Location Based (LBAS) 10-Q 13 Jan 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Nov. 30, 2014	Jan. 13, 2015
Entity Registrant Name	Location Based Technologies, Inc.
Entity Central Index Key	1383196
Current Fiscal Year End Date	-23
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		268,580,645
Document Type	10-Q
Document Period End Date	30-Nov-14
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Nov. 30, 2014	Aug. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$623,028	$146,200
Accounts receivable, net of allowances	100,030	78,422
Inventories, current	791,242	793,332
Inventory, net of reserves	791,242	793,332
Prepaid expenses and other assets	43,003	45,062
Deferred financing costs		5,506
Total current assets	1,557,303	1,068,522
Property and equipment, net of accumulated depreciation	50,200	65,817
OTHER ASSETS
Intangible assets, net of accumulated amortization	579,613	596,977
Inventories, noncurrent	513,104	565,146
Deposits	30,000	30,000
Total other assets	1,122,717	1,192,123
TOTAL ASSETS	2,730,220	2,326,462
CURRENT LIABILITIES
Related party convertible demand notes payable and accrued interest	1,355,403	1,618,462
Accounts payable and accrued expenses	1,808,877	1,865,282
Deferred compensation	259,867	261,814
Deferred revenue	17,272	29,691
Advances from officer and accrued interest	108,967	106,872
Total current liabilities	9,021,588	8,311,818
Convertible term notes payable	880,734	843,787
Related party convertible term notes payable and accrued interest, net of unamortized discounts	3,392,937	2,820,106
Term loans	250,000	333,333
TOTAL LIABILITIES	13,545,259	12,309,044
Commitments and contingencies
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 300,000,000 shares authorized; 258,691,822 and 241,095,488 shares issued and outstanding at November 30, 2014 and August 31, 2014, respectively	258,692	241,096
Additional paid-in capital	1,273,611	51,036,456
Prepaid services paid in common stock	-24,110	-48,225
Accumulated deficit	-62,323,232	-61,211,909
Total stockholders' equity (deficit)	-10,815,039	-9,982,582
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	2,730,220	2,326,462
Convertible Demand Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Convertible notes payable	30,818	30,163
Convertible Term Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Convertible notes payable	4,113,069	3,100,361
Related Party Convertible Demand Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Related party convertible demand notes payable and accrued interest	1,217,836	1,192,187
Related Party Convertible Term Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Convertible notes payable	$109,479	$106,986

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	241,095,488	241,095,488
Common stock, outstanding (in shares)	241,095,488	241,095,488

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Net revenue
Devices	$213,035	$243,391
Services	312,967	165,413
Total net revenue	526,002	408,804
Cost of revenue
Devices	150,393	143,817
Services	181,673	237,990
Total cost of revenue	332,066	381,807
Gross profit	193,936	26,997
Operating expenses
General and administrative	277,863	728,634
Officer compensation	112,500	246,687
Professional fees	233,807	374,493
Rent	19,740	19,203
Research and development	125,000	89,758
Salaries and wages	89,440	48,579
Total operating expenses	858,350	1,507,354
Net operating loss	-664,414	-1,480,357
Other income (expense)
Financing costs	-130,500	-148,880
Amortization of beneficial conversion feature		-32,647
Amortization of deferred financing costs	-5,506	-17,827
Amortization of debt discount	-51,608	-98,906
Interest income (expense), net	-259,251	-153,290
Gain on debt settlement		886,548
Gain (loss) on asset disposal		569
Foreign currency gain (loss), net	-44
Total other income (expense)	-446,909	435,567
Net loss before income taxes	-1,111,323	-1,044,790
Provision for income taxes		800
Net Loss	($1,111,323)	($1,045,590)
Basic and Diluted - Earnings (loss) Per Share (in dollars per share)	$0	$0
Basic and Diluted - Weighted Average Number of Shares Outstanding (in shares)	249,292,118	212,015,680

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013
Cash Flows from Operating Activities
Net loss	($1,111,323)	($1,045,590)
Adjustment to reconcile net loss to net cash used in operating activities:
Loss (gain) on asset disposals and impairment		-569
Gain on debt settlement		-886,548
Provision for doubtful accounts and sales returns	-5,436	8,000
Provision for inventory reserve	-80,497
Depreciation and amortization	36,064	30,927
Amortization of beneficial conversion feature		32,647
Amortization of deferred financing costs	5,506	17,827
Amortization of prepaid services paid in common stock	24,115	167,499
Amortization of debt discount	51,608	98,906
Stock options issued for services		20,630
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	-16,172	-58,550
(Increase) decrease in inventory	134,629	-12,430
(Increase) decrease in prepaid expenses and other assets	2,059	-25,362
Increase (decrease) in accounts payable and accrued expenses	78,066	141,137
Increase (decrease) in accrued officer compensation	-1,947	-65,999
Increase (decrease) in deferred revenue	-12,419	-2,899
Increase (decrease) in accrued interest	178,377	118,461
Net cash used in operating activities	-681,589	-1,444,413
Cash Flows from Investing Activities
Purchase of property and equipment	-3,083	-17,965
Net cash used in investing activities	-3,083	-10,465
Cash Flows from Financing Activities
Advances / (repayments) from officers, net		-28,825
Payments on term loans	-254,500
Proceeds from convertible notes payable	950,000
Proceeds from related party convertible notes payable	466,000	900,000
Net cash provided by financing activities	1,161,500	871,175
Net increase (decrease) in cash and cash equivalents	476,828	-583,703
Cash and cash equivalents, beginning of period	146,200	680,914
Cash and cash equivalents, end of period	623,028	97,211
Supplemental disclosure of noncash financing and investing activities:
Conversion of deferred compensation into convertible demand notes payable		55,500
Issuance of warrants for financing costs classified as debt discount		165,922
Issuance of common stock for conversion of debt	84,500
Stock Issued for Services/Financing Costs [Member]
Adjustment to reconcile net loss to net cash used in operating activities:
Common stock issued for services and financing costs	35,781	17,500
Supplemental disclosure of noncash financing and investing activities:
Issuance of common stock for services and financing costs	35,781	17,500
Stock Issued for Services/Financing Costs [Member]
Adjustment to reconcile net loss to net cash used in operating activities:
Common stock issued for services and financing costs	134,472
Supplemental disclosure of noncash financing and investing activities:
Issuance of common stock for services and financing costs	134,472
Trademarks [Member]
Cash Flows from Investing Activities
Proceeds from sale of trademark		$7,500

Note_1_Nature_of_Operations_an

Note 1 - Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	1	NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	.
	Nature of Business
	The Company designs, develops, and sells personal, pet, and vehicle locator devices and services including PocketFinder® People, PocketFinder® Pets and PocketFinder® Vehicles. The PocketFinder® is a small, completely wireless, location device that enables a user to locate a person, pet, vehicle or valuable item at any time from almost anywhere using Global Positioning System (“GPS”) and General Packet Radio Service (“GPRS”) technologies. The Company is located in Irvine, California.
	Organization
	Location Based Technologies, Inc. (formerly known as Springbank Resources, Inc.) (the “Company,” “our,” “we” or “LBT”) was incorporated under the laws of the State of Nevada on April 10, 2006.
	Location Based Technologies, Corp. (formerly known as PocketFinder, Inc.) was incorporated under the laws of the State of California on September 16, 2005. On July 7, 2006, it established PocketFinder, LLC (“LLC”), a California Limited Liability Company. On May 29, 2007, PocketFinder, Inc. filed amended articles with the Secretary of State to change its name to Location Based Technologies, Corp., and in October 2007 was merged into LBT.
	On September 30, 2009, the Company formed Location Based Technologies, Ltd. (“LBT, Ltd.”), an England and Wales private limited company, to establish a presence in Europe. LBT, Ltd. is a wholly owned subsidiary of the Company.
	Consolidation Policy
	The accompanying consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiary, Location Based Technologies, Ltd. Intercompany balances and transactions have been eliminated in consolidation.
	Basis of Presentation
	The unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to financial statements included in the annual report on Form 10-K of Location Based Technologies, Inc. for the year ended August 31, 2014. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2014, are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited consolidated financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended August 31, 2014, included in the Company’s report on Form 10-K.
	Going Concern
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred net losses since inception, and as of November 30, 2014, had an accumulated deficit of $62,323,232 and negative working capital of $7,464,285. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
	Management recognizes that the Company must generate additional resources to enable it to continue operations. Management intends to raise additional financing through debt and equity financing or through other means that it deems necessary, with a view to moving forward and sustaining prolonged growth in its strategy phases. However, no assurance can be given that the Company will be successful in raising additional capital. Further, even if the Company raises additional capital, there can be no assurance that the Company will achieve profitability or positive cash flow. If management is unable to raise additional capital and expected significant revenues do not result in positive cash flow, the Company will not be able to meet its obligations and may have to cease operations.
	Allowance for Doubtful Accounts
	The 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 the current status of accounts receivable. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. As of November 30, 2014
	and August 31, 2014, the allowance for doubtful accounts amounted to $39,564 and $27,000, respectively.
	Allowance for Sales returns
	An allowance for sales returns is recorded as a reduction to revenue and based on management’s judgment using historical experience and expectation of future conditions. As of November 30, 2014 and August 31, 2014, the allowance for sales returns amounted to $9,000 and $27,000, respectively.
	Inventory
	Inventories are valued at the lower of cost (first-in, first-out) or market and primarily consisted of components and finished goods for the Company’s PocketFinder® products. Packaging costs are expensed as incurred. The Company provides for a lower-of-cost-or-market ("LCM") adjustment against gross inventory values. Management estimates the current wholesale price of $58.00 as the realizable value of the inventory. Management estimated sales for the next 24 month period based on historical sales data and prospective sales trends and determined that all inventory is expected to be sold in the next two years. Management analyzed and tested certain components that could possibly become obsolete and determined that the useful life exceeded the two year estimate to sell the inventory. In addition, the components inventory, net of the LCM valuation reserve, totaling $513,104 is classified as a noncurrent asset at November 30, 2014 (see Note 3).
	D
	eferred Revenue
	As of November 30, 2014 and August 31, 2014, deferred revenue amounted to $17,272 and $29,961, respectively, and consisted of prepaid service revenue from subscribers.
	Advertising Costs
	Advertising costs are expensed as incurred. For the three months ended November 30, 2014 and 2013, the Company incurred $14,092 and $485,391 of advertising costs, respectively.

Note_2_Earnings_Loss_Per_Share

Note 2 - Earnings Loss Per Share	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Earnings Per Share [Text Block]	2	EARNINGS LOSS PER SHARE
	.
	The Company computes basic earnings (loss) per share using the weighted average number of common shares outstanding during the period in accordance with FASB ASC 260 –
	Earnings Per Share,
	which specifies the compilation, presentation, and disclosure requirements for income per share for entities with publicly held common stock or instruments which are potentially common stock.
	Diluted earnings (loss) per share are computed using the weighted average number of common shares outstanding and the dilutive potential common shares outstanding during the period. The following potential common shares are excluded from diluted loss per share as their effect would be anti-dilutive.
			30-Nov		August 31,
			,
			201		201
			4		4
	Warrants			17,956,715		17,956,715
	Stock options			3,025,000		3,025,000
	Convertible notes payable			52,253,438		40,564,550
	Dilutive potential common shares			73,235,153		61,546,265

Note_3_Inventory

Note 3 - Inventory	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Inventory Disclosure [Text Block]	3	INVENTORY
	.
	Inventory at November 30, 2014 and August 31, 2014 consisted of the following:
			30-Nov			31-Aug
			,			,
			201			201
			4			4
	Current:
	Finished goods		$	882,842		$	1,016,876
	Device Components			515,602			419,681
	Inventory valuation reserve			(607,202	)		(643,225	)
	Inventories, current		$	791,242		$	793,332
	Noncurrent:
	Device components		$	955,207		$	1,051,722
	Inventory valuation reserve for components			(442,103	)		(486,576	)
	Inventories, noncurrent		$	513,104		$	565,146
	In the first quarter of 2012, the Company purchased a substantial amount of inventory components to produce PocketFinder® devices. Management analyzed its inventories based on existing purchase orders and current potential orders for future delivery and determined we may not realize all of the inventory components within the next year. The Company expects that it will take approximately six months to sell finished goods inventory on hand at November 30, 2014. Following the sale of all finished goods inventory, components inventory will be utilized to manufacture additional devices that are expected to be sold in year 1 and 2. Inventories totaling $513,104 which may not be realized within a 12-month period have been reclassified as long-term as of November 30, 2014.

Note_4_Related_Party_Transacti

Note 4 - Related Party Transactions	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	4	RELATED PARTY TRANSACTIONS
	.
	Advances from Officer
	During the three months ended November 30, 2014 and 2013, there were advances from our Chief Development Officer totaling $0 and $48,825, respectively; and repayments totaling $0 and $20,000, respectively. As of November 30, 2014, there was $105,000 of outstanding advances and $3,967 of related accrued interest.
	SkyBell Technologies, Inc.
	The Company occupies office space at a facility leased by SkyBell Technologies, Inc. (“SkyBell”). In addition, the Company outsources its customer service to SkyBell under a month to month contract that commenced in February 2014. SkyBell is owned and operated by Joseph Scalisi, Chief Development Officer, and Desiree Mejia, Chief Operating Officer. During the three months ended November 30, 2014, the Company incurred $49,807 in costs related to these services.
	Accounts Payable
	Amounts payable to related parties totaled $596,787 as of November 30, 2014.

Note_5_Debt

Note 5 - Debt	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Convertible Notes Payable [Text Block]	5	DEBT
	New Debt Issuances
	The following debt was issued during the three months ended November 30, 2014:
	On September 5, 2014, the Company entered into a convertible promissory note for $450,000. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on September 5, 2015 and is secured by certain intellectual property owned by the Company.
	On September 11, 2014, the Company entered into a convertible promissory note for $150,000 with a board member. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on September 11, 2016 and is secured by all assets of the Company.
	On October 14, 2014, the Company entered into a convertible promissory note for $100,000 with a board member. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on October 14, 2016 and is secured by all assets of the Company.
	On November 21, 2014, the Company entered into a convertible promissory note for $500,000. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on December 1, 2015 and is secured by all assets of the Company.
	On November 26, 2014, the Company entered into a convertible promissory note for $216,000 with a board member. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on November 26, 2016 and is secured by all assets of the Company.
	Debt
	Amendments
	The following debt amendments were executed during the three months ended November 30, 2014:
	On September 5, 2014, the Company amended the secured promissory note payable totaling $1,000,000 to extend the maturity date to September 5, 2015 and to allow the Lender at the Maturity Date, or during any time after April 15, 2015, the right, but not the obligation, to convert this Note into shares of the Company’s common stock at a price equal to the lower of $0.20 per share or 50% of the closing stock price on the day after the Company is given notice of the conversion by the Lender (the “Conversion Price”).
	On November 28, 2014, the Company amended one convertible demand note payable totaling $28,500 to eliminate the extension fee and increase the interest rate to Ten Percent (10%) per annum.
	On November 28, 2014, the Company amended five convertible notes payable to related parties totaling $1,114,487 to eliminate the extension fee and increase the interest rate to Ten Percent (10%) per annum.
	Principal Repayments
	As of November 30, 2014, the principal maturities of the convertible notes payable and related party convertible notes payable are as follows:
	For the Years Ending:
	30-Nov-15		$	7,244,439
	30-Nov-16			1,667,500
	Total		$	8,911,939

Note_6_Line_of_Credit_and_Term

Note 6 - Line of Credit and Term Loans	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Debt Disclosure [Text Block]	6	LINE OF CREDIT
		AND TERM LOANS
	SVB Line of Credit
	On January 5, 2011, the Company entered into a Loan and Security Agreement (“Loan Agreement”) with Silicon Valley Bank (“SVB”) for a $1,000,000 non-formula line of credit. The principal amount outstanding under the credit line accrues interest at a floating per annum rate equal to the greater of (i) the Prime Rate, plus 2.5% or (ii) 6.5% and is to be paid monthly. The Company must maintain certain financial covenants under the Loan Agreement. The personal guarantor for the credit line is a director and stockholder of the Company.
	In connection with the Loan Agreement, the Company entered into a Financing Agreement and Loan Guarantor Agreement with a board member to personally guarantee the Loan Agreement. As compensation for the guarantee under the Financing Agreement, the guarantor is entitled to payment of $5,000 per month, plus Two Percent (2%) of the outstanding balance of the SVB loan balance (“guarantee fee”), payable in cash or shares of the Company’s common stock at the guarantor’s option. As of November 30, 2014, the Company’s accounts payable and accrued expenses included $478,000 in guarantee fees owed to the board member.
	As of November 30, 2014, the outstanding balance on the line of credit and accrued interest totaled $750,000 and $10,691, respectively. Of the total amount of principal and
	interest due on the line of credit, $510,691 has been included in the current portion of term loans and accrued interest on the balance sheet as of November 30, 2014 and the balance of $250,000 in the non-current portion of term loans.
	JMJ Notes Payable
	As of November 30, 2014, the outstanding balance on the notes payable and accrued interest totaled $844,712 and $0, respectively. The total amount has been included in the current portion of term loans and accrued interest on the balance sheet as of November 30, 2014.

Note_7_Equity

Note 7 - Equity	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	7	EQUITY
	Common Stock
	The Company issued 375,000 shares of common stock to three board of directors in exchange for six months of service during the three months November 30, 2014. The shares were valued at $3,338, which represents the fair market value of the shares provided on the award date.
	The Company issued 1,359,254 shares of common stock in connection with note payable maturity date extensions during the three months ended November 30, 2014. The shares were valued at $81,555, which represents the fair market value of the shares issued on the award date.
	The Company issued 12,762,080 shares of common stock for the conversion of debt amounting to $84,500 during the three months ended November 30, 2014.
	The Company issued 3,100,000 shares of common stock to consultants in exchange for various advisory services during the three months November 30, 2014. The shares were valued at $85,360, which represents the fair market value of the shares provided on the award date.

Note_8_Provision_for_Income_Ta

Note 8 - Provision for Income Taxes	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Income Tax Disclosure [Text Block]	8	PROVISION FOR INCOME TAXES
	The Company did not provide any current or deferred U.S. federal income taxes or benefits for any of the periods presented because the Company has experienced operating losses since inception. The Company provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, because management
	has determined that it is more likely than not that we will not earn sufficient income to
	realize the deferred tax assets during the carry forward period.
	The components of the Company’s deferred tax asset as of November 30, 2014 and August 31, 2014
	are as follows:
			30-Nov			31-Aug
			,			,
			201			2014
			4
	Net operating loss carry forward and deductible temporary differences		$	21,302,867		$	20,880,437
	Valuation allowance			(21,302,867	)		(20,880,437	)
	Net deferred tax asset		$	-		$	-
	As of November 30, 2014, the Company had federal and state net operating loss carryforwards of approximately $53,481,351 which can be used to offset future federal income tax. The federal and state net operating loss carryforwards expire at various dates through 2033.
	As of November 30, 2014 no accrued interest and penalties are recorded relating to uncertain tax positions. Any such interest and penalties would be included in interest expense as a component of pre-tax net income or loss. The Company's tax filings are no longer open to examination by the Internal Revenue Service for tax years prior to 2009 and by state taxing authorities for tax years prior to 2008.

Note_9_Subsequent_Events

Note 9 - Subsequent Events	3 Months Ended
	Nov. 30, 2014
Notes to Financial Statements
Subsequent Events [Text Block]	9	SUBSEQUENT EVENTS
	On December 3, 2014, the Company entered into a convertible promissory note for $84,000 with a board member. The note bears interest at 10% per annum, may be converted into common stock of the Company at $0.10 per share, or 50% of the Company’s closing stock price at any time after April 15, 2015, upon written notice. The note is due on December 3, 2016 and is secured by all assets of the Company.
	On January 6, 2015, the Company issued 9,888,823 shares of common stock for the conversion of debt in the amount of $97,300.

Significant_Accounting_Policie

Significant Accounting Policies (Policies)	3 Months Ended
	Nov. 30, 2014
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Consolidation Policy
	The accompanying consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiary, Location Based Technologies, Ltd. Intercompany balances and transactions have been eliminated in consolidation.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation
	The unaudited consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed in the notes to financial statements included in the annual report on Form 10-K of Location Based Technologies, Inc. for the year ended August 31, 2014. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2014, are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited consolidated financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended August 31, 2014, included in the Company’s report on Form 10-K.
Liquidity Disclosure [Policy Text Block]	Going Concern
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred net losses since inception, and as of November 30, 2014, had an accumulated deficit of $62,323,232 and negative working capital of $7,464,285. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
	Management recognizes that the Company must generate additional resources to enable it to continue operations. Management intends to raise additional financing through debt and equity financing or through other means that it deems necessary, with a view to moving forward and sustaining prolonged growth in its strategy phases. However, no assurance can be given that the Company will be successful in raising additional capital. Further, even if the Company raises additional capital, there can be no assurance that the Company will achieve profitability or positive cash flow. If management is unable to raise additional capital and expected significant revenues do not result in positive cash flow, the Company will not be able to meet its obligations and may have to cease operations.
Trade and Other Accounts Receivable, Policy [Policy Text Block]	Allowance for Doubtful Accounts
	The 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 the current status of accounts receivable. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. As of November 30, 2014
	and August 31, 2014, the allowance for doubtful accounts amounted to $39,564 and $27,000, respectively.
Revenue Recognition, Sales Returns [Policy Text Block]	Allowance for Sales returns
	An allowance for sales returns is recorded as a reduction to revenue and based on management’s judgment using historical experience and expectation of future conditions. As of November 30, 2014 and August 31, 2014, the allowance for sales returns amounted to $9,000 and $27,000, respectively.
Inventory, Policy [Policy Text Block]	Inventory
	Inventories are valued at the lower of cost (first-in, first-out) or market and primarily consisted of components and finished goods for the Company’s PocketFinder® products. Packaging costs are expensed as incurred. The Company provides for a lower-of-cost-or-market ("LCM") adjustment against gross inventory values. Management estimates the current wholesale price of $58.00 as the realizable value of the inventory. Management estimated sales for the next 24 month period based on historical sales data and prospective sales trends and determined that all inventory is expected to be sold in the next two years. Management analyzed and tested certain components that could possibly become obsolete and determined that the useful life exceeded the two year estimate to sell the inventory. In addition, the components inventory, net of the LCM valuation reserve, totaling $513,104 is classified as a noncurrent asset at November 30, 2014 (see Note 3).
Revenue Recognition, Deferred Revenue [Policy Text Block]	D
	eferred Revenue
	As of November 30, 2014 and August 31, 2014, deferred revenue amounted to $17,272 and $29,961, respectively, and consisted of prepaid service revenue from subscribers.
Advertising Costs, Policy [Policy Text Block]	Advertising Costs
	Advertising costs are expensed as incurred. For the three months ended November 30, 2014 and 2013, the Company incurred $14,092 and $485,391 of advertising costs, respectively.

Note_2_Earnings_Loss_Per_Share1

Note 2 - Earnings Loss Per Share (Tables)	3 Months Ended
	Nov. 30, 2014
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]		30-Nov		August 31,
		,
		201		201
		4		4
	Warrants		17,956,715		17,956,715
	Stock options		3,025,000		3,025,000
	Convertible notes payable		52,253,438		40,564,550
	Dilutive potential common shares		73,235,153		61,546,265

Note_3_Inventory_Tables

Note 3 - Inventory (Tables)	3 Months Ended
	Nov. 30, 2014
Notes Tables
Schedule of Inventory, Current [Table Text Block]		30-Nov			31-Aug
		,			,
		201			201
		4			4
	Current:
	Finished goods	$	882,842		$	1,016,876
	Device Components		515,602			419,681
	Inventory valuation reserve		(607,202	)		(643,225	)
	Inventories, current	$	791,242		$	793,332
	Noncurrent:
	Device components	$	955,207		$	1,051,722
	Inventory valuation reserve for components		(442,103	)		(486,576	)
	Inventories, noncurrent	$	513,104		$	565,146

Note_5_Debt_Tables

Note 5 - Debt (Tables)	3 Months Ended
	Nov. 30, 2014
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	30-Nov-15	$	7,244,439
	30-Nov-16		1,667,500
	Total	$	8,911,939

Note_8_Provision_for_Income_Ta1

Note 8 - Provision for Income Taxes (Tables)	3 Months Ended
	Nov. 30, 2014
Notes Tables
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]		30-Nov			31-Aug
		,			,
		201			2014
		4
	Net operating loss carry forward and deductible temporary differences	$	21,302,867		$	20,880,437
	Valuation allowance		(21,302,867	)		(20,880,437	)
	Net deferred tax asset	$	-		$	-

Note_1_Nature_of_Operations_an1

Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended	15 Months Ended
	Nov. 30, 2014	Nov. 30, 2014	Aug. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Retained Earnings (Accumulated Deficit)	($62,323,232)	($62,323,232)	($61,211,909)
Allowance for Doubtful Accounts Receivable	39,564	39,564	27,000
Inventory Realizable Value	58	58
Sale of Inventory, Expected Period	2 years
Inventory, Noncurrent	513,104	513,104	565,146
Deferred Revenue	17,272	17,272	29,961
Marketing and Advertising Expense	14,092	485,391
Working Capital	-7,464,285	-7,464,285
Allowance for Sales Returns [Member]
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Valuation Allowances and Reserves, Balance	$9,000	$9,000	$27,000

Note_2_Antidilutive_Securities

Note 2 - Antidilutive Securities Excluded from Earnings Per Share (Details)	3 Months Ended	12 Months Ended
	Nov. 30, 2014	Aug. 31, 2014
Warrants (in shares)	73,235,153	61,546,265
Convertible Debt Securities [Member]
Warrants (in shares)	52,253,438	40,564,550
Equity Option [Member]
Warrants (in shares)	3,025,000	3,025,000
Warrant [Member]
Warrants (in shares)	17,956,715	17,956,715

Note_3_Inventory_Details_Textu

Note 3 - Inventory (Details Textual) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Inventory Disclosure [Abstract]
Inventory, Noncurrent	$513,104	$565,146

Note_3_Components_of_Inventory

Note 3 - Components of Inventory (Details) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Inventories, current	$791,242	$793,332
Inventories, noncurrent	513,104	565,146
Current [Member]
Inventory valuation reserve	-607,202	-643,225
Current [Member] | Device Components [Member]
Device Components	515,602	419,681
Current [Member] | Finished Goods [Member]
Finished goods	882,842	1,016,876
Noncurrent [Member]
Inventory valuation reserve	-442,103	-486,576
Noncurrent [Member] | Device Components [Member]
Device Components	$955,207	$1,051,722

Note_4_Related_Party_Transacti1

Note 4 - Related Party Transactions (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014	Nov. 30, 2013	Aug. 31, 2014
Related Party Transactions [Abstract]
Proceeds from Related Party Debt	$466,000	$900,000
Due to Related Parties, Current	108,967		106,872
Accounts Payable, Related Parties	596,787
Chief Development Officer [Member]
Related Party Transactions [Abstract]
Proceeds from Related Party Debt	0	48,825
Repayments of Related Party Debt	0	20,000
Due to Related Parties, Current	105,000
Chief Development Officer [Member] | Accrued Interest [Member]
Related Party Transactions [Abstract]
Due to Related Parties, Current	3,967
SkyBell Technologies Inc [Member]
Related Party Transactions [Abstract]
Related Party Transaction, Expenses from Transactions with Related Party	$49,807

Note_5_Debt_Details_Textual

Note 5 - Debt (Details Textual) (USD $)	Nov. 28, 2014	Nov. 21, 2014	Sep. 05, 2014	Nov. 26, 2014	Oct. 14, 2014	Sep. 11, 2014
Convertible Debt [Abstract]
Convertible Notes Payable		$500,000	$450,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price		$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price		50.00%	50.00%
Debt Instrument, Face Amount	28,500
Board Member [Member]
Convertible Debt [Abstract]
Convertible Notes Payable				216,000	100,000	150,000
Debt Instrument, Interest Rate, Stated Percentage				10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price				$0.10	$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price				50.00%	50.00%	50.00%
In Connection with Note Payable Extension [Member]
Convertible Debt [Abstract]
Debt Instrument, Convertible, Conversion Price			$0.20
Debt Instrument Convertible Conversion Price Percentage of Stock Price			50.00%
Debt Instrument, Face Amount			1,000,000
Five Notes [Member]
Convertible Debt [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Face Amount	$1,114,487

Note_5_Principal_Maturities_of

Note 5 - Principal Maturities of Convertible Notes Payable (Details) (Convertible Note Payable [Member], USD $)	Nov. 30, 2014
Convertible Note Payable [Member]
30-Nov-15	$7,244,439
30-Nov-16	1,667,500
Total	$8,911,939

Note_6_Line_of_Credit_and_Term1

Note 6 - Line of Credit and Term Loans (Details Textual) (USD $)	0 Months Ended
	Jan. 05, 2011	Nov. 28, 2014	Nov. 21, 2014	Sep. 05, 2014	Nov. 30, 2014
	Rate
Debt Disclosure [Abstract]
Debt Instrument, Interest Rate, Stated Percentage		10.00%	10.00%	10.00%
Loan Agreement [Member]
Debt Disclosure [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity	1,000,000
Guarantee Fee					5,000
Percentage of Loan Balance, Guarantee Fee					2.00%
Long-term Line of Credit					750,000
Interest Payable					10,691
Line of Credit, Current					510,691
Long-term Line of Credit, Noncurrent					250,000
Loan Agreement [Member] | Prime Rate [Member]
Debt Disclosure [Abstract]
Debt Instrument, Basis Spread on Variable Rate	2.50%
Loan Agreement [Member] | Minimum [Member]
Debt Disclosure [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Loan Agreement [Member] | Guarantee Fee [Member]
Debt Disclosure [Abstract]
Accounts Payable and Other Accrued Liabilities					478,000
Settlement Agreement [Member]
Debt Disclosure [Abstract]
Interest Payable					0
Notes Payable					$844,712

Note_7_Equity_Details_Textual

Note 7 - Equity (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Value, Conversion of Convertible Securities	$84,500
Advisory Services [Member]
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, Issued for Services	3,100,000
Stock Issued During Period, Value, Issued for Services	85,360
Conversion of Debt [Member]
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, Conversion of Convertible Securities	12,762,080
Stock Issued During Period, Value, Conversion of Convertible Securities	84,500
In Connection with Note Payable Extension [Member]
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, New Issues	1,359,254
Stock Issued During Period, Value, New Issues	81,555
Six Months of Service [Member]
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, Issued for Services	375,000
Stock Issued During Period, Value, Issued for Services	$3,338

Note_8_Provision_for_Income_Ta2

Note 8 - Provision for Income Taxes (Details Textual) (USD $)	3 Months Ended
	Nov. 30, 2014
Income Tax Disclosure [Abstract]
Income Tax Examination, Penalties and Interest Accrued	0
Domestic Tax Authority [Member]
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards	53,481,351
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Income Tax Disclosure [Abstract]
Open Tax Year	2009
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Income Tax Disclosure [Abstract]
Open Tax Year	2008

Note_8_Components_of_Deferred_

Note 8 - Components of Deferred Tax Assets (Details) (USD $)	Nov. 30, 2014	Aug. 31, 2014
Net operating loss carry forward and deductible temporary differences	$21,302,867	$20,880,437
Valuation allowance	-21,302,867	-20,880,437
Net deferred tax asset	$0	$0

Note_9_Subsequent_Events_Detai

Note 9 - Subsequent Events (Details Textual) (USD $)	0 Months Ended
	Jan. 06, 2015	Nov. 28, 2014	Nov. 21, 2014	Sep. 05, 2014	Nov. 26, 2014	Oct. 14, 2014	Sep. 11, 2014	Dec. 03, 2014
Subsequent Events [Abstract]
Convertible Notes Payable			$500,000	$450,000
Debt Instrument, Interest Rate, Stated Percentage		10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price			$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price			50.00%	50.00%
Board Member [Member]
Subsequent Events [Abstract]
Convertible Notes Payable					216,000	100,000	150,000
Debt Instrument, Interest Rate, Stated Percentage					10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price					$0.10	$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price					50.00%	50.00%	50.00%
Subsequent Event [Member]
Subsequent Events [Abstract]
Debt Conversion, Converted Instrument, Shares Issued	9,888,823
Debt Conversion, Converted Instrument, Amount	97,300
Subsequent Event [Member] | Board Member [Member]
Subsequent Events [Abstract]
Convertible Notes Payable								$84,000
Debt Instrument, Interest Rate, Stated Percentage								10.00%
Debt Instrument, Convertible, Conversion Price								$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price								50.00%