Company: NAVN
Filing Date: 2025-09-19
Form Type: S-1
Source: 0001628280-25-042130
Chunk: 356

Company: Navan, Inc.
Filing Date: 2025-09-19
Form: S-1
Chunk 356
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vest the earnings of its non-U.S. subsidiaries. During the fiscal year ended January 31, 202 4, the Company altered its capital allocation strategy and determined that certain non-US earnings, which can be distributed tax efficiently, are no longer permanently reinvested where earned. As of January 31, 2025 and 2024, the Company recognized a deferred tax liability of $0.3 million and $0.2 million, respectively, for additional taxes that would be incurred upon repatriation of the earnings that are no longer permanently reinvested. The income tax expense differs from the amount computed by applying the federal statutory income tax rate to income before taxes as follows (in thousands):

|                                                                                                                                | Year Ended January 31, 
                   2025 |     |       2024 |
|:-------------------------------------------------------------------------------------------------------------------------------|-----------------------:|:----|-----------:|
| Loss before income tax expense..........................................................................                       |             $(171,508) |     | $(326,124) |
| Expected tax benefit at federal rate of 21%........................................................                            |                -36,017 |     |    -68,486 |
| State taxes...............................................................................................................     |                    130 |     |        -16 |
| Taxes on foreign earnings.....................................................................................                 |                  2,412 |     |      1,513 |
| Stock-based compensation...................................................................................                    |                  4,943 |     |      4,811 |
| Disallowed interest on convertible debt...............................................................                         |                  3,229 |     |     11,082 |
| Research and development credits.....................................................................                          |                 -3,912 |     |     -4,102 |
| Effects of cross-border tax laws...........................................................................                    |                  3,476 |     |        343 |
| Other......................................................................................................................... |                  1,484 |     |       -147 |
| Change in valuation allowance.............................................................................                     |                 33,825 |     |     60,430 |
| Total income tax expense......................................................................................                 |                 $9,570 |     |     $5,428 |

F-39 NAVAN, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements

The components of net deferred tax assets and liabilities consisted of the following (in thousands):

|                                                                                                                    | Year Ended January 31, 
                   2025 |     |     2024 |
|:-------------------------------------------------------------------------------------------------------------------|-----------------------