Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 347

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 347
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 fair value are recorded in gain (loss) on fair value adjustments on the accompanying consolidated statements of operations for the years ended January 31, 2025 and 2024. We will continue to adjust the redeemable convertible preferred stock warrant liability for changes in fair value until the earlier of conversion, exercise or expiration of the warrants. Fair value measurements are highly sensitive to changes in these inputs; significant changes in these inputs would result in a significantly higher or lower fair value. The change in value of the redeemable convertible preferred stock warrant liability during the years ended January 31, 2025 and 2024 is summarized below (in thousands):

| Balance as of January 31, 2023......................................................................................................            
 Change in fair value........................................................................................................................... 
 Balance as of January 31, 2024......................................................................................................            |  $433 
 (136) 
   297 |
|:------------------------------------------------------------------------------------------------------------------------------------------------|------:|
| Change in fair value........................................................................................................................... |   130 |
| Balance as of January 31, 2025......................................................................................................            |  $427 |

F-22 NAVAN, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Embedded Derivative Liability The embedded derivative liability is bifurcated from the convertible notes issued in June 2020. Refer to Note 8 — Debt for further information regarding the convertible notes. The fair value of the embedded derivative liability was computed using a combination of the income approach, the Black-Scholes option pricing model, a probability-weighted estimate of the time to conversion, and other Level 3 inputs. Significant management assumptions and estimates were involved in this determination. The significant unobservable inputs used in measuring the fair value of the embedded derivative liability include the following:

|                                                                                                                         | Year Ended January 31, 
 2025                   |     | 2024          |
|:------------------------------------------------------------------------------------------------------------------------|:-----------------------|:----|:--------------|
| Time to expiration (in years)..........................................................................                 | 0.70 - 1.70            |     | 1.17 - 2.17   |
| Time from conversion to maturity (in years)...............................................                              | 0.65 - 1.65            |     | 0.19 - 1.19   |
| Discount factor.................................................................................................        | 9.0%                   |     | 10.5%         |
| Volatility............................................................................................................. | 57.8% -