Nature of Business and Ability to Continue as a Going Concern

9 Months Ended

Sep. 30, 2011

Nature Of Business and Ability To Continue As Going Concern [Abstract]

Nature Of Business and Ability To Continue As Going Concern [Text Block]

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

Arvana Inc. (“our”, “we”, ”us” and 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. On September 30, 2010, the authorized capital stock was decreased to 5,000,000 common shares with a par value of $0.001.

In 1998, we completed a forward common stock split of eight shares for each outstanding share. In 2005, we completed another forward common stock split of nine shares for each outstanding share. On September 30, 2010, we completed a common stock reverse split of one share for each twenty shares outstanding. These consolidated financial statements have been prepared showing the after reverse stock split shares with a par value of $0.001.

These consolidated financial statements for the nine month period ended September 30, 2011 include the accounts of the Company and our subsidiary Arvana Networks (including its wholly-owned subsidiaries Arvana Par and Arvana Comunicações do Brasil S. A. (“Arvana Com”)). We have ceased all operations in our subsidiary companies and have written-off or disposed of all assets in the subsidiary companies.  Consequently they are now all considered to be inactive subsidiaries. As a result, we entered into a new development stage as of January 1, 2010.

Our reporting currency is the United States dollar (“US Dollar”) and the accompanying consolidated financial statements have been expressed in US Dollars.

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 nine month period ended September 30, 2011, we incurred a loss from operations of $229,254. At September 30, 2011, we had a working capital deficiency of $1,896,936. These conditions raise substantial doubt about our ability to continue as a going concern.

Accordingly, we will require continued financial support from our shareholders and creditors until we are able to generate sufficient cash flow from operations on a sustained basis. There is substantial doubt that we will be successful at achieving these results. Failure to obtain the ongoing support of our shareholders and creditors may make the going concern basis of accounting inappropriate, in which case our 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.