-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ckj1B6FXWjlggK+SSoZlsGRWwqKHx2rz4mi+AELcz1Yfh3/GA2c5t1hKjf5Pn8u4 YgklA98ZAOHBSVuGh74stA== 0000898430-98-000146.txt : 19980119 0000898430-98-000146.hdr.sgml : 19980119 ACCESSION NUMBER: 0000898430-98-000146 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971130 FILED AS OF DATE: 19980116 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AURA SYSTEMS INC CENTRAL INDEX KEY: 0000826253 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] IRS NUMBER: 954106894 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-17249 FILM NUMBER: 98508286 BUSINESS ADDRESS: STREET 1: 2335 ALASKA AVE CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3106435300 MAIL ADDRESS: STREET 1: 2335 ALASKA AVE CITY: EL SEGUNDO STATE: CA ZIP: 90245 10-Q 1 FORM 10-Q FOR THE PERIOD ENDING 11/30/97 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended November 30, 1997 Commission File Number 0-17249 AURA SYSTEMS, INC. (Exact name of Registrant as specified in its charter) DELAWARE 95-4106894 (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 2335 ALASKA AVE. EL SEGUNDO, CALIFORNIA 90245 (Address of principal executive offices) Registrant's telephone number, including area code: (310) 643-5300 Former name, former address and former fiscal year, if changed since last report: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: YES X NO - - Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at January 13, 1998 ----- ------------------------------- Common Stock, par value 79,952,188 Shares $.005 per share ================================================================================ AURA SYSTEMS, INC. AND SUBSIDIARIES INDEX
Page No. PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements Statement Regarding Financial Information 2 Condensed Consolidated Balance Sheets as of November 30, 1997 and February 28, 1997 3 Condensed Consolidated Statement of Operations for the Three Months and Nine Months Ended November 30, 1997 and 1996 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended November 30, 1997 and 1996 5 Notes to Condensed Consolidated Financial Statements 6 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION ITEM 1. Legal Proceedings 11 ITEM 2. Changes in Securities 11 ITEM 6. Exhibits and Reports on Form 8-K 11 SIGNATURES 12
AURA SYSTEMS, INC. AND SUBSIDIARIES QUARTER ENDED NOVEMBER 30, 1997 PART I. FINANCIAL INFORMATION The financial statements included herein have been prepared by Aura Systems, Inc. (the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). As contemplated by the SEC under Rule 10-01 of Regulation S-X, the accompanying financial statements and footnotes have been condensed and therefore do not contain all disclosures required by generally accepted accounting principles. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-K for the year ended February 28, 1997 as filed with the SEC (file number 0-17249). 2 AURA SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
NOVEMBER 30, FEBRUARY 28, ASSETS 1997 1997 -------------- ------------- CURRENT ASSETS Cash and equivalents $ 12,360,905 $ 7,112,354 Receivables-net 58,253,298 53,743,698 Inventories and contract in process 50,083,642 33,847,296 Prepayments and deposits 9,502,978 7,695,268 Other current assets 1,234,609 391,361 ------------ ------------ TOTAL CURRENT ASSETS 131,435,432 102,789,977 ------------ ------------ Property and equipment, at cost 65,111,758 52,867,243 Less accumulated depreciation and amortization (10,856,856) (9,676,454) ------------ ------------ NET PROPERTY AND EQUIPMENT 54,254,902 43,190,789 Joint ventures 9,526,360 10,210,872 Long-Term investments 6,993,472 6,534,498 Long-Term receivables 4,611,546 6,974,242 Patents, net 2,868,959 2,905,870 Goodwill, net 6,238,092 6,540,990 Other assets 8,027,554 3,381,161 ------------ ------------ Total $223,956,317 $182,528,399 ============ ============ LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Notes payable $ 16,314,416 $ 14,859,567 Accounts payable 28,246,096 23,716,251 Accrued expenses 2,422,318 1,903,444 ------------ ------------ TOTAL CURRENT LIABILITIES 46,982,830 40,479,262 Notes payable and other liabilities 3,624,457 4,458,650 Convertible notes secured 2,662,900 3,662,900 Unsecured notes payable 29,000,000 8,450,000 ------------ ------------ TOTAL LIABILITIES 82,270,187 57,050,812 Minority interests 9,435,000 -- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock par value $.005 per share paid in capital. Issued and outstanding 79,760,500 and 76,481,666 shares respectively. 201,395,283 196,039,793 Accumulated deficit (69,144,153) (70,562,206) ------------ ------------ Total stockholders' equity 132,251,130 125,477,587 ------------ ------------ Total $223,956,317 $182,528,399 ============ ============
See accompanying notes to condensed consolidated financial statements. 3 AURA SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED NOVEMBER 30, 1997 AND 1996 (UNAUDITED)
THREE MONTHS NINE MONTHS ------------ ------------ 1997 1996 1997 1996 ---- ----- ----- ---- NET REVENUES $48,215,300 $34,343,027 $108,769,267 $80,322,923 Cost of goods and overhead 38,622,290 25,814,596 82,576,867 59,004,256 ----------- ----------- ------------ ----------- GROSS PROFIT 9,593,010 8,528,431 26,192,400 21,318,667 EXPENSES Selling, general and administrative 14,415,182 5,293,397 26,266,825 13,236,608 Research and development 413,286 2,255,398 2,522,680 5,719,512 ----------- ----------- ------------ ----------- Total costs and expenses 14,828,468 7,548,795 28,789,505 18,956,120 ----------- ----------- ------------ ----------- INCOME (LOSS) FROM OPERATIONS (5,235,458) 979,636 (2,597,105) 2,362,547 OTHER (INCOME) AND EXPENSE Gain on sale and issuance of subsidiary stock and other assets (9,832,688) -- (9,832,688) -- Interest income (53,092) (86,352) (87,498) (235,055) Interest expense 2,189,695 197,742 4,193,119 598,694 ----------- ----------- ------------ ----------- NET INCOME BEFORE TAXES 2,460,627 868,246 3,129,962 1,998,908 Provision for taxes 970,015 -- 970,015 -- ----------- ----------- ------------ ------------ Net income before minority interest in income of consolidated subsidiary 1,490,612 -- 2,159,947 -- Minority interest in income of consolidated subsidiary 741,894 -- 741,894 -- ----------- ----------- ------------ ------------ NET INCOME $ 748,718 $ 868,246 $ 1,418,053 $ 1,998,908 =========== =========== ============ =========== NET INCOME PER SHARE $ .01 $ .01 $ .02 $ .03 =========== =========== ============ =========== WEIGHTED AVERAGE SHARES USED TO COMPUTE NET INCOME PER SHARE 79,749,922 68,698,838 78,728,064 65,818,905 =========== =========== ============ ===========
See accompanying notes to condensed consolidated financial statements. 4 AURA SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED NOVEMBER 30, 1997 AND 1996 (UNAUDITED)
1997 1996 ------- ------- NET CASH (USED) IN OPERATIONS $ (9,879,690) $(29,187,319) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment (12,244,515) (2,866,851) Disposition of property and equipment 200,000 -- Equity Investments -- (1,000,000) Proceeds from sale of minority interest 2,552,100 -- ------------ ------------ NET CASH PROVIDED BY (USED) IN INVESTING ACTIVITIES (9,492,415) (3,866,851) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds (repayment) from short-term borrowing 1,454,849 833,878 Proceeds from issuance of convertible debt 29,000,000 18,850,000 Net proceeds (repayment) of debt (5,834,193) (767,603) Proceeds from exercise of stock options -- 35,000 Proceeds from exercise of warrants -- 600,000 Proceeds from issuance of common stock -- 1,501,500 ------------ ------------ NET CASH PROVIDED BY FINANCING ACTIVITIES: 24,620,656 21,052,775 ------------ ------------ NET INCREASE (DECREASE) IN CASH 5,248,551 (12,001,395) Cash and cash equivalents at beginning of year 7,112,354 21,900,364 ------------ ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 12,360,905 $ 9,898,969 ============ ============ Supplemental disclosures of cash flow information Cash paid during the period for: Interest $ 2,772,939 $ 519,545 Income Tax 9,200 6,400 ============ ============
Supplemental disclosure of noncash investing and financing activities: In the nine months ended November 30, 1997, $5,086,600 of convertible notes payable were converted into common stock. In the nine months ended November 30, 1997, the Company disposed of assets in exchange for a note receivable of $503,385 and cash of $200,000, which is included above. In the nine months ended November 30, 1996 $22,510,000 of convertible notes payable were converted into common stock. In the nine months ended November 30, 1996, the Company issued 640,000 shares of common stock for the acquisition of MYS Corp. See accompanying notes to condensed consolidated financial statements. 5 AURA SYSTEMS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1) MANAGEMENT OPINION The condensed consolidated financial statements include the accounts of Aura Systems, Inc. ("the Company") and subsidiaries from the effective dates of acquisition. All material inter-company balances and inter-company transactions have been eliminated. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments (which include only normal recurring adjustments) and reclassifications for comparability necessary to present fairly the financial position and results of operations as of and for the three and nine months ended November 30, 1997. 2) CAPITAL In the nine months ended November 30, 1997, $5,086,600 of convertible notes were converted into common stock of the Company. In the nine months ended November 30, 1996, options to purchase 10,000 shares of common stock and warrants to purchase 300,000 shares of common stock were exercised resulting in proceeds of $635,000. Additionally the Company received proceeds of $1,501,500 from the sale of 385,000 shares of common stock in the nine months ended November 30, 1996. 3) SIGNIFICANT CUSTOMERS The Company sold sound related products and computer related products to four significant customers during the nine months ended November 30, 1997. Sales of speakers to a single major electronics retailer accounted for approximately $11.1 million in the period ended November 30, 1997 as compared to approximately $14.5 million in the prior year comparable period. Sales of communication and multimedia products to major mass merchandisers Best Buy, Circuit City and Computer City accounted for approximately $39.6 million in the nine months ended November 30, 1997 as compared to approximately $6.7 million in the prior year period. Sales of computer monitors to three unrelated parties in the nine months ended November 30, 1997 totalled approximately $10.8 million as compared to approximately $12.9 million to a single unrelated party in the prior year period. None of the above customers are related or affiliated with the Company or any customers of the Company. The Company has no reason to believe that sales to any of the current years customers will not continue. 4) MINORITY INTERESTS In September 1997, a wholly owned subsidiary of the Company, Newcom, Inc., completed an Initial Public Offering in which 2,000,000 newly issued shares were sold to the public along with 300,000 shares of the Company's holdings. This results in a minority interest holding in NewCom, Inc. of approximately 27.9%, which is reflected in the accompanying balance sheet. As a result of this transaction, the Company has reported a gain in the quarter ended November 30, 1997 of approximately $2.1 million on the sale of the 300,000 shares, and approximately $7.4 million on the sale of the minority interest. 6 5) CONTINGENCIES The Company is engaged in various legal actions listed below. To the extent that judgment has been rendered, appropriate provision has been made in the financial statements. Barovich/Chiau v. Aura ---------------------- In May, 1995 two lawsuits naming Aura, certain of its directors and executive officers and a former executive officer as defendants, were filed in the United States District Court for the Central District of California (Case Nos. CV-95-3296). Both complaints purported to be securities class actions on behalf of all persons who purchased common stock of Aura during the period from May 28, 1993 through January 17, 1995, inclusive (the "Class Period"). The Complaints alleged that as a result of false and misleading information disseminated by the defendants, the market price of Aura's common stock was artificially inflated during the Class Period. On February 16, 1996, the Company filed its motion for summary judgment which was granted on April 15, 1996. Judgment in favor of the Company and all defendants was entered on April 16, 1996, thereby dismissing the action. Plaintiff's thereafter filed a Notice of Appeal to the judgment on May 16, 1996 and, on January 9, 1998, the United States Court of Appeals for the Ninth Circuit issued a memorandum decision reversing the grant of summary judgment on technical grounds, remanding the case back to the district court. Morganstein/Ratner v. Aura -------------------------- On April 28, 1997 and May 28, 1997, respectively, two lawsuits naming Aura, certain of its directors and executive officers, and the Company's independent accounting firm were filed in the United States District Court for the Central District of California (Case Nos. 97-3103, 97-3944). They purport to be securities class actions on behalf of all persons who purchased common stock of Aura during the alleged periods from January 18, 1995 to April 25, 1997, inclusive, and from December 1, 1994 to May 27, 1997, inclusive (the "Class Period"). The complaints, which are consolidated, allege that as a result of false and misleading information disseminated by the defendants, the market price of Aura's common stock was artificially inflated during the Class Period. They contain allegations which assert that the Company violated federal securities laws by selling Aura Common stock at discounts to the prevailing U.S. market price under Regulation S without informing Aura's shareholders or the public at large. On August 25, 1997, the Company filed a motion to dismiss plaintiff's amended consolidated complaint, which motion was denied on November 24, 1997. The Company believes it has meritorious defenses and intends to pursue all of its available remedies in this matter, and sanctions if warranted against the plaintiff and the attorneys, one of whom filed such a strike suit against the Company in the past. Securities and Exchange Commission Settlement. ---------------------------------------------- In October 1996, the Securities and Exchange Commission ("Commission") issued an order (Securities Act Release No. 7352) instituting an administrative proceeding against Aura Systems, Zvi Kurtzman, and an Aura former officer. The proceeding was settled on consent of all the parties, without admitting or denying any of the Commission's findings. In its order, the Commission found that Aura and the others violated the reporting, recordkeeping and anti-fraud provisions of the securities laws in 1993 and 1994 in connection with its reporting on two transactions in reports previously filed with the Commission. The Commission's order directs that each party cease and desist from committing or causing any future violation of these provisions. 7 The Commission did not require Aura to restate any of the previously issued financial statements or otherwise amend any of its prior reports filed with the Commission. Also, the Commission did not seek any monetary penalties from Aura, Mr. Kurtzman or anyone else. Neither Mr. Kurtzman nor anyone else personally benefited in any way from these events. For a more complete description of the Commission's Order, see the Commission's release referred to above. Other Litigation. ----------------- The Company is also engaged in other legal actions arising in the ordinary course of business. In the opinion of management based upon the advice of counsel, the ultimate resolution of these matters will not have a material adverse effect. Therefore, no provision for these matters has been made in the Company's consolidated financial statements. 6) SUBSEQUENT EVENT On December 31, 1997, Aura issued and sold Convertible Debentures in the aggregate amount of $5.5 million (the "Debentures") to two institutional investors. The Company will use the proceeds from the sale of the Debentures for working capital and general corporate purposes. The Debentures bear interest at the rate of 7% per annum, payable quarterly, with the entire principal amount due and payable on December 31, 2002, subject to prior redemption or conversion. The Debentures are convertible, at the option of the holder, into the Company's Common Stock at a fixed conversion price of $3.81 per share. As part of the financing, the investors received an aggregate of 1,585,865 five-year Warrants, exercisable at $3.81 per share, which price was equal to the average closing bid price of the Common Stock over the five trading days prior to closing. 8 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net revenue for the three and nine month periods ended November 30, 1997 increased by $13,872,273 and $28,446,344 respectively, from the corresponding periods in the prior year. The increased revenues resulted primarily from sales from the Company's NewCom subsidiary and sales of speaker products, including the Company's subsidiary MYS Corporation. The Company sold sound related products and computer related products to four significant customers during the nine months ended November 30, 1997. Sales of speakers to a single major electronics retailer accounted for approximately $11.1 million in the period ended November 30, 1997 as compared to approximately $14.5 million in the prior year comparable period. Sales of communication and multimedia products to major mass merchandisers Best Buy, Circuit City and Computer City accounted for approximately $39.6 million in the nine months ended November 30, 1997 as compared to approximately $6.7 million in the prior year period. None of the above customers are related or affiliated with the Company or any customers of the Company. The Company has no reason to believe that sales to any of the current years customers will not continue. Income from operations for the three and nine months decreased by $6,215,094 and $4,959,652 over the prior year comparable period to a loss of $5,235,458 and a loss of $2,597,105 for the three and nine months due primarily to non-cash charges of approximately $6.5 million in the third quarter. For the three months ended November 30, 1997, the Company earned $748,718 on net revenues of $48,215,300 compared to earnings of $868,246 on net revenues of $34,343,027 for the comparable prior year period. For the nine months ended November 30, 1997, the Company earned $1,418,053 on net revenues of $108,769,267, compared to earnings of $1,998,908 on net revenues of $80,322,923 in the prior year nine months. The reported results include the following among others. Net interest expense increased by $2,025,213 and $3,741,982 respectively over the prior year periods due to higher levels of borrowing over the prior year and premiums paid on the early redemption of convertible notes resulting in a decrease in net income of $3,738,850 and $4,200,177 for the three and nine month periods. In February, 1995, the Company entered into two separate license agreements with K&K Enterprises, one for the production of speakers and one for the production of Bass Shakers. The Company was paid approximately $1.0 million in cash in the year ended February 28, 1996 on these licenses. Due to continued quality problems in production, the Company set up a reserve of $620,000 during the second quarter. Following negotiations in the current quarter, the parties have decided to terminate the license agreements between them. As a result, the Company is taking a non cash charge in the current quarter for the remaining balance of the unpaid license fee. The Company has now fully moved its manufacturing of these products to Malaysia, the Philippines and Mexico, where the Company had also been manufacturing these products for the last year. Cost of goods and overhead for the three and nine months ended November 30, 1997 increased by $12,807,694 and $23,572,611 in comparison with the corresponding periods in the prior year primarily as a result of the increase in purchased parts associated with the increase in the unit volume of sales of the variety of products sold by the Company. 9 Research and development costs for the three and nine months ended November 30, 1997 decreased by $1,842,112 and $3,196,832 as the Company continued to focus its attention in the sales area and in readying new products for manufacturing, primarily the Auragen and new speaker lines. General and administrative costs increased for the three and nine month periods by $9,121,785 and $13,030,217 respectively, primarily due to the non cash charges described earlier and the Company's continued expansion of its facilities and staff and the higher level of advertising support for the products of the Company's NewCom subsidiary. Excluding the non-cash, non- recurring charges of approximately $6.5 million, general and administrative costs increased approximately $2.6 million and $6.5 million, respectively for the third quarter and nine months. In September 1997, a wholly owned subsidiary of the Company, Newcom, Inc., completed an Initial Public Offering in which 2,000,000 newly issued shares were sold to the public along with 300,000 shares of the Company's holdings. This results in a minority interest holding in NewCom, Inc. of approximately 27.2%, which is reflected in the accompanying balance sheet. As a result of this transaction, the Company has reported a gain in the quarter ended November 30, 1997 of approximately $2.1 million on the sale of the 300,000 shares, and approximately $7.4 million on the sale of the minority interest. LIQUIDITY AND CAPITAL RESOURCES In the nine months ended November 30, 1997, cash increased by $5,112,714 to $12,225,068 from $7,112,354, at February 28, 1997. Accounts payable and accrued expenses increased by $5,048,719 from February 28, 1997. Inventories increased by $16,226,330 as the Company began to prepare for increasing shipments of speakers, multi-media kits, modems and soundcards for the fall selling season. The increase in receivables of $4,509,600 is due to the increase in sales volume which was concentrated in the last month of the quarter as sales began to increase for the fall selling season. Cash flows used in operations decreased by $19,307,629 compared to the prior year nine months. Working capital increased to $84,452,602 from $62,310,715 over the fiscal year end level, with the current ratio improving slightly to 2.8:1from 2.54:1. In the nine months ended November 30, 1997, the Company received proceeds of $29,000,000 from the sale of convertible notes payable. The Company also redeemed $4,000,000 of previously issued convertible notes. $15 million of these convertible notes were converted into straight debt with an annual interest rate of 18%. In the nine months ended November 30, 1996, financing activities contributed $635,000 from the exercise of options to purchase 10,000 shares of common stock and the exercise of warrants to purchase 300,000 shares of common stock. Proceeds during the nine month period from the sale of convertible debt totalled $18,850,000. Additionally, the Company received proceeds of $1,501,500 from the sale of 385,000 shares of common stock in the nine months ended November 30, 1996. In the past, the Company's cash flow generated from operations has not been sufficient to completely fund its working capital needs. Accordingly, the Company has also relied upon external sources of financing to maintain its liquidity, principally private and bank indebtedness and equity financing. No assurances can be provided that these funding sources will be available in the future. The Company expects that with the increasing shipments of the Bass Shakers, speakers, multimedia kits, modems and sound cards, and the initiation of manufacturing of the Company's AuraGen, cash flows and results of operations should be favorably impacted in the future. 10 PART II - OTHER INFORMATION ITEM 1 Legal Proceedings For information regarding pending legal proceedings, see Note 4 to the Company's Condensed Consolidated Financial Statements appearing elsewhere herein. ITEM 2 Changes in Securities On December 31, 1997, Aura issued and sold Convertible Debentures in the aggregate amount of $5.5 million (the "Debentures") to two institutional investors. The Company will use the proceeds from the sale of the Debentures for working capital and general corporate purposes. The Debentures bear interest at the rate of 7% per annum, payable quarterly, with the entire principal amount due and payable on December 31, 2002, subject to prior redemption or conversion. The Debentures are convertible, at the option of the holder, into the Company's Common Stock at a fixed conversion price of $3.81 per share. As part of the financing, the investors received an aggregate of 1,585,865 five-year Warrants, exercisable at $3.81 per share, which price was equal to the average closing bid price of the Common Stock over the five trading days prior to closing. ITEM 6 Exhibits and Reports on Form 8-K a) Exhibits: See Exhibit Index b) Reports On Form 8-K: Form 8-K dated November 7, 1997. 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AURA SYSTEMS, INC. ----------------------- (Registrant) Date: JANUARY 16, 1998 By: /s/Steven C. Veen ---------------- ------------------------------------- STEVEN C. VEEN Senior Vice President Chief Financial Officer (Principal Financial and Accounting Officer) 12 INDEX TO EXHIBITS Exhibit Sequential Number Page No. EX-27 Financial Data Schedule 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 6-MOS FEB-28-1998 MAR-01-1997 NOV-30-1997 12,360,905 0 58,253,298 0 50,083,642 131,435,432 65,111,758 (10,856,856) 223,956,317 46,982,830 0 0 0 201,395,283 0 223,956,713 108,769,267 108,769,267 82,576,867 0 18,869,319 0 4,193,119 3,129,962 970,015 2,159,947 0 0 (741,894) 1,418,053 .02 0
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