Sito Mobile (SITOQ) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SITO MOBILE, LTD.
Entity Central Index Key	1,157,817
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,377,520

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 1,682,785	$ 2,615,184
Accounts receivable, net	8,819,725	6,167,816
Other prepaid expenses	91,055	123,692
Total current assets	10,593,565	8,906,692
Property and equipment, net	492,010	585,356
Other assets
Capitalized software development costs, net	1,846,330	1,600,813
Intangible assets:
Patents	406,546	445,473
Patent applications cost	928,969	897,087
Other intangible assets, net	1,574,507	1,714,477
Goodwill	6,444,225	6,444,225
Deferred loan costs, net	56,520	78,116
Other assets including security deposits	108,938	84,829
Total other assets	11,366,035	11,265,020
Total assets	22,451,610	20,757,068
Current liabilities
Accounts payable	6,837,561	4,828,600
Accrued expenses	1,795,234	1,277,896
Deferred revenue	563,976	532,909
Current obligations under capital lease	3,320	11,699
Note payable, net - current portion	2,068,450	3,984,219
Total current liabilities	11,268,541	10,635,323
Long-term liabilities
Obligations under capital lease	4,510	6,201
Note payable	5,315,989	4,934,966
Total long-term liabilities	5,320,499	4,941,167
Total liabilities	16,589,040	15,576,490
Commitments and contingencies - See notes 17
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 17,357,520 shares issued and outstanding as of June 30, 2016 and $.001 par value; 300,000,000 shares authorized, 17,157,520 shares issued and outstanding as of December 31, 2015	17,356	17,156
Additional paid-in capital	145,665,480	144,538,247
Accumulated deficit	(139,820,266)	(139,374,825)
Total stockholders' equity	5,862,570	5,180,578
Total liabilities and stockholders' equity	$ 22,451,610	$ 20,757,068

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	300,000,000
Common stock, shares issued	17,357,520	17,157,520
Common stock, shares outstanding	17,357,520	17,157,520

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue
Media placement	$ 8,297,880	$ 2,154,030	$ 13,159,380	$ 3,781,530
Wireless applications	1,454,428	1,387,313	2,945,078	3,391,629
Licensing and royalties	125,946	139,535	261,365	274,539
Total revenue	9,878,254	3,680,878	16,365,823	7,447,698
Costs and Expenses
Cost of revenue	4,430,522	1,807,237	7,487,118	3,423,210
Sales and marketing	2,662,886	905,285	4,762,905	1,781,574
General and administrative	1,454,056	1,474,156	3,351,324	2,638,908
Depreciation and amortization	160,444	77,361	324,804	145,442
Total costs and expenses	8,707,908	4,264,039	15,926,151	7,989,134
Income (loss) from operations	1,170,346	(583,161)	439,672	(541,436)
Other Income (Expense)
Interest income				54,323
Interest expense	(445,091)	(454,199)	(885,113)	(888,758)
Net income (loss) before income taxes	725,255	(1,037,360)	(445,441)	(1,375,871)
Provision for income taxes
Net income (loss)	$ 725,255	$ (1,037,360)	$ (445,441)	$ (1,375,871)
Basic earnings (loss) per share	$ 0.04	$ (0.07)	$ (0.02)	$ (0.09)
Basic weighted average shares outstanding	17,355,478	15,404,817	17,288,445	15,385,645
Diluted earnings (loss) per share	$ 0.04
Diluted weighted average shares outstanding	19,831,509

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2014	$ 3,076,222	$ 15,335	$ 138,006,669	$ (134,945,782)
Beginning balance, shares at Dec. 31, 2014		15,334,817
Shares issued on exercise of stock warrants	2,109,055	$ 834	2,108,221
Shares issued on exercise of stock warrants, shares		833,700
Shares issued for payment of services	210,000	$ 70	209,930
Shares issued for payment of services, shares		70,000
Effect of reverse stock split	138,013		138,013
Effect of reverse stock split, shares		2,042
Additional shares issued in acquisition of DoubleVision	1,067,044	$ 296	1,066,748
Additional shares issued in acquisition of DoubleVision, shares		296,401
Additional shares issued in acquisition of intangible assets	2,544,297	$ 621	2,543,676
Additional shares issued in acquisition of intangible assets, shares		620,560
Compensation recognized on option grants	539,990		539,990
Stock issuance costs	(75,000)		(75,000)
Net loss	(4,429,043)			(4,429,043)
Ending balance at Dec. 31, 2015	5,180,578	$ 17,156	144,538,247	(139,374,825)
Ending balance, shares at Dec. 31, 2015		17,157,520
Compensation recognized on option grants	559,443		559,433
Issuance of stock for restructuring of debt	568,000	$ 200	567,800
Issuance of stock for restructuring of debt, shares		200,000
Net loss	(445,441)			(445,441)
Ending balance at Jun. 30, 2016	$ 5,862,570	$ 17,356	$ 145,665,480	$ (139,820,266)
Ending balance, shares at Jun. 30, 2016		17,357,520

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities
Net income (loss)	$ 725,255	$ (1,037,360)	$ (445,441)	$ (1,375,871)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense	43,263	35,419	86,715	60,548
Amortization expense - software development costs	271,199	175,001	523,693	326,412
Amortization expense - patents	49,431	43,645	98,119	84,894
Amortization expense - discount of debt	198,910	152,585	369,986	292,965
Amortization expense - deferred costs	9,432	13,334	21,596	25,600
Amortization expense - intangible assets	67,750		139,970
Provision for bad debt	95,005		346,877	5,500
Loss on disposition of assets			4,631
Stock based compensation	185,931	147,299	559,433	297,265
Changes in operating assets and liabilities:
(Increase) in accounts receivable, net	(2,675,931)	(794,502)	(2,998,787)	(823,343)
Decrease (increase) in prepaid expenses	42,649	(134,215)	32,638	(104,682)
(Increase) decrease in other assets	(10,794)	(250)	(9,964)	370
Increase (decrease) in accounts payable	1,375,634	(1,032,077)	2,007,472	(596,517)
Increase (decrease) in accrued expenses	234,611	129,690	517,340	(33,818)
Increase in deferred revenue	249,054	308,669	31,067	123,559
Increase in accrued interest	60,474	83,513	129,935	163,622
Net cash provided by (used in) operating activities	921,873	(1,909,249)	1,415,280	(1,553,495)
Cash Flows from Investing Activities
Patents and patent applications costs	(41,449)	(74,148)	(91,074)	(199,572)
Purchase of property and equipment	(9,852)	(225,000)	(12,147)	(332,321)
Capitalized software development costs	(342,673)	(340,350)	(769,210)	(656,245)
Net cash used in investing activities	(393,974)	(639,498)	(872,431)	(1,188,138)
Cash Flows from Financing Activities
Proceeds from issuance of common stock				50,000
Restructuring of debt			(100,000)
Principal reduction on obligation under capital lease	(3,564)	(4,911)	(8,580)	(9,788)
Principal reduction on repayment of debt	(525,000)		(1,366,668)
Repayments on related party loans		525,000
Net cash (used in) provided by financing activities	(528,564)	520,089	(1,475,248)	40,212
Net decrease in cash and cash equivalents	(665)	(2,028,658)	(932,399)	(2,701,421)
Cash and cash equivalents - beginning of period	1,683,450	4,815,907	2,615,184	5,488,672
Cash and cash equivalents - ending of period	1,682,785	2,787,251	1,682,785	2,787,251
Supplemental Information:
Interest expense paid	115,812	204,685	297,657	406,566
Income taxes paid	$ 17,729	$ 4,600	$ 17,729	$ 4,600

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Non-cash investing and financing activities:
Recognized stock-based compensation expense			$ 559,433
Share based compensation, number of common stock option vested			120,000
Common stock price per share		$ 3.40		$ 3.40
Issued number of common stock, shares
Aggregate amount of common stock issued				$ 50,000
Stock issued for exchange of consulting services, shares				35,000
Stock issued for exchange of consulting services				$ 119,000
Common Stock [Member]
Non-cash investing and financing activities:
Common stock price per share		$ 2.60		$ 2.60
Stock issued for exchange of consulting services, shares				35,000
Stock issued for exchange of consulting services				$ 91,000
Common Stock [Member] | Double Vision Networks Inc. [Member]
Non-cash investing and financing activities:
Common stock price per share		$ 3.60		$ 3.60
Noncash acquisition, Description				Issue additional shares of the Company's common stock to the former DoubleVision shareholders if the Company's media placement revenues for the twelve-month period from August 1, 2014 to July 31, 2015 are at least $3,000,000, subject to certain conditions such as receipt of customer payments and achievement of a gross margin threshold.
Issued number of common stock, shares				296,402
Aggregate amount of common stock issued				$ 1,067,044
Placement revenues				$ 3,000,000
Common Stock [Member] | Fortress Credit Co LLC [Member]
Non-cash investing and financing activities:
Common stock price per share	$ 2.84		$ 2.84
Issued number of common stock, shares			200,000
Aggregate amount of common stock issued			$ 568,000

Organization, History and Busin

Organization, History and Business	6 Months Ended
	Jun. 30, 2016
Organization, History and Business [Abstract]
Organization, History and Business	1. Organization, History and Business SITO Mobile, Ltd. (“the Company”) was incorporated in Delaware on May 31, 2000, under its original name, Hosting Site Network, Inc. On May 12, 2008, the Company changed its name to Single Touch Systems, Inc. and on September 26, 2014, it changed its name to SITO Mobile, Ltd. The Company provides a mobile engagement platform that enables brands to increase awareness, loyalty, and ultimately sales. Amendments to Articles of Incorporation or Bylaws On March 1, 2016, the Company amended its Certificate of Incorporation to reduce the number of authorized shares of common stock from 300,000,000 to 100,000,000 shares. Change in Fiscal Year On May 5, 2016, the Company elected to transition from a September 30 year-end to a December 31 year-end effective immediately.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Our consolidated financial statements include our accounts, as well as those of our wholly-owned subsidiaries. Our accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by U.S. GAAP for complete financial statements. The consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring natures. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to the consolidated financial statements contained in our Annual Report on Form 10-K/A for the year ended September 30, 2015 and the audited financial statements and notes to the consolidated financial statements contained in our Transition Report on Form 10-KT for the transition period from September 30, 2015 to December 31, 2015. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three months and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for any other interim period or for the year ending December 31, 2016. Reclassification Principles of Consolidation The accompanying consolidated financial statements include the accounts of SITO Mobile, Ltd. and it’s wholly-owned subsidiaries, SITO Mobile Solutions Inc., SITO Mobile R&D IP, LLC, SITO Mobile Media Inc. and DoubleVision Networks Inc. (“DoubleVision”). Intercompany transactions and balances have been eliminated in consolidation. Cash and Cash Equivalents The Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less. Accounts Receivable, net Accounts receivable are reported at the customers’ outstanding balances, less any allowance for doubtful accounts. Interest is not accrued on overdue accounts receivable. Allowance for Doubtful Accounts An allowance for doubtful accounts on accounts receivable is charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. Property and Equipment, net Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs that do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Depreciation is computed on the straight-line and accelerated methods for financial reporting and income tax reporting purposes based upon the following estimated useful lives: Software development 2- 3 years Equipment and computer hardware 5 years Office furniture 7 years Leasehold Improvements 5 years Long-Lived Assets The Company accounts for its long-lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. Capitalized Software Development Costs The Company accounts for costs incurred to develop or purchase computer software for internal use in accordance with ASC Topic 350-40 “Internal-Use Software.” As required by ASC 350-40, the Company capitalizes the costs incurred during the application development stage, which include costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary project stage along with post-implementation stages of internal use computer software are expensed as incurred. Capitalized development costs are amortized over a period of two to three years. Costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Capital Leases Assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the leased assets. The assets are depreciated over the lower of their related lease terms or their estimated productive lives. Depreciation of the assets under capital leases is included in depreciation expense. Debt issuance costs Deferred debt issuance costs are amortized using the effective interest method over the related term of the debt and are presented on the balance sheet as a direct deduction from the debt liability. The amortization of deferred debt issuance costs is included in interest expense. Income Taxes The Company accounts for its income taxes under the provisions of ASC Topic 740, “Income Taxes.” The method of accounting for income taxes under ASC 740 is an asset and liability method. The asset and liability method requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. The Company had no material unrecognized income tax assets or liabilities for the six months ended June 30, 2016 or for the six months ended June 30, 2015. The Company recognizes income tax interest and penalties as a separately identified component of general and administrative expense. Issuances Involving Non-cash Consideration All issuances of the Company’s stock for non-cash consideration have been assigned a dollar amount equaling the market value of the shares issued on the date the shares were issued for such services and property. The non-cash consideration paid pertains to consulting services, the acquisition of a software license, the acquisition of DoubleVision Networks Inc. and assets purchased from Hipcricket, Inc. Revenue Recognition The Company recognizes media placement revenue based on the activity of mobile users viewing ads through developer applications and mobile websites. Media placement revenues are recognized when the Company’s advertising services are delivered based on the specific terms of the advertising contract, which are commonly based on the number of ads delivered, or views, clicks or actions by users on mobile advertisements. At such time, the Company’s services have been provided, the fees charged are fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. The Company evaluates whether it is appropriate to recognize media placement revenue based on the gross amount billed to the customers or the net amount earned as revenue. When the Company is primarily obligated in a transaction, has latitude in establishing prices, is responsible for fulfillment of the transaction, has credit risk, or has several but not all of these indicators, revenue is recorded on a gross basis. While none of the factors individually are considered presumptive or determinative, in reaching conclusions on gross versus net revenue recognition, the Company places the most weight on the analysis of whether or not it is the primary obligor in the arrangement. The Company records the net amounts as media placement revenue earned if it is not primarily obligated or does not have latitude in establishing prices or credit risk. The Company recognizes wireless applications revenue based on the delivery of Short Message Service (SMS) text messages and voice messages and messaging program management services. Wireless applications revenues are recognized when the Company’s services are delivered based on the specific terms of the Company’s contracts with customers, which are commonly based on the number of messages delivered. At such time, the Company’s services have been provided, the fees charged are fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. In general, licensing and royalty revenue arrangements provide for the payment of contractually determined fees in consideration for the patented technologies owned by or controlled by the Company’s operating subsidiary. The intellectual property rights granted may be perpetual in nature, extending until the expiration of the related patents, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. Pursuant to the terms of these agreements, the Company’s operating subsidiary may have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s operating subsidiary’s part to maintain or upgrade the technology, or provide future support or services Generally, the agreements provide for the grant of licenses, covenants-not-to-sue, releases, and other significant deliverables upon the execution of the agreement, or upon the receipt off the minimum upfront payment for term agreement renewals. As such, when the Company has no further obligation under the agreement, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectability is reasonably assured, or upon receipt of the minimum upfront fee for term agreement renewals, and when all the other revenue recognition criteria have been met, otherwise the Company recognizes revenue on a straight-line basis over the life of the agreement based on the contractually determined fees. Deferred revenue arises as a result of differences between the timing of revenue recognition and receipt of cash from the Company’s customers. Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The Financial Accounting Standards Board (“FASB”) also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. The Company records compensation expense based on the fair value of the award at the reporting date. The value of the stock-based award is determined using the Binomial option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. Earnings (Loss) per Share The Company reports earnings (loss) per share in accordance with ASC Topic 260-10, "Earnings per Share." Basic earnings (loss) per share are computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted earnings per share has been presented for the three months ended June 30, 2016 due to the Company’s net income position for the three months ended June 30, 2016. Concentrations of Credit Risk The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. Of the Company’s revenue earned during the six months ended June 30, 2016, approximately 17% was generated from contracts with six customers covered under the Company’s master services agreement with AT&T and approximately 15% was generated from contracts with an advertising agency. Of the Company’s revenue earned during the six months ended June 30, 2015, approximately 44% was generated from contracts with seven customers covered under the Company’s master services agreement with AT&T. The Company’s accounts receivable is typically unsecured and are derived from U.S. customers in different industries. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management’s expectations. As of June 30, 2016 and 2015, two customers accounted for 27% and 48%, respectively, of the Company’s net accounts receivable balance, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Business Combinations The Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. The Company expenses all costs as incurred related to an acquisition under general and administrative in the consolidated statements of operations. Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The updated standard is effective for the Company beginning on October 1, 2017 with early application permitted as of the beginning of any interim or annual reporting period. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In January 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) “ASU 2016 – 01 Recognition and Measurement of Financial Assets and Financial Liabilities” which changes requirements for the presentation and measurement of equity investments at fair value. The updated standard is effective for the Company beginning after December 15, 2017, including interim periods within that fiscal year. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In February 2016, the FASB issued “ASU 2016 – 01 Leases” which requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The updated standard is effective for the Company on December 15, 2018. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In March 2016, the FASB issued “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” which simplifies the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity of liabilities, and the classification on the statement of cash flows. The updated standard is effective beginning after December 15, 2016 and interim periods within this annual period. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In April 2016, the FASB issued “ASU 2016 – 10 Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing” which clarifies the topics of identifying performance obligations and licensing implementation guidance, while including implementation guidance. This updated standard affects “ASU 2014-09 Revenue from Contracts with Customers (Topic 606)” which is not yet effective. The Company does not expect that this standard will have a material effect on its consolidated financial statements.

Accounts Receivable, net

Accounts Receivable, net	6 Months Ended
	Jun. 30, 2016
Accounts Receivable, net [Abstract]
Accounts Receivable, net	3. Accounts Receivable, net Accounts receivable consist of the following: June 30, December 31, Accounts receivable $ 9,075,443 $ 6,212,600 Less allowance for bad debts (255,718 ) (44,784 ) Accounts receivable, net $ 8,819,725 $ 6,167,816

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2016
Property and Equipment, net [Abstract]
Property and Equipment, net	4. Property and Equipment, net The following is a summary of property and equipment: June 30, December 31, 2015 Equipment and computer hardware $ 664,299 $ 727,289 Office furniture 220,746 233,219 Leasehold improvements 186,902 186,902 Equipment held under capital lease 66,272 66,272 1,138,219 1,213,682 Less: accumulated depreciation (646,209 ) (628,326 ) $ 492,010 $ 585,356 Depreciation expense for the three and six months ended June 30, 2016 was $43,263 and $86,715, respectively. Depreciation expense for the three and six months ended June 30, 2015 was $35,419 and $60,548, respectively.

Capitalized Software Developmen

Capitalized Software Development Costs, net	6 Months Ended
	Jun. 30, 2016
Capitalized Software Development Costs, net [Abstract]
Capitalized Software Development Costs, net	5. Capitalized Software Development Costs, net The following is a summary of capitalized software development costs: June 30, December 31, Beginning balance $ 1,600,813 $ 762,661 Additions 769,210 1,615,029 Less: accumulated amortization (523,693 ) (776,877 ) Ending balance $ 1,846,330 $ 1,600,813 Amortization expense for the three and six months ended June 30, 2016 was $271,199 and $523,693, respectively. Amortization expense for the three and six months ended June 30, 2015 was $175,001 and $326,412, respectively. As of June 30, 2016, amortization expense for the remaining estimated lives of these costs is as follows: Year Ending June 30, 2017 $ 890,728 2018 900,562 2019 55,040 $ 1,846,330

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
Intangible Assets	6. Intangible Assets Patents The following is a summary of capitalized patent costs: June 30, December 31, Patent costs $ 1,416,598 $ 1,357,407 Less: accumulated amortization (1,010,052 ) (911,934 ) $ 406,546 $ 445,473 Amortization expenses for the three and six months ended June 30, 2016 was $49,431 and $98,119, respectively. Amortization expenses for the three and six months ended June 30, 2015 was $43,645 and $84,894, respectively. A schedule of amortization expense over the estimated remaining lives of the patents is as follows: Year Ending June 30, 2017 $ 151,841 2018 60,185 2019 50,336 2020 50,336 Thereafter 93,848 $ 406,546 Other Intangible Assets, net The following is a summary of other intangible asset costs: June 30, 2016 December 31, 2015 Technology $ 970,000 $ 970,000 Customer relationships 870,000 870,000 Backlog - 110,000 Less: accumulated amortization (265,493 ) (235,523 ) $ 1,574,507 $ 1,714,477 Amortization expenses for the three and six months ended June 30, 2016 was $67,750 and $139,970, respectively. Amortization expenses for the three and six months ended June 30, 2015 was $0 and $0, respectively. The intangible asset for backlog was fully amortized as of February 2016. A schedule of amortization expense over the estimated remaining lives of the other intangible assets is as follows: Year Ending June 30, 2017 $ 271,000 2018 271,000 2019 271,000 2020 271,000 2021 100,536 Thereafter 389,971 $ 1,574,507

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2016
Accrued Expenses [Abstract]
Accrued Expenses	7. Accrued Expenses The following is a summary of accrued expenses: June 30, 2016 December 31, 2015 Accrued cost of revenues $ 708,089 $ 168,983 Accrued payroll and related expenses 934,890 380,943 Accrued professional fees 65,705 627,124 Other accrued expenses 86,550 100,846 $ 1,795,234 $ 1,277,896

Capital Leases

Capital Leases	6 Months Ended
	Jun. 30, 2016
Capital Leases [Abstract]
Capital Leases	8. Capital Leases The Company leases various office equipment under multiple capital leases that expire in 2016 and 2018. The equipment has a cost of $66,272. Minimum future lease payments under the capital leases at June 30, 2016 for each of the next four years and in the aggregate are as follows: Year Ending June 30, 2017 $ 3,790 2018 3,790 2019 947 2020 - Total minimum lease payments 8,527 Less amount representing interest (699 ) Present value of net minimum lease payments $ 7,828 The effective interest rate charged on the capital leases range from approximately 2.25% to 7.428% per annum. The leases provide for a $1 purchase option. Interest charged to operations for the three and six months ended June 30, 2016 was $169 and $375, respectively. Interest charged to operations for the three and six months ended June 30, 2015 was $311 and $655, respectively. Depreciation charged to operations for the three and six months ended June 30, 2016 was $3,314 and $6,627, respectively. Depreciation charged to operations for the three and six months ended June 30, 2015 was $3,314 and $6,627, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax [Abstract]
Income Taxes	9. Income Taxes As of June 30, 2016, the Company has a net operating loss carryover of approximately $39,600,000 available to offset future income for income tax reporting purposes, which will expire in various years through 2035, if not previously utilized. However, the Company’s ability to use the carryover net operating loss may be substantially limited or eliminated pursuant to Internal Revenue Code Section 382. We adopted the provisions of ASC 740-10-50. We had no material unrecognized income tax assets or liabilities for the six months ended June 30, 2016 or for the six months ended June 30, 2015. Our policy regarding income tax interest and penalties is to expense those items as general and administrative expense but to identify them for tax purposes. During the three and six months ended June 30, 2016 and 2015, there were no federal income tax, or related interest and penalty items in the income statement, or liability on the balance sheet. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years ending on or before September 30, 2012 or California state income tax examination by tax authorities for years ending on or before September 30, 2011. We are not currently involved in any income tax examinations.

Note Payable

Note Payable	6 Months Ended
	Jun. 30, 2016
Note Payable [Abstract]
Note Payable	10. Note Payable June 30, December 31, 2015 Notes Payable: Principal outstanding $ 7,966,664 $ 9,333,332 Accrued Interest 396,930 319,418 Accrued Termination Fee 212,799 160,376 8,576,393 9,813,126 Less: discount on note payable (1,191,954 ) (893,941 ) 7,384,439 8,919,185 Less: current portion, net (2,068,450 ) (3,984,219 ) Long-term portion, net $ 5,315,989 $ 4,934,966 Scheduled maturities on long-term debt are as follows: Years ending June 30 Principal Discount Amortization Accrued Interest Accrued Termination Fee Total 2017 $ 2,775,000 $ (761,846 ) $ 55,296 $ - $ 2,068,451 2018 5,191,664 (430,108 ) 341,633 212,799 5,315,988 $ 7,966,664 $ (1,191,954 ) $ 396,930 $ 212,799 $ 7,384,439 On October 3, 2014, the Company and its wholly owned subsidiaries, SITO Mobile Solutions Inc. and SITO Mobile R&D IP LLC, entered into a Revenue Sharing and Note Purchase Agreement (the “Agreement”) with Fortress Credit Co LLC, as collateral agent (the “Collateral Agent”), and CF DB EZ LLC (the “Revenue Participant”) and Fortress Credit Co LLC (the “Note Purchaser” and together with the Revenue Participant, the “Investors”). At the closing of the Agreement, the Company issued and sold a senior secured note (the “Note”) with an aggregate original principal amount of $10,000,000 (the “Original Principal Amount”) and issued, pursuant to a Subscription Agreement, 261,954 new shares of common stock to Fortress at $3.817 per share (which represents the trailing 30-day average closing price) for an aggregate amount of $1,000,000. After deducting original issue discount of 10% on the Notes and a structuring fee to the Investors, the Company received $8,850,000 before paying legal and due diligence expenses. The principal amount of the Note bears interest at a rate equal to LIBOR plus 9% per annum. Such interest is payable monthly in cash except that 2% per annum of the interest shall be paid-in-kind, by increasing the principal amount of the Note by the amount of such interest. The term of the Note is 42 months and the Company from October 2015 to January 2016, has made monthly amortization payments on the Note, each in a principal amount equal to $333,334. The Company shall also apply 85% of Monetization Revenues (as defined in the Agreement) from the Company’s patents to the payment of accrued and unpaid interest on, and then to repay outstanding principal (at par) of, the Note until all amounts due with respect to the Note have been paid in full. After the repayment of the Note, in addition to the interest, the Company shall pay the Revenue Participants up to 50% of Monetization Revenues totaling (i) $5,000,000, if paid in full prior to March 31, 2018 and (ii) $7,500,000 thereafter (the “Revenue Stream”). The Company must also pay $350,000 to the Note Purchaser upon repayment of the Note. As of June 30, 2016, the Company has not realized any Monetization Revenues. Starting in October 2015, the Company may prepay the Note in whole or in part, without penalty or premium. The Agreement contains certain standard Events of Default. The Company granted to the Collateral Agent, for the benefit of the Secured Parties, a non-exclusive, royalty free, license (including the right to grant sublicenses) with respect to the Patents, which shall be evidenced by, and reflected in, the Patent License Agreement. The Collateral Agent and the Investors agree that the Collateral Agent shall only use such license following an Event of Default. Pursuant to a Security Agreement among the parties, the Company granted the Investors a first priority senior security interest in all of the Company’s assets. The Company and the Investors assigned a value of $500,000 to the revenue sharing terms of the Agreement and in accordance with ASC 470-10-25 “Debt Recognition”, the Company recognized $500,000 as deferred revenue and a discount on the Note that is amortized over the 42-month term of the Note using the effective interest method. For the three and six months ended June 30, 2016, the Company recognized $32,708 and $74,890, respectively, in licensing revenue and interest expense from amortization of the deferred revenue. For the three and six months ended June 30, 2015, the Company recognized $46,238 and $88,777, respectively, in licensing revenue and interest expense from amortization of the deferred revenue. On March 1, 2016, SITO Mobile, Ltd. (the “Company”) entered into Amendment No.1 (the “Amendment”) to that certain Revenue Sharing and Note Purchase Agreement, by and among the Company, SITO Mobile Solutions Inc., SITO Mobile R&D IP LLC, Fortress Credit Co LLC, and the Purchasers signatory thereto, dated as of October 3, 2014 (the “Agreement”). Pursuant to the terms of the Amendment, principal payment on the Notes issued pursuant to the Agreement shall be reduced from $333,333 to $175,000 for the period commencing on the last business day of February 2016 through the last business day of February 2017 and from $333,333 to $300,000 for the period commencing on the last business day of March 2017 to the last day of business on February 2018, with the final payment on the last business day on March 2018 increased to repay the remaining principal in full. In consideration for the Amendment, the Company agreed to pay a restructuring fee of $100,000 and issue 200,000 shares of its common stock with an aggregate value of $568,000 to the Purchasers. Interest expense on the Note for the three and six months ended June 30, 2016 was $213,674 and $440,723, respectively. Amortization of the discounts for the three and six months ended June 30, 2016 totaled $198,910 and $369,986, respectively, which was charged to interest expense. Accrual of termination fees for the three and six months ended June 30, 2016 was $22,896 and $54,423, respectively, which was charged to interest expense. Interest expense on the Note for the three and six months ended June 30, 2015 was $255,732 and $507,389, respectively. Amortization of the discounts for the three and six months ended June 30, 2015 totaled $152,585 and $292,965, respectively, which was charged to interest expense. Accrual of termination fees for the three and six months ended June 30, 2015 was $32,367 and $62,144, respectively, which was charged to interest expense.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock Based Compensation [Abstract]
Stock Based Compensation	11. Stock Based Compensation During the six months ended June 30, 2016, the Company recognized stock-based compensation expense totaling $559,433, through the vesting of 120,000 common stock options. Of the $559,433 in stock compensation expense, $410,072 is included in general and administrative expense and $149,361 is included in sales and marketing expense. During the six months ended June 30, 2015, the Company recognized stock-based compensation expense totaling $297,265, which $91,000 was for payment of consulting services through the issuance of 35,000 common shares, and $206,265 was recognized through the vesting of 36,986 common stock options. Of the $206,265 in stock compensation expense, $160,342 is included in general and administrative expense and $45,923 is included in sales and marketing expense.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions On April 21, 2014 (the “Effective Date”), SITO Mobile R&D IP LLC, the Company’s wholly-owned subsidiary, through a joint venture arrangement organized as a limited liability company (the “JV”) with Personalized Media Communications, LLC (“PMC”), entered into a Joint Licensing Program Agreement (the “Agreement”) with a national broadcasting entity (“Licensee”) pursuant to which the JV granted the Licensee a term-limited license ( the “License”) to all patents licensable by the JV (“Patents”), including an exclusive license to assert the Patents against certain infringing parties in the media distribution industry. In exchange for the License, the Licensee will pay an annual fee of $1,250,000 for a minimum of three years (“Annual Fee”). Commencing three years from the Effective Date, the Licensee may each year, at its sole option, pay a $1,250,000 license fee to renew the License for every year for four additional years. Once the Licensee has paid a total of $8,750,000 in license fees, either in one lump sum or after paying $1,250,000 annually for seven years, the License is deemed to be perpetual. For Patents infringement actions provided for under the License, the Licensee will pay 20% of the gross proceeds from settlements received less any Annual Fee amounts paid and litigation costs incurred (“Share of Proceeds”). SITO Mobile R&D IP LLC and its joint venture partner will serve as co-plaintiffs with the Licensee in infringement actions under the License and the Licensee will be responsible for any out-of-pocket costs of the JV associated with being a co-plaintiff in supporting Licensee in such litigation, including attorneys’ fees. The Licensee will pay the Annual Fee and any Share of Proceeds to the JV. Proceeds received by the JV are shared by SITO Mobile R&D IP LLC and PMC on a 30% and 70% basis, respectively. In the event that the Licensee does not assert any infringement actions under its rights in the License within five years of the Effective Date, the JV may, at its sole option, choose to terminate Licensee’s exclusive right to assert infringement claims with no reduction or adjustment to the Annual Fee. For the three and six months ended June 30, 2016, the Company amortized $93,238 and $186,476, respectively, in revenue. As of June 30, 2016, the Company has $303,279 in deferred revenue under the Licensing Agreement.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2016
Fair Value [Abstract]
Fair Value	13. Fair Value The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair values because of the relatively short period of time between the origination of these instruments and their expected realization. The Company determines the fair value of obligations under capital lease, notes payable and convertible debentures based on the effective yields of similar obligations (Level 2). ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions, about market participant assumptions, which are developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below: Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company did not identify any assets and liabilities that are required to be presented on the consolidated balance sheets at fair value. The Company does not have any assets or liabilities measured at fair value on a recurring basis at June 30, 2016. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2016.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
Stockholders' Equity	14. Stockholders’ Equity Common Stock The holders of the Company's common stock are entitled to one vote per share of common stock held. During th e six months ended June 30, 2016, the Company issued 200,000 shares of its common stock to Fortress Credit Co LLC at $2.84 per share for an aggregate amount $568,000, in consideration for the amendment of the Note Purchase Agreement. Warrants During the six months ended June 30, 2016, no warrants were granted or exercised. Options During the six months ended June 30, 2016, the Company granted options to its Directors and employees as follows: Grant Date Options Granted Exercise Price Expiration Vesting Total Value Risk Free Interest Rate Volatility February 18, 2016 30,000 $ 2.58 February 18, 2021 Immediately $ 52,560 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 Immediately $ 35,040 1.15 % 103.90 % February 18, 2016 25,000 $ 2.58 February 18, 2021 Immediately $ 43,800 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 3-years $ 35,040 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 Immediately $ 35,040 1.15 % 103.90 % February 18, 2016 25,000 $ 2.58 February 18, 2021 Immediately $ 43,800 1.15 % 103.90 % May 5, 2016 21,704 $ 2.95 May 5, 2019 3-years $ 49,225 1.26 % 91.52 % May 5, 2016 12,000 $ 2.95 May 5, 2019 3-years $ 27,216 1.26 % 91.52 % May 5, 2016 125,000 $ 2.95 May 5, 2019 3-years $ 283,500 1.26 % 91.52 % 298,704 The Company values options under the Binomial Option Model. The full value of option grants is charged to operations over the vesting period with option grants that vest immediately being fully charged on the date of grant. A summary of outstanding stock warrants and common stock options is as follows: Number of Weighted Average Outstanding – December 31, 2014 3,448,726 4.90 Granted 474,281 3.60 Exercised (833,700 ) 2.50 Cancelled (496,050 ) (8.10 ) Outstanding – December 31, 2015 2,593,257 $ 4.80 Granted 298,704 2.80 Exercised (-) (-) Cancelled (960,000 ) (5.50 ) Outstanding – June 30, 2016 1,931,961 4.10 Of the 1,931,961 common stock options outstanding, 1,132,931 options are fully vested and currently available for exercise. Of the common stock options outstanding, 292,510 options will be cancelled if not exercised during the three months ended September 30, 2016. An additional 20,000 options of the common stock options outstanding will be cancelled, if not exercised during the three months ended December 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Operating Leases The Company leases office space in Rogers, Arkansas; Jersey City, New Jersey; Boise, Idaho; Chicago, Illinois; and Royal Oak, Michigan. The Rogers office is leased for a term of five years, effective January 1, 2012. The Company’s Boise office space is subject to a 38-month lease that commenced on May 1, 2014. The Jersey City office lease, amended on November 6, 2014, expires on November 30, 2018 and the Company has the option to extend the term for an additional five years. In addition to paying rent, under the terms of the Jersey City office lease the Company is also required to pay its pro rata share of the property’s operating expenses. The Company entered into a sub-lease agreement on May 22, 2015 for an office in Michigan. The term for the office space is month to month. Rent expense for the three months ended June 30, 2016 and 2015 was $106,352 and $89,629, respectively. Rent expense for the six months ended June 30, 2016 and 2015 was $212,215 and $179,858, respectively. Minimum future rental payments under non-cancellable operating leases with terms in excess of one year as of June 30, 2016 for the next five years and in the aggregate are: 2017 $ 306,571 2018 258,837 2019 106,920 2020 - 2021 - $ 672,328 Incentive Compensation On November 18, 2015, the Company approved a compensation plan for the executive officers of the Company for the twelve-month period ending September 30, 2016, which was the Company’s fiscal year at the time. The plan provides for the payment of a cash bonus and an equity grant of performance options to the Company’s Chief Executive Officer and its Chief Financial Officer (the “Executives”). Each Executive is eligible for an annual cash bonus, based upon net revenue, gross margins, and individual key performance indicators, set annually by the Company’s Compensation Committee (the “Target Performance”). The target bonus for the Chief Executive Officer was 50% of his base salary and for the Chief Financial Officer, the target bonus was 40% of his base salary. The cash bonus was based upon the target net revenues and gross margins of the Company. 70% of the target cash bonus was payable if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus was payable if the Target Performance is reached, with 120% of the cash bonus paid if 120% of the Target Performance is achieved. As of June 30, 2016, there were no cash payouts for the incentive compensation plan. The equity grant component of the compensation plan provided for the grant of 110,000 performance options to purchase shares of common stock to the Chief Executive Officer and 50,000 performance options to purchase shares of common stock to the Chief Financial Officer, with the number of performance options to be received by each of the Executives based upon the achievement by the Company of certain net revenues and gross margins targets. The performance options vest in annual increments over three years commencing on the grant date and are exercisable at a price of $3.51. During the three and six months ended June 30, 2016, the company recognized $55,098 and $110,196, respectively, in stock compensation expense for the performance options. On November 18, 2015, the Company approved a compensation plan for three Employees of the Company for the twelve-month period ending September 30, 2016, which provides for the payment of a cash bonus and an equity grant of performance options. Two of the Employees are eligible for an annual cash bonus, based upon net revenue, and gross margins, set annually by the Company’s Compensation Committee (the “Target Performance”). The target bonus ranges from 20-30% of their base salary. Seventy percent of the cash bonus is based upon the target net revenues and 30% of the cash bonus is based upon gross margins of the Company. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 120% of the cash bonus paid if 120% of the Target Performance is achieved. As of June 30, 2016, the Company has accrued $91,287 in compensation expense for the potential incentive cash bonuses. The equity grant component of the compensation plan provides for the grant of 28,000 performance options to purchase shares of Company common stock to each of the three Employees, with the number of performance options to be received by each of the Employees based upon the achievement by the Company of certain net revenues and gross margins targets. The performance options will vest in three year increments commencing on the grant date and are exercisable at a price of $3.51. During the three and six months ended June 30, 2016, the Company recognized $25,827 and $51,654, respectively, in stock compensation expense for the performance options. On February 18, 2016, the Company granted 120,000 options to Directors of the Company with an exercise price of $2.58, which immediately vested. For the three and six months ended June 30, 2016, the Company recognized $0 and $210,240, respectively, in expense for the options. On May 5, 2016, the Company granted 158,704 options to three Employees of the Company. The options will vest in three year increments commencing on the grant date and are exercisable at a price of $2.95. During the three and six months ended June 30, 2016, the Company recognized $9,998 and $9,998, respectively, in stock compensation expense for the performance options.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On July 13, 2016, 20,000 shares of stock option grants were exercised for $3.31 per share for a total purchase price of $66,200. On August 9, 2016, the Company’s Board of Directors approved a special long-term incentive grant to the Company’s executive officers taking into consideration incentive grants to management of larger comparable companies that the Company’s Compensation committee deemed appropriate given the larger size of the Company and the rapid growth which the Company’s management have overseen. The Board approved an aggregate grant of 375,000 options to the Executives with the options having a $4.00 exercise price, vesting annually over a three-year period and expiring on the earlier of August 9, 2021 or three months after the cessation of service, whichever is sooner. On August 9, 2016, the Company’s Board of Directors On August 9, 2016, the Company’s Board of Directors approved a compensation plan for the executive officers of the Company for the quarter ending December 31, 2016 or the Fourth Quarter, which was not covered by the compensation plan approved in November 2015. The compensation plan for the executive officers that was approved in November 2015 was intended to cover the then fiscal year of the Company ending September 30. 2016. However, on May 5, 2016 the Company’s Board approved a change in fiscal year end to December 31. The compensation plan approved on August 9, 2016 is intended to cover compensation for the quarter ending December 31, 2016. The plan provides for the payment of a cash bonus and an equity grant of performance options to the Company’s Chief Executive Officer and its Chief Financial Officer. A cash bonus based upon net revenue and gross margins targets or the “Target Performance, will be paid to the executives. The target bonus for the Chief Executive Officer is 50% of his base salary for the Fourth Quarter and for the Chief Financial Officer, the target bonus is 40% of his base salary for the Fourth Quarter. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 140% of the cash bonus paid if maximum performance of 140% of the Target Performance is achieved. The equity grant component of the compensation plan provides for the grant of 27,500 performance options to purchase shares of Company common stock to the Chief Executive Officer and 12,500 performance options to purchase shares of Company common stock to the Chief Financial Officer, with the number of performance options to be received by each of the Executives based upon the achievement by the Company of certain net revenues and gross margins targets. The performance options will vest in three annual increments commencing on the grant date and are exercisable at a price of $4.00. The Board of Directors on August 9, 2016 also approved a compensation plan for three employees of the Company for the Fourth Quarter which provides for the payment of a cash bonus and an equity grant of performance options. The employees are eligible for cash bonus based upon Target Performance. The target bonus for one of the employees is 30% of his base salary for the Fourth Quarter and for two of the other employees, the target bonus is 20% of their base salary for the Fourth Quarter. Seventy percent of the cash bonus is based upon the target net revenues and 30% of the cash bonus is based upon gross margins of the Company. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 120% of the cash bonus paid if maximum performance of 140% of the Target Performance is achieved. The equity grant component of the compensation plan provides for the grant of 6,250 performance options to purchase shares of Company common stock to each of the three Employees, with the number of performance options to be received by each of the employees based upon the achievement by the Company of certain net revenues and gross margins targets. The performance options will vest in three annual increments commencing on the grant date and are exercisable at a price of $4.00. The Board also approved a grant of 6,250 performance options to another of the Company’s employee. The number of performance options to be received by the employee is based upon the achievement by the Company of certain net revenues and gross margins targets. The performance options will vest in three annual increments commencing on the grant date and are exercisable at a price of $4.00 for a term of five years.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Reclassification	Reclassification Certain reclassifications have been made to conform the 2015 amounts to the 2016 classifications for comparative purposes.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of SITO Mobile, Ltd. and it’s wholly-owned subsidiaries, SITO Mobile Solutions Inc., SITO Mobile R&D IP, LLC, SITO Mobile Media Inc. and DoubleVision Networks Inc. (“DoubleVision”). Intercompany transactions and balances have been eliminated in consolidation.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of three months or less.
Accounts Receivable, net	Accounts Receivable, net Accounts receivable are reported at the customers’ outstanding balances, less any allowance for doubtful accounts. Interest is not accrued on overdue accounts receivable.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts An allowance for doubtful accounts on accounts receivable is charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and information collected from individual customers. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs that do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Depreciation is computed on the straight-line and accelerated methods for financial reporting and income tax reporting purposes based upon the following estimated useful lives: Software development 2- 3 years Equipment and computer hardware 5 years Office furniture 7 years Leasehold Improvements 5 years
Long-Lived Assets	Long-Lived Assets The Company accounts for its long-lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value.
Capitalized Software Development Costs	Capitalized Software Development Costs The Company accounts for costs incurred to develop or purchase computer software for internal use in accordance with ASC Topic 350-40 “Internal-Use Software.” As required by ASC 350-40, the Company capitalizes the costs incurred during the application development stage, which include costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary project stage along with post-implementation stages of internal use computer software are expensed as incurred. Capitalized development costs are amortized over a period of two to three years. Costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life.
Capital Leases	Capital Leases Assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the leased assets. The assets are depreciated over the lower of their related lease terms or their estimated productive lives. Depreciation of the assets under capital leases is included in depreciation expense.
Debt issuance costs	Debt issuance costs Deferred debt issuance costs are amortized using the effective interest method over the related term of the debt and are presented on the balance sheet as a direct deduction from the debt liability. The amortization of deferred debt issuance costs is included in interest expense.
Income Taxes	Income Taxes The Company accounts for its income taxes under the provisions of ASC Topic 740, “Income Taxes.” The method of accounting for income taxes under ASC 740 is an asset and liability method. The asset and liability method requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. The Company had no material unrecognized income tax assets or liabilities for the six months ended June 30, 2016 or for the six months ended June 30, 2015. The Company recognizes income tax interest and penalties as a separately identified component of general and administrative expense.
Issuances Involving Non-cash Consideration	Issuances Involving Non-cash Consideration All issuances of the Company’s stock for non-cash consideration have been assigned a dollar amount equaling the market value of the shares issued on the date the shares were issued for such services and property. The non-cash consideration paid pertains to consulting services, the acquisition of a software license, the acquisition of DoubleVision Networks Inc. and assets purchased from Hipcricket, Inc.
Revenue Recognition	Revenue Recognition The Company recognizes media placement revenue based on the activity of mobile users viewing ads through developer applications and mobile websites. Media placement revenues are recognized when the Company’s advertising services are delivered based on the specific terms of the advertising contract, which are commonly based on the number of ads delivered, or views, clicks or actions by users on mobile advertisements. At such time, the Company’s services have been provided, the fees charged are fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. The Company evaluates whether it is appropriate to recognize media placement revenue based on the gross amount billed to the customers or the net amount earned as revenue. When the Company is primarily obligated in a transaction, has latitude in establishing prices, is responsible for fulfillment of the transaction, has credit risk, or has several but not all of these indicators, revenue is recorded on a gross basis. While none of the factors individually are considered presumptive or determinative, in reaching conclusions on gross versus net revenue recognition, the Company places the most weight on the analysis of whether or not it is the primary obligor in the arrangement. The Company records the net amounts as media placement revenue earned if it is not primarily obligated or does not have latitude in establishing prices or credit risk. The Company recognizes wireless applications revenue based on the delivery of Short Message Service (SMS) text messages and voice messages and messaging program management services. Wireless applications revenues are recognized when the Company’s services are delivered based on the specific terms of the Company’s contracts with customers, which are commonly based on the number of messages delivered. At such time, the Company’s services have been provided, the fees charged are fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. In general, licensing and royalty revenue arrangements provide for the payment of contractually determined fees in consideration for the patented technologies owned by or controlled by the Company’s operating subsidiary. The intellectual property rights granted may be perpetual in nature, extending until the expiration of the related patents, or can be granted for a defined, relatively short period of time, with the licensee possessing the right to renew the agreement at the end of each contractual term for an additional minimum upfront payment. Pursuant to the terms of these agreements, the Company’s operating subsidiary may have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses, covenants-not-to-sue, releases, and other deliverables, including no express or implied obligation on the Company’s operating subsidiary’s part to maintain or upgrade the technology, or provide future support or services Generally, the agreements provide for the grant of licenses, covenants-not-to-sue, releases, and other significant deliverables upon the execution of the agreement, or upon the receipt off the minimum upfront payment for term agreement renewals. As such, when the Company has no further obligation under the agreement, the earnings process is complete and revenue is recognized upon the execution of the agreement, when collectability is reasonably assured, or upon receipt of the minimum upfront fee for term agreement renewals, and when all the other revenue recognition criteria have been met, otherwise the Company recognizes revenue on a straight-line basis over the life of the agreement based on the contractually determined fees. Deferred revenue arises as a result of differences between the timing of revenue recognition and receipt of cash from the Company’s customers.
Stock Based Compensation	Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The Financial Accounting Standards Board (“FASB”) also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. The Company records compensation expense based on the fair value of the award at the reporting date. The value of the stock-based award is determined using the Binomial option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period.
Earnings (Loss) per Share	Earnings (Loss) per Share The Company reports earnings (loss) per share in accordance with ASC Topic 260-10, "Earnings per Share." Basic earnings (loss) per share are computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted earnings per share has been presented for the three months ended June 30, 2016 due to the Company’s net income position for the three months ended June 30, 2016.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company primarily transacts its business with one financial institution. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. Of the Company’s revenue earned during the six months ended June 30, 2016, approximately 17% was generated from contracts with six customers covered under the Company’s master services agreement with AT&T and approximately 15% was generated from contracts with an advertising agency. Of the Company’s revenue earned during the six months ended June 30, 2015, approximately 44% was generated from contracts with seven customers covered under the Company’s master services agreement with AT&T. The Company’s accounts receivable is typically unsecured and are derived from U.S. customers in different industries. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management’s expectations. As of June 30, 2016 and 2015, two customers accounted for 27% and 48%, respectively, of the Company’s net accounts receivable balance, respectively.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Business Combinations	Business Combinations The Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets. The Company expenses all costs as incurred related to an acquisition under general and administrative in the consolidated statements of operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred income taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The updated standard is effective for the Company beginning on October 1, 2017 with early application permitted as of the beginning of any interim or annual reporting period. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In January 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) “ASU 2016 – 01 Recognition and Measurement of Financial Assets and Financial Liabilities” which changes requirements for the presentation and measurement of equity investments at fair value. The updated standard is effective for the Company beginning after December 15, 2017, including interim periods within that fiscal year. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In February 2016, the FASB issued “ASU 2016 – 01 Leases” which requires the Company to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The updated standard is effective for the Company on December 15, 2018. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In March 2016, the FASB issued “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” which simplifies the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity of liabilities, and the classification on the statement of cash flows. The updated standard is effective beginning after December 15, 2016 and interim periods within this annual period. The Company does not expect that the adoption of this standard will have a material effect on its consolidated financial statements. In April 2016, the FASB issued “ASU 2016 – 10 Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing” which clarifies the topics of identifying performance obligations and licensing implementation guidance, while including implementation guidance. This updated standard affects “ASU 2014-09 Revenue from Contracts with Customers (Topic 606)” which is not yet effective. The Company does not expect that this standard will have a material effect on its consolidated financial statements.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Schedule of property and equipment, net estimated useful lives	Software development 2- 3 years Equipment and computer hardware 5 years Office furniture 7 years Leasehold Improvements 5 years

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	6 Months Ended
	Jun. 30, 2016
Accounts Receivable, net [Abstract]
Schedule of accounts receivable	June 30, December 31, Accounts receivable $ 9,075,443 $ 6,212,600 Less allowance for bad debts (255,718 ) (44,784 ) Accounts receivable, net $ 8,819,725 $ 6,167,816

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2016
Property and Equipment, net [Abstract]
Summary of property and equipment	June 30, December 31, 2015 Equipment and computer hardware $ 664,299 $ 727,289 Office furniture 220,746 233,219 Leasehold improvements 186,902 186,902 Equipment held under capital lease 66,272 66,272 1,138,219 1,213,682 Less: accumulated depreciation (646,209 ) (628,326 ) $ 492,010 $ 585,356

Capitalized Software Developm28

Capitalized Software Development Costs, net (Tables)	6 Months Ended
	Jun. 30, 2016
Capitalized Software Development Costs, net [Abstract]
Summary of capitalized software development costs	June 30, December 31, Beginning balance $ 1,600,813 $ 762,661 Additions 769,210 1,615,029 Less: accumulated amortization (523,693 ) (776,877 ) Ending balance $ 1,846,330 $ 1,600,813
Summary of amortization expense for the estimated lives	Year Ending June 30, 2017 $ 890,728 2018 900,562 2019 55,040 $ 1,846,330

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Summary of capitalized patent costs	June 30, December 31, Patent costs $ 1,416,598 $ 1,357,407 Less: accumulated amortization (1,010,052 ) (911,934 ) $ 406,546 $ 445,473
Summary of amortization expense over the estimated remaining lives of the patents and other intangible assets	Year Ending June 30, 2017 $ 151,841 2018 60,185 2019 50,336 2020 50,336 Thereafter 93,848 $ 406,546
Summary of other intangible asset	June 30, 2016 December 31, 2015 Technology $ 970,000 $ 970,000 Customer relationships 870,000 870,000 Backlog - 110,000 Less: accumulated amortization (265,493 ) (235,523 ) $ 1,574,507 $ 1,714,477
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Summary of amortization expense over the estimated remaining lives of the patents and other intangible assets	Year Ending June 30, 2017 $ 271,000 2018 271,000 2019 271,000 2020 271,000 2021 100,536 Thereafter 389,971 $ 1,574,507

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses [Abstract]
Summary of accrued expenses	June 30, 2016 December 31, 2015 Accrued cost of revenues $ 708,089 $ 168,983 Accrued payroll and related expenses 934,890 380,943 Accrued professional fees 65,705 627,124 Other accrued expenses 86,550 100,846 $ 1,795,234 $ 1,277,896

Capital Leases (Tables)

Capital Leases (Tables)	6 Months Ended
	Jun. 30, 2016
Capital Leases [Abstract]
Schedule of minimum future lease payments under the capital lease	Year Ending June 30, 2017 $ 3,790 2018 3,790 2019 947 2020 - Total minimum lease payments 8,527 Less amount representing interest (699 ) Present value of net minimum lease payments $ 7,828

Note Payable (Tables)

Note Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Note Payable [Abstract]
Schedule of note payable	June 30, December 31, 2015 Notes Payable: Principal outstanding $ 7,966,664 $ 9,333,332 Accrued Interest 396,930 319,418 Accrued Termination Fee 212,799 160,376 8,576,393 9,813,126 Less: discount on note payable (1,191,954 ) (893,941 ) 7,384,439 8,919,185 Less: current portion, net (2,068,450 ) (3,984,219 ) Long-term portion, net $ 5,315,989 $ 4,934,966
Scheduled maturities on long term debt	Years ending June 30 Principal Discount Amortization Accrued Interest Accrued Termination Fee Total 2017 $ 2,775,000 $ (761,846 ) $ 55,296 $ - $ 2,068,451 2018 5,191,664 (430,108 ) 341,633 212,799 5,315,988 $ 7,966,664 $ (1,191,954 ) $ 396,930 $ 212,799 $ 7,384,439

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity [Abstract]
Schedule of company granted options to directors and employees	Grant Date Options Granted Exercise Price Expiration Vesting Total Value Risk Free Interest Rate Volatility February 18, 2016 30,000 $ 2.58 February 18, 2021 Immediately $ 52,560 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 Immediately $ 35,040 1.15 % 103.90 % February 18, 2016 25,000 $ 2.58 February 18, 2021 Immediately $ 43,800 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 3-years $ 35,040 1.15 % 103.90 % February 18, 2016 20,000 $ 2.58 February 18, 2021 Immediately $ 35,040 1.15 % 103.90 % February 18, 2016 25,000 $ 2.58 February 18, 2021 Immediately $ 43,800 1.15 % 103.90 % May 5, 2016 21,704 $ 2.95 May 5, 2019 3-years $ 49,225 1.26 % 91.52 % May 5, 2016 12,000 $ 2.95 May 5, 2019 3-years $ 27,216 1.26 % 91.52 % May 5, 2016 125,000 $ 2.95 May 5, 2019 3-years $ 283,500 1.26 % 91.52 % 298,704
Summary of outstanding stock warrants and options	Number of Weighted Average Outstanding – December 31, 2014 3,448,726 4.90 Granted 474,281 3.60 Exercised (833,700 ) 2.50 Cancelled (496,050 ) (8.10 ) Outstanding – December 31, 2015 2,593,257 $ 4.80 Granted 298,704 2.80 Exercised (-) (-) Cancelled (960,000 ) (5.50 ) Outstanding – June 30, 2016 1,931,961 4.10

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
Schedule of minimum future rental payments under non-cancellable operating leases	2017 $ 306,571 2018 258,837 2019 106,920 2020 - 2021 - $ 672,328

Organization, History and Bus35

Organization, History and Business (Details) - shares	Jun. 30, 2016	Dec. 31, 2015
Organization, History and Business (Textual)
Common stock, shares authorized	100,000,000	300,000,000

Summary of Significant Accoun36

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2016
Software development [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	2 years
Software development [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	3 years
Equipment and computer hardware [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	5 years
Office furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	5 years

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details Textual) - Customers	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Summary of Significant Accounting Policies (Textual)
Company's revenue, percentage	17.00%	44.00%
Number of customers	6	7
Concentration risk description	Approximately 17% was generated from contracts with five customers covered under the Company's master services agreement with AT&T and approximately 15% was generated from contracts with an advertising agency.
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Company's revenue, percentage	27.00%	48.00%

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts Receivable, net [Abstract]
Accounts receivable	$ 9,075,443	$ 6,212,600
Less allowance for bad debts	(255,718)	(44,784)
Accounts receivable, net	$ 8,819,725	$ 6,167,816

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property and Equipment, net [Abstract]
Equipment and computer hardware	$ 664,299	$ 727,289
Office furniture	220,746	233,219
Leasehold improvements	186,902	186,902
Equipment held under capital lease	66,272	66,272
Property and equipment, gross	1,138,219	1,213,682
Less: accumulated depreciation	(646,209)	(628,326)
Property and equipment, net	$ 492,010	$ 585,356

Property and Equipment, net (40

Property and Equipment, net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property and Equipment, net [Abstract]
Depreciation expense	$ 43,263	$ 35,419	$ 86,715	$ 60,548

Capitalized Software Developm41

Capitalized Software Development Costs, net (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Capitalized Software Development Costs, net [Abstract]
Beginning balance			$ 1,600,813	$ 762,661	$ 762,661
Additions			769,210		1,615,029
Less: accumulated amortization	$ 271,199	$ 175,001	523,693	$ 326,412	(776,877)
Ending balance	$ 1,846,330		$ 1,846,330		$ 1,600,813

Capitalized Software Developm42

Capitalized Software Development Costs, net (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Capitalized Software Development Costs, net [Abstract]
2,017	$ 890,728
2,018	900,562
2,019	55,040
Capitalized Computer Software, Net	$ 1,846,330	$ 1,600,813	$ 762,661

Capitalized Software Developm43

Capitalized Software Development Costs, net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Capitalized Software Development Costs [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Amortization expense - software development costs	$ 271,199	$ 523,693	$ 175,001	$ 326,412

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets [Abstract]
Patent costs	$ 1,416,598	$ 1,357,407
Less: accumulated amortization	(1,010,052)	(911,934)
Patents, net	$ 406,546	$ 445,473

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
2,017	$ 890,728
2,018	900,562
2,019	55,040
Patents	406,546	$ 445,473
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2,017	151,841
2,018	60,185
2,019	50,336
2,020	50,336
Thereafter	93,848
Patents	406,546
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
2,017	271,000
2,018	271,000
2,019	271,000
2,020	271,000
2,021	100,536
Thereafter	389,971
Patents	$ 1,574,507

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 1,574,507	$ 1,714,477
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	970,000	970,000
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	870,000	870,000
Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net		110,000
Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ (265,493)	$ (235,523)

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Intangible Assets (Textual)
Amortization expense	$ 67,750		$ 139,970
Patents [Member]
Intangible Assets (Textual)
Amortization expense	49,431	43,645	98,119	84,894
Other Intangible Assets [Member]
Intangible Assets (Textual)
Amortization expense	$ 67,750	$ 0	$ 139,970	$ 0

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accrued Expenses [Abstract]
Accrued cost of revenues	$ 708,089	$ 168,983
Accrued payroll and related expenses	934,890	380,943
Accrued professional fees	65,705	627,124
Other accrued expenses	86,550	100,846
Accrued expenses	$ 1,795,234	$ 1,277,896

Capital Leases (Details)

Capital Leases (Details)	Jun. 30, 2016USD ($)
Capital Leases [Abstract]
2,017	$ 3,790
2,018	3,790
2,019	947
2,020
Total minimum lease payments	8,527
Less amount representing interest	(699)
Present value of net minimum lease payments	$ 7,828

Capital Leases (Details Textual

Capital Leases (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Capital Leases (Textual)
Equipment cost	$ 66,272		$ 66,272		$ 66,272
Minimum future lease payments, Term			4 years
Purchase option on capital lease	1		$ 1
Interest charged in capital lease	169	$ 311	375	$ 655
Depreciation	43,263	35,419	86,715	60,548
Office Equipment [Member]
Capital Leases (Textual)
Depreciation	$ 3,314	$ 3,314	$ 6,627	$ 6,627
Office Equipment [Member] | Minimum [Member]
Capital Leases (Textual)
Lease expiration date			Dec. 31, 2016
Interest rate charged on capital leases	2.25%		2.25%
Office Equipment [Member] | Maximum [Member]
Capital Leases (Textual)
Lease expiration date			Dec. 31, 2018
Interest rate charged on capital leases	7.428%		7.428%

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Income Taxes (Textual)
Net operating loss carryover	$ 39,600,000
Operating loss carryover, expiration date	Dec. 31, 2035

Note Payable (Details)

Note Payable (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Notes Payable:
Principal outstanding	$ 7,966,664	$ 9,333,332
Accrued Interest	396,930	319,418
Accrued Termination Fee	212,799	160,376
Note Payable Gross	8,576,393	9,813,126
Less: discount on note payable	(1,191,954)	(893,941)
Note Payable	7,384,439	8,919,185
Less: current portion,net	(2,068,450)	(3,984,219)
Long-term portion, net	$ 5,315,989	$ 4,934,966

Note Payable (Details 1)

Note Payable (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Scheduled maturities on long term debt
Principal	$ 7,966,664	$ 9,333,332
Discount Amortization	(1,191,954)
Accrued Interest	396,930	319,418
Accrued Termination Fee	212,799	160,376
Note Payable	7,384,439	$ 8,919,185
2017 [Member]
Scheduled maturities on long term debt
Principal	2,775,000
Discount Amortization	(761,846)
Accrued Interest	55,296
Accrued Termination Fee
Note Payable	2,068,451
2018 [Member]
Scheduled maturities on long term debt
Principal	5,191,664
Discount Amortization	(430,108)
Accrued Interest	341,633
Accrued Termination Fee	212,799
Note Payable	$ 5,315,988

Note Payable (Details Textual)

Note Payable (Details Textual) - USD ($)	Mar. 01, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Note Payable (Textual)
Note payable original principal amount		$ 7,384,439		$ 7,384,439		$ 8,919,185
Issuance of commom stock shares
Debt instrument, Term				42 months
Interest expense		213,674	$ 255,732	$ 440,723	$ 507,389
Amortization of discount		198,910	152,585	369,986	292,965
Deferred revenue				568,000
Interest expense from amortization		32,708	46,238	74,890	88,777
Accrual of termination fees charged to interest expense		22,896	$ 32,367	54,423	$ 62,144
Revenue Sharing and Note Purchase Agreement [Member]
Note Payable (Textual)
Issuance of commom stock shares	200,000
Aggregate amount of shares issued	$ 568,000
Debt instrument, Description	Pursuant to the terms of the Amendment, principal payment on the Notes issued pursuant to the Agreement shall be reduced from $333,333 to $175,000 for the period commencing on the last business day of February 2016 through the last business day of February 2017 and from $333,333 to $300,000 for the period commencing on the last business day of March 2017 to the last day of business on February 2018, with the final payment on the last business day on March 2018 increased to repay the remaining principal in full.
Restructuring fee	$ 100,000
Senior Secured Note [Member]
Note Payable (Textual)
Note payable original principal amount		$ 10,000,000		$ 10,000,000
Issuance of commom stock shares				261,954
Aggregate amount of shares issued				$ 1,000,000
Stock price per share		$ 3.817		$ 3.817
Received paying legal and due diligence expenses				$ 8,850,000
Description of LIBOR rate				The principal amount of the Note bears interest at a rate equal to LIBOR plus 9% per annum. Such interest is payable monthly in cash except that 2% per annum of the interest shall be paid-in-kind, by increasing the principal amount of the Note by the amount of such interest.
Debt instrument, Term				42 months
Amortization payments				$ 333,334
Percentage of monetization revenues				85.00%
Payment term monetization revenues description				The Company shall pay the Revenue Participants up to 50% of Monetization Revenues totaling (i) $5,000,000, if paid in full prior to March 31, 2018 and (ii) $7,500,000 thereafter (the "Revenue Stream"). The Company must also pay $350,000 to the Note Purchaser upon repayment of the Note. As of June 30, 2016, the Company has not realized any Monetization Revenues.
Purchasers upon repayment of the notes				$ 350,000
Interest rate		9.00%		9.00%
Percentage of discount				10.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Based Compensation (Textual)
Recognized stock-based compensation expense	$ 185,931	$ 147,299	$ 559,433	$ 297,265
Stock based compensation payment of consulting services				$ 91,000
Share based compensation, number of shares vested			120,000	35,000
Stock Option [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense			$ 559,433	$ 297,265
Stock based compensation payment of consulting services				$ 91,000
Stock based compensation payment of consulting services, Shares				35,000
Share based compensation, number of shares vested			120,000	36,986
Stock based compensation expense recognized vested				$ 206,265
General and administrative expense [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense			$ 410,072	160,342
Sales and marketing expense [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense			$ 149,361	$ 45,923

Related Party Transactions (Det

Related Party Transactions (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Related party transaction (Textual)
Licensing agreement terms, Description		In exchange for the License, the Licensee will pay an annual fee of $1,250,000 for a minimum of three years ("Annual Fee"). Commencing three years from the Effective Date, the Licensee may each year, at its sole option, pay a $1,250,000 license fee to renew the License for every year for four additional years. Once the Licensee has paid a total of $8,750,000 in license fees, either in one lump sum or after paying $1,250,000 annually for seven years, the License is deemed to be perpetual. For Patents infringement actions provided for under the License, the Licensee will pay 20% of the gross proceeds from settlements received less any Annual Fee amounts paid and litigation costs incurred ("Share of Proceeds"). SITO Mobile R&D IP LLC and its joint venture partner will serve as co-plaintiffs with the Licensee in infringement actions under the License and the Licensee will be responsible for any out-of-pocket costs of the JV associated with being a co-plaintiff in supporting Licensee in such litigation, including attorneys' fees. The Licensee will pay the Annual Fee and any Share of Proceeds to the JV. Proceeds received by the JV are shared by SITO Mobile R&D IP LLC and PMC on a 30% and 70% basis, respectively. In the event that the Licensee does not assert any infringement actions under its rights in the License within five years of the Effective Date, the JV may, at its sole option, choose to terminate Licensee's exclusive right to assert infringement claims with no reduction or adjustment to the Annual Fee.
Deferred revenue	$ 303,279	$ 303,279
Amortization of revenue	$ 93,238	$ 186,476

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of company granted options to directors and employees
Options Granted	298,704	474,281
February 18, 2016 [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	30,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	Immediately
Total Value	$ 52,560
Risk Free Interest Rate	1.15%
Volatility	103.90%
February 18, 2016 One [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	20,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	Immediately
Total Value	$ 35,040
Risk Free Interest Rate	1.15%
Volatility	103.90%
February 18, 2016 Two [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	25,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	Immediately
Total Value	$ 43,800
Risk Free Interest Rate	1.15%
Volatility	103.90%
February 18, 2016 Three [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	20,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	3-years
Total Value	$ 35,040
Risk Free Interest Rate	1.15%
Volatility	103.90%
February 18, 2016 Four [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	20,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	Immediately
Total Value	$ 35,040
Risk Free Interest Rate	1.15%
Volatility	103.90%
February 18, 2016 Five [Member]
Schedule of company granted options to directors and employees
Grant Date	Feb. 18, 2016
Options Granted	25,000
Exercise Price	$ 2.58
Expiration	Feb. 18, 2021
Vesting, description	Immediately
Total Value	$ 43,800
Risk Free Interest Rate	1.15%
Volatility	103.90%
May 5, 2016 [Member]
Schedule of company granted options to directors and employees
Grant Date	May 5, 2016
Options Granted	21,704
Exercise Price	$ 2.95
Expiration	May 5, 2019
Vesting, description	3-years
Total Value	$ 49,225
Risk Free Interest Rate	1.26%
Volatility	91.52%
May 5, 2016 One [Member]
Schedule of company granted options to directors and employees
Grant Date	May 5, 2016
Options Granted	12,000
Exercise Price	$ 2.95
Expiration	May 5, 2019
Vesting, description	3-years
Total Value	$ 27,216
Risk Free Interest Rate	1.26%
Volatility	91.52%
May 5, 2016 two [Member]
Schedule of company granted options to directors and employees
Grant Date	May 5, 2016
Options Granted	125,000
Exercise Price	$ 2.95
Expiration	May 5, 2019
Vesting, description	3-years
Total Value	$ 283,500
Risk Free Interest Rate	1.26%
Volatility	91.52%

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Summary of outstanding stock warrants and options
Number of Shares, Outstanding, Beginning Balance	2,593,257	3,448,726
Number of Shares, Granted	298,704	474,281
Number of Shares, Exercised		(833,700)
Number of Shares, Cancelled	(960,000)	(496,050)
Number of Shares, Outstanding, Ending Balance	1,931,961	2,593,257
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 4.80	$ 4.90
Weighted Average Exercise Price, Granted	2.80	3.60
Weighted Average Exercise Price, Exercised		2.50
Weighted Average Exercise Price, Cancelled	(5.50)	(8.10)
Weighted Average Exercise Price, Outstanding, Ending Balance	$ 4.10	$ 4.80

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity (Textual)
Issuance of commom stock shares
Gross proceeds from common stock issued				$ 50,000
Common stock options outstanding	1,931,961		1,931,961		2,593,257	3,448,726
Number of Shares, Cancelled			(960,000)		(496,050)
September 30 2016 [Member]
Stockholders' Equity (Textual)
Number of Shares, Cancelled			292,510
December 31 2016 [Member]
Stockholders' Equity (Textual)
Number of Shares, Cancelled			20,000
Common Stock [Member]
Stockholders' Equity (Textual)
Common stock options outstanding	1,810,945		1,810,945
Options vested	1,132,931		1,132,931
Common Stock [Member] | Double Vision Networks Inc. [Member]
Stockholders' Equity (Textual)
Issuance of commom stock shares				296,402
Common Stock [Member] | Fortress Credit Co LLC [Member]
Stockholders' Equity (Textual)
Issuance of commom stock shares			200,000
Price per share	$ 2.84		$ 2.84
Gross proceeds from common stock issued			$ 568,000

Commitments and Contingencies60

Commitments and Contingencies (Details)	Jun. 30, 2016USD ($)
Schedule of minimum future rental payments under non-cancellable operating leases
2,017	$ 306,571
2,018	258,837
2,019	106,920
2,020
2,021
Total	$ 672,328

Commitments and Contingencies61

Commitments and Contingencies (Details Textual) - USD ($)	May 05, 2016	Feb. 18, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies (Textual)
Rent expense			$ 106,352	$ 89,629	$ 212,215	$ 179,858
Three Employees [Member]
Commitments and Contingencies (Textual)
Options expected to vest exercise price	$ 2.95
Options issued to purchase common stock	158,704
Accrued stock compensation expense					9,998
Director [Member]
Commitments and Contingencies (Textual)
Options expected to vest exercise price		$ 2.58
Options issued to purchase common stock		120,000
Accrued stock compensation expense			0		$ 210,240
Two Employees [Member]
Commitments and Contingencies (Textual)
Accrued stock compensation expense			$ 9,998
Stock Compensation Plan [Member]
Commitments and Contingencies (Textual)
Options expected to vest exercise price			$ 3.51		$ 3.51
Compensation arrangement with individual description					The target bonus for the Chief Executive Officer was 50% of his base salary and for the Chief Financial Officer, the target bonus was 40% of his base salary. The cash bonus was based upon the target net revenues and gross margins of the Company. 70% of the target cash bonus was payable if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus was payable if the Target Performance is reached, with 120% of the cash bonus paid if 120% of the Target Performance is achieved.
Accrued stock compensation expense			$ 55,098		$ 110,196
Stock Compensation Plan [Member] | Chief Executive Officer [Member]
Commitments and Contingencies (Textual)
Options issued to purchase common stock					110,000
Stock Compensation Plan [Member] | Chief Financial Officer [Member]
Commitments and Contingencies (Textual)
Options issued to purchase common stock					50,000
Stock Compensation Plan One [Member]
Commitments and Contingencies (Textual)
Options expected to vest exercise price			$ 3.51		$ 3.51
Compensation arrangement with individual description					The target bonus ranges from 20-30% of their base salary. Seventy percent of the cash bonus is based upon the target net revenues and 30% of the cash bonus is based upon gross margins of the Company. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 120% of the cash bonus paid if 120% of the Target Performance is achieved.
Options issued to purchase common stock					28,000
Accrued bonus			$ 91,287		$ 91,287
Accrued stock compensation expense			$ 25,827		$ 51,654
Rogers [Member]
Commitments and Contingencies (Textual)
Lease term					5 years
Jersey [Member]
Commitments and Contingencies (Textual)
Lease expiration date					Nov. 30, 2018
Lease expiration period of stores provided on additional rentals					5 years
Boise Office [Member]
Commitments and Contingencies (Textual)
Lease term					38 months

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Aug. 09, 2016	Jul. 13, 2016	May 05, 2016
Three Employees [Member]
Subsequent Events (Textual)
Options issued to purchase common stock			158,704
Subsequent Events [Member]
Subsequent Events (Textual)
Stock options granted		20,000
Granted option exercise price		$ 3.31
Total purchase price		$ 66,200
Subsequent Events [Member] | Officer [Member]
Subsequent Events (Textual)
Stock options granted	375,000
Granted option exercise price	$ 4
Vesting period	3 years
Vesting, description	Vesting annually over a three-year period and expiring on the earlier of August 9, 2021 or three months after the cessation of service, whichever is sooner.
Subsequent Events [Member] | Executive officer [Member]
Subsequent Events (Textual)
Compensation arrangement with individual description	The target bonus for the Chief Executive Officer is 50% of his base salary for the Fourth Quarter and for the Chief Financial Officer, the target bonus is 40% of his base salary for the Fourth Quarter. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 140% of the cash bonus paid if maximum performance of 140% of the Target Performance is achieved.
Subsequent Events [Member] | Three Employees [Member]
Subsequent Events (Textual)
Stock options granted	6,250
Granted option exercise price	$ 4
Compensation arrangement with individual description	The target bonus for one of the employees is 30% of his base salary for the Fourth Quarter and for two of the other employees, the target bonus is 20% of their base salary for the Fourth Quarter. Seventy percent of the cash bonus is based upon the target net revenues and 30% of the cash bonus is based upon gross margins of the Company. Seventy percent of the target cash bonus will be paid if threshold performance of 70% of the Target Performance is achieved, 100% of the target cash bonus will be paid if the Target Performance is reached, with 120% of the cash bonus paid if maximum performance of 140% of the Target Performance is achieved.
Subsequent Events [Member] | Chief Executive Officer [Member]
Subsequent Events (Textual)
Options issued to purchase common stock	27,500
Subsequent Events [Member] | Chief Financial Officer [Member]
Subsequent Events (Textual)
Options issued to purchase common stock	12,500
Subsequent Events [Member] | Employee [Member]
Subsequent Events (Textual)
Stock options granted	6,250
Granted option exercise price	$ 4
Subsequent Events [Member] | Mr. Brent Rosenthal [Member]
Subsequent Events (Textual)
Stock options granted	20,000
Granted option exercise price	$ 4
Vesting, description	The options vested immediately and shall expire upon the earlier of August 9, 2021 or three months after the cessation of service, whichever is sooner.