| Summary of Significant Accounting Policies | 2. Summary
of Significant Accounting Policies a) Basis
of presentation The
Company is in the process of evaluating business opportunities and has minimal operating expenses. Our fiscal year end is December 31.
The accompanying financial statements of Arvana Inc. for the years ended December 31, 2021 and 2020 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-K and Regulation S-K. Results are not necessarily indicative of results which may be achieved in the future. b) Estimates The
preparation of 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. c) Foreign
currency translation and transactions Transactions
conducted in foreign currencies are recorded using the exchange rate in effect on the transaction date. At the period end, monetary assets
and liabilities are translated to the functional currency of each entity using the exchange rate in effect at the period end date. Transaction
gains and losses are recorded in foreign exchange gain or loss in the statement of operations and comprehensive loss. d) Comprehensive
income (loss) The
Company considers comprehensive income (loss) as a change in equity (net assets) of a business entity during a period from transactions
and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from
investments by owners and distributions to owners. e) Cash
equivalents The
Company considers all highly-liquid investments, with terms to maturity of three months or less when acquired, to be cash equivalents.
The Company did not have any cash equivalents as at December 31, 2021. 0 f) 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, convertible loans, loans payable and amounts due to related parties - 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 December 31, 2021 and December 31, 2020 follows:
Estimated fair values
December 31, 2021 December 31, 2020
Carrying Amount Fair Value Carrying Amount Fair Value
Cash $ 3,340 $ 3,340 $ 4,994 $ 4,994
Accounts payable and accrued liabilities 54,931 54,931 867,710 867,710
Convertible loans — — 107,800 107,800
Loans payable to stockholders 15,500 15,500 522,552 522,552
Loans payable to related party 300 300 130,677 130,677
Loans payable — — 74,664 74,664
Amounts due to related parties $ 34,194 $ 34,194 $ 352,651 $ 352,651 The
following table presents information about the assets that are measured at fair value on a recurring basis as of December 31, 2021, 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:
Fair Value, Assets Measured on Recurring Basis
December 31, 2021 Quoted Prices Significant Significant
Assets:
Cash $ 3,340 $ 3,340 $ — $ — The
fair value of cash is determined through market, observable and corroborated sources. g) Concentration
of credit risk Financial
instruments that potentially subject the Company to concentrations of credit risk consist of cash. The Company maintains cash in bank
accounts that, at times, may exceed federally-insured limits. The Company has not experienced any losses in such accounts and believes
it is not exposed to any significant risks on its cash in bank accounts. h) Income
taxes A
deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss
carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred
tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment. i) Stock-based
compensation The
Company accounts for all stock-based payments to employees and non-employees under ASC 718 “Stock Compensation,” using the
fair value method. Under the fair value method, stock-based payments are measured at the fair value of the consideration received, or
the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The cost of stock-based
payments to non-employees that are fully vested and non-forfeitable at the grant date is measured and recognized at that date. j) Beneficial
conversion feature From
time-to-time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature.
A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to
which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation
of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted
with the debt. The intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to
additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest
method. k) Earnings
(loss) per share Basic
earnings (loss) per share are computed using the weighted average number of common shares outstanding during the year. Diluted earnings
(loss) per share are computed using the weighted average number of common shares and potentially dilutive common stock equivalents, including
stock options and warrants. There were no l) Recent
accounting pronouncements New
and amended standards adopted by the Company The
following new and amended standards were adopted by the Company for the first time in this reporting period. In
June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates ASU 2016-13, Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring certain changes to the recognition and measurement
as well as disclosure of incurred and expected credit losses. In November 2018, the FASB issued ASU 2018-19 to clarify certain aspects
of the new current expected credit losses impairment model in ASU 2016-13. ASU 2018-19 points out that operating lease receivables are
within the scope of ASC 842 rather than ASC 326. The standard became effective for the Company beginning January 1, 2020. The adoption
of this standard did not have a material impact on the Company’s results of operations, financial condition, cash flows, and financial
statement disclosures. In
August 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates ASU 2018-13, which changes the fair
value measurement disclosure requirements of ASC 820. The standard became effective for the Company beginning January 1, 2020. The amendments
in this ASU are the result of a broader disclosure project called FASB Concepts Statement, Conceptual Framework for Financial Reporting
— Chapter 8: Notes to Financial Statements. The adoption of this standard did not have a material impact on the Company’s
results of operations, financial condition, cash flows, and financial statement disclosures. |
