Company: AVNI
Filing Date: 2025-07-17
Form Type: 10-K
Source: 0001713282-25-000574
Chunk: 24

Company: ARVANA INC
Filing Date: 2025-07-17
Form: 10-K
Item: Item 8
Chunk 24
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Notes
payable to related parties and financial institutions consist of both short-term and long-term borrowings. The fair value of these notes
payable approximates their carrying amounts because the interest rates approximate current market rates or because these instruments
are carried at amounts reflecting current borrowing terms.

Concentration
of Credit Risk

The
Company maintains cash deposits at financial institutions in accounts that may at times exceed federally insured limits. At December
31, 2024 and 2023, the Company did not have any cash balances in excess of insured FDIC limits. The Company has not experienced any losses
on such accounts, and believes it is not exposed to any significant credit risks.

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 judgment 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 measured using enacted tax rates in effect
during the periods in which those temporary differences are expected to reverse.

Stock
Split

On
February 21, 2023, the Company’s stockholders approved a 3-for-1 forward stock split of the common shares. The stock split was
filed with the Nevada Secretary of State effective March 31, 2023, and was reflected in the market through the Financial Industry Regulatory
Authority (FINRA) on April 19, 2023. All references in these financial statements to common stock, share counts, and per-share amounts
have been retroactively adjusted to reflect the stock split.

Stock-Based
Compensation

The
Company accounts for all share-based payments to employees and non-employees under ASC 718, Compensation - Stock Compensation, which
requires that the value of the award be established at the date of grant and then expensed over the vesting period of the grant. The
method of determining the fair value of share-based payments depends on the type of award. Stock-based compensation expense is included
in general and administrative expenses on the statement of operations.

For
share-based awards which are fully vested and non-forfeitable at the grant date, the cost is measured and recognized at that date.

For
share-based awards vesting over a certain service period with no market