AUSI — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-10

• During Fiscal 2018, the Company signed a joint venture agreement with a Chinese company to build, service and distribute AuraGen® mobile power products in China. Under the Jiangsu Shengfeng joint venture agreement, the Chinese partner owns 51% of the joint venture and the Company owns 49%. The Compa…

• As of February 28, 2026, the unpaid balance of $700,000 was reported as part of notes payables – related party in the accompanying financial statements. The $700,000 advance payment was from the JV of which Aura owned 49%). During Fiscal 2020, the Company recorded an impairment expense of $250,000 t…

• In fiscal 2026 the Company completed the design of 1.5 kW, 3.75 kW, a new 10 and second generation of 250 kW motors and generators of its axial flux induction technology. In the first 6 months of 2026 the Company also designed a 50kW solution consisting of 40 kW of AC power and 10kW of DC power, as …

• 8 Identification of Technoeconomic Opportunities with the Use of Premium Efficiency Motors as Alternative for Developing Countries -Julio R. Gómez etc. Published: October 16, 2020

• Emil recently claims to have developed an axial flux induction motor for EV applications.

Text removed vs the prior filing · source: 10-K · 2025-06-13

• The industrial electric motor market is expected to grow from an estimated USD 113.3 billion in 2020 to USD 169.1 billion by 2026, at a CAGR of 6.9% during the forecast period2.

• During Fiscal 2018 and Fiscal 2019, the Company’s engineering, manufacturing, sales, and marketing activities were reduced while we focused on renegotiating numerous financial obligations. During this time, the Company’s agreements with numerous customers, third party vendors, and organizations and …

• Also, during Fiscal 2018, the Company signed a joint venture agreement with a Chinese company to build, service and distribute AuraGen® mobile power products in China. Under the Jiangsu Shengfeng joint venture agreement, the Chinese partner owns 51% of the joint venture and the Company owns 49%. The…

• As of February 29, 2024, the unpaid balance of $700,000 was reported as part of notes payables – related party in the accompanying financial statements. The $700,000 advance payment was from the JV of which Aura owned 49%). During Fiscal 2020, the Company recorded an impairment expense of $250,000 t…

• In fiscal 2025 the Company completed the design and fabrication of an oil cooled 250 kW electric motor prototype using axial flux induction and completed the design for a 250-kW air cooled generator using axial flux induction. In addition, the Company filed 3 new patent applications related to an ax…

Text added vs the prior filing · source: 10-K · 2026-09-10

• We will need additional capital in the future to meet our obligations, and financing may not be available. During Fiscal 2026 and Fiscal 2025, the Company increased its engineering and manufacturing activities, but it still struggled with meeting its financial requirements. If we cannot obtain addit…

• For Fiscal 2026 and Fiscal 2025, we had approximately $3.2 million negative and $3.2 million negative cash flows from operations, respectively. The Company’s engineering and manufacturing activities remained limited due to our inability to increase sales and raise significant amounts of new financin…

• On February 28, 2026, we had total liabilities of $46.2 million, of which $22.8 million was due to a derivative liability related to debt conversion rights to a related party. The current liability portion was $45.4 million, of which $22.8 million was due to a derivative liability related to debt co…

• The Company may not have sufficient authorized shares of common stock to satisfy the full conversion of its outstanding convertible securities.

• As described in Notes 6, 7, and 13 to the financial statements, the number of shares of common stock potentially issuable upon conversion of the Company’s outstanding convertible notes, and the exercise of options and warrants, currently exceeds the number of authorized but unissued shares of common…

Text removed vs the prior filing · source: 10-K · 2025-06-13

• As a result of the COVID-19 pandemic, global vehicle production has decreased, and some manufacturers have completely shut down manufacturing operations in some countries and regions, including the United States and Europe. As a result, we have experienced, and are likely to continue to experience, …

• We will need additional capital in the future to meet our obligations and financing may not be available. During Fiscal 2025 and Fiscal 2024, the Company increased its engineering and manufacturing activities, but it still struggled with meeting its financial requirements. If we cannot obtain additi…

• As a result of our operating losses, we have largely financed our operations through sales of our equity securities. Beginning with Fiscal 2017, the Company significantly reduced its engineering, manufacturing, sales, and marketing activities to focus on renegotiating numerous financial obligations …

• On February 28, 2025, we had total liabilities of $39.0 million, of which $17.6 million was due to a derivative liability related to debt conversion rights to a related party. The current liability portion was $38.4 million, of which $17.6 million was due to a derivative liability related to debt co…

Text added vs the prior filing · source: 10-K · 2026-09-10

• Between July 2017 and March 2022, the Company was engaged in litigation with a former director, Robert Kopple, relating to debt and warrants, which Mr. Kopple and his affiliated entities (collectively the “Kopple Parties”) claimed should have been originally issued to them pursuant to various agreem…

• In March 2024, the Company and Kopple again amended the note payable. The amendment (i) replaced the requirement to pay the $3,850 past due principal balance with the requirement to pay $2,000 due December 15, 2024, effectively extending the payment of $1,850 to future periods; (ii) increased the st…

Text removed vs the prior filing · source: 10-K · 2025-06-13

• In 2017, the Company’s former COO was awarded approximately $238 in accrued salary and related charges by the California labor board. In August 2021, the Company reached a settlement by which the Company agreed to pay approximately $330, representing the principal award plus accrued interest. In fis…

• During the year ended February 29, 2024, the note was amended multiple times to extend the payment dates of the balance of the initial payment of $2,850, originally due in June 2022, and the first installment payment of $1,000, originally due in June 2023 (collectively, the “past due principal”). As…

• In March 2024, the Company and Kopple again amended the note payable. The amendment (i) replaced the requirement to pay the $3,850 past due principal balance with the requirement to pay $2,000 due December 15, 2024, effectively extending the payment of $1,850 to future periods; (ii) increased the st…

• In June 2022, Melvin Gagerman, the Company’s former CEO and CFO whose employment with Aura was permanently terminated in July 2019, brought suit against the Company for repayment of an allegedly unsecured demand promissory note in the principal amount of $82 which he claims was entered into in April…

Text added vs the prior filing · source: 10-K · 2026-09-10

• We recently completed the design for 1.5, 3.75 kW a new 10 kW and second generation of 250 kW machines for both electric motor and generator applications. We also currently designed a 50 kW and a new 5 kW machines for specific military applications. We are also currently in discussions for usage of …

• Cost of goods sold was $25,000 for Fiscal 2026, compared to $29,000 for Fiscal 2025. This resulted in a gross profit of $253,000 for Fiscal 2026, compared to gross profit of $21,000 for Fiscal 2025. The increase in gross profit was due to the increase in net revenue.

• Interest expense increased by $0.4 million to $2.2 million for Fiscal 2026, as compared to $1.8 million for Fiscal 2025. The Company estimated the fair value of the conversion option derivative liability using a Black-Scholes option pricing model and recorded the change in fair value of the derivati…

Text removed vs the prior filing · source: 10-K · 2025-06-13

• We recently completed a 250-kW electric motor prototype based on our axial flux induction for EV applications. This activity is in conjunction with a large European tier 1 automotive supplier interest and inputs. We also completed the design for a 250-kW generator based on our axial flux induction t…

• Cost of goods sold was $29 for Fiscal 2025, compared to $193 for Fiscal 2024. This resulted in a gross profit of $21 compared to a gross loss of $137 for Fiscal 2024. The gross loss and related gross margin for Fiscal 2024 were largely influenced by the low volume of shipments, which reduced our abi…

• Interest expense increased by $345 to $1,810 for Fiscal 2025, as compared to $1,465 for Fiscal 2024. During Fiscal 2025, the Company recorded a gain on debt settlement of $179 and a loss on debt extinguishment of $19,324 (see Notes 7 and 9 of the accompanying financial statements), both of which did…