Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Nov. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information: | |||
Entity Registrant Name | ARVANA INC | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2015 | ||
Trading Symbol | avni | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,113,313 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 885,130 | ||
Entity Public Float | $ 0 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 |
ARVANA INC AND SUBSIDIARIES CON
ARVANA INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS PERIOD SEPTEMBER 30, 2015 AND DECEMBER 31ST 2014 - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $ 2,165 | $ 1,876 |
Total assets | 2,165 | 1,876 |
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||
Accounts payable and accrued liabilities | 1,010,492 | 1,041,503 |
Loans payable stockholders (Note 3) | 628,427 | 647,702 |
Loans payable related party (Note 3) | 29,680 | 32,791 |
Loans payable (Note 3) | 147,493 | 148,620 |
Amounts due to related parties (Note 3) | 441,689 | 472,987 |
Total current liabilities | 2,257,781 | 2,343,603 |
Stockholders' deficiency | ||
Common stock, $0.001 par value 5,000,000 authorized, 885,130 shares issued and outstanding at September 30, 2015 and December 31, 2014, (Note 4) | 885 | 885 |
Additional paid-in capital | 21,166,619 | 21,166,619 |
Deficit | (23,419,784) | (23,505,895) |
Total Stockholders Deficit Before Treasury Stock | (2,252,280) | (2,338,391) |
Less: Treasury stock - 2,085 at September 30, 2015 and December 31, 2014 | (3,336) | (3,336) |
Total stockholders' deficiency | (2,255,616) | (2,341,727) |
Total liabilities and stockholders' deficit | $ 2,165 | $ 1,876 |
Arvana Inc Consolidated Balance
Arvana Inc Consolidated Balance Sheets September 30, 2015 and December 31, 2014 [Parenthetical] - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets Parenthetical | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 885,130 | 885,130 |
Common stock, shares outstanding | 885,130 | 885,130 |
Treasury stock, shares | (3,336) | (3,336) |
ARVANA INC CONSOLIDATED STATEME
ARVANA INC CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating expenses | ||||
General and administrative | $ 2,926 | $ 4,050 | $ 9,302 | $ 13,503 |
Fees and Commissions | 5,066 | 4,960 | 13,052 | 12,328 |
Total operating expenses | 7,991 | 9,010 | 22,353 | 25,831 |
Loss from operations | (7,991) | (9,010) | (22,353) | (25,831) |
Interest expense | (12,084) | (12,536) | (36,151) | (38,004) |
Foreign exchange gain | 47,581 | 86,944 | 144,616 | 94,179 |
Net Income (Loss) Attributable to Parent | $ 27,505 | $ 65,398 | $ 86,111 | $ 30,344 |
Per common share information - basic and diluted: | ||||
Weighted average shares outstanding (in shares) | 885,130 | 885,130 | 885,130 | 885,130 |
Net loss per common share - basic and diluted (in dollars per share) | $ 0.03 | $ 0.07 | $ 0.10 | $ 0.03 |
ARVANA INC CONSOLIDATED STATEM5
ARVANA INC CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 86,111 | $ 30,344 |
Items not involving cash: | ||
Unrealized foreign exchange | (142,062) | (90,671) |
Changes in non-cash working capital: | ||
Accounts payable and accrued liabilities | 44,904 | 34,594 |
Amounts due to related parties | 1,336 | 1,514 |
Net cash used in operations | (9,711) | (24,219) |
Cash flows from financing activities | ||
Proceeds of loans payable stockholders | 10,000 | 24,600 |
Net cash provided by financing activities | 10,000 | 24,600 |
Increase (decrease) in cash | 289 | 381 |
Cash beginning of year | 1,876 | 321 |
Cash end of Year | $ 2,165 | $ 702 |
1. Nature of Business and Abili
1. Nature of Business and Ability To Continue As A Going Concern | 9 Months Ended |
Sep. 30, 2015 | |
Notes | |
1. Nature of Business and Ability To Continue As A Going Concern | 1. Nature of Business and Ability to Continue as a Going Concern Arvana Inc. (our, we, us and the Company) was incorporated under the laws of the State of Nevada as Turinco, Inc. on September 16, 1977, with authorized common stock of 2,500 shares with a par value of $0.25. On October 16, 1998, the authorized capital stock was increased to 100,000,000 common shares with a par value of $0.001 and a forward common stock split of eight shares for each outstanding share. In 2005, we completed another forward common stock split of nine shares for each outstanding share. On July 24, 2006, the shareholders approved a change of the Companys name from Turinco, Inc. to Arvana Inc. On September 30, 2010, the authorized capital stock was decreased to 5,000,000 common shares with a par value of $0.001 and effected a reverse split of one share for every twenty shares outstanding. These condensed consolidated financial statements for the nine month period ended September 30, 2015 include the accounts of the Company and its subsidiary Arvana Networks Inc. (including its wholly-owned subsidiaries, Arvana Participaç es S.A. (Arvana Par) and Arvana Comunicações do Brasil S. A. (Arvana Com)). The Company has ceased all operations in its subsidiary companies, and has written-off or disposed of all assets in the subsidiary companies, consequently they are now all considered to be inactive subsidiaries. Our reporting currency and functional currency is the United States dollar (US Dollar) and the accompanying condensed consolidated financial statements have been expressed in US Dollars. These condensed consolidated financial statements have been prepared on a going concern basis, which assumes the realization of assets and settlement of liabilities in the normal course of business. For the nine month period ended September 30, 2015, the Company recognized net income of $86,111 as a result of foreign exchange gains. At September 30, 2015, the Company had a working capital deficiency of $2,255,616. These conditions raise substantial doubt about the Companys ability to continue as a going concern. Accordingly, the Company will require continued financial support from its shareholders and creditors until it is able to generate sufficient cash flow from operations on a sustained basis. There is substantial doubt that the Company will be successful at achieving these results. Failure to obtain the ongoing support of its shareholders and creditors may make the going concern basis of accounting inappropriate, in which case the Companys assets and liabilities would need to be recognized at their liquidation values. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might arise from this uncertainty. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Notes | |
2. Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The Company is in the process of evaluating business opportunities and has minimal operating levels. The Companys fiscal year end is December 31. The accompanying condensed interim consolidated financial statements of Arvana Inc. for the nine months ended September 30, 2015 and 2014, have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for financial information with the instructions to Form 10-Q and Regulation S-X. Results are not necessarily indicative of results which may be achieved in the future. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in the future. The condensed consolidated interim financial statements and notes appearing in this report should be read in conjunction with our consolidated audited financial statements and related notes thereto, together with Managements Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as filed with the Securities and Exchange Commission (the SEC) on April 10, 2015. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank. Accounts payable and accrued liabilities and loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of September 30, 2015 and December 31, 2014 are as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS CARRYING AMOUNT AND FAIR VALUE Sept 30, 2015 Sept 30, 2015 December 31, 2014 December 31, 2014 Cash 2,165 1,876 Cash 2,165 1,876 Accounts payable and accrued liabilities Carrying 1,010,492 1,041,503 Accounts payable and accrued liabilities Fair Value 1,010,492 1,041,503 Loans payable to stockholders Carrying Amount 628,427 647,702 Loans payable to stockholders Fair Value 628,427 647,702 Loans payable to related party Carrying Amount 29,680 32,791 Loans payable to related party Fair Value 29,680 32,971 Loans payable Carrying Amount 147,493 148,620 Loans payable Fair Value 147,493 148,620 Amounts due to related parties Carrying Amount 441,689 472,987 Amounts due to related parties Fair Value 441,689 472,987 The following table presents information about the assets that are measured at fair value on a recurring basis as of September 30, 2015, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: SCHEDULE OF CASH AND CASH EQUIVALENTS Assets: Sept 30, 2015 Cash 2,165 Cash Quoted Prices in Active Markets Level 1 2,165 Cash Significant other observable Inputs Level 2 Cash Significant Unobservable Inputs Level 3 The fair value of cash is determined through market, observable and corroborated sources. Recent accounting pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2015-03 which requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the presentation of debt discounts. Prior to the amendments, debt issuance costs were presented as a deferred charge (i.e., an asset) on the balance sheet. The ASU provides examples illustrating the balance sheet presentation of notes net of their related discounts and debt issuance costs. Further, the amendments require the amortization of debt issuance costs to be reported as interest expense. Similarly, debt issuance costs and any discount or premium are considered in the aggregate when determining the effective interest rate on the debt. The amendments to (ASU) 2015-03 are effective for the annual period ending after December 15, 2015, and for annual periods and interim periods thereafter. The amendments must be applied retrospectively. Early application is permitted. In August 2014, the FASB issued Accounting Standards Updates (ASU) 2014-15 requiring an entitys management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about entitys ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments to (ASU) 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. |
3. Amounts Due To Related Parti
3. Amounts Due To Related Parties and Loans Payable To Stockholders | 9 Months Ended |
Sep. 30, 2015 | |
Notes | |
3. Amounts Due To Related Parties and Loans Payable To Stockholders | 3. Amounts Due to Related Parties and Loans Payable to Stockholders From February, 2007 until September 30, 2015 the Company received a number of loans from stockholders, related parties and unrelated third parties. As of September 30, 2015 the Company had received loans of $628,427 (Euro 225,000; CAD$ 72,300; $323,107) December 31, 2014 $647,702 (: Euro 225,000; CAD$ 72,300; $313,107) from stockholders, loans of $29,680 (CAD$ 27,600; $9,000) (December 31, 2014 $32,791: CAD$ 27,600; $9,000) from a related party and loans of $147,493 (CAD$ 10,000; $ 140,000) (December 31, 2014 $ 148,620: CAD$ 10,000; $140,000) from unrelated third parties. All of the loans bear interest at 6% per annum. The loans were made in 3 different currencies, Euros, Canadian Dollars and US Dollars. All amounts reflected on these condensed consolidated financial statements are expressed in US Dollars. Repayment of the loans is due on closing of any future financing arrangement by the Company. The balance of accrued interest of $323,021 and $317,295 is included in accounts payable and accrued liabilities at September 30, 2015, and December 31, 2014, respectively. Interest expense recognized on these loans was $12,084 and $36,151 for the three and nine months ended September 30, 2015, respectively, compared to $12,536 and $38,004 for the three and nine months ended September 30, 2014, respectively. At September 30, 2015 and December 31, 2014 the Company had amounts due to related parties of $441,689 and $472,987, respectively. This amount includes $136,100 at September 30, 2015, and December 31, 2014, payable to two former directors and a current director for services rendered during 2007. This amount is to be paid part in cash and part in stock at a future date with the number of common shares determined by the fair value of the shares on the settlement date. The amounts owing bear no interest, are unsecured, and have no fixed terms of repayment. |
2. Summary of Significant Acco9
2. Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Policies | |
Basis of Presentation | Basis of presentation The Company is in the process of evaluating business opportunities and has minimal operating levels. The Companys fiscal year end is December 31. The accompanying condensed interim consolidated financial statements of Arvana Inc. for the nine months ended September 30, 2015 and 2014, have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for financial information with the instructions to Form 10-Q and Regulation S-X. Results are not necessarily indicative of results which may be achieved in the future. Although they are unaudited, in the opinion of management, they include all adjustments, consisting only of normal recurring items, necessary for a fair presentation. Results are not necessarily indicative of results which may be achieved in the future. The condensed consolidated interim financial statements and notes appearing in this report should be read in conjunction with our consolidated audited financial statements and related notes thereto, together with Managements Discussion and Analysis of Financial Condition and Results of Operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as filed with the Securities and Exchange Commission (the SEC) on April 10, 2015. |
2. Summary of Significant Acc10
2. Summary of Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include the recognition of deferred tax assets based on the change in unrecognized deductible temporary tax differences. |
2. Summary of Significant Acc11
2. Summary of Significant Accounting Policies: Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Policies | |
Financial Instruments | Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank. Accounts payable and accrued liabilities and loans payable - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of September 30, 2015 and December 31, 2014 are as follows: SCHEDULE OF CASH AND CASH EQUIVALENTS CARRYING AMOUNT AND FAIR VALUE Sept 30, 2015 Sept 30, 2015 December 31, 2014 December 31, 2014 Cash 2,165 1,876 Cash 2,165 1,876 Accounts payable and accrued liabilities Carrying 1,010,492 1,041,503 Accounts payable and accrued liabilities Fair Value 1,010,492 1,041,503 Loans payable to stockholders Carrying Amount 628,427 647,702 Loans payable to stockholders Fair Value 628,427 647,702 Loans payable to related party Carrying Amount 29,680 32,791 Loans payable to related party Fair Value 29,680 32,971 Loans payable Carrying Amount 147,493 148,620 Loans payable Fair Value 147,493 148,620 Amounts due to related parties Carrying Amount 441,689 472,987 Amounts due to related parties Fair Value 441,689 472,987 The following table presents information about the assets that are measured at fair value on a recurring basis as of September 30, 2015, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: SCHEDULE OF CASH AND CASH EQUIVALENTS Assets: Sept 30, 2015 Cash 2,165 Cash Quoted Prices in Active Markets Level 1 2,165 Cash Significant other observable Inputs Level 2 Cash Significant Unobservable Inputs Level 3 The fair value of cash is determined through market, observable and corroborated sources. |
2. Summary of Significant Acc12
2. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Policies | |
Recent Accounting Pronouncements | Recent accounting pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2015-03 which requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the presentation of debt discounts. Prior to the amendments, debt issuance costs were presented as a deferred charge (i.e., an asset) on the balance sheet. The ASU provides examples illustrating the balance sheet presentation of notes net of their related discounts and debt issuance costs. Further, the amendments require the amortization of debt issuance costs to be reported as interest expense. Similarly, debt issuance costs and any discount or premium are considered in the aggregate when determining the effective interest rate on the debt. The amendments to (ASU) 2015-03 are effective for the annual period ending after December 15, 2015, and for annual periods and interim periods thereafter. The amendments must be applied retrospectively. Early application is permitted. In August 2014, the FASB issued Accounting Standards Updates (ASU) 2014-15 requiring an entitys management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about entitys ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments to (ASU) 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. |
2. Summary of Significant Acc13
2. Summary of Significant Accounting Policies: Financial Instruments: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Sept 30, 2015 Sept 30, 2015 December 31, 2014 December 31, 2014 Cash 2,165 1,876 Cash 2,165 1,876 Accounts payable and accrued liabilities Carrying 1,010,492 1,041,503 Accounts payable and accrued liabilities Fair Value 1,010,492 1,041,503 Loans payable to stockholders Carrying Amount 628,427 647,702 Loans payable to stockholders Fair Value 628,427 647,702 Loans payable to related party Carrying Amount 29,680 32,791 Loans payable to related party Fair Value 29,680 32,971 Loans payable Carrying Amount 147,493 148,620 Loans payable Fair Value 147,493 148,620 Amounts due to related parties Carrying Amount 441,689 472,987 Amounts due to related parties Fair Value 441,689 472,987 |
2. Summary of Significant Acc14
2. Summary of Significant Accounting Policies: Financial Instruments: Schedule of Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Tables/Schedules | |
Schedule of Cash and Cash Equivalents | Assets: Sept 30, 2015 Cash 2,165 Cash Quoted Prices in Active Markets Level 1 2,165 Cash Significant other observable Inputs Level 2 Cash Significant Unobservable Inputs Level 3 |
2. Summary of Significant Acc15
2. Summary of Significant Accounting Policies: Financial Instruments: Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Details | ||
Cash Equivalents, at Carrying Value | $ 2,165 | $ 1,876 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,165 | 1,876 |
Accounts payable and accrued liabilities Carrying | 1,010,492 | 1,041,503 |
Accounts Payable and Accrued Liabilities, Fair Value Disclosure | 1,010,492 | 1,041,503 |
Loans payable to stockholders Carrying Amount | 628,427 | 647,702 |
Loans payable to stockholders Fair Value | 628,427 | 647,702 |
Loans payable to related party Carrying Amount | 29,680 | 32,791 |
Loans payable to related party Fair Value | 29,680 | 32,971 |
Loans payable Carrying Amount | 147,493 | 148,620 |
Loans Payable, Fair Value Disclosure | 147,493 | 148,620 |
Amounts due to related parties Carrying Amount | 441,689 | 472,987 |
Amounts due to related parties Fair Value | $ 441,689 | $ 472,987 |
2. Summary of Significant Acc16
2. Summary of Significant Accounting Policies: Financial Instruments: Schedule of Cash and Cash Equivalents (Details) | Sep. 30, 2015USD ($) |
Details | |
Cash and Cash Equivalents, at Carrying Value | $ 2,165 |
Cash and cash equivalents Quoted Prices in Active Markets Level 1 | $ 2,165 |
3. Amounts Due To Related Par17
3. Amounts Due To Related Parties and Loans Payable To Stockholders (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Details | ||
Loans payable stockholders (Note 3) | $ 628,427 | $ 647,702 |
Other Loans Payable | 32,791 | |
Loans payable (Note 3) | 147,493 | 148,620 |
Amounts due to related parties (Note 3) | $ 441,689 | $ 472,987 |