EXHIBIT 99.1

UNITED STATES DEPARTMENT OF JUSTICE

OFFICE OF THE UNITED STATES TRUSTEE

CENTRAL DISTRICT OF CALIFORNIA

In Re:			CHAPTER 11 (BUSINESS)
	Aura Systems, Inc.
	2355 Alaska Avenue		Case Number:	LA 05-24550-SB
	El Segundo, CA 90245		Operating Report Number:
		Debtor(s).	For the Month Ending:	30-Sep-05

I. CASH RECEIPTS AND DISBURSEMENTS

A. (GENERAL ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,212,011.05
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL			1,095,830.16
ACCOUNT REPORTS
3. BEGINNING BALANCE:			116,180.89
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable - Post-filing		99,065.51
Accounts Receivable - Pre-filing		82,477.66
General Sales
Other (Specify)	Trans from DIP Tax A/C	41,123.00
Other (Specify)	Aries Group Note Payable	400,000.00
Other (Specify)	AFLAC Ins Refund	328.96
**Other (Specify)	Cobra Refund	1,639.90
TOTAL RECEIPTS THIS PERIOD:			624,635.03
5. BALANCE:			740,815.92
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		139,191.25
Disbursements (from page 2)		355,914.87
TOTAL DISBURSEMENTS THIS PERIOD:***			495,106.12
7. ENDING BALANCE:			245,709.80
8. General Account Number(s):		#3226077
Depository Name & Location:		City National Bank
		Los Angeles Airport Office
		6033 West Century Blvd.
		Los Angeles, CA 90045

* All receipts must be deposited into the general account.

** Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

*** This amount should be the same as the total from page 2.

Page 1 of 19

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number		Payee or DIP account		Purpose		*Amount Transfered		**Amount Disbursed		Amount
9/7/05		001189		TERENCE ULINSKI		Raw Materials				-4,510.00		(4,510.00	)
9/7/05		001242		AAA COPY SYSTEMS, INC.		Equipment Lease				308.51		308.51
9/7/05		001243		GRAINGER, INC.		Raw Materials				357.18		357.18
9/7/05		001245		INTERLAND, INC.		Utilities				24.90		24.90
9/7/05		001246		MAIN ELECTRIC SUPPLY CO.		Raw Materials				25.20		25.20
9/7/05		001247		NATE'S INDUSTRIAL TOOLS		Raw Materials				91.46		91.46
9/7/05		001248		RND ENTERPRISES		Raw Materials				792.00		792.00
9/7/05		001249		SECURITY SIGNAL DEVICES, INC.		Utilities				252.60		252.60
9/7/05		001250		TECH CRAFT, INC.		Raw Materials				16,306.50		16,306.50
9/7/05		001251		THE STILLEY CONSULTING AND ADV		Lobbyist				2,000.00		2,000.00
9/7/05		001252		AFLAC		Insurance				822.40		822.40
9/7/05		001255		JOE LAM		Raw Materials				208.00		208.00
9/7/05		001256		TERENCE ULINSKI		Raw Materials				4,510.00		4,510.00
9/7/05		001263		DHL WORLDWIDE EXPRESS		Freight				3,639.17		3,639.17
9/7/05		001264		JOE LAM		Raw Materials				764.67		764.67
9/7/05		001265		RAMIRO PEREZ		Building Maintenance				1,150.00		1,150.00
9/7/05		001266		QUALTECH BACKPLANE, INC.		Raw Materials				1,362.50		1,362.50
9/7/05		001267		SOUTHERN CALIFORNIA GAS CO.		Utilities				400.76		400.76
9/7/05		001268		MARK STOPHER		Insurance-Flex Reimbursement				788.02		788.02
9/7/05		001269		TOTAL CONCEPT SALES, INC.		Office Supplies				123.09		123.09
9/9/05		001273		FIRST INSURANCE FUNDING CORP.		D&O Insurance				54,523.38		54,523.38
9/9/05		001274		RONALD M. DORFMAN		Legal				25,000.00		25,000.00
9/12/05		001275		RAMP ENGINEERING, INC.		Raw Materials				5,970.00		5,970.00
9/14/05		001276		CONTEXT ENGINEERING COMPANY		Raw Materials				2,936.00		2,936.00
9/14/05		001278		EDDINGS BROS. AUTO PARTS		Raw Materials				822.44		822.44
9/14/05		001279		ENERTRON		Raw Materials				3,250.00		3,250.00
9/14/05		001280		KAMA INTERCONNECT, INC.		Raw Materials				1,196.50		1,196.50
9/14/05		001281		NEEDA PARTS MANUFACTURING		Raw Materials				63.60		63.60
9/14/05		001282		UMPCO INC.		Raw Materials				198.59		198.59
9/14/05		001283		WEST COAST MARINE ELECTRIC		Raw Materials				95.90		95.90
9/14/05		001284		BRACKETRY SYSTEMS		Raw Materials				350.00		350.00
9/14/05		001286		EDDINGS BROS. AUTO PARTS		Raw Materials				1,354.74		1,354.74
9/14/05		001287		HVAC MECHANICAL, INC.		Building Maintenance				262.00		262.00
9/14/05		001288		JOE LAM		Raw Materials				519.58		519.58
9/14/05		001289		ALLIED WASTE SERVICES		Utilities				485.44		485.44
9/14/05		001290		AT&T WIRELESS SERVICES		Utilities				1,380.03		1,380.03
9/14/05		001291		A.T.&T.		Utilities				224.96		224.96
9/14/05		001292		DHL WORLDWIDE EXPRESS		Freight				2,303.21		2,303.21
9/14/05		001293		DIGI-KEY CORPORATION		Raw Materials				126.00		126.00
9/14/05		001295		THE HARTFORD		Insurance-Workers' Comp				352.25		352.25
9/14/05		001296		RAINDANCE COMMUNICATIONS, INC.		Utilities				103.14		103.14
9/14/05		001297		SOUTHERN CA EDISON COMPANY		Utilities				2,015.15		2,015.15
9/14/05		001298		THYSSEN KRUPP ELEVATOR CO.		Utilities				827.30		827.30
9/14/05		001299		JOHN BAGLEY		Consultant				2,572.50		2,572.50
9/14/05		001300		TERRY FREELAND		Payroll				1,142.69		1,142.69
9/14/05		001301		STEPHEN HARA		Consultant				350.00		350.00
9/14/05		001302		JOE LAM		Consultant				6,436.00		6,436.00
9/14/05		001304		RICHARD ULINSKI		Consultant				2,000.00		2,000.00
9/14/05		001305		LEVYING OFFICER		Payroll				185.00		185.00
9/14/05		001306		PATRICK FLEISHAUER		Travel				3,466.07		3,466.07
9/14/05		001307		JOE LAM		Travel				876.52		876.52
9/14/05		001308		DONALD LOVE		Employee Expenses				262.26		262.26
9/14/05		001309		MARK STOPHER		Travel				3,203.09		3,203.09
9/14/05		001310		RAYMOND YU		Travel				348.32		348.32
9/14/05		001311		BLAKELEY SOKOLOFF TAYLOR		Legal-Patent				3,500.00		3,500.00
9/14/05		001312		RONALD M. DORFMAN		Legal				5,000.00		5,000.00
9/14/05		001313		LOEB & LOEB		Legal				8,000.00		8,000.00
9/14/05		001314		MCDERMOTT WILL & EMERY LLP		Legal				5,000.00		5,000.00
9/15/05		001315		ARTHUR J. GALLAGHER COMPANY		Insurance-Commercial				17,577.00		17,577.00
9/20/05		001316		AT&T (LOCAL SERVICE)		Utilities				609.90		609.90
9/20/05		001317		DUNCAN BOLT		Raw Materials				700.13		700.13
9/20/05		001318		GRAINGER, INC.		Raw Materials				127.63		127.63
9/20/05		001319		JOE LAM		Raw Materials				132.93		132.93
9/20/05		001320		NATE'S INDUSTRIAL TOOLS		Raw Materials				160.75		160.75
9/20/05		001321		PITNEY BOWES CREDIT CORP.		Equipment Lease				421.96		421.96
9/20/05		001322		VICTORY PAPER & PACKAGING CO.		Raw Materials				861.13		861.13
9/20/05		001323		CITY OF EL SEGUNDO (WATER)		Utilities				422.12		422.12
9/20/05		001324		JOE LAM		Raw Materials				832.40		832.40
9/20/05		001325		SCHAEVITZ SENSORS		Raw Materials				2,429.90		2,429.90
9/20/05		001326		UNDERWRITERS LAB. INC.		Mfg. Other				2,062.57		2,062.57
9/20/05		001327		AETNA (HMO)		Health Insurance				11,335.61		11,335.61
9/20/05		001328		AETNA (LIFE&LTD)		Health Insurance				722.39		722.39
9/20/05		001329		AETNA (PPO&DENTAL)		Health Insurance				3,563.35		3,563.35
9/20/05		001330		JOE LAM		Raw Materials				117.76		117.76
9/20/05		001331		STATE COMP. INSURANCE FUND		Insurance-Workers' Comp				5,021.41		5,021.41
9/20/05		001332		VINTAGE FILINGS, LLC.		SEC Public Filings				991.00		991.00
9/20/05		001333		DUNCAN BOLT		Raw Materials				342.10		342.10
9/20/05		001334		KAMA INTERCONNECT, INC.		Raw Materials				741.00		741.00
9/20/05		001335		JOE LAM		Raw Materials				123.86		123.86
9/20/05		001336		*CASH*		Mfg. Other				229.70		229.70
9/20/05		001337		CONEXIS		Health Insurance				40.00		40.00
9/28/05		001338		AFLAC		Insurance-Other				164.48		164.48
9/28/05		001339		JOHN BAGLEY		Consultant				2,765.00		2,765.00
9/28/05		001341		FLEX ONE		Insurance-Other				25.00		25.00
9/28/05		001342		STEPHEN HARA		Consultant				425.00		425.00
9/28/05		001343		JOE LAM		Consultant				6,436.00		6,436.00
9/28/05		001346		LEVYING OFFICER		Payroll				185.00		185.00
9/28/05		001347		SOUTHERN CALIFORNIA GAS CO.		Utilities				31.10		31.10
9/28/05		001348		*CASH*		Mfg. Other				253.65		253.65
9/28/05		001349		EDDINGS BROS. AUTO PARTS		Raw Materials				105.00		105.00
9/28/05		001350		KHALIQ RAHMAN		Consulting				1,080.00		1,080.00
9/28/05		001353		VINTAGE FILINGS, LLC.		SEC Public Filings				519.00		519.00
9/28/05		001354		ULINE		Raw Materials				258.91		258.91
9/28/05		001355		TERENCE ULINSKI		Raw Materials				451.00		451.00
9/28/05		001356		JOE LAM		Employee Expenses				964.21		964.21
9/28/05		001357		JOE LAM		Raw Materials				313.94		313.94
9/28/05		001358		ROBERT MARTIN		Employee Expenses				35.25		35.25
9/28/05		001359		RAYMOND YU		Employee Expenses				841.57		841.57
9/2/05				ADP		Payroll Taxes				18,376.42		18,376.42
9/2/05				Nova Systems		Credit Card Processing Fees				432.94		432.94
9/2/05				CNB Aura DIP Payroll Account		Transfer Funds to P/R Account		45,589.35		0.00		45,589.35
9/6/05				ADP		Payroll Processing Fees				260.08		260.08
9/8/05				GMAC Commercial Mtg.		Mortgage Payment				41,122.86		41,122.86
9/12/05				Levene, Neale, Bender		Legal Retainer				35,000.00		35,000.00
9/15/05				CNB Aura DIP Payroll Account		Transfer Funds to P/R Account		45,850.61		0.00		45,850.61
9/16/05				ADP		Payroll Taxes				17,546.59		17,546.59
9/16/05				ADP		Payroll Processing Fees				258.63		258.63
9/23/05				Trans to Operation Account CNB 03226344		Transfer Funds to Operations		513.30		0.00		513.30
9/28/05				ADP		Payroll Taxes				2,312.02		2,312.02
9/30/05				CNB Aura DIP Payroll Account		Transfer Funds to P/R Account		47,237.99		0.00		47,237.99
9/30/05				CNB		LC Amendment Fee				65.00		65.00
TOTAL DISBURSMENTS THIS PERIOD								139,191.25		355,914.87		495,106.12

Page 2 of 19

GENERAL ACCOUNT

BANK RECONCILIATION

	Bank statement Date:		9/30/2005		Balance on Statement:		273,482.20
Plus deposits in transit (a):
			Deposit Date		Deposit Amount
					$0.00
TOTAL DEPOSITS IN TRANSIT							0.00
Less Outstanding Checks (a):
	Check Number		Check Date		Check Amount
		001099		8/10/05		135.00
		001142		8/17/05		4,212.00
		001168		8/17/05		647.37
		001218		8/31/05		25.13
		001229		8/31/05		63.50
		001276		9/14/05		2,936.00
		001279		9/14/05		3,250.00
		001280		9/14/05		1,196.50
		001281		9/14/05		63.60
		001320		9/20/05		160.75
		001334		9/20/05		741.00
		001338		9/28/05		164.48
		001339		9/28/05		2,765.00
		001341		9/28/05		25.00
		001342		9/28/05		425.00
		001343		9/28/05		6,436.00
		001346		9/28/05		185.00
		001347		9/28/05		31.10
		001349		9/28/05		105.00
		001350		9/28/05		1,080.00
		001353		9/28/05		519.00
		001355		9/28/05		451.00
		001356		9/28/05		964.21
		001357		9/28/05		313.94
		001358		9/28/05		35.25
		001359		9/28/05		841.57
TOTAL OUTSTANDING CHECKS:								27,772.40
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	245,709.80

* It is acceptable to replace this form with a similar form

** Please attach a detailed explanation of any bank statement adjustment

Page 3 of 19

I. CASH RECEIPTS AND DISBURSEMENTS

B. (PAYROLL ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS		303,959.18
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS		282,582.35
3. BEGINNING BALANCE:		21,376.83
4. RECEIPTS DURING CURRENT PERIOD: (Transferred from General Account)		138,677.95
5. BALANCE:		160,054.78
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
TOTAL DISBURSEMENTS THIS PERIOD:***		140,251.51
7. ENDING BALANCE:		19,803.27
8. PAYROLL Account Number(s):	#3226085
Depository Name & Location:	City National Bank
	Los Angeles Airport Office
	6033 West Century Blvd.
	Los Angeles, CA 90045

Page 4 of 19

TOTAL DISBURSEMENTS FROM PAYROLL ACCOUNT FOR CURRENT PERIOD

Dat  mm/dd/yyyy	Check Number	Payee	Purpose	Amount
9/2/2005	Check #000083	Yedidia Cohen	Pay Period Ending 8/28/05	1,573.56
9/2/2005	Check #500260	Raymond Yu	Pay Period Ending 8/28/05	5,656.09
9/2/2005	Check #500261	Sandra Ferro	Pay Period Ending 8/28/05	2,833.29
9/2/2005	Check #500262	Melinda S. Mason	Pay Period Ending 8/28/05	1,731.34
9/2/2005	Check #500263	Robert Baghramian	Pay Period Ending 8/28/05	1,270.56
9/2/2005	Check #500264	Robert L. Martin	Pay Period Ending 8/28/05	1,311.64
9/2/2005	Check #500265	Ronald J. Goldstein	Pay Period Ending 8/28/05	2,680.05
9/2/2005	Check #500266	Royal D. Brand	Pay Period Ending 8/28/05	1,372.12
9/2/2005	Check #500267	Patrick Fleishauer	Pay Period Ending 8/28/05	1,667.39
9/2/2005	Check #500268	Alexander P. Kolb	Pay Period Ending 8/28/05	1,098.25
9/2/2005	Check #500269	Mark A. Stopher	Pay Period Ending 8/28/05	1,623.09
9/2/2005	Check #500270	Kizzy S. Wilder	Pay Period Ending 8/28/05	1,443.41
9/2/2005	Check #500271	Yedidia Cohen	Pay Period Ending 8/28/05	3,392.73
9/2/2005	Check #500272	Ebanjelina Corrales	Pay Period Ending 8/28/05	731.20
9/2/2005	Check #500273	John G. Hecker	Pay Period Ending 8/28/05	1,240.54
9/2/2005	Check #500274	Martha Lomeli	Pay Period Ending 8/28/05	693.37
9/2/2005	Check #500275	Donald R. Love	Pay Period Ending 8/28/05	1,335.43
9/2/2005	Check #500276	Pablo Ortiz	Pay Period Ending 8/28/05	854.73
9/2/2005	Check #500277	Christian Tauber-Grecul	Pay Period Ending 8/28/05	1,770.02
9/2/2005	Check #500278	Teresa B. Yu	Pay Period Ending 8/28/05	1,316.51
9/2/2005	Check #500279	Terry Lance Freeland	Pay Period Ending 8/28/05	1,195.44
9/2/2005	Check #500280	Hugo Garcia	Pay Period Ending 8/28/05	1,024.47
9/2/2005	Check #500281	Jorge B. Martinez	Pay Period Ending 8/28/05	1,013.78
9/2/2005	Check #500282	Jesse Salazar	Pay Period Ending 8/28/05	966.80
9/2/2005	Check #500283	Tony J. Wilson	Pay Period Ending 8/28/05	1,242.73
9/2/2005	Check #500284	Jeffrey Cortez	Pay Period Ending 8/28/05	844.64
9/2/2005	Check #500285	John Phalen	Pay Period Ending 8/28/05	1,723.37
9/2/2005	Check #500286	Aurelio Vasquez	Pay Period Ending 8/28/05	876.32
9/2/2005	Check #500259	MG Trust	401(k) Pay Period Ending 8/28/05	2,680.04
9/16/2005	Check #500288	Raymond Yu	Pay Period Ending 9/11/05	5,656.19
9/16/2005	Check #500289	Sandra Ferro	Pay Period Ending 9/11/05	2,869.23
9/16/2005	Check #500290	Melinda S. Mason	Pay Period Ending 9/11/05	1,732.23
9/16/2005	Check #500291	Robert Baghramian	Pay Period Ending 9/11/05	1,272.19
9/16/2005	Check #500292	Robert L. Martin	Pay Period Ending 9/11/05	1,311.64
9/16/2005	Check #500293	Ronald J. Goldstein	Pay Period Ending 9/11/05	2,842.48
9/16/2005	Check #500294	Royal D. Brand	Pay Period Ending 9/11/05	1,374.62
9/16/2005	Check #500295	Patrick Fleishauer	Pay Period Ending 9/11/05	1,667.78
9/16/2005	Check #500296	Alexander P. Kolb	Pay Period Ending 9/11/05	1,099.13
9/16/2005	Check #500297	Mark A. Stopher	Pay Period Ending 9/11/05	1,623.43
9/16/2005	Check #500298	Kizzy S. Wilder	Pay Period Ending 9/11/05	1,443.64
9/16/2005	Check #500299	Yedidia Cohen	Pay Period Ending 9/11/05	3,398.92
9/16/2005	Check #500300	Ebanjelina Corrales	Pay Period Ending 9/11/05	731.21
9/16/2005	Check #500301	John G. Hecker	Pay Period Ending 9/11/05	1,242.16
9/16/2005	Check #500302	Martha Lomeli	Pay Period Ending 9/11/05	756.59
9/16/2005	Check #500303	Donald R. Love	Pay Period Ending 9/11/05	1,399.50
9/16/2005	Check #500304	Pablo Ortiz	Pay Period Ending 9/11/05	854.72
9/16/2005	Check #500305	Christian Tauber-Grecul	Pay Period Ending 9/11/05	1,770.59
9/16/2005	Check #500306	Teresa B. Yu	Pay Period Ending 9/11/05	1,319.01
9/16/2005	Check #500307	Terry Lance Freeland	Pay Period Ending 9/11/05	1,195.44
9/16/2005	Check #500308	Hugo Garcia	Pay Period Ending 9/11/05	1,024.47
9/16/2005	Check #500309	Jorge B. Martinez	Pay Period Ending 9/11/05	1,013.80
9/16/2005	Check #500310	Jesse Salazar	Pay Period Ending 9/11/05	966.79
9/16/2005	Check #500311	Tony J. Wilson	Pay Period Ending 9/11/05	1,242.74
9/16/2005	Check #500312	Jeffrey Cortez	Pay Period Ending 9/11/05	760.12
9/16/2005	Check #500313	John Phalen	Pay Period Ending 9/11/05	1,723.74
9/16/2005	Check #500314	Arelio Vasquez	Pay Period Ending 9/11/05	876.29
9/16/2005	Check #500287	MG Trust	410(k) Pay Period Ending 9/11/05	2,681.96
9/30/2005	Check #500316	Raymond Yu	Pay Period Ending 9/25/05	5,656.19
9/30/2005	Check #500317	Sandra Ferro	Pay Period Ending 9/25/05	2,883.78
9/30/2005	Check #500318	Melinda S. Mason	Pay Period Ending 9/25/05	1,732.20
9/30/2005	Check #500319	Robert Baghramian	Pay Period Ending 9/25/05	1,272.21
9/30/2005	Check #500320	Robert L. Martin	Pay Period Ending 9/25/05	1,311.64
9/30/2005	Check #500321	Ronald J. Goldstein	Pay Period Ending 9/25/05	2,952.37
9/30/2005	Check #500322	Royal D. Brand	Pay Period Ending 9/25/05	1,374.62
9/30/2005	Check #500323	Patrick Fleishauer	Pay Period Ending 9/25/05	1,667.77
9/30/2005	Check #500324	Alexander P. Kolb	Pay Period Ending 9/25/05	1,099.12
9/30/2005	Check #500325	Mark A. Stopher	Pay Period Ending 9/25/05	2,297.13
9/30/2005	Check #500326	Kizzy S. Wilder	Pay Period Ending 9/25/05	1,625.73
9/30/2005	Check #500327	Yedidia Cohen	Pay Period Ending 9/25/05	3,423.31
9/30/2005	Check #500328	Ebanjelina Corrales	Pay Period Ending 9/25/05	731.20
9/30/2005	Check #500329	John G. Hecker	Pay Period Ending 9/25/05	1,242.18
9/30/2005	Check #500330	Martha Lomeli	Pay Period Ending 9/25/05	693.37
9/30/2005	Check #500331	Donald R. Love	Pay Period Ending 9/25/05	1,378.15
9/30/2005	Check #500332	Pablo Ortiz	Pay Period Ending 9/25/05	1,070.59
9/30/2005	Check #500333	Christian Tauber-Grecul	Pay Period Ending 9/25/05	1,770.60
9/30/2005	Check #500334	Teresa B. Yu	Pay Period Ending 9/25/05	1,319.04
9/30/2005	Check #500335	Terry Lance Freeland	Pay Period Ending 9/25/05	1,195.44
9/30/2005	Check #500336	Hugo Garcia	Pay Period Ending 9/25/05	1,024.47
9/30/2005	Check #500337	Jorge B. Martinez	Pay Period Ending 9/25/05	1,045.13
9/30/2005	Check #500338	Jesse Salazar	Pay Period Ending 9/25/05	966.81
9/30/2005	Check #500339	Tony J. Wilson	Pay Period Ending 9/25/05	1,242.72
9/30/2005	Check #500340	Jeffrey Cortez	Pay Period Ending 9/25/05	844.62
9/30/2005	Check #500341	John Phalen	Pay Period Ending 9/25/05	1,723.75
9/30/2005	Check #500342	Aurelio Vasquez	Pay Period Ending 9/25/05	876.32
9/30/2005	Check #500315	MG Trust	401(k) Pay Period Ending 9/25/05	2,817.53
TOTAL DISBURSMENTS THIS PERIOD				140,251.51

Page 5 of 19

PAYROLL ACCOUNT

BANK RECONCILIATION

	Bank statement Date:	9/30/2005	Balance on Statement:	$66,159.87
Plus deposits in transit (a):
		Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT				0.00
Less Outstanding Checks (a):
	Check Number	Check Date	Check Amount
	Check #000083	9/2/2005	1,573.56
	Check #500316	9/30/2005	5,656.19
	Check #500317	9/30/2005	2,883.78
	Check #500318	9/30/2005	1,732.20
	Check #500319	9/30/2005	1,272.21
	Check #500320	9/30/2005	1,311.64
	Check #500321	9/30/2005	2,952.37
	Check #500322	9/30/2005	1,374.62
	Check #500323	9/30/2005	1,667.77
	Check #500324	9/30/2005	1,099.12
	Check #500325	9/30/2005	2,297.13
	Check #500326	9/30/2005	1,625.73
	Check #500327	9/30/2005	3,423.31
	Check #500329	9/30/2005	1,242.18
	Check #500330	9/30/2005	693.37
	Check #500331	9/30/2005	1,378.15
	Check #500332	9/30/2005	1,070.59
	Check #500333	9/30/2005	1,770.60
	Check #500334	9/30/2005	1,319.04
	Check #500335	9/30/2005	1,195.44
	Check #500336	9/30/2005	1,024.47
	Check #500337	9/30/2005	1,045.13
	Check #500338	9/30/2005	966.81
	Check #500339	9/30/2005	1,242.72
	Check #500340	9/30/2005	844.62
	Check #500342	9/30/2005	876.32
	Check #500315	9/30/2005	2,817.53
TOTAL OUTSTANDING CHECKS:				46,356.60
Bank statement Adjustments:				0.00
Explanation of Adjustments-
ADJUSTED BANK BALANCE:				$19,803.27

* It is acceptable to replace this form with a similar form

** Please attach a detailed explanation of any bank statement adjustment

Page 6 of 19

I. CASH RECEIPTS AND DISBURSEMENTS

C. (TAX ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS		113,652.78
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX ACCOUNT REPORTS		41,122.00
3. BEGINNING BALANCE:		72530.78
4. RECEIPTS DURING CURRENT PERIOD:		0.00
Refund of funds previously levied from Aura Systems
5. BALANCE:		72,530.78
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:***		41,123.00
7. ENDING BALANCE:		31,407.78
8. TAX Account Number(s):	#3226093
Depository Name & Location:	City National Bank
	Los Angeles Airport Office
	6033 West Century Blvd.
	Los Angeles, CA 90045

NOTES;

Tax Account was NOT in use - ADP requires that we send a wire to them - this is being done out of the General Account to save transaction fees. We used this account for the segregated funds pertaining to the levy and the Minority Shareholders request that these funds be used for the mortgage payments on the building owned by Aura Realty, Inc.

Page 7 of 19

TOTAL DISBURSEMENTS FROM TAX ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number	Payee		Purpose		Amount Transfered		Amount Disbursed		Amount
9/7/2005			Aura DIP General A/C		Transfer funds to general account		41,123.00				41,123.00
TOTAL DISBURSEMENTS THIS PERIOD:							41,123.00		0.00		41,123.00

Page 8 of 19

TAX ACCOUNT

BANK RECONCILIATION

	Bank statement Date:		9/30/2005		Balance on Statement:		$31,407.78
Plus deposits in transit (a):
				Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT								0.00
Less Outstanding Checks (a):
		Check Number		Check Date		Check Amount
TOTAL OUTSTANDING CHECKS:								0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	31,407.78

NOTES;

Tax Account was NOT in use - ADP requires that we send a Wire to them - this is being done out of the General Account to save transaction fees. We used this account for the Segregated funds pertaining to the Levy and the Minority Share holders request that these funds be used for the Lease Pmts of the building.

Page 9 of 19

I. CASH RECEIPTS AND DISBURSEMENTS

D. (OPERATIONS ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS		1,310.90
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX		200.16
ACCOUNT REPORTS
3. BEGINNING BALANCE:		1110.74
4. RECEIPTS DURING CURRENT PERIOD:		513.30
(Transferred from General Account)
5. BALANCE:		1,624.04
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:***		1,148.01
7. ENDING BALANCE:		476.03
8.  Operations Account Number(s):	#3226344
Depository Name & Location:	City National Bank
	Los Angeles Airport Office
	6033 West Century Blvd.
	Los Angeles, CA 90045

NOTES;

New Account set-up to support the day to day operations team with COD deliveries and variances of checks written due to Freight charges or small amounts for Raw Materials outside of check runs.

Page 10 of 19

TOTAL DISBURSEMENTS FROM OPERATIONS ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number		Payee		Purpose		Amount Transfered		Amount Disbursed		Amount
9/1/2005		001004		MID-POINT BEARING, INC.		Freight				15.15		15.15
9/1/2005		001005		DUNCAN BOLT		Raw Materials				25.20		25.20
9/7/2005		001006		DUNCAN BOLT		Raw Materials				36.00		36.00
9/8/2005		001007		BOLT PRODUCTS INC.		Raw Materials				21.31		21.31
9/9/2005		001008		COLEEN BROOKS		Hazardous Waste Testing				250.00		250.00
9/9/2005		001009		PARA TECH COATING, INC.		Freight				20.34		20.34
9/9/2005		001010		PARA TECH COATING, INC.		Raw Materials				88.60		88.60
9/15/2005		001011		NEEDA PARTS MANUFACTURING		Freight				11.89		11.89
9/15/2005		001012		J&K CONNECTORS		Raw Materials				147.77		147.77
9/22/2005		001013		DIGI-KEY CORPORATION		Freight				7.78		7.78
9/23/2005		001014		A-PLUS FASTENERS & SUPPLY		Raw Materials				127.00		127.00
9/26/2005		001015		DICK'S ELECTRIC MOTOR SERVICE		Raw Materials				123.00		123.00
9/28/2005		001016		DIGI-KEY CORPORATION		Raw Materials				57.99		57.99
9/28/2005		001017		CONTEXT ENGINEERING COMPANY		Freight				29.71		29.71
9/28/2005		001018		EDDINGS BROS. AUTO PARTS		Raw Materials				7.27		7.27
9/29/2005		001019		T T I		Raw Materials				179.00		179.00
TOTAL DISBURSEMENTS THIS PERIOD:								0.00		1,148.01		1,148.01

NOTES:

Page 11 of 19

OPERATIONS ACCOUNT

BANK RECONCILIATION

	Bank statement Date:		9/30/2005		Balance on Statement:		$1,138.80
Plus deposits in transit (a):
			Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT							0.00
Less Outstanding Checks (a):
	Check Number		Check Date		Check Amount
		001008		9/9/2005		250.00
		001011		9/15/2005		11.89
		001013		9/22/2005		7.78
		001014		9/23/2005		127.00
		001016		9/28/2005		57.99
		001017		9/28/2005		29.71
		001019		9/29/2005		179.00
TOTAL OUTSTANDING CHECKS:								663.37
Bank statement Adjustments:							$	0.60
Explanation of Adjustments-		Bank Miscoding Check #001018
ADJUSTED BANK BALANCE:							$	476.03

NOTES:

* It is acceptable to replace this form with a similar form

** Please attach a detailed explanation of any bank statement adjustment

Page 12 of 19

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:

(Provide a copy of monthly account statements for each of the below)

		General Account:	245,709.80
		Payroll Account:	19,803.27
		Tax Account:	31,407.78
		Operations Account:	476.03
*Other Accounts:
*Other Monies:
		**Petty Cash (from below):	0.00
TOTAL CASH AVAILABLE:				297,396.88
Petty Cash Transactions:
Date	Purpose		Amount
TOTAL PETTY CASH TRANSACTIONS:					0.00

* Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#

** Attach Exhibit Itemizing all petty cash transactions

Page 13 of 19

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS

AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, Etc.	Frequency of Payments (Mo/Qtr)		Amount of Payment		Post-Petition payments not made (Number)		Total Due
Cap Mark / (Bldg Lease)		MO	$	41,122.00		2	$	54,810.80
AAA Copy Systems		MO	$	308.51		2	$	617.02
Pitney Bowes Credit		MO	$	119.16		0	$	–
TOTAL DUE:								55,427.82

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

		Gross Sales Subject to Sales Tax:				(755.58)
		Total Wages Paid:				122,069.22
		Total Post-Petition Amounts Owing		Amount Delinquent		Date Delinquent Amount Due
	Federal Withholding		7,258.30		0.00
	State Withholding		2,791.92		0.00
	FICA- Employer's Share		5,395.79		0.00
	FICA- Employee's Share		3,629.15		0.00
	Federal Unemployment		0.00		0.00
	Sales and Use		161.73		0.00
	Real Property		0.00		0.00
Other:
	TOTAL:		19,236.89		0.00

Page 14 of 19

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	*Accounts Payable			Accounts Receivable
	Post-Petition			Pre-Petition		Post-Petition
30 days or less		85,529.18			0.00		276,001.04
31 - 60 days		49,206.94			0.00		33,709.81
61 - 90 days		(15,963.15	)		0.00		6,093.97
91 - 120 days		43,236.01			12,821.43		13,691.10
Over 120 days					123,699.41
TOTAL:		162,008.98			136,520.84		329,495.92

V. INSURANCE COVERAGE

		Name of Carrier		Amount of Coverage		Policy Expiration Date		Premium Paid Through (Date)
	General Liability		Hartford Fire Insurance		2 Mil		9/15/2006		See Below	(1	)
	Worker's Compensation - CA		State Comp Ins Fund		1 Mil		4/15/2006		53,557.56
	Worker's Comp - Outside CA		The Hartford		1 Mil		4/15/2006		–
	Commercial & Other Property		Hartford Fire Insurance		10.6 Mil		9/16/2005		See Below	(1	)
	Vehicle		Hartford Fire Insurance		1 Mil		9/15/2006		See Below	(1	)
Others:	D&O		XL Insurance America		5 Mil		8/8/2006		54,423.38
	Crime		Hartford Fire Insurance		150,000		9/15/2006		See Below	(1	)
	Boiler and Machinery		Hartford Fire Insurance		12.5 Mil		9/15/2006		17,577.00	(1	)
	Umbrella

(1) First Financing Pmt for the identifed Insurance Policies

VI. UNITED STATES TRUSTEE QUARTERLY FEES

(TOTAL PAYMENTS)

Quarterly Period Ending (Date)	Total Disbursements		Quarterly Fees		Date Paid	Amount Paid		Quarterly Fees Still Owing
		0.00		0.00			0.00		0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
				0.00			0.00		0.00

* Post-Petition Accounts Payable SHOULD NOT include professionals' fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals' fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 15 of 19

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation		*Authorized Gross Compensation	Gross Compensation Paid During the Month
Raymond Yu		6/24/2005			16,153.86
Sandra Ferro		6/24/2005			9,692.30

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation		Description		Amount Paid During the Month
Raymond Yu		6/24/2005		Travel & Expense Reimbursement		1,189.89

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 16 of 19

IX. PROFIT AND LOSS STATEMENT

(ACCRUAL BASIS ONLY)

				9/30/2005
	Current Month			Cumulative Post-Petition
Sales/Revenue:
Gross Sales/Revenue		325,519			547,517
Less: Returns/Discounts		(3,249	)		(5,021	)
Net Sales/Revenue		322,270			542,497
Cost of Goods Sold:
Beginning Inventory at cost		8,743,069			8,738,663
Purchases		44,489			229,234
Less: Ending Inventory at cost		8,678,444			8,678,444
Cost of Goods Sold (COGS)		109,114			289,453
Gross Profit		213,156			253,044
Other Operating Income (Itemize)
Operating Expenses:
Payroll - Insiders		25,846			50,462
Payroll - Other Employees		109,498			348,478
Payroll Taxes		10,622			29,829
Other Taxes (Itemize)		2,703			8,133
Depreciation and Amortization		10,974			36,827
Rent Expense - Real Property		68,444			219,021
Lease Expense - Personal Property		1,039			1,790
Insurance		57,454			196,260
Real Property Taxes
Telephone and Utilities		4,502			21,085
Repairs and Maintenance		2,457			6,411
Travel and Entertainment (Itemize)		8,087			21,504
Miscellaneous Operating Expenses (Itemize)		52,580			55,316
Total Operating Expenses		354,207			995,118
Net Gain/(Loss) from Operations		(141,051	)		(742,074	)
Non-Operating Income:
Interest Income		31,583			103,172
Net Gain on Sale of Assets (Itemize)		0			0
Other (Itemize)
Total Non-Operating income		31,583			103,172
Non-Operating Expenses:
Interest Expense		152,322			389,805
Legal and Professional (Itemize)		139,369			586,424
Other (Itemize)
Total Non-Operating Expenses		291,691			976,229
NET INCOME/(LOSS)		(401,159	)		(1,615,131	)
(Attach exhibit listing all itemizations required above)
Other Taxes
Tax - Property		841			2,792
Tax & License		1,862			5,341
Total Other Taxes		2,703			8,133
Travel & Entertainment
Travel Manufacturing		4,350			9,565
Travel G&A		3,737			11,824
Client Entertainment		0			116
Total Travel & Entertainment		8,087			21,504
Miscellaneous Operating Expenses
Cost of Sales Std		(40,228	)		(132,808	)
COGS Samples/Demos		0			0
COGS Evaluation		0			846
COGS Replacement		15,954			31,154
COGS Field Service		561			1,610
COGS Product Exchange		1,311			3,388
COGS Returns/Allowances		0			0
Purchase Price Var...		170			242
Std. Cost Variance...		5,987			12,254
Manuf Clearing.INDUS.		28,070			13,226
Freight In ..........		653			951
Set Up/Rush Charges		260			335
Scrap (Obsolete).....		0			4,182
Physical Inv. Adj....		0			(718	)
Rework		900			900
Part Number Changes..		0			(730	)
Temporary..		0			0
Consultants		3,455			6,140
401K Employer Match..		352			1,093
Employee Business Exp.		420			1,599
Service Tech Supplies		0			0
Manufacturing Supplies		0			407
Shop Supplies		1,935			13,384
Packaging Supplies		1,066			1,066
Postage..		29			187
R&M Automobile		0			1,373
Other/Misc. Expense		2,392			2,680
Printing/Copying		25			25
Sustaining Engineering		1,043			2,813
Work Ctr Applied IndS		(0	)		(5	)
Commissions Employee		1,364			1,854
Consultant		20,210			68,478
401K Employer Match		298			945
Employee Welfare		0			494
Janitorial Sup & Serv		0			0
Supplies - Office		0			161
Supplies - Computer		0			630
Postage		0			200
Online Services		250			975
Bank Charges		1,017			3,855
Other O/S Svcs		0			250
Public Company Expens		1,510			3,191
Research & Development - JC		0			281
Commission - Rep		0			986
Selling		16			28
Warranty/Customer Repair		1,570			3,405
Freight Out		4,412			10,355
Freight Collected		(2,446	)		(6,464	)
Marketing		25			100
Total Miscellaneous Operating Expenses		52,580			55,316
Legal and Professional
Other Prof Expense		0			2,000
Audit & Accounting		13,000			41,600
Legal Compliance		126,369			542,824
Total Legal and Professional		139,369			586,424

Page 17 of 19

X. BALANCE SHEET

(ACCRUAL BASIS ONLY)

				9/30/2005
ASSETS	Current Month End
Current Assets:
Unrestricted Cash		330,175
Restricted Cash		1,269
Accounts Receivable		466,051
Inventory		6,729,100
Notes Receivable		0
Prepaid Expenses		403,457
Other (Itemize)		4,030,752
Total Current Assets					11,960,804
Property, Plant, and Equipment		4,238,241
Accumulated Depreciation/Depletion		(4,130,145	)
Net Property, Plant, and Equipment					108,096
Other Assets (Net of Amortization):
Due from Insiders
Other (Itemize)		6,443,304
Total Other Assets					6,443,304
TOTAL ASSETS					18,512,204
LIABILITIES
Post-petition Liabilities:
Accounts Payable		162,009
Taxes Payable		19,782
Notes Payable		1,566,667
Professional fees		283,633
Secured Debt
Other (Itemize)		350,964
Total Post-petition Liabilities					2,383,055
Pre-petition Liabilities:
Secured Liabilities		7,920,313
Priority Liabilities		54,481
Unsecured Liabilities		7,567,410
Other (Itemize)
Total Pre-petition Liabilities					15,542,204
TOTAL LIABILITIES					17,925,259
EQUITY:
Pre-petition Owners’ Equity		2,202,077
Post-petition Profit/(Loss)		(1,615,131	)
Direct Charges to Equity
TOTAL EQUITY					586,946
TOTAL LIABILITIES & EQUITY					18,512,204
Other Current Assets
Investor Receivable		3,945,372
Vendor Advance - Current Asset		18,843
Deposits		64,037
Employee Advance		2,500
Total Other Current Assets		4,030,752
Other Assets (Net of Amortization)
Patents		1,228,061
Amort Patents		(798,364	)
Patents In Progress		76,472
Long Term Deposits		486,106
Long Term Investments		286,061
Investment in Subs		5,156,386
Suspense		8,583
Total Other Assets (Net of Amortization)		6,443,304
Other Post-Petition Liabilities
Accrued Interest		221,516
Accrued Payables		98,498
Accrued Payroll		30,950
Total Other Post-Petition Liabilities		350,964

Page 18 of 19

XI. QUESTIONNAIRE

AURA SYSTEMS, INC.

CHAPTER 11 BANKRUPTCY CASE NO. LA-05-24550-SB

	30-Sep-05
		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If "Yes", explain below:	X
		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If "Yes", explain below:	X
3.	State what progress was made during the reporting period toward filing a plan of reorganization Negotiation with DIP lenders regarding exit strategy
	Finalization of Reorganization in processes to be submitted to the court October 3, 2005
4.	Describe potential future developments which may have a significant impact on the case:
	Increase in sales; DIP financing milestones met and additional funds received and exit financing
5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
	None
		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If "Yes", please set forth the amounts and sources of the income below.	X
I,	Sandra Ferro
	declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date Principal for debtor-in-possession

Page 19 of 19