Alternet Systems Inc (ALYI)

[alexbh2285]

Massive stock dilution is what would be seen by anyone doing due diligence on their operations. Revenue and expenses are not balance sheet items. They are income statement items. If they held financial derivatives they would have been on the balance sheet which is why I interpreted your comment on "balance sheet derivatives" in that manner. In the last quarter and over the last year revenues (but from data analytics consulting in Peru and Columbia - not from any business they talk about being in) increased but most of this, even revenue from several quarters ago, did not convert to cash - that is a red flag - not necessarily an improvement! Expenses have been static and higher than revenues during the quarter and the expense decreases over time have been from a reduction in consulting expenses - my theory is that they are re-selling consulting at a loss either to pay a related party or to generate revenues as consulting has been the only source of revenues and even a larger source of losses historically. Shares outstanding went from 218MM to 275MM during the last quarter and from 137MM to 275MM over the last year (see Note 8 in both quarterlies) - a dilution of 100% with minimal improvement in the balance sheet!