Endurance Exploration Group, Inc.

Effective October 1, 2018, the Company, through a newly formed Delaware corporation, Caird Explorations, Inc. (“Caird”), formed a joint venture with Global Marine Archaeological Research, LLC (“GMAR”).  Caird will initially be fifty percent (50%) each owned by EXPL and GMAR. EXPL issued and contributed 12,000,000 restricted shares of its common stock to Caird in exchange for its ownership interest in the joint venture, and GMAR assigned and transferred to the joint venture all of its rights, title, and intellectual property including sonar data, photographic data, research, agreements, and all other intellectual property relating to a number of shipwrecks which had previously been located by GMAR; and, the same data and rights concerning a specified, non-located shipwreck (“Primary Target”) which has been the subject of extensive searches by GMAR.  The previously located shipwrecks are located in international waters, off the coast of the Southeastern United States, and are located at depths up to 5000 feet. The Primary Target is expected to be located in the same general area.  

In addition to Caird’s formation, EXPL has directly acquired from GMAR a General Dynamics Bluefin 12 Autonomous Underwater Vehicle (“AUV”). The AUV represents a state of the art subsea survey system, capable of autonomously conducting side scan sonar surveys, photographing targets, and conducting other complex sensor surveys in depths up to 1,500 meters, or approximately 5,000 feet of water.  The AUV will be utilized by the joint venture for the continued search for the joint venture’s Primary Target; will be utilized by EXPL in future survey missions for new, deep-water shipwreck targets it wishes to search for, explore, and survey; and, will be offered for charter to commercial users who wish to utilize the system.  

On or about October 2, 2018, the United States District Court for the Middle District of Florida, Tampa Division rewarded the Company, operating through its previously announced joint venture, Swordfish Partners, with the entry of its Order granting Swordfish Partners title to those items set forth in the September 2018 Adjudication Report filed with the Court.  As a result of the Court’s Order, Swordfish Partners acquired title to over 600 items and artifacts salvaged from the Steamship Pulaski, a steamship that sank 40 miles off the coast of North Carolina in 1838.  Among the items recovered are over 500 gold and silver coins from all over the world that date back to the late 1700s and early 1800s.  

We have acquired as part of our joint venture, Caird, all of GMAR’s rights, title, and intellectual property relating to a number of shipwrecks that were previously located by GMAR; and, the same data and rights concerning a specified, non-located shipwreck that is a primary target.  These shipwrecks are located in international waters off the coast of the Southeastern United States.  We anticipate the cost of continuing this exploration will be $500,000 to $1,000,000.  We need additional working capital to undertake these efforts.  There can be no assurances that we will be successful in securing additional working capital and therefore cannot represent we will ever be in a position to continue this search or complete the recovery of cargo from any of these vessels.  

General and administrative expenses include all costs associated with professional, legal fees, insurance, rent, dues and subscriptions and other administrative expenses. Also, included in this category are any costs associated with stock-based compensation. We incurred general and administrative expenses of $39,283 the three months ended September 30, 2018 as compared to $76,853 for the three months ended September 30, 2017, a decrease of $37,570.