Company: NAVN
Filing Date: 2025-09-19
Form Type: S-1
Source: 0001628280-25-042130
Chunk: 373

Company: Navan, Inc.
Filing Date: 2025-09-19
Form: S-1
Chunk 373
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 thousands):

| Balance as ofJanuary 31, 2025......................................................................................................             | $427 |
| Change in fair value........................................................................................................................... |    6 |
| Balance as of July 31, 2025.............................................................................................................        | $433 |

Embedded Derivative Liability The embedded derivative liability is bifurcated from the convertible notes issued in June 2020. Refer to Note 7 — Debt for further information regarding the convertible notes. The fair value of the embedded derivative liability was computed using a combination of the income approach, the Black-Scholes option pricing model, a probability-weighted estimate of the time to conversion, and other Level 3 inputs. Significant management assumptions and estimates were involved in this determination. The significant unobservable inputs used in measuring the fair value of the embedded derivative liability include the following:

|                                                                                                                         | As of         
 July 31, 2025 |     | January 31, 2025 |
|:------------------------------------------------------------------------------------------------------------------------|:--------------|:----|:-----------------|
| Time to expiration (in years)..........................................................................                 | 0.21 - 1.21   |     | 0.70 - 1.70      |
| Time from conversion to maturity (in years)...............................................                              | 0.65 - 1.65   |     | 0.65 - 1.65      |
| Discount factor.................................................................................................        | 9.0%          |     | 9.0%             |
| Volatility............................................................................................................. | 48.6 - 74.5%  |     | 57.8% - 72.6%    |
| Risk free rate....................................................................................................      | 3.99 - 4.33%  |     | 4.1% - 4.2%      |

The change in value of the embedded derivative liability during the six months ended July 31, 2025 is summarized below (in thousands):

| Balance as ofJanuary 31, 2025......................................................................................................             | $59,820 |
| Change in fair value........................................................................................................................... | -21,320 |
| Balance as ofJuly 31, 2025.............................................................................................................         | $38,500 |

Changes in fair value of the embedded derivative liability are recognized as a component of gain (loss) on fair value adjustments in the accompanying condensed consolidated statements of operations. Simple Agreements for Future Equity (SAFEs) and Common