Aura Systems, Inc. Business Summary

Company Overview

• Founded: 1987
• Legal Structure: Delaware corporation
• Headquarters: 20431 North Sea, Lake Forest, CA 92630

Core Technology

• Specializes in: Axial Flux Induction motors and generators (AAFIM technology)
• Innovations:
  • No permanent magnets, no rare earth elements
  • Smaller, lighter, highly efficient
  • Uses copper and steel (less than 60% of copper compared to traditional motors)
  • Highly reliable, no scheduled maintenance
• Development Investment: Over $150 million in electromagnetic research and development

Market and Applications

• Industrial Electric Motor Market:
  • Estimated growth from USD 113.3 billion in 2020 to USD 169.1 billion by 2026
  • Typical industrial applications include compressors, fans, blowers, heavy-duty equipment, HVAC, pumps, and machine tools
• Electric Vehicle (EV) Market:
  • Over 100 million electric motors expected to be used annually by 2032
  • Supports EV propulsion systems with efficiencies equal to or higher than permanent magnet motors
  • Advantages over PM motors: Larger operating temperature range, lower cost, more robustness, higher reliability, no dependency on China-sourced rare earth magnets
• Mobile Power Generation:
  • Used in military combat zones and by US military in Iraq and Afghanistan
  • Over 11,000 systems shipped (5-15 kW range), including more than 3,000 for military applications
  • Small, lightweight, high efficiency, and environment-friendly
• Other Applications:
  • Marine and boat propulsion, wind turbines, transportation refrigeration, and stationary power sources for cell towers

Key Product Lines

• AuraGen ®: Mobile induction power systems for industrial, commercial, and defense markets
• VIPER: Military-grade axial flux induction generator
• Motors: 250-kW prototype for EV applications, 10 kW mobile power generator, smaller 10 W and 5 HP motors for pumps and irrigation
• Generators: 250-kW axial flux induction generator, air-cooled and oil-cooled versions

Market Position

• Unique Selling Points:
  • Does not rely on rare earth magnets
  • High efficiency (over 97% for certain applications)
  • Smaller, lighter, and more cost-effective than competing PM and radial flux motors
  • Suitable for harsh environments (operates between -40°F to 340°F)
  • Environmentally friendly; less resource-intensive

Customers and Revenue

• Major Customer: CBOL (accounted for 55% of revenue in FY 2025 and FY 2024)
• Number of Employees: 12 full-time employees
• Stockholders: Approximately 3,425 stockholders as of March 2025
• Revenue (FY 2025): Approximately $50,000
• Financial Condition:
  • Net loss of about $21.1 million in FY 2025
  • Negative cash flow of about $3.2 million in FY 2025
  • Stockholders' deficit of approximately $37.6 million as of February 28, 2025

Intellectual Property & Development

• Patents: 78 patents in electromagnetic and electro-optical technologies; filed 3 new patent applications in FY 2025
• R&D Expenses: ~$1.2 million in FY 2025

Regulatory & Industry Aspects

• Regulations: Subject to laws affecting employment, IP, import/export, environmental, health, and safety
• Environmental Impact: Environmentally friendly compared to legacy systems, with fewer raw materials used and no reliance on China-sourced rare earths

Summary

Aura Systems, Inc. develops and commercializes advanced axial flux induction motors and generators that offer high efficiency, robustness, and cost savings, with applications spanning industrial machinery, electric vehicles, and military mobile power systems. Despite performing minimal revenue (~$50k FY 2025) and incurring significant losses, the company holds a large patent portfolio and aims to grow in markets demanding reliable, magnet-free, environmentally conscious electric motor solutions.