Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 384

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 384
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 extent to which we expect current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. Long-aged balances and other higher risk amounts are reviewed individually for collectability. We recognize estimated credit losses through the income statement, and the allowance for estimated credit losses is recorded in accounts receivable, net on the condensed consolidated balance sheets.

F-56 NAVAN, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited)

The following table summarizes the allowance for expected credit losses (in thousands):

|                                                                                                              | Six Months Ended July 31, |     |        |
|                                                                                                              |                      2025 |     |   2024 |
| Balance at beginning of period........................................................................       |                    $5,135 |     | $4,270 |
| Provision for expected credit losses...............................................................          |                     2,488 |     |  1,677 |
| Amounts written off, recoveries and other adjustments...............................                         |                    -1,739 |     | -1,161 |
| Balance at end of period.................................................................................... |                    $5,884 |     | $4,786 |

Corporate Card Receivables and Allowance for Expected Credit Losses We provide virtual and physical corporate credit cards to customers of our expense management offering through issuing bank partners. Under certain payment partner arrangements, we are required to prefund spend on these credit cards. We recognize a receivable for each transaction, and receivables are generally due within ten days. Corporate card receivables are recorded net of an allowance for expected credit losses. The allowance for expected credit losses is based on our assessment of the collectability of these receivables. We consider the following factors when determining the collectability of specific customer accounts: age of the receivable balance, credit quality of the customer, and past collection experience with the customer. We consider the need to adjust historical information used in our estimates to reflect the extent to which we expect current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. In addition, we include an estimate for charges our customers may dispute as invalid. We recognize estimated credit losses through the income statement, and the allowance for estimated credit losses is recorded in corporate card receivables, net on the condensed consolidated balance sheets. The following table summarizes the corporate card receivables allowance for expected credit losses (in thousands):

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