SECURITIES AND EXCHANGE COMMISSION

                              Washington D.C. 20549


                                 --------------

                                    FORM 8-K

                                 --------------

                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                Date of Report (Date of Earliest Event Reported):

                                December 01,2002

                                 --------------

                               AURA SYSTEMS, INC.
             (Exact Name of Registrant as Specified in Its Charter)


                                 --------------


            Delaware                   0-17249           95-4106894
  (State or Other Jurisdiction       (Commission      (I.R.S. Employer
of Incorporation or Organization)   File Number)     Identification No.)



               2335 Alaska Avenue
          El Segundo, California                          90245
(Address of Principal Executive Offices)               (Zip Code)



                                 (310) 643-5300
              (Registrant's Telephone Number, Including Area Code)




------------------------------------------------------------------------------
         (Former Name or Former Address, if Changed Since Last Report.)




<PAGE>





         ITEM 2.  Disposition of Assets.


     On December 1, 2002,  Aura Systems,  Inc. (the  "Company")  consummated the
initial  closing under an Agreement for Sale and  Leaseback,  (together with the
agreements  contemplated  thereby,  the "Agreement") with a group of individuals
(the "Purchasers") pursuant to which the Company agreed to sell its Aura Realty,
Inc. ("Aura Realty") subsidiary to Purchasers and enter into a new 10-year lease
of the properties  owned by Aura Realty (the "Lease").  Investors are encouraged
to read the  Agreement,  attached as an Exhibit 10.33  hereto,  in its entirety.
Aura  Realty is a  wholly-owned  subsidiary  of the  Company  whose sole  assets
consist of certain  real  properties  currently  occupied  by the Company as its
headquarter  facilities in El Segundo,  California (the "Properties").  Clifford
Chance  U.S.  LLP  represented  the  Company  as  its  outside  counsel  in  the
transaction.


     The  Agreement  provides  for the  $7,350,000  purchase  price for the Aura
Realty stock, arrived at in arm's length negotiations, to be partially funded by
Purchasers'  assumption or refinancing  of the current  mortgage note secured by
the  Properties.  Net  of  the  principal  balance  of  this  mortgage  note  of
approximately  $5,083,000,  certain security  deposits and prepayments  totaling
$564,000,  the  partial  payment  of past due  amounts  owed to  certain  of the
individual  purchasers,  as  described  below,  of  approximately  $135,000  and
Purchasers'  fees of $105,000,  the Company received  approximately  $1,463,000.
$878,750 of this amount was advanced to the Company by the  Purchasers  prior to
the December 1, 2002 closing under the Agreement.



     At  the  December  1,  2002  closing  under  the  Agreement,   the  Company
transferred  49.9% of its  stock  in Aura  Realty  to  Purchasers,  delivered  a
$1,000,000 note payable to Purchasers and granted Purchasers a security interest
in one of the  Company's  note  receivables  to secure  certain  aspects  of its
performance under the Agreement and the Lease. A second closing will occur after
the current mortgage note holder consents to transfer of the stock to Purchasers
and execution of the Lease. At that time, the Company will deliver its remaining
Aura Realty stock to Purchasers in exchange for the return and  cancellation  of
the Company's  $1,000,000 note payable. If the current mortgage note holder does
not consent to the  transfer of the stock to  Purchasers  and  execution  of the
Lease , Purchasers will obtain a substitute mortgage note through a refinancing.
In the event that such a refinancing is required,  the Company would be required
to pay certain additional costs.



     The Lease is Triple Net and  requires  the Company to make  monthly  rental
payments of $81,806.50 per month.



     The  Purchasers  also received  warrants to purchase  15,000,000  shares of
common stock of the Company  within five years from December 1, 2002 at exercise
prices ranging from $0.15 per share in the first 24 months to $0.25 per share in
the last 24 months.  Further, the Purchasers subscribed to purchase and paid for
21,366,347 of the Company's  common shares for $1,493,000 at an average price of
$0.07 per share.  The Company has agreed to file a  registration  statement with
the  Securities  and Exchange  Commission  within 60 days of  acceptance  of the
subscription  agreement and will be required to issue up to 1,300,000 additional
shares to the Purchasers if it fails to do so.



     Of the sixteen Purchasers,  five are current consultants to the Company and
members of the Company's former management who separated from the Company at the
end of  February,  2002 (the  "Consultants").  A fee of $50,000  was paid by the
Company to the  Consultants in connection  with the Agreement.  The Company also
paid to the  Consultants  approximately  $135,000  from the funds it received at
closing  representing a portion of unpaid  consulting fees  contractually due to
the Consultants at December 1, 2002.

     Item 7. Financial Statements and Exhibits



     (b) The pro forma  financial  information  required  by this Item  shall be
filed by amendment to this report not later than 60 days from the date hereof.



     (c) Exhibits

          10.33.1. Agreement for Sale and Leaseback dated as of December 1, 2002


          10.33.2. Lease Agreement dated as of December 1, 2002


          10.33.3. Additional Security Agreement dated as of December 1, 2002


          10.33.4  Form of Subscription Agreement


          10.33.4. Pledge Agreement dated as of December 1, 2002


          10.33.5. Promissory Note dated as of December 1, 2002


          10.33.6  Form of Warrant and appendix 1











                                    SIGNATURE

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


                                                  AURA SYSTEMS, INC.


         Date:  December 13, 2002      By:  /s/ Neal F. Meehan
                                         --------------------------------------
                                                         Neal F. Meehan
                                                         Chairman and
                                                         Chief Executive Officer


<PAGE>
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SECURITIES AND EXCHANGE COMMISSION

                              Washington D.C. 20549

                                 --------------

                                    FORM 8-K

                                 --------------

                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                Date of Report (Date of Earliest Event Reported):

                                December 01,2002

                                 --------------

                               AURA SYSTEMS, INC.
             (Exact Name of Registrant as Specified in Its Charter)

                                 --------------

            Delaware                   0-17249           95-4106894
  (State or Other Jurisdiction       (Commission      (I.R.S. Employer
of Incorporation or Organization)   File Number)     Identification No.)

               2335 Alaska Avenue
          El Segundo, California                          90245
(Address of Principal Executive Offices)               (Zip Code)

                                 (310) 643-5300
              (Registrant's Telephone Number, Including Area Code)

------------------------------------------------------------------------------
         (Former Name or Former Address, if Changed Since Last Report.)
ITEM 2.  Disposition of Assets.

     On December 1, 2002,  Aura Systems,  Inc. (the  "Company")  consummated the
initial  closing under an Agreement for Sale and  Leaseback,  (together with the
agreements  contemplated  thereby,  the "Agreement") with a group of individuals
(the "Purchasers") pursuant to which the Company agreed to sell its Aura Realty,
Inc. ("Aura Realty") subsidiary to Purchasers and enter into a new 10-year lease
of the properties  owned by Aura Realty (the "Lease").  Investors are encouraged
to read the  Agreement,  attached as an Exhibit 10.33  hereto,  in its entirety.
Aura  Realty is a  wholly-owned  subsidiary  of the  Company  whose sole  assets
consist of certain  real  properties  currently  occupied  by the Company as its
headquarter  facilities in El Segundo,  California (the "Properties").  Clifford
Chance  U.S.  LLP  represented  the  Company  as  its  outside  counsel  in  the
transaction.

     The  Agreement  provides  for the  $7,350,000  purchase  price for the Aura
Realty stock, arrived at in arm's length negotiations, to be partially funded by
Purchasers'  assumption or refinancing  of the current  mortgage note secured by
the  Properties.  Net  of  the  principal  balance  of  this  mortgage  note  of
approximately  $5,083,000,  certain security  deposits and prepayments  totaling
$564,000,  the  partial  payment  of past due  amounts  owed to  certain  of the
individual  purchasers,  as  described  below,  of  approximately  $135,000  and
Purchasers'  fees of $105,000,  the Company received  approximately  $1,463,000.
$878,750 of this amount was advanced to the Company by the  Purchasers  prior to
the December 1, 2002 closing under the Agreement.

     At  the  December  1,  2002  closing  under  the  Agreement,   the  Company
transferred  49.9% of its  stock  in Aura  Realty  to  Purchasers,  delivered  a
$1,000,000 note payable to Purchasers and granted Purchasers a security interest
in one of the  Company's  note  receivables  to secure  certain  aspects  of its
performance under the Agreement and the Lease. A second closing will occur after
the current mortgage note holder consents to transfer of the stock to Purchasers
and execution of the Lease. At that time, the Company will deliver its remaining
Aura Realty stock to Purchasers in exchange for the return and  cancellation  of
the Company's  $1,000,000 note payable. If the current mortgage note holder does
not consent to the  transfer of the stock to  Purchasers  and  execution  of the
Lease , Purchasers will obtain a substitute mortgage note through a refinancing.
In the event that such a refinancing is required,  the Company would be required
to pay certain additional costs.

     The Lease is Triple Net and  requires  the Company to make  monthly  rental
payments of $81,806.50 per month.

     The  Purchasers  also received  warrants to purchase  15,000,000  shares of
common stock of the Company  within five years from December 1, 2002 at exercise
prices ranging from $0.15 per share in the first 24 months to $0.25 per share in
the last 24 months.  Further, the Purchasers subscribed to purchase and paid for
21,366,347 of the Company's  common shares for $1,493,000 at an average price of
$0.07 per share.  The Company has agreed to file a  registration  statement with
the  Securities  and Exchange  Commission  within 60 days of  acceptance  of the
subscription  agreement and will be required to issue up to 1,300,000 additional
shares to the Purchasers if it fails to do so.

     Of the sixteen Purchasers,  five are current consultants to the Company and
members of the Company's former management who separated from the Company at the
end of  February,  2002 (the  "Consultants").  A fee of $50,000  was paid by the
Company to the  Consultants in connection  with the Agreement.  The Company also
paid to the  Consultants  approximately  $135,000  from the funds it received at
closing  representing a portion of unpaid  consulting fees  contractually due to
the Consultants at December 1, 2002.

     Item 7. Financial Statements and Exhibits

     (b) The pro forma  financial  information  required  by this Item  shall be
filed by amendment to this report not later than 60 days from the date hereof.

     (c) Exhibits

          10.33.1. Agreement for Sale and Leaseback dated as of December 1, 2002

          10.33.2. Lease Agreement dated as of December 1, 2002

          10.33.3. Additional Security Agreement dated as of December 1, 2002

          10.33.4  Form of Subscription Agreement

          10.33.4. Pledge Agreement dated as of December 1, 2002

          10.33.5. Promissory Note dated as of December 1, 2002

          10.33.6  Form of Warrant and appendix 1

                                    SIGNATURE

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

                                                  AURA SYSTEMS, INC.

         Date:  December 13, 2002      By:  /s/ Neal F. Meehan
                                         --------------------------------------
                                                         Neal F. Meehan
                                                         Chairman and
                                                         Chief Executive Officer