Aura Systems, Inc. (OTCMKTS:AUSI) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement.

As previously reported in a Current Report on Form 8-K filed on
February 1, 2017 (the Prior Report), the Registrant has entered
entered into a Sino-Foreign Cooperative Joint Venture Contract
(the JV Agreement) with Jiangsu AoLunTe Electrical Machinery
Industrial Co., Ltd. (AoLunTe) to which the parties will
establish a joint venture company (the JV) for the purposes of
manufacturing and distributing certain mobile power products
based on the Registrants patented, integrated, mobile power
generator and power management system that installs in a motor
vehicle and deliver, on-location, both AC and DC electricity for
any end user, as well as such other products as may be agreed
upon from time to time between Registrant and the JV , in the
Peoples Republic of China (PRC). Contributions by Registrant and
AoLunTe to the JV are conditioned upon the issuance of approval
for the establishment of the JV by the applicable PRC
governmental authorities and the issuance of a business license
to the JV which authorizes the full business scope of the JV, and
in each instance the approval by Registrant and AoLunTe of any
changes required to the JV Agreement, Articles of Association of
business scope of the JV.

Registrant was advised on March 7, 2017 by AoLunTe that each
applicable governmental authority of the Peoples Republic of
China PRC) has approved the establishment of the JV and that a
business license is being issued to the JV. It is Registrants
understanding that no material changes were required to the JV
Agreement, Articles of Association of business scope of the JV.

For purposes of the JV Agreement, the Establishment Date is the
first business day after receipt of the certificate of approval
issued by the PRC governmental authority responsible for
approving the JV Agreement and the Articles of Association of the
JV. Registrant expects the certificate of approval to be issued
within the next ten (10) days.

to the JV Agreement, AoLunTe will contribute the RMB equivalent
of $500,000 in cash within 30 days after the Establishment Date,
and also will contribute tangible and intangible assets
(including but not limited to equipment, land and facilities of
the site for the JV) not later than 180 days after the
Establishment Date valued at 9.25 million in US dollars.
Registrant will contribute the RMB equivalent of $250,000 in US
dollars within 45 days after the Establishment Date, as well as
an exclusive, non-assignable, and royalty-free license in the PRC
to use Registrants intellectual property with respect to the
Selected Mobile Power Products in the form attached to the JV
Agreement.

AoLunTe is obligated by the JV Agreement to purchase from
Registrant $1,250,000 of product, payable in four payments after
the Establishment Date in the amounts of $500,000, $250,000,
$250,000, and $250,000. The fourth payment will be offset against
a prior advance for products paid by AoLunTe to Aura.

A copy of the JV Agreement was attached as Exhibit 10.1 to the
Prior Report.

SECTION 8 OTHER EVENTS

Item 8.01 Other Events.

The Registrant currently is delinquent in filing its Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q, and
consequently neither the narrative nor the financial information
contained in the most recent such reports should be relied upon
as presenting a materially accurate description of the current
business or financial condition of the Registrant. The Registrant
will seek to become current in its filings with the Securities
and Exchange Commission as soon as reasonably practicable.

About Aura Systems, Inc. (OTCMKTS:AUSI)

Aura Systems, Inc. (Aura) designs, assembles, tests and sells its Axial Flux induction machine (AF) known as the AuraGen for industrial and commercial applications and VIPER for military applications. The Company’s system when applied as a generator uses the engine of a vehicle or any other prime mover to create mechanical energy and the AuraGen converts the mechanical energy to electric power. Its control system is used to deliver such power to the user. When used as an electric motor, its system delivers mechanical power to drive mechanical devices. The Company focuses on mobile power applications and thus the Company requires interface kits to prime movers. In addition the Company has interface kits for numerous model of military HMMWV, as well as other military vehicles. The Company is also working with a number of customers on integrating its AuraGen/VIPER power solution with stand alone engines knows as Auxiliary-Power-Unit (APU) to be used in emergency rescue.

Aura Systems, Inc. (OTCMKTS:AUSI) Recent Trading Information

Aura Systems, Inc. (OTCMKTS:AUSI) closed its last trading session up +0.010 at 0.170 with 22,505 shares trading hands.