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Note 1: Nature of Business and Ability To Continue As A Going Concern
3 Months Ended
Mar. 31, 2020
Disclosure Text Block [Abstract]  
Note 1. Nature of Business and Ability To Continue As A Going Concern

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. On July 24, 2006, the shareholders approved a change of the Company’s name from Turinco, Inc. to Arvana Inc. The reporting currency and functional currency of the Company is the United States dollar (“US Dollar”) and the accompanying financial statements have been expressed in US Dollars.

 

On March 17, 2016, the Company entered into a non-binding Memorandum of Understanding (“MOU”) with CaiE Food Partnership Ltd. (“CaiE”) for the purpose of acquiring CaiE as a wholly-owned subsidiary. CaiE is in the business of manufacturing and distributing fresh Dim Sum food products from a facility based in Sparks, Nevada. In the event that the Company does not complete the acquisition of CaiE, its intention will be to identify and evaluate alternative business opportunities that might be a good match for the Company.

 

These condensed interim financial statements have been prepared on a going concern basis, which assumes the realization of assets and the settlement of liabilities in the normal course of business.

 

For the three-month period ended March 31, 2020, the Company recognized net income of $22,456 as a result of a foreign exchange gain offset by general administrative expenses, professional fees and interest expenses. The Company had a working capital deficiency of $2,094,153 as of March 31, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The World Health Organization declared coronavirus COVID-19 a global pandemic in March 2020. COVID-19 is a contagious disease that continues to spread adversely affecting workforces, economies, and financial markets globally, which affects will likely result in an economic downturn. The Company cannot predict the duration or magnitude of the adverse results connected to COVID-19, nor can it predict the effect, if any, COVID-19 will have on the Company’s business or its ability to raise funds.

 

The Company will require continued financial support from shareholders and creditors until it is able to generate sufficient cash flow from operations. There is substantial doubt that the Company will be able to accomplish this objective.

 

Failure to obtain the ongoing support of shareholders and creditors may indicate that the preparation of these financial statements on a going concern basis is 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 liabilities that might arise from this uncertainty.