Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 173

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 173
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 • Expected Volatility. Since we have no trading history of our common stock, the expected volatility is derived from the average historical stock volatilities of peer group public companies that we consider to be comparable to our business over a period equivalent to the expected term of the stock-based grants. • Expected Dividend Yield. We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. As a result, we applied an expected dividend yield of zero. RSUs are generally subject to both time-based service and performance-based vesting conditions, which may be satisfied by either an initial public offering, including this offering, or the sale of our company, neither of which, for accounting purposes, are considered probable until they occur. The fair value of new or modified RSU awards is equal to the grant date fair value of the Company’s common stock. These RSUs generally vest over a four-year period based on the achievement of specified qualifying events, subject to continued service through the applicable vesting dates. Compensation cost is recognized over the requisite service period when it is probable that the performance-based condition will be satisfied. In the period in which the performance-based condition becomes probable, we will record cumulative stock-based compensation expense for the service period completed to such date and will begin recording stock-based compensation expense using the accelerated attribution method based on the grant-date fair value of the RSUs for awards where the service period is not complete. Upon the completion of this offering, we will recognize a significant non-cash cumulative stock-based compensation charge for RSUs subject to both time-based service and performance-based vesting conditions for which the time-based service vesting condition has been satisfied. As of July 31, 2025, the total unrecognized stock-based compensation expense related to RSUs for which the time-based service vesting condition had been satisfied or partially satisfied as of July 31, 2025 was approximately $61.2 million , calculated using the accelerated attribution method. Unrecognized stock-based compensation expense related to unvested RSUs that have not met the time-based service condition as of July 31, 2025 was $91.1 million , which would be recognized over a weighted-average period of approximately 3.5 years if the performance-based condition had occurred on or was probable as of July 31, 2025. We expect to recognize the remaining unrecognized non-cash compensation expense for RSUs that were outstanding as of the completion of this offering using the accelerated attribution method, net of forfeitures, as