Company: AVNI
Filing Date: 2025-07-17
Form Type: 10-Q
Source: 0001713282-25-000578
Chunk: 4

Company: ARVANA INC
Filing Date: 2025-07-17
Form: 10-Q
Item: Item 1
Chunk 4
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 liabilities that may result from this uncertainty.
 
 10

Note 4 – Property and Equipment
 
Property and equipment consist of the following:
 

Schedule of property and equipment                                                       
-----------------------------------------------------------------------------------------
                                                    March 31,                December 31,
                                     2025                       2024                     
Marine Equipment                               $188,351                   $181,675       
Furniture and Fixtures                            5,672                      5,672       
Total Property and Equipment                    194,023                    187,347       
Less: Accumulated Depreciation                  (57,764     )              (50,814      )
Property and Equipment, Net                    $136,259                   $136,533       
  
Depreciation expense was $6,950 and $6,712 for the three months ended March 31, 2025 and 2024.
 
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 March 31, 2025 and 2024, 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 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