Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 394

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 394
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.................................................................................................................... |      $125,000 |     |        $125,000 |
| Unamortized debt discount....................................................................................                 |        -6,638 |     |          -7,456 |
| Unamortized debt issuance costs........................................................................                       |          -443 |     |            -498 |
| PIK interest added to principal balance...............................................................                        |        77,244 |     |          65,348 |
| Net carrying amount..........................................................................................                 |      $195,163 |     |        $182,394 |

Interest expense related to the convertible notes was as follows (in thousands):

|                                                                                                                             | Six Months Ended July 31, |     |         |
|                                                                                                                             |                      2025 |     |    2024 |
| Amortization of debt discount................................................................................               |                      $818 |     |  $4,608 |
| Amortization of debt issuance costs....................................................................                     |                        55 |     |     308 |
| PIK interest............................................................................................................... |                    11,897 |     |   9,977 |
| Total non-cash interest expense.....................................................................                        |                   $12,770 |     | $14,893 |

SAFEs During the six months ended July 31, 2025 , we entered into SAFEs with multiple investors in exchange for cash proceeds (the “Purchase Amount”) of $155.0 million , with an interest rate of 12% per annum. The SAFEs provide for conversion or repayment depending on the nature of the triggering event. In a qualified equity financing or a liquidity event, such as a qualifying initial public offering, direct listing, or reverse merger, the outstanding Purchase Amount plus accrued interest converts into equity at a 15% discount to the price paid by new investors. In a qualified equity financing, the SAFEs convert into preferred stock, while in a liquidity event, they convert into common stock. If a deemed liquidation event occurs, including a change of control or dissolution, the SAFEs are automatically repaid in the same form of proceeds offered to other security holders. If none of these events occur within 36 months of issuance, the investors may elect to convert the outstanding Purchase Amount plus accrued interest into the then most senior series of preferred stock at a 15% discount to the fair market value per share. Upon a deemed liquidation event, the SAFEs operate like non-participating preferred stock. The investors’ rights are junior to outstanding indebtedness