Location Based (LBAS) 10-Q 10 Apr 15 2015 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Feb. 28, 2015	Apr. 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)		277,530,645
Document Type	10-Q
Document Period End Date	28-Feb-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	FALSE

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Feb. 28, 2015	Aug. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$237,099	$146,200
Accounts receivable, net of allowances	97,243	78,422
Inventories, current	749,805	793,332
Prepaid expenses and other assets	21,272	45,062
Deferred financing costs		5,506
Total current assets	1,105,420	1,068,522
Property and equipment, net of accumulated depreciation	38,377	65,817
OTHER ASSETS
Intangible assets, net of accumulated amortization	562,441	596,977
Inventory, Noncurrent	513,084	565,146
Deposits	30,000	30,000
Total other assets	1,105,525	1,192,123
TOTAL ASSETS	2,249,322	2,326,462
CURRENT LIABILITIES
Accounts payable and accrued expenses	1,812,367	1,865,282
Deferred compensation	281,844	261,814
Deferred revenue	8,127	29,691
Advances from officer and accrued interest	111,038	106,872
Current portion of term loans and accrued interest	1,155,918	1,618,462
Derivative liabilities	601,627
Total current liabilities	13,085,108	8,311,818
Convertible term notes payable		843,787
Related party convertible term notes payable and accrued interest, net of unamortized discounts	1,068,711	2,820,106
Term loans	125,000	333,333
TOTAL LIABILITIES	14,278,819	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
Common stock, $0.001 par value; 300,000,000 shares authorized; 277,530,645 and 241,095,488 shares issued and outstanding at February 28, 2015 and August 31, 2014, respectively	277,531	241,096
Additional paid-in capital	50,921,523	51,036,456
Prepaid services paid in common stock		-48,225
Accumulated deficit	-63,228,551	-61,211,909
Total stockholders' equity (deficit)	-12,029,497	-9,982,582
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	2,249,322	2,326,462
Convertible Demand Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Convertible demand notes payable and accrued interest	28,960	30,163
Convertible Term Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Convertible demand notes payable and accrued interest	5,103,916	3,100,361
Related Party Convertible Demand Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Related party convertible demand notes payable and accrued interest	1,245,316	1,192,187
Related Party Convertible Term Notes Payable and Accrued Interest [Member]
CURRENT LIABILITIES
Related party convertible demand notes payable and accrued interest	$2,735,995	$106,986

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Feb. 28, 2015	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)	277,530,645	241,095,488
Common stock, outstanding (in shares)	277,530,645	241,095,488

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014
Net revenue
Devices	$149,295	$107,582	$362,330	$350,973
Services	280,631	233,509	593,598	398,922
Total net revenue	429,926	341,091	955,928	749,895
Cost of revenue
Devices	106,122	92,152	256,515	235,969
Services	134,888	255,253	316,561	493,243
Total cost of revenue	241,010	347,405	573,076	729,212
Gross profit (loss)	188,916	-6,314	382,852	20,683
Operating expenses
General and administrative	258,595	290,576	536,458	1,019,210
Officer compensation	112,500	233,059	225,000	479,746
Professional fees	130,313	174,465	364,120	548,958
Rent	5,003	19,202	24,743	38,405
Research and development		9,790	125,000	99,548
Salaries and wages	208,860	61,243	298,300	109,822
Total operating expenses	715,271	788,335	1,573,621	2,295,689
Net operating loss	-526,355	-794,649	-1,190,769	-2,275,006
Other income (expense)
Financing costs	-50,585	-105,000	-181,085	-253,880
Amortization of beneficial conversion feature		-28,301		-60,948
Amortization of deferred financing costs		-90,523	-5,506	-108,350
Amortization of debt discount	-51,609	-106,264	-103,217	-205,170
Interest expense, net	-276,773	-168,146	-536,024	-321,436
Gain on debt settlement				886,548
Loss on asset disposals		-49,000		-48,431
Foreign currency gain (loss), net	3	-470	-41	-470
Total other income (expense)	-378,964	-547,704	-825,873	-112,137
Net loss before income taxes	-905,319	-1,342,353	-2,016,642	-2,387,143
Provision for income taxes			0	800
Net Loss	($905,319)	($1,342,353)	($2,016,642)	($2,387,943)
Basic and Diluted - Earnings (loss) Per Share (in dollars per share)	($0.01)	($0.01)	($0.01)	($0.01)
Basic and Diluted - Weighted Average Number of Shares Outstanding (in shares)	265,330,116	216,584,974	257,266,813	214,133,373

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Cash Flows from Operating Activities
Net loss	($2,016,642)	($2,387,943)
Adjustment to reconcile net loss to net cash used in operating activities:
Loss on asset disposal		48,431
Gain on debt settlement		-886,548
Provision for doubtful accounts and sales returns	-16,500	1,000
Provision for inventory reserve	-129,609	-330
Depreciation and amortization	65,059	61,306
Amortization of beneficial conversion feature		60,948
Amortization of deferred financing costs	5,506	108,350
Amortization of prepaid services paid in common stock	48,225	239,169
Amortization of debt discount	103,217	205,170
Common stock issued for services and financing costs	44,281	88,670
Stock options issued for services	81,576	33,132
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	-2,321	41,501
(Increase) decrease in inventory	225,197	6,986
(Increase) decrease in prepaid expenses and other assets	23,790	-17,099
Increase (decrease) in accounts payable and accrued expenses	81,557	317,643
Increase (decrease) in accrued officer compensation	20,030	21,691
Increase (decrease) in deferred revenue	-21,564	-8,298
Increase (decrease) in accrued interest	382,182	267,351
Net cash used in operating activities	-1,106,016	-1,798,870
Cash Flows from Investing Activities
Purchase of property and equipment	-3,083	-49,467
Net cash used in investing activities	-3,083	-41,967
Cash Flows from Financing Activities
Advances / (repayments) from officers, net		-3,825
Payment on term loans	-397,502
Proceeds from convertible notes payable	950,000	150,000
Proceeds from related party convertible notes payable	650,000	1,100,000
Repayments of related party convertible notes payable	-2,500
Net cash provided by financing activities	1,199,998	1,246,175
Net increase (decrease) in cash and cash equivalents	90,899	-594,662
Cash and cash equivalents, beginning of period	146,200	680,914
Cash and cash equivalents, end of period	237,099	86,252
Non-Cash Financing Activities:
Issuance of common stock for conversion of debt	262,800
Issuance of common stock for services and financing costs	134,472	312,500
Conversion of accrued compensation into convertible notes payable		55,500
Conversion of accounts payable into common stock		315,000
Issuance of warrants for financing costs classified as debt discount		201,978
Derivative liability for insufficient number of authorized shares	601,627
Trademarks [Member]
Adjustment to reconcile net loss to net cash used in operating activities:
Gain on sale of trademark		-569
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	6 Months Ended
	Feb. 28, 2015
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 have 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 six months ended February 28, 2015, 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 February 28
	,
	2015, had an accumulated deficit of $63,228,551 and negative working capital of $11,979,688. 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 February 28, 2015
	and August 31, 2014, the allowance for doubtful accounts amounted to $32,000 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 February 28, 2015 and August 31, 2014, the allowance for sales returns amounted to $5,500 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 selling 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, a portion of the components inventory, net of the LCM valuation reserve, totaling $513,084 is classified as a noncurrent asset at February 28, 2015 (see Note 3).
	D
	eferred Revenue
	Deferred revenue is a liability related to revenue producing activity for which revenue has not yet been recognized. As of February 28, 2015 and August 31, 2014, deferred revenue amounted to $8,127 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 February 28, 2015 and 2014, the Company incurred $4,590 and $0 of advertising costs, respectively. For the six months ended February 28, 2015 and 2014, the Company incurred $18,682 and $466,612 of advertising costs, respectively.
	Derivative Liabilities
	During the six months ended February 28, 2015, the Company issued additional convertible notes and common stock for the conversion of debt. The Company has determined that there are no longer sufficient authorized shares to satisfy outstanding warrants, option agreements and convertible notes if all such agreements were to be exercised or noteholders elected to convert. Accordingly, the Company recognized this as a derivative liability and recorded such liability $601,627 and a reduction to additional paid-in-capital using the Black-Scholes valuation method to estimate the fair value of the derivative liability as of February 28, 2015. The Company used a weighted average risk free interest rate of 2.0%, an expected life of .88 years, an annual volatility of 727% and no dividends to determine the value of the derivative liability.

Note_2_Earnings_Loss_Per_Share

Note 2 - Earnings Loss Per Share	6 Months Ended
	Feb. 28, 2015
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.
			28-Feb		August 31,
			,
			201		201
			5		4
	Warrants			17,684,022		17,956,715
	Stock options			3,495,163		3,025,000
	Convertible notes payable			58,568,438		40,564,550
	Dilutive potential common shares			79,747,623		61,546,265

Note_3_Inventory

Note 3 - Inventory	6 Months Ended
	Feb. 28, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	3	INVENTORY
	.
	Inventory at February 28, 2015 and August 31, 2014 consisted of the following:
			28-Feb			31-Aug
			,			,
			201			201
			5			4
	Current:
	Finished goods		$	792,823		$	1,016,876
	Device Components			515,423			419,681
	Inventory valuation reserve			(558,441	)		(643,225	)
	Inventories, current		$	749,805		$	793,332
	Noncurrent:
	Device components		$	954,837		$	1,051,722
	Inventory valuation reserve for components			(441,753	)		(486,576	)
	Inventories, noncurrent		$	513,084		$	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 recently signed a new distribution agreement to sell product in Mexico and now expects that it will take approximately four months to sell finished goods inventory on hand at February 28, 2015. 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 $954,837 which may not be realized within a 12-month period have been reclassified as long-term as of February 28, 2015.

Note_4_Related_Party_Transacti

Note 4 - Related Party Transactions	6 Months Ended
	Feb. 28, 2015
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	4	RELATED PARTY TRANSACTIONS
	.
	Advances from Officer
	During the six months ended February 28, 2015 and 2014, there were advances from our Chief Development Officer totaling $0 and $151,000, respectively; and repayments totaling $0 and $154,824, respectively. As of February 28, 2015, there was $105,000 of outstanding advances and $6,038 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 February 28, 2015, the Company
	incurred $15,355 in costs related to these services. During the six months ended February 28, 2015, the Company incurred $65,162 in costs related to these services.
	Accounts Payable and Accrued Expenses
	Amounts payable to related parties totaled $696,883 and $471,979 as of February 28, 2015 and August 31, 2014, respectively.

Note_5_Debt

Note 5 - Debt	6 Months Ended
	Feb. 28, 2015
Notes to Financial Statements
Convertible Notes Payable [Text Block]	5	DEBT
	.
	New Debt Issuances
	The following debt was issued during the six months ended February 28, 2015:
	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.
	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 7, 2015, the Company entered into a convertible promissory note for $50,000 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 January 7, 2017 and is secured by all assets of the Company.
	On February 3, 2015, the Company entered into a convertible promissory note for $50,000 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 February 3, 2017 and is secured by all assets of the Company.
	Debt
	Amendments
	The following debt amendments were executed during the six months ended February 28, 2015:
	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.
	15
	On February 27, 2015, the Company amended two secured promissory note payable with a board member totaling $1,400,000 to allow the Lender at the Maturity Date, or during any time after April 15, 2015, the right, but not the obligation, to convert these Notes 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”).
	Principal Repayments
	As of February 28, 2015, the principal maturities of the convertible notes payable and related party convertible notes payable are as follows:
	For the Years Ending:
	28-Feb-16		$	8,066,939
	February 29, 2017			1,026,500
	Total		$	9,093,439

Note_6_Line_of_Credit_and_Term

Note 6 - Line of Credit and Term Loans	6 Months Ended
	Feb. 28, 2015
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 February 28, 2015, the Company’s accounts payable and accrued expenses included $528,000 in guarantee fees owed to the board member.
	As of February 28, 2015, the outstanding balance on the line of credit and accrued interest totaled $625,000 and $7,508, respectively. Of the total amount of principal and interest due on the line of credit, $507,508 has been included in the current portion of term loans and accrued interest on the balance sheet as of February 28, 2015 and the balance of $125,000 in the non-current portion of term loans.
	JMJ Notes Payable
	As of February 28, 2015, the outstanding balance on the notes payable and accrued interest totaled $648,412 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 February 28, 2015.

Note_7_Equity

Note 7 - Equity	6 Months Ended
	Feb. 28, 2015
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 members of the board of directors in exchange for six months of service during the six months ended February 28, 2015. 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 six months ended February 28, 2015. The shares were valued at $81,555, which represents the fair market value of the shares issued on the award date of March 2014.
	The Company issued 30,750,903 shares of common stock for the conversion of debt amounting to $262,800 during the six months ended February 28, 2015.
	The Company issued 3,950,000 shares of common stock to consultants in exchange for various advisory services during the six months February 28, 2015. The shares were valued at $40,943, 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	6 Months Ended
	Feb. 28, 2015
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 February 28, 2015 and August 31, 2014
	are as follows:
			28-Feb			31-Aug
			,			,
			201			2014
			5
	Net operating loss carry forward and deductible temporary differences		$	21,649,179		$	20,880,437
	Valuation allowance			(21,649,179	)		(20,880,437	)
	Net deferred tax asset		$	-		$	-
	As of February 28, 2015, the Company had federal and state net operating loss carryforwards of approximately $54,353,953 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 February 28
	, 2015
	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 2012 and by state taxing authorities for tax years prior to 2012.

Note_9_Subsequent_Events

Note 9 - Subsequent Events	6 Months Ended
	Feb. 28, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	9	SUBSEQUENT EVENTS
	On March 9, 2015, the Company entered into a convertible promissory note for $300,000 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 March 9, 2017 and is secured by all assets of the Company.
	On April 6, 2015, the Company entered into a convertible promissory note for $50,000 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 April 6, 2017 and is secured by all assets of the Company.

Significant_Accounting_Policie

Significant Accounting Policies (Policies)	6 Months Ended
	Feb. 28, 2015
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 have 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 six months ended February 28, 2015, 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 February 28
	,
	2015, had an accumulated deficit of $63,228,551 and negative working capital of $11,979,688. 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 February 28, 2015
	and August 31, 2014, the allowance for doubtful accounts amounted to $32,000 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 February 28, 2015 and August 31, 2014, the allowance for sales returns amounted to $5,500 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 selling 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, a portion of the components inventory, net of the LCM valuation reserve, totaling $513,084 is classified as a noncurrent asset at February 28, 2015 (see Note 3).
Revenue Recognition, Deferred Revenue [Policy Text Block]	D
	eferred Revenue
	Deferred revenue is a liability related to revenue producing activity for which revenue has not yet been recognized. As of February 28, 2015 and August 31, 2014, deferred revenue amounted to $8,127 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 February 28, 2015 and 2014, the Company incurred $4,590 and $0 of advertising costs, respectively. For the six months ended February 28, 2015 and 2014, the Company incurred $18,682 and $466,612 of advertising costs, respectively.
Derivatives, Policy [Policy Text Block]	Derivative Liabilities
	During the six months ended February 28, 2015, the Company issued additional convertible notes and common stock for the conversion of debt. The Company has determined that there are no longer sufficient authorized shares to satisfy outstanding warrants, option agreements and convertible notes if all such agreements were to be exercised or noteholders elected to convert. Accordingly, the Company recognized this as a derivative liability and recorded such liability $601,627 and a reduction to additional paid-in-capital using the Black-Scholes valuation method to estimate the fair value of the derivative liability as of February 28, 2015. The Company used a weighted average risk free interest rate of 2.0%, an expected life of .88 years, an annual volatility of 727% and no dividends to determine the value of the derivative liability.

Note_2_Earnings_Loss_Per_Share1

Note 2 - Earnings Loss Per Share (Tables)	6 Months Ended
	Feb. 28, 2015
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]		28-Feb		August 31,
		,
		201		201
		5		4
	Warrants		17,684,022		17,956,715
	Stock options		3,495,163		3,025,000
	Convertible notes payable		58,568,438		40,564,550
	Dilutive potential common shares		79,747,623		61,546,265

Note_3_Inventory_Tables

Note 3 - Inventory (Tables)	6 Months Ended
	Feb. 28, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]		28-Feb			31-Aug
		,			,
		201			201
		5			4
	Current:
	Finished goods	$	792,823		$	1,016,876
	Device Components		515,423			419,681
	Inventory valuation reserve		(558,441	)		(643,225	)
	Inventories, current	$	749,805		$	793,332
	Noncurrent:
	Device components	$	954,837		$	1,051,722
	Inventory valuation reserve for components		(441,753	)		(486,576	)
	Inventories, noncurrent	$	513,084		$	565,146

Note_5_Debt_Tables

Note 5 - Debt (Tables)	6 Months Ended
	Feb. 28, 2015
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	28-Feb-16	$	8,066,939
	February 29, 2017		1,026,500
	Total	$	9,093,439

Note_8_Provision_for_Income_Ta1

Note 8 - Provision for Income Taxes (Tables)	6 Months Ended
	Feb. 28, 2015
Notes Tables
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]		28-Feb			31-Aug
		,			,
		201			2014
		5
	Net operating loss carry forward and deductible temporary differences	$	21,649,179		$	20,880,437
	Valuation allowance		(21,649,179	)		(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		6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Feb. 28, 2014	Aug. 31, 2014
Entity Information [Line Items]
Retained Earnings (Accumulated Deficit)	($63,228,551)		($63,228,551)		($61,211,909)
Working Capital	-11,979,688		-11,979,688
Allowance for Doubtful Accounts Receivable	32,000		32,000		27,000
Inventory Realizable Value	58		58
Sale of Inventory, Expected Period			2 years
Inventory, Noncurrent	513,084		513,084		565,146
Deferred Revenue	8,127		8,127		29,961
Marketing and Advertising Expense	4,590	0	18,682	466,612
Derivative, Loss on Derivative			601,627
Allowance for Sales Returns [Member]
Entity Information [Line Items]
Valuation Allowances and Reserves, Balance	$5,500		$5,500		$27,000
Derivative Financial Instruments, Liabilities [Member]
Entity Information [Line Items]
Fair Value Assumptions, Expected Dividend Payments			$0
Fair Value Assumptions, Risk Free Interest Rate			2.00%
Fair Value Assumptions, Expected Term			321 days
Fair Value Assumptions, Expected Volatility Rate			727.00%

Note_2_Earnings_Per_Share_Anti

Note 2 - Earnings Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details)	6 Months Ended	12 Months Ended
	Feb. 28, 2015	Aug. 31, 2014
Warrants (in shares)	79,747,623	61,546,265
Convertible Debt Securities [Member]
Warrants (in shares)	58,568,438	40,564,550
Equity Option [Member]
Warrants (in shares)	3,495,163	3,025,000
Warrant [Member]
Warrants (in shares)	17,684,022	17,956,715

Note_3_Inventory_Details_Textu

Note 3 - Inventory (Details Textual) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Inventory [Line Items]
Inventory, Noncurrent	$513,084	$565,146
Noncurrent [Member] | Device Components [Member]
Inventory [Line Items]
Inventory, Noncurrent	$954,837

Note_3_Inventory_Components_of

Note 3 - Inventory - Components of Inventory (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Inventories, current	$749,805	$793,332
Inventory, Noncurrent	513,084	565,146
Current [Member]
Inventory valuation reserve	-558,441	-643,225
Current [Member] | Device Components [Member]
Device Components	515,423	419,681
Current [Member] | Finished Goods [Member]
Finished goods	792,823	1,016,876
Noncurrent [Member]
Inventory valuation reserve	-441,753	-486,576
Noncurrent [Member] | Device Components [Member]
Device Components	$954,837	$1,051,722

Note_4_Related_Party_Transacti1

Note 4 - Related Party Transactions (Details Textual) (USD $)	6 Months Ended		3 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2015	Aug. 31, 2014
Related Party Transaction [Line Items]
Proceeds from Related Party Debt	$650,000	$1,100,000
Repayments of Related Party Debt	2,500
Due to Related Parties, Current	111,038		111,038	106,872
Accounts Payable, Related Parties	696,883		696,883	471,979
Chief Development Officer [Member]
Related Party Transaction [Line Items]
Proceeds from Related Party Debt	0	151,000
Repayments of Related Party Debt	0	154,824
Due to Related Parties, Current	105,000		105,000
Chief Development Officer [Member] | Accrued Interest [Member]
Related Party Transaction [Line Items]
Due to Related Parties, Current	6,038		6,038
SkyBell Technologies Inc [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$65,162		$15,355

Note_5_Debt_Details_Textual

Note 5 - Debt (Details Textual) (USD $)	Nov. 28, 2014	Nov. 21, 2014	Sep. 05, 2014	Feb. 03, 2015	Jan. 07, 2015	Dec. 03, 2014	Nov. 26, 2014	Oct. 14, 2014	Sep. 11, 2014	Feb. 27, 2015
	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
Convertible Notes Payable				50,000	50,000	84,000	216,000	100,000	150,000
Debt Instrument, Interest Rate, Stated Percentage				10.00%	10.00%	10.00%	10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price				$0.10	$0.10	$0.10	$0.10	$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price				50.00%	50.00%	50.00%	50.00%	50.00%	50.00%
In Connection With Conversion of Notes Payable [Member] | Board Member [Member]
Debt Instrument [Line Items]
Debt Instrument, Convertible, Conversion Price										$0.20
Debt Instrument Convertible Conversion Price Percentage of Stock Price										50.00%
Debt Instrument, Face Amount										1,400,000
In Connection with Note Payable Extension [Member]
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
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 $)	Feb. 28, 2015
Convertible Note Payable [Member]
28-Feb-16	$8,066,939
February 29, 2017	1,026,500
Total	$9,093,439

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	Feb. 28, 2015
	Rate	Rate	Rate	Rate	Rate
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		10.00%	10.00%	10.00%
Loan Agreement [Member]
Line of Credit Facility [Line Items]
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					625,000
Interest Payable					7,508
Line of Credit, Current					507,508
Long-term Line of Credit, Noncurrent					125,000
Loan Agreement [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.50%
Loan Agreement [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Loan Agreement [Member] | Guarantee Fee [Member]
Line of Credit Facility [Line Items]
Accounts Payable and Other Accrued Liabilities					528,000
Settlement Agreement [Member]
Line of Credit Facility [Line Items]
Interest Payable					0
Notes Payable					$648,412

Note_7_Equity_Details_Textual

Note 7 - Equity (Details Textual) (USD $)	6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Class of Stock [Line Items]
Stock Issued During Period, Value, Issued for Services	$134,472	$312,500
Advisory Services [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Issued for Services	3,950,000
Stock Issued During Period, Value, Issued for Services	40,943
Conversion of Debt [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	30,750,903
Stock Issued During Period, Value, New Issues	262,800
In Connection with Note Payable Extension [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	1,359,254
Stock Issued During Period, Value, New Issues	81,555
Six Months of Service [Member]
Class of Stock [Line Items]
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 $)	6 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Income Tax Contingency [Line Items]
Income Tax Examination, Penalties and Interest Accrued	$0
Income Tax Expense (Benefit)	0	800
Operating Loss Carryforwards	$54,353,953
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2012
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Income Tax Contingency [Line Items]
Open Tax Year	2012

Note_8_Provision_for_Income_Ta3

Note 8 - Provision for Income Taxes - Components of Deferred Tax Assets (Details) (USD $)	Feb. 28, 2015	Aug. 31, 2014
Net operating loss carry forward and deductible temporary differences	$21,649,179	$20,880,437
Valuation allowance	-21,649,179	-20,880,437
Net deferred tax asset	$0	$0

Note_9_Subsequent_Events_Detai

Note 9 - Subsequent Events (Details Textual) (USD $)	Nov. 28, 2014	Nov. 21, 2014	Sep. 05, 2014	Feb. 03, 2015	Jan. 07, 2015	Dec. 03, 2014	Nov. 26, 2014	Oct. 14, 2014	Sep. 11, 2014	Apr. 06, 2015	Mar. 09, 2015
	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate	Rate
Subsequent Event [Line Items]
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 Event [Line Items]
Convertible Notes Payable				50,000	50,000	84,000	216,000	100,000	150,000
Debt Instrument, Interest Rate, Stated Percentage				10.00%	10.00%	10.00%	10.00%	10.00%	10.00%
Debt Instrument, Convertible, Conversion Price				$0.10	$0.10	$0.10	$0.10	$0.10	$0.10
Debt Instrument Convertible Conversion Price Percentage of Stock Price				50.00%	50.00%	50.00%	50.00%	50.00%	50.00%
Subsequent Event [Member] | Board Member [Member]
Subsequent Event [Line Items]
Convertible Notes Payable										$50,000	$300,000
Debt Instrument, Interest Rate, Stated Percentage										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%