Company: NAVN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001628279-25-000383
Chunk: 346

Company: Navan, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 346
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 multiple ownership changes and, as a result, the annual utilization of its net operating loss carryforwards and other pre-change attributes will be subject to limitation. However, the Company does not expect that the annual limitations will significantly impact its ability to utilize its net operating loss or tax credit carryforwards prior to expiration. Subsequent ownership changes in respect to these tax attributes may further affect the limitation in future years.

The Company recognizes uncertain tax positions in the consolidated financial statements if that position is more likely than not of being sustained upon audit, based on the technical merits of the position. In the preparation of income tax returns in federal, foreign, and state jurisdictions, the Company asserts certain tax positions based on its understanding and interpretation of income tax laws. The taxing authorities may challenge such positions, and the resolution of such matters could result in recognition of income tax expense in the Company’s consolidated financial statements. As of January 31, 2025, the Company had unrecognized tax benefits of $9.5 million, of which $1.9 million, if recognized, would favorably impact the effective tax rate. As of January 31, 2024, the Company had unrecognized tax benefits of $8.8 million, of which $2.4 million, if recognized, would favorably impact the effective tax rate.

The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):

|                                                             |     | Year Ended January 31, |  2025 |     |   |  2024 |
|:------------------------------------------------------------|:----|:-----------------------|------:|:----|:--|------:|
| Beginning balance                                           |     | $                      | 8,783 |     | $ | 7,477 |
| Additions based on tax position related to the current year |     |                        | 1,641 |     |   | 1,521 |
| Additions for tax positions for the prior year              |     |                        |    68 |     |   |   361 |
| Decrease related to prior year tax positions                |     |                        |  -241 |     |   |  -386 |
| Decrease related to expiration of statute of limitations    |     |                        |  -794 |     |   |  -190 |
| Ending balance                                              |     | $                      | 9,457 |     | $ | 8,783 |

The Company includes interest and penalties related to unrecognized tax benefits through income