CAPITAL STOCK

6 Months Ended

Jun. 30, 2015

NOTE 7 – CAPITAL STOCK

On September 25, 2014 the Company‘s Shareholders approved amending the Company’s Articles of Incorporation to increase its authorized capital stock to 510,000,000 shares of which 500,000,000 shared are common stock and 10,000,000 shares are preferred stock. The Company’s Articles were amended effective October 23, 2014.

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, 2015, the Company:

	•	issued 3,675,868 common shares valued at $110,276 for legal, accounting, and consulting services rendered; and
	•	issued 5,065,372 common shares valued at $379,903 for the repayment of convertible debt (see Note 5).

During the year ended December 31, 2014, the Company:

	•	issued 1,250,000 common shares valued at $125,000 for share subscription;
	•	issued 2,495,666 common shares valued at $252,717 for legal, consulting, and investor relations services rendered;
	•	issued 1,000,000 common shares valued at $80,000 for consulting services to be rendered over a twelve month period which were included in deferred compensation (see Note 10); and
	•	cancelled 1,000,000 common shares valued at $50,000 previously issued for investor relations to be released upon achieving certain benchmarks which were included in deferred compensation (see Note 10).

As of June 30, 2015, the Company had $505,362 (December 31, 2014 - $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, 2015 or 2014 were not used to compute the total weighted average shares outstanding as at June 30, 2015 or 2014, respectively, and were thus 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, 2015 and 2014, the Company had a weighted average of 107,247,919 and 96,894,029 common shares outstanding, respectively, resulting in basic and diluted net and comprehensive loss per common share from continuing operations of $(0.00) (June 30, 2014 - $(0.00)), basic and diluted net and comprehensive income (loss) per common share from discontinued operations of $0.00 (June 30, 2014 – $0.00), and basic and diluted net and comprehensive loss per common share of $(0.00) (June 30, 2014 - $0.00) .

For the six months ended June 30, 2015 and 2014, the Company had a weighted average of 104,498,006 and 96,569,162 common shares outstanding, respectively, resulting in basic and diluted net and comprehensive loss per common share from continuing operations of $(0.01) (June 30, 2014 - $(0.01)), basic and diluted net and comprehensive income (loss) per common share from discontinued operations of $0.00 (June 30, 2014 – $0.03), and basic and diluted net and comprehensive income (loss) per common share of $(0.00) (June 30, 2014 - $0.02) .

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, 2015, the Company had no outstanding stock options or restricted stock units.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

ALTERNET SYSTEMS INC 10-Q