---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2007

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE EXCHANGE ACT

For the transition period from _______ to _______

Commission File Number: 000-30695

ARVANA INC.(Exact name of
small business issuer as specified in its charter)

|NEVADA                                           | 87-0618509                       
|------------------------------------------------ | ---------------------------------
|                                                 |                                  
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

2610-1066 West Hastings St., Vancouver, British Columbia,
Canada V6E 3X2(Address of principal executive offices)

604-684-4691(Issuer's telephone number)

Not Applicable(Former name, if changed since
last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject 
  to such filing requirements for the past 90 days. Yes [X]   No [  
  ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [ 
 ]   No [X]

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:**21,202,375 shares of Common Stock as of August 10, 2007**

Transitional Small Business Disclosure Format (Check one): Yes
  [   ]   No [X]

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PART I

Item
1.               
Financial Statements

The following unaudited consolidated interim financial
statements of Arvana Inc. are included in this Quarterly Report on Form 10-QSB:

PageConsolidated
      Balance Sheets at June 30, 2007 and December 31, 2006
    F-1Consolidated
      Statements of Operations for the three and six months ended June 30, 2007
      and 2006
    F-2Consolidated
      Statements of Cash Flows for the six months ended June 30, 2007 and 2006
    F-3Consolidated
      Statement of Stockholders Equity for the six months ended June 30, 2007
    F-4Notes
      to Consolidated Financial Statements
    F-5


---

ARVANA INC.CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN US DOLLARS) (UNAUDITED)

|                                                                                       |   |             |   |   | (Audited)    |  
|-------------------------------------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                                                       |   | June 30,    |   |   | December 31, |  
|                                                                                       |   | 2007        |   |   | 2006         |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   |             |   |   |              |  
|ASSETS                                                                                 |   |             |   |   |              |  
|                                                                                       |   |             |   |   |              |  
|Current                                                                                |   |             |   |   |              |  
|Cash and cash equivalents                                                              | $ | 30,537      |   | $ | 233,452      |  
|Receivables (net
      of allowance of $20,921, December 31, 2006 $32,355)             |   | 2,044,712   |   |   | 1,676,177    |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   | 2,075,249   |   |   | 1,909,629    |  
|Long-term                                                                              |   |             |   |   |              |  
|Property and
      equipment (Note 3)                                                  |   | 643,675     |   |   | 730,686      |  
|Subscriber accounts                                                                    |   | 2,605,499   |   |   | 2,605,499    |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       | $ | 5,324,423   |   | $ | 5,245,814    |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                   |   |             |   |   |              |  
|                                                                                       |   |             |   |   |              |  
|Current                                                                                |   |             |   |   |              |  
|Accounts payable and accrued
      liabilities                                         | $ | 2,953,075   |   | $ | 3,018,784    |  
|Note payable                                                                           |   | 329,815     |   |   | 329,815      |  
|Amounts due to related parties
      (Note 4)                                          |   | 126,626     |   |   | 47,551       |  
|Loan Payable                                                                           |   | 235,161     |   |   | -            |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   | 3,644,677   |   |   | 3,396,150    |  
|                                                                                       |   |             |   |   |              |  
|Long-term                                                                              |   |             |   |   |              |  
|Deferred income taxes                                                                  |   | 46,684      |   |   | 59,159       |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   | 3,691,361   |   |   | 3,455,309    |  
|                                                                                       |   |             |   |   |              |  
|Commitments (Note 7)                                                                   |   |             |   |   |              |  
|                                                                                       |   |             |   |   |              |  
|Stockholders' equity                                                                   |   |             |   |   |              |  
|Common stock
      (Note 5)                                                            |   |             |   |   |              |  
|100,000,000
      common shares authorized at $0.001 par value;                        |   |             |   |   |              |  
|20,702,375 common shares issued and outstanding (December 31, 2006 -
      20,718,375) |   | 20,703      |   |   | 20,719       |  
|Additional paid-in capital                                                             |   | 20,690,201  |   |   | 20,160,185   |  
|Deficit                                                                                |   | (19,021,868 | ) |   | (18,330,869  | )
|Accumulated other comprehensive
      loss                                             |   | (55,974     | ) |   | (59,530      | )
|                                                                                       |   |             |   |   |              |  
|                                                                                       |   | 1,633,062   |   |   | 1,790,505    |  
|                                                                                       |   |             |   |   |              |  
|                                                                                       | $ | 5,324,423   |   | $ | 5,245,814    |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

ARVANAINC.CONSOLIDATED STATEMENTS OF
OPERATIONS (EXPRESSED IN US DOLLARS) (UNAUDITED)

|                                                           |   | For the
      three months ended |   |   | For the
      six months ended |  
|---------------------------------------------------------- | - | -------------------------------- | - | - | ------------------------------ | -
|                                                           |   | June 30,                         |   |   | June 30,                       |  
|                                                           |   | 2007                             |   |   | 2006                           |  
|                                                           |   |                                  |   |   |                                |  
|Sales                                                      | $ | 1,200,520                        |   | $ | -                              |  
|Cost of sales                                              |   | (913,999                         | ) |   | -                              |  
|Gross profit                                               |   | 286,521                          |   |   | -                              |  
|Operating expenses                                         |   |                                  |   |   |                                |  
|Selling and
      promotion                                |   | (29,617                          | ) |   | -                              |  
|General and administrative                                 |   | (235,748                         | ) |   | (217,304                       | )
|Research
      and development                             |   | -                                |   |   | (38,751                        | )
|Depreciation                                               |   | (53,621                          | ) |   | (75                            | )
|Operating loss                                             |   | (32,465                          | ) |   | (256,130                       | )
|Other items                                                |   |                                  |   |   |                                |  
|Stock-based
      compensation (Note 5)                    |   | (66,400                          | ) |   | (33,200                        | )
|Loss on write-off of equipment                             |   | -                                |   |   | -                              |  
|Other income                                               |   | (35,223                          | ) |   | -                              |  
|Net loss before income taxes                               |   | (134,088                         | ) |   | (289,330                       | )
|Income taxes                                               |   | (36,787                          | ) |   | -                              |  
|Net loss for the
      period                              | $ | (170,875                         | ) | $ | (289,330                       | )
|Other comprehensive gain                                   |   | 1,499                            |   |   | -                              |  
|Comprehensive
      loss for the period                    | $ | (169,376                         | ) | $ | (289,330                       | )
|                                                           |   |                                  |   |   |                                |  
|Loss per share
      - basic and diluted                   | $ | (0.01                            | ) | $ | (0.02                          | )
|                                                           |   |                                  |   |   |                                |  
|Weighted average
      number of common shares outstanding |   | 20,702,375                       |   |   | 13,891,500                     |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

ARVANA INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN US DOLLARS) (UNAUDITED)

|                                                             |   |                          |   |   |          |  
|------------------------------------------------------------ | - | ------------------------ | - | - | -------- | -
|                                                             |   |                          |   |   |          |  
|                                                             |   | For the six months ended |  
|                                                             |   | June 30,                 |  
|                                                             |   | 2007                     |   |   | 2006     |  
|                                                             |   |                          |   |   |          |  
|                                                             |   |                          |   |   |          |  
|Cash flows from operating activities                         |   |                          |   |   |          |  
|Net loss for the
      period                                | $ | (690,999                 | ) | $ | (640,171 | )
|                                                             |   |                          |   |   |          |  
|Items not involving
      cash:                              |   |                          |   |   |          |  
|Depreciation
      and amortization                          |   | 104,384                  |   |   | 150      |  
|Stock-based compensation                                     |   | 530,000                  |   |   | 33,200   |  
|Loss
      on write-off of equipment                         |   | 10,059                   |   |   | -        |  
|Deferred income taxes                                        |   | (12,475                  | ) |   | -        |  
|Changes in non-cash working capital:                         |   |                          |   |   |          |  
|Receivables                                                  |   | (368,535                 | ) |   | (122,849 | )
|Accounts
      payable and accrued liabilities               |   | (65,709                  | ) |   | (107,047 | )
|Amounts received from related parties                        |   | 79,075                   |   |   | 101,709  |  
|                                                             |   |                          |   |   |          |  
|Net cash used in
      operations                            |   | (414,200                 | ) |   | (735,008 | )
|                                                             |   |                          |   |   |          |  
|                                                             |   |                          |   |   |          |  
|Cash flows from investing activities                         |   |                          |   |   |          |  
|Acquisition of equipment                                     |   | (27,432                  | ) |   | (55,100  | )
|                                                             |   |                          |   |   |          |  
|Net cash used in
      investing activities                  |   | (27,432                  | ) |   | (55,100  | )
|                                                             |   |                          |   |   |          |  
|                                                             |   |                          |   |   |          |  
|Cash flows from financing activities                         |   |                          |   |   |          |  
|Proceeds of loan
      payable                               |   | 235,161                  |   |   | -        |  
|                                                             |   |                          |   |   |          |  
|Net cash provided
      by financing activities              |   | 235,161                  |   |   | -        |  
|                                                             |   |                          |   |   |          |  
|                                                             |   |                          |   |   |          |  
|Effect of exchange rate changes on cash and cash equivalents |   | 3,556                    |   |   | -        |  
|                                                             |   |                          |   |   |          |  
|Increase (decrease) in cash and cash equivalents             |   | (202,915                 | ) |   | (790,108 | )
|                                                             |   |                          |   |   |          |  
|Cash and cash equivalents, beginning of period               |   | 233,452                  |   |   | 836,064  |  
|                                                             |   |                          |   |   |          |  
|Cash and cash
      equivalents, end of period               | $ | 30,537                   |   | $ | 45,956   |  
|                                                             |   |                          |   |   |          |  
|                                                             |   |                          |   |   |          |  
|Supplementary information                                    |   |                          |   |   |          |  
|Interest paid                                                | $ | 2,281                    |   | $ | -        |  
|Taxes Paid                                                   | $ | 161                      |   | $ | -        |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

ARVANA,INC. ANDSUBSIDIARIESCONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(EXPRESSED IN US DOLLARS) (UNAUDITED)

|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|------------------------------------------------------------------ |  | ------------------ | - | - | ------ | - | - | --------------- |  | - | ----------- | - | - | ---------------- | - | - | ------------- | -
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|                                                                   |  | Common
      Stock |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   | Accumlated other |   |   | Total         |  
|                                                                   |  |                    |   |   |        |   |   | Additional      |  |   |             |   |   | comprehensive    |   |   | Stockholders' |  
|                                                                   |  | Shares             |   |   | Amount |   |   | Paid-in Capital |  |   | Deficit     |   |   | loss             |   |   | Equity        |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|Balance December 31, 2006                                          |  | 20,718,375         |   | $ | 20,719 |   | $ | 20,160,185      |  | $ | (18,330,869 | ) | $ | (59,530          | ) | $ | 1,790,505     |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|Return and cancellation
      of common stock                      |  | (16,000            | ) |   | (16    | ) |   | 16              |  |   | -           |   |   | -                |   |   | -             |  
|Net operating loss for the three
      months ended March 31, 2007 |  | -                  |   |   | -      |   |   | -               |  |   | (520,124    | ) |   | -                |   |   | (520,124      | )
|Foreign currency
      translation adjustment                      |  | -                  |   |   | -      |   |   | -               |  |   | -           |   |   | 2,057.30         |   |   | 2,057         |  
|Stock-based compensation                                           |  | -                  |   |   | -      |   |   | 463,600         |  |   | -           |   |   | -                |   |   | 463,600       |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|Balance March 31, 2007                                             |  | 20,702,375         |   |   | 20,703 |   |   | 20,623,801      |  |   | (18,850,993 | ) |   | (57,473          | ) |   | 1,736,038     |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|Net operating loss for the three
      months ended June 30, 2007  |  | -                  |   |   | -      |   |   | -               |  |   | (170,875    | ) |   | -                |   |   | (170,875      | )
|Foreign currency
      translation adjustment                      |  | -                  |   |   | -      |   |   | -               |  |   | -           |   |   | 1,499            |   |   | 1,499         |  
|Stock-based compensation                                           |  | -                  |   |   | -      |   |   | 66,400          |  |   | -           |   |   | -                |   |   | 66,400        |  
|                                                                   |  |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |   |   |               |  
|Balance June 30, 2007                                              |  | 20,702,375         |   |   | 20,703 |   |   | 20,690,201      |  |   | (19,021,868 | ) |   | (55,974          | ) |   | 1,633,062     |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Six Months Ended June 30, 2007 and 2006           
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

1. Nature of Business and Ability to Continue as a Going
Concern

Arvana Inc., (the Company) was incorporated under the laws of
the State of Nevada as Turinco, Inc. on September 16, 1977, with authorized
common stock of 2,500 shares with a par value of $0.25. On October 16, 1998, the
authorized capital stock was increased to 100,000,000 shares with a par value of
$0.001. On July 24, 2006, the shareholders approved a change of the Companys
name from Turinco, Inc. to Arvana Inc.

In 1998, the Company completed a common stock split of eight
shares for each outstanding share. In 2005, the Company completed another common
stock split of nine shares for each outstanding share. These consolidated
financial statements have been prepared showing after stock split shares with a
par value of $0.001.

The Company was inactive from 1982 until 2005, during which
time the Company was evaluating potentially profitable business opportunities.
In 2005, the Company decided to enter into the business of providing VoIP
telephone services. In August 2006 the Company acquired a company in Germany,
BCH Beheer and its wholly-owned subsidiary Hallotel Deutschland GmbH, which is
in the business of long distance carrier pre-select and wholesale carrier
business carrying traffic to Turkey.

These consolidated interim financial statements for the
six-month period ended June 30, 2007 include the accounts of the Company, its
subsidiary Arvana Networks (including its wholly-owned subsidiaries Arvana Par
and Arvana Comunicações do Brasil S. A. (Arvana Com) and BCH Beheer (and its
wholly-owned subsidiary Hallotel Deutschland GmbH). These financial statements
have been prepared on a going concern basis, which assumes the realization of
assets and settlement of liabilities in the normal course of business. For the
period ended June 30, 2007, the Company incurred a loss from operations of
$690,999. At June 30, 2007, the Company had a working capital deficiency of
$1,569,428. These conditions raise substantial doubt about the Companys ability
to continue as a going concern.

Accordingly, the Company will require continued financial
support from its shareholders and creditors until it is able to generate
sufficient cash flow from operations on a sustained basis. There is substantial
doubt that the Company will be successful at achieving these results. Failure to
obtain the ongoing support of its shareholders and creditors may make the going
concern basis of accounting inappropriate, in which case the Companys assets
and liabilities would need to be recognized at their liquidation values. These
financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts and classification
of liabilities that might arise from this uncertainty.

2. Summary of Significant Accounting Policies

(a) Basis of presentation

The Company began to generate revenues as a result of the acquisition
  of its German subsidiary during the final four months of 2006. In 2007 the Company
  commenced its planned principal operations and determined its target market
  segments and market strategies. Consequently, the Company exited the development
  stage during the six months ended June 30, 2007. The Companys fiscal year
  end is December 31. The accompanying consolidated interim financial statements
  of Arvana Inc. have been prepared in accordance with accounting principles generally
  accepted in the United States for interim financial information with the instructions
  to Form 10-QSB and Regulation S-B. Accordingly, they do not include all of the
  information and footnotes required by the accounting principles generally accepted
  in the United States for complete financial statements. Although they are unaudited,
  in the opinion of management, they include all adjustments, consisting only
  of normal recurring items, necessary for a fair presentation.

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Six Months Ended June 30, 2007 and 2006           
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

2. Summary of Significant Accounting Policies cont

Results are not necessarily indicative of results which may
  be achieved in the future. The consolidated financial statements and notes appearing
  in this report should be read in conjunction with the Company's consolidated
  audited financial statements and related notes thereto, together with Management's
  Discussion and Analysis of Financial Condition and Results of Operations, contained
  in the Company's Annual Report on Form 10-KSB for the fiscal year ended December
  31, 2006, as filed with the Securities and Exchange Commission (the SEC)
  on April 16, 2007 (file no. 000-30695).

(b) Basis of consolidation

The consolidated financial statements include the accounts of
the Company, its subsidiary Arvana Networks (including its wholly-owned
subsidiaries Arvana Par and Arvana Com) and BCH Beheer (and its wholly-owned
subsidiary Hallotel Deutschland GmbH). All significant inter-company
transactions and balances have been eliminated.

(c) Property and equipment:

Property and equipment is stated at cost less accumulated
depreciation and is depreciated on a straight line basis, commencing when the
assets are put into use over the estimated useful lives of the assets as
follows:

Machinery & equipment
    10 yearsOffice equipment
    3  5 yearsComputer hardware
    5 yearsSoftware
    1  4 years


(d) Impairment of long-lived assets and long-lived assets to
be disposed of:

Long-lived assets are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. Recoverability of assets to be held and used is measured by
a comparison of the carrying amount of an asset to future net cash flows
expected to be generated by the asset. If such assets are considered to be
impaired, the impairment to be recognized is measured by the amount by which the
carrying amount of the assets exceeds the fair value of the assets. Assets to be
disposed of are reported at the lower of the carrying amount and the fair value
less costs to sell. The Company has reviewed its long-lived assets and has
determined that no impairment charges were necessary for the period ended June
30, 2007.

(e) Stock-based compensation

The Company accounts for all stock-based payments to employees
and non-employees using the fair value based method. Under the fair value
method, stock-based payments are measured at the fair value of the consideration
received, or the fair value of the equity instruments issued, or liabilities
incurred, whichever is more reliably measurable. The cost of stock-based
payments to non-employees that are fully vested and non-forfeitable at the grant
date is measured and recognized at that date.

(f) Net loss per share

Basic loss per share is computed using the weighted average
number of common shares outstanding during the year. Diluted loss per share is
computed using the weighted average number of common shares and potentially
dilutive common stock equivalents, including stock options and warrants. As at
June 30, 2007, the Company had 1,600,000 of potentially dilutive instruments
that were excluded from the determination of diluted loss per share as they
would be anti-dilutive.

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Six Months Ended June 30, 2007 and 2006           
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

3. Property and Equipment

| | At June 30, 2007  |   |           |  |   |              |  |   |          | 
| | ----------------- | - | --------- |  | - | ------------ |  | - | -------- | 
| |                   |   |           |  |   | Accumulated  |  |   | Net Book | 
| |                   |   | Cost      |  |   | Amortization |  |   | Value    | 
| |                   |   |           |  |   |              |  |   |          | 
| | Equipment         | $ | 299,383   |  | $ | 129,499      |  | $ | 169,884  | 
| | Computer hardware |   | 728,943   |  |   | 336,966      |  |   | 391,977  | 
| | Software          |   | 111,021   |  |   | 29,207       |  |   | 81,814   | 
| |                   |   |           |  |   |              |  |   |          | 
| |                   | $ | 1,139,347 |  | $ | 495,672      |  | $ | 643,675  | 

The Company has not taken amortization on equipment if
utilization of the equipment has not yet begun. The net carrying amount of
equipment not being amortized was $30,837 as of June 30, 2007.

| | At December 31,   |   |         |  |   |              |  |   |          | 
| | ----------------- | - | ------- |  | - | ------------ |  | - | -------- | 
| | 2006              |   |         |  |   |              |  |   |          | 
| |                   |   |         |  |   | Accumulated  |  |   | Net Book | 
| |                   |   | Cost    |  |   | Amortization |  |   | Value    | 
| |                   |   |         |  |   |              |  |   |          | 
| | Equipment         | $ | 205,099 |  | $ | 16,284       |  | $ | 188,815  | 
| | Computer hardware |   | 502,667 |  |   | 52,797       |  |   | 449,870  | 
| | Software          |   | 94,237  |  |   | 2,236        |  |   | 92,001   | 
| |                   |   |         |  |   |              |  |   |          | 
| |                   | $ | 802,003 |  | $ | 71,317       |  | $ | 730,686  | 

The net carrying amount of equipment not being amortized was
$111,096 as at December 31, 2006.

4. Related Parties

On June 1, 2007, the Company received an unsecured, 6% interest
per annum loan from Valor Invest Ltd, a shareholder of the Company in the amount
of $35,000 CAD ($33,051 USD). Repayment of the loan is due on closing of any
financing arrangement by Arvana Inc., or on or before July 1, 2007, whichever
occurs sooner.

On February 20, 2007, the Company received an unsecured, 6%
interest per annum loan from Valor Invest Ltd, a shareholder of the Company in
the amount of 150,000 Euros ($200,595 USD). Repayment of the loan is due on
closing of any financing arrangement by Arvana Inc., or on or before July 1,
2007, whichever occurs sooner.

At June 30, 2007 Arvana Inc. had amounts due to related parties
in the amount of $126,626 (December 31, 2006 $47,551). This amount includes
$74,300 (December 31, 2006 $35,000) payable to three directors for services
rendered during the year. This amount is to be paid part in cash and part in
stock at a future date with the number of common shares determined by the fair
value of the shares on the settlement date. The amounts owing bear no interest
and are unsecured.

For the six-month period ended June 30, 2007, $23,657 (December
31, 2006 $NIL) was incurred by the Company for services rendered by the current
Chief Financial Officer and Corporate Secretary of the Company. At June 30,
2007, $18,886 (December 31, 2006 $17,200) was owed to the former Chief Financial
Officer and Corporate Secretary and $26,440 (December 31, 2006 $24,080) was owed
to the former President / Chief Executive Officer. The Corporate Secretary of
Arvana Networks Inc. was owed $7,000 at June 30, 2007 (December 31, 2006
$6,364). The amounts owing bear no interest and are unsecured.

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Six Months Ended June 30, 2007 and 2006           
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

5. Stockholders Equity

During the period the Company cancelled and returned to
treasury 16,000 common shares at a par value of $0.001 per share.

The Company follows SFAS No. 123R, Accounting for Stock-Based
Compensation, in accounting for stock-based employee compensation plans and
transactions in which an entity issued its equity instruments to acquire goods
or services from non-employees. Where the fair value of equity instruments
issued in connection with the provision of goods or services or the issuance of
share capital is more reliably measurable than the fair value of the
consideration received, the transaction is accounted for based on the fair value
of the equity instruments issued and the difference between the fair value and
recorded value of the transaction is recorded as stock-based compensation
expense.

The Company has a stock option plan in place under which it is
authorized to grant options to executive officers and directors, employees and
consultants enabling them to acquire up to 10% of the issued and outstanding
common stock of the Company. Under the plan, the exercise price of each option
equals the market price of the Company's stock as calculated on the date of
grant. The options can be granted for a maximum term of 10 years. On June 5,
2006, the Company granted 1,600,000 stock options to its directors and
employees. Each option is exercisable into one common share until December 31,
2009 at an exercise price of $1.25. The options were valued at $1,424,000 using
the Black-Scholes model, which will be expensed over the vesting period of the
options. The Company recorded an expense of $530,000 in the six months ended
June 30, 2007 for the pro-rated portion of the full charge.

As at June 30, 2007, the following incentive stock options are
outstanding:

|Number     | Exercise |                  
|---------- | -------- | -----------------
|of options | Price    | Expiry
      Date
|           |          |                  
|1,600,000  | $ 1.25   | December 31, 2009

Stock option transactions and the number of share options
outstanding are summarized as follows:

|                                              |  |                  |  |   | Weighted | 
|--------------------------------------------- |  | ---------------- |  | - | -------- | 
|                                              |  |                  |  |   | Average  | 
|                                              |  | Number           |  |   | Exercise | 
|                                              |  | of
      Options |  |   | Price    | 
|                                              |  |                  |  |   |          | 
|Balance, December 31, 2006                    |  | 1,600,000        |  | $ | 1.25     | 
|Options granted                               |  | -                |  |   | -        | 
|Options
      expired                         |  | -                |  |   | -        | 
|Options exercised                             |  | -                |  |   | -        | 
|                                              |  |                  |  |   |          | 
|Balance, June 30,
      2007                  |  | 1,600,000        |  | $ | 1.25     | 
|                                              |  |                  |  |   |          | 
|Number of options
      currently exercisable |  | 533,333          |  | $ | 1.25     | 

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Six Months Ended June 30, 2007 and 2006           
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

6. Segmented Information

The Company has one reportable segment, being the development
of the telephone services. This reportable segment was determined based on the
nature of the products offered. Of the total property and equipment, $852
(December 31, 2006 $81,262) is located in Canada, $30,837 (December 31, 2006
$30,837) is located in Brazil and $611,986 (December 31, 2006 $618,587) is
located in Germany.

7. Commitments

The Company has the following commitments:

|                        |   | 2007   |  |   | 2008   |  |   | 2009   |  |   | 2010  | 
|----------------------- | - | ------ |  | - | ------ |  | - | ------ |  | - | ----- | 
|Software platform lease | € | 7,428  |  | € | 14,856 |  | € | 10,523 |  | € | -     | 
|Vehicle leases          |   | 16,320 |  |   | 32,640 |  |   | 27,410 |  |   | 4,860 | 
|Office lease            |   | 8,940  |  |   | 1,490  |  |   | -      |  |   | -     | 
|                        |   |        |  |   |        |  |   |        |  |   |       | 
|Total in euros          | € | 32,688 |  | € | 48,986 |  | € | 37,933 |  | € | 4,860 | 

8. Subsequent Events

The Company issued IPH Horizons LLC (IPH) 1,500,000 shares in
August 2005 in exchange for a commitment to deliver equipment, software and
network hardware for the initial launching of the Companys VOIP telephone
services in Brazil. As of December 31, 2006, the Company had not received the
full complement of assets to be acquired in connection with this transaction or
other consideration. Accordingly, the 1,500,000 shares were not reflected on our
financial statements as having been issued. The following agreement has been
reached with IPH with respect to this transaction:

| | • | IPH agreed to cancellation of the 1,500,000 common shares
      issued to IPH in August 2005. These shares were cancelled subsequent to
      June 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | • | IPH has contributed certain equipment and has developed
      certain software, some of which is recorded in Arvana Comunicações general
      ledger in the amount of $36,309. In recognition of the contribution of the
      aforementioned equipment and software architecture services from IPH to
      Arvana Inc. and Arvana Networks, Arvana Inc. and IPH have agreed to settle
      indebtedness of $150,000 to IPH. The balance due to IPH as at December 31,
      2006 was $125,283 with an additional amount of $24,717 due as a result of
      payments in February 2007, providing a total due to IPH of
  $150,000.
| | • | For settlement of this indebtedness, the Company agreed
      to issue 500,000 common shares at a deemed price of $0.30 per share. These
      shares were issued subsequent to June 30,
2007.                                                                                                                                                                                                                                                                                                                                                                                                                                        

---

Item
2.               
Management's Discussion and Analysis or Plan of Operation.

In this Quarterly Report:

|(i)  | references to we, us, our, or the Company refer
      to Arvana Inc. (formerly, Turinco Inc.) and our wholly-owned subsidiaries,
      namely:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                       
|     | •                                                                                                                                                     
|     |                                                                                                                                                       
|     | •                                                                                                                                                     
|     |                                                                                                                                                       
|(ii) | all dollar amounts are expressed in United States
      dollars, unless otherwise indicated.                                                          

You should read the following discussion and analysis of our
financial condition, results of operations and plan of operations together with
the interim consolidated financial statements and notes to the interim
consolidated financial statements included in this Quarterly Report, as well as
our most recent annual report Form 10-KSB for the year ended December 31, 2006
and current reports on Form 8-K.

Forward-Looking Statements

The information in this Quarterly Report on Form 10-QSB contains
  forward-looking statements within the meaning of Section 27A of the Securities
  Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
  as amended. These forward-looking statements involve risks and uncertainties,
  including statements regarding our capital needs, business plans and expectations.
  Such forward-looking statements involve risks and uncertainties regarding the
  our planned VoIP business, availability of funds, government regulations, common
  share prices, operating costs, capital costs, our ability to deploy our planned
  business and generate revenues and other factors. Any statements contained herein
  that are not statements of historical facts may be deemed to be forward-looking
  statements. In some cases, you can identify forward-looking statements by terminology
  such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe",
  "estimate", "predict", "potential" or "continue", the negative of such terms
  or other comparable terminology. These statements are based on certain assumptions
  and analyses made by our management in light of its experience and its perception
  of historical trends, current conditions and expected future developments as
  well as other factors they believe are appropriate in the circumstances. Actual
  events or results may differ materially. In evaluating these statements, you
  should consider various factors, including the risks outlined below, and, from
  time to time, in other reports we file with the SEC. These factors may cause
  our actual results to differ materially from any forward-looking statement.
  We disclaim any obligation to publicly update these statements, or disclose
  any difference between its actual results and those reflected in these statements.
  Given these uncertainties, readers are cautioned not to place undue reliance
  on such forward-looking statements.

---

Overview

We are engaged in the telecommunications industry through our
  Hallotel subsidiary. Hallotel is a German based telecommunications service provider
  that is focused on the provision of long distance telephone calls between Germany,
  Austria, Switzerland and Turkey. Hallotel has been in operations since August,
  2000, and was acquired by us on August 23, 2006.

Business of Hallotel

Hallotel, a company based in Frankfurt, Germany, was organized
  under the laws of Germany in August, 2000 and is a telecommunications service
  provider focused on the provision of long distance telephone calls between Germany,
  Austria, Switzerland and Turkey. Hallotels switching facilities and agreements
  with the incumbent carriers enable its customers to call between cities within
  Germany and to international destinations. Hallotels marketing efforts
  and rate structures are designed to be attractive to those customers that are
  likely to call frequently between countries and specifically between Germany,
  Russia and Turkey. As an example, Hallotel focuses on generating revenues by
  marketing to members of the Turkish community living in Germany who make frequent
  calls to their families and friends in Turkey.

The services provided by Hallotel are comprised primarily of the following:

Carrier Pre-Select:

Carrier Pre-Select (CPS) is a service that allows the customer to route their outgoing calls using Hallotels network. There is no installation or programming of equipment required and the customer does not have to dial a code to activate the
service. CPS gives the customer access to competitive call rates because Hallotel is free to negotiate wholesale deals with different network providers and to make use of cost effective VoIP technology and the Internet whenever appropriate.

Call By Call Pre-Select:

Call by call pre-select service is provided in essentially the same manner as CPS described above, except that the customer does not need to authorize the change of long distance access to one of Hallotels carrier partners. Call by call
pre-select allows the customer to choose Hallotels long distance service and benefit from competitive rates at any time and for any particular call and the customer can choose on a call by call basis. The customer initially establishes an
account with Hallotel and may then make long distance calls at any time by using a pre-select code ahead of all routing and called-party numbers.

Wholesale Carrier Services:

Hallotel has established agreements with certain other telecommunications service providers whereby Hallotel will accept long distance telephone traffic from these wholesale carriers and provide terminations in Germany and Turkey.

VoIP Services

Hallotel has launched VoIP services specifically targeted to immigrant communities and small and medium sized enterprises which operate multi-nationally. Hallotel has negotiated agreements with broad band suppliers to provide high speed data
services which is bundled with voice over internet protocol (VoIP) telephony services. The combined package is priced at an attractive rate when compared to buying the services separately, and provides discounted or unlimited calling on a zone basis
as selected by the customer e.g. unlimited calling within Germany, or specific groups of countries within the EEC, and Eastern Europe. Hallotel began to deploy VoIP across Germany in April 2007, offering both residential and business services.

Calling Cards:

Hallotel is in the process of producing
  calling cards to be distributed to a network of resellers in Austria and Germany.
  A calling card user can call a toll free number to make long distance calls
  to destinations throughout the world. Hallotel will market these cards with
  promotional offers and calling rates that are particularly attractive for those
  customers that call Turkey frequently and who are looking for reliability, quality
  and competitive pricing. All such calling cards are prepaid.

---

Our Plan of Operations

Our present plan of operation for the next twelve months is
  to focus on continuing and expanding the business of Hallotel. Since completion
  of the acquisition of Hallotel, we have been working with the management of
  Hallotel in order to develop and define our plan of operations for Hallotel.
  We are presently not pursuing the Arvana Networks business in Brazil.

We anticipate that this plan of operations will focus on the expanding following services , subject to our achieving additional financing:

VoIP Services

Hallotel has launched VoIP services specifically targeted to immigrant communities and small and medium sized enterprises which operate multi-nationally. Hallotel has negotiated agreements with broad band suppliers to provide high speed data
services which is bundled with voice over internet protocol (VoIP) telephony services. The combined package is priced at an attractive rate when compared to buying the services separately, and provides discounted or unlimited calling on a zone basis
as selected by the customer e.g. unlimited calling within Germany, or specific groups of countries within the EEC, and Eastern Europe. Hallotel began to deploy VoIP across Germany in April 2007, offering both residential and business services.

Wholesale Carrier Services

This continues to present significant opportunities and Hallotel is expanding capacity through additional equipment purchases. The Company has an ongoing objective to negotiate wholesale termination rates with countries that have large immigrant
populations in Germany, and neighbouring countries such as Austria and Switzerland. These include Eastern and Southeastern Europe, the Middle East and Central Asia.

As discussed further below, we are presently not able to achieve our plan of operations without additional financing. Our board of directors has considered how to allocate any new financing that we achieve between our plan of operations for Arvana
Networks and expansion of the Hallotel business. The evaluation resulted in a determination to significantly scale back our plan of operations for Arvana Networks and our Internet telephony business.

We anticipate spending approximately $3,000,000 to $4,000,000 to proceed with our plan of operations over the next twelve months. Based on our planned expenditures, we will require a minimum of $3,000,000 in additional financing in order
to complete this plan of operations. Also, we anticipate that we will require additional financing in order to pursue development of partnerships and opportunities in Internet telephony that are over and above our plans for Europe and other
countries.

If we achieve less than the full amount of financing that we require we will scale back our development and expansion plans based on our available financial resources.

We believe that debt financing will not be an alternative
  for funding additional phases of our business development as we do not have
  tangible assets to secure any debt financing. We anticipate that additional
  funding will be in the form of equity financing from the sale of our common
  stock. However, we do not have any financing arranged and we cannot provide
  investors with firm assurance that we will be able to raise sufficient funding
  from the sale of our common stock to fund our plan of operations.

---

Additional Acquisitions and New Business Opportunities

We plan to consider and evaluate prospective acquisitions
  and new business opportunities in the Internet telephony businesses which would
  offer us the ability to deploy Internet telephone solutions and develop and
  expand our customer base and business. We anticipate that our determination
  to pursue any prospective acquisitions or new business opportunities will be
  contingent upon our achieving additional financing, of which there is no assurance.

Critical Accounting Policies

Critical accounting policies are those that management believes are both most important to the portrayal of the Companys financial condition and results of operations and that require difficult, subjective, or complex judgements, often as a
result of the need to make estimates about the effects of matters that involve uncertainty.

We believe that the critical accounting policies
  that we use in the preparation of our financial statements are as follows:

a) Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

b) Foreign currency translation and transactions

Our functional currency is the United States dollar.

We use the temporal method when translating the Brazilian subsidiary operations. Long-term assets and liabilities denominated in a foreign currency are translated into US dollars at the exchange rate in effect on the transaction date. Revenue and
expenses are translated at the average rates of exchange prevailing during the periods. The cumulative effects of these translation adjustments were included in administration expenses as they were insignificant.

We use the current rate method when translating the German subsidiary operations. All assets and liabilities denominated in a foreign currency are translated into US dollars at the exchange rate in effect on the balance sheet date. Revenue and
expenses are translated at the average rates of exchange prevailing during the periods. The cumulative effects of these translation adjustments are presented as a component of comprehensive income.

Transactions conducted in foreign currencies are recorded using the exchange rate in effect on the transaction date. At the period end, monetary assets and liabilities are translated to the functional currency of each entity using the exchange rate
in effect at the period end date. Transaction gains and losses are recorded in foreign exchange gain or loss in administration expenses as they were insignificant.

The exchange rate prevailing at June 30, 2007, was 1.9288,
  stated in the Brazilian Real per one US dollar. The average exchange rate during
  the six-month period ended June 30, 2007, was 2.0501 stated in the Brazilian
  Real per one US dollar. For the Euro, the exchange rate prevailing at June 30,
  2007, was 1.3474 per one US dollar. The average exchange rate during the six-month
  period ended June 30, 2007, was 1.3483 stated in the Euro per one US dollar.

---

c) Impairment of long-lived assets and long-lived assets
  to be disposed of:

Long-lived assets are reviewed for impairment whenever events
  or changes in circumstances indicate that the carrying amount of an asset may
  not be recoverable. Recoverability of assets to be held and used is measured
  by a comparison of the carrying amount of an asset to future net cash flows
  expected to be generated by the asset. If such assets are considered to be impaired,
  the impairment to be recognized is measured by the amount by which the carrying
  amount of the assets exceeds the fair value of the assets. Assets to be disposed
  of are reported at the lower of the carrying amount and the fair value less
  costs to sell. We have reviewed our long-lived assets and has determined that
  no impairment charges were necessary for the period ended June 30, 2007.

d) Stock-based compensation

We account for all stock-based payments to employees and
non-employees using the fair value based method. Under the fair value method,
stock-based payments are measured at the fair value of the consideration
received, or the fair value of the equity instruments issued, or liabilities
incurred, whichever is more reliably measurable. The cost of stock-based
payments to non-employees that are fully vested and non-forfeitable at the grant
date is measured and recognized at that date.

Presentation of Financial Information

Our financial statements for the quarter ended June 30, 2007
include the accounts of:

- Arvana Networks;
- Arvana Par;
- Arvana Com;
- BCH Beheer and its wholly-owned subsidiary Hallotel Deutschland GmbH.

The accounts of BCH Beheer and Hallotel are included in our
statements of operations and statements of cash flows from August 23, 2006,
being the date of closing of our acquisition of BCH Beheer and Hallotel, through
December 31, 2006. Our results of operations presented below for periods prior
to August 23, 2006, including the six months ended June 30, 2006, do not include
the results of operations of BCH Beheer and Hallotel.

Results of Operations

References in the discussion below to 2006 are to our fiscal
year ended December 31, 2006. Similarly, references to 2005 are to our fiscal
year ended December 31, 2005. References to 2007 are to our current fiscal year
that will end December 31, 2007.

Our operations for the six months ended June 30, 2007 and 2006
are summarized below. Our current activities relating to the development of our
planned VOIP telephone services business are reflected in the results of
operations for the quarter ended June 30, 2007 and 2006.

Six months ended June
        30, 2007
      Six months ended June
        30, 2006Revenues
      $2,916,741
      $0Costs of Sales
      $2,208,987
      $0Gross profit
      $707,754
      $0Operating Expenses:




---

|                                  | Six months ended June
      30, 2007 | Six months ended June
      30, 2006
|--------------------------------- | ------------------------------------ | ------------------------------------
|Selling and promotion             | $34,480                              | $0                                  
|General and Administration        | $634,567                             | $529,319                            
|Research and Development          | $0                                   | $77,502                             
|Depreciation                      | $104,384                             | $150                                
|Other Items:                      |                                      |                                     
|Stock Based Compensation          | $530,000                             | $33,200                             
|Loss on write-off of equipment    | $10,059                              | $0                                  
|Other Income                      | $3,738                               | $0                                  
|Income taxes                      | $89,001                              | $0                                  
|Other comprehensive gains         | $3,556                               | $0                                  
|Comprehensive Loss for the Period | $687,443                             | $640,171                            

Revenues

Our revenues are attributable to the services provided by
Hallotel. We did not generate any revenues during the period prior to our
acquisition of Hallotel and do not generate any revenues outside of our Hallotel
business. The substantial majority of the revenues generated to date are from
the Hallotel long distance pre-select and wholesale carrrier business. Calling
card revenues have been minimal and the VoIP business did not commence until the
second quarter of 2007.

Our revenues were $1,200,520 for the second quarter of 2007 and
$2,916,741 for the first half of 2007.

Cost of Sales

Our costs of sales are attributable to costs of sales incurred
by Hallotel in connection with providing its services Our cost of sales were
$913,999 for the second quarter of 2007, representing 76.1% of revenues, and
$2,208,987 for the first half of 2007, represented 75.7% of revenues.

Gross Profits

Our gross profits were $286,521 for the second quarter of 2007,
representing 23.9% of revenues, and $707,754 for the first half of 2007,
representing 24.3% of revenues. All of our gross profits were attributable to
our Hallotel business.

Sales and Promotion Expenses

Sales and promotion expenses consist primarily of commissions
paid to third parties in connection with our Hallotel business.

General and Administration Expenses

General and administrative expenses are comprised of costs associated
  with management compensation, office overhead including rent, directors fees,
  legal fees, and consulting services.

---

Research and Development

Our research and development team was terminated in November
  2006 as a result of our decision to close down our Brazilian operations.

For the first half of 2007, research and development expenses
  were $NIL as compared to $77,502 for the same period in 2006.

Stock-based Compensation

On June 5, 2006, our board of directors approved a 2006 Stock
  Option plan and granted options to various members of our company and certain
  subsidiaries. The options granted vest over a three-year period with one-third
  vesting on January 1, 2007 and one-third vesting on each of January 1, 2008
  and 2009. The options have an exercise price of $1.25. The options were valued
  at $1,424,000 using the Black-Scholes model, which will be expensed over the
  vesting period of the options. The Company recorded an expense of $66,400
  in the second quarter of 2007 and $530,000 in the first half of 2007 for
  the pro-rated portion of the full charge.

Loss on the write-off of equipment

In the first six months of 2007, we recorded a loss on the write-off of equipment in the amount of $10,059 which was attributable to software that was no longer usable for our existing operations.

Net Loss for the Period

We incurred a net loss of $690,999 for the first half of 2007 compared with a net loss of $640,171 for the first half of 2006. The majority of the loss in the first half of 2007 was attributable to our increased stock-based compensation
expense.

Liquidity and Capital Resources

As at June 30, 2007, we had cash of $30,537 and a working capital deficit of $1,569,428. This compares to cash of $233,452 and a working capital deficit of $1,486,521 as at December 31, 2006.

Cash Flows from Operating Activities

We used cash from operations in the amount of $414,200 during the six months ended June 30, 2007. Cash used from operations was primarily due to a substantial increase in accounts receivables and general and administrative costs associated with
public company expenses.

Cash Used in Investing Activities

We used cash in investing activities in the amount of $27,432 during the six months ended June 30, 2007. Of this amount, $4,116 was attributable to our purchase of software and $23,316 was attributable to the purchase of other equipment.

Cash Flows from Financing Activities

We received $235,161 from the proceeds of two short-term
  loans during the six months ended June 30, 2007. The loans were due to be repaid
  on the earlier of the closing of any financing completed by us or July 1, 2007.
  We have not yet repaid the loans and we are in negotiations with the lender
  to extend the term of the loans.

---

Amounts due to IP Horizon LLC

IPH was issued 1,500,000 shares in August 2005 in exchange
  for a commitment to deliver equipment, software and network hardware for the
  initial launching of the Companys VOIP telephone services in Brazil. IPH
  also agreed to provide termination services to Arvana Networks for these VOIP
  telephone services at its cost plus an administration fee not to exceed 13 percent.
  As of December 31, 2006, we had not received the full complement of assets to
  be acquired in connection with this transaction or other consideration. Accordingly,
  the 1,500,000 shares were not reflected on our financial statements as having
  been issued. The following agreement has been reached with IPH with respect
  to this transaction:

- IPH agreed to cancellation of the 1,500,000 common shares issued to IPH
    in August 2005.
- IPH has contributed certain equipment and has developed certain software,
    some of which is recorded in Arvana Comunicações general ledger
    in the amount of $36,309.25. In recognition of the contribution of the
    aforementioned equipment and software architecture services from IPH to Arvana
    Inc. and Arvana Networks, Arvana Inc. and IPH have agreed to settle indebtedness
    of $150,000 to IPH. The balance due to IPH as at December 31, 2006 was $125,283
    with an additional amount of $24,717 due as a result of payments in February
    2007, providing a total due to IPH of $150,000.
- For settlement of this indebtedness, we agreed to issue 500,000 common shares
    at a deemed price of $0.30 per share.

Accordingly and based on the above agreements, we entered into
a Regulation D Debt Conversion Agreement dated effective March 28, 2007 with
Arvana Networks Inc. and IPH, a copy of which was filed with our current report
on Form 8-K filed with the SEC on May 4, 2007. Our board of directors approved
the issuance of the 500,000 new shares to IPH on May 1, 2007, which shares are
subject to a two year contractual hold period. Due to a delay in processing, the
original 1,500,000 shares were returned to treasury and cancelled subsequent to
June 30, 2007 and the 500,000 debt settlement shares were issued subsequent to
June 30, 2007.

Plan of Operations

We estimate that our total expenditures over the next twelve
months will be at least $3,000,000, as discussed above under the heading
Description of Business - Plan of Operations, which amount will include
projected administration costs. Accordingly, we anticipate that we will require
a minimum of approximately $3,000,000 in additional financing to proceed with
our plan of operations over the next twelve months. In addition, we anticipate
that the Company will require additional financing in order to pursue the
acquisition of any opportunities in the VOIP business beyond the specific
opportunities that are outlined above. If we are unable to achieve the necessary
additional financing, then we plan to reduce the amounts that we spend on the
development of our VOIP business opportunities and our administrative expenses
in order to be within the amount of capital resources that are available to us.

During the next twelve month period, we anticipate that our revenues
  will not exceed our operating expenses. Accordingly, we will be required to
  obtain additional financing in order to continue our plan of operations. We
  believe that debt financing will not be an alternative for funding our business.
  We anticipate that additional funding will be in the form of equity financing
  from the sale of our common stock. However, we do not have any financing arranged
  and we cannot provide investors with any assurance that we will be able to obtain
  sufficient funding from the sale of our common stock to fund our plan of operations.

Going Concern

We have not attained profitable operations and are dependent
upon obtaining financing to pursue our plan of operations. For these reasons our
auditors stated in their report on our audited financial statements that they
have substantial doubt we will be able to continue as a going concern.

Future Financings

We anticipate continuing to rely on equity sales of our shares
  of common stock in order to continue to fund our business operations. There
  is no assurance that we will achieve any additional sales of our equity securities
  or arrange for debt or other financing to fund our plan of operations.

---

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably
  likely to have a current or future effect on our financial condition, changes
  in financial condition, revenues or expenses, results of operations, liquidity,
  capital expenditures or capital resources that are material to stockholders.

---

Item 3.               
  Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act
  of 1934 (the Exchange Act), we carried out an evaluation of the
  effectiveness of the design and operation of our disclosure controls and procedures
  as of June 30, 2007, being the date of our most recently completed quarter.
  This evaluation was carried out under the supervision and with the participation
  of our Chief Executive Officer, Mr. Teyfiq Ozcean, and our Chief Financial Officer,
  Mr. Wayne Smith. Based upon that evaluation, our Chief Executive Officer and
  Chief Financial Officer have concluded that our disclosure controls and procedures
  are effective to ensure that information required to be disclosed by us in the
  reports that we file or submit under the Exchange Act is recorded, processed,
  summarized and reported within the time periods specified by the rules and forms
  of the Securities and Exchange Commission (the SEC).

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our 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. Disclosure controls and procedures include, without limitation,
controls and procedures designed to ensure that information required to be
disclosed in our reports filed under the Exchange Act is accumulated and
communicated to management, including our Chief Executive Officer and our Chief
Financial Officer, to allow timely decisions regarding required disclosure.

During the fiscal quarter ended June 30, 2007, there were no
changes in our internal control over financial reporting that have materially
affected, or are reasonably likely to affect, our internal control over
financial reporting during the six months ended June 30, 2007.

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, the registrants
principal executive and principal financial officers, or persons performing
similar functions, and effected by the registrants board of directors,
management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles and includes those policies and procedures that:

|(a) | Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      the assets of the registrant;                                                                                                                                                                                                   
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                
|(b) | Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures of the registrant are being made only in
      accordance with authorizations of management and directors of the
      registrant; and
|    |                                                                                                                                                                                                                                                                                                                                                                                
|(c) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of the
      registrants assets that could have a material effect on the financial
      statements.                                                                                                                                              

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PART II

Item 1.               
  Legal Proceedings.

We currently are not a party to any material legal proceedings
  and to our knowledge, no such proceedings are threatened or contemplated.

Item 2.               
  Unregistered Sales of Equity Securities and Use of Proceeds

We did not complete any sales of securities without
registration under the Securities Act of 1933 during our second quarter ended
June 30, 2007.

Item
3.               
Defaults Upon Senior Securities

None.

Item
4.               
Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of our security holders
during the six month period ended June 30, 2007.

Item
5.               
Other Information

None.

---

Item
6.               
Exhibits

The following exhibits are included with this Quarterly Report
on Form 10-QSB:

Exhibit Number
      Description of Exhibit3.1
      Articles of Incorporation(1)3.2
      Bylaws, as amended(1)10.1
      Agreement and Plan of Reorganization
          between the Company, Arvana Networks, Inc. and the Shareholders of Arvana
          Networks, Inc. dated August 18, 2005(2)10.2
      Investment Agreement dated
          October 6, 2006 between the Company, Arvana Networks, Inc., Arvana Participações
          S.A., Gloinfo 500 Soluções EM Telemática Ltda. and Paulo
          Messina (3)10.3
      Amendment to Investment Agreement
          signed October 6, 2005 and dated October 4, 2005 between the Company,
          Arvana Networks, Inc., Arvana Participações S.A., Gloinfo
          500 Soluções EM Telemática Ltda. and Paulo Messina(3)10.4
      Share Purchase Agreement dated
          August 9, 2006 among Brulex-Consultadoria Economica E Marketing Ltda,
          Turinco Inc. and Hallotel Deutschland GmbH (5)10.5
      Termination Agreement between
          Arvana Inc., Gloinfo 500 Soluções EM Telemática Ltda.,
          Paulo Santos Messina and Lucia Sangiacomo Messina, Arvana Participações
          S.A., Arvana Comunicações do Brasil S. A. and Arvana Networks
          Inc. dated October 31, 2006. (6)10.6
      Regulation D Debt Conversion
          Agreement amongst the Company, IPH Horizon LLC and Arvana Networks Inc.
          dated effective March 28, 2007 (7)14.1
      Code of Ethics (4)31.1
      Certification
          of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange
          Act (8)31.2
      Certification
          of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange
          Act(8)32.1
      Certification
          of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange
          Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
          the Sarbanes- Oxley Act of 2002 (8)32.2
      Certification
          of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange
          Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002 (8)


|(1) | Previously filed with the SEC as an exhibit to the
      Companys registration statement on Form 10- SB filed with the SEC on May
      24, 2000.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                   
|(2) | Previously filed with the SEC as an exhibit to the
      Companys Current Report on Form 8-K filed with the SEC on August 19,
      2005.        
|    |                                                                                                                                                   
|(3) | Previously filed with the SEC as an exhibit to the
      Companys Quarterly Report on Form 10-QSB filed with the SEC on December
      14, 2005. 
|    |                                                                                                                                                   
|(4) | Previously filed with the SEC as an exhibit to the
      Companys Annual Report on Form 10-KSB filed with the SEC on March 31,
      2006.       
|    |                                                                                                                                                   
|(5) | Previously filed with the SEC as an exhibit to the
      Companys Current Report on Form 8-K filed with the SEC on August 15,
      2006.        
|    |                                                                                                                                                   
|(6) | Previously filed with the SEC as an exhibit to the
      Companys Current Report on Form 8-K filed with the SEC on August 15,
      2006.        
|    |                                                                                                                                                   
|(7) | Previously filed with the SEC as an exhibit to the
      Companys Current Report on Form 8-K filed with the SEC on May 4,
    2007.              
|    |                                                                                                                                                   
|(8) | Filed as an exhibit to this Quarterly Report on Form
      10-QSB.                                                                                

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

ARVANA INC.

|By: | /s/
      Teyfik Oezcan                                    | 
|--- | ---------------------------------------------------------- | 
|    | Teyfik Oezcan, President and Chief Executive
      Officer | 

Date: August 14, 2007

|By: | /s/
      Wayne Smith                | 
|--- | ------------------------------------ | 
|    | Wayne Smith, Chief Financial Officer | 

Date: August 14, 2007

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