RESTATEMENT

3 Months Ended

Mar. 31, 2014

Common stock shares due and payable upon receipt of a salvage and recovery contract

RESTATEMENT

NOTE 14 - RESTATEMENT

In connection with the review of convertible debt as of March 31, 2014, the Company identified an accounting interpretation issue in the accounting for two (2) convertible notes issued by two separate unrelated third party entities. The notes were issued on January 16, 2014 and March 17, 2014.

The effects of the restatement on reported amounts for the three months ended March 31, 2014 are presented below in the following tables:

	31-Mar-14
	As Reported			Adjustments			As Restated
Total assets	$	171,884		$	-		$	171,884
Accounts payable and accrued expense	$	150,126		$	-		$	150,126
Convertible notes payable, net of discounts		140,906			(30,195	)		110,711
Convertible notes payable, related parties, net of discounts		21,958			11			21,969
Convertible notes payable, in default		251,300			-			251,300
Convertible notes payable, in default - related parties		153,500			-			153,500
Derivative liability		22,291			(22,291	)
Convertible notes payable, at fair value		-			172,940			172,940
Notes payable, in default		30,000			-			30,000
Notes payable, in default - related parties		7,500			-			7,500
Total liabilities		777,581			120,465			898,046
Preferred stock, $0.0001 par value - 50,000,000 shares authorized;
Series A preferred stock, $0.0001 par value - 7 shares authorized; 7 shares issued
and outstanding at March 31, 2014 and December 31, 2013		-			-			-
Series B preferred stock, $0.0001 par value - 60 shares authorized; 60 shares issued
and outstanding at March 31, 2014 and December 31, 2013		-			-			-
Common stock, $0.0001 par value - 950,000,000 shares authorized; 874,532,999 and
844,216,349 shares issued and outstanding at March 31, 2014		87,230			-			87,230
Additional paid-in capital		7,795,611			(50,000	)		7,745,611
Accumulated deficit		(8,488,538	)		(70,465	)		(8,559,003	)
Total stockholders' deficit		(605,697	)		(120,465	)		(726,162	)
Total liabilities and stockholders' deficit	$	171,884		$	-		$	171,884
	Three months ended March 31, 2014
	As reported			Adjustments			As restated
Revenue	$	-		$	-		$	-
Total operating expenses		312,804			-			312,804
Loss from operations		(312,804	)		-			(312,804	)
Other income (expense):
Interest expense		(161,762	)		(61,177	)		(222,939	)
Gain (loss) on change in fair value of derivatives		9,288			(9,288	)		-
Net loss	$	(465,278	)	$	(70,465	)	$	(535,743	)