Company: NAVN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001628279-25-000383
Chunk: 320

Company: Navan, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 320
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 exercise or expiration of the warrants.

Fair value measurements are highly sensitive to changes in these inputs; significant changes in these inputs would result in a significantly higher or lower fair value. The change in value of the redeemable convertible preferred stock warrant liability during the years ended January 31, 2025 and 2024 is summarized below (in thousands):

| Balance as of January 31, 2023 
 Change in fair value           
 Balance as of January 31, 2024 |     |   |   433 
 (136) 
   297 |
|:-------------------------------|:----|:--|------:|
| Change in fair value           |     |   |   130 |
| Balance as of January 31, 2025 |     | $ |   427 |

#### Embedded Derivative Liability
The embedded derivative liability is bifurcated from the convertible notes issued in June 2020. Refer to Note 8 — 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:

|                                             |     | Year Ended January 31, | 2025 |               |     |     | 2024 |               |
|:--------------------------------------------|:----|:-----------------------|-----:|:--------------|:----|:----|-----:|:--------------|
| Time to expiration (in years)               |     |                        |      | 0.70 - 1.70   |     |     |      | 1.17 - 2.17   |
| Time from conversion to maturity (in years) |     |                        |      | 0.65 - 1.65   |     |     |      | 0.19 - 1.19   |
| Discount factor                             |     |                        |  9.0 | %             |     |     | 10.5 | %             |
| Volatility                                  |     |                        |      | 57.8% - 72.6% |     |     |      | 66.1% - 85.3% |
| Risk free rate                              |     |                        |      | 4