Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 399

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 399
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 the greater of: (a) 1.3 times the original promissory note amount of $150.0 million , plus

F-69 NAVAN, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited)

any unpaid interest and expenses then accrued and unpaid as of such date, and (b) the aggregate principal amount as of such date, plus any unpaid interest and expenses then accrued and unpaid as of such date. At issuance of the 2022 Promissory Note, the fair value of the common stock warrants was $11.8 million and was recorded as a debt discount. Debt issuance costs were approximately $0.1 million , consisting of advisor fees, legal fees and other related expenses. Both amounts were recorded as a reduction of the carrying amount of the debt liability. The debt discount and debt issuance costs were amortized to interest expense at an effective interest rate of 14.5% over the term of the loan. The common stock warrants were subsequently exercised during the year ended January 31, 2023 . In February 2025 , we paid $198.1 million to settle the 2022 Promissory Note and recognized a $20.5 million loss on the debt extinguishment. The loss on extinguishment of debt is recognized within the condensed consolidated statements of operations. We were in compliance with all affirmative or negative covenants as of the settlement date. Interest expense related to the 2022 Promissory Note was as follows (in thousands):

|                                                                                                                             | Six Months Ended July 31, |     |         |
|                                                                                                                             |                      2025 |     |    2024 |
| Amortization of debt discount................................................................................               |                      $298 |     |  $1,914 |
| Amortization of debt issuance costs....................................................................                     |                         3 |     |      16 |
| PIK interest............................................................................................................... |                       839 |     |   6,261 |
| Cash interest............................................................................................................   |                       448 |     |   3,340 |
| Total interest expense.......................................................................................               |                    $1,588 |     | $11,531 |

NOTE 8 – VARIABLE INTEREST ENTITIES VIEs are legal entities that lack sufficient equity to finance their activities without future subordinated financial support. We consolidate the assets and liabilities of VIEs in which we hold a variable interest and are the primary beneficiary. Liquid Labs In August 202