Sito Mobile (SITOQ) 10-K 2 Apr 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Apr. 02, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SITO MOBILE, LTD.
Entity Central Index Key	1,157,817
Trading Symbol	SITO
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 69,061,078
Entity Common Stock, Shares Outstanding		25,115,570

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 3,611,438	$ 8,744,545
Accounts receivable, net	13,005,718	8,842,256
Prepaid expenses	374,380	229,039
Assets from discontinued operations	10,596	870,716
Total current assets	17,002,132	18,686,556
Property and equipment, net	449,949	410,688
Other assets
Capitalized software development costs, net	1,485,285	1,698,992
Intangible assets:
Patents	742,574	1,315,818
Other intangible assets, net	1,168,007	1,439,007
Goodwill	6,444,225	6,444,225
Other assets	92,420	150,038
Total other assets	9,932,511	11,048,080
Total assets	27,384,592	30,145,324
Current liabilities
Accounts payable	6,506,902	3,184,237
Accrued expenses	9,911,540	2,180,944
Deferred revenue		245,407
Current obligations under capital lease	2,756	3,446
Note payable, net - current portion		2,896,893
Warrant liability	1,539,388
Liabilities from discontinued operations	210,789	607,236
Total current liabilities	18,171,375	9,118,163
Long-term liabilities
Obligations under capital lease		2,756
Note payable, net		3,952,827
Total long-term liabilities		3,955,583
Total liabilities	18,175,375	13,073,746
Commitments and contingencies - See notes 16
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 22,039,529 shares issued and outstanding as of December 31, 2017 and $.001 par value; 100,000,000 shares authorized, 20,681,047 shares issued and outstanding as of December 31, 2016	22,038	20,680
Additional paid-in capital	165,008,928	157,829,709
Accumulated deficit	(155,817,749)	(140,778,811)
Total stockholders' equity	9,213,217	17,071,578
Total liabilities and stockholders' equity	$ 27,384,592	$ 30,145,324

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
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 issued	22,039,529	20,681,047
Common stock, shares outstanding	22,039,529	20,681,047

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Revenue
Media placement	$ 42,859,777	$ 28,911,717
Licensing and royalties	130,653	140,238
Total revenue	42,990,430	29,051,955
Cost of Revenue
Cost of revenue	22,242,286	13,705,459
Gross profit	20,748,144	15,346,496
Operating Expenses [Abstract]
Sales and marketing	14,522,230	10,470,543
General and administrative	16,029,040	6,074,001
Depreciation and amortization	3,500,000
Legal settlement - See notes 16	1,137,985	608,649
Total operating expenses	35,189,255	17,153,193
(Loss) from operations	(14,441,111)	(1,806,697)
Other Income (Expense)
Earnings from joint venture	1,464,754	375,000
Loss on revaluation of warrant liability	(477,810)
Interest expense, net of interest income	(1,296,436)	(1,738,231)
Net (loss) before income taxes	(14,750,603)	(3,169,928)
Income tax benefit (expense)	80,522	(114,278)
(Loss) from continuing operations	(14,670,081)	(3,284,206)
Discontinued Operations
(Loss) income from operations of discontinued component	(368,857)	1,880,220
Net (loss) income from discontinued operations	(368,857)	1,880,220
Net (loss)	$ (15,038,938)	$ (1,403,986)
Basic and diluted net (loss) per share
Continuing operations	$ (0.69)	$ (0.18)
Discontinued operations	(0.02)	0.1
Basic and diluted net (loss) per share	$ (0.71)	$ (0.08)
Basic and diluted weighted average shares outstanding	21,249,985	18,247,364

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2015		$ 17,156	$ 144,538,247	$ (139,374,825)
Beginning balance, Shares at Dec. 31, 2015		17,157,520
Shares issued on exercise of stock options	$ 1,069,073	$ 257	1,068,816
Shares issued on exercise of stock options, Shares		256,860
Compensation recognized on option grants	1,337,912		1,337,912
Issuance of stock for restructuring of debt	568,000	$ 200	567,800
Issuance of stock for restructuring of debt, Shares		200,000
Issuance of common stock and warrants, net	10,320,001	$ 3,067	10,316,934
Issuance of common stock and warrants, net, shares		3,066,667
Net (loss) for the year	(1,403,986)			(1,403,986)
Ending balance at Dec. 31, 2016	17,071,578	$ 20,680	157,829,709	(140,778,811)
Ending balance, Shares at Dec. 31, 2016		20,681,047
Beginning balance at Dec. 31, 2016	17,071,578	$ 20,680	157,829,709	(140,778,811)
Beginning balance, Shares at Dec. 31, 2016		20,681,047
Beginning balance at Dec. 31, 2016	17,071,578	$ 20,680	157,829,709	(140,778,811)
Beginning balance, Shares at Dec. 31, 2016		20,681,047
Shares issued on exercise of stock options	221,431	$ 158	221,273
Shares issued on exercise of stock options, Shares		158,482
Compensation recognized on option grants	2,165,882		2,165,882
Issuance of common stock and warrants, net	4,613,433	$ 1,200	4,612,233
Issuance of common stock and warrants, net, shares		1,200,000
Compensation recognized on restricted stock units	179,830		179,830
Net (loss) for the year	(15,038,938)			(15,038,938)
Ending balance at Dec. 31, 2017	$ 9,213,217	$ 22,038	$ 166,008,928	$ (155,817,749)
Ending balance, Shares at Dec. 31, 2017		22,039,529

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net (loss)	$ (15,038,938)	$ (1,403,986)
Less: (loss) income from discontinued operations, net of tax	(368,857)	1,880,220
(Loss) from continuing operations	(14,670,081)	(3,284,206)
Adjustments to reconcile net (loss) o net cash (used in) operating activities:
Depreciation expense	152,012	129,718
Amortization expense - software development costs	1,943,561	1,054,205
Amortization expense - patents	714,973	203,459
Amortization expense - discount of debt	794,548	767,393
Amortization expense - deferred costs	37,676	40,440
Amortization expense - intangible assets	271,000	275,470
Provision for bad debt	576,386	536,204
Loss on disposition of assets	6,024
Stock option compensation expense	2,165,392	1,332,946
Loss on revaluation of warrant liability	477,810
Restricted stock compensation expense	179,830
Changes in operating assets and liabilities:
(Increase) in accounts receivable, net	(4,739,849)	(4,440,287)
(Increase) in prepaid expenses	(145,341)	(117,602)
Decrease (increase) in other assets	19,941	(19,118)
Increase (decrease) in accounts payable	3,322,662	(898,919)
Increase in accrued expenses	7,730,598	1,013,817
Increase (decrease) in deferred revenue	(245,407)	(222,806)
(Decrease) increase in accrued interest	(727,603)	247,810
Net cash (used in) operating activities - continuing operations	(3,190,074)	(3,773,678)
Net cash (used in) provided by operating activities - discontinued operations	(217,640)	2,884,196
Net cash (used in) operating activities	(3,407,714)	(889,482)
Cash Flows from Investing Activities
Patents and patent applications costs	(141,728)	(176,717)
Purchase of property and equipment	(224,296)	(52,264)
Proceeds from sale of property and equipment	27,000
Capitalized software development costs	(675,649)	(1,243,506)
Net cash (used in) investing activities - continuing operations	(1,014,673)	(1,472,487)
Net cash provided by (used in) investing activities - discontinued operations	(312,947)	(370,867)
Net cash (used in) investing activities	(701,726)	(1,843,354)
Cash Flows from Financing Activities
Proceeds from issuance of common stock and warrants	6,000,000	11,500,001
Proceeds from exercise of stock options	221,431	1,069,073
Stock issuance costs	(324,988)	(1,180,000)
Restructuring of debt		(100,000)
Principal reduction on obligation under capital lease	(3,446)	(1,709)
Principal reduction on repayment of debt	(6,916,664)	(2,416,668)
Net cash (used in) provided by financing activities - continuing operations	(1,023,667)	8,870,697
Net cash (used in) financing activities - discontinued operations		(8,500)
Net cash (used in) provided by financing activities	(1,023,667)	8,862,197
Net (decrease) increase in cash and cash equivalents	(5,133,107)	6,129,361
Cash and cash equivalents - beginning of period	8,744,545
Cash and cash equivalents - ending of period	3,611,438	8,744,545
Supplemental Information:
Interest expense paid	843,756	529,895
Income taxes paid	$ 14,806	$ 34,629

Consolidated Statements of Cas7

Consolidated Statements of Cash Flows (Parenthetical) - Fortress Credit Co LLC	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Non-cash investing and financing activities:
Issued number of common stock, shares | shares	200,000
Common stock price per share | $ / shares	$ 2.84
Aggregate amount of common stock issued | $	$ 568,000

Organization, History and Busin

Organization, History and Business	12 Months Ended
	Dec. 31, 2017
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. 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	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies 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. Basis of Presentation Our consolidated financial statements include our accounts, as well as those of our wholly-owned subsidiaries. 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. Cash and Cash Equivalents The Company considers cash and cash equivalents to include all stable, highly liquid investments with maturities of twelve 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 3 years Equipment and computer hardware 5 years Office furniture 5 years Leasehold improvements 5 years Long-Lived Assets The Company accounts for 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 carrying value of an asset may no longer be appropriate. We assess 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. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. ASC 350, requires that goodwill be tested for impairment on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including determining the fair value. Significant judgments required to estimate the fair value including estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment. There were no triggering events or impairments recorded to goodwill for the periods presented. 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 direct costs including payroll and related payroll taxes and benefits. 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 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, estimated economic life. Patent and Patent Application Costs Intangible assets include patents developed and purchased which are recorded at cost. The cost of the patents are capitalized and amortized over their useful lives. 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 year ended December 31, 2017, and 2016, respectively. The Company recognizes income tax interest and penalties as a separately identified component of general and administrative expense. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). The legislation significantly changed the U.S. tax law including a reduction to the corporate income tax rate from a maximum of 34% to a flat 21% rate, effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed, in reasonable detail to complete the accounting for certain income tax effect of the Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts due to additional analysis and changes to estimates, additional regulatory guidance that may be issued, changes in interpretations and assumptions the Company has made, and actions the Company may take because of tax reform. The accounting is expected to be complete in the second half of 2018. 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 and Deferred Revenue 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 it is the primary obligor in the arrangement. 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 of 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 from timing differences between the delivery of services and satisfaction of all revenue recognition criteria consistent with the Company’s revenue recognition policy. Deferred revenue results from the advance payment for services to be delivered over a period of time, usually less than one-year increments 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 or Black-Scholes option-pricing models, 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. 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 loss per share has not been presented since the effect of the assumed conversion of warrants and debt to purchase common shares would have an anti-dilutive effect. Concentrations of Credit Risk The Company primarily transacts its business with two financial institutions. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. Excluding discontinued operations, of the Company’s revenue earned during the year ended December 31, 2017, contracts with one specific advertising agency accounted for approximately 11% of total revenue. During the year ended December 31, 2016, approximately 19% was generated from contracts with an advertising agency. 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. 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. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements or financing activities with special purpose entities. The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We have identified the following accounting policies that we believe are key to an understanding of our financial statements. These are important accounting policies that require management’s most difficult, subjective judgments. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) released “ ASC 606 - Revenue from Contracts with Customers” Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2016, the FASB issued “ASU 2016 – 10 Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing” The standard may be applied retrospectively to each prior period presented, or using the modified retrospective approach, with the cumulative effect recognized as of the date of initial application. The Company will adopt the standard effective January 1, 2018, using the modified retrospective approach. The Company does not anticipate any material changes as a result of adopting the standard. The Company will complete the remainder of its evaluation during the first quarter of fiscal 2018. In January 2016, the (“FASB”) issued an Accounting Standards Update (“ASU”) “ASU 2016 – 01 Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued “ASU 2016 – 02 Leases” In March 2016, the FASB issued “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” In November 2016, the FASB issued “ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash”. In January 2017, the FASB issued “ ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment” In January 2017, the FASB issued “ASU 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”. Reclassification Certain reclassifications have been made to conform the 2016 amounts to the 2017 classifications for comparative purposes. The expense information described above with respect to the year ended December 31, 2016 reflect certain reclassifications to properly compare such amounts to the corresponding expense information for the year ended December 31, 2017. In particular, we note that expenses associated with one of our vendors, which were initially classified as general and administrative expenses, were reclassified to cost of revenue and sales and marketing expenses. For the year ended December 31, 2016, $826,430 was reclassed out of general and administrative expenses in the amount of $413,215 to sales and marketing expenses, and $413,215 to cost of revenue. For the year ended December 31, 2017, $132,593 from general and administrative and $52,869 from sales and marketing was reclassed to cost of revenue.

Accounts Receivable, net

Accounts Receivable, net	12 Months Ended
	Dec. 31, 2017
Accounts Receivable, net [Abstract]
Accounts Receivable, net	3. Accounts Receivable, net Accounts receivable consist of the following: December 31, 2017 2016 Accounts receivable $ 13,546,304 $ 9,302,208 Less: allowance for bad debts (540,586 ) (459,952 ) Accounts receivable, net $ 13,005,718 $ 8,842,256

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2017
Property and Equipment, net [Abstract]
Property and Equipment, net	4. Property and Equipment, net The following is a summary of property and equipment: December 31, 2017 2016 Equipment and computer hardware $ 250,589 $ 277,292 Office furniture 260,121 198,735 Leasehold improvements 342,230 206,902 Equipment held under capital lease 13,160 13,160 866,100 696,089 Less: accumulated depreciation (416,151 ) (285,401 ) $ 449,949 $ 410,688 Depreciation expense for the years ended December 31, 2017 and 2016 was $152,012 and $129,718, respectively.

Capitalized Software Developmen

Capitalized Software Development Costs, net	12 Months Ended
	Dec. 31, 2017
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: December 31, 2017 2016 Capitalized software development costs $ 3,428,846 $ 2,753,197 Less: accumulated amortization (1,943,561 ) (1,054,205 ) $ 1,485,285 $ 1,698,992 Amortization expense for the years ended December 31, 2017 and 2016 was $889,357 and $662,003, respectively. As of December 31, 2017, amortization expense for the remaining estimated lives of these costs is as follows: Year Ending December 31, 2018 $ 831,375 2019 478,986 2020 174,924 $ 1,485,285

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2017
Intangible Assets [Abstract]
Intangible Assets	6. Intangible Assets Patents The following is a summary of capitalized patent costs: December 31, 2017 2016 Patents $ 2,572,939 $ 2,431,210 Less: accumulated amortization (1,830,365 ) (1,115,392 ) $ 742,574 $ 1,315,818 During the year ended December 31, 2017, the Company assessed the patent portfolio and as a result of the assessment, abandoned certain capitalized costs and revised the estimated useful lives which results in an increase of amortization costs of approximately $581,000 for the year ended December 31, 2017. The useful lives of the patents were revised from an original 7-year life to new lives, ranging from 1 to 14 years remaining life. Amortization expenses for the years ended December 31, 2017 and 2016 was $714,973 and $203,459, respectively. A schedule of amortization expense over the estimated remaining lives of the patents for the next five fiscal years and thereafter is as follows: Year Ending December 31, 2018 $ 125,658 2019 125,646 2020 125,635 2021 125,622 Thereafter 240,013 $ 742,574 F-15 Other Intangible Assets, net The following is a summary of other intangible asset costs: December 31, 2017 2016 Technology $ 970,000 $ 970,000 Customer relationships 870,000 870,000 Less: accumulated amortization (671,993 ) (400,993 ) $ 1,168,007 $ 1,439,007 Amortization expenses for the years ended December 31, 2017 and 2016 $271,000 and $275,470, respectively. Technology and customer relationships have useful lives of 10 and 5 years respectively. A schedule of amortization expense over the estimated remaining lives of the other intangible assets for the next five fiscal years and thereafter is as follows: Year Ending December 31, 2018 $ 271,000 2019 271,000 2020 187,536 2021 97,000 2022 97,000 Thereafter 244,471 $ 1,168,007 Goodwill The Company does not amortize goodwill, but reduces the carrying amount of goodwill if management determines that its implied fair value has been impaired. The Company did not recognize an impairment expense for goodwill during the years ended December 31, 2017, and 2016, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2017
Accrued Expenses [Abstract]
Accrued Expenses	7. Accrued Expenses The following is a summary of accrued expenses: December 31, 2017 2016 Accrued payroll and related expenses $ 4,690,512 $ 879,300 Accrued cost of revenues 940,032 1,085,585 Accrued professional fees 764,095 26,038 Accrued legal settlement 3,500,000 - Other accrued expenses 16,900 190,021 $ 9,991,540 $ 2,180,94

Capital Leases

Capital Leases	12 Months Ended
	Dec. 31, 2017
Capital Leases [Abstract]
Capital Leases	8. Capital Leases The Company leases an office equipment under a capital lease that expires in 2018. The equipment has a cost of $13,160 as of December 31, 2017 and 2016, respectively. Minimum future lease payments under the capital lease at December 31, 2017 is $2,842, of which $86 represents interest. The net minimum lease payment is $2,756 which ends in 2018. The effective interest rate charged on the capital lease is approximately 7.428% per annum. The lease provides for a $1 purchase option. Interest charged to operations for the years ended December 31, 2017 and 2016 was $345 and $591, respectively. Depreciation charged to operations for the years ended December 31, 2017 and 2016 was $2,632 and $2,632, respectively.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2017
Discontinued Operations [Abstract]
Discontinued Operations	9. Discontinued Operations A discontinued operation is a component of the Company’s business that represents a separate major line of business that had been disposed of or is held for sale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative Consolidated Statement of Operations, Consolidated Statement of Cash Flows, and Consolidated Balance Sheets are re-presented as if the operation had been discontinued from the start of the comparative year. On February 7, 2017, the Company executed an Asset Purchase Agreement to sell the Wireless Application business for $400,000, of which $310,000 was received on the closing date and the remaining $90,000 will be paid upon the satisfaction of certain post-closing covenants. Of the $90,000 payable upon satisfaction of the post-closing covenants, $40,000 was earned and collected by the Company, with the remaining $50,000 not expected to be satisfied, for a total sale price of $350,000. The Company has reported the Wireless Application segment as Discontinued Operations in the Consolidated Statement of Operations and Consolidated Statements of Cash Flows with related assets and liabilities as of December 31, 2017 and 2016, included as Assets from discontinued operations and Liabilities from discontinued operations. The following table presents the assets and liabilities of the Wireless Applications business, as Assets from discontinued operations and Liabilities from discontinued operations in the Consolidated Balance Sheets: December 31, 2017 2016 Accounts receivable, net $ - $ 430,151 Other prepaid expenses - 9,455 Property, plant and equipment, net 6,951 35,516 Capitalized software development costs, net - 389,863 Other assets 3,645 5,731 Assets from discontinued operations $ 10,596 $ 870,716 Accounts payable 144,725 298,757 Accrued expenses 6,368 248,783 Deferred revenue 59,696 59,696 Current obligations under capital lease - - Liabilities from discontinued operations $ 210,789 $ 607,236 The following table presents the Discontinued Operations of the Wireless Applications business in the Consolidated Statement of Operations: December 31, 2017 2016 Revenue Wireless applications $ 53,298 $ 5,362,819 Cost of Revenue Cost of revenue 289,798 2,693,599 Gross profit (236,500 ) 2,669,220 Operating Expenses Sales and marketing 32,920 168,953 General and administrative 144,514 581,516 Depreciation and amortization 11,458 38,531 Total operating expenses 188,892 789,000 Other Income 56,535 - Net (loss) income from discontinued operations $ (368,857 ) $ 1,880,220 The following table presents the Wireless Applications business in the Consolidated Statement of Cash Flows: December 31, 2017 2016 Net cash (used in) provided by discontinued operating activities $ (217,640 ) $ 2,884,196 Net cash provided by (used in) discontinued investing activities 312,947 (370,867 ) Net cash (used in) discontinued financing activities - (8,500 ) Net increase in cash and cash equivalents $ 95,307 $ 2,504,829

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes [Abstract]
Income Taxes	10. Income Taxes On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). The legislation significantly changed the U.S. tax law including a reduction to the corporate income tax rate from a maximum of 34% to a flat 21% rate, effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed, in reasonable detail to complete the accounting for certain income tax effect of the Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The total impact to the Company’s US deferred taxes and current year tax provision related to the corporate rate reduction was approximately $8.2M. The ultimate impact may differ from these provisional amounts due to additional analysis and changes to estimates, additional regulatory guidance that may be issued, changes in interpretations and assumptions the Company has made, and actions the Company may take because of tax reform. The accounting is expected to be complete in the second half of 2018. Deferred income tax assets and liabilities are computed annually for differences between financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. We are subject to taxation in the United States and various state jurisdictions. We are not currently under examination by the Internal Revenue Service (IRS) or any state taxing authority. With a few exceptions, the company is no longer subject to income tax examination by the IRS for the tax years ended on or before September 30, 2014. To the extent net operating losses are utilized, the tax years in which the losses were generated remain open to examination by the IRS. Our accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of our net deferred tax assets. We primarily considered such factors as our history of operating losses, the nature of our deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, we do not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying consolidated balance sheets. December 31, 2017 2016 U.S. statutory rate 34.00 % 34.00 % State, net of federal benefit 0.08 % (4.61 )% Corporate rate change (55.80 )% - Permanent differences (0.89 )% (3.81 )% Less: valuation allowance 23.16 % (34.50 )% Effective tax rate (0.55 )% (8.92 )% For 2017 and 2016, our effective tax rate differs from the amount computed by applying the statutory federal and state income tax rates to net loss before income tax, primarily as the result of changes in valuation allowance and the legislation reducing the corporate income tax rate from a maximum of 34% to a flat 21% rate, effective January 1, 2018. The significant components of deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets Net operating losses $ 11,041,188 $ 14,020,558 Stock based compensation 1,717,125 1,772,228 Allowance for doubtful accounts 133,774 181,175 Intangible assets 720,903 544,333 Other reserves and accrued liabilities 1,564,689 462,380 15,177,679 16,980,674 Deferred tax liability Property and equipment (121,471 ) (216,473 ) Net deferred tax assets 15,056,208 16,764,201 Less: valuation allowance (15,056,208 ) (16,764,201 ) Deferred tax asset - net valuation allowance $ - $ - The net change in the valuation allowance for the year ended December 31, 2017 was $1,707,993. As of December 31, 2017, the Company has a federal net operating loss carryover of approximately $47,087,334 and state net operating loss carryover of approximately $30,775,306 available to offset future income for income tax reporting purposes, which will expire in various years through 2037, if not previously utilized. The Company’s ability to use the carryover net operating loss may be substantially limited or eliminated pursuant to Internal Revenue Code Section 382. A limitation may apply to the use of the net operation loss and credit carryforwards, under provisions of the Internal Revenue Code that are applicable if we experience an “ownership change”. That may occur, for example, as a result of trading in our stock by significant investors as well as issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a substantial reduction in the gross deferred tax. On April 3, 2017, the Company entered into a Tax Benefits Preservation Plan (the “Tax Benefits Protection Plan”). Effective April 3, 2017, the Board declared a dividend in the form of one preferred stock purchase right for each of the Company’s issued and outstanding common shares held of record as of the close of business on April 14, 2017. The purpose of the Tax Benefits Protection Plan is to diminish the risk that the Company’s ability to use its net operating losses and certain other tax assets to reduce potential future federal income tax obligations would become subject to limitations by reason of the Company experiencing an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended. The Tax Benefits Protection Plan is intended to act as a deterrent to any person or group acquiring beneficial ownership of 4.99% or more of the outstanding Common Stock without the approval of the Board. We adopted the provisions of ASC 740-10. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax provisions that have been taken or expected to be taken on a tax return. We evaluated our tax positions and state filings and have determined we had no material unrecognized income tax assets or liabilities for the years ended December 31, 2017 and 2016. 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 years ended December 31, 2017 and 2016, there were no federal income tax, or related interest and penalty items in the income statement, or liability on the balance sheet. Income tax expense for 2017, and 2016, which was composed of the following, relates to state income and minimum tax and alternative minimum tax. December 31, 2017 2016 Federal $ (24,572 ) $ 24,572 State (55,950 ) 90,099 Total current income taxes $ (80,522 ) $ 114,671 We are not currently involved in any income tax examinations.

Note Payable

Note Payable	12 Months Ended
	Dec. 31, 2017
Note Payable [Abstract]
Note Payable	11. Note Payable December 31, 2017 2016 Notes Payable: Principal outstanding $ - $ 6,916,664 Accrued Interest - 469,060 Accrued Termination Fee - 258,543 - 7,644,267 Less: discount on note payable - (794,547 ) - 6,849,720 Less: current portion, net - (2,896,893 ) Long-term portion, net $ - $ 3,952,827 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 “NPA”) with Fortress Credit Co LLC, as collateral agent (the “Collateral Agent,” or “Fortress”), and CF DB EZ LLC (the “Revenue Participant”) and Fortress (the “Note Purchaser” and together with the Revenue Participant, the “Investors”). At the closing of the NPA, 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 for an aggregate purchase price of $1,000,000 or $3.817 per share (which represents the trailing 30-day average closing price). After deducting original issue discount of 10% on the Notes and a structuring fee to the Investors, the Company received proceeds of $8,850,000, prior to the payment of related legal and due diligence expenses. On July 11, 2017, TAR SITO LendCo LLC (“TAR”), an entity owned and controlled by Julian Singer, the son of Karen Singer, acquired from Fortress Credit Opportunities V CLO Limited, CF EZ LLC, and CF DB EZ LLC all rights, title and interest as “Purchaser” and “Revenue Participant” under the NPA and related documents. On August 1, 2017, the Company used approximately $4,900,000 of the proceeds of an offering common stock and warrants to prepay in full all outstanding principal, accrued and unpaid interest due through the date of repayment, and termination fees of $350,000 recorded as interest expense with respect to the Note. The Company has no further obligations with respect to the Note but as of December 31, 2017, remained obligated to continue to make payment with respect to the Revenue Stream upon the terms, and subject to the conditions, of the NPA. Prior to the repayment of the Note in full on August 1, 2017, the principal amount of the Note bore interest at a rate equal to LIBOR plus 9% per annum. Such interest was payable in cash, except that 2% per annum of such interest was to be paid-in-kind, by increasing the principal amount of the Note by the amount of such interest. The term of the Note was 42 months and the Company was required to make, beginning in October 2015, monthly amortization payments on the Note, each in a principal amount equal to $333,334 until the Note was paid in full. The Company was also required to apply 85% of Monetization Revenues (as defined in the NPA) from certain of the Company’s patents unrelated to its core business activities (the “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 were paid in full. After the repayment of the principal amount of the Note and all accrued interest thereunder, which occurred on August 1, 2017, the Company is obligated to pay the Revenue Participants (a) 50% of Monetization Revenues until such time as the Revenue Participants have received $2,500,000 in the aggregate with respect to the Revenue Stream, (b) 30% of the Monetization Revenues thereafter, until such time that the Revenue Participants have received $5,000,000 in the aggregate with respect to the Revenue Stream, and (c) 10% of the Monetization Revenues thereafter, until the Revenue Stream has been fully satisfied. In addition, upon any acceleration of the Notes and Revenue Stream, the Company is obligated to pay the Revenue Participants 100% of the Monetization Revenues until the Revenue Stream has been fully satisfied. The Company was also required to pay $350,000 to the Note Purchaser upon repayment of the Note, which payment was also made on August 1, 2017. The NPA contained 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 was evidenced by, and reflected in, a Patent License Agreement between the Company, its subsidiary Single Touch Interactive, Inc., and Fortress. The Patent License Agreement provides that the Collateral Agent may only use such license following an Event of Default. Pursuant to a Security Agreement among the parties, the Company granted the Collateral Agent a first priority senior security interest in all of the Company’s assets. The Company and the Collateral Agent assigned a value of $500,000 to the revenue sharing terms of the NPA 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 years ended December 31, 2017 and 2016, the Company recognized $130,653 and $140,238, respectively, in licensing revenue and interest expense from amortization of the deferred revenue. On March 1, 2016, the Company entered into Amendment No.1 (the “Amendment”) to the NPA. Pursuant to the terms of the Amendment, principal payment on the Notes issued pursuant to the NPA was 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 years ended December 31, 2017 and 2016 was $374,287 and $833,704, respectively. Amortization of the discounts for the years ended December 31, 2017 totaled $794,548 and $767,393, respectively, which was charged to interest expense. Accrual of termination fees for the years ended December 31, 2017 was $91,457 and $98,166, respectively, which was charged to interest expense. On February 20, 2018, the Company and TAR Mr. Julian Singer, Ms. Karen Singer and Mr. Gary Singer (collectively, the “TAR Group”), entered into a settlement agreement, pursuant to which the NPA was terminated and discharged and all pending litigation between the Company and the members of the TAR Group was dismissed with prejudice in exchange for a lump sum payment of $3.5 million from the Company to the TAR Group. No future amounts are due with respect to the NPA or the Revenue Stream and the lump sum payment has been recorded as of December 31, 2017. See Note 18, “Subsequent Events.”

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Dec. 31, 2017
Stock Based Compensation [Abstract]
Stock Based Compensation	12. Stock Based Compensation During the year ended December 31, 2017, the Company recognized stock-based compensation expense totaling $2,165,882, through the vesting of 424,214 common stock options. Of the $2,165,882 in stock compensation expense, $1,348,769 is included in general and administrative expense, of which $437 is included in discontinued operations, and $817,113 is included in sales and marketing expense, of which $54 is included in discontinued operations. During the year ended December 31, 2016, the Company recognized stock-based compensation expense totaling $1,337,912, through the vesting of 630,361 common stock options. Of the $1,337,912 in stock compensation expense, $1,044,032 is included in general and administrative expense, of which $3,378 is included in discontinued operations, and $293,880 is included in sales and marketing expense, of which $1,588 is included in discontinued operations. During the year ended December 31, 2017, the Company recognized restricted stock-based compensation expense totaling $179,830 which is entirely included in general and administrative expense. During the year ended December 31, 2016, the Company recognized $0 in restricted stock-based compensation expense.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions On April 21, 2014, SITO Mobile R&D IP, LLC, the Company’s wholly-owned subsidiary, through a joint venture (the “JV”) with Personalized Media Communications, LLC (“PMC”), entered into a Joint Licensing Program Agreement (the “JV License 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 (“JV Patents”), including an exclusive license to assert the JV Patents against certain infringing parties in the media distribution industry. In exchange for the License, the Licensee has agreed to pay the JV an annual fee of $1,250,000 for a minimum of three years (“Annual Fee”), subject to a right of the Licensee to renew the License for an additional four years. Under the arrangement, if 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 would be deemed to be perpetual. For JV Patent 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 PMC have agreed serve as co-plaintiffs with the Licensee in infringement actions under the License and the Licensee has agreed to be responsible for any out-of-pocket costs of the JV associated with being a co-plaintiff in supporting the Licensee in such litigation, including attorneys’ fees. The Licensee will pay the Annual Fee and any Share of Proceeds to the JV. The Company is entitled to 30% of any proceeds received by the JV. In the event that the Licensee does not assert any infringement actions under its rights in the License prior to April 2019, 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. On May 23, 2017, the parties renewed the JV License Agreement for a perpetual license in exchange for an upfront payment to the JV of $4,500,000, of which the Company received $1,350,000 and reported as earnings from the JV in 2017. The Company’s share of the renewal fee was paid to the Note Purchaser in accordance with the terms of the NPA. (See Note 11 – Note Payable.) As of December 31, 2017, the Company has $0.0 in deferred revenue under the JV License Agreement.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2017
Fair Value [Abstract]
Fair Value	14. 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 ● Level 2 ● Level 3 The Company identified the warrants issued as part of the July 2017 offering as liabilities that are required to be presented on the consolidated balance sheets at fair value within Level 2 in the fair value hierarchy because we use inputs that are observable or can be corroborated by observable data. The Company measures the fair value on a recurring basis each reporting period for these warrants and for the year ended December 31, 2017, recorded a net loss on revaluation of the warrants of $477,810.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	15. Stockholders’ Equity Common Stock The holders of the Company’s common stock are entitled to one vote per share of common stock held. During the year ended December 31, 2017, the Company issued 1,358,482 shares of common stock of which 158,482 shares were issued upon the exercise of stock options for which the Company received $221,431 in gross proceeds, and the Company received $5,675,012 in proceeds net of legal and accounting services in connection with the registration and issuance of 1,200,000 shares of common stock. During the year ended December 31, 2016, the Company issued 3,523,527 shares of its common stock of which 200,000 shares were issued to Fortress Credit Co LLC at $2.84 per share for an aggregate amount $568,000, in consideration for the amendment of the NPA, 256,860 shares were issued for options exercised for which the Company received $1,069,073 in gross proceeds, and the Company received $10,320,001 in proceeds net of legal and accounting services in connection with the registration and issuance of 3,066,667 shares of common stock. Warrants The Company granted an aggregate of warrants to purchase an aggregate of 320,000 shares of its common stock during the year ended December 31, 2017, none of which have been exercised or expired. During the year ended December 31, 2016, no warrants were granted, exercised, or expired. Options During the year ended December 31, 2017, the Company expenses performance options that were granted to its employees as detailed below. 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. Stock Incentive Plans The Company established the 2017 Stock Incentive Plan while closing the 2008, 2009, and 2010 plans (collectively, the “Plans”) under which 2,500,000 shares have been reserved for the issuance of stock options, stock appreciation rights, restricted stock, stock grants and other equity awards. The Plans are administered by the Compensation Committee of the Board of Directors which determines the individuals to whom awards shall be granted as well as the type, terms, conditions, option price and the duration of each award. As of December 31, 2017, there were 157,834 shares available to grant under the 2017 Stock Incentive Plan. A stock option grant allows the holder of the option to purchase a share of the Company’s common stock in the future at a stated price. Options. Restricted Stock and Restricted Stock Units granted under the Plans vest as determined by the Company’s Compensation Committee. Options granted under the Plans expire over varying terms, but not more than ten years from the date of grant. Stock option activity for 2017 and 2016 is as follows: Stock Option Activity Under the Plans Stock Options Exercise Price per Share Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance - 12/31/15 2,593,257 $2.25 - $7.06 $ 4.78 2.82 Grants 844,000 $2.58 - $4.74 3.64 Exercised (256,860 ) $2.25 - $4.69 (4.16 ) Cancellations (1,268,010 ) $2.50 - $6.50 (5.42 ) Balance - 12/31/16 1,912,387 $2.50 - $7.06 $ 3.93 3.62 Grants 1,936,000 $2.60 - $6.66 5.49 Exercised (158,482 ) $2.50 - $6.87 (3.53 ) Cancellations (1,396,691 ) $2.50 - $7.06 (4.06 ) Balance - 12/31/17 2,293,214 $2.50 - $6.76 $ 5.20 7.93 For the years ended December 31, 2017 and 2016, the Company recognized compensation expense related to stock option grants of approximately $2.1 million and $1.3 million, respectively. The estimated fair value of each option award granted was determined on the date of grant using an option pricing model with the following assumptions for option grants during the year ended December 31, 2017 and 2016, respectively. December 31, 2017 2016 Weighted Average Risk-Free Interest Rate 2.38 % 1.51 % Weighted Average Expected Volatility 95.49 % 95.81 % Dividend Yield - - Weighted Average Expected Option Term (Years) 9.48 5.74 Weighted Average Grant Date Fair Value 6.23 3.60 No dividend yield was assumed because the Company has never paid a cash dividend on its common stock and does not expect to pay dividends in the foreseeable future. Volatilities were developed using the Company’s historical volatility. The risk-free interest rate was developed using the U.S. Treasury yield for periods equal to the expected like of stock options on the grant date. The expected option term for grants made during 2017 and 2016 is based on the average expiration date of all stock options granted during the respective periods. This method of determining the expected holding period was utilized because the Company does not have sufficient historical experience from which to estimate the period. A summary of the Company’s non-vested options to purchase shares as of December 31, 2017 and changes during the year ended December 31, 2017 and 2016 are presented below: Number of Options Weighted Average Exercise Price Non-Vested Balance - 12/31/15 $ 620,326 $ 2.92 Grants 844,000 Vested (165,000 ) Forfeited (17,300 ) Non-Vested Balance - 12/31/16 $ 1,282,026 $ 3.26 Grants 1,936,000 Vested (244,214 ) Forfeited (924,812 ) Non-Vested Balance - 12/31/17 $ 2,049,000 $ 6.07 A summary of the Company’s restricted stock activity as of December 31, 2017 and changes during the year ended December 31, 2017 and 2016 are presented below: Restricted Stock Activity Number of Shares Weighted Average Non-Vested Balance - 12/31/15 - $ - Grants - - Vested - - Forfeited - - Non-Vested Balance - 12/31/16 - $ - Grants 123,333 4.26 Vested (8,621 ) 4.35 Forfeited - - Non-Vested Balance - 12/31/17 114,712 $ 4.25 For the years ended December 31, 2017 and 2016 the Company recognized compensation related to restricted stock unit grants of approximately $0.2 million and $0, respectively. Additional compensation expense of $0.3 million relating to the unvested portion of restricted stock granted is expected to be recognized over a remaining average period of 1.10 years. Warrants The Company issued warrants as part of its offering in 2017. A summary of warrant activity is as follows: Warrants Exercise Price per Share Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance - 12/31/15 - - $ - - Grants - - - Exercised - - - Cancellations - - - Balance - 12/31/16 - - $ - - Grants 320,000 $ 6.25 6.25 Exercised - - - Cancellations - - - Balance - 12/31/17 320,000 $ 6.25 $ 6.25 4.58

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	16. Commitments and Contingencies Operating Leases The Company leases office space in Jersey City, New Jersey; Chicago, Illinois; Dallas, Texas; New York, New York; Atlanta, Georgia; Miami, Florida; Portland, Oregon; and Boston, Massachusetts. 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 and April 7, 2017, expires on January 31, 2019 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 other office locations are month-to-month commitments. Rent expense for the years ended December 31, 2017 and 2016 was $480,818 and $424,832, respectively. Minimum future rental payments under non-cancellable operating leases with terms in excess of one year as of December 31, 2017 for the next five fiscal years and in the aggregate are: 2018 $ 333,623 2019 322,152 2020 26,846 2021 - 2022 - $ 682,621 Legal In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions. As of December 31, 2017, the Company is not aware of any asserted or un-asserted claims, negotiations and legal actions for which a loss is considered reasonably possible of occurring and would require recognition under guidance in ASC 450. SEC Lawsuit On February 17, 2017, plaintiff Sandi Roper commenced a purported securities class action against us and certain of our current and former officers and directors in the United States District Court for the District of New Jersey captioned Roper v. SITO Mobile, Ltd., Case No. 17-cv-1106-ES-MAH (D.N.J. filed Feb. 17, 2017). On May 8, 2017, Red Oak Fund, LP, Red Oak Long Fund LP, Red Oak Institutional Founders Long Fund, and Pinnacle Opportunities Fund, LP (collectively, “Red Oak”) were appointed lead plaintiffs. On June 22, 2017, Red Oak filed an amended complaint, purporting to represent a class of shareholders who purchased our common stock between August 15, 2016 and January 2, 2017 (“Class Period”). The amended complaint names as defendants our directors and certain of our officers during the Class Period. It alleges that defendants violated section 11 the Securities Act in connection with the September 16, 2016 offering of stock, by allegedly omitting material information from the registration statement and prospectus, and that the individual defendants are liable as controlling persons under section 15 of the 1933 Act. The amended complaint also alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 ( “Exchange Act”) and SEC Rule 10b-5 promulgated thereunder by allegedly making materially false or misleading statements regarding its media placement revenues, and that the individual defendants are liable as controlling persons under section 20(a) of the Exchange Act. The amended complaint seeks unspecified damages. Defendants moved to dismiss the amended complaint on September 1, 2017. That motion is pending. Discovery has not commenced, and no trial date has been set for this action. TAR SITO On November 3, 2017, a complaint was filed against the Company in the Supreme Court of the State of New York (the “Complaint”) by TAR. The Complaint alleges that the Company has breached its obligations to undertake best efforts to diligently pursue the monetization of the Patents under the NPA and to provide timely information with respect to the Company’s intellectual property to the Revenue Participant (as defined in the NPA), in addition to other alleged minor technical and curable defaults. However, the Company’s obligation to pay any amounts to TAR under the Agreement is entirely dependent on the generation by the Company of revenues from the monetization of the Patents, and the Company has not generated substantial revenues from these Patents to date. Notwithstanding the Complaint, the Company believes that it has diligently undertaken its best efforts to monetize the Patents (which efforts have been described in detail to TAR in writing), and that it has fully complied with all of the covenants under the Agreement and is not otherwise in default under the Agreement. On February 20, 2018, the Company and the TAR Group, entered into a settlement agreement, pursuant to which the NPA was terminated and discharged and all pending litigation between the Company and the members of the TAR Group was dismissed with prejudice in exchange for a lump sum payment of $3.5 million from the Company to the TAR Group. No future amounts are due with respect to the NPA or the Revenue Stream and the lump sum payment has been recorded as of December 31, 2017. See Note 18, “Subsequent Events”. Fort Ashford In November 2017, the Company received a complaint filed by Fort Ashford Funds, LLC (“Ashford”), in the Superior Court of the State of California, Orange County (the “Ashford Complaint”). The Ashford Complaint claims that the Company issued certain warrants to Panzarella Consulting, LLC and Patrick Panzarella (together “Panzarella”) giving them the option to purchase, in the aggregate, 5,000,000 shares of the Company’s common stock at a price of fifty cents ($.50) per share. Through a series of transfers, the purported warrants were allegedly transferred to Ashford, who which is now seeking to exercise such purported warrants or to obtain damages. However, the Company has made a thorough inquiry into these matters, and it is unaware of the existence of any warrant or other agreement that provides that the purported warrants exist or were ever issued to Panzarella or any other person. As of this time, the Ashford Complaint has failed to provide any evidence of the existence of the purported warrant, or the ability and right of Ashford to exercise such warrant. The Company has asserted a number of affirmative defenses to the claim in its Answer. As the case is in the initial discovery phase, no assessment can be made at this time. The Company believes the claims are baseless and plans to defend accordingly.

Fourth Quarter Charges and Corr

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements	12 Months Ended
	Dec. 31, 2017
Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements [Abstract]
Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements	17. Fourth Quarter Charges and Adjustments During the three months ended December 31, 2017, the Company recorded the following adjustments and charges: · Settlement with TAR totaling $3.5 million. · Reclassified previously recognized license fee revenue of $111,000 and recognized the balance of the perpetual license fee aggregating $1,350,000 as earnings from the Joint Venture of $1.35 million. · Reclassified certain professional fees, aggregating $0.3 million, previously charged to operations as costs relating to stock issuance costs.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	18. Subsequent Events On February 9, 2018, the Company issued 2,600,000 shares of its common stock at a public offering price of $5.00 per share for gross proceeds of approximately $13.0 million. On February 22, 2018, the Company issued an additional 390,000 shares of common stock at an offering price of $5.00 per share, in connection with the exercise of an underwriter’s option, for gross proceeds of an additional $1.8 million. On February 20, 2018, the Company the Company and TAR, Mr. Julian Singer, Ms. Karen Singer and Mr. Gary Singer (collectively, the “TAR Group”), entered into a settlement agreement, pursuant to which that NPA was been terminated and discharged and all pending litigation between the Company and the members of the TAR Group was dismissed with prejudice in exchange for a lump sum payment of $3.5 million to the TAR Group. Pursuant to such settlement, no further amounts are due with respect to the Revenue Stream.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies [Abstract]
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.
Basis of Presentation	Basis of Presentation Our consolidated financial statements include our accounts, as well as those of our wholly-owned subsidiaries. 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.
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 twelve 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 3 years Equipment and computer hardware 5 years Office furniture 5 years Leasehold improvements 5 years
Long-Lived Assets	Long-Lived Assets The Company accounts for 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 carrying value of an asset may no longer be appropriate. We assess 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.
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. ASC 350, requires that goodwill be tested for impairment on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including determining the fair value. Significant judgments required to estimate the fair value including estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment. There were no triggering events or impairments recorded to goodwill for the periods presented.
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 direct costs including payroll and related payroll taxes and benefits. 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 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, estimated economic life.
Patent and Patent Application Costs	Patent and Patent Application Costs Intangible assets include patents developed and purchased which are recorded at cost. The cost of the patents are capitalized and amortized over their useful lives.
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 year ended December 31, 2017, and 2016, respectively. The Company recognizes income tax interest and penalties as a separately identified component of general and administrative expense. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). The legislation significantly changed the U.S. tax law including a reduction to the corporate income tax rate from a maximum of 34% to a flat 21% rate, effective January 1, 2018. The SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed, in reasonable detail to complete the accounting for certain income tax effect of the Act. The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts due to additional analysis and changes to estimates, additional regulatory guidance that may be issued, changes in interpretations and assumptions the Company has made, and actions the Company may take because of tax reform. The accounting is expected to be complete in the second half of 2018.
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 and Deferred Revenue	Revenue Recognition and Deferred Revenue 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 it is the primary obligor in the arrangement. 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 of 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 from timing differences between the delivery of services and satisfaction of all revenue recognition criteria consistent with the Company’s revenue recognition policy. Deferred revenue results from the advance payment for services to be delivered over a period of time, usually less than one-year increments
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 or Black-Scholes option-pricing models, 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.
Loss per Share	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 loss per share has not been presented since the effect of the assumed conversion of warrants and debt to purchase common shares would have an anti-dilutive effect.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company primarily transacts its business with two financial institutions. The amount on deposit in that one institution may from time to time exceed the federally-insured limit. Excluding discontinued operations, of the Company’s revenue earned during the year ended December 31, 2017, contracts with one specific advertising agency accounted for approximately 11% of total revenue. During the year ended December 31, 2016, approximately 19% was generated from contracts with an advertising agency. 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.
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.
Off-Balance Sheet Arrangements	Off-Balance Sheet Arrangements We have no off-balance sheet arrangements or financing activities with special purpose entities. The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We have identified the following accounting policies that we believe are key to an understanding of our financial statements. These are important accounting policies that require management’s most difficult, subjective judgments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) released “ ASC 606 - Revenue from Contracts with Customers” Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In April 2016, the FASB issued “ASU 2016 – 10 Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing” The standard may be applied retrospectively to each prior period presented, or using the modified retrospective approach, with the cumulative effect recognized as of the date of initial application. The Company will adopt the standard effective January 1, 2018, using the modified retrospective approach. The Company does not anticipate any material changes as a result of adopting the standard. The Company will complete the remainder of its evaluation during the first quarter of fiscal 2018. In January 2016, the (“FASB”) issued an Accounting Standards Update (“ASU”) “ASU 2016 – 01 Recognition and Measurement of Financial Assets and Financial Liabilities” In February 2016, the FASB issued “ASU 2016 – 02 Leases” In March 2016, the FASB issued “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” In November 2016, the FASB issued “ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash”. In January 2017, the FASB issued “ ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment” In January 2017, the FASB issued “ASU 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”.
Reclassification	Reclassification Certain reclassifications have been made to conform the 2016 amounts to the 2017 classifications for comparative purposes. The expense information described above with respect to the year ended December 31, 2016 reflect certain reclassifications to properly compare such amounts to the corresponding expense information for the year ended December 31, 2017. In particular, we note that expenses associated with one of our vendors, which were initially classified as general and administrative expenses, were reclassified to cost of revenue and sales and marketing expenses. For the year ended December 31, 2016, $826,430 was reclassed out of general and administrative expenses in the amount of $413,215 to sales and marketing expenses, and $413,215 to cost of revenue. For the year ended December 31, 2017, $132,593 from general and administrative and $52,869 from sales and marketing was reclassed to cost of revenue.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Schedule of property and equipment, net estimated useful lives	Software development 3 years Equipment and computer hardware 5 years Office furniture 5 years Leasehold improvements 5 years

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	12 Months Ended
	Dec. 31, 2017
Accounts Receivable, net [Abstract]
Schedule of accounts receivable	December 31, 2017 2016 Accounts receivable $ 13,546,304 $ 9,302,208 Less: allowance for bad debts (540,586 ) (459,952 ) Accounts receivable, net $ 13,005,718 $ 8,842,256

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2017
Property and Equipment, net [Abstract]
Summary of property and equipment	December 31, 2017 2016 Equipment and computer hardware $ 250,589 $ 277,292 Office furniture 260,121 198,735 Leasehold improvements 342,230 206,902 Equipment held under capital lease 13,160 13,160 866,100 696,089 Less: accumulated depreciation (416,151 ) (285,401 ) $ 449,949 $ 410,688

Capitalized Software Developm30

Capitalized Software Development Costs, net (Tables)	12 Months Ended
	Dec. 31, 2017
Capitalized Software Development Costs, net [Abstract]
Summary of capitalized software development costs	December 31, 2017 2016 Capitalized software development costs $ 3,428,846 $ 2,753,197 Less: accumulated amortization (1,943,561 ) (1,054,205 ) $ 1,485,285 $ 1,698,992
Summary of amortization expense for the estimated lives	Year Ending December 31, 2018 $ 831,375 2019 478,986 2020 174,924 $ 1,485,285

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Summary of capitalized patent costs	December 31, 2017 2016 Patents $ 2,572,939 $ 2,431,210 Less: accumulated amortization (1,830,365 ) (1,115,392 ) $ 742,574 $ 1,315,818
Summary of amortization expense over the estimated remaining lives of the patents and other intangible assets	Year Ending December 31, 2018 $ 125,658 2019 125,646 2020 125,635 2021 125,622 Thereafter 240,013 $ 742,574
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Summary of other intangible asset costs	December 31, 2017 2016 Technology $ 970,000 $ 970,000 Customer relationships 870,000 870,000 Less: accumulated amortization (671,993 ) (400,993 ) $ 1,168,007 $ 1,439,007
Summary of amortization expense over the estimated remaining lives of the patents and other intangible assets	Year Ending December 31, 2018 $ 271,000 2019 271,000 2020 187,536 2021 97,000 2022 97,000 Thereafter 244,471 $ 1,168,007

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued Expenses [Abstract]
Summary of accrued expenses	December 31, 2017 2016 Accrued payroll and related expenses $ 4,690,512 $ 879,300 Accrued cost of revenues 940,032 1,085,585 Accrued professional fees 764,095 26,038 Accrued legal settlement 3,500,000 - Other accrued expenses 16,900 190,021 $ 9,991,540 $ 2,180,944

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2017
Discontinued Operations [Abstract]
Schedule of discontinued operations including balance sheets, statement of operations and statement of cash flows	December 31, 2017 2016 Accounts receivable, net $ - $ 430,151 Other prepaid expenses - 9,455 Property, plant and equipment, net 6,951 35,516 Capitalized software development costs, net - 389,863 Other assets 3,645 5,731 Assets from discontinued operations $ 10,596 $ 870,716 Accounts payable 144,725 298,757 Accrued expenses 6,368 248,783 Deferred revenue 59,696 59,696 Current obligations under capital lease - - Liabilities from discontinued operations $ 210,789 $ 607,236 December 31, 2017 2016 Revenue Wireless applications $ 53,298 $ 5,362,819 Cost of Revenue Cost of revenue 289,798 2,693,599 Gross profit (236,500 ) 2,669,220 Operating Expenses Sales and marketing 32,920 168,953 General and administrative 144,514 581,516 Depreciation and amortization 11,458 38,531 Total operating expenses 188,892 789,000 Other Income 56,535 - Net (loss) income from discontinued operations $ (368,857 ) $ 1,880,220 December 31, 2017 2016 Net cash (used in) provided by discontinued operating activities $ (217,640 ) $ 2,884,196 Net cash provided by (used in) discontinued investing activities 312,947 (370,867 ) Net cash (used in) discontinued financing activities - (8,500 ) Net increase in cash and cash equivalents $ 95,307 $ 2,504,829

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes [Abstract]
Schedule of effective tax rate	December 31, 2017 2016 U.S. statutory rate 34.00 % 34.00 % State, net of federal benefit 0.08 % (4.61 )% Corporate rate change (55.80 )% - Permanent differences (0.89 )% (3.81 )% Less: valuation allowance 23.16 % (34.50 )% Effective tax rate (0.55 )% (8.92 )%
Summary of significant components of deferred tax assets and liabilities	December 31, 2017 2016 Deferred tax assets Net operating losses $ 11,041,188 $ 14,020,558 Stock based compensation 1,717,125 1,772,228 Allowance for doubtful accounts 133,774 181,175 Intangible assets 720,903 544,333 Other reserves and accrued liabilities 1,564,689 462,380 15,177,679 16,980,674 Deferred tax liability Property and equipment (121,471 ) (216,473 ) Net deferred tax assets 15,056,208 16,764,201 Less: valuation allowance (15,056,208 ) (16,764,201 ) Deferred tax asset - net valuation allowance $ - $ -
Schedule of state income and minimum tax and alternative minimum tax	December 31, 2017 2016 Federal $ (24,572 ) $ 24,572 State (55,950 ) 90,099 Total current income taxes $ (80,522 ) $ 114,671

Note Payable (Tables)

Note Payable (Tables)	12 Months Ended
	Dec. 31, 2017
Note Payable [Abstract]
Schedule of note payable	December 31, 2017 2016 Notes Payable: Principal outstanding $ - $ 6,916,664 Accrued Interest - 469,060 Accrued Termination Fee - 258,543 - 7,644,267 Less: discount on note payable - (794,547 ) - 6,849,720 Less: current portion, net - (2,896,893 ) Long-term portion, net $ - $ 3,952,827

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2017
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of company issued warrants	Warrants Exercise Price per Share Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance - 12/31/15 - - $ - - Grants - - - Exercised - - - Cancellations - - - Balance - 12/31/16 - - $ - - Grants 320,000 $ 6.25 6.25 Exercised - - - Cancellations - - - Balance - 12/31/17 320,000 $ 6.25 $ 6.25 4.58
Stock Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option activity	Stock Option Activity Under the Plans Stock Options Exercise Price per Share Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance - 12/31/15 2,593,257 $2.25 - $7.06 $ 4.78 2.82 Grants 844,000 $2.58 - $4.74 3.64 Exercised (256,860 ) $2.25 - $4.69 (4.16 ) Cancellations (1,268,010 ) $2.50 - $6.50 (5.42 ) Balance - 12/31/16 1,912,387 $2.50 - $7.06 $ 3.93 3.62 Grants 1,936,000 $2.60 - $6.66 5.49 Exercised (158,482 ) $2.50 - $6.87 (3.53 ) Cancellations (1,396,691 ) $2.50 - $7.06 (4.06 ) Balance - 12/31/17 2,293,214 $2.50 - $6.76 $ 5.20 7.93
Summary of estimated fair value of each option award granted	December 31, 2017 2016 Weighted Average Risk-Free Interest Rate 2.38 % 1.51 % Weighted Average Expected Volatility 95.49 % 95.81 % Dividend Yield - - Weighted Average Expected Option Term (Years) 9.48 5.74 Weighted Average Grant Date Fair Value 6.23 3.60
Summary of nonvested options to purchase shares	Number of Options Weighted Average Exercise Price Non-Vested Balance - 12/31/15 $ 620,326 $ 2.92 Grants 844,000 Vested (165,000 ) Forfeited (17,300 ) Non-Vested Balance - 12/31/16 $ 1,282,026 $ 3.26 Grants 1,936,000 Vested (244,214 ) Forfeited (924,812 ) Non-Vested Balance - 12/31/17 $ 2,049,000 $ 6.07
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock activity	Restricted Stock Activity Number of Shares Weighted Average Non-Vested Balance - 12/31/15 - $ - Grants - - Vested - - Forfeited - - Non-Vested Balance - 12/31/16 - $ - Grants 123,333 4.26 Vested (8,621 ) 4.35 Forfeited - - Non-Vested Balance - 12/31/17 114,712 $ 4.25

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Schedule of minimum future rental payments under non-cancellable operating leases	2018 $ 333,623 2019 322,152 2020 26,846 2021 - 2022 - $ 682,621

Fourth Quarter Charges and Co38

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2017
Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements [Abstract]
Summary of correction of errors in previously reported	June 30, 2017 Previously As Reported Adjustments Revised Assets Current assets Cash and cash equivalents $ 3,176,550 $ - $ 3,176,550 Accounts receivable, net 9,980,386 - 9,980,386 Other prepaid expenses 540,183 - 540,183 Assets from discontinued operations 14,390 - 14,390 Total current assets 13,711,509 - 13,711,509 Property and equipment, net 500,581 - 500,581 Other assets Capitalized software development costs, net 1,852,959 - 1,852,959 Intangible assets: Patents 1,315,302 - 1,315,302 Other intangible assets, net 1,303,507 - 1,303,507 Goodwill 6,444,225 - 6,444,225 Other assets 112,815 - 112,815 Total other assets 11,028,808 - 11,028,808 Total assets $ 25,240,898 $ - $ 25,240,898 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 6,109,088 $ - $ 6,109,088 Accrued expenses 1,935,235 - 1,935,235 Deferred revenue 408,225 (337,500 ) 70,725 Other current liabilities, including security deposit 7,500 - 7,500 Current obligations under capital lease 3,576 - 3,576 Note payable, net - current portion 4,399,981 - 4,399,981 Warrant liability - - - Liabilities from discontinued operations 266,011 - 266,011 Total current liabilities 13,129,616 (337,500 ) 12,792,116 Long-term liabilities Obligations under capital lease 936 - 936 Deferred revenue, noncurrent portion 985,685 (985,685 ) - Total long-term liabilities 986,621 (985,685 ) 936 Total liabilities 14,116,237 (1,323,185 ) 12,793,052 Preferred stock - - - Common stock 20,715 - 20,715 Additional paid-in capital 158,428,152 - 158,428,152 Accumulated deficit (147,324,206 ) 1,323,185 (146,001,021 ) Total stockholders' equity 11,124,661 1,323,185 12,447,846 Total liabilities and stockholders' equity $ 25,240,898 $ - $ 25,240,898 Three Months Ended June 30, 2017 Previously As Reported Adjustments Revised Revenue Media placement $ 10,725,454 $ - $ 10,725,454 License and royalties 78,667 (49,356 ) 29,311 Total revenue 10,804,121 (49,356 ) 10,754,765 Cost of Revenue Cost of revenue 5,626,862 - 5,626,862 Gross profit 5,177,259 (49,356 ) 5,127,903 Operating expenses Sales and marketing 3,735,131 - 3,735,131 General and administrative 4,087,978 - 4,087,978 Legal settlement - - - Depreciation and amortization 120,923 - 120,923 Total operating expenses 7,944,032 - 7,944,032 (Loss) from operations (2,766,773 ) (49,356 ) (2,816,129 ) Other Income (Expense) Earnings from joint venture - 1,372,541 1,372,541 (Loss) on revaluation of warrant liability - - - Interest expense, net of interest income (352,147 ) - (352,147 ) Net (loss) before income taxes (3,118,920 ) 1,323,185 (1,795,735 ) Income tax benefit (expense) - - - Net (loss) from continuing operations (3,118,920 ) 1,323,185 (1,795,735 ) Discontinued Operations (Loss) from operations of discontinued component (367,008 ) - (367,008 ) Net (loss) income from discontinued operations (367,008 ) - (367,008 ) Net (loss) income $ (3,485,928 ) $ 1,323,185 $ (2,162,743 ) Basic net income (loss) per share Continuing operations (0.15 ) 0.06 (0.09 ) Discontinued operations (0.02 ) - (0.02 ) Basic net loss per share $ (0.17 ) $ 0.06 $ (0.10 ) Basic weighted average shares outstanding 20,693,809 20,693,809 20,693,809 Six Months Ended June 30, 2017 Previously As Reported Adjustments Revised Revenue Media placement $ 17,247,586 $ - $ 17,247,586 License and royalties 201,496 (141,569 ) 59,927 Total revenue 17,449,082 (141,569 ) 17,307,513 Cost of Revenue Cost of revenue 9,021,923 - 9,021,923 Gross profit 8,427,159 (141,569 ) 8,285,590 Operating expenses Sales and marketing 7,212,042 - 7,212,042 General and administrative 6,418,432 - 6,418,432 Legal settlement - - - Depreciation and amortization 282,687 - 282,687 Total operating expenses 13,913,161 - 13,913,161 (Loss) from operations (5,486,002 ) (141,569 ) (5,627,571 ) Other Income (Expense) Earnings from joint venture - 1,464,754 1,464,754 (Loss) on revaluation of warrant liability - - - Interest expense, net of interest income (743,761 ) - (743,761 ) Net (loss) before income taxes (6,229,763 ) 1,323,185 (4,906,578 ) Income tax benefit (expense) - - - Net (loss) from continuing operations (6,229,763 ) 1,323,185 (4,906,578 ) Discontinued Operations (Loss) from operations of discontinued component (315,632 ) - (315,632 ) Net (loss) income from discontinued operations (315,632 ) - (315,632 ) Net (loss) income $ (6,545,395 ) $ 1,323,185 $ (5,222,210 ) Basic net income (loss) per share Continuing operations (0.30 ) 0.06 (0.24 ) Discontinued operations (0.02 ) - (0.02 ) Basic net loss per share $ (0.32 ) $ 0.06 $ (0.25 ) Basic weighted average shares outstanding 20,687,463 20,687,463 20,687,463 Six Months Ended June 30, 2017 Previously As Reported Adjustments Revised Net (loss) $ (6,545,395 ) $ 1,323,185 $ (5,222,210 ) Less: (loss) income from discontinued operations, net of tax (315,632 ) - (315,632 ) (Loss) from continuing operations (6,229,763 ) (4,906,578 ) Adjustments to reconcile net (loss) to net cash (used in) operating activities: (Gain) loss on revaluation of derivative warrant liability - - - Increase (decrease) in deferred revenue 1,148,503 (1,323,185 ) (174,682 ) Net cash (used in) operating activities - continuing operations (2,061,618 ) - (2,061,618 ) Net cash provided by operating activities - discontinued operations 237,374 (350,356 ) (112,982 ) Net cash (used in) provided by operating activities (1,824,244 ) (350,356 ) (2,174,600 ) Adjustments to reconcile net (loss) to net cash (used in) investing activities: Net cash (used in) investing activities - continuing operations (834,652 ) - (834,652 ) Net cash (used in) investing activities - discontinued operations (37,409 ) 350,356 312,947 Net cash (used in) provided by investing activities (872,061 ) 350,356 (521,705 ) Adjustments to reconcile net (loss) to net cash (used in) financing activities: Stock issuance costs - - - Net cash (used in) financing activities - continuing operations (2,871,690 ) - (2,871,690 ) Net cash (used in) financing activities - discontinued operations - - - Net cash (used in) provided by investing activities (2,871,690 ) - (2,871,690 ) Net decrease in cash and cash equivalents (5,567,995 ) - (5,567,995 ) Cash and cash equivalents - beginning of period $ 8,744,545 $ - $ 8,744,545 Cash and cash equivalents - ending of period $ 3,176,550 $ - $ 3,176,550 September 30, 2017 Previously As Reported Adjustments Revised Assets Current assets Cash and cash equivalents $ 2,585,453 $ - $ 2,585,453 Accounts receivable, net 12,975,448 - 12,975,448 Other prepaid expenses 1,410,624 - 1,410,624 Assets from discontinued operations 14,861 - 14,861 Total current assets 16,986,386 - 16,986,386 Property and equipment, net 468,308 - 468,308 Other assets Capitalized software development costs, net 1,666,814 - 1,666,814 Intangible assets: Patents 746,075 - 746,075 Other intangible assets, net 1,235,757 - 1,235,757 Goodwill 6,444,225 - 6,444,225 Other assets 92,420 - 92,420 Total other assets 10,185,291 - 10,185,291 Total assets $ 27,639,985 $ - $ 27,639,985 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 6,261,331 $ - $ 6,261,331 Accrued expenses 3,282,101 - 3,282,101 Deferred revenue 1,840,039 (252,431 ) 1,587,608 Other current liabilities, including security deposit - - - Current obligations under capital lease 3,642 - 3,642 Note payable, net - current portion - - - Warrant liability - 1,698,034 1,698,034 Liabilities from discontinued operations 170,225 - 170,225 Total current liabilities 11,557,338 1,445,603 13,002,941 Long-term liabilities Obligations under capital lease - - - Deferred revenue, noncurrent portion 900,616 (900,616 ) - Total long-term liabilities 900,616 (900,616 ) - Total liabilities 12,457,954 544,987 13,002,941 Preferred stock - - - Common stock 21,949 - 21,949 Additional paid-in capital 165,149,086 (1,377,509 ) 163,771,577 Accumulated deficit (149,989,004 ) 832,522 (149,156,482 ) Total stockholders' equity 15,182,031 (544,987 ) 14,637,044 Total liabilities and stockholders' equity $ 27,639,985 $ - $ 27,639,985 Three Months Ended September 30, 2017 Previously As Reported Adjustments Revised Revenue Media placement $ 10,916,126 $ - $ 10,916,126 License and royalties 155,795 (85,069 ) 70,726 Total revenue 11,071,921 (85,069 ) 10,986,852 Cost of Revenue Cost of revenue 5,342,189 - 5,342,189 Gross profit 5,729,732 (85,069 ) 5,644,663 Operating expenses Sales and marketing 3,395,943 - 3,395,943 General and administrative 3,732,184 (315,931 ) 3,416,253 Legal settlement - - - Depreciation and amortization 713,903 - 713,903 Total operating expenses 7,842,030 (315,931 ) 7,526,099 (Loss) from operations (2,112,298 ) 230,862 (1,881,436 ) Other Income (Expense) Earnings from joint venture - - - (Loss) on revaluation of warrant liability - (636,456 ) (636,456 ) Interest expense, net of interest income (555,288 ) - (555,288 ) Net (loss) before income taxes (2,667,586 ) (405,594 ) (3,073,180 ) Income tax benefit (expense) - - - Net (loss) from continuing operations (2,667,586 ) (405,594 ) (3,073,180 ) Discontinued Operations (Loss) from operations of discontinued component 2,788 - 2,788 Net (loss) income from discontinued operations 2,788 - 2,788 Net (loss) income $ (2,664,798 ) $ (405,594 ) $ (3,070,392 ) Basic net income (loss) per share Continuing operations (0.12 ) (0.02 ) (0.14 ) Discontinued operations 0.00 - 0.00 Basic net loss per share $ (0.12 ) $ (0.02 ) $ (0.14 ) Basic weighted average shares outstanding 21,597,130 21,597,130 21,597,130 Nine Months Ended September 30, 2017 Previously As Reported Adjustments Revised Revenue Media placement $ 28,163,712 $ - $ 28,163,712 License and royalties 357,291 (226,638 ) 130,653 Total revenue 28,521,003 (226,638 ) 28,294,365 Cost of Revenue Cost of revenue 14,364,112 - 14,364,112 Gross profit 14,156,891 (226,638 ) 13,930,253 Operating expenses Sales and marketing 10,607,985 - 10,607,985 General and administrative 10,150,616 (315,931 ) 9,834,685 Legal settlement - - - Depreciation and amortization 996,590 - 996,590 Total operating expenses 21,755,191 (315,931 ) 21,439,260 (Loss) from operations (7,598,300 ) 89,293 (7,509,007 ) Other Income (Expense) Earnings from joint venture - 1,464,754 1,464,754 (Loss) on revaluation of warrant liability - (636,456 ) (636,456 ) Interest expense, net of interest income (1,299,049 ) - (1,299,049 ) Net (loss) before income taxes (8,897,349 ) 917,591 (7,979,758 ) Income tax benefit (expense) - - - Net (loss) from continuing operations (8,897,349 ) 917,591 (7,979,758 ) Discontinued Operations (Loss) from operations of discontinued component (312,844 ) - (312,844 ) Net (loss) income from discontinued operations (312,844 ) - (312,844 ) Net (loss) income $ (9,210,193 ) $ 917,591 $ (8,292,602 ) Basic net income (loss) per share Continuing operations (0.42 ) 0.04 (0.38 ) Discontinued operations (0.01 ) - (0.01 ) Basic net loss per share $ (0.44 ) $ 0.04 $ (0.39 ) Basic weighted average shares outstanding 20,994,017 20,994,017 20,994,017 Nine Months Ended September 30, 2017 Previously As Reported Adjustments Revised Net (loss) $ (9,210,193 ) $ 917,591 $ (8,292,602 ) Less: (loss) income from discontinued operations, net of tax (312,844 ) - (312,844 ) (Loss) from continuing operations (8,897,349 ) (7,979,758 ) Adjustments to reconcile net (loss) to net cash (used in) operating activities: (Gain) loss on revaluation of derivative warrant liability - 636,456 636,456 Increase (decrease) in deferred revenue 2,495,248 (1,238,116 ) 1,257,132 Net cash (used in) operating activities - continuing operations (4,426,928 ) 315,931 (4,110,997 ) Net cash provided by operating activities - discontinued operations 143,900 (350,356 ) (206,456 ) Net cash (used in) provided by operating activities (4,283,028 ) (34,425 ) (4,317,453 ) Adjustments to reconcile net (loss) to net cash (used in) investing activities: Net cash (used in) investing activities - continuing operations (921,932 ) - (921,932 ) Net cash (used in) investing activities - discontinued operations (37,409 ) 350,356 312,947 Net cash (used in) provided by investing activities (959,341 ) 350,356 (608,985 ) Adjustments to reconcile net (loss) to net cash (used in) financing activities: Stock issuance costs - (315,931 ) (315,931 ) Net cash (used in) financing activities - continuing operations (916,723 ) (315,931 ) (1,232,654 ) Net cash (used in) financing activities - discontinued operations - - - Net cash (used in) provided by financing activities (916,723 ) (315,931 ) (1,232,654 ) Net decrease in cash and cash equivalents (6,159,092 ) - (6,159,092 ) Cash and cash equivalents - beginning of period $ 8,744,545 $ - $ 8,744,545 Cash and cash equivalents - ending of period $ 2,585,453 $ - $ 2,585,453

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2017
Software development [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	5 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net estimated useful lives	5 years

Summary of Significant Accoun40

Summary of Significant Accounting Policies (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Dec. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies (Textual)
General and administrative expenses		$ 16,029,040	$ 6,074,001
Sales and marketing expenses		14,522,230	10,470,543
Cost of revenue		$ 22,242,286	$ 13,705,459
Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Corporate income tax rate	34.00%
Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Corporate income tax rate	21.00%
Revenue [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, percentage		11.00%	19.00%
Concentration risk, description		One specific advertising agency accounted for approximately 11% of total revenue.	Approximately 19% was generated from contracts with an advertising agency.

Accounts Receivable, net (Detai

Accounts Receivable, net (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accounts Receivable, net [Abstract]
Accounts receivable	$ 13,546,304	$ 9,302,208
Less: allowance for bad debts	(540,586)	(459,952)
Accounts receivable, net	$ 13,005,718	$ 8,842,256

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property and Equipment, net [Abstract]
Equipment and computer hardware	$ 3,428,846	$ 2,753,197
Office furniture	260,121	198,735
Leasehold improvements	342,230	206,902
Equipment held under capital lease	13,160	13,160
Property and equipment, gross	866,100	696,089
Less: accumulated depreciation	(416,151)	(285,401)
Property and equipment, net	$ 449,949	$ 410,688

Property and Equipment, net (43

Property and Equipment, net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property and Equipment, net (Textual)
Depreciation expense	$ 152,012	$ 129,718

Capitalized Software Developm44

Capitalized Software Development Costs, net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Capitalized Software Development Costs, net [Abstract]
Capitalized software development costs	$ 3,428,846	$ 2,753,197
Less: accumulated amortization	(1,943,561)	(1,054,205)
Capitalized software development costs, net	$ 1,485,285	$ 1,698,992

Capitalized Software Developm45

Capitalized Software Development Costs, net (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Capitalized Software Development Costs, net [Abstract]
2,018	$ 831,375
2,019	478,986
2,020	174,924
Amortization expense remaining estimated lives, total		$ 854,088

Capitalized Software Developm46

Capitalized Software Development Costs, net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Capitalized Software Development Costs, net (Textual)
Amortization expense	$ 581,000
Capitalized Software Development Costs [Member]
Capitalized Software Development Costs, net (Textual)
Amortization expense	$ 889,357	$ 662,003

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets [Abstract]
Patents	$ 2,572,939	$ 2,431,210
Less: accumulated amortization	(1,830,365)	(1,115,392)
Patents, net	$ 742,574	$ 1,315,818

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
2,018	$ 831,375
2,019	478,986
2,020	174,924
Patents	742,574	$ 1,315,818
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2,018	125,658
2,019	125,646
2,020	125,635
2,021	125,622
Thereafter	240,013
Patents	742,574
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
2,018	271,000
2,019	271,000
2,020	187,536
2,021	97,000
2,022	97,000
Thereafter	244,471
Patents	$ 1,168,007

Intangible Assets (Details 2)

Intangible Assets (Details 2) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 1,168,007	$ 1,439,007
Less: accumulated amortization	(1,830,365)	(1,115,392)
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
Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Less: accumulated amortization	$ (671,993)	$ (400,993)

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets (Textual)
Amortization expense - patents	$ 714,973	$ 203,459
Amortization expense - intangible assets	271,000	$ 275,470
Total amortization expense increase	$ 581,000
Maximum [Member]
Intangible Assets (Textual)
Useful lives	14 years
Minimum [Member]
Intangible Assets (Textual)
Useful lives	1 year
Patents [Member]
Intangible Assets (Textual)
Useful lives	7 years
Technology and customer [Member] | Maximum [Member]
Intangible Assets (Textual)
Useful lives	10 years
Technology and customer [Member] | Minimum [Member]
Intangible Assets (Textual)
Useful lives	5 years

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Accrued Expenses [Abstract]
Accrued payroll and related expenses	$ 4,690,512	$ 879,300
Accrued cost of revenues	940,032	1,085,585
Accrued legal settlement	764,095	26,038
Accrued professional fees	3,500,000
Other accrued expenses	16,900	190,021
Accrued expenses	$ 9,911,540	$ 2,180,944

Capital Leases (Details)

Capital Leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Capital Leases (Textual)
Equipment cost	$ 13,160	$ 13,160
Depreciation charged to operations	152,012	129,718
Minimum future lease payments	2,842
Amount represents interest	86
Net minimum lease payment	$ 2,756
Office equipment [Member]
Capital Leases (Textual)
Lease expiration, date	Dec. 31, 2018
Equipment cost	$ 13,160	13,160
Minimum future lease payments, term	5 years
Effective interest rate charged on capital leases	7.428%
Purchase option on capital lease	$ 1
Interest charged to operations	345	591
Depreciation charged to operations	$ 2,632	$ 2,632

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Discontinued Operations [Abstract]
Accounts receivable, net		$ 430,151
Other prepaid expenses		9,455
Property, plant and equipment, net	6,951	35,516
Capitalized software development costs, net		389,863
Other assets	3,645	5,731
Assets from discontinued operations	10,596	870,716
Accounts payable	144,725	298,757
Accrued expenses	6,368	248,783
Deferred revenue	59,696	59,696
Current obligations under capital lease
Liabilities from discontinued operations	$ 210,789	$ 607,236

Discontinued Operations (Deta54

Discontinued Operations (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating Expenses
General and administrative	$ 2,381,333
Net (loss) income from discontinued operations	(368,857)	$ 1,880,220
Wireless Applications [Member]
Revenue
Wireless applications	53,298	5,362,819
Cost of Revenue
Cost of revenue	289,798	2,693,599
Gross profit	(236,500)	2,669,220
Operating Expenses
Sales and marketing	32,920	168,953
General and administrative	144,514	581,516
Depreciation and amortization	11,458	38,531
Total operating expenses	188,892	789,000
Other Income	56,535
Net (loss) income from discontinued operations	$ (368,857)	$ 1,880,220

Discontinued Operations (Deta55

Discontinued Operations (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Discontinued Operations [Abstract]
Net cash (used in) provided by discontinued operating activities	$ (217,640)	$ 2,884,196
Net cash provided by (used in) discontinued investing activities	(312,947)	(370,867)
Net cash (used in) discontinued financing activities		(8,500)
Net increase in cash and cash equivalents	$ 95,307	$ 2,504,829

Discontinued Operations (Deta56

Discontinued Operations (Details Textual) - USD ($)	Feb. 07, 2017	Dec. 31, 2017
Discontinued Operations (Textual)
Proceeds from sale of assets		$ 350,000
Asset Purchase Agreement [Member]
Discontinued Operations (Textual)
Sale of business estimated price	$ 400,000
Proceeds from sale of assets	$ 310,000
Payments for post-closing covenants, description	The remaining $90,000 will be paid upon the satisfaction of certain post-closing covenants. Of the $90,000 payable upon satisfaction of the post-closing covenants, $40,000 was earned and collected by the Company, with the remaining $50,000 not expected to be satisfied, for a total sale price of $350,000.

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Abstract]
U.S. statutory rate	34.00%	34.00%
State, net of federal benefit	0.08%	(4.61%)
Corporate rate change	(55.80%)
Permanent differences	(0.89%)	(3.81%)
Less: valuation allowance	23.16%	(34.50%)
Effective tax rate	(0.55%)	(8.92%)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets
Net operating losses	$ 11,041,188	$ 14,020,558
Stock based compensation	1,717,125	1,772,228
Allowance for doubtful accounts	133,774	181,175
Intangible assets	720,903	544,333
Other reserves and accrued liabilities	1,564,689	462,380
Deferred tax assets	15,177,679	16,980,674
Deferred tax liability
Property and equipment	(121,471)	(216,473)
Net deferred tax assets	15,056,208	16,764,201
Less: valuation allowance	(15,056,208)	(16,764,201)
Deferred tax asset - net valuation allowance

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Abstract]
Federal	$ (24,572)	$ 24,572
State	(55,950)	90,099
Total current income taxes	$ (80,522)	$ 114,671

Income Taxes (Details Textual)

Income Taxes (Details Textual)	12 Months Ended
	Dec. 31, 2017USD ($)
Income Taxes (Textual)
Legislative change in corporate icome tax, description	On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the "Act"). The legislation significantly changed the U.S. tax law including a reduction to the corporate income tax rate from a maximum of 34% to a flat 21% rate, effective January 1, 2018.
Net change in the valuation allowance	$ 1,707,993
Operating loss carryover, expiration date	Dec. 31, 2037
Ownership percentage	4.99%
Federal [Member]
Income Taxes (Textual)
Operating loss carryover	$ 47,087,334
Ownership percentage	34.00%
State [Member]
Income Taxes (Textual)
Operating loss carryover	$ 30,775,306
Ownership percentage	21.00%

Note Payable (Details)

Note Payable (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Notes Payable:
Principal outstanding		$ 6,916,664
Accrued interest		469,060
Accrued termination fee		258,543
Note Payable Gross		7,644,267
Less: discount on note payable		(794,547)
Note Payable		6,849,720
Less: current portion, net		(2,896,893)
Long-term portion, net		$ 3,952,827

Note Payable (Details Textual)

Note Payable (Details Textual) - USD ($)	Feb. 09, 2018	Mar. 01, 2016	Feb. 22, 2018	Feb. 20, 2018	Aug. 01, 2017	Dec. 31, 2017	Dec. 31, 2016
Note Payable (Textual)
Note payable original principal amount							$ 6,849,720
Aggregate amount of shares issued						$ 4,613,433	10,320,001
Debt instrument, Term						42 months
Amortization payments						$ 581,000
Collateral agent assigned value						500,000
Deferred revenue						500,000
Interest expense from amortization						130,653	140,238
Interest expense						374,287	833,704
Amortization of discount						794,548	767,393
Accrual of termination fees charged to interest expense						91,457	$ 98,166
Subsequent Events [Member]
Note Payable (Textual)
Issuance of common stock shares	2,600,000		390,000
Stock price per share	$ 5		$ 5
Subsequent Events [Member] | TAR Group [Member]
Note Payable (Textual)
Note purchase agreement, description				The members of the TAR Group was dismissed in exchange for a lump sum payment of $3.5 million to the TAR Group.
Revenue Sharing and Note Purchase Agreement [Member]
Note Payable (Textual)
Issuance of common 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 NPA was 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
Issuance of common stock shares						261,954
Stock price per share						$ 3.817
Aggregate amount of shares issued						$ 1,000,000
Percentage of discount						10.00%
Received paying legal and due diligence expenses						$ 8,850,000
Interest rate						9.00%
Description of LIBOR rate					The principal amount of the Note bore interest at a rate equal to LIBOR plus 9% per annum. Such interest was payable in cash, except that 2% per annum of such interest was to 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 is obligated to pay the Revenue Participants (a) 50% of Monetization Revenues until such time as the Revenue Participants have received $2,500,000 in the aggregate with respect to the Revenue Stream, (b) 30% of the Monetization Revenues thereafter, until such time that the Revenue Participants have received $5,000,000 in the aggregate with respect to the Revenue Stream, and (c) 10% of the Monetization Revenues thereafter, until the Revenue Stream has been fully satisfied. In addition, upon any acceleration of the Notes and Revenue Stream, the Company is obligated to pay the Revenue Participants 100% of the Monetization Revenues until the Revenue Stream has been fully satisfied. The Company was also required to pay $350,000 to the Note Purchaser upon repayment of the Note, which payment was also made on August 1, 2017.
Purchasers upon repayment of the notes					$ 350,000
Interest expense					350,000
Proceeds of offering common stock and warrants					$ 4,900,000

Stock Based Compensation (Detai

Stock Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stock Based Compensation (Textual)
Recognized stock-based compensation expense	$ 2,345,222	$ 1,332,946
General and administrative - discontinued operations	2,381,333
Restricted stock compensation expense	179,830
General and administrative expense [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense	1,348,769	1,044,032
General and administrative - discontinued operations	437	3,378
Sales and marketing expense [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense	817,113	293,880
Sales and marketing - discontinued operations	54	1,588
Stock Option [Member]
Stock Based Compensation (Textual)
Recognized stock-based compensation expense	$ 2,165,882	$ 1,337,912
Share based compensation, number of shares vested	424,214	630,361

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	May 23, 2017	Apr. 21, 2014	Dec. 31, 2017	Dec. 31, 2016
Related Party Transactions (Textual)
Licensing agreement terms, Description	The parties renewed the JV License Agreement for a perpetual license in exchange for an upfront payment to the JV of $4,500,000, of which the Company received $1,350,000. The Company's share of the renewal fee was paid to the Note Purchaser in accordance with the terms of the NPA.	In exchange for the License, the Licensee has agreed to pay the JV an annual fee of $1,250,000 for a minimum of three years (“Annual Fee”), subject to a right of the Licensee to renew the License for an additional four years. Under the arrangement, if 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 would be deemed to be perpetual. For JV Patent 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 PMC have agreed serve as co-plaintiffs with the Licensee in infringement actions under the License and the Licensee has agreed to be responsible for any out-of-pocket costs of the JV associated with being a co-plaintiff in supporting the Licensee in such litigation, including attorneys’ fees. The Licensee will pay the Annual Fee and any Share of Proceeds to the JV. The Company is entitled to 30% of any proceeds received by the JV. In the event that the Licensee does not assert any infringement actions under its rights in the License prior to April 2019, 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.
Current deferred revenue				$ 245,407
Licensing Agreement [Member]
Related Party Transactions (Textual)
Deferred revenue			$ 0

Fair Value (Details)

Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value (Textual)
Loss on revaluation of warrant liability	$ (477,810)

Stockholders' Equity (Details)

Stockholders' Equity (Details) - Employee Stock Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
$2.25 - $7.06 [Member]
Stock Options
Balance		2,593,257
Balance			2,593,257
Weighted Average Exercise Price
Balance		$ 4.78
Balance			$ 4.78
Weighted Average Remaining Life (Years)		2 years 9 months 25 days	2 years 9 months 25 days
$2.58 - $4.74 [Member]
Stock Options
Grants		844,000
Weighted Average Exercise Price
Grants		$ 3.64
$2.25 - $4.69 [Member]
Stock Options
Exercised		(256,860)
Weighted Average Exercise Price
Exercised		$ (4.16)
$2.50 - $6.50 [Member]
Stock Options
Cancellations		(1,268,010)
Weighted Average Exercise Price
Cancellations		$ (5.42)
$2.50 - $7.06 [Member]
Stock Options
Balance	1,912,387
Balance		1,912,387
Weighted Average Exercise Price
Balance	$ 3.93
Balance		$ 3.93
Weighted Average Remaining Life (Years)	3 years 7 months 13 days	3 years 7 months 13 days
$2.60 - $6.66 [Member]
Stock Options
Grants	1,936,000
Weighted Average Exercise Price
Grants	$ 5.29
$2.50 - $6.87 [Member]
Stock Options
Exercised	(158,482)
Weighted Average Exercise Price
Exercised	$ (3.53)
$2.50 - $7.06 [Member]
Stock Options
Cancellations	(1,396,691)
Weighted Average Exercise Price
Cancellations	$ (4.06)
$2.50 - $6.87 [Member]
Stock Options
Balance	2,293,214
Weighted Average Exercise Price
Balance	$ 5.20
Weighted Average Remaining Life (Years)	7 years 11 months 4 days

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Risk-Free Interest Rate	2.38%	1.51%
Weighted Average Expected Volatility	95.49%	95.81%
Dividend Yield
Weighted Average Expected Option Term (Years)	9 years 5 months 23 days	5 years 8 months 26 days
Weighted Average Grant Date Fair Value	$ 6.23	$ 3.60
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Date Fair Value

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Exercise Price
Vested	$ 6.23	$ 3.60
Equity Option [Member]
Number of Options
Beginning balance	1,282,026	620,326
Grants	1,936,000	844,000
Vested	(244,214)	(165,000)
Forfeited	(924,812)	(17,300)
Ending balance	2,049,000	1,282,026
Weighted Average Exercise Price
Beginning balance	$ 3.26	$ 2.92
Grants
Vested
Forfeited
Ending balance	$ 6.07	$ 3.26

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted Average Grant Date Fair Value
Vested	$ 6.23	$ 3.60
Restricted Stock [Member]
Number of shares
Beginning balance
Grants	123,333
Vested	(8,621)
Forfeited
Ending balance	114,712
Weighted Average Grant Date Fair Value
Beginning balance
Grants	4.26
Vested	4.35
Forfeited
Ending balance	$ 4.25

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants, Beginning balance
Warrants, Grants	320,000
Warrants, Exercised
Warrants, Cancellations
Warrants, Ending balance	320,000
Exercise Price per Share, Beginning Balance
Exercise Price per Share, Grants	6.25
Exercise Price per Share, Exercised
Exercise Price per Share, Cancellations
Exercise Price per Share, Ending Balance	6.25
Weighted Average Exercise Price, Beginning Balance
Weighted Average Exercise Price, Granted	6.25
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Cancelled
Weighted Average Exercise Price, Ending Balance	$ 6.25
Weighted Average Remaining Life (Years), Ending Balance	4 years 6 months 29 days

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Stockholders Equity (Textual)
Gross proceeds from exercise of stock options	$ 221,431	$ 1,069,073
Shares issued for legal and accounting services, value	$ 5,675,012
Warrant [Member]
Stockholders Equity (Textual)
Warrants to purchase of common stock	320,000
Stock Incentive Plans [Member]
Stockholders Equity (Textual)
Shares reserved for issuance of stock options	2,500,000
Shares available to grant	157,834
Recognized compensation expense	$ 2,100,000	1,300,000
Restricted Stock [Member]
Stockholders Equity (Textual)
Recognized compensation expense	300,000
Recognized compensation related to restricted stock unit grants	$ 200,000	$ 0
Restricted stock granted expected to recognized over remaining average period	1 year 1 month 6 days
Common Stock [Member]
Stockholders Equity (Textual)
Issuance of common stock shares	1,200,000	3,066,667
Shares issued on exercise of stock options, Shares	158,482	256,860
Common Stock [Member] | Fortress Credit Co LLC [Member]
Stockholders Equity (Textual)
Issuance of common stock shares		3,523,527
Shares issued on exercise of stock options, Shares		256,860
Gross proceeds from exercise of stock options		$ 1,069,073
Shares were issued to Fortress Credit Co LLC		200,000
Share price per share		$ 2.84
Aggregate amount in consideration		$ 568,000
Shares of common stock issued for legal and accounting services		3,066,667
Shares issued for legal and accounting services, value		$ 10,320,001
Common Stock [Member] | Employee Stock Option [Member]
Stockholders Equity (Textual)
Issuance of common stock shares	1,358,482
Shares issued on exercise of stock options, Shares	158,482
Gross proceeds from exercise of stock options	$ 221,431

Commitments and Contingencies72

Commitments and Contingencies (Details)	Dec. 31, 2017USD ($)
Schedule of minimum future rental payments under non-cancellable operating leases
2,018	$ 333,623
2,019	322,152
2,020	26,846
2,021
2,022
Total	$ 682,621

Commitments and Contingencies73

Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Rent expense	$ 480,818	$ 424,832
IP revenue sharing agreement, description	The Company and the TAR Group, entered into a settlement agreement, pursuant to which the NPA was terminated and discharged and all pending litigation between the Company and the members of the TAR Group was dismissed with prejudice in exchange for a lump sum payment of $3.5 million from the Company to the TAR Group.
Ashford complaint, description	In November 2017, the Company received a complaint filed by Fort Ashford Funds, LLC ("Ashford"), in the Superior Court of the State of California, Orange County (the "Ashford Complaint"). The Ashford Complaint claims that the Company issued certain warrants to Panzarella Consulting, LLC and Patrick Panzarella (together "Panzarella") giving them the option to purchase, in the aggregate, 5,000,000 shares of the Company's common stock at a price of fifty cents ($.50) per share. Through a series of transfers, the purported warrants were allegedly transferred to Ashford, who which is now seeking to exercise such purported warrants or to obtain damages. However, the Company has made a thorough inquiry into these matters, and it is unaware of the existence of any warrant or other agreement that provides that the purported warrants exist or were ever issued to Panzarella or any other person. As of this time, the Ashford Complaint has failed to provide any evidence of the existence of the purported warrant, or the ability and right of Ashford to exercise such warrant. The Company has asserted a number of affirmative defenses to the claim in its Answer. As the case is in the initial discovery phase, no assessment can be made at this time. The Company believes the claims are baseless and plans to defend accordingly.
Jersey [Member]
Loss Contingencies [Line Items]
Lease expiration period of stores provided on additional rentals	5 years
Lease expiration, date	Jan. 31, 2019
Boise Office [Member]
Loss Contingencies [Line Items]
Lease term	38 months

Fourth Quarter Charges and Co74

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statement (Details) - USD ($)	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 3,611,438			$ 8,744,545
Accounts receivable, net	13,005,718			8,842,256
Prepaid expenses	374,380			229,039
Assets from discontinued operations	10,596			870,716
Total current assets	17,002,132			18,686,556
Other assets
Capitalized Computer Software, Net	1,485,285			1,698,992
Intangible assets:
Patents	742,574			1,315,818
Other Intangible Assets, Net	1,168,007			1,439,007
Goodwill	6,444,225			6,444,225
Other Assets	92,420			150,038
Other Assets, Noncurrent	9,932,511			11,048,080
Property and equipment, net	449,949			410,688
Total assets	27,384,592			30,145,324
Current liabilities
Accounts payable	6,506,902			3,184,237
Accrued expenses	9,911,540			2,180,944
Deferred revenue				245,407
Current obligations under capital lease	2,756			3,446
Note payable, net - current portion				2,896,893
Warrant liability	1,539,388
Liabilities from discontinued operations	210,789			607,236
Total current liabilities	18,171,375			9,118,163
Long-term liabilities
Obligations under capital lease				2,756
Note payable, net				3,952,827
Total long-term liabilities				3,955,583
Commitments and contingencies - See notes 16
Total liabilities	18,175,375			13,073,746
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 22,039,529 shares issued and outstanding as of December 31, 2017 and $.001 par value; 100,000,000 shares authorized, 20,681,047 shares issued and outstanding as of December 31, 2016	22,038			20,680
Additional paid-in capital	165,008,928			157,829,709
Accumulated deficit	(155,817,749)			(140,778,811)
Total stockholders' equity	9,213,217			17,071,578
Total liabilities and stockholders' equity	$ 27,384,592			30,145,324
Previously Reported [Member]
Current assets
Cash and cash equivalents		$ 2,585,453	$ 3,176,550	8,744,545
Accounts receivable, net		12,975,448	9,980,386
Prepaid expenses		1,410,624	540,183
Assets from discontinued operations		14,861	14,390
Total current assets		16,986,386	13,711,509
Other assets
Capitalized Computer Software, Net		1,666,814	1,852,959
Intangible assets:
Patents		746,075	1,315,302
Other Intangible Assets, Net		1,235,757	1,303,507
Goodwill		6,444,225	6,444,225
Other Assets		92,420	112,815
Other Assets, Noncurrent		10,185,291	11,028,808
Property and equipment, net		468,308	500,581
Total assets		27,639,985	25,240,898
Current liabilities
Accounts payable		6,261,331	6,109,088
Accrued expenses		3,282,101	1,935,235
Deferred revenue		1,840,039	408,225
Current obligations under capital lease		0	7,500
Note payable, net - current portion		3,642	3,576
Warrant liability		0	4,399,981
Liabilities from discontinued operations		0
Total current liabilities		170,225	266,011
Long-term liabilities
Obligations under capital lease		11,557,338	936
Note payable, net		900,616	985,685
Total long-term liabilities		900,616	986,621
Commitments and contingencies - See notes 16
Total liabilities		12,457,954	14,116,237
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding		0
Common stock, $.001 par value; 100,000,000 shares authorized, 22,039,529 shares issued and outstanding as of December 31, 2017 and $.001 par value; 100,000,000 shares authorized, 20,681,047 shares issued and outstanding as of December 31, 2016		21,949	20,715
Additional paid-in capital		165,149,086	158,428,152
Accumulated deficit		149,989,004	(147,324,206)
Total stockholders' equity		15,182,031	11,124,661
Total liabilities and stockholders' equity		27,639,985	25,240,898
Adjustment [Member]
Current assets
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses
Assets from discontinued operations
Total current assets
Other assets
Capitalized Computer Software, Net
Intangible assets:
Patents
Other Intangible Assets, Net
Goodwill
Other Assets
Other Assets, Noncurrent
Property and equipment, net
Total assets
Current liabilities
Accounts payable
Accrued expenses
Deferred revenue			(337,500)
Current obligations under capital lease		(252,431)
Note payable, net - current portion		1,698,034
Warrant liability
Liabilities from discontinued operations
Total current liabilities		1,445,603	(337,500)
Long-term liabilities
Obligations under capital lease		(900,616)
Note payable, net			(985,685)
Total long-term liabilities		(900,616)	(985,685)
Commitments and contingencies - See notes 16
Total liabilities		544,987	(1,323,185)
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 22,039,529 shares issued and outstanding as of December 31, 2017 and $.001 par value; 100,000,000 shares authorized, 20,681,047 shares issued and outstanding as of December 31, 2016
Additional paid-in capital
Accumulated deficit		(1,377,509)	1,323,185
Total stockholders' equity		832,522	1,323,185
Total liabilities and stockholders' equity		544,987
As Revised [Member]
Current assets
Cash and cash equivalents		$ 2,585,453,000	3,176,550	$ 8,744,545,000
Accounts receivable, net			9,980,386
Prepaid expenses			540,183
Assets from discontinued operations			14,390
Total current assets			13,711,509
Other assets
Capitalized Computer Software, Net			1,852,959
Intangible assets:
Patents			1,315,302
Other Intangible Assets, Net			1,303,507
Goodwill			6,444,225
Other Assets			112,815
Other Assets, Noncurrent			11,028,808
Property and equipment, net			500,581
Total assets			25,240,898
Current liabilities
Accounts payable			6,109,088
Accrued expenses			1,935,235
Deferred revenue			70,725
Current obligations under capital lease			7,500
Note payable, net - current portion			3,576
Warrant liability			4,399,981
Liabilities from discontinued operations
Total current liabilities			266,011
Long-term liabilities
Obligations under capital lease			936
Note payable, net
Total long-term liabilities			936
Commitments and contingencies - See notes 16
Total liabilities			12,793,052
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 22,039,529 shares issued and outstanding as of December 31, 2017 and $.001 par value; 100,000,000 shares authorized, 20,681,047 shares issued and outstanding as of December 31, 2016			20,715
Additional paid-in capital			158,428,152
Accumulated deficit			(146,001,021)
Total stockholders' equity			12,447,846
Total liabilities and stockholders' equity			$ 25,240,898

Fourth Quarter Charges and Co75

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements (Details 1) - USD ($)	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Revenue
Media placement				$ 42,859,777	$ 28,911,717
Licensing and royalties				130,653	140,238
Total revenue				42,990,430	29,051,955
Cost of Revenue
Cost of revenue				22,242,286	13,705,459
Gross profit				20,748,144	15,346,496
Operating expenses
Sales and marketing				14,522,230	10,470,543
General and administrative				16,029,040	6,074,001
Legal settlement				1,137,985	608,649
Depreciation and amortization				3,500,000
Total operating expenses				35,189,255	17,153,193
(Loss) from operations				(14,441,111)	(1,806,697)
Other Income (Expense)
Earnings from joint venture				1,464,754	375,000
Loss on revaluation of warrant liability				(477,810)
Interest expense, net of interest income				(1,296,436)	(1,738,231)
Net (loss) before income taxes				(14,750,603)	(3,169,928)
Income tax benefit (expense)				80,522	(114,278)
Net (loss) from continuing operations				(14,670,081)	(3,284,206)
Discontinued Operations
(Loss) from operations of discontinued component				(368,857)	1,880,220
Net (loss) income from discontinued operations				(368,857)	1,880,220
Net (loss)				$ (15,038,938)	$ (1,403,986)
Basic and diluted net (loss) per share
Continuing operations				$ (0.69)	$ (0.18)
Discontinued operations				(0.02)	0.1
Basic net loss per share				$ (0.71)	$ (0.08)
Basic weighted average shares outstanding				21,249,985	18,247,364
Previously Reported [Member]
Revenue
Media placement	$ 10,725,454	$ 17,247,586
Licensing and royalties	78,667	201,496
Total revenue	10,804,121	17,449,082
Cost of Revenue
Cost of revenue	5,626,862	9,021,923
Gross profit	5,177,259	8,427,159
Operating expenses
Sales and marketing	3,735,131	7,212,042
General and administrative	4,087,978	6,418,432
Legal settlement	0
Depreciation and amortization	120,923	282,687
Total operating expenses	7,944,032	13,913,161
(Loss) from operations	(2,766,773)	(5,486,002)
Other Income (Expense)
Earnings from joint venture
Loss on revaluation of warrant liability
Interest expense, net of interest income	352,147	743,761
Net (loss) before income taxes	(3,118,920)	(6,229,763)
Income tax benefit (expense)
Net (loss) from continuing operations		(6,229,763)	(8,897,349)
Discontinued Operations
(Loss) from operations of discontinued component	(367,008)	(315,632)
Net (loss) income from discontinued operations	$ (367,008)	(315,632)
Net (loss)		$ (6,545,395)	(9,210,193)
Basic and diluted net (loss) per share
Continuing operations	$ (0.15)	$ (0.3)
Discontinued operations	(0.02)	(0.02)
Basic net loss per share	$ (0.17)	$ (0.32)
Basic weighted average shares outstanding	20,693,809	20,687,463
Adjustment [Member]
Revenue
Media placement
Licensing and royalties	(49,356)	(141,569)
Total revenue	(49,356)	(141,569)
Cost of Revenue
Cost of revenue
Gross profit	(49,356)	(141,569)
Operating expenses
Sales and marketing
General and administrative
Legal settlement
Depreciation and amortization
Total operating expenses
(Loss) from operations	(49,356)	(141,569)
Other Income (Expense)
Earnings from joint venture	(1,372,541)	(1,464,754)
Loss on revaluation of warrant liability			636,456
Interest expense, net of interest income
Net (loss) before income taxes	1,323,185	1,323,185
Income tax benefit (expense)
Net (loss) from continuing operations	1,323,185,000	1,323,185
Discontinued Operations
(Loss) from operations of discontinued component
Net (loss) income from discontinued operations
Net (loss)	$ 1,323,185	$ 1,323,185	917,591
Basic and diluted net (loss) per share
Continuing operations	$ 0.06	$ 0.06
Discontinued operations	0
Basic net loss per share	$ 0.06	$ 0.06
Basic weighted average shares outstanding	20,693,809	20,687,463
As Revised [Member]
Revenue
Media placement	$ 10,725,454	$ 17,247,586
Licensing and royalties	29,311	59,927
Total revenue	10,754,765	17,307,513
Cost of Revenue
Cost of revenue	5,626,862	9,021,923
Gross profit	5,127,903	8,285,590
Operating expenses
Sales and marketing	3,735,131	7,212,042
General and administrative	4,087,978	6,418,432
Legal settlement	0
Depreciation and amortization	120,923	282,687
Total operating expenses	7,944,032	13,913,161
(Loss) from operations	(2,816,129)	(5,627,571)
Other Income (Expense)
Earnings from joint venture	(1,372,541)	(1,464,754)
Loss on revaluation of warrant liability			636,456
Interest expense, net of interest income	352,147	743,761
Net (loss) before income taxes	(1,795,735)	(4,906,578)
Income tax benefit (expense)
Net (loss) from continuing operations	(1,795,735,000)	(4,906,578)	(7,979,758)
Discontinued Operations
(Loss) from operations of discontinued component	(367,008)	(315,632)
Net (loss) income from discontinued operations	(367,008)	(315,632)
Net (loss)	$ (2,162,743)	$ (5,222,210)	$ (8,292,602)
Basic and diluted net (loss) per share
Continuing operations	$ (0.09)	$ (0.24)
Discontinued operations	(0.02)	(0.02)
Basic net loss per share	$ (0.1)	$ (0.25)
Basic weighted average shares outstanding	20,693,809	20,687,463

Fourth Quarter Charges and Co76

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statement (Details 2) - USD ($)	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net (loss)				$ (15,038,938)	$ (1,403,986)
Less: (loss) income from discontinued operations, net of tax				368,857	(1,880,220)
(Loss) from continuing operations				(14,670,081)	(3,284,206)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
(Gain) loss on revaluation of derivative warrant liability				(477,810)
Increase (decrease) in deferred revenue				(245,407)	(222,806)
Net cash (used in) operating activities - continuing operations				(3,190,074)	(3,773,678)
Net cash provided by operating activities - discontinued operations				(217,640)	2,884,196
Net cash (used in) provided by operating activities				(3,407,714)	(889,482)
Adjustments to reconcile net (loss) to net cash (used in) investing activities:
Net cash (used in) investing activities - continuing operations				(1,014,673)	(1,472,487)
Net cash (used in) investing activities - discontinued operations				(312,947)	(370,867)
Net cash (used in) provided by investing activities				(701,726)	(1,843,354)
Adjustments to reconcile net (loss) to net cash (used in) financing activities:
Stock issuance costs				(324,988)	(1,180,000)
Net cash (used in) provided by financing activities - continuing operations				(1,023,667)	8,870,697
Net cash (used in) financing activities - discontinued operations					(8,500)
Net cash (used in) provided by investing activities				(1,023,667)	8,862,197
Net decrease in cash and cash equivalents				(5,133,107)	6,129,361
Cash and cash equivalents - beginning of period		$ 8,744,545	$ 8,744,545	8,744,545
Cash and cash equivalents - ending of period				3,611,438	8,744,545
Scenario, Previously Reported [Member]
Cash Flows from Operating Activities
Net (loss)		(6,545,395)	(9,210,193)
Less: (loss) income from discontinued operations, net of tax		(315,632)	(312,844)
(Loss) from continuing operations		(6,229,763)	(8,897,349)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
(Gain) loss on revaluation of derivative warrant liability
Increase (decrease) in deferred revenue		1,148,503	2,495,248
Net cash (used in) operating activities - continuing operations		(2,061,618)	(4,426,928)
Net cash provided by operating activities - discontinued operations		237,374	143,900
Net cash (used in) provided by operating activities		(1,824,244)	(4,283,028)
Adjustments to reconcile net (loss) to net cash (used in) investing activities:
Net cash (used in) investing activities - continuing operations		(834,652)	(921,932)
Net cash (used in) investing activities - discontinued operations		(37,409)	(37,409)
Net cash (used in) provided by investing activities		(872,061)	(959,341)
Adjustments to reconcile net (loss) to net cash (used in) financing activities:
Stock issuance costs
Net cash (used in) provided by financing activities - continuing operations		(2,871,690)	(916,723)
Net cash (used in) financing activities - discontinued operations
Net cash (used in) provided by investing activities		(2,871,690)	(916,723)
Net decrease in cash and cash equivalents		(5,567,995)	(6,159,092)
Cash and cash equivalents - beginning of period		8,744,545	8,744,545	8,744,545
Cash and cash equivalents - ending of period	$ 3,176,550	3,176,550	2,585,453		8,744,545
Restatement Adjustment [Member]
Cash Flows from Operating Activities
Net (loss)	1,323,185	1,323,185	917,591
Less: (loss) income from discontinued operations, net of tax
(Loss) from continuing operations	1,323,185,000	1,323,185
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
(Gain) loss on revaluation of derivative warrant liability			636,456
Increase (decrease) in deferred revenue		(1,323,185)	(1,238,116)
Net cash (used in) operating activities - continuing operations			315,931
Net cash provided by operating activities - discontinued operations		(350,356)	(350,356)
Net cash (used in) provided by operating activities		(350,356)	(34,425)
Adjustments to reconcile net (loss) to net cash (used in) investing activities:
Net cash (used in) investing activities - continuing operations
Net cash (used in) investing activities - discontinued operations		350,356	350,356
Net cash (used in) provided by investing activities		350,356	350,356
Adjustments to reconcile net (loss) to net cash (used in) financing activities:
Stock issuance costs			(315,931)
Net cash (used in) provided by financing activities - continuing operations			(315,931)
Net cash (used in) financing activities - discontinued operations
Net cash (used in) provided by investing activities			(315,931)
Net decrease in cash and cash equivalents
Cash and cash equivalents - beginning of period
Cash and cash equivalents - ending of period
As Revised [Member]
Cash Flows from Operating Activities
Net (loss)	(2,162,743)	(5,222,210)	(8,292,602)
Less: (loss) income from discontinued operations, net of tax		(315,632)	(312,844)
(Loss) from continuing operations	(1,795,735,000)	(4,906,578)	(7,979,758)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
(Gain) loss on revaluation of derivative warrant liability			636,456
Increase (decrease) in deferred revenue		(174,682)	1,257,132
Net cash (used in) operating activities - continuing operations		(2,061,618)	(4,110,997)
Net cash provided by operating activities - discontinued operations		(112,982)	(206,456)
Net cash (used in) provided by operating activities		(2,174,600)	(4,317,453)
Adjustments to reconcile net (loss) to net cash (used in) investing activities:
Net cash (used in) investing activities - continuing operations		(834,652)	(921,932)
Net cash (used in) investing activities - discontinued operations		312,947	312,947
Net cash (used in) provided by investing activities		(521,705)	(608,985)
Adjustments to reconcile net (loss) to net cash (used in) financing activities:
Stock issuance costs			(315,931)
Net cash (used in) provided by financing activities - continuing operations		(2,871,690)	(1,232,654)
Net cash (used in) financing activities - discontinued operations
Net cash (used in) provided by investing activities		(2,871,690)	(1,232,654)
Net decrease in cash and cash equivalents		(5,567,995)	(6,159,092,000)
Cash and cash equivalents - beginning of period		8,744,545,000	8,744,545,000	$ 8,744,545,000
Cash and cash equivalents - ending of period	$ 3,176,550	$ 3,176,550	$ 2,585,453,000		$ 8,744,545,000

Fourth Quarter Charges and Co77

Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements (Details Textual)	3 Months Ended
	Dec. 31, 2017
Fourth Quarter Charges and Correction of Errors in Previously Reported Consolidated Financial Statements (Textual)
Fourth quarter adjustments, description	● Settlement with TAR totaling $3.5 million as the Company was able to reasonably estimate the amount of the liability during the fourth quarter of 2017. ● Reclassified previously recognized license fee revenue and recognized the balance of the perpetual license fee aggregating $1,464,754 as earnings from the Joint Venture for the year ended December 31, 2017 and reclassified $375,000 previously recognized as license fee revenue as earnings from the Joint Venture of $375,000 for the year ended December 31, 2016. The adjustment was made as the revenue from the licensing arrangement was concluded to be recognized as earnings from a joint venture. Additionally, in June 2017 the agreement became a perpetual license with no further obligations of the Company, allowing recognition of the renewal fee in June 2017 as a one-time addition to other income. ● Reclassified certain professional fees, aggregating $315,931 million, previously charged to operations as costs relating to stock issuance costs for the three months ended September 30, 2017. These costs were reclassified to equity as of September 30, 2017 as they directly related to closing costs of the offering. ● Recognized warrants issued on July 28, 2017 as a liability with the corresponding marked-to-market revaluations as of each reporting period. A liability previously was not recognized. Using the Black Scholes Model, initial measurement of the warrants on July 28, 2017 was $1,061,578, as revalued to $1,698,034 and $1,539,388 as of September 30, 2017 and December 31, 2017 respectively. As a result of this change, a net loss of $477,810 was recorded to the statement of operations for fiscal 2017.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Feb. 09, 2018	Feb. 22, 2018	Feb. 20, 2018	Dec. 31, 2017
Subsequent Events (Textual)
Gross proceeds from common stock				$ 5,675,012
Subsequent Events [Member]
Subsequent Events (Textual)
Issuance of common stock shares	2,600,000	390,000
Gross proceeds from common stock	$ 13,000,000	$ 1,800,000
Public offering price per share	$ 5	$ 5
Subsequent Events [Member] | TAR Group [Member]
Subsequent Events (Textual)
Note purchase agreement, description			The members of the TAR Group was dismissed in exchange for a lump sum payment of $3.5 million to the TAR Group.