Company: AVNI
Filing Date: 2025-07-15
Form Type: 10-Q/A
Source: 0001713282-25-000559
Chunk: 9

Company: ARVANA INC
Filing Date: 2025-07-15
Form: 10-Q/A
Chunk 9
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 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.

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Note 1 – Organization and Summary of Significant Accounting Policies– ( continued)

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 7,950,000outstanding stock options at March 31, 2024 and 7,950,000at March 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

To conform with the current year presentation on the statement of operations, the Company made the following reclassifications for the three months ended March 31, 2023:

| • | Lease                                                                       
 Revenue: $8,000 was reclassified from other income and expenses to revenue. |

| • | Cost                                                                                             
 of Services: $6,110 was reclassified from operating expenses to cost of services and included    
 in gross profit. These expenses were previously included in general and administrative expenses. |

| • | Depreciation:                                                                 
 $5,850 was reclassified from other income and expenses to operating expenses. |

These