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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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        <div>&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;8-K</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Arial Unicode MS Western, sans-serif">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
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        &#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Current
        Report </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>of
        the Securities Exchange Act of 1934 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
        of Report (Date of earliest event reported): June 24, 2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AURA
        SYSTEMS, INC.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
        </font>
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        name of registrant as specified in charter)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div>
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            <tr>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Delaware</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>0-17249</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>95-4106894</strong></font></div>
              </td>
            </tr>
            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(State
                  or other</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>jurisdiction
                  of</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>incorporation)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Commission
                  File</strong></font></div>
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              </td>
              <td align="left" valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(IRS
                  Employer</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Identification
                  No.)</strong></font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2335
        Alaska Avenue, El Segundo California 90245</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Address
        of principal executive offices) (Zip Code)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registrant&#8217;s
        telephone number, including area code: (310)&#160;643-5300</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        Applicable</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Former
        name or former address, if changed since last report)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below): </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="3%">
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              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425) </font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12) </font></div>
              </td>
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              </td>
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                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  (17 CFR
                  240.14d-2(b)) </font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <tr>
              <td align="left" valign="top" width="3%">
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                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  (17 CFR
                  240.13e-4(c)) </font></div>
              </td>
            </tr>

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          </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;1.03.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bankruptcy
        or Receivership.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        24, 2005 the Company filed a voluntary petition for relief under Chapter
        11 of
        Title 11 of the United States Code (the &#8220;Bankruptcy Code&#8221;). The Company filed
        its Chapter 11 bankruptcy petition with the United States Bankruptcy Court
        for
        the Central District of California (Los Angeles Division) (the &#8220;Bankruptcy
        Court&#8221;), Case Number LA 05-24550 SB. The Company expects to continue its
        day-to-day business operations as a &#8220;debtor-in-possession&#8221; under the
        jurisdiction of the Bankruptcy Court and in accordance with the applicable
        provisions of the Bankruptcy Code.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;2.04.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Triggering
        Events That Accelerate or Increase a Direct Financial Obligation or an
        Obligation under an Off-Balance Sheet Arrangement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        filing by the Company of its voluntary petition for relief under the Bankruptcy
        Code discussed in Item 1.03 above (the &#8220;Triggering Event&#8221;) is an event which
        triggers the acceleration of each of the direct financial obligations of
        the
        Company described below: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Koyah Leverage Partners, L.P.,
        a
        Delaware limited partnership (&#8220;Leverage&#8221;), for loans bearing interest at the
        rate of 10% per annum made to the Company by Leverage pursuant to the terms
        of
        (i) an Agreement dated as of July 24, 2003 between the Company and Leverage,
        (ii) Convertible Promissory Notes, each dated as of July 24, 2003, executed
        by
        the Company in favor of Leverage, (iii) a Security Agreement dated as of
        July
        24, 2003 executed by the Company in favor of Leverage (as collateral agent
        for
        itself and for Koyah Partners, L.P., a Delaware limited partnership (&#8220;Koyah&#8221;)),
        (iv) a Stock Pledge Agreement dated as of August 18, 2003 executed by the
        Company in favor of Leverage (as collateral agent for itself and for Koyah)
        and
        (v) a Registration Rights Agreement dated as of August 19, 2004 executed
        by the
        Company in favor of Leverage (collectively the &#8220;Leverage Agreements&#8221;). The
        Leverage Agreements were amended pursuant to the terms of an Amendment and
        Conversion Agreement dated as of August 19, 2004 (the &#8220;Amendment&#8221;) among the
        Company, Leverage, Koyah, Edgar Appleby, an individual, Prudent Bear Fund,
        Inc.,
        a Maryland corporation, Koyah Ventures LLC, a Delaware limited liability
        corporation (&#8220;Ventures&#8221;) and Raven Partners, LP, a Delaware limited partnership
        (&#8220;Raven&#8221;). Upon the Triggering Event all sums due pursuant to the Leverage
        Agreements, as amended by the Amendment, became immediately due and payable.
        As
        of June 24, 2005 the Company was indebted to Leverage in the amount of
        $3,662,345. Prior to the Triggering Event the indebtedness of the Company
        to
        Leverage would mature on August 19, 2005, unless extended for up to four
        successive three-month periods by the Company&#8217;s satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied. The obligations of the Company to Leverage
        are secured by all of the assets of the Company. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Koyah for loans bearing interest
        at
        the rate of 10% per annum made to the Company by Koyah pursuant to the terms
        of
        (i) an Agreement dated as of July 24, 2003 between the Company and Koyah,
        (ii)
        Convertible Promissory Notes, each dated as of July 24, 2003, executed by
        the
        Company in favor of Koyah, (iii) a Security Agreement dated as of July 24,
        2003
        executed by the Company in favor of Leverage (as collateral agent for Leverage
        and Koyah), (iv) a Stock Pledge Agreement dated as of August 18, 2003 executed
        by the Company in favor of Leverage (as collateral agent for itself and for
        Koyah) and (v) a Registration Rights Agreement dated as of August 19, 2004
        executed by the Company in favor of Koyah (collectively the &#8220;Koyah Agreements&#8221;).
        The Koyah Agreements were amended pursuant to the terms of the Amendment.
        Upon
        the Triggering Event all sums due pursuant to the Koyah Agreements, as amended
        by the Amendment, became immediately due and payable. As of June 24, 2005
        the
        Company was indebted to Koyah in the amount of $915,586. Prior to the Triggering
        Event the indebtedness of the Company to Koyah would mature on August 19,
        2005,
        unless extended for up to four successive three-month periods by the Company&#8217;s
        satisfaction of certain conditions precedent. The Company believes that none
        of
        such conditions precedent is likely to be satisfied. The obligations of the
        Company to Koyah are secured by all of the assets of the Company.</font></div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Ventures for a loan bearing interest
        at the rate of 10% per annum made to the Company by Ventures pursuant to
        the
        terms of (i) an Agreement dated as of June 14, 2004 between the Company and
        Ventures, (ii) a Convertible Promissory Note dated as of June 14, 2004 executed
        by the Company in favor of Ventures, (iii) a Security Agreement dated as
        of June
        14, 2004 executed by the Company in favor of Ventures, (iv) a Stock Pledge
        Agreement dated as of June 14, 2004 executed by the Company in favor of Ventures
        and (v) a Registration Rights Agreement dated as of August 19, 2004 executed
        by
        the Company in favor of Ventures (collectively the &#8220;Ventures Agreements&#8221;). The
        Ventures Agreements were amended pursuant to the terms of the Amendment.
        Upon
        the Triggering Event all sums due pursuant to the Ventures Agreements, as
        amended by the Amendment, became immediately due and payable. As of June
        24,
        2005 the Company was indebted to Ventures in the amount of $358,392. Prior
        to
        the Triggering Event the indebtedness of the Company to Ventures would mature
        on
        August 19, 2005, unless extended for up to four successive three-month periods
        by the Company&#8217;s satisfaction of certain conditions precedent. The Company
        believes that none of such conditions precedent is likely to be satisfied.
        The
        obligations of the Company to Ventures are secured by all of the assets of
        the
        Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Raven for a loan bearing interest
        at
        the rate of 10% per annum made to the Company by Raven pursuant to the terms
        of
        (i) an Agreement dated as of June 14, 2004 between the Company and Raven,
        (ii) a
        Convertible Promissory Note dated as of June 14, 2004 executed by the Company
        in
        favor of Raven, (iii) a Security Agreement dated as of June 14, 2004 executed
        by
        the Company in favor of Raven, (iv) a Stock Pledge Agreement dated as of
        June
        14, 2004 executed by the Company in favor of Raven and (v) a Registration
        Rights
        Agreement dated as of August 19 2004 executed by the Company in favor of
        Raven
        (collectively the &#8220;Raven Agreements&#8221;). The Raven Agreements were amended
        pursuant to the terms of the Amendment. Upon the Triggering Event all sums
        due
        pursuant to the Raven Agreements, as amended by the Amendment, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Raven in the amount of $87,726. Prior to the Triggering Event the indebtedness
        of the Company to Raven would mature on August 19, 2005, unless extended
        for up
        to four successive 3 month periods by the Company&#8217;s satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied.&#160;The obligations of the Company
        to
        Raven are secured by all of the assets of the Company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Koyah Microcap Partners Master
        Fund,
        L.P., a Cayman Islands limited partnership (&#8220;Microcap&#8221;) for loans bearing
        interest at the rate of 10% per annum made to the Company by Microcap pursuant
        to the terms of (i) an Agreement dated as of December16, 2004 between the
        Company and Microcap, (ii) Convertible Promissory Notes dated as of December
        16,
        2004 and as of December 23, 2004, respectively, executed by the Company in
        favor
        of Microcap, (iii) a Security Agreement dated as of December 16, 2004 executed
        by the Company in favor of Microcap, (iv) a Stock Pledge Agreement dated
        as of
        December&#160;16, 2004 executed by the Company in favor of Microcap and
        (v) a
        Registration Rights Agreement dated as of December 16, 2004 executed by the
        Company in favor of Microcap (collectively the &#8220;Microcap Agreements&#8221;). Upon the
        Triggering Event all sums due pursuant to the Microcap Agreements, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Microcap in the amount of $452,147. Prior to the Triggering Event the
        indebtedness of the Company to Microcap would mature on August 19, 2005,
        unless
        extended for up to four successive three-month periods by the Company&#8217;s
        satisfaction of certain conditions precedent. The Company believes that none
        of
        such conditions precedent is likely to be satisfied. The obligations of the
        Company to Microcap are secured by all of the assets of the Company.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 24, 2005 the Company was indebted to Ezra Meyer, an individual (&#8220;Meyer&#8221;)
        for loans bearing interest at the rate of 10% per annum made to the Company
        by
        Meyer pursuant to the terms of (i) an Agreement dated as of May 13, 2005
        between
        the Company and Meyer, (ii) a Convertible Promissory Note dated as of May
        13,
        2005 executed by the Company in favor of Meyer, (iii) a Security Agreement
        dated
        as of May 13, 2005 executed by the Company in favor of Meyer, (iv) a Stock
        Pledge Agreement dated as of May 13, 2005 executed by the Company in favor
        of
        Meyer and (v) a Registration Rights Agreement dated as of May 13, 2005 executed
        by the Company in favor of Meyer (collectively the &#8220;Meyer Agreements&#8221;). Upon the
        Triggering Event all sums due pursuant to the Meyer Agreements, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Meyer in the amount of $101,178. Prior to the Triggering Event the indebtedness
        of the Company to Meyer would mature on August 19, 2005, unless extended
        for up
        to four successive three-month periods by the Company&#8217;s satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied. The obligations of the Company to Meyer
        are
        secured by all of the assets of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company, Leverage, Koyah, Ventures, Raven, Microcap and Meyer are parties
        to an
        Intercreditor Agreement, dated as of January 19, 2004, as amended as of May
        13,
        2005 (as so amended, the &#8220;Intercreditor Agreement&#8221;) in connection with the
        consummation of the transactions contemplated by the Meyer Agreements. This
        Intercreditor Agreement allocates the relative priorities of the liens held
        by
        each of the parties thereto on the assets of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item&#160;9.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statements and Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  Statements of Business Acquired</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma Financial Information.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 54pt">
              </td>
              <td align="left" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release of the Company dated June 24,
                  2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 hereunto
        duly authorized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                  June 30, 2005 &#160;</font></div>
              </td>
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AURA
                SYSTEMS, INC..</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td>&#160;</td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Raymond
                Yu</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="FONT-FAMILY: Times New Roman" size="1">&#160;</font></td>
              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raymond
                  Yu,</font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                  and Chief Executive Officer</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">&#160;</div>
        <div>
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font size="2">EXHIBIT
        INDEX </font></strong><br></div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" style="WIDTH: 54pt"><u><font size="2">No.</font></u>&#160;</td>
                <td align="left"><u><font size="2">Document</font></u>&#160;</td>
              </tr>

          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" style="WIDTH: 54pt">&#160;</td>
                <td align="left">&#160;</td>
              </tr>

          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td align="left" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                    Release of the Company dated June 24,
                    2005.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
    </div>
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{"company-data": {"conformed-name": "AURA SYSTEMS INC", "cik": "0000826253", "assigned-sic": "3690", "irs-number": "954106894", "state-of-incorporation": "DE", "fiscal-year-end": "0228"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-17249", "film-number": "05929332"}, "business-address": {"street1": "2335 ALASKA AVE", "city": "EL SEGUNDO", "state": "CA", "zip": "90245", "phone": "3106435300"}, "mail-address": {"street1": "2335 ALASKA AVE", "city": "EL SEGUNDO", "state": "CA", "zip": "90245"}}
UNITED
        STATES
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): June 24, 2005
AURA
        SYSTEMS, INC.
(Exact
        name of registrant as specified in charter)
Delaware
0-17249
95-4106894
(State
                  or other
jurisdiction
                  of
incorporation)
(Commission
                  File
Number)
(IRS
                  Employer
Identification
                  No.)
2335
        Alaska Avenue, El Segundo California 90245
(Address
        of principal executive offices) (Zip Code)
Registrant's
        telephone number, including area code: (310) 643-5300
Not
        Applicable
(Former
        name or former address, if changed since last report)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):
¨
Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)
¨
Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)
¨
Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  (17 CFR
                  240.14d-2(b))
¨
Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  (17 CFR
                  240.13e-4(c))
Item 1.03.
Bankruptcy
        or Receivership.
On
        June
        24, 2005 the Company filed a voluntary petition for relief under Chapter
        11 of
        Title 11 of the United States Code (the "Bankruptcy Code"). The Company filed
        its Chapter 11 bankruptcy petition with the United States Bankruptcy Court
        for
        the Central District of California (Los Angeles Division) (the "Bankruptcy
        Court"), Case Number LA 05-24550 SB. The Company expects to continue its
        day-to-day business operations as a "debtor-in-possession" under the
        jurisdiction of the Bankruptcy Court and in accordance with the applicable
        provisions of the Bankruptcy Code.
Item 2.04.
Triggering
        Events That Accelerate or Increase a Direct Financial Obligation or an
        Obligation under an Off-Balance Sheet Arrangement.
The
        filing by the Company of its voluntary petition for relief under the Bankruptcy
        Code discussed in Item 1.03 above (the "Triggering Event") is an event which
        triggers the acceleration of each of the direct financial obligations of
        the
        Company described below:
As
        of
        June 24, 2005 the Company was indebted to Koyah Leverage Partners, L.P.,
        a
        Delaware limited partnership ("Leverage"), for loans bearing interest at the
        rate of 10% per annum made to the Company by Leverage pursuant to the terms
        of
        (i) an Agreement dated as of July 24, 2003 between the Company and Leverage,
        (ii) Convertible Promissory Notes, each dated as of July 24, 2003, executed
        by
        the Company in favor of Leverage, (iii) a Security Agreement dated as of
        July
        24, 2003 executed by the Company in favor of Leverage (as collateral agent
        for
        itself and for Koyah Partners, L.P., a Delaware limited partnership ("Koyah")),
        (iv) a Stock Pledge Agreement dated as of August 18, 2003 executed by the
        Company in favor of Leverage (as collateral agent for itself and for Koyah)
        and
        (v) a Registration Rights Agreement dated as of August 19, 2004 executed
        by the
        Company in favor of Leverage (collectively the "Leverage Agreements"). The
        Leverage Agreements were amended pursuant to the terms of an Amendment and
        Conversion Agreement dated as of August 19, 2004 (the "Amendment") among the
        Company, Leverage, Koyah, Edgar Appleby, an individual, Prudent Bear Fund,
        Inc.,
        a Maryland corporation, Koyah Ventures LLC, a Delaware limited liability
        corporation ("Ventures") and Raven Partners, LP, a Delaware limited partnership
        ("Raven"). Upon the Triggering Event all sums due pursuant to the Leverage
        Agreements, as amended by the Amendment, became immediately due and payable.
        As
        of June 24, 2005 the Company was indebted to Leverage in the amount of
        $3,662,345. Prior to the Triggering Event the indebtedness of the Company
        to
        Leverage would mature on August 19, 2005, unless extended for up to four
        successive three-month periods by the Company's satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied. The obligations of the Company to Leverage
        are secured by all of the assets of the Company.
As
        of
        June 24, 2005 the Company was indebted to Koyah for loans bearing interest
        at
        the rate of 10% per annum made to the Company by Koyah pursuant to the terms
        of
        (i) an Agreement dated as of July 24, 2003 between the Company and Koyah,
        (ii)
        Convertible Promissory Notes, each dated as of July 24, 2003, executed by
        the
        Company in favor of Koyah, (iii) a Security Agreement dated as of July 24,
        2003
        executed by the Company in favor of Leverage (as collateral agent for Leverage
        and Koyah), (iv) a Stock Pledge Agreement dated as of August 18, 2003 executed
        by the Company in favor of Leverage (as collateral agent for itself and for
        Koyah) and (v) a Registration Rights Agreement dated as of August 19, 2004
        executed by the Company in favor of Koyah (collectively the "Koyah Agreements").
        The Koyah Agreements were amended pursuant to the terms of the Amendment.
        Upon
        the Triggering Event all sums due pursuant to the Koyah Agreements, as amended
        by the Amendment, became immediately due and payable. As of June 24, 2005
        the
        Company was indebted to Koyah in the amount of $915,586. Prior to the Triggering
        Event the indebtedness of the Company to Koyah would mature on August 19,
        2005,
        unless extended for up to four successive three-month periods by the Company's
        satisfaction of certain conditions precedent. The Company believes that none
        of
        such conditions precedent is likely to be satisfied. The obligations of the
        Company to Koyah are secured by all of the assets of the Company.
As
        of
        June 24, 2005 the Company was indebted to Ventures for a loan bearing interest
        at the rate of 10% per annum made to the Company by Ventures pursuant to
        the
        terms of (i) an Agreement dated as of June 14, 2004 between the Company and
        Ventures, (ii) a Convertible Promissory Note dated as of June 14, 2004 executed
        by the Company in favor of Ventures, (iii) a Security Agreement dated as
        of June
        14, 2004 executed by the Company in favor of Ventures, (iv) a Stock Pledge
        Agreement dated as of June 14, 2004 executed by the Company in favor of Ventures
        and (v) a Registration Rights Agreement dated as of August 19, 2004 executed
        by
        the Company in favor of Ventures (collectively the "Ventures Agreements"). The
        Ventures Agreements were amended pursuant to the terms of the Amendment.
        Upon
        the Triggering Event all sums due pursuant to the Ventures Agreements, as
        amended by the Amendment, became immediately due and payable. As of June
        24,
        2005 the Company was indebted to Ventures in the amount of $358,392. Prior
        to
        the Triggering Event the indebtedness of the Company to Ventures would mature
        on
        August 19, 2005, unless extended for up to four successive three-month periods
        by the Company's satisfaction of certain conditions precedent. The Company
        believes that none of such conditions precedent is likely to be satisfied.
        The
        obligations of the Company to Ventures are secured by all of the assets of
        the
        Company.
As
        of
        June 24, 2005 the Company was indebted to Raven for a loan bearing interest
        at
        the rate of 10% per annum made to the Company by Raven pursuant to the terms
        of
        (i) an Agreement dated as of June 14, 2004 between the Company and Raven,
        (ii) a
        Convertible Promissory Note dated as of June 14, 2004 executed by the Company
        in
        favor of Raven, (iii) a Security Agreement dated as of June 14, 2004 executed
        by
        the Company in favor of Raven, (iv) a Stock Pledge Agreement dated as of
        June
        14, 2004 executed by the Company in favor of Raven and (v) a Registration
        Rights
        Agreement dated as of August 19 2004 executed by the Company in favor of
        Raven
        (collectively the "Raven Agreements"). The Raven Agreements were amended
        pursuant to the terms of the Amendment. Upon the Triggering Event all sums
        due
        pursuant to the Raven Agreements, as amended by the Amendment, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Raven in the amount of $87,726. Prior to the Triggering Event the indebtedness
        of the Company to Raven would mature on August 19, 2005, unless extended
        for up
        to four successive 3 month periods by the Company's satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied. The obligations of the Company
        to
        Raven are secured by all of the assets of the Company.
As
        of
        June 24, 2005 the Company was indebted to Koyah Microcap Partners Master
        Fund,
        L.P., a Cayman Islands limited partnership ("Microcap") for loans bearing
        interest at the rate of 10% per annum made to the Company by Microcap pursuant
        to the terms of (i) an Agreement dated as of December16, 2004 between the
        Company and Microcap, (ii) Convertible Promissory Notes dated as of December
        16,
        2004 and as of December 23, 2004, respectively, executed by the Company in
        favor
        of Microcap, (iii) a Security Agreement dated as of December 16, 2004 executed
        by the Company in favor of Microcap, (iv) a Stock Pledge Agreement dated
        as of
        December 16, 2004 executed by the Company in favor of Microcap and
        (v) a
        Registration Rights Agreement dated as of December 16, 2004 executed by the
        Company in favor of Microcap (collectively the "Microcap Agreements"). Upon the
        Triggering Event all sums due pursuant to the Microcap Agreements, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Microcap in the amount of $452,147. Prior to the Triggering Event the
        indebtedness of the Company to Microcap would mature on August 19, 2005,
        unless
        extended for up to four successive three-month periods by the Company's
        satisfaction of certain conditions precedent. The Company believes that none
        of
        such conditions precedent is likely to be satisfied. The obligations of the
        Company to Microcap are secured by all of the assets of the Company.
As
        of
        June 24, 2005 the Company was indebted to Ezra Meyer, an individual ("Meyer")
        for loans bearing interest at the rate of 10% per annum made to the Company
        by
        Meyer pursuant to the terms of (i) an Agreement dated as of May 13, 2005
        between
        the Company and Meyer, (ii) a Convertible Promissory Note dated as of May
        13,
        2005 executed by the Company in favor of Meyer, (iii) a Security Agreement
        dated
        as of May 13, 2005 executed by the Company in favor of Meyer, (iv) a Stock
        Pledge Agreement dated as of May 13, 2005 executed by the Company in favor
        of
        Meyer and (v) a Registration Rights Agreement dated as of May 13, 2005 executed
        by the Company in favor of Meyer (collectively the "Meyer Agreements"). Upon the
        Triggering Event all sums due pursuant to the Meyer Agreements, became
        immediately due and payable. As of June 24, 2005 the Company was indebted
        to
        Meyer in the amount of $101,178. Prior to the Triggering Event the indebtedness
        of the Company to Meyer would mature on August 19, 2005, unless extended
        for up
        to four successive three-month periods by the Company's satisfaction of certain
        conditions precedent. The Company believes that none of such conditions
        precedent is likely to be satisfied. The obligations of the Company to Meyer
        are
        secured by all of the assets of the Company.
The
        Company, Leverage, Koyah, Ventures, Raven, Microcap and Meyer are parties
        to an
        Intercreditor Agreement, dated as of January 19, 2004, as amended as of May
        13,
        2005 (as so amended, the "Intercreditor Agreement") in connection with the
        consummation of the transactions contemplated by the Meyer Agreements. This
        Intercreditor Agreement allocates the relative priorities of the liens held
        by
        each of the parties thereto on the assets of the Company.
Item 9.01.
Financial
        Statements and Exhibits.
(a)
Financial
                  Statements of Business Acquired
None
(b)
Pro
                  Forma Financial Information.
None
(c)
Exhibits
99.1
Press
                  Release of the Company dated June 24,
                  2005.
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 hereunto
        duly authorized.
Date:
                  June 30, 2005
AURA
                SYSTEMS, INC..
By:
/s/ Raymond
                Yu
Raymond
                  Yu,
President
                  and Chief Executive Officer
EXHIBIT
        INDEX
No.
Document
99.1
Press
                    Release of the Company dated June 24,
                    2005.