Alternet : 12/31/2021 Yearly Disclosure Statement

Disclosure Statement Pursuant to the Pink Basic Disclosure Guidelines

ALTERNET SYSTEMS, INC

5057 Keller Springs Road - Suite #300

Addison, Texas 75001

1(800)713-0297

https://www.otc-alyi.com

[e-mail]

7380 - Miscellaneous Services

Yearly Report

For the Period Ending: 12/31/2021

(the "Reporting Period")

As of 12/31/2021, the number of shares outstanding of our Common Stock was: 2,609,075,328

As of 09/30/2021, the number of shares outstanding of our Common Stock was: 2,448,390,082

As of 12/31/2020, the number of shares outstanding of our Common Stock was: 1,620,672,390

Indicate by check mark whether the company is a shell company (as defined in Rule 405 of the Securities Act of 1933 and Rule 12b-2 of the Exchange Act of 1934):

Yes: ☐

No: ☒

Indicate by check mark whether the company's shell status has changed since the previous reporting period:Yes: ☐

No: ☒

Indicate by check mark whether a Change in Control1 of the company has occurred over this reporting period:

1 "Change in Control" shall mean any events resulting in:

(i) Any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becoming the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities;

• (ii) The consummation of the sale or disposition by the Company of all or substantially all of the Company's assets;

• (iii) A change in the composition of the Board occurring within a two (2)-year period, as a result of which fewer than a majority of the directors are directors immediately prior to such change; or

(iv) The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the

Yes: ☐ 1)

No: ☒

Name and address(es) of the issuer and its predecessors (if any)

In answering this item, provide the current name of the issuer any names used by predecessor entities, along with the dates of the name changes.

The Company's name was changed to Alternet Systems, Inc. on 05/14/2002 (f/k/a) Schoolweb Systems, Inc. 12/20/2001 (f/k/a) North Pacific Corporation, Inc. 06/26/2000.

The state of incorporation or registration of the issuer and of each of its predecessors (if any) during the past five years; Please also include the issuer's current standing in its state of incorporation (e.g. active, default, inactive):

June 26, 2000 - Nevada to 06/10/2020 - Wyoming - Active (Good)

Describe any trading suspension orders issued by the SEC concerning the issuer or its predecessors since inception:

None

List any stock split, stock dividend, recapitalization, merger, acquisition, spin-off, or reorganization either currently anticipated or that occurred within the past 12 months:

None

The address(es) of the issuer's principal executive office:

5057 Keller Springs Road - Suite #300

Addison, Texas 75001

The address(es) of the issuer's principal place of business:

Check box if principal executive office and principal place of business are the same address: ☒

Same

Has the issuer or any of its predecessors been in bankruptcy, receivership, or any similar proceeding in the past five years?

Yes: ☐

No: ☒

If this issuer or any of its predecessors have been the subject of such proceedings, please provide additional details in the space below:

N/A

2)Security Information

Trading symbol:

ALYI

Exact title and class of securities outstanding:

COMMON & PREFERRED "A"

surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

CUSIP:	02146M201
Par or stated value:	$0.00001
Total shares authorized:	3,500,000,000/10,000,000
Total shares outstanding:	2,609,075,328
Number of shares in the Public Float2:	2,587,955,611
Total number of shareholders of record:	112
Transfer Agent

• as of date: 12/31/2021

• as of date: 12/31/2021

• as of date: 12/31/2021

• as of date: 12/31/2021

Name:	Transfer Online, Inc.
Phone:	[phone]
Email:	[e-mail]
Address:	512 SE Salmon Street
Portland, Oregon 97214

Is the Transfer Agent registered under the Exchange Act?3 Yes: ☒

No: ☐

3)Issuance History

The goal of this section is to provide disclosure with respect to each event that resulted in any direct changes to the total shares outstanding of any class of the issuer's securities in the past two completed fiscal years and any subsequent interim period.

Disclosure under this item shall include, in chronological order, all offerings and issuances of securities, including debt convertible into equity securities, whether private or public, and all shares, or any other securities or options to acquire such securities, issued for services. Using the tabular format below, please describe these events.

A. Changes to the Number of Outstanding Shares

Check this box to indicate there were no changes to the number of outstanding shares within the past two completed fiscal years and any subsequent periods: ☐

Shares Outstanding as of Second Most Recent Fiscal Year End:

Opening Balance

Date 01/01/2019 Common: 248,690,001 Preferred: 10,000,000

Date of TransactionTransaction type (e.g. new issuance, cancellation, shares returned to treasury)Number of Shares Issued (or cancelled)Class of Securities

*Right-click the rows below and select "Insert" to add rows as needed.

Value of shares issued ($/per share) at IssuanceWere the share s issue d at a disco unt toIndividual/ Entity Shares were issued to (entities must have individual with voting / investmentReason for share issuance (e.g. for cash or debt conversion) -OR-Nature ofRestricted or Unrestricted as of this filing.

Exempti on or Registrat ion Type.

2 "Public Float" shall mean the total number of unrestricted shares not held directly or indirectly by an officer, director, any person who is the beneficial owner of more than 10 percent of the total shares outstanding (a "control person"), or any affiliates thereof, or any immediate family members of officers, directors and control persons.

3 To be included in the Pink Current Information tier, the transfer agent must be registered under the Exchange Act.

marke t price at the time of issua nce? (Yes/ No)	control disclosed).	Services Provided
02/19/2019	NewIssue	20,000,000	Common	$0.005	Yes	Istvan Elek	Debt Conversion	Unrestricted	4a1
02/22/2019	NewIssue	20,000,000	Common	$0.005	Yes	Blue Citi LLC (Rob Malin)	Debt Conversion	Unrestricted	4a1
02/28/2019	NewIssue	16,906,850	Common	$0.002	Yes	Glenwood Partners LP (Glenn Bagwell)	Debt Conversion	Unrestricted	4a1
Shares Outstanding on Date of This Report: Ending Balance: Date 12/31/2021 Common: 2,609,075,328 Preferred: 10,000,000

Example: A company with a fiscal year end of December 31st, in addressing this item for its quarter ended September 30, 2020, would include any events that resulted in changes to any class of its outstanding shares from the period beginning on January 1, 2018 through September 30, 2020 pursuant to the tabular format above.

Use the space below to provide any additional details, including footnotes to the table above:

04/18/2019 - NewIssue - 20,000,000 - Common - $0.005 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion -

Unrestricted - 4a1

05/08/2019 - NewIssue - 20,000,000 - Common - $0.005 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion -

Unrestricted - 4a1

05/21/2019 - NewIssue - 4,800,000 - Common - $0.005 - Yes - Carol Anne Wilson - Debt Settlement - Unrestricted -

4a1

06/05/2019 - NewIssue - 9,800,000 - Common - $0.005 - Yes - Istvan Elek - Debt Conversion - Unrestricted - 4a1

06/18/2019 - NewIssue - 31,000,000 - Common - $0.005 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion -

Unrestricted - 4a1

09/06/2019 - NewIssue - 20,000,000 - Common - $0.0025 - Yes - Istvan Elek - Debt Conversion - Unrestricted - 144

10/17/2019 - NewIssue - 37,930,800 - Common - $0.0025 - Yes - Blue Citi LLC (Rob Malin) - Debt Settlement -

Unrestricted - 144

11/11/2019 - NewIssue - 30,000,000 - Common - $0.0025 - Yes - Thilo Dunker - Debt Conversion - Unrestricted - 144

12/18/2019 - NewIssue - 30,000,000 - Common - $0.0025 - Yes - Thilo Dunker - Debt Conversion - Unrestricted - 144 12/20/2019 - NewIssue - 30,000,000 - Common - $0.0025 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 144

01/15/2020 - NewIssue - 44,000,000 - Common - $0.0025 - Yes - Thilo Dunker - Debt Settlement - Unrestricted - 144 02/28/2020 - NewIssue - 16,000,000 - Common - $0.0025 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

06/24/2020 - NewIssue - 30,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

06/30/2020 - NewIssue - 30,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

07/06/2020 - NewIssue - 30,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

07/07/2020 - NewIssue - 30,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

07/10/2020 - NewIssue - 30,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

07/13/2020 - NewIssue - 21,298,630 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

07/15/2020 - NewIssue - 82,500,000 - Common - $0.001 - Yes - JDT Trading, LLC (Jim D. Tilton, Jr.) - Debt Conversion - Unrestricted - 4a1

07/22/2020 - NewIssue - 40,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

08/06/2020 - NewIssue - 57,000,000 - Common - $0.001 - Yes - JDT Trading, LLC (Jim D. Tilton, Jr.) - Debt Conversion - Unrestricted - 4a1

08/24/2020 - NewIssue - 45,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

08/27/2020 - NewIssue - 50,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

08/28/2020 - NewIssue - 55,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

09/02/2020 - NewIssue - 55,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1

09/04/2020 - NewIssue - 40,854,621 - Common - $0.001 - Yes - Istvan Elek Revocable Trust (Istvan Elek) - Debt Settlement - Unrestricted - 4a1

09/09/2020 - NewIssue - 44,462,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Settlement - Unrestricted - 4a1

09/22/2020 - NewIssue - 50,000,000 - Common - $0.001 - Yes - Blue Citi LLC (Rob Malin) - Debt Conversion - Unrestricted - 4a1