SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    Form 10-Q


                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


For the Quarter Ended August 31, 2001             Commission File Number 0-17249

                               AURA SYSTEMS, INC.
             (Exact name of Registrant as specified in its charter)

            Delaware                                 95-4106894
  (State or other jurisdiction          (I.R.S. Employer Identification No.)
of incorporation or organization)

                                2335 Alaska Ave.
                          El Segundo, California 90245
                    (Address of principal executive offices)

Registrant's telephone number, including area code:           (310) 643-5300

Former name, former address and former fiscal year, if changed
since last report: None


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days: YES X NO


         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the latest practicable date.

                  Class                       Outstanding at October 12, 2001
                  -----                       -------------------------------

         Common Stock, par value                    334,340,109 Shares
             $.005 per share


<PAGE>


<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                                      INDEX



                                                                                                      Page No.

<S>                                                                                                     <C>
PART I.       FINANCIAL INFORMATION

         ITEM 1.     Financial Statements

                     Statement Regarding Financial Information                                            2

                     Condensed Consolidated Balance Sheets as of August 31, 2001                          3
                     and February 28, 2001

                     Condensed Consolidated Statement of Operations for the Three Months and Six          4
                     Months Ended August 31, 2001 and 2000

                     Condensed Consolidated Statements of Cash Flows for the Six Months Ended             5
                     August 31, 2001 and 2000

                     Notes to Condensed Consolidated Financial Statements                                 6

         ITEM 2.     Management's Discussion and Analysis of Financial Condition and Results of           8
                     Operations


PART II. OTHER INFORMATION

         ITEM 1.      Legal Proceedings                                                                   11

         ITEM 2.      Changes in Securities                                                               11

         ITEM 4.      Submission of Matters to a Vote of Security Holders                                 11

         ITEM 6.      Exhibits and Reports on Form 8-K                                                    12

SIGNATURES                                                                                                13
</TABLE>




<PAGE>




                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                          QUARTER ENDED AUGUST 31, 2001

                          PART I. FINANCIAL INFORMATION




The  financial  statements  included  herein have been prepared by Aura Systems,
Inc. (the  "Company"),  without audit,  pursuant to the rules and regulations of
the Securities and Exchange  Commission (the "SEC").  As contemplated by the SEC
under Rule 10-01 of Regulation S-X, the  accompanying  financial  statements and
footnotes  have been  condensed  and  therefore  do not contain all  disclosures
required by  generally  accepted  accounting  principles.  However,  the Company
believes that the disclosures are adequate to make the information presented not
misleading.  These financial  statements  should be read in conjunction with the
financial statements and notes thereto included in the Company's Form 10-K/A for
the year ended February 28, 2001 as filed with the SEC (file number 0-17249).



<PAGE>

<TABLE>
<CAPTION>

                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

Assets                                                                          August 31,              February 28,
------
                                                                                   2001                    2001*
                                                                                   ----                    -----

<S>                                                                          <C>                          <C>
Current assets:
Cash and equivalents                                                          $       169,122              $1,265,912
Receivables-net                                                                     1,409,721               1,062,041
Inventories-net                                                                    10,358,989               9,756,399
Notes receivable                                                                    1,412,196               1,405,857
Other current assets                                                                  687,463                 452,940
                                                                              ---------------            ------------

       Total current assets                                                        14,037,491              13,943,149
                                                                                -------------              ----------

Property and equipment, at cost                                                    39,977,231              41,289,011
Less accumulated depreciation
     and amortization                                                             (22,250,689)            (20,966,852)
                                                                              ----------------            ------------

Net property and equipment                                                         17,726,542              20,322,159

Long term investments                                                               1,883,835               1,883,835
Long term receivables                                                               2,433,425               2,516,139
Patents and trademarks- net                                                         3,216,097               3,370,263
Other assets                                                                        3,237,950               3,242,498
                                                                                 ------------              ----------
      Total                                                                      $ 42,535,340             $45,278,043
                                                                                 ============             ===========

Liabilities and Stockholder's Equity

Current liabilities:
Notes payable                                                                 $     6,865,985             $14,300,594
Accounts payable                                                                    3,764,351               3,463,146
Accrued expenses                                                                    1,898,379               1,284,754
                                                                                  -----------             -----------

Total current liabilities                                                          12,528,715              19,048,494
                                                                                   ----------              ----------

Notes payable and other liabilities                                                22,378,288              24,184,514

COMMITMENTS AND CONTINGENCIES
Stockholders' equity
    Common  stock par value  $.005  per share and  additional  paid in
    capital.   Issued  and  outstanding  326,068,001  and  291,089,582
    shares respectively.                                                          278,511,675             264,787,864
    Accumulated deficit                                                          (270,883,338)           (262,742,829)
                                                                                 -------------          -------------

       Total stockholders' equity                                                   7,628,337               2,045,035
                                                                               --------------            ------------
       Total                                                                     $ 42,535,340            $ 45,278,043
                                                                                 ============            ============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

*Amounts  at  February  28,  2001  have  been  derived  from  audited  financial
statements.

<PAGE>
<TABLE>
<CAPTION>



                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               THREE AND SIX MONTHS ENDED AUGUST 31, 2001 AND 2000
                                   (Unaudited)


                                                            Three Months                            Six Months

                                                             2001               2000               2001              2000
                                                             ----               ----               ----              ----

<S>                                                      <C>                <C>              <C>                   <C>
Net Revenues                                             $ 863,273          $ 386,885        $ 3,737,842           $ 768,406

     Cost of goods                                         313,174            217,162          1,753,797             519,483
                                                           -------            -------          ---------             -------

Gross Profit                                               550,099            169,723          1,984,045             248,923

Expenses

     Engineering expenses                                2,251,713          2,249,651          4,552,998           4,550,936
     Selling, general and administrative                 3,307,802          4,676,896          5,562,263           6,748,012
     Research and development                              239,403             53,903            511,209              85,951
                                                        ----------        -----------       ------------         -----------

     Total costs and expenses                            5,798,918          6,980,450         10,626,470          11,384,899
                                                         ---------          ---------         ----------          ----------

 Loss from operations                                   (5,248,819)        (6,810,727)        (8,642,425)        (11,135,976)

Other (income) and expense

     (Gain) loss on disposition of assets                        -                  -           (399,189)         (1,756,746)
     Other (income)                                        (44,250)          (891,227)          (188,502)         (1,454,628)
     Legal settlements                                     400,000            309,811           (750,000)            352,962
     Interest expense-net                                  430,242            497,009            835,775           1,059,022
                                                        ----------         ----------          ---------           ---------

Net loss                                               $(6,034,811)       $(6,726,320)       $(8,140,509)        $(9,336,586)
                                                       ============       ============       ============        ============

Net loss per common
share-basic                                          $         (.02)    $         (.03)    $         (.03)    $         (.04)
                                                      ==============     ==============     ==============     ==============

Weighted average shares used to
compute net loss  per share                            320,872,132        250,037,915        310,736,279         243,572,557
                                                       ===========      =============      =============      ==============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.


<PAGE>

<TABLE>
<CAPTION>

                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE SIX MONTHS ENDED AUGUST 31, 2001 AND 2000
                                   (Unaudited)

                                                                             2001                     2000
                                                                             ----                     ----

<S>                                                                        <C>                       <C>
Net cash used in operations                                                $(6,104,484)              $(5,820,796)
                                                                           ------------              ------------

Cash flows from investing activities:

Proceeds from sale of assets                                                   399,189                    64,311
Additions to property and equipment                                           (188,219)                   (5,918)
Note receivable                                                                 76,375                 1,261,395
                                                                       ---------------              ------------

Net cash provided by investing activities                                      287,345                 1,319,788
                                                                          ------------              ------------

Cash flows from financing activities:

Repayment on line of credit                                                 (1,984,000)                 (200,000)
Repayment of debt                                                           (2,274,083)               (1,154,138)
Net proceeds from sale of stock                                              8,951,432                 6,153,600
Proceeds from exercise of warrants                                              27,000                         -
                                                                       ---------------                 ---------

Net cash provided by financing activities:                                   4,720,349                 4,799,462
                                                                          ------------                 ---------

Net increase (decrease) in cash                                             (1,096,790)                  298,454

Cash and cash equivalents at beginning of period                             1,265,912                   260,437
                                                                          ------------                ----------

Cash and cash equivalents at end of period                                   $ 169,122                 $ 558,891
                                                                             =========                 =========

Supplemental  disclosures of cash flow  information  Cash paid during the period
       for:
              Interest                                                       $ 885,033                 $ 997,108
              Income Tax                                                             0                         0
                                                                           ===========                 =========
</TABLE>

     Supplemental disclosure of noncash investing and financing activities:

In the six months ended August 31, 2001,  $413,009 of notes  payable and accrued
interest were converted into 750,927 shares of the Company's  common stock.  The
Company also issued 10,765,220 shares of its common stock to satisfy liabilities
in the  amount of  $4,219,401.  In the six  months  ended  August  31,  2001,  a
settlement was reached resolving a dispute requiring  payments totaling $400,000
over a period of 40 months. As of August 31, 2001, an initial payment of $10,000
has been made,  which is included above,  with the next payment due upon signing
of final documents. In the six months ended August 31, 2000, $1,125,000 of notes
payable plus accrued  interest of $10,603 was converted into 3,542,411 shares of
the Company's  common  stock.  The Company also issued  3,246,724  shares of its
common stock to satisfy  liabilities in the amount of $990,012.  Effective March
1, 2000, the Company sold the assets of its Ceramics subsidiary for $3.5 million
in the  form of a note  receivable  of $2.5  million,  a cash  down  payment  of
$64,311,  included  above,  and the  payment  of  $800,000  to third  parties in
satisfaction of liabilities and an additional $100,000 payment on June 1, 2000.

     See accompanying notes to condensed consolidated financial statements.


<PAGE>


                               AURA SYSTEMS, INC.
                         NOTES TO CONDENSED CONSOLIDATED
                              FINANCIAL STATEMENTS
                                   (Unaudited)

1)   Basis of Presentation

     The condensed  consolidated  financial  statements  include the accounts of
Aura Systems,  Inc. ("the Company") and subsidiaries from the effective dates of
acquisition.  All material inter-company balances and inter-company transactions
have been eliminated.  In the opinion of management,  the accompanying condensed
consolidated  financial  statements  reflect all adjustments (which include only
normal recurring adjustments) and reclassifications for comparability  necessary
to present  fairly the financial  position of Aura  Systems,  Inc. at August 31,
2001 and the results of its operations for the three and six months ended August
31, 2001 and 2000.

     The  preparation  of financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect  the  reported  amount of assets and  liabilities  and
disclosure of contingent  assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses during the reported
period. Actual results could differ from those estimates.

     In  connection  with the audit for the year ended  February  28,  2001,  we
received  a report  from  our  independent  certified  public  accountants  that
includes  an  explanatory  paragraph  describing  uncertainty  in our ability to
continue as a going concern.  Our  consolidated  financial  statements  included
herein  contemplate  our  ability to  continue  and as such do not  include  any
adjustments that might result from this uncertainty.

2)   Capital

     In the six months ended August 31, 2001, common stock outstanding increased
by a total of  34,978,419  shares as  follows:  22,596,327  shares were sold for
gross  proceeds  of  $9,139,312,  an  additional  776,623  shares were issued as
finders fees for private placements,  warrants were exercised for 100,000 shares
resulting  in  proceeds  of  $27,000,  10,754,542  shares were issued to satisfy
liabilities  in the amount of  $4,219,401  and  750,927  shares were issued upon
conversion of $413,009 of notes payable and accrued interest.

3)   Inventories

     Inventories,  stated at the lower of cost (first in,  first out) or market,
consist of the following:

                                                   August 31,       February 28,
                                                       2001               2001
                                                       ----               ----

Raw materials                                    $ 3,272,725       $  3,516,826
Finished goods                                     7,377,668          6,530,977
Reserved for potential product obsolescence         (291,404)          (291,404)
                                              --------------     --------------
                                                $ 10,358,989       $  9,756,399
                                                ============        ============

     Inventories  consist  primarily of components  and completed  units for the
Company's  AuraGen  product.  The reserve  for  potential  product  obsolescence
consists solely of parts for the Company's actuator products.

     Significant Customers

     In the six months ended August 31, 2001,  the Company sold AuraGen  related
products to five significant customers for a total of approximately $3.3 million
or 89% of net  revenues.  None of these  customers  are related to or affiliated
with the Company.


4)   Contingencies

     The Company is engaged in various legal  actions.  See the  Company's  Form
10-K/A,  Item 3 - Legal  Proceedings,  for the year ended  February  28, 2001 as
filed with the SEC (file number 0-17249) for a description of the legal actions.
To the extent that judgment has been  rendered,  appropriate  provision has been
made in the financial statements.

     Excalibur v. Aura (Settled)

     On November 12, 1999, a lawsuit was filed by three  investors  against Aura
and others, in Los Angeles Superior Court entitled Excalibur Limited Partnership
v. Aura  Systems,  Inc.  (Case No.  BC220054),  arising out of two NewCom,  Inc.
financings  consummated in December 1998. The NewCom financings  comprised (1) a
$3 million investment into NewCom in exchange for NewCom Common Stock,  Warrants
for NewCom  Common Stock,  and certain  "Repricing  Rights"  which  entitled the
investors to receive  additional shares under certain  circumstances,  and (2) a
loan to NewCom of $1 million in exchange for a  Promissory  Note and Warrants to
purchase  NewCom Common Stock.  The Plaintiffs  alleged in their  complaint that
Aura breached its  agreements  and sought damages of not less than $4.5 million.
Aura alleged  cross-claims  against the  Plaintiffs,  contending that Plaintiffs
violated their  contractual  obligations to Aura by engaging in unlawful  "short
sales" of NewCom stock. Aura also asserted claims against Plaintiffs for damages
based on alleged breaches of Plaintiffs'  contractual obligations to Aura and on
Plaintiffs' alleged misrepresentations to Aura.

     On  October  2,  2001,  the  parties  entered  into a General  Release  and
Settlement  Agreement  ("Settlement"),  finally  resolving the entire matter. As
part of the  Settlement,  Aura  received  $2,000,000.  The  Plaintiffs  received
repricing shares sought as part of its underlying contract claims.

     Kerry Morgan, et. al. vs. NewCom, Inc. (Settled)

     In December  1999,  a lawsuit was filed  against  NewCom,  Inc.  which,  as
currently  amended also includes Aura Systems,  Inc.,  Steven Veen, Sultan Khan,
Asif Khan and Zvi Kurtzman,  Deutsche  Financial  Services,  Inc., Best Buy Co.,
Inc.,  Circuit City Stores,  Inc. a/k/a Compusa,  the Computer Super Store,  and
Staples,  Inc., in the Circuit Court for the County of Wayne  Michigan (Case No.
98-838563 CP). The plaintiff's sixth amended  complaint  purported to be a class
action on behalf of a class  alleged  to consist of  approximately  two  hundred
thousand persons who purchased a NewCom Inc., a/k/a Atlas  Peripherals  computer
product  from Best Buy Co.,  Inc.,  Circuit City Stores,  Inc.,  Computer  City,
and/or  Staples,  Inc. The complaint  alleged that  plaintiffs did not receive a
rebate of between twenty to fifty dollars on NewCom products,  as advertised and
promoted by the above mass retailer.  Plaintiffs  further  alleged that the mass
retailers without any  justification,  failed to pay NewCom for product received
and sold. The lawsuit named Aura primarily on the basis that Aura was the "alter
ego" of NewCom and sought unspecified  damages against Aura as well as the other
defendants.  The plaintiffs sought, among other remedies, to recover all or part
of the  amount  that the  retailers  failed to pay.  Circuit  City and  Deutsche
Financial  Services filed  cross-complaints.  No date for trial had been set. In
August 2001, based upon discussions of the parties under court supervision,  all
litigants entered into a settlement  Memorandum of Understanding  ("Settlement")
which limits the total Aura defendants  portion to $400,000,  payable in monthly
installments of $10,000 to the Plaintiffs.  The Settlement  still requires final
approval by the parties and the trial court, which is expected shortly.



<PAGE>


                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

     This Report may contain forward-looking  statements which involve risks and
uncertainties.  The  Company's  actual  results may differ  materially  from the
results  discussed in such  statements.  Certain factors could also cause actual
results  to differ  materially  from  those  discussed  in such  forward-looking
statements,  including  factors  discussed in the Company's  Form 10-K/A for the
period ended February 28, 2001, and factors discussed in this Report.

     Results of Operations

     Revenue for the three and six month periods ended August 31, 2001 increased
by $476,388 and  $2,969,436 to $863,273 and  $3,737,842  from the  corresponding
periods in the prior year. The increase in revenue is primarily  attributable to
expansion of the Company's customer base.

     Cost of goods for the three and six months ended August 31, 2001  increased
by $96,012 and $1,234,314 in comparison  with the  corresponding  periods in the
prior year as a result of the increase in sales discussed above.

     Selling,  general and administrative  costs decreased for the three and six
months by $1,369,094 and $1,185,749  respectively,  due primarily to a reduction
in legal  expenses of  approximately  $700,000 and a reduction of  approximately
$200,000 in accounting expenses in the current year periods.

     Included in engineering  expenses and selling,  general and  administrative
costs for the three and six months ended August 31, 2001,  is  depreciation  and
amortization  of $1.48 million and $2.95 million,  respectively,  as compared to
$1.7 million and $3.3 million in the prior year comparable periods.

     Research  and  development  costs for the three and six months ended August
31, 2001 increased by $185,500 and $425,258 as the Company  expanded its efforts
in developing  variations of the 5kW AuraGen,  such as the 8.5kW,  10kW, 12.5kW,
inverter/charger option and the 8" AuraGen.

     In the six months  ended August 31,  2001,  the Company  recorded a gain of
$399,189  on the sale of  assets  compared  to a gain of  $1,756,746  which  was
recorded  on the sale of the assets of its  ceramics  facility in the prior year
period.

     Other income for the six months ended August 31, 2001 consists primarily of
refunds of prior year legal  expenses and prior year NAFTA related  refunds.  In
the prior year period, other income consists primarily of settlement of accounts
payable of  approximately  $1.1  million,  reimbursement  of prior  period legal
expenses  of  approximately  $180,000,  and  insurance  claims  and  refunds  of
approximately $90,000.

     Legal  settlements  for the three and six months ended August 31, 2001 were
expenses of $400,000 and income of $750,000, respectively,  compared to expenses
of $309,811  and $352,962 in the prior year like  periods.  These costs can vary
substantially from period to period depending on when settlements are arrived at
and the level of ongoing legal activity  associated with the litigation that the
Company is involved in.

     Net  interest  expense  decreased  by $66,767 to $430,242  and  $223,247 to
$835,775  in the three and six months  ended  August 31, 2001 as a result of the
continued reduction of the Company's debt.

     Liquidity and Capital Resources

     At August 31, 2001,  the Company had cash of $169,122 as compared to a cash
balance of  $1,265,912  at  February  28,  2001.  Accounts  payable  and accrued
expenses increased by $914,830 from February 28, 2001.  Inventories increased by
$602,590, and accounts receivable increased by $347,680.

     Cash flows used in operations  increased by $283,688  compared to the prior
year six months. Working capital was $1,508,776 at August 31, 2001 compared to a
negative $5,105,345 at the Fiscal year ended February 28, 2001, with the current
ratio improving to 1.12:1 from 0.73:1 at February 28, 2001.

     In the six months ended  August 31, 2001,  the Company has reduced its debt
by  approximately  $8.65  million  through  a  combination  of cash pay downs of
approximately   $4.25  million  and  the  conversion  of  debt  into  equity  of
approximately $4.4 million.

     In the six months ended August 31, 2001, common stock outstanding increased
by a total of  34,978,419  shares as  follows:  22,596,327  shares were sold for
gross  proceeds  of  $9,139,312,  an  additional  776,623  shares were issued as
finders fees for private placements,  warrants were exercised for 100,000 shares
resulting  in  proceeds  of  $27,000,  10,754,542  shares were issued to satisfy
liabilities  in the amount of  $4,219,401  and  750,927  shares were issued upon
conversion of $413,009 of notes payable and accrued interest.

     In the past, the Company's cash flow generated from operations has not been
sufficient  to  completely  fund its working  capital  needs.  Accordingly,  the
Company has also relied  upon  external  sources of  financing  to maintain  its
liquidity.  In order to finance its existing operations it will be necessary for
the Company to obtain  additional  working  capital from external  sources.  The
Company is presently seeking additional sources of financing, including bank and
equity financing.  No assurances can be provided that these funding sources will
be  available  at the times and in the amounts  required.  The  inability of the
Company to obtain  sufficient  working  capital at the times and in the  amounts
required  would have a material  adverse  effect on the  Company's  business and
operations.

     For additional information regarding the Company's financial condition, see
the  Company's  Form  10-K/A,  Item  7-Management's  Discussion  and Analysis of
Financial  Condition and Results of Operations  for the year ended  February 28,
2001 as filed with the SEC (file number 0-17249).

     Forward Looking Statements

     The Company  wishes to caution  readers  that  important  factors,  in some
cases,  have  affected,  and in the future could affect,  the  Company's  actual
results and could cause the Company's actual consolidated  results for the third
quarter of Fiscal 2002, and beyond, to differ materially from those expressed in
any forward-looking statements made by, or on behalf of the Company.

     Such  factors  include,  but are not  limited to, the  following  risks and
contingencies:  changed  business  conditions in the industries  targeted by the
Company  and  the  overall  economy;   increased   marketing  and  manufacturing
competition  and  accompanying  price  pressures;  inefficiencies,   delays  and
increased  depreciation  costs in connection  with the start of  production  and
expansions.

     Relating  to  the  above  are  potential  difficulties  or  delays  in  the
development,  production,  testing and marketing of products, including, but not
limited to, a failure to ship new products and  technologies  when  anticipated.
Manufacturing  economies  may fail to  develop  when  planned,  products  may be
defective and/or customers may fail to accept them in the marketplace.

     In  addition  to the  above,  risks and  contingencies  may exist as to the
amount and rate of growth in the Company's  selling,  general and administrative
expenses,  and the impact of unusual items resulting from the Company's  ongoing
evaluation  of its business  strategies,  asset  valuations  and  organizational
structures.  The possibility of a single large system order to the Company could
entail fluctuating results from quarter to quarter.

     The effects of, and changes in, trade,  monetary and fiscal policies,  laws
and  regulations,   other  activities  of  governments,   agencies  and  similar
organizations,  and social and economic  conditions,  such as trade restrictions
impose yet other constraints on any company statements.  The events of September
11,  2001 and advent of a war on  terrorism  may or may not impact  sales in the
mobile power  business.  The cost and other effects of legal and  administrative
cases  and  proceedings  present  another  factor  which  may or may not have an
impact.




<PAGE>


PART II - OTHER INFORMATION


ITEM 1 Legal Proceedings

     For  information  regarding  pending legal  proceedings,  see Note 5 to the
Company's  Condensed   Consolidated  Financial  Statements  appearing  elsewhere
herein.


ITEM 2 Changes in Securities

     During the six months  ended  August 31,  2001,  the  Company  conducted  a
private  offering to a group of accredited  investors for the sale of 22,596,327
shares of common stock for total gross proceeds of approximately $9.1 million.

     During the six months  ended August 31, 2001,  the Company  issued  776,623
shares of common stock to two persons as finders fees for private placements.

     During the six months ended August 31, 2001,  750,927  shares of stock were
issued for the conversion of approximately $413,000 in notes and interest.

     During the six months ended August 31, 2001, the Company issued  10,754,542
shares  of  common  stock in  satisfaction  of  approximately  $4.2  million  in
liabilities.

     During the six months ended August 31, 2001, 100,000 shares of common stock
were issued upon exercise of outstanding warrants for total proceeds of $27,000.

     All of the foregoing transactions were exempt from registration pursuant to
Section 4(2) of the  Securities  Act of 1933 as these  offerings  were a private
placement to a limited number of accredited investors

ITEM 4 Submission of Matters to a Vote of Security Holders

     The Company's  2001 Annual Meeting of  Shareholders  was held on October 2,
2001. At the annual meeting each of the Company's nominees were elected to serve
as directors of the Company. The election results are as follows:
<TABLE>
<CAPTION>

                                                        For                  Withheld               Abstain

<S>                                                   <C>                     <C>                     <C>
            Zvi (Harry) Kurtzman                      223,220,767             23,628,732              729,361

            Stephen A. Talesnick                      246,731,136                 88,363              729,361

            Carl A. Albert                            246,107,715                711,784              729,361

            Harvey Cohen                              245,872,673                946,826              729,361

            Salvador Diaz-Verson, Jr.                 246,032,122                787,377              729,361

            Harry Haisfield                           246,111,275                708,224              729,361

            Neal Meehan                               246,105,732                713,767              729,361

            Norman Reitman                            245,906,085                913,414              729,361

            William Richbourg                         246,115,296                704,203              729,361
</TABLE>




ITEM 6 Exhibits and Reports on Form 8-K

     a)   Exhibits:
          None

     b)   Reports On Form 8-K:
          None



<PAGE>




                                   SIGNATURES



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.






                                                 AURA SYSTEMS, INC.
                                  ----------------------------------------------
                                                    (Registrant)





Date:      October 15, 2001          By:    /s/Steven C. Veen
       ---------------------        -------------------------------
                                            Steven C. Veen
                                        Senior Vice President
                                       Chief Financial Officer
                              (Principal Financial and Accounting Officer
                                      and Duly Authorized Officer)