AURA SYSTEMS INC

Aura Systems, Inc.

Business focus

Aura develops and commercializes axial flux induction electric motor and generator technology (AAFIM). The company states its designs use no permanent magnets or rare earth elements, relying instead on copper and steel with aluminum housings. Products target industrial motors and mobile power generation, including applications in electric vehicles (EVs), industrial equipment, and military/mobile power systems.

Core technologies and products

• Axial Flux Induction Motors and Generators: Magnet-free designs intended to be compact, lightweight, energy-efficient, and low maintenance with reduced copper usage.
• AuraGen® / VIPER product family: Portable and mobile power solutions that can operate as generators or motors and integrate into vehicles and boats. Claimed advantages include low maintenance, AC and DC output capability, smaller footprint, lower material cost (copper savings roughly 60% in some examples), and reduced environmental impact.
• Design and prototype milestones (fiscal 2026):
  • Completed designs for 1.5 kW, 3.75 kW, 10 kW, and a second-generation 250 kW motor/generator.
  • Designed a 50 kW solution (AC 40 kW + DC 10 kW) and a 5 kW solution (AC 2.5 kW + DC 2.5 kW) with power spike handling up to 2.5 kW for military evaluations.
  • Prototypes include a 250 kW axial flux motor (oil-cooled) and a 250 kW generator (air-cooled) with a 5,000 rpm base speed and motor capability up to 20,000 rpm. There is international customer interest (examples cited: Israel, South Korea).
• Shipments and deployments: More than 11,000 axial flux induction machines in the 5–15 kW range have been shipped, with over 3,000 of those systems deployed for military applications.

Markets and applications

• Industrial motors: compressors, fans, HVAC, pumps, machine tools, and related equipment.
• Electric vehicles and propulsion: EV motors positioned as equal to or better than permanent-magnet machines in efficiency, with broader operating temperature range and higher reliability.
• Mobile power generation and auxiliary power units (APUs): integration into vehicles and boats for compact, efficient, low-maintenance power.
• Military and defense: generators and motors for UAV/UGV platforms, ATVs, and other platforms; VIPER terminology is used for military generator applications.

Competitive landscape

Aura competes with traditional radial flux induction motors and permanent-magnet (PM) based motors. Large incumbents referenced include Nidec, ABB, Siemens, WEG, Regal Beloit, Wolong, and Teco Westinghouse. Niche axial flux players that use PMs include YASA, EVO, Magnax, and Phi Power. Aura emphasizes a magnet-free design, smaller size and weight, material and copper savings, no dependence on rare earths, and practical cooling and ventilation approaches.

Manufacturing and operations

• Manufacturing: In-house capabilities are limited for AuraGen components; the company relies on third-party manufacturers for major subassemblies.
• Raw materials: Steel, copper, and aluminum are purchased domestically from multiple sources where possible. The company does not report long-term supply contracts.
• Facilities: Approximately 18,000 square feet in Lake Forest, California. Original lease term began February 2021 with base rent of $24,239/month and a 3% annual escalator; the lease was extended in June 2026 for two additional years.
• Tooling: Expanding the product line will require significant tooling investments; current tooling constraints limit product breadth.

Employees and contractors

Twelve full-time employees cover research and development, sales, operations, and administration (as of the filing date). The company engaged three independent contractors for engineering development in fiscal 2026.

Intellectual property

Historically, the company has held about 78 patents in electromagnetic and electrooptical technologies. In fiscal 2025, Aura filed three U.S. patent applications related to higher-current-density windings and novel cooling systems. The patent strategy layers core patents with application-specific filings, while certain rotor fabrication details are retained as trade secrets.

Financial highlights

• Net loss: $10.9 million for the year ended February 28, 2026.
• Cash flow: Net cash used in operations of $3.2 million in fiscal 2026 and $3.2 million in fiscal 2025.
• Balance sheet and liabilities:
  • Stockholders’ deficit: $44.8 million as of February 28, 2026.
  • Notes payable and accrued interest: aggregate balance of $5.2 million outstanding and past due.
  • Total liabilities: $46.2 million as of February 28, 2026; current liabilities were $45.4 million. A derivative liability related to debt conversion rights to a related party totaled $22.8 million.
  • Fiscal 2025 comparatives: total liabilities $39.0 million; current liabilities $38.4 million; derivative liability $17.6 million.
• Audit and liquidity: The independent auditor included an explanatory paragraph expressing substantial doubt about the company’s ability to continue as a going concern. Management has indicated dependence on raising additional capital and improving operating cash flow to address liquidity needs.
• R&D expenses: Approximately $1.6 million in fiscal 2026 and $1.2 million in fiscal 2025.
• Litigation and settlements: The company has been involved in prior litigation with a former director and stockholders; related settlements included warrants and a note payable arrangement.
• Customer concentration: One customer, CBOL, accounted for 55% of revenues in both fiscal 2026 and fiscal 2025.

Recent developments and focus (Fiscal 2026)

• Completed designs across multiple power levels and advanced prototype work for the 250 kW class.
• Developed 50 kW and 5 kW solutions aimed at military evaluations; first units planned for customer testing.
• Continued interest from international markets for higher-power concepts.
• Continued emphasis on AuraGen systems for integration into existing platforms because of claimed environmental and efficiency benefits.

Other operational notes

The company faces sizable debt and liquidity challenges that may be affected by rising interest rates and inflation. There is material customer concentration risk due to reliance on CBOL for a majority of revenue.

Summary

Aura Systems positions itself as a developer of magnet-free axial flux motors and generators with an established shipment record in the 5–15 kW range and ongoing prototype work up to 250 kW. The company highlights compact, efficient, and low-maintenance designs for industrial, EV, mobile power, and defense markets. At the same time, Aura faces liquidity constraints, debt obligations, and customer concentration that require additional capital and improved operating cash flow.