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Organization and Operations
12 Months Ended
Feb. 28, 2021
Accounting Policies [Abstract]  
ORGANIZATION AND OPERATIONS

NOTE 1 – ORGANIZATION AND OPERATIONS


Aura Systems, Inc., (“Aura”, “We” or the “Company”) a Delaware corporation, was founded to engage 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. During the fiscal years ended February 28, 2021 and February 29, 2020, the Company incurred net profit of approximately $0.8 million and a loss of approximately $2.6 million, respectively, and had negative cash flows from operating activities of $1.9 million and $0.8 million, respectively. The net profit of $0.8 million in Fiscal 2021 is attributed to recognizing non-operating income associated with the cancellation of certain liabilities due the expiration of the statute of limitations of approximately $3.6 million. In the event the Company is unable to generate profits and is unable to obtain financing for its working capital requirements, it may have to curtail its business further or cease business altogether. These factors raise substantial doubts about the Company’s ability to continue as a going concern.


Substantial additional capital resources will be required to fund continuing expenditures related to our research, development, manufacturing and business development activities. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis, to retain its current financing, to obtain additional financing, and ultimately to attain profitability.


During the next twelve months we expect to increase the Company’s operations and focus on the sale of our AuraGen®®/VIPER products both domestically and internationally and to add to our existing management team. In Fiscal 2021, we completed our relocation of our operations and administrative offices to a new location (see Note 8, Leases), rebuild the engineering and sales teams, and to the extent appropriate, utilize third party contractors to support the operation. We anticipate being able to obtain new sources of funding to support these actions in the upcoming Fiscal year.