Company: NAVN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001628279-25-000383
Chunk: 306

Company: Navan, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 306
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 8 — Debt.

Accounts Receivable and Allowance for Expected Credit Losses

Accounts receivable are generally due within thirty days and are recorded net of an allowance for estimated uncollectible amounts. We estimate expected credit losses based on various factors, including the age of the receivable balance, credit quality of the customer, past collection experience with the customer, as well as current market conditions and customer financial conditions. Long-aged balances and other higher risk amounts are reviewed individually for collectability. We recognize estimated credit losses through the income statement, and the allowance for estimated credit losses is recorded in accounts receivable, net on the consolidated balance sheets.

The following table summarizes the allowance for expected credit losses as of January 31, 2025 and 2024 (in thousands):

|                                                       |     | As of January 31, |   2025 |     |   |   2024 |
|:------------------------------------------------------|:----|:------------------|-------:|:----|:--|-------:|
| Balance at beginning of period                        |     | $                 |  4,270 |     | $ |  2,270 |
| Provision for expected credit losses                  |     |                   |  3,764 |     |   |  4,488 |
| Amounts written off, recoveries and other adjustments |     |                   | -2,899 |     |   | -2,488 |
| Balance at end of period                              |     | $                 |  5,135 |     | $ |  4,270 |

Corporate Card Receivables and Allowance for Expected Credit Losses

We provide virtual and physical corporate credit cards to customers of our expense management offering through issuing bank partners. Under our payment partner arrangements, we are required to prefund spend on these credit cards. We recognize a receivable for each transaction, and receivables are generally due within ten days.

Corporate card receivables are recorded net of an allowance for expected credit losses. The allowance for expected credit losses is based on our assessment of the collectability of these receivables. We consider the following factors when determining the collectability of specific customer accounts: age of the receivable balance, credit quality of the customer, past collection experience with the customer, as well as current market conditions and customer financial conditions. We recognize estimated credit losses through the income statement, and the allowance for estimated credit losses is recorded in corporate card receivables, net on the consolidated balance sheets.

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