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      &lt;b&gt;
        &lt;u&gt;NOTE 1 &amp;#8211; NATURE OF OPERATIONS AND BASIS OF PRESENTATION&lt;/u&gt;
      &lt;/b&gt;
    &lt;/p&gt;
    &lt;p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"&gt;Alternet Systems Inc., through its subsidiaries (&amp;#8220;Alternet&amp;#8221; or the &amp;#8220;Company&amp;#8221;), provides leading edge mobile financial solutions and mobile security and related solutions. The former are offered throughout the Western Hemisphere, but most actively in Central and South America and the Caribbean, and the latter are offered globally.&lt;/p&gt;
    &lt;p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"&gt;
      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, 2013, the Company had a working capital deficiency of $5,287,539. The Company&amp;#8217;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.
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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 275

 -SubTopic 10

 -Section 50

 -Paragraph 2

 -URI http://asc.fasb.org/extlink&amp;oid=6927468&amp;loc=d3e6003-108592



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