. The effective tax rates for the periods ended August 31, 2020 and August 31, 2019, reflect the Company’s expected tax rate on reported income from continuing operations before income tax and tax adjustments. The Company operates in a global environment with significant operations in the U.S. and operations in the Czech Republic. Accordingly, the consolidated income tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various jurisdictions where the Company operates.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act also allows for retroactive accelerated income tax depreciation on certain leasehold improvement assets and changes to the limitations on business interest deductions for tax years beginning in 2019 and 2020 which increases the allowable business interest deduction from 30% to 50% of adjusted taxable income. The Company does not expect a material tax expense or tax benefit as a result of the CARES Act in the current period or subsequent periods.

For the three months ended August 31, 2020 and 2019, the Company recorded income tax expense of $18 and $14, respectively, which resulted in effective tax rates of (0.1%) for both periods. For the six months ended August 31, 2020 and 2019, the Company recorded income tax expense of $56 and $37, respectively, which resulted in effective tax rates of (0.2%) and (0.1%), respectively. The tax expense relates to the local tax expense recorded for the Czech Republic. The Company's U.S. losses did not result in a benefit due to the U.S. full valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders

6 Months Ended

Aug. 31, 2020

Net Loss Per Share Attributable to Common Stockholders

Net Loss Per Share Attributable to Common Stockholders

(10) Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the computation of basic and diluted net loss per share attributable to Accolade’s common stockholders:


	Three months ended				Six months ended
	August 31,				August 31,
	2020		2019		2020		2019
Net loss	$	(15,371)	$	(15,026)	$	(29,331)	$	(30,929)
Weighted-average shares used in computing net loss per share		33,029,147		5,336,501		20,277,416		5,141,047
Net loss per share attributable to common stockholders, basic and diluted	$	(0.47)	$	(2.82)	$	(1.45)	$	(6.02)

As the Company has reported net loss for each of the periods presented, all potentially dilutive securities are antidilutive. The following potential outstanding shares of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:


	August 31,
	2020	2019
Stock options	9,426,565	9,092,367
Common stock warrants	—	317,882
Total	9,426,565	9,410,249

Commitments

6 Months Ended

Aug. 31, 2020

Commitments

Commitments

(11) Commitments

(a) Legal Proceedings

The Company is involved in various claims, inquiries and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s financial position or liquidity.

On August 1, 2017, certain former and current employees filed a suit against the Company seeking back wages for unpaid overtime as a result of alleged misclassification by the Company under the Pennsylvania Minimum Wage Act and the Federal Fair Labor Standards Act. During March 2019, a settlement agreement (the Settlement Agreement) was executed by both parties in the amount of $1,100 (the Settlement). The Settlement Agreement was ultimately approved by the Court and the Company paid the Settlement during April 2020.

(b) Employment Agreements

Certain officers of the Company have employment agreements providing for severance, continuation of benefits, and other specified rights in the event of termination without cause, including in the event of a change of control of the Company, as defined in the agreements.

Change Healthcare Joint Development Agreement

6 Months Ended

Aug. 31, 2020

Change Healthcare Joint Development Agreement

Change Healthcare Joint Development Agreement

(12) Change Healthcare Joint Development Agreement

In February 2020, the Company entered into a joint development agreement, or JDA, and a data licensing agreement with Change Healthcare Holdings, or Change Healthcare, whereby Change Healthcare will be a strategic partner in providing various services to support the Company’s Total Care and Provider Services product offerings. Pursuant to the terms of the JDA, Change Healthcare is providing intellectual property (IP), technical know-how, and advisory services to the Company as it develops price transparency products under the JDA that will be utilized by the Company in several of its product offerings. Either party is permitted to sell the price transparency product within each party’s respective service offerings. Each party is entitled to a royalty from the other party in connection with any net sales associated with the price transparency product that was developed under the JDA, not to exceed $2,500 in cumulative royalty payments.

Concurrent with entering into the JDA, the Company entered into a five-year data licensing agreement with Change Healthcare who is one of the largest commercially available data set providers of de-identified claims in the United States. The licensing agreement includes annual increases in fees and the option to renew and extend beyond the initial five-year period. The annual licensing fees are subject to increases and decreases and contingent upon the achievement of performance objectives as defined in the data licensing agreement. Upfront payments for data licenses are deferred and will be amortized into cost of revenue, as they pertain to the delivery of the Company’s product offerings.

Upon entering into the JDA and data licensing agreement, the Company issued 251,211 restricted shares of its common stock to Change Healthcare at an estimated fair value of $15.40 per share, or $3,869 in aggregate value. Pursuant to the terms of the restricted share agreement, 150,727 of the shares vested immediately and the remaining 100,484 restricted shares will vest upon the achievement of certain product development milestones, as defined. During July 2020, 75,363 of these shares vested upon the achievement of certain milestones. The aggregate equity value was allocated to the JDA and data licensing agreement based on the relative fair value of the IP and technical know-how contributed by Change Healthcare within the JDA and the discounted pricing received from Change Healthcare within the data licensing agreement. The equity value allocated to the JDA and data licensing agreement was capitalized and deferred as internally developed software and other assets within the Company’s consolidated balance sheet, respectively, with an offsetting increase to additional paid-in capital. Costs that are capitalized and classified as internally developed software will be amortized within depreciation and amortization in the Company’s consolidated statement of operations.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Aug. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

Covid-19

Initial Public Offering

Basis of Presentation and Principles of Consolidation

Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Unaudited interim financial statements

Capitalized Internal-Use Software Costs

Costs related to minor upgrades, minor enhancements, and maintenance activities are expensed as incurred. Costs incurred during the application development stage of the project are capitalized.

Internal-use software is included in property and equipment and is amortized on a straight-line basis over 3 years.

Intangible Assets

Concentration of Credit Risk

Significant customers are those which represent 10% or more of the Company’s revenue during the periods. For each significant customer, revenue as a percentage of total revenue was as follows:


	For the three months ended August 31,				For the six months ended August 31,
	2020		2019		2020		2019
Customer 1	14	%	27	%	17	%	27	%
Customer 2	12	%	11	%	12	%	12	%
Customer 3	11	%	11	%	11	%	11	%
Total	37	%	49	%	40	%	50	%

Accounts receivable outstanding related to these customers at August 31, 2020 was as follows:


	August 31, 2020
Customer 1	$	—
Customer 2		—
Customer 3		6,670

Deferred Offering Costs

New Accounting Pronouncements Not Yet Adopted

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Aug. 31, 2020

Revenue [Member] | Customer Concentration Risk

Concentration Risk [Line Items]

Schedule of concentration of risk


	For the three months ended August 31,				For the six months ended August 31,
	2020		2019		2020		2019
Customer 1	14	%	27	%	17	%	27	%
Customer 2	12	%	11	%	12	%	12	%
Customer 3	11	%	11	%	11	%	11	%
Total	37	%	49	%	40	%	50	%

Accounts receivable [Member] | Credit Concentration Risk

Concentration Risk [Line Items]

Schedule of concentration of risk

Accounts receivable outstanding related to these customers at August 31, 2020 was as follows:


	August 31, 2020
Customer 1	$	—
Customer 2		—
Customer 3		6,670

Revenue (Tables)

6 Months Ended

Aug. 31, 2020

Revenue

Revenue expected to be recognized from remaining performance obligations


Fiscal year ending February 28(29),
Remainder of 2021	$	77,630
2022		104,703
2023		35,033
2024		9,999
Total	$	227,365

Fair Value Measurements (Tables)

6 Months Ended

Aug. 31, 2020

Fair Value Measurements

Schedule of fair value of financial assets


	August 31, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets
Cash equivalents:
Money market funds	$	212,221	$	—	$	—	$	212,221

	February 29, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets
Cash equivalents:
Money market funds	$	21,332	$	—	$	—	$	21,332
Certificates of deposit	$	5,000	$	—	$	—	$	5,000

Debt facility (Tables)

6 Months Ended

Aug. 31, 2020

Debt Facility

Schedule Of Debt


	February 29, 2020

Current - Interest payable – 2019 Revolver	$	—
Long-term
2019 Revolver	$	—
Term loan - principal outstanding	$	22,000
Interest payable-in-kind		273
Unamortized issuance costs		(1,129)
Total long-term	$	21,144

Equity-based Compensation and Warrants (Tables)

6 Months Ended

Aug. 31, 2020

Equity-based Compensation and Warrants

Schedule of stock-based compensation


	Three months ended August 31,				Six months ended August 31,
	2020		2019		2020		2019
Cost of revenue	$	218	$	103	$	327	$	175
Product and technology		718		491		1,152		852
Sales and marketing		490		475		792		822
General and administrative		679		826		1,093		1,482
Total stock-based compensation	$	2,105	$	1,895	$	3,364	$	3,331

Schedule of stock option activity


		Weighted		Weighted
		average		remaining		Aggregate
		exercise		contractual life		intrinsic
	Stock Options	price		in years		value
Balance, February 29, 2020	7,996,056	$	6.19
Granted	2,149,575		17.25
Exercised	(571,382)		4.42
Forfeited	(147,684)		6.12
Balance, August 31, 2020	9,426,565	$	8.82	7.4	years	$	223,660
Vested and expected to vest as of August 31, 2020	9,426,565	$	8.82	7.4	years	$	223,660
Exercisable as of August 31, 2020	5,499,412	$	6.19	6.3	years	$	150,792

Schedule of warrants


		Common Stock
		Warrants

Balance, February 29, 2020		1,653,268
Issued		—
Exercised		(160,000)
Automatic exercise of warrants in connection with IPO		(1,493,268)
Balance, August 31, 2020		—

Net Loss Per Share Attributable to Common Stockholders (Tables)

6 Months Ended

Aug. 31, 2020

Net Loss Per Share Attributable to Common Stockholders

Schedule of computation of basic and diluted net loss per share


	Three months ended				Six months ended
	August 31,				August 31,
	2020		2019		2020		2019
Net loss	$	(15,371)	$	(15,026)	$	(29,331)	$	(30,929)
Weighted-average shares used in computing net loss per share		33,029,147		5,336,501		20,277,416		5,141,047
Net loss per share attributable to common stockholders, basic and diluted	$	(0.47)	$	(2.82)	$	(1.45)	$	(6.02)

Schedule of common stock were excluded from the computation of diluted net loss per share attributable to common stockholders


	August 31,
	2020	2019
Stock options	9,426,565	9,092,367
Common stock warrants	—	317,882
Total	9,426,565	9,410,249

Background - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands			2 Months Ended	6 Months Ended
	Jul. 08, 2020	Jul. 07, 2020	Aug. 31, 2020	Aug. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Shares issued on conversion of convertible preferred stock	29,479,521		29,479,521	29,479,521
Number of additional shares issued	1,401,836	1,401,836	1,401,836
IPO
Subsidiary, Sale of Stock [Line Items]
Shares issued		11,526,134
Share Price		$ 22.00
Proceeds from issuance of common stock		$ 231,228
Offering Costs		$ 4,596
IPO \| Prepaids and other assets
Subsidiary, Sale of Stock [Line Items]
Offering Costs				$ 4,284
Overallotment
Subsidiary, Sale of Stock [Line Items]
Shares issued		1,503,408

Basis of Presentation and Summary of Significant Accounting Policies - Capitalized Internal-Use Software Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Property, Plant and Equipment [Line Items]
Amortization expenses			$ 3,977	$ 4,382
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Useful life			3 years
Capitalized cost	$ 85	$ 0	$ 374	0
Amortization expenses	$ 1,120	$ 1,054	$ 2,131	$ 2,431

Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets (Details) - MD Insider Inc - Technology - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 2,900
Estimated useful life	2 years
Amortization expense		$ 362	$ 121	$ 724	$ 121

Basis of Presentation and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Customer 3
Concentration Risk [Line Items]
Accounts receivable	$ 6,670		$ 6,670
Customer Concentration Risk \| Revenue [Member]
Concentration Risk [Line Items]
Revenue (as a percent)	37.00%	49.00%	40.00%	50.00%
Customer Concentration Risk \| Revenue [Member] \| Customer 1
Concentration Risk [Line Items]
Revenue (as a percent)	14.00%	27.00%	17.00%	27.00%
Customer Concentration Risk \| Revenue [Member] \| Customer 2
Concentration Risk [Line Items]
Revenue (as a percent)	12.00%	11.00%	12.00%	12.00%
Customer Concentration Risk \| Revenue [Member] \| Customer 3
Concentration Risk [Line Items]
Revenue (as a percent)	11.00%	11.00%	11.00%	11.00%

Basis of Presentation and Summary of Significant Accounting Policies - Deferred Offering Costs (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Feb. 29, 2020
Deferred Offering Costs [Line Items]
Deferred Offering Costs	$ 4,596
Prepaids and other assets
Deferred Offering Costs [Line Items]
Deferred Offering Costs	0	$ 3,042
Accounts payable and accrued expenses
Deferred Offering Costs [Line Items]
Deferred Offering Costs	$ 312

Revenue - Revenue and Deferred Revenue (Details) $ in Thousands	Aug. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue	$ 227,365
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue	$ 77,630
Revenue remaining performance obligation satisfaction period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue	$ 104,703
Revenue remaining performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue	$ 35,033
Revenue remaining performance obligation satisfaction period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue	$ 9,999
Revenue remaining performance obligation satisfaction period	1 year

Revenue - Revenue and Deferred Revenue Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Revenue
Contract with customer liability revenue recognized			$ 23,725	$ 19,225
Revenue related to performance obligations satisfied in prior periods	$ 1,535	$ 689	$ 3,014	$ 1,084

Revenue - Cost to obtain and fulfill a contract (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)	Aug. 31, 2020 USD ($) item	Aug. 31, 2019 USD ($)
Capitalized Contract Cost [Line Items]
Deferred amortization term	5 years		5 years
Impairment loss on deferred commission	$ 0	$ 0	$ 0	$ 0
Selling and Marketing Expense [Member]
Capitalized Contract Cost [Line Items]
Amortization of contract cost	237	158	$ 470	314
Sales commission
Capitalized Contract Cost [Line Items]
Number of increments in which payment to sales person is made. \| item			2
Sales commission paid upon signing of contract (as a percent)			75.00%
Sales commission paid upon customer launch (as a percent)			25.00%
Amortization of contract cost	$ 1,999	229	$ 2,502	523
Customer set up cost
Capitalized Contract Cost [Line Items]
Deferred amortization term	5 years		5 years
Amortization of contract cost	$ 110	75	$ 270	146
Deferred Implementation Costs [Member]
Capitalized Contract Cost [Line Items]
Capitalized Contract Cost, Net		$ 138		138
Amortization of contract cost	$ 166		$ 310	$ 189

Acquisition of MD Insider - Shares Issued (Details) - MD Insider Inc - USD ($) $ in Thousands	1 Months Ended				6 Months Ended
	Aug. 31, 2020	Jul. 31, 2020	Feb. 29, 2020	Jul. 31, 2019	Aug. 31, 2019
Business Acquisition [Line Items]
Aggregate purchase price consideration				$ 6,488
Shares issued			289,320		386,339
Additional shares issued	96,487	100,607
Stock Available For Issuance	4,120
Maximum
Business Acquisition [Line Items]
Shares issued				462,691

Fair Value Measurements (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Feb. 29, 2020
Money Market Funds
Cash equivalents:
Fair value	$ 212,221	$ 21,332
Money Market Funds \| Level 1
Cash equivalents:
Fair value	$ 212,221	21,332
Certificates of Deposit
Cash equivalents:
Fair value		5,000
Certificates of Deposit \| Level 1
Cash equivalents:
Fair value		$ 5,000

Debt facility (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
Debt facility (Details) - USD ($) $ in Thousands	Jul. 31, 2020	May 31, 2020	Jul. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Feb. 29, 2020	Jan. 30, 2017
Debt Instrument [Line Items]
Interest Rate		8.00%
Debt issuance cost								$ 1,129
Repayment of principle portion of debt						$ 73,166
Repayment of accrued interest in kind						$ 1,316	265
Interest Payable								273
Term Loan
Debt Instrument [Line Items]
Debt Instrument, Face Amount									$ 20,000
Maximum Borrowing Capacity		$ 24,500	$ 22,000						$ 20,000
Interest Rate			10.00%	11.75%		11.75%
Line of Credit Facility, Additional Borrowing Capacity		$ 2,500	$ 2,000
Interest Payable in Kind Accrued Rate		4.50%	2.00%
Debt instrument exit fee			1.00%
Repayment of principle portion of debt	$ 24,500
Repayment of accrued interest in kind	600
Debt instrument end charges	251
Debt instrument prepayment fee	$ 502			$ 502
Interest expenses				2,043	$ 647	$ 2,837	1,316
Amortization of debt discount				1,045
Long-term Debt								$ 22,000
Term Loan \| Prepayment of Loan Occur on or Before December 31, 2020
Debt Instrument [Line Items]
Debt instrument exit fee		2.00%
Term Loan \| Prepayment of Loan Occur on or After December 31, 2020
Debt Instrument [Line Items]
Debt instrument exit fee		0.50%
Revolving Credit Facility, 2019
Debt Instrument [Line Items]
Maximum Borrowing Capacity			$ 50,000	80,000		80,000
Debt issuance cost				543		543
Line of Credit Facility, Additional Borrowing Capacity			$ 30,000
Interest expenses				323	$ 65	880	$ 71
Long-term Debt				$ 48,666		$ 48,666

Debt facility - Warrant Rights (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Feb. 29, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Long-term Debt					$ 21,144
Debt issuance cost					1,129
Long-term Line of Credit	$ 1,334		$ 1,334		$ 1,334
Other Assets
Debt Instrument [Line Items]
Debt Issuance Costs, Net	233	$ 512	233	$ 512
Revolving Credit Facility, 2019
Debt Instrument [Line Items]
Maximum Borrowing Capacity	80,000		80,000			$ 50,000
Additional Borrowing Capacity						$ 30,000
Long-term Debt	0		0
Debt issuance cost	543		$ 543
Term of debt			24 months
Extension term of debt			12 months
Interest Expense, Debt	$ 323	$ 65	$ 880	$ 71
London Interbank Offered Rate \| Revolving Credit Facility, 2019
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			3.50%
Base Rate \| Revolving Credit Facility, 2019
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.50%

Debt facility - Interest Payable (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Feb. 29, 2020
Debt Instrument [Line Items]
Interest Payable in Kind		$ 273
Unamortized issuance costs		(1,129)
Long-term Debt		21,144
Term Loan
Debt Instrument [Line Items]
Long-term Debt		$ 22,000
Revolving Credit Facility, 2019
Debt Instrument [Line Items]
Long-term Debt	$ 48,666
Unamortized issuance costs	(543)
Long-term Debt	$ 0

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands			2 Months Ended	3 Months Ended
	Jul. 08, 2020	Jul. 07, 2020	Aug. 31, 2020	Aug. 31, 2020	Feb. 29, 2020
Class of Stock [Line Items]
Par Value			$ 0.0001	$ 0.0001	$ 0.0001
Common Stock, Par or Stated Value Per Share		$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized		500,000,000	500,000,000	500,000,000	500,000,000
Common stock issue price per share			$ 22.00	$ 22.00
New common stock issued and sold			11,526,134
Preferred stock, shares authorized			25,000,000	25,000,000	25,000,000
Preferred stock, shares issued			0	0	19,513,939
Preferred stock, shares outstanding			0	0	19,513,939
Carrying value					$ 233,022
Shares issued on conversion of convertible preferred stock	29,479,521		29,479,521	29,479,521
Net Proceeds			$ 231,229
Issuance costs				$ 4,596
Number of additional shares issued	1,401,836	1,401,836	1,401,836
Convertible Preferred stock
Class of Stock [Line Items]
Preferred stock, shares issued			0	0
Preferred stock, shares outstanding			0	0
Shares issued on conversion of convertible preferred stock		29,479,521

Equity-based Compensation and Warrants - Shares (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		$ 2,105	$ 1,895	$ 3,364	$ 3,331
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options issued	525,907
Stock options issued value	$ 5,735
Aggregate intrinsic value of stock options		5,676		7,806
Unrecognized compensation expense		$ 27,203		$ 27,203
Weighted average period				2 years 2 months 12 days
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for future grants		3,981,071		3,981,071
2020 Equity Incentive Plan \| Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized to be issued		4,300,000		4,300,000
Term of option				10 years
Vesting period				4 years
2020 Equity Incentive Plan \| Stock Option \| Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Vesting percentage				25.00%
2020 Equity Incentive Plan \| Stock Option \| Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Vesting percentage				75.00%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock initially reserved		1,100,000		1,100,000

Equity-based Compensation and Warrants - Compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Compensation expense	$ 2,105	$ 1,895	$ 3,364	$ 3,331
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Compensation expense	218	103	327	175
Product and technology
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Compensation expense	718	491	1,152	852
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Compensation expense	490	475	792	822
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Compensation expense	$ 679	$ 826	$ 1,093	$ 1,482

Equity-based Compensation and Warrants - Award Option (Details) - 2020 Equity Incentive Plan $ / shares in Units, $ in Thousands	6 Months Ended
	Aug. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance, February 29, 2020 \| shares	7,996,056
Granted \| shares	2,149,575
Exercised \| shares	(571,382)
Forfeited \| shares	(147,684)
Balance, August 31, 2020 \| shares	9,426,565
Vested and expected to vest as of August 31, 2020 \| shares	9,426,565
Exercisable as of August 31, 2020 \| shares	5,499,412
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Balance, February 29, 2020 \| $ / shares	$ 6.19
Granted \| $ / shares	4.42
Exercised \| $ / shares	17.25
Forfeited \| $ / shares	6.12
Balance, August 31, 2020 \| $ / shares	8.82
Exercisable as of August 31, 2020 \| $ / shares	6.19
Vested and expected to vest as of August 31, 2020 \| $ / shares	$ 8.82
Weighted remaining contractual life in years	7 years 4 months 24 days
Vested and expected to vest as of August 31, 2020	7 years 4 months 24 days
Exercisable as of August 31, 2020	6 years 3 months 18 days
Balance, August 31, 2020 \| $	$ 223,660
Vested and expected to vest as of August 31, 2020 \| $	223,660
Exercisable as of August 31, 2020 \| $	$ 150,792

Equity-based Compensation and Warrants - Equity Instrument (Details) - shares				2 Months Ended	6 Months Ended
	Jul. 08, 2020	Jul. 07, 2020	Jul. 29, 2015	Aug. 31, 2020	Aug. 31, 2020
Class of Warrant or Right [Roll Forward]
Number of additional shares issued	1,401,836	1,401,836		1,401,836
Common stock warrants
Class of Warrant or Right [Roll Forward]
Balance, February 29, 2020					1,653,268
Exercised					(160,000)
Automatic exercise of warrants in connection with IPO					(1,493,268)
Balance, August 31, 2020				0	0
Common stock warrants \| Customer Warrant
Class of Warrant or Right [Roll Forward]
Exercisable			160,000
Number of Securities Called by Warrants or Rights			200,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		8 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Aug. 31, 2019	Aug. 31, 2020	Dec. 31, 2019
Income Taxes
Percentage of deductions from adjustable taxable income					50.00%	30.00%
Income tax expense	$ 18	$ 14	$ 56	$ 37
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	0.10%	0.10%	0.20%	0.10%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Aug. 31, 2020	May 31, 2020	Aug. 31, 2019	May 31, 2019	Aug. 31, 2020	Aug. 31, 2019
Net Loss Per Share Attributable to Common Stockholders
Net loss	$ (15,371)	$ (13,960)	$ (15,026)	$ (15,903)	$ (29,331)	$ (30,929)
Weighted-average shares used in computing net loss per share	33,029,147		5,336,501		20,277,416	5,141,047
Net loss per share attributable to common stockholders, basic and diluted	$ (0.47)		$ (2.82)		$ (1.45)	$ (6.02)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Net Loss Per Share Attributable to Common Stockholders - Stock Options (Details) - shares	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	9,426,565	9,410,249
Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	9,426,565	9,092,367
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share		317,882

Commitments - Legal Proceedings (Details) $ in Thousands	1 Months Ended
Commitments - Legal Proceedings (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Certain former and current employees case
Loss Contingencies [Line Items]
Litigation settlement	$ 1,100

Change Healthcare Joint Development Agreement (Details) - Joint Development Agreement and Data Licensing Agreement - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Jul. 31, 2020	Feb. 29, 2020
Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cumulative royalty payments		$ 2,500
Change Healthcare Holdings
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
License agreement term (in years)		5 years
License agreement renewal term (in years)		5 years
Change Healthcare Holdings \| Restricted shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Granted		251,211
Estimated fair value of common stock		$ 15.40
Aggregate value of shares		$ 3,869
Vested shares	75,363	150,727
Non-vested shares		100,484