0001199835-15-000559.txt : 20151130 0001199835-15-000559.hdr.sgml : 20151130 20151130150247 ACCESSION NUMBER: 0001199835-15-000559 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20150930 FILED AS OF DATE: 20151130 DATE AS OF CHANGE: 20151130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEAFARER EXPLORATION CORP CENTRAL INDEX KEY: 0001106213 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 731556428 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-29461 FILM NUMBER: 151259721 BUSINESS ADDRESS: STREET 1: 14497 N. DALE MABRY HIGHWAY STREET 2: SUITE 209N CITY: TAMPA STATE: FL ZIP: 33618 BUSINESS PHONE: 813-448-3577 MAIL ADDRESS: STREET 1: 14497 N. DALE MABRY HIGHWAY STREET 2: SUITE 209N CITY: TAMPA STATE: FL ZIP: 33618 FORMER COMPANY: FORMER CONFORMED NAME: Organetix DATE OF NAME CHANGE: 20040902 FORMER COMPANY: FORMER CONFORMED NAME: DIAMOND INTERNATIONAL GROUP INC/NY/ DATE OF NAME CHANGE: 20000725 FORMER COMPANY: FORMER CONFORMED NAME: SEGWAY I CORP DATE OF NAME CHANGE: 20000210 10-Q/A 1 seafarer_10qa-16681.htm SEAFARER EXPLORATION CORP. 09/30/2015 10-Q/A, AMENDMENT NO. 1 seafarer_10qa-16681.htm

 
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, 2015
 
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 18, 2015, there were 1,263,937,280 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, 2015, filed with the Securities and Exchange Commission on November 23, 2015 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 30 , 2015
By:
/s/ Kyle Kennedy
   
Kyle Kennedy
President, Chief Executive Officer, and Chairman of the Board
(Principal Executive Officer and Principal Accounting Officer)

 
Date: November 30 , 2015
By:
/s/ Charles Branscum
   
Charles Branscum, Director

 
Date: November 30 , 2015
By:
/s/ Robert L. Kennedy
   
Robert L. Kennedy, Director

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
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xbrli:shares iso4217:USD xbrli:shares xbrli:pure utr:sqft SEAFARER EXPLORATION CORP 0001106213 10-Q/A 2015-09-30 true --12-31 No No Yes Smaller Reporting Company The purpose of this amendment on form 10-Q to Seafarer Exploration Corp's Quarterly Report for the period ended September 30, 2015, filed with the Securities and Exchange Commission on November 23, 2015 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. 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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&#146;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 established that it will seek the entry of 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 now working with the State for the renewed permit to be in Seafarer&#146;s name and rights only, with Tulco removed per the Order of the Court. On March 4, 2015, the Court awarded full rights to the Juno sight to Seafarer Exploration, erasing all rights of Tulco Resources. The company is currently filing an Admiralty Claim over such sight as well in the United States District Court. &#160; &#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 3, 2014, the Company filed a lawsuit against Darrel Volentine, of California. Mr. Volentine was sued in two counts of libel per se under Florida law, as well as a count for injunction against the Defendant to exclude and prohibit internet postings. 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3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Dec. 31, 2014
Total convertible notes issued   $ 109,000  
Interest on note payable   6.00%  
Interest Expense $ 37,917 $ 97,844  
Accrued interest 111,168 111,168 $ 91,167
Convertible notes payable total 75,000 75,000  
Loan outstanding to related party $ 2,920 $ 2,920  
Loan payable, Interest rate 0.00% 0.00%  
Derivative loss   $ 166,771  
Repayment on notes   $ 52,000 $ 20,000
Conversion price     $ 35,000
Notes converted into shares of common stock   22,531,030 9,956,709
Convertible notes payable, fair value $ 203,766 $ 203,766 $ 761,677
Increase amount of interest on notes payable   24.00%  
Notes Issued Apr 24, 2014      
Convertible notes payable total $ 107,000 $ 107,000  
Loan payable, Interest rate 12.00% 12.00%  
Original issue discount of note payable $ 7,000 $ 7,000  
Variable conversion price 60.00% 60.00%  
Derivative loss   $ 166,771  
Loss on derivative financial instrument $ 166,771 $ 166,771  
Conversion price $ 52,000 $ 52,000  
Notes converted into shares of common stock   22,531,030  
Notes Issued Aug 21, 2014      
Convertible notes payable total $ 40,000 $ 40,000  
Loan payable, Interest rate 8.00% 8.00%  
Variable conversion price 57.00% 57.00%  
Derivative loss   $ 34,971  
Loss on derivative financial instrument $ 34,971 $ 34,971  
Notes converted into shares of common stock   18,601,734  
Notes Issued Sep 8, 2014      
Convertible notes payable total $ 53,500 $ 53,500  
Loan payable, Interest rate 12.00% 12.00%  
Original issue discount of note payable $ 3,500 $ 3,500  
Variable conversion price 60.00% 60.00%  
Derivative loss   $ 42,080  
Loss on derivative financial instrument $ 42,080 $ 42,080  
Notes converted into shares of common stock   23,900,625  
Notes Issued Nov 5, 2014      
Convertible notes payable total $ 53,000 $ 53,000  
Loan payable, Interest rate 8.00% 8.00%  
Variable conversion price 65.00% 65.00%  
Derivative loss   $ 22,057  
Repayment on notes   $ 12,000  
Notes converted into shares of common stock   15,980,220  
Face value of convertible note $ 53,000 $ 53,000  
Convertible notes payable, fair value 91,047 91,047  
Notes Issued Dec 17, 2014      
Convertible notes payable total $ 43,000 $ 43,000  
Loan payable, Interest rate 8.00% 8.00%  
Variable conversion price 65.00% 65.00%  
Derivative loss   $ 40,980  
Loss on derivative financial instrument $ 40,980 $ 40,980  
Notes converted into shares of common stock   18,650,000  
Face value of convertible note 28,000 $ 28,000  
Convertible notes payable, fair value 44,889 44,889  
Notes Issued Aug 28, 2015      
Convertible notes payable total $ 44,000 $ 44,000  
Loan payable, Interest rate 12.00% 12.00%  
Original issue discount of note payable $ 4,000 $ 4,000  
Variable conversion price 62.00% 62.00%  
Loss on derivative financial instrument $ 32,210 $ 32,210  
Market capitalization, maximum   $ 1,000,000  
Market capitalization, maximum conversion price   25.00%  
Conversion price, maximun   $ .00075  
Notes Issued Sept 3, 2015      
Convertible notes payable total $ 38,500 $ 38,500  
Loan payable, Interest rate 12.00% 12.00%  
Variable conversion price 65.00% 65.00%  
Derivative loss   $ 29,789  
Face value of convertible note $ 38,500 38,500  
Convertible notes payable, fair value 73,726 73,726  
Eligible credit under note 200,000 200,000  
Potential proceeds received   180,000  
Notes Issued Sept 8, 2015      
Convertible notes payable total $ 27,000 $ 27,000  
Loan payable, Interest rate 8.00% 8.00%  
Variable conversion price 65.00% 65.00%  
Derivative loss   $ 16,690  
Face value of convertible note $ 27,000 27,000  
Convertible notes payable, fair value $ 47,524 $ 47,524  
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INCOME TAXES (Details Narrative) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]    
Net tax operating loss $ 10,911,000 $ 10,175,000
XML 12 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 13 R25.htm IDEA: XBRL DOCUMENT v3.3.0.814
DESCRIPTION OF BUSINESS (Details Narrative) - shares
1 Months Ended 9 Months Ended
Jan. 31, 2015
Sep. 30, 2015
Exchange rate of shares 15,734,068  
Organetix    
Exchange rate of shares   131,243,235
XML 14 R42.htm IDEA: XBRL DOCUMENT v3.3.0.814
LEGAL PROCEEDINGS (Details Narrative) - USD ($)
Oct. 30, 2013
Apr. 05, 2011
Dec. 11, 2009
Oct. 08, 2008
Commitments and Contingencies Disclosure [Abstract]        
Amount loss of the lawsuit     $ 1,041,000  
Shares issued to counsel for Seafarer 1,000,000      
Compensatory damages   $ 5,080,000    
Shares gifted by Micah Eldred       34,700,000
Shares kept by Eldred       4,140,000
XML 15 R37.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Notes Payable (Details)
9 Months Ended
Sep. 30, 2015
USD ($)
Notes payable, in default, Total $ 30,000
TOTAL NOTES PAYABLE $ 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
Notes payable, in default –related parties, Interest rate 6.00%
Notes Issued Jun 23, 2011  
Notes payable, in default, Maturity date Aug. 03, 2011
Notes payable, in default $ 25,000
Notes payable, in default, Interest rate 6.00%
Notes Issued Apr 27, 2011  
Notes payable, in default, Maturity date Apr. 27, 2012
Notes payable, in default $ 5,000
Notes payable, in default, Interest rate 6.00%
XML 16 R9.htm IDEA: XBRL DOCUMENT v3.3.0.814
LOSS PER SHARE
9 Months Ended
Sep. 30, 2015
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, 2015 and 2014 are as follows:

                                                                                                                

   

For the Three Months Ended

September 30, 2015

   

For the Three Months Ended

September 30, 2014

 
Net loss attributable to common stockholders   $ (326,116 )   $ (529,724 )
                 
Weighted average shares outstanding:                
Basic and diluted     1,193,601,601       919,710,681  
                 
Loss per share:                
Basic and diluted   $ (0.00 )   $ (0.00 )

                                                                                               

Components of loss per share for the nine months ended September 30, 2015 and 2014 are as follows:

 

   

For the Nine Months Ended

September 30, 2015

   

For the Nine Months Ended

September 30, 2014

 
Net loss attributable to common stockholders   $ (736,738 )   $ (1,572,977 )
                 
Weighted average shares outstanding:                
Basic and diluted     1,120,925,906       890,886,099  
                 
Loss per share:                
Basic and diluted   $ (0.00 )   $ (0.00 )

 

                                                                

XML 17 R43.htm IDEA: XBRL DOCUMENT v3.3.0.814
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
1 Months Ended 9 Months Ended
Apr. 30, 2015
Mar. 31, 2015
Feb. 28, 2015
Jan. 31, 2015
Sep. 30, 2015
Aug. 30, 2015
Jul. 30, 2015
Jul. 14, 2015
May. 31, 2015
Dec. 31, 2014
Oct. 16, 2014
Jul. 21, 2014
May. 27, 2014
Jan. 17, 2014
Jul. 26, 2013
Jan. 19, 2013
Jan. 18, 2012
Feb. 24, 2010
Jan. 25, 2010
Jan. 09, 2009
Short term loan from related party shareholder         $ 2,920                              
Payment of restricted common stock 11,000,000                                      
Interest free loan $ 2,920 $ 2,920 $ 2,920   3,920                              
Convertible note payable, amount             $ 9,000 $ 9,000     $ 21,000 $ 17,000 $ 7,000 $ 31,500 $ 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% 8.00% 6.00% 6.00% 10.00%
Convertible note payable, common stock price per share             $ .003 $ 0.0045     $ 0.0045 $ 0.008 $ 0.007 $ 0.006 $ 0.01 $ 0.004 $ 0.004   $ 0.005 $ 0.015
Payment to related party consultant per month         $ 3,000                              
Outstanding debt related to legal fees       $ 62,936                                
Shares issued to vendor for outstanding debt       15,734,068                                
Vendor entitled to common stock, until debt is paid in full, Shares       5,000,000                                
Subscription agreement, shares       350,000         5,000,000                      
Subscription agreement, price per share       $ 0.0032         $ .0032                      
Subscription agreement, proceeds received       $ 1,120         $ 16,000                      
Warrants issued         47,345,834       5,000,000                      
Warrants, exercise price                 $ .005                      
Payment to transfer agency         $ 22,756                              
Agreement #1                                        
Payment of restricted common stock                   8,000,000                    
Subscription agreement, shares           2,000,000                            
Subscription agreement, price per share           $ .002                            
Subscription agreement, proceeds received           $ 4,000                            
Warrants issued           2,000,000                            
Warrants, exercise price           $ .005                            
Agreement #2                                        
Payment of restricted common stock                   6,000,000                    
Subscription agreement, shares           750,000                            
Subscription agreement, price per share           $ .002                            
Subscription agreement, proceeds received           $ 1,500                            
Warrants issued           750,000                            
Warrants, exercise price           $ .01                            
XML 18 R29.htm IDEA: XBRL DOCUMENT v3.3.0.814
LOSS PER SHARE - Components of loss per share (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]        
Net loss attributable to common stockholders $ (326,116) $ (529,724) $ (7,736,738) $ (1,572,977)
Weighted average shares outstanding:        
Basic and diluted 1,193,601,601 919,710,681 1,120,925,906 890,886,099
Loss per share:        
Basic and diluted $ (0.00) $ 0.00 $ 0.00 $ 0.00
XML 19 R28.htm IDEA: XBRL DOCUMENT v3.3.0.814
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Accounting Policies [Abstract]        
Depreciation expense $ 8,496 $ 8,496 $ 25,488 $ 25,488
XML 20 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
CAPITAL STOCK - Warrants and Options (Details) - $ / shares
Sep. 30, 2015
May. 31, 2015
Warrants issued 47,345,834 5,000,000
April 20, 2015 to November 20, 2015    
Warrants issued 10,000,000  
Warrants, Exercise Price $ .0050  
May 08, 2015 to May 8, 2016    
Warrants issued 1,562,500  
Warrants, Exercise Price $ 0.0050  
May 11, 2015 to November11, 2016    
Warrants issued 5,000,000  
Warrants, Exercise Price $ 0.0050  
June 8, 2015 to December 8, 2016    
Warrants issued 10,000,000  
Warrants, Exercise Price $ .0032  
June 16, 2015 to December 16, 2016    
Warrants issued 2,000,000  
Warrants, Exercise Price $ .0050  
June 29, 2015 to December 29, 2015    
Warrants issued 8,333,334  
Warrants, Exercise Price $ .0050  
July 8, 2015 to January 8, 2017    
Warrants issued 700,000  
Warrants, Exercise Price $ 0.0050  
July 14, 2015 to January 14, 2017    
Warrants issued 3,000,000  
Warrants, Exercise Price $ 0.0050  
August 1, 2015 to August 1, 2016    
Warrants issued 2,000,000  
Warrants, Exercise Price $ 0.0050  
August 19, 2015 to February 19, 2017    
Warrants issued 750,000  
Warrants, Exercise Price $ 0.0100  
September 18, 2015 to September 18, 2020    
Warrants issued 4,000,000  
Warrants, Exercise Price $ 0.0030  
XML 21 R31.htm IDEA: XBRL DOCUMENT v3.3.0.814
CAPITAL STOCK (Details Narrative) - $ / shares
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Feb. 10, 2014
Common stock, shares authorized 1,500,000,000 1,200,000,000  
Common stock, par value $ 0.0001 $ 0.0001  
Authorized preferred shares 50,000,000 50,000,000  
Warrants      
Common stock, shares authorized 4,000,000    
Exercise price $ 0.005    
Series A      
Common stock, par value $ .0001    
Authorized preferred shares 50,000    
Shares of common stock from the conversion of each share of preferred stock 214,289    
Percent of any found artifacts found 1.00%    
Series B      
Authorized preferred shares     50,000,000
Preferred shares created     60
Voting power total     60.00%
XML 22 R8.htm IDEA: XBRL DOCUMENT v3.3.0.814
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2015
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.

 

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, 2015 and 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, 2015 and 2014.

 

Fair Value of Financial Instruments

 

Fair value measurements are determined by the Company's adoption of authoritative guidance issued by the FASB, with the exception of the application of the statement to non-recurring, non-financial assets and liabilities, as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

  Level 1 – Valuation based on unadjusted quoted market prices in active markets for identical assets or liabilities.
     
  Level 2 – Valuation based on, observable inputs (other than level one prices), quoted market prices for similar assets such as at the measurement date; quoted prices in the market that are not active; or other inputs that are observable, either directly or indirectly.
     
  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.

 

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.  The Company’s 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 the Company’s derivative liability is determined using Level 1 inputs, which consider (i) time value, (ii) current market and (iii) contractual prices.

 

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, receivables, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments.

 

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 September 30, 2015:

 

    Level 1     Level 2     Level 3     Total  
Fair value of derivative liability   $ 203,766     $ -     $ -     $ 203,766  
                                 

 

Property and Equipment 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. Property and equipment, net consist of the following at September 30, 2015 and December 31, 2014:

 

    September 30, 2015     December 31, 2014  
Diving vessel   $ 325,000     $ 325,000  
Generator     7,420       7,420  
Less accumulated depreciation     (261,653 )     (236,165 )
    $ 70,767     $ 96,255  

 

Depreciation expense for the nine month period ended September 30, 2015 and 2014 amounted to $25,488.

 

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, 2015 and 2014.

 

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, 2015 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, board of directors, business consulting, corporate advisory, accounting, research, 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.

XML 23 R32.htm IDEA: XBRL DOCUMENT v3.3.0.814
INCOME TAXES - Schedule of Effective Income Tax Rate (Details)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
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 24 R40.htm IDEA: XBRL DOCUMENT v3.3.0.814
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 25 R2.htm IDEA: XBRL DOCUMENT v3.3.0.814
Condensed Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 3,601 $ 12,424
Prepaid expenses $ 63,122 29,991
Settlement receivable 18,000
Deposits and other receivables $ 1,183 1,183
Total current assets 67,906 61,598
Property and equipment, net 70,767 96,255
Total Assets 138,673 157,853
Current liabilities:    
Accounts payable and accrued expense 204,167 191,967
Convertible notes payable, net of discounts of $62,083 and $14,148 37,917 10,852
Convertible notes payable, related parties, net of discounts of $-0- and $15,064 9,000 22,936
Convertible notes payable, in default 366,300 341,300
Convertible notes payable, in default - related parties 167,500 129,500
Convertible notes payable, at fair value 203,766 761,677
Shareholder loan 2,920 3,500
Notes payable, in default 30,000 30,000
Notes payable, in default - related parties 7,500 7,500
Total current liabilities $ 1,029,070 $ 1,499,232
Stockholders' deficit:    
Preferred stock, $0.0001 par values - 50,000,000 shares authorized; 67 shares issued; Series A - 7 shares issued and outstanding at September 30, 2015 and December 31, 2014; Series B - 60 shares issued and outstanding at September 30, 2015 and December 31, 2014
Common stock, $0.0001 par value - 1,200,000,000 shares authorized; 1,253,702,348 and 986,356,130 shares issued and outstanding at September 30, 2015 and December 31, 2014 $ 125,370 $ 98,636
Additional paid-in capital 9,895,592 8,734,606
Accumulated deficit (10,911,359) (10,174,621)
Total stockholders' deficit (890,397) (1,341,379)
Total liabilities and stockholders' deficit $ 138,673 $ 157,853
Series A    
Stockholders' deficit:    
Preferred stock, $0.0001 par values - 50,000,000 shares authorized; 67 shares issued; Series A - 7 shares issued and outstanding at September 30, 2015 and December 31, 2014; Series B - 60 shares issued and outstanding at September 30, 2015 and December 31, 2014
Series B    
Stockholders' deficit:    
Preferred stock, $0.0001 par values - 50,000,000 shares authorized; 67 shares issued; Series A - 7 shares issued and outstanding at September 30, 2015 and December 31, 2014; Series B - 60 shares issued and outstanding at September 30, 2015 and December 31, 2014
XML 26 R6.htm IDEA: XBRL DOCUMENT v3.3.0.814
DESCRIPTION OF BUSINESS
9 Months Ended
Sep. 30, 2015
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.

 

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 27 R35.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Convertible Notes Payable (Details) - USD ($)
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Convertible notes payable, Interest rate 0.00%  
Convertible notes payable, Conversion rate   $ 35,000
Convertible notes payable, Unamortized discount $ 62,333  
Convertible notes payable, Total 12,667  
Convertible notes payable, in default, Total 366,300  
Convertible notes payable - related parties, in default, Total $ 167,500  
Notes Issued April 20, 2015    
Convertible notes payable, Maturity date Apr. 20, 2016  
Convertible notes payable $ 50,000  
Convertible notes payable, Interest rate 6.00%  
Convertible notes payable, Conversion rate $ .00320  
Notes Issued June 29, 2015    
Convertible notes payable, Maturity date Dec. 29, 2015  
Convertible notes payable $ 25,000  
Convertible notes payable, Interest rate 6.00%  
Convertible notes payable, Conversion rate $ 0.00300  
Notes Issued Oct 31, 2012    
Convertible notes payable, in default, Maturity date Apr. 30, 2013  
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 Jul. 30, 2013  
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 May 20, 2013  
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 Jul. 30, 2013  
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 Aug. 11, 2013  
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 Mar. 25, 2014  
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 Nov. 01, 2009  
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 Nov. 07, 2010  
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 Nov. 07, 2011  
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 Apr. 04, 2014  
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 Oct 30, 2013    
Convertible notes payable, in default, Maturity date Oct. 30, 2014  
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 May 15, 2014    
Convertible notes payable, in default, Maturity date Nov. 15, 2014  
Convertible notes payable, in default $ 40,000  
Convertible notes payable, in default, Interest rate 6.00%  
Convertible notes payable, in default, Conversion rate $ 0.0070  
Notes Issued Oct 13, 2014    
Convertible notes payable, Maturity date Apr. 13, 2015  
Convertible notes payable $ 25,000  
Convertible notes payable, Interest rate 6.00%  
Convertible notes payable, Conversion rate $ 0.0050  
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 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 May 27, 2014    
Convertible notes payable - related parties, in default, Maturity date Nov. 27, 2014  
Convertible notes payable - related parties, in default $ 7,000  
Convertible notes payable - related parties, in default, Interest rate 6.00%  
Convertible notes payable - related parties, in default, Conversion rate $ 0.0070  
Notes Issued Jul 21, 2014    
Convertible notes payable - related parties, in default, Maturity date Jan. 25, 2015  
Convertible notes payable - related parties, in default $ 17,000  
Convertible notes payable - related parties, in default, Interest rate 6.00%  
Convertible notes payable - related parties, in default, Conversion rate $ 0.0080  
Notes Issued Oct 16, 2014    
Convertible notes payable - related parties, in default, Maturity date Oct. 22, 2014  
Convertible notes payable - related parties, in default $ 21,000  
Convertible notes payable - related parties, in default, Interest rate 6.00%  
Convertible notes payable - related parties, in default, Conversion rate $ 0.0045  
XML 28 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
CAPITAL STOCK - Warrants and Options (Tables)
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
Warrants issued

April 20, 2015 to November 20, 2015     10,000,000     $ 0.0050  
May 08, 2015 to May 8, 2016     1,562,500     $ 0.0050  
May 11, 2015 to November11, 2016     5,000,000     $ 0.0050  
June 8, 2015 to December 8, 2016     10,000,000     $ 0.0032  
June 16, 2015 to December 16, 2016     2,000,000     $ 0.0050  
June 29, 2015 to December 29, 2015     8,333,334     $ 0.0050  
July 8, 2015 to January 8, 2017     700,000     $ 0.0050  
July 14, 2015 to January 14, 2017     3,000,000     $ 0.0050  
August 1, 2015 to August 1, 2016     2,000,000     $ 0.0050  
August 19, 2015 to February 19, 2017     750,000     $ 0.0100  
September 18, 2015 to September 18, 2020     4,000,000     $ 0.0030  
      47,345,834          

XML 29 R36.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE - Aggregate allocation of Notes Payable (Details)
9 Months Ended
Sep. 30, 2015
USD ($)
Debt Disclosure [Abstract]  
Face value of convertible notes payable $ 109,000
Beneficial conversion feature and warrants (62,083)
Carrying value $ 37,917
XML 30 R24.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE (Tables)
9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Convertible Notes Payable

Issue Maturity   September 30,     Interest     Conversion  
Date Date   2015     Rate     Rate  
Convertible notes payable:                    
April 20, 2015 April 20, 2016   $ 50,000       6.00 %     0.00320  
June 29, 2015 December 29, 2015     25,000       6.00 %     0.00300  
September 18, 2015 March 18, 2016     25,000       6.00 %     0.00200  
Unamortized discounts       62,083                  
Balance     $ 37,917                  

 

Convertible notes payable – related party                    
July 14, 2015 January 14, 2016   $ 9,000       6.00 %     0.00300  
                           
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  
October 30, 2013 October 30, 2014     50,000       6.00 %     0.0125  
May 15, 2014 November 15, 2014     40,000       6.00 %     0.0070  
October 13, 2014 April 13, 2015     25,000       6.00 %     0.0050  
Balance     $ 366,300                  
                           
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       6.00 %     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  
May 27, 2014 November 27, 2014     7,000       6.00 %     0.0070  
July 21, 2014 January 25, 2015     17,000       6.00 %     0.0080  
October 16, 2014 April 16, 2015     21,000       6.00 %     0.0045  
Balance     $ 167,500                  

 

Aggregate allocation of Notes Payable

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

 

Face value of convertible notes payable   $ 109,000  
         
Beneficial conversion feature and warrants     (62,083 )
         
Carrying value   $ 37,917  

 

Notes Payable

 

Issue Date

Maturity Date   September 30, 2015     Interest Rate  
Notes payable, in default –related parties:        
February 24, 2010 February 24, 2011   $ 7,500       6.00 %
                   
Notes payable, in default:                
June 23, 2011 August 23, 2011     25,000       6.00 %
April 27, 2011 April 27, 2012     5,000       6.00 %
        30,000          
                   
      $ 37,500          

Summary of effect on earnings

Face value of the convertible notes payable   $ 109,500  
Interest expense to record the convertible notes at        
fair value on the date of issuance     78,689  
Interest income to mark to market the convertible notes on September 30, 2015     15,577  
September 30, 2015 fair value   $ 203,766  

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GOING CONCERN
9 Months Ended
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN

NOTE 2 - GOING CONCERN

 

These 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. The Company has incurred net losses since inception, which raises substantial doubt about the Company’s ability to continue as a going concern. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from, November 20, 2015. Management's plans include raising capital through the equity markets to fund operations and, eventually, the generation 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 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 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.

 

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements.  The 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 financial statements.

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Condensed Balance Sheets (Parenthetical) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Discounts on convertible notes payable $ 62,083 $ 14,148
Discounts on convertible notes payable, related parties $ 0 $ 15,604
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 67 67
Preferred Stock, shares outstanding 67 67
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 1,500,000,000 1,200,000,000
Common stock, shares issued 1,253,702,348 986,356,130
Common Stock, shares outstanding 1,253,702,348 986,356,130
Series A    
Preferred stock, shares authorized 50,000  
Preferred stock, shares issued 7 7
Preferred Stock, shares outstanding 7 7
Common stock, par value $ .0001  
Series B    
Preferred stock, shares issued 60 60
Preferred Stock, shares outstanding 60 60
XML 34 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTY TRANSACTIONS

 

During the three month period ended September 30, 2015 :

 

In July of 2015, the Company entered into a convertible promissory note agreement in the amount of $9,000 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 14, 2016. 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 $0.003 per share.  

 

In August of 2015, an individual who is related to the Company’s CEO entered into a subscription agreement to purchase 2,000,000 shares of the Company’s restricted common stock at a price of $0.002 per share and the Company received proceeds of $4,000. Under the subscription agreement the related party investor received a warrant to purchase 2,000,000 shares of the Company’s common stock at a price of 0.005 for a period of one year from the execution date of the subscription agreement.

 

In August of 2015, an individual who is related to the Company’s CEO entered into a subscription agreement to purchase 750,000 shares of the Company’s restricted common stock at a price of $0.002 per share and the Company received proceeds of $1,500. Under the subscription agreement the related party investor received a warrant to purchase 750,000 shares of the Company’s common stock at a price of 0.01 for a period of eighteen months form the execution date of the subscription agreement.

 

Additional information :

 

In January of 2015, an individual who is related to the Company’s CEO entered into a subscription agreement to purchase 350,000 shares of the Company’s restricted common stock at a price of $0.0032 per share and the Company received proceeds of $1,120.

 

In January of 2015, the Company extended the term of a previous 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 8,000,000 restricted shares of its common stock and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. A portion of the 8,000,000 shares are included as an expense in consulting and contractor fees in the accompanying income statement and the remainder of the shares are going to be expensed over a twelve month period, these shares are included in the accompanying balance sheet as a prepaid expense.

 

In January of 2015, the Company extended the term of a previous 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 6,000,000 restricted shares of its common stock and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. A portion of the 6,000,000 shares are included as an expense in consulting and contractor fees in the accompanying income statement and the remainder of the shares are going to be expensed over a twelve month period, these shares are included in the accompanying balance sheet as a prepaid expense.

 

In February, March and April of 2015, a related party shareholder provided an interest free loan to the Company in the amount of $2,920. As of September 30, 2015, the loan balance outstanding to the related party shareholder was $2,920.

 

In May of 2015, an individual who is related to the Company’s CEO entered into a subscription agreement to purchase 5,000,000 shares of the Company’s restricted common stock at a price of $0.0032 per share and the Company received proceeds of $16,000. The related party also received a warrant to purchase 5,000,000 shares of the Company’s common stock at a price of $0.005 for a period of eighteen months from the execution date of the subscription agreement.

 

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, 2015, the Company owed the related party limited liability company $22,756 for transfer agency services rendered. The amount owed as of September 30, 2015 is included in the accompanying balance sheet under accrued payable and accrued expenses. In January 2015, the Company entered into a separate debt settlement agreement with the related party vendor to settle a total of $62,936 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 15,734,068 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 $62,936 from the sale of the stock, then the consultant is entitled to receive up to an additional 5,000,000 shares of common stock or a cash payment until the balance is paid in full. The related party limited liability company has also provided various corporate consulting, strategic planning and training under a separate consulting agreement that was entered into in March of 2014. All fees paid to the related party consultant during the period ended September 30, 2015 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

 

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, 2015 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

 

At September 30, 2015 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 note 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 were 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 note 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 note 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 was 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 was 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, 2015 and is not secured. The note is currently in default due to non-payment of principal and interest.

 

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 was due on or before November 27, 2014 and is not secured. The note is currently in default due to non-payment of principal and interest.

 

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 was 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 October 16, 2014 due to a person related to the Company’s CEO with a face amount of $21,000. 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 $0.0045 per share.  The convertible note payable was due on or before April 16, 2015 and is not secured.  The note is currently in default due to non-payment of principal and interest.

 

A convertible note payable dated July 14, 2015 due to a person related to the Company’s CEO with a face amount of $9,000. 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 $0.0045 per share.  The convertible note payable was due on or before January 14, 2016 and is not secured.  

 

A loan in the amount of $2,920 to a related party shareholder. This loan does not bear interest and has no specific repayment terms.

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Document and Entity Information - shares
9 Months Ended
Sep. 30, 2015
Nov. 18, 2015
Document And Entity Information    
Entity Registrant Name SEAFARER EXPLORATION CORP  
Entity Central Index Key 0001106213  
Document Type 10-Q/A  
Document Period End Date Sep. 30, 2015  
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   1,263,937,280
Amendment Description The purpose of this amendment on form 10-Q to Seafarer Exploration Corp's Quarterly Report for the period ended September 30, 2015, filed with the Securities and Exchange Commission on November 23, 2015 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 2015  
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SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2015
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 13 – SUBSEQUENT EVENTS

 

None.

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Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]        
Revenue
Expenses:        
Consulting and contractor expenses $ 125,787 $ 199,480 $ 479,834 $ 568,343
Professional fees 12,375 43,517 62,754 118,864
General and administrative expenses 3,290 13,134 109,093 34,214
Depreciation expense 8,496 8,496 25,488 25,488
Rent expense 12,799 6,418 40,901 15,558
Vessel expenses 14,431 30,428 41,223 72,197
Travel and entertainment 13,711 46,332 50,044 112,788
Total operating expenses 190,889 347,805 809,337 947,452
Loss from operations (190,889) (347,805) (809,337) (947,452)
Other income (expense)        
Interest income (expense), net $ (135,227) (180,819) $ 72,559 (624,425)
Loss on impairment (1,100) (1,100)
Total other income (expense) $ (135,227) (181,919) $ 72,559 (625,525)
Net loss $ (326,116) $ (529,724) $ (736,778) $ (1,572,977)
Net loss per share - basic and diluted
Weighted average common shares outstanding - basic and diluted 1,193,601,601 919,710,681 1,120,925,906 890,886,099

XML 39 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
LEASE OBLIGATION
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
LEASE OBLIGATION

NOTE 7 - LEASE OBLIGATION

 

Corporate 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 commencing on July 1, 2015 through June 30, 2017. Under the amended lease agreement the base monthly rent is $1,215 from July 1, 2015 through June 30, 2016 and $1,251 from July 1, 2016 to June 30, 2017.  There may be additional monthly charges for pro-rated maintenance, late fees, etc.

 

Operations House

 

The Company has an operating lease for a house located in Palm Bay, Florida. The Company uses the house to store equipment and gear and to provide temporary work-related living quarters for its divers, personnel, consultants and independent contractors involved in its exploration and recovery operations. The term of the lease agreement commenced on October 1, 2015 and expires on October 31, 2016.  The Company pays $1,300 per month to lease the operations house.

XML 40 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
INCOME TAXES
9 Months Ended
Sep. 30, 2015
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, 2015     For the Nine Months Ended September 30, 2014  
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, 2015 and December 31, 2014, the Company’s only significant deferred income tax asset was an estimated net tax operating loss of $10,911,000 and $10,175,000 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, 2015 and December 31, 2014. 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 41 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
INCOME TAXES (Tables)
9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate

    For the Nine Months Ended September 30, 2015     For the Nine Months Ended September 30, 2014  
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 42 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
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, 2015 and 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, 2015 and 2014.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

Fair value measurements are determined by the Company's adoption of authoritative guidance issued by the FASB, with the exception of the application of the statement to non-recurring, non-financial assets and liabilities, as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

  Level 1 – Valuation based on unadjusted quoted market prices in active markets for identical assets or liabilities.
     
  Level 2 – Valuation based on, observable inputs (other than level one prices), quoted market prices for similar assets such as at the measurement date; quoted prices in the market that are not active; or other inputs that are observable, either directly or indirectly.
     
  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.

 

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.  The Company’s 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 the Company’s derivative liability is determined using Level 1 inputs, which consider (i) time value, (ii) current market and (iii) contractual prices.

 

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, receivables, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments.

 

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 September 30, 2015:

 

    Level 1     Level 2     Level 3     Total  
Fair value of derivative liability   $ 203,766     $ -     $ -     $ 203,766  
                                 

 

Property and Equipment and Depreciation

Property and Equipment 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. Property and equipment, net consist of the following at September 30, 2015 and December 31, 2014:

 

    September 30, 2015     December 31, 2014  
Diving vessel   $ 325,000     $ 325,000  
Generator     7,420       7,420  
Less accumulated depreciation     (261,653 )     (236,165 )
    $ 70,767     $ 96,255  

 

Depreciation expense for the nine month period ended September 30, 2015 and 2014 amounted to $25,488.

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, 2015 and 2014.

 

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, 2015 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, board of directors, business consulting, corporate advisory, accounting, research, 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.

XML 43 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
DIVISION OF ARTIFACTS AND TREASURE
9 Months Ended
Sep. 30, 2015
Research and Development [Abstract]  
DIVISION OF ARTIFACTS AND TREASURE

NOTE 10 – DIVISON OF ARTIFACTS AND TREASURE

 

Under the previous 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 may 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.

 

The Company is currently in the process of trying to have the Juno Beach site permitted in its name only. 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 44 R13.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE
9 Months Ended
Sep. 30, 2015
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 three notes that have been remeasured to fair value which are discussed later in Note 8, as of September 30, 2015:

 

Issue Maturity   September 30,     Interest     Conversion  
Date Date   2015     Rate     Rate  
Convertible notes payable:                    
April 20, 2015 April 20, 2016   $ 50,000       6.00 %     0.00320  
June 29, 2015 December 29, 2015     25,000       6.00 %     0.00300  
September 18, 2015 March 18, 2016     25,000       6.00 %     0.00200  
Unamortized discounts       62,083                  
Balance     $ 37,917                  

 

Convertible notes payable – related party                    
July 14, 2015 January 14, 2016   $ 9,000       6.00 %     0.00300  
                           
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  
October 30, 2013 October 30, 2014     50,000       6.00 %     0.0125  
May 15, 2014 November 15, 2014     40,000       6.00 %     0.0070  
October 13, 2014 April 13, 2015     25,000       6.00 %     0.0050  
Balance     $ 366,300                  
                           
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       6.00 %     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  
May 27, 2014 November 27, 2014     7,000       6.00 %     0.0070  
July 21, 2014 January 25, 2015     17,000       6.00 %     0.0080  
October 16, 2014 April 16, 2015     21,000       6.00 %     0.0045  
Balance     $ 167,500                  

 

Between January 1, 2015 and September 30, 2015, the Company issued four (4) convertible notes payable totaling $109,000. The notes include 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   $ 109,000  
         
Beneficial conversion feature and warrants     (62,083 )
         
Carrying value   $ 37,917  

 

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, 2015, the Company recorded interest expense related to the amortization of debt discounts in the amount of approximately $37,917. The Company recognized interest expense totaling $97,844 during the nine months ended September 30, 2015. 

 

Notes Payable

 

The following table reflects the notes payable as of September 30, 2015:

 

 

Issue Date

Maturity Date   September 30, 2015     Interest Rate  
Notes payable, in default –related parties:        
February 24, 2010 February 24, 2011   $ 7,500       6.00 %
                   
Notes payable, in default:                
June 23, 2011 August 23, 2011     25,000       6.00 %
April 27, 2011 April 27, 2012     5,000       6.00 %
        30,000          
                   
      $ 37,500          

 

At September 30, 2015 and December 31, 2014, combined accrued interest on the convertible notes payable, notes payable and stockholder loans was $111,168 and $91,167, respectively, and included in accounts payable and accrued liabilities on the accompanying balance sheets.

 

 Between January 1, 2015 and September 30, 2015, the Company issued two new convertible notes payable with an aggregate face value of $75,000. Both of these notes are convertible into shares of the Company common stock at a fixed price per share.

 

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.

 

Shareholder Loan

 

At September 30, 2015 the Company had a loan outstanding to a related party shareholder in the amount of $2,920 at 0% interest and is due on demand.

 

Convertible Notes Payable at Fair Value

 

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 note payable, with a face value of $107,000, including $7,000 of original issue discount, 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.

 

During the year ended December 31, 2014, the Company repaid $20,000 of the principle and converted $35,000 of the note into 9,956,709 shares of common stock.

 

During the nine month period ended September 30, 2015, the remaining principal balance of $52,000 plus accrued interest was converted into 22,531,030 shares of common stock.   

 

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 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 $34,971 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 $34,971 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.

 

During the nine month period ended September 30, 2015, the note was converted into 18,601,734 shares of common stock.

 

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 note payable, with a face value of $53,500, including $3,500 of original issue discount, bears interest at 12.0% per annum and is due on September 8, 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 $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.

 

During the nine month period ended September 30, 2015, the note was converted into 23,900,625 shares of common stock.

 

Convertible Note Payable Dated November 5, 2014 at Fair Value

 

On November 5, 2014, the Company entered into a convertible note payable with a corporation.  The note payable, with a face value of $53,000, bears interest at 8.0% per annum and is due on July 31, 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 65% multiplied by the average of the lowest two trading prices for the Company’s common stock during the twenty five trading day period ending one trading day prior to the date the convertible note payable is sent by the holder to 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 also concluded that the Default Put required bifurcation because, while puts on debt instruments are generally considered clearly and closely related to the host, the Default Put is indexed to certain events that are not associated with the convertible note payable.

 

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 on November 5, 2014 the Company encountered the unusual circumstance of a day-one derivative loss of $22,057 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 $22,057 loss on the derivative financial instrument.  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 recognized in interest expense or interest income on the Company’s statement of operations.

 

The holder of this convertible note has the right to convert the balance of the note into shares of the Company’s common stock at a substantial discount to the current market price of the shares. 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 nine month period ended September 30, 2015, the Company repaid $12,000 of principal and accrued interest of the note and the remaining balance of the note was converted into 15,980,220 shares of common stock.

 

Convertible Note Payable Dated December 17, 2014 at Fair Value

 

On December 17, 2014, the Company entered into a convertible note payable with a corporation.  The note payable, with a face value of $43,000, bears interest at 8.0% per annum and is due on September 19, 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 65% multiplied by the average of the lowest two trading prices for the Company’s common stock during the twenty five trading day period ending one trading day prior to the date the convertible note payable is sent by the holder to 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.  The holder has the option to redeem the convertible note payable for cash in the event of defaults or certain other contingent events (the “Default Put”).

 

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 also concluded that the Default Put required bifurcation because, while puts on debt instruments are generally considered clearly and closely related to the host, the Default Put is indexed to certain events that are not associated with the convertible note payable.

 

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 on December 17, 2014 the Company encountered the unusual circumstance of a day-one derivative loss of $40,980 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 $40,980 loss on the derivative financial instrument.  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 recognized in interest expense or interest income on the Company’s statement of operations.

    

The holder of this convertible note has the right to convert the balance of the note into shares of the Company’s common stock at a substantial discount to the current market price of the shares. 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 nine month period ended September 30, 2015, the note was converted into 18,650,000 shares of common stock.

 

Convertible Note Payable Dated August 28, 2015 at Fair Value

 

On August 28, 2015 the Company entered into a convertible note payable with a corporation.  The note payable, with a face value of $44,000, including a $4,000 of original issue discount, bears interest at 12.0% per annum and is due on August 28, 2016. 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 62% 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. If the Company’s market capitalization is less than $1,000,000 on the day immediately prior to the date of the notice of conversion, then the conversion price shall be 25% multiplied by the lowest closing price as of the date notice of conversion is given and if the closing price of the Company’s common stock on the day immediately prior to the date of the notice of conversion is less than $0.00075 then the conversion price shall be 25% multiplied by the lowest closing price as of the date a notice of conversion is given. 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 $32,210 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 $32,210 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.

 

At September 30, 2015, the $44,000 face value convertible note payable was recorded at its fair value of $82,516.

 

Convertible Note Payable Dated September 3, 2015 at Fair Value

 

On September 3, 2015 the Company entered into a convertible note payable with a corporation.  The note payable  in the amount of $38,500, including a $3,500 original issue discount, and bears interest at 12.0% per annum and is due on September 3, 2017. According to the terms of the note, the Company was eligible to utilize up to $200,000 of credit under the note, with potential proceeds received of $180,000, however the Company elected to borrow only the $38,500.  Any additional amount borrowed under this note would require approval of both the Company and the lender. 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 65% multiplied by the lowest trade price for the Company’s common stock in the twenty-five (25) trading day period previous to the conversion. 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 $29,789 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 $29,789 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.

 

At September 30, 2015, the $38,500 face value convertible note payable was recorded at its fair value of $73,726.

 

Convertible Note Payable Dated September 8, 2015 at Fair Value

 

On September 8, 2015, the Company entered into a convertible note payable with a corporation.  The convertible note payable, with a face value of $27,000, bears interest at 8.0% per annum and is due on September 8, 2016. The 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 65% 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 $16,690 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 $16,690 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.

 

At September 30, 2015, the $27,000 face value convertible note payable was recorded at its fair value of $47,524.

 

The conversion of the various promissory notes that are measured at fair value into shares of the Company’s common stock is potentially highly dilutive to current shareholders. If the note holders elect to sell the shares that it has acquired as a result of converting the notes into shares of common stock, then the sales of any such shares may result in a significant decrease in the market price of the Company’s common stock.

 

Additionally, the holders of these convertible notes at fair value have 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 rates for each of the notes at fair value may increase to rates of 24% per annum or greater.

 

Furthermore, there are additional events that could cause the lenders 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 lenders receives additional shares of the Company’s common 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.

 

The following tables summarize the effects on September 30, 2015:

 

Face value of the convertible notes payable   $ 109,500  
Interest expense to record the convertible notes at        
fair value on the date of issuance     78,689  
Interest income to mark to market the convertible notes on September 30, 2015     15,577  
September 30, 2015 fair value   $ 203,766  

 

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MATERIAL AGREEMENTS
9 Months Ended
Sep. 30, 2015
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.

 

Exploration Permit with the Florida Division of Historical Resources for an Area off of Juno Beach, Florida

 

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 after April 25, 2014. Currently the Management believes that the permit with the FBAR is being renewed in the name of Seafarer Exploration Corp. under a judge’s order. The permit had not been issued as of the filing date of this report.

 

Exploration Permit with the Florida Division of Historical Resources for an Area off of Lantana, Florida

 

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 and is in the process of terminating its permit with the Florida Division of Historical Resources for this site.

 

Exploration Permit with the Florida Division of Historical Resources for an Area off of Cape Canaveral, Florida

 

On July 28, 2014, the Company’s partnership with Marine Archeological Partners, LLC, Seafarer’s Quest, LLC received a 1A-31 Dig and Identify 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. The Company must obtain various concurrent environmental permits in order to perform exploration and recovery operations at the site. The Company has applied for permits from the State of Florida for two additional areas that were formerly permitted solely by an affiliate of Marine Archeological Partners, LLC. These permits have not been issued as of the filing date of this report.

 

Certain Other Agreements

 

In January of 2015, the Company extended the term of a previous 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 8,000,000 restricted shares of its common stock and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. A portion of the 8,000,000 shares are included as an expense in consulting and contractor fees in the accompanying statement of operations and the remainder of the shares are going to be expensed over a twelve month period, these shares are included in the accompanying balance sheet as a prepaid expense.

 

In January of 2015, the Company extended the term of a previous 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 6,000,000 restricted shares of its common stock and to negotiate future compensation on a year-by-year basis. The Company also agreed to reimburse the Director for pre-approved expenses. A portion of the 6,000,000 shares are included as an expense in consulting and contractor fees in the accompanying statement of operations and the remainder of the shares are going to be expensed over a twelve month period, these shares are included in the accompanying balance sheet as a prepaid expense.

 

In April of 2015, the Company entered into agreements with ten separate individuals to either join or rejoin the Company’s advisory council. Under the advisory council agreements all of the advisors agreed to provide various advisory 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 to the Company's business, and providing such other advisory or consulting services as may be appropriate from time to time. The term of each of the advisory council agreements is for one year. In consideration for the performance of the advisory services, the Company agreed to issue the nine of the advisors 1,000,000 shares a piece and one advisor 2,000,000 shares, an aggregate total of 11,000,000 restricted shares of its common stock. According to the agreements each of the Advisor’s shares vest at a rate of 1/12 th of the amount per month over the term of the agreement.  If any of the advisors or the Company terminates the advisory council agreements prior to the expiration of the one year terms, then each of the advisors whose agreement has been terminated has agreed to return to the Company for cancellation any portion of their shares that have not vested. Under the advisory council agreements, the Company has agreed to reimburse the advisors for pre approved expenses.

 

In August of 2015 the Company entered into a consulting agreement with a corporation under which the corporation agreed to provide various services including business development, digital arbitrage and developing, studying and evaluating revenue proposals in order to assist the Company in attempting to generate revenue. The term of the agreement will continue until the completion of the services. The Company agreed to pay the consultant a total of 2 million shares of its restricted common stock with 1 million shares being restricted for 6 months from the execution of the agreement and 1 million shares being restricted for 1 year from the execution of the agreement.

 

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, 2015, the Company owed the related party limited liability company $23,472 for transfer agency services rendered. The amount owed as of September 30, 2015 is included in the accompanying balance sheet under accrued payable and accrued expenses. In January 2015, the Company entered into a separate debt settlement agreement with the related party vendor to settle a total of $62,936 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 15,734,068 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 $62,936 from the sale of the stock, then the consultant is entitled to receive up to an additional 5,000,000 shares of common stock or a cash payment until the balance is paid in full. The related party limited liability company has also provided various corporate consulting, strategic planning and training under a separate consulting agreement that was entered into in March of 2014. All fees paid to the related party consultant during the period ended September 30, 2015 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

 

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. At September 30, 2015, the Company owed the related party limited liability company $3,000 for services rendered. The amount owed as of September 30, 2015 is included in the accompanying balance sheet under accrued payable and accrued expenses. The consultant provides the services under the direction and supervision of the Company’s and reports directly to the CEO. All fees paid to the related party consultant during the period ended September 30, 2015 are included as an expense in consulting and contractor fees in the accompanying income statement for the period.

 

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.

 

The Company has an ongoing agreement to pay a limited liability company a monthly fee of $3,500 in cash or $5,000 per month in restricted stock for archeological services and the review of historic shipwreck research consulting services.

 

The Company has an ongoing agreement to pay an individual a monthly fee of $3,500 per month for archeological consulting services.

XML 46 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
LEGAL PROCEEDINGS
9 Months Ended
Sep. 30, 2015
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.

 

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.

 

During the fall of 2014, the Company through counsel, conducted a number of depositions in the matter, including Micah Eldred and other parties. As well the Company filed three motions against the Defendants. Included in these motions were a motion to dismiss for fraudulent conduct in the naming of a party as a plaintiff which had no knowledge of the lawsuit, and failure to related settlement offers to the Plaintiffs. The second motion was for sanctions for intentional destruction of documentary evidence related to such shares. As to the second motion, the Court entered an order granting the motion for sanctions, finding that the Defendants had intentionally destroyed evidence, but the Court abated determining the sanctions until a later date. The third motion was to dismiss for fraudulent conduct, wherein the Plaintiffs allege that the Defendant, Eldred had made illicit offers to elicit false testimony. Both of the motions for sanctions are currently pending before the Court. As well in the first week of January 2015, the Defendants filed two simultaneous motions for summary judgment for dismissal of all counts in the case. That motion for summary judgment is currently pending before the Court.

 

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 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 and judgment through the motion for summary judgment.

 

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 established that it will seek the entry of 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 now working 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. On March 4, 2015, the Court awarded full rights to the Juno sight to Seafarer Exploration, erasing all rights of Tulco Resources. The company is currently filing an Admiralty Claim over such sight as well in the United States District Court.    

 

On September 3, 2014, the Company filed a lawsuit against Darrel Volentine, of California. Mr. Volentine was sued in two counts of libel per se under Florida law, as well as a count for injunction against the Defendant to exclude and prohibit internet postings. Such lawsuit was filed in the Circuit Court in Hillsborough County, Florida.  Such suit is based upon internet postings on www.investorshub.com . On or about October 15, 2014, the Company and Volentine entered into a stipulation whereby Volentine admitted to his tortious conduct, however the stipulated damages agreed to were rejected by the Court, and the Company is proceeding to trial on damages against Volentine in a non-jury trial on December 1, 2015. The Defendant is the subject of a contempt of court motion by the Company for continued internet postings and communications that violate his injunction imposed upon him, and the Company will be seeking further damages and an order of contempt against Mr. Volentine for a number of sanctions available.

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LEASE OBLIGATION (Details Narrative)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Sep. 30, 2017
USD ($)
ft²
Sep. 30, 2016
USD ($)
ft²
Sep. 30, 2015
USD ($)
Base monthly rent $ 12,799 $ 6,418 $ 40,901 $ 15,558      
Corporate Office              
Base monthly rent         $ 1,251 $ 1,215  
Office space, area | ft²         823 823  
Operations House              
Base monthly rent             $ 1,300
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LOSS PER SHARE (Tables)
9 Months Ended
Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]  
Components of loss per share

Components of loss per share for the three months ended September 30, 2015 and 2014 are as follows:

                                                                                                                

   

For the Three Months Ended

September 30, 2015

   

For the Three Months Ended

September 30, 2014

 
Net loss attributable to common stockholders   $ (326,116 )   $ (529,724 )
                 
Weighted average shares outstanding:                
Basic and diluted     1,193,601,601       919,710,681  
                 
Loss per share:                
Basic and diluted   $ (0.00 )   $ (0.00 )

                                                                                               

Components of loss per share for the nine months ended September 30, 2015 and 2014 are as follows:

 

   

For the Nine Months Ended

September 30, 2015

   

For the Nine Months Ended

September 30, 2014

 
Net loss attributable to common stockholders   $ (736,738 )   $ (1,572,977 )
                 
Weighted average shares outstanding:                
Basic and diluted     1,120,925,906       890,886,099  
                 
Loss per share:                
Basic and diluted   $ (0.00 )   $ (0.00 )

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SIGNIFICANT ACCOUNTING POLICIES - Fair value of derivative liability (Details)
Sep. 30, 2015
USD ($)
Level 1  
Fair value of derivative liability $ 203,766
Level 2  
Fair value of derivative liability
Level 3  
Fair value of derivative liability
Total  
Fair value of derivative liability $ 203,766
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MATERIAL AGREEMENTS (Details Narrative) - USD ($)
1 Months Ended 9 Months Ended
Jan. 31, 2015
Sep. 30, 2015
Apr. 30, 2015
Dec. 31, 2014
Payment of restricted common stock     11,000,000  
Restricted shares of common stock issued consultant for services   1,103,448    
Payment per month to the consultant under original agreement   $ 3,500    
Owed to related party LLC   23,472    
Outstanding debt related to legal fees $ 62,936      
Shares issued to vendor for outstanding debt 15,734,068      
Vendor entitled to common stock, until debt is paid in full, Shares 5,000,000      
Minimum payment per month to CFO   5,000    
Ongoing aggreement for monthly bookkeeping services   3,000    
Cash per month for archeological servces   3,500    
Restricted stock per month for archeological services   $ 5,000    
Agreement #1        
Payment of restricted common stock       8,000,000
Restricted shares of common stock issued consultant for services       8,000,000
Agreement #2        
Payment of restricted common stock       6,000,000
Restricted shares of common stock issued consultant for services       6,000,000
Advisory Council Member 1-9        
Payment of restricted common stock     1,000,000  
Advisory Council Member 10        
Payment of restricted common stock     2,000,000  
Quest, LLC        
Entitlement of artifact recovery   60.00%    
Ownership   50.00%    
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Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Operating activities    
Net loss $ (736,778) $ (1,572,977)
Adjustments to reconcile net income to net cash provided (used) by operating activities    
Depreciation 25,488 25,488
Change in allowance for uncollectible note receivable    
Interest (income) expense on fair value adjustment (170,844) 354,451
Amortization of beneficial conversion feature of the notes payable $ 67,129 270,640
Loss on impairment (1,100)
Common stock issued for services $ 243,976 $ 185,799
Decrease (increase) in:    
Settlement receivable 18,000
Prepaid expenses $ (33,131) $ 13,447
Decrease in shareholder advance 3,267
Increase (decrease) in:    
Accounts payable and accrued expenses $ 47,509 34,051
Net cash provided (used) by operating activities (538,611) (684,734)
Cash flows from financing activities:    
Proceeds from the issuance of common stock 331,368 329,496
Proceeds from the issuance of convertible notes payable 202,000 335,505
Proceeds from the issuance of convertible notes payable, related party 9,000 $ 60,505
Payment of Convertible note payable (12,000)
Advances from shareholder 9,420
Payments to shareholders (10,000)
Net cash provided by financing activities 529,788 $ 725,506
Net increase (decrease) in cash (8,823) 40,772
Cash - beginning 12,424 578
Cash - ending 3,601 $ 41,350
Supplemental disclosure of cash flow information:    
Cash paid for interest expense $ 6,000
Cash paid for income taxes
Noncash operating and financing activities:    
Common stock issued to satisfy debt $ 26,571 $ 7,683
Convertible debt converted and accrued interest converted to common stock $ 465,803 $ 364,932
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CAPITAL STOCK
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
CAPITAL STOCK

NOTE 5 – CAPITAL STOCK

 

As of September 30, 2015 the Company was authorized to issue 1,500,000,000 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, 2015, 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.  

 

Warrants and Options

 

During the nine month period ended September 30, 2015 the Company issued warrants to purchase a total of 47,345,834 shares of its restricted common stock:

 

April 20, 2015 to November 20, 2015     10,000,000     $ 0.0050  
May 08, 2015 to May 8, 2016     1,562,500     $ 0.0050  
May 11, 2015 to November11, 2016     5,000,000     $ 0.0050  
June 8, 2015 to December 8, 2016     10,000,000     $ 0.0032  
June 16, 2015 to December 16, 2016     2,000,000     $ 0.0050  
June 29, 2015 to December 29, 2015     8,333,334     $ 0.0050  
July 8, 2015 to January 8, 2017     700,000     $ 0.0050  
July 14, 2015 to January 14, 2017     3,000,000     $ 0.0050  
August 1, 2015 to August 1, 2016     2,000,000     $ 0.0050  
August 19, 2015 to February 19, 2017     750,000     $ 0.0100  
September 18, 2015 to September 18, 2020     4,000,000     $ 0.0030  
      47,345,834          

 

 

The Company previously issued a warrant on November 20, 2012 a convertible note holder to purchase 4,000,000 shares of its common stock with an exercise price of $0.005 per share for a period of ten years.

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SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment and Depreciation (Details) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Property and Equipment, net $ 70,767 $ 96,255
Less accumulated depreciation (261,653) (236,165)
Diving Vessel    
Property and Equipment, net 325,000 325,000
Generator    
Property and Equipment, net $ 7,420 $ 7,420
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9 Months Ended
Sep. 30, 2015
USD ($)
Debt Disclosure [Abstract]  
Face value of the convertible notes payable $ 109,500
Interest expense to record the convertible notes at fair value on the date of issuance 78,689
Interest expense to mark to market the convertible notes 15,577
Fair Value $ 203,766
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SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Sep. 30, 2015
Accounting Policies [Abstract]  
Fair value of derivative liability

    Level 1     Level 2     Level 3     Total  
Fair value of derivative liability   $ 203,766     $ -     $ -     $ 203,766  

Property and Equipment and Depreciation

    September 30, 2015     December 31, 2014  
Diving vessel   $ 325,000     $ 325,000  
Generator     7,420       7,420  
Less accumulated depreciation     (261,653 )     (236,165 )
    $ 70,767     $ 96,255