Company: AVNI
Filing Date: 2025-07-15
Form Type: 10-Q/A
Source: 0001713282-25-000559
Chunk: 16

Company: ARVANA INC
Filing Date: 2025-07-15
Form: 10-Q/A
Chunk 16
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718, Compensation—S tock Compensation, which addresses the accounting for employee stock options and requires that the cost of all employee stock options, as well as other equity-based compensation arrangements, be reflected in the financial statements over the vesting period based on the estimated fair value of the awards.

At March 31, 2024 and December 31, 2023, the Company had 7,950,000options outstanding with vesting periods ranging from 2to 5years and exercise prices of approximately $ 0.087per share. Subsequent to the end of the reporting period, a total of 1,800,000options—consisting of 810,000vested options and 990,000unvested options—were forfeited by the former Chief Executive Officer and a former member of the board. In addition, the Board of Directors approved a resolution to modify the terms of the options granted to the former Chief Executive Officer to cancel any vested options not exercised within 30 days of termination for cause. The Company accounts for forfeitures when they occur; accordingly, a reduction in stock-based compensation expense of $ 59,602will be recorded in the three months ending September 30, 2024.

Subsequent to the issuance of the previous financial statements, the Company conducted an examination of its accounting policies for stock-based compensation and determined certain awards were not properly expensed in prior periods due to the application of incorrect vesting periods and other computational errors. As a result, the cumulative stock-based compensation expense was understated by $ 23,015. In accordance with ASC 250-10-45-23, the Company has corrected this error by recording an adjustment to retained earnings as of January 1, 2024.

Total stock-based compensation was $ 63,327for the three months ended March 31, 2024, and $ 249,952for the year ended December 31, 2023. The Company will recognize the remaining $248,172 as follows:

| Schedule                              
 of remaining share-based compensation 
 Year                                  |     | Amount |         |   |
|:--------------------------------------|:----|:-------|--------:|:--|
| Q2 2024                               |     | $      |  63,327 |   |
| Q3 2024                               |     |        | (13,800 | ) |
| Q4 2024                               |     |        |  45,801 |   |
| 2025