Quarterly report pursuant to Section 13 or 15(d)

Document and Entity Information

v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2017
Nov. 15, 2018
Document and Entity Information [Abstract]    
Entity Registrant Name SITO MOBILE, LTD.  
Entity Central Index Key 0001157817  
Trading Symbol SITO  
Amendment Flag true  
Amendment Description This Amendment No. 1 on Form 10-Q/A ("Amendment No. 1") amends the Quarterly Report on Form 10-Q of SITO Mobile, Ltd. (the "Company") for the quarterly period ended September 30, 2017, as originally filed with the U.S. Securities and Exchange Commission (the "SEC") on November 14, 2017 (the "Original Filing"). As previously disclosed in a Current Report on Form 8-K filed with the SEC on April 2, 2018 and described in more detail below and in Note 18 of the Notes to Condensed Consolidated Unaudited Financial Statements, we determined that we had improperly accounted for certain items. As a result of the improper accounting for those items, the Audit Committee of the Company's Board of Directors (the "Audit Committee"), after considering the recommendations of the Company's management and consulting with BDO USA, LLP, the Company's independent registered public accounting firm, concluded that the Company's unaudited condensed consolidated financial statements included in the Original Filing should not be relied upon. To correctly account for the items described below and in Note 18 of the Notes to Condensed Consolidated Unaudited Financial Statements, we are amending the Original Filing to provide restated condensed consolidated unaudited financial statements as of and for the quarterly periods ended September 30, 2017 and to amend related disclosures. As previously disclosed, (i) approximately $300,000 in fees associated with the Company's direct registered offering of common stock in July 2017 were incorrectly classified as general and administrative expenses but should have been recorded as a charge against equity as these expenses directly related to the public offering of common stock; (ii) the Audit Committee determined that the 320,000 warrants issued by the Company in connection with its direct registered offering of common stock in July 2017, which were initially accounted for as equity, should have been accounted for as a liability under generally accepted accounting principles because of the inherent risk that unknown future effects could compromise the ability of the Company to maintain an effective registration statement for the shares of common stock underlying such warrants; and (iii) the Audit Committee determined that the licensing revenue from the Company's licensing arrangement with Personalized Media Communications, LLC (the "JV License") should have been recorded as Earnings from Joint Venture rather than top-line revenue and that the renewal of the JV License in June 2017 resulted in the JV License becoming a perpetual license under generally acceptable accounting principles, requiring upfront recognition of an approximately $4,500,000 pre-payment. Additionally, approximately $350,000 of operating cash flows was reclassed to investing activities. The Company reclassified $315,931 of fees associated with its direct registered offering of common stock in July 2017 from general and administrative to additional paid-in capital for each of the three and nine months ended September 30, 2017. For the three and nine months ended September 30, 2017, the Company recognized the fair value of warrants, in connection with its direct registered offering of common stock in July 2017, of $1,061,578 as a liability offset against additional paid-in capital in July 2017. The Company measures the fair value on a recurring basis each reporting period for these warrants and for each of the three and nine months ended September 30, 2017, recorded a net loss on revaluation of the warrants of $636,456. The Company previously recognized licensing revenue that should have been recorded as Earnings from Joint Venture that required reversing entries of $26,815 for the three months ended June 30, 2017 and $85,069 for the three months ended September 30, 2017. The JV License became perpetual in June 2017, and the Company recorded an entry of $1,350,000 for the three months ended June 30, 2017. The Company's management has concluded that the adjustments to correctly account for these items reflect a material weakness in the Company's internal controls over financial reporting caused by an insufficient complement of finance and accounting resources within the organization to ensure the proper application of U.S. generally accepted accounting principles relating to the Company's complex non-routine transactions. For a description of the material weakness in the Company's internal control over financial reporting identified by management as a result of the improper accounting of these items and management's plan to remediate this material weakness, see Part I Item 4 (Controls and Procedures). For ease of reference, this Amendment No. 1 amends and restates the Original Filing in its entirety. Revisions to the Original Filing have been made to the following sections: Part I Item 1 (Financial Statements) Part I Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operations) Part I Item 4 (Controls and Procedures) Part II Item 6 (Exhibits) In addition, as required by Rule 12b-15, the Company's principal executive officer and the Company's principal financial officer are providing new currently dated certifications. Accordingly, the Company hereby amends Part II Item 6 (Exhibits) in the Original Filing to reflect the filing or furnishing, as applicable, of the new certifications, to correctly indicate that Exhibits 32.1 and 32.2 are to be furnished herewith and to file various exhibits related to XBRL. Except as described above, this Amendment No. 1 does not amend, update or change any other items in the Original Filing and does not purport to reflect any information or events subsequent to the filing thereof except for disclosure of the Company's assessment of its ability to continue as a going concern identified and disclosed in the Company's quarterly report on Form 10-Q for the period ended September 30, 2018. As such, this Amendment No. 1 speaks only as of the date the Original Filing was filed, and the Company has not undertaken herein to amend, supplement or update any information contained in the Original Filing to give effect to any subsequent events (other than the assessment of the Company's assessment of its ability to continue as a going concern) and any forward-looking statements represent management's views as of the date of the Original Filing and should not be assumed to be accurate as of any date thereafter. Accordingly, this Amendment No. 1 should be read in conjunction with the Company's filings made with the SEC subsequent to the filing of the Original Filing, including any amendment to those filings.  
Current Fiscal Year End Date --12-31  
Document Type 10-Q  
Document Period End Date Sep. 30, 2017  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2017  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   25,437,536