Company: AVNI
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001713282-25-000574
Chunk: 28

Company: ARVANA INC
Filing Date: 2025-07-17
Form: 10-K
Item: Item 8
Chunk 28
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 of
Operations.

Marine
equipment is subject to an operating lease agreement ending on December 31, 2025. See Note 6 for more information.

Note
5 - Intangible Assets

The
Company acquired a perpetual federal fishing license as part of the acquisition of Down2Fish’s assets (see Note 3 for more information),
which grants the Company access to fish in federally regulated waters off the coast of Florida. This asset is not amortized and is tested
for impairment at least annually. As of December 31, 2024 and 2023, the Company determined no impairment of this asset had occurred.

The
Company maintains a website and capitalizes website development costs under ASC 350-50, Website Development Costs. In December 2023,
the Company capitalized $ 10,000 of
website development costs and then wrote off the capitalized asset as a $ 10,000 impairment loss in December 2023 because the website was discontinued
and replaced with a new website placed in service in April 2024. The impairment loss was included in general and administrative expenses
for the year ended December 31, 2023. In April 2024, the Company capitalized $ 25,000 of website development costs, which is amortized on a straight-line
basis over its estimated useful life of five years.

Note
6 - Leases (Company as Lessor)

The
Company leases marine equipment to a related party in an operating lease arrangement. The lease commenced on January 1, 2023 and ends
December 31, 2025. The agreement provides for fixed minimum monthly lease payments of $ 4,000 for the term of the agreement. At the end of the term any additional
lease payment due will be calculated and paid. The lessee’s right to use the marine equipment is limited to periods when the equipment
is not in use by the Company. There is no option to purchase the equipment as part of the agreement, and the Company expects to recoup
the full value of the equipment upon its eventual sale. The Company manages risk by requiring the lessee to indemnify the Company in
the event of loss to property or persons.

Lease
income was $ 48,000and
$ 44,000 for
the years ended December 31, 2024 and 2023. Lease income is included in revenue on the Consolidated Statements of Operations. Future
lease payments expected to be received under this related-party lease are as follows: