Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Aug. 15, 2016 | Jun. 30, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | ARVANA INC | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2016 | ||
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 | 2,016 | ||
Document Fiscal Period Focus | Q2 |
ARVANA INC AND SUBSIDIARIES CON
ARVANA INC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS PERIOD JUNE 30TH 2016 AND DECEMBER 31ST 2015 - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 24,706 | $ 53 |
Total assets | 24,706 | 53 |
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||
Accounts payable and accrued liabilities | 1,064,421 | 1,018,963 |
Other Short-term Borrowings | 50,000 | |
Loans payable stockholders (Note 3) | 627,347 | 619,671 |
Loans payable related party (Note 3) | 30,368 | 28,941 |
Loans payable (Note 3) | 147,742 | 147,225 |
Amounts due to related parties (Note 3) | 450,297 | 434,330 |
Total current liabilities | 2,370,175 | 2,249,130 |
Stockholders' deficiency | ||
Common stock, $0.001 par value 5,000,000 authorized, 885,130 shares issued and outstanding at December 31, 2011, respectively (Note 4) | 885 | 885 |
Additional paid-in capital | 21,166,619 | 21,166,619 |
Deficit | (23,509,637) | (23,413,245) |
Total Stockholders Deficit Before Treasury Stock | (2,342,133) | (2,245,741) |
Less: Treasury stock - 2,085 at December 31, 2012 and 2011, respectively | (3,336) | (3,336) |
Total stockholders' deficiency | (2,345,469) | (2,249,077) |
Total liabilities and stockholders' deficit | $ 24,706 | $ 53 |
Arvana Inc Consolidated Balance
Arvana Inc Consolidated Balance Sheets June 30, 2016 and December 31, 2015 [Parenthetical] - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015 - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating expenses | ||||
General and administrative | $ 5,965 | $ 5,230 | $ 8,534 | $ 11,132 |
Fees and Commissions | 7,102 | 1,730 | 8,877 | 3,230 |
Total operating expenses | 13,067 | 6,960 | 17,411 | 14,362 |
Loss from operations | (13,067) | (6,960) | (17,411) | (14,362) |
Interest expense | (12,082) | (12,165) | (24,277) | (24,067) |
Foreign exchange gain | 12,199 | (31,661) | (54,704) | 97,035 |
Net Income (Loss) Attributable to Parent | $ (12,950) | $ (50,786) | $ (96,392) | $ 58,606 |
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) | $ 0.01 | $ 0.06 | $ 0.11 | $ 0.07 |
ARVANA INC CONSOLIDATED STATEM5
ARVANA INC CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2016 AND 2015 - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||||
Net loss | $ (12,950) | $ (50,786) | $ (96,392) | $ 58,606 |
Items not involving cash: | ||||
Unrealized foreign exchange | 54,361 | (97,195) | ||
Changes in non-cash working capital: | ||||
Accounts payable and accrued liabilities | 15,773 | 29,945 | ||
Amounts due to related parties | 911 | 933 | ||
Net cash used in operations | (25,347) | (7,711) | ||
Cash flows from financing activities | ||||
Proceeds of loans payable stockholders | 10,000 | |||
Proceeds of loans payable related parties | 50,000 | |||
Net cash provided by financing activities | 50,000 | 10,000 | ||
Increase (decrease) in cash | 24,653 | 2,289 | ||
Cash and Cash Equivalents, at Carrying Value | 53 | 1,876 | ||
Cash and Cash Equivalents, at Carrying Value | $ 24,706 | $ 4,165 | $ 24,706 | $ 4,165 |
Note 2_ Summary of Significant
Note 2: Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Note 2: Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The Company is in the process of transacting a business opportunity 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 six months ended June 30, 2016 and 2015, 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, 2015, as filed with the Securities and Exchange Commission (SEC) on April 14, 2016. 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. 2. Summary of Significant Accounting Policies (continued) Financial instruments (continued) The estimated fair values of the Company's financial instruments as of June 30, 2016 and December 31, 2015 follows: June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash $24,706 $24,706 $53 $53 Accounts payable and accrued liabilities 1,064,421 1,064,421 1,018,963 1,018,963 Convertible loan 50,000 50,000 - - Loans payable to stockholders Loans payable to related party 627,347 30,368 627,347 30,368 619,671 28,941 619,671 28,941 Loans payable Amounts due to related parties 147,742 450,297 197,742 450,297 147,225 434,330 147,225 434,330 The following table presents information about the assets that are measured at fair value on a recurring basis as of June 30, 2016, 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: June 30 , 2016 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 24,706 $ 24,706 $ $ The fair value of cash is determined through market, observable and corroborated sources. 2. Summary of Significant Accounting Policies (continued) Recent accounting pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842). In August 2014, the Financial Accounting Standards Board (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. The Company is in the process of evaluating the prospective impact that (ASU) 2014-15 will have on its balance sheet. |
Note 3_ Amounts Due To Related
Note 3: Amounts Due To Related Parties and Loans Payable To Stockholders | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Note 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 June 30, 2016, the Company received a number of loans from stockholders, related parties and unrelated third parties. As of June 30, 2016, the Company had received loans of $627,347 (Euro 225,000; CAD$ 72,300; $323,107) (December 31, 2015 - $619,671: Euro 225,000; CAD$ 72,300; $323,107) from stockholders, loans of $30,368 (CAD$ 27,600; $9,000) (December 31, 2015 $28,941: CAD$ 27,600; $9,000) from a related party and loans of $197,742 (CAD$ 10,000; $140,000) (December 31, 2015 $147,225: 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 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 $358,792 and $330,536 is included in accounts payable and accrued expenses at June 30, 2016, and December 31, 2015, respectively. Interest expense recognized on these loans was $12,082 and $24,277 for the three and six months ended June 30, 2016, respectively, compared to $12,165 and $24,067 for the three and six months ended June 30, 2015, respectively. The Company also received a convertible loan of $50,000 from CaiE Food Partnership Ltd. as per Note 7 below. At June 30, 2016, and December 31, 2015, the Company had amounts due to related parties of $450,297 and $434,330, respectively. This amount includes $136,100 at June 30, 2016, and December 31, 2015, 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. |
Note 4_ Common Stock
Note 4: Common Stock | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Note 4: Common Stock | 4. Common stock We have a stock option plan in place under which we are authorized to grant options to executive officers and directors, employees and consultants enabling them to acquire up to 10% of our issued and outstanding common stock. Under the plan, the exercise price of each option equals the market price of our stock as calculated on the date of grant. The options can be granted for a maximum term of 10 years. Vesting terms are determined at the time of grant. At June 30, 2016 and December 31, 2015, there were no stock options outstanding. No options were granted, exercised or expired during the period ended June 30, 2016 or the year ended December 31, 2015. |
Note 6_ Related Party Transacti
Note 6: Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Note 6: Related Party Transactions | 6. Related Party Transactions Other than amounts payable to related parties as disclosed below and in Note 3, the Company also incurred consulting fees of $5,588 (2015 - $4,756) paid to a company controlled by our chief executive officer during the six months ended June 30, 2016. Our former chief executive officer and former director entered into a consulting arrangement on a month to month basis that provided for a monthly fee of CAD$5,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on May 24, 2013. As of June 30, 2016, our former chief executive officer was owed $64,808 (CAD$83,710) for services rendered as an officer, compared to $60,480 (CAD$83,710) as at December 31, 2015. The amounts owing for past services have been included in the total payable of $171,267 as of June 30, 2016 and $159,979 as of December 31, 2015 detailed below. Our former chief financial officer and former director had entered into a consulting agreement on a month to month basis that provides for a monthly fee of $2,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on June 14, 2013. As of June 30, 2016 and December 31, 2015 our former chief financial officer was owed $58,870 for services rendered as an officer. Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with a corporation with a former director in common and thereby assigned $156,976 (CAD$202,759) of unpaid amounts payable. Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with an unrelated third party and thereby assigned $53,357 of unpaid amounts payable and $100,000 of unpaid loans. Our former chief executive officer and former director is owed $171,267 for unsecured non-interest bearing amounts due on demand loaned to the Company as of June 30, 2016, compared to $159,979 as of December 31, 2015. Our former chief executive officer and former director is owed $30,368 for unsecured amounts bearing 6% interest due on demand loaned to the Company as of June 30, 2016, compared to $28,941 as of December 31, 2015. Our other former officers are owed a total of $84,060 for their prior services rendered as officers as at June 30, 2016, compared to $79,381 as of December 31, 2015. A director of the Company is owed $60,000 as of June 30, 2016 and December 31, 2015, for services rendered as a director during 2007. Two former directors of the Company are owed $76,100 as of June 30, 2016 and December 31, 2015 for services rendered as directors during 2007. |
Note 8_ Subsequent Events
Note 8: Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Note 8: Subsequent Events | 8. Subsequent Events The Company evaluated its June 30, 2016, financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements. |
Note 2_ Summary of Significan11
Note 2: Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Use of Estimates, Policy | 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. |
Note 2_ Summary of Significan12
Note 2: Summary of Significant Accounting Policies: G) Financial Instruments (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
G) 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. 2. Summary of Significant Accounting Policies (continued) Financial instruments (continued) The estimated fair values of the Company's financial instruments as of June 30, 2016 and December 31, 2015 follows: June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash $24,706 $24,706 $53 $53 Accounts payable and accrued liabilities 1,064,421 1,064,421 1,018,963 1,018,963 Convertible loan 50,000 50,000 - - Loans payable to stockholders Loans payable to related party 627,347 30,368 627,347 30,368 619,671 28,941 619,671 28,941 Loans payable Amounts due to related parties 147,742 450,297 197,742 450,297 147,225 434,330 147,225 434,330 The following table presents information about the assets that are measured at fair value on a recurring basis as of June 30, 2016, 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: June 30 , 2016 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 24,706 $ 24,706 $ $ The fair value of cash is determined through market, observable and corroborated sources. |