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Organization and Operations
12 Months Ended
Feb. 28, 2026
Organization and Operations [Abstract]  
ORGANIZATION AND OPERATIONS

NOTE 1 – ORGANIZATION AND OPERATIONS

 

Aura Systems, Inc., (“Aura”, “We” or the “Company”) a Delaware corporation, is engaged in the development, commercialization, and sale of products, systems, and components, using its patented and proprietary electromagnetic technology. Aura develops and sells AuraGen® axial flux mobile induction power systems to the industrial, commercial, and defense mobile power generation markets.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern, the Company’s management has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the accompanying financial statements were issued. During the fiscal year ended February 28, 2026, the Company incurred a net loss of $10,933, used cash in operating activities of $3,405, and at February 28, 2026, had a stockholders' deficit of $44,806. In addition, at February 28, 2026, notes payable and related accrued interest with an aggregate balance of $5,246 have reached maturity and are past due. These factors raise substantial doubts about the Company’s ability to continue as a going concern within one year of the date that these financial statements are issued. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Subsequent to February 28, 2026, the Company issued 6,565,842 shares of common stock in exchange for cash proceeds of $788. In addition, aggregate proceeds of $617 were received for 4,148,533 shares of common stock to be issued. The Company’s ability to continue as a going concern depends on its ability to continue implementing its business plan. During the next twelve months, we intend to continue attempting to increase the Company’s sales of our AuraGen®/VIPER products, both domestically and internationally, and to add to our existing management team. In addition, we plan to continue rebuilding the engineering and sales teams and, to the extent appropriate, utilize third-party contractors to support operations. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on its operations in the case of debt financing or cause substantial dilution for its stockholders in the case of equity financing. In the event that the Company is unable to generate profits and obtain financing for its working capital requirements, it may have to curtail its business further or cease business altogether.