UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549






FORM
10-K






(Mark
One)



| | x | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ------------------------------------------------------------------------------------



For
year ended December 31, 2021



| | o | TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | - | ----------------------------------------------------------------------------------



(SEAFARER LOGO)



|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                                 
|                                                                  
|Securities
    registered pursuant to Section 12(g) of the Act:   
|Common
    Stock, par value $0.0001 per share                     



Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YesoNoo



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yeso Noo



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. YesoNoo



Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will
not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K.o



Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit such files). YesxNoo



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                           |   | Smaller
    reporting company | x
|                            |                             |  
|                            | Emerging
    growth company | o



If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o



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



The aggregate market value of the voting
common equity held by non-affiliates of the registrant was approximately $18,166,559 as of the last business day of the registrants
most recently completed second fiscal quarter, based upon the closing sale price on the OTC:BB reported for such date. Shares of
common stock held by each officer and director, and by each person who owns 10% or more of the outstanding common stock, have been
excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive
determination for other purposes.



As
of March 31, 2022 the Registrant had 6,477,020,847 outstanding shares of its common stock, $0.0001 par
value.

1





SEAFARER
EXPLORATION CORP.

ANNUAL
REPORT ON FORM 10-K

TABLE
OF CONTENTS



|           |                                                                                                              | Page
|---------- | ------------------------------------------------------------------------------------------------------------ | ----
|PART I    
|ITEM 1.    | BUSINESS                                                                                                     | 4   
|ITEM 1A.   | RISK FACTORS                                                                                                 | 10  
|ITEM 1B.   | UNRESOLVED STAFF COMMENTS                                                                                    | 10  
|ITEM 2.    | PROPERTIES                                                                                                   | 10  
|ITEM 3.    | LEGAL PROCEEDINGS                                                                                            | 10  
|ITEM 4.    | MINE SAFETY DISCLOSURES                                                                                      | 10  
|          
|PART II   
|ITEM 5.    | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 11  
|ITEM 6.    | SELECTED FINANCIAL DATA                                                                                      | 13  
|ITEM 7.    | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                        | 13  
|ITEM 7A.   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                   | 19  
|ITEM 8.    | FINANCIAL STATEMENTS                                                                                         | 20  
|ITEM 9.    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES                        | 21  
|ITEM 9A.   | CONTROLS AND PROCEDURES                                                                                      | 21  
|ITEM 9B.   | OTHER INFORMATION                                                                                            | 22  
|          
|PART III  
|ITEM 10.   | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                       | 23  
|ITEM 11.   | EXECUTIVE COMPENSATION                                                                                       | 24  
|ITEM 12.   | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS               | 26  
|ITEM 13.   | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                    | 26  
|ITEM 14.   | PRINCIPAL ACCOUNTING FEES AND SERVICES                                                                       | 27  
|          
|PART IV   
|ITEM 15.   | EXHIBITS                                                                                                     | 28  
|SIGNATURES | 29                                                                                                          

2





SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS



Statements
in this Form 10-K under Item 1. Business, Item 2. Properties, Item 3. Legal Proceedings, Item
7. Managements Discussions and Analysis of Financial Condition and Results of Operations and elsewhere constitute forward-looking
statements.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Seafarer Exploration Corp., a company organized under the laws
of Florida, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following: our ability to continue as a going concern; general economic and
business conditions; competition; success of operating initiatives; our ability to raise capital and the terms thereof; changes
in business strategy or development plans; future revenues; the continuity, experience and quality of our management; changes
in or failure to comply with government regulations or the lack of government authorization to continue our projects; and other
factors referenced in the Form 10-K.



The
use in this Form 10-K of such words as believes, plans, anticipates, expects,
intends and similar expressions are intended to identify forward-looking statements, but are not the exclusive means
of identifying such statements. The success of the Company is dependent on our efforts and many other factors including, primarily,
our ability to raise additional capital.



We
caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  Such
forward-looking statements are based on the beliefs and estimates of our management, as well as on assumptions based on information
currently available to us at the time such statements were made. Forward looking statements are subject to a variety of risks
and uncertainties which could cause actual events or results to differ from those reflected in the forward looking statements,
including, without limitation, the failure to successfully locate cargo and artifacts from historic shipwreck sites and a number
of other risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements,
either as a result of the matters set forth or incorporated in this Report or as a result of certain economic and business factors,
some of which may be beyond our control.



We
disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or unanticipated events.



As
used in this Form 10-K, the terms we, us, our, Seafarer, and the Company
mean Seafarer Exploration Corp. unless otherwise indicated.

3





PART
I





Item 1. Business.



Summary



Seafarer
Exploration Corp. (the Company or Seafarer), a Florida Corporation, was incorporated on May 28, 2003. The
Company formerly operated under the name Organetix, Inc. (Organetix). The Companys principal business plan is to
develop the infrastructure to engage in archaeological research, archaeologically-sensitive exploration, recovery and conservation of
historic shipwrecks and to eventually monetize the recovery of the shipwrecks without selling the treasure. The business plan includes
in-depth archival research and translation of historical documents from archives and repositories from around the world. The plan also
includes the development of various new technologies which will improve efficiencies of both time and accuracy, as well as create a smaller
operational footprint. Advanced technologies are badly needed in the field of archaeology which appear to have fallen decades behind
other sciences.



The
exploration and recovery of historic shipwrecks is by nature speculative, and there is a high degree of risk inherent in this type of
business venture. The exploration and recovery of historic shipwrecks involves a multi-year, multi-stage process and it may take several
years and/or be prohibitively expensive to locate and recover valuable artifacts, if any are ever located at all, from historic shipwreck
sites. It is for those reasons that Seafarer and others feel it is mandatory to invent new advanced technologies.



There
are a number of other significant challenges and risks regarding this type of business venture that make it risky with potential that
the Company could fail. If the Company were to cease its operations, it is likely that there would be complete loss of all capital invested
in and/or borrowed by the Company to date.



The
Company is also actively researching, exploring and testing new technology to help more accurately understand current and future wreck
sites in an unobtrusive manner. Up to the date of this filing, all tests of new and unproven technology and methods have failed with
the exception of the Companys proprietary SeaSearcher device which is still in development. Additional scientists have been hired
as consultants to assist in these endeavors. The ongoing cost of SeaSearcher development is substantial and is an additional financial
hurdle for the Company to bear. Seafarer believes the advancement of this technology is imperative to the advancement of the field of
archaeology.



The
Company regularly reviews opportunities to perform exploration and recovery operations at purported historic shipwreck sites; however,
the Company does have specific plans to perform exploration and recovery operations at other shipwreck sites at the present time. The
Company is actively reviewing other potential historic shipwreck sites for possible exploration and recovery. Should the Company decide
that it will pursue exploration and recovery activities at other potential shipwreck sites it may be necessary to obtain permits as well
as environmental permits. Some potential shipwreck sites are outside of State waters which will be very advantageous to Seafarer since
state permitting agencies will not be able to continuously hamper or slow Seafarers operations, as demonstrated in the past.



Limited
Revenue and Significant Operating Losses



The
Company expects to continue to incur significant operating losses and to generate negative cash flows from operating activities while
developing the necessary infrastructure and technology for the investigation of historic shipwreck sites.



The
Companys ability to eliminate operating losses and to generate positive cash flow from operations in the future will depend upon
a variety of factors, many of which it is unable to control. Based on our historical rate of expenditures, the Company expects to expend
its available cash in three months or less from March 31, 2022. If the Company is unable to implement its business plan successfully,
it may not be able to eliminate operating losses, generate positive cash flow, or achieve or sustain profitability, which would materially
and adversely affect its business, operations, and financial results, as well as its ability to make payments on its debt obligations,
and the Company may be forced to cease its operations. If the Company is not able to continue to raise capital, then it will be forced
to cease its operations, which would likely result in both the complete loss of all capital invested in and loans provided to the Company.



The
Companys Auditor has Substantial Doubts as to the Companys Ability to Continue as a Going Concern.



Our
auditors reports on all of our past fourteen years of consolidated financial statements expresses an opinion that substantial
doubt exists as to whether we can continue as an ongoing business. The lack of significant revenues from operations to date raises substantial
doubt about our ability to continue as a going concern. The accompanying audited consolidated financial statements do not include any
adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities
that might result from the outcome of this uncertainty.



The
Company has not generated any meaningful revenue since inception. Our future is dependent upon our ability to obtain financing to continue
our exploration activities. We may seek additional funds through private placements of our common stock. For the past several years the
Companys auditors have issued an opinion that substantial doubt exists as to whether the Company can continue as a going concern,
making it more challenging for the Company to obtain financing from investors. If the Company becomes unable to obtain financing, then
it is very likely that the it will be forced to cease operations and all capital invested in or loaned to the Company will be lost. Our
consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets,
or the amounts of and classification of liabilities that might be necessary in the event we cannot continue in existence.

4





Companies
such as Seafarer that do not generate significant cash flow to cover expenses must rely on outside financing, which carries a very high
degree of risk due to the fact that it may become extremely challenging or impossible to obtain such outside financing. We cannot guarantee
we will be successful in generating revenue in the future or be successful in raising funds through the sale of shares to pay for the
Companys business plan and expenditures. During the years ended December 31, 2021 and 2020, we did not generate any significant
revenues from continuing operations. Failure to generate revenue or to raise funds could cause us to go out of business, which would
result in the complete loss of capital invested in the Company.



General



It
has been estimated by the United Nations Educational, Scientific and Cultural Organization (UNESCO) that there are over
three million undiscovered shipwrecks around the world and some of these shipwrecks were lost with verifiable cargoes that contained
valuable materials, including artifacts and treasure. However, many of these shipwrecks may have very little archaeological or historical
value, and furthermore, a high percentage of these shipwrecks would not have been carrying valuable cargo including artifacts or treasure.



The
Companys principal business plan is to develop the infrastructure and technology to engage in the archaeologically-sensitive exploration,
recovery and conservation of historic shipwrecks and develop new technologies to vastly improve archaeology. Once artifacts have been
properly conserved, they will be made available for scientific research and allowed to be displayed for the public.



The
Company believes it may eventually be conducting archaeological research around the world and potentially supporting governmental or
quasi-governmental organizations, universities and affiliated research groups and private research entities in the documentation and
survey of historic shipwrecks based on their discretion. The business plan also includes in-depth archival research and translation of
historical documents from various international archives and repositories. These translations of archival research will be made available
to the country of origin, the State of Florida, university researchers, and other responsible academic parties upon reasonable request.
In addition to the research, there is periodic ongoing education of personnel involved in the Companys operations. The Company
works with archaeologists to attempt to further ensure all sensitive archaeological guidelines are met or exceeded. Seafarer has the
internal ability to invent and build advanced technology which should ultimately revolutionize the field of archaeology. Seafarer feels
this is imperative to its ongoing business plan.



The
Company has investigated various technologies and non-scientific equipment to help better explore or document historic shipwreck sites.
To the present date, none of these technologies have been proven to have any efficacy with the exception of the SeaSearcher. The SeaSearcher
has however experienced technical issues during the development phase that are expensive both in terms of repairs and down time. The
Company will continue to experiment with unproven technologies and will actively work with third parties, consultants and scientists
to develop its own proprietary technology which will result in extra expenses to the Company. These development expenses will continue
indefinitely.



The
exploration and recovery of historic shipwrecks involves a multi-year, multi-stage process, making new technology a must. It may take
many years and/or be prohibitively expensive to locate, if any are ever located at all, and recover valuable artifacts from historic
shipwrecks. Locating and recovering valuable artifacts is very difficult, expensive, and rare which is why the Company is developing
the SeaSearcher at significant expense. If the Company is not able to locate artifacts or treasure with significant value, then there
is a high probability that the Company will face adverse consequences which would likely result in the loss of both all capital invested
in or loaned to the Company.



There
are a number of significant issues and challenges including, but not limited to, government regulation and/or the Companys inability
to secure permits and contracts, lack of financing, lack of revenue and cash flow and continued losses from operations that make the
exploration and recovery of historic shipwrecks a speculative business venture. There is also significant expense involved
in research and ongoing educational programs. Research expenses may involve paying scientists for translations, and research dues and
fees for various historical entities such as archives, travel and accommodations, and research materials, as well as developmental expenses
for the SeaSearcher and the continued expense of teaching our divers archaeology.



Furthermore,
underwater recovery operations are inherently difficult and dangerous and may be delayed or suspended by weather, sea conditions or other
natural hazards. In addition, even though sea conditions in a particular search location may be somewhat predictable, the possibility
exists that unexpected conditions may occur, and already have occurred, that adversely affect the Companys operations. It is also
possible that natural hazards may prevent or significantly delay search and recovery operations.



In
addition to natural hazards there may be constant repair and maintenance issues with historic shipwreck exploration and recovery vessels.
The Companys past primary exploration vessel was an older vessel that was originally used in other capacities and has been converted
for use in historic shipwreck exploration and recovery operations. The repairs, maintenance and upkeep of vessels, is time consuming
and can be very expensive and there may be significant periods of vessel down time that results from needed repairs being made or a lack
of current financing to make repairs to the vessel. With the recent addition of two boats to the Companys fleet, the maintenance
and repair costs have increased significantly. Because of the above reasons, the Companys BOD determined it was in the best interest
of the Company to sell the boat, which happened in 2021.



Even
if the Company is able to obtain permits for shipwreck projects, there is a possibility that the shipwrecks may have already been salvaged,
may not be located, or may not have had anything valuable on board at the time that they sank. The potential advantage of the new technology
is designed to eliminate or greatly reduce these risks. It is the Companys intent to find shipwrecks where available research
suggests there were not any previous recovery efforts or past recovery efforts failed or were not completed. In the event that valuable
artifacts are located and recovered, it is possible that the cost of recovery will exceed the value of the artifacts recovered. It is
also possible that other entities, including both private parties and governmental entities, will assert conflicting claims and challenge
the Companys rights to the recovered artifacts.

5





Moreover,
there is the possibility that should the Company be successful in locating and recovering artifacts that have significant archeological
and/or monetary value, that a country whose ship was salvaged may attempt to claim ownership of the artifacts by pursuing litigation.
In the event that the Company is able to make a valid claim to artifacts or other items at a shipwreck site, there is a risk of
theft of such items at sea, both before or after the recovery or while the artifacts are in transit to a safe destination, as well as
when stored in a secured location. Such thefts may not be adequately covered by insurance. Based on a number of these and other potential
issues the Company could spend a great deal of time and invest a large sum in a specific shipwreck project and receive very little or
no salvage claim or revenue for its work. The Company does have plans for security at sea, however it may never implement such plans
if it is not feasibly possible.



There
is currently a limited trading market for our securities. We cannot assure when and if an active-trading market in our shares will be
established, or whether any such market will be sustained or sufficiently liquid to enable holders of shares of our common stock to liquidate
their investment in our company. The ability to deposit restricted shares has also become increasingly more difficult over the past several
years. Some clearing firms who used to clear low priced securities for multiple brokerage firms have closed or been acquired, resulting
in fewer brokerage firms that are willing or able to accept lower priced securities for deposit. Unless an investor has a large and well-established
relationship with a brokerage firm, it will be very difficult and potentially expensive to deposit lower priced securities. An investor
should consider consulting with professional financial advisers before making an investment in our securities. Furthermore, the sale
of unregistered and restricted securities by current shareholders, including shares issued to consultants and shares issued to settle
convertible promissory notes and to settle debt, may cause a significant drop in the market prices of the Companys securities.
Also, because the Company primarily finances the operations with the sale of securities, an increase to the authorized shares may need
to be done from time to time.



Accordingly,
an investment in Seafarers securities is speculative and extremely risky and should only be considered by those investors who
do not require liquidity and who can afford to suffer a total loss of their investment. An investor should consult with professional
advisers before making an investment in our securities.



Competition



There
are a number of competing entities who are engaged in various aspects of the exploration and salvage of historic shipwrecks, and in the
future other competitors may emerge. Some of these companies are publicly traded companies and there are a number of small private companies,
as well as some loosely affiliated groups and individuals, who claim to be in this business as well. Some of these entities may be better
capitalized and may have greater resources to devote to the pursuit of locating and salvaging historic shipwrecks. Very few of these
competing entities may also have significantly more experience than the Company in the exploration and recovery of historic shipwrecks.
The Company could be at a material competitive disadvantage as compared to competing entities that are better capitalized, have more
resources and/or who possess greater experience in the business. The Company will, and has, actively considered working with other entities
in this industry sector.



Lack
of Revenues and Cash Flow/Significant Losses from Operations





The exploration and recovery of historic shipwrecks
requires a multi-year, multi-stage process and it may be many years before any revenue is generated from exploration and recovery activities,
if ever. Without significant revenues and cash flow the Company does not have reliable cash flow to pay its expenses. The Company relies
on outside financing in the form of equity and debt and it is possible that the Company may not be able to obtain outside financing in
the future. If the Company is not able to obtain financing, then it would more than likely be forced to cease operations and all capital
invested in the Company or borrowed by the Company will be lost. If the Company is unable to secure additional financing or meaningful
revenues, our business may fail and our stock price may be adversely affected which could result in a complete total of investment capital.
The raising of additional financing will, as it has over the last several years, result in dilution of the Company’s current shareholders
or a significant decrease in the value of the Company’s securities.



In addition, the expenses associated with operating
a small publicly traded company engaged in the historic shipwreck recovery business are exorbitantly high. The cost of operations may
include the cost of buying or leasing vessels, regular vessel maintenance and upkeep, ongoing vessel repairs due to wear and tear and
damage by natural or human causes, docking fees, fuel, upgrades, equipment costs, personnel costs, insurance, registration costs, permitting,
temporary lodging and provisions for divers and other personnel. In addition to the operating expenses, a publicly traded company also
incurs the significant recurring costs of maintaining publicly traded status, which include, but are not limited to administrative, accounting,
audit, executive, legal, including legal expenses required in answering FBAR comments, shutdowns, and administrative appeals.



The additional delays to the Company’s
operational goals and objectives as a result of FBAR prohibiting ground disturbing work for periods of time have been harmful as the
Company must still cover overhead and fixed expenses while some activities are temporary on hiatus. These combined expenses are
particularly burdensome for a smaller public company. The recurring expenses associated with being a publicly traded company focused
on the exploration and recovery of historic shipwrecks may cause the Company to be at a significant competitive disadvantage when
compared to some of its competitors who are private companies or public companies who are not fully reporting.



Due to these and other factors, the Company may not
be able to continue as a going concern. If the Company is not able to continue as a going concern, it is highly likely that all capital
invested in the Company or borrowed by the Company will be lost. As discussed in Note 2 – Going Concern to our consolidated financial
statements for the years ended December 31, 2021 and 2020, we have experienced operating losses in every year since our inception resulting
in an accumulated deficit. Based on our financial results as of December 31, 2021, there are substantial doubts about the Company’s
ability to continue as a going concern. If the Company is not able to continue as a going concern, it is likely that all capital invested
in the Company or borrowed by the Company will be lost.



The Company has experienced a net loss in every fiscal
year since inception. The Company’s net losses were $2,625,414 for the year ended December 31, 2021 and $2,660,813 for the year
ended December 31, 2020. The Company believes that it will continue to generate losses from its operations for the foreseeable future
and the Company may not be able to generate a profit in the long-term, or ever.







6







Governmental
Regulation



There
are very strict international, federal and state laws that govern the exploration and recovery of historic shipwrecks. While the Company
has been able to obtain some permits, there is no guarantee that the Company will be able to secure future permits or enter into agreements
with government agencies in order to explore and salvage historic shipwrecks. Seafarer believes they are the only company to be issued
a full recovery permit by FBAR since 1986, other than one entity with an Admiralty Claim. This demonstrates the difficulty of obtaining
a recovery permit from FBAR. There is a risk that government entities may enact legislation that is so strict that any recovery of artifacts
and cargo from historic shipwrecks will be nearly impossible. Additionally, permits and agreements with governmental agencies to conduct
historic shipwreck exploration and recovery operations are expensive, in terms of both direct costs and ongoing compliance costs. It
is also possible that the Company will not be successful in obtaining title or permission to excavate certain wrecks, even if the law
allows it. It is possible that permits that are sought for potential future international projects may never be issued, and if issued,
may not be legal or honored by the entities that issued them. For the above reasons, the Company has extended its research into shipwrecks
outside of State waters.



The
laws and regulations regarding the exploration and recovery of historic shipwrecks in waters controlled by the State of Florida are complex.
A large amount of time and expense is required to comply with the existing laws and regulations. For example, the State of Florida has,
in the past, proposed new rules and regulations regarding the exploration and recovery of shipwrecks in Florida waters. The Company believes
any new rules and regulations that are implemented into law would likely increase the cost of compliance and potentially force the Company
to cease its operations. It is possible that the State of Florida may enact additional laws that ultimately make it impossible to conduct
business as a commercial shipwreck exploration and recovery firm. It may also be possible that the State of Florida attempts to enact
legislation which altogether bans the commercial exploration and recovery of historic shipwrecks in State controlled waters.



There
is a possibility that new governmental regulations could be enacted at any time at the international, federal or state level that would
make it impossible for the Company to continue to attempt to locate and salvage historic shipwrecks. Governmental regulation at all levels
may substantially increase the costs and expenses incurred by the Company to obtain permits and agreements and comply with the regulations
and represent a significant risk to the Company and all companies engaged in the commercial exploration and recovery of historical shipwrecks.
This again reflects the need of the Company to continue exploration outside of State waters.



Furthermore,
governmental agencies may require various types of permits to explore shipwreck sites, and the permitting process is often lengthy and
complex. Obtaining permits and entering into agreements with governmental and quasi-governmental agencies to conduct historic shipwreck
exploration and recovery operations is generally a very complex, time consuming, and expensive process. Moreover, the process of entering
into agreements and/or obtaining permits may be subject to lengthy delays, and in some cases in excess of a year. Some governmental agencies
may refuse to issue permits to the Company for recovery of artifacts or intentionally delay the permitting process utilizing administrative
requirements as a tactic to hamper and delay the process.



The
reasons for a lengthy permitting process and delays of existing permits may be due to a number of potential factors including but not
limited to requests by permitting agencies for additional information, submitted applications that need to be revised or updated, newly
discovered information that needs to be added to an application or agreement, requests for core sampling, requests for carbon dating,
changes to either the agreement or permit terms or revisions to other information contained in the permit, excessive administrative time
lags at permitting agencies, overly aggressive interpretation of statutes by permitting authorities to attempt to hamper private entities
engaged in the exploration and recovery of historic shipwrecks and related archaeological materials, etc. The length of time it takes
to obtain permits or enter into agreements, and the administrative time lag by permitting agencies with regards to permitting issues
may result in the Company having to expend significant resources while waiting to perform exploration and recovery work with little or
no visibility as to the timing of resolving such permitting issues. An example of delays implemented by FBAR for Area 2 in Melbourne
Beach, during the course of the last three year permit for Area 2, Seafarer was prevented from performing certain activities integral
to the fulfilment of its exploration and recovery activities for a total of 747 days out of the 1095 days available.



There
are also strict environmental regulations associated with the exploration and recovery of historical shipwrecks. In order to explore
and recover shipwreck materials that are located in state regulated waters, the Company must obtain permission from both federal and
state environmental agencies in order to conduct operations. There is always the possibility that the Company could be denied access
to a historic shipwreck site based on federal or state environmental concerns.



Business
Continuity Plan



Due
to current events involving the global COVID-19 pandemic, Seafarer Exploration Corp. established a Business Continuity Group (BCG)
consisting of members of our Board of Directors, our CEO, and key advisors to monitor current events as they relate to our business and
to be prepared to respond to any potential threats or issues in order to protect the Company. Seafarers BCG periodically reviews
developments concerning how the Company would respond to events that significantly disrupt the economy and its business.



As
a part of its business continuity plan, Seafarer maintains a back office for some of its corporate records and information at the residence
of our CEO. Our CEO has agreed to allow his residence to be used as temporary office space, if the need arises, at no charge to the Company.

7





Litigation



The
Company has been engaged in various litigations in the past and has prevailed in every case (please see Item 3. Legal Proceedings below).
In the future the Company could be subject to litigations, although none are known or expected at this time. Potential future litigations
could materially affect our ability to operate our business, which would negatively impact our results of operations and financial condition.



Historic
Shipwreck Exploration and Recovery in Florida



The
Company operates year-round, with some years having better diving in the winter and some years in the summer. Good weather conditions
may allow operations to extend into the fall and winter months at certain historic shipwreck sites. Inclement weather and hazardous ocean
conditions may hamper year round historical shipwreck exploration and recovery efforts when the Company is operating in waters off of
the coast of Florida and significantly limit the amount of days that the Company is able to conduct operations.



Other
factors that may hinder the Companys ability to conduct year round operations include a lack of financing, the expiration of permits
and agreements or the need to renew or enter into permits and agreements with various governmental or quasi-governmental agencies, and
delays caused by FBAR stopping ground disturbances for debatable reasons. Permits were renewed in 2019 for Area 1 and Area 2 off of Melbourne
Beach for a period of three years. During down times, the Companys operations personnel may, among other duties, spend time researching
sites, training in archaeology, reviewing site plans, maps, charts, and other related information and performing maintenance, overhaul,
cleaning, etc. The 2019 permits are currently in the renewal process for Areas 1 and 2 for the years 2022 through 2025.



Juno
Beach





The Company has previously performed some exploration
and recovery operations at what it believes to be a shipwreck site located off of the coast of Florida in northern Palm Beach County,
more specifically in an area known as “Juno Beach” (the “Juno Beach Shipwreck”). The Company had previously obtained
a recovery permit from the State of Florida for the Juno Beach site. The recovery permit expired in April of 2014. In March of 2015, Seafarer
was awarded full rights to the Juno site pursuant to a court order, erasing all rights of the Company’s previous partner with regards
to the site. The Juno site was arrested permanently to Seafarer by the U.S. Marshal’s offices in July of 2017 and in November 2017
the Company was granted final judgment on its federal admiralty claim for the Juno Beach shipwreck site (See Item 3 below).



From November 2017 until July 2021, the FBAR hadrequested
that Seafarer submit new recovery permit applications on three separate occassions. Two of the recovery applications were denied for reasons
Seafarer found objectionable. After submitting the third recovery application, the FBAR correctly determined that they did not have the
authority to issue the recovery permit all along because the U.S. Government gave the Juno site solely, truly, and exclusively to Seafarer
by way of an Admiralty Claim. The Admiralty Claim was originally provided to FBAR in November 2017. However, FBAR delayed Seafarer’s
operations from continuing in Juno Beach until July 2021, a period of approximately three years and eight months.



The Company believes it is possible the Juno Beach
Shipwreck site may potentially contain remnants of a sunken 1500s era ship; however, the Company does not have definitive evidence of
the ship’s country of origin. Due to the fact that the Company does not currently have sufficient data to positively identify the
potential Juno Beach shipwreck, or its country of origin, it is not possible to determine whether or not the ship was originally carrying
cargo of any significant value.



With data from the Master Site Plan from entries
by a Florida state archaeologist from 1988 who has since retired, which were withheld from Seafarer for several years, Seafarer
feels more confident a 1500s era shipwreck is quite possibly within our Admiralty Claim in Juno Beach, although we do not know
whether it contained anything of value. The Company has determined that a large portion of the magnetometer survey of the Juno Beach
Shipwreck site that was originally provided by the Company’s past partner on the site was intentionally deleted. A lot of
shipwreck material and remnants including pottery, cannon balls, musket balls, ballast stones, nails, spikes, wood and scattered
pieces of a sunken ship have all been found in the deleted area of a magnetometer survey.



The Company will attempt to complete a SeaSearcher
survey of the entire deleted area when certain conditions are met. There is also a possibility that there are no artifacts of significant
value located at the Juno Beach shipwreck site. Even if there are valuable artifacts and/or treasure located at the site, recovering them
may be difficult due to a variety of challenges that include, but are not limited to; inclement weather, hazardous ocean conditions, large
amounts of sand that cover large areas of the site, strong multiple layer currents etc.





Melbourne
Beach



There
is a purported historic shipwreck site located in the waters off of Melbourne Beach, Florida that the Company has been investigating.
In February 2013, the Company signed an agreement with a third party who previously explored this site for the right to investigate the
site. In March of 2014, Seafarer entered into a partnership and ownership with Marine Archaeology Partners, LLC (MAP),
with the formation of Seafarers Quest, LLC (SQ). SQ 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 50% ownership and is the designated management of SQ. In November of 2019, the Company and MAP agreed to modify the partnership
agreement so that the Company receives 80% and MAP receives 20% of any artifacts that are recovered after the state of Florida receives
its anticipated 20% under any potential future recovery permits, which none such recovery permits have been applied for or issued as
of the date of this filing.

8





In
July of 2014, SQ received a 1A-31 Exploration Permit with a Dig and Identify modification, which gives us written authority to excavate
and identify artifacts (the Permit) from the Florida Division of Historical Resources for an area identified as Area 2
off of Melbourne Beach, Florida. The Permit was active for three years from the date of issuance. Seafarer on behalf of SQ, has been
primarily focusing its operations on this site when the weather permits. the Company has utilized additional owned and rented vessels
in order to perform search and identify operations at this site. Inclement weather and difficult sea conditions have hampered the Companys
ability to perform exploration operations at this site to date, including the previously discussed delays involving FBAR. An archeologist
with the technical skills, knowledge, and experience from around the world was hired to help ensure the integrity of the work. The Company
has applied for permits from the State of Florida for two additional areas that were formerly permitted solely by an affiliate of MAP.
The Permit for one of the additional areas was given to the Company on July 6, 2016 and identified as Area 1. The permits for Areas 1
and 2 were renewed in 2019 for an additional three years. It will be necessary to be granted a recovery permit in order to recover any
artifacts and treasure that are located on the site. On October 7, 2020, the Company received a new permit from the Florida Department
of Environmental Protection (the FDEP) for Areas 1 and 2 at the behest of the FBAR. The FDEP permit is valid for 5 years.
A permit transfer was completed, transferring a U.S. Army Corps of Engineers permit for Areas 1 and 2 from MAP to SQ. This transfer was
done at the behest of the FBAR and the permit is valid until 2025.



Per
Florida Statutes, Seafarer made a timely request for renewal of the 2019 permit for Area 2 on July 29, 2021. In January of 2022, Seafarer
received notification from the Florida Division of Historical Resources (FDHR) that its permit for Area 2, which was set
to expire on January 19, 2022, has been continued indefinitely while the renewal request was being processed. The existing permits will
continue until the renewal is finalized or rejected.



Per
Florida Statutes, Seafarer made a timely request for renewal of the 2019 permit for Area 1 on July 29, 2021. On March 2, 2022, Seafarer
received notification that the permit would continue indefinitely with the same terms as Area 2.



Certain
Agreements



Agreement
to Explore a Shipwreck Site Located off of Melbourne Beach, Florida



In
March of 2014, Seafarer entered into a partnership and ownership with MAP with the formation of SQ. SQ 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 80% of such artifact recovery after the state of Florida has taken their 20% under any future recovery permits. Seafarer
has a 50% ownership, with designated management of the SQ coming from Seafarer. As of December 31, 2021, the partnership has had no operations.
Seafarer is responsible for managing the site on behalf of SQ.



Florida
Division of Historical Resources Agreements/Permits



The
Company currently has two separately permitted Melbourne Beach area sites, called Area 1 and Area 2, that it is exploring. The Area 1
permit was renewed on March 1, 2019 for a period of three years. The Area 2 permit was renewed on January 14, 2019 for a period of three
years. The Company submitted a permit renewal application for Area 2 on July 29, 2021 that the State of Florida has yet to act upon.
The State of Florida has granted the Area 2 permit an extension until the State of Florida acts upon the submitted renewal application.



Agreement
with Probability and Statistics, Inc.



In
2018 Seafarer acquired a 1% ownership position in Probability and Statistics, Inc. (P&S) for an exchange of shares of Seafarers
restricted common stock. During the year ended December 31, 2020, Seafarer and P&S agreed to essentially unwind the previous share
exchange agreement by entering into a new share exchange agreement where Seafarer and P&S effectively reversed the transaction from
2018, see Note 5 – Investment in Probability and Statistics, Inc. The shares of Seafarers restricted common stock have been
returned to treasury.

9





Item
1A. Risk Factors.



Not
required for smaller reporting companies.



Item
1B. Unresolved Staff Comments.



None.



Item
2. Properties.



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, 2020 through July 31, 2023 with base month rents of $1,475 from July 1,
2020 to June 30, 2021, $1,519 from July 1, 2021 to June 30, 2022, $1,564 from July 1, 2022 to June 30, 2023 and $1,611 from July 1, 2023
to July 31, 2023. Under the terms of the lease there may be additional fees charged above the base monthly rental fee.



Operations/Dive
House



The
Company also has an operating lease for a house located in Palm Bay, Florida that it leases on a month-to-month basis for $1,350 per
month. The Company uses the house to store equipment and gear and to provide work-related living quarters for its divers, personnel,
consultants and independent contractors involved in its exploration and recovery operations. The Company also leases a house in Palm
Bay for $525 per month to store equipment.



Item
3. Legal Proceedings.



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, 2015, 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 which was heard on April 7, 2016,
whereby the Court found a violation and modified the injunction against the Defendant, and imposed other matters of potential penalties
against the Defendant. The Court also awarded attorneys fees against the Defendant on behalf of Seafarer for such motion. The
Defendant subsequently attempted to have such ruling, evidence and testimony attacked through a motion heard before the Court on October
24, 2016. The Court dismissed the Defendants motion after presentation of the Defendants case at the hearing. The Plaintiff
has set the matter for entry of the attorneys fees amount due from the Defendant for hearing in December 2016. As well the Plaintiff
has set for hearing its motion for sanctions in the form of attorneys fees for frivolous filing of the October 24th motion, which
motion is also set for hearing in December 2016. The Plaintiff filed a renewed and amended motion for punitive damages in the case on
September 11, 2016, which has not been set for hearing. The Defendant had also filed a motion for summary judgment on the matter of notice
entitlement pre-suit, which motion is pending before the Court. The Plaintiff filed a motion for sanctions against the Defendant for
the motion for summary judgment being frivolous under existing law, and such motion is pending ruling on the motion. On December 7, 2016,
the Court held a hearing on the Defendants motion for sanctions, and essentially attempting to rehear the motion for contempt
against the Defendant. The Court dismissed the Defendants motions, and renewed the ability of the Company to seek attorneys
fees on such matter, which hearing has not been set at present. On February 28, 2017, the Court entered an Order denying the Defendants
motion for summary judgment. The Company has filed a motion for punitive damages in March 2021 to be added to the cause of action and
to be heard by the Court. The counsel for Volentine filed a motion to withdraw which was granted on March 7, 2021, and Volentine was
given 60 days to obtain new counsel or proceed without such. The Company is seeking to get such matter to trial as soon as possible.
Volentine, as of the date of this publication, has not obtained new counsel.



On
April 17, 2020, the Company filed a lawsuit in the Circuit Court in and for Hillsborough County, Florida against Michael Torres (Torres),
regarding fraud, fraud in the inducement, breach of contract and civil theft under Florida law, as well as for injunctive relief to cancel
shares issued. Such shares are currently locked up with the transfer agent pending ruling of the Court. The civil theft claim seeks triple
the damages for monies paid to Torres, plus attorneys fees and costs. Torres filed a motion to dismiss which was denied by the
Circuit Court on July 28, 2020. Torres filed a general denial in an answer. Seafarer was in the discovery phase of the case when both
sides agreed to a mediation of the matter. Mediation of the case occurred in January 2021, and the parties reached a confidential
settlement agreement which is formally being entered, which includes cancellation of all shares issued to Torres. The case will officially
be closed with entry of the final judgment accepting the settlement.



On
January 18, 2022, Seafarer received notification from the Circuit Court of the Thirteenth Judicial Circuit that 61,183,645
restricted common shares from the Defendant could be returned to the Plaintiff. On January 19, 2022, such shares were returned to
the treasury stock of Seafarer and accounted for by Seafarers transfer agent. The settlement also included Defendant
(Torres) has agreed and hereby it is recognized by the Court that Defendant has made a full retraction of his
assertions... and agreed to pay back an undisclosed amount of money to Seafarerand agreed to pay back an
undisclosed amount of money to Seafarer that the Company does not anticipate being able to collect.



Item
4. Mine Safety Disclosures.



None.

10





PART
II



Item
5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.



Market
Information



Our
common stock is presently quoted on the Pink Sheets under the symbol SFRX, as reflected below, though the current trading
volume is small. No assurance can be given that any market for our common stock will continue in the future or be maintained. If an established
trading market ever develops in the future, the sale of restricted securities (common stock) pursuant to Rule 144
of the Securities and Exchange Commission by members of management, consultants, promissory note holders or others may have a substantial
adverse impact on any such market and the sale of restricted securities by management or others may significantly depress the market
price of the Companys shares.



We
cannot assure when and if an active-trading market in our shares will be established, or whether any such market will be sustained or
sufficiently liquid to enable holders of shares of our common stock to liquidate their investment in our company. If an active public
market should develop in the future, the sale of restricted securities that have had the restrictive legend removed by current shareholders
may be highly dilutive and could potentially have a substantial negative impact on any such market.



The
Companys share price is quoted on the Pink Sheets. Accordingly, an investment in our securities should only be considered by those
investors who do not require liquidity and can afford to suffer a complete loss of their investment. An investor should strongly consider
consulting with professional advisers before making such an investment.



Furthermore,
the price of our common stock may be subject to a very high degree of volatility, which makes owning shares of our common stock highly
risky. Our stock price fluctuated between $0.0079 and $0.0023 for the year ended December 31, 2021, and $0.0031 and $0.0179 for the year
ended December 31, 2020. The price of our shares may fluctuate significantly despite the absence of any apparent reason. In addition,
our stock is thinly traded, leading to even greater volatility. You should expect this volatility to continue into the foreseeable future.



The
range of high and low intraday prices for our common stock during each quarter for 2021 and 2020 is shown below. The over-the-counter
quotations reflect inter-dealer prices, with retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
Such prices were determined from information derived from www.nasdaq.com and do not necessarily reflect transactions, retail markups,
markdowns or commissions.



|Quarter
    Ended      | High
    Price | Low
    Price
|---------------------- | -------------- | -------------
|March
    31, 2020     | 0.0179         | 0.0072       
|June
    30, 2020      | 0.0120         | 0.0055       
|September
    30, 2020 | 0.0089         | 0.0031       
|December
    31, 2020  | 0.0080         | 0.0042       
|March
    31, 2021     | 0.00079        | 0.0046       
|June
    30, 2021      | 0.0070         | 0.0029       
|September
    30, 2021 | 0.0067         | 0.0032       
|December
    31, 2021  | 0.0050         | 0.0023       



Penny
Stock



Our
stock is considered to be a penny stock. Our stock is subject to certain provisions of the Securities Exchange Act of 1934 (the Exchange
Act), commonly referred to as the penny stock rules as defined in Rule 3a51-1. A penny stock is generally defined
to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Since our stock is deemed
to be a penny stock, trading is subject to additional sales practice requirements of broker-dealers.



Consequently,
penny stock rules may restrict the ability or willingness of broker-dealers to trade and/or maintain a market in our common stock. Also,
prospective investors may not want to get involved with the additional administrative requirements, which may have a material adverse
effect on the trading of our shares. In recent years the ability to deposit restricted shares at broker-dealers has become increasingly
difficult with burdensome administrative requirements.



The
SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or
quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided
by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized
risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny
stocks in both public offerings and secondary trading; (b) contains a description of the brokers or dealers duties to the
customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of
the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks
and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary
actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such
other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

11





The
broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations
for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which
such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and
(d) a monthly account statement showing the market value of each penny stock held in the customers account.



In
addition to the penny stock rules described above, FINRA has adopted rules that require that in recommending an investment
to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to
recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain
information about the customers financial status, tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least
some customers. The FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock,
which may limit your ability to buy and sell our stock and may have an adverse effect on the market for our shares.



Additionally,
investors in penny stocks should be aware that in recent years the ability to deposit restricted shares has become significantly more
difficult and expensive due to burdensome administrative requirements and finding broker-dealers willing to accept deposits of low priced
securities.



Approximate
Number of Holders of Common Stock



As
of March 31, 2022, there were approximately 2,054 shareholders of record of our common stock.



Transfer
Agent



The
Companys stock transfer agent is ClearTrust, LLC (ClearTrust). ClearTrusts address is 16540 Pointe Village
Drive, Suite 205, Lutz, Florida 33558 and their telephone number is (813) 235-4490. ClearTrust is owned and controlled by a person who
is related to the Companys CEO.



Dividend
Policy



The
Company did not declare cash dividends during the years ended December 31, 2021 and 2020. It is not anticipated that cash dividends will
be paid at any time in the foreseeable future as the Company intends to retain earnings, if any, for use in the development of its business.
The payment of dividends is contingent upon the Companys future earnings, if any, the Companys financial condition and
its capital requirements, general business conditions and other factors.



Equity
Compensation Plans



The
Company has not established any formal equity compensation plans as of the date of this Annual Report on Form 10-K; however, the Company
reserves the right to do so at a later date.



Reports
to Security Holders



Seafarer
Exploration Corp. is a reporting company pursuant to the Securities and Exchange Act of 1934. As such, the Company makes available its
annual report which includes audited financial statements, and its quarterly reports which include unaudited financial statements.



Recent
Sales and Other Issuances of Unregistered Securities



During
the year ended December 31, 2021, the Company issued 79,337,336 shares for various consulting services for board of directors
fees, advisory council fees, and fees to other service providers. The Company believes that the issuance of the securities was exempt
from registration under the Securities Act of 1933, as amended, in reliance on Section 4(2) of the Securities Act as a transaction
by an issuer not involving any public offering and based on the fact that such securities were issued for services to sophisticated or
accredited investors and persons who are thoroughly familiar with the Companys proposed business by virtue of their affiliation
with the Company.



On
various dates during the year ended December 31, 2021, the Company entered into subscription agreements to sell 720,353,061 shares of
its restricted common stock in exchange for proceeds of $1,530,110. The proceeds received were used for general corporate purposes, working
capital and the repayment of debt.



Exemptions
from Registration for Sales of Restricted Securities.



The
issuance of securities referenced above were issued to persons who the Company believes were either accredited investors,
or sophisticated investors who, by reason of education, business acumen, experience or other factors, were fully capable
of evaluating the risks and merits of an investment in us; and each had prior access to all material information about us. None of these
transactions involved a public offering. An appropriate restrictive legend was placed on each certificate that has been issued, prohibiting
public resale of the shares, except subject to an effective registration statement under the Securities Act of 1933, as amended (the
Act) or in compliance with Rule 144. The Company believes that the offer and sale of these securities was exempt from the
registration requirements of the Securities Act pursuant to Section 4(2) under the Securities Act of 1933 (the Act) thereof,
and/or Regulation D. There may be additional exemptions available to the Company.

12





Issuance
of Securities Due to Conversion of Notes and to Settle Debt



During
the year ended December 31, 2021, the Company issued 59,944,277 shares of restricted common stock to settle $283,202 of principal and
accrued interest owed on various convertible notes payable. The Company also issued 1,000,000 shares of restricted common stock as an
equity kicker to a convertible note holder. The Company believes that the offer and sale of these securities were exempt from the registration
requirements of the Securities Act pursuant to Sections 3(a)(9) under the Securities Act of 1933, as amended.



Repurchase
of Securities



During
the years ended December 31, 2021 and 2020, the Company did not purchase any shares of its common stock and the Company is not likely
to purchase any shares in the foreseeable future.



Warrants



The
Company did not issue any warrants during the years ended December 31, 2021 and 2020. Please see Note 7 – Stockholders Deficit
for a list of warrants outstanding at December 31, 2021 and 2020.



Item
6. Selected Financial Data.



Not
required for smaller reporting companies.



Item
7. Managements Discussion and Analysis of Financial Condition and Results of Operations.



FORWARD
LOOKING STATEMENTS



The
following discussion contains certain forward-looking statements that are subject to business and economic risks and uncertainties, and
which speak only as of the date of this annual report. No one should place strong or undue reliance on any forward-looking statements. The
use in this Form 10-K of such words as believes, plans, anticipates, expects,
intends, and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of
identifying such statements. The Companys actual results or actions may differ materially from these forward-looking statements
due to many factors and the success of the Company is dependent on our efforts and many other factors including, primarily, our ability
to raise additional capital. Such factors include, among others, the following: our ability to continue as a going concern, general economic
and business conditions; competition; success of operating initiatives; our ability to raise capital and the terms thereof; changes in
business strategy or development plans; future revenues; the continuity, experience and quality of our management; changes in or failure
to comply with government regulations or the lack of government authorization to continue our projects; and other factors referenced
in the Form 10-K. This Item should be read in conjunction with the financial statements, the related notes and with the understanding
that the Companys actual future results may be materially different from what is currently expected or projected by the Company.



We
caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Such forward-looking
statements are based on the beliefs and estimates of our management, as well as on assumptions made by and information currently available
to us at the time such statements were made. Forward looking statements are subject to a variety of risks and uncertainties, which
could cause actual events or results to differ from those reflected in the forward looking statements, including, without limitation,
the failure to successfully locate cargo and artifacts from the Juno Beach shipwreck site and a number of other risks and uncertainties.
Actual results could differ materially from those projected in the forward-looking statements, either as a result of the matters set
forth or incorporated in this Report or due to certain economic and business factors, some of which may be beyond our control.



We
disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or unanticipated events.



Overview



General



The
Companys principal business plan is to develop the infrastructure and technology to engage in the archaeologically-sensitive exploration,
recovery and conservation of historic shipwrecks and to eventually monetize the recovery of the shipwrecks without selling the treasure
by creating revenue through media and technology alternatives for different industry sectors. Once artifacts have been properly conserved,
they may be made available for scientific research and allowed to be displayed for the public. The Companys secondary business
is to attempt to develop revenue streams to support its historic shipwreck exploration and recovery operations. Such revenue streams
will complement the technology developed by Seafarer.

13





The
Company has received from the Florida Department of State a notice of lack of authority to permit or deny recovery activities on the
unidentified shipwreck on Juno Beach. The Florida Bureau of Archaeological Research (the Bureau), Division of Historical
Resources, Florida Department of State stated to Seafarer The shipwreck is non-permittable pursuant to Rule 1A-31.0045(2), F.A.C. The
Bureau cited an order dated November 14, 2017 where the United States District Court entered a Final Order of Court
Default and Final Judgement Granting Award for Admiralty in Rem. The District Courts order ruled Seafarer is hereby the
true, sole, and exclusive owner of the Defendant Shipwrecked Vessel and having exclusive right to conduct recovery operation on the Defendant
Shipwrecked Vessel and any items recovered therefrom. Additional permitting will still be necessary with the Florida Department
of Environmental Protection and the U.S. Army Corps of Engineers. Applications have been made to both entities.



In
order to potentially find more efficient methods to explore and document historical shipwrecks, the Company has investigated various
technologies and non-scientific methodologies. To the present date, none of these technologies have been proven to work with the exception
of the SeaSearcher, which has been developed to scan historic shipwreck sites for both ferrous and nonferrous artifacts. The ongoing
developmental work and improvements to the SeaSearcher have been expensive and Management anticipates that the expenses for these development
costs will continue to be incurred for the foreseeable future. Advances in algorithms and artificial intelligence (AI) will continue
indefinitely while the present model can be currently used in the field. The Company will continue to experiment with unproven technologies
and will actively work with third parties, consultants and scientists to develop its own proprietary technology which has and will result
in considerable expenses.



The
Company continues to review revenue producing opportunities including joint ventures and partnerships with other companies and potentially
governmental agencies. Blockchain has a strategic partnership to provide referrals to a blockchain software services provider and receive
referral fees when the referrals lead to closed business for the blockchain software services company. COVID-19, pricing issues, long
sales cycles, and various other reasons have considerably slowed Blockchains progress and it has not generated any revenues during
2021.



There
is a possibility that the Company will be forced to cease its operations if it is not successful in eventually locating and recovering
valuable artifacts and treasure or cant build a revenue stream to offset its expenses. If the Company were to cease its operations,
and not find or engage another business entity, then it is likely that there would be complete loss of all capital invested in or borrowed
by the Company. As such, an investment in Seafarer is highly speculative and very risky.



This
type of business venture is highly speculative in nature and carries an excessive amount of risk. An investment in the Companys
securities is very risky and should only be considered by those investors or lenders who do not require liquidity and who can afford
to suffer a complete and total loss of their investment.



There
is currently a limited trading market for the Companys securities. It is impossible for the Company to assure that when and if
an active-trading market in its shares will be established, or whether any such market will be sustained or sufficiently liquid to enable
holders of shares of the Companys common stock to liquidate their investment in our company.



The
sale of restricted securities by current shareholders, including shares issued to consultants, independent contractors, Board members,
as well as shares issued to settle convertible promissory notes or to settle other loans and debt, are highly dilutive and may cause
a significant decline in the market price of the Companys securities. Furthermore, in recent years regulatory agencies have made
it very difficult for broker dealers to accept stock certificates from issuers of low priced stocks and the Company believes that it
may become even more challenging to deposit stock certificates and this trend may continue for the foreseeable future.



Moreover,
in the past few years several major brokerage firms have indicated that they will not allow their clients to deposit stock certificates
of low priced stocks. Some securities clearing firms who used to clear low priced securities for multiple brokerage firms have shut down
or been acquired, resulting in fewer brokerage firms that are willing or able to accept lower priced securities for deposit. Unless an
investor has a large and well-established relationship with a brokerage firm, it may be extremely difficult and potentially expensive
to deposit lower priced securities. An investor should consider consulting with professional financial advisers before making an investment
in our securities. The Company is a current and fully reporting company and has been for almost 14 years.



Plan
of Operation



The
Company has taken the following steps to implement its business plan:



| | ● | To
                                            date, the Company has devoted its time towards establishing its business to develop the infrastructure
                                            capable of researching, exploring, recovering and conserving historic shipwrecks. The Company
                                            has performed some research, exploration and recovery activities.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | Spent
                                            considerable time and capital researching potential shipwrecks, including obtaining information
                                            from foreign archives.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                            Company has worked in combination with its technology development partner, Wild Manta Labs,
                                            to build a research and conservation lab with full x-ray equipment and detailed metal identification
                                            analysis.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The Company has generated very limited revenues to date. Management does
not believe that the Company will generate any significant revenues for the foreseeable future.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                            Company continues to review revenue producing opportunities including joint ventures with
                                            other companies. The Company is actively looking to work with revenue producing companies.
                                            These opportunities have been slow to develop, but the Company will continue to pursue those
                                            endeavors that it believes have the potential to increase the value of the Companys
                                            shares.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14





| | ● | The
                                            Company has investigated various types of equipment and technology to expedite the process
                                            of finding artifacts other than iron or ferrous metals. Most have been of no help, but the
                                            Company continues to explore new technologies. The Company has developed its own proprietary
                                            technology, the SeaSearcher, and will attempt to continue to develop additional proprietary
                                            technologies or work with third parties to develop technologies to aid in its exploration
                                            and recovery operations. Development of technologies will require additional time and financing.
                                            The cost of developing the new technology has, to date, been very expensive for a small company.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ● | The
                                            Company has investigated media opportunities to develop content centered on its specific
                                            historic shipwreck exploration and recovery activities as well as the historic shipwreck
                                            and related historical period genre in general and will continue to evaluate various media
                                            strategies.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Other
Information



There
are very strict international, federal and state laws that govern the exploration and recovery of historic shipwrecks. While the Company
has been able to obtain some permits, there is no guarantee that the Company will be able to secure future permits or enter into agreements
with government agencies in order to explore and salvage historic shipwrecks. Seafarer believes they are the only company to be issued
a full recovery permit by FBAR since 1986, other than one entity with an Admiralty Claim. This demonstrates the difficulty of obtaining
a recovery permit from FBAR. There is a risk that government entities may enact legislation that is so strict that any recovery of artifacts
and cargo from historic shipwrecks will be nearly impossible. Additionally, permits and agreements with governmental agencies to conduct
historic shipwreck exploration and recovery operations are expensive, in terms of both direct costs and ongoing compliance costs. It
is also possible that the Company will not be successful in obtaining title or permission to excavate certain wrecks, even if the law
allows it. It is possible that permits that are sought for potential future international projects may never be issued, and if issued,
may not be legal or honored by the entities that issued them. For the above reasons, the Company has extended its research into shipwrecks
outside of State waters.



It
Is possible that permits that are sought for potential future international projects may never be issued, and if issued, may not be legal
or honored by the entities that issued them. Governmental agencies may require various types of permits to explore shipwreck sites, and
the permitting process is often lengthy and complex. Obtaining permits and entering into agreements with governmental and quasi-governmental
agencies to conduct historic shipwreck exploration and recovery operations is generally a very complex, time consuming, and expensive
process. Furthermore, the process of entering into agreements and/or obtaining permits may be subject to lengthy delays, possibly in
excess of a year. Some governmental agencies may refuse to issue permits to the Company for recovery of artifacts or intentionally delay
the permitting process, or go beyond their authority and request halting of ground disturbance.



The
reasons for a lengthy permitting process may be due to a number of potential factors including but not limited to requests by permitting
agencies for additional information, submitted applications that need to be revised or updated, newly discovered information that needs
to be added to an application or agreement, changes to either the agreement or permit terms or revisions to other information contained
in the permit, excessive administrative time lags at permitting agencies, work halts based on biased predispositions with no authority
given by rule 1A-31, etc. Existing permits and agreements may be put on hold or suspended without notice for lengthy periods of time
due to administrative issues and disagreements over the terms and conditions. The length of time it takes to obtain permits, enter into
agreements, or rectify any conditions that are causing a permit to be suspended or on hold may cause the Company to expend significant
resources while gearing up to do work with little or no visibility as to timing. An example of delays implemented by FBAR for Seafarers
permitted Area 2 in Melbourne Beach, Seafarer was prevented from performing certain activities authorized under the permit for 747 days
out of the 1095 days during the course of the last three year permit for Area 2 even though the permit was active.



The
Company regularly reviews opportunities to perform exploration and recovery operations at purported historic shipwreck sites. The Company
currently does have some specific plans to perform exploration and recovery operations at other shipwreck sites in the future, however
these plans are subject to change based on a number of factors. The Company is actively reviewing other potential historic shipwreck
sites, including sites located internationally, for possible exploration and recovery. Should the Company decide that it will pursue
exploration and recovery activities at other potential shipwreck sites, it may be necessary to obtain various permits as well as environmental
permits.



The
Company continually monitors media rights for potential revenue opportunities. The Company has had discussions with media entities to
further understand the potential advantages offered. Management believes various forms of media can represent a potential future revenue
opportunity for the Company, if the right circumstances arise.



This
type of business venture is extremely speculative in nature and carries a tremendous amount of risk. An investment in the Companys
securities is highly speculative and very risky and should only be considered by those investors or lenders who do not require near-term
liquidity and who can afford to suffer a complete and total loss of their investment.



Results
of Operations



We
have generated only minimal revenue from operations and do not expect to report any significant revenue from operations for the foreseeable
future. We have incurred recurring losses to date. Our consolidated financial statements have been prepared assuming that we will continue
as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification
of liabilities that might be necessary should we be unable to continue in operation.



The
Company expects to continue to incur significant operating losses and to generate negative cash flow from operating activities, while
building out its infrastructure in order to explore and salvage historic shipwreck sites and establishing itself in the marketplace.
Based on our historical rate of expenditures, the Company expects to expend its available cash in less than one month from March
31, 2022.

15





At
December 31, 2021 and 2020 the Company had working capital deficits of $1,668,699 and $1,158,747 respectively. The working capital deficit
increased by $509,952, a percentage increase of approximately 44%, from 2020 to 2021. The year-over-year increase in the Companys
working capital deficit may indicate that there is substantial risk to the continued viability of the Company and a high degree of risk
that the Company could become insolvent due to this significant working capital deficit and the lack of meaningful cash flow from its
operations. The Company is in immediate need of further working capital and is seeking options, with respect to financing, in the form
of debt, equity or a combination thereof.



Since
inception, the Company has funded its operations through common stock issuances and loans in order to meet its strategic objectives;
however, there can be no assurance that the Company will be able to obtain further funds to continue with its efforts to establish a
new business. There is a very significant risk that the Company will be unable to obtain financing to fund its operation and as such
the Company may be forced to cease operations at any time which would likely result in a complete loss of all capital that has been invested
in and/or borrowed by the Company to date.



The
Companys ability to eliminate operating losses and to generate positive cash flow from operations in the future will depend upon
a variety of factors, many of which it is unable to control. If the Company is unable to implement its business plan successfully, it
may not be able to eliminate operating losses, generate positive cash flow or achieve or sustain profitability, which may have a material
adverse effect on the Companys business, operations, and financial results, as well as its ability to make payments on its debt
obligations, and the Company may be forced to cease operations.



If
we are unable to secure additional financing, our business may fail and our stock price will likely be materially adversely affected.
The Companys lack of operating cash flow and reliance on the sale of its commons stock and loans to fund operations is extremely
risky. If the Company is unable to continue to raise capital or obtain loans or other financing on terms that are acceptable to the Company,
or at all, then it is highly likely that the Company will be forced to cease operations. If the Company ceases its operations, then it
is very highly likely that all capital invested in and/or borrowed by the Company will be lost.



Summary
of the Year Ended December 31, 2021 Results of Operations Compared to Year Ended December 31, 2020



Revenue



The
Companys core business involving the exploration and recovery of historic shipwrecks has not generated any revenues to date and
is not expected to generate any significant revenues for the foreseeable future. During the years ended December 31, 2021 and 2020, the
Company generated $23,761 and $10,622 in revenue respectively, which is shown as service income on the accompanying consolidated statements
of operations.



Net
Losses



The
Companys net loss for the years ended December 31, 2021 and 2020 was $2,625,414, and $2,660,813, respectfully, a year-over-year
decrease of approximately 1.33%.



Operating
Expenses



Operating expenses were $2,369,381 for the year
ended December 31, 2021 versus $2,709,828 for the year ended December 31, 2020, a decrease of 12.6%. The decrease in operating expenses
in 2021 was primarily due to decreases in consulting and contractor expenses, vessel maintenance and dockage expenses, and professional
fees. During the year ended December 31, 2021, consulting and contractor expenses were $1,234,353 compared to $1,542,145 during the year
ended December 31, 2020, a decrease of 20.0%. The primary reason for the decrease in consulting and contractor expenses was that the Company
did not use as much labor in its operations and had lower overall consulting expenses. Vessel maintenance expenses were $109,182 during
2021 versus $193,844 during the same period in 2020, a decrease of 43.7%. The Company made fewer major repairs to its exploration and
recovery vessels in 2021 and did not use its previous main salvage vessel which was kept in dry dock due to extensive repair issues. Research
and development expenses were $439,816 in 2021 versus research and development expenses of $463,468 in 2020, a decrease of approximately
5.1%. The Companys research and development expenses were related to the development of its SeaSearcher autonomous underwater device
and related technology. The Company believes that it will continue to expend significant resources to further develop the SeaSearcher
and to begin developing next generation versions of the technology. During the year ended December 31, 2021, the Company incurred professional
fee related expenses of $83,196 versus $136,786 during the year ended December 31, 2020, a decrease of 39.2%. In 2021 the Company paid
fewer legal fees than it did during 2020 due to lower usage of legal services for permitting issues, which is the primary reason for the
year-over-year decrease in professional fees. General and administrative expenses for the year ended December 31, 2021 were $376,696 compared
to $244,328 for the year ended December 31, 2020, an increase of 54.2%. General and administrative fees increased in 2021 due to a higher
salary being paid to the Companys CEO. Depreciation expense was $21,860 for the year ended December 31, 2021 and $20,379 in 2020.
Rent expense was $41,182 in 2021 versus $$41,986 in 2020, a 1.9% year-over-year decrease. Travel and entertainment expenses for the year
ended December 31, 2021 were $63,096 versus $66,892 for the year ended December 31, 2020, a decrease of 5.7%.

16





Other
Income (Expenses)



Other
income (expense) was $(279,794) during the year ended December 31, 2021 versus $38,393 during the year ended December 31, 2020, a change
of $318,187. The 828.8% increase in other income (expense) in 2021 was primarily due to a large decrease in the disposal of an investment
and decrease in interest expense. Gain on disposal of investment was $0 during the year ended December 31, 2021 versus $354,000 in the
same period in 2020, see Note 5 – Investment in Probability and Statistics, Inc. Interest expense for the year ended December 31,
2021 was $177,499 versus $286,720 for the same period in 2020, a decrease of 38.1%. The decrease in interest expense was due to a decrease
in amortization of interest relating to the beneficial conversion features of several convertible notes. Loss on extinguishment of debt
was $121,847 during the year ended December 31, 2021 versus $34,375 during the same period in 2020. Net loss on settlement of accounts
payable was $448 during the year ended December 31, 2021 versus $4,512 for the same period in 2020. Gain on sale of asset was $20,000
during the year ended December 31, 2021 versus $5,500 in the same period in 2020. The Company received dividend income of $0 and $4,500
during the years ended December 31, 2021 and 2020, respectively.



Cash
Flows from Operating Activities



For
the year ended December 31, 2021 net cash flows used in operating activities was $1,715,582.



For
the year ended December 31, 2020 net cash flows used in operating activities was $1,885,788.



Cash
Flows from Investing Activities



For
the year ended December 31, 2021 net cash flows from investing activities was $20,000. The increase in net cash flow from investing activities
is attributable to the proceeds received from the sale of a vessel.



For
the year ended December 31, 2020 net cash flows from investing activities was $(6,500).



Cash
Flows from Financing Activities



For
the year ended December 31, 2021 net cash provided by financing activities was $1,590,510.



For
the year ended December 31, 2020 net cash provided by financing activities was $1,460,624.



Liquidity
and Capital Resources



At
December 31, 2021, the Company had $81,801 cash in the bank. During the years ended December 31, 2021 and 2020 the Company incurred net
losses of $2,625,414 and $2,660,813, respectively. At December 31, 2021, the Company had $85,551 in current assets and $1,754,250 in
current liabilities, leaving the Company a working capital deficit of $1,668,699.



Lack
of Liquidity



A
major financial challenge and significant risk facing the Company is a lack of positive cash flow and liquidity. The Company continued
to operate with significant debt and a working capital deficit during the year ended December 31, 2021. This working capital deficit
indicates that the Company is unable to meet its short-term liabilities with its current assets. This working capital
deficit is extremely risky for the Company as it may be forced to cease its operations due to its inability to meet its current obligations.
If the Company is forced to cease its operations, then it is highly likely that all capital invested in and/or borrowed by the Company
will be lost.



The
expenses associated with being a small publicly traded company attempting to develop the infrastructure to explore and salvage
historic shipwrecks recovery are extremely prohibitive, especially given that the Company does not currently generate any
significant revenues and does not expect to generate any significant revenues in the near future. There are ongoing expenses
associated with operations that are incurred whether the Company is conducting shipwreck recovery operations or not. Vessel
maintenance, upkeep expenses and docking fees are continuous and unavoidable regardless of the Companys operational status.
Management anticipates that the vessels utilized by the Company in its operations will need continuous and unavoidable repairs and
maintenance, particularly if the Company ramps up its operational footprint and is working on more than one site simultaneously as
anticipated. These repairs and maintenance are expensive and have a negative impact on the Companys cash position.



In
addition to the operation expenses, a publicly traded company also incurs the significant recurring corporate expenses related to maintaining
publicly traded status, which include, but are not limited to accounting, legal, audit, executive, administrative, corporate communications,
rent, telephones, etc. The recurring expenses associated with being a publicly traded company are very burdensome for smaller public
companies such as Seafarer. This lack of liquidity creates a very risky situation for the Company in terms of its ability to continue
operating, which in turn makes owning shares of the Companys common stock extremely risky and highly speculative. The Companys
lack of liquidity may cause the Company to be forced to cease operations at any time which would likely result in a complete loss of
all capital invested in or borrowed by the Company to date.

17





Due
to the fact that the Company does not generate any revenues and does not expect to generate revenues for the foreseeable future it must
rely on outside equity and debt funding. The combination of the ongoing operating expenses that must be met even during times when there
is little or no exploration or recovery activities taking place, and corporate expenses, creates a very risky situation for the Company
and its shareholders in terms of the need to access external financing to fund operations. This working capital shortfall and lack of
access to cash to fund corporate activities is extremely risky and may force the Company to cease its operations which would more than
likely result in a complete loss of all capital invested in or loaned to the Company to date.



Lack
of Revenues and Cash Flow/Significant Losses from Operations



The
exploration and recovery of historic shipwrecks requires a multi-year, multi-stage process and it may be many years before any significant
revenue is generated from exploration and recovery activities, if ever. The Company does not believe that it will generate any significant
revenues in the near future. The Company believes that it may be several years before it is able to generate any cash flow from its operations,
if any are ever generated at all. Without revenues and cash flow the Company does not have reliable cash flow to pay its expenses. The
Company relies on outside financing in the form of equity and debt and it is possible that the Company may not be able to obtain outside
financing in the future. If the Company is not able to obtain financing it would more than likely be forced to cease operations and all
of the capital that has been invested in or borrowed by the Company would be lost.



If
the Company is unable to secure additional financing, our business may fail or our operating results and our stock price may be materially
adversely affected. The raising of additional financing would in all likelihood result in dilution or reduction in the value of the Companys
securities.



The
Company may not be able to continue as a going concern. If the Company is not able to continue as a going concern, it is highly likely
that all capital invested in the Company or borrowed by the Company will be lost. The report of our independent auditors for the years
ended December 31, 2021 and 2020 raises substantial doubt as to our ability to continue as a going concern. As discussed in Note 2 to
our consolidated financial statements for the years ended December 31, 2021 and 2020, we have experienced operating losses in every year
since our inception resulting in an accumulated deficit. Our independent auditors believe, based on our financial results as of December
31, 2021, that such results raised substantial doubts about the Companys ability to continue as a going concern. If the Company
is not able to continue as a going concern, it is highly likely that all capital invested in the Company or borrowed by the Company will
be lost.



The
Company has experienced a net loss in every fiscal year since inception. The Companys losses from operations were $2,345,620 for
the year ended December 31, 2021 and $2,699,206 for the year ended December 31, 2020. The Company believes that it will continue to generate
losses from its operations for the foreseeable future and the Company may not be able to generate positive cash flow or a profit in the
long-term, or ever.



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 regarding
several loans 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 equity there is typically a
highly dilutive effect on current shareholders and very high probability that such dilution may significantly negatively affect the trading
price of the Companys common stock. Furthermore, management intends to have discussions or has already had discussions with several
of the promissory note holders who do not currently have convertible notes regarding converting their notes into equity. Any such amended
agreements to convert promissory notes into equity would more than likely have a highly dilutive effect on current shareholders and there
is a very high probability that such dilution may significantly negatively affect the trading price of the Companys common stock.
Some of these note holders have already amended their notes and converted the notes into equity. Based on conversations with other note
holders, the Company believes that additional note holders will amend their notes to contain a convertibility clause and eventually convert
the notes into equity.

18





Critical
Accounting Policies



Our
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these
financial statements requires us to make estimates and judgments which affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosures of contingent assets and liabilities (see Note 3, Significant Accounting Policies, contained in the
notes to the Companys consolidated financial statements for the years ended December 31, 2021 and 2020 contained in this filing).
On an ongoing basis, we evaluate our estimates. We base our estimates on historical experience and on various other assumptions which
we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value
of assets and liabilities which are not readily apparent from other sources. Actual results may differ from these estimates based upon
different assumptions or conditions; however, we believe that our estimates are reasonable.



Management
is aware that certain changes in accounting estimates employed in generating financial statements can have the effect of making the Company
look more or less profitable than it actually is. Management does not believe that the Company has made any such changes in accounting
estimates.



Off-balance
Sheet Arrangements



None.



Item
7A. Quantitative and Qualitative Disclosures About Market Risk.



Not
required.

19





Item
8. Financial Statements.



SEAFARER
EXPLORATION CORP.

CONSOLIDATED
FINANCIAL STATEMENTS

DECEMBER
31, 2021 AND 2020



TABLE
OF CONTENTS



|                                                                                                                      | Page No.  
|--------------------------------------------------------------------------------------------------------------------- | ----------
|Report of Independent Registered Public Accounting Firm (Accell Audit
    & Compliance, PA, Tampa, FL, PCAOB ID 3289) | F-1       
|                                                                                                                      |           
|Consolidated Balance Sheets                                                                                           | F-3       
|                                                                                                                      |           
|Consolidated Statements of Operations                                                                                 | F-4       
|                                                                                                                      |           
|Consolidated Statements of Changes in Stockholders Deficit                                                           | F-5       
|                                                                                                                      |           
|Consolidated Statements of Cash Flows                                                                                 | F-6       
|                                                                                                                      |           
|Notes to Consolidated Financial Statements                                                                            | F-7 – F-21

20





(ACCELL LOGO)



REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





To the Board of Directors and Stockholders of Seafarer
Exploration Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated
balance sheets of Seafarer Exploration Corp. (the Company) as of December 31, 2021 and 2020, and the related consolidated statements of
operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended December 31, 2021, and the
related notes and schedules (collectively referred to as the financial statements). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and
its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with accounting principles generally
accepted in the United States of America.

Substantial Doubt about the Company’s
Ability to Continue as a Going Concern

The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2, the Company has incurred
net losses and negative cash flow from operations since inception. These factors, and the need for additional financing in order for the
Company to meet its business plans raises substantial doubt about the Company’s ability to continue as a going concern. Our opinion
is not modified with respect to that matter.

Basis for Opinion

These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements
based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance
with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were
we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures
to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated
below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate
opinions on the critical audit matters or on the accounts or disclosures to which they relate.





|3001
    N. Rocky Point Dr. East Suite 200 ● Tampa, Florida 33607 ● 813.367.3527
|--------------------------------------------------------------------------------

F-1







Convertible Notes Payable

As described in Note 3 to the
Company’s consolidated financial statements, 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.

We identified the Company’s application
of the accounting for convertible notes as a critical audit matter. The principal considerations for our determination of this critical
audit matter related to the significant number of transactions which could potentially require a high degree of subjectivity in the Company’s
judgments in determining the qualitative factors. Auditing these judgments and assumptions by the Company involves auditor judgment due
to the nature and extent of audit evidence and effort required to address these matters.

The primary procedures we performed to address these critical
audit matters included the following:

| | · | We obtained debt related agreements and performed the following procedures:
| | - | ---------------------------------------------------------------------------

| | - | Reviewed agreements for all relevant terms.
| | - | -------------------------------------------

| | - | Tested management’s identification and treatment of agreement terms.
| | - | --------------------------------------------------------------------

| | - | Recalculated the fair value of each conversion feature based on the terms in the agreements.
| | - | --------------------------------------------------------------------------------------------

| | - | Assessed the terms and evaluated the appropriateness of management’s application
of their accounting policies, along with their use of estimates, in the determination of the amortization of the debt discount.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Stock Based Compensation

As described in Note 3 to the
Company’s consolidated financial statements, the Company accounts for stock based compensation by applying the fair value method
of ASC 718, which states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over
the service period, which is usually the vesting period. The Company values stock based compensation at the market price for the company’s
common stock and other pertinent factors at the grant date. Fully vested and non-forfeitable shares issued prior to the services being
performed are classified as prepaid expenses.

We identified the Company’s
application of the accounting for stock based compensation as a critical audit matter. The principal considerations for our determination
of this critical audit matter related to the significant number of transactions which could potentially require a high degree of subjectivity
in the Company’s judgments in determining the qualitative factors. Auditing these judgments and assumptions by the Company involves
auditor judgment due to the nature and extent of audit evidence and effort required to address these matters.

The primary procedures we performed to address this critical
audit matter included the following:

| | · | We obtained equity related agreements and performed the following procedures:
| | - | -----------------------------------------------------------------------------

| | - | Reviewed agreements for all relevant terms.
| | - | -------------------------------------------

| | - | Tested management’s identification and treatment of agreement terms.
| | - | --------------------------------------------------------------------

| | - | Recalculated the fair value of each award based on the market price determined
based on the terms in the agreements.
| | - | --------------------------------------------------------------------------------------------------------------------

| | - | Assessed the terms and evaluated the appropriateness of management’s application
of their accounting policies, along with their use of estimates, in the determination of any portion that should be classified as a prepaid
expense.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





(SIGNATURE)





We have served as the Company’s auditor since
2020.



Tampa, Florida

March 31, 2022





F-2





|SEAFARER
    EXPLORATION CORP. 
|-------------------------------
|CONSOLIDATED
    BALANCE SHEETS



|                                                                                                                                                                             |  | December 31, 2021 |             |   | December 31, 2020 |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ----------- | - | ----------------- | -
|Assets                                                                                                                                                                       |  |                   |             |   |                   |  
|Current assets                                                                                                                                                               |  |                   |             |   |                   |  
|Cash                                                                                                                                                                         |  | $                 | 81,801      |   |                   | $
|Prepaid expenses                                                                                                                                                             |  |                   | 3,000       |   |                   |  
|Deposits                                                                                                                                                                     |  |                   | 750         |   |                   |  
|Total current assets                                                                                                                                                         |  |                   | 85,551      |   |                   |  
|                                                                                                                                                                             |  |                   |             |   |                   |  
|Property, plant and equipment, net                                                                                                                                           |  |                   | 176,476     |   |                   |  
|Right of use asset                                                                                                                                                           |  |                   | 27,011      |   |                   |  
|Total Assets                                                                                                                                                                 |  | $                 | 289,038     |   |                   | $
|                                                                                                                                                                             |  |                   |             |   |                   |  
|Liabilities and Stockholders Deficit                                                                                                                                        |  |                   |             |   |                   |  
|Current liabilities                                                                                                                                                          |  |                   |             |   |                   |  
|Accounts payable and accrued expenses                                                                                                                                        |  | $                 | 517,038     |   |                   | $
|Deferred revenue                                                                                                                                                             |  |                   | 140,000     |   |                   |  
|Convertible notes payable, net of discounts of $0 and $13,425, respectively                                                                                                  |  |                   | -           |   |                   |  
|Convertible notes payable, related parties, net of discounts of $3,864 and $24,431, respectively                                                                             |  |                   | 2,136       |   |                   |  
|Convertible notes payable, in default                                                                                                                                        |  |                   | 235,300     |   |                   |  
|Convertible notes payable, in default - related parties                                                                                                                      |  |                   | 638,500     |   |                   |  
|Notes payable                                                                                                                                                                |  |                   | 50,000      |   |                   |  
|Notes payable, in default                                                                                                                                                    |  |                   | 128,000     |   |                   |  
|Notes payable, in default - related parties                                                                                                                                  |  |                   | 18,500      |   |                   |  
|Shareholder loan                                                                                                                                                             |  |                   | 7,900       |   |                   |  
|Lease liability, current                                                                                                                                                     |  |                   | 16,876      |   |                   |  
|Total current liabilities                                                                                                                                                    |  |                   | 1,754,250   |   |                   |  
|                                                                                                                                                                             |  |                   |             |   |                   |  
|Lease liability, long-term                                                                                                                                                   |  |                   | 10,718      |   |                   |  
|Total Liabilities                                                                                                                                                            |  |                   | 1,764,968   |   |                   |  
|                                                                                                                                                                             |  |                   |             |   |                   |  
|Commitments and contingencies (Note 9)                                                                                                                                       |  |                   |             |   |                   |  
|                                                                                                                                                                             |  |                   |             |   |                   |  
|Stockholders Deficit                                                                                                                                                        |  |                   |             |   |                   |  
|Preferred stock, $0.0001 par values - 50,000,000 shares authorized; 67 shares issued                                                                                         |  |                   |             |   |                   |  
|Series A - 7 shares issued and outstanding at December 31, 2021 and 2020                                                                                                     |  |                   | -           |   |                   |  
|Series B - 60 shares issued and outstanding at December 31, 2021 and 2020                                                                                                    |  |                   | -           |   |                   |  
|Common stock, $0.0001 par value - 9,900,000,000 shares authorized; 6,176,318,579 and 5,315,683,905 shares issued and outstanding at December 31, 2021 and 2020, respectively |  |                   | 617,632     |   |                   |  
|Common stock to be issued, $0.0001 par value, 37,750,000 and 1,500,000 shares outstanding at December 31, 2021 and 2020, respectively                                        |  |                   | 3,775       |   |                   |  
|Unearned compensation                                                                                                                                                        |  |                   | (261,536    | ) |                   |  
|Additional paid in capital                                                                                                                                                   |  |                   | 20,714,410  |   |                   |  
|Accumulated deficit                                                                                                                                                          |  |                   | (22,550,211 | ) |                   |  
|Total Stockholders Deficit                                                                                                                                                  |  |                   | (1,475,930  | ) |                   |  
|Total Liabilities and Stockholders Deficit                                                                                                                                  |  | $                 | 289,038     |   |                   | $



See
accompanying notes to the consolidated financial statements.

F-3





|SEAFARER
    EXPLORATION CORP.           
|-----------------------------------------
|CONSOLIDATED
    STATEMENTS OF OPERATIONS



|                                           |  | For the Years Ended December 31, |              
|------------------------------------------ |  | -------------------------------- | -------------
|                                           |  | 2021                             |              
|Revenue:                                   |  |                                  |              
|Service income                             |  | $                                | 23,761       
|                                           |  |                                  |              
|Operating Expenses                         |  |                                  |              
|Consulting and contractor expenses         |  |                                  | 1,234,353    
|Research and development                   |  |                                  | 439,816      
|General and administrative expense         |  |                                  | 376,696      
|Vessel maintenance and dockage             |  |                                  | 109,182      
|Professional fees                          |  |                                  | 83,196       
|Travel and entertainment expense           |  |                                  | 63,096       
|Depreciation expense                       |  |                                  | 21,860       
|Rent expense                               |  |                                  | 41,182       
|Total operating expenses                   |  |                                  | 2,369,381    
|                                           |  |                                  |              
|Net loss from operations                   |  |                                  | (2,345,620   
|                                           |  |                                  |              
|Other income (expense)                     |  |                                  |              
|Interest expense                           |  |                                  | (177,499     
|Loss on extinguishment of debt             |  |                                  | (121,847     
|Net loss on settlement of accounts payable |  |                                  | (448         
|Gain on sale of asset                      |  |                                  | 20,000       
|Gain on disposal of investment             |  |                                  | -            
|Dividend income                            |  |                                  | -            
|Total other income (expenses)              |  |                                  | (279,794     
|                                           |  |                                  |              
|Provision for income tax                   |  |                                  | -            
|                                           |  |                                  |              
|Net loss                                   |  | $                                | (2,625,414   
|                                           |  |                                  |              
|Basic and diluted loss per share           |  | $                                | (0.00        
|                                           |  |                                  |              
|Weighted average shares outstanding        |  |                                  | 5,645,802,431



See
accompanying notes to the consolidated financial statements.

F-4





|SEAFARER
    EXPLORATION CORP.                                 
|---------------------------------------------------------------
|CONSOLIDATED
    STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT
|FOR
    THE YEARS ENDED DECEMBER 31, 2021 AND 2020             



|                                                                                                    |  | Series A Preferred Stock |   |  | Series B Preferred Stock |   |   | Common Stock |  |  | Common Stock to be Issued |  |  | Unearned Compensation |   |  | Additional Paid in Capital |  |               | Accumulated Deficit |  |   | Total   |  
|--------------------------------------------------------------------------------------------------- |  | ------------------------ | - |  | ------------------------ | - | - | ------------ |  |  | ------------------------- |  |  | --------------------- | - |  | -------------------------- |  | ------------- | ------------------- |  | - | ------- | -
|                                                                                                    |  | Shares                   |   |  | Amount                   |   |   | Shares       |  |  | Amount                    |  |  | Shares                |   |  | Amount                     |  |               | Shares              |  |   | Amount  |  
|Balance December 31, 2019                                                                           |  |                          | 7 |  |                          | $ | - |              |  |  | 60                        |  |  | $                     | - |  |                            |  | 4,761,162,383 |                     |  | $ | 474,863 |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Common stock issued for cash                                                                        |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 425,777,619   |                     |  |   | 42,578  |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Stock issued for services                                                                           |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 136,842,821   |                     |  |   | 13,684  |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Shares cancelled and returned to treasury in exchange for cancellation of Investment in P & S, Inc. |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | (60,000,000   | )                   |  |   | (6,000  | )
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Stock issued for purchase of vehicle                                                                |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 1,000,000     |                     |  |   | 100     |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Shares issued for charitable contribution                                                           |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 1,000,000     |                     |  |   | 100     |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Stock issued to convert NP and Accrued Interest                                                     |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 39,781,082    |                     |  |   | 3,978   |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Shares reclassed from common stock to be issued                                                     |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 10,120,000    |                     |  |   | 1,012   |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Beneficial conversion feature                                                                       |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | -             |                     |  |   | -       |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Net Loss                                                                                            |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | -             |                     |  |   | -       |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Balance December 31, 2020                                                                           |  |                          | 7 |  |                          |   | - |              |  |  | 60                        |  |  |                       | - |  |                            |  | 5,315,683,905 |                     |  |   | 530,315 |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Common stock issued for cash                                                                        |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 720,353,061   |                     |  |   | 72,035  |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Stock issued to convert notes payable and accrued interest                                          |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 59,944,277    |                     |  |   | 5,993   |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Stock issued for services                                                                           |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 79,337,336    |                     |  |   | 9,189   |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Amortization of unearned compensation                                                               |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | -             |                     |  |   | -       |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Equity kicker                                                                                       |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | 1,000,000     |                     |  |   | 100     |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Beneficial conversion feature                                                                       |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | -             |                     |  |   | -       |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Net Loss                                                                                            |  |                          | - |  |                          |   | - |              |  |  | -                         |  |  |                       | - |  |                            |  | -             |                     |  |   | -       |  
|                                                                                                    |  |                          |   |  |                          |   |   |              |  |  |                           |  |  |                       |   |  |                            |  |               |                     |  |   |         |  
|Balance December 31, 2021                                                                           |  |                          | 7 |  |                          | $ | - |              |  |  | 60                        |  |  | $                     | - |  |                            |  | 6,176,318,579 |                     |  | $ | 617,632 |  



See
accompanying notes to the consolidated financial statements.

F-5





|SEAFARER
    EXPLORATION CORP.           
|-----------------------------------------
|CONSOLIDATED
    STATEMENTS OF CASH FLOWS



|                                                                            |  | For the Years Ended
December 31, |           
|--------------------------------------------------------------------------- |  | -------------------------------- | ----------
|                                                                            |  | 2021                             |           
|CASH FLOWS FROM OPERATING ACTIVITIES:                                       |  |                                  |           
|Net loss                                                                    |  | $                                | (2,625,414
|                                                                            |  |                                  |           
|Adjustments to reconcile net loss to net cash used by operating activities: |  |                                  |           
|Depreciation                                                                |  |                                  | 21,860    
|Amortization of beneficial conversion feature and loan fees                 |  |                                  | 39,992    
|Amortization of unearned compensation                                       |  |                                  | 79,022    
|Common stock issued for services                                            |  |                                  | 197,882   
|Common stock issued for a charitable contribution                           |  |                                  | -         
|Gain on sale of asset                                                       |  |                                  | -         
|Gain on disposal of investment                                              |  |                                  | -         
|Loss on extinguishment of debt                                              |  |                                  | 121,847   
|Net loss on settlement of accounts payable                                  |  |                                  | 448       
|Decrease (increase) in:                                                     |  |                                  |           
|Prepaid expenses                                                            |  |                                  | 120,039   
|Increase (decrease) in:                                                     |  |                                  |           
|Accounts payable and accrued expenses                                       |  |                                  | 188,742   
|Deferred revenue                                                            |  |                                  | 140,000   
|Net cash from operating activities                                          |  |                                  | (1,715,582
|                                                                            |  |                                  |           
|CASH FLOWS FROM INVESTING ACTIVITIES:                                       |  |                                  |           
|Purchase of property, plant and equipment                                   |  |                                  | -         
|Proceeds from sale of asset                                                 |  |                                  | 20,000    
|Net cash from investing activities                                          |  |                                  | 20,000    
|                                                                            |  |                                  |           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                       |  |                                  |           
|Proceeds from the issuance of common stock                                  |  |                                  | 1,530,110 
|Proceeds from the issuance of convertible notes payable                     |  |                                  | -         
|Proceeds from the issuance of convertible notes payable, related party      |  |                                  | 6,000     
|Proceeds from the issuance of notes payable                                 |  |                                  | 50,000    
|Payments on notes payable                                                   |  |                                  | (2,000    
|Proceeds from shareholders                                                  |  |                                  | 6,400     
|Net cash provided by financing activities                                   |  |                                  | 1,590,510 
|                                                                            |  |                                  |           
|NET CHANGE IN CASH                                                          |  |                                  | (105,072  
|CASH, BEGINNING OF PERIOD                                                   |  |                                  | 186,873   
|CASH, END OF PERIOD                                                         |  | $                                | 81,801    
|                                                                            |  |                                  |           
|Supplemental disclosure of cash flow information                            |  |                                  |           
|Cash paid for interest expense                                              |  | $                                | -         
|Cash paid for income taxes                                                  |  | $                                | -         
|                                                                            |  |                                  |           
|Non-cash operating and financing activities:                                |  |                                  |           
|Convertible debt and accrued interest converted to common stock             |  | $                                | 283,202   
|Operating lease liabilities and right of use asset                          |  | $                                | -         
|Beneficial conversion feature on convertible notes payable                  |  | $                                | 6,000     
|Stock issued for prepaid services                                           |  | $                                | -         
|Stock issued to purchase vehicle                                            |  | $                                | -         



See
accompanying notes to the consolidated financial statements.

F-6





SEAFARER
EXPLORATION CORP.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS



NOTE
1 – DESCRIPTION OF BUSINESS



Seafarer
Exploration Corp. (Seafarer or the Company), was incorporated on May 28, 2003 in the State of Delaware.



The
principal business of the Company is to engage in the archaeologically-sensitive exploration, documentation, recovery, and conservation
of historic shipwrecks with the objective of exploring and discovering Colonial-era shipwrecks for future generations to be able
to appreciate and understand.



In
March of 2014, Seafarer entered into a partnership with Marine Archaeology Partners, LLC (MAP), with the formation
of Seafarers Quest, LLC (SQ) for the purpose of exploring a shipwreck site off of Melbourne Beach, Florida.
Under the partnership with MAP, Seafarer is the designated manager of SQ.



The
Companys wholly owned subsidiary Blockchain LogisTech, LLC (Blockchain), was formed on April 4, 2018 and
began operations in 2019. Blockchain provides customer referrals to a blockchain related software service company.



Florida
Division of Historical Resources Agreements/Permits



The
Company successfully renewed its permits for both Areas 1 and 2 for the Melbourne Beach site. The Area 1 permit was renewed on
March 1, 2019 for a period of three years. The Area 2 permit was renewed on January 14, 2019 for a period of three years. Per
Florida Statutes, Seafarer made a timely request for renewal of the 2019 permit for Area 2 on July 29, 2021. In January of 2022,
Seafarer received notification from the Florida Division of Historical Resources (FDHR) that its permit for Area
2, which was set to expire on January 19, 2022, has been continued indefinitely while the renewal request was being processed.
The existing permits will continue until the renewal is finalized or rejected. Per Florida Statutes, Seafarer made a timely request
for renewal of the 2019 permit for Area 1 on July 29, 2021. On March 2, 2022, Seafarer received notification that the permit would
continue indefinitely with the same terms as Area 2.



Federal
Admiralty Judgement



As
previously noted on its form 8-K filed on November 22, 2017, Seafarer was granted, through the United States District Court for
the Southern District of Florida, a final judgment for its federal admiralty claim on the Juno Beach shipwreck site. The Company
is conducting limited exploration operations at the Juno Beach shipwreck site while it awaits updated permitting from the Army
Corp of Engineers and the Florida Department of Environmental Protection.



Blockchain
Software Services Referral Agreements



Blockchain
has a strategic partnership to provide referrals to a blockchain software services provider and receive referral fees when the
referrals lead to closed business for the blockchain software services company. Blockchain also has a reseller agreement with
a separate company that sells a blockchain related security product. Blockchain did not generate any revenues during the year
ended December 31, 2021. Management is reviewing potential alternate plans for Blockchain and believes that it is highly unlikely
that Blockchain will generate revenue in 2022.



NOTE
2 – GOING CONCERN



These
consolidated 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 and has an accumulated deficit of $22,550,211 as of December 31, 2021. During the year ended December
31, 2021, the Companys net loss was $2,625,414 and at December 31, 2021, the Company had a working capital deficit of $1,668,699.
These factors raise 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 March 31, 2022. Managements
plans include raising capital through the issuance of common stock and debt to fund operations and, eventually, the generation
of revenue through its business. The Company does not expect to generate any significant revenues for the foreseeable future.
The Company is in immediate need of further working capital and is seeking options, with respect to financing, in the form of
debt, equity or a combination thereof.



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 consolidated 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 consolidated 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.



F-7





Covid-19
Disclosure



The
COVID-19 global pandemic may have a serious negative affect on the Companys operations and business. It is possible that
this ongoing global pandemic may cause the Company to have to significantly delay or suspend its operations, which would likely
result in a material adverse impact on its business and financial positions.



Furthermore,
the Company may be unable to raise sufficient capital due to COVID-19s effects on the general economy and the capital markets.
If the Company is not able to obtain financing due to COVID-19, then it is highly likely that it will be forced to cease operations.
Smaller companies such as Seafarer, who lack significant revenues, earnings and cash flows as well as who lack diversified business
operations are particularly vulnerable to having to potentially cease operations due to the effects of COVID-19. If the Company
were to be unable to raise capital and cease its operations then it would be highly likely that the Company would not survive
and lenders and investors would suffer a complete loss of all capital loaned to or invested in the Company.



Current
Economic Conditions



The
Company and certain of its advisors are closely monitoring current domestic economic conditions. Of particular concern is the rate
of inflation that has been reported as being near a 40 year high and had recently increased nearly 7% on a year-over-year basis
from 2020 to 2021 and the rising cost of fuel. The increasing inflation in the overall economy may lead to higher interest rates
which may make it more expensive or potentially more challenging for the Company to access financing. Additionally, the Companys
vessels use large amounts of fuel when in operation and the recent rise in the per gallon cost of gasoline will cause an increase
in the Companys operating expenses. The increase in the cost of fuel may hamper the Companys ability to conduct
operations.



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
consolidated financial statements. The consolidated 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 (GAAP) and have been consistently applied in the preparation
of the consolidated financial statements.



Principles
of Consolidation



The
consolidated financial statements of the Company include the accounts of the Company and Blockchain which is a wholly owned subsidiary.
Intercompany accounts and transactions have been eliminated in consolidation.



Cash
and Cash Equivalents



For
purposes of the consolidated statements 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. There were no cash equivalents at December
31, 2021 and 2020. Financial instruments that potentially subject the Company to concentration of credit risk consist principally
of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC) up
to $250,000. At December 31, 2021, the Company did not have deposits in excess of the FDIC insured limit.



Research
and Development Expenses



Expenditures
for research and development are expensed as incurred. The Company incurred research and development expenses of $439,816 and
$463,468 for the years ended December 31, 2021 and 2020, respectively.



Revenue
Recognition



The
Company recognizes revenue in accordance with the Financial Accounting Standards Boards (FASB) Accounting
Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606)
and all the related amendments. The Company elected to adopt this guidance using the modified retrospective method. The adoption
of this guidance did not have a material effect on the Companys financial position, results of operations or cash flows.



The
core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates
may be required within the revenue recognition process than required under GAAP, including identifying performance obligations
in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction
price to each separate performance obligation.



The
Company recognizes revenue from the referrals that Blockchain has made to providers of software services when payment for a referral
is received from the provider of software services. Blockchain, at its sole discretion and with no specific sales quotas or targets,
provides referrals of potential end users to the software service providers and is paid a referral fee only after the software services
providers receive payment from the end user.



F-8





The
Company also has a separate sales referral agreement, with no sales quotas or specific goals or targets, with a limited liability
company that provides product/system engineering and development services. The Companys performance obligation is met when
the payment from the customer is received by the provider of the development services, which is at a point in time. The Company
receives referral fees when payment is received from the provider of the product/system development services which is when the
Company recognizes revenue under the agreement.



Earnings
Per Share



The
Company has adopted FASB ASC 260-10, which provides for the 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.



The
potentially dilutive common stock equivalents for the years ended December 31, 2021 and 2020 were excluded from the dilutive loss
per share calculation as they would be antidilutive due to the net loss. As of December 31, 2021 and 2020, there were approximately
648,056,162 and 663,053,249 shares of common stock underlying our outstanding convertible notes payable and warrants, respectively.



Fair
Value of Financial Instruments



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



Property,
Plant and Equipment



Property,
plant and equipment are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful
lives of the respective assets. During the year ended December 31, 2019, the Company purchased a vessel with an estimated useful
life of ten years. During the year ended December 31, 2020 the Company purchased a vehicle with an estimated useful life of seven
years. As of December 31, 2021, these are the only capital assets owned by the Company.



Depreciation
expense was $21,860 and $20,379 for the years ended December 31, 2021 and 2020, respectively, which is included in operating expenses
in the accompanying consolidated statements of operations.



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 the 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 years ended December 31, 2021
and 2020.



Use
of Estimates



The
process of preparing consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions regarding
certain types of assets, liabilities, revenues, and expenses. Significant estimates for the years ended December 31, 2021 and
2020 include useful life of property, plant and equipment, valuation allowances against deferred tax assets and the fair value
of non cash equity transactions.



Segment
Information



During
2019, Seafarers wholly owned subsidiary, Blockchain began operations, generated revenue and incurred expenses. The business
of Blockchain has no relation to the Companys shipwreck exploration and recovery operations other than common ownership.
As such, the Company concluded that the operations of Blockchain and Seafarer Exploration were separate reportable segments as
of the years ended December 31, 2021 and 2020 (see Note 11 – Segment Information).



Convertible
Notes Payable



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. ASC 470-10 addresses classification determination for specific obligations, such as short-term
obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue,
increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration
clauses. 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.



F-9





Stock
Based Compensation



The
Company applies the fair value method of FASB ASC 718, Share Based Payment, in accounting for its stock-based
compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and
is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the
market price for the Companys common stock and other pertinent factors at the grant date.



Fully
vested and non-forfeitable shares issued prior to the services being performed are classified as prepaid expenses.



Leases



In
February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The updated
guidance requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated
guidance requires that lessors separate lease and non-lease components in a contract in accordance with the new revenue guidance
in ASC 606.



On
January 1, 2019, the Company adopted ASU 2016-02, applying the package of practical expedients to leases that commenced before
the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain
leases and; (ii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the
inception of a contract the Company assessed whether the contract is, or contains, a lease. The Companys assessment is
based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right
to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether it has the right to
direct the use of the asset. The Company will allocate the consideration in the contract to each lease component based on its
relative stand-alone price to determine the lease payments.



Operating
lease right of use (ROU) assets represents the right to use the leased asset for the lease term and operating lease
liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement
date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information
available at the adoption date in determining the present value of future payments. Lease expense for minimum lease payments is
amortized on a straight-line basis over the lease term and is presented in operating expenses on the consolidated statements of
operations.



As
permitted under the new guidance, the Company has made an accounting policy election not to apply the recognition provisions of
the new guidance to short term leases (leases with a lease term of twelve months or less that do not include an option to purchase
the underlying asset that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments
for short term leases on a straight-line basis over the lease term.



Investments



The
Company follows ASC 325-20, Cost Method Investments (ASC 325-20), to account for its ownership interest in
noncontrolled entities. Under ASC 325-20, equity securities that do not have readily determinable fair values (i.e., non-marketable
equity securities) and are not required to be accounted for under the equity method are typically carried at cost (i.e., cost
method investments). Investments of this nature are initially recorded at cost. Income is recorded for dividends received that
are distributed from net accumulated earnings of the noncontrolled entity subsequent to the date of investment. Dividends received
in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions
in the cost of the investment. Investments are written down only when there is clear evidence that a decline in value that is
other than temporary has occurred.



Income
Taxes



Income
taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and
liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and
are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax
assets that, based on available evidence, are not expected to be realized.



Recent
Accounting Pronouncements



All
other recent accounting pronouncements issued by the FASB, did not or are not believed by management to have a material impact
on the Companys present or future consolidated financial statements.



NOTE
4 – OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES



Operating
lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement
date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 6%, as the interest
rate implicit in most of the Companys leases are not readily determinable. Operating lease expense is recognized on a straight-line
basis over the lease term. During the years ended December 31, 2021 and 2020, the Company recorded $18,403 and $10,398, respectively,
as operating lease expense, which is included in rent expense on the consolidated statements of operations.

F-10





The
Company leases 823 square feet of office space located at 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 33618. During
the year ended December 31, 2019 and through June 30, 2020 the Company paid $1,252 per month to lease the office space. The Company
entered into an amended lease agreement commencing on July 1, 2020 through July 31, 2023 with base month rents of $1,475 from
July 1, 2020 to June 30, 2021, $1,519 from July 1, 2021 to June 30, 2022, $1,564 from July 1, 2022 to June 30, 2023 and $1,611
from July 1, 2023 to July 31, 2023. Under the terms of the lease there may be additional fees charged above the base monthly rental
fee.



In
adopting Topic 842, the Company has elected the package of practical expedients, which permit it not to reassess
under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company
did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the
Company. As permitted under the new guidance, the Company has made an accounting policy election not to apply the recognition
provisions of the new guidance to short term leases (leases with a lease term of twelve months or less that do not include an
option to purchase the underlying asset that the lessee is reasonably certain to exercise); instead, the Company will recognize
the lease payments for short term leases on a straight-line basis over the lease term. On January 1, 2019, upon adoption of Topic
842, the Company recorded right-of-use assets and lease liabilities of $22,575. On July 1, 2020, upon renewal of the lease, the
Company recorded a right-of-use asset and lease liability of $48,957.



Right-of-use
assets at December 31, 2021 and 2020 are summarized below:



|                              |  | December 31, 2021 |         |   | December 31, 2020 |  
|----------------------------- |  | ----------------- | ------- | - | ----------------- | -
|Office lease                  |  | $                 | 48,957  |   |                   | $
|Less accumulated amortization |  |                   | (21,946 | ) |                   |  
|Right of use assets, net      |  | $                 | 27,011  |   |                   | $



Amortization
on the right -of -use asset is included in rent expense on the consolidated statements of operations.



Operating
lease liabilities are summarized below:



|                      |  | December 31, 2021 |         |   | December 31, 2020 |  
|--------------------- |  | ----------------- | ------- | - | ----------------- | -
|Office lease          |  | $                 | 27,594  |   |                   | $
|Less: current portion |  |                   | (16,876 | ) |                   |  
|Long term portion     |  | $                 | 10,718  |   |                   | $



Maturity
of lease liabilities are as follows:



|Year ended December 31, 2022        |  | $ | 18,641 |  
|----------------------------------- |  | - | ------ | -
|Year ended December 31, 2023        |  |   | 11,080 |  
|Total future minimum lease payments |  |   | 29,721 |  
|Less: Present value discount        |  |   | (2,127 | )
|Lease liability                     |  | $ | 27,594 |  



The
Company also has an operating lease for a house located in Palm Bay, Florida that it leases on a month-to-month basis for $1,300
per month. 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 Company also
pays a rental fee for a space in a park on an as needed basis.



NOTE
5 – INVESTMENT IN PROBABILITY AND STATISTICS, INC.



The
Company entered into a share exchange agreement with Probability and Statistics, Inc. (P&S), a privately held
corporation, in August of 2018.



Under
the terms of the share exchange agreement, the Company agreed to issue 60,000,000 shares of its restricted common stock to P&S
in exchange for 10,000 common shares of P&S, or a 1% interest. All shares issued by both parties under the agreement have
all rights and entitlements as the common stock of every other shareholder of such share class.



The
investment in P&S was valued at $78,000 based on the fair value of the Companys shares issued to P&S on the date
of the share exchange agreement and is being accounted for as a cost method investment. The Company received dividends from P&S
during the years ended December 31, 2021 and 2020 of $0 and $4,500 respectively, which have been presented as dividend income
on the consolidated statements of operations.



In
August of 2020, the Company and P&S entered into a new agreement to effectively unwind the previous share exchange agreement.
Under the terms of the new agreement, Seafarer agreed to exchange 10,000 shares of P&S for 60,000,000 shares of its common
stock. As a result of the transaction in August of 2020, the Company realized a disposal of investment of $354,000.

F-11





Seafarer
also has an agreement with P&S to receive referral fees. Under the terms of the agreement, P&S has agreed to pay a 7%
referral fee to the Company when P&S receives cash flows from providing blockchain software services to entities that were
referred by the Company. The agreement is ongoing and has no expiration date, however the Company does not anticipate that it
will receive any referral fees from P&S in the future. During the years ended December 31, 2021 and 2020, P&S paid a total
of $0 and $4,200, respectively, of referral fees to the Company. These amounts are included in service income in the consolidated
statements of operations.



NOTE 6 –
CONVERTIBLE NOTES PAYABLE AND NOTES PAYABLE



Convertible
Notes Payable



PAYABLE



The
following table reflects the convertible notes payable as of December 31, 2021 and 2020:



|                                      |  | Issue
    Date |   | Maturity
    Date |  | December
    31, 2021 |         |   | December
    31, 2020 |   |        | Rate |  |  | Conversion
    Price |  
|------------------------------------- |  | -------------- | - | ----------------- |  | --------------------- | ------- | - | --------------------- | - | ------ | ---- |  |  | -------------------- | -
|                                      |  |                |   |                   |  | Principal Balance     |         |   | Principal Balance     |   |        |      |  |  |                      |  
|Convertible notes payable             |  |                |   |                   |  |                       |         |   |                       |   |        |      |  |  |                      |  
|                                      |  | 09/01/20       |   | 03/01/21          |  | $                     | -       |   |                       | $ | 45,000 |      |  |  | 6.00                 | %
|Face value                            |  |                |   |                   |  |                       | -       |   |                       |   | 45,000 |      |  |  |                      |  
|                                      |  |                |   |                   |  |                       |         |   |                       |   |        |      |  |  |                      |  
|Less unamortized discounts            |  |                | - |                   |  |                       | (13,425 | ) |                       |   |        |      |  |  |                      |  
|                                      |  |                |   |                   |  |                       |         |   |                       |   |        |      |  |  |                      |  
|Balance convertible
    notes payable |  | $              | - |                   |  | $                     | 31,575  |   |                       |   |        |      |  |  |                      |  



|                                                        |  | Issue
    Date |  | Maturity
    Date |  | December
    31, 2021 |        | December
    31, 2020 |  | Rate |         | Conversion
    Price
|------------------------------------------------------- |  | -------------- |  | ----------------- |  | --------------------- | ------ | --------------------- |  | ---- | ------- | --------------------
|                                                        |  |                |  |                   |  | Principal
    Balance |        | Principal
    Balance |  |      |         |                     
|Convertible
    notes payable - related parties         |  |                |  |                   |  |                       |        |                       |  |      |         |                     
|                                                        |  | 08/06/20       |  | 02/06/21          |  | $                     | —      |                       |  | $    | 25,200  |                     
|                                                        |  | 08/06/20       |  | 02/06/21          |  |                       | —      |                       |  |      | 35,000  |                     
|                                                        |  | 08/14/20       |  | 02/14/21          |  |                       | —      |                       |  |      | 50,400  |                     
|                                                        |  | 10/13/21       |  | 04/13/22          |  |                       | 3,000  |                       |  |      | —       |                     
|                                                        |  | 11/10/21       |  | 05/10/22          |  |                       | 3,000  |                       |  |      | —       |                     
|Face value                                              |  |                |  |                   |  |                       | 6,000  |                       |  |      | 110,600 |                     
|                                                        |  |                |  |                   |  |                       |        |                       |  |      |         |                     
|Less
    unamortized discounts                          |  |                |  |                   |  |                       | (3,864 | )                     |  |      | (24,431 | )                   
|                                                        |  |                |  |                   |  |                       |        |                       |  |      |         |                     
|Balance
    convertible notes payable - related parties |  |                |  |                   |  | $                     | 2,136  |                       |  | $    | 86,169  |                     





|                                                   |  | Issue
    Date |         | Maturity
    Date |  | December
    31, 2021 |         |  | December
    31, 2020 |   |        | Rate |  |  | Conversion
    Price |  
|-------------------------------------------------- |  | -------------- | ------- | ----------------- |  | --------------------- | ------- |  | --------------------- | - | ------ | ---- |  |  | -------------------- | -
|                                                   |  |                |         |                   |  | Principal Balance     |         |  | Principal Balance     |   |        |      |  |  |                      |  
|Convertible notes payable - in default             |  |                |         |                   |  |                       |         |  |                       |   |        |     
|                                                   |  | 08/28/09       |         | 11/01/09          |  | $                     | 4,300   |  |                       | $ | 4,300  |      |  |  | 10.00                | %
|                                                   |  | 11/20/12       |         | 05/20/13          |  |                       | 50,000  |  |                       |   | 50,000 |      |  |  | 6.00                 | %
|                                                   |  | 01/19/13       |         | 07/30/13          |  |                       | 5,000   |  |                       |   | 5,000  |      |  |  | 6.00                 | %
|                                                   |  | 02/11/13       |         | 08/11/13          |  |                       | 9,000   |  |                       |   | 9,000  |      |  |  | 6.00                 | %
|                                                   |  | 09/25/13       |         | 03/25/14          |  |                       | 10,000  |  |                       |   | 10,000 |      |  |  | 6.00                 | %
|                                                   |  | 10/04/13       |         | 04/04/14          |  |                       | 50,000  |  |                       |   | 50,000 |      |  |  | 6.00                 | %
|                                                   |  | 10/30/13       |         | 10/30/14          |  |                       | -       |  |                       |   | 50,000 |      |  |  | 6.00                 | %
|                                                   |  | 05/15/14       |         | 11/15/14          |  |                       | 40,000  |  |                       |   | 40,000 |      |  |  | 6.00                 | %
|                                                   |  | 09/18/15       |         | 03/18/16          |  |                       | 25,000  |  |                       |   | 25,000 |      |  |  | 6.00                 | %
|                                                   |  | 04/04/16       |         | 10/04/16          |  |                       | -       |  |                       |   | 10,000 |      |  |  | 6.00                 | %
|                                                   |  | 07/19/16       |         | 07/19/17          |  |                       | 4,000   |  |                       |   | 4,000  |      |  |  | 6.00                 | %
|                                                   |  | 03/06/18       |         | 09/06/18          |  |                       | 6,000   |  |                       |   | 6,000  |      |  |  | 6.00                 | %
|                                                   |  | 02/06/18       |         | 11/07/18          |  |                       | 6,000   |  |                       |   | 6,000  |      |  |  | 6.00                 | %
|                                                   |  | 10/29/18       |         | 04/29/19          |  |                       | -       |  |                       |   | 3,000  |      |  |  | 6.00                 | %
|                                                   |  | 01/03/19       |         | 07/03/19          |  |                       | 1,000   |  |                       |   | 1,000  |      |  |  | 6.00                 | %
|                                                   |  | 03/16/19       |         | 09/16/19          |  |                       | -       |  |                       |   | 10,000 |      |  |  | 6.00                 | %
|                                                   |  | 09/04/19       |         | 03/04/20          |  |                       | 25,000  |  |                       |   | 25,000 |      |  |  | 6.00                 | %
|Balance convertible
    notes payable - in default |  | $              | 235,300 |                   |  | $                     | 308,300 |  |                       |   |        |      |  |  |                      |  

F-12





|                                                                |  | Issue Date |         | Maturity Date |  | December 31, 2021 |         |  | December 31, 2020 |   |        | Rate |  |  | Conversion Price |  
|--------------------------------------------------------------- |  | ---------- | ------- | ------------- |  | ----------------- | ------- |  | ----------------- | - | ------ | ---- |  |  | ---------------- | -
|                                                                |  |            |         |               |  | Principal Balance |         |  | Principal Balance |   |        |      |  |  |                  |  
|Convertible notes payable - related parties, in default         |  |            |         |               |  |                   |         | 
|                                                                |  | 01/09/09   |         | 01/09/10      |  | $                 | 10,000  |  |                   | $ | 10,000 |      |  |  | 10.00            | %
|                                                                |  | 01/25/10   |         | 01/25/11      |  |                   | 6,000   |  |                   |   | 6,000  |      |  |  | 6.00             | %
|                                                                |  | 01/18/12   |         | 07/18/12      |  |                   | 50,000  |  |                   |   | 50,000 |      |  |  | 8.00             | %
|                                                                |  | 01/19/13   |         | 07/30/13      |  |                   | 15,000  |  |                   |   | 15,000 |      |  |  | 6.00             | %
|                                                                |  | 07/26/13   |         | 01/26/14      |  |                   | 10,000  |  |                   |   | 10,000 |      |  |  | 6.00             | %
|                                                                |  | 01/17/14   |         | 07/17/14      |  |                   | 31,500  |  |                   |   | 31,500 |      |  |  | 6.00             | %
|                                                                |  | 05/27/14   |         | 11/27/14      |  |                   | 7,000   |  |                   |   | 7,000  |      |  |  | 6.00             | %
|                                                                |  | 07/21/14   |         | 01/25/15      |  |                   | 17,000  |  |                   |   | 17,000 |      |  |  | 6.00             | %
|                                                                |  | 10/16/14   |         | 04/16/15      |  |                   | 21,000  |  |                   |   | 21,000 |      |  |  | 6.00             | %
|                                                                |  | 07/14/15   |         | 01/14/16      |  |                   | 9,000   |  |                   |   | 9,000  |      |  |  | 6.00             | %
|                                                                |  | 01/12/16   |         | 07/12/16      |  |                   | 5,000   |  |                   |   | 5,000  |      |  |  | 6.00             | %
|                                                                |  | 05/10/16   |         | 11/10/16      |  |                   | 5,000   |  |                   |   | 5,000  |      |  |  | 6.00             | %
|                                                                |  | 05/10/16   |         | 11/10/16      |  |                   | 5,000   |  |                   |   | 5,000  |      |  |  | 6.00             | %
|                                                                |  | 05/20/16   |         | 11/20/16      |  |                   | 5,000   |  |                   |   | 5,000  |      |  |  | 6.00             | %
|                                                                |  | 07/12/16   |         | 01/12/17      |  |                   | 2,400   |  |                   |   | 2,400  |      |  |  | 6.00             | %
|                                                                |  | 01/26/17   |         | 03/12/17      |  |                   | 5,000   |  |                   |   | 5,000  |      |  |  | 6.00             | %
|                                                                |  | 02/14/17   |         | 08/14/17      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 08/16/17   |         | 09/16/17      |  |                   | 3,000   |  |                   |   | 3,000  |      |  |  | 6.00             | %
|                                                                |  | 03/14/18   |         | 05/14/18      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 04/04/18   |         | 06/04/18      |  |                   | 3,000   |  |                   |   | 3,000  |      |  |  | 6.00             | %
|                                                                |  | 04/11/18   |         | 06/11/18      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 05/08/18   |         | 07/08/18      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 05/30/18   |         | 08/30/18      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 06/12/18   |         | 09/12/18      |  |                   | 3,000   |  |                   |   | 3,000  |      |  |  | 6.00             | %
|                                                                |  | 06/20/18   |         | 09/12/18      |  |                   | 500     |  |                   |   | 500    |      |  |  | 6.00             | %
|                                                                |  | 01/09/18   |         | 01/09/19      |  |                   | 12,000  |  |                   |   | 12,000 |      |  |  | 6.00             | %
|                                                                |  | 08/27/18   |         | 02/27/19      |  |                   | 2,000   |  |                   |   | 2,000  |      |  |  | 6.00             | %
|                                                                |  | 10/02/18   |         | 04/02/19      |  |                   | 1,000   |  |                   |   | 1,000  |      |  |  | 6.00             | %
|                                                                |  | 10/23/18   |         | 04/23/19      |  |                   | 4,200   |  |                   |   | 4,200  |      |  |  | 6.00             | %
|                                                                |  | 11/07/18   |         | 05/07/19      |  |                   | 2,000   |  |                   |   | 2,000  |      |  |  | 6.00             | %
|                                                                |  | 11/14/18   |         | 05/14/19      |  |                   | 8,000   |  |                   |   | 8,000  |      |  |  | 6.00             | %
|                                                                |  | 01/08/19   |         | 07/08/19      |  |                   | 7,000   |  |                   |   | 7,000  |      |  |  | 6.00             | %
|                                                                |  | 04/25/19   |         | 12/23/19      |  |                   | 20,000  |  |                   |   | 20,000 |      |  |  | 6.00             | %
|                                                                |  | 06/07/19   |         | 12/07/19      |  |                   | 5,100   |  |                   |   | 5,100  |      |  |  | 6.00             | %
|                                                                |  | 09/17/19   |         | 04/17/20      |  |                   | 12,000  |  |                   |   | 12,000 |      |  |  | 6.00             | %
|                                                                |  | 11/12/19   |         | 05/12/20      |  |                   | 25,000  |  |                   |   | 25,000 |      |  |  | 6.00             | %
|                                                                |  | 11/26/19   |         | 05/26/20      |  |                   | 25,200  |  |                   |   | 25,200 |      |  |  | 6.00             | %
|                                                                |  | 12/03/19   |         | 06/03/20      |  |                   | 15,000  |  |                   |   | 15,000 |      |  |  | 6.00             | %
|                                                                |  | 01/07/20   |         | 06/20/20      |  |                   | 51,000  |  |                   |   | 51,000 |      |  |  | 6.00             | %
|                                                                |  | 08/06/20   |         | 02/06/21      |  |                   | 25,200  |  |                   |   | -      |      |  |  | 6.00             | %
|                                                                |  | 08/06/20   |         | 02/06/21      |  |                   | 35,000  |  |                   |   | -      |      |  |  | 6.00             | %
|                                                                |  | 08/14/20   |         | 02/14/21      |  |                   | 50,400  |  |                   |   | -      |      |  |  | 6.00             | %
|Balance convertible notes payable - related parties, in default |  | $          | 638,500 |               |  | $                 | 527,900 |  |                   |   |        |      |  |  |                  |  
|                                                                |  |            |         |               |  |                   |         |  |                   |   |        |      |  |  |                  |  
|Balance all convertible notes payable                           |  | $          | 875,936 |               |  | $                 | 953,944 |  |                   |   |        |      |  |  |                  |  

F-13





Notes
Payable



The
following tables reflect the notes payable at December 31, 2021 and 2020:



|                      |  | Issue Date |  | Maturity Date |  | December 31, 2021 |        |  | December 31, 2020 |   |   | Rate
|--------------------- |  | ---------- |  | ------------- |  | ----------------- | ------ |  | ----------------- | - | - | ----
|                      |  |            |  |               |  | Principal Balance |        |  | Principal Balance |  
|Notes payable         |  |            |  |               |  |                   |        |  |                   |   |   |     
|                      |  | 12/08/21   |  | 01/08/22      |  | $                 | 50,000 |  |                   | $ | - |     
|Balance notes payable |  |            |  |               |  | $                 | 50,000 |  |                   | $ | - |     



|                                |  | Issue Date |  | Maturity Date |  | December 31, 2021 |         |  | December 31, 2020 |   |         | Rate
|------------------------------- |  | ---------- |  | ------------- |  | ----------------- | ------- |  | ----------------- | - | ------- | ----
|                                |  |            |  |               |  | Principal Balance |         |  | Principal Balance |  
|Notes payable - in default      |  |            |  |               |  |                   |         |  |                   |   |         |     
|                                |  | 04/27/11   |  | 04/27/12      |  | $                 | 5,000   |  |                   | $ | 5,000   |     
|                                |  | 12/14/17   |  | 12/14/18      |  |                   | 18,000  |  |                   |   | 20,000  |     
|                                |  | 11/29/17   |  | 11/29/19      |  |                   | 105,000 |  |                   |   | 105,000 |     
|Balance notes payable – default |  |            |  |               |  | $                 | 128,000 |  |                   | $ | 130,000 |     



|                                                    |  | Issue Date |  | Maturity Date |  | December 31, 2021 |         |  | December 31, 2020 |   |         | Rate
|--------------------------------------------------- |  | ---------- |  | ------------- |  | ----------------- | ------- |  | ----------------- | - | ------- | ----
|                                                    |  |            |  |               |  | Principal Balance |         |  | Principal Balance |  
|Notes payable - related parties, in default         |  |            |  |               |  |                   |         |  |                   |   |         |     
|                                                    |  | 02/24/10   |  | 02/24/11      |  | $                 | 7,500   |  |                   | $ | 7,500   |     
|                                                    |  | 10/06/15   |  | 11/15/15      |  |                   | 10,000  |  |                   |   | 10,000  |     
|                                                    |  | 02/08/18   |  | 04/09/18      |  |                   | 1,000   |  |                   |   | 1,000   |     
|Balance notes payable - related parties, in default |  |            |  |               |  | $                 | 18,500  |  |                   | $ | 18,500  |     
|                                                    |  |            |  |               |  |                   |         |  |                   |   |         |     
|Balance all notes payable                           |  |            |  |               |  | $                 | 196,500 |  |                   | $ | 148,500 |     



The
convertible notes payable are convertible into a fixed number of shares and with no down round protection features. The Company accounted
for the beneficial conversion features based on the intrinsic value at the date of issuance. During the years ended December 31, 2021
and 2020, the Company recognized beneficial conversion features totaling $6,000 and $202,100, respectively. The discount from the beneficial
conversion features are being amortized through charges to interest expense over the term of the convertible notes payable. For the years
ended December 31, 2021 and 2020, the Company recorded interest expense related to the amortization of debt discounts in the amount of
approximately $40,000 and $240,000 which is included in interest expense on the consolidated statements of operations.



New
Convertible Notes Payable Issued During the Years Ended December 31, 2021 and 2020



During
the year ended December 31, 2021, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:



In
October of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on
or before April 13, 2022. The note is unsecured and is convertible at the lenders option into shares of the Companys common
stock at a rate of $0.0020 per share.



In
November of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on
or before May 10, 2022. The note is unsecured and is convertible at the lenders option into shares of the Companys common
stock at a rate of $0.0020 per share.



During
the year ended December 31, 2020, the Company entered into the following Convertible Notes Payable and Notes Payable Agreements:



In
January of 2020, the Company entered into a convertible promissory note agreement in the amount of $51,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before June 30, 2020. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.003 per share. This note is currently in default due to non payment of principal and interest.



F-14





In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $25,200 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before February 6, 2021. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.0035 per share. This note is currently in default due to non payment of principal and interest.



In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $35,000 with a related party. This
note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before February 6, 2021. The note is
unsecured and is convertible at the lenders option into shares of the Companys common stock at a rate of $0.0035 per share.
This note is currently in default due to non payment of principal and interest.



In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $50,400 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before February 14, 2021. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.0035 per share. This note is currently in default due to non payment of principal and interest.



In
September of 2020, the Company entered into a convertible promissory note agreement in the amount of $45,000 with an individual. This
note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before March 1, 2021. The note is unsecured
and is convertible at the lenders option into shares of the Companys common stock at a rate of $0.003 per share. This note
is currently in default due to non payment of principal and interest.



Note
Conversions



During
the year ended December 31, 2021:



The
Company issued 8,734,640 shares of restricted common stock to a related party to settle $20,302 of accrued interest owed on sixteen convertible
notes payable with a total share value of $57,648.



The
Company issued 15,594,247 shares of restricted common stock to a convertible note holder to settle $45,000 of the principal balance and
$1,783 of accrued interest on a convertible note payable with a total share value of $79,530.



The
Company issued 35,615,390 shares of restricted common stock to a convertible note holder to settle $73,000 of the principal balance and
$28,761 of accrued interest on four convertible notes payable with a total share value of $146,024.



During
the year ended December 31, 2020:



The
Company issued 39,781,082 shares of restricted common stock to settle $84,086 of principal and accrued interest owed on three convertible
notes payable. The remaining principal balance of all of these notes was $0 at December 31, 2020.



Repayment
of Promissory Note



During
the years ended December 31, 2021 and 2020, the Company repaid a total of $2,000 and $45,000, respectively, of the principal of a promissory
note with an original principal balance of $75,000 that was due on December 14, 2018. The remaining principal balance of the note at
December 31, 2021 was $18,000.



Shareholder
Loan



At
December 31, 2021, the Company had the following four loans outstanding to its CEO in the aggregate amount of $7,900:



| | - | A
                                            loan with no due date with a $1,500 remaining balance and an interest rate of 2% and a conversion
                                            rate of $0.0005;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A
                                            loan due on October 26, 2021 with a remaining balance of $4,000 and an interest
                                            rate of 1%;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A
                                            loan   due on January 22, 2022 with a remaining balance of $1,400 and an interest
                                            rate of 1%; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A
                                            loan   due on January 26, 2022 with a remaining balance of $1,000 and an interest rate
                                            of 1%;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Repayment
of Shareholder Loan



During
the year ended December 31, 2021 the Company repaid its CEO $2,000 for a loan dated April 26, 2021 that had an original principle balance
of $6,000.



Collateralized
Promissory Notes



Two
convertible notes outstanding with related parties, dated January 9, 2009 and January 18, 2012 are collateralized by Company assets.

F-15





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.



NOTE
7 – STOCKHOLDERS DEFICIT



The
Companys total authorized capital stock consists of 9,900,000,000 shares of common stock, $0.0001 par value per share.



Preferred
Stock



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



Series
A Preferred Stock



At
December 31, 2021 and 2020, the Company had seven shares of Series A preferred stock issued and outstanding. Each share of Series A preferred
stock has the right to convert into 214,289 shares of the Companys common stock. In the event of a liquidation, Series A have
preference.



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 stock 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.



Common
Stock Issuances



During
the year ended December 31, 2021, the Company issued or is to issue the following shares of restricted common stock:



| | - | 720,353,061
    restricted shares for total proceeds of $1,530,110.
| | - | -------------------------------------------------------------------
| |   |                                                                    

| | - | 59,944,277
    restricted shares to settle $283,202 of principal and accrued interest owed on various convertible notes payable. The Company had
    a loss on extinguishment of debt totaling $121,847.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                         

| | - | 79,337,336
                                            restricted shares for services provided by consultants, contractors, advisory members, board
                                            members, and other service providers with a value of $197,882. The Company determined the
                                            fair value of the shares issued using the stock price on date of issuance. Compensation expense
                                            is recognized as the services are provided to the Company.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | 1,000,000 restricted shares issued as a financing fee to a convertible promise note holder.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

During
the year ended December 31, 2020, the Company issued or is to issue the following shares of restricted common stock:



| | - | 425,777,619
    shares for total proceeds of $1,299,024.
| | - | --------------------------------------------------------
| |   |                                                         

| | - | 136,842,821
    restricted shares for services provided by consultants, contractors, advisory members, board members, and other service providers.
    The Company determined the fair value of the shares issued using the stock price on date of grant or issuance. Compensation expense
    is recognized as the services are provided to the Company. For the year ended December 31, 2020, the Company incurred $751,416 of
    compensation expense for stock issued for services and have prepaid expenses of $123,039 at December 31, 2020 for stock issued prior
    to services being performed. The Company recorded unearned compensation of $67,058 on its consolidated balance sheet for the year
    ended December 31, 2020.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

| | - | 39,781,082
    shares to settle $84,086 of principle and accrued interest owed on various convertible notes payable and one note payable.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

F-16





| | - | 1,000,000
    shares valued at $6,000 for the purchase of a vehicle. The Company determined the fair value of the shares issued for the purchase
    of the vehicle using the stock price on the date of the bill of sale.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                           

| | - | 1,000,000
    shares valued at $9,700 issued as charitable contributions to a charity. The Company determined the fair value of the shares issued
    using the stock price on date of issuance.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                 

| | - | 60,000,000
    shares were cancelled and returned to the treasure (See Note 5 – Investment in Probability and Statistics, Inc.).
| | - | --------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                 

| | - | 10,120,000
    restricted shares reclassed from common stock to be issued.
| | - | --------------------------------------------------------------------------



Warrants
and Options



The
Company did not issue any warrants or options during the years ended December 31, 2021 and 2020.



At
December 31, 2021, the Company had warrants to purchase a total of 4,000,000 shares of its restricted common stock outstanding.



The
following table shows the warrants outstanding at December 31, 2021 and 2020:



|                               |  | Number of |            |   | Weighted Average |   |        | Weighted Average       |  |  | Average         | 
|------------------------------ |  | --------- | ---------- | - | ---------------- | - | ------ | ---------------------- |  |  | --------------- | 
|                               |  | Warrants  |            |   | Exercise Price   |   |        | Remaining Life (Years) |  |  | Intrinsic Value | 
|Outstanding, December 31, 2019 |  |           | 8,000,000  |   |                  | $ | 0.0040 |                        |  |  | 1.83            | 
|Granted                        |  |           | -          |   |                  |   | -      |                        |  |  | -               | 
|Forfeited or expired           |  |           | (4,000,000 | ) |                  |   | 0.0030 |                        |  |  | -               | 
|Exercised                      |  |           | -          |   |                  |   | -      |                        |  |  | -               | 
|Outstanding, December 31, 2020 |  |           | 4,000,000  |   |                  | $ | 0.0050 |                        |  |  | 1.92            | 
|Exercisable, December 31, 2020 |  |           | 4,000,000  |   |                  | $ | 0.0050 |                        |  |  | 1.92            | 
|Granted                        |  |           | -          |   |                  |   | -      |                        |  |  | -               | 
|Forfeited or expired           |  |           | -          |   |                  |   | -      |                        |  |  | -               | 
|Exercised                      |  |           | -          |   |                  |   | -      |                        |  |  | -               | 
|Outstanding, December 21, 2021 |  |           | 4,000,000  |   |                  | $ | 0.0050 |                        |  |  | 0.92            | 
|Exercisable, December 21, 2021 |  |           | 4,000,000  |   |                  | $ | 0.0050 |                        |  |  | 0.92            | 



NOTE 8
– INCOME TAXES



At
December 31, 2021 and 2020, the Company had available Federal and state net operating loss carry forwards (NOLs) to reduce
future taxable income. The amounts available were approximately $22,600,000 and $19,925,000, respectively, for Federal purposes. The
potential tax benefit arising from the NOLs of approximately $14,600,000 from the period prior to the Acts effective date will
begin to expire in 2033. The potential tax benefit arising from the net operating loss carryforward of approximately $5,414,960 generated
from the period following the Acts effective date can be carried forward indefinitely within the annual usage limitations. Given
the Companys history of net operating losses, management has determined that it is more likely than not that the Company will
not be able to realize the tax benefit of the carryforwards. Accordingly, the Company has not recognized a deferred tax asset for this
benefit.



The
Company adopted FASB guidelines that address the determination of whether tax benefits claimed or expected to be claimed on a tax return
should be recorded in the financial statements. Under this guidance, the Company may recognize the tax benefit from an uncertain tax
position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on
the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured
based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. This guidance
also provides guidance on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires
increased disclosures. As of December 31, 2021 and 2020, the Company did not have a liability for unrecognized tax benefits.



The valuation allowance at December 31, 2021 was
$5,414,960. The net change in valuation allowance during the year ended December 31, 2021 was $1,230,960. In assessing the realizability
of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets
will not be realized.



The
Companys policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2021
and 2020, the Company has not accrued interest or penalties related to uncertain tax positions. Additionally, tax years 2018 through
2020 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company is preparing and reviewing
information for tax returns for past years. Due to the Companys lack of revenue since inception management does not believe that
there is any income tax liability for past years. There are currently no open federal or state tax years under audit.



Upon
the attainment of taxable income by the Company, management will assess the likelihood of realizing the tax benefit associated with the
use of the carry forwards and will recognize a deferred tax asset at that time.

F-17





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 Year      |        |    | For the Year      | 
|------------------------------------ |  | ----------------- | ------ | -- | ----------------- | 
|                                     |  | Ended             |        |    | Ended             | 
|                                     |  | December 31, 2021 |        |    | December 31, 2020 | 
|Income tax at federal statutory rate |  |                   | (21.00 | )% |                   | 
|State tax, net of federal effect     |  |                   | (3.96  | )% |                   | 
|                                     |  |                   | (24.96 | )% |                   | 
|Valuation allowance                  |  |                   | 24.96  | %  |                   | 
|Effective rate                       |  |                   | 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 December 31, 2021 and 2020, the Companys only significant deferred income tax asset was a cumulative estimated net tax operating
loss of approximately $22,600,000 and $19,925,000, 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 December
31, 2021 and 2020.



NOTE
9 – COMMITMENTS AND CONTINGENCIES



Agreement
to Explore a Shipwreck Site Located off of Melbourne Beach, Florida



In
March of 2014, Seafarer entered into a partnership and with MAP, with the formation of Seafarers Quest, LLC for the purpose of
exploring a shipwreck site off of Melbourne Beach, Florida. Seafarer owns 50% of Seafarers Quest, LLC and is handling the operations
on behalf of Seafarers Quest. To date there has been no significant financial activity in Seafarers Quest. Under the partnership
with MAP, Seafarer is the designated manager of Seafarers Quest, LLC and is responsible for the costs of permitting, exploration
and recovery. Seafarer is entitled to receive 80% and MAP is entitled to receive 20% of artifacts and treasure recovered from the site
after the State of Florida receives its share, which is anticipated to be 20% under any future recovery permits. The permits with the
State of Florida for two areas on the site, designated as Areas 1 and 2, were renewed in 2019 for an additional 3 years. There are currently
no recovery permits for the site that have been applied for or issued as of the date of this filing. It will be necessary to be granted
a recovery permit in order to recover any artifacts and treasure that may potentially be located on the site. The required, affiliated
environmental permits from the U.S. Army Corps of Engineers (USACE) and Florida Department of Environmental Protection
(FLDEP) were previously issued in the name of a partner that is no longer active. In 2020 Seafarer worked with the various
State of Florida governmental agencies involved to update and consolidate all of these environmental permits solely under the Companys
name. The State of Florida Bureau of Archeological Research (FBAR) had ordered the Company not to disturb the oceans
bottom while the changes and updates to the Companys permits were in process. Some requests of change are questionable to the
Company. Since the issuance of the USACE and FLDEP environmental permits, FBAR has continued to stop or delay ground disturbance in Seafarers
legally permitted area with ongoing questions and requests.



Certain
Other Agreements



See
Note 4 Operating Lease Right-of-Use Assets and Operating Lease Liabilities.



NOTE
10 – RELATED PARTY TRANSACTIONS



During
the year ended December 31, 2021, the Company has had extensive dealings with related parties including the following:



In
April of 2021, Seafarers CEO provided a loan to the Company in the amount of $6,000. The loan pays a 1% annual rate of interest,
is due and payable on October 26, 2021 and is not secured.



In
October of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on
or before April 13, 2022. The note is unsecured and is convertible at the lenders option into shares of the Companys common
stock at a rate of $0.0020 per share.



In
October of 2021, Seafarers CEO provided a loan to the Company in the amount of $1,400. The loan pays a 1% annual rate of interest,
was due and payable on January 25, 2022 and is not secured.



In
October of 2021, Seafarers CEO provided a loan to the Company in the amount of $1,000. The loan pays a 1% annual rate of interest,
was due and payable on January 26, 2022 and is not secured.



In
November of 2021, the Company entered into a convertible promissory note agreement in the amount of $3,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 2% per annum and the principal and accrued interest is due on
or before May 10, 2022. The note is unsecured and is convertible at the lenders option into shares of the Companys common
stock at a rate of $0.0020 per share.

F-18







In
December of 2021, the Company extended the term of previous agreements with four individuals to continue serving as members of the Companys
Board of Directors. Two of the individuals are related to the Companys CEO. Under the agreement, the Directors 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 previous agreement also terminates automatically
upon the death, resignation or removal of the Directors. Under the terms of the agreement, the Company agreed to compensate the Board
members via payment of 10,000,000 restricted shares of its common stock each, an aggregate total of 40,000,000 shares, and to negotiate
future compensation on a year-by-year basis. The Company also agreed to reimburse the individuals for preapproved expenses.



Additional
related party transactions:



The
Company has an informal consulting agreement with a limited liability company that is owned and controlled by a person who is related
to the Companys CEO to pay the related party limited liability company a variable amount per month plus periodic bonuses to provide
general business consulting 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, perform period background research including background checks
and provide investigative information on individuals and companies and to assist, when needed, 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. During the years ended December 31, 2021 and 2020,
the Company paid the related party consultant fees of $15,000 and $58,000, respectively, for services rendered. These fees are recorded
as an expense in consulting and contractor expenses in the accompanying consolidated statements of operations. At December 31, 2021 and
2020, the Company owed the related party limited liability company $0.



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. During the years ended December 31, 2021 and 2020 the Company paid the related party limited
liability company fees of $12,025 and $11,295 respectively, for services rendered. These fees are recorded as an expense in consulting
and contractor expenses in the accompanying consolidated statements of operations. During the years ended December 31, 2021 and 2020,
the Company also paid the related party limited liability 1,000,000 and 0 shares of the Companys restricted common stock, valued
at $5,100, and $0, respectively, as a bonus. All of the fees paid to the related party limited liability company are recorded as an expense
in consulting and contractor expenses in the accompanying consolidated statements of operations. At December 31, 2021 and 2020, the Company
owed the related party limited liability company $0.



During
the years ended December 31, 2021 and 2020, the Company paid a related party consultant fees of $38,000 and $18,750 respectively
for marketing and administrative services rendered to the Companys Blockchain subsidiary. Additionally, during the years ended
December 31, 2021 and 2020, the Company paid the related party consultant 6,000,000 shares, valued at $30,600, and 0 shares, respectively,
of the Companys restricted common stock as further compensation to offset cash payments for extra work and as a retention bonus.
All of the fees paid to the related party consultant are recorded as an expense in consulting and contractor expenses in the accompanying
consolidated statements of operations.



The
Company issued 8,734,640 shares of restricted common stock to a related party to settle $20,302 of accrued interest owed on sixteen convertible
notes payable.



During the years ended December 31, 2021 and 2020
the Company paid a related party individual fees of $8,500 and $0 respectively, for graphic design services. $5,500 of the fees are recorded
as an expense in consulting and contractor expenses in the accompanying consolidated statements of operations and $3,000 of the fees were
recorded as a prepaid expense on the accompanying consolidated balance sheets.



During the years ended December 31, 2021 and 2020
the Company paid fees of $31,943 and $24,000 to one of its Board members for business consulting and strategic advisory services that
were separate from his duties as a member of the Company’s Board of Directors.



During the years ended December 31, 2021 and 2020
the Company paid fees of $22,000 and $20,000 to a limited liability company controlled by one of its Board members for business consulting
and strategic advisory services that were separate from his duties as a member of the Company’s Board of Directors,



During
the year ended December 31, 2020, the Company has had extensive dealings with related parties including the following:



In
January of 2020, the Company entered into a convertible promissory note agreement in the amount of $51,000 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before June 30, 2020. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.003 per share. This note is currently in default due to non payment of principal and interest upon
maturity.



In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $25,200 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before February 6, 2021. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.0035 per share. This note is currently in default due to non payment of principal and interest.



In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $35,000 with a related party. This
note pays interest at a rate of 6% per annum and the principal and accrued interest was due on or before February 6, 2021. The note is
unsecured and is convertible at the lenders option into shares of the Companys common stock at a rate of $0.0035 per share.
This note is currently in default due to non payment of principal and interest.

F-19





In
August of 2020, the Company entered into a convertible promissory note agreement in the amount of $50,400 with a related party who is
a member of the Board of Directors. This note pays interest at a rate of 6% per annum and the principal and accrued interest was due
on or before February 14, 2021. The note is unsecured and is convertible at the lenders option into shares of the Companys
common stock at a rate of $0.0035 per share. This note is currently in default due to non payment of principal and interest.



In
December of 2020, the Company extended the term of previous agreements with four individuals to continue serving as members of the Companys
Board of Directors. Two of the individuals are related to the Companys CEO. Under the agreement, the Directors 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 previous agreement also terminates automatically
upon the death, resignation or removal of the Directors. Under the terms of the agreement, the Company agreed to compensate the Board
members via payment of 5,000,000 restricted shares of its common stock each, an aggregate total of 20,000,000 shares, and to negotiate
future compensation on a year-by-year basis. The Company also agreed to reimburse the individuals for preapproved expenses.



Shareholder
Loan Repayment



During
the year ended December 31, 2021 the Company repaid its CEO $2,000 for a loan dated April 26, 2021 that had an original principle balance
of $6,000.



At
December 31, 2021, the following promissory notes and shareholder loans were outstanding to related parties:



See
Note 6 convertible notes payable – related parties, convertible notes payable – related parties, in default, and notes
payable - related parties, in default.



NOTE
11 –SEGMENT INFORMATION



Seafarers
wholly owned subsidiary Blockchain began operations in 2019 by providing referrals to P&S (See Note 5 - Investment in Probability
and Statistics, Inc.) in exchange for referral fees for closed business.



Due
to Blockchain starting operations which have no relation to the Companys shipwreck and exploration recovery business, the Company
evaluated this business and its impact upon the existing corporate structure. The Company has determined that Blockchain and Seafarer
Exploration Corp. operate as separate segments of the business. As such, the Company has presented the income (loss) from operations
during the years ended December 31, 2021 and 2020 incurred by the two separate segments below.



During
the years ended December 31, 2021 and 2020, Blockchain revenues of $0 and $4,200 respectively, were 0% and 39.6%, respectively, of the
consolidated revenues of the Company.



Segment
information relating to the Companys two operating segments for the year ended December 31, 2021 is as follows:



|                         |  | December 31, 2021         |         |   | December 31, 2021          |   |            | December 31, 2021 | 
|------------------------ |  | ------------------------- | ------- | - | -------------------------- | - | ---------- | ----------------- | 
|                         |  | Blockchain LogisTech, LLC |         |   | Seafarer Exploration Corp. |   |            | Consolidated      | 
|Service revenues         |  | $                         | -       |   |                            | $ | 23,761     |                   | 
|                         |  |                           |         |   |                            |   |            |                   | 
|Total operating expenses |  |                           | 45,143  |   |                            |   | 2,324,238  |                   | 
|                         |  |                           |         |   |                            |   |            |                   | 
|Net loss from operations |  | $                         | (45,143 | ) |                            | $ | (2,300,477 | )                 | 



Segment
information relating to the Companys two operating segments for the year ended December 31, 2020 is as follows:



|                         |  | December 31, 2020         |         |   | December 31, 2020          |   |            | December 31, 2020 | 
|------------------------ |  | ------------------------- | ------- | - | -------------------------- | - | ---------- | ----------------- | 
|                         |  | Blockchain LogisTech, LLC |         |   | Seafarer Exploration Corp. |   |            | Consolidated      | 
|Service revenues         |  | $                         | 4,200   |   |                            | $ | 6,422      |                   | 
|                         |  |                           |         |   |                            |   |            |                   | 
|Total operating expenses |  |                           | 23,469  |   |                            |   | 2,686,359  |                   | 
|                         |  |                           |         |   |                            |   |            |                   | 
|Net loss from operations |  | $                         | (19,269 | ) |                            | $ | (2,679,937 | )                 | 



F-20





NOTE
12 – SUBSEQUENT EVENTS





On January 18, 2022, Seafarer received notification
from the Circuit Court of the Thirteenth Judicial Circuit that 61,183,645 restricted common shares from the Defendant could be returned
to the Plaintiff. On January 19, 2022, such shares were returned to the treasury stock of Seafarer and accounted for by Seafarer’s
transfer agent. The settlement also included “Defendant (Torres) has agreed and hereby it is recognized by the Court that Defendant
has made a full retraction of his assertions...” and agreed to pay back an undisclosed amount of money to Seafarer that the
Company does not anticipate being able to collect.



Subsequent to December 31, 2021 the Company sold or
issued shares of its restricted common stock as follows:



| | (i) | sales of 328,000,000 shares of restricted common stock under subscription agreements for proceeds of $664,000; and
| | --- | ------------------------------------------------------------------------------------------------------------------



| | (ii) | issuance of 33,885,913 shares of restricted common stock to various service providers.
| | ---- | --------------------------------------------------------------------------------------



Subsequent to December 31, 2021 the following
loans went into default:



| | 1) | A loan due to the Company’s CEO in the amount of $1,400 was due January 25, 2022; and
| | -- | -------------------------------------------------------------------------------------



| | 2) | A loan due to the Company’s CEO in
    the amount of $1,000 was due January 26, 2022.
| | -- | -------------------------------------------------------------------------------------



Subsequent to December 31, 2021 the following
loans were repaid:



|1) | A convertible promissory with a face
value of $50,000 that was due January 8, 2022 was paid in full prior to the due date.
|-- | --------------------------------------------------------------------------------------------------------------------------





F-21





Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures.



None



Item
9A. Controls and Procedures.



(a)
Managements Annual Report on Internal Control over Financial Reporting.



Managements
Responsibility for Controls and Procedures



The
Companys management is responsible for establishing and maintaining adequate internal control over the Companys financial
reporting. The Companys controls over financial reporting are designed under the supervision of the Companys Principal
Executive Officer and Principal Financial Officer to ensure that information required to be disclosed by the Company in the reports that
the Company files or submits under the Securities Exchange Act of 1934, as amended (the Exchange Act), is accumulated and
communicated to the Companys management, including the Companys principal executive officer and principal financial officer,
or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.



Evaluation
of Disclosure Controls and Procedures



Under
the supervision and with the participation of our principal executive officer, the Company conducted an evaluation of the effectiveness
of the design and operation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under
the Exchange Act, as of December 31, 2021. Based on this evaluation, management concluded that our financial disclosure controls and
procedures were not effective so as to timely record, process, summarize and report financial information required to be included on
our Securities and Exchange Commission (SEC) reports due to the Companys limited internal resources and lack of
ability to have multiple levels of transaction review. However, as a result of our evaluation and review process, management believes
that the financial statements and other information presented herewith are materially correct.



Internal
Control Over Financial Reporting



As
of December 31, 2021, under the supervision and with the participation of our management, we conducted an evaluation of the effectiveness
of the design and operations of our internal control over financial reporting, as defined in Rules 13a-15(f) or 15d-15(f) promulgated
under the Securities Exchange Act of 1934 and based on the criteria for effective internal control described in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (as revised). Based on our evaluation,
management concluded that our internal control over financial reporting was not effective so as to timely record, process, summarize
and report financial information required to be included on our SEC reports due to the Companys limited internal resources and
lack of ability to have multiple levels of transaction review. However, as a result of our evaluation and review process, management
believes that the financial statements and other information presented herewith are materially correct.



The
management including its Principal Executive Officer/Principal Financial Officer, does not expect that its disclosure controls and procedures,
or its internal controls over financial reporting will prevent all error and all fraud. A control system no matter how well conceived
and operated, can provide only reasonable not absolute assurance that the objectives of the control system are met. Further, the design
of the control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative
to their costs.



Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the Company have been detected.



The
Company has limited resources and as a result, a material weakness in financial reporting currently exists, because of our limited resources
and personnel, including those described below.



| | * | The
Company has an insufficient quantity of dedicated resources and experienced personnel involved in reviewing and designing internal controls.
As a result, a material misstatement of the interim and annual financial statements could occur and not be prevented or detected on a
timely basis.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | * | We
have not achieved the optimal level of segregation of duties relative to key financial reporting functions.
| | - | --------------------------------------------------------------------------------------------------------------



| | * | We
do not have an audit committee or an independent audit committee financial expert. While not being legally obligated to have an audit
committee or independent audit committee financial expert, it is the managements view that to have an audit committee, comprised
of independent board members, and an independent audit committee financial expert, is an important entity-level control over the Companys
financial statements.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A
material weakness is a deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) auditing standard 5) or
combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material
misstatement of the Companys annual or interim financial statements will not be prevented or detected on a timely basis. Management
has determined that a material weakness exists due to a lack of segregation of duties, resulting from the Companys limited resources
and personnel.

21





Remediation
Efforts to Address Deficiencies in Internal Control Over Financial Reporting



As
a result of these findings, management, upon obtaining sufficient capital and operations, intends to take practical, cost-effective steps
in implementing internal controls, including the possible remedial measures set forth below. As of December 31, 2021, we did not have
sufficient capital and/or operations to implement any of the remedial measures described below.



| | * | Assessing
the current duties of existing personnel and consultants, assigning additional duties to existing personnel and consultants, and, in
a cost effective manner, potentially hiring additional personnel to assist with the preparation of the Companys financial statements
to allow for proper segregation of duties, as well as additional resources for control documentation.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | * | Assessing
the duties of the existing officers of the Company and, in a cost effective manner, possibly promote or hire additional personnel to
diversify duties and responsibilities of such executive officers.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | * | Board
to review and make recommendations to shareholders concerning the composition of the Board of Directors, with particular focus on issues
of independence. The Board of Directors will consider nominating an audit committee and audit committee financial expert, which may or
may not consist of independent members.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | * | Interviewing
and potentially hiring outside consultants that are experts in designing internal controls over financial reporting based on criteria
established in Internal Control Integrated Framework issued by Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO) (as revised).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



This
annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial
reporting. Managements report was not subject to attestation by our registered public accounting firm pursuant to temporary rules
of the SEC that permit us to provide only managements report in this annual report.



(b)
Change in Internal Control Over Financial Reporting



The
Company has not made any change in our internal control over financial reporting during the year ended December 31, 2021.



Item
9B. Other Information.



None.

22





PART
III



Item
10. Directors, Executive Officers and Corporate Governance.



|Name                  | Age | Position                                 
|--------------------- | --- | -----------------------------------------
|Kyle
    Kennedy      | 62  | President,
    CEO, Chairman of the Board
|Charles
    Branscumb | 61  | Director                                 
|Robert
    L. Kennedy | 70  | Director                                 
|Bradford
    Clark    | 52  | Director                                 
|Thomas
    Soeder     | 75  | Director                                 



Kyle
Kennedy
President, Chief Executive Officer, Chairman of the Board



In
2001, Mr. Kennedy co-founded a securities brokerage firm that offered securities sales and trading as well as investment banking services.
In 2003, Mr. Kennedy was also one of the founders of a securities transfer and processing company. Prior experience includes: August
1995 to Present – President of Kennedy and Associates, Business Consultants; March 1998 to December 1998 – Vice President
Corporate Finance, Palm State Equities, Inc.; January 1999 to September 1999 – Vice President Investment Banking, 1st American
Investment Banking; September 1999 to May 2000 – President and CEO, Nowtrade Corp. Mr. Kennedy is a senior financial executive,
CEO, and President, with over 28 years of experience in the brokerage business. He has held the following licenses: Series 3, 4, 5, 7,
52, 63, 24 and 55. He created, built and co-managed over $400 million of assets in money management, with specific focus in equity analysis.
Mr. Kennedys public company experience includes his position as Executive Vice President and ultimately, acting President, of
a public holding company with four diverse operating entities. He performed the day to day operations of the company and management.
He was directly responsible for the turnaround of this complex, diverse holding company and successfully developed and implemented a
creditor workout plan, negotiating with over 100 creditors, collection agencies and attorneys.



Charles
Branscum
Director



Mr.
Branscum has spent the majority of his professional career working for Arkansas Steel Associates, LLC (ASA). Mr. Branscum
is currently the rolling mill foreman for ASA.



Robert
L. Kennedy
Director



Dr.
Robert L. Rob Kennedy began his professional career as a mathematics teacher with Horace Mann Junior High School in Little
Rock, Arkansas. Returning to graduate school, he taught calculus in the mathematics department as a teaching assistant (TA) at the University
of Nebraska in Lincoln (UNL). Following his work at UNL, he taught mathematics at Kirkwood Community College in Cedar Rapids, Iowa. Upon
entering a doctoral program at the University of Missouri, Columbia, he taught undergraduate and graduate courses in mathematics and
statistics as a TA. His Ph.D. was awarded in Higher Education with majors in Educational Psychology and Mathematical Statistics. After
graduation, Dr. Kennedy taught basic, advanced, and multivariate statistics in a doctoral education program at the University of Arkansas
at Little Rock. With a move to the University of Arkansas for Medical Sciences (UAMS), he continued teaching comparable courses in the
Ph.D. nursing program. After twelve years, Dr. Kennedy retired as a Professor in the Office of Educational Development of UAMS after
serving for a time as Clinical Professor and Chair of the Department of Nursing Science, and Director of the Scholarship and Research
Center, all with UAMS. He has worked in the areas of evaluation, research, statistics, and technology in several universities, including
those mentioned above, as well as Western Kentucky University, the University of Central Arkansas, and as an adjunct with the University
of Central Michigan and the University of Memphis. He has consulted with numerous school districts and businesses, done extensive research
and documentation, and is a past president of both the MidSouth Educational Research Association and the Mid-South Educational Research
Foundation.



Bradford
Clark
Director



Mr.
Clark is a six-year veteran of the Air National Guard where he achieved the rank senior airman. Mr. Clark has owned and operated several
lawn maintenance companies over the past thirty-seven years. Mr. Clark works with businesses to help them to increase efficiency and
facilitate changes designed to enhance their business model and encourage growth. Mr. Clark holds a Bachelor of Business Administration
in Management, University of Arkansas Little Rock.



Thomas
Soeder
Director



Tom
Soeder has approximately forty-nine years of experience in computer sales, systems and management responsibilities across all market
segments, most product groups, and the full range of sales channels. As an Avnet account manager, Mr. Soeder concentrated his efforts
primarily on federal government business working with prime and subcontractors, winning over thirty new projects. With his teaming efforts
on ECS3, Mr. Soeder brought to Avnet the first commodities based subcontract worth over $600 billion in hardware dollars over ten years.
Tom achieved Presidents Club two years running. Mr. Soeder also served Avnet as its Mid Atlantic business development manager. Additionally,
Mr. Soeder also supported the team as a systems engineer covering Motorola and Intel designs.

23





Family
Relationships



Charles
Branscum and Robert L. Kennedy are both related to Seafarers CEO, Kyle Kennedy.



Director
Positions in Other Public Companies



No
director holds any directorship in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange
Act of 1934 or subject to the requirements of Section 15(d) of such Act. No director holds any directorship in a company registered as
an investment company under the Investment Company Act of 1940.



Code
of Conduct



As
the Board of Directors only has five directors, no audit or strategy committee has been established. The Company does not have a standing
nominating committee or any committee performing a similar function. For the above reasons, the Company has not adopted a code of ethics
although the Company intends to adopt a code of ethics.



Reliance
on Certain Key Individuals



The
Company believes that its future success will depend on the abilities and continued service of its CEO, Kyle Kennedy, and some of its
consultants and advisors. If Seafarer was not be able to retain Mr. Kennedy as the Companys CEO, then the Board of Directors believes
the Company would very likely suffer serious adverse and material consequences. Seafarer also utilizes the services of several key consultants
and advisors who have been very instrumental in the growth and development of the Company, particularly in the areas of archeological
research and diving operations, corporate financial consulting, strategic planning and corporate advisory services. The Company believes
that it is very important to its long-term success to retain the services of these consultants and advisors.



Item
11. Executive Compensation.



Officers
Summary Compensation Table



|Name and Principal Position |  | Period End |  | Salary ($) |         |  | Bonus ($) |  |    | Stock Awards ($) |  |  | Option Awards ($) |  |  | Non-Equity Incentive Plan Compensation ($) |    |  | Non-qualified Deferred Compensation Earnings ($) |  |    | All Other Compensation ($) |  |  | Total ($) | 
|--------------------------- |  | ---------- |  | ---------- | ------- |  | --------- |  | -- | ---------------- |  |  | ----------------- |  |  | ------------------------------------------ | -- |  | ------------------------------------------------ |  | -- | -------------------------- |  |  | --------- | 
|Kyle Kennedy (1)            |  | 12/31/21   |  | $          | 281,973 |  |           |  | -- |                  |  |  | --                |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/20   |  | $          | 97,550  |  |           |  | -- |                  |  |  | --                |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 



| | (1) | Mr.
Kennedy did not receive any stock based compensation during the years ended December 31, 2021 and 2020. As of January 1, 2020 the Companys
Board of Directors agreed that the Company will provide a salary and other compensation to Mr. Kennedy after he did not receive a salary
or any stock based compensation in years prior to 2020. During the years ended December 31, 2021 and 2020 the Company paid $1,034 and
$1,551 respectively in health and dental insurance premiums for Mr. Kennedy. As a part of his duties as CEO, Mr. Kennedy is required
to travel extensively on Company business as the Companys diving operations are located on the East Coast of Florida and the Companys
headquarters are located on the West Coast of Florida. The Company determined that it would be less expensive for Mr. Kennedy to use
his personal vehicle to travel on Company business rather than to lease a car for him. In lieu of leasing a car for Mr. Kennedy to use
for Company business, Mr. Kennedy uses his personal vehicle for Company related travel. The Company provides Mr. Kennedy with periodic
expense advances and reimbursements, including travel reimbursements for mileage and fuel for the use of his vehicle for Company business
and reimburses him for various other Company business related expenses. The Company reimbursed or advanced to Mr. Kennedy $10,301 in
2021 and $14,097 in 2020 for travel related expenses and other Company expenses. The Company also paid $4,183 in 2021 and $4,206 in 2020
for Mr. Kennedys cellular telephone, text, and wireless data plan.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Officer
Compensation



The
Company does not have a formal compensation plan in place for its officer. The Companys Board of Directors authorized Mr. Kennedy
to receive a salary, at his discretion based on the Companys financial position and developments with the business, in 2020 after
not paying him a salary since the inception of the Company in 2008. As of the date of the filing of this report the Board of Directors
and Mr. Kennedy have been engaged in the process of negotiating a compensation plan that includes stock based payments and other bonuses
and incentives with Mr. Kennedy in order to retain his services as the Companys CEO.

24





Directors
Summary Compensation Table



The
following table shows the fees paid to the Companys Board of Directors for the years ending December 31, 2020 and 2019 for their
work as members of the Board of Directors:



|Name and Principal Position |  | Period End |  | Salary ($) |    |  | Bonus ($) |  |    | Stock Awards ($) |  |   | Option Awards ($) |  |  | Non-Equity Incentive Plan Compensation ($) |    |  | Non-qualified Deferred Compensation Earnings ($) |  |    | All Other Compensation ($) |  |  | Total ($) | 
|--------------------------- |  | ---------- |  | ---------- | -- |  | --------- |  | -- | ---------------- |  | - | ----------------- |  |  | ------------------------------------------ | -- |  | ------------------------------------------------ |  | -- | -------------------------- |  |  | --------- | 
|Kyle Kennedy (1)            |  | 12/31/2021 |  |            | -- |  |           |  | -- |                  |  |   | --                |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/2020 |  |            | -- |  |           |  | -- |                  |  |   | --                |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  |            |  |            |    |  |           |  |    |                  |  |   |                   |  |  |                                            |    |  |                                                  |  |    |                            |  |  |           | 
|Charles Branscum (2)        |  | 12/31/2021 |  |            | -- |  |           |  | -- |                  |  | $ | 40,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/2020 |  |            | -- |  |           |  | -- |                  |  | $ | 26,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  |            |  |            |    |  |           |  |    |                  |  |   |                   |  |  |                                            |    |  |                                                  |  |    |                            |  |  |           | 
|Dr. Robert Kennedy (3)      |  | 12/31/2021 |  |            | -- |  |           |  | -- |                  |  | $ | 40,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/2020 |  |            | -- |  |           |  | -- |                  |  | $ | 26,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  |            |  |            |    |  |           |  |    |                  |  |   |                   |  |  |                                            |    |  |                                                  |  |    |                            |  |  |           | 
|Bradford Clark (4)          |  | 12/31/2021 |  |            | -- |  |           |  | -- |                  |  | $ | 40,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/2020 |  |            | -- |  |           |  | -- |                  |  | $ | 26,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  |            |  |            |    |  |           |  |    |                  |  |   |                   |  |  |                                            |    |  |                                                  |  |    |                            |  |  |           | 
|Thomas Soeder (5)           |  | 12/31/2021 |  |            | -- |  |           |  | -- |                  |  | $ | 40,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 
|                            |  | 12/31/2020 |  |            | -- |  |           |  | -- |                  |  | $ | 26,000            |  |  |                                            | -- |  |                                                  |  | -- |                            |  |  | --        | 



| | (1) | During the years ended
                                                                                                                                                              December 31, 2021 and 2020 the Company did not pay any Directors fees to its Chairman of the Board, Kyle Kennedy. The salaries
                                                                                                                                                              paid to Mr. Kennedy for his services as the Company’s CEO during the years ended December 31, 2021 and 2020 are listed under
                                                                                                                                                              Item 11 – Executive Compensation and are not listed in the Directors’ compensation table.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | During
the years ended December 31, 2021 and 2020 the Company did not pay any fees to Mr. Branscum other than those listed in the Directors
compensation table.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | During
the years ended December 31, 2021 and 2020 the Company did not pay any fees to Dr. Kennedy other than those listed in the Directors
compensation table.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (4) | During
the years ended December 31, 2021 and 2020 the Company paid fees of $31,943 and $24,000 to Mr. Clark for business consulting and strategic
advisory services that were separate from his duties as a member of the Companys Board of Directors, these fees are not listed
in the Directors compensation table.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (5) | During
the years ended December 31, 2021 and 2020 the Company paid fees of $22,000 and $20,000 to a limited liability company controlled by
Mr. Soeder for business consulting and strategic advisory services that were separate from his duties as a member of the Companys
Board of Directors, these fees are not listed in the Directors compensation table.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25





Director
Compensation



The
Company does not have a formal compensation plan in place for its directors.



Employment
Agreements



None.



Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.



The
following tables set forth certain information regarding beneficial ownership of our capital stock as of the date hereof by (i) each
person whom we know to beneficially own more than five percent (5%) of any class of our common stock, (ii) each of our directors, (iii)
each of the executive officers and (iv) all our directors and executive officers as a group. Unless otherwise indicated, each of the
persons listed below has sole voting and investment power with respect to the shares beneficially owned.





Our total authorized capital stock consists of 9,900,000,000
shares of common stock, $0.0001 par value per share. As of December 31, 2021, there were 6,176,318,579 shares of our common stock outstanding.



This table reflects shares that were issued and outstanding as of December
31, 2021.





|                                                                          |  | Shares of          |  | Percentage of       
|------------------------------------------------------------------------- |  | ------------------ |  | --------------------
|                                                                          |  | common stock       |  | common shares       
|                                                                          |  | beneficially owned |  | beneficially owned 2
|Name and Address of Beneficial Owners 1                                   |  |                    |  |                     
|Kyle Kennedy - President, CEO and Chairman of the Board 3                 |  | 35,500,000         |  | *                   
|Charles Branscum – Director                                               |  | 119,000,000        |  | 1.93%               
|Dr. Robert L. Kennedy – Director                                          |  | 154,690,267        |  | 2.50%               
|Bradford Clark – Director                                                 |  | 48,443,555         |  | *                   
|Thomas Soeder – Director                                                  |  | 76,784,787         |  | 1.24%               
|Maximilian Thyssen - Shareholder                                          |  | 398,794,247        |  | 6.46%               
|All Directors and Officers and 5% or greater holders as group (6 persons) |  | 833,212,856        |  | 13.49%              







* Less than 1%



| | (1) | Unless otherwise indicated, the address of each person listed below is c/o Seafarer Exploration Corp, 14497 North Dale Mabry Highway, Suite 209-N, Tampa, Florida 3618.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | Percentages are based on 6,176,318,579 shares of common stock issued and outstanding at December 31, 2021.
| | --- | ----------------------------------------------------------------------------------------------------------





| | (3) | For
the purposes of this table, the share amounts being shown as beneficially owned by Mr. Kennedy include: 35,500,000 shares legally owned
by Credo Argentarius, LLC (Credo), an entity controlled by Mr. Kennedys spouse. This statement shall not be construed
as an admission that Mr. Kennedy is, for the purposes of Section 13(d) or Section 16 of the Securities Exchange Act of 1934, the beneficial
owner of any of the securities set forth in the preceding sentence.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Item
13. Certain Relationships and Related Transactions, and Director Independence.



See
Note 10 – Related Party Transactions.

26





Item
14. Principal Accounting Fees and Services



Changes
in Registrants Certifying Accountant



On
April 13, 2020 the Companys Board of Directors elected to engage Accell Audit and Compliance, LLC as its independent accounting
firm and to dismiss its previous independent accounting firm, D. Brooks and Associates CPAs, P.A.



Audit
Related Fees



For
the years ended December 31, 2021 and 2020, the Company paid $32,500 and $20,000 respectively, in fees related to services rendered by
our principal accountant for professional services rendered for the audit and review of our consolidated financial statements. For the
years ended December 31, 2021 and 2020, the Company paid $0 and $12,500 respectively, in fees related to services rendered by our previous
principal accountant for professional services rendered for the audit and review of our financial statements.



Tax
Fees



For
the years ended December 31, 2021 and 2020, the Company paid $0 in fees for professional services rendered fees related to services rendered
by our principal accountant for tax compliance, tax advice, and tax planning.



All
Other Fees



The
Company did not incur any other fees related to services rendered by our principal accountant for the years ended December 31, 2021 and
2020.

27





PART
IV



Item
15. Exhibits



|(2)  | Plan
    of Acquisition, Reorganization, Arrangement, Liquidation or Succession                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|2.1  | Form of Share Exchange Agreement dated June 4, 2008 by and among Organetix, Inc., Seafarer Exploration, Inc. and each of the shareholders of Seafarer Exploration incorporated by reference to Form 8-K filed with the Commission on June 10, 2008.                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(3)  | Articles
    of Incorporation and By-laws                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.1  | Amended and Restated Certificate of Incorporation of Organetix, Inc. incorporated by reference to Organetix, Inc.s Schedule 14C Definitive Information Statement filed with the Commission on May 6, 2008.                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3.2  | Certificate of Amendment to the Certificate of Incorporation to merge Seafarer Exploration Corp., a wholly-owned subsidiary of the Company into the Company with the Secretary of State of the State of Delaware. Pursuant to the Certificate of Amendment, the Companys Articles of Incorporation were amended to change its name from Organetix, Inc. to Seafarer Exploration Corp. dated July 17, 2008, incorporated by reference to Form 8-K filed with the Commission on July 24, 2008.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(10) | Material
    Contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|10.1 | Agreement by and between Heartland Treasure Quest and Seafarer Exploration Corp. dated February 1, 2013, incorporated by reference to Form 10-K filed with the Commission on April 14, 2014.                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|10.2 | Seafarers Quest, LLC Operating Agreement dated March 03, 2014, incorporated by reference to Form 10-K filed with the Commission on March 31, 2015.                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|31.1 | Certification of Chief Executive Officer and Principal Accounting Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14. Filed with this Form 10-K.                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed with this Form 10-K.                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|99.1     | Temporary Hardship Exemption                                                                                                                                      
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                                                   
|*101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
|         |                                                                                                                                                                   
|*101.SCH | Inline XBRL Taxonomy Extension Schema Document.                                                                                                                   
|         |                                                                                                                                                                   
|*101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document.                                                                                                     
|         |                                                                                                                                                                   
|*101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document.                                                                                                      
|         |                                                                                                                                                                   
|*101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document.                                                                                                           
|         |                                                                                                                                                                   
|*101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document.                                                                                                    
|         |                                                                                                                                                                   
|*104     | Cover Page Interactive Data File (embedded within the Inline XBRL document).                                                                                      



*
To
be furnished by amendment per Temporary Hardship Exemption under Regulation S-T.



28





SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.



|                          | Seafarer
    Exploration Corp.
|------------------------- | ------------------------------
|                          |                               
|Date:
    March 31, 2022  | By:                           
|                          |                               
|                          |                               
|Date:
    March 31, 2022  | By:                           
|                          |                               
|                          |                               
|Date:

    March 31, 2022 | By:                           
|                          |                               
|                          |                               
|Date:

    March 31, 2022 | By:                           
|                          |                               
|                          |                               
|Date:

    March 31, 2022 | By:                           
|                          |                               

29