SOVEREIGN EXP. Totalverlust oder die Chance schlechthin ? - 500 Beiträge pro Seite

[calibra21]

SOVEREIGN EXP.
WKN: A0H1HN
US-Kürzel: SVXA
Totalverlust möglich. Aber auch mehrere 100 %

SOVEREIGN EXP. vollzog vor kurzer Zeit einen R/S im Verhältnis 1:1000 worauf der Kurs über 50 % des Kursniveaus verlor.

Und das OHNE fundamentalen Änderungen!




Am 30 Januar 2006 4:00PM EST veranstaltet SVXA einen "Investor Conference Call"

http://biz.yahoo.com/bw/060119/20060119005501.html?.v=1

Das aufkommende Kaufinteresse wird zu steigenden Kursen führen.

Für Noch-Nicht-Investierte bietet sich momentan ein Kauf auf niedrigem Niveau an.

[UH1d]

Sovereign Exploration Associates International, Inc. Announces Plans to Recover the Spanish vessels JUNO and GALGA
Tuesday January 24, 12:00 pm ET


NEWTOWN, Pa.--(BUSINESS WIRE)--Jan. 24, 2006--Sovereign Exploration Associates International, Inc. (OTCBB: SVXA - News), a leader in international maritime archeology and artifact recovery, announced today that its portfolio company, SEAI of Spain, Inc. requested the Commonwealth of Virginia renew the recovery permit for the Spanish Frigate JUNO lost off the coast of Assateague Island, Virginia.
ADVERTISEMENT


Luis Angel Valero, President of SEAI of Spain, Inc., a SVXA portfolio company, and Peter Knollenberg, Chairman of SVXA worked closely with Spanish government officials to secure an agreement signed with the Kingdom of Spain to recover the Spanish Frigates JUNO and GALGA. Sea Research an SVXA portfolio company will be responsible for the recovery operation of the JUNO. "We will be following Spain`s archeological guidelines during the recovery and conservation of artifacts and we will adhere to the permit requirements of the State of Virginia in a collaborative effort to preserve the maritime heritage of the vessels and develop a strong cultural exchange between our two countries", stated Mr. Valero. "We had invested a significant amount of time and funds in the JUNO project before SVXA went public", explained Mr. Knollenberg who added "our shareholders, the Kingdom of Spain and the Commonwealth of Virginia will all benefit from a successful recovery of the JUNO and GALGA. We view our agreement with the Spanish Government as an important vote of confidence in our ability as a private sector company to provide a public service in helping to discover and present historical information, while contributing to educational programs.

"The JUNO and GALGA represent the first of several projects that will be undertaken by our portfolio companies Sea Research and SEAI of Spain." said Robert Baca, President of SVXA. The JUNO, a Frigate of 34 guns, was lost in 1802 sailing to Cadiz with a wide variety of cargo. The GALGA with 50 guns was the El Capitaine of the 1750 fleet sank en route from Havana with "Passengers of Distinction". "As we move forward with our film series; Shipwrecks That Changed the World, we see the sinking of these and other Spanish vessels as a major component of the story." added Mr. Baca.

SVXA will post background information to http://www.sea-int.com/ on the JUNO and GALGA over the next week.

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. (OTCBB:SVXA - News) is a Business Development Company under the Investment Company Act of 1940 undertaking shipwreck exploration and recovery initiatives. Pursuant to Section 13 or 15(d) of the Security Exchange Act of 1934, SVXA has filed Form 8-K.

SAFE HARBOR

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company`s products in the marketplace, competitive factors and other risks detailed in the Company`s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.



Contact:
Sovereign Exploration Associates International Inc.
Curtis R. Sprouse, COO 781-246-7512
Fax: [phone]
[e-mail]
www.sea-int.com

--------------------------------------------------------------------------------
Source: Sovereign Exploration Associates International, Inc.

[Andreito]

habe hier ein zeitungsartikel aus der spanischen zeitung "el mundo" gefunden. koennt ihr mir weiter helfen ob es das schiff ist was svxa bergen will????

http://www.elmundo.es/elmundo/2006/01/19/ciencia/1137673689.…



CONFLICTO EN AGUAS DEL ESTRECHO DE GIBRALTAR
Ecologistas en Acción acusa al barco `Odyssey ` de sacar de aguas de Cádiz tesoros del galeón `Sussex `

El `Odyssey`, izando el robot submarino que se encarga de las inmersiones. (Foto: Pipe Sarmiento) VEA MÁS IMÁGENES

ADEMÁS
Vea imágenes del `Odyssey`
Un armador madrileño también reclamaba el tesoro


Noticias relacionadas en elmundo.es
Actualizado viernes 20/01/2006 10:10 (CET)
OLALLA CERNUDA
MADRID.- El `Odyssey`, el barco norteamericano que investiga el fondo de la Bahía de Algeciras (Cádiz) en busca del `Sussex` -un navío inglés naufragado con un cargamento de oro-, prosigue con sus inmersiones en la zona, pese a la Junta de Andalucía asegura que no se trata de una expedición con fines arqueológicos, sino "para recuperar el tesoro". Según ha denunciado Ecologistas en Acción, a pesar de que el capitán del barco tiene un requerimiento judicial para que cese su actividad, "ya han cogido algo que han mandado para el laboratorio arqueológico marino británico".

El motivo de la disputa es el `HMS Sussex`, un galeón británico de 80 cañones hundido en aguas del Estrecho de Gibraltar en 1864, debido a un fuerte temporal. En sus bodegas se supone que está el mayor tesoro hundido localizado hasta ahora: 10 toneladas de oro y 100 de plata en lingotes, 4.000 millones de euros en dinero, según estimaciones de los cazatesoros más prestigiosos del mundo.

Un tesoro que, desde hace meses, trata de recuperar una empresa estadounidense, Odyssey Marine Explorations, que ha enviado un barco oceanográfico a la zona para localizar el pecio y su tesoro. Según esta compañía, han firmado un acuerdo con arqueólogos británicos -los únicos que tienen derecho a quedarse con los restos arqueológicos, puesto que el barco es de bandera inglesa- para luego llevar al Reino Unido los restos que encuentren. Sin embargo, diversas asociaciones de la zona de Algeciras, entre otras la Junta de Andalucía, sospechan que la expedición no tiene fines arqueológicos o científicos, sino empresariales.

Y es que el problema radica en la dificultad de determinar a quién pertenecería el hipotético tesoro oculto en las bodegas del `Sussex`. Según publicó el suplemento de EL MUNDO Crónica en abril de 2005, "estamos ante una situación muy compleja a nivel jurídico ya que se trata de un navío británico, hundido en aguas españolas, con el conflicto de Gibraltar por medio, reclamado por un español y por una empresa norteamericana, y con varios ministerios -Cultura, Fomento y Exteriores- implicados, más la propia Junta de Andalucía. Además, está el conflicto de intereses entre la salvaguarda del patrimonio cultural y el meramente especulativo de los cazadores de tesoros".

Según declaró a Telecinco José María Rodríguez, viceconsejero de Cultura de la Junta de Andalucía, se trata de una expedición "que no tiene ningún fin científico ni está sometida a la ley de patrimonio histórico, sino que sólo pretende recuperar el tesoro del barco". De momento, la Junta no ha podido confirmar que se haya producido el expolio y que desde el `Odissey` se haya sacado ninguna pieza del pecio, aunque la Guardia Civil sí ha podido constatar que "se están haciendo trabajos arqueológicos sin autorización".

Meses de trabajos
El `Odissey` lleva meses en Gibraltar, pero el pasado martes se desplazó a unas seis millas al sureste de Punta Europa, lugar donde estuvo anclado hasta esta misma mañana, en que ha emprendido el regreso al puerto gibraltareño. Según ha denunciado Ecologistas en Acción, desde el barco se han realizado numerosas inmersiones en las que "ya han cogido algo". Antonio Muñoz, portavoz de la organización, declaró a elmundo.es que con las maniobras que hace el `Odyssey` se puede presumir que "parte del oro, si no todo, ya lo hayan cargado a bordo".

En la página web de Odyssey Marine Exploration la empresa ofrece información sobre el proyecto de "recuperación del pecio", aunque no especifica qué se va a hacer con los restos arqueológicos que se encuentren. En el web se pueden adquirir diversos objetos encontrados por esta misma compañía en los restos de otros barcos hundidos.

En vista de las numerosas maniobras que se efectúan desde el barco, siempre por la noche, Manuel Melero, responsable del Partido Andalucista de San Roque, presentó una denuncia ante la Guardia Civil para que se registre el buque. El capitán del `Odyssey` estaba llamado ayer a declarar en un juzgado, pero en su lugar se presentó su abogado, que sostiene que la empresa no necesita la autorización de la Junta de Andalucía porque el barco hundido tiene bandera británica. En este punto recordó que existe un convenio internacional, firmado también por España, por el que los restos de los barcos hundidos pertenecen al país que atesora la bandera del buque, aunque el `Odyssey` es un barco de propiedad estadounidense y bandera de Bahamas.

Pipe Sarmiento, un empresario de Algeciras que lleva meses siguiendo las actividades del `Odyssey`, ha tomado diversas fotografías del equipo del buque realizando diversas inmersiones, y sostiene que ya han sacado hasta un cañón del fondo marino, "para poder identificar al `Sussex`, pues se les acaba el permiso inglés y les urge llevar una prueba de que realmente han encontrado el pecio".

[Andreito]

der ausschnitt ist der beste

En sus bodegas se supone que está el mayor tesoro hundido localizado hasta ahora: 10 toneladas de oro y 100 de plata en lingotes, 4.000 millones de euros en dinero

die nehmen das es der groesste versunkene schatz bis jetzt ist.

10 tonnen gold und 100 tonnen silber!!!!!!!!!

[Andreito]

ui ich glaube ich war mal wieder was zu voreilig. Odyssey Marine Exploration hat glaube ich nichts mit svxa zu tun oder???

[Tippgeber1]

kurs zieht wieder an.

Last:

0.5 svxa - SOVEREIGN EXPL ASSOCS INTL I
Change:

+0.04 % Change:

+8.70% High:

0.5 Low:

0.4 Volume:

3,000

Price Data Table
Open 0.4
Previous Close 0.5
Exchange of Last Sale OTCBB
Time of Last Sale 10:18:33
Tick Up
Bid 0.4
Ask
Size Bid/Ask 50x50
Symbol Type Equity

Fundamental Data Table
52 Week High 2,700.00
52 Week Low 0.20
EPS -349.7
P/E Ratio 0.00
Shares Outstanding 2,000,000
Market Cap 1,052,000
Beta 64.426
Dividend Frequency
Ex-Dividend Date
Dividend Amount
Yield 0.00
Primary Exchange OTCBB


Grüssels
Tippgeber1

[Andreito]

weis einer wann die bergung des schiffes begonnen soll?

[calibra21]

Keine Ahnung. Auf jeden Fall steigt der Kurs

+47%

[Andreito]

du meinst wohl 56,9%

[Andreito]

weis einer die anzahl der shares???

also auf der otcbb seite zeigen die mir folgendes an:


(01/27/2006 5:13 PM EST)

Shares
2.29 b

Market Cap
1.83 b


das kann doch nicht sein oder???

[gled77]

andreito, was würde es dann denn bedeuten??
danke für deine antwort

[Andreito]

verstehe deine frage nicht, vielleicht ist es ja auch noch zu frueh .... gaehn...

[gled77]

hi!
ich meine, was du mit deinem vorletzten posting meinst? das mit der anzahl der shares + marktcap?

[Andreito]

wegen dem "b" das steht doch fuer billion oder??? dann waeres es ja 2.290.000.000 shares und ein market cap von 1.830.000.000 oder??? das kann doch nicht sein.

[Andreito]

hier der link


http://www.otcbb.com/asp/Info_Center.asp

[gled77]

o.k. aber wooooo liegt das probleeeem?
heißt es etwa, dass zu viele shares da sind und der wert bzw.der aktuelle kurs zu hoch ist, oder was? bzw. was ist deine sorge?????
übrigens, irgend jemand sagte, billionen sind in amerika millionen, oder nicht?!?????

[PizPalue]

Hallo,
wo liegen noch die Probleme?
RS 1000:1 durchgeführt; Kursrutsch auf 0,35 $-Cent und Freitag Anstieg um 67 % auf 0,80. Es sind aber noch ca. 200 % erforderlich, wenn die Höhen kurz vor dem RS erreicht werden sollen.

[calibra21]

[posting]19.924.414 von Andreito am 28.01.06 11:04:41[/posting]Nein, bei den Amis steht Billion für Milliarde.

[Andreito]

@gled77

ich glaube du verstehst das nicht so ganz. eh?

[PizPalue]

[posting]19.930.886 von calibra21 am 28.01.06 22:46:20[/posting]Hallo Calibra,
schönen Sonntag!
Was macht eigentlich unser neuer Wert? Ich weiß schon garnicht mehr wie die Company heißt; muß wohl noch einmal ins Depot schauen.

[calibra21]

[posting]19.940.734 von PizPalue am 29.01.06 11:33:47[/posting]Noch keine neuen Fakten bezüglich IBCS.

Stay tuned

[Andreito]

IBCS???

[gled77]

guten morgen!
gehts heute up???

[gled77]

1/30/06

NEWTOWN, Pa., Jan 30, 2006 /PRNewswire-FirstCall via COMTEX/ --

Sovereign Exploration Associates International, Inc. ("Sovereign") (OTC Bulletin Board: SVXA) announced today the Company will hold an investor conference call today at 4:00PM ET. Sovereign President and Chief Executive Officer Bob Baca and Chief Operating Officer Curt Sprouse will be discussing the Company`s new business strategy, corporate developments, and ongoing operations. To access the call within the US and Canada, dial 1-888-636-8801 and enter the conference identification number 4410032.

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. is a business development company undertaking shipwreck exploration and recovery initiatives. The Company focuses on shipwrecks dating from 1500 to 1900 on behalf of museums and private parties interested in commissioning artifact recovery. The Company operates with licenses and finders` rights granted by government authorities and has exclusive access to the largest identified and located grouping of valuable shipwrecks in the world. For more information, visit http://www.sea-int.com.

SAFE HARBOR

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company`s products in the marketplace, competitive factors and other risks detailed in the Company`s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For further information, contact:

At the Company:
Sovereign Exploration
Associates International, Inc.
Jim Cavan
781-246-7512
[e-mail]
http://www.sea-int.com

Investor relations:
OTC Financial Network
Peter Clark
781-444-6100, x629
[e-mail]
http://www.otcfn.com/svxa


SOURCE Sovereign Exploration Associates International, Inc.

[Andreito]

mal sehen was dabei rum gekommen ist.

[Andreito]

weis einer wieso es heute knapp -28% runter ging¿?

[UH1d]

Sovereign Exploration Associates International Addresses Overwhelming Response to First Conference Call With Rebroadcast
Thursday February 2, 8:00 am ET

NEWTOWN, Pa., Feb. 2 /PRNewswire-FirstCall/ -- Sovereign Exploration Associates International, Inc. ("Sovereign") (OTC Bulletin Board: SVXA - News) announced today that due to an overwhelming response to the first investor conference call with management on Monday, January 30, 2006, it will make the recording of the call available for the next two weeks, beginning Feb 2 through Feb 18, 2006. Any investor who was unable to log on because of technical difficulties caused by the high demand will be able to listen to the call in its entirety. To access the rebroadcast within the US and Canada, dial 800-642-1687 and enter the conference identification number 4410032. For international callers, dial 706-645-9291 and enter the conference identification number 4410032.

ADVERTISEMENT
During the conference, Sovereign President and Chief Executive Officer Bob Baca and Chief Operating Officer Curt Sprouse discuss the Company`s new business strategy, corporate developments, and ongoing operations.

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. is a business development company undertaking shipwreck exploration and recovery initiatives. The Company focuses on shipwrecks dating from 1500 to 1900 on behalf of museums and private parties interested in commissioning artifact recovery. The Company operates with licenses and finders` rights granted by government authorities and has exclusive access to the largest identified and located grouping of valuable shipwrecks in the world. For more information, visit http://www.sea-int.com.

SAFE HARBOR

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company`s products in the marketplace, competitive factors and other risks detailed in the Company`s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, contact:

At the Company:
Sovereign Exploration
Associates International, Inc.
Jim Cavan
781-246-7512
[e-mail]
http://www.sea-int.com

Investor Relations:
OTC Financial Network
Peter Clark
781-444-6100, x629
[e-mail]
http://www.otcfn.com/svxa

[Andreito]

gibts schon was neues???

[Tippgeber1]

der kursverlauf ist eine einzige katastrophe.

Grüssels
Tippgeber

[Andreito]

hier die letzte news aus 2006



Sovereign Exploration Associates International announces board to be further strengthened by addition of noted Philadelphia attorney, John Barr Esq.

NEWTOWN , PA.-- (BUSINESS WIRE)— January 3, 2006 --Sovereign Exploration Associates International, Inc (OTC BB: SVXA) is pleased to announce the addition of John J. Barr to its Board of Directors. Mr. Barr further strengthens SVXA’s pool of Directors to guide it into further expansion in 2006 and beyond.

John J. Barr is the managing and founding partner of Palmer & Barr, P.C., a regional law firm located in Willow Grove, Pennsylvania. Palmer & Barr, P.C. is an A.V. rated law firm (highest rated) specializing in civil litigation. Mr. Barr has extensive litigation experience and has been trying cases for over twenty (20) years. He was recently recognized by Philadelphia Magazine as a “Super Lawyer” awarded to less than five percent (5%) of practicing attorneys in the five (5) county Philadelphia region.

“John Barr’s extensive corporate experience will provide SVXA with a Board Member who will complement his peers and provide a tremendous understanding of both financial and legal issues” said Robert Baca, CEO of SVXA.

Mr. Barr received his undergraduate degree in Accounting from LaSalle University and his Law Degree from Widener University.

Mr. Barr represents the fifth new member of the SVXA Board of Directors. SVXA intends to add a sixth Board Member over the next few weeks. Once the new Board is set, SVXA will establish a separate Board of Advisors composed of top industry experts. “The Advisory Board will provide SVXA management access to top level science, content development and commoditization resources”, said Peter Knollenberg, Chairman of SVXA.

[Andreito]

Recovery Operations on Site Containing Pay Ship Announced

NEWTOWN , PA. - (BUSINESS WIRE) - January 6, 2006 - Sovereign Exploration Associates International, Inc. (OTCBB: SVXA), announces plans to begin operations on site CBNS-3 containing the wreck of a British grand square-rigger pay ship, the H.M.S. Tilbury believed to be one of twenty ships in the British fleet sent to Halifax in 1757 to attack the fortress of Louisburg which was fortified by the French.

Under an official Treasure Trove licensing agreement with the Nova Scotia provincial government, Artifact Recovery & Conservation, Inc. (ARC), a portfolio company of SVXA, anticipates surveying the site this spring and, weather permitting, initiate recovery operations.

While anchored off the coast of Cape Breton in September 1757, the fleet encountered winds of hurricane level. The British ship believed to have been a pay ship and carrying in excess of 500,000 gold and silver coins when it went down at St. Esprit , Nova Scotia . Of the twenty ships, nine arrived in Halifax with masts standing, two sank, and the remainder of the fleet returned to England via Newfoundland .

A major focus of the exploration will be the large cargo of Spanish Pillar Dollars known to be on the pay ship. These coins were the principal coins found and used as currency in the Colonial years of America .

Robert Baca, CEO of SVXA, commented on the historical importance of the wreck site saying, “The H.M.S. Tilbury is another example of SVXA’s valuable inventory of shipwrecks. We are very optimistic about the opportunities this shipwreck represents to our recovery operations in 2006.”

Further information and operational updates will be posted on the Company’s website: www.sea-int.com.

About Sovereign Exploration Associates International, Inc.
Sovereign Exploration Associates International, Inc. (OTCBB:SVXA) is a Business Development Company under the Investment Company Act of 1940 undertaking shipwreck exploration and recovery initiatives. Pursuant to Section 13 or 15(d) of the Security Exchange Act of 1934, SVXA has filed Form 8-K.

[Andreito]

Sovereign Exploration Associates International, Inc. Announces Reverse Stock Split to Improve Value by Positioning for Long Term Growth and Investor Value

NEWTOWN, PA.--(BUSINESS WIRE)—January 16, 2006 - Sovereign Exploration Associates International, Inc. (OTCBB: SVXA) announces a one-for-one, one thousand reverse (1:1000) stock split effective 9:00AM Eastern time, January 17, 2006. Effective January 17, 2006, Sovereign Exploration Associates International, Inc.’s trading symbol will be changed to OTCBB: SVXA.

“This reverse stock split represents the next milestone in SVXA’s overall plan to achieve maximum shareholder value,” stated Robert Baca, CEO of SVXA. “On October 17, 2005, the Company completed a stock exchange agreement with CALI Holdings to position Sovereign Exploration Associates International, Inc. as a publicly traded company. The agreement requires that management execute a reverse split as part of the term of that agreement as stated in the 8-K dated October 17, 2005. We believe the new share price after the reverse split will improve the Company’s position in the financial markets, and enhance its ability to attract individual and institutional investors to fund the expansion of the Company’s multiple recovery operations.”

Management has analyzed similar companies in the market, and feels the reverse split will allow for a more accurate market value of SVXA. Monies invested in SVXA will be primarily spent on recovering lost cargo, not searching for it. When compared to the market capitalization of comparable companies searching for potential wreck sites, management recognizes that SVXA has tremendous unrealized upside value, having already located 12 valuable ship wreck sites.

Curtis Sprouse, COO, further states “The reverse stock split paves the way for our Company to ultimately apply for listing on the American Stock Exchange (AMEX), and which will allow management to pursue more favorable funding mechanisms.”

Each 1000 shares of SVXA common stock outstanding and held by each stockholder of the Company immediately prior to the effective time shall be reclassified and combined into one share of common stock automatically and without action by the holder. No fractional shares of common stock shall be issued as a result of such reclassification. In lieu of any fractional shares to which the stockholder would otherwise be entitled, the Company shall round up to the next highest share number. Following the reverse spit, the number of shares of Common Stock issued and outstanding will decrease to approximately 26,200,000.

[Andreito]

Sovereign Exploration Associates International, Inc. Forms Media Partnership With Principle Pictures, Inc. to Reveal Stories of SHIPWRECKS THAT CHANGED THE WORLD
Tuesday January 17, 11:09 am ET

NEWTOWN, Pa.--(BUSINESS WIRE)--Jan. 17, 2006--Sovereign Exploration Associates International, Inc. (OTCBB: SVXA) announces a media partnership with Principle Pictures, Inc.

The world`s ocean floors are blanketed with the wreckage of lost ships. Their names languish in the dusty ledgers of long-vanished imperial navies and extinct enterprises that have been obscured over time. The historical impact of their loss has never been revealed. Until now.

This media partnership plans the creation of at least five television documentaries and a series of companion books, educational tools, and interactive Web sites. Sovereign Exploration Associates International`s large catalogue of historically significant marine archaeological and recovery projects will provide an exciting new point of view on the history of North American and European development. All of these projects involve historic stories Principle Pictures is exceptionally qualified to tell. Consider this:

What if Le Chameau, the pride of the French Navy, had not sunk on the night of August, 27, 1725? It was a devastating disaster in terms of souls and monies lost, with all of Le Chameau`s 316 passengers and vast amounts of gold and silver to support the French Colonies in North America going to the bottom with her. Yet Le Chameau`s sinking may also have dramatically altered the balance of power between England and France in North America. A generation of French leaders went down with that ship. Is it possible we might all be speaking French today had fate not intervened?

The tale of Le Chameau is riveting. It is history, unjustly forgotten. It is adventure, awaiting pursuit. It is just one of the exciting stories of SHIPWRECKS THAT CHANGED THE WORLD, a media enterprise between Sovereign Exploration Associates International, Inc. and Principle Pictures, Inc.

"This is about the presentation and preservation of history," says Beth Murphy, President of Principle Pictures. "We`re excited about working with Sovereign Exploration Associates International and its portfolio companies precisely because of their commitment to bringing greater historic and scientific understanding to some of the most extraordinary shipwrecks of all time--shipwrecks whose fascinating, forgotten stories are ready to be rescued from the deep."

"We see this agreement as a critical step in continuing to tell the history and significance of these vessels and sites," says Bob Baca, President and CEO of Sovereign Exploration Associates International, Inc. "The addition to our team of Principle Pictures, with its reputation for professionalism and quality, fits well with Sovereign`s own dedication to telling these important stories."

About the companies:

Sovereign Exploration Associates International, Inc. (SVXA) (Newtown, PA) combines sound business practices with a decade`s worth of expertise in marine exploration. Portfolio companies of SVXA are currently undertaking the exploration of sites containing vessels from the 1700`s and 1800`s. (www.sea-int.com)

Principle Pictures, Inc. (Plymouth, MA) creates cutting-edge documentaries. A forward-thinking company committed to tackling serious, issue-oriented programming with world-wide appeal, Principle Pictures believes in the power of reality-based programming to educate, inform and inspire viewers. Principle Pictures` programming has aired on numerous networks in the United States and around the world, including The History Channel, Discovery, Discovery Health, Lifetime, PBS, Canal Vie (Canada), IBA (Israel) and NHK (Japan). Director Beth Murphy has twice been nominated for Emmys and most recently is the winner of the Gracie Allen Award from American Women in Radio and Television. (www.principlepictures.com)

About Sovereign Exploration Associates International, Inc.
Sovereign Exploration Associates International, Inc. (OTCBB:SVXA - News) is a Business Development Company under the Investment Company Act of 1940 undertaking shipwreck exploration and recovery initiatives. Pursuant to Section 13 or 15(d) of the Security Exchange Act of 1934, SVXA has filed Form 8-K.

[Tippgeber1]

[posting]20.090.243 von Andreito am 07.02.06 22:34:36[/posting]was soll das? die meldungen sind uralt.

[Andreito]

hab ich doch vorher geschrieben das es die meldungen aus 2006 sind. bis jetzt kam da ja noch nichts neues.....

[Tippgeber1]

[posting]20.092.501 von Andreito am 08.02.06 08:55:54[/posting]
naja, versetze dich mal in die leute, die auf was neues
warten und du bringst dann wieder was altes. das ist
nicht gerade nett und aufbauend.

Grüssels
Tippgebeer1

[Andreito]

bin genauso am warten wie ihr auch und hoffe das es bald mal wieder was positives zu berichten gibt!

[Andreito]

unglaubliches volumen heute!!!!


100 stueck!

das ist zum heulen
!!!!!!

[Andreito]

falls es einen interessiert unter

http://www.ceocast.com

gibt es ein interwiev vom 18.01.2006

was haltet ihr davon???


man muss sich aber anmeldung, kostenlos!

[calibra21]

Wir brauchen News. Sonst geht hier erstmal nichts.

[PizPalue]

[posting]20.167.232 von calibra21 am 12.02.06 15:59:51[/posting]Das denke ich auch. Es muß ein Erfolg her.

[Andreito]

das sieht ja gar nicht gut aus!

0.40

[Andreito]

hab da mal eine frage an euch, weis einer bis wann sie die zahlen vorlegen muessen??? bis jetzt habe ich noch nichts dreueber gelesen geschweigeden gehoert.

wuerde mich freuen wenn mir da einer weiterhelfen koennte!

gruesse!

[Andreito]

naja immerhin 45% plus auf 0.58 und das mit mini umsaetzen da sieht man mal wie schnell es aufwaerts gehen kann!

[Andreito]

das war doch ein gutes kursvolumen!

34.900 steucke

kurs 0.64

[Andreito]

die heutigen news, das forum scheint ja schon fast tot zu sein. was ist mit euch los???

Sovereign Exploration Associates International, Inc. Posts 2Q Loss

NEWTOWN, Pa., Feb 23, 2006 /PRNewswire-FirstCall via COMTEX/ --
Sovereign Exploration Associates International, Inc. (OTC Bulletin Board: SVXA) announced today that it posted a loss in the second quarter of $2,437,634 or $1.11 per share, compared with a loss of $272,154 or $3.06 per share for the same period in 2004.

Robert D. Baca, the Company`s President/CEO attributed approximately $2,220,000 of the loss to the accounting treatment of the divesture of company assets prior to, and as a requirement of, the Exchange Agreement which took effect October 17, 2005 at which point the current management team and Board of Directors took control of the Company. Taking into account this one time treatment of this transaction would reduce the loss for the quarter ended December 31, 2005 to approximately $215,000.

Baca went on to say, "We are pleased that the transition of the Company is now materially complete and management can focus on the business plan."

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. (OTC Bulletin Board: SVXA) is a Business Development Company under the Investment Company Act of 1940, undertaking shipwreck exploration and recovery initiatives.

SAFE HARBOR

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company`s products in the marketplace, competitive factors and other risks detailed in the Company`s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

SOURCE Sovereign Exploration Associates International, Inc.

Curtis R. Sprouse, COO of Sovereign Exploration Associates International, Inc., [phone], or fax [phone], or [e-mail]; Investor Relations: Peter Clark of OTC Financial Network, [phone], x629, or [e-mail]

http://www.prnewswire.com

Copyright (C) 2006 PR Newswire. All rights reserved.

[Andreito]

gibts keine meinungen???

[Andreito]

hier gibts wohl wirklich keinen meinungen zu gar nichts! mmmh was ist mit euch los???

[Andreito]

hier die news von gestern


OTC Financial Network Issues Strongly Favorable Report on Sovereign Exploration Associates International, Inc.

NEWTOWN, Pa., Feb 27, 2006 /PRNewswire-FirstCall via COMTEX/ --
Sovereign Exploration Associates International, Inc. ("Sovereign") (OTC Bulletin Boards: SVXA), a business development company undertaking shipwreck exploration and recovery initiatives, announced today that OTC Financial Network, a division of National Financial Communications Corp., has issued a favorable InvestorFacts report on the Company. The report includes a profile of the Company`s innovative business model, experienced management team and investment considerations. Interested parties can view the report online at http://www.otcfn.com/svxa/report.html" target="_blank" rel="nofollow ugc noopener">http://www.otcfn.com/svxa/report.html or call 781-444-6100 ext. 629 for reprints.

Geoffrey Eiten, publisher of OTC InvestorFacts, stated, "Sovereign undertakes shipwreck exploration and recovery initiatives for museums and private parties interested in commissioning artifact recovery. The Company`s business model maximizes revenues while controlling costs. The Company estimates the average ship would yield $25 million to $100 million in net revenue from the commercialization of artifacts. Additionally, their work has inherent potential for media tie-in revenue drivers that include documentary films, books, and videos. With solid prospects for growth, Sovereign represents an exciting opportunity for near and long term profits in the exciting and historically important shipwreck artifact recovery industry."

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. is a Business Development Company undertaking shipwreck exploration and recovery initiatives with a focus on shipwrecks dating from 1500 to 1900 for museums and private parties interested in commissioning artifact recovery. The Company operates with licenses and finders` rights granted by government authorities and has exclusive access to the largest identified and located grouping of valuable shipwrecks in the world. For more information, visit http://www.sea-int.com.

About OTC Financial Network

Since 1992, OTC Financial Network has provided consulting services and customized, proactive investor relations campaigns to more than 500 small/micro-cap public companies. OTC Financial Network designs and implements results-driven direct mail, electronic marketing, shareholder communications and other programs to increase market awareness on behalf of its clients.

A partnership with OTC Financial Network can improve a company`s shareholder communications channel, facilitate capital formation opportunities, create an expanding and diversified base of institutional and retail shareholders, and garner financial media coverage. OTC Financial Network is a division of National Financial Communications Corp. based in Needham, MA. For more information visit http://www.otcfn.com and http://www.nationalfc.com.

Disclaimer: OTC Financial Network serves as special advisor to the featured Company and has received fees for services including a monthly fee of five thousand dollars plus the right to purchase up to two-hundred thousand shares of Sovereign`s Common Stock at exercise price of i) one dollar and twenty five cents per share for one-hundred thousand shares` and ii) two dollars per share for one hundred thousand shares. This is not an offer to buy or sell securities. Information or opinions in this release are presented solely for informative purposes, and are not intended nor should they be construed as investment advice. Additional compensation information and a full disclaimer can be found online at http://www.otcfn.com/svxa/disclaimer.html.

Safe Harbor: The statements made in this release constitute "forward- looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company`s products in the marketplace, competitive factors and other risks detailed in the Company`s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, contact: At the Company: Sovereign Exploration Associates International, Inc. Curtis Sprouse 781-246-7512 [e-mail] http://www.sea-int.com Investor Relations: OTC Financial Network Peter Clark 781-444-6100, x629 [e-mail] http://www.otcfn.com/svxa

[Andreito]

weis einer wieso der spread so hoch ist? das sind rund 50%

[Andreito]

tag fuer tag steigt das volumes, heute bie 17.000 umgerechnet waeren das vor dem split 170.000.000 steuck

[Andreito]

noch einer hier? der thread war fuer ein paar tagen nicht aufrufbar!

in den letzten tagen gings an der 1 euro grenze! ob nochmehr drin steckt? lassen wir uns ueberraschen! danke aber nicht das es ein totalverlust wird

[Andreito]

''Business & Beyond'' Show to Feature Sovereign Exploration Associates International, Inc.; Recovering Historical Treasures from Under the Sea

DEERFIELD BEACH, Fla., Mar 24, 2006 (BUSINESS WIRE) --
Platinum Television Group is pleased to announce the selection of Sovereign Exploration Associates, Inc. (SVXA) for its innovative, educational television series, Business & Beyond. The company will be featured in a segment on "Artifacts of Historical and Financial Value" in the 2006 Series to be aired nationally on Bloomberg news.

Sovereign Exploration Associates International, Inc., (SVXA), based in Newtown, PA, is a business development company that invests in companies conducting shipwreck exploration and recovery initiatives. SVXA has portfolio companies focused on shipwrecks dating from 1500 to 1900 and operates with licenses and finders' rights granted by government authorities. SVXA has identified portfolio companies that clearly differentiate themselves from other players in the business sector in several important areas. It has portfolio companies with exclusive access to what appears to be the largest identified grouping of valuable shipwrecks in the world. Bloomberg's research indicates that the ship inventory of SVXA's portfolio companies consists of many historically important vessels that will generate revenue from intellectual property to include but not be limited to books, movies and tours. SVXA's portfolio companies have already signed a five film documentary agreement with Principle Pictures to begin filming this summer. The series will be called "Shipwrecks that Changed the World.

SVXA's operating companies are required to develop cost effective models for conducting site recovery. With its portfolio companies focused on shallow water, inshore projects that produce a high artifact yield to recovery cost ratios, SVXA has been instrumental developing a more diversified, predictable business model for each of its portfolio companies.

The firm is dedicated to changing the image and professionalism of maritime artifact exploration, discovery, and recovery. SVXA's operating companies are well structured, relying on a foundation going back more than 25 years to a core team of explorers, divers, historians and marine archaeologists. Their vision has grown over time to include a variety of business roles as well.

SVXA's portfolio companies have recovered many coins and artifacts dating back to the 1600s and 1700s. These treasures have been conserved by leading industry scientist and can now reveal some of the story behind the ships they were carried on. Current projects include the recovery of Le Chameau, a French ship lost in 1725 off the rocks of Cape Breton, Nova Scotia that was carrying hundreds of thousands of gold and silver coins, religious pieces, ornate artillery and other artifacts associated with the prominent and wealthy passengers who perished with the vessel.

Artifact Recovery & Conservation, Inc. (ARC), a SVXA operating company, is working on the recovery of HMS Fantome, one vessel in a convoy of "plunder ships", which evidence indicates was carrying looted treasures from Washington, DC landmarks after the British invasion in 1812. The HMS Tilbury is another ship likely to have been carrying an estimated half-million silver Spanish pillar dollars before it was lost in a hurricane in 1757. The partnership with Principle Pictures, a documentary film company, will provide SVXA's operating companies with a well respected channel to reveal the historical impact of these lost ships through a series of television documentaries, books, educational tools, and an interactive website.

Led by an experienced team, SVXA represents a high value investment opportunity to individuals seeking to participate in the recovery and preservation of historical finds that will produce significant intellectual property opportunities. SVXA is now moving forward to focus on the development of and investment into companies that provide a compelling business opportunity in the area of maritime exploration and artifact recovery.

For more information, please visit www.sea-int.com.

Platinum Television Group is an industry leader in consumer lifestyle educational shows.

SOURCE: Platinum Television Group

Platinum Television Group/New Line Media Solutions Sandi Newmark, 800-597-1186

Copyright Business Wire 2006

[Andreito]

volumen heute bei 36.500

sk 0,75!

[Andreito]

ist ein interview vom 31.03.2006


Sovereign Exploration Associates International COO Featured in Exclusive Interview With WallSt.net

NEW YORK, April 3, 2006 /PRNewswire via COMTEX/ --
On March 31, Curt Sprouse, Chief Operating Officer for Sovereign Exploration Associates International, Inc. (OTC Bulletin Board: SVXA) updated the investment community in an all-new, exclusive interview with www.wallst.net . Topics covered in the interview include an overview of the Company and the markets it serves, recent press releases, current capitalization, upcoming strategic and financial milestones.

To hear the interview in its entirety, visit www.wallst.net , and click on "Interviews/Podcasts." Interviews require free registration, and can be accessed either by locating the respective company's ticker symbol under the appropriate exchange on the left-hand column of the "Interviews/Podcasts" section of the site, or by entering the respective company's ticker symbol in the Search Archive window.

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. (OTC Bulletin Board: SVXA) is a Business Development Company under the Investment Company Act of 1940, undertaking shipwreck exploration and recovery initiatives.

About WallSt.net

www.wallst.net is owned and operated by WallStreet Direct, Inc., a wholly owned subsidiary of Financial Media Group, Inc. The website is a leading provider of financial news, media, tools and community-driven applications for investors. www.wallst.net offers visitors free membership to its in-depth executive interviews, exclusive editorial content, breaking news, and several proprietary applications. In addition to its website, WallStreet Direct organizes investor conferences, publishes a newspaper, and provides multimedia advertising solutions to small and mid-sized publicly traded companies. We are expecting to receive one hundred seventy five dollars from Sovereign Exploration Associates International, Inc. for the dissemination of this press release. For a complete list of our advertisers, and advertising relationships, visit http://www.wallst.net/disclaimer/disclaimer.asp

Contact: Nick Iyer Digital Wall Street, Inc. 1-800-4-WALL-ST

SOURCE WallStreet Direct, Inc.

Nick Iyer of Digital Wall Street, Inc., +1-800-4-WALL-ST

http://www.prnewswire.com

Copyright (C) 2006 PR Newswire. All rights reserved.

[Andreito]

hatte einemail an svxa geschrieben, hier ihre antwort:

Dear Investor,

ARC a SVXA portfolio company will initiate recovery operations of three
Canadian sites in May. Sea Research or continues to move forward on
projects in the US and Spain.

We are preparing to register a Regulation E offering for investors in the
next 30 days. Please monitor our WEB site www.sea-int.com for news on the
portfolio and holding companies. SVXA continues to evaluate new investment
opportunities in the marine salvage market. We will be launching a new WEB
site for the portfolio companies and the Holding company in the next 30
days.


Thanks you for your support!

Best regards,


Curtis R. Sprouse
COO
SVXA

www.sea-int.com

[Saftladen]

[Andreito]

kurs steht bei 0,86 mal sehen wie lange er sich halten kann, von mir aus kanns langsam ueber 1,00 gehen...

[Andreito]

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q/A





(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2005



OR



[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Commission file number 333-229903




Sovereign Exploration Associates International, Inc.

(Name of small business issuer in its charter)






Utah
30-0123229

(State or other jurisdiction of incorporation )
(I.R.S. Employer identification No.)





503 Washington Ave, Suite 2d, Newtown PA 18940

(Address and Zip Code of Principal Executive Offices)



Registrant's Telephone Number: [phone]




(Former Name, Former Address if changed since last report)


Securities registered under Section 12(b) of the Exchange Act:

None



Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value per share

(Title of Class)



Check whether the issuer: (i) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (ii) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]



Indicate by check mark whether the registrant is an accelerated filer (see defined Rule 12b-2 of the Exchange Act). Yes [] No [x]



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



The number of shares of the issuer's common stock, $0.001 par value, outstanding as of May 19, 2006 was 26,203,040.



Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [x] No []


--------------------------------------------------------------------------------





SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q/A

FOR THE FISCAL QUARTER ENDED DECEMBER 31, 2005



TABLE OF CONTENTS





Page No

PART I
FINANCIAL INFORMATION


Item 1.
Financial Statements


Balance Sheets as of December 31, 2005 (Unaudited) and June 30, 2005
3


Statement of Operations (Unaudited) Three and Six Months Ended December 31, 2005 and 2004
5

Schedule of Investments in and Advances to Affiliates (Unaudited): December 31, 2005
8


Statement of Changes in Net Assets (Unaudited): Six Months Ended December 31, 2005 and 2004
9


Statement of Cash Flows (Unaudited): Six Months Ended December 31, 2005 and 2004
10


Notes to Financial Statements
12

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
21

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
38

Item 4.
Control & Procedures
38

PART II
OTHER INFORMATION

Item 1.
Legal Proceedings
39

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
39

Item 3.
Defaults Upon Senior Securities
39

Item 4.
Submission of Matters to a Vote of Security Holders
40

Item 5.
Other Information
40

Item 6.
Exhibits
40



Signatures
41




--------------------------------------------------------------------------------








SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

BALANCE SHEETS

December 31, 2005
June 30, 2005

(unaudited)

Assets
Investments in and advances to affiliates $ 2,661,410 $ 1,777,765
Cash and cash equivalents 25,130 31,034
Accounts receivable 45,000 3,692
Prepaid expenses 1,803 -
Fixed assets, net of accumulated depreciation - 9,658
Notes receivable - 439,732
Other assets - 254,207
Goodwill - 489,000
Security deposit 5,572 5,572

Total assets $ 2,738,915 $ 3,010,660

Liabilities and Shareholders' Equity
Accounts payable and accrued expenses $ 307,883 $ 77,989
Related party note payables 645,100 -
Notes payable 117,078 499,900

Total liabilities 1,070,061 577,889

Commitments and contingencies
Shareholders' equity
Class A - Preferred stock, no par value, 10,000 shares
authorized, none issued and outstanding - -

Class B - Preferred stock, no par value, 10,000 shares
authorized, none issued and outstanding - -

Class C - Convertible Preferred stock, $.001 par value,
10,000 shares issued and outstanding 10,000 10,000
Class D - Preferred stock, no par value, 10,000 shares
authorized, none issued and outstanding - -

Common stock, $.001 par value, 250,000,000,000 shares
authorized and 26,203,040 issued as of December
31, 2005; 2,000,000,000 shares authorized; 53,430
outstanding as of June 30, 2005 26,203 53
Capital in excess of par value 20,072,488 17,316,340
Stock subscription receivable - (4,760)
Accumulated undistributed net income (loss) (17,433,120) (14,231,534)
Net unrealized depreciation of investments (1,006,717) (657,328)

Total shareholders' equity 1,668,854 2,432,771

Total liabilities and shareholders' equity $ 2,738,915 $ 3,010,660

Net asset value per share $ 0.0637 $ 45.53



See accompanying notes

3


--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

Statements of Operations

(unaudited)


Three Months ended
Six Months ended

December 31,
December 31,

2005
2004
2005
2004


OPERATING INCOME:
Interest and dividend income:
Control investments $ 16,768 17,622 $ 40,283 $ 31,315

Total interest and dividend income 16,768 17,622 40,283 31,315

Fee and other income:
Control investments 50,000 423,067 425,000 612,482
Other 7,121 - 52,602 -

Total fee and other income 57,121 423,067 477,602 612,482

Total operating income 73,889 440,689 517,885 643,797

COST OF GOODS SOLD - 131,414 - 196,053

OPERATING EXPENSES
Depreciation and amortization - 17,354 615 33,819
Salaries and wages 156,506 214,426 302,692 362,625
General and administrative 254,407 187,760 355,389 545,931
Interest 311 43,202 1,242 87,526
Professional fees 23,410 58,655 72,156 170,463
Other - - - 15,089

Total operating expenses 434,634 521,397 732,094 1,215,453

OPERATING (LOSS) BEFORE INCOME TAXES (360,745) (212,122) (214,209) (767,709)
Provision for income taxes - (26,544) - (45,264)

NET OPERATING (LOSS) (360,745) (238,666) (214,209) (812,973)





See accompanying notes

4


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

Statements of Operations, continued

(unaudited)


Three Months ended
Six Months ended

December 31,
December 31,

2005
2004
2005
2004


Net realized gain (loss) on investments
Control investments (2,525,274) - (2,620,117) -

Total net realized gain (loss) on investments (2,525,274) - (2,620,117) -

Net unrealized (depreciation) on investments
Portfolio company investments (558,332) (78,071) (716,649) (7,071)

Total net unrealized (depreciation) on investments (558,332) (78,071) (716,649) (7,071)

Total net loss on investments (3,083,606) (78,071) (3,336,766) (7,071)

NET INCOME (LOSS) BEFORE MINORITY INTEREST (3,444,351) (316,737) (3,550,975) (820,044)
Minority interest - (44,583) - (161,152)

Total minority interest - (44,583) (161,152)

NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ (3,444,351) $ (272,154) $ (3,550,975) $ (658,892)

NET OPERATING LOSS PER COMMON SHARE:
Basic $ (0.0168) $ (268.16) $ (0.0197) $ (1,566.42)
Diluted $ (0.0168) $ (268.16) $ (0.0197) $ (1,566.42)

NET LOSS PER COMMON SHARE
Basic $ (0.1608) $ (305.79) $ (0.3270) $ (1,269.54)
Diluted $ (0.1608) $ (305.79) $ (0.3270) $ (1,269.54)

WEIGHTED AVERAGE SHARES OF COMMON
STOCK OUTSTANDING:
Basic 21,416,875 890 10,858,934 519
Diluted 21,416,875 890 10,858,934 519

DIVIDENDS DECLARED PER COMMON SHARE $ - $ - $ - $ -





See accompanying notes

5


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

December 31, 2005

(unaudited)


Fair

Company
Industry
Investment
Cost
Value



Historic Discoveries, Inc. Marine Exploration Common Stock - 100% $ 1,861,410 $ 1,861,410

Sovereign Exploration Associates
International of Spain, Inc. Marine Exploration Common Stock - 100% 800,000 800,000


Gulf Coast Records, LLC Recording Label Member Interest - 49% 173,868 -

Gulf Coast Records, LLC Recording Label Note Receivable
8% Interest; no
repayment terms 832,849 -


Total investments in and advances to affiliates $ 3,668,127 $ 2,661,410












See accompanying notes

6


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)



Six Months Ended

December 31,

2005
2004


Operations:
Net operating (loss) $ (214,209) $ (812,973)
Net realized gain (loss) on investments (2,620,117) -
Net unrealized (depreciation) of investments (716,649) (7,071)

Net decrease in net assets resulting from operations (3,550,975) (820,044)

Shareholder distributions:
Common stock dividends - -

Net decrease in net assets resulting from shareholder distributions - -

Capital share transactions:
Issuance of common stock 2,799,067 1,025,895
Other (12,009) -

Net increase in net assets resulting from capital share transactions 2,787,058 1,025,895

Total increase (decrease) in net assets (763,917) 205,851

Net assets beginning of period 2,432,771 2,585,093

Net assets end of period $ 1,668,854 $ 2,790,944

Net asset value per common share $ 0.0637 $ 1,358.98

Common shares outstanding at end of period 26,203,040 2,054














See accompanying notes

7


--------------------------------------------------------------------------------



SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

STATEMENTS OF CASH FLOWS

Unaudited

Six Months Ended
Six Months Ended

December 31, 2005
December 31, 2004

Operating activities:
Net (decrease) in net assets resulting from operations $ (3,550,975) $ (658,892)
Adjustments to reconcile net (decrease) in net assets resulting
from operations to net cash providing by operating activities:
Net unrealized appreciation (depreciation) on investments (716,649) 7,071
Net realized (gain) loss on investments 2,620,117 -
Deferred income tax - 45,264
Stock issued for services - 88,947
Minority interest - (161,152)
Depreciation and amortization 615 28,645
(Increase) decrease in:
Prepaid expenses (1,803) -
Accounts receivable (41,308) (254,847)
Other assets 254,207 14,002
Goodwill 489,000 -
Increase in accounts payable and accrued expenses 229,893 59,809
Net cash (used in) operating activities (716,903) (831,153)

Investing activities:
Decrease (increase) in notes receivable (71,758) (571,731)
Purchase of property and equipment - (26,438)
Purchase of investments, portfolio companies (2,661,410) (161,674)
Net cash (used in) investing activities (2,733,168) (759,843)

Financing activities:
Proceeds from notes payable to related parties 645,100 845,150
Payment of notes payable to related parties - (65,000)
Payment of notes payable - (222,917)
Issuance of common stock 2,799,067 634,474
Issuance of preferred stock - 10,000
Distributions - (1,296)
Net cash provided by financing activities 3,444,167 1,200,411

Net (decrease) in cash and cash equivalents (5,904) (390,585)

Cash, beginning of period 31,034 470,940

Cash, end of period $ 25,130 $ 80,355








See accompanying notes

8


--------------------------------------------------------------------------------







SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company Activities


Sovereign Exploration Associates International, Inc. (the "Company") was incorporated in the state of Utah in 1980. The company was formerly known as CALI Holdings, Inc. On October 26, 2005 the Company changed its name from CALI Holdings, Inc. to Sovereign Exploration Associates International, Inc.


On January 5, 2004 the Company's shareholders consented to the proposal to allow the Company to adopt business development company ("BDC") status under the Investment Company Act of 1940 ("1940 Act"). A BDC is a specialized type of Investment Company under the 1940 Act. A BDC may primarily be engaged in the business of furnishing capital and managerial expertise to companies that do not have ready access to capital through conventional financial channels; such companies are termed "eligible portfolio companies". The Company as a BDC, may invest in other securities, however such investments may not exceed 30% of the Company's total asset value at the time of such investment. The Company filed its BDC election with the SEC (Form N-54A) on January 13, 2004. The Company provides equity and long-term debt financing to small and medium-sized private companies. The Company's investment objective is to achieve long-term capital appreciation in the value of its investments and to provide current income primarily from interest, dividends and fees paid by its portfolio companies.


Basis of Presentation


Different accounting principles are used in the preparation of financial statements of a business development company under the Investment Company Act of 1940 and therefore, the financial statements is presented using the guidelines outlined under the 1940 Act. By becoming a BDC, the Company has effected a change in accounting principle and no longer consolidates its investments in portfolio companies in accordance with Article 6 of Regulation S-X under the Securities Act of 1933 and Securities Act of 1934 in which a BDC does not consolidate portfolio company investments, including those in which it has a controlling interest. Certain reclassifications have been made to the December 31, 2004 and June 30, 2005 amounts to make them consistent with the December 31, 2005 classifications.


Revenue Recognition


The Company recognizes revenue using the accrual method of accounting. The accrual method provides for a better matching of revenues and expenses. The Company also accrues interest income on loans made to various portfolio companies. The Company accrues the interest on such loans until the portfolio company has the necessary cash flow to repay such interest. If the Company's analysis of the portfolio company's performance indicates that the portfolio company may not have the ability to pay the interest and principal on a loan, the Company will make an allowance provision on that entity and in effect cease recognizing interest income on that loan until all principal has been paid. However, the Company will make exceptions to this policy if the investment is well secured and in the process of collection.


For certain investment companies, the Company provides management services and recognizes an agreed upon fixed monthly fee ("Fee Income") and expenses. Fee Income includes fees for services rendered by the Company to portfolio companies and other third parties such as diligence, structuring, transaction services, management services, and other advisory services. Diligence, structuring, and transaction services fees are generally recognized as income when services are rendered or when the related transactions are completed. Management and other advisory services fees are generally recognized as income as the services are rendered.



--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.


Net (Loss) Per Common Share


Net (Loss) per common share is computed using the weighted average of shares outstanding during the periods presented in accordance with Statement of Financial Accounting Standards No. 128, Earnings Per Share . As discussed further in Notes N and O, any references to amounts per share or weighted average common shares have been restated to reflect reverse splits.


Cash and Cash Equivalents


Cash and cash equivalents include time deposits with original maturities of three months or less.


Fixed Assets


Fixed assets are stated at cost. The cost of equipment is charged against income over their estimated useful lives, using the straight-line method of depreciation. Repairs and maintenance which are considered betterments and do not extend the useful life of equipment are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the asset and accumulated depreciation is removed from the accounts and the resulting profit and loss are reflected in income.


Goodwill and Other Intangibles


The Company records Goodwill in accordance with Statement of Financial Accounting Standards No.142, Goodwill and Other Intangible Assets. Intangible assets such as goodwill are not amortized; instead the Company will review the goodwill not less frequently than annually to see if it has been impaired. If impairment occurs, it will be recorded as an expense in that period. During the three months ending December 31, 2005, goodwill was adjusted to zero pursuant to the calculation of the divesture of the assets in Note J.


NOTE B - INVESTMENTS


Valuation of Investments


The most significant estimate inherent in the preparation of the Company's financial statements is the valuation of its investments and the related unrealized appreciation or depreciation. The Company has engaged independent business valuation experts to value selected portfolio companies, which will have significant activity in the Company's first year operating under the new registrant. The Board of Directors states all other portfolio companies and investments at fair market value, which approximates cost, as determined under a good faith standard. The Company analyzes the investments on a regular basis and records unrealized gains or losses if and when an investment significantly gains or loses market value as determined by a good faith standard.



--------------------------------------------------------------------------------






SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


Valuation of Investments, continued


The Company has investments in three (3) controlled portfolio companies as of December 31, 2005.


Historic Discoveries, Inc.

Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)

Gulf Coast Records, LLC


The portfolio companies consist of Historic Discoveries, Inc.; Artifact Recovery & Conservation, Inc. and Sea Research, Inc. (SR) are wholly owned subsidiaries of Historic Discoveries, Inc.


Artifact Recovery & Conservation, Inc. (ARC)


Artifact Recovery & Conservation, Inc. (ARC) has secured the rights to five (5) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently ARC operates recovery operations on two of the five sites. ARC manages its own dive teams and oversees operations for contracted recovery teams. Management is in the process of preparing time lines and operating plans for the other sites.


Sea Research, Inc. (SR)


Sea Research, Inc. (SR) has secured the rights to seven (7) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently SR is preparing to initiate recovery operations on one of the seven sites and developing timelines for the remainder of the portfolio.


Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)


Sovereign Exploration Associates International of Spain, Inc. (SEAI-SPAIN) has secured the finder's rights to four (4) shipwrecks in Spain with potential historic and intrinsic value, thereby expanding SR's current holdings.


Gulf Coast Records, LLC


Gulf Coast Records, LLC is an independent record label. In 2005, Gulf Coast was developing record artist Glenn Cummings. There has been no activity in the development or promotion of this artist since September 2005. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.


Current management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time, and has reduced the value of the investment and note receivable to zero. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


--------------------------------------------------------------------------------






SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005

NOTE C - FIXED ASSETS

Prior to the effective execution of the Exchange Agreement on October 17, 2005, the fixed assets of the Company consisting of computer and office equipment were sold pursuant to a warranty bill of sale for $10 to KMA Capital Partners Ltd. Inc of Texas.


Depreciation expense for the six months ended December 31, 2005 and 2004 was $615 and $642, respectively.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd., in an effort to determine the effect these transactions had on shareholders and to assess any subsequent actions that may be required by current management.


NOTE D - STOCK ISSUED FOR SERVICES


During the six month ended December 31, 2005, the Company did not issue any stock for services.


During the six months ended December 31, 2004, prior management issued 12,250 shares of the Company's common stock for various professional consulting services. The value assigned to the above shares ($52,250) is based on the stocks' traded market price on or about the date the shares were issued and are included in professional fees.


NOTE E - UNREALIZED GAINS (LOSSES) ON INVESTMENTS


For the six months ended December 31, 2005 and 2004, the Company recognized an unrealized loss on the Company's investments in the amount of $716,649 and $7,071, respectively.


NOTE F- INCOME TAXES


At June 30, 2005, the Company had approximately $6,414,480 of tax net operating loss carryforwards.


Pursuant to the Exchange Agreement dated October 17, 2005, substantial ownership of the Company was transferred and according to Internal Revenue Service Regulations, this is a transaction that will eliminate all of the loss carryforwards for federal income tax purposes starting with fiscal year ending June 30, 2006.


NOTE G - COMMITMENTS

The Company leased office and operating facilities under short-term operating leases located in Orlando, Florida. Pursuant to the Exchange Agreement, the Company terminated its lease agreement for this office space. Subsequent to the Exchange Agreement, the Company maintains shared office space in Pennsylvania and Massachusetts with unrelated companies controlled by certain officers of the Company. There are no formal lease arrangements, however, the Company shares in the cost for these offices on a monthly basis.


Rent expense for the six months ended December 31, 2005 and 2004 was $36,717 and $69,778, respectively.





--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005




NOTE H - NOTES PAYABLE


The following are convertible debentures as of December 31, 2005 that were not converted as part of the Exchange Agreement dated October 17, 2005:



8% convertible debenture to an individual dated May 27, 2005 with an initial principal balance of $21,000 due no later than May 27, 2006; outstanding principal and interest
$ 22,134




5.25% convertible debenture to Golden Gate Investors dated June 29, 2005 with an initial principal balance of $40,000 due no later than June 29, 2008; outstanding principal and interest...(this convertible debenture is currently in dispute)
$ 87,647




8% convertible debenture to an individual dated May 18, 2005 with an initial principal balance of $35,000 due no later than May 18, 2006; outstanding principal and interest


$ 7,297



Total notes payable, current
$117,078




NOTE I - RELATED PARTY NOTES PAYABLE


As of December 31, 2005, $45,100 was owed to certain officers of the Company. These funds were advanced to the Company for cash flow purposes in the form of demand notes bearing no interest.


As of December 31, 2005, $600,000 was owed to Sea Hunt, Inc., a related party to the Company. $300,000 of these funds were advanced to the Company for the payment made on October 17, 2005 pursuant to the terms of the Exchange Agreement, and $300,000 of these funds were to be paid to the prior management and consulting firm on March 31, 2006 for the obligations under the Exchange Agreement dated October 17, 2005. However, the Company is currently in litigation with prior management and the consulting firm regarding their breach of the obligations under the Exchange Agreement dated October 17, 2005.


NOTE J - DIVESTITURE OF ALL PORTOLIO COMPANIES AND OTHER ASSETS


Prior to the effective execution of the Exchange Agreement on October 17, 2005, the Company was required to divest of all of its assets including the investment in all portfolio companies, notes receivable, and all remaining assets except for its investment in, and its note receivable due from Gulf Coast Records, LLC and other assets consisting of prepaid legal fees and security deposits of $7,375. As of December 31, 2005, the investment in and the note receivable due from Gulf Coast has been reduced to zero. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Prior to the effective date of the Exchange Agreement dated October 17, 2005, two separate bills of sales required the following lists of assets of the Company to be sold to KMA Capital, Ltd. of Texas for total consideration of $10 and Kairos Holdings, Inc. for a total consideration of $10:


--------------------------------------------------------------------------------

SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005

Sold to KMA Capital Ltd. Of Texas



Sports Nation, Inc.

Buehler Earth & Waterworks, LLC

Brokerage account of CALI at NevWest

TS&B Financial Services, Inc.

Wellstone Acquisition Corporation

TS&B Gaming & Entertainment Corp.

TSB Ventures, Inc.

Three (3) Dell notebook computers

Furniture and fixtures

Office and computer equipment



Sold to Kairos Holdings, Inc.

Interest in and to investment in KMA Capital Partners Ltd - Nine (9) Limited Partnership Units




KMA Capital, Ltd. is owned in part by Kairos Holdings, Inc.


Prior to the execution of the Exchange Agreement on October 17, 2005, total realized loss on the divestiture of these assets of the Company was $2,525,274. This amount was recorded as et realized loss on investments: control investments. The Company does not have any information regarding the valuation of these companies. Prior management owns a controlling interest in the divested companies.


NEX2U, Inc. is listed as a portfolio company investment as of September 30, 2005; however, it was not included in either of the above referenced bills of sale included in the Exchange Agreement dated October 17, 2005. As of September 30, 2005, this portfolio company had a cost basis of $16,000. The Company has requested documentation from prior management regarding the transfer of NEX2U, Inc. to Kairos Holdings, Inc., and the consideration for such transfer.


On September 21, 2005, prior management sold the Company's 51% interest in Buehler Earth and Waterworks, LLC for $110,000 to Buehler's managing member.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd. and Kairos Holdings, Inc. in an effort to determine the effect these transactions had on shareholders.



NOTE K - EXCHANGE AGREEMENT


At closing of the Exchange Agreement on October 17, 2005, the Company agreed to pay to Charles Giannetto, James E, Jenkins and KMA Capital, in total the sum of Six Hundred Thousand and no/100 dollars ($600,000) in complete termination and release of the Executive Management contracts from Cali to Giannetto and Jenkins and the consulting contract of Cali to KMA. Three Hundred Thousand ($300,000) was paid at closing and the balance of $300,000 was to be paid on or before March 31, 2006. Additionally, two of the former officers of the Company, and a management consulting firm (KMA Capital Partners, Ltd.) were to receive an aggregate 5% of the outstanding shares of the Company, post reverse split.



--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


Pursuant to the Exchange Agreement, the Company received in exchange for total consideration under the Exchange Agreement an interest in one controlled portfolio company: Historic Discoveries, Inc. See Note B for a description of this portfolio company. The consideration for the acquisition of this portfolio company was $1,861,410 in the form of obligations as outlined in Exhibit G of the Exchange Agreement.


Under the requirements of a BDC, management is required to recognize the fair market value of its ownership interest in its portfolio companies. As of December 31, 2005, management's good faith estimate of fair market value of its investment in Historic Discoveries, Inc. equals its cost of $1,861,410 as fully disclosed in the Exchange Agreement.


Prior management received consent for the transaction by the holders of 51% of the outstanding shares as of the date of the Exchange Agreement. Current management is reviewing the consent transaction to determine if all filing requirements were completed by prior management as they relate to the shareholder approval of this transaction.


Senior Security Instruments


Prior to the Exchange Agreement, there is a Revenue Agreement as outlined in Exhibit B of the Exchange Agreement, that requires 20% revenue participation payable to the original owners of the permits from the net recovery of the shipwrecks for the permits that have been assigned to the subsidiaries of the Company's portfolio company, Historic Discoveries, Inc. The 20% revenue participation allows Historic Discoveries, Inc. to defer permit transfer fees and align site permit cost with revenue generation, eliminating the exposure associated with sites that do not produce a material number of artifacts. Historic Discoveries, Inc. is only required to pay the 20% revenue participation when sites produce net revenue. The 20% revenue participation also provides Historic Discoveries, Inc. the right of first refusal on future sites, creating a mechanism for Historic Discoveries, Inc. and its operating companies to build site inventory while deferring the associated cost and reducing financial risk. The Revenue Agreement with the original owners was executed prior to October 17, 2005. The original owners of these permits are the beneficial owners of the controlling interest in the stock received in the Exchange Agreement. Additionally, officers and directors of the Company hold certain executive positions in Historic Discoveries, Inc. and its subsidiaries.


The Fantome project (Fantome Cove Treasure Trove License 150, LLC. a subsidiary of ARC) sold a 2.06% equity interest for a capital investment of $412,000, and the LeChameau project (Interspace Explorations, LLC., a subsidiary of ARC) sold a 26.0% ownership interest and 40% profit participation interest for $390,000.


Management intends to assess it liability under these agreements on a periodic basis. No liability has been recorded for these agreements as of December 31, 2005.


--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


NOTE L - STOCKHOLDERS' EQUITY


As of December 31, 2005, the authorized capital of the Company is 250,000,000,000 shares of common stock (with voting rights); par value $.001.


The Company has authorized 10,000 shares of Class A, no par, preferred stock and has issued and outstanding 10,000 shares as of December 31, 2005 and 3,725,000 shares as of December 31, 2004, as discussed further in Note O. The Class A preferred stock has conversion rights to the Company's common stock (with voting rights) of 4-1.


As of December 31, 2005, the Company has authorized and issued 10,000 shares of convertible Class C, .001 per share, preferred stock. The Class C preferred stock has conversion rights to the Company's common voting stock of 1-1. If at any time or time to time, there is a capital reorganization of the common stock (reverse split, forward split, etc.) the number of Class C preferred stock authorized, issued and outstanding, and the number of shares of common stock into which such Class C preferred shall not be entitled to vote such shares (except as otherwise expressly provided herein or as required by law, voting together with the common stock as a single class), but shall be entitled to notice of any stockholders' meeting in accordance with the Company's bylaws. In lieu of voting rights, the holders of Class C preferred, voting as a class shall be entitled to elect two of the Board of Directors at each meeting.


The investment in Historic Discoveries, Inc. and the investment in Sovereign Exploration Associates of Spain Inc., individually and in total of the two investments, exceed 25% of the total investments, at fair value which approximates cost, reflected in the financial statements presented herein.



As of December 31, 2005, the Company has authorized but not issued 10,000 shares of Class D, no par, preferred stock.

As of the date of this report no preferred shares have been converted to common stock.


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


ISSUANCE OF STOCK


On October 5, 2005, the prior management issued 800,000 shares of restricted common stock (with voting rights) to KMA Capital Partners, Ltd. The Company is in dispute with prior management and related consulting firm, over the subsequent sale of 400,000 shares of this restricted stock. The Company does not possess any documentation, nor does it have any knowledge regarding the consideration for which these shares were issued to KMA Capital Partners, Ltd. The Company has requested documentation for the issuance of these shares and this matter is part of the ongoing litigation with the prior management.


On October 14, 2005, the prior management issued the 556,166,667 common shares (556,166 common shares post reverse split of January 17, 2006) referred to in Note H of the September 30, 2005 Form 10-Q to Sequoia International, Inc. and therefore, has satisfied the Escrow Agreement with Sequoia International, Inc. "Escrow Agreement with Sequoia International, Inc. in which the Company has received $166,850 and will in turn disburse 556,166,667 shares into an escrow account at the discretion of Sequoia."


On October 14, 2005, the prior management issued the 191,700,000 common shares (191,700 common shares post reverse split of January 17, 2006) referred to in Note H of the September 30, 2005 Form 10-Q to an individual and therefore, has satisfied the Escrow Agreement with that individual. "Escrow Agreement with an individual in which the Company has received $95,850 and will in turn disburse 191,700,000 shares into an escrow account at the discretion of the individual"


On December 26, 2005, the Company issued 100,000 shares of common stock for 100% ownership of the stock of Sea Quest, Inc. Sea Quest, Inc. is a wholly owned subsidiary of Sea Research, Inc. Sea Quest, Inc. was owned 50% by a private unrelated individual and 50% owned by Sea Hunt Holding, LLC, which is owned by the Chairman of the Company.



NOTE M - CONCENTRATION OF CREDIT RISK


Financial instruments, which potentially expose the Company to concentrations of credit risk, consist principally of cash, investments in portfolio companies, and notes receivable.


As of December 31, 2005, the Company maintains its cash accounts with financial institutions located in Pennsylvania. Federal Deposit Insurance Corporation (FDIC) guarantees the Company's deposits in financial institutions up to $100,000 per account.


The Company's deposits with financial institutions that exceeded federally insured guarantees amounted to $0 as of December 31, 2005. Historically, the Company has not experienced any losses on its deposits in excess of federally insured guarantees.


As of December 31, 2005, the fair value of the investment in Historic Discoveries, Inc. or $1,861,400 is approximately 69.9% of the total investments, at fair value, of $2,661,410.





--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005




The investment in Historic Discoveries, Inc. and the investment in Sovereign Exploration Associates of Spain Inc., individually and in total of the two investments, exceeds 25% of the total investments, at fair value which approximates cost, reflected in the financial statements presented herein.


As of December 31, 2005, a note receivable in the amount of $832,849 (offset by an allowance to reduce the market value of this note and investment to $0) from Gulf Coast Records is included in Investments in and advances to affiliates in the accompanying balance sheet. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future, while actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment. The Company has recently received information from the management of Gulf Coast Records, LLC that has caused the Company to reduce the fair market value to zero at this time.

NOTE N - REVERSE STOCK SPLITS

On April 4, 2005, the Board of Directors authorized a 100 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 962,151,879 shares were returned to the Company and additional paid in capital was increased by $962,152. All references to the accompanying financial statements to the number of common shares and per share amounts for 2005 and 2004 have been restated to reflect the reverse stock split.


On August 13, 2004, the Board of Directors authorized a 40 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 473,185,733 shares were returned to the Company and additional paid in capital was increased by $473,186. All references in the accompanying financial statements to the number of common shares and per share amounts for 2005 and 2004 have been restated to reflect the reverse stock split.


NOTE O - SUBSEQUENT EVENTS

On January 17, 2006, the Board of Directors authorized a 1,000 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 2,535,359,053 shares were returned to the Company and additional paid in capital was increased by $2,535,359.


Pursuant to the Exchange Agreement, the owners of the stock of Historic Discoveries, Inc . and Sea Hunt, Inc. collectively were to receive 90% of the outstanding shares of the Company, post reverse split.


Two of the former officers of the Company, and a management consulting firm (KMA Capital Partners, Ltd.) collectively were to receive an aggregate 5% of the outstanding shares of the Company, post reverse split.


Due to the activities and transactions of prior management and the consulting firm, the Company did not issue additional shares to prior management and the consulting firm pursuant to the Exchange Agreement, and as a result, the public shareholders now own 8.47% of the outstanding shares. The Company reduced the amount of the shares due to the former officers and the consulting firm, from 5% to 1.53%, taking into account their unauthorized sale of restricted stock and other alleged improper activities which are the subject of the ongoing litigation previously mentioned.



--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005


On January 17, 2006, the Board of Directors cancelled the 10,000 shares of Series A Convertible Preferred Stock, no par value, and the 9,990 shares of Series C Convertible Preferred Stock, no par value. The Series A Preferred shares were partially owned by the prior management (3,750 shares) and indirectly owned by the Company through its portfolio company Historic Discoveries, Inc . (6,250 shares). Pursuant to the Exchange Agreement, the Company had the authority to cancel and retire the shares of prior management. The Company determined that it was in the best interests of the Company's shareholders to cancel and retire all issued and outstanding shares of Series A Convertible Preferred Stock.


All references in the accompanying financial statements to the number of common shares and per share amounts for 2005 and 2004 have been restated to reflect the reverse stock split.


NOTE P: RELATED PARTY TRANSACTONS


As of December 31, 2005, the following is a listing of all related party transactions and/or relationships of the Company:


OFFICERS LOANS


As of December 31, 2005, $45,100 was owed to certain officers of the Company. These funds were advanced to the Company for cash flow purposes in the form of demand notes bearing no interest.


RELATED PARTY NOTE PAYABLE TO SEA HUNT, INC.


As of December 31, 2005, $600,000 was owed to Sea Hunt, Inc., a related party of the Company. $300,000 of these funds were advanced to the Company for the payment made on October 17, 2005 pursuant to the terms of the Exchange Agreement, and $300,000 of these funds were to be paid to the prior management and consulting firm on March 31, 2006 for the obligations under the Exchange Agreement dated October 17, 2005. However, the Company is currently in litigation with prior management and the consulting firm regarding their breach of the obligations under the Exchange Agreement dated October 17, 2005.


SENIOR SECURITY INSTRUMENT - HISTORIC DISCOVERIES, INC.


Prior to the Exchange Agreement, there is a Revenue Agreement as outlined in Exhibit B of the Exchange Agreement, that requires 20% revenue participation payable to the original owners of the permits from the net recovery of the shipwrecks for the permits that have been assigned to the subsidiaries of the Company's portfolio company, Historic Discoveries, Inc. The 20% revenue participation allows Historic Discoveries, Inc. to defer permit transfer fees and align site permit cost with revenue generation, eliminating the exposure associated with sites that do not produce a material number of artifacts. Historic Discoveries, Inc . is only required to pay the 20% revenue participation when sites produce net revenue. The 20% revenue participation also provides Historic Discoveries, Inc. the right of first refusal on future sites, creating a mechanism for Historic Discoveries, Inc. and its operating companies to build site inventory while deferring the associated cost and reducing financial risk. The Revenue Agreement with the original owners was executed prior to October 17, 2005.





--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

December 31, 2005

RELATED PARTY OWNERSHIP OF PERMITS


The original owners of the permits, as identified under Senior Security Instrument - Historic Discoveries, Inc., are the beneficial owners of the controlling interest in the stock of the Company received in the Exchange Agreement dated October 17, 2005.


OFFICERS AND DIRECTORS OF THE COMPANY


Certain officers and directors of the Company hold certain executive positions in Historic Discoveries, Inc., Sea Hunt, Inc. and their respective subsidiaries.


ACQUISITION OF SEA QUEST, INC.


On December 26, 2005, the Company issued 100,000 shares of common stock for 100% ownership of the stock of Sea Quest, Inc. Sea Quest, Inc. is a wholly owned subsidiary of Sea Research, Inc. Sea Quest, Inc. was owned 50% by a private unrelated individual and 50% owned by Sea Hunt Holding, LLC, which is owned by the Chairman of the Company.


STOCK ACQUISTION - EXHANGE AGREEMENT

Pursuant to the Exchange Agreement dated October 17, 2005, Sovereign Marine Explorations, Inc (owner of Artifact Recovery & Conservation, Inc.) and Sea Hunt, Inc. (owner of Sea Research, Inc.) collectively own 90% of the Company's outstanding common stock and 100% of the Company's Class C, Convertible Preferred Stock.


--------------------------------------------------------------------------------


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


The following discussion will assist in the understanding of the Company's financial position and results of operations. The information below should be read in conjunction with the financial statements and the notes thereto, and the other recent Company filings describing the October 17, 2005 definitive agreement with Sovereign Exploration Associates International, Inc. (SEAI).


Among other material items, the October 17, 2005 Exchange Agreement required CALI Holdings, Inc. to divest all its portfolio companies in existence at the time of the execution of the Exchange Agreement, with the sole exception of Gulf Coast Records. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.



The reader of this discussion, the related financial statements and notes thereto, and other recent Company filings should understand that the Portfolio companies, the Senior Management team, and the Board of Directors have all materially changed.




Overview

On January 5, 2004 the Company shareholders approved the proposal to allow the Company to adopt business development company ("BDC") status under the Investment Company Act of 1940 ("1940 Act"). A BDC is a specialized type of Investment Company under the 1940 Act. A BDC may primarily be engaged in the business of furnishing capital and managerial expertise to companies that do not have ready access to capital through conventional financial channels; such companies are termed "eligible portfolio companies".


The Company as a BDC, may invest in other securities, however such investments may not exceed 30% of the Company's total asset value at the time of such investment. The Company filed its BDC election with the SEC (Form N-54A) on January 13, 2004.


The Company is a financial services company providing financing and advisory services to small and medium-sized companies. Effective January 5, 2004 the Company shareholders approved the proposal to allow the Company to convert to a business development company ("BDC") under the Investment Company Act of 1940 ("1940 Act").


The Company invests either directly in the equity of a company through equity shares or through a debt instrument. The Company's debt instruments usually do not have a maturity of more than five years. Interest is either currently paid or deferred.


Investment opportunities are identified for the Company by the management team. Investment proposals may, however, come to the Company from many sources, and may include unsolicited proposals from the public and from referrals from banks, lawyers, accountants and other members of the financial community. The management team brings an extensive network of investment referral relationships.


On October 26, 2005 the Company changed its name from CALI Holdings, Inc. to Sovereign Exploration Associates International, Inc. ("the Company"). In conjunction with the Company's name change and the Exchange Agreement dated October 17, 2005, its principal offices were relocated to 503 Washington Avenue, Suite 2D, Newtown, Pennsylvania and 33 North Avenue, Suite 2B, Wakefield, MA. These offices are equipped with an integrated network of computers for word processing, financial analysis and accounting services. The Company believes its office space is suitable for its needs for the foreseeable future.


The Company provides equity and long-term debt financing to small and medium-sized private companies. The company's investment objective is to achieve long-term capital appreciation in the value of its investments and to provide current income primarily from interest, dividends and fees paid by its portfolio companies.


Portfolio Investments


The Company has investments in three (3) controlled portfolio companies as of December 31, 2005.


Historic Discoveries, Inc.

Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)

Gulf Coast Records, LLC


The portfolio companies consist of Historic Discoveries, Inc., Artifact Recovery & Conservation, Inc. and Sea Research, Inc. (SR) are wholly owned subsidiaries of Historic Discoveries, Inc.


Artifact Recovery & Conservation, Inc. (ARC)


Artifact Recovery & Conservation, Inc. (ARC) has secured the rights to five (5) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently ARC operates recovery operations on two of the five sites. ARC manages its own dive teams and oversees operations for contracted recovery team. Management is in the process of preparing time lines and operating plans for the other sites.


Sea Research, Inc. (SR)


Sea Research, Inc. (SR) has secured the rights to seven (7) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently SR is preparing to initiate recovery operations on one of the seven sites and developing timelines for the remainder of the portfolio.


Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)


Sovereign Exploration Associates International of Spain, Inc. (SEAI-SPAIN) has secured the finder's rights to four (4) shipwrecks in Spain with potential historic and intrinsic value, thereby expanding SR's current holdings.


Gulf Coast Records, LLC


Gulf Coast Records, LLC is an independent record label. In 2005, Gulf Coast was developing record artist Glenn Cummings. There has been no activity in the development or promotion of this artist since September 2005. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.


Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time, and has reduced the value of the investment and note receivable to zero. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Dispositions of Investments


Prior to the effective execution of the Exchange Agreement on October 17, 2005, the Company was required to divest of all of its assets including the investment in all portfolio companies, notes receivable, and all remaining assets except for its investment in, and its note receivable due from Gulf Coast Records, LLC and other assets consisting of prepaid legal fees and security deposits of $7,375. As of December 31, 2005, the investment in and the note receivable due from Gulf Coast was reduced to zero.


Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Prior to the effective date of the Exchange Agreement dated October 17, 2005, two separate bills of sales required the following lists of assets of the Company to be sold to KMA Capital, Ltd. of Texas for total consideration of $10 and Kairos Holdings, Inc. for a total consideration of $10:

Sold to KMA Capital Ltd. Of Texas



Sports Nation, Inc.

Buehler Earth & Waterworks, LLC

Brokerage account of CALI at NevWest

TS&B Financial Services, Inc.

Wellstone Acquisition Corporation

TS&B Gaming & Entertainment Corp.

TSB Ventures, Inc.

Three (3) Dell notebook computers

Furniture and fixtures

Office and computer equipment

Sold to Kairos Holdings, Inc.



Interest in and to investment in KMA Capital Partners Ltd - Nine (9) Limited Partnership Units




KMA Capital, Ltd. is owned in part by Kairos Holdings, Inc.


Total loss on the divestiture of these assets of the Company was $2,620,117; this amount was recorded as aet realized loss on investments: control investments. The Company does not have any information regarding the valuation of these companies. Prior management owns a controlling interest in the divested companies.


NEX2U, Inc. is listed as a portfolio company investment as of September 30, 2005; however, it was not included in either of the above referenced bills of sale included in the Exchange Agreement dated October 17, 2005. As of September 30, 2005 this portfolio company had a cost basis of $16,000. The Company has requested documentation from prior management regarding the transfer of NEX2U, Inc. to Kairos Holdings, Inc., and the consideration for such transfer.


On September 21, 2005, prior management sold the Company's 51% interest in Buehler Earth and Waterworks, LLC for $110,000 to Buehler's managing member.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd. and Kairos Holdings, Inc. in an effort to determine the effect these transactions had on shareholders.


Valuation of Investments


The most significant estimate inherent in the preparation of the Company's financial statements is the valuation of its investments and the related unrealized appreciation or depreciation.


Upon the Company's conversion to a business development company, the Company employed independent business valuation experts to value selected portfolio companies. The Board of Directors determined all other portfolio companies and investments at fair market value, which approximates cost, under a good faith standard. The Company analyzes and values each individual investment on a quarterly basis and records unrealized depreciation for an investment that it believes has become impaired, including where collection of a loan or realization of an equity security is doubtful. Conversely, the Company will record unrealized appreciation if it believes that the underlying portfolio company has appreciated in value.


Investments in Private Companies


The Company provides privately negotiated long-term debt and equity investment capital. The Company provides capital in the form of debt with or without equity features, such as warrants or options, often referred to as mezzanine financing. In certain situations the Company may choose to take a controlling equity position in a company. The Company's private financing is generally used to fund growth, buyouts and acquisitions and bridge financing.


As of the effective date of the Exchange Agreement dated October 17, 2005, the Company's private finance portfolio currently includes investments in a variety of industries including a record company and maritime exploration and excavation services.


The Company funds new investments using cash through the issuance of common stock. The Company intends to reinvest accrued interest, dividends and management fees into its various investments. When the Company acquires a controlling interest in a company, the Company may have the opportunity to acquire the company's equity with its common stock. The issuance of its stock as consideration may provide the Company with the benefit of raising equity without having to access the public markets in an underwritten offering, including the added benefit of the elimination of any underwriting commission.


As a business development company, the Company is required to make significant managerial assistance available to the companies in its investment portfolio. In addition to the interest and dividends received from the Company's private finance investments, the Company will often generate additional fee income for the structuring, due diligence, transaction and management services and guarantees provided to its portfolio companies.


Governmental Regulation


Business Development Company


A business development company is defined and regulated by the 1940 Act. Although the 1940 Act exempts a business development company from registration under the Act, it contains significant limitations on the operations of a business development company.


A business development company must be organized in the United States for the purpose of investing in or lending to primarily private companies and making managerial assistance available to them. A business development company may use capital provided by public shareholders and from other sources to invest in long-term, private investments in businesses. A business development company provides shareholders the ability to retain the liquidity of a publicly traded stock, while sharing in the possible benefits, if any, of investing in primarily privately owned companies. To qualify as a business development company, a company must:


*
Have registered a class of its equity securities or have filed a registration statement with the Securities and Exchange Commission pursuant to Section 12 of the Securities and Exchange Act of 1934;



*
Operate for the purpose of investing in securities of certain types of portfolio companies, namely emerging companies and businesses suffering or just recovering from financial distress;



*
Extend significant managerial assistance to such portfolio companies and;



*
Have a majority of "disinterested" directors (as defined in the 1940 Act).



Generally, a business development company must be primarily engaged in the business of furnishing capital and providing managerial expertise to companies that do not have ready access to capital through conventional financial channels. An eligible portfolio company is generally a domestic company that is not an investment company (other than a small business investment company wholly owned by a business development company), and that:


*
Does not have a class of securities registered on an exchange or included in the Federal Reserve Board's over-the-counter margin list; or



*
Is actively controlled by a business development company and has an affiliate of a business development company on its board of directors; or



*
Meets such other criteria as may be established by the Securities and Exchange Commission.



Control under the 1940 Act is presumed to exist where a business development Company beneficially owns more than 25% of the outstanding voting securities of the portfolio company.


The 1940 Act prohibits or restricts companies subject to the 1940 Act from investing in certain types of companies such as brokerage firms, insurance companies, investment banking firms and investment companies.


As a business development company, the Company may not acquire any asset other t

[Andreito]

http://freerealtime.brand.edgar-online.com/fetchFilingFrames…

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q





(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006



OR



[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Commission file number 333-229903




Sovereign Exploration Associates International, Inc.

(Name of small business issuer in its charter)






Utah
30-0123229

(State or other jurisdiction of incorporation )
(I.R.S. Employer identification No.)





503 Washington Ave, Suite 2d, Newtown PA 18940

(Address and Zip Code of Principal Executive Offices)



Registrant's Telephone Number: (781) 246- 7512




(Former Name, Former Address if changed since last report)


Securities registered under Section 12(b) of the Exchange Act:

None



Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value per share

(Title of Class)



Check whether the issuer: (i) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (ii) has been subject to such filing requirements for the past 90 days. Yes x No []



Indicate by check mark whether the registrant is an accelerated filer (see defined Rule 12b-2 of the Exchange Act). Yes [] No x



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



The number of shares of the issuer's common stock, $0.001 par value, outstanding as of May 22, 2006 was 26,203,040.



Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x No []


--------------------------------------------------------------------------------

SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE FISCAL QUARTER ENDED MARCH 31, 2006



TABLE OF CONTENTS





Page No

PART I
FINANCIAL INFORMATION


Item 1.
Financial Statements


Balance Sheets as of March 31, 2006 (Unaudited) and June 30, 2005
3


Statement of Operations (Unaudited) Three and Nine Months Ended March 31, 2006 and 2005
4

Schedule of Investments in and Advances to Affiliates (Unaudited): March 31, 2006
6


Statement of Changes in Net Assets (Unaudited): Nine Months Ended March 31, 2006 and 2005
7


Statement of Cash Flows (Unaudited): Nine Months Ended March 31, 2006 and 2005
8


Notes to Financial Statements
9

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
20

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
34

Item 4.
Control & Procedures
34

PART II
OTHER INFORMATION

Item 1.
Legal Proceedings
35

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
35

Item 3.
Defaults Upon Senior Securities
35

Item 4.
Submission of Matters to a Vote of Security Holders
36

Item 5.
Other Information
37

Item 6.
Exhibits
37



Signatures
38




--------------------------------------------------------------------------------





SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

BALANCE SHEETS



March 31, 2006
June 30, 2005

(unaudited)

Assets
Investments in and advances to affiliates $ 2,707,070
$ 1,777,765

Cash and cash equivalents 14,376
31,034

Accounts receivable 90,000
3,692

Prepaid expenses 1,803
-

Fixed assets, net of accumulated depreciation -
9,658

Notes receivable -
439,732

Other assets -
254,207

Goodwill -
489,000

Security deposit 5,572
5,572


Total assets $ 2,818,821
$ 3,010,660


Liabilities and Shareholders' Equity
Accounts payable and accrued expenses $ 610,977
$ 77,989

Related party note payables 792,155
-

Notes payable 119,435
499,900


Total liabilities 1,522,567
577,889


Commitments and contingencies
Shareholders' equity
Class A - Preferred stock, no par value, 10,000 shares authorized, none issued and outstanding -
-

Class B - Preferred stock, no par value, 10,000 shares authorized, none issued and outstanding -
-

Class C - Convertible Preferred stock, $.001 par value, 10,000 shares issued and outstanding 10,000
10,000

Class D - Preferred stock, no par value, 10,000 shares authorized, none issued and outstanding -
-

Common stock, $.001 par value, 250,000,000,000 shares authorized and
26,203,040 issued as of March 31, 2006 ;

2,000,000,000 shares authorized; 53,430 outstanding as of June 30, 2005
26,203
53

Capital in excess of par value 20,322,917
17,316,340

Stock subscription receivable -
(4,760)

Accumulated undistributed net income (loss) (18,056,149)
(14,231,534)

Net unrealized depreciation of investments (1,006,717)
(657,328)


Total shareholders' equity 1,296,254
2,432,771



Total liabilities and shareholders' equity $ 2,818,821
$ 3,010,660



Net asset value per share $ 0.0495
$ 45.53





See accompanying notes


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

Statements of Operations

(unaudited)


Three Months ended
Nine Months ended

March 31,
March 31,

2006
2005
2006
2005


OPERATING INCOME:
Interest and dividend income:
Control investments $ -
19,835
$ 40,283
$ 51,142


Total interest and dividend income -
19,835
40,283
51,142


Fee and other income:
Control investments 45,000
57,861
470,000
147,861

Other -
-
52,602
-


Total fee and other income 45,000
57,861
522,602
147,861


Total operating income 45,000
77,696
562,885
199,003


COST OF GOODS SOLD -
10,000
-
31,152


OPERATING EXPENSES
Depreciation and amortization -
746
615
2,165

Salaries and wages 170,862
197,508
473,554
560,133

General and administrative 97,367
66,245
407,096
174,208

Interest 22,580
13,958
3,599
52,747

Professional fees 93,714
112,431
165,870
286,020

Other -
-
-
9,218


Total operating expenses 384,523
390,888
1,050,734
1,084,491


OPERATING (LOSS) BEFORE
INCOME TAXES (339,523)
(323,192)
(487,849)
(916,640)

Provision for income taxes -
(181,900)
-
(227,164)


NET OPERATING (LOSS) $ (339,523)
$ (505,092)
$ (487,849)
$ (1,143,804)



Continued,


See accompanying notes


--------------------------------------------------------------------------------
SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

Statements of Operations, continued

(unaudited)


Three Months ended
Nine Months ended

March 31,
March 31,

2006
2005
2006
2005


Net realized gain (loss) on investments
Control investments -
-
(2,620,117)
-


Total net realized gain (loss) on investments -
-
(2,620,117)
-


Net unrealized (depreciation) on investments
Portfolio company investments -
(527,928)
(716,649)
(535,000)


Total net unrealized (depreciation) on investments -
(527,928)
(716,649)
(535,000)


Total net loss on investments -
(527,928)
(3,336,766)
(535,000)


NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ (339,523)
$(1,033,020)
$ (3,824,615)
$ (1,678,804)


NET OPERATING LOSS PER COMMON SHARE:
Basic $ (0.0146)
$ (128.42)
$ (0.0307)
$ (579.19)

Diluted $ (0.0146)
$ (128.42)
$ (0.0307)
$ (579.19)


NET LOSS PER COMMON SHARE
Basic $ (0.0146)
$ (262.64)
$ (0.2406)
$ (850.09)

Diluted $ (0.0146)
$ (262.64)
$ (0.2406)
$ (850.09)


WEIGHTED AVERAGE SHARES OF COMMON
STOCK OUTSTANDING:
Basic 23,203,040
3,933
15,898,969
1,975

Diluted 23,203,040
3,933
15,898,969
1,975


DIVIDENDS DECLARED PER COMMON SHARE $ -
$ -
$ -
$ -



See accompanying notes


--------------------------------------------------------------------------------



SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

SCHEDULE OF INVESTMENTS IN AND ADVANCES TO AFFILIATES

March 31, 2006

(unaudited)


Fair

Company
Industry
Investment
Cost
Value




Historic Discoveries, Inc. Marine Exploration Common Stock - 100% $1,873,010
$1,873,010



Sovereign Exploration Associates
International of Spain, Inc. Marine Exploration Common Stock - 100% 834,060
834,060



Gulf Coast Records, LLC Recording Label Member Interest - 49% 173,868
-


Gulf Coast Records, LLC Recording Label Note Receivable
8% Interest; no
repayment terms 832,849
-



Total investments in and advances to affiliates $3,713,787
$2,707,070







See accompanying notes


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)



Nine Months Ended

March 31,

2006
2005


Operations:
Net operating (loss) $ (487,849)
$ (916,640)

Provision for income taxes -
(227,164)

Net realized gain (loss) on investments (2,620,117)
-

Net unrealized (depreciation) of investments (716,649)
(535,000)


Net decrease in net assets resulting from operations (3,824,615)
(1,678,804)


Shareholder distributions:
Common stock dividends -
-


Net decrease in net assets resulting from shareholder distributions -
-


Capital share transactions:
Issuance of common stock, net 2,654,665
1,096,242

Issuance of preferred stock -
-

Other 33,433
-


Net increase in net assets resulting from capital share transactions 2,688,098
1,096,242


Total increase (decrease) in net assets (1,136,517)
(582,562)


Net assets beginning of period 2,432,771
2,443,945


Net assets end of period $ 1,296,254
$ 1,861,383


Net asset value per common share $ 0.0495
$ 191.53


Common shares outstanding at end of period, (post reverse split) 26,203,040
9,719



See accompanying notes


--------------------------------------------------------------------------------



SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

STATEMENTS OF CASH FLOWS

(unaudited)


Nine Months Ended
Nine Months Ended

March 31, 2006
March 31, 2005

Operating activities:
Net (decrease) in net assets resulting from operations $ (3,824,615) $ (1,678,804)
Adjustments to reconcile net (decrease) in net assets resulting
from operations to net cash providing by operating activities:
Net unrealized appreciation (depreciation) on investments, net 1,278,694 535,000
Net realized gain (loss) on investments (2,620,117) -
Deferred income tax - 227,164
Depreciation and amortization 615 2,165
Bad debt expense - 5,643
(Increase) decrease in:
Prepaid expenses (1,803) -
Accounts receivable (86,308) (10,552)
Stock subscription receivable - (5,769)
Other assets 254,207 -
Deposits - 4,428
Goodwill 489,000 -
Other 62,729
Increase (decrease) in accounts payable
and accrued expenses 535,345 (152,507)
Net cash (used in) operating activities (3,912,253) (1,073,232)

Investing activities:
Decrease in notes receivable 439,732 (636,697)
Loss on disposition of assets 9,043 3,055
Purchase of property and equipment - (9,933)
Purchase of investments, portfolio companies - (158,171)
Net cash provided by (used in) investing activities 448,775 (801,746)

Financing activities:
Proceeds from notes payable to related parties 792,155 856,000
Payment of notes payable to related parties - (65,000)
Payment of notes payable - (394,641)
Issuance of common stock, net 2,654,665 1,086,241
Issuance of preferred stock - 10,000
Net cash provided by financing activities 3,446,820 1,492,600

Net (decrease) in cash and cash equivalents (16,658) (382,378)

Cash, beginning of period 31,034 431,355

Cash, end of period $ 14,376 $ 48,977


See accompanying notes


--------------------------------------------------------------------------------


SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company Activities


Sovereign Exploration Associates International, Inc. (the "Company") was incorporated in the state of Utah in 1980. The company was formerly known as CALI Holdings, Inc. On October 26, 2005 the Company changed its name from CALI Holdings, Inc. to Sovereign Exploration Associates International, Inc.


On January 5, 2004 the Company's shareholders consented to the proposal to allow the Company to adopt business development company ("BDC") status under the Investment Company Act of 1940 ("1940 Act"). A BDC is a specialized type of Investment Company under the 1940 Act. A BDC may primarily be engaged in the business of furnishing capital and managerial expertise to companies that do not have ready access to capital through conventional financial channels; such companies are termed "eligible portfolio companies". The Company as a BDC, may invest in other securities, however such investments may not exceed 30% of the Company's total asset value at the time of such investment. The Company filed its BDC election with the SEC (Form N-54A) on January 13, 2004. The Company provides equity and long-term debt financing to small and medium-sized private companies. The Company's investment objective is to achieve long-term capital appreciation in the value of its investments and to provide current income primarily from interest, dividends and fees paid by its portfolio companies.


Basis of Presentation


Different accounting principles are used in the preparation of financial statements of a business development company under the Investment Company Act of 1940 and therefore, the financial statements is presented using the guidelines outlined under the 1940 Act. By becoming a BDC, the Company has effected a change in accounting principle and no longer consolidates its investments in portfolio companies in accordance with Article 6 of Regulation S-X under the Securities Act of 1933 and Securities Act of 1934 in which a BDC does not consolidate portfolio company investments, including those in which it has a controlling interest. Certain reclassifications have been made to the March 31, 2005 and June 30, 2005 amounts to make them consistent with the March 31, 2006 classifications.


Revenue Recognition


The Company recognizes revenue using the accrual method of accounting. The accrual method provides for a better matching of revenues and expenses. The Company also accrues interest income on loans made to various portfolio companies. The Company accrues the interest on such loans until the portfolio company has the necessary cash flow to repay such interest. If the Company's analysis of the portfolio company's performance indicates that the portfolio company may not have the ability to pay the interest and principal on a loan, the Company will make an allowance provision on that entity and in effect cease recognizing interest income on that loan until all principal has been paid. However, the Company will make exceptions to this policy if the investment is well secured and in the process of collection.


For certain investment companies, the Company provides management services and recognizes an agreed upon fixed monthly fee ("Fee Income") and expenses. Fee Income includes fees for services rendered by the Company to portfolio companies and other third parties such as diligence, structuring, transaction services, management services, and other advisory services. Diligence, structuring, and transaction services fees are generally recognized as income when services are rendered or when the related transactions are completed. Management and other advisory services fees are generally recognized as income as the services are rendered.


--------------------------------------------------------------------------------



SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.


Net (Loss) Per Common Share


Net (Loss) per common share is computed using the weighted average of shares outstanding during the periods presented in accordance with Statement of Financial Accounting Standards No. 128, Earnings Per Share . As discussed further in Notes N and O, any references to amounts per share or weighted average common shares have been restated to reflect reverse splits.


Cash and Cash Equivalents


Cash and cash equivalents include time deposits with original maturities of three months or less.


Fixed Assets


Fixed assets are stated at cost. The cost of equipment is charged against income over their estimated useful lives, using the straight-line method of depreciation. Repairs and maintenance which are considered betterments and do not extend the useful life of equipment are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the asset and accumulated depreciation is removed from the accounts and the resulting profit and loss are reflected in income.


Goodwill and Other Intangibles


The Company records Goodwill in accordance with Statement of Financial Accounting Standards No.142, Goodwill and Other Intangible Assets. Intangible assets such as goodwill are not amortized; instead the Company will review the goodwill not less frequently than annually to see if it has been impaired. If impairment occurs, it will be recorded as an expense in that period. During the nine months ending March 31, 2006, goodwill was adjusted to zero pursuant to the calculation of the divesture of the assets in Note J.


NOTE B - INVESTMENTS


Valuation of Investments


The most significant estimate inherent in the preparation of the Company's financial statements is the valuation of its investments and the related unrealized appreciation or depreciation. The Company has engaged independent business valuation experts to value selected portfolio companies, which will have significant activity in the Company's first year operating under the new registrant. The Board of Directors states all other portfolio companies and investments at fair market value, which approximates cost, as determined under a good faith standard. The Company analyzes the investments on a regular basis and records unrealized gains or losses if and when an investment significantly gains or loses market value as determined by a good faith standard.


--------------------------------------------------------------------------------



SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


Valuation of Investments, continued


The Company has investments in three (3) controlled portfolio companies as of March 31, 2006.


Historic Discoveries, Inc.

Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)

Gulf Coast Records, LLC


The portfolio companies consist of Historic Discoveries, Inc. Artifact Recovery & Conservation, Inc.

and Sea Research, Inc. (SR) are wholly owned subsidiaries of Historic Discoveries, Inc.


Artifact Recovery & Conservation, Inc. (ARC)


Artifact Recovery & Conservation, Inc. (ARC) has secured the rights to five (5) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently ARC operates recovery operations on two of the five sites. ARC manages its own dive teams and oversees operations for contracted recovery teams. Management is in the process of preparing time lines and operating plans for the other sites.


Sea Research, Inc. (SR)


Sea Research, Inc. (SR) has secured the rights to seven (7) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently SR is preparing to initiate recovery operations on one of the seven sites and developing timelines for the remainder of the portfolio.


Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)


Sovereign Exploration Associates International of Spain, Inc. (SEAI-SPAIN) has secured the finder's rights to four (4) shipwrecks in Spain with potential historic and intrinsic value, thereby expanding SR's current holdings.


Gulf Coast Records, LLC


Gulf Coast Records, LLC is an independent record label. In 2005, Gulf Coast was developing record artist Glenn Cummings. There has been no activity in the development or promotion of this artist since September 2005. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.


Current management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time, and has reduced the value of the investment and note receivable to zero. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


--------------------------------------------------------------------------------








SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006

NOTE C - FIXED ASSETS

Prior to the effective execution of the Exchange Agreement on October 17, 2005, the fixed assets of the Company consisting of computer and office equipment were sold pursuant to a warranty bill of sale for $10 to KMA Capital Partners Ltd. Inc of Texas.


Depreciation expense for the nine months ended March 31, 2006 and 2005 was $615 and $2,165, respectively.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd., in an effort to determine the effect these transactions had on shareholders and to assess any subsequent actions that may be required by current management.


NOTE D - STOCK ISSUED FOR SERVICES


During the nine months ended March 31, 2006, the Company did not issue any stock for services.


During the nine months ended March 31, 2005, prior management issued 10,000,000 shares of the Company's common stock for various professional consulting services. The value assigned to the above shares ($88,947) is based on the stocks' traded market price on or about the date the shares were issued and are included in professional fees.


NOTE E - UNREALIZED GAINS (LOSSES) ON INVESTMENTS


For the nine months ended March 31, 2006 and 2005, the Company recognized an unrealized appreciation (depreciation) on the investments of the Company in the amount of $(716,649) and $(535,000) respectively.


NOTE F- INCOME TAXES


At June 30, 2005, the Company had approximately $6,414,480 of tax net operating loss carryforwards.


Pursuant to the Exchange Agreement dated October 17, 2005, substantial ownership of the Company was transferred and according to Internal Revenue Service Regulations, this is a transaction that will eliminate all of the loss carryforwards for federal income tax purposes starting with fiscal year ending June 30, 2006.


NOTE G - COMMITMENTS

The Company leased office and operating facilities under short-term operating leases located in Orlando, Florida. Pursuant to the Exchange Agreement, the Company terminated its lease agreement for this office space. Subsequent to the Exchange Agreement, the Company maintains shared office space in Pennsylvania and Massachusetts with unrelated companies controlled by certain officers of the Company. There are no formal lease arrangements, however, the Company shares in the cost for these offices on a monthly basis.


Rent expense for the nine months ended March 31, 2006 and 2005 was $48,750 and $91,532, respectively.


--------------------------------------------------------------------------------










SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006




NOTE H - NOTES PAYABLE


The following are convertible debentures as of March 31, 2006 were not converted as part of the Exchange Agreement dated October 17, 2005:



8% convertible debenture to an individual dated May 27, 2005 with an initial principal balance of $21,000 due no later than May 27, 2006; outstanding principal and interest.
$ 22,580




5.25% convertible debenture to Golden Gate Investors dated June 29, 2005 with an initial principal balance of $40,000 due no later than June 29, 2008; outstanding principal and interest. (this convertible debenture is currently in dispute)
$ 89,412




8% convertible debenture to an individual dated May 18, 2005 with an initial principal balance of $35,000 due no later than May 18, 2006; outstanding principal and interest.


$ 7,444



Total notes payable, current
$ 119,435




NOTE I - RELATED PARTY NOTES PAYABLE


As of March 31, 2006, $192,155 was owed to certain officers of the Company. These funds were advanced to the Company for cash flow purposes in the form of demand notes bearing no interest.


As of March 31, 2006, $600,000 was owed to Sea Hunt, Inc., a related party to the Company. $300,000 of these funds were advanced to the Company for the payment made on October 17, 2005 pursuant to the terms of the Exchange Agreement, and $300,000 of these funds were to be paid to the prior management and consulting firm on March 31, 2006 for the obligations under the Exchange Agreement dated October 17, 2005. However, the Company is currently in litigation with prior management and the consulting firm regarding their breach of the obligations under the Exchange Agreement dated October 17, 2005.


NOTE J - DIVESTITURE OF ALL PORTOLIO COMPANIES AND OTHER ASSETS


Prior to the effective execution of the Exchange Agreement on October 17, 2005, the Company was required to divest of all of its assets including the investment in all portfolio companies, notes receivable, and all remaining assets except for its investment in, and its note receivable due from Gulf Coast Records, LLC and other assets consisting of prepaid legal fees and security deposits of $7,375. As of March 31, 2006, the investment in and the note receivable due from Gulf Coast has been reduced to zero. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Prior to the effective date of the Exchange Agreement dated October 17, 2005, two separate bills of sales required the following lists of assets of the Company to be sold to KMA Capital, Ltd. of Texas for total consideration of $10 and Kairos Holdings, Inc. for a total consideration of $10:














SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)

NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006

Sold to KMA Capital Ltd. Of Texas





Sports Nation, Inc.



Buehler Earth & Waterworks, LLC



Brokerage account of CALI at NevWest



TS&B Financial Services, Inc.



Wellstone Acquisition Corporation



TS&B Gaming & Entertainment Corp.



TSB Ventures, Inc.



Three (3) Dell notebook computers



Furniture and fixtures



Office and computer equipment







Sold to Kairos Holdings, Inc.





Interest in and to investment in KMA Capital Partners Ltd - Nine (9) Limited Partnership Units










KMA Capital, Ltd. is owned in part by Kairos Holdings, Inc.


Prior to the execution of the Exchange Agreement on October 17, 2005, total realized loss on the divestiture of these assets of the Company was $2,525,274. This amount was recorded as net realized loss on investments: control investments. The Company does not have any information regarding the valuation of these companies. Prior management owns a controlling interest in the divested companies.


NEX2U, Inc. is listed as a portfolio company investment as of September 30, 2005; however, it was not included in either of the above referenced bills of sale included in the Exchange Agreement dated October 17, 2005. As of September 30, 2005, this portfolio company had a cost basis of $16,000. The Company has requested documentation from prior management regarding the transfer of NEX2U, Inc. to Kairos Holdings, Inc., and the consideration for such transfer.


On September 21, 2005, prior management sold the Company's 51% interest in Buehler Earth and Waterworks, LLC for $110,000 to Buehler's managing member.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd. and Kairos Holdings, Inc. in an effort to determine the effect these transactions had on shareholders.



NOTE K - EXCHANGE AGREEMENT


At closing of the Exchange Agreement on October 17, 2005, the Company agreed to pay to Charles Giannetto, James E, Jenkins and KMA Capital, in total the sum of Six Hundred Thousand and no/100 dollars ($600,000) in complete termination and release of the Executive Management contracts from Cali to Giannetto and Jenkins and the consulting contract of Cali to KMA. Three Hundred Thousand ($300,000) was paid at closing and the balance of $300,000 was to be paid on or before March 31, 2006. Additionally, two of the former officers of the Company, and a management consulting firm (KMA Capital Partners, Ltd.) were to receive an aggregate 5% of the outstanding shares of the Company, post reverse split.



--------------------------------------------------------------------------------








SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


Pursuant to the Exchange Agreement, the Company received in exchange for total consideration under the Exchange Agreement an interest in one controlled portfolio company: Historic Discoveries, Inc; See Note B for a description of this portfolio company. The consideration for the acquisition of this portfolio company was $1,861,410 in the form of obligations as outlined in Exhibit G of the Exchange Agreement.


Under the requirements of a BDC, management is required to recognize the fair market value of its ownership interest in its portfolio companies. As of March 31, 2006, management's good faith estimate of fair market value of its investment in Historic Discoveries, Inc. equals its cost of $1,873,010 including advances of $11,600 subsequent to the acquisition.


Prior management received consent for the transaction by the holders of 51% of the outstanding shares as of the date of the Exchange Agreement. Current management is reviewing the consent transaction to determine if all filing requirements were completed by prior management as they relate to the shareholder approval of this transaction.


Senior Security Instruments


Prior to the Exchange Agreement, there is a Revenue Agreement as outlined in Exhibit B of the Exchange Agreement, that requires 20% revenue participation payable to the original owners of the permits from the net recovery of the shipwrecks for the permits that have been assigned to the subsidiaries of the Company's portfolio company, Historic Discoveries, Inc . The 20% revenue participation allows Historic Discoveries, Inc. to defer permit transfer fees and align site permit cost with revenue generation, eliminating the exposure associated with sites that do not produce a material number of artifacts. Historic Discoveries, Inc. is only required to pay the 20% revenue participation when sites produce net revenue. The 20% revenue participation also provides Historic Discoveries, Inc. the right of first refusal on future sites, creating a mechanism for Historic Discoveries, Inc. and its operating companies to build site inventory while deferring the associated cost and reducing financial risk. The Revenue Agreement with the original owners was executed prior to October 17, 2005. The original owners of these permits are the beneficial owners of the controlling interest in the stock received in the Exchange Agreement. Additionally, officers and directors of the Company hold certain executive positions in Historic Discoveries, Inc. and its subsidiaries.


The Fantome project (Fantome Cove Treasure Trove License 150, LLC. a subsidiary of ARC) sold a 2.06% equity interest for a capital investment of $412,000, and the LeChameau project (Interspace Explorations, LLC., a subsidiary of ARC) sold a 26.0% ownership interest and 40% profit participation interest for $390,000.


Management intends to assess the Company's liability under these agreements on a periodic basis. No liability has been recorded for these agreements as of March 31, 2006.


--------------------------------------------------------------------------------





SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


NOTE L - STOCKHOLDERS' EQUITY


As of March 31, 2006, the authorized capital of the Company is 250,000,000,000 shares of common stock (with voting rights); par value $.001.


The Company has authorized 10,000 shares of Class A, no par, preferred stock and has issued and outstanding 10,000 shares as of March 31, 2006 and 3,725,000 shares as of March 31, 2005, as discussed further in Note O. The Class A preferred stock has conversion rights to the Company's common stock (with voting rights) of 4-1.


As of March 31, 2006, the Company has authorized and issued 10,000 shares of convertible Class C, .001 per share, preferred stock. The Class C preferred stock has conversion rights to the Company's common voting stock of 1-1. If at any time or time to time, there is a capital reorganization of the common stock (reverse split, forward split, etc.) the number of Class C preferred stock authorized, issued and outstanding, and the number of shares of common stock into which such Class C preferred shall not be entitled to vote such shares (except as otherwise expressly provided herein or as required by law, voting together with the common stock as a single class), but shall be entitled to notice of any stockholders' meeting in accordance with the Company's bylaws. In lieu of voting rights, the holders of Class C preferred, voting as a class shall be entitled to elect two of the Board of Directors at each meeting.


The investment in Historic Discoveries, Inc. and the investment in Sovereign Exploration Associates of Spain Inc., individually and in total of the two investments, exceed 25% of the total investments, at fair value, reflected in the financial statements presented herein.



As of March 31, 2006, the Company has authorized but not issued 10,000 shares of Class D, no par, preferred stock.

As of the date of this report no preferred shares have been converted to common stock.


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


ISSUANCE OF STOCK


On October 5, 2005, the prior management issued 800,000 shares of restricted common stock (with voting rights) to KMA Capital Partners, Ltd. The Company is in dispute with prior management and related consulting firm, over the subsequent sale of 400,000 shares of this restricted stock. The Company does not possess any documentation, nor does it have any knowledge regarding the consideration for which these shares were issued to KMA Capital Partners, Ltd. The Company has requested documentation for the issuance of these shares and this matter is part of the ongoing litigation with the prior management.


On October 14, 2005, the prior management issued the 556,166,667 common shares (556,166 common shares post reverse split of January 17, 2006) referred to in Note H of the September 30, 2005 Form 10-Q to Sequoia International, Inc. and therefore, has satisfied the Escrow Agreement with Sequoia International, Inc. "Escrow Agreement with Sequoia International, Inc. in which the Company has received $166,850 and will in turn disburse 556,166,667 shares into an escrow account at the discretion of Sequoia."


On October 14, 2005, the prior management issued the 191,700,000 common shares (191,700 common shares post reverse split of January 17, 2006) referred to in Note H of the September 30, 2005 Form 10-Q to an individual and therefore, has satisfied the Escrow Agreement with that individual. "Escrow Agreement with an individual in which the Company has received $95,850 and will in turn disburse 191,700,000 shares into an escrow account at the discretion of the individual"


On December 26, 2005, the Company issued 100,000 shares of common stock for 100% ownership of the stock of Sea Quest, Inc. Sea Quest, Inc. is a wholly owned subsidiary of Sea Research, Inc. Sea Quest, Inc. was owned 50% by a private unrelated individual and 50% owned by Sea Hunt Holding, LLC, which is owned by the Chairman of the Company.


On January 17, 2006, the Board of Directors authorized a 1,000 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 2,535,359,053 shares were returned to the Company and additional paid in capital was increased by $2,535,359.


Pursuant to the Exchange Agreement, the owners of the stock of Historic Discoveries, Inc . and Sea Hunt, Inc. collectively were to receive 90% of the outstanding shares of the Company, post reverse split.


Two of the former officers of the Company, and a management consulting firm (KMA Capital Partners, Ltd.) collectively were to receive an aggregate 5% of the outstanding shares of the Company, post reverse split.


Due to the activities and transactions of prior management and the consulting firm, the Company did not issue additional shares to prior management and the consulting firm pursuant to the Exchange Agreement, and as a result, the public shareholders now own 8.47% of the outstanding shares. The Company reduced the amount of the shares due to the former officers and the consulting firm, from 5% to 1.53%, taking into account their unauthorized sale of restricted stock and other alleged improper activities which are the subject of the ongoing litigation previously mentioned.


--------------------------------------------------------------------------------





SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006




On January 17, 2006, the Board of Directors cancelled the 10,000 shares of Series A Convertible Preferred Stock, no par value, and the 9,990 shares of Series C Convertible Preferred Stock, no par value. The Series A Preferred shares were partially owned by the prior management (3,750 shares) and indirectly owned by the Company through its portfolio company Historic Discoveries, Inc . (6,250 shares). Pursuant to the Exchange Agreement, the Company had the authority to cancel and retire the shares of prior management. The Company determined that it was in the best interests of the Company's shareholders to cancel and retire all issued and outstanding shares of Series A Convertible Preferred Stock.


All references in the accompanying financial statements to the number of common shares and per share amounts for 2006 and 2005 have been restated to reflect the reverse stock split.



NOTE M - CONCENTRATION OF CREDIT RISK


Financial instruments, which potentially expose the Company to concentrations of credit risk, consist principally of cash, investments in portfolio companies, and notes receivable.


As of March 31, 2006, the Company maintains its cash accounts with financial institutions located in Pennsylvania. Federal Deposit Insurance Corporation (FDIC) guarantees the Company's deposits in financial institutions up to $100,000 per account.


The Company's deposits with financial institutions that exceeded federally insured guarantees amounted to $0 as of March 31, 2006. Historically, the Company has not experienced any losses on its deposits in excess of federally insured guarantees.


As of March 31, 2006, the fair value of the investment in Historic Discoveries, Inc . or $1,873,010 is approximately 69.19% of the total investments, at fair value, of $2,707,070.


The investment in Historic Discoveries, Inc. and the investment in Sovereign Exploration Associates of Spain Inc., individually and in total of the two investments, exceeds 25% of the total investments, at fair value which approximates cost, reflected in the financial statements presented herein.


As of March 31, 2006, a note receivable in the amount of $832,849 (offset by an allowance to reduce the market value of this note and investment to zero from Gulf Coast Records is included in Investments in and advances to affiliates in the accompanying balance sheet. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future, while actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment. The Company has recently received information from the management of Gulf Coast Records, LLC that has caused the Company to reduce the fair market value to zero at this time.


--------------------------------------------------------------------------------




SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006

NOTE N - REVERSE STOCK SPLITS

On January 17, 2006, the Board of Directors authorized a 1,000 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 2,535,359,053 shares were returned to the Company and additional paid in capital was increased by $2,535,359. All references to the accompanying financial statements to the number of common shares and per share amounts for 2005 and 2004 have been restated to reflect the reverse stock split.


On April 4, 2005, the Board of Directors authorized a 100 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 962,151,879 shares were returned to the Company and additional paid in capital was increased by $962,152.


On August 13, 2004, the Board of Directors authorized a 40 to 1 reverse stock split of the Company's $.001 par value common stock. As a result of the reverse split, 473,185,733 shares were returned to the Company and additional paid in capital was increased by $473,186. All references in the accompanying financial statements to the number of common shares and per share amounts for 2005 and 2004 have been restated to reflect the reverse stock split.


NOTE O: RELATED PARTY TRANSACTONS


As of March 31, 2006, the following is a listing of all related party transactions and/or relationships of the Company:


OFFICERS LOANS


As of March 31, 2006, $192,155 was owed to certain officers of the Company. These funds were advanced to the Company for cash flow purposes in the form of demand notes bearing no interest.


RELATED PARTY NOTE PAYABLE TO SEA HUNT, INC.


As of March 31, 2006, $600,000 was owed to Sea Hunt, Inc., a related party of the Company. $300,000 of these funds were advanced to the Company for the payment made on October 17, 2005 pursuant to the terms of the Exchange Agreement, and $300,000 of these funds were to be paid to the prior management and consulting firm on March 31, 2006 for the obligations under the Exchange Agreement dated October 17, 2005. However, the Company is currently in litigation with prior management and the consulting firm regarding their breach of the obligations under the Exchange Agreement dated October 17, 2005.


--------------------------------------------------------------------------------





SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.

(F/K/A - Cali Holdings, Inc.)



NOTES TO FINANCIAL STATEMENTS

Unaudited

March 31, 2006


SENIOR SECURITY INSTRUMENT - HISTORIC DISCOVERIES, INC.


Prior to the Exchange Agreement, there is a Revenue Agreement as outlined in Exhibit B of the Exchange Agreement, that requires 20% revenue participation payable to the original owners of the permits from the net recovery of the shipwrecks for the permits that have been assigned to the subsidiaries of the Company's portfolio company, Historic Discoveries, Inc. The 20% revenue participation allows Historic Discoveries, Inc. to defer permit transfer fees and align site permit cost with revenue generation, eliminating the exposure associated with sites that do not produce a material number of artifacts. Historic Discoveries, Inc . is only required to pay the 20% revenue participation when sites produce net revenue. The 20% revenue participation also provides Historic Discoveries, Inc. the right of first refusal on future sites, creating a mechanism for Historic Discoveries, Inc. and its operating companies to build site inventory while deferring the associated cost and reducing financial risk. The Revenue Agreement with the original owners was executed prior to October 17, 2005.


RELATED PARTY OWNERSHIP OF PERMITS


The original owners of the permits, as discussed in Senior Security Instrument - Historic Discoveries, Inc., are the beneficial owners of the controlling interest in the stock of the Company received in the Exchange Agreement dated October 17, 2005.


OFFICERS AND DIRECTORS OF THE COMPANY


Certain officers and directors of the Company hold certain executive positions in Historic Discoveries, Inc. and Sea Hunt, Inc. and their respective subsidiaries.


ACQUISITION OF SEA QUEST, INC.


On December 26, 2005, the Company issued 100,000 shares of common stock for 100% ownership of the stock of Sea Quest, Inc. Sea Quest, Inc. is a wholly owned subsidiary of Sea Research, Inc. Sea Quest, Inc. was owned 50% by a private unrelated individual and 50% owned by Sea Hunt Holding, LLC, which is owned by the Chairman of the Company.


STOCK ACQUISITION - EXCHANGE AGREEMENT

Pursuant to the Exchange Agreement dated October 17, 2005, Sovereign Marine Explorations, Inc (owner of Artifact Recovery & Conservation, Inc.) and Sea Hunt, Inc. (owner of Sea Research, Inc.) collectively own 90% of the Company's outstanding common stock and 100% of the Company's Class C, Convertible Preferred Stock.


--------------------------------------------------------------------------------


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


The following discussion will assist in the understanding of the Company's financial position and results of operations. The information below should be read in conjunction with the financial statements and the notes thereto, and the other recent Company filings describing the October 17, 2005 definitive agreement with Sovereign Exploration Associates International, Inc. (SEAI).




Among other material items, the October 17, 2005 Exchange Agreement required CALI Holdings, Inc. to divest all its portfolio companies in existence at the time of the execution of the Exchange Agreement, with the sole exception of Gulf Coast Records. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.



The reader of this discussion, the related financial statements and notes thereto, and other recent Company filings should understand that the Portfolio companies, the Senior Management team, and the Board of Directors have all materially changed.


Overview

On January 5, 2004 the Company shareholders approved the proposal to allow the Company to adopt business development company ("BDC") status under the Investment Company Act of 1940 ("1940 Act"). A BDC is a specialized type of Investment Company under the 1940 Act. A BDC may primarily be engaged in the business of furnishing capital and managerial expertise to companies that do not have ready access to capital through conventional financial channels; such companies are termed "eligible portfolio companies".


The Company as a BDC, may invest in other securities, however such investments may not exceed 30% of the Company's total asset value at the time of such investment. The Company filed its BDC election with the SEC (Form N-54A) on January 13, 2004.


The Company is a financial services company providing financing and advisory services to small and medium-sized companies. Effective January 5, 2004 the Company shareholders approved the proposal to allow the Company to convert to a business development company ("BDC") under the Investment Company Act of 1940 ("1940 Act").


The Company invests either directly in the equity of a company through equity shares or through a debt instrument. The Company's debt instruments usually do not have a maturity of more than five years. Interest is either currently paid or deferred.


Investment opportunities are identified for the Company by the management team. Investment proposals may, however, come to the Company from many sources, and may include unsolicited proposals from the public and from referrals from banks, lawyers, accountants and other members of the financial community. The management team brings an extensive network of investment referral relationships.


On October 26, 2005 the Company changed its name from CALI Holdings, Inc. to Sovereign Exploration Associates International, Inc. ("the Company"). In conjunction with the Company's name change and the Exchange Agreement dated October 17, 2005, its principal offices were relocated to 503 Washington Avenue, Suite 2D, Newtown, Pennsylvania and 33 North Avenue, Suite 2B, Wakefield, MA. These offices are equipped with an integrated network of computers for word processing, financial analysis and accounting services. The Company believes its office space is suitable for its needs for the foreseeable future.


The Company provides equity and long-term debt financing to small and medium-sized private companies. The company's investment objective is to achieve long-term capital appreciation in the value of its investments and to provide current income primarily from interest, dividends and fees paid by its portfolio companies.


Portfolio Investments


The Company has investments in three (3) controlled portfolio companies as of March 31, 2006.


Historic Discoveries, Inc.

Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)

-
Gulf Coast Records, LLC




The portfolio companies consist of Historic Discoveries, Inc., Artifact Recovery & Conservation, Inc. and Sea Research, Inc. (SR) are wholly owned subsidiaries of Historic Discoveries, Inc.


Artifact Recovery & Conservation, Inc. (ARC)


Artifact Recovery & Conservation, Inc. (ARC) has secured the rights to five (5) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently ARC operates recovery operations on two of the five sites. ARC manages its own dive teams and oversees operations for contracted recovery team. Management is in the process of preparing time lines and operating plans for the other sites.


Sea Research, Inc. (SR)


Sea Research, Inc. (SR) has secured the rights to seven (7) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently SR is preparing to initiate recovery operations on one of the seven sites and developing timelines for the remainder of the portfolio.


Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)


Sovereign Exploration Associates International of Spain, Inc. (SEAI-SPAIN) has secured the finder's rights to four (4) shipwrecks in Spain with potential historic and intrinsic value, thereby expanding SR's current holdings.


Gulf Coast Records, LLC


Gulf Coast Records, LLC is an independent record label. In 2005, Gulf Coast was developing record artist Glenn Cummings. There has been no activity in the development or promotion of this artist since September 2005. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.


Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time, and has reduced the value of the investment and note receivable to zero. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Dispositions of Investments


Prior to the effective execution of the Exchange Agreement on October 17, 2005, the Company was required to divest of all of its assets including the investment in all portfolio companies, notes receivable, and all remaining assets except for its investment in, and its note receivable due from Gulf Coast Records, LLC and other assets consisting of prepaid legal fees and security deposits of $7,375. As of March 31, 2006, the investment in and the note receivable due from Gulf Coast was reduced to zero.


Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.


Prior to the effective date of the Exchange Agreement dated October 17, 2005, two separate bills of sales required the following lists of assets of the Company to be sold to KMA Capital, Ltd. of Texas for total consideration of $10 and Kairos Holdings, Inc. for a total consideration of $10:













Sold to KMA Capital Ltd. Of Texas





Sports Nation, Inc.



Buehler Earth & Waterworks, LLC



Brokerage account of CALI at NevWest



TS&B Financial Services, Inc.



Wellstone Acquisition Corporation



TS&B Gaming & Entertainment Corp.



TSB Ventures, Inc.



Three (3) Dell notebook computers



Furniture and fixtures



Office and computer equipment













Sold to Kairos Holdings, Inc.





Interest in and to investment in KMA Capital Partners Ltd - Nine (9) Limited Partnership Units









KMA Capital, Ltd. is owned in part by Kairos Holdings, Inc.


Total loss on the divestiture of these assets of the Company was $2,620,117; this amount was recorded as a net realized loss on investments: control investments. The Company does not have any information regarding the valuation of these companies. Prior management owns a controlling interest in the divested companies.


NEX2U, Inc. is listed as a portfolio company investment as of September 30, 2005; however, it was not included in either of the above referenced bills of sale included in the Exchange Agreement dated October 17, 2005. As of September 30, 2005 this portfolio company had a cost basis of $16,000. The Company has requested documentation from prior management regarding the transfer of NEX2U, Inc. to Kairos Holdings, Inc., and the consideration for such transfer.


On September 21, 2005, prior management sold the Company's 51% interest in Buehler Earth and Waterworks, LLC for $110,000 to Buehler's managing member.


Current management has requested the appropriate documentation from the management of KMA Capital, Ltd. and Kairos Holdings, Inc. in an effort to determine the effect these transactions had on shareholders.


Valuation of Investments


The most significant estimate inherent in the preparation of the Company's financial statements is the valuation of its investments and the related unrealized appreciation or depreciation.


Upon the Company's conversion to a business development company, the Company employed independent business valuation experts to value selected portfolio companies. The Board of Directors determined all other portfolio companies and investments at fair market value, which approximates cost, under a good faith standard. The Company analyzes and values each individual investment on a quarterly basis and records unrealized depreciation for an investment that it believes has become impaired, including where collection of a loan or realization of an equity security is doubtful. Conversely, the Company will record unrealized appreciation if it believes that the underlying portfolio company has appreciated in value.


Investments in Private Companies


The Company provides privately negotiated long-term debt and equity investment capital. The Company provides capital in the form of debt with or without equity features, such as warrants or options, often referred to as mezzanine financing. In certain situations the Company may choose to take a controlling equity position in a company. The Company's private financing is generally used to fund growth, buyouts and acquisitions and bridge financing.


As of the effective date of the Exchange Agreement dated October 17, 2005, the Company's private finance portfolio currently includes investments in a variety of industries including a record company and maritime exploration and excavation services.


The Company funds new investments using cash through the issuance of common stock. The Company intends to reinvest accrued interest, dividends and management fees into its various investments. When the Company acquires a controlling interest in a company, the Company may have the opportunity to acquire the company's equity with its common stock. The issuance of its stock as consideration may provide the Company with the benefit of raising equity without having to access the public markets in an underwritten offering, including the added benefit of the elimination of any underwriting commission.


As a business development company, the Company is required to make significant managerial assistance available to the companies in its investment portfolio. In addition to the interest and dividends received from the Company's private finance investments, the Company will often generate additional fee income for the structuring, due diligence, transaction and management services and guarantees provided to its portfolio companies.


Governmental Regulation


Business Development Company


A business development company is defined and regulated by the 1940 Act. Although the 1940 Act exempts a business development company from registration under the Act, it contains significant limitations on the operations of a business development company.


A business development company must be organized in the United States for the purpose of investing in or lending to primarily private companies and making managerial assistance available to them. A business development company may use capital provided by public shareholders and from other sources to invest in long-term, private investments in businesses. A business development company provides shareholders the ability to retain the liquidity of a publicly traded stock, while sharing in the possible benefits, if any, of investing in primarily privately owned companies. To qualify as a business development company, a company must:


*
Have registered a class of its equity securities or have filed a registration statement with the Securities and Exchange Commission pursuant to Section 12 of the Securities and Exchange Act of 1934;



*
Operate for the purpose of investing in securities of certain types of portfolio companies, namely emerging companies and businesses suffering or just recovering from financial distress;



*
Extend significant managerial assistance to such portfolio companies and;



*
Have a majority of "disinterested" directors (as defined in the 1940 Act).







Generally, a business development company must be primarily engaged in the business of furnishing capital and providing managerial expertise to companies that do not have ready access to capital through conventional financial channels. An eligible portfolio company is generally a domestic company that is not an investment company (other than a small business investment company wholly owned by a business development company), and that:


*
Does not have a class of securities registered on an exchange or included in the Federal Reserve Board"s over-the-counter margin list; or



*
Is actively controlled by a business development company and has an affiliate of a business development company on its board of directors; or



*
Meets such other criteria as may be established by the Securities and Exchange Commission.



Control under the 1940 Act is presumed to exist where a business development Company beneficially owns more than 25% of the outstanding v

[Andreito]

in diesem jahr gans schon so einige insiderkaeufe und alles wurde ueber 0,6 geordert.

http://www.secform4.com/insider/showhistory.php?cik=svxa

[Andreito]

ganz schoen ruhig geworden. ist noch einer investiert???? oder weis einer was neues??

[Andreito]

ich stell mal die letzten news von ende mai bis heute rein...


Form 10QSB for SOVEREIGN EXPLORATION ASSOCIATES INTERNATIONAL, INC.


--------------------------------------------------------------------------------

23-May-2006

Quarterly Report



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion will assist in the understanding of the Company's financial position and results of operations. The information below should be read in conjunction with the financial statements and the notes thereto, and the other recent Company filings describing the October 17, 2005 definitive agreement with Sovereign Exploration Associates International, Inc. (SEAI).

Among other material items, the October 17, 2005 Exchange Agreement required CALI Holdings, Inc. to divest all its portfolio companies in existence at the time of the execution of the Exchange Agreement, with the sole exception of Gulf Coast Records. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.

The reader of this discussion, the related financial statements and notes thereto, and other recent Company filings should understand that the Portfolio companies, the Senior Management team, and the Board of Directors have all materially changed.

Overview

On January 5, 2004 the Company shareholders approved the proposal to allow the Company to adopt business development company ("BDC") status under the Investment Company Act of 1940 ("1940 Act"). A BDC is a specialized type of Investment Company under the 1940 Act. A BDC may primarily be engaged in the business of furnishing capital and managerial expertise to companies that do not have ready access to capital through conventional financial channels; such companies are termed "eligible portfolio companies".

The Company as a BDC, may invest in other securities, however such investments may not exceed 30% of the Company's total asset value at the time of such investment. The Company filed its BDC election with the SEC (Form N-54A) on January 13, 2004.

The Company is a financial services company providing financing and advisory services to small and medium-sized companies. Effective January 5, 2004 the Company shareholders approved the proposal to allow the Company to convert to a business development company ("BDC") under the Investment Company Act of 1940 ("1940 Act").

The Company invests either directly in the equity of a company through equity shares or through a debt instrument. The Company's debt instruments usually do not have a maturity of more than five years. Interest is either currently paid or deferred.

Investment opportunities are identified for the Company by the management team. Investment proposals may, however, come to the Company from many sources, and may include unsolicited proposals from the public and from referrals from banks, lawyers, accountants and other members of the financial community. The management team brings an extensive network of investment referral relationships.

On October 26, 2005 the Company changed its name from CALI Holdings, Inc. to Sovereign Exploration Associates International, Inc. ("the Company"). In conjunction with the Company's name change and the Exchange Agreement dated October 17, 2005, its principal offices were relocated to 503 Washington Avenue, Suite 2D, Newtown, Pennsylvania and 33 North Avenue, Suite 2B, Wakefield, MA. These offices are equipped with an integrated network of computers for word processing, financial analysis and accounting services. The Company believes its office space is suitable for its needs for the foreseeable future.

The Company provides equity and long-term debt financing to small and medium-sized private companies. The company's investment objective is to achieve long-term capital appreciation in the value of its investments and to provide current income primarily from interest, dividends and fees paid by its portfolio companies.

Portfolio Investments

The Company has investments in three (3) controlled portfolio companies as of March 31, 2006.


Historic Discoveries, Inc.

Sovereign Exploration Associates International of
Spain, Inc. (SEAI - SPAIN)


--------------------------------------------------------------------------------


Gulf Coast Records, LLC
The portfolio companies consist of Historic Discoveries, Inc., Artifact Recovery & Conservation, Inc. and Sea Research, Inc. (SR) are wholly owned subsidiaries of Historic Discoveries, Inc.

Artifact Recovery & Conservation, Inc. (ARC)

Artifact Recovery & Conservation, Inc. (ARC) has secured the rights to five (5) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently ARC operates recovery operations on two of the five sites. ARC manages its own dive teams and oversees operations for contracted recovery team. Management is in the process of preparing time lines and operating plans for the other sites.

Sea Research, Inc. (SR)

Sea Research, Inc. (SR) has secured the rights to seven (7) sites; several of the sites have revealed multiple ships with historic and intrinsic value. Currently SR is preparing to initiate recovery operations on one of the seven sites and developing timelines for the remainder of the portfolio.

Sovereign Exploration Associates International of Spain, Inc. (SEAI - SPAIN)

Sovereign Exploration Associates International of Spain, Inc. (SEAI-SPAIN) has secured the finder's rights to four (4) shipwrecks in Spain with potential historic and intrinsic value, thereby expanding SR's current holdings.

Gulf Coast Records, LLC

Gulf Coast Records, LLC is an independent record label. In 2005, Gulf Coast was developing record artist Glenn Cummings. There has been no activity in the development or promotion of this artist since September 2005. Current management is reviewing its options regarding this portfolio company and whether it wants to maintain its position or divest its holdings in the future.

Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time, and has reduced the value of the investment and note receivable to zero. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.

Dispositions of Investments

Prior to the effective execution of the Exchange Agreement on October 17, 2005, the Company was required to divest of all of its assets including the investment in all portfolio companies, notes receivable, and all remaining assets except for its investment in, and its note receivable due from Gulf Coast Records, LLC and other assets consisting of prepaid legal fees and security deposits of $7,375. As of March 31, 2006, the investment in and the note receivable due from Gulf Coast was reduced to zero.

Management does not possess adequate information to determine the proper fair market value of this portfolio company, at this time. Once management receives the necessary information, it will update the fair market value of these assets. Current management is actively negotiating with the management of Gulf Coast Records, LLC regarding the recovery of the Company's investment.

Prior to the effective date of the Exchange Agreement dated October 17, 2005, two separate bills of sales required the following lists of assets of the Company to be sold to KMA Capital, Ltd. of Texas for total consideration of $10 and Kairos Holdings, Inc. for a total consideration of $10:


Sold to KMA Capital Ltd. Of Texas

Sports Nation, Inc.

Buehler Earth & Waterworks, LLC

Brokerage account of CALI at NevWest

TS&B Financial Services, Inc.

Wellstone Acquisition Corporation

TS&B Gaming & Entertainment Corp.

TSB Ventures, Inc.
Three (3) Dell notebook computers

Furniture and fixtures

Office and computer equipment


Sold to Kairos Holdings, Inc.
Interest in and to investment in KMA Capital Partners Ltd - Nine (9) Limited Partnership Units

KMA Capital, Ltd. is owned in part by Kairos Holdings, Inc.

Total loss on the divestiture of these assets of the Company was $2,620,117; this amount was recorded as a net realized loss on investments: control investments. The Company does not have any information regarding the valuation of these companies. Prior management owns a controlling interest in the divested companies.

NEX2U, Inc. is listed as a portfolio company investment as of September 30, 2005; however, it was not included in either of the above referenced bills of sale included in the Exchange Agreement dated October 17, 2005. As of September 30, 2005 this portfolio company had a cost basis of $16,000. The Company has requested documentation from prior management regarding the transfer of NEX2U, Inc. to Kairos Holdings, Inc., and the consideration for such transfer.

On September 21, 2005, prior management sold the Company's 51% interest in Buehler Earth and Waterworks, LLC for $110,000 to Buehler's managing member.

Current management has requested the appropriate documentation from the management of KMA Capital, Ltd. and Kairos Holdings, Inc. in an effort to determine the effect these transactions had on shareholders.

Valuation of Investments

The most significant estimate inherent in the preparation of the Company's financial statements is the valuation of its investments and the related unrealized appreciation or depreciation.

Upon the Company's conversion to a business development company, the Company employed independent business valuation experts to value selected portfolio companies. The Board of Directors determined all other portfolio companies and investments at fair market value, which approximates cost, under a good faith standard. The Company analyzes and values each individual investment on a quarterly basis and records unrealized depreciation for an investment that it believes has become impaired, including where collection of a loan or realization of an equity security is doubtful. Conversely, the Company will record unrealized appreciation if it believes that the underlying portfolio company has appreciated in value.

Investments in Private Companies

The Company provides privately negotiated long-term debt and equity investment capital. The Company provides capital in the form of debt with or without equity features, such as warrants or options, often referred to as mezzanine financing. In certain situations the Company may choose to take a controlling equity position in a company. The Company's private financing is generally used to fund growth, buyouts and acquisitions and bridge financing.

As of the effective date of the Exchange Agreement dated October 17, 2005, the Company's private finance portfolio currently includes investments in a variety of industries including a record company and maritime exploration and excavation services.

The Company funds new investments using cash through the issuance of common stock. The Company intends to reinvest accrued interest, dividends and management fees into its various investments. When the Company acquires a controlling interest in a company, the Company may have the opportunity to acquire the company's equity with its common stock. The issuance of its stock as consideration may provide the Company with the benefit of raising equity without having to access the public markets in an underwritten offering, including the added benefit of the elimination of any underwriting commission.

As a business development company, the Company is required to make significant managerial assistance available to the companies in its investment portfolio. In addition to the interest and dividends received from the Company's private finance investments, the Company will often generate additional fee income for the structuring, due diligence, transaction and management services and guarantees provided to its portfolio companies.

Governmental Regulation

Business Development Company

A business development company is defined and regulated by the 1940 Act. Although the 1940 Act exempts a business development company from registration under the Act, it contains significant limitations on the operations of a business development company.

A business development company must be organized in the United States for the purpose of investing in or lending to primarily private companies and making managerial assistance available to them. A business development company may use capital provided by public shareholders and from other sources to invest in long-term, private investments in businesses. A business development company provides shareholders the ability to retain the liquidity of a publicly traded stock, while sharing in the possible benefits, if any, of investing in primarily privately owned companies. To qualify as a business development company, a company must:

† Have registered a class of its equity securities or have filed a registration statement with the Securities and Exchange Commission pursuant to Section 12 of the Securities and Exchange Act of 1934;

† Operate for the purpose of investing in securities of certain types of portfolio companies, namely emerging companies and businesses suffering or just recovering from financial distress;

† Extend significant managerial assistance to such portfolio companies and;

† Have a majority of "disinterested" directors (as defined in the 1940 Act).

Generally, a business development company must be primarily engaged in the business of furnishing capital and providing managerial expertise to companies that do not have ready access to capital through conventional financial channels. An eligible portfolio company is generally a domestic company that is not an investment company (other than a small business investment company wholly owned by a business development company), and that:

† Does not have a class of securities registered on an exchange or included in the Federal Reserve Board"s over-the-counter margin list; or

† Is actively controlled by a business development company and has an affiliate of a business development company on its board of directors; or

† Meets such other criteria as may be established by the Securities and Exchange Commission.

Control under the 1940 Act is presumed to exist where a business development Company beneficially owns more than 25% of the outstanding voting securities of the portfolio company.

The 1940 Act prohibits or restricts companies subject to the 1940 Act from investing in certain types of companies such as brokerage firms, insurance companies, investment banking firms and investment companies.

As a business development company, the Company may not acquire any asset other than "qualifying assets" unless, at the time the Company makes the acquisition, the value of its qualifying assets represent at least 70% of the value of its total assets. The principal categories of qualifying assets relevant to our business are:

† Securities purchased in transactions not involving any public offering, the issuer of which is an eligible portfolio company;

† Securities received in exchange for or distributed with respect to securities described in the bullet above or pursuant to the exercise of options, warrants or rights relating to such securities;

† Securities of bankrupt or insolvent companies that were eligible at the time of the business development company"s initial acquisition of their securities but are no longer eligible, provided that the business development company has maintained a substantial portion of its initial investment in those companies; and

† Cash, cash items, government securities or high quality debt securities (within the meaning of the 1940 Act), maturing in one year or less from the time of investment.

A business development company is permitted to invest in the securities of public companies and other investments that are not qualifying assets, but those kinds of investments may not exceed 30% of the business development company"s total asset value at the time of the investment.

As a business development company, the Company is entitled to issue senior securities in the form of stock or senior securities representing indebtedness, including debt securities and preferred stock, as long as each class of senior security has asset coverage of at least 200% immediately after each such issuance.

The Company is also prohibited under the 1940 Act from knowingly participating in certain transactions with its affiliates without the prior approval of its board of directors who are not interested persons and, in some cases, prior approval by the Securities and Exchange Commission.

A business development company must make significant managerial assistance available to the issuers of eligible portfolio securities in which it invests. Making available significant managerial assistance means among other things, any arrangement whereby the business development company, through its directors, officers or employees, offers to provide and, if accepted does provide, significant guidance and counsel concerning the management, operation or business objectives and policies of a portfolio company.

The Company may be periodically examined by the Securities and Exchange Commission for compliance with the 1940 Act. As of the date of this filing the Company has not been examined by the Securities and Exchange Commission and has not been notified of a pending examination.

As with other companies regulated by the 1940 Act, a business development company must adhere to certain substantive regulatory requirements. A majority of its directors must be persons who are not interested persons, as that term is defined in the 1940 Act. Additionally, the Company is required to provide and maintain a bond issued by a reputable fidelity insurance company to protect it against larceny and embezzlement.

Furthermore, as a business development company, the Company is prohibited from protecting any director or officer against any liability to the Company or its shareholders arising from willful malfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office.

The Company maintains a Code of Ethics that establishes procedures for personal investment and restricts certain transactions by its personnel. The Company"s Code of Ethics generally does not permit investment by its employees in securities that may be purchased or held by the Company.

The Company may not change the nature of its business so as to cease to be, or withdraw its election as, a business development company unless authorized by vote of a "majority of the outstanding voting securities," as defined in the 1940 Act, of its shares. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (i) 67% or more of such company's shares present at a meeting if more than 50% of the outstanding shares of such company are present and represented by proxy or (ii) more than 50% of the outstanding shares of such company. Since the Company elected to become a business development company, it has not made any substantial change in the nature of its business.

Regulated Investment Company

The Company has not elected to be taxed as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986.

Compliance with the Sarbanes-Oxley Act of 2002 and NYSE Corporate Governance Regulations.

On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"). The Sarbanes-Oxley Act imposes a wide variety of new regulatory requirements on publicly held companies and their insiders. Many of these requirements will affect the Company. For example:

† The Company"s chief executive officer and chief financial officer must now certify the accuracy of the financial statements contained in its periodic reports;

† The Company"s periodic reports must disclose conclusions about the effectiveness of its disclosure controls and procedures;

† The Company's periodic reports must disclose whether there were significant changes in its internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses; and

† The Company may not make any loan to any director or executive officer and may not materially modify any existing loans.

The Sarbanes-Oxley Act has required the Company to review its current policies and procedures to determine whether it complies with the Sarbanes-Oxley Act and the new regulations promulgated thereunder. The Company will continue to monitor its compliance with all future regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance.

Employees

As of March 31, 2006, the Company had five employees.

Risk Factors and Other Considerations

Investing in the Company's common stock involves a high degree of risk. Careful consideration should be given to the risks described below and all other information contained in this Quarterly Report, including the financial statements and the related notes and the schedules as exhibits to this Quarterly Report.

Limited Operating History as a Business Development Company Which May Impair Your Ability to Assess Our Prospects.

Prior to January 2004 the Company had not operated as a business development company under the Investment Company Act of 1940. As a result the Company has limited operating results under this regulatory framework that can demonstrate either its effect on its business or management's ability to manage the Company under these frameworks. In addition, the Company's management has no prior experience managing a business development company. The Company cannot assure that management will be able to operate successfully as a business development company.

Because there is generally no established market for which to value its investments, the Company's board of directors' determination of the value of its investments may differ materially from the values that a ready market or third party would attribute to these investments.

Under the 1940 Act the Company is required to carry its portfolio investments at market value, or, if there is no readily available market value, at fair value as determined by the board. The Company is not permitted to maintain a general reserve for anticipated loan losses. Instead, the Company is required by the 1940 Act to specifically value each individual investment and to record any unrealized depreciation for any asset that has decreased in value. Since there is typically no public market for the loans and equity securities of the companies in which it invests, the Company's board will determine the fair value of these loans and equity securities pursuant to its valuation policy. These determinations of fair value may necessarily be somewhat subjective. Accordingly, these values may differ materially from the values that would be determined by a party or placed on the portfolio if there existed a market for our loans and equity securities.

Investments in Private Companies Involves a High Degree of Risk.

The Company's portfolio consists of primarily long-term loans to and investments in private companies. Investments in private businesses involve a high degree of business and financial risk, which can result in substantial losses and accordingly should be considered speculative. There is generally no publicly available information about the companies in which the Company invests, and the Company relies significantly on the due diligence of its employees and agents to obtain information in connection with its investment decisions. If the Company is unable to uncover all material information about these companies, it may not make a fully informed investment decision and the Company may lose money on its investments.

In addition, some smaller businesses have narrower product lines and market shares than their competition, and may be more vulnerable to customer preferences, market conditions or economic downturns, which may adversely affect the return on, or the recovery of, the Company's investment in such business.

The Lack of Liquidity of the Company's Privately Held Investments may Adversely Affect Our Business.

Substantially all of the investments the Company expects to acquire in the future will be, subject to restrictions on resale, including in some instances, legal restrictions, or will otherwise be less liquid than publicly traded securities. The illiquidity of these investments may make it difficult for the Company to quickly obtain cash equal to the value at which it records its investments if the need arises. This could cause the Company to miss important business opportunities. In addition, if the Company were required to quickly liquidate all or a portion of its portfolio, it may realize significantly less than the value at which it had previously recorded its investments.

If the Industry Sectors in which the Company's Portfolio is Concentrated Experience Adverse Economic or Business Conditions, Our Operating Results may be Negatively Impacted.

The Company's customer base is primarily in the recording industry and marine exploration and excavation industry sectors. These customers can experience adverse business conditions or risks related to their industries. Accordingly, if the Company's customers suffer due to these adverse business conditions or risks or due to economic slowdowns or downturns in these industry sectors the Company will be more vulnerable to losses in its portfolio and our operating results may be negatively impacted.

Some of these companies may be unable to obtain financing from public capital markets or from traditional credit sources, such as commercial banks. Accordingly, advances made to these types of customers may entail a higher degree of risk than advances made to customers who are able to utilize traditional credit sources. These conditions may also make it difficult for us to obtain repayment of our loans.

Economic downturns or recessions may impair the Company's customers' ability to repay its loans, harm its operating results.

Many of the companies in which the Company has made or will make investments may be susceptible to economic slowdowns or recessions. An economic slowdown may affect the ability of a company to engage in a liquidity event. The Company's non-performing assets are likely to increase and the value of its portfolio is likely to decrease during these periods. These conditions could lead to financial losses in its portfolio and a decrease in its revenues, net income and assets.

The Company's business of making private equity investments and positioning them for liquidity events also may be affected by current and future market conditions. The absence of an active senior lending environment may slow the amount of private equity investment activity generally. As a result, the pace of the Company's investment activity may slow. In addition, significant changes in the capital markets could have an effect on the valuations of private companies and on the potential for liquidity events involving such companies. This could affect the amount and timing of gains realized on its investments.

The Company's Borrowers May Default on Their Payments, Which May Have an Effect on Financial Performance.

Some of these companies may be unable to obtain financing from public capital markets or from traditional credit sources, such as commercial banks. Accordingly, advances made to these types of customers may entail a higher degree of risk than advances made to customers who are able to utilize traditional credit sources. These conditions may also make it difficult for the Company to obtain repayment of its loans. Numerous factors may affect a borrower's ability to repay its loan; including the failure to meet its business .




Press Release Source: Sovereign Exploration Associates International, Inc.


Sovereign Exploration Associates International, Inc. Positions for Industry Leading Science and Research with Addition of Thomas Mullins to Advisory Board.
Thursday July 13, 11:16 am ET


NEWTOWN, Pa.--(BUSINESS WIRE)--July 13, 2006--Sovereign Exploration Associates International, Inc. (OTC BB: SVXA - News) announces today that Mr. Thomas D. Mullins, a Trustee and Member of the Corporation of Woods Hole Oceanographic Institute, has joined the company's Science Advisory Board. Mr. Mullins will provide guidance to the continued development of SVXA's science team into the areas of maritime sciences and technology, marine archaeology and geology.
ADVERTISEMENT


Mr. Mullins joins SVXA's Advisory Board after retiring from an appointment at Harvard University: most notably serving as the Associate Director of the Center for Middle Eastern Studies and Executive Director of the Contemporary Arab Studies and Islamic Finance Programs. He is a past Member of the Executive and Education Committees of the National Board of the Smithsonian Institution and Board liaison to the Smithsonian Tropical Research Institute, Panama; Trustee and Member of the Corporation and Investment and Ships Committees of the Woods Hole Oceanographic Institution; Director of the Royal Oak Foundation; Fellow of The Royal Geographical Society and The Institute of Petroleum. Mr. Mullins is a member of The Royal Institute of International Affairs, Royal Society for Asian Affairs, International Institute for Strategic Studies, The Middle East Institute, The Asia Society, The Boston Athenaeum, Patrons of the Museum of Fine Arts - Boston, and Executive Committee of the International Friends of the London Library.

Prior to his appointment at Harvard, Mr. Mullins' professional career in the petroleum industry had spanned four decades of industry leadership. He has held senior advisory and operational positions globally.

Mr. Mullins is a graduate of the University of Pennsylvania with later graduate studies at the American University of Beirut and Harvard Business School.

Peter Knollenberg, Chairman of SVXA comments on Mr. Mullins, "I am very pleased that Tom has joined our advisory board. His long history of involvement, bridging the scientific and cultural worlds will be of immeasurable help to us moving forward. His addition to the advisory board further reinforces SVXA's commitment to our scientific and historic responsibilities."

About Sovereign Exploration Associates International, Inc.

Sovereign Exploration Associates International, Inc. (OTCBB:SVXA - News) is a Business Development Company under the Investment Company Act of 1940 undertaking shipwreck exploration and recovery initiatives. Pursuant to Section 13 or 15(d) of the Security Exchange Act of 1934, SVXA, has filed Form 8-K.

SAFE HARBOR

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company's products in the marketplace, competitive factors and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.



Contact:
Sovereign Exploration Associates International Inc.
Curtis R. Sprouse, 781-246-7512
Fax: [phone]
[e-mail]
www.sea-int.com

--------------------------------------------------------------------------------
Source: Sovereign Exploration Associates International, Inc.

[Andreito]

gibts hier was neues??? wenn man den chart anschaut wird einen schlecht falls man seekrank ist, soviele wellen wie der ausschlaegt

[Andreito]

Sovereign Exploration Associates International, Inc. Announces Update of Fantome Cove Recovery Efforts

Newtown, PA. September 18, 2006: Sovereign Exploration Associates International, Inc. (“Sovereign”) (OTC BB: SVXA), a company with portfolio investments in maritime artifact exploration, discovery, and recovery, announced that its wholly owned portfolio company, Artifact Recovery and Conservation Inc. (ARC), completed its Fantome Cove reconnaissance efforts under a Class A permit on September 1, 2006. “ARC’s sensing identified two very large concretion fields.” said Captain Robert MacKinnon, President of ARC. “Our divers observed flatware, artifacts, ship fittings and thousands of coins in the concretions. While our science team has not positively identified the vessels on the site, the new data combined with last year’s recoveries under our 2005 Class B recovery permit clearly establish the site as one of significant historical importance.”

ARC was notified on August 31, 2006 by the Nova Scotia Tourism, Culture & Heritage, Heritage Division, that its application for a Class B recovery permit for the Fantome Cove treasure trove site has not been approved. A Class B permit is required before ARC can make any substantial recoveries from the site. The Department has recommended that ARC and its project partner, Le Chameau Explorations Limited, secure permission from the United Kingdom. One of the ships on the site is believed to be the HMS Fantome, a British naval vessel lost in 1814, although ARC has not confirmed the Fantome’s identification.

ARC’s management and counsel are confident that the admiralty and treaty laws governing the site will substantiate ARC’s and Le Chameau Explorations Limited’s interest as license holder. ARC management does understand the sensitivities and historic importance of the site and has developed plans to coordinate the recovery of the site with Canada, the United States and the United Kingdom.

“The historical importance of the Fantome and associated vessels to the United States, the United Kingdom and Canada must be addressed.” “We believe ARC can utilize top science and a well structured collaboration to be the first commercial company to coordinate a historic recovery of this significance with the cooperation and support of multiple governments, ” said Robert Baca, President and Chief Executive Officer of Sovereign. “ARC and Le Chameau Explorations have always intended to secure the involvement of all three parties once the site was positively identified to contain the Fantome. The events of the past weeks will require ARC and Le Chameau to take action on these fronts in advance of a positive identification of the vessels on the site”

The area in question is the reported final resting site of the small fleet of ships that sank in 1814 with a cargo of spoils from the sacking of the White House, the Capitol, and the Treasury in Washington, D.C. during the War of 1812. The fleet was made up of the HMS Fantome, a British frigate, and two seized commercial vessels: the Industry and Perseverance. Geological and geophysical investigations of the nearshore area were conducted in support of archeological surveys and excavations to determine if the objects found within the cove were part of the cargo on the fleet and the extent of the artifact distribution.

About Artifact Recovery and Conservation, Inc.
Artifact Recovery and Conservation Inc. (ARC) undertakes maritime artifact exploration, discovery, and recovery initiatives focused on shipwrecks dating from 1500 to 1900 for museums and private parties interested in commissioning artifact recovery. ARC generates revenue from artifact recovery and by contributing its research findings to a variety of ARC produced multimedia projects that include books, movies, and CD-ROMs. The company operates with licenses and finders’ rights granted by government authorities and has protected access to the largest identified and located grouping of valuable shipwrecks in the world. For more information, visit www.sea-int.com/HistoricDiscoveries.asp.

About Sovereign Exploration Associates International, Inc.
Sovereign Exploration Associates International, Inc. (OTCBB: SVXA) is a business development company under the Investment Company Act of 1940 that has investments in shipwreck exploration and recovery companies. For more information, visit www.sea-int.com.

Contact:
Sovereign Exploration Associates International, Inc.
Curtis R. Sprouse, COO
781-246-7512
Fax: [phone]
[e-mail]
www.sea-int.com