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

Company: ARVANA INC
Filing Date: 2025-07-17
Form: 10-K
Item: Item 8
Chunk 25
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 conditions, the cost is valued using the Black-Scholes option
pricing model based on inputs determined for the grant date. Once the per-share fair value on the grant date is established, the award
is expensed over a weighted-average service period for the entire award using the straight-line method (also referred to as the single-award
method).

In
accordance with the provisions of ASC 718, the Company has elected to account for forfeitures of options when such forfeitures occur
rather than estimating forfeitures at the grant date. Therefore, the Company records stock-based compensation expense assuming all option
holders will complete the requisite service period for the options to fully vest, and then an adjustment is recorded in the period during
which forfeitures occur. Compensation cost is not reversed for stock options that have vested prior to forfeiture.

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. The Company had 6,150,000 outstanding stock options at December 31, 2024 and 7,950,000 at December 31, 2023, which have been excluded from the calculation
of diluted loss per share because their effects would be anti-dilutive due to net losses in both periods.

Recently
Issued Accounting Pronouncements Adopted by the Company

In
June 2016 the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments. ASU 2016-13 is intended to provide financial statement users with more decision-useful information about expected credit
losses on financial instruments and other commitments and requires consideration of a broader range of reasonable and supportable information
to inform credit loss estimates. The Company adopted ASU 2016-13 effective January 1, 2023, which adoption has not had a material effect
on its financial statements.

Reclassifications

The Company made the following reclassifications for the year ended December 31, 2023 to conform with the current year presentation on the statement of operations:

  Lease                                       

  Cost                                                                                                                                                           

  Depreciation                                                                                                                                                                         

These reclassifications reflect a change in financial statement presentation as a result of changes in operational strategies due to