# EDGAR Filing Document

**Accession Number:** 0001703625
**File Stem:** 0001199835-23-000161
**Filing Date:** 2023-3
**Character Count:** 71786
**Document Hash:** 77aa0fa4ff1432c991280f11ac6b8508
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001199835-23-000161.hdr.sgml**: 20230321

**ACCESSION NUMBER**: 0001199835-23-000161

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 41

**CONFORMED PERIOD OF REPORT**: 20230131

**FILED AS OF DATE**: 20230321

**DATE AS OF CHANGE**: 20230321

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Treasure & Shipwreck Recovery, Inc.
- **CENTRAL INDEX KEY:** 0001703625
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-ADVERTISING [7310]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-219700
- **FILM NUMBER:** 23750553

**BUSINESS ADDRESS:**
- **STREET 1:** 13046 RACETRACK ROAD #243
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33626
- **BUSINESS PHONE:** 8777235477

**MAIL ADDRESS:**
- **STREET 1:** 13046 RACETRACK ROAD #243
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33626

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BELISS CORP.
- **DATE OF NAME CHANGE:** 20170412

?xml version="1.0" encoding="utf-8"?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**Form 10-Q**

⌧ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

**For the quarterly period ended January 31, 2023**

□ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 333-219700

---

| | | |
|:---|:---|:---|
| **Treasure & Shipwreck Recovery, Inc.<br> Formerly Beliss Corp.** | **Treasure & Shipwreck Recovery, Inc.<br> Formerly Beliss Corp.** | **Treasure & Shipwreck Recovery, Inc.<br> Formerly Beliss Corp.** |
|  | (Exact name of registrant as specified in its charter) |  |
| **Nevada** | **7310** | **37-1844836** |
| (State or Other Jurisdiction of<br> Incorporation or Organization) | (Primary Standard Industrial Classification Code<br> Number) | (IRS Employer Identification No.) |

---

---

| |
|:---|
| **Craig Huffman** |
| **Chief Executive Officer** |
| **13046 Racetrack Road, #234,** |
| **Tampa, FL 33626** |
| **(813) 504-7831** |

---

(Address and telephone number of registrant's principal offices)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, $0.001 par value | BLIS | Pink |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

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). Yes ⌧ No □

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 □ Large accelerated filer □ Non-accelerated Filer□ Smaller reporting company ⌧ <br> Emerging growth company □

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. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □No⌧

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: The Company has 28,305,358 common shares issued and outstanding as of March 21, 2023.

**Treasure & Shipwreck Recovery, Inc.**

**QUARTERLY REPORT ON FORM 10-Q**

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **[PART I](#a001_v1)** | [**FINANCIAL INFORMATION:**](#a001_v1) |  |
| [Item 1.](#a002_v1) | [Financial Statements](#a002_v1) | 3 |
|  | [Condensed Consolidated Balance Sheets as of January 31, 2023 (Unaudited) and April 30, 2022](#a003_v1) | 4 |
|  | [Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended January 31, 2023 and 2022](#a004_v1) | 5 |
|  | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' (Deficit) for the three and nine months ended January 31, 2023 and 2022](#a005_v1) | 6 |
|  | [Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended January 31, 2023 and 2022](#a006_v1) | 7 |
|  | [Notes to the Condensed Consolidated Unaudited Financial Statements](#a007_v1) | 8 |
| [Item 2.](#a008_v1) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a008_v1) | 15 |
| [Item 3.](#a009_v1) | [Quantitative and Qualitative Disclosures About Market Risk](#a009_v1) | 19 |
| [Item 4.](#a010_v1) | [Controls and Procedures](#a010_v1) | 19 |
| **[PART II](#a011_v1)** | **[OTHER INFORMATION:](#a011_v1)** |  |
| [Item 1.](#a012_v1) | [Legal Proceedings](#a012_v1) | 20 |
| [Item 1A](#a013_v1) | [Risk Factors](#a013_v1) | 20 |
| [Item 2.](#a014_v1) | [Unregistered Sales of Equity Securities and Use of Proceeds](#a014_v1) | 20 |
| [Item 3.](#a015_v1) | [Defaults Upon Senior Securities](#a015_v1) | 20 |
| [Item 4.](#a016_v1) | [Submission of Matters to a Vote of Securities Holders](#a016_v1) | 20 |
| [Item 5.](#a017_v1) | [Other Information](#a017_v1) | 21 |
| [Item 6.](#a018_v1) | [Exhibits](#a018_v1) | 21 |
|  | [Signatures](#a019_v1) | 22 |

---

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

The accompanying interim consolidated financial statements of Treasure & Shipwreck Recovery, Inc., formerly Beliss Corp. ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission.

The interim consolidated financial statements are condensed and should be read in conjunction with the company's latest annual consolidated financial statements. The accompanying consolidated financial statements have been prepared in accordance with "GAAP" for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying consolidated financial statements do not include all the information and notes required by GAAP for a complete financial statement presentation.

In the opinion of management, the consolidated financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

**Treasure & Shipwreck Recovery, Inc.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

As of January 31, 2023 and April 30, 2022

---

| | | |
|:---|:---|:---|
|  | January 31, 2023<br> (Unaudited) | April 30, 2022 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash | $- | $47003 |
| Total current assets | - | 47003 |
| Fixed Assets |  |  |
| Fixed assets, net of depreciation | 15800 | 21644 |
| Total fixed assets | 15800 | 21644 |
| Other Assets |  |  |
| Security deposit | 1000 | 11000 |
| Total other assets | 1000 | 11000 |
| Total Assets | $16800 | $79647 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| Current liabilities |  |  |
| Accounts payable | $29804 | $30350 |
| Accrued expenses | 126121 | 66332 |
| Customer deposits | 8700 | 8700 |
| Convertible notes payable, net of discounts | 770666 | 774552 |
| Short term loans | 2700 | 16763 |
| Related party convertible loan | 60890 | 53890 |
| Total current liabilities | 998881 | 950587 |
| Total Liabilities | 998881 | 950587 |
| Commitments and contingencies (Note 7) |  |  |
| Stockholders' Deficit |  |  |
| Preferred stock, $0.001 par value; 100 shares authorized, 51 shares issued and outstanding. |  |  |
| Common stock, par value $0.001; 75,000,000 shares authorized, 18,019,025 and 9,488,502 shares issued and outstanding at January 31, 2023 and April 30, 2022, respectively | 18019 | 9489 |
| Common stock to be issued | 118500 | 118500 |
| Additional paid in capital | 2579062 | 2335529 |
| Accumulated deficit | (3697662) | (3334458) |
| Total Stockholders' Deficit | (982081) | (870940) |
| Total Liabilities and Stockholders' Deficit | $16800 | $79647 |

---

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements

---

| |
|:---|
| **Treasure & Shipwreck Recovery, Inc.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** |
| **Three and nine months ended January 31, 2023 and 2022** |
| **(Unaudited)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months<br> ended<br> January 31, 2023<br> (Unaudited) | Three months<br> ended<br> January 31, 2022<br> (Unaudited) | Nine months<br> ended<br> January 31, 2023<br> (Unaudited) | Nine months<br> ended<br> January 31, 2022<br> (Unaudited) |
| REVENUES | $- | $- | $- | $- |
| Cost of revenues | - | - | - | - |
| Gross profit | - | - | - | - |
| OPERATING EXPENSES |  |  |  |  |
| Consulting and accounting | 3500 | 27550 | 87878 | 100108 |
| Labor |  | 1232 | 10585 | 36925 |
| Legal Fees | 398 | 8825 | 19513 | 33575 |
| Professional fees | 2000 | 5448 | 51088 | 80614 |
| Boat expenses | 3984 | 11142 | 73829 | 246826 |
| Research and Development |  |  |  | 8000 |
| General and administrative expenses | 4303 | 36335 | 33565 | 99891 |
| Depreciation | 600 | 3632 | 5843 | 10897 |
| TOTAL OPERATING EXPENSES | 14785 | 94164 | 282301 | 616836 |
| NET LOSS FROM OPERATIONS | (14785) | (94164) | (282301) | (616836) |
| OTHER EXPENSES |  |  |  |  |
| Interest expense | 819 | (222525) | (80903) | (574905) |
| NET LOSS BEFORE INCOME TAXES | (13966) | (316689) | (363204) | (1191741) |
| Provision for income tax | - | - | - | - |
| NET LOSS | $(13966) | $(316689) | $(363204) | $(1191741) |
| NET LOSS PER SHARE: BASIC AND DILUTED | $(0.00) | $(0.03) | $(0.03) | $(0.13) |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 17744299 | 9424502 | 14207357 | 9293893 |

---

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements

---

| |
|:---|
| **Treasure & Shipwreck Recovery, Inc.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT** |
| **Three and nine months ended January 31, 2023 and 2022** |
| **(Unaudited)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Preferred Stock | Preferred Stock | Common Stock | Common Stock | | | | |
|  | Shares | Amount | Shares | Amount |<br>Common<br> Stock to be<br> Issued |<br>Additional<br> Paid-in<br> Capital |<br>Accumulated<br> Deficit |<br>Total<br> Stockholders'<br> Deficit |
| Balance, April 30, 2021 | 51 | $- | 8146502 | $8147 | $312500 | $1709258 | $(1264891) | $765014 |
| Common stock issued for services |  |  | 800000 | 800 |  | 200875 |  | 201675 |
| Stock compensation |  |  | 350000 | 350 | (204500) | 204150 |  |  |
| Warrants issued with debt |  |  |  |  |  | 158325 |  | 158325 |
| Warrants issued for services |  |  |  |  |  | 11700 |  | 11700 |
| Net loss | - | - | - | - | - | - | (490109) | (490109) |
| Balance, July 31, 2021 | 51 |  | 9296502 | 9297 | 108000 | 2284308 | (1755000) | 646605 |
| Net loss | - | - | - | - | - | - | (384943) | (384943) |
| Balance, October 31, 2021 | 51 |  | 9296502 | 9297 | 108000 | 2284308 | (2139943) | 261662 |
| Stock issued for services |  |  | 192000 | 192 |  | 28608 |  | 28800 |
| Warrants issued with debt |  |  |  |  |  | 22613 |  | 22613 |
| Net loss | - | - | - | - | - | - | (316689) | (316689) |
| Balance, January 31, 2022 | 51 | $- | 9488502 | $9489 | $108000 | $2335529 | $(2456632) | $(3614) |
|  | Preferred Stock | Preferred Stock | Common Stock | Common Stock |  |  |  |  |
|  | Shares | Amount | Shares | Amount | Common<br> Stock to be<br> Issued | Additional<br> Paid-in<br> Capital | Accumulated<br> Deficit | Total<br> Stockholders'<br> Deficit |
| Balance, April 30, 2022 | 51 | $- | 9488502 | $9489 | $118500 | $2335529 | $(3334458) | $(870940) |
| Sale of common stock |  |  | 1666667 | 1667 |  | 48333 |  | 50000 |
| Net loss | - | - | - | - | - | - | (148359) | (148359) |
| Balance, July 31, 2022 | 51 |  | 11155169 | 11156 | 118500 | 2383862 | (3482817) | (969299) |
| Shares issued for services |  |  | 100000 | 100 |  | 2900 |  | 3000 |
| Conversion of debt to equity |  |  | 833333 | 833 |  | 24167 |  | 25000 |
| Sale of common stock |  |  | 4500000 | 4500 |  | 109790 |  | 114290 |
| Warrants |  |  |  |  |  | 20710 |  | 20710 |
| Net loss | - | - | - | - | - | - | (200879) | (200879) |
| Balance, October 31, 2022 | 51 |  | 16588502 | 16589 | 118500 | 2541429 | (3683696) | (1007178) |
| Conversion of debt to equity |  |  | 597190 | 597 |  | 13466 |  | 14063 |
| Sale of common stock |  |  | 833333 | 833 |  | 21555 |  | 22388 |
| Warrants |  |  |  |  |  | 2612 |  | 2612 |
| Net loss | - | - | - | - | - | - | (13966) | (13966) |
| Balance, January 31, 2023 | 51 | $- | 18019025 | $18019 | $118500 | $2579062 | $(3697662) | $(982081) |

---

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements

---

| |
|:---|
| **Treasure & Shipwreck Recovery, Inc.** |
| **CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **Nine months ended January 31, 2023 and 2022** |
| **(Unaudited)** |

---

---

| | | |
|:---|:---|:---|
|  | Nine months ended<br> January 31, 2023<br> (Unaudited) | Nine months ended<br> January 31, 2022<br> (Unaudited) |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss | $(363204) | $(1191741) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation | 5843 | 10897 |
| Warrants issued for services |  | 11700 |
| Amortization of discount | 21114 | 525448 |
| Stock compensation | 3000 |  |
| Changes in operating assets and liabilities: |  |  |
| Security deposits | 10000 | (10000) |
| Account payable | (545) |  |
| Accrued expenses | 59789 | 63990 |
| CASH FLOWS USED IN OPERATING ACTIVITIES | (264003) | (589706) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Proceeds from sale of common stock | 210000 |  |
| Proceeds from sale of convertible notes |  | 413000 |
| Proceeds from related party convertible loan | 7000 | - |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 217000 | 413000 |
| NET INCREASE (DECREASE) IN CASH | (47003) | (176706) |
| Cash, beginning of period | 47003 | 197761 |
| Cash, end of period | $- | $21055 |
| SUPPLEMENTAL CASH FLOW INFORMATION: |  |  |
| Cash paid for interest expense | $- | $- |
| Cash paid for income taxes | $- | $- |
| NON-CASH OPERATING AND FINANCING ACTIVITIES: |  |  |
| Conversion of debt to equity | $39063 | $- |
| Warrants issued with debt | $- | $180938 |

---

See accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements

**Treasure & Shipwreck Recovery, Inc.** 

**NOTES TO THE CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS**

**January 31, 2023**

**Note 1 – *ORGANIZATION AND NATURE OF BUSINESS***

Treasure & Shipwreck Recovery, Inc ("TSR" or the "Company"), was incorporated in the State of Nevada on October 24, 2016 as Beliss Corp. The Company changed its name to Treasure & Shipwreck Recovery Inc. on June 26, 2019.

TSR formed TSR Holdings, Inc., a wholly owned subsidiary, on August 22, 2019 as the Company's operating vehicle to focus on the recovery of sunken treasure from historic shipwrecks. The Company was originally focused on the development of high impact internet marketing, search engine optimization ("SEO") software and techniques, and the development of digital properties (collectively "Internet Marketing").

On April 6, 2020, TSR formed TSR Media Group, Inc. ("TSR Media"), a wholly owned subsidiary, in order to develop various digital media properties. TSR Media is in the process of developing, through an outside app developer, a treasure search and salvage gaming app.

**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, which raises substantial doubt about the Company's ability to continue as a going concern. The Company had no cash at January 31, 2023. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than three months from March 21, 2023. Management's plans include raising capital through the equity markets to fund operations and, eventually, the generation of revenue through its business. The Company does not expect to generate any significant revenues for the foreseeable future. At January 31, 2023, the Company had net working capital deficit of $998,881. 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.

**Note 3 – *SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES***

***Basis of Presentation***

Management acknowledges its responsibility for the preparation of the accompanying interim consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its financial position and the results of its operations for the interim period presented. These consolidated unaudited financial statements should be read in conjunction with the summary of significant accounting policies and notes to the consolidated financial statements included in the Company's Form 10-K annual report for the year ended April 30, 2022. The results of the nine months ended January 31, 2023 are not necessarily indicative of the results to be expected for the full fiscal year ending April 30, 2023.

***Principles of Consolidation***

The consolidated financial statements of the Company include the accounts of TSR Holdings, Inc. and TSR Media, which are wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.

***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 nine month periods ended January 31, 2023 and 2022 include the useful life of property and equipment, valuation allowances against deferred tax assets and fair value of non cash equity transactions.

***Cash and Cash Equivalents***

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

There were no cash equivalents at January 31, 2023 and April 30, 2022. 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. As of January 31, 2023, the Company had $0 in excess of the FDIC insured limit.

***Research and Development Expenses***

Expenditures for research and development are expensed as incurred.

***Revenue Recognition***

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606, *Revenue from contracts with customers*. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognizes revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract and Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. Specifically, Section 606-10-50 requires an entity to provide information about: a. Revenue recognized from contracts with customers, including the disaggregation of revenue into appropriate categories; b. Contract balances, including the opening and closing balances of receivables, contract assets, and contract liabilities; c. Performance obligations, including when the entity typically satisfies its performance obligations and the transaction price that is allocated to the remaining performance obligations in a contract; and d. Significant judgments, and changes in judgments, made in applying the requirements to those contracts.

The Company offers no discounts, rebates, rights of return, or other allowances to clients which would result in the establishment of reserves against service revenue. Additionally, to date, the Company has not incurred incremental costs in obtaining a client contract.

***Basic Loss per Share***

The Company has adopted Financial Accounting Standard Board ("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 periods ended January 31, 2023 and 2022 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss. As of January 31, 2023 and 2022, there were approximately 10,349,827 and 8,074,096 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, short term loans, and the Company's related party loan from a shareholder approximate their fair values because of the short maturity of these instruments.

***Fixed Assets***

Fixed assets are recorded at historical cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Gains and losses upon disposition are reflected in the consolidated statements of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. Currently the Company's only assets are a diving vessel and a magnetometer which were purchased in fiscal year 2020 and are being depreciated over three to twelve year useful lives.

***Impairment of Long-Lived and Intangible Assets***

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. Identified intangible assets are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

***Stock Based Compensation to Employees and Service Providers***

The Company recognizes all share-based payments to employees and service providers, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) or immediately if the share-based payments vest immediately.

***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.

***Customer Deposits***

Customer deposits discloses an amount paid by a customer prior to the Company providing it with goods or services. The Company has an obligation to provide the goods or services to the customer or to return the money.

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

**Note 4 – *FIXED ASSETS***

Fixed assets at January 31, 2023 and April 30, 2022 are summarized below:

---

| | | |
|:---|:---|:---|
| **Fixed Assets** | **January 31, 2023** | **April 30, 2022** |
| Diving Vessel | $36390 | $36390 |
| Magnetometer | 24000 | 24000 |
| Accumulated Depreciation | (44590) | (38746) |
| Fixed Assets, Net | $15800 | $21644 |

---

For the nine month periods ended January 31, 2023 and 2022, depreciation expenses were $5,843 and $10,897, respectively.

For the three month periods ended January 31, 2023 and 2022, depreciation expenses were $600 and $3,632, respectively.

**Note 5 – *NOTES PAYABLE***

**Related Party Convertible Loan**

An officer of the Company has provided a loan to TSR under a convertible promissory note. This convertible promissory note is unsecured, non-interest bearing, and is convertible into common shares of the Company stock at $2.75 per share and due on demand. The balance due to the officer was $60,890 and $53,890 as of January 31, 2023 and April 30, 2022, respectively.

**Short Term Loans**

As of January 31, 2023 and April 30, 2022, the Company had two loans totaling $2,700 and $16,763, respectively. One of the loans, totaling $14,063, was converted for 597,190 shares of common stock during the period ended January 31, 2023. The remaining loan of $2,700 is unsecured, non-interest bearing and due on demand.

**Convertible Notes Payable**

The following table reflects the convertible notes payable as of January 31, 2023 and April 30, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Issue Date** | **Maturity Date** | **January 31,<br> 2023<br> Principal<br> Balance** | **April 30, 2022<br> Principal<br> Balance** | **Rate** | **Conversion<br> Price** |
| Convertible notes payable |  |  |  |  |  |  |
| Face Value | 4/26/2021 | 4/26/2023 | $250000 | $250000 | 10.00% | 0.10 |
| Face Value | 4/26/2021 | 4/23/2023 |  | 25000 | 10.00% | 0.10 |
| Face Value | 5/5/2021 | 5/5/2023 | 150000 | 150000 | 10.00% | 0.10 |
| Face Value | 5/7/2021 | 5/7/2023 | 100000 | 100000 | 10.00% | 0.10 |
| Face Value | 5/19/2021 | 5/19/2023 | 150000 | 150000 | 10.00% | 0.10 |
| Face Value | 12/06/2021 | 3/6/2023 | 70666 | 70666 | 10.00% | 0.10 |
| Face Value | 4/20/2022 | 7/21/2023 | 50000 | 50000 | 10.00% | 0.05 |
| Face value |  |  | $770666 | $795666 |  |  |
| Less unamortized discounts |  |  | - | 21114 |  |  |
| Balance convertible notes payable |  |  | $770666 | $774552 |  |  |

---

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 nine months ended January 31, 2023 and year ended April 30, 2022, the Company recognized beneficial conversion features totaling $0 and $479,579, respectively. The discount from the beneficial conversion features are being amortized through charges to interest expense over the term of the convertible notes payable. The Company recorded interest expense related to the amortization of debt discounts on these notes of $0 and $206,818 for the three months ended January 31, 2023 and 2022, respectively. The Company recorded interest expense related to the amortization of debt discounts on these notes of $21,114 and $525,448 for the nine months ended January 31, 2023 and 2022, respectively.

**New Convertible Notes Payable Issued During the Nine Month Periods Ended January 31, 2023 and 2022**

***2023***

The Company did not enter into any new convertible note payable agreements during the nine month period ended January 31, 2023.

***2022***

On May 5, 2021, the Company entered into a convertible note payable with a corporation. The note payable, with a face value of $150,000, including a $15,000 original issue discount, bears interest at 10.0% per annum and is due on May 5, 2023. The convertible note payable is convertible, at the holder's option, into the Company's common shares at a fixed conversation rate of $0.10. The conversion of the note into shares of the Company's common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company's shares.

On May 7, 2021, the Company entered into a convertible note payable with a corporation. The note payable, with a face value of $100,000, including a $10,000 original issue discount, bears interest at 10.0% per annum and is due on May 7, 2023. The convertible note payable is convertible, at the holder's option, into the Company's common shares at a fixed conversation rate of $0.10. The conversion of the note into shares of the Company's common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company's shares.

On May 19, 2021, the Company entered into a convertible note payable with a corporation. The note payable, with a face value of $150,000, including a $15,000 original issue discount, bears interest at 10.0% per annum and is due on May 19, 2023. The convertible note payable is convertible, at the holder's option, into the Company's common shares at a fixed conversation rate of $0.10. The conversion of the note into shares of the Company's common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company's shares.

On December 6, 2021, the Company entered into a convertible note payable with a corporation. The note payable, with a face value of $70,666, including a $17,666 original issue discount, bears interest at 0.0% per annum and is due on March 6, 2023. The default interest rate is 15% if the note is not repaid within ninety days of the issue date, retroactive to the date of issuance. There was also $3,000 for legal fees included in the note balance. After the occurrence of any event of default, the convertible note payable is convertible, at the holder's option, into the Company's common shares at a fixed conversation rate of $0.10. The lender also received 282,667 warrants to purchase the Company's common stock at a purchase price of $0.25 for a period of five years from the date of the note. During the twelve months immediately following the Closing, with respect to each and any securities offering conducted by the Company, the Company agrees to, and hereby does, irrevocably grant to the Buyer the option to purchase up to $1,000,000 worth of the securities offered in such offering at the applicable offering prices thereunder. The conversion of the note into shares of the Company's common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company's shares.

On April 20, 2022, the Company entered into a convertible note payable with an individual who is a member of the Company's Board of Directors. The note payable, with a face value of $50,000, bears interest at 10.0% per annum and is due on July 21, 2023. The convertible note payable is convertible upon default, at the note holder's option, into the Company's common shares at a fixed conversation rate of $0.05. The conversion of the note into shares of the Company's common stock is potentially highly dilutive to current shareholders. If the note holder elects to sell the shares that it has acquired as a result of converting the note into shares of common stock, then any such sales may result in a significant decrease in the market price of the Company's shares. This convertible promissory note is currently in default due to non payment of principal and interest.

**Note 6 – *STOCKHOLDERS' DEFICIT***

**Series A Preferred Stock**

On May 1, 2020, the Company's Board authorized the creation of 100 Series A preferred shares. The Series A preferred shares will pay a quarterly payment based upon gaming revenue sharing, which all 100 Series A preferred shares will receive twenty percent of TSR's portion of the game revenue from its game app., which equates to thirteen percent of total game gross revenues. Each Series A preferred share was priced at $4,000 with a minimum purchase of three Series A preferred shares and are only eligible to be purchased by accredited investors. Each Series A preferred share will receive one one hundredth of twenty percent of TSR game net as revenue sharing. Each Series A preferred share will continue to exist, unless the game app. is sold to another entity, at which time the Series A preferred shareholders will receive their same percentage of the game sales proceeds price, if or when such occurs. The Series A preferred shares are not convertible into common shares and are subject to all other restrictions on securities as set forth.

At January 31, 2023 and April 30, 2022 the Company had 51 shares of Series A preferred shares outstanding.

**Warrants**

At April 30, 2022 there were 1,255,667 warrants outstanding with a weighted average exercise price of $0.25, weighted average remaining life of 4.7 years and an average intrinsic value of $0.11. There were 887,500 warrants at a strike price of $0.06 granted during the nine month period ended January 31, 2023. At January 31, 2023, there were 2,143,167 warrants with a weighted average exercise price of $0.17, weighted average remaining life of 2.25 years, and an average intrinsic value of $0.11.

**Note 7 – *COMMITMENTS AND CONTINGENCIES***

**Operations Manager's Agreement**

In October of 2020, TSR entered into an agreement with an individual consultant to be the Company's operations manager for site selection and operational oversight. The term of the agreement is for a minimum of one year. The services to be rendered, on an as needed basis include selection for sites, and personnel for diving for recovery operations, assistance in the selection of personnel, contractors, and parties for wreck site scanning, search operations, and recovery operations of wreck sites, analysis and review of shipwreck sites, interaction with state and governmental authorities as necessary for wreck site approval and operations, and at the option of TSR participate in and have the right to appear in media productions involving the Company. There are additional terms in the agreement where the Company has agreed to pay to the consultant shares of its restricted common stock for successfully locating treasure.

**Trademark and Usage Purchase Agreement Gaming and Media Rights Payments**

TSR entered into a Trademark and Usage Purchase Agreement on March 5, 2020, Purchase of Trademark, Graphics, Related Media and Product Materials. Under the terms of the agreement TSR is obligated to pay ten percent of the gaming rights and five percent of television media revenue, which shall be for rights of the gaming name rights, as used in all such app, online or other gaming as owned by TSR and any television related media.

**Note 8 – *RELATED PARTY TRANSACTIONS***

An officer of the Company has provided a loan to TSR under a convertible promissory note. This convertible promissory note is unsecured, non-interest bearing, and is convertible into common shares of the Company stock at $2.75 per share and due on demand. The balance due to the officer was $60,890 and $53,890 as of January 31, 2023, and April 30, 2022, respectively.

**Note 9 – *SUBSEQUENT EVENTS***

The Company has evaluated all subsequent events through March 21, 2023, the date the financial statements were available to be issued.

Subsequent to January 31, 2023:

On March 8, 2023, the Company purchased a vessel and a boat for its treasure recovery operations. The treasure recovery vessel, the M/V Bottomline, is a 36 foot Chris Craft Commander outfitted with two Caterpillar 370 HP engine and retrofitted with two blowers used in the treasure recovery process, The boat is a 17 foot Boston Whaler, to be utilized as an anchor and utility boat. The total purchase price for both the vessel and the smaller boat was $148,225, including fees and sales taxes.

Subsequent to January 31, 2023, the Company issued or has agreed to issue shares of its common stock as follows:

(i) 7,336,333 shares of common stock for proceeds of $220,100 under its Reg A filing; and

(ii) 2,950,000 shares of common stock to settle the principal and accrued interest of$88,100 of two convertible notes.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**Forward-looking statements**

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Financial information contained in this report and in our financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

**Description of Business**

Treasure Shipwreck & Recovery, Inc. ("TSR", "us," "we,", the "Company") is focused, through its wholly owned subsidiary TSR Holdings, Inc., on the exploration and recovery of historic shipwrecks. The Company has acquired various assets including a research vessel and specialized sensing equipment to be utilized to attempt to locate and eventually recover artifacts and treasure from historic shipwrecks, generally from the colonial era. The Company has acquired the intellectual property rights in a purchase agreement for the naming, trademark and use rights of Galleon Quest, from a third party to be used on Games and Apps, and merchandising of products.

**Legal Proceedings**

TSR was served with a lawsuit in the lesser county court in Hillsborough County, Florida, served on February 1, 2023, over a claimed fee by Dalmore Group, LLC for a claim of fees of a limited amount of $20,000, Dalmore was contracted by TSR to perform services to TSR in regard to the offering and processing for TSR's REG A offering. However, after contracting Dalmore, and TSR paying the initial fees of some $5,950. TSR chose not to continue with their services, and communicated an end to such agreement. Dalmore apparently failed to acknowledge such termination, even though they did not provide any services at all for TSR. TSR has filed a motion to dismiss such lawsuit on numerous grounds. TSR does not believe the lawsuit to have merit and is not material to its operations and financial condition. There are no other threated or other legal proceedings for TSR.

**COVID-19 Pandemic Threat and Continuity Plan**

Due to current events involving the global COVID-19 pandemic, TSR, under the guidance of its President, is reviewing procedures 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 and its assets. We are also in the process of reviewing plans to locate a back office for our corporate records and information at a location to be designated so that in the event that access to the Company's offices are restricted, the Company is able to continue with its business and operations.

The Company's operations may be adversely affected by the ongoing outbreak of the coronavirus disease 2019 (COVID-19) which was declared a pandemic by the World Health Organization ("WHO") in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact on the TSR's financial position, operations and cash flows.

Possible effects may include, but are not limited to, disruption to the Company's operations, inability of management team members and other key personnel and consultants to provide services or provide services in a timely manner, unavailability of equipment, parts and supplies used in operations, lack of access to maintenance and repair facilities for the Company's salvage vessel, and a decline in the value of the Company's assets including its salvage vessel, equipment and its digital properties.

Additionally, it is possible that the Company is not able to obtain financing 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 its operations. The impact of smaller companies such as TSR having to cease operations due to effects of COVID-19 would likely result in the Company not being able to survive and would cause a complete loss of all capital invested in the Company.

**Results of operations**

We have incurred recurring losses to date. Our condensed 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.

We will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities. However, there can be no assurances that we will be able to raise additional capital. The Company had $0 cash at January 31, 2023. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than one month from March 21, 2023.

**Summary of the Nine Months Ended January 31, 2023 Results of Operations Compared to the Nine Months Ended January 31, 2022 Results of Operations**

**Revenue**

The Company did not generate any revenue during the nine month periods ended January 31, 2023 and 2022.

**Operating Expenses**

During the nine month period ended January 31, 2023, the Company incurred consulting and accounting expense of $87,878, labor expense of $10,585, legal fees of $19,513, professional fees of $51,088, boat expense of $73,829, general and administrative expense of $33,565 and depreciation expense of $5,843.

During the nine month period ended January 31, 2022, the Company incurred consulting and accounting expense of $100,108, labor expense of $36,925, legal fees of $33,575, professional fees of $80,614, boat expense of $246,826, research and development expense of $8,000, general and administrative expense of $99,891, and depreciation expense of $10,897.

The decrease in operating expenses for the nine months ended January 31, 2023 is attributable to the decrease in boat and labor expenses for exploration and decrease in consulting and legal fees. The Company also conducted fewer exploration activities due to inclement weather.

**Other Income (Expenses)**

Interest expense was $80,903 during the nine month period ended January 31, 2023. Interest expense was $574,905 during the nine month period ended January 31, 2022. The interest expense in 2023 was a result of interest on notes and the amortization of the interest relating to the beneficial conversion features of several convertible promissory notes. Other income was $0 during the nine month period ended January 31, 2023 and 2022.

**Net Loss**

For the nine month period ended January 31, 2023 the Company incurred net losses of $363,204 versus net losses of $1,191,741 for the nine month period ended January 31, 2022. The decrease in net loss was attributable to decreased operating expenses and interest expense. The decrease in net losses for the period ended January 31, 2023 was due to decreased interest expense versus the three month period ended January 31, 2022.

**Summary of the Three Months Ended January 31, 2023 Results of Operations Compared to the Three Months Ended January 31, 2022 Results of Operations**

**Revenue**

The Company did not generate any revenue during the three month periods ended January 31, 2023 and 2022.

**Operating Expenses**

For the three month period ended January 31, 2023, the Company incurred consulting and accounting fees of $3,500, legal fees of $398, professional fees of $2,000, boat expense of $3,984, general and administrative expense of $4,303, and depreciation expense of $600.

For the three month period ended January 31, 2022, the Company incurred consulting and accounting expense of $27,550, labor expense of $1,232, legal fees of $8,825, professional fees of $5,448, boat expense of $11,142, general and administrative expense of $36,335, and depreciation expense of $3,632.

The decrease in operating expenses for the three months ended January 31, 2023 is attributable to a decrease in consulting and accounting fees and general and administrative expenses. The Company also conducted fewer exploration activities due to inclement weather.

**Other Income (Expenses)**

Interest expense was $(819) during the three month period ended January 31, 2023. Interest expense was $222,525 during the three month period ended January 31, 2022. The interest expense in 2022 was a result of interest on notes and the amortization of the interest relating to the beneficial conversion features of several convertible promissory notes. The increase in interest expense in 2022 was a result of the amortization of the interest relating to the beneficial conversion features of several convertible promissory notes having more amortization in 2021 than in 2022.

**Net Loss**

For the three month period ended January 31, 2023 the Company incurred net losses of $13,966 versus losses of $222,525 for the three month period ended January 31, 2022. The decreased net loss is a result of decreased interest expense in the three months ended January 31, 2023. The decrease in net losses for the period ended January 31, 2023 was due to decreased interest expense versus the three month period ended January 31, 2022.

**Liquidity and capital resources**

As at January 31, 2023, our total assets were $16,800.

As at January 31, 2023, our current liabilities were $998,881 and stockholders' deficit was $982,081.

As at January 31, 2023, we had a net working capital deficit of $998,881.

**Cash flows from operating activities**

For the nine month period ended January 31, 2023 net cash flows used in operating activities was $264,865.

For the nine month period ended January 31, 2022 net cash flows used in operating activities was $589,706.

The decrease in cash used in operating activities is attributable to decreased boat expense and general and administrative expenses.

**Cash flows from investing activities**

There were no cash flows from investing activities for the nine month periods ended January 31, 2023 and 2022.

**Cash flows from financing activities**

For the nine month period ended January 31, 2023 cash flows provided by financing activities were $217,000.

For the nine month period ended January 31, 2022 cash flows provided by financing activities were $413,000.

The decrease in cash provided by financing activities is attributable to increased proceeds from the sale of convertible loans for the nine month period ended January 31, 2022.

We qualify as a "smaller reporting company" under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements.

For example, smaller reporting companies are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation S-K or the auditor attestation of internal controls over financial reporting.

**Future Financings**

We will continue to rely on equity sales of the Company's common shares in order to continue to fund business operations. Issuances of additional shares will result in dilution to existing shareholders. There is no assurance that the Company will achieve any additional sales of equity securities or arrange for debt or other financing to fund planned operations. Future financing activities involving the sale of common stock under subscription agreements or entering into convertible promissory note agreements may cause substantial dilution to current shareholders. The Company currently has an active Reg-A for a financial raise.

**Liquidity and Capital Resources and Cash Requirements**

As of the date of this report, the current funds available to the Company will not be sufficient to continue maintaining a reporting status. At January 31, 2023, the Company had $0 cash and a working capital deficit of $998,881. 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. Based on its historical rate of expenditures, the Company expects to expend its available cash in less than three months from March 17, 2023.

The Company may not be able to continue as a going concern. The report of our independent auditors for the year ended April 30, 2022 raises substantial doubt as to our 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 will be lost.

Management believes that current trends toward lower capital investment in start-up companies pose the most significant challenge to the Company's success over the next year and in future years. Additionally, the Company will have to meet all the financial disclosure and reporting requirements associated with being a publicly reporting company. The Company's management will have to spend additional time on policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley Act of 2002. This additional corporate governance time required of management could limit the amount of time management has to implement its business plan and impede the speed of its operations.

**Recently Issued Accounting Pronouncements**

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

None

**ITEM 4. CONTROLS AND PROCEDURES**

**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 President 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 President and Chief Financial 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 January 31, 2023. Based on this evaluation, management concluded that our financial disclosure controls and procedures were not effective so as to timely record, process, summarize and reporting of 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 consolidated financial statements and other information presented herewith are materially correct.

**Internal Control Over Financial Reporting**

As of January 31, 2023, 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 reporting of 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 consolidated 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 consolidated 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 managements 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 consolidated 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.

**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 January 31, 2023, 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 quarterly 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 quarterly 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 nine month period ended January 31, 2023.

**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

TSR was served with a lawsuit in the lesser county court in Hillsborough County,Florida, served on February 1, 2023, over a claimed fee by Dalmore Group, LLC for a claim of fees of a limited amount of $20,000, Dalmore was contracted by TSR to perform services to TSR in regard to the offering and processing for TSR's REG A offering. However, after contracting Dalmore, and TSR paying the initial fees of some $5,950. TSR chose not to continue with their services, and communicated an end to such agreement. Dalmore apparently failed to acknowledge such termination, even though they did not provide any services at all for TSR. TSR has filed a motion to dismiss such lawsuit on numerous grounds. TSR does not believe the lawsuit to have merit and is not material to its operations and financial condition.

**ITEM 1A. RISK FACTORS**

Not required.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS**

None.

**ITEM 5. OTHER INFORMATION**

None.

**ITEM 6. EXHIBITS**

The following exhibits are included as part of this report by reference:

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| | |
|:---|:---|
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| [32.1](blis-ex32_1.htm) | [Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.](blis-ex32_1.htm) |
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| 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) |

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**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.

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| | | |
|:---|:---|:---|
|  | **Treasure & Shipwreck Recovery, Inc.** | **Treasure & Shipwreck Recovery, Inc.** |
| Date: March 21, 2023 | By: | */s/ Craig Huffman* |
|  |  | Craig Huffman<br> President, Chief Financial Officer and Principal Accounting Officer<br> (Principal Executive Officer and Principal Accounting Officer) |
| Date: March 21, 2023 | By: | */s/ Frederick Conte* |
|  |  | Frederick Conte <br> Director  |
| Date: March 21, 2023 | By: | */s/ Patrick Schneider* |
|  |  | Patrick Schneider <br> Director  |

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## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer pursuant to Securities Exchange<br> Act of 1934 Rule 13a-14(a) or 15d-14(a).**

I, Craig Huffman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Treasure & Shipwreck Recovery, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being prepared;

b) designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated
the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such
evaluation; and

d) disclosed
in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
and

b) any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal control over financial reporting.

March 21, 2023

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| | |
|:---|:---|
| By: | /s/ Craig Huffman |
| Name: | Craig Huffman |
| Title: | Director (Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO<br> 18 U.S.C. SECTION 1350,<br> AS ADOPTED PURSUANT TO<br> SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Treasure & Shipwreck Recovery, Inc. (the "Company") on Form 10-Q for the period ended January 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Craig Huffman, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The
Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
information contained in the Report fairly presents, in all material respects, the financial condition and result of operations
of the Company.

March 21, 2023

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| | |
|:---|:---|
| By: | /s/ Craig Huffman |
| Name: | Craig Huffman |
| Title: | Director (Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer) |

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