8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 26, 2008 (March 10, 2008)

AURASOUND, INC.

(Exact name of registrant as specified in Charter)

Nevada	000-51543	20-5573204
(State or other jurisdiction of incorporation or organization)	(Commission File No.)	(IRS Employee Identification No.)

11839 East Smith Avenue

Santa Fe Springs, California 90670

(Address of Principal Executive Offices)

(562) 447-1780

(Issuer Telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2 below).

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13(e)-4(c))

Item 1.01Entry Into a Material Definitive Agreement.

The following discussion provides only a brief description of the document described below. The discussion is qualified in its entirety by the full text of the agreement.

On March 3, 2008 we executed a promissory note in the principal amount of $461,080 in favor of InSeat Solutions, Inc. InSeat Solutions, Inc. is controlled by Mr. Arthur Liu, our chief executive officer and a member of our board of directors. Pursuant to the promissory note, simple interest accrues on the unpaid balance of the principal amount at the rate of 8% per year. Both principal and interest are payable on demand. The promissory note will become due and payable in full in the event that any of the following events of default occurs: (i) if we fail to pay the principal amount and all accrued interest within 5 days after payment is due; (ii) if we file, or if we have filed against us, a petition for liquidation, reorganization, arrangement, adjustment of debts, adjudication as a bankrupt, relief as a debtor or other relief under the bankruptcy, insolvency or similar laws, (iii) if we make an assignment for the benefit of creditors, or (iv) if an appointment of a receiver or trustee over us or our assets.

The loan proceeds were transferred to us on March 3, 2008 subject to the condition that they not be used until we received approval from Bank SinoPac, our lender, as required by the terms of the credit facility we executed with Bank SinoPac on June 7, 2007. On March 10, 2008 we received a letter from Bank SinoPac, dated March 5, 2008, approving the loan.

Item 2.03Creation of a Direct Financial Obligation or an Off-Balance Sheet

Arrangement of a Registrant.

See Item 1.01 above.

Item 9.01Financial Statements and Exhibits

Exhibit 10.Promissory Note dated March 3, 2008 in favor of InSeat Solutions, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: March 26, 2008
	AuraSound, Inc.
	By:	/s/ Arthur Liu
		Arthur Liu, Chief Executive Officer

EX-10

Exhibit 10

PROMISSORY NOTE

$461,080	Santa Fe Springs, CA
	March 3, 2008

FOR VALUE RECEIVED, the undersigned AuraSound, Inc., a publicly traded Nevada corporation (“Maker”) located at 11839 East Smith Avenue, Santa Fe Springs, CA 90670, promises to pay InSeat Solutions LLC, a California limited liability company located at 11839 East Smith Avenue, Santa Fe Springs, CA 90670 (“Holder”) or order, on written demand as provided herein, the principal amount of Four Hundred Sixty-One Thousand and Eighty Dollars ($461,080.00) (the “Principal Amount”).

Simple interest shall accrue on the unpaid Principal Amount at the rate of eight (8%) percent per annum (computed on the basis of the 365-day year and the actual number of days lapsed) until the date on which this Promissory Note (“Note”) is paid in full. Interest shall accrue monthly and shall be payable along with the Principal Amount on the fifth business day following the delivery of a written demand notice by Holder to Maker (the “Payment Date”), provided that Holder may from time to time demand repayment of less than the full Principal Amount and interest accrued thereon in such manner.

All payments received by Holder shall be applied first to the payment of accrued interest and then to the unpaid balance of the Principal Amount.

Holder may declare all indebtedness evidenced by this Note to be immediately due and payable upon the happening of any of the following: (1) nonpayment, when due, of all or any portion of the Principal Amount, or interest thereon, if not cured within five (5) business days after the applicable Payment Date; (2) the filing by or against the Maker of a request or petition for liquidation, reorganization, arrangement, adjustment of debts, adjudication as a bankrupt, relief as a debtor or other relief under the bankruptcy, insolvency or similar laws of the United States or any state or territory thereof or any foreign jurisdiction, now or hereafter in effect; (3) the making by the Maker of any general assignment for the benefit of creditors; or (4) the appointment of a receiver or trustee for Maker or for any assets of Maker, including, without limitation, the appointment of or taking possession by a “custodian”, as defined in the Federal Bankruptcy Code.

No modification or waiver of any provision of this Note or any documents or instruments executed simultaneously herewith shall be effective unless it shall be in writing and signed by both Holder and Maker, and any such modification or waiver shall apply only in the specific instance for which given.

The term “Holder” as used herein shall be deemed to include Holder and its successor(s), endorsee(s) and assign(s).

Maker hereby waives presentment, demand for payment, protest, notice of protest and notice of non-payment hereof.

No failure by Holder to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Holder of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies of Holder as herein specified are cumulative and not exclusive of any other rights or remedies which Holder may have at law or in equity.

This Promissory Note shall be governed by the internal laws of the State of California without regard to its principles of conflicts of laws. Maker and Holder agree that the State and Federal Courts, which sit in the State of California, Los Angeles County, shall have exclusive jurisdiction of all controversies and disputes arising hereunder.

FOR MAKER		FOR HOLDER
AuraSound, Inc.		InSeat Solutions LLC
By:	/S/Arthur Liu	By:	/S/ Judie Rothenberger
	Arthur Liu		Judie Rothenberger
	President & CEO		President