Item 9 Labs (INLB) 10-Q 14 Feb 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2013	Feb. 10, 2014
Document And Entity Information	'	'
Entity Registrant Name	'AIRWARE LABS CORP.	'
Entity Central Index Key	'0001500123	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--09-30	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	33,437,462
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Dec. 31, 2013	Sep. 30, 2013
ASSETS	'	'
Cash and cash equivalents	$96,667	$19,942
Accounts receivable	29,283	35,019
Inventory	54,644	51,423
Deposits	39,360	'
Prepaid expenses	8,211	10,690
Total current assets	228,165	117,074
Other Assets:	'	'
Property and equipmnet, net	24,947	31,619
Intangible assets, net	282,475	291,072
Deposits	2,400	2,400
Investment in Breathe Active, LLC	290	290
Total Assets	538,277	442,455
LIABILITIES AND STOCKHOLDERS' (DEFICIT)	'	'
Accounts payable	1,891,480	1,868,205
Accrued interest - related parties	19,105	12,793
Accrued interest	6,384	6,441
Accrued expenses	70,777	18,554
Notes payable	6,870	18,178
Convertible notes payable - current portion	44,565	32,773
Convertible notes payable to related parties - current portion, net of discount	25,000	25,000
Total current liabilities	2,064,181	1,981,944
Accrued interest to related parties	10	1,267
Notes payable to former officer	47,500	47,520
Convertible notes payable, less current portion	10,435	22,227
Convertible notes payable to related parties, less current portion, net of discount	361,589	228,782
Warrant liablility	1,805,966	1,098,566
Total liabilities	4,289,681	3,380,306
Stockholders' (Deficit):	'	'
Common stock, par value $.0001 per share, 200,000,000 and 200,000,000 shares authorized; 32,952,452 and 38,129,100 shares issued and outstanding at December 31, 2013 and September 30, 2013, respectively	3,295	3,813
Additional paid-in capital	12,427,232	12,071,023
Accumulated (deficit)	-16,181,931	-15,012,687
Total stockholders' (deficit)	-3,751,404	-2,937,851
Total Liabilities and Stockholders' (Deficit)	$538,277	$442,455

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Statement of Financial Position [Abstract]	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized	200,000,000	200,000,000
Common stock, issued	32,952,452	38,129,100
Common stock, outstanding	32,952,452	38,129,100

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]	'	'
Revenues, net	$10,706	$79,198
Cost of products sold	4,545	47,529
Gross profit	6,161	31,669
Operating expenses	'	'
General and administrative	266,785	281,231
Sales and marketing	14,694	43,956
Total expenses	281,479	325,187
(Loss) from operations	-275,318	-293,518
Other income (expense)	'	'
Interest income	289	'
Forgiveness of debt	20	'
Induced note conversion expense	'	-9,300
Interest expense	-186,835	-81,813
Valuation (loss) - common stock warrants	-707,400	'
Total other income (expense)	-893,926	-91,113
(Loss) before income taxes	-1,169,244	-384,631
Income tax expense	'	'
Net (loss)	($1,169,244)	($384,631)
Basic and diluted net (loss) per common share	($0.03)	($0.01)
Basic and diluted weighted average common shares outstanding	37,647,160	30,547,439

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating Activities:	'	'
Net (loss)	($1,169,244)	($384,631)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:	'	'
Depreciation and amortization	15,269	13,662
Common stock issued obligated for services	'	'
Options and warrants issued for services	15,905	'
Interest expense from amortization of debt discount	132,807	8,743
Induced conversion expense	'	9,300
Stock issued for interest expense	42,048	45,369
Forgiveness of debt	-20	'
Valuation (gain) expense - common stock warrants	707,400	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	5,736	559,871
Inventory	-3,221	-31,900
Prepaid expenses	2,479	49,011
Deposits	-39,360	-5,000
Accounts payable	23,275	-38,652
Accrued interest	4,998	-25,385
Accrued expenses	52,223	-37,256
Net Cash (Used in) Operating Activities	-209,705	163,132
Investing Activities:	'	'
Purchases of property and equipment	'	-35,534
Net Cash (Used In) Investing Activities	'	-35,534
Financing Activities:	'	'
Stock issued for cash	'	20,000
Proceeds from convertible notes payable	902,000	485,000
Repayment of convertible notes payable	'	-400,000
Repayment of notes payable	-11,308	'
Options re-purchased	-2,500	'
Stock re-purchased	-601,762	'
Proceeds from factored accounts receivable	'	265,939
Repayment of factored accounts receivable note	'	-451,079
Net Cash Provided by Financing Activities	286,430	-80,140
Net (Decrease) Increase in Cash	76,725	47,458
Cash - Beginning of Year	19,942	1,400
Cash - End of Year	96,667	48,858
Interest paid in cash	692	46,986
Non-cash investing and financing activities:	'	'
Stock issued for convertible notes	'	10,000
Debt discount on note payable, related party	'	1,500
Warrants issued to related party for convertible note modification	'	$100

Summary_Significant_Accounting

Summary Significant Accounting Policies and Use of Estimates	3 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Summary Significant Accounting Policies and Use of Estimates	'
	1. Summary of Significant Accounting Policies and Use of Estimates
	Basis of Presentation and Organization
	Airware Labs Corp. (“Airware Labs” or the “Company”), formerly Crown Dynamics Corp., is a Delaware corporation. The Company was incorporated under the laws of the State of Delaware on June 15, 2010. On October 26, 2012, the Articles of Incorporation were amended to reflect a name change to Airware Labs Corp. On November 13, 2012, the Board approved a change in fiscal year end from December 31 to September 30.
	On March 20, 2012, through an equity exchange agreement, the Company acquired all of the issued and outstanding stock of Airware Holdings, Inc., a Nevada corporation (“Airware”), in exchange for shares of the Company’s newly-issued common stock. Airware Holdings, Inc. was formed in February 2010 and is a non-prescription medical products company. The principal business purpose of the Company is to develop, manufacture and distribute nasal breathing devices. The Company targets prospective customers such as compassionate sleeping partners, individuals with allergies and athletic enthusiasts throughout the United States, Canada and Europe.
	The share exchange has been accounted for as a recapitalization reverse merger between Airware Holdings, Inc. and Airware Labs Corp. Airware Holdings, Inc. is the accounting acquirer and Airware Labs Corp. is the accounting acquiree. Consequently, the historical pre-merger financial statements of Airware Holdings, Inc. are now those of the Company. The par value of the stock of Airware Holdings, Inc. of $.001 per share has been adjusted to that of the Company of $.0001 per share with the par value difference charged to paid-in capital. The pre-merger deficit is that of Airware Holdings, Inc. Airware Labs Corp’s pre-merger accumulated deficit has been charged to paid-in capital. The pre-merger Airware Holdings, Inc. outstanding shares have been adjusted to reflect the exchange. The pre-merger outstanding shares of Airware Labs Corp. were included in the issued and outstanding shares of the Company at the date of the merger.
	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. Inter-company balances and transactions have been eliminated upon consolidation.
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates of the Company include accounting for depreciation and amortization, recoverability of intangible assets, deferred income taxes, accruals and contingencies, the imputed interest rate of the note payable to related party and the fair value of common stock, and the estimated fair value of stock options and warrants.
	Unaudited Interim Financial Statements
	The interim consolidated financial statements of the Company as of December 31, 2013 and 2012, and for the periods then ended, are unaudited. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s financial position as of December 31, 2013 and 2012 and the results of its operations and its cash flows for the periods then ended. These results are not necessarily indicative of the results expected for the fiscal year ended September 30, 2014. The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States (U.S. “GAAP”).
	Net Loss per Share
	Basic earnings per share does not include dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Dilutive securities are not included in the weighted average number of shares when inclusion would be anti-dilutive. Due to the net losses for the periods ended December 31, 2013 and 2012, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.
	As of December 31, 2013, there were total shares of 51,563,308 issuable upon conversion of notes payable, exercise of warrants and options that were not included in the earnings per share calculation as they were anti-dilutive.

Going_Concern

Going Concern	3 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Going Concern	'
	2. Going Concern
	The Company has incurred losses since inception and requires additional funds for future operating activities. The Company’s selling activity has not yet reached a level of revenue sufficient to fund its operating activities. These factors create an uncertainty as to how the Company will fund its operations and maintain sufficient cash flow to operate as a going concern.
	In response to these financial difficulties, management is continuing to pursue financing from various sources, including private placements from investors and institutions. Management believes these efforts will contribute toward funding the Company’s activities until sufficient revenue can be earned from future operations. In addition, the Company is seeking additional distribution partners in both domestic and foreign markets. Management believes these combined efforts, if successful, will be sufficient to meet its working capital needs and its currently anticipated expenditure levels for the next year.
	The Company’s ability to meet its cash requirements in the next year is dependent upon obtaining this financing and achieving improved sales levels. If this is not achieved, the Company may be unable to obtain sufficient cash flow to fund its operations and obligations, and therefore, may be unable to continue as a going concern. The accompanying financial statements have been prepared on a going concern basis, and accordingly, do not include any adjustments relating to the recoverability and classification of recorded asset amounts; nor do they include adjustments to the amounts and classification of liabilities that might be necessary should the Company be unable to continue operations or be required to sell its assets.

Convertible_Notes_Payable

Convertible Notes Payable	3 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Convertible Notes Payable	'
	3. Convertible Notes Payable
	Convertible notes payable consist of the following:
	8.00% notes payable, due August 22, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured	$	5,000
	6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured. Terms amended in March 2013 to interest at 4.25%, with $4,000 monthly payments of principal and interest		50,000
			55,000
	Less current portion		(44,565	)
		$	10,435

Notes_Payable_to_Former_Office

Notes Payable to Former Officer	3 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Notes Payable to Former Officer	'
	4. Notes Payable to Former Officer
	Notes payable to former officer consists of the following:
	0.27% note payable, due August 1, 2016, interest due at maturity, unsecured	$	47,500
	On December 5, 2013, the Company entered into a revised promissory note with former officer David Dolezal calling for four equal payments to begin on November 1, 2015 and ending August 1, 2016. Interest was reduced from 2.0% to 0.27%.

Convertible_Notes_Payable_to_R

Convertible Notes Payable to Related Parties	3 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Convertible Notes Payable to Related Parties	'
	5. Convertible Notes Payable to Related Parties
	Convertible notes payable to related parties consist of the following:
	12% note payable net of unamortized debt discount of $1,846,411, due September 30, 2015, convertible to common stock at $.10 per share, interest payments are due monthly.  Debt is secured by substantially all of the assets of the Company	$	361,589
			5,000
	8.00 % note payable due February 28, 2014, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured
			20,000
	8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured
			386,589
	Less current portion		(25,000	)
		$	361,589
	On August 21, 2013, the Company entered into a ninth allonge to a convertible secured bridge note with Stockbridge Enterprises, L.P. (“Stockbridge”) which provided for up to $3,206,000 principal and a maturity date of September 30, 2015. As of December 31, 2013, the Company has borrowed $1,002,000 against this additional $2,000,000 line.

Warrant_Liability

Warrant Liability	3 Months Ended
	Dec. 31, 2013
Guarantees [Abstract]	'
Warrant Liability	'
	6. Warrant Liability
	The warrant liability as of December 31, 2013 was revalued at fair value by utilizing the quoted market price for our common stock less a 25% discount due to the restricted status of the stocks associated with the warrants. These inputs of (i) publicly traded market price less discount for restrictions and (ii) Black-Scholes option valuation model provided a reasonable basis for valuation for the warrants as of December 31, 2013. Based on that valuation using the $0.15 discounted market price (closing market price of $0.20 less 25% discount) and assumptions used in the Black-Scholes option valuation model of: exercise price of $0.10, volatility of 32.04%, risk free interest rate of 1.75%, expected term of 4.65 years, and expected dividend yield of 0%, the warrants had a net number value of $1,805,966.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	7. Related Party Transactions
	As detailed in Notes Payable to Former Officer Footnote 4, the Company has a note payable to its former President and Executive Chairman, David Dolezal.
	On December 5, 2013, the Company entered into a share re-purchase agreement with former officer Mr. David Dolezal to buy back 7,567,622 shares of common stock held by Mr. Dolezal and entities under his control.  Other outside investors were granted the opportunity to participate in this purchase, with 1,550,000 shares being purchased directly from Mr. Dolezal by others, and 6,017,622 being re-purchased by the Company.  Upon completion of this transaction on December 17, 2013, Mr. Dolezal no longer has any ownership in the Company.
	As discussed in Convertible Notes Payable to Related Parties Footnote 5, the Company has a convertible secured bridge note with Stockbridge. During the three months ended December 31, 2013, the Company borrowed $902,000 against this note.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2013
Commitments and Contingencies	'
Commitments and Contingencies	'
	8. Commitments and Contingencies
	The Company has agreed to indemnify its officers and directors for certain events or occurrences that may arise as a result of the officers or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited.
	The Company enters into indemnification provisions under its agreements with other companies in its ordinary course of business, typically with business partners, customers, landlords, lenders and lessors. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited.
	The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2013.
	On December 22, 2011, the Company entered into a distribution agreement that provides for the issuance of common stock warrants, with an expiration date of 3 years, for the purchase of the Company’s common stock in an amount equal to 15% of the total products purchased by the distributor from the Company at the invoice price against the previous year’s purchases of paid invoices. The warrant price will be equal to the closing price of Airware Labs Corp.’s stock price at the anniversary date of the agreement.
	On December 27, 2011, the Company was named as a defendant in a lawsuit alleging a default on two notes payable totaling $75,000 plus accrued interest. Ultimately, a judgment for $92,001 was entered against the Company as a result of this lawsuit. Per a later settlement agreement, the Company has been making monthly payments of $4,000 against this judgment with interest due on the remaining balance of 4.25% per annum. The notes and accrued interest are reflected in the Company’s Balance Sheets as of December 31, 2013.
	The Company is in default on a convertible note payable totaling $5,000 and a convertible note payable to a related party totaling $20,000. The Company has been in communication with the note holders to request extensions or conversion.
	On July 26, 2012, the Company was named as a Defendant in a lawsuit alleging patent infringement.  The Company believed the claims were without merit.  After the Company vigorously defended the action, the plaintiff moved to dismiss its own claims, and the Court entered judgment in the Company’s favor.  The Court also denied the Company’s request for reimbursement of its attorneys’ fees; the Company retains the right to appeal that decision.
	On April 8, 2013, the Company entered into an exclusive agency agreement with National United Trading and Investment FZ LLC. This is a performance-based agreement to develop new markets in the United Arab Emirates and other Middle Eastern markets of relevance.
	On July 16, 2013, the Company entered into a Severance Agreement with Jeffrey Rassas, the Company’s Chief Executive Officer pursuant to which Mr. Rassas will be entitled to the following severance benefits: (i) the Company shall pay to Mr. Rassas his base salary for a period of 12 months following termination without cause; (ii) Mr. Rassas shall be paid any earned and unpaid bonus due; and, (iii) and all unvested stock-based compensation held by Mr. Rassas shall vest as of the date of termination.
	On November 5, 2013, the Company entered into an agreement with Ramirez Advisors Inter-National, LLC to serve as an advisor to the Company as it pertains to the possible manufacturing of various Company products in Mexico as well as possible business opportunities for Company products in the Mexican market.  Additionally, Ramirez Advisors Inter-National, LLC will use its best efforts to locate distributors in Mexico City for the Company's filtration product line given the high levels of pollution in this region.
	On December 16, 2013, the Company entered into a 90 day consulting agreement with Mr. Chase Herschman.  Mr. Herschman has been engaged to assist with the Marketing efforts of the Company.  Mr. Herschman will develop and market virally several video segments demonstrating how to properly use the Company's AIR Product line as well as benefits and science supporting efficacy.  It is anticipated that Mr. Herschman will accept a position as Marketing Director once the 90 day period has expired provided both parties agree that the terms and the goals set for the 90 day period were achieved.
	The Company sells the majority of its products through major distributors. The Company warrants to the distributors that the product will be free from defects in material and workmanship. The Company has determined its product warranty to be immaterial at December 31, 2013. The likelihood that the Company’s estimate of the accrued product warranty claims will materially change in the near term is considered remote.

Stockholders_Deficit

Stockholders Deficit	3 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
Stockholders Deficit	'
	9. Stockholders’ Deficit
	Common Stock
	During the three months ended December 31, 2013, the Company issued 840,974 shares of stock in payment of interest on the Stockbridge convertible note.
	As further detailed in Related Party Transactions Footnote 7, on December 5, 2013, the Company entered into a share re-purchase agreement with former officer Mr. David Dolezal and re-purchased 6,017,622 shares of common stock held by Mr. Dolezal and entities under his control.
	Warrants
	The balance of warrants outstanding for purchase of the Company’s common stock as of December 31, 2013 is as follows:
		Common Shares	Exercise Price of Warrants	Date Issued	Expiration
		Issuable Upon			Date
		Exercise of Warrants
		250,000	$1.00	4/26/11	4/25/14
	Issued under a private placement memorandum
		50,000	$1.00	4/27/11	4/26/14
	Issued under a private placement memorandum
		25,000	$1.00	4/28/11	4/27/14
	Issued under a private placement memorandum
		200,000	$1.00	5/3/11	5/2/14
	Issued under a private placement memorandum
		20,000	$0.25	3/8/12	3/7/17
	Issued for financing expense
		40,000	$0.50	4/30/12	4/29/15
	Issued under a consultant settlement agreement
		5,000,000	$0.10	12/20/12	12/19/17
	Issued as part of convertible agreement
		125,464	$0.75	12/22/12	12/21/15
	Issued per distribution agreement
		600,000	$0.10	1/18/13	1/17/18
	Issued as part of convertible agreement
		600,000	$0.10	2/22/13	2/21/18
	Issued as part of convertible agreement
		140,000	$0.40	6/25/13	6/25/15
	Issued under a private placement memorandum
		120,000	$0.40	6/26/13	6/26/15
	Issued under a private placement memorandum
		20,000,000	$0.10	8/22/13	8/22/18
	Stockbridge issued as part of convertible agreement
		27,170,464
	Balance of Warrants at December 31, 2013
	Stock Options
	The Company had the following options outstanding at December 31, 2013:
		Common Shares	Exercise Price of Options	Date Issued	Expiration
		Issuable Upon			Date
		Exercise of Options
		775,000	$0.50	4/20/11	4/19/21
	Options granted to former officer & two former senior advisory board members
		700,000	$0.50	7/19/11	7/18/16
	Options granted to former employee and three consultants
		52,844	$0.25	4/30/12	4/29/22
	Options granted under a consultant agreement settlement
		150,000	$0.30	1/25/13	1/24/23
	Options granted to Board member
		1,550,000	$0.30	1/25/13	1/24/23
	Options granted to employee and two consultants
		250,000	$0.26	5/20/13	5/19/16
	Options granted to medical advisory board member
		250	$0.28	9/5/13	9/4/16
	Options granted to consultant
		500,000	$0.25	9/28/13	12/31/14
	Options issued for investment in Breathe Active, LLC
		500,000	$0.50	9/28/13	12/31/14
	Options issued for investment in Breathe Active, LLC
		-200,000
	Options re-purchased by Company (1)
		150,000	$0.11	10/4/13	10/3/23
Options granted to Board member (2)
	433,333	$0.11	10/4/13	10/3/23
Options granted to Officers (3)
	5,111,177
Balance of Options at December 31, 2013
(1) On December 5, 2013, per an Agreement and Mutual Release of Claims with a former consultant, the Company paid $2,500 in return for the relinquishment of the consultant’s stock options.
(2) On October 4, 2013, the Company granted stock options to a Board member. These options are immediately vested, have an exercise price of $.11 and have a term of 10 years.
(3) On October 4, 2013, the Company granted stock options to two officers. These options have an exercise price of $.11 and a term of 10 years. The options vest evenly over the next three years on the anniversary of the grant date, unless there is a change in corporate control, then the options vest immediately.

Subsequent_Events

Subsequent Events	3 Months Ended
	Dec. 31, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	10. Subsequent Events
	On January 28, 2014, the Company entered into an agreement (the “Acorn Agreement”) with Acorn Management Partners, LLC (“Acorn”) to perform certain financial advisory, business development and professional relations services (the “Acorn Services”). Under the terms of the Acorn Agreement and in exchange for the performance of the Acorn Services by Acorn, the Company shall pay to Acorn an aggregate of $115,000 USD in cash plus a variable number of shares of the restricted common stock of the Company. The Acorn Agreement shall expire on January 27, 2015, unless terminated earlier in accordance with its terms.
	Subsequent to December 31, 2013, the Company borrowed an additional $100,000 against the convertible secured note with Stockbridge to fund marketing efforts. The total currently drawn on the note is $2,308,000.
	On February 5, 2014, Stockbridge exercised 26,200,000 warrants to purchase stock.  They elected to use the cashless exercise formula, which will result in the issuance of 22,457,143 shares of common stock of the Company.

Summary_Significant_Accounting1

Summary Significant Accounting Policies and Use of Estimates (Policies)	3 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Basis of Presentation and Organization	'
	Basis of Presentation and Organization
	Airware Labs Corp. (“Airware Labs” or the “Company”), formerly Crown Dynamics Corp., is a Delaware corporation. The Company was incorporated under the laws of the State of Delaware on June 15, 2010. On October 26, 2012, the Articles of Incorporation were amended to reflect a name change to Airware Labs Corp. On November 13, 2012, the Board approved a change in fiscal year end from December 31 to September 30.
	On March 20, 2012, through an equity exchange agreement, the Company acquired all of the issued and outstanding stock of Airware Holdings, Inc., a Nevada corporation (“Airware”), in exchange for shares of the Company’s newly-issued common stock. Airware Holdings, Inc. was formed in February 2010 and is a non-prescription medical products company. The principal business purpose of the Company is to develop, manufacture and distribute nasal breathing devices. The Company targets prospective customers such as compassionate sleeping partners, individuals with allergies and athletic enthusiasts throughout the United States, Canada and Europe.
	The share exchange has been accounted for as a recapitalization reverse merger between Airware Holdings, Inc. and Airware Labs Corp. Airware Holdings, Inc. is the accounting acquirer and Airware Labs Corp. is the accounting acquiree. Consequently, the historical pre-merger financial statements of Airware Holdings, Inc. are now those of the Company. The par value of the stock of Airware Holdings, Inc. of $.001 per share has been adjusted to that of the Company of $.0001 per share with the par value difference charged to paid-in capital. The pre-merger deficit is that of Airware Holdings, Inc. Airware Labs Corp’s pre-merger accumulated deficit has been charged to paid-in capital. The pre-merger Airware Holdings, Inc. outstanding shares have been adjusted to reflect the exchange. The pre-merger outstanding shares of Airware Labs Corp. were included in the issued and outstanding shares of the Company at the date of the merger.
	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. Inter-company balances and transactions have been eliminated upon consolidation.
Accounting Estimates	'
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Significant estimates of the Company include accounting for depreciation and amortization, recoverability of intangible assets, deferred income taxes, accruals and contingencies, the imputed interest rate of the note payable to related party and the fair value of common stock, and the estimated fair value of stock options and warrants.
Unaudited Interim Financial Statements	'
	Unaudited Interim Financial Statements
	The interim consolidated financial statements of the Company as of December 31, 2013 and 2012, and for the periods then ended, are unaudited. However, in the opinion of management, the interim financial statements include all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the Company’s financial position as of December 31, 2013 and 2012 and the results of its operations and its cash flows for the periods then ended. These results are not necessarily indicative of the results expected for the fiscal year ended September 30, 2014. The accompanying financial statements and notes thereto do not reflect all disclosures required under accounting principles generally accepted in the United States (U.S. “GAAP”).
Net Loss per Share	'
	Net Loss per Share
	Basic earnings per share does not include dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. Dilutive securities are not included in the weighted average number of shares when inclusion would be anti-dilutive. Due to the net losses for the periods ended December 31, 2013 and 2012, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive.
	As of December 31, 2013, there were total shares of 51,563,308 issuable upon conversion of notes payable, exercise of warrants and options that were not included in the earnings per share calculation as they were anti-dilutive.

Convertible_Notes_Payable_Tabl

Convertible Notes Payable (Tables)	3 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Convertible notes payable	'
	8.00% notes payable, due August 22, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured	$	5,000
	6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured. Terms amended in March 2013 to interest at 4.25%, with $4,000 monthly payments of principal and interest		50,000
			55,000
	Less current portion		(44,565	)
		$	10,435

Notes_Payable_to_Former_Office1

Notes Payable to Former Officer (Tables)	3 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Notes payable to former officer	'
	0.27% note payable, due August 1, 2016, interest due at maturity, unsecured	$	47,500

Convertible_Notes_Payable_to_R1

Convertible Notes Payable to Related Parties (Tables)	3 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Convertible Notes Payable to Related Parties	'
	12% note payable net of unamortized debt discount of $1,846,411, due September 30, 2015, convertible to common stock at $.10 per share, interest payments are due monthly.  Debt is secured by substantially all of the assets of the Company	$	361,589
			5,000
	8.00 % note payable due February 28, 2014, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured
			20,000
	8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured
			386,589
	Less current portion		(25,000	)
		$	361,589

Stockholders_Deficit_Tables

Stockholders Deficit (Tables)	3 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
Balance of warrants outstanding for purchase of Company's common stock	'
		Common Shares	Exercise Price of Warrants	Date Issued	Expiration
		Issuable Upon			Date
		Exercise of Warrants
		250,000	$1.00	4/26/11	4/25/14
	Issued under a private placement memorandum
		50,000	$1.00	4/27/11	4/26/14
	Issued under a private placement memorandum
		25,000	$1.00	4/28/11	4/27/14
	Issued under a private placement memorandum
		200,000	$1.00	5/3/11	5/2/14
	Issued under a private placement memorandum
		20,000	$0.25	3/8/12	3/7/17
	Issued for financing expense
		40,000	$0.50	4/30/12	4/29/15
	Issued under a consultant settlement agreement
		5,000,000	$0.10	12/20/12	12/19/17
	Issued as part of convertible agreement
		125,464	$0.75	12/22/12	12/21/15
	Issued per distribution agreement
		600,000	$0.10	1/18/13	1/17/18
	Issued as part of convertible agreement
		600,000	$0.10	2/22/13	2/21/18
	Issued as part of convertible agreement
		140,000	$0.40	6/25/13	6/25/15
	Issued under a private placement memorandum
		120,000	$0.40	6/26/13	6/26/15
	Issued under a private placement memorandum
		20,000,000	$0.10	8/22/13	8/22/18
	Stockbridge issued as part of convertible agreement
		27,170,464
	Balance of Warrants at December 31, 2013
Balance of options outstanding	'
		Common Shares	Exercise Price of Options	Date Issued	Expiration
		Issuable Upon			Date
		Exercise of Options
		775,000	$0.50	4/20/11	4/19/21
	Options granted to former officer & two former senior advisory board members
		700,000	$0.50	7/19/11	7/18/16
	Options granted to former employee and three consultants
		52,844	$0.25	4/30/12	4/29/22
	Options granted under a consultant agreement settlement
		150,000	$0.30	1/25/13	1/24/23
	Options granted to Board member
		1,550,000	$0.30	1/25/13	1/24/23
	Options granted to employee and two consultants
		250,000	$0.26	5/20/13	5/19/16
	Options granted to medical advisory board member
		250	$0.28	9/5/13	9/4/16
	Options granted to consultant
		500,000	$0.25	9/28/13	12/31/14
	Options issued for investment in Breathe Active, LLC
		500,000	$0.50	9/28/13	12/31/14
	Options issued for investment in Breathe Active, LLC
		-200,000
	Options re-purchased by Company (1)
		150,000	$0.11	10/4/13	10/3/23
	Options granted to Board member (2)
		433,333	$0.11	10/4/13	10/3/23
	Options granted to Officers (3)
		5,111,177
	Balance of Options at December 31, 2013

Summary_Significant_Accounting2

Summary Significant Accounting Policies and Use of Estimates (Details Narrative) (USD $)	Dec. 31, 2013
Accounting Policies [Abstract]	'
Original par value of company stock	$0.00
Modified par value of company stock	$0.00
Total anti-dilutive shares outstanding	51,563,308

Convertible_Notes_Payable_Conv

Convertible Notes Payable - Convertible notes payable (Details) (USD $)	Dec. 31, 2013
Notes to Financial Statements	'
8.00% notes payable, due August 22, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured	$5,000
6.50% note payable, due November 26, 2011, convertible to common stock at $2 per share, interest payments are due annually, unsecured. Terms amended in March 2013 to interest at 4.25%, with $4,000 monthly payments of principal and interest	50,000
Total convertible notes payable	55,000
Less current portion	-44,565
Convertible notes payable - long term	$10,435

Notes_Payable_to_Former_Office2

Notes Payable to Former Officer - Notes payable to former officer (Details) (USD $)	Dec. 31, 2013
Debt Disclosure [Abstract]	'
0.27% note payable, due August 1, 2016, interest due at maturity, unsecured	$47,500

Notes_Payable_to_Former_Office3

Notes Payable to Former Officer (Details Narrative)	Dec. 05, 2013
Debt Disclosure [Abstract]	'
Original promissory note interest rate	2.00%
Revised promissory note interest rate	0.27%

Convertible_Notes_Payable_to_R2

Convertible Notes Payable to Related Parties - Convertible Notes Payable to Related Parties (Details) (USD $)	Dec. 31, 2013
Notes to Financial Statements	'
12% note payable net of unamortized debt discount of $1,846,411, due September 30, 2015, convertible to common stock at $.10 per share, interest payments are due monthly. Debt is secured by substantially all of the assets of the Company	$361,589
8.00 % note payable due February 28, 2014, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured	5,000
8.00 % note payable due August 26, 2012, convertible to common stock at $.50 per share, interest payments are due at maturity, unsecured	20,000
Total convertible notes payable to related parties	386,589
Less current portion	-25,000
Related party convertible notes- long term	$361,589

Convertible_Notes_Payable_to_R3

Convertible Notes Payable to Related Parties (Details Narrative) (USD $)	Dec. 31, 2013	Aug. 21, 2013
Notes to Financial Statements	'	'
Modified note payable amount after additional borrowings	'	$3,206,000
Additional borrowings from Stockbridge Enterprise	2,000,000	'
Amount borrowed against additional line	$1,002,000	'

Warrant_Liability_Details_Narr

Warrant Liability (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2013
Guarantees [Abstract]	'
Discount on fair value measurement of market price	25.00%
Discounted market price used for valuation	$0.15
Option valuation exercise price	$0.10
Option valuation volatility rate	32.04%
Option valuation risk free interest rate	1.75%
Option valuation expected term	'4 years 8 months
Option valuation expected dividend yield	0.00%
Net value of warrants	$1,805,966

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 17, 2013	Dec. 05, 2013
Related Party Transactions [Abstract]	'	'	'
Common stock avaliable under repurchase agreement	'	'	7,567,622
Portion repurchased by outside investors	'	1,550,000	'
Portion repurchased by the Company	'	6,017,622	'
Amount borrowed against Stockbridge note	$902,000	'	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 27, 2011	Dec. 22, 2011
Commitments and Contingencies	'	'	'
Expiration date of stock warrants issued	'	'	'3 years
Amount of notes payable in default	'	$75,000	'
Final judgment as result of lawsuit	'	92,001	'
Monthly payments on lawsuit judgement	'	4,000	'
Annual interest rate on balance of lawsuit judgement	'	4.25%	'
Amount of convertible note payable in default	5,000	'	'
Amount of convertible note payable to related party in default	$20,000	'	'

Stockholders_Deficit_Details_N

Stockholders Deficit (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 05, 2013	Oct. 04, 2013
Equity [Abstract]	'	'	'
Common stock issued for payment of interest on Stockbridge note	840,974	'	'
Payment to consultant for reliquishment of stock options	'	$2,500	'
Exercise price of stock options issued to board member	'	'	$0.11
Term of stock options issued issued to board member	'	'	'10 years
Exercise price of stock options issued to two officers	'	'	$0.11
Term of stock options issued issued to two officers	'	'	'10 years

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative) (USD $)	1 Months Ended
	Feb. 13, 2014	Feb. 05, 2014	Jan. 28, 2014
Subsequent Events [Abstract]	'	'	'
Financial and professional fees to be paid to Acorn Management	'	'	$115,000
Additional borrowing on Stockbridge note subsequent to quarter end	100,000	'	'
Total amount currently drawn on Stockbridge note	$2,308,000	'	'
Warrants exercised by Stockbridge	'	26,200,000	'
Common stock issued to Stockbridge for exercise of warrants	'	22,457,143	'