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 November 30, 1999        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 February 4, 2000

 Common Stock, par value                       177,249,203 Shares
     $.005 per share





<PAGE>


                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                                      INDEX


                                                                     Page No.

PART I.      FINANCIAL INFORMATION

ITEM 1.     Financial Statements

Statement Regarding Financial Information                                     2

Condensed Consolidated Balance Sheets as of                                   3
November 30, 1999 and February 28, 1999

Condensed Consolidated Statement of Operations for the Three Months and Nine  4
Months Ended November 30, 1999 and 1998

Condensed Consolidated Statements of Cash Flows for the                       5
Nine Months Ended November 30, 1999 and 1998

Notes to Condensed Consolidated Financial Statements                          6

ITEM 2.     Management's Discussion and Analysis of Financial Condition and
            Results of Operations                                             9


PART II. OTHER INFORMATION

ITEM 1.     Legal Proceedings                                                13

ITEM 6.     Exhibits and Reports on Form 8-K                                 13

SIGNATURES                                                                   14






<PAGE>




                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                         QUARTER ENDED NOVEMBER 30, 1999

                          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 for
the year ended February 28, 1999 as filed with the SEC (file number 0-17249).




<PAGE>


                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                             November 30,              February 28,
Assets                                                                          1999                      1999
                                                                            -------------            ---------------
<S>                                                                         <C>                      <C>
Current assets
   Cash and equivalents                                                       $       291,116          $      3,822,210
     Receivables-net                                                                1,948,082                 8,380,414
     Inventories                                                                   11,769,052                18,477,058
     Note Receivable                                                                1,443,323                   250,000
     Prepayments                                                                           --                 3,435,645
     Other current assets                                                             506,302                 2,124,535
                                                                              ---------------            ---------------

       Total current assets                                                        15,957,875                36,489,862

     Property and equipment, at cost                                               43,195,159                47,976,699
     Less accumulated depreciation
         and amortization                                                         (13,979,824)              (10,994,734)
                                                                              ----------------           ---------------

Net property and equipment                                                         29,215,335                 36,981,965

     Long-Term investments                                                          2,223,835                  2,923,835
     Long-Term receivables                                                          2,500,000                  2,500,000
     Patents and trademarks, net                                                    4,791,628                  5,293,278
     Goodwill, net                                                                         --                  5,383,208
     Other assets                                                                   2,935,968                    571,244
                                                                              ---------------           ----------------
       Total                                                                  $    57,624,641          $      90,143,392
                                                                              ===============           ================

Liabilities and Stockholder's Equity

Current liabilities:
     Notes payable                                                            $     3,506,701          $       8,787,113
     Convertible note-unsecured                                                     2,000,000                  2,000,000
     Accounts payable                                                              15,334,386                 22,515,842
     Accrued expenses                                                               8,619,909                  8,056,783
                                                                              ---------------           ----------------

       Total current liabilities                                                   29,460,996                 41,359,738

Notes payable and other liabilities                                                20,580,142                 25,955,529
                                                                              ---------------           ----------------
Convertible notes                                                                  36,481,782                 36,481,782
                                                                              ---------------           ----------------

COMMITMENTS AND CONTINGENCIES

Stockholders' equity
   Common stock par value $.005 per share paid in
capital.  Issued and outstanding 107,822,043 and
     107,752,043 shares respectively.                                             219,024,519                218,693,245
   Cumulative currency translation adjustment                                        (365,932)                  (365,932)
   Accumulated deficit                                                           (247,556,866)              (231,980,970)
                                                                             -----------------       -------------------

       Total stockholders' equity                                                 (28,898,279)               (13,653,657)
                                                                              ----------------        ------------------
       Total                                                                  $    57,624,641          $      90,143,392
                                                                              ===============          =================
</TABLE>

     See accompanying notes to condensed consolidated financial statements.


<PAGE>



                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             THREE AND NINE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                               Three Months                             Nine Months

                                                       1999                  1998                 1999                1998
                                                       ----                  ----                 ----                ----
<S>                                                  <C>                  <C>               <C>               <C>
Net Revenues                                          $   1,089,984   $     33,931,756       $   6,315,065    $     105,487,348

     Cost of goods and overhead                           3,042,232         44,808,406          11,310,615          100,358,647
                                                          ---------         ----------     ---------------      ---------------

Gross Profit                                             (1,952,248)       (10,876,650)         (4,995,550)           5,128,701

Expenses

     Selling, general and administrative                  1,310,316         15,291,137           7,331,592           31,625,291
     Research and development                               128,594            283,638             373,215            1,105,371
                                                      -------------     --------------      --------------       --------------

     Total costs and expenses                             1,438,910         15,574,775           7,704,807           32,730,662
                                                     --------------     --------------      --------------           ----------

Income (loss) from operations                            (3,391,158)       (26,451,425)        (12,700,357)         (27,601,961)

Other (income) and expense

     Equity in losses of unconsolidated                                                                --
       joint ventures                                            --            175,000                                  675,000
    (Gain) loss on sale of subsidiary                            --                 --            (877,512)                  --
     Loss on disposition of assets                          144,248                 --           1,549,297                   --
     Gain on sale and issuance of
       subsidiary stock and other assets                         --                 --                  --           (1,432,627)
     Other income                                          (249,801)          (906,428)           (272,460)          (1,214,530)
     Legal settlements and costs                                 --          1,300,000                  --            7,600,000
     Interest expense-net                                   904,042          3,021,611           2,476,214            8,766,274
                                                     --------------     --------------      --------------       --------------

Income (loss) before income taxes and minority interests
                                                         (4,189,647)       (30,041,608)        (15,575,896)         (41,996,078)
     Provision (benefit) for taxes                               --         (1,589,200)                 --             (647,200)
     Minority interest in income (loss)
       of consolidated subsidiary                                --         (5,317,533)                 --           (4,551,673)
                                                      -------------         -----------    ---------------      ----------------

Net income (loss)                                    $   (4,189,647)      $(23,134,875)       $(15,575,896)   $     (36,797,205)
                                                     ===============       ============       ============       ==============

Net income (loss) per common     share-basic
                                                    $          (.04)  $           (.27)   $          (.14)     $          (.44)
                                                     ===============   ================    ===============      ===============

Weighted average shares used
to compute net income (loss) per share
                                                        107,822,043         86,413,616         107,810,152           83,011,249
                                                      =============         ==========    ================           ==========
</TABLE>



     See accompanying notes to condensed consolidated financial statements.


<PAGE>


                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED NOVEMBER 30, 1999 AND 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                             1999                         1998
                                                                         ------------               -------------
<S>                                                                <C>                      <C>

Net cash (used) in operations                                       $      (6,796,443)        $     (13,970,789)
                                                                     -----------------              ------------

Cash flows from investing activities:

     Proceeds from sale of subsidiary                                       1,000,000                        --
     Additions to property and equipment                                     (324,194)              (11,896,567)
     Note receivable                                                        2,696,000                        --
     Equity investments                                                            --                (5,000,000)
     Proceeds from sale of subsidiary stock                                        --                 1,611,873
                                                                       --------------            --------------

     Net cash provided by (used) in investing
         activities                                                         3,371,806               (15,284,694)

Cash flows from financing activities:

     Net proceeds (repayment) from short-term
       borrowing                                                                   --                 5,360,734
     Proceeds from issuance of convertible debt                                    --                12,000,000
     Net proceeds (repayment) of debt                                        (115,757)                1,450,000
     Proceeds from exercise of stock options                                       --                   103,000
     Proceeds from exercise of warrants                                         9,300                 7,574,358
                                                                     ----------------          ----------------

     Net cash provided  (used) by financing
       activities:                                                           (106,457)               26,488,092
                                                                      ---------------           ---------------

Net increase (decrease) in cash and cash equivalents
                                                                           (3,531,094)               (2,767,391)

Cash and cash equivalents at beginning of year                              3,822,210                 6,079,411
                                                                       ---------------           ---------------

Cash and cash equivalents at end of period                           $        291,116          $      3,312,020
                                                                     ================           ===============

Supplemental  disclosures of cash flow  information
  Cash paid during the period for:
              Interest                                               $        231,098          $      3,746,051
              Income Tax                                                            0                   942,000
                                                                       ==============            ==============
</TABLE>

Supplemental disclosure of noncash investing and financing activities:

In the nine months ended  November 30, 1999, the Company sold its MYS subsidiary
for $4.2 million in the form of a note  receivable in the amount of $3.2 million
and a cash down  payment of $1 million.  The Company also sold the assets of its
AuraSound  subsidiary  for a  note receivable of $2 million.  In the nine months
ended  November 30, 1998, $3,741,878 of convertible notes payable were converted
into common stock.


     See accompanying notes to condensed consolidated financial statements.


<PAGE>


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


1)       Management Opinion

         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 and results of operations as of and for
the three and nine months ended November 30, 1998.

2)       Capital

         In the nine months ended November 30,1999,  warrants to purchase 70,000
shares of common stock were  exercised.  In the nine months  ended  November 30,
1998,  $3,741,878 of  convertible  notes were converted into common stock of the
Company.

3)       Significant Customers

         The Company sold sound related  products and computer  related products
to four  significant  customers  during the nine months ended November 30, 1998.
Sales  of  speakers  to  a  single  major  electronics  retailer  accounted  for
approximately  $7.6 million in the period ended November 30, 1998 as compared to
approximately  $11.1  million  in the prior  year  comparable  period.  Sales of
communication  and  multimedia   products  to  three  major  mass  merchandisers
accounted for approximately  $49.9 million in the nine months ended November 30,
1998 as compared to approximately  $39.6 million in the prior year period.  None
of the above  customers  are  related  or  affiliated  with the  Company  or any
customers of the Company.

4)       Contingencies

         The Company is engaged in various legal actions. See the Company's Form
10-K, Item 3- Legal  Proceedings,  for the year ended February 28, 1999 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.


<PAGE>


         ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                 RESULTS OF OPERATIONS

         Results of Operations

         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 for the
period ended February 28, 1999, and factors discussed in this Report.

         Net revenue for the three and nine month  periods  ended  November  30,
1999 decreased by $33,822,758  and $99,172,283 to $1,089,984 and $6,315,065 from
the  corresponding  periods  in the prior  year.  The  decrease  in  revenue  is
primarily   attributable  to  the  cessation  of  operations  by  the  Company's
previously  majority owned subsidiary,  NewCom, the sale of the Company's wholly
owned  subsidiary  MYS,  and  the  sale  of  the  assets  of  AuraSound.   These
subsidiaries  accounted  for  approximately  92% of sales in the prior year nine
month period.

         The Company sold sound related  products and computer  related products
to four  significant  customers  during the nine months ended November 30, 1998.
Sales  of  speakers  to  a  single  major  electronics  retailer  accounted  for
approximately  $7.6 million in the period ended November 30, 1998 as compared to
approximately  $11.1  million  in the prior  year  comparable  period.  Sales of
communication  and  multimedia   products  to  three  major  mass  merchandisers
accounted for approximately  $49.9 million in the nine months ended November 30,
1998 as compared to approximately  $39.6 million in the prior year period.  None
of the above  customers  are  related  or  affiliated  with the  Company  or any
customers of the Company.  Neither of the above two subsidiaries are included in
the current year financial statements.

         Cost of goods and overhead for the three and nine months ended November
30, 1999  decreased  by  $41,766,174  and  $89,048,032  in  comparison  with the
corresponding  periods in the prior year due primarily to the disposition of the
Company's NewCom, MYS and AuraSound subsidiaries.

         General and administrative costs decreased for the three and nine month
periods  by  $13,980,821  and  $24,293,699  respectively  primarily  due  to the
decrease  in  personnel  and  support  services  resulting  from the sale of the
Company's MYS subsidiary,  the assets of the Company's AuraSound  subsidiary and
the cessation of business of the Company's previously majority owned subsidiary,
NewCom.

         Included in cost of goods and overhead  and general and  administrative
costs for the three and nine months ended November 30, 1999, is depreciation and
amortization of $1,800,281 and $5,472,297, respectively.

         Research  and  development  costs for the three and nine  months  ended
November 30, 1999 decreased by $155,044 and $732,156 as the Company  focused its
reduced resources on the sales and marketing of the Company's AuraGen product.

         In the nine months ended November 30, 1999, the Company recorded a gain
of $877,512 on the sale of its MYS subsidiary  and a loss on the  disposition of
the assets of the AuraSound  subsidiary of $1,405,049.  In the nine months ended
November  30,  1998,  the  Company  recorded  a gain on the sale of stock in its
majority owned subsidiary NewCom of approximately $1.4 million.

         Net interest expense decreased by $2,117,569 to $904,042 and $6,290,060
to  $2,476,214  in the three and nine months  ended  November  30, 1999 due to a
quarterly fee being charged to interest expense in the prior year period and the
inclusion of the Company's MYS and NewCom subsidiary in the prior year period.

         Liquidity and Capital Resources

         In  the  nine  months  ended  November  30,  1999,  cash  decreased  by
$3,531,094 to $291,116 from  $3,822,210 at February 28, 1999.  Accounts  payable
and accrued expenses decreased by $6,618,330 from February 28, 1999. Inventories
decreased by $6,708,006 and accounts receivable decreased by $6,432,332.

         Cash flows used in operations  decreased by $7,174,346  compared to the
prior year nine months.  Working capital was a negative  $13,503,121 as compared
to a negative  $4,869,876  at the fiscal year end level,  with the current ratio
declining to .54:1 from .88:1.

         In the nine months  ended  November  30,  1999,  the  Company  received
proceeds  of $9,300  from the  exercise of  warrants.  In the nine months  ended
November 30, 1998, the Company received proceeds of $12,000,000 from the sale of
convertible  notes payable.  In this same period $3,741,878 of previously issued
convertible notes were converted into common stock of the Company.

         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 debt 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, Item 7 - Management's  Discussion and Analysis of Financial
Condition  and Results of  Operations  for the year ended  February  28, 1999 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 fourth
quarter of Fiscal 2000, 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  consumer  electronic  and
automotive   industries  and  the  overall  economy;   increased  marketing  and
manufacturing  competition and accompanying  prices pressures;  contingencies in
initiating   production   at  new   factories   along   with   their   potential
underutilization,  resulting in production  inefficiencies  and higher costs and
start-up expenses and;  inefficiencies,  delays and increased depreciation costs
in connection with the start of production in new plants 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.
There might exist a difficulty in obtaining raw materials,  supplies,  power and
natural  resources and any other items needed for the  production of Company and
another products,  creating capacity  constraints limiting the amounts of orders
for certain  products and thereby  causing  effects on the Company's  ability to
ship its  products.  Manufacturing  economies  may fail to develop when planned,
products  may be  defective  and/or  customers  may fail to  accept  them in the
consumer 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.  Furthermore,  any  financing or other  financial  incentives by the
Company  under or  related to major  infrastructure  contracts  could  result in
increased  bad debt or other  expenses or  fluctuation  of profit  margins  from
period to period.  The focus by some of the  Company's  businesses  on any large
system order 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 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 4 to
              the  Company's   Condensed   Consolidated   Financial   Statements
              appearing elsewhere herein.


ITEM 6        Exhibits and Reports on Form 8-K

              a)  Exhibits:
              See Exhibit Index

              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:     February 10, 2000                  By:  /s/Steven C. Veen
      ------------------------------         ----------------------------------
                                                   Steven C. Veen
                                                 Senior Vice President
                                                Chief Financial Officer
                                    (Principal Financial and Accounting Officer)






<PAGE>




                                INDEX TO EXHIBITS


       Exhibit                                                    Sequential
        Number                                                     Page No.










        EX-27           Financial Data Schedule