Aura Systems Reports Significant Revenue Growth, Net Loss in Latest Quarter

Aura Systems Inc. reported significant financial developments in its 10-Q filing for the period ending August 31, 2024. The company, which specializes in Axial Flux Induction technology for electric motors and generators, experienced a notable increase in net revenue, reporting $3,000 for the three months ended August 31, 2024, compared to $0 for the same period in 2023. For the six months, revenue rose to $50,000 from $10,000 year-over-year. This growth is attributed to the manufacture and delivery of its products, including the AuraGen® and VIPER systems.

Despite the revenue increase, Aura reported a net loss of $(6,390,000) for the three months and $(21,648,000) for the six months ended August 31, 2024, compared to $(1,120,000) and $(2,261,000) for the respective periods in 2023. The substantial rise in net loss is primarily due to increased operating expenses, which surged to $2,494,000 for the three months and $3,178,000 for the six months, up from $629,000 and $1,344,000 in the previous year. The increase in expenses is largely attributed to higher headcount, salary increases, and stock-based compensation.

Total current assets as of August 31, 2024, were reported at $147,319,000, a significant increase from $124,000 in cash and cash equivalents. However, total current liabilities rose sharply to $33,350,000 from $15,187,000, contributing to an overall increase in total liabilities to $41,274,000 from $22,984,000 as of February 29, 2024. The accumulated deficit also widened to $(500,638,000) from $(478,990,000) during the same period.

The company is facing challenges regarding its liquidity, with cash and cash equivalents decreasing to $15,000 from $52,000 year-over-year. Aura has indicated a need for an additional $6,000,000 to maintain operations for Fiscal 2025 and is exploring options for further debt or equity financing.

Strategically, Aura is focusing on the development and sale of axial flux motors for industrial and electric vehicle applications. The company plans to enhance its manufacturing capabilities and rebuild its engineering and sales teams. Additionally, it has been involved in ongoing litigation, including a dispute with former CEO Melvin Gagerman regarding an alleged unsecured demand promissory note.

As of August 31, 2024, Aura had 114,420,081 shares outstanding, with a stock price of $0.32, reflecting an increase from $0.15 earlier in the year. The company continues to navigate a challenging financial landscape while pursuing growth opportunities in its core technology areas.