Financial Statement Restatements

9 Months Ended

Nov. 30, 2019

Accounting Changes and Error Corrections [Abstract]

FINANCIAL STATEMENT RESTATEMENTS

NOTE 10 – FINANCIAL STATEMENT RESTATEMENTS

The Company issued an amended report on Form 10-K/A on October 24, 2019 for the fiscal year ended February 28, 2019 that corrected misstatements of its financial statements as of February 28, 2019. The following tables describe one of those misstatements, which should have been recorded in the nine-months ended November 30, 2018.

i. Selling, general & administrative expense was overstated by $1,991,740 in the statement of operations for the three and nine-months ended November 30, 2108 due to an incorrect fair value associated with common shares issued during August 2018 to BetterSea. The basic and diluted loss per share was also overstated by $0.05 per share for the nine-months ended November 30, 2018.

AURA SYSTEMS, INC.

STATEMENT OF OPERATIONS (RESTATED)

FOR THE NINE-MONTHS ENDED NOVEMBER 30, 2018

	Nine-months ended November 30, 2018
	Previously Reported			Restatement Adjustment				Restated
Net revenue	$	39,274		$	-			$	39,274
Cost of goods sold		110,026			-				110,026
Gross loss		(70,752	)		-				(70,752	)
Operating expenses
Engineering, research & development		302,293			-				302,293
Selling, general & administration		4,789,451			(1,991,740	)	i.		2,797,711
Total operating expenses		5,091,744			(1,991,740	)			3,100,004
Income (loss) from operations		(5,162,496	)		1,991,740				(3,170,756	)
Other expense
Interest expense, net		848,593			-				848,593
Other income		(304,142	)		-				(304,142	)
Total other expense		544,451			-				544,451
Net income (loss)	$	(5,706,947	)	$	1,991,740			$	(3,715,207	)
Basic income (loss) per share	$	(0.13	)	$	0.04		i.	$	(0.08	)
Basic weighted average shares outstanding		44,356,148			44,356,148				44,356,148
Diluted income (loss) per share	$	(0.13	)	$	0.04		i.	$	(0.08	)
Dilutive weighted average shares outstanding		44,356,148			44,356,148				44,356,148

	Nine-months ended November 30, 2018
	Previously Reported			Restatement Adjustment				Restated
Net loss	$	(5,706,947	)	$	1,991,740		i.	$	(3,715,207	)
Adjustments to reconcile net loss to cash used in operating activities
FMV of warrants issued for services		438,826			-				438,826
Gain on settlement of debt		-			-				-
Stock issued for services		1,992,250			(1,991,740	)	i.		510
(Increase) decrease in
Accounts receivable		-			-				-
Other current assets		(8,804	)		-				(8,804	)
Increase (decrease) in
Accts payable, customer deposits and accrued expenses		1,382,524			-				1,382,524
Cash used in operating activities		(1,902,151	)		-				(1,902,151	)
Cash flows from financing activities
Issuance of common stock					-				-
Payment on notes payable		(50,000	)		-				(50,000	)
Proceeds from subscription receivable		1,225,000			-				1,225,000
Cash provided by financing activities		1,175,000			-				1,175,000
Net incr (decr) in cash and cash equivalents		(727,151	)		-				(727,151	)
Beginning cash		748,008			-				748,008
Ending cash	$	20,857		$	-			$	20,857
Cash paid in the period for:
Interest	$	37,500		$	-			$	37,500
Income taxes	$	-		$	-			$	-