Balance Sheet Components

9 Months Ended

12 Months Ended

Oct. 31, 2020

Jan. 31, 2021

Balance Sheet Components [Line Items]

5.	Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consists of the following:


	October 31,			January 31,
(in thousands)	2021			2021
Satellites*	$	306,989		$	302,577
Leasehold improvements		15,448			15,630
Ground stations and ground station equipment		12,648			12,560
Office furniture, equipment and fixtures		5,077			4,995
Computer equipment and purchased software		8,094			7,837

Total property and equipment, gross		348,256			343,599
Less: Accumulated depreciation		(210,245	)		(183,744	)

Total property and equipment, net	$	138,011		$	159,855

*	Satellites include $9.1 million and $13.3 million of satellites in process and not in service as of October 31, 2021 and January 31, 2021, respectively.

Interest expense associated with manufactured satellites was not material for the nine months ended October 31, 2021 and 2020.

Total depreciation expense for the nine months ended October 31, 2021 and 2020 was $28.1 million and $38.9 million, respectively, of which $24.5 million and $34.0 million, respectively, was depreciation expense specific to satellites.

Capitalized

Internal-Use

Software Development Costs

Capitalized

internal-use

software costs, net of accumulated amortization consists of the following:


	October 31,			January 31,
(in thousands)	2021			2021
Capitalized internal-use software	$	35,370		$	32,425
Less: Accumulated amortization		(24,897	)		(20,431	)

	$	10,473		$	11,994

Interest expense associated with capitalized

internal-use

software costs was not material for the nine months ended October 31, 2021 and 2020.

Amortization expense for capitalized

internal-use

software for the nine months ended October 31, 2021 and 2020 was $4.5 million and $5.5 million, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible assets consist of the following:


	October 31, 2021										January 31, 2021
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation			Net Carrying Amount
Developed technology	$	8,070	$	(7,311	)	$	(9	)	$	750	$	8,070	$	(6,869	)	$	(9	)	$	1,192
Image library		11,983		(10,449	)		44			1,578		11,430		(10,203	)		104			1,331
Customer relationships		3,280		(2,017	)		9			1,272		3,280		(1,615	)		9			1,674
Trade names and other		3,755		(2,562	)		39			1,232		3,755		(2,318	)		39			1,476

Total intangible assets		27,088		(22,339	)		83			4,832		26,535		(21,005	)		143			5,673

Goodwill	$	86,587	$	—		$	1,806		$	88,393		86,587	$	—		$	1,806		$	88,393

Amortization expense for the nine months ended October 31, 2021 and 2020 was $1.3 million and $1.9 million, respectively.

There have been no material changes to the Company’s future amortization of intangible assets as of October 31, 2021.

Prepaid Expenses and Other Assets

Prepaid expenses and other current assets consist of the following:


	October 31,		January 31,
(in thousands)	2021		2021
R&D funding receivables (1)	$	7,705	$	—
Prepaid tax and withholding tax receivables		1,030		1,761
Prepaid satellite launch services		2,480		—
Deferred commissions		1,206		1,030
Deposits		727		667
Restricted cash		309		375
Other prepayments and receivables		5,611		3,301

Total prepaid expenses and other current assets	$	19,068	$	7,134

Other

non-current

assets consist of the following:


	October 31,		January 31,
(in thousands)	2021		2021
Deferred offering costs	$	6,260	$	—
Deferred commissions		1,102		1,697
Prepaid satellite launch services		1,473		772
Other non-current assets		142		515

Total other non-current assets	$	8,977	$	2,984

Accrued and Other Current Liabilities

Accrued liabilities and other current liabilities consist of the following:


	October 31,		January 31,
(in thousands)	2021		2021
Deferred R&D service liability (1)	$	13,179	$	8,208
Payroll and related expenses		3,873		3,229
Customer payable (2)		—		10,000
Deferred hosting costs		3,890		2,301
Deferred rent		2,160		2,215
Deferred offering costs		1,129		—
Accrued interest payable		616		616
Withholding taxes and other taxes payable		967		841
Other accruals		2,828		2,785

Total accrued and other current liabilities	$	28,642	$	30,195

(1)

In December 2020, the Company entered into a development services agreement, whereby the Company agreed to provide the technical knowledge and services to design and develop certain prototype satellites and deliver and test early data collected (the “R&D Services Agreement”). The R&D Services Agreement is unrelated to the Company’s ordinary business activities and provides for a fee of $40.2 million, to be paid to the Company as specified milestones are achieved over a three-year period. The Company has discretion in managing the activities under the R&D Services Agreement and retains all developed intellectual property. The Company has no obligation to repay any of the funds received regardless of the outcome of the development work; therefore, the arrangement is accounted for as funded research and development pursuant to ASC

730-20,

Research and Development

. As ASC

730-20

does not indicate the accounting model for research and development services, the Company determined the total transaction price is taken over the agreement term as a reduction of research and development expenses based on a cost incurred method. Through October 31, 2021, the Company has received $8.3 million under the R&D Services Agreement. As of October 31, 2021, the Company has the contractual right to receive an additional $7.7 million under the R&D Services Agreement, which is included in Prepaid expenses and other current assets. The deferred R&D service liability was $13.2 million and $8.2 million as of October 31, 2021 and January 31, 2021, respectively, which is included in accrued and other current liabilities.

(2)	Customer payable reflects consideration due to a customer as a result of a legal settlement agreement related to a revenue share arrangement. The customer payable was estimated at the inception of the contract and accounted for as a reduction in the customer’s transaction price.

6.	Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consists of the following:


	January 31,
(in thousands)	2021			2020
Satellites*	$	302,577		$	314,097
Leasehold improvements		15,630			15,537
Ground stations and ground station equipment		12,560			12,196
Office furniture, equipment and fixtures		4,995			4,909
Computer equipment and purchased software		7,837			7,588

Total property and equipment, gross		343,599			354,327
Less: Accumulated depreciation		(183,744	)		(167,732	)

Total property and equipment, net	$	159,855		$	186,595

*	Satellites include $13.3 million and $48.8 million of satellites in process and not in service as of January 31, 2021 and 2020, respectively.

Interest expense associated with manufactured satellites was not material for the years ended January 31, 2021 and 2020.

The Company’s long-lived assets by geographic region are a

follows:


	January 31,
(in thousands)	2021		2020
United States	$	156,537	$	184,973
Rest of the world		3,318		1,622

Total property and equipment, net	$	159,855	$	186,595

The Company concluded that satellites in s

rvice conti

ue to be owned by the U.S. entity and accordingly are classified as U.S. assets in the table above. No single country other than the U.S. accounted for more than 10% of total property and equipment, net, as of January 31, 2021 and 2020.

Total depreciation expense for the year ended January 31, 2021 and 2020 was $52.7 million and $69.1 million, respectively, of which $44.2 million and $58.6 million, respectively, was depreciation expense specific to satellites.

Capitalized

Internal-Use

Software Development Costs

Capitalized

internal-use

software costs, net of accumulated amortization consists of the following:


	January 31,
(in thousands)	2021			2020
Capitalized internal-use software	$	32,425		$	28,045
Less: Accumulated amortization		(20,431	)		(13,553	)

	$	11,994		$	14,492

Interest expense associated with capitalized

internal-use

software costs was not material for the years ended January 31, 2021 and 2020.

Amortization expense for capitalized

internal-use

software for the years ended January 31, 2021 and 2020 was $7.1 million and $5.3 million, respectively.

Estimated future amortization expense of capitalized

internal-use

software at January 31, 2021, is as follows:


(in thousands)
2022	$	5,193
2023		2,361
2024		2,102
2025		1,629
2026		709

	$	11,994

Goodwill and Intangible Assets

Goodwill and Intangible assets consist of the following:


	January 31, 2021										January 31, 2020
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation			Net Carrying Amount
Developed technology	$	8,070	$	(6,869	)	$	(9	)	$	1,192	$	8,070	$	(6,283	)	$	(9	)	$	1,778
Image library		11,430		(10,203	)		104			1,331		10,756		(9,400	)		167			1,523
Customer relationships		3,280		(1,615	)		9			1,674		3,280		(1,003	)		8			2,285
Trade names and other		3,755		(2,318	)		39			1,476		3,695		(1,820	)		39			1,914

Total intangible assets	$	26,535	$	(21,005	)	$	143		$	5,673	$	25,801	$	(18,506	)	$	205		$	7,500

Goodwill	$	86,587	$	—		$	1,806		$	88,393	$	86,587	$	—		$	1,806		$	88,393

No impairment charges were recognized related to intangible assets (including goodwill) in the years ended January 31, 2021 and 2020.

Amortization expense for the years ended January 31, 2021 and 2020 was $2.4 million and $3.2 million, respectively.

Estimated future amortization expense of intangible assets at January 31, 2021, is as follows:


(in thousands)
2022	$	1,848
2023		1,579
2024		1,509
2025		367
2026		90
Thereafter		280

	$	5,673

The change in the carrying amount of goodwill during the years ended January 31, 2021 and 2020 is as follows:


	January 31,
(in thousands)	2021		2020
Beginning of period	$	88,393	$	75,097
Acquisition		—		13,296

End of period	$	88,393	$	88,393

Prepaid Expenses and Other Assets

Prepaid expenses and other current assets consist of the following:


	January 31,
(in thousands)	2021		2020
Prepaid tax and withholding tax receivables	$	1,761	$	2,641
Prepaid satellite launch services		—		1,818
Deferred commissions		1,030		1,534
Deposits		667		757
Restricted cash		375		1,576
Other prepayments and receivables		3,301		2,592

Total prepaid expenses and other current assets	$	7,134	$	10,918

Other

non-current

assets consist of the following:


	January 31,
(in thousands)	2021		2020
Deferred commissions	$	1,697	$	102
Prepaid satellite launch services		772		722
Other non-current assets		515		379

Total other non-current assets	$	2,984	$	1,203

Accrued and Other Current Liabilities

Accrued liabilities and other current liabilities consist of the following:


	January 31,
(in thousands)	2021		2020
Deferred R&D service liability (1)	$	8,208	$	—
Payroll and related expenses		3,229		2,248
Customer payable (2)		10,000		7,254
Deferred hosting costs		2,301		—
Deferred rent		2,215		2,183
Accrued interest payable		616		474
Withholding taxes and other taxes payable		841		1,664
Other accruals		2,785		4,933

Total accrued and other current liabilities	$	30,195	$	18,756

(1)

R&D Services Agreement

”). The R&D Services Agreement is unrelated to the Company’s ordinary business activities and provides for a fee of $40.2 million, to be paid to the Company as specified milestones are achieved over a three-year period. The Company has discretion in managing the activities under the R&D Services Agreement and retains all developed intellectual property. The Company has no obligation to repay any of the funds received regardless of the outcome of the development work; therefore, the arrangement is accounted for as funded research and development pursuant to ASC

730-20,

Research and Development

. As ASC

730-20

(2)	Customer payable reflects consideration due to a customer as a result of a legal settlement agreement related to a revenue share arrangement. The customer payable was estimated at the inception of the contract and accounted for as a reduction in the customer’s transaction price.