Company: NAVN
Filing Date: 2025-09-19
Form Type: S-1
Source: 0001628280-25-042130
Chunk: 334

Company: Navan, Inc.
Filing Date: 2025-09-19
Form: S-1
Chunk 334
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 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% - 72.6%          |     | 66.1% - 85.3% |
| Risk free rate....................................................................................................      | 4.12% - 4.15%          |     | 4.23% - 4.65% |

The change in value of the embedded derivative liability during the years ended January 31, 2025 and 2024 is summarized below (in thousands):

| Balance as of January 31, 2023......................................................................................................            | $45,420 |
| Change in fair value........................................................................................................................... |  26,730 |
| Balance as of January 31, 2024......................................................................................................            |  72,150 |
| Change in fair value........................................................................................................................... | -12,330 |
| Balance as of January 31, 2025......................................................................................................            | $59,820 |

Changes in fair value of the embedded derivative liability are recognized as a component of gain (loss) on fair value adjustments in the accompanying consolidated statements of operations. Other Financial Instruments The fair value of other financial instruments that are not recognized at fair value on the balance sheet are presented below for disclosure purposes only (in thousands):

|                                                                                                 | Fair ValueHierarchy |      | As of January 31, |      |          |
|                                                                                                 |                     | 2025 |