10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q /A

Amendment No. 1

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________.

Commission File Number 000-29461

SEAFARER EXPLORATION CORP.

(Exact name of registrant as specified in its charter)

Florida	90-0473054
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

14497 N. Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618 (Address of principal executive offices)(Zip code)

(813) 448-3577 Registrant’s telephone number

1

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   þ   No   o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   þ   No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes   o No  þ

As of November 13, 2014, there were 945,685,887 shares of the registrant’s common stock, $.0001 par value per share, outstanding.

2

EXPLANATORY NOTE

The purpose of this amendment on Form 10-Q/A to Seafarer Exploration Corp's Quarterly Report on Form 10-Q for the period ended September 30, 2014, filed with the Securities and Exchange Commission on November 14, 2014 is solely to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

3

Item 6. Exhibits

Set forth below is a list of the exhibits to this quarterly report on Form 10-Q.

Exhibit Number	Description
** 31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities and  Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
** 32.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities and  Exchange Act of 1934, as amended, and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002.
** 99.1	Temporary Hardship Exemption
* 101.INS	XBRL Instance Document
* 101.SCH	XBRL Taxonomy Extension Schema
* 101.CAL	XBRL Taxonomy Extension Calculation Linkbase
* 101.DEF	XBRL Taxonomy Extension Definition Linkbase
* 101.LAB	XBRL Taxonomy Extension Label Linkbase
* 101.PRE	XBRL Extension Presentation Linkbase

* Furnished herewith.

** Previously filed.

4

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Seafarer Exploration Corp.
Date: November 19 , 2014	By:	/s/ Kyle Kennedy
		Kyle Kennedy President, Chief Executive Officer, and Chairman of the Board (Principal Executive Officer and Principal Accounting Officer)

Date: November 19 , 2014	By:	/s/ Charles Branscum
		Charles Branscum, Director

Date: November 19 , 2014	By:	/s/ Robert L. Kennedy
		Robert L. Kennedy, Director

5

XML

DIVISION OF ARTIFACTS AND TREASURE (Details Narrative)	Jun. 08, 2010
Research and Development [Abstract]
Assumption of FLDHR's portion of artifacts or treasure recovered from the Juno Beach Shipwreck	20.00%
FLDHR's percentage under the Exploration Agreement	20.00%
Tulco's percentage under the Exploration Agreement	40.00%
The Company's percentage under the Exploration Agreement	40.00%
FLDHR's rights to total value of recovered artifacts and treasre for museum collection, maximum	20.00%

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Convertible Notes Payable (Details) (USD $)	3 Months Ended
	Sep. 30, 2014
Convertible notes payable	$ 90,000
Convertible notes payable, Interest rate	6.00%
Convertible notes payable, Unamortized discount
Convertible notes payable, Total	90,000
Convertible notes payable, in default, Total	256,305
Convertible notes payable - related parties, in default, Total	122,500
Convertible notes payable - related party, Unamortized discount	(10,791)
Convertible notes payable - related parties, Total	18,214
Notes Issued Oct 30, 2013
Convertible notes payable, Maturity date	Oct. 30, 2014
Convertible notes payable	50,000
Convertible notes payable, Interest rate	6.00%
Convertible notes payable, Conversion rate	$ 0.0125
Notes Issued March 11, 2014
Convertible notes payable, in default, Maturity date	2014-09-11
Convertible notes payable, in default	5,005
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0070
Notes Issued May 15, 2014
Convertible notes payable, Maturity date	Nov. 15, 2014
Convertible notes payable	40,000
Convertible notes payable, Interest rate	6.00%
Convertible notes payable, Conversion rate	$ 0.0070
Notes Issued Oct 31, 2012
Convertible notes payable, in default, Maturity date	2013-04-30
Convertible notes payable, in default	8,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0040
Notes Issued Jul 16, 2012
Convertible notes payable, in default, Maturity date	2013-07-30
Convertible notes payable, in default	5,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0050
Notes Issued Nov 20, 2012
Convertible notes payable, in default, Maturity date	2013-05-20
Convertible notes payable, in default	50,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0050
Notes Issued Jan 19, 2013
Convertible notes payable, in default, Maturity date	2013-07-30
Convertible notes payable, in default	5,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0040
Convertible notes payable - related parties, in default, Maturity date	Jul. 30, 2013
Convertible notes payable - related parties, in default	15,000
Convertible notes payable - related parties, in default, Interest rate	6.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0040
Notes Issued Feb 11, 2013
Convertible notes payable, in default, Maturity date	2013-08-11
Convertible notes payable, in default	9,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0060
Notes Issued Sep 25, 2013
Convertible notes payable, in default, Maturity date	2014-03-25
Convertible notes payable, in default	10,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0125
Notes Issued Aug 28, 2009
Convertible notes payable, in default, Maturity date	2009-11-01
Convertible notes payable, in default	4,300
Convertible notes payable, in default, Interest rate	10.00%
Convertible notes payable, in default, Conversion rate	$ 0.0150
Notes Issued Apr 7, 2010
Convertible notes payable, in default, Maturity date	2010-11-07
Convertible notes payable, in default	70,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0080
Notes Issued Nov 12, 2010
Convertible notes payable, in default, Maturity date	2011-11-07
Convertible notes payable, in default	40,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0050
Notes Issued Oct 4, 2013
Convertible notes payable, in default, Maturity date	2014-04-04
Convertible notes payable, in default	50,000
Convertible notes payable, in default, Interest rate	6.00%
Convertible notes payable, in default, Conversion rate	$ 0.0125
Notes Issued Jan 9, 2009
Convertible notes payable - related parties, in default, Maturity date	Jan. 09, 2010
Convertible notes payable - related parties, in default	10,000
Convertible notes payable - related parties, in default, Interest rate	10.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0150
Notes Issued Jan 25, 2010
Convertible notes payable - related parties, in default, Maturity date	Jan. 25, 2011
Convertible notes payable - related parties, in default	6,000
Convertible notes payable - related parties, in default, Interest rate	6.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0050
Notes Issued Jan 18, 2012
Convertible notes payable - related parties, in default, Maturity date	Jul. 18, 2012
Convertible notes payable - related parties, in default	50,000
Convertible notes payable - related parties, in default, Interest rate	8.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0040
Notes Issued Jul 21, 2014
Convertible notes payable - related party, Maturity date	Jan. 25, 2015
Convertible notes payable - related party	17,000
Convertible notes payable - related parties, Interest rate	6.00%
Convertible notes payable - related parties, Conversion rate	$ 0.0080
Notes Issued Jul 26, 2013
Convertible notes payable - related parties, in default, Maturity date	Jan. 26, 2014
Convertible notes payable - related parties, in default	10,000
Convertible notes payable - related parties, in default, Interest rate	6.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0100
Notes Issued Jan 17, 2014
Convertible notes payable - related parties, in default, Maturity date	Jul. 17, 2014
Convertible notes payable - related parties, in default	31,500
Convertible notes payable - related parties, in default, Interest rate	6.00%
Convertible notes payable - related parties, in default, Conversion rate	$ 0.0060
Notes Issued Apr 22, 2014
Convertible notes payable - related party, Maturity date	Oct. 22, 2014
Convertible notes payable - related party	5,005
Convertible notes payable - related parties, Interest rate	6.00%
Convertible notes payable - related parties, Conversion rate	$ 0.0070
Notes Issued May 27, 2014
Convertible notes payable - related party, Maturity date	Nov. 27, 2014
Convertible notes payable - related party	$ 7,000
Convertible notes payable - related parties, Interest rate	6.00%
Convertible notes payable - related parties, Conversion rate	$ 0.0070

XML

GOING CONCERN (Details Narrative) (USD $)	91 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net losses incurred since inception	$ 9,596,237

XML

SUBSEQUENT EVENTS (Details Narrative) (USD $)	Oct. 27, 2014
Subsequent Events [Abstract]
Leased home, annual rent	$ 26,400
Leased home, monthly payments	$ 2,200
Shares authorized, pre amendment	950,000,000
Shares authorized, post amendment	1,200,000,000

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
Total convertible notes issued		$ 290,500
Convertible notes payable, Interest rate	6.00%	6.00%
Interest expense related to the amortization of debt discounts	25,231	97,844
Accrued interest included in accounts payable and accrued liabilities	79,880	79,880	59,267
Convertible notes payable, fair value	544,820	544,820
Notes Issued Sep 8, 2014
Convertible notes payable total	53,500	53,500
Convertible notes payable, Interest rate	12.00%	12.00%
Convertible notes payable, Maturity date	Sep. 08, 2015
Loss on derivative financial instrument	42,080	42,080
Convertible notes payable, fair value	82,141	82,141
Notes Issued Aug 21, 2014
Convertible notes payable total	40,000	40,000
Convertible notes payable, Interest rate	8.00%	8.00%
Convertible notes payable, Maturity date	Aug. 21, 2015
Loss on derivative financial instrument	33,372	33,372
Convertible notes payable, fair value	122,330	122,330
Notes Issued Jan 16, 2014
Convertible notes payable total	50,000	50,000
Convertible notes payable, Interest rate	6.00%	6.00%
Convertible notes payable, Maturity date	Jul. 16, 2014
Loss on derivative financial instrument	51,431	51,431
Notes Issued Mar 17, 2014
Convertible notes payable total	40,000	40,000
Convertible notes payable, Interest rate	8.00%	8.00%
Convertible notes payable, Maturity date	Mar. 17, 2015
Loss on derivative financial instrument	31,321	31,321
Convertible notes payable, fair value	96,798	96,798
Notes Issued Apr 24, 2014
Convertible notes payable total	107,000	107,000
Convertible notes payable, Interest rate	12.00%	12.00%
Convertible notes payable, Maturity date	Apr. 24, 2015
Loss on derivative financial instrument	166,771	166,771
Convertible notes payable, fair value	$ 243,551	$ 243,551

XML

LOSS PER SHARE

9 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

LOSS PER SHARE

NOTE 4 - LOSS PER SHARE

Components of loss per share for the three months ended September 30, 2014 and 2013 are as follows:

	For the Three Months Ended September 30, 2014			For the Three Months Ended September 30, 2013
Net loss attributable to common stockholders	$	(529,724	)	$	(605,567	)
Weighted average shares outstanding:
Basic and diluted		919,710,681			811,905,248
Loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)

Components of loss per share for the nine months ended September 30, 2014 and 2013 are as follows:

	For the Nine Months Ended September 30, 2014			For the Nine Months Ended September 30, 2013
Net loss attributable to common stockholders	$	(1,572,977	)	$	(1,767,192	)
Weighted average shares outstanding:
Basic and diluted		890,886,099			779,676,653
Loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)

XML

CAPITAL STOCK (Details Narrative) (USD $)	3 Months Ended
	Sep. 30, 2014	Aug. 14, 2014	Feb. 10, 2014	Dec. 31, 2013	Mar. 30, 2011
Accounting Policies [Abstract]
Common stock, shares authorized	950,000,000		50,000,000	950,000,000
Common stock, par value	$ 0.0001			$ 0.0001
Common stock, Issued		905,098,892
Common stock, Outstanding		905,098,892
Authorized preferred shares	50,000,000			50,000,000
Voting power total			60.00%
Liquidation preference					$ 1
Shares of common stock from the conversion of each share of preferred stock	214,286
Share of any artifacts found at the Church Hollow Site	0.01

XML

LOSS PER SHARE - Components of loss per share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]
Net loss attributable to common stockholders	$ (529,724)	$ (605,567)	$ (1,572,977)	$ (1,767,192)
Weighted average shares outstanding:
Basic and diluted	919,710,681	811,905,248	890,886,099	779,676,653
Loss per share:
Basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00

XML

INCOME TAXES - Schedule of Effective Income Tax Rate (Details)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Income tax at federal statutory rate	(34.00%)	(34.00%)
State tax, net of federal effect	(3.96%)	(3.96%)
Income taxes	37.96%	37.96%
Valuation allowance	(37.96%)	(37.96%)
Effective rate	0.00%	0.00%

XML

INCOME TAXES (Details Narrative) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Net tax operating loss	$ 9,596,237	$ 8,023,260

XML

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of Seafarer Exploration Corp. is presented to assist in understanding the Company’s condensed financial statements.  The condensed financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the condensed financial statements.

Principles of Consolidation

The Company and its subsidiary have been consolidated for financial statement purposes.  All significant intercompany transactions and balances have been eliminated.

Accounting Method

The Company’s condensed financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents.

Revenue Recognition

The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended September 30, 2014 and 2013, and for the period from inception to September 30, 2014, the Company did not report any revenues.

Earnings Per Share

The Company has adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 which provides for calculation of "basic" and "diluted" earnings per share.  Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.  Basic and diluted losses per share were the same at the reporting dates as there were no common stock equivalents outstanding at September 30, 2014 and 2013.

Fair Value of Financial Instruments

The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities.  Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.  The three levels are defined as follows:

● Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities.

● Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.

● Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate of what market participants would use as fair value.

The following table presents certain investments and liabilities of the Company’s financial assets measured and recorded at fair value in the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy as of September 30, 2014:

	Level 1		Level 2		Level 3		Total
Fair value of derivative liability	$	-	$	-	$	544,820	$	544,820

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.  The valuation of our derivative liability is determined using Level 3 inputs, which consider (i) time value, (ii) current market and (iii) contractual prices. 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2014 and December 31, 2013.    These financial instruments include cash, notes receivable, accounts payable and accrued expenses. The fair value of the Company’s debt instruments is estimated based on current rates that would be available for debt of similar terms, which is not significantly different from its stated value, except for the convertible note payable, at fair value, which has been revalued based on current market rates using Level 3 inputs. 

Fixed Assets and Depreciation

Fixed assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Currently the Company’s only assets are a diving vessel, which was purchased for $325,000 during 2008 and is being depreciated over a 10 year useful life and a generator, which was purchase for $7,450 during 2013 and is being depreciated over a 5 year useful life.

Impairment of Long-Lived Assets

In accordance with ASC 360-10, the Company, on a regular basis, reviews the carrying amount of long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. The Company determines if the carrying amount of a long-lived asset is impaired based on anticipated undiscounted cash flows, before interest, from the use of the asset. In the event of impairment, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the asset. Fair value is determined based on appraised value of the assets or the anticipated cash flows from the use of the asset, discounted at a rate commensurate with the risk involved. There were no impairment charges recorded during the periods ended September 30, 2014 and 2013.

Employee Stock Based Compensation

The FASB issued SFAS No.123 (revised 2004), Share-Based Payment , which was superseded by ASC 718-10. ASC 718-10 provides investors and other users of financial statements with more complete and neutral financial information, by requiring that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. SFAS 123(R) covers a wide range of share-based compensation arrangements, including share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As of September 30, 2014, the Company has not implemented an employee stock based compensation plan.

Non-Employee Stock Based Compensation

The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in EITF 96-18,  Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services , which was superseded by ASC 505-50.  The Company issues compensatory shares for services including, but not limited to, executive, advisory, accounting, archeological, operations, strategic planning, corporate communications, financial, legal and administrative consulting services.  

Use of Estimates

The process of preparing condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.  Such estimates primarily relate to unsettled transactions and events as of the date of the condensed financial statements.  Accordingly, upon settlement, actual results may differ from estimated amounts.

Convertible Notes Payable

The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. ASC 815 provides for an exception to this rule when convertible notes, as host instruments, are deemed to be conventional, as defined by ASC 815-40.

The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, in accordance with the provisions of ASC 470-20, which provides guidance on accounting for convertible securities with beneficial conversion features. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.  

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.  Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. 

Convertible Notes Payable at Fair Value

The   Company   elected   to   account   for   this   hybrid   contract   under   the   guidance   of   ASC   815-15-25-4.  This guidance allows an entity that initially recognizes a hybrid financial instrument that under paragraph  815-15-25-1 would be required to be separated into a host contract and a derivative instrument may irrevocably elect to initially and subsequently measure that hybrid financial instrument in its entirety at fair value (with changes in fair value recognized in earnings).

The fair value election is also available when a previously recognized financial instrument subject to a re-measurement event and the separate recognition of an embedded derivative. The fair value election may be made instrument by instrument. For purposes of this paragraph, a re-measurement event (new basis event) is an event identified in generally accepted accounting principles, other than the recognition of an other-than-temporary impairment, that requires a financial instrument to be re-measured to its fair value at the time of the event but does not require that instrument to be reported at fair value on a continuous basis with the change in fair value recognized in earnings. Examples of re-measurement events are business combinations and significant modifications of debt as defined in Subtopic 470-50.

Recent Accounting Pronouncements

In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-04.  This update clarifies how entities measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date.  This guidance is effective for fiscal years beginning after December 15, 2013 and interim reporting periods thereafter.   This update is not expected to have an impact on the Company’s financial position or results of operations.

In April 2013, the FASB issued ASU 2013-07 to clarify when it is appropriate to apply the liquidation basis of accounting.  Additionally, the update provides guidance for recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting.  Under the amendment, entities are required to prepare their financial statements under the liquidation basis of accounting when a liquidation becomes imminent.  This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods thereafter.  This update is not expected to have an impact on the Company’s financial position or results of operations.

In July 2013, the FASB issued ASU 2013-11 which provides guidance relating to the financial statement presentation of unrecognized tax benefits. The update provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carry forward, a similar tax loss or a tax credit carry forward, if such settlement is required or expected in the event the uncertain tax position is disallowed.  This update does not require any new recurring disclosures and is effective for public entities for fiscal years beginning after December 15, 2013, and interim reporting periods thereafter.  This update is not expected to have an impact on the Company’s financial position or results of operations.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

XML

LEASE OBLIGATION (Details Narrative) (USD $)	Jul. 02, 2013
Accounting Policies [Abstract]
Base monthly rent	$ 1,200

XML

LEGAL PROCEEDINGS (Details Narrative) (USD $)	Nov. 01, 2011	Apr. 05, 2011	Feb. 24, 2011	Dec. 11, 2009	Oct. 08, 2008
Commitments and Contingencies Disclosure [Abstract]
Amount loss of the lawsuit				$ 1,041,000
Shares of stock gifted and kept by Eldred	34,700,000
Actual damages sought after by the plaintiff				15,000,000
Shares issued to counsel for Seafarer	1,000,000
Claims owed by the Company to the limited liability company			12,064
Compensatory damages		5,080,000
Damages sought for negligence in use or maintenance of a vessel		$ 15,000
Shares gifted by Micah Eldred					34,700,000
Shares kept by Eldred					4,140,000

XML

Condensed Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$ 41,350	$ 578
Prepaid expenses	13,377	26,824
Advances to shareholder		3,267
Deposits and other receivables	1,183	1,183
Total current assets	55,910	31,852
Property and equipment, net	104,751	130,239
Investment in common stock		1,100
Total Assets	160,661	163,191
Current liabilities:
Accounts payable and accrued expense	176,367	142,583
Convertible notes payable, net of discounts of $0 and $120,533	90,000	139,457
Convertible notes payable, related parties, net of discounts of $10,791 and $26,889	18,214	24,111
Convertible notes payable, in default	256,305	191,300
Convertible notes payable, in default - related parties	122,500	113,500
Convertible notes payable, at fair value	544,820
Notes payable, in default	30,000	30,000
Notes payable, in default - related parties	7,500	7,500
Total current liabilities	1,245,706	648,451
Stockholders' deficit:
Preferred stock, $0.0001 par value - 50,000,000 shares authorized; 7 shares issued and outstanding at September 30, 2014 and December 31,2013
Common stock, $0.0001 par value - 950,000,000 shares authorized; 927,130,599 and 844,216,349 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	92,713	84,422
Additional paid-in capital	8,418,479	7,453,578
Accumulated deficit during development stage	(9,596,237)	(8,023,260)
Total stockholders' deficit	(1,085,045)	(485,260)
Total liabilities and stockholders' deficit	$ 160,661	$ 163,191

XML

DESCRIPTION OF BUSINESS

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS

NOTE 1 – DESCRIPTION OF BUSINESS

Seafarer Exploration Corp. (the “Company”), formerly Organetix, Inc. (“Organetix”), was incorporated on May 28, 2003 in the State of Delaware.

The principal business of the Company is to develop the infrastructure necessary to engage in the archaeologically-sensitive exploration and recovery of historic shipwrecks. During 2008, the Company changed its fiscal year end from April 30 to December 31.

The Company is in the development stage and its activities during the development stage include developing a business plan and raising capital.

In June of 2008, the Company merged with Organetix pursuant to a Share Exchange Agreement (the “Exchange Agreement”). The Exchange Agreement provided for the exchange of all of the Company’s common shares for 131,243,235 of Organetix post-merger common shares. Considering that Seafarer Inc.’s former stockholders controlled the majority of Organetix’s outstanding voting common stock, Seafarer Inc.’s management had actual operational control of Organetix and Organetix effectively succeeded its otherwise minimal operations to the Company’s operations.  The Company was considered the accounting acquirer in this reverse-merger transaction. A reverse-merger transaction with a non-operating public shell company is considered and accounted for as a capital transaction in substance; it is equivalent to the issuance of Seafarer Inc.’s common stock for the net monetary assets of Organetix, accompanied by a recapitalization. Accordingly, the accounting does not contemplate the recognition of unrecorded assets of the accounting acquiree, such as goodwill. On the date of the merger, Organetix was a blank-check public shell company and had no assets and no liabilities.  The condensed financial statements presented herein and subsequent to the merger reflect the condensed financial assets and liabilities and operations of Seafarer Inc., at their historical costs, giving effect to the recapitalization, as if it had been Organetix during the periods presented.

In July of 2008, the Company changed its name from Organetix, Inc. to Seafarer Exploration Corp.

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Notes Payable (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Notes payable, in default, Total	$ 30,000	$ 30,000
TOTAL NOTES PAYABLE	37,500	37,500
Notes Issued Feb 24, 2010
Notes payable, in default –related parties, Maturity date	Feb. 24, 2011
Notes payable, in default –related parties	7,500	7,500
Notes payable, in default –related parties, Interest rate	6.00%	6.00%
Notes Issued Jun 23, 2011
Notes payable, in default, Maturity date	2011-08-03
Notes payable, in default	25,000	25,000
Notes payable, in default, Interest rate	6.00%	6.00%
Notes Issued Apr 27, 2011
Notes payable, in default, Maturity date	2012-04-27
Notes payable, in default	$ 5,000	$ 5,000
Notes payable, in default, Interest rate	6.00%	6.00%

XML

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate

	For the Nine Months Ended September 30, 2014			For the Nine Months Ended September 30, 2013
Income tax at federal statutory rate		(34.00	)%		(34.00	)%
State tax, net of federal effect		(3.96	)%		(3.96	)%
		37.96	%		37.96	%
Valuation allowance		(37.96	)%		(37.96	)%
Effective rate		0.00	%		0.00	%

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Summary of effect on earnings (Details) (USD $)	3 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]
Face value of the convertible notes payable	$ 240,500
Interest expense to record the convertible notes at fair value on the date of issuance	242,223
Interest expense to mark to market the convertible notes on September 30, 2014	62,097
September 30, 2014 fair value	$ 544,820

XML

DESCRIPTION OF BUSINESS (Details Narrative)	1 Months Ended
	Jun. 30, 2008
Description Of Business Details Narrative
Shares of Organetix Common Stock exchanged post-merger	131,243,235

XML

GOING CONCERN

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 2 - GOING CONCERN

These condensed financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As shown in the accompanying condensed financial statements, the Company has incurred net losses of $9,596,237 since inception. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from November 14, 2014. Management's plans include raising capital through the equity markets to fund operations and eventually, the generating of revenue through its business. The Company does not expect to generate any revenues for the foreseeable future.

Failure to raise adequate capital and generate adequate revenues could result in the Company having to curtail or cease operations. The Company’s ability to raise additional capital through the future issuances of the common stock is unknown. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company's ability to continue as a going concern; however, the accompanying condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

These condensed financial statements do not include any adjustments relating to the recovery of the recorded assets or the classifications of the liabilities that might be necessary should the Company be unable to continue as a going concern.

XML

Condensed Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Discounts on convertible notes payable	$ 0	$ 120,533
Discounts on convertible notes payable, related parties	$ 10,791	$ 26,889
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	7	7
Preferred Stock, shares outstanding	7	7
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	950,000,000	950,000,000
Common stock, shares issued	927,130,599	844,216,349
Common Stock, shares outstanding	927,130,599	844,216,349

XML

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTY TRANSACTIONS

During the three month period ended September 30, 2014:

In July of 2014, the Company entered into a convertible promissory note agreement in the amount of $17,000 with an individual who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principle and accrued interest are due on or before January 25, 2015. The note is not secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.008 per share. 

On various dates a related party investor converted the principal balances totaling $40,000 plus the accrued interest of two convertible promissory notes into 5,125,000 shares of the Company’s common stock.

In August of 2014, a related party investor converted the accrued interest of $10,000 of a convertible promissory note into 2,500,000 shares of the Company’s common stock.

In September of 2014, the Company’s CEO provided an interest free loan to the Company in the amount of $1,500. The entire loan balance was repaid prior to September 30, 2014 and no interest or fees of any kind were paid to the CEO for providing the loan.

Additional information:

In February of 2014, the Company entered into an agreement with an individual who is related to the Company’s CEO to continue serving as a member of the Company’s Board of Directors. Under the  agreement, the Director agreed to provide various services to the Company including making recommendations for both the short term and the long term business strategies to be employed by the Company, monitoring and assessing the Company's business and to advise the Company’s Board of Directors with respect to an appropriate business strategy on an ongoing basis, commenting on proposed corporate decisions and identifying and evaluating alternative courses of action, making suggestions to strengthen the Company's operations, identifying and evaluating external threats and opportunities to the Company, evaluating and making ongoing recommendations to the Board with respect for one year and may be terminated by either the Company or the Director by providing written notice to the other party. The agreement also terminates automatically upon the death, resignation or removal of the Director.  Under the terms of the agreement, the Company agreed to pay the Director 2,000,000 restricted shares of its common stock at the execution of the agreement and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. The 2,000,000 shares are included as an expense in consulting and contractor fees in the accompanying income statements.

The Company has an ongoing verbal agreement with a limited liability company that is controlled by a person who is related to the Company’s CEO to pay the related party consultant $3,000 per month to provide general business consulting, industry research, monitoring and assessing the Company's business and to advise management with respect to an appropriate business strategy on an ongoing basis, commenting on proposed corporate decisions and identifying and evaluating alternative courses of action, perform background research including background checks and provide investigative information on individuals and companies and acting as an administrative specialist to perform various administrative duties and clerical services including reviewing the Company’s agreements and books and records. The consultant provides the services under the direction and supervision of the Company’s CEO. All fees paid to the related party consultant during the period ended September 30, 2014 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

The Company has an ongoing agreement with a limited liability company that is owned and controlled by a person who is related to the Company’s CEO to provide stock transfer agency services. At September 30, 2014, the Company owed the related party limited liability company $9,099 for transfer agency services rendered and for the reimbursement of legal fees. In January 2014 the Company entered into a separate debt settlement agreement with the related party vendor to settle a total of $7,683 of outstanding debt related to legal fees incurred by the related party vendor due to a lawsuit against the Company in which suit the related party vendor was also named as a defendant due to its position as the Company’s stock transfer agency. The Company issued 768,293 shares of its common stock to this vendor as satisfaction for the outstanding debt. The agreement between the Company and the vendor stipulated that should the transfer agency realize less than $7,683 from the sale of the stock, then the consultant is entitled to receive up to an additional 700,000 shares of common stock or a cash payment until the balance is paid in full. In March of 2014 the related party limited liability company also agreed to provide various corporate consulting, strategic planning and training under a separate consulting agreement and the Company agreed to pay 500,000 shares of its restricted common stock under the consulting agreement.

At September 30, 2014 the following promissory notes and shareholder loans were outstanding to related parties:

A convertible note payable dated January 9, 2009 due to a person related to the Company’s CEO with a face amount of $10,000. This note bears interest at a rate of 10% per annum with interest payments to be paid monthly and is convertible at the note holder’s option into the Company’s common stock at $0.015 per share.  The convertible note payable was due on or before January 9, 2010 and is secured.  This convertible note payable is currently in default due to non-payment of principal and interest.

A convertible note payable dated January 25, 2010 in the principal amount of $6,000 with a person who is related to the Company’s CEO. This loan pays interest at a rate of 6% per annum and the principle and accrued interest are due on or before January 25, 2011. The note is not secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.005 per share. This loan is currently in default due to non-payment of principal and interest.

A note payable dated February 24, 2010 in the principal amount of $7,500 with a corporation. The Company’s CEO is a director of the corporation and a former Director of the Company is an officer of the corporation. The loan is not secured and pays interest at a rate of 6% per annum and the principle and accrued interest were due on or before February 24, 2011. This loan is currently in default due to non-payment of principal and interest.

A convertible note payable dated January 18, 2012 in the amount of $50,000 with two individuals who are related to the Company’s CEO. This loan pays interest at a rate of 8% per annum and the principle and accrued interest were due on or before July 18, 2012. The note is secured and is convertible at the lender’s option into shares of the Company’s common stock at a rate of $0.004 per share. The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated January 19, 2013 due to a person related to the Company’s CEO with a face amount of $15,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.004 per share.  The convertible note payable is due on or before July 30, 2013 and is not secured.  The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated July 26, 2013 due to a person related to the Company’s CEO with a face amount of $10,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.01 per share.  The convertible note payable is due on or before January 26, 2014 and is not secured.  The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated January 17, 2014 due to a person related to the Company’s CEO with a face amount of $31,500. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.006 per share.  The convertible note payable is due on or before July 17, 2014 and is not secured. The note is currently in default due to non-payment of principal and interest.

A convertible note payable dated April 22, 2014 due to a person related to the Company’s CEO with a face amount of $5,005. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.007 per share.  The convertible note payable is due on or before October 22, 2014 and is not secured. 

A convertible note payable dated May 27, 2014 due to a person related to the Company’s CEO with a face amount of $7,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.007 per share.  The convertible note payable is due on or before November 27, 2014 and is not secured. 

A convertible note payable dated July 21, 2014 due to a person related to the Company’s CEO with a face amount of $17,000. This note bears interest at a rate of 6% per annum with accrued interest to be paid at the time that the principal balance is repaid or the note is converted into shares of the Company’s common stock. The note is convertible at the note holder’s option into the Company’s common stock at $0.008 per share.  The convertible note payable is due on or before January 26, 2014 and is not secured.  The note is currently in default due to non-payment of principal and interest.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 13, 2014
Document And Entity Information
Entity Registrant Name	SEAFARER EXPLORATION CORP
Entity Central Index Key	0001106213
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		945,685,887
Amendment Description	The purpose of this amendment on form 10-Q to Seafarer Exploration Corp's Quarterly Report for the period ended September 30, 2014, filed with the Securities and Exchange Commission on November 14, 2014 is solely to furnish Exhibit 101 to the Form 10-Q in accordance with rule 405 of Regulation S-T. No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

XML

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 13 – SUBSEQUENT EVENTS

In October 2014 the Company leased a house in Merritt Island, Florida for use by certain of its independent contract divers and other operations personnel and members of management as a place to stay while working on the Company’s site in Brevard County, Florida and as a location to store some of the Company’s gear and equipment. The total annual rent for the house is $26,400 to be paid in monthly payments of $2,200 each payable on the first calendar day of each month.

On October 27, 2014 the Board of Directors, pursuant to Section 607.0704, Florida Statutes, the Board of Directors, acting as shareholders of the Preferred Shares and pursuant to their own resolution, voted to increase the authorized shares of the Corporation from 950,000,000 common shares to 1,200,000,000 common shares. Such filing became official with the State of Florida and effective such date.

XML

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		91 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Income Statement [Abstract]
Revenue
Expenses:
Consulting and contractor expenses	199,480	413,802	568,343	1,066,617	4,969,097
Professional fees	43,517	47,398	118,864	232,142	903,790
General and administrative expenses	13,134	27,144	34,214	57,147	428,126
Depreciation expense	8,496	8,496	25,488	25,488	227,670
Rent expense	6,418	3,325	15,558	30,389	169,659
Vessel expenses	30,428	28,067	72,197	110,746	569,832
Travel and entertainment	46,332	29,270	112,788	81,454	435,204
Other operating expenses					13,185
Total operating expenses	347,805	557,502	947,452	1,603,983	7,716,563
Income from operations	(347,805)	(557,502)	(947,452)	(1,603,983)	(7,716,563)
Other income (expense)
Interest expense	(180,819)	(67,157)	(624,425)	(224,463)	(1,660,136)
Interest income		19,092		99,701	243,922
Loss on impairment	(1,100)		(1,100)		(43,900)
Loss on extinguishment of debt				(38,447)	(419,560)
Total other income (expense)	(181,919)	(48,065)	(625,525)	(163,209)	(1,879,674)
Net loss	$ (529,724)	$ (605,567)	$ (1,572,977)	$ (1,767,192)	$ (9,596,237)
Net loss per share - basic and diluted
Weighted average common shares outstanding - basic and diluted	919,710,681	811,905,248	890,886,099	779,676,653

XML

LEASE OBLIGATION

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

LEASE OBLIGATION

NOTE 7 - LEASE OBLIGATION

Office

The Company leases 823 square feet of office space located at 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618.  The Company entered into an amended lease agreement on July 1, 2013 for its current location. Under the terms of the amended lease agreement, the lease term has been extended to June 30, 2015, with a base monthly rent of $1,200 from July 1, 2013 to June 30, 2014 and a base monthly rent of $1,235 from July 1, 2014 through June 30, 2015. There may be additional monthly charges for pro-rated maintenance, late fees, etc.

XML

INCOME TAXES

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 6 - INCOME TAXES

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes are as follows:

	For the Nine Months Ended September 30, 2014			For the Nine Months Ended September 30, 2013
Income tax at federal statutory rate		(34.00	)%		(34.00	)%
State tax, net of federal effect		(3.96	)%		(3.96	)%
		37.96	%		37.96	%
Valuation allowance		(37.96	)%		(37.96	)%
Effective rate		0.00	%		0.00	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

As of September 30, 2014 and December 31, 2013, the Company’s only significant deferred income tax asset was an estimated net tax operating loss of $9,596,237 and $8,023,260 respectively that is available to offset future taxable income, if any, in future periods, subject to expiration and other limitations imposed by the Internal Revenue Service.  Management has considered the Company's operating losses incurred to date and believes that a full valuation allowance against the deferred tax assets is required as of September 30, 2014 and December 31, 2013. Management has evaluated tax positions in accordance with ASC 740 and has not identified any tax positions, other than those discussed above, that require disclosure.

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Convertible Notes Payable

Issue	Maturity	September 30,		Interest			Conversion
Date	Date	2014		Rate			Rate
Convertible notes Payable:
October 30, 2013	October 30, 2014	$	50,000		6.00	%		0.0125
May 15, 2014	November 15, 2014		40,000		6.00	%		0.0070
			90,000
Unamortized discounts			-
Balance		$	90,000

Convertible Notes Payable - continued

Convertible notes payable, in default
October 31, 2012	April 30, 2013	$	8,000		6.00	%	0.0040
July 16, 2012	July 30, 2013		5,000		6.00	%	0.0050
November 20, 2012	May 20, 2013		50,000		6.00	%	0.0050
January 19, 2013	July 30, 2013		5,000		6.00	%	0.0040
February 11, 2013	August 11, 2013		9,000		6.00	%	0.0060
September 25, 2013	March 25, 2014		10,000		6.00	%	0.0125
August 28, 2009	November 1, 2009		4,300		10.00	%	0.0150
April 7, 2010	November 7, 2010		70,000		6.00	%	0.0080
November 12, 2010	November 7, 2011		40,000		6.00	%	0.0050
October 4, 2013	April 4, 2014		50,000		6.00	%	0.0125
March 11, 2014	September 11, 2014		5,005		6.00	%	0.0070
Unamortized discount			-
Balance		$	256,305
Convertible notes payable - related party, in default
January 19, 2013	July 30, 2013	$	15,000		6.00	%	0.0040
January 9, 2009	January 9, 2010		10,000		10.00	%	0.0150
January 25, 2010	January 25, 2011		6,000		6.00	%	0.0050
January 18, 2012	July 18, 2012		50,000		8.00	%	0.0040
July 26, 2013	January 26, 2014		10,000		6.00	%	0.0100
January 17, 2014	July 17, 2014		31,500		6.00	%	0.0060
Unamortized discount			-
Balance		$	122,500
Convertible notes payable - related party
April 22, 2014	October 22, 2014	$	5,005		6.00	%	0.0070
May 27, 2014	November 27, 2014		7,000		6.00	%	0.0070
July 21, 2014	January 25, 2015		17,000		6.00	%	0.0080
			29,005
Unamortized discount			(10,791	)
Balance		$	18,214

Aggregate allocation

Face value of convertible notes payable	$	105,510
Beneficial conversion feature		(105,067	)
Carrying value	$	443

Notes Payable

Issue Date	Maturity Date	September  30, 2014		December 31, 2013		Interest Rate
Notes payable, in default –related parties:
February 24, 2010	February 24, 2011	$	7,500	$	7,500		6.00	%
Notes payable, in default:
June 23, 2011	August 23, 2011		25,000		25,000		6.00	%
April 27, 2011	April 27, 2012		5,000		5,000		6.00	%
			30,000		30,000
		$	37,500	$	37,500

Summary of effect on earnings

Face value of the convertible notes payable	$	240,500
Interest expense to record the convertible notes at
fair value on the date of issuance		242,223
Interest expense to mark to market the convertible notes
on September 30, 2014		62,097
September 30, 2014 fair value	$	544,820

XML

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The Company and its subsidiary have been consolidated for financial statement purposes.  All significant intercompany transactions and balances have been eliminated.

Accounting Method

Accounting Method

The Company’s condensed financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue on arrangements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” and No. 104, “Revenue Recognition”. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured. For the periods ended September 30, 2014 and 2013, and for the period from inception to September 30, 2014, the Company did not report any revenues.

Earnings Per Share

Earnings Per Share

The Company has adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 which provides for calculation of "basic" and "diluted" earnings per share.  Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding for the period.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.  Basic and diluted losses per share were the same at the reporting dates as there were no common stock equivalents outstanding at September 30, 2014 and 2013.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities.  Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.  The three levels are defined as follows:

● Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities.

● Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.

● Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate of what market participants would use as fair value.

The following table presents certain investments and liabilities of the Company’s financial assets measured and recorded at fair value in the Company’s consolidated balance sheets on a recurring basis and their level within the fair value hierarchy as of September 30, 2014:

	Level 1		Level 2		Level 3		Total
Fair value of derivative liability	$	-	$	-	$	544,820	$	544,820

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.  The valuation of our derivative liability is determined using Level 3 inputs, which consider (i) time value, (ii) current market and (iii) contractual prices. 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2014 and December 31, 2013.    These financial instruments include cash, notes receivable, accounts payable and accrued expenses. The fair value of the Company’s debt instruments is estimated based on current rates that would be available for debt of similar terms, which is not significantly different from its stated value, except for the convertible note payable, at fair value, which has been revalued based on current market rates using Level 3 inputs. 

Fixed Assets and Depreciation

Fixed Assets and Depreciation

Fixed assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Currently the Company’s only assets are a diving vessel, which was purchased for $325,000 during 2008 and is being depreciated over a 10 year useful life and a generator, which was purchase for $7,450 during 2013 and is being depreciated over a 5 year useful life.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

In accordance with ASC 360-10, the Company, on a regular basis, reviews the carrying amount of long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. The Company determines if the carrying amount of a long-lived asset is impaired based on anticipated undiscounted cash flows, before interest, from the use of the asset. In the event of impairment, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the asset. Fair value is determined based on appraised value of the assets or the anticipated cash flows from the use of the asset, discounted at a rate commensurate with the risk involved. There were no impairment charges recorded during the periods ended September 30, 2014 and 2013.

Employee Stock Based Compensation

Employee Stock Based Compensation

The FASB issued SFAS No.123 (revised 2004), Share-Based Payment , which was superseded by ASC 718-10. ASC 718-10 provides investors and other users of financial statements with more complete and neutral financial information, by requiring that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. SFAS 123(R) covers a wide range of share-based compensation arrangements, including share options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As of September 30, 2014, the Company has not implemented an employee stock based compensation plan.

Non-Employee Stock Based Compensation

Non-Employee Stock Based Compensation

The Company accounts for stock based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in EITF 96-18,  Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services , which was superseded by ASC 505-50.  The Company issues compensatory shares for services including, but not limited to, executive, advisory, accounting, archeological, operations, strategic planning, corporate communications, financial, legal and administrative consulting services.  

Use of Estimates

Use of Estimates

The process of preparing condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.  Such estimates primarily relate to unsettled transactions and events as of the date of the condensed financial statements.  Accordingly, upon settlement, actual results may differ from estimated amounts.

Convertible Notes Payable

Convertible Notes Payable

The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. ASC 815 provides for an exception to this rule when convertible notes, as host instruments, are deemed to be conventional, as defined by ASC 815-40.

The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, in accordance with the provisions of ASC 470-20, which provides guidance on accounting for convertible securities with beneficial conversion features. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.  

The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.  Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. 

Convertible Notes Payable at Fair Value

Convertible Notes Payable at Fair Value

The   Company   elected   to   account   for   this   hybrid   contract   under   the   guidance   of   ASC   815-15-25-4.  This guidance allows an entity that initially recognizes a hybrid financial instrument that under paragraph  815-15-25-1 would be required to be separated into a host contract and a derivative instrument may irrevocably elect to initially and subsequently measure that hybrid financial instrument in its entirety at fair value (with changes in fair value recognized in earnings).

The fair value election is also available when a previously recognized financial instrument subject to a re-measurement event and the separate recognition of an embedded derivative. The fair value election may be made instrument by instrument. For purposes of this paragraph, a re-measurement event (new basis event) is an event identified in generally accepted accounting principles, other than the recognition of an other-than-temporary impairment, that requires a financial instrument to be re-measured to its fair value at the time of the event but does not require that instrument to be reported at fair value on a continuous basis with the change in fair value recognized in earnings. Examples of re-measurement events are business combinations and significant modifications of debt as defined in Subtopic 470-50.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-04.  This update clarifies how entities measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date.  This guidance is effective for fiscal years beginning after December 15, 2013 and interim reporting periods thereafter.   This update is not expected to have an impact on the Company’s financial position or results of operations.

In April 2013, the FASB issued ASU 2013-07 to clarify when it is appropriate to apply the liquidation basis of accounting.  Additionally, the update provides guidance for recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting.  Under the amendment, entities are required to prepare their financial statements under the liquidation basis of accounting when a liquidation becomes imminent.  This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods thereafter.  This update is not expected to have an impact on the Company’s financial position or results of operations.

In July 2013, the FASB issued ASU 2013-11 which provides guidance relating to the financial statement presentation of unrecognized tax benefits. The update provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carry forward, a similar tax loss or a tax credit carry forward, if such settlement is required or expected in the event the uncertain tax position is disallowed.  This update does not require any new recurring disclosures and is effective for public entities for fiscal years beginning after December 15, 2013, and interim reporting periods thereafter.  This update is not expected to have an impact on the Company’s financial position or results of operations.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

XML

DIVISION OF ARTIFACTS AND TREASURE

9 Months Ended

Sep. 30, 2014

Research and Development [Abstract]

DIVISION OF ARTIFACTS AND TREASURE

NOTE 10 – DIVISON OF ARTIFACTS AND TREASURE

Under the Exploration Agreement with Tulco that was renewed on June 8, 2010, the Company is required to split any artifacts or treasure that it successfully recovers from the Juno Beach Shipwreck site with the FLDHR and Tulco. Tulco and the Company, assuming that the FLDHR’s portion will be 20%, have agreed to the following division of artifacts and treasure:

20% to the FLDHR

40% to Tulco

40% to the Company

More specifically, the FLDHR has the right to select up to 20% of the total value of recovered artifacts and treasure for the State's museum collection. After the FLDHR has selected those artifacts and treasure that it feels will complement its collection, then the Company and Tulco will split the remaining artifacts and treasure equally.

In addition to the division of artifacts with the FLDHR and Tulco, the Company has entered into agreements where it may be required to pay additional percentages of its net share of any artifacts that it recovers at the Juno Beach Shipwreck site:

● The Company may elect to pay its divers or other personnel involved in the search for artifacts by giving them a percentage of the artifacts that they locate after a division of artifacts takes place with the FLDHR and Tulco. At the present time, the Company does not have any written agreements to pay any of its dive personnel a net percentage of any recovered artifacts; however, the Company reserves the right to do so in the future.

● The Company has become aware that an individual has made a claim that he has a legally valid and binding agreement with Tulco to receive a percentage of any artifacts recovered from the Juno Beach Shipwreck. The individual has purportedly claimed that his agreement with Tulco was executed several years prior to the Company and Tulco entering into the Exploration Agreement in March 2007. The Company has not been able to verify the legal standing of this claim. If this alleged agreement exists and is legally valid and binding, or if there are other agreements that have a valid, legal claim on the Juno Beach Shipwreck site, then such consequences may have a material adverse effect on the Company and its prospects.

To date the Company has not located any artifacts that have any significant monetary value.   The chance that the Company will actually recover artifacts of any significant value from the Juno Beach shipwreck site is very remote and highly unlikely. 

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

NOTE 8 - CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE

The Company evaluates each financial instrument to determine whether it meets the definition of “conventional convertible” debt under ASC 815-40.  The note payable conversion feature of the outstanding convertible debt met the definition of conventional convertible for purposes of applying the conventional convertible exemption. The definition of conventional contemplates a limitation on the number of shares issuable under the arrangement. Since the convertible notes achieved the conventional convertible exemption, the Company was required to consider whether the hybrid contracts embody a beneficial conversion feature. The calculation of the effective conversion amount did result in a beneficial conversion feature.

Convertible Notes Payable

The following table reflects the convertible notes payable, other than five notes that have been remeasured to fair value which are discussed later in Note 8, as of September 30, 2014:

Issue	Maturity	September 30,		Interest			Conversion
Date	Date	2014		Rate			Rate
Convertible notes Payable:
October 30, 2013	October 30, 2014	$	50,000		6.00	%		0.0125
May 15, 2014	November 15, 2014		40,000		6.00	%		0.0070
			90,000
Unamortized discounts			-
Balance		$	90,000

Convertible Notes Payable - continued

Convertible notes payable, in default
October 31, 2012	April 30, 2013	$	8,000		6.00	%	0.0040
July 16, 2012	July 30, 2013		5,000		6.00	%	0.0050
November 20, 2012	May 20, 2013		50,000		6.00	%	0.0050
January 19, 2013	July 30, 2013		5,000		6.00	%	0.0040
February 11, 2013	August 11, 2013		9,000		6.00	%	0.0060
September 25, 2013	March 25, 2014		10,000		6.00	%	0.0125
August 28, 2009	November 1, 2009		4,300		10.00	%	0.0150
April 7, 2010	November 7, 2010		70,000		6.00	%	0.0080
November 12, 2010	November 7, 2011		40,000		6.00	%	0.0050
October 4, 2013	April 4, 2014		50,000		6.00	%	0.0125
March 11, 2014	September 11, 2014		5,005		6.00	%	0.0070
Unamortized discount			-
Balance		$	256,305
Convertible notes payable - related party, in default
January 19, 2013	July 30, 2013	$	15,000		6.00	%	0.0040
January 9, 2009	January 9, 2010		10,000		10.00	%	0.0150
January 25, 2010	January 25, 2011		6,000		6.00	%	0.0050
January 18, 2012	July 18, 2012		50,000		8.00	%	0.0040
July 26, 2013	January 26, 2014		10,000		6.00	%	0.0100
January 17, 2014	July 17, 2014		31,500		6.00	%	0.0060
Unamortized discount			-
Balance		$	122,500
Convertible notes payable - related party
April 22, 2014	October 22, 2014	$	5,005		6.00	%	0.0070
May 27, 2014	November 27, 2014		7,000		6.00	%	0.0070
July 21, 2014	January 25, 2015		17,000		6.00	%	0.0080
			29,005
Unamortized discount			(10,791	)
Balance		$	18,214

Between January 1, 2014 and September 30, 2014, the Company issued six (6) convertible notes payable totaling $290,500. The notes includes interest at 6%. The principal amount of the notes and interest is payable on the maturity date. The notes and accrued interest are convertible into common stock at fixed conversion prices. The conversion prices and maturity dates of these notes are detailed in the table in the preceding page.

The Company has evaluated the terms and conditions of the convertible notes under the guidance of ASC 815 and other applicable guidance. The conversion feature of four of the notes met the definition of conventional convertible for purposes of applying the conventional convertible exemption. The definition of conventional contemplates a limitation on the number of shares issuable under the arrangement. The note is convertible into a fixed number of shares and there are no down round protection features contained in the contracts. Since the convertible notes achieved the conventional convertible exemption, the Company was required to consider whether the hybrid contracts embody a beneficial conversion feature. The calculation of the effective conversion amount did result in a beneficial conversion feature.

The following tables reflect the aggregate allocation on the financing date(s):

Face value of convertible notes payable	$	105,510
Beneficial conversion feature		(105,067	)
Carrying value	$	443

The discounts on the convertible notes arose from the allocation of basis to the beneficial conversion feature. The discount is amortized through charges to interest expense over the term of the debt agreement. For the three months ended September 30, 2014, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $25,231. The Company recognized interest expense totaling $97,844 during the nine months ended September 30, 2014. 

Notes Payable

The following table reflects the notes payable as of September 30, 2014 and December 31, 2013:

Issue Date	Maturity Date	September  30, 2014		December 31, 2013		Interest Rate
Notes payable, in default –related parties:
February 24, 2010	February 24, 2011	$	7,500	$	7,500		6.00	%
Notes payable, in default:
June 23, 2011	August 23, 2011		25,000		25,000		6.00	%
April 27, 2011	April 27, 2012		5,000		5,000		6.00	%
			30,000		30,000
		$	37,500	$	37,500

At September 30, 2014 and December 31, 2013, combined accrued interest on the convertible notes payable, notes payable and stockholder loans was $79,880 and $59,267, respectively, and included in accounts payable and accrued liabilities on the accompanying balance sheets.

Convertible Notes Payable and Notes Payable, in Default

The Company does not have additional sources of debt financing to refinance its convertible notes payable and notes payable that are currently in default. If the Company is unable to obtain additional capital, such lenders may file suit, including suit to foreclose on the assets held as collateral for the obligations arising under the secured notes. If any of the lenders file suit to foreclose on the assets held as collateral, then the Company may be forced to significantly scale back or cease its operations which would more than likely result in a complete loss of all capital that has been invested in or borrowed by the Company. The fact that the Company is in default of several promissory notes held by various lenders makes investing in the Company or providing any loans to the Company extremely risky with a very high potential for a complete loss of capital.

The convertible notes that have been issued by the Company are convertible at the lender’s option. These convertible notes represent significant potential dilution to the Company’s current shareholders as the convertible price of these notes is generally lower than the current market price of the Company’s shares. As such when these notes are converted into shares of the Company’s common stock there is typically a highly dilutive effect on current shareholders and very possible that such dilution may significantly negatively affect the trading price of the Company’s common stock.

Convertible Notes at Fair Value

Convertible Note Payable Dated January 16, 2014 at Fair Value

On January 16, 2014, the Company entered into a convertible note payable with a corporation.   The convertible note payable, with a face value of $50,000, bears interest at 6.0% per annum and was due on July 16, 2014. The convertible note payable is convertible, at the holder’s option, into the Company’s common shares at the Variable Conversion Price. The Variable Conversion Price is defined as 50% multiplied by the lowest closing price during the last twenty (20) trading days prior to closing, but not less than $0.002 per share.

In the evaluation of the financing arrangement, the Company concluded that the conversion feature did not meet the conditions set forth in current accounting standards for equity classification. Since equity classification is not available for the conversion feature, it requires bifurcation and liability classification, at fair value. The Company elected to account for this hybrid contract under the guidance of ASC 815-15-25-4.

In connection with the issuance of the convertible note payable, the Company recognized a day-one derivative loss totaling $51,431 related to the recognition of (i) the hybrid note and (ii) the derivative instrument arising from the fair value measurement due to the fair value of the hybrid note and embedded derivative exceeding the proceeds that the Company received from the arrangement. Therefore, the Company was required to record a loss of $51,431 on the derivative financial instrument and is included in interest expense. In addition, the fair value will change in future periods, based upon changes in the Company’s common stock price and changes in other assumptions and market indicators used in the valuation techniques. These future changes will be currently recognized in interest expense or interest income on the Company’s statement of operations.

The conversion of the note into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares.

During the quarter ended September 30, 2014, the note was converted into 8,666,666 shares of common stock.

Convertible Note Payable Dated March 17, 2014 at Fair Value

On March 17, 2014, the Company entered into a convertible note payable with a corporation.  The convertible note payable, with a face value of $40,000, bears interest at 8.0% per annum and is due on March 17, 2015. The convertible note payable is convertible, at the holder’s option, into the Company’s common shares at the Variable Conversion Price. The Variable Conversion Price is defined as 57% multiplied by the lowest closing bid price for the Company’s common stock during the fifteen (15) trading day period including the day the notice of conversion is received by the Company. The conversion feature is subject to full-ratchet, anti-dilution protection if the Company sells shares or share-indexed financing instruments at less than the conversion price.

In the evaluation of the financing arrangement, the Company concluded that the conversion feature did not meet the conditions set forth in current accounting standards for equity classification. Since equity classification is not available for the conversion feature, it requires bifurcation and liability classification, at fair value. The Company elected to account for this hybrid contract under the guidance of ASC 815-15-25-4.

In connection with the issuance of the convertible note payable, the Company recognized day-one derivative loss totaling $31,321 related to the recognition of (i) the hybrid note and (ii) the derivative instrument arising from the fair value measurement due to the fair value of the hybrid note and embedded derivative exceeding the proceeds that the Company received from the arrangement. Therefore, the Company was required to record a $31,321 loss on the derivative financial instrument and is included in interest expense. In addition, the fair value will change in future periods, based upon changes in the Company’s common stock price and changes in other assumptions and market indicators used in the valuation techniques. These future changes will be currently recognized in interest expense or interest income on the Company’s statement of operations.

The conversion of the note into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares.

Additionally, the holder of this convertible note has substantial rights and protections regarding dilution if certain events, including a default were to occur. There are a number of events that could trigger a default, including but not limited to failure to pay principal or interest, failure to issue shares under the conversion feature, breach of covenants, breach of representations and warranties, appointment of a receiver or trustee,  judgments, bankruptcy, delisting of common stock, failure to comply with the exchange act, liquidation, cessation of operations, failure to maintain assets, material financial statement restatement, reverse split of borrowers stock, etc. In the event of default the interest rate is increased to 24% per annum.

Furthermore, there are additional events that could cause the lender to be owed additional shares of common stock above and beyond the shares due from a conversion. Some of these events include, but are not limited to a merger or consolidation of the Company, dividend distribution or spin off, dilutive issuances of the Company’s stock, etc. If the lender receives additional shares of the Company’s commons stock due to any of the foregoing events or for other reasons, then this may have an extremely dilutive effect on the shareholders of the Company. Such dilution would likely result in a significant drop in the per share price of the Company’s common stock. The potential dilutive nature of this note presents a very high degree of risk to the Company and its shareholders.

At September 30, 2014, the $40,000 face value convertible note payable was recorded at its fair value of $96,798

Convertible Note Payable Dated April 24, 2014 at Fair Value

On April 24, 2014, the Company entered into a convertible note payable with a corporation.  The convertible note payable, with a face value of $107,000, bears interest at 12.0% per annum and is due on April 24, 2015. The convertible note payable is convertible, at the holder’s option, into the Company’s common shares at the Variable Conversion Price. The Variable Conversion Price is defined as 60% multiplied by the lowest closing bid price for the Company’s common stock during the twenty (20) trading day period including the day the notice of conversion is received by the Company. The conversion feature is subject to full-ratchet, anti-dilution protection if the Company sells shares or share-indexed financing instruments at less than the conversion price.

In the evaluation of the financing arrangement, the Company concluded that the conversion feature did not meet the conditions set forth in current accounting standards for equity classification. Since equity classification is not available for the conversion feature, it requires bifurcation and liability classification, at fair value. The Company elected to account for this hybrid contract under the guidance of ASC 815-15-25-4.

In connection with the issuance of the convertible note payable, the Company recognized day-one derivative loss totaling $166,771 related to the recognition of (i) the hybrid note and (ii) the derivative instrument arising from the fair value measurement due to the fair value of the hybrid note and embedded derivative exceeding the proceeds that the Company received from the arrangement. Therefore, the Company was required to record a $166,771 loss on the derivative financial instrument and is included in interest expense. In addition, the fair value will change in future periods, based upon changes in the Company’s common stock price and changes in other assumptions and market indicators used in the valuation techniques. These future changes will be currently recognized in interest expense or interest income on the Company’s statement of operations. 

The conversion of the note into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares.

Additionally, the holder of this convertible note has substantial rights and protections regarding dilution if certain events, including a default were to occur. There are a number of events that could trigger a default, including but not limited to failure to pay principal or interest, failure to issue shares under the conversion feature, breach of covenants, breach of representations and warranties, appointment of a receiver or trustee,  judgments, bankruptcy, delisting of common stock, failure to comply with the exchange act, liquidation, cessation of operations, failure to maintain assets, material financial statement restatement, reverse split of borrowers stock, etc. In the event of default the interest rate is increase to 24% per annum.

Furthermore, there are additional events that could cause the lender to be owed additional shares of common stock above and beyond the shares due from a conversion. Some of these events include, but are not limited to a merger or consolidation of the Company, dividend distribution or spin off, dilutive issuances of the Company’s stock, etc. If the lender receives additional shares of the Company’s commons stock due to any of the foregoing events or for other reasons, then this may have an extremely dilutive effect on the shareholders of the Company. Such dilution would likely result in a significant drop in the per share price of the Company’s common stock. The potential dilutive nature of this note presents a very high degree of risk to the Company and its shareholders.

At September 30, 2014, the $107,000 face value convertible note payable was recorded at its fair value of $243,551.

Convertible Note Payable Dated August 21, 2014 at Fair Value

On August 21, 2014, the Company entered into a convertible note payable with a corporation.  The convertible note payable, with a face value of $40,000, bears interest at 8.0% per annum and is due on August 21, 2015. The convertible note payable is convertible, at the holder’s option, into the Company’s common shares at the Variable Conversion Price. The Variable Conversion Price is defined as 57% multiplied by the lowest closing bid price   for the Company’s common stock during the fifteen (15) trading day period including the day the notice of conversion is received by the Company. The conversion feature is subject to full-ratchet, anti-dilution protection if the Company sells shares or share-indexed financing instruments at less than the conversion price.

In the evaluation of the financing arrangement, the Company concluded that the conversion feature did not meet the conditions set forth in current accounting standards for equity classification. Since equity classification is not available for the conversion feature, it requires bifurcation and liability classification, at fair value. The Company elected to account for this hybrid contract under the guidance of ASC 815-15-25-4.

In connection with the issuance of the convertible note payable, the Company recognized day-one derivative loss totaling $33,372 related to the recognition of (i) the hybrid note and (ii) the derivative instrument arising from the fair value measurement due to the fair value of the hybrid note and embedded derivative exceeding the proceeds that the Company received from the arrangement. Therefore, the Company was required to record a $33,372 loss on the derivative financial instrument and is included in interest expense. In addition, the fair value will change in future periods, based upon changes in the Company’s common stock price and changes in other assumptions and market indicators used in the valuation techniques. These future changes will be currently recognized in interest expense or interest income on the Company’s statement of operations.

The conversion of the note into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares.

Additionally, the holder of this convertible note has substantial rights and protections regarding dilution if certain events, including a default were to occur. There are a number of events that could trigger a default, including but not limited to failure to pay principal or interest, failure to issue shares under the conversion feature, breach of covenants, breach of representations and warranties, appointment of a receiver or trustee,  judgments, bankruptcy, delisting of common stock, failure to comply with the exchange act, liquidation, cessation of operations, failure to maintain assets, material financial statement restatement, reverse split of borrowers stock, etc. In the event of default the interest rate is increase to 24% per annum.

Furthermore, there are additional events that could cause the lender to be owed additional shares of common stock above and beyond the shares due from a conversion. Some of these events include, but are not limited to a merger or consolidation of the Company, dividend distribution or spin off, dilutive issuances of the Company’s stock, etc. If the lender receives additional shares of the Company’s commons stock due to any of the foregoing events or for other reasons, then this may have an extremely dilutive effect on the shareholders of the Company. Such dilution would likely result in a significant drop in the per share price of the Company’s common stock. The potential dilutive nature of this note presents a very high degree of risk to the Company and its shareholders.

At September 30, 2014, the $40,000 face value convertible note payable was recorded at its fair value of $122,330.

Convertible Note Payable Dated September 08, 2014 at Fair Value

On September 08, 2014, the Company entered into a convertible note payable with a corporation.  The convertible note payable, with a face value of $53,500, bears interest at 12.0% per annum and is due on September 08, 2015. The convertible note payable is convertible, at the holder’s option, into the Company’s common shares at the Variable Conversion Price. The Variable Conversion Price is defined as 60% multiplied by the lowest closing bid price  two trading prices for the Company’s common stock during the twenty (20) trading day period including the day the notice of conversion is received by the Company. The conversion feature is subject to full-ratchet, anti-dilution protection if the Company sells shares or share-indexed financing instruments at less than the conversion price.

In the evaluation of the financing arrangement, the Company concluded that the conversion feature did not meet the conditions set forth in current accounting standards for equity classification. Since equity classification is not available for the conversion feature, it requires bifurcation and liability classification, at fair value. The Company elected to account for this hybrid contract under the guidance of ASC 815-15-25-4.

In connection with the issuance of the convertible note payable, the Company recognized day-one derivative loss totaling $42,080 related to the recognition of (i) the hybrid note and (ii) the derivative instrument arising from the fair value measurement due to the fair value of the hybrid note and embedded derivative exceeding the proceeds that the Company received from the arrangement. Therefore, the Company was required to record a $42,080 loss on the derivative financial instrument and is included in interest expense. In addition, the fair value will change in future periods, based upon changes in the Company’s common stock price and changes in other assumptions and market indicators used in the valuation techniques. These future changes will be currently recognized in interest expense or interest income on the Company’s statement of operations. 

The conversion of the note into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company’s shares.

Additionally, the holder of this convertible note has substantial rights and protections regarding dilution if certain events, including a default were to occur. There are a number of events that could trigger a default, including but not limited to failure to pay principal or interest, failure to issue shares under the conversion feature, breach of covenants, breach of representations and warranties, appointment of a receiver or trustee,  judgments, bankruptcy, delisting of common stock, failure to comply with the exchange act, liquidation, cessation of operations, failure to maintain assets, material financial statement restatement, reverse split of borrowers stock, etc. In the event of default the interest rate is increase to 24% per annum.

Furthermore, there are additional events that could cause the lender to be owed additional shares of common stock above and beyond the shares due from a conversion. Some of these events include, but are not limited to a merger or consolidation of the Company, dividend distribution or spin off, dilutive issuances of the Company’s stock, etc. If the lender receives additional shares of the Company’s commons stock due to any of the foregoing events or for other reasons, then this may have an extremely dilutive effect on the shareholders of the Company. Such dilution would likely result in a significant drop in the per share price of the Company’s common stock. The potential dilutive nature of this note presents a very high degree of risk to the Company and its shareholders.

At September 30, 2014, the $53,500 face value convertible note payable was recorded at its fair value of $82,141.

The following tables summarize the effects on earnings associated with changes in the fair values of the convertible notes payable, at fair value for the three months ended September 30, 2014:

Face value of the convertible notes payable	$	240,500
Interest expense to record the convertible notes at
fair value on the date of issuance		242,223
Interest expense to mark to market the convertible notes
on September 30, 2014		62,097
September 30, 2014 fair value	$	544,820

XML

MATERIAL AGREEMENTS

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

MATERIAL AGREEMENTS

NOTE 9 – MATERIAL AGREEMENTS

Agreement to Explore a Shipwreck Site Located off of Brevard County, Florida

On March 1, 2014, Seafarer entered into a partnership and ownership with Marine Archaeology Partners, LLC, with the formation of Seafarer’s Quest, LLC. Such LLC was formed in the State of Florida for the purpose of permitting, exploration and recovery of artifacts from a designated area on the east coast of Florida. Such site area is from a defined, contracted area by a separate entity, which a portion of such site is designated from a previous contracted holding through the State of Florida. Under such agreement, Seafarer is responsible for costs of permitting, exploration and recovery, and is entitled to 60% of such artifact recovery. Seafarer has a 50% ownership, with designated management of the LLC coming from Seafarer.

Florida Division of Historical Resources Agreements/Permits

As previously noted on its form 8-K filed on May 9, 2011, the Company and Tulco received a 1A-31 Recovery Permit from the Florida Division of Historical Resources. The Recovery Permit was active through April 25, 2014. The Permit authorizes Seafarer to dig and recover artifacts from the designated site at Juno Beach, Florida. It will be necessary for the Company to obtain a renewal to the Recovery Permit for the Juno Beach shipwreck site in order to continue to perform exploration and recovery work at the site.

On November 2, 2012, the Company received a three year 1A-31 Exploration Permit from the Division of Historical Resources for an area identified off of Lantana Beach, Florida. Under the permit the Company began remote sensing at the site with a cesium vapor magnotemoter and did underwater exploration. Once the remote sensing was completed and the data analyzed, the Exploration permit moved to Phase 2, dig and identify. During Phase 2 testing was done which confirmed a mid to late 18th century shipwreck. Upon further testing, management believes a 1600s era shipwreck potentially exists, but not within the currently permitted area. Due to other developments and projects, the Company is not pursuing Phase 3 at the Lantana site at this time, but review the site at a later date that has not yet been determined.

On July 28, 2014 the Company’s partnership with Marine Archeological Partners, LLC, Seafarer’s Quest, LLC received a 1A-31 Recovery Permit (the “Permit”) from the Florida Division of Historical Resources for an area identified off of Cape Canaveral, Florida. The Permit is active for three years from the date of issuance.

Agreement with Tulco Resources, Ltd.

As previously noted in its 8-K filing on June 11, 2010, the Company entered into an agreement with Tulco Resources, Ltd. (“Tulco”) on June 8, 2010 which granted the Company the exclusive rights to explore, locate, identify, and salvage a possible shipwreck within the territorial limits of the State of Florida, off of Palm Beach County, in the vicinity of Juno Beach, Florida (the “Exploration Agreement”).  The term of the Agreement is for three years and may renew for an additional three years under the same terms unless otherwise agreed to in writing by the Tulco and Seafarer. The Company agreed to pay Tulco a conservation payment of $20,000 per calendar year during the term of the Agreement.  The amount of the conservation payment my increase in future years based on the mutual agreement of Tulco and the Company. The Company agreed to furnish its own personnel, salvage vessel and equipment necessary to conduct operations at the shipwreck site. The Company also agreed to pay all of its own expenses directly associated with salvage operations, including but not limited to fuel, food, ground tackle, electronic equipment, dockage, wages, dive tanks, and supplies. The Company agreed to split any artifacts that it recovers equally with Tulco, after the State of Florida has selected up to twenty percent of the total value of recovered artifacts for the State of Florida’s museum collection. The Company and Tulco agreed to receive their share of the division of artifacts at the same time.  The Company and Tulco agreed to jointly handle all correspondence with the State of Florida regarding any agreements and permits required for the exploration and salvage of the shipwreck site. The original three year term of the Exploration Agreement was valid until June 10, 2013 and both Seafarer and Tulco had the option to extend the agreement for an additional three years. There have been no discussions between Tulco and Seafarer regarding extending the Exploration Agreement. On June 18, 2013, Seafarer began litigation against Tulco Resources, LLC, in a lawsuit filed in the Circuit Court in and for Hillsborough County, Florida. Such suit was filed against Tulco based upon for breach of contract, equitable relief and injunctive relief.

Certain Other Agreements

In February of 2014, the Company entered into an agreement with an individual who is related to the Company’s CEO to continue serving as a member of the Company’s Board of Directors. Under the  agreement, the Director agreed to provide various services to the Company including making recommendations for both the short term and the long term business strategies to be employed by the Company, monitoring and assessing the Company's business and to advise the Company’s Board of Directors with respect to an appropriate business strategy on an ongoing basis, commenting on proposed corporate decisions and identifying and evaluating alternative courses of action, making suggestions to strengthen the Company's operations, identifying and evaluating external threats and opportunities to the Company, evaluating and making ongoing recommendations to the Board with respect for one year and may be terminated by either the Company or the Director by providing written notice to the other party. The agreement also terminates automatically upon the death, resignation or removal of the Director.  Under the terms of the agreement, the Company agreed to pay the Director 2,000,000 restricted shares of its common stock at the execution of the agreement and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for preapproved expenses. The 2,000,000 shares are included as an expense in consulting and contractor fees in the accompanying income statements.

In April of 2014, the Company entered into agreements with fourteen consultants for providing services related to diving operations and administrative consulting for operations. Under the terms of the agreements the consultants agreed to provide various services related to the Company’s diving operations and administrative consulting.  Under the various agreements with the consultants the Company agreed to issue a total of 3,425,000 share of common stock for the services. The shares owed to the consultants are subject to a six month lock up agreement and may not be sold, contracted to sell or disposed of prior to six months from the effective date of the agreements. If any of the consultants quits or their services are no longer required during the six month period from the effective dates of the agreements, then all of the shares shall be forfeited to the Company.

In July of 2014, the Company entered into a consulting agreement with a corporation under which the consultant agreed to provide various advisory services and corporate communications consulting services as an independent contractor.  The consultant is not providing any legal advice nor acting as an investment advisor is not exclusive. The term of the agreement is for one year and the Company agreed to pay the consultant $4,000 per month while the agreement is in effect and issue the consultant 1,500,000 shares of its restricted common stock. The 1,500,000 shares were issued to the consultant and are included as an expense in consulting and contractor fees in the accompanying income statements.

In July of 2014, the Company entered into a consulting agreement with an individual under which the consultant agreed to provide various corporate communications consulting services as an independent contractor.  The term of the agreement is for one year and the Company agreed to pay the consultant 50,000 shares of its restricted common stock per month. The Company has issued 100,000 shares to the individual for services rendered and the shares are included as an expense in consulting and contractor fees in the accompanying income statements.

In July of 2014, the Company agreed to lease a slip in Cape Canaveral for one of its vessels. The lease is month to month and the Company agreed to pay $354 per month including taxes for use of the slip.

In August of 2014, the Company agreed to lease a slip in Port Canaveral for one of its vessels. The lease is month to month and the Company agreed to pay $922 per month including taxes for use of the slip.

In August of 2014, the Company agreed to rent a vessel from a third party for $150 per day that the vessel is actually used by the Company. A day of usage is defined as any day the boat is put in the water and started, the boat may be used by the Company for up to twelve hours per day. The Company must pay an additional fee of $200 for every two hundred hours that it utilizes the boat. The agreement may be cancelled at any time by either party.

The Company has an ongoing verbal agreement with a limited liability company that is controlled by a person who is related to the Company’s CEO to pay the related party consultant $3,000 per month to provide general business consulting, industry research, monitoring and assessing the Company's business and to advise management with respect to an appropriate business strategy on an ongoing basis, commenting on proposed corporate decisions and identifying and evaluating alternative courses of action, perform background research including background checks and provide investigative information on individuals and companies and acting as an administrative specialist to perform various administrative duties and clerical services including reviewing the Company’s agreements and books and records. The consultant provides the services under the direction and supervision of the Company’s CEO. All fees paid to the related party consultant during the period ended September 30, 2014 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

The Company has an ongoing agreement with a limited liability company that is owned and controlled by a person who is related to the Company’s CEO to provide stock transfer agency services. At September 30, 2014, the Company owed the related party limited liability company $9,099 for transfer agency services rendered and for the reimbursement of legal fees. In January 2014 the Company entered into a separate debt settlement agreement with the related party vendor to settle a total of $7,683 of outstanding debt related to legal fees incurred by the related party vendor due to a lawsuit against the Company in which suit the related party vendor was also named as a defendant due to its position as the Company’s stock transfer agency. The Company issued 768,293 shares of its common stock to this vendor as satisfaction for the outstanding debt. The agreement between the Company and the vendor stipulated that should the transfer agency realize less than $7,683 from the sale of the stock, then the consultant is entitled to receive up to an additional 700,000 shares of common stock or a cash payment until the balance is paid in full. In March of 2014 the related party limited liability company also agreed to provide various corporate consulting, strategic planning and training under a separate consulting agreement and the Company agreed to pay 500,000 shares of its restricted common stock under the consulting agreement.

The Company has an ongoing consulting agreement to pay a limited liability company a minimum of $5,000 per month for providing ongoing business advisory and strategic planning and consulting services, assistance with financial reporting. IT management, and administrative services. The Company also agreed to pay additional compensation to the consultant in the form of cash and/or restricted stock to be awarded solely at the Company’s discretion. The Company also agreed to reimburse the consultant for certain expenses. The agreement is verbal and may be terminated by the Company or the consultant at any time. All fees paid to the consultant during the three month period ended September 30, 2014 are included as an expense in consulting and contractor fees in the accompanying income statements.

The Company has an ongoing agreement to pay a limited liability company a monthly fee for archeological and the review of historic shipwreck research consulting services. During the period ended September 30, 2014, the Company paid the consultant 500,000 shares of its restricted common stock. All fees paid to the consultant during the period ended September 30, 2014 are included as an expense in consulting and contractor fees in the accompanying statements of operations.

XML

LEGAL PROCEEDINGS

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

LEGAL PROCEEDINGS

NOTE 11 – LEGAL PROCEEDINGS

Since December 11, 2009, the Company, has been involved in a lawsuit where it was named as a Defendant, along with its CEO and transfer agent in Case Number 09-CA-030763, filed in the Circuit Court of Hillsborough County, Florida. The lawsuit was brought in the name of 31 individuals and 1 corporation. The lawsuit alleges that the Company, its CEO, and its transfer agent wrongfully refused to remove the restrictive legend from certain shares of the Company’s common stock that are collectively owned by the plaintiffs, which prevented the plaintiffs from selling or transferring their shares of the Company’s common stock. The plaintiffs allege that they have lost approximately $1,041,000 as of the date of the lawsuit. Such lawsuit continued to a hearing of the Plaintiffs’ motion for summary judgment against the Defendants including Seafarer, which was heard on September 1, 2011 and denied by the Court. Litigation of the matter has continued and the Company has presented evidence and arguments of law that the shares were distributed from their original recipient, Micah Eldred, in an illegal sale to another corporate entity. The Company further contends in its pleadings that such shares were then illegally purchased back by Eldred, then distributed in a manner by Eldred to others including the 31 other Plaintiffs to avoid reporting requirements under the Securities Act and as Eldred had a duty to report as a principal of a brokerage. The actions by Eldred, as pled by the Corporation, is that on or about October 8, 2008,  Eldred  gifted  most  of the  34,700,000   shares  to certain  friends,   family,  and  employees   (i.e.,  the  Plaintiffs   named  in this  Complaint),   and  kept ownership  of 4, 140,000  shares.

On September 11, 2013, the Parties attended a voluntary mediation, which ended in an impasse.

Some discovery had progressed to the point that Seafarer had, on September 25, 2013, filed a Motion to File Counterclaims and Third-Party Complaint (“Motion for Leave to File Counterclaim”) along with a proposed Counterclaim.  Such counterclaims were filed in December 2013.  Included in the counterclaim was an allegation of conspiracy between Eldred and Sean Murphy for the publication of false information which Seafarer sued Murphy for and received a judgment for libel against Murphy on April 1, 2011 for $5,080,000. Thus the counterclaim was filed against the Plaintiffs: Micah Eldred, Michael J. Daniels, Carl Dilley, Heather Dilley, James Eldred, Mary R. Eldred, Michole Eldred, Nathan Eldred, Toni A. Eldred, Diane J. Harrison, Ioulia Hess, Olessia  Kritskaia,  Anna Krokhina, George Lindner, Elizabeth Lizzano, Karen Lizzano, Robert Lizzano, Abby Lord, Jillian Mally, Ekaterina Messinger, Susan Miller, Michael Mona, Matthew J. Presy, Oksana Savchenko, Vanessa A. Verbosh, Alan Wolper, Sarah Wolper, and Christine Zitman. On April 23, 2014, the trial court ruled on the Counter-Claim Defendants’ motion to dismiss and ordered the dismissal of the claims for section 517.301 violations, conspiracy and fraud. The court ruled that the Corporation did not have standing and was not in privity with the counter-claim defendants at the time of their alleged actions so the company could not maintain the action, unlike private shareholders who could have standing. Thus the Company attempted to protect the shareholders by such suit, but was ruled against as not having standing to do so.

On October 18, 2013, the Plaintiffs filed a Notice of Removal to Federal Court in the Tampa Division of the United States District Court, citing the allegation that such lawsuit should be moved to Federal Court based upon the Defendants proposed counterclaims of Federal law. The pleading for removal contained the allegation by the Plaintiffs that they had the consent of all the listed Plaintiffs to remove the matter to Federal Court. On November 4, 2013, Seafarer filed a Motion to Remand back to State Court in the Federal Court, citing legal argument and the undisputed facts that removal to Federal Court was improper as having no basis in law, and asking for attorney’s fees from the Plaintiffs for such removal. On November 7, 2013, Judge James Moody of the United States District Court entered an Order granting the Remand Motion of Seafarer, finding that “Plaintiffs removed the case based on their assumption that the counterclaim would establish federal jurisdiction. Plaintiffs’ removal is patently without merit.” Judge Moody further held “Plaintiffs’ removal had no basis under the law or facts. Simply put, the removal was not objectively reasonable.”   Accordingly, the Court Ordered the case sent back to State Court and that the Federal Court would award Defendants [Seafarer] a reasonable amount of attorney’s fees and costs.” Seafarer collected such attorney’s fees through counsel. Such case was remanded to the Circuit Court in Hillsborough County, where Seafarer had the motion to file the Counterclaims and Third Party Claims heard and an Order Granting the filing and service of such claims was made by Circuit Judge Paul Huey on December 13, 2013. Seafarer filed such complaint and served such Counterclaim Defendants and Third Party Defendants during the months of December 2013 and January 2014. Such complaint included claims by Seafarer for damages including punitive damages against the Plaintiffs for their actions, which is alleged to have materially damaged the Corporation and its shareholders. Such litigation continues and the Company will continue to fight the release of such shares for sale. It is the position of Seafarer that due to the actions involved with such shares, they are tainted and should be ordered to be cancelled. Seafarer intends to continuously pursue this defense and will assist any shareholders with any claims they may have against the Plaintiffs who hold such shares as to their actions which may have harmed any shareholders who were shareholders at the time of the Plaintiff’s action.

In early October 2013, counsel for Seafarer was contacted by counsel representing the listed Plaintiff, CADEF: The Childhood Autism Foundation (CADEF), as to their being named in the lawsuit as Plaintiffs in the State Court action and the litigation being done in their name. Pursuant to those discussions, on November 5, 2013, Seafarer, Kyle Kennedy (individually), Cleartrust LLC and CADEF entered into a Settlement Agreement and Release from Litigation. CADEF agreed to surrender all rights to the 1,000,000 shares in its name, as well as causing dismissal of any such claims against the Seafarer, Kennedy and Cleartrust that had been brought in their name in the lawsuit. Specifically, CADEF agreed: “CADEF agrees that the following matters of fact exist based upon the knowledge of its Board of Directors and Principals: A) The Board of Directors of CADEF had no knowledge of the share certificate ever being issued for its benefit or the existence of such share certificate until recently in the month of October 2013 when such shares were sent to them. B) The Board of Directors of CADEF never authorized the filing of the lawsuit cited above or to be a party to such. C) Because of the above in B) CADEF’s Board of Directors was never advised of any settlement offer being made by the Defendants nor of the mediation held on September 11, 2013. On approximately October 30, 2013 CADEF delivered such 1,000,000 shares to counsel for Seafarer. Such shares were cancelled subsequently. Seafarer believes this pattern activity. Seafarer is currently conducting extensive discovery including depositions in the case. As well, Seafarer has filed a motion for sanctions and dismissal based upon spoliation (destruction) of evidence by the Eldred parties, as well as a motion for sanctions and dismissal based upon fraud on the court which alleges that the Eldred parties attempted to bribe outside parties to make claims against the Company. Such matters are currently ongoing and pending such motions for hearing as made by Seafarer.

In the ongoing litigation in the above case against Micah Eldred and associated persons to protect the interests of the shareholders, the Corporation followed up on its counter-claims against Eldred by the filing of a notice of appeal of the dismissal of such claims, to the Second District Court of Appeal for Florida on May 17, 2014.  On May 29, 2014, the Company was served a secondary lawsuit in Hillsborough County. The lawsuit by challenges the creation of the Preferred B Series of Shares and the increase in authorized shares. The lawsuit in the opinion of the Corporation and multiple counsel has no merit since the corporation’s articles of incorporation and Florida statutes allow for the creation of the preferred shares, and thus the increase in authorized shares. The Corporation is defending such lawsuit and seeking dismissal by motion.

On September 3, 2014, the Company filed a multi-count complaint against an internet poster, being an individual named Darrell Volentine of California. The complaint also called for an immediate and permanent injunction against Volentine for his internet postings on www.investorshub.com and other locations. After a hearing on such immediate injunction on October 1, 2014, Volentine consented and signed to a consent judgment against him, also agreeing to a permanent injunction. In such consent judgment agreement Volentine agreed that the actual damages due to Seafarer Exploration Corp. were stipulated and agreed to be ten million three hundred sixty thousand dollars ($10,360,000.00) under such stipulated final judgment which was to be entered in this matter. Volentine further agreed that such damage award of $10,360,000.00 shall remain enforceable for a period of seven and one half years which would be 90 months from the entry of such final judgment. In exchange for such judgment, Seafarer agreed that no collection of such judgment would proceed unless the personal assets of Volentine exceeded two million four hundred thousand dollars ($2,400,000.00) during any six month period during such 90 months after entry of such final judgment. When such proposed and completely executed judgment was set before the Court (Judge Martha Cook), Judge Cook found that Mr. Volentine was too unsophisticated to accept such a judgment, and further that she did not find enough evidence to support such a damage award. Seafarer, in response to the rejection of such judgment by the Court, has filed a motion for punitive damages, as well as a motion for sanctions and civil contempt against Mr. Volentine for his posting which did not cease as per the injunction entered. Seafarer, with the Judge interceding against the stipulation for an agreed to judgement now intends to fully pursue Mr. Volentine for actual and punitive damages, including collection of damages from Mr. Volentine if successful at trial.

On March 2, 2010, the Company filed a complaint naming, Sean Murphy as a Defendant who formerly provided services as a captain, diver, and general laborer to the Company as a defendant in the Circuit Court of Hillsborough County, Florida case number 10-CA-004674. The lawsuit contains numerous counts against the defendant, including civil theft, breach of contract, libel and negligence. On April 5, 2011, a six person jury in Hillsborough County, Florida found in favor of the Company and found that the Defendant was responsible for $5,080,000 in compensatory damages. In 2012, the Company attempted to schedule a trial for the punitive damages, but the Court cancelled the trial due to scheduling of priority cases. The Company is currently seeking final entry of not only the judgment, but will be exercising collection matters against the Defendant. The Company intends to pursue collection, no matter the ability of the Defendant to pay.

On June 18, 2013, Seafarer began litigation against Tulco Resources, LLC, in a lawsuit filed in the Circuit Court in and for Hillsborough County, Florida. Such suit was filed for against Tulco based upon  for breach of contract, equitable relief and injunctive relief. Tulco was the party holding the rights under a permit to a treasure cite at Juno Beach, Florida. Tulco and Seafarer had entered into contracts  in March 2008, and later renewed under an amended agreement on June 11, 2010. Such permit was committed to by Tulco to be an obligation and contractual duty to which they would be responsible for payment of all costs in order for the permit to be reissued. Such obligation is contained in the agreement of March 2008 which was renewed in the June 2010 agreement between Seafarer and Tulco. Tulco made the commitment to be responsible for payments of all necessary costs for the gaining of the new permit. Tulco never performed on such obligation, and Seafarer during the period of approximately March 2008 and April 2012 had endeavored and even had to commence a lawsuit to gain such permit which was awarded in April 2012. Seafarer alleges in their complaint the expenditure of large amounts of shares and monies for financing and for delays due to Tulco’s non-performance. Seafarer seeks monetary damages and injunctive relief for the award of all rights held by Tulco to Seafarer. As of March 24, 2014, Seafarer, through Counsel with the assistance of a licensed investigator, established there was no party or individual to be served from Tulco due to the death of the former Manager, and having no other legal person or entity to serve, has won a default judgment, and final judgment for award of all rights to such site for contractual and other rights held by Tulco. Seafarer gained a default and final Judgment on such matter on July 23, 2014. Seafarer is continuing to work with the State for the renewed permit to be in Seafarer’s name and rights only, with Tulco removed per the Order of the Court. Seafarer expects to be the sole holder of such permit and rights under the outcome of the case, with complete removal of all other parties from such rights. Seafarer expects the final award of such rights by the end of 2014.

In the legal action of Seafarer Exploration versus Blue Water Ventures, Inc. and Keith Webb, Sixth Circuit Civil Case No 11-05539-Cl-19 a comprehensive settlement agreement, without any admissions of fault was negotiated and executed in October 2014 by all parties, as to all claims and defenses raised in such action, which Agreement has been accepted by the Court with attendant Order entered otherwise ordering and directing defendants to strictly and timely comply with the same, which agreement by its terms be fully performed by all Defendants on or before April 10, 2015. The Company’s legal counsel for this action has received the first settlement payment in the amount of $7,500 from the Defendants.

XML

CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Aggregate allocation (Details) (USD $)	3 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]
Face value of convertible notes payable	$ 105,510
Beneficial conversion feature	(105,067)
Carrying value	$ 443

XML

LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Components of loss per share

	For the Three Months Ended September 30, 2014			For the Three Months Ended September 30, 2013
Net loss attributable to common stockholders	$	(529,724	)	$	(605,567	)
Weighted average shares outstanding:
Basic and diluted		919,710,681			811,905,248
Loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)

Components of loss per share for the nine months ended September 30, 2014 and 2013 are as follows:

	For the Nine Months Ended September 30, 2014			For the Nine Months Ended September 30, 2013
Net loss attributable to common stockholders	$	(1,572,977	)	$	(1,767,192	)
Weighted average shares outstanding:
Basic and diluted		890,886,099			779,676,653
Loss per share:
Basic and diluted	$	(0.00	)	$	(0.00	)

XML

SIGNIFICANT ACCOUNTING POLICIES - Fair value of derivative liability (Details) (USD $)	Sep. 30, 2014
Level 1
Fair value of derivative liability
Level 3
Fair value of derivative liability	544,820
Total
Fair value of derivative liability	$ 544,820

XML

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	3 Months Ended
	Sep. 30, 2014	Aug. 24, 2014	Jul. 31, 2014	May 31, 2014	May 27, 2014	Apr. 30, 2014	Apr. 22, 2014	Feb. 28, 2014	Jan. 17, 2014	Jul. 26, 2013	Jul. 17, 2013	Feb. 07, 2013	Jan. 19, 2013	Jan. 18, 2012	Feb. 24, 2010	Jan. 25, 2010	Jan. 09, 2009
Notes to Financial Statements
Restricted shares of common stock to be paid to the Director								2,000,000
Convertible note payable, amount			$ 17,000	$ 7,000	$ 7,000	$ 5,005	$ 5,005		$ 31,500	$ 10,000	$ 30,000	$ 10,000	$ 15,000	$ 50,000	$ 7,500	$ 6,000	$ 10,000
Convertible note payable, interest rate per annum			6.00%	6.00%	6.00%	6.00%	6.00%		6.00%	6.00%	6.00%	6.00%	6.00%	8.00%	6.00%	6.00%	10.00%
Convertible note payable, common stock price per share			$ 0.008	$ 0.007	$ 0.007	$ 0.007	$ 0.007		$ 0.006	$ 0.01	$ 0.01	$ 0.005	$ 0.004	$ 0.004		$ 0.005	$ 0.015
Promissory note principal balance converted to common shares	4,492,150
Payment to related party consultant per month	3,000
Restricted shares issued to related party consultant	500,000
Outstanding debt related to legal fees	7,683
Shares issued to vendor for outstanding debt	768,293
Vendor entitled to common stock, until debt is paid in full, Shares	700,000
Subscription agreement, shares	900,000
Subscription agreement, price per share	$ 0.007
Subscription agreement, proceeds received	6,300
Payment to transfer agency	7,597
Accrued interest converted		10,000
Interest free loan from CEO	$ 1,500

XML

Condensed Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		91 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Operating activities
Net loss	$ (1,572,977)	$ (1,767,192)	$ (9,596,237)
Adjustments to reconcile net income to net cash provided (used) by operating activities
Depreciation	25,488	25,488	227,670
Change in allowance for uncollectible note receivable			38,867
Amortization of deferred financing costs			59,605
Interest (income) expense on fair value adjustment	354,451	(23,556)	992,739
Loss on extinguishment of debt			381,113
Write-off of uncollectible deposits			20,000
Accrued interest on note receivable			(11,705)
Loss on impairment	1,100		43,900
Amortization of beneficial conversion feature of the notes payable	270,640	106,358	270,638
Common stock issued for services	185,799	1,024,491	3,167,196
Common stock issued for legal services		56,928	122,423
Common stock issued for financing fees			5,000
Decrease (increase) in:
Prepaid expenses	13,447	13,559	(25,623)
Advances from shareholder		(2,500)	(1,015)
Deposits and other receivables			(23,346)
Decrease in advance to shareholder	3,267		3,267
Accounts payable and accrued expenses	33,782	86,162	268,296
Net cash provided (used) by operating activities	(685,003)	(480,262)	(4,057,214)
Cash flows from investing activities:
Principal payments from notes receivable			(25,000)
Purchase of common stock			(34,100)
Property and equipment acquisitions			(325,000)
Net cash provided (used) by investing activities			(384,100)
Cash flows from financing activities:
Proceeds from the issuance of common stock	329,496	241,343	2,655,383
Proceeds from the issuance of convertible notes payable	335,505	169,500	1,401,305
Proceeds from the issuance of convertible notes payable, related party	60,505	55,500	260,507
Proceeds from issuance of notes payable			286,500
Proceeds from issuance of notes payable, related parties			8,500
Payments on convertible notes payable		(30,000)	(76,000)
Payments on notes payable			(57,500)
Payments on notes payable, related parties		7,500	(1,000)
Proceeds from loans from stockholders			49,675
Payments on loans from stockholders		(7,500)	(44,975)
Net cash provided by financing activities	725,506	436,343	4,482,664
Net increase (decrease) in cash	40,772	(43,919)	41,350
Cash - beginning	578	43,919
Cash - ending	41,350		41,350
Supplemental disclosure of cash flow information:
Cash paid for interest expense			3,660
Cash paid for income taxes
Noncash operating and financing activities:
Due to Organetix, Inc. reclassified to additional paid-in capital			91,500
Common stock issued in connection with a joint venture			9,800
Common stock issued to satisfy debt	7,683		140,870
Common stock issued to satisfy minimum value guaranteed			87,667
Convertible debt and accrued interest converted to common stock	364,932	143,936	1,874,532
Common stock issued in exchange for property and equipment			$ 7,420

XML

CAPITAL STOCK

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

CAPITAL STOCK

NOTE 5 – CAPITAL STOCK

As of September 30, 2014 the Company was authorized to issue 950,000,000 shares of $0.0001 par value common stock.

Preferred Stock

The Company is authorized to sell or issue 50,000,000 shares of preferred stock.

Series A Preferred Stock

On March 30, 2011, the Company designated 50,000 shares, par value $0.0001 per share as Series A Preferred Stock (“Series A Preferred”). The Series A Preferred has a liquidation preference of $1. The holders have no voting rights and are entitled to receive dividends if and when declared by the board. Additionally, the Series A Preferred does not have a term or a maturity date; it is a perpetual financial instrument. We analyzed the instrument under EITF D-109 Determining the Nature of a Host Contract Related to a Hybrid Financial Instrument Issued in the Form of a Share under FASB Statement 133 (ASC 815) to determine if the host preferred stock is more akin to an equity instrument or a debt instrument in terms of their economic characteristics and risks. The Company concluded that the Series A Preferred is more akin to an equity instrument. The Company further analyzed the instrument under EITF D-98 Classification and Measurement of Redeemable Securities (ASC 480-10) and concluded that because the instrument is not redeemable for cash, it does not require classification in the mezzanine section of the financial statements.  

The Company previously issued seven shares of its preferred stock. The Company and the preferred shareholders have agreed to amend the preferred shareholder agreements so that each share of preferred stock has the right to convert into 214,286 shares of the Company’s common stock and receive a 1% share of any artifacts found at the Church Hollow Site. As of September 30, 2014, no shares of preferred stock had been converted into shares of the Company’s common stock.

Series B Preferred Stock

On February 10, 2014, the Board of Directors of the Company under the authority granted under Article V of the Articles of Incorporation, defined and created a new preferred series of shares from the 50,000,000 authorized preferred shares. Pursuant to Article V, the Board of Directors has the power to designate such shares and all powers and matters concerning such shares. Such share class shall be designated Preferred Class B. The preferred class was created for 60 Preferred Class B shares. Such shares each have a voting power equal to one percent of the outstanding shares issued (totaling 60%) at the time of any vote action as necessary for share votes under Florida law, with or without a shareholder meeting.  Such shares are non-convertible to common shares of the Company and are not considered as convertible under any accounting measure. Such shares shall only be held by the Board of Directors as a Corporate body, and shall not be placed into any individual name. Such shares were considered issued at the time of this resolution’s adoption, and do not require a stock certificate to exist, unless selected to do so by the Board for representational purposes only.  Such shares are considered for voting as a whole amount, and shall be voted for any matter by a majority vote of the Board of Directors. Such shares shall not be divisible among the Board members, and shall be voted as a whole either for or against such a vote upon the vote of the majority of the Board of Directors. In the event that there is any vote taken which results in a tie of a vote of the Board of Directors, the vote of the Chairman of the Board shall control the voting of such shares. Such shares are not transferable except in the case of a change of control of the Corporation when such shares shall continue to be held by the Board of Directors. Such shares have the authority to vote for all matters that require a share vote under Florida law and the Articles of Incorporation.  

XML

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2008
Accounting Policies [Abstract]
Diving vessel purchase price	$ 325,000
Diving vessel, estimated useful life	10 years
Generator purchase price	$ 7,450
Generator usefule life	5 years

XML

MATERIAL AGREEMENTS (Details Narrative) (USD $)	3 Months Ended
	Sep. 30, 2014	Mar. 01, 2014	Feb. 28, 2013	Jun. 08, 2010	Apr. 30, 2014 April 2014 Consulting Agreement	Jul. 31, 2014 July 31 Corporate Consulting Agreement	Jul. 31, 2014 July 31 Individual Consulting Agreement
Payment of its restricted common stock			2,000,000
Yearly conservation payment agreement to Tulco				$ 20,000
Restricted shares of common stock issued consultant for services	1,103,448		2,000,000
Payment per month to the consultant under original agreement			3,000
Restricted shares issued to related party consultant	500,000
Restricted shares issued to related party consultant (B)	3,200,000
Owed to related party LLC	5,819
Outstanding debt related to legal fees	7,683
Shares issued to vendor for outstanding debt	768,293
Vendor entitled to common stock, until debt is paid in full, Shares	700,000
Minimum payment per month to CFO	5,000
Ongoing aggreement for monthly bookkeeping services	500
Additional payment for bookkeeping services, value of restricted stock	$ 5,000
Percent entitled to Seafarer of Breward County Shipwreck		60.00%
Percent ownership of Quest, LLC		0.50
Common stock authorized for payments					600,000
Resitricted common stock issued					210,000
Common stock authorized for payments					3,425,000	1,500,000	100,000
Resitricted common stock issued					300,000

XML

SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Fair value of derivative liability

	Level 1		Level 2		Level 3		Total
Fair value of derivative liability	$	-	$	-	$	544,820	$	544,820