---

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 September 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 beensubject 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 November 12, 2007

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

---

PART I

ARVANA INC.

FORM 10-QSB

For the Quarterly Period Ended September 30, 2007

INDEX

|PART I     | Financial Information                                       | 3 
|---------- | ----------------------------------------------------------- | --
|Item 1.    | Financial Statements                                        | 3 
|Item 2.    | Managements Discussion and Analysis or Plan of Operation   | 13
|Item 3.    | Controls and Procedures                                     | 23
|           |                                                             |   
|PART II    | Other Information                                           | 24
|Item 1.    | Legal Proceedings                                           | 24
|Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds | 24
|Item 3.    | Defaults Upon Senior Securities                             | 24
|Item 4.    | Submission of Matters to a Vote of Security Holders         | 24
|Item 5.    | Other Information                                           | 24
|Item 6.    | Exhibits                                                    | 25
|Signatures | 26                                                         

---

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 September 30, 2007 and December 31, 2006
    4Consolidated
      Statements of Operations for the nine months ended September 30, 2007 and
      2006
    5Consolidated
      Statements of Cash Flows for the nine months ended September 30, 2007 and
      2006
    6Consolidated
      Statement of Stockholders Equity for the nine months ended September 30,
      2007
    7Notes
      to Consolidated Financial Statements
    8


---

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

|                                                                                       |   |               |   |   | (Audited)    |  
|-------------------------------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                                       |   | September 30, |   |   | December 31, |  
|                                                                                       |   | 2007          |   |   | 2006         |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   |               |   |   |              |  
|ASSETS                                                                                 |   |               |   |   |              |  
|                                                                                       |   |               |   |   |              |  
|Current                                                                                |   |               |   |   |              |  
|Cash and cash equivalents                                                              | $ | 259,703       |   | $ | 233,452      |  
|Receivables (net
      of allowance of $8,713, December 31, 2006 $32,355)              |   | 901,159       |   |   | 1,676,177    |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   | 1,160,862     |   |   | 1,909,629    |  
|Long-term                                                                              |   |               |   |   |              |  
|Property and
      equipment (Note 3)                                                  |   | 637,037       |   |   | 730,686      |  
|Subscriber accounts                                                                    |   | 2,605,499     |   |   | 2,605,499    |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       | $ | 4,403,398     |   | $ | 5,245,814    |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   |               |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                   |   |               |   |   |              |  
|                                                                                       |   |               |   |   |              |  
|Current                                                                                |   |               |   |   |              |  
|Accounts payable and accrued
      liabilities                                         | $ | 1,892,004     |   | $ | 3,018,784    |  
|Note payable                                                                           |   | 329,815       |   |   | 329,815      |  
|Amounts due to related parties
      (Note 4)                                          |   | 160,672       |   |   | 47,551       |  
|Loan Payable
      (Note 4)                                                            |   | 251,769       |   |   | -            |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   | 2,634,260     |   |   | 3,396,150    |  
|                                                                                       |   |               |   |   |              |  
|Long-term                                                                              |   |               |   |   |              |  
|Deferred income taxes                                                                  |   | 38,679        |   |   | 59,159       |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   | 2,672,939     |   |   | 3,455,309    |  
|                                                                                       |   |               |   |   |              |  
|Commitments (Note 7)                                                                   |   |               |   |   |              |  
|                                                                                       |   |               |   |   |              |  
|Stockholders' equity                                                                   |   |               |   |   |              |  
|Common stock
      (Note 5)                                                            |   |               |   |   |              |  
|100,000,000 common
      shares authorized at $0.001 par value;                        |   |               |   |   |              |  
|21,202,375 common shares issued and outstanding (December 31, 2006 -
      20,718,375) |   | 21,203        |   |   | 20,719       |  
|Additional paid-in capital                                                             |   | 20,831,101    |   |   | 20,160,185   |  
|Shares to be
      issued                                                              |   | -             |   |   | -            |  
|Deficit prior to acquisition                                                           |   | -             |   |   | -            |  
|Deficit                                                                                |   | (19,079,563   | ) |   | (18,330,869  | )
|Accumulated other comprehensive
      loss                                             |   | (42,282       | ) |   | (59,530      | )
|                                                                                       |   |               |   |   |              |  
|                                                                                       |   | 1,730,459     |   |   | 1,790,505    |  
|                                                                                       |   |               |   |   |              |  
|                                                                                       | $ | 4,403,398     |   | $ | 5,245,814    |  

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

---

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

|                                                     |   | For the three months ended |   |   | For the nine months ended |  
|---------------------------------------------------- | - | -------------------------- | - | - | ------------------------- | -
|                                                     |   | September 30,              |   |   | September 30,             |  
|                                                     |   | 2007                       |   |   | 2006                      |  
|                                                     |   |                            |   |   |                           |  
|Sales                                                | $ | 1,134,885                  |   | $ | 751,223                   |  
|Cost of sales                                        |   | (860,732                   | ) |   | (647,792                  | )
|Gross profit                                         |   | 274,153                    |   |   | 103,431                   |  
|Operating expenses                                   |   |                            |   |   |                           |  
|Selling and promotion                                |   | (26,802                    | ) |   | (37,886                   | )
|General and administrative                           |   | (273,708                   | ) |   | (306,921                  | )
|Research and development                             |   | -                          |   |   | (40,384                   | )
|Depreciation                                         |   | (51,390                    | ) |   | (5,818                    | )
|Operating loss                                       |   | (77,747                    | ) |   | (287,578                  | )
|Other items                                          |   |                            |   |   |                           |  
|Stock-based compensation
      (Note 5)              |   | (66,400                    | ) |   | -                         |  
|Loss on write-off of equipment                       |   | -                          |   |   | -                         |  
|Other income                                         |   | 18,287                     |   |   | 30,645                    |  
|Gain on debt settlement                              |   | 75,000                     |   |   | -                         |  
|Net loss before income taxes                         |   | (50,860                    | ) |   | (256,933                  | )
|Income taxes                                         |   | (6,835                     | ) |   | 2,890                     |  
|Net loss for the period                              | $ | (57,695                    | ) | $ | (254,043                  | )
|Other comprehensive gain (loss)                      |   | 13,692                     |   |   | (2,568                    | )
|Comprehensive loss for the period                    | $ | (44,003                    | ) | $ | (256,611                  | )
|                                                     |   |                            |   |   |                           |  
|Loss per share - basic and diluted                   | $ | (0.00                      | ) | $ | (0.02                     | )
|                                                     |   |                            |   |   |                           |  
|Weighted average number of common shares outstanding |   | 20,370,853                 |   |   | 15,440,400                |  

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 nine months ended |  
|------------------------------------------------------------------------------ | - | ------------------------- | -
|                                                                               |   | September 30,             |  
|                                                                               |   | 2007                      |  
|                                                                               |   |                           |  
|                                                                               |   |                           |  
|Cash flows from operating activities                                           |   |                           |  
|Net loss for the
      period                                                  | $ | (748,694                  | )
|                                                                               |   |                           |  
|Items not involving
      cash:                                                |   |                           |  
|Depreciation and amortization                                                  |   | 155,774                   |  
|Stock-based
      compensation                                                 |   | 596,400                   |  
|Loss on write-off
      of equipment                                           |   | 10,059                    |  
|Gain
      on disposal of equipment                                            |   | -                         |  
|Gain on debt settlement                                                        |   | (75,000                   | )
|Deferred
      income taxes                                                    |   | (20,480                   | )
|Changes in non-cash working capital:                                           |   | -                         |  
|Receivables                                                                    |   | 775,018                   |  
|Accounts payable and
      accrued liabilities                                 |   | (976,780                  | )
|                                                                               |   |                           |  
|Net cash used in operations                                                    |   | (283,703                  | )
|                                                                               |   |                           |  
|                                                                               |   |                           |  
|Cash flows from investing activities                                           |   |                           |  
|Acquisition of equipment                                                       |   | (72,184                   | )
|Cash portion of
      Investment in BCH Beheer / Hallotel                      |   | -                         |  
|Cash of BCH Beheer / Hallotel on
      acquisition date                        |   | -                         |  
|                                                                               |   |                           |  
|Net cash used in investing activities                                          |   | (72,184                   | )
|                                                                               |   |                           |  
|                                                                               |   |                           |  
|Cash flows from financing activities                                           |   |                           |  
|Amounts due to / from related parties                                          |   | 113,121                   |  
|Proceeds of loan
      payable                                                 |   | 251,769                   |  
|Stock subscriptions received                                                   |   | -                         |  
|                                                                               |   |                           |  
|Net cash provided by financing activities                                      |   | 364,890                   |  
|                                                                               |   |                           |  
|                                                                               |   |                           |  
|Effect of exchange rate changes on cash
      and cash equivalents             |   | 17,248                    |  
|                                                                               |   |                           |  
|Increase (decrease) in cash and cash equivalents                               |   | 26,251                    |  
|                                                                               |   |                           |  
|Cash and cash equivalents, beginning of
      period                           |   | 233,452                   |  
|                                                                               |   |                           |  
|Cash and cash equivalents, end of period                                       | $ | 259,703                   |  
|                                                                               |   |                           |  
|                                                                               |   |                           |  
|Supplementary information                                                      |   |                           |  
|Interest paid                                                                  | $ | 2,999                     |  
|Taxes paid                                                                     | $ | 165                       |  
|                                                                               |   |                           |  
|Non cash transactions                                                          |   |                           |  
|Issuance of stock for settlement
      of debt; 500,000 shares of common stock | $ | 75,000                    |  

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

---

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

|                                                                       | Common
      Stock |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|---------------------------------------------------------------------- | ------------------ | - | - | ------ | - | - | --------------- |  | - | ----------- | - | - | ---------------- | -
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   | Accumlated other |  
|                                                                       |                    |   |   |        |   |   | Additional      |  |   |             |   |   | comprehensive    |  
|                                                                       | Shares             |   |   | Amount |   |   | Paid-in Capital |  |   | Deficit     |   |   | loss             |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Balance December 31, 2006                                              | 20,718,375         |   | $ | 20,719 |   | $ | 20,160,185      |  | $ | (18,330,869 | ) | $ | (59,530          | )
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Return and cancellation of common
      stock                          | (16,000            | ) |   | (16    | ) |   | 16              |  |   | -           |   |   | -                |  
|Net operating loss for the three months ended
      March 31, 2007     | -                  |   |   | -      |   |   | -               |  |   | (520,124    | ) |   | -                |  
|Foreign currency translation
      adjustment                          | -                  |   |   | -      |   |   | -               |  |   | -           |   |   | 2,057            |  
|Stock-based compensation                                               | -                  |   |   | -      |   |   | 463,600         |  |   | -           |   |   | -                |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Balance March 31, 2007                                                 | 20,702,375         |   |   | 20,703 |   |   | 20,623,801      |  |   | (18,850,993 | ) |   | (57,473          | )
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Net operating loss for the three months ended
      June 30, 2007      | -                  |   |   | -      |   |   | -               |  |   | (170,875    | ) |   | -                |  
|Foreign currency translation
      adjustment                          | -                  |   |   | -      |   |   | -               |  |   | -           |   |   | 1,499            |  
|Stock-based compensation                                               | -                  |   |   | -      |   |   | 66,400          |  |   | -           |   |   | -                |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Balance June 30, 2007                                                  | 20,702,375         |   |   | 20,703 |   |   | 20,690,201      |  |   | (19,021,868 | ) |   | (55,974          | )
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Issuance of common stock for debt settlement                           | 500,000            |   |   | 500    |   |   | 74,500          |  |   | -           |   |   | -                |  
|Net operating loss for the three
      months ended September 30, 2007 | -                  |   |   | -      |   |   | -               |  |   | (57,695     | ) |   | -                |  
|Foreign currency translation adjustment                                | -                  |   |   | -      |   |   | -               |  |   | -           |   |   | 13,692           |  
|Stock-based compensation                                               | -                  |   |   | -      |   |   | 66,400          |  |   | -           |   |   | -                |  
|                                                                       |                    |   |   |        |   |   |                 |  |   |             |   |   |                  |  
|Balance September 30, 2007                                             | 21,202,375         |   |   | 21,203 |   |   | 20,831,101      |  |   | (19,079,563 | ) |   | (42,282          | )

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

---

|ARVANA INC.                                       
|--------------------------------------------------
|NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
|Nine Months Ended September 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
nine-month period ended September 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 consolidated
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 September 30, 2007, the Company incurred a loss
from operations of $748,694. At September 30, 2007, the Company had a working
capital deficiency of $1,473,398. 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 nine months ended September 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
|Nine Months Ended September 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 the 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 yearsEquipment
    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
September 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
September 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
|Nine Months Ended September 30, 2007 and 2006     
|(expressed in US dollars)                         
|(Unaudited)                                       
|                                                  

3. Property and Equipment

| | At September 30,
      2007 |   |           |  |   |              |  |   |          | 
| | --------------------------- | - | --------- |  | - | ------------ |  | - | -------- | 
| |                             |   |           |  |   | Accumulated  |  |   | Net Book | 
| |                             |   | Cost      |  |   | Amortization |  |   | Value    | 
| |                             |   |           |  |   |              |  |   |          | 
| | Equipment                   | $ | 313,910   |  | $ | 150,924      |  | $ | 162,986  | 
| | Computer hardware           |   | 781,408   |  |   | 386,304      |  |   | 395,104  | 
| | Software                    |   | 113,168   |  |   | 34,221       |  |   | 78,947   | 
| |                             |   |           |  |   |              |  |   |          | 
| |                             | $ | 1,208,486 |  | $ | 571,449      |  | $ | 637,037  | 

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 September 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 August 14, 2007, the Company received an unsecured, 6%
interest per annum loan from a shareholder of the Company in the amount of
$1,900 CAD ($1,786 USD). Repayment of the loan is due on closing of any future
financing arrangement by the Company. Accrued interest of $14 has been recorded
in accounts payable and accrued liabilities for the nine-months ended September
30, 2007.

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
future financing arrangement by the Company. Accrued interest of $661 has been
recorded in accounts payable and accrued liabilities for the nine-months ended
September 30, 2007.

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 future financing arrangement by the Company. Accrued interest of
$7,355 has been recorded in accounts payable and accrued liabilities for the
nine-months ended September 30, 2007.

At September 30, 2007 Arvana Inc. had amounts due to related
parties in the amount of $160,672 (December 31, 2006 $47,551). This amount
includes $105,200 (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

---

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

4. Related Parties cont

interest and are unsecured. Interest totaling $8,030 has been
recorded in accounts payable and accrued liabilities for the three loans
described above.

For the nine-month period ended September 30, 2007, $26,707
(December 31, 2006 $NIL) was incurred in general and administrative expenses by
the Company for services rendered by the current Chief Financial Officer and
Corporate Secretary of the Company. At September 30, 2007, $20,000 (December 31,
2006 $17,200) was owed to the former Chief Financial Officer and Corporate
Secretary and $28,000 (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 September 30, 2007 (December 31, 2006 $6,364). The
amounts owing bear no interest and are unsecured.

5. Stockholders Equity

During the period ended September 30, 2007, 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 $596,400 in the nine months ended
September 30, 2007 for the pro-rated portion of the full charge.

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

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

---

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

5. Stockholders Equity cont

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, September 30, 2007             |  | 1,600,000        |  | $ | 1.25     | 
|                                        |  |                  |  |   |          | 
|Number of options currently exercisable |  | 533,333          |  | $ | 1.25     | 

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 during the quarter ended September
  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 has issued 500,000 common
  shares at a deemed price of $0.30 per share. These shares were issued during
  the quarter ended September 30, 2007.

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, $777
(December 31, 2006 $81,262) is located in Canada, $30,837 (December 31, 2006
$30,837) is located in Brazil and $605,423 (December 31, 2006 $618,587) is
located in Germany.

---

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

7. Commitments

The Company has the following commitments:

|                        |   | 2007   |  |   | 2008   |  |   | 2009   |  |   | 2010  | 
|----------------------- | - | ------ |  | - | ------ |  | - | ------ |  | - | ----- | 
|Software platform lease | € | 3,714  |  | € | 14,856 |  | € | 10,523 |  | € | -     | 
|Vehicle leases          |   | 8,160  |  |   | 32,640 |  |   | 27,410 |  |   | 4,860 | 
|Office lease            |   | 4,470  |  |   | 1,490  |  |   | -      |  |   | -     | 
|                        |   |        |  |   |        |  |   |        |  |   |       | 
|Total in euros          | € | 16,344 |  | € | 48,986 |  | € | 37,933 |  | € | 4,860 | 

---

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.

Management and the Board of Directors of Arvana are currently
in the process of evaluating the Hallotel business and the Companys future
business strategy and plan of operations. We are reviewing our continued
participation in the telecommunications industry and are looking at other
potential business opportunities. If a decision is made to change the nature of
the Companys business and operations it may involve a disposal of some of the
Companys assets, possible including one or more of its subsidiary companies.
The plan of operations presented herein is the Companys current business
strategy and does not include any changes that may occur as a result of the
evaluation.

---

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 was in the process of
producing calling cards to be distributed to a network of resellers in Austria
and Germany. After evaluation of the market opportunities available for calling
cards, Hallotel determined not to procedd with this business.

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 currently in the process of evaluating the

---

Hallotel business and the Companys future business strategy and plan of operations and are reviewing our continued participation in the telecommunications industry. The plan of operations presented herein is the Companys current business
strategy and does not include any changes that may occur as a result of the evaluation.

We anticipate that the current plan of operations will focus on expanding the 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 judgments, 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 September 30, 2007, was 1.8407, stated in the Brazilian Real per one US dollar. The average exchange rate during the nine-month period ended September 30, 2007, was 1.9217 stated in the Brazilian Real per one US
dollar. For the Euro, the exchange rate prevailing at September 30, 2007, was 1.4272 US per Euro. The average exchange rate during the nine-month period ended September 30, 2007, was 1.3445 US per Euro.

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 September 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 September 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. Our
results of operations presented below for periods prior to August 23, 2006,
including the nine months ended September 30, 2006, do not include the results
of operations of BCH Beheer and Hallotel.

Results of Operations

Our operations for the three months and nine months ended
September 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 quarters ended September 30, 2007
and 2006.

Three months ended
      September 30, 2007
    Three months ended
      September 30, 2006
    Nine months ended
      September 30, 2007
    Nine months ended
      September 30, 2006Revenues
    $1,134,885
    $751,223
    $4,051,626
    $751,223Costs of Sales
    $860,732
    $647,792
    $3,069,719
    $647,792Gross profit
    $274,153
    $103,431
    $981,907
    $103,431


---

Three months ended
      September 30, 2007
    Three months ended
      September 30, 2006
    Nine months ended
      September 30, 2007
    Nine months ended
      September 30, 2006Operating Expenses:Selling and promotion
    $26,802
    $37,886
    $61,282
    $37,886General and
      Administration
    $273,708
    $306,921
    $908,276
    $836,240Research and Development
    $0
    $40,384
    $0
    $117,886Depreciation
    $51,390
    $5,818
    $155,774
    $5,968Other Items:Stock Based
      Compensation
    $66,400
    $0
    $596,400
    $1,424,000Loss on write-off
      of equipment
    $0
    $0
    $10,059
    $0Other Income
    $(18,287)
    $(30,645)
    $(22,025)
    $(30,645)Gain on Debt
      Settlement
    $(75,000)
    $0
    $(75,000)
    $0Income taxes
    $6,834
    $(2,890)
    $95,835
    $(2,890)Other
      comprehensive (gains) losses
    $(13,692)
    $2,568
    $(17,248)
    $2,568Comprehensive Loss for the Period
    $44,002
    $256,611
    $731,446
    $2,287,582


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 acquisition of Hallotel took place in August 2006, consequently
the comparative figures only include the results of Hallotel since acquisition
and are of limited value for comparative purposes. The substantial majority of
the revenues generated to date are from the Hallotel long distance pre-select
and wholesale carrier business. Calling card revenues have been minimal and the
VoIP business did not commence until the second quarter of 2007.

Our revenues were $1,134,885 for the third quarter of 2007
compared to $751,223 for the third quarter of 2006, and $4,051,626 for the first
nine months of 2007 compared to $751,223 for the first nine months of 2006.

Cost of Sales

Our costs of sales are attributable to costs of sales incurred
by Hallotel in connection with providing its services. Our costs of sales were
$860,732 and 75.8% of revenues for the third quarter of 2007, compared to
$647,792 and 86.2% of revenues for the third quarter of 2006. For the first nine
months of 2007 our costs of sales were $3,069,719 and 75.8% of revenues,
compared to $647,792 and 86.2% of revenues.

Gross Profits

Our gross profits were $274,153 for the third quarter of 2007
and 24.2% of revenues, compared to $103,431 and 13.8 % of revenues for the third
quarter of 2006. For the first nine months of 2007 our gross profits were
$981,907 and 24.2% of revenues, compared to $103,431 and 13.8% of revenues for
the first nine months of 2006. All of our gross profits were attributable to our
Hallotel business.

Selling and Promotion Expenses

Selling 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 third quarter of 2007, research and development expenses were $NIL as compared to $40,384 for the third quarter of 2006. For the first nine months of 2007, research and development expenses were $NIL as compared to $117,886
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 third quarter of 2007 and $596,400 in the first nine months of 2007 for the pro-rated portion of the full charge.

Loss on the write-off of equipment

In the first nine 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. There were no equipment write-offs during the
third quarter of 2007 or 2006.

Net Loss for the Period

We incurred a net loss of $57,694 for the third quarter of 2007, including stock-based compensation expense of $66,400, compared to a net loss of $254,043 for the third quarter of 2006. The net loss for the first nine months of 2007 was
$748,694 compared with a net loss of $2,285,014 for the first nine months of 2006. A significant portion of the loss in the first nine months of 2007 was attributable to our increased stock-based compensation expense of $596,400.

Liquidity and Capital Resources

As at September 30, 2007, we had cash of $259,703 and a working capital deficit of $1,473,398. 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 $283,703 during the nine months ended September 30, 2007. Cash used from operations was primarily due to general and administrative costs associated with public company expenses.

Cash Used in Investing Activities

We used cash in investing activities in the amount of $72,184 during the nine months ended September 30, 2007. Of this amount, $4,116 was attributable to our purchase of software and $68,068 was attributable to the purchase of other
equipment.

---

Cash Flows from Financing Activities

We received $251,769 from the proceeds of three short-term loans during the nine months ended September 30, 2007. The loans are due to be repaid on the earlier of the closing of any financing completed by us. We also received $113,121 in
advances from related parties. The funds received from financing activities were used to fund general operating expenses and investing activities.

Amounts due to IP Horizon LLC

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 during the quarter ended September 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 has issued 500,000 common shares at a deemed price of $0.30 per share. These shares were issued during the quarter ended September 30, 2007.

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 during the quarter ended September 30, 2007 and the 500,000 debt settlement shares were issued during the quarter ended September 30, 2007.

Plan of Operations

Under our current 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. We anticipate that we will require a minimum of approximately $3,000,000 in additional financing to proceed with this 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 business opportunities 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.

If a decision is made to change the nature of the Companys business and operations it may involve an acquisition or other business expenditures. In this case, we anticipate that we will be required to seek additional financings in order to
fund the acquisition and/or operations of any business acquired. We do not have any financing arranged for any

---

business acquisitions and there is no assurance that we would be able to raise the required financing. If we are unable to raise the required financing, then we may not be able to complete any new business acquisitions or fund the operations of any
new business acquired.

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
September 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 September 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 nine months ended September 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.                                                                                                                                              

---

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 entered into a Regulation D Debt Conversion Agreement dated
effective March 28, 2007, a copy of which was filed with our current report on
Form 8-K filed with the SEC on May 4, 2007. Due to a delay in processing, the
original 1,500,000 shares were returned to treasury and cancelled during the
quarter ended September 30, 2007 and the 500,000 debt settlement shares were
issued during the quarter ended September 30, 2007. The shares were issued to
IPH Horizons LLC who represented to us that they are an accredited investor as
defined under Rule 501 of Regulation D of the Securities Act of 1933.

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 nine month period ended September 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.                                                                                

---

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: November 14, 2007

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

Date: November 14, 2007



---