Aura Systems Reports No Revenue and Increased Losses for Three and Nine Months Ended November 30, 2024

Aura Systems, Inc. reported its financial results for the three and nine months ended November 30, 2024, revealing a significant decline in revenue and an increase in operating expenses compared to the previous fiscal period. The company generated no revenue during the three months ended November 30, 2024, a decrease from $47,000 in the same period last year. For the nine-month period, revenue was $50,000, down from $57,000 in the prior year. The company attributed this decline to a low level of resources allocated to legacy products and a strategic shift towards developing a new product line, which is expected to be completed in Fiscal 2025.

Operating expenses for the three months ended November 30, 2024, totaled $869,000, an increase from $527,000 in the same quarter of the previous year. This increase was driven by higher engineering, research, and development costs, which rose to $196,000 from $33,000, and selling, general, and administrative expenses, which increased to $673,000 from $494,000. For the nine-month period, total operating expenses surged to $4.05 million, compared to $1.87 million in the prior year, reflecting a 116% increase. The company reported a net loss of $540,000 for the three months and $22.19 million for the nine months, compared to losses of $910,000 and $3.17 million, respectively, in the previous year.

In terms of operational developments, Aura Systems has made strategic hires to bolster its engineering capabilities, bringing in experts in various fields, including thermodynamics and power electronics. The company has also invested in advanced engineering tools to enhance its product development processes. As of November 30, 2024, the company had 114,860,011 shares of common stock outstanding, an increase from 104,591,648 shares as of February 29, 2024. The increase in shares reflects the issuance of 10,268,363 shares for approximately $2.62 million in cash during the nine-month period.

The company continues to face challenges related to its liquidity and going concern status. As of November 30, 2024, Aura reported a shareholder deficit of $39.45 million and past-due notes payable totaling $5.31 million. The company’s independent auditors have raised substantial doubt about its ability to continue as a going concern. To address these issues, Aura plans to seek additional financing and is exploring new suppliers and partnerships to support its operations. The company anticipates needing approximately $6 million to maintain operations and increase shipment volumes in Fiscal 2025.

Looking ahead, Aura Systems aims to complete the development of its new product line and expand its market presence both domestically and internationally. The company is also focused on rebuilding its engineering and sales teams and may utilize third-party contractors to support its operations. However, the ability to execute these plans will depend on securing the necessary funding and achieving commercial targets.