AURA SYSTEMS INC
AI Executive Summary
AI-powered analysis of 10-Q filing content
Aura Systems shows severe financial deterioration with cash reserves of only $27K, a shareholders' deficit that widened to $(53.6)M from $(44.8)M, and a net loss of $8.4M (nearly 3x prior year quarter) driven largely by a $7.0M non-cash change in derivative liability fair value. Revenue collapsed to just $2K from $185K year-over-year, and multiple debt instruments including convertible notes ($1.49M) and related-party convertible notes ($12.3M) remain past due, indicating a company facing acute liquidity and going concern risk.
Red Flags Detected (9)
Cash on hand of only $27K against total current liabilities of $54.0M
Revenue collapsed 99% year-over-year from $185K to $2K
Derivative liability ballooned to $31.0M from $22.8M in one quarter (36% increase)
6 more red flags detected
Key Takeaways
Company has negligible cash ($27K) relative to $54M+ in current liabilities, indicating imminent liquidity crisis
Multiple related-party and third-party debts remain in default status (past due)
3 more takeaways
Filing Overview
What This Means
High Risk Filing: This company is showing signs of financial stress or significant operational challenges.
Deteriorating Trend: Conditions are worsening compared to previous filings. This may create opportunities for service providers.
Quarterly Report: Interim filing with unaudited financial data for the quarter.