----

----

----

----

| Q | ANNUAL      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------|

| Nevada                        |   | 20-4854758                                |
|-------------------------------|--------|-------------------------------------------|
| (State      of incorporation) |   | (I.R.S.      Employer Identification No.) |

----

| Securities      registered under Section 12(b) of the Act:     |
|----------------------------------------------------------------|
|  Title of each class      registered:                     |  Name of each exchange      on which registered: |
| None                                                           | None  |
|                                                           |   |
| Securities registered      under Section 12(g) of the Act:None |

----

----

|                                                                                 |   |                     |       |   |                 |   |       | Inception          |   |
|--------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|----------------------|--------|------------|--------------------|--------|
|                                                                                 |   | For      the years ended |       |   | (Sept      16, 2005) |   |
|                                                                                 |   | August      31,          |       |   | August      31,      |   |       | to      August 31, |   |
|                                                                                 |   | 2008                     |       |   | 2007                 |   |       | 2008               |   |
| Cash      Flows from Operating Activities                                            |   |                     |       |   |                 |   |       |               |   |
| Net      loss                                                                        |   | $                        | (7,734,502 | )      |                 | $      | (1,505,747 | )                  |   | $ | (10,023,845 | ) |
| Adjustment      to reconcile net loss to net cash used in operating      activities: |   |                     |       |   |                 |   |       |               |   |
| Depreciation      and amortization                                                   |   |                     | 14,107     |   |                 |   | 1,951      |               |   |   | 16,208 |   |
| Common      stock issued for services                                                |   |                     | 1,635,544  |   |                 |   | -          |               |   |   | 1,890,544 |   |
| Warrants      issued for services                                                    |   |                     | 2,379,718  |   |                 |   | -          |               |   |   | 2,379,718 |   |
| Recapitalization      adjustment                                                     |   |                     | 419        |   |                 |   | -          |               |   |   | 419 |   |
| Changes      in operating assets and liabilities:                                    |   |                     |       |   |                 |   |       |               |   |   |   |   |
| (Increase)      decrease in accounts receivable                                      |   |                     | -          |   |                 |   | -          |               |   |   | - |   |
| (Increase)      decrease in prepaid expenses                                         |   |                     | (33,090    | )      |                 |   | (53,526    | )                  |   |   | (86,616 | ) |
| (Increase)      decrease in other receivables                                        |   |                     | -          |   |                 |   | -          |               |   |   | - |   |
| (Increase)      decrease in debt issuance costs                                      |   |                     | 446,776    |   |                 |   | (446,776   | )                  |   |   | - |   |
| (Increase)      decrease in deposits                                                 |   |                     | (13,398    | )      |                 |   | -          |               |   |   | (20,458 | ) |
| Increase      (decrease) in accounts payable and accrued expenses                    |   |                     | (45,178    | )      |                 |   | 664,731    |               |   |   | 634,822 |   |
| Increase      (decrease) in accrued officer compensation                             |   |                     | 84,923     |   |                 |   | 149,550    |               |   |   | 538,898 |   |
| Increase      (decrease) in accrued interest                                         |   |                     | (58,206    | )      |                 |   | 125,270    |               |   |   | 120,599 |   |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Net      cash used in operating activities                                           |   |                     | (3,322,887 | )      |                 |   | (1,064,547 | )                  |   |   | (4,549,711 | ) |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Cash      Flows from Investing Activities                                            |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Purchase      of property and equipment                                              |   |                     | (685,986   | )      |                 |   | (371,867   | )                  |   |   | (1,059,653 | ) |
| Additions      to patents and trademarks                                             |   |                     | (126,847   | )      |                 |   | (79,357    | )                  |   |   | (221,144 | ) |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Net      cash used in investing activities                                           |   |                     | (812,833   | )      |                 |   | (451,224   | )                  |   |   | (1,280,797 | ) |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Cash      Flows from Financing Activities                                            |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Proceeds      from issuance of common stock, net of offering costs                   |   |                     | -          |   |                 |   | 404,168    |               |   |   | 404,168 |   |
| Proceeds      from common stock be to issued                                         |   |                     | -          |   |                 |   | -          |               |   |   | 142,000 |   |
| (Repayments)      / advances from officer                                            |   |                     | 134,389    |   |                 |   | 5,935      |               |   |   | 159,409 |   |
| Proceeds      from convertible notes payable                                         |   |                     | 350,000    |   |                 |   | 4,892,000  |               |   |   | 5,242,000 |   |
| Proceeds      from notes payable, related party                                      |   |                     | -          |   |                 |   | -          |               |   |   | 50,000 |   |
| Repayment      on notes payable, related party                                       |   |                     | -          |   |                 |   | (118,000   | )                  |   |   | (146,500 | ) |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Net      cash provided by financing activities                                       |   |                     | 484,389    |   |                 |   | 5,184,103  |               |   |   | 5,851,077 |   |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                            |   |                     | (3,651,331 | )      |                 |   | 3,668,332  |               |   |   | 20,569 |   |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                  |   |                     | 3,671,900  |   |                 |   | 3,568      |               |   |   | - |   |
|                                                                                 |   |                     |       |   |                 |   |       |               |   |   |   |   |
| Cash      and cash equivalents, end of period                                        |   | $                        | 20,569     |   |                 | $      | 3,671,900  |               |   | $ | 20,569 |   |

----

|                                                                                                |   |                     |      |   |                 |   |   | Inception          |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|----------------------|--------|--------|--------------------|--------|
|                                                                                                |   | For      the years ended |      |   | (Sept      16, 2005) |   |
|                                                                                                |   | August      31,          |      |   | August      31,      |   |   | to      August 31, |   |
|                                                                                                |   | 2008                     |      |   | 2007                 |   |   | 2008               |   |
| Supplemental      disclosure of cash flow information:                                              |   |                     |      |   |                 |   |   |               |   |
| Income      taxes paid                                                                              |   | $                        | 800       |   |                 | $      | -      |               |   | $ | 1,600 |   |
| Interest      paid                                                                                  |   | $                        | -         |   |                 | $      | -      |               |   | $ | - |   |
|                                                                                                |   |                     |      |   |                 |   |   |               |   |   |   |   |
|                                                                                                |   |                     |      |   |                 |   |   |               |   |   |   |   |
| Supplemental      disclosure of noncash financing and investing activities:                         |   |                     |      |   |                 |   |   |               |   |
|                                                                                                |   |                     |      |   |                 |   |   |               |   |   |   |   |
| Issuance      of shares of common stock for services                                                |   | $                        | 1,635,544 |   |                 | $      | -      |               |   | $ | 1,890,544 |   |
| Issuance      of warrants for services                                                              |   | $                        | 2,379,718 |   |                 | $      | -      |               |   | $ | 2,379,718 |   |
| Acquisition      of patents for note payable                                                        |   | $                        | -         |   |                 | $      | -      |               |   | $ | 900,000 |   |
| Issuance      of common stock for conversion of notes payable                                       |   | $                        | 5,242,000 |   |                 | $      | 15,000 |               |   | $ | 5,512,000 |   |
| Issuance      of common stock for conversion of related party note    payable                       |   | $                        | 803,500   |   |                 | $      | -      |               |   | $ | 803,500 |   |
| Issuance      of common stock for conversion of accrued interest on related party note      payable |   | $                        | 120,599   |   |                 | $      | -      |               |   | $ | 120,599 |   |
| Issuance      of common stock for conversion of accrued officer    compensation                     |   | $                        | 270,495   |   |                 | $      | -      |               |   | $ | 270,495 |   |

----

|                       | LOCATION      BASED TECHNOLOGIES, INC.(Registrant) |                                           |
|----------------------------|----------------------------------------------------|------------------------------------------------|
|                       |                                               |                                           |   |
| Date:      January 5, 2009 | By:                                                | /s/ David      M. Morse                   |   |
|                       |                                               | David      M. Morse                            |   |
|                       |                                               | Co-      President and Chief Executive Officer |   |

| Date:      January 5, 2009 | By:    | /s/ David      M. Morse |   |
|----------------------------|--------|------------------------------|--------|
|                       |   | David      M. Morse          |   |
|                       |   | Director                     |   |

| Date:      January 5, 2009 | By:    | /s/ Joseph      Scalisi |   |
|----------------------------|--------|------------------------------|--------|
|                       |   | Joseph      Scalisi          |   |
|                       |   | Director                     |   |

| Date:      January 5, 2009 | By:    | /s/ Desiree      Mejia |   |
|----------------------------|--------|-----------------------------|--------|
|                       |   | Desiree      Mejia          |   |
|                       |   | Director                    |   |

| 1. | No      annual report to security holders covering the company’s fiscal year ended      August 31, 2008, has been sent as of the date of this    report. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | No      proxy soliciting material has been sent to the company’s security holders      with respect to the 2009 annual meeting of security    holders. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | If      such report or proxy material is furnished to security holders subsequent      to the filing of this Report on Form 10-KSB, the company will furnish      copies of such material to the Commission at the time it is sent to      security holders. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|