SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   Form 10-Q/A


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


         For the Quarter Ended August 31, 2000    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, 2000

        Common Stock, par value                     280,588,674 Shares
            $.005 per share




<PAGE>


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

                                      INDEX



                                                                                                      Page No.

PART I.       FINANCIAL INFORMATION

         ITEM 1.     Financial Statements
<S>                                                                                                     <C>

                     Statement Regarding Financial Information                                            2

                     Condensed Consolidated Balance Sheets as of August 31, 2000                          3

                     and February 29, 2000

                     Condensed Consolidated Statement of Operations for the Three Months and Six          4
                     Months Ended August 31, 2000 and 1999

                     Condensed Consolidated Statements of Cash Flows for the Six Months Ended             5
                     August 31, 2000 and 1999

                     Notes to Condensed Consolidated Financial Statements                                 6

         ITEM 2.     Management's Discussion and Analysis of Financial Condition and Results of           7
                     Operations


PART II. OTHER INFORMATION

         ITEM 1.      Legal Proceedings                                                                   10

         ITEM 2.      Changes in Securities                                                               10

         ITEM 6.      Exhibits and Reports on Form 8-K                                                    11

SIGNATURES                                                                                                12
</TABLE>



<PAGE>

                       AURA SYSTEMS, INC. AND SUBSIDIARIES

                          QUARTER ENDED AUGUST 31, 2000

                          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 29, 2000 as filed with the SEC (file number 0-17249).




<PAGE>


<TABLE>
<CAPTION>
                       AURA SYSTEMS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                                                                                  August 31,               February 29,
Assets                                                                               2000                      2000*
------                                                                           -------------            ---------------

<S>                                                                          <C>                          <C>
Current assets:
Cash and equivalents                                                          $       558,891              $    260,437
Receivables-net                                                                       330,693                 2,459,200
Inventories                                                                         9,846,519                11,189,227
Notes receivable                                                                    2,535,732                 3,557,007
Other current assets                                                                  757,589                   360,177
                                                                              ---------------           ---------------

       Total current assets                                                        14,029,424                17,826,048
                                                                                   ----------                ----------

Property and equipment, at cost                                                    41,112,318                42,219,417
Less accumulated depreciation
     and amortization                                                             (17,799,788)              (15,184,362)
                                                                              ----------------          ----------------

Net property and equipment                                                         23,312,530                27,035,055

Long term investments                                                               2,123,835                 2,123,835
Long term receivables                                                               3,845,810                 1,250,000
Patents and trademarks- net                                                         4,492,031                 4,615,769
Other assets                                                                        3,272,471                 3,271,831
                                                                              ---------------           ---------------
      Total                                                                   $    51,076,101           $    56,122,538
                                                                              ===============           ===============

Liabilities and Stockholder's Equity

Current liabilities:
Notes payable                                                                 $     8,745,615           $     9,899,531
Accounts payable                                                                    4,161,928                 4,216,004
Accrued expenses                                                                    1,362,760                 1,634,300
Convertible note-unsecured                                                            125,000                 1,250,000
                                                                              ---------------            --------------

Total current liabilities                                                          14,395,303                16,999,835
                                                                                   ----------                ----------

Notes payable and other liabilities                                                36,222,161                37,606,695
                                                                              ---------------           ---------------

COMMITMENTS AND CONTINGENCIES
Stockholders' equity
   Common  stock par value  $.005  per  share and  additional  paid in
capital.  Issued and outstanding  261,296,741  and 196,975,392  shares
respectively.                                                                 251,608,081               234,196,092
   Common stock not issued                                                                  -                 9,132,774
   Cumulative currency translation adjustment (CTA)                                  (365,932)                 (365,932)
   Accumulated deficit                                                           (250,783,512)             (241,446,926)
                                                                                 -------------          ----------------

       Total stockholders' equity                                                     458,637                 1,516,008
                                                                              ---------------           ---------------
       Total                                                                  $    51,076,101           $    56,122,538
                                                                              ===============           ===============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

*    Amounts at  February  29, 2000 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, 2000 AND 1999
                                   (Unaudited)


                                                            Three Months                                Six Months

                                                             2000               1999               2000              1999
                                                             ----               ----               ----              ----

<S>                                                       <C>               <C>                 <C>                <C>
Net Revenues                                              $ 386,885         $2,644,388          $ 768,406          $5,225,081

     Cost of goods and overhead                           2,556,062          3,622,715          5,070,419           8,268,383
                                                          ---------          ---------          ---------           ---------

Gross Profit                                             (2,169,177)         (978,327)         (4,302,013)         (3,043,302)

Expenses

     Selling, general and administrative                   3,642,773         2,522,474           5,536,478           5,801,765
     Research and development                                 53,903           128,494              85,951             244,621
                                                           ---------    --------------         -----------     ---------------

     Total costs and expenses                              3,696,676         2,650,968           5,622,429           6,046,386
                                                           ---------    --------------           ---------      --------------

 Loss from operations                                     (5,865,853)      (3,629,295)          (9,924,442)         (9,089,688)

Other (income) and expense

    (Gain) loss on sale of subsidiary                              -                 -                   -           (877,512)
     (Gain) loss on disposition of assets                          -         1,405,049         (1,756,746)          1,405,049
     Other (income)                                         (891,227)         (110,701)        (1,454,628)            (22,659)
     Legal settlements and costs                           1,254,685           201,376          1,564,496             219,511
     Interest expense-net                                    497,009           774,350          1,059,022           1,572,172
                                                             -------      ------------          ---------       -------------

Net loss                                                 $(6,726,320)   $   (5,899,369)       $(9,336,586)   $     (11,386,249)
                                                         ============    ==============       ============         ============

Net loss per common
share-basic                                          $         (.03)    $         (.06)    $         (.04)     $         (.11)
                                                      ==============     ==============     ==============      ==============

Weighted average shares used to
compute net loss  per share                          250,037,915           107,822,043      243,572,557           107,804,271
                                                   ==============     ================   ===============     ================
</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, 2000 AND 1999
                                   (Unaudited)
                                                                            2000                         1999
                                                                        -----------                -------------

<S>                                                                     <C>                         <C>
Net cash (used) in operations                                           $(5,820,796)                $(6,074,253)
                                                                        ------------                ------------

Cash flows from investing activities:

Proceeds from sale of subsidiary and assets                                    64,311                 1,000,000
Additions to property and equipment                                            (5,918)                  (70,704)
Note receivable                                                             1,261,395                  1,329,204
                                                                       --------------            ---------------

Net cash provided by (used) in investing
         Activities                                                         1,319,788                 2,258,000
                                                                       --------------            --------------

Cash flows from financing activities:

Net proceeds (repayment) from short-term
     borrowing                                                               (200,000)                      __-
Repayment of debt                                                          (1,154,138)                  (15,757)
Net proceeds from sale of stock                                             6,153,600
Proceeds from exercise of warrants                                                 -                       9,300
                                                                     ----------------           ----------------

Net cash provided (used) by financing activities:
                                                                            4,799,462                    (6,457)
                                                                       --------------            ---------------

Net increase (decrease) in cash                                               298,454                (3,822,210)

Cash and cash equivalents at beginning of year                                260,437                  3,822,210
                                                                              -------            ---------------

Cash and cash equivalents at end of period                                   $558,891           $              0
                                                                             ========           ================

Supplemental disclosures of cash flow information Cash paid during the period
       for:
              Interest                                                  $     997,108           $        145,188
              Income Tax                                                             0                         0

                                                                      ================            ==============
</TABLE>

Supplemental disclosure of noncash investing and financing activities:

In the six months  ended  August 31,  2000,  $1,125,000  of notes  payable  plus
accrued  interest of  $10,602.75  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  $990,012.41.  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.

In the six months ended August 31, 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.  The Company  also
satisfied a liability of $20,000 through the exercise of 40,000 warrants.

     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 six months ended August 31, 2000.

2)   Capital

     In the quarter ended August 31, 2000, common stock outstanding increased by
a total of  22,229,676  shares from the  quarter  ended May 31, 2000 as follows:
542,411 shares were issued upon conversion of a $125,000 note payable, 2,783,761
shares were issued to satisfy  liabilities  in the amount of  $865,000,  117,189
shares  were  issued as finders  fees and  18,786,315  shares  were sold for net
proceeds of  $5,853,600.  In the six months ended  August 31, 1999,  warrants to
purchase 70,000 shares of common stock of the Company were exercised.

3)   Inventories

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

<TABLE>
<CAPTION>
                                                                    August 31             February 28,
                                                                       2000                   2000
                                                                       ----                   ----
<S>                                                              <C>                      <C>
Raw materials                                                    $     3,157,540          $    4,205,828
Finished goods                                                         7,015,915               7,310,335
Reserved for potential product obsolescence                             (326,936)               (326,936)
                                                                   --------------               ---------
                                                                 $     9,846,519          $   11,189,227
                                                                       =========           =============
</TABLE>

     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.

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 29, 2000 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>


                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND 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 29, 2000, and factors discussed in this Report.

          Results of Operations

     Revenue for the three and six month periods ended August 31, 2000 decreased
by $2,257,503  and  $4,456,675  to $386,885 and $768,406 from the  corresponding
periods in the prior year. The decrease in revenue is primarily  attributable to
the sale of the Company's wholly owned subsidiary Aura Ceramics, which accounted
for approximately  $1.5 million or 29% of revenues for the six month period, and
the  discontinuation of the AuraSound  business.  The prior year period included
revenues of $1.5 million in license fees  pertaining to sound patents.  Revenues
in the current year period are solely related to the AuraGen.

         Cost of goods and overhead for the three and six months ended August
     31, 2000 decreased by $1,066,653 and $3,197,964 in comparison with the
corresponding periods in the prior year as a result of the decrease in sales
discussed above.

     Selling,  general and  administrative  costs increased for the three months
and decreased for the six months by $1,120,299  and $265,287  respectively,  due
primarily to the reserving of $1.3 million of receivables  associated with lines
of business the Company is no longer  engaged in.  While the Company  intends to
continue its collection efforts on these receivables, the Company has elected to
fully reserve for the balance of these receivables.

     Included  in  cost  of  goods  and  overhead   and  selling,   general  and
administrative  costs for the three and six months  ended  August 31,  2000,  is
depreciation and amortization of $1.7 million and $3.3 million, respectively.

     Research  and  development  costs for the three and six months ended August
31, 2000 decreased by $74,591 and $158,670 as the Company continued to focus its
reduced resources on marketing and sales of the Company's product, the AuraGen.

     In the six months  ended August 31,  2000,  the Company  recorded a gain of
$1,756,746 on the sale of the assets of its ceramics facility. In the prior year
period the Company recorded a loss of $1,405,049 on the disposition of assets of
its AuraSound subsidiary and a gain of $877,512 on the sale of MYS.

     Other income for the six months ended August 31, 2000 consists primarily of
forgiveness of debt 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 costs and  settlements  for the three and six months ended August 31,
2000  increased to $1,254,685  and  $1,564,496,  respectively  from $201,376 and
$219,511 in the prior year like periods. These costs can vary substantially from
quarter to quarter 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 $277,341 to $479,009  and $513,150 to
$1,059,022 in the three and six months ended August 31, 2000.

     Liquidity and Capital Resources

     At August 31, 2000,  the Company had cash of $558,891 as compared to a cash
balance of $260,437 at February 29, 2000.  Accounts payable and accrued expenses
decreased  by  $325,616  from  February  29,  2000.   Inventories  decreased  by
$1,342,708, and accounts receivable decreased by $2,128,507.  These changes were
primarily  a result  of the  disposition  of assets  of the  Company's  ceramics
subsidiary.

     Cash flows used in operations  decreased by $253,457  compared to the prior
year six  months.  Working  capital  was a negative  $365,879 at August 31, 2000
compared  to  $826,213  at the Fiscal year ended  February  29,  2000,  with the
current ratio declining to .97:1 from 1.05:1 at February 29, 2000.

     In the six months ended August 31, 2000, the Company  received net proceeds
of $6,153,600  from the sale of its common stock. In the six months ended August
31, 1999, the Company received proceeds of $9,300 from the exercise of warrants.

     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,  Item  7-Management's  Discussion  and  Analysis  of
Financial  Condition and Results of Operations  for the year ended  February 29,
2000 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 2001, 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 automotive  industry 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 2 Changes in Securities

          Private Placement of Units

          Subsequent  to the end of Fiscal 2000 the Company  conducted a private
     offering to a group of accredited  investors for the sale of  approximately
     19 million shares of Common Stock with one-half warrant to purchase a share
     of  Common  Stock at $0.48 per share  for each  share  sold,  for total net
     proceeds  of  approximately  $5.8  million.  The  offering  was exempt from
     registration  pursuant to Section 4(2) of the Securities Act of 1933 as the
     offering  was  a  private  placement  to a  limited  number  of  accredited
     investors.

          Common Stock Private Placement

          Subsequent  to the end of Fiscal 2000 the Company  conducted a private
     offering  to a group of  accredited  investors  for the  sale of  2,175,000
     shares of Common  Stock for total  gross  proceeds  of  approximately  $1.6
     million. The offering was exempt from registration pursuant to Section 4(2)
     of the Securities Act of 1933 as the offering was a private  placement to a
     limited number of accredited investors.

          Private Placement for Debt Conversion

          Subsequent  to the end of Fiscal 2000 the Company  conducted a private
     offering to a group of accredited  investors  whereby the Company converted
     or exchanged  approximately  $5.2 million of outstanding  indebtedness  for
     5,809,427 shares of Common Stock The offering was exempt from  registration
     pursuant to Section 4(2) of the  Securities Act of 1933 as the offering was
     a private placement to a limited number of accredited investors.

          Settlement of Court-Approved Class Action

          Subsequent  to the end of Fiscal  2000 the Company  issued  14,687,972
     shares of Common Stock and 3,500,000  warrants to purchase  Common Stock at
     $2.25 per share as part of a  court-approved  settlement  of a class action
     lawsuit  against the Company.  The  offering  was exempt from  registration
     pursuant to Section  3(a)(10) of the Securities Act of 1933 as the offering
     was the same as the terms that were  approved  by the U.S.  District  Court
     after a duly noticed hearing as to the fairness of such settlement.

          Other Issuances

          During the  second  quarter of Fiscal  2001  542,411  shares of Common
     Stock were  issued to a single  person in  conversion  of a  $125,000  note
     payable.

          During  the  second  quarter of Fiscal  2001 an  aggregate  of 117,189
     shares of Common  Stock were  issued to two  persons as finders  fees for a
     private placement.

          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 6 Exhibits and Reports on Form 8-K

              a)  Exhibits:
              See Exhibit Index

              b)  Reports On Form 8-K:

              On August 30, 2000, the Company filed a report on Form 8-K
              regarding the resignation of the Company's Independent
              Accountants.

<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:     May 14, 2001                                  By:  /s/Steven C. Veen
      ------------------------------                    ----------------------
                                                              Steven C. Veen
                                                        Senior Vice President
                                                      Chief Financial Officer
                   (Principal Financial and Accounting Officer)