Alternet Systems (ALYI) 10-Q 25 Oct 17 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Oct. 24, 2017
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Trading Symbol	alyi
Entity Registrant Name	ALTERNET SYSTEMS INC
Entity Central Index Key	1,126,003
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		116,724,295
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 1,271	$ 78,780
Accounts receivable, net	7,044	5,000
Due from related parties	8,006	0
Investment in digital currency	116,974	114,763
Deposits and other assets	5,750	2,000
Total current assets	139,045	200,543
TOTAL ASSETS	139,045	200,543
Current liabilities
Accounts payable and accrued charges	874,306	746,508
Wages payable	1,482,707	1,308,207
Accrued payroll taxes	168,753	168,753
Other loans payable, net of beneficial conversion feature	478,394	474,377
Due to related parties	0	1,796
Current liabilities of discontinued operations	125,835	123,574
Total current liabilities	3,129,995	2,823,215
Stockholders' (deficit)
Capital stock Authorized: 500,000,000 common stock with a par value of $0.00001 and 10,000,000 preferred stock with a par value of $0.00001 Issued and outstanding: 116,724,295 common stock (2015 - 108,224,295)	1,167	1,083
Additional paid-in capital	15,463,929	15,351,463
Private placement subscriptions	505,362	505,362
Share subscription receivable	(375,000)	(375,000)
Accumulated other comprehensive income	(1,989)	(2,000)
Accumulated deficit	(18,584,419)	(18,103,580)
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY)	(2,990,950)	(2,622,672)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)	$ 139,045	$ 200,543

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par Value Per Share	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Par Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares, Issued	116,724,295	108,224,295
Common Stock, Shares, Outstanding	116,724,295	108,224,295

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUE	$ 18,277	$ 0	$ 36,966	$ 0
OPERATING EXPENSES
Investor relations	36,000	20,000	45,000	20,000
Management and consulting	117,093	151,215	237,343	326,601
Office and general	10,598	10,934	20,712	23,452
Payroll	1,456	28,451	5,655	57,209
Professional fees	60,821	47,590	73,643	74,090
Rent	7,262	7,107	14,369	13,983
Travel	4,417	6,809	19,709	16,611
TOTAL OPERATING EXPENSES	237,647	272,106	416,431	531,946
NET LOSS BEFORE OTHER ITEMS	(219,370)	(272,106)	(379,465)	(531,946)
OTHER ITEMS
Interest expense, net	(19,402)	(21,894)	(39,017)	(42,469)
Gain on foreign exchange	2,714	(161)	4,182	290
Unrealized gain (loss) on investment	302	1,320	2,211	(1,254)
(Loss) on debt settlement	0	0	(68,750)	0
TOTAL OTHER ITEMS	(16,386)	(20,735)	(101,374)	(43,433)
NET LOSS FROM CONTINUING OPERATIONS	(235,756)	(292,841)	(480,839)	(575,379)
DISCONTINUED OPERATIONS	0	182,167	0	182,167
TOTAL NET LOSS	$ (235,756)	$ (110,674)	$ (480,839)	$ (393,212)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net loss	$ (480,839)	$ (393,212)
Add items not affecting cash
Interest accrued	39,017	42,465
Shares for services	8,800	70,276
Unrealized (gain) loss on investments	(2,211)	1,254
Unrealized foreign exchange (gain)	(3,265)	0
Loss on debt settlement	68,750	0
Changes in non-cash working capital:
Accounts receivable, net	(2,044)	0
Deposits and other assets	(3,750)	(1,630)
Accounts payable and accrued charges	129,071	9,685
Deferred gain on sale	0	(150,000)
Wages payable	174,500	173,016
Accrued payroll taxes	0	(12,776)
Due to related parties	(5,549)	(9,598)
Net cash provided by (used in) operating activities	(77,520)	(270,520)
INVESTING ACTIVITIES
Net cash provided by investing activities	0	0
FINANCING ACTIVITIES
Proceeds from loans payable	0	145,583
Net cash (used in) financing activities	0	145,583
EFFECT OF EXCHANGE RATES ON CASH	11	55
CASH FLOWS FROM CONTINUING OPERATIONS	(77,509)	(124,882)
CASH FLOWS FROM DISCONTINUED OPERATIONS	0	150,000
NET (DECREASE) IN CASH DURING THE PERIOD	(77,509)	25,118
CASH, BEGINNING OF PERIOD	78,780	74,907
CASH, END OF PERIOD	$ 1,271	$ 100,025

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
NATURE OF OPERATIONS AND BASIS OF PRESENTATION [Text Block]	NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Alternet Systems Inc.’s (the “Company”) focus has evolved into the digital payments and data analytics, micro segmentation and marketing intelligence. The target markets include the mass consumer goods, payments, financial services and telecommunications sectors. Its vision is to be the leading digital commerce solutions provider into global markets, and its mission is to provide innovative solutions that facilitate and expedite commerce, enriching our partners and their customers’ experience, and improving efficiency. Previously, the Company provided leading edge mobile financial solutions and mobile security and related solutions with the former being offered throughout the Western Hemisphere, but most actively in Central and South America and the Caribbean, and the latter being offered globally. As detailed in Note 5, Discontinued Operations, the Company, pursuant to a transaction in Alternet Transactions Systems (“ATS Transaction”), discontinued providing mobile financial solutions and mobile security. ATS is dormant and being closed this year. The Company and its wholly owned subsidiaries, started to provide its services on a commercial basis. These services include: . Alternet Payment Solutions, LLC (“APS“) developing and deploying, retail and consumer multichannel payment mechanisms . Modernization of the electronics point of sale legacy infrastructure expanding the useful life of the electronic point of sale, and including new payment functions in the terminals, such as bill payment, electronic top-up and native payments with digital currency at the point of sale. . Data analytics tools and services for the Telecommunications and Financial Services industries. These condensed consolidated financial statements have been prepared on the basis of a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At June 30, 2016 the Company had a working capital deficiency of $2,990,950 (December 31, 2015 - $2,622,672). The Company’s continued operations are dependent on the successful implementation of its business plan, its ability to obtain additional financing as needed, continued support from creditors, settling its outstanding debts, and ultimately attaining profitable operations. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block]	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with SEC on March 31, 2016. The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained. Principles of Consolidation These condensed consolidated financial statements include the accounts of the following wholly owned subsidiaries: . Alternet Systems Inc. (“Alternet”) . AI Systems Group, Inc. . Tekvoice Communications, Inc. . Alternet Transactions Systems (“ATS”), Inc., a wholly owned subsidiary of Alternet (formerly a 51% owned subsidiary. See Note 5, Discontinued Operations) . Utiba Guatemala, S.A. . International Mobile Security, Inc. (“IMS”) . Megatecnica, S.A. . Alternet Financial Solutions, LLC (“AFS”) . Alternet Payment Solutions, LLC (“APS”) . OneMarket, Inc. All significant intercompany transactions and account balances have been eliminated. Reclassifications Certain prior period balances have been reclassified to conform with current period presentation. Changes have not impacted net losses or loss per share information. Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statement date and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, fair value of convertible notes payable and investment in digital currency. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected. Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 605, Revenue Recognition Digital Currency Transactions The Company can enter into transactions that are denominated in digital currency (Ven). These transactions result in digital currency denominated assets and liabilities that are revalued periodically. Upon revaluation, transaction gains and losses are generated and are reported as unrealized gains and losses in other items in the Consolidated Statements of Operations. The Company determines fair value as of the balance sheet date based on Level 1 inputs which consist of quoted prices in active markets. The value of the Company’s digital currency is $116,974 (December 31, 2015 – $114,763), net of $8,026 (December 31, 2015 - $10,237) of unrealized losses. Due to the uncertainty regarding the current and future accounting treatment and tax, legal and regulatory requirements relating to digital currencies or transactions utilizing digital currencies, such accounting, legal, regulatory and tax developments or other requirements may adversely affect us. Income (Loss) per Share The Company computes net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share At June 30, 2016 and December 31, 2015 the Company had no warrants or options outstanding to consider in the income (loss) per share calculations. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Revenue from Contracts with Customers (Topic 606): Indentifying Performance Obligations and Licensing, In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 740): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows.

NOTES AND OTHER LOANS PAYABLE

NOTES AND OTHER LOANS PAYABLE	6 Months Ended
	Jun. 30, 2016
NOTES AND OTHER LOANS PAYABLE [Text Block]	NOTE 3 - NOTES AND OTHER LOANS PAYABLE Other Loans Payable On October 10, 2012, the Company signed a promissory note whereby the Company agreed to repay a creditor $50,000 plus interest at 10% per annum on April 8, 2013. On April 9, 2013, the Company signed a new promissory note with the creditor which capitalized the unpaid principal and interest of $52,479 under the previous promissory note and extended the maturity date to October 6, 2013. The note was not repaid by October 6, 2013 and continues to accrue interest at the rate of 10% per annum. On January 21, 2016, the creditor elected to convert $15,000 of the outstanding balance into 2,500,000 shares of the Company’s common stock. As of June 30, 2016, the balance owing to this creditor was $54,424 (December 31, 2015 - $66,815) which includes $2,121 (December 31, 2015 - $14,335) of accrued interest. On December 5, 2012, the Company signed a promissory note whereby the Company agreed to repay a creditor $25,000 plus interest at 10% per annum on June 3, 2013. On June 3, 2013, the Company signed a new promissory note with the creditor which capitalized the unpaid principal and interest of $26,240 under the previous promissory note and extended the maturity date to December 1, 2013. The note was not repaid by December 1, 2013 and continues to accrue interest at the rate of 10% per annum. As of June 30, 2016, the balance owing to this creditor was $34,313 (December 31, 2015 - $33,005) which includes $8,073 (December 31, 2015 - $6,765) of accrued interest. On February 8, 2013, the Company signed a promissory note whereby the Company agreed to repay a creditor $100,000 plus interest at 10% per annum on August 7, 2013. This loan was not repaid on its maturity and has since been renewed several times with the unpaid principal and interest being capitalized to the loan balance on each renewal. All other terms remained the same. The loan matures on February 4, 2015. On December 2, 2014, the Company paid the creditor $72,907 of which $9,055 was applied to the accrued interest and $63,852 was applied to the principal outstanding. On January 21, 2016, the creditor elected to convert $20,000 of the outstanding balance into 5,000,000 shares of the Company’s common stock. As of June 30, 2016, the balance owing to this creditor was $33,131 (December 31, 2015- $51,323) which includes $1,123 (December 31, 2015- $5,012) of accrued interest. The note is past due and continues to accrue interest at the rate of 10% per annum. On July 24, 2014, the Company signed a promissory note whereby the Company agreed to repay a creditor $250,000 plus interest at 24% per annum on January 24, 2015. On January 25, 2015, this loan was renewed with the unpaid principal and interest of $280,411 being capitalized to the loan balance on renewal and the maturity being extended to July 6, 2015. All other terms remained the same. On August 10, 2015, the Company repaid the creditor $50,000 of which $13,677 was applied to principal and $36,323 was applied to outstanding interest. As of June 30, 2016, the balance owing to this creditor was $323,910 (December 31, 2015- $291,989) which includes $57,176 (December 31, 2015- $25,256) of accrued interest. The note is past due and continues to accrue interest at the rate of 10% per annum. On October 5, 2015, the Company signed a promissory note whereby the Company agreed to repay a creditor $7,500 plus interest at 10% per annum on April 4, 2016. As of June 30, 2016, the balance owing to this creditor was $8,055 (December 31, 2015 - $7,681) which includes $555 (December 31, 2015 - $181) of accrued interest. The note is past due and continues to accrue interest at the rate of 10% per annum. On November 20, 2015, the Company signed a promissory note whereby the Company agreed to repay a creditor $20,000 on May 18, 2016. As of June 30, 2016, the balance owing to this creditor was $21,227 (December 31, 2015 - $20,230) which includes $1,227 (December 31, 2015 - $230) of accrued interest.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2016
CAPITAL STOCK [Text Block]	NOTE 4 – CAPITAL STOCK Common Stock The Company is authorized to issue up to 500,000,000 shares of the Company’s common stock with a par value of $0.00001. During the six months ended June 30, 2016, the Company issued: • 7,500,000 common shares valued at $103,750 for the settlement of $35,000 of debt (see Note 3); and • 1,000,000 common shares valued at $8,800 for accounting services rendered. As of June 30, 2016, the Company had $505,362 (December 31, 2015 - $505,362) in private placement subscriptions which are reported as private placement subscriptions within stockholders’ deficit. The shares which were not issued as at June 30, 2016 or December 31, 2015, were not used to compute the total weighted average shares outstanding as at June 30, 2016 or December 31, 2015, respectively, and were not used in the basic net loss per share calculation. Preferred Stock The Company is authorized to issue up to 10,000,000 shares of the Company’s preferred stock with a par value of $0.00001. Income (Loss) Per Share For the three months ended June 30, 2016 and 2015, the Company had a weighted average of 116,372,647 and 107,247,919 common shares outstanding, respectively, resulting in basic and diluted net loss per common share from continuing operations of $(0.00) (June 30, 2015 - $(0.00)), basic and diluted net income per common share from discontinued operations of $0.00 (June 30, 2015 – $0.00), and basic and diluted net loss per common share of $(0.00) (June 30, 2014 - $(0.00)) . For the six months ended June 30, 2016 and 2015, the Company had a weighted average of 114,097,921 and 104,498,006 common shares outstanding, respectively, resulting in basic and diluted net loss per common share from continuing operations of $(0.00) (June 30, 2015 - $(0.01)), basic and diluted net income per common share from discontinued operations of $0.00 (June 30, 2015 – $0.00), and basic and diluted net loss per common share of $(0.00) (June 30, 2014 - $(0.00)) . Stock Options and Restricted Stock Effective July 17, 2014, the Company adopted the 2014 Equity Incentive Plan (the “Plan”) for the purpose of providing the Company with the means to compensate, in the form of common stock of the Company, directors, officer, consultants, advisors, and employees of the Company or any of its subsidiaries. The Plan was approved by the Company’s stockholders at a special meeting held on September 25, 2014. The Plan will terminate on July 17, 2024 following which no new Options or Restricted Stock can be granted under the Plan. The Company is authorized to issue a maximum 5,000,000 common shares under the Plan, which will automatically increase each time the Company issues additional shares of common stock for a maximum of 5% of the total outstanding common stock. As at June 30, 2016 and December 31, 2015, the Company had no outstanding stock options or restricted stock units.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2016
DISCONTINUED OPERATIONS [Text Block]	NOTE 5 – DISCONTINUED OPERATIONS On October 15, 2013 and as subsequently amended in its entirety on January 6, 2014, the Company, Utiba Pte. Ltd. (“Utiba”), a non-controlling interest investor in ATS, ATS, and Utiba Guatemala entered into an Asset Purchase Agreement in order to effect the sale by ATS of all of its business and assets to Utiba, as described below (the “ATS Transaction”). For such transaction to proceed, approval of the Company’s shareholder was required, which approval was obtained on February 21, 2014. Overview of the ATS Transaction and Consideration Payable 1 The sale pursuant to the Asset Purchase Agreement by ATS of substantially all of its business and assets to Utiba (including the assumption by Utiba of certain liabilities related to such business and assets), in consideration for up to $3,100,000 in cash (the "Cash Purchase Price") subject to certain adjustments related to certain net receivables or liabilities, as the case may be, and reduction to the extent of certain tax liabilities of ATS. The amount of $300,000 of the Cash Purchase Price will be held back to cover certain claims that may be made under the indemnification provisions of the Asset Purchase Agreement. 2 The entry by the Company into a non-compete covenant in favor of Utiba and its affiliates in the mobile payment, top up and mobile financial services industry for a period of 36 months, in consideration for a payment in cash on closing of the transactions contemplated by the Asset Purchase Agreement (the “Closing”) of $2,200,000. The Company recognized the full amount as income in 2014 as it did not intend to compete in this industry in the future. 3 The release by the Company of Utiba from all its obligations under the ATS Shareholders Agreement in consideration for a payment in cash on Closing of $200,000. 4 Upon Closing, Utiba shall transfer its 49% interest in ATS to the Company so that the Company will own 100% of ATS after Closing. On March 4, 2014, the ATS Transaction closed pursuant to which the Company received $4,928,036 in proceeds. An additional $667,264 was held in escrow to cover certain claims that may be made under the indemnification provisions of the Asset Purchase Agreement. During the year ended December 31, 2014, $367,264 was released. The remaining $300,000 was included in sales proceeds held back and a deferred gain on sale. Proceeds of $150,000 were received in April 2015 with the remaining balance received in September 2015. During the year ended December 31, 2015, the Company wrote off $32,167 to discontinued operations for wages payable from ATS’s operations prior to the ATS Transaction which were determined not to be payable. Additionally, the Company settled its lawsuit with Utiba for $80,000 plus the release of all amounts payable to and from to Utiba for a total of $1,055,177. As of June 30, 2016 and December 31, 2015, the associated liabilities of the consolidated ATS business have been classified as discontinued operations and are presented below June 30, December 31, 2016 2015 $ $ LIABILITIES Accounts payable and accrued charges 125,835 123,574 CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 125,835 123,574 There is no discontinued operations effect on the statement of operations for the six month periods ended June 30, 2016 and 2015

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
RELATED PARTY TRANSACTIONS [Text Block]	NOTE 6 - RELATED PARTY TRANSACTIONS As of June 30, 2016, a total of $1,120,841 (December 31, 2015 - $947,260) was payable to directors and officers of the Company, which was non-interest bearing and had no specific terms of repayment. Of the amount payable, $21,518 (December 31, 2015 - $21,840) was included in accounts payable for expense reimbursements, $1,108,709 (December 31, 2015 - $934,209) was included in wages payable for accrued fees and capitalized interest, and $(9,386) (December 31, 2015 - $(8,789)) was included in due from related parties. During the six months ended June 30, 2016, the Company expensed a total of $174,500 (June 30, 2016 - $174,500) in consulting fees and salaries paid to directors and officers of the Company. The amounts incurred have been accrued and none has been paid in cash. As of June 30, 2016, the Company owes a company with a director in common with the Company $2,368 (VEF 5,971,438) (December 31, 2015 - $6,753 ; VEF 5,971,438) which is non-interest bearing, has no specific terms of repayment, and is included in due to related parties.

OPERATING LEASES

OPERATING LEASES	6 Months Ended
	Jun. 30, 2016
OPERATING LEASES [Text Block]	NOTE 7 – OPERATING LEASES The Company leased its office facilities under a one-year lease agreement with a monthly cost of $1,800. The lease expired in March 2015 and was renewed at a monthly rate of $1,872 which expired on February 28, 2016. On February 29, 2016 the lease was further renewed for an additional year at a monthly rate of $1,944 and expired on February 28, 2017. Lease expense totaled $11,377 and $11,016 during the six months ended June 30, 2016 and 2015, respectively. The Company is required to make future minimum rental payments under the operating lease agreement of $17,568 during the 2016 fiscal year and $3,889 during the 2017 fiscal year.

SUPPLEMENTAL DISCLOSURE WITH RE

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS	6 Months Ended
	Jun. 30, 2016
SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS [Text Block]	NOTE 8 – SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Six months ended June 30, 2016 2015 $ $ Supplemental cash flow disclosures: Interest paid - 20,575 Cash paid for income taxes - - Supplemental non-cash disclosures: Shares obligated to be issued - 32,776 Shares issued for convertible debt - 379,903 Shares issued for services rendered 8,800 - Shares issued for debt settlement 103,750 -

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2016
FAIR VALUE [Text Block]	NOTE 9 – FAIR VALUE Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The fair value of the Company’s accounts receivable, due from related parties, accounts payable, other loans payable, and due to related parties approximate their carrying values. The Company’s other financial instruments, being cash and investment in digital currency, are measured at fair value using Level 1 inputs.

LAWSUITS

LAWSUITS	6 Months Ended
	Jun. 30, 2016
LAWSUITS [Text Block]	NOTE 10 – LAWSUIT In January 2014, the Company received notice of a default judgment in the amount of $39,000 plus interest entered by the State of New York related to an unpaid service agreement entered into on February 11, 2009. The Company has filed a motion to vacate the foreign judgment or in the alternative stay the enforcement. The Company, until receipt of such notice, was unaware of any such demand. No prior notice had been served to the Company or its Chief Executive Officer. On March 23, 2015, the Supreme Court of the State of New York vacated and set aside the default judgments. As of June 30, 2016, no provision for this claim has been made.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
SUBSEQUENT EVENTS [Text Block]	NOTE 11 – SUBSEQUENT EVENTS Events occurring after June 30, 2016 were evaluated through the date this Interim Report was issued, in compliance with FASB ASC Topic 855 “Subsequent Events”, to ensure that any subsequent events that met the criteria for recognition and/or disclosure in this report have been included. In July 2017, the Company completed a Share Exchange Agreement (“Agreement”) with Lithium IP Holdings Corporation (“LIP”) to acquire 100% of the outstanding LIP shares in exchange for the following share issuances to LIP’s sole shareholder (the “Exchange”): (a) issue 10,000,000 Series A preferred shares with a par value of $0.00001, and (b) issue 38,908,098 common shares of the Company with a par value of $0.00001 per share. Upon completion of the Exchange, LIP’s sole shareholder acquired 25% of the Company’s common shares and 100% of the Company’s preferred shares. Michael Viadero resigned as the Company’s Chief Financial Officer on November 30, 2016 and director on July 22, 2017. Henryk Dabrowski resigned as both the Chief Executive Officer and director on July 22, 2017.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Interim Financial Statements [Policy Text Block]	Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative of results for a full year. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with SEC on March 31, 2016. The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained.
Principles of Consolidation [Policy Text Block]	Principles of Consolidation These condensed consolidated financial statements include the accounts of the following wholly owned subsidiaries: . Alternet Systems Inc. (“Alternet”) . AI Systems Group, Inc. . Tekvoice Communications, Inc. . Alternet Transactions Systems (“ATS”), Inc., a wholly owned subsidiary of Alternet (formerly a 51% owned subsidiary. See Note 5, Discontinued Operations) . Utiba Guatemala, S.A. . International Mobile Security, Inc. (“IMS”) . Megatecnica, S.A. . Alternet Financial Solutions, LLC (“AFS”) . Alternet Payment Solutions, LLC (“APS”) . OneMarket, Inc. All significant intercompany transactions and account balances have been eliminated.
Reclassifications [Policy Text Block]	Reclassifications Certain prior period balances have been reclassified to conform with current period presentation. Changes have not impacted net losses or loss per share information.
Use of Estimates and Assumptions [Policy Text Block]	Use of Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statement date and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, fair value of convertible notes payable and investment in digital currency. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between estimates and the actual results, future results of operations will be affected.
Revenue Recognition [Policy Text Block]	Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 605, Revenue Recognition
Digital Currency Transactions [Policy Text Block]	Digital Currency Transactions The Company can enter into transactions that are denominated in digital currency (Ven). These transactions result in digital currency denominated assets and liabilities that are revalued periodically. Upon revaluation, transaction gains and losses are generated and are reported as unrealized gains and losses in other items in the Consolidated Statements of Operations. The Company determines fair value as of the balance sheet date based on Level 1 inputs which consist of quoted prices in active markets. The value of the Company’s digital currency is $116,974 (December 31, 2015 – $114,763), net of $8,026 (December 31, 2015 - $10,237) of unrealized losses. Due to the uncertainty regarding the current and future accounting treatment and tax, legal and regulatory requirements relating to digital currencies or transactions utilizing digital currencies, such accounting, legal, regulatory and tax developments or other requirements may adversely affect us.
Income (Loss) per Share [Policy Text Block]	Income (Loss) per Share The Company computes net income (loss) per share in accordance with ASC Topic 260, Earnings Per Share At June 30, 2016 and December 31, 2015 the Company had no warrants or options outstanding to consider in the income (loss) per share calculations.
Recent Accounting Pronouncements [Policy Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Revenue from Contracts with Customers (Topic 606): Indentifying Performance Obligations and Licensing, In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 740): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet [Table Text Block]	June 30, December 31, 2016 2015 $ $ LIABILITIES Accounts payable and accrued charges 125,835 123,574 CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 125,835 123,574

SUPPLEMENTAL DISCLOSURE WITH 19

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Six months ended June 30, 2016 2015 $ $ Supplemental cash flow disclosures: Interest paid - 20,575 Cash paid for income taxes - - Supplemental non-cash disclosures: Shares obligated to be issued - 32,776 Shares issued for convertible debt - 379,903 Shares issued for services rendered 8,800 - Shares issued for debt settlement 103,750 -

NATURE OF OPERATIONS AND BASI20

NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Nature Of Operations And Basis Of Presentation 1	$ 2,990,950
Nature Of Operations And Basis Of Presentation 2	$ 2,622,672

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Summary Of Significant Accounting Policies 1	51.00%
Summary Of Significant Accounting Policies 2	$ 116,974
Summary Of Significant Accounting Policies 3	114,763
Summary Of Significant Accounting Policies 4	8,026
Summary Of Significant Accounting Policies 5	$ 10,237

NOTES AND OTHER LOANS PAYABLE (

NOTES AND OTHER LOANS PAYABLE (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)shares
Notes And Other Loans Payable 1	$ 50,000
Notes And Other Loans Payable 2	10.00%
Notes And Other Loans Payable 3	$ 52,479
Notes And Other Loans Payable 4	10.00%
Notes And Other Loans Payable 5	$ 15,000
Notes And Other Loans Payable 6 | shares	2,500,000
Notes And Other Loans Payable 7	$ 54,424
Notes And Other Loans Payable 8	66,815
Notes And Other Loans Payable 9	2,121
Notes And Other Loans Payable 10	14,335
Notes And Other Loans Payable 11	$ 25,000
Notes And Other Loans Payable 12	10.00%
Notes And Other Loans Payable 13	$ 26,240
Notes And Other Loans Payable 14	10.00%
Notes And Other Loans Payable 15	$ 34,313
Notes And Other Loans Payable 16	33,005
Notes And Other Loans Payable 17	8,073
Notes And Other Loans Payable 18	6,765
Notes And Other Loans Payable 19	$ 100,000
Notes And Other Loans Payable 20	10.00%
Notes And Other Loans Payable 21	$ 72,907
Notes And Other Loans Payable 22	9,055
Notes And Other Loans Payable 23	63,852
Notes And Other Loans Payable 24	$ 20,000
Notes And Other Loans Payable 25 | shares	5,000,000
Notes And Other Loans Payable 26	$ 33,131
Notes And Other Loans Payable 27	51,323
Notes And Other Loans Payable 28	1,123
Notes And Other Loans Payable 29	$ 5,012
Notes And Other Loans Payable 30	10.00%
Notes And Other Loans Payable 31	$ 250,000
Notes And Other Loans Payable 32	24.00%
Notes And Other Loans Payable 33	$ 280,411
Notes And Other Loans Payable 34	50,000
Notes And Other Loans Payable 35	13,677
Notes And Other Loans Payable 36	36,323
Notes And Other Loans Payable 37	323,910
Notes And Other Loans Payable 38	291,989
Notes And Other Loans Payable 39	57,176
Notes And Other Loans Payable 40	$ 25,256
Notes And Other Loans Payable 41	10.00%
Notes And Other Loans Payable 42	$ 7,500
Notes And Other Loans Payable 43	10.00%
Notes And Other Loans Payable 44	$ 8,055
Notes And Other Loans Payable 45	7,681
Notes And Other Loans Payable 46	555
Notes And Other Loans Payable 47	$ 181
Notes And Other Loans Payable 48	10.00%
Notes And Other Loans Payable 49	$ 20,000
Notes And Other Loans Payable 50	21,227
Notes And Other Loans Payable 51	20,230
Notes And Other Loans Payable 52	1,227
Notes And Other Loans Payable 53	$ 230

CAPITAL STOCK (Narrative) (Deta

CAPITAL STOCK (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)shares
Capital Stock 1 | shares	500,000,000
Capital Stock 2	$ 0.00001
Capital Stock 3 | shares	7,500,000
Capital Stock 4	$ 103,750
Capital Stock 5	$ 35,000
Capital Stock 6 | shares	1,000,000
Capital Stock 7	$ 8,800
Capital Stock 8	505,362
Capital Stock 9	$ 505,362
Capital Stock 10 | shares	10,000,000
Capital Stock 11	$ 0.00001
Capital Stock 12	116,372,647
Capital Stock 13 | shares	107,247,919
Capital Stock 14	$ 0
Capital Stock 15	0
Capital Stock 16	0
Capital Stock 17	0
Capital Stock 18	0
Capital Stock 19	$ 0
Capital Stock 20	114,097,921
Capital Stock 21 | shares	104,498,006
Capital Stock 22	$ 0
Capital Stock 23	(0.01)
Capital Stock 24	0
Capital Stock 25	0
Capital Stock 26	0
Capital Stock 27	$ 0
Capital Stock 28 | shares	5,000,000
Capital Stock 29	5.00%

DISCONTINUED OPERATIONS (Narrat

DISCONTINUED OPERATIONS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)mo
Discontinued Operations 1	$ 3,100,000
Discontinued Operations 2	$ 300,000
Discontinued Operations 3 | mo	36
Discontinued Operations 4	$ 2,200,000
Discontinued Operations 5	$ 200,000
Discontinued Operations 6	49.00%
Discontinued Operations 7	100.00%
Discontinued Operations 8	$ 4,928,036
Discontinued Operations 9	667,264
Discontinued Operations 10	367,264
Discontinued Operations 11	300,000
Discontinued Operations 12	150,000
Discontinued Operations 13	32,167
Discontinued Operations 14	80,000
Discontinued Operations 15	$ 1,055,177

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Related Party Transactions 1	$ 1,120,841
Related Party Transactions 2	947,260
Related Party Transactions 3	21,518
Related Party Transactions 4	21,840
Related Party Transactions 5	1,108,709
Related Party Transactions 6	934,209
Related Party Transactions 7	(9,386)
Related Party Transactions 8	(8,789)
Related Party Transactions 9	174,500
Related Party Transactions 10	174,500
Related Party Transactions 11	$ 2,368
Related Party Transactions 12	5,971,438
Related Party Transactions 13	$ 6,753
Related Party Transactions 14	5,971,438

OPERATING LEASES (Narrative) (D

OPERATING LEASES (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Operating Leases 1	$ 1,800
Operating Leases 2	1,872
Operating Leases 3	1,944
Operating Leases 4	11,377
Operating Leases 5	11,016
Operating Leases 6	17,568
Operating Leases 7	$ 3,889

LAWSUITS (Narrative) (Details)

LAWSUITS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Lawsuits 1	$ 39,000

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Subsequent Events 1	100.00%
Subsequent Events 2	10,000,000
Subsequent Events 3 | $	$ 0.00001
Subsequent Events 4 | shares	38,908,098
Subsequent Events 5 | $ / shares	$ 0.00001
Subsequent Events 6	25.00%
Subsequent Events 7	100.00%

Schedule of Disposal Groups, In

Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Discontinued Operations Schedule Of Disposal Groups, Including Discontinued Operations, Balance Sheet 1	$ 125,835
Discontinued Operations Schedule Of Disposal Groups, Including Discontinued Operations, Balance Sheet 2	123,574
Discontinued Operations Schedule Of Disposal Groups, Including Discontinued Operations, Balance Sheet 3	125,835
Discontinued Operations Schedule Of Disposal Groups, Including Discontinued Operations, Balance Sheet 4	$ 123,574

Schedule of Cash Flow, Suppleme

Schedule of Cash Flow, Supplemental Disclosures (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 1	$ 0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 2	20,575
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 3	0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 4	0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 5	0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 6	32,776
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 7	0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 8	379,903
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 9	8,800
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 10	0
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 11	103,750
Supplemental Disclosure With Respect To Cash Flows Schedule Of Cash Flow, Supplemental Disclosures 12	$ 0