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

Company: ARVANA INC
Filing Date: 2025-07-17
Form: 10-Q
Item: Item 4
Chunk 17
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ITEM 4.      CONTROLS   
          AND PROCEDURES
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Evaluation of Disclosure Controls and Procedures
 
In connection with the preparation of this Quarterly Report, the Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of March 31, 2025. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.
 
Based on this evaluation, management concluded that the Company’s disclosure controls and procedures were not effective as of March 31, 2025. This conclusion was due to material weaknesses in internal control over financial reporting related to the application of certain accounting policies, including the capitalization of website development costs, accrual of professional fees, and accounting for stock-based compensation. These material weaknesses contributed to the restatement of the Company’s previously filed financial statements for the first three quarters of 2024. While the financial statements for the year ended December 31, 2024 and for the current reporting period reflect the corrected accounting treatment, the control deficiencies that gave rise to the material weaknesses have not yet been fully remediated. In addition, the Company lacks sufficient accounting personnel to achieve proper segregation of duties within the finance and accounting functions. As part of the remediation efforts undertaken by the Board of Directors, a new Chief Financial Officer was appointed on May 20, 2025 to oversee the implementation of improvements to the Company’s financial reporting and internal control processes. 
 
Changes in Internal Control over Financial Reporting
 
There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the three months ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
 
However, as disclosed above, subsequent to the end of the reporting period, the Company began implementing remedial measures to address the identified control deficiencies. These measures include:
 

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