What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-06-13 compared with 2024-06-04 · 331 added, 515 removed, 344 unchanged (71% of the section changed)

3 unchanged sentences

motors and generators.

Aura’s axial flux induction motor technology (“AAFIM”) provides an industrial solution that

does not use any permanent magnets, no rare earth elements, is smaller and lighter, uses significant less materials (just copper and

steel), very high efficiency, significantly less copper, highly reliably, very robust, and no scheduled maintenance.

“Axial flux motors represent

a leap forward in motor technology, offering high efficiency, compact design, and lightweight construction.

As industries continue to

push for more efficient technologies, the axial flux motor design is a promising solution that combines power, scalability, and superior

Its ability to deliver energy savings while minimizing space and weight is likely to propel this motor design into wide use

across many sectors, shaping the future of motor-driven systems .” 1

Aura’s axial flux induction

motor technology (“AAFIM”) provides an industrial solution that does not use any permanent magnets, no rare earth elements,

is smaller and lighter, uses (i) significant less materials (just copper and steel), (ii) provides very high efficiency, (iii) significantly

less copper, (iv) highly reliably and (v) does not require scheduled maintenance .

The industrial electric motor

market is expected to grow from an estimated USD 113.3 billion in 2020 to USD 169.1 billion by 2026, at a CAGR of 6.9%

during the forecast period 1 .

market is expected to grow from an estimated USD 113.3 billion in 2020 to USD 169.1 billion by 2026, at a CAGR of 6.9% during

the forecast period 2 .

Electric motors are employed

in infrastructure, major structures, and industries all around the world.

Each year, almost 30 million motors are sold

for industrial use alone 2 .

Each year, almost 30 million motors are sold for

industrial use alone 3 .

Electric motors find application in a variety of equipment throughout industry.

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applications include:

(i) compressors, (ii) fans and blowers, (iii) heavy duty equipment, (iv) HVAC systems, (v) pumps and (vi)

machine tools (lathes and mills, etc.).

(i) compressors, (ii) fans and blowers, (iii) heavy duty equipment, (iv) HVAC systems, (v) pumps and (vi) machine

tools (lathes and mills, etc.).

The universal global trend

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million electric motors will be required per year by 2032 to meet the demand for the growing EV market 5 .

San Global Research 2024 stated

“Various motor types, including the switched reluctance motor (SRM), interior permanent magnet synchronous motor (IPM), induction

motor (IM), and switched flux motor (SFM), have been employed in EV applications.

Among these options, the axial flux induction

motor (AFIM) stands out, drawing attention for its distinct advantages over conventional motors when integrated into EV systems .

The AFIM boasts superior power-to-weight and diameter-to-length ratios, compact construction, high efficiency, optimal utilization

of active materials, and enhanced ventilation and cooling.

These unique features position the axial flux induction motor as a promising

and strategic choice, contributing to the ongoing evolution and improvement of electric vehicle technology.”

For Electric Vehicle applications,

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In addition, AAFIM costs are significantly lower than the equivalent PM machines.

1 Aerospace and Defense | 4th September 2024

Markets & Markets Electric Motor Market Published Date:

November 2020 | Report Code:

Precedence Research October 6, 2021

Will rare earth be eliminated in EV motor-Dr.

James Edmondson November 2, 2020

Emerging Electric Motor Technologies for the EV Market September 28, 2021, Luke Gear

The history of electric machines

5 unchanged sentences

(i) strong axial magnetic attraction force between the stator

and the rotor, (ii) fabrication difficulties such as cutting the slots in laminated cores, (iii) high cost involved in manufacturing

the laminated stator core, (iv) difficulties in assembling the machine and keeping a uniform air gap and (v) providing a laminated rotor

that can withstand the large centripetal forces.

Markets & Markets Electric Motor Market Published

November 2020 | Report Code:

Precedence Research October 6, 2021

Will rare earth be eliminated in EV motor-Dr.

Edmondson November 2, 2020

Emerging Electric Motor Technologies for the EV Market

September 28, 2021, Luke Gear

In recent years there has been great interest

in axial flux topology for numerous industrial, commercial, and electric mobility motor and power generation applications.

date the commercial focus in axial flux motors has been designs using rare earth permanent magnets (“PM”).

The use of rare

earth permanent magnets in axial flux topology can be attributed to the historical belief that it is “ difficult to manufacture

a laminated rotor with a cage winding for an axial flux machine.

If the cage windings are replaced with nonmagnetic high conductivity

(Cu or AL) homogenous disk or steel disk coated with Cu layer, the performance of the machine drastically deteriorates” ( Axial

Flux Permanent Magnet Brushless Machines by Jacek F Gieras, Rong-Jie Wang and Maarten K Kamper 2008).

and the rotor, (ii) fabrication difficulties such as cutting the slots in laminated cores, (iii) high cost involved in manufacturing the

laminated stator core, (iv) difficulties in assembling the machine and keeping a uniform air gap and (v) providing a laminated rotor that

can withstand the large centripetal forces.

In recent years there has

been great interest in axial flux topology for numerous industrial, commercial, and electric mobility motor and power generation applications.

However, to date the commercial focus in axial flux motors has been designs using rare earth permanent magnets (“PM”).

Nearly all the supply chain

for rare earths is concentrated in China and the chemistry associated with processing rare earths is challenging, expensive, and hazardous.

Reliance on China for raw material and magnet production, can influence global markets through (i) production decisions and (ii) geo-political

decisions by the Chinese government.

The extraction of rare earths

“ produce mountains of toxic waste.

For every ton of rare earth produced, the mining process yields 13-kg

of dust, 9,600-12,000 cubic meters of waste gas, 75 cubic meters of wastewater, and one ton of radioactive residue.

This stems from the

fact that rare earth element ores have metals that, when mixed with leaching pond chemicals , contaminate air,

water, and soil.

Most worrying is that rare earth ores are often laced with radioactive thorium and uranium, which result

in especially detrimental health effects.

Overall, for every ton of rare earth, 2,000 tons of toxic waste are produced.

April 15, 2025, China has restricted the export of several crucial rare earth minerals to the United States in response to President

Donald Trump’s tariff increases.

China has used its rare earths monopoly as a weapon before, notably against Japan in

In September of that year, the Japanese coast guard arrested the captain of a Chinese fishing boat that collided with Japanese ships

off the cost of the disputed Senkaku Islands.

China retaliated by choking off Japan’s supply of rare earth minerals.

Japan quickly gave

in and released the fishing boat captain, but it still suffered significant economic damage from the rare earths blacklist for years

A significant reason for industry

passing on Axial Flux Induction solution and focus on a PM solution could potentially be attributed to page 6 in Jacek F

Gieras book, where they pointed out that it is “ difficult to manufacture a laminated rotor with a cage winding for an axial

flux machine.

If the cage windings are replaced with nonmagnetic high conductivity (Cu or AL) homogenous disk or steel disk coated with

Cu layer, the performance of the machine drastically deteriorates.”

Aura Systems with its

axial flux induction technology solved the issues related to the rotor back in 2002 and has shipped over 11,000 axial flux induction

machines in the 5-15 kW range to numerous military and commercial users .

Aura’s proprietary rotor does not require any

laminates and provides the structural integrity to withstand very large centripetal forces while, at the same time, providing the proper

electric and magnetic properties without the usual issues associated with a solid rotor or a steel disk coated with a copper layer.

ID TechEX research forecasts

a huge increase in demand of axial flux motors over the next 10 years, with first applications in high performance vehicles and certain

hybrid applications 5 .

axial flux induction technology solved the issues related to the rotor back in 2002 and has shipped over 11,000 axial flux induction machines

in the 5-15 kW range to numerous military and commercial users .

Aura’s proprietary rotor does not require any laminates

and provides the structural integrity to withstand very large centripetal forces while, at the same time, providing the proper electric

and magnetic properties without the usual issues associated with a solid rotor or a steel disk coated with a copper layer.

Aura has during the

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is now equal to or greater than the very best of both axial and radial permanent magnet machines.

Of course, this is done using only

copper and steel with aluminum for housing at a fraction of the cost of equivalent PM machines.

Of course, this is done using only copper

and steel with aluminum for housing at a fraction of the cost of equivalent PM machines.

so “green” technology:

the complicated legacy of rare earth mining 12.aug.2021 Harvard international review

Breitbart news John Hayward April 15, 2025

Aura’s Axial Flux Induction

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Aura’s axial flux induction technology used for mobile power generation was first used in a combat zone by U.S.

forces in the U.N actions in the Balkans and since then, the U.S.

in the U.N actions in the Balkans and since then, the U.S.

military has used it in combat zones in both Iraq and Afghanistan.

To date the Company shipped over 11,000 systems for mobile power applications in the 5-15 kW range of which over 3,000 systems were for

various military applications.

the Company shipped over 11,000 systems for mobile power applications in the 5-15 kW range of which over 3,000 systems were for various

military applications.

Aura’s Axial Flux Induction

Machine has inherited advantages such as (i) no rare earth or any other kind of permanent magnets, (ii) significantly less copper (60%

less) than equivalent traditional induction motors, (iii) significantly higher energy density, (iv) fewer overall materials, and (v)

high efficiency.

less) than equivalent traditional radial flux induction motors, (iii) significantly higher energy density, (iv) fewer overall materials,

and (v) high efficiency.

In addition, being an induction machine, Aura’s solution does not have any brushes or commutators and therefore

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(“AAFIM”) Competitive Edge

○ Performance-

AAFIM provides the highest power density across all other known motor technologies with energy

density of more than 50 kW/liter for machines in the 250-kW range.

In addition, Aura’s

solution provides efficiencies that are higher than any other solutions for commercial and

industrial applications.

For 250 kW EV applications Aura’s designs show efficiency

of more than 96%.

AAFIM solution also has significantly lower rotor inertia than other

This increases the machine efficiency even further since it requires less input

torque to move the rotor.

and weight-Aura’s solution is significantly smaller in volume and has lower weight

than any known solution for equivalent power rated machines (even includes PM machines).

When compared to traditional radial flux (“RF”) induction machines, AAFIM has

less than 40 % of the weight and more than 40% reduction in volume.

The AAFIM pancake design

creates a solution that can be integrated with vehicles and boats for seamless exportable

provides a significant cost advantage over equivalent induction and PM machines.

advantage comes from (a) the higher energy density which means less materials and (b) in

the case of PM machines significant cost advantage for equivalent machines by just elimination

of the permanent magnets.

When compared to radial flux induction, Aura’s solution uses

approximately 60% less copper.

Due to the fractional materials used and the simple manufacturing

processes Aura’s high-performance machines are less expensive to manufacture than other

equivalent machines.

Advantages-Aura’s solution is extremely reliable with the only components to wear out

are the bearings.

AAFIM do not require any scheduled maintenance and the only materials used

are copper and steel for the active components and aluminum for the housing.

These materials

are readily available everywhere and are not controlled by any country or political group.

Performance- AAFIM provides the highest power density across all other known motor technologies with energy density of more than 45 kW/liter for machines in the 250-kW range.

In addition, Aura’s solution provides efficiencies that are higher than any other solutions for commercial and industrial applications.

For 250 kW EV applications Aura’s designs show efficiency of more than 97%.

AAFIM solution also has significantly lower rotor inertia than other solutions.

This increases the machine efficiency even further since it requires less input torque to move the rotor.

Size and weight-Aura’s solution is significantly smaller in volume and has lower weight than any known solution for equivalent power rated machines (even includes PM machines).

When compared to traditional radial flux (“RF”) induction machines, AAFIM has less than 40% of the weight and more than 40% reduction in volume.

The AAFIM pancake design creates a solution that can be integrated with vehicles and boats for seamless exportable power.

Cost-AAFIM provides a significant cost advantage over equivalent induction and PM machines.

The cost advantage comes from (a) the higher energy density which means less materials and (b) in the case of PM machines significant cost advantage for equivalent machines by just elimination of the permanent magnets.

When compared to radial flux induction, Aura’s solution uses approximately 60% less copper.

Due to the fractional materials used and the simple manufacturing processes Aura’s high-performance machines are less expensive to manufacture than other equivalent machines.

Other Advantages-Aura’s solution is extremely reliable with the only components to wear out are the bearings.

AAFIM do not require any scheduled maintenance, and the only materials used are copper and steel for the active components and aluminum for the housing.

These materials are readily available everywhere and are not controlled by any country or political group.

In addition to the performance, Aura’s rotor lends itself to mass manufacturing.

of Aura’s axial flux induction machines have been operating for twenty years and have

shown remarkable reliability.

Emerging Electric Motor Technologies for the EV Market

September 28, 2021 Luke Gear Electric motors

After a lengthy development

period, the Company first began commercializing the AuraGen ® in late 1999 and early 2000.

In 2001, the first commercial

AuraGen ® product was a 4-pole machine which, when combined with our proprietary and patented Electronic Control Unit (“ECU”),

generated 5 kW of exportable 120/240 VAC power.

We subsequently added a 6-pole configuration and introduced our patented bi-directional

power supply that provided for 8.5 kW watts of exportable power with the capability of providing both alternating (“AC”)

and direct (“DC”) power simultaneously.

In Fiscal 2008, the Company introduced an AuraGen ® system that generated

up to 17 kW of continuous power by combining two 8.5 kW systems on a single shaft.

Starting in July 2019, we began to redesign and upgrade

the ECU and develop new axial flux generator configurations.

As a result of such efforts, our redesigned ECU allows us to replace the

old 5 kW solution with a 6.5 kW solution using the same 4-pole generator as well as to upgrade the output of the 6-pole machine from

8.5 kW to 12 kW.

Our more recent efforts have

resulted in our new 10 kW mobile power generator that which is approximately 20% smaller in diameter and 10% smaller in axial length than

the legacy 8.5 kW solution and we have completed the design and are now in the process of fabrication of a 250-kW axial flux motor which

has approximately the same dimensions as our legacy 8.5 kW mobile power solution.

This new 250 kW motor has a base speed of 5,000 rpm

and an operating range of up to 20,000 rpm.

Many of Aura’s axial flux induction machines have been operating for twenty years and have shown remarkable reliability.

Our recent efforts have resulted

in our new 10 kW mobile power generator that which is approximately 20% smaller in diameter and 10% smaller in axial length than the legacy

8.5 kW solution.

This new 10 kW has generated interest from the US military.

We completed the design and fabricated a prototype of a 250-kW

axial flux motor which has approximately the same dimensions as our legacy 8.5 kW mobile power solution and is oil cooled.

kW motor has a base speed of 5,000 rpm and an operating range of up to 20,000 rpm.

We have also completed the design and started fabrication

a 250-kW generator that is air cooled and will operate at 3600 rpm.

We already have interest for this new 250-kwgenerator from Israel,

South Korea, and others.

We recently completed the designs for a 5-horsepower motor for swimming pools applications and a 10-kW motor

for farm irrigation applications.

Both of those motors will be put into production in the next few quarters

In March 2019, stockholders

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Lempert had been validly elected by the holders of a majority of the Company’s outstanding

stock acting by written consent, and (c) the Company’s Board of Directors validly consists of Cipora Lavut, David Mann, Robert

Lempert, Gary Douglas and Salvador Diaz-Versón, Jr.

stock acting by written consent, and (c) the Company’s Board of Directors validly consists of Cipora Lavut, David Mann, Robert Lempert,

Gary Douglas and Salvador Diaz-Versón, Jr.

See Item 3, Legal Proceedings for more information.

Following this ruling

by the Court of Chancery, the newly confirmed Board of Directors terminated the employment of Melvin Gagerman, who had served as CEO

and CFO of the Company since 2006, and installed Ms.

Following this ruling by the Court

of Chancery, the newly confirmed Board of Directors terminated the employment of Melvin Gagerman, who had served as CEO and CFO of the

Company since 2006, and installed Ms.

Lavut as President, Mr.

Mann as Chief Financial Officer and Dr.

Lempert as Secretary

of the Company.

Impact of the COVID-19 Pandemic

As a result of the COVID-19

pandemic, we have experienced varying degrees of business disruptions and periods of closure of our corporate facilities as have our

customers, suppliers, and vendors, resulting in significant adverse impacts to our operating results.

Resurgences in certain parts of

the world resulted in further business disruptions periodically throughout Fiscal 2023, Fiscal 2022 and Fiscal 2021.

Such disruptions

have continued into Fiscal 2024, impacting our business.

Lempert as Secretary of the Company.

Business Arrangements

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restructured in excess of $30 million of debt.

Also, during Fiscal 2018, the Company signed a joint venture agreement with a Chinese company

to build, service and distribute AuraGen ® mobile power products in China.

Under the Jiangsu Shengfeng joint venture agreement,

the Chinese partner owns 51% of the joint venture and the Company owns 49%.

The Chinese partner contributed a total of approximately $9.75

million to the venture principally in the form of facilities, equipment, and approximately $500 of working capital while the Company contributed

$250 in cash as well as a limited license.

The limited license sold to the joint venture, however, does not permit the venture to manufacture

the AuraGen ® rotor;

rather, the joint venture is required to purchase all rotor subassemblies as well as certain software

elements directly from the Company.

During Fiscal 2018, Jiangsu Shengfeng placed a $1,000 order with the Company including a $700 advance

payment of which the Company has failed to deliver product in accordance with the order received.

On November 20, 2019, the Company reached

a preliminary agreement with Jiangsu Shengfeng regarding the return of $700 previously advanced to the Company.

The preliminary agreement

reached consists of a non-interest-bearing promissory note and a payment plan pursuant to which the $700 was to be paid over an 11-month

period beginning March 15, 2020, through February 15, 2021.

Also, during Fiscal 2018,

the Company signed a joint venture agreement with a Chinese company to build, service and distribute AuraGen ® mobile power

products in China.

Under the Jiangsu Shengfeng joint venture agreement, the Chinese partner owns 51% of the joint venture and the Company

The Chinese partner contributed a total of approximately $9.75 million to the venture principally in the form of facilities,

equipment, and approximately $500,000 of working capital while the Company contributed $250,000 in cash as well as a limited license.

The limited license sold to the joint venture, however, does not permit the venture to manufacture the AuraGen ® rotor;

rather, the joint venture is required to purchase all rotor subassemblies as well as certain software elements directly from the Company.

During Fiscal 2018, Jiangsu Shengfeng placed a $1,000,000 order with the Company including a $700,000 advance payment of which the Company

has failed to deliver product in accordance with the order received.

On November 20, 2019, the Company reached a preliminary agreement

with Jiangsu Shengfeng regarding the return of $700,000 previously advanced to the Company.

The preliminary agreement reached consists

of a non-interest-bearing promissory note and a payment plan pursuant to which the $700,000 was to be paid over an 11-month period beginning

March 15, 2020, through February 15, 2021.

The preliminary agreement was subject to the JV continuous operation.

starting in January 2020 the JV was shut down by the Chinese authority due to the COVID-19 virus.

However, starting in

January 2020 the JV was shut down by the Chinese authority due to the COVID-19 virus.

In 2023, the JV was dissolved and liquidated.

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unpaid balance of $700,000 was reported as part of notes payables – related party in the accompanying financial statements.

During Fiscal

2020, the Company recorded an impairment expense of $250 to fully write-off the Jiangsu Shengfeng investment due to the uncertainty of

the operation.

$700,000 advance payment was from the JV of which Aura owned 49%).

During Fiscal 2020, the Company recorded an impairment expense of $250,000

to fully write-off the Jiangsu Shengfeng investment due to the uncertainty of the operation.

In 2023 the JV was dissolved and liquidated.

In Fiscal 2020 stockholders

of the Company successfully removed Ronald Buschur, William Anderson and Si Ryong Yu from the Company’s Board of Directors and

Cipora Lavut, Mr.

David Mann and Dr.

Robert Lempert as directors of the Company in their stead.

See Item 3, Legal Proceedings

for more information.

Also, in Fiscal 2020, Melvin Gagerman, Aura’s CEO and CFO since 2006, was replaced.

In July 2019 Ms.

succeeded Mr.

Gagerman as President and Mr.

Mann succeeded Mr.

Gagerman as CFO.

Lempert was appointed as Secretary of the Company

by the Board of Directors also in July 2019.

Recent Developments

As a result of the COVID-19

pandemic, we have experienced varying degrees of business disruptions and periods of closure of our corporate facilities as have our

customers, suppliers, and vendors, resulting in significant adverse impacts to our operating results.

Resurgences in certain parts of

the world resulted in further business disruptions periodically throughout Fiscal 2023, Fiscal 2022 and Fiscal 2021.

Such disruptions

have continued into Fiscal 2024, impacting our business.

In fiscal 2025 the Company

completed the design and fabrication of an oil cooled 250 kW electric motor prototype using axial flux induction and completed the design

for a 250-kW air cooled generator using axial flux induction.

In addition, the Company filed 3 new patent applications related to an axial

flux induction machine and subassemblies.

The AuraGen ® /VIPER Product Overview:

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machine can be used as either an electric motor or generator as described above.

Due to the inherit advantages of Aura’s axial

flux induction machine, such as (i) no rare earth or any other kind of permanent magnets, (ii) significantly less copper (60% less) than

equivalent traditional induction motors (iii) higher energy density and (iv) fewer overall materials, we believe Aura’s axial flux

induction motor can be used across a wide range of industries and applications.

Because even a small percent increase in motor efficiency

translates to a market-wide savings of tens of billions of dollars per year and because Aura’s axial flux motor design is more

efficient than equivalent radial flux induction motors, we believe that with the proper financial resources, over time, we can capture

a reasonable share of the global electric motor market.

Due to the inherit advantages of Aura’s axial flux

induction machine, such as (i) no rare earth or any other kind of permanent magnets, (ii) significantly less copper (60% less) than equivalent

traditional induction motors (iii) higher energy density and (iv) fewer overall materials, we believe Aura’s axial flux induction

motor can be used across a wide range of industries and applications.

Even a small percent increase in motor efficiency translates to

a very large market-wide savings of dollars per year.

Since Aura’s axial flux motor designs are more efficient than equivalent radial

flux induction motors, we believe that with the proper financial resources, over time, the Company can capture a reasonable share of the

global electric motor market.

Electric motor are the main

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motors is used for industrial motor systems.

6 The industrial electric motor market is expected to grow from

an estimated USD 113.3 billion in 2020 to USD 169.1 billion by 2026, at a CAGR of 6.9% during the forecast period.

The increase in global electricity consumption, and the use of electrical equipment and machines in different industries and the renewables

sector are major factors driving growth in the electric motor market during the forecast period.

Electric motors are employed

in infrastructure, major structures, and industries all around the world.

Each year, approximal 30 million motors are sold for industrial

8 Electric motors find application in a variety of equipment throughout industry.

Common industrial applications include:

(i) compressors, (ii) fans and blowers, (iii) heavy duty equipment, (iv) HVAC systems, (v) pumps and (vi) machine tools (laths and mills

etc.) Electric motors and generators are one of the most important tools in modern day life.

Numerous studies show a high

potential for energy efficiency improvement in motor systems.

Specifically, system optimization approaches which address the entire motor

system demonstrate high potential for energy savings.

For most countries the saving potentials for energy efficiency improvements in

motor systems with best available technology lie between 9 and 13 percent of the national industrial electricity demand.

8 The increase in global electricity consumption, and the use of electrical equipment

and machines in different industries and the renewables sector are major factors driving growth in the electric motor market.

Aura’s machines

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surface and underwater vessels, electric aircraft, and electric spacecraft.

Identification

of Technoeconomic Opportunities with the Use of Premium Efficiency Motors as Alternative for Developing Countries -Julio R.

October 16, 2020

& Markets Electric Motor Market Published Date:

Nov 2020 | Report Code:

Research October 6, 2021

efficiency in electric motor systems- UN industrial Development Organization Venna 2012

It is rather interesting

to note that, while electric motors have been around for more than 200 years, technical information on electric motors in EVs is very

scarce and generally only found in niche technology sites.

Most EV literature only notes the motor’s relative quietness, its torque

response, its simplicity, and long-term low maintenance requirements.

Most of the space dedicated to the powertrain (motor, motor- controller

and some cases a gear box) is focuses, instead, on the battery—its size and weight, where it sits, the range, how long it takes

to fully charge, etc.

Yet, the majority function of the battery system is to support the electric motors and its controller.

In addition to the batteries,

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from to support 100 million motors per year?).

The global Electric

Vehicle Market size is projected to grow from 4 million units in 2021 to 34.76 million units by 2030.

11 The AC motor

(most power by alternating current) is expected to witness the fastest growth in the electric motor market during the forecast period.

The global electric powertrain

market (electric motor, plus motor controller plus a gear box) size is projected to surpass around US$ 200 billion by 2027 and growing

at a CAGR 13.8%.

The motor/generator component expected to show lucrative growth over the analysis period attributed to the escalated

penetration of plug-in hybrid battery electric vehicle (“PHEV”) and battery electric vehicle (“BEV”) across the

The global Electric Vehicle

Market size is projected to grow from 4 million units in 2021 to 34.76 million units by 2030.

10 The AC motor (most power

by alternating current) is expected to witness the fastest growth in the electric motor market during the forecast period.

There are several key performance

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contribute to increase in range since less weight needs to be moved.

electric motors currently used for electric mobility employ high energy permanent magnets.

13 The magnetic material is usually

sintered neodymium–iron–boron (NdFeB) made or processed in China.

Most electric motors currently

used for electric mobility employ high energy permanent magnets.

11 The magnetic material is usually sintered neodymium–iron–boron

(NdFeB) made or processed in China.

Neodymium is one of the rare earth elements.

around a third of all rare earth reserves and around 80% of global production.

14 In 1987 the Chinese President Deng Xiaoping

famously said, “ the middle East has Oil;

China has around a third of all rare earth reserves

and around 80% of global production.

Identification of Technoeconomic Opportunities with the Use of Premium Efficiency Motors as Alternative for Developing Countries -Julio R.

October 16, 2020

Emerging Electric Motor Technologies for the EV Market September 28, 2021, Luke Gear

Market & market Electric Vehicle Market May 2021 Report code AT4907

James Edmonson Dec 6 2024

Polytechnique Insight January 29, 2025, by Mathieu Xemand

1987 the Chinese President Deng Xiaoping famously said, “ the middle East has Oil;

China has rare earths ”.

An Oxford Analytics Expert briefing on July 30, 2020,

states that “(i) Permanent Magnets will account for 3⁄4 of rare earth demand by 2030 up from 1⁄4 in 2020 and (ii)Electric

vehicles and offshore wind will drive demand and be most vulnerable to supply shocks” .

Analytics Expert briefing on July 30, 2020, states that “(i) Permanent Magnets will account for 3⁄4 of rare earth demand by

2030 up from 1⁄4 in 2020 and (ii)Electric vehicles and offshore wind will drive demand and be most vulnerable to supply shocks” .

magnet (“PM”) machines can be extremely light in weight and highly efficient.

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by the magnets and the only way to change this is with a bucking field.

These bucking currents result in increase in temperature that

These bucking currents result in an increase in temperature that

could affect the magnetization of the permanent magnets.

In PM machines the operating

temperature must be kept at below 100 o C because at that temperature the magnets start to lose some of their magnetization

and at 180 o C they become completely demagnetized.

However, in EV applications at low speed, one needs to use a lot of current

(generating high heat) to get the required torque;

similarly, at high speeds one needs a lot of current for the bucking fields to reduce

temperature must be kept below 100 o C because at that temperature the magnets start to lose some of their magnetization and

at 180 o C they become completely demagnetized.

However, in EV applications at low speed, one needs to use a lot of current (generating

high heat) to get the required torque;

similarly, at high speeds one needs a lot of current for the bucking fields to reduce the B field.

Thus, PM machines for electric mobility require a very complex cooling system.

All the components in the machine are designed

for maximum specifications but operationally the machine is limited by temperature requirements of the magnets.

The cost of such machines

is high due to (i) The permanent magnets, (ii) the complex cooling system and (iii) complex controller.

Emerging Electric Motor Technologies for the EV Market

Sep 28, 2021 Luke Gear

Market & market Electric Vehicle Market May 2021

Report code AT4907

Precedence research June 9, 2021

Will rare earth be eliminated in EV motor-Dr.

Edmondson Nov 2-2020

Vikendi December 29, 2021

In addition to the cost issues,

the permanent magnets are subject to the economic and political control of China.

There is always the possible situation that China

economically weaponizes rare earth and stops sending the refined product to the U.S so they cannot be used in weapon systems or commercial

applications such as electric vehicles.

15 In the past during political disputes China threatened to cease export of

As to environmental, rare-earth

magnets used in EV applications are responsible for major environmental pollution.

The extraction of rare earths “ produce mountains

of toxic waste , with high risk of environmental and health hazards.

For every ton of rare earth produced, the mining process yields 13-kg

of dust, 9,600-12,000 cubic meters of waste gas, 75 cubic meters of wastewater, and one ton of radioactive residue.

This stems from the

fact that rare earth element ores have metals that, when mixed with leaching pond chemicals , contaminate air,

water, and soil.

Most worrying is that rare earth ores are often laced with radioactive thorium and uranium,

which result in especially detrimental health effects.

Overall, for every ton of rare earth, 2,000 tons of toxic waste are

produced .” 17

All the components in the machine are designed for maximum

specifications but operationally the machine is limited by temperature requirements of the magnets.

The cost of such machines is high

due to (i) The permanent magnets, (ii) the complex cooling system and (iii) complex controller.

Unlike the PM machines,

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(iii) require constant maintenance.

Additionally, traditional APUs are generally not considered to be environmentally friendly power

solutions based on their high fuel consumption, loud operating noise levels, and the emissions they secrete into the air.

In comparison,

the AuraGen ® system is small and light enough to generally be integrated directly into existing vehicles, does not require

Additionally, traditional APUs are generally not considered to be environmentally friendly power solutions

based on their high fuel consumption, loud operating noise levels, and the emissions they secrete into the air.

In comparison, the

AuraGen ® system is small and light enough to generally be integrated directly into existing vehicles, does not require

maintenance, nor do they require any set-up or tear-down time.

In addition, there is no heavy lifting required and to contact with hot

The AuraGen ® operation when integrated in a vehicle or a boat is completely seamless and transparent to the

Likewise, for law enforcement,

emergency responders and militaries alike, mobile power is generally a necessity.

Indeed, one of the fastest growing segments for mobile

power is the military marketplace for On-Board-Exportable-Power (OBEP), which is electric power on vehicles that can be used to support

non-vehicle functions such as weapon systems and C 4 I functions (command, control, communication, computers and information).

Currently, most on-board power is provided by APUs.

Given the drawbacks of APUs, however, militaries, law enforcement and first responders

all over the world are seeking more efficient integrated power solutions for their vehicles.

In addition, numerous leisure

users are increasingly demanding mobile power for use of air-conditioning, appliances and other amenities.

China Maintains Dominance in Rare Earth Production-National

defense 9/8/21 by Stew Magnuson

Supercomputers Predict rare earth Market Vulnerability-National

defense 9/9/21 by Stew Magnuson

Not so “green” technology:

the complicated

legacy of rare earth mining 12.

2021 Harvard International Review

The AuraGen ® operation when integrated in a vehicle or a boat is completely seamless and transparent to the user .

Beside stand-alone gensets

8 unchanged sentences

The compact size and significant increase in efficiency of the AuraGen ® provides

an ideal replacement (fit and form) for high output automotive alternators while offering higher efficiency, longer lifetime and the

flexibility of multi types of voltage both AC and DC.

Recently, the Company completed the design and development for a 10-kW alternator

with a diameter of 10 inches and axial length of less than 6 inches.

The new 10 kW alternator will provide the full 10 kW power at alternator

speeds of 2,500-13,000 rpm with efficiency higher than 90%.

an ideal replacement (fit and form) for high output automotive alternators while offering higher efficiency, longer lifetime and the flexibility

of multi types of voltage both AC and DC.

Recently, the Company completed the design and development for a 10-kW alternator with a diameter

of 10 inches and axial length of less than 6 inches.

The new 10 kW alternator will provide the full 10 kW power at alternator speeds of

2,500-13,000 rpm with efficiency higher than 90%.

The AuraGen ®

1 unchanged sentence

both AC and VDC simultaneously.

13 Motor Intelligence.

Automotive alternator market growth trends

forecast 2021-2026

The Company is involved in

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Electric Motors

There are four (4) basic

approaches for electrical machines:

(i) the rotor can be electrically excited such that it creates a magnetic field with constant orientation

(as in synchronous machines) that usually uses brushes and or commutators;

(ii) the shape of the rotor can induce reluctance variations

in the stator (as in switched reluctance machines);

There are four (4) basic approaches

for electrical machines:

(i) the rotor can be electrically excited such that it creates a magnetic field with constant orientation (as

in synchronous machines) that usually uses brushes and or commutators;

(ii) the shape of the rotor can induce reluctance variations in

the stator (as in switched reluctance machines);

(iii) the rotor can be permanently magnetized with permanent magnets (“PM “)

2 unchanged sentences

Our axial flux technology is an induction machine.

machines are machines in which the rotor coil is supplied with current through brushes.

Unlike commutators, brushes only

transfer electric current to a moving rotor;

commutators also provide switching of the current direction.

Large, brushed machines which

are run with DC to the stator windings at synchronous speed are the most common generator in power plants because they also supply reactive

power to the grid.

They can be started by the turbine and can generate power at constant speed without a controller.

machine is often referred to in the literature as a “synchronous machine”.

machines have no windings in the rotor, only a ferromagnetic material shaped so that “electromagnets” in the

stator can “grab” the teeth in the rotor resulting in a slight movement.

The electromagnets are then turned off, while another

set of electromagnets is turned on to move the stator further.

Reluctance machines are also sometimes referred to as “step motors”

as a result of the step-like movement.

These machines are suited for low speed and accurate position control.

Reluctance machines can

be supplied with PMs in the stator to improve performance.

The “electromagnet” is then “turned off” by sending

a negative current to the coil.

When the current is positive the magnet and the current cooperate to create a stronger magnetic field,

which will improve the reluctance machine’s maximum torque without increasing the current’s maximum absolute value.

machines have permanent magnets in the rotor which set up a magnetic field.

The magnetic field is created by modern PMs

(Neodymium Iron Boron magnets “NeFeB”), which means that PM machines have a higher torque/volume and torque/weight ratio

than machines with rotor coils under continuous operation.

general, it is usually possible to overload electric machines for a short time until the current in the coils heats parts of the machine

to a temperature which causes damage.

However, PM machines are very sensitive to such overloads because too high of a current in the

coils can create a magnetic field strong enough to demagnetize the magnets.

The majority (80%) of NeFeB magnets are produced in China.

Magnax and many other are examples of Companies using such an approach.

Motor Intelligence.

Automotive alternator market growth

trends forecast 2021-2026

AC induction machine (no PM) is

the most common electrical machine in use today.

AC induction machine

(no PM) is the most common electrical machine in use today.

A changing magnetic field in the stator induces a current in the rotor.

in the rotor produces its own magnetic field, which then interacts with the magnetic field of the stator, causing the rotor to turn.

name induction comes from the fact that current is induced in the rotor by the changing magnetic field of the stator.

induction machines have been the workhorse of industry due to their robustness, attractive cost, and ease of control;

however, they are

relatively, heavy and bulky.

current in the rotor produces its own magnetic field, which then interacts with the magnetic field of the stator, causing the rotor to

The name induction comes from the fact that current is induced in the rotor by the changing magnetic field of the stator.

flux induction machines have been the workhorse of industry due to their robustness, attractive cost, and ease of control;

however, they

are relatively, heavy and bulky.

On the other hand, Aura’s axial flux (“AF”) induction machines, have all of the advantages

of the radial flux machines but with the advantage of higher energy density and higher efficiency resulting in a smaller and lighter

machine with equivalent or better performance.

Unlike the PM machines, induction machines do not use any permanent magnets and therefore

the controller can change the B fields since B is proportionate to the voltage divided by the frequency (V/f).

of the radial flux machines but with the advantage of higher energy density and higher efficiency resulting in a smaller and lighter machine

with equivalent or better performance.

Unlike the PM machines, induction machines do not use any permanent magnets and therefore the

controller can change the B fields since B is proportionate to the voltage divided by the frequency (V/f).

Although our axial flux induction

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Key players in the market

are (i) Nidec Motor Corporation, (ii) ABB Ltd., (iii) Siemens AG, (iv) WEG Electric Corp, (v) Regal Beloit Corporation, (vi) Wolong,

and (vii) Teco Westinghouse.

are (i) Nidec Motor Corporation, (ii) ABB Ltd., (iii) Siemens AG, (iv) WEG Electric Corp, (v) Regal Beloit Corporation, (vi) Wolong, and

(vii) Teco Westinghouse.

There are five basic approaches

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Portable generators meet the large market need for auxiliary power.

Millions of units per year are sold in North America alone,

and millions more are sold across the world to meet market demands for 1 to 20 Kilowatts of portable power.

The market for these power

levels addresses the commercial, leisure and residential markets, and is essentially divided into:

(a) higher power, higher quality and

higher price commercial level units;

Millions of units per year are sold in North America alone, and millions

more are sold across the world to meet market demands for 1 to 20 Kilowatts of portable power.

The market for these power levels addresses

the commercial, leisure and residential markets, and is essentially divided into:

(a) higher power, higher quality and higher price commercial

and (b) lower power, lower quality and lower price level units.

Gensets provide the strongest competition

across the widest marketplace for auxiliary power.

Onan, Honda, Generac and Kohler, among others, are well established and respected

brand names in the genset market for higher reliability auxiliary power generation.

There are over 40 registered genset-manufacturing

companies in the United States.

Gensets provide the strongest competition across the widest

marketplace for auxiliary power.

Onan, Honda, Generac and Kohler, among others, are well established and respected brand names in the

genset market for higher reliability auxiliary power generation.

There are over 40 registered genset-manufacturing companies in the United

Some of the key suppliers

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are generally only 30% efficient at the low RPM range and increase to 50% efficiency at the high RPM range.

There are many inverter manufacturers across the globe;

are many inverter manufacturers across the globe;

the best known one is Xentrex.

The pricing of industrial grade sine wave inverters is approximately $400 per kilowatt plus the cost of

a high output alternator (estimated at $1,000) and a good throttle controller (estimated in the range of $250-500).

Permanent-Magnet

A number of companies have introduced alternators using exotic rare earth Neodymium (NdFeB) magnets.

alternators tend to have higher power generation capabilities than regular alternators at lower RPM.

Unfortunately, PM machines with

NdFeB magnets are very sensitive to temperature and, unlike the AuraGen ® , cannot survive the typical under-the-hood environment

In order to apply such devices for automotive applications one must add an active cooling system to keep the magnets

from demagnetizing at approximately 200 o F.

In addition, most of the rare earth magnets (NeFeB) are manufactured in China and

are subject to potential political and economic pressure.

The pricing of industrial grade sine wave inverters is

approximately $400 per kilowatt plus the cost of a high output alternator (estimated at $1,000) and a good throttle controller (estimated

in the range of $250-500).

Permanent-Magnet Alternators.

number of companies have introduced alternators using exotic rare earth Neodymium (NdFeB) magnets.

These alternators tend to have higher

power generation capabilities than regular alternators at lower RPM.

Unfortunately, PM machines with NdFeB magnets are very sensitive

to temperature and, unlike the AuraGen ® , cannot survive the typical under-the-hood environment (200 o F+).

order to apply such devices for automotive applications one must add an active cooling system to keep the magnets from demagnetizing at

approximately 200 o F.

In addition, most of the rare earth magnets (NeFeB) are manufactured in China and are subject to potential

political and economic pressure.

In addition to the temperature

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The main disadvantage of PM generators

is the difficulty of output voltage regulation to compensate for speed and load variation due to the lack of a simple means of field

Fuel cells are solid-state devices that produce electricity by combining a fuel containing hydrogen with oxygen.

They have a wide

range of applications and can be used in place of the internal combustion engine and traditional lead-acid and lithium-ion batteries.

These systems are generally more expensive.

The most widely deployed fuel cells are estimated to cost significantly more per kilowatt

than alternative solutions.

is the difficulty of output voltage regulation to compensate for speed and load variation due to the lack of a simple means of field control.

cells are solid-state devices that produce electricity by combining a fuel containing hydrogen with oxygen.

They have a wide range of

applications and can be used in place of the internal combustion engine and traditional lead-acid and lithium-ion batteries.

These systems

are generally more expensive.

The most widely deployed fuel cells are estimated to cost significantly more per kilowatt than alternative

Evans Electric in Australia

13 unchanged sentences

and marketing, and have long-standing customer relationships.

We also compete with many larger and more established companies in the

hiring and retention of qualified personnel.

We also compete with many larger and more established companies in the hiring

and retention of qualified personnel.

Our financial condition has limited our ability to market the AuraGen ® .

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These advantages include (i) compact construction,

(ii) better power to weight ratio, (iii) shorter axial length, (iv) better efficiency, (v) better torque to volume and weight ratio,

(vi) very high utilization of active materials (less than 60% of the copper) and (vii) excellent ventilation and cooling.

(ii) better power to weight ratio, (iii) shorter axial length, (iv) better efficiency, (v) better torque to volume and weight ratio, (vi)

very high utilization of active materials (less than 60% of the copper) and (vii) excellent ventilation and cooling.

Induction machines

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Aura’s induction machine provides significant advantages in power generation, particularly in mobile applications.

volume and higher efficiency, when combined with the geometric shape means it can be integrated with existing vehicles and boats.

integrated solutions do not require set up time.

There are no heavy weights to lift (gensets), usable cargo space is optimized and there

is no need for separate fuel/containers.

Its smaller volume

and higher efficiency, when combined with the geometric shape means it can be integrated with existing vehicles and boats.

Such integrated

solutions do not require set up time.

There are no heavy weights to lift (gensets), usable cargo space is optimized and there is no need

for separate fuel/containers.

Remarkably, there is no scheduled maintenance required.

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Traditional mobile power solutions, in comparison,

use small, less efficient, auxiliary engines that produce significantly higher levels of emissions per unit of power output than the

automobile engine.

use small, less efficient, auxiliary engines that produce significantly higher levels of emissions per unit of power output than the automobile

Maintenance .

5 unchanged sentences

(no PM) can be summarized as:

since it addresses the entire field of electrical motors and generators by providing a solution

that is smaller, lighter, more efficient, cost less to manufacture and does not use

any permanent magnets .

has demonstrated mass production of this technology with more than 11,000 machines.

economic value proposition is well defined in terms of cost, performance and size.

Aura solution provides significant global reduction in the use of raw materials such

as copper, steel, and aluminum.

higher efficiency of Aura’s motor, when used in a manufacturing environment, can lead

to a noticeable reduction in the global consumption of energy .

used for mobile power generation, Aura’s technology leads to a significant reduction

in global pollution by being able to reduce and, in many situations, eliminate completely

small diesel and gasoline engines used in power generation.

used for electric vehicles, the smaller size, weight, and increased efficiency could lead

to an increase in range and/or reduced battery weight .

used in remote stand-alone diesel power generation such as cell towers, Aura’s increased

efficiency, lower rotor inertia, voltages flexibility and load-following architecture results

in a significant reduction in fuel usage (and, of course, reduced pollution).

significantly (65% less) lower rotor inertia and variable speed capabilities make Aura’s

solution ideal for small hydro applications that are currently being ignored because of construction

cost, low head, and slow flow situations.

Disruptive since it addresses the entire field of electrical motors and generators by providing a solution that is smaller, lighter, more efficient, cost less to manufacture and does not use any permanent magnets .

Aura has demonstrated mass production of this technology with more than 11,000 machines.

The economic value proposition is well defined in terms of cost, performance and size.

The Aura solution provides significant global reduction in the use of raw materials such as copper, steel, and aluminum.

The higher efficiency of Aura’s motor, when used in a manufacturing environment, can lead to a noticeable reduction in the global consumption of energy .

When used for mobile power generation, Aura’s technology leads to a significant reduction in global pollution by being able to reduce and, in many situations, eliminate completely small diesel and gasoline engines used in power generation.

When used for electric vehicles, the smaller size, weight, and increased efficiency could lead to an increase in range and/or reduced battery weight .

When used in remote stand-alone diesel power generation such as cell towers, Aura’s increased efficiency, lower rotor inertia, voltages flexibility and load-following architecture results in a significant reduction in fuel usage (and, of course, reduced pollution).

Aura’s significantly (65% less) lower rotor inertia and variable speed capabilities make Aura’s solution ideal for small hydro applications that are currently being ignored because of construction cost, low head, and slow flow situations.

Targeted Market

6 unchanged sentences

Our axial flux induction

machine is a solution that does not use any magnets and has the required performance characteristic as well as fit and form for numerous

machine is a solution that does not use any magnets and has the required performance characteristics as well as fit and form for numerous

applications.

Electric motors

for industrial applications.

Electric motors for

industrial applications.

We have completed the design of 4 kW and 10 kW machines.

The designs show significantly increased

efficiency as compared to equivalent other designs, and in addition they are a fraction of the size and weight, use approximately 50-60%

less copper and cost less to manufacture.

The designs show significantly increased efficiency

as compared to equivalent other designs, and in addition they are a fraction of the size and weight, use approximately 50-60% less copper

and cost less to manufacture.

Electric motors for

high end electric cars.

We are exploring the use of our axial flux induction machine to be integrated into high end electric cars.

This application would require approximately 250-300-kW machine that will use 800VDC buss system and will operate at up to 20,000 RPM.

We now have a completed design for an axial flux induction (no PM) design with energy density of more than 50 kW per liter (the best other

known design is approximately 40 kW/liter using rare earth permanent magnets) and efficiency of more than 95%.

Our design has an active

diameter of approximately 9.45 inches and active axial length of approximately 4.92 inches.

We now have a completed the design and fabrication of a prototype 250-kW axial flux induction (no PM)

with energy density of more than 45 kW per liter (the best other known design is approximately 40 kW/liter using rare earth permanent

magnets) and efficiency of more than 95%.

Our design has an active diameter of approximately 9.45 inches and active axial length of approximately

Mobile power generation

Military market.

One focused market for the Company’s VIPER solution is military applications.

The global military land vehicles market is expected

to grow by 29% through 2022, increasing to $30.33 billion by 2022.

19 While traditional markets for military vehicles such

are choosing to upgrade and maintain existing fleets rather than replace aging vehicles, other regions are looking to purchase

new units, which also provides maintenance and upgrade opportunities.

The active number of military vehicles was estimated at over 408,000

in 2012 and is expected to increase to slightly over 418,000 by 2021.

New vehicle procurement is expected to decline in western defense

and increase in emerging markets of APAC and the Middle East.

One focused market for the Company’s VIPER (military name for our axial flux induction generator) is military applications.

traditional markets for military vehicles such as the U.S.

are choosing to upgrade and maintain existing fleets rather than replace aging

vehicles, other regions are looking to purchase new units, which also provides maintenance and upgrade opportunities.

The active number

of military vehicles was estimated at over 418,000 in 2021.

New vehicle procurement is expected to decline in western defense and increase

in emerging markets of APAC and the Middle East.

Automotive alternators.

In 2019, 87.9 million units of passenger cars were sold globally, each one used an alternator.

The market for automotive

alternators is dominated mainly by four companies:

The market for automotive alternators is

dominated mainly by four companies:

Denso, Valeo, Mitsubishi Electric, and Hitachi Automotive.

These companies jointly

control nearly 80% of the global market.

The compact size and significant increase in efficiency of the AuraGen ® provides

an ideal replacement (fit and form) for high output automotive alternators.

cell towers .

According to Statista (Technology and telecommunication Thomas Alsop sept 22, 2020), in 2019, there were

395,562 mobile wireless cell sites in the United States, with a large amount of investment going toward 5G-ready cell sites and antennas

as per the source.

Phil Marshall, chief research officer at Tolaga Research, estimates the global number of base stations at 6.5 million

sites, while Chinese equipment vendor Huawei puts the number at 7 million.

These companies jointly control nearly

80% of the global market.

The compact size and significant increase in efficiency of the AuraGen ® provides an ideal replacement

(fit and form) for high output automotive alternators.

Diesel based cell towers .

According to Statista (Technology and telecommunication Thomas Alsop sept 22, 2020), in 2019, there were 395,562 mobile wireless cell

sites in the United States, with a large amount of investment going toward 5G-ready cell sites and antennas as per the source.

Phil Marshall,

chief research officer at Tolaga Research, estimates the global number of base stations at 6.5 million sites, while Chinese equipment

vendor Huawei puts the number at 7 million.

Many of the cell sites are powered by diesel generators.

AuraGen ® solution increase in efficiency over traditional generators, when combined with our load following architecture

and the ability to provide both AC and -48VDC simultaneously makes our solution very attractive to cell towers operators that depend

on diesel power.

Our solution has the potential for significant diesel fuel savings in such an application.

Transport Refrigeration

The main competitors for the all-electric TRU are traditional diesel-based solutions provided by

Thermo-king and Carrier.

The diesel based comparable systems provided by Thermo-king and Carrier are somewhat less expensive than our

AuraGen ® all-electric solution, however the diesel solutions require frequent maintenance and the utilization of a separate

diesel engine that consumes additional fuel every operating hour.

In addition, the diesel solution emits harmful emissions that have

been recognized by the U.S.

Environmental Protection Agency, California’s Air Resource Board and others as dangerous pollutants

and are increasingly subject to federal and state regulations.

A CARB 2015 report “Technology Assessment Transport refrigeration”

cites and provides an analysis of our solution that can be applied for significant pollution reduction and fuel savings for truck-based

The AuraGen ® solution

increase in efficiency over traditional generators, when combined with our load following architecture and the ability to provide both

AC and -48VDC simultaneously makes our solution very attractive to cell towers operators that depend on diesel power.

Our solution has

the potential for significant diesel fuel savings in such an application.

Transport Refrigeration

John Keller July 10, 2014, Military and Aerospace Electronics

Motor Intelligence.

Automotive alternator market growth

trends forecast 2021-2026

The main competitors for the all-electric TRU are traditional diesel-based solutions provided by Thermo-king

The diesel based comparable systems provided by Thermo-king and Carrier are somewhat less expensive than our AuraGen ®

all-electric solution, however the diesel solutions require frequent maintenance and the utilization of a separate diesel engine

that consumes additional fuel every operating hour.

In addition, the diesel solution emits harmful emissions that have been recognized

Environmental Protection Agency, California’s Air Resource Board and others as dangerous pollutants and are increasingly

subject to federal and state regulations.

A CARB 2015 report “Technology Assessment Transport refrigeration” cites and provides

an analysis of our solution that can be applied for significant pollution reduction and fuel savings for truck-based transport refrigeration.

Facilities, Manufacturing Process and Suppliers

During Fiscal 2024 and Fiscal

During Fiscal 2025, 2024 and

2023, the Company occupied approximately 18,000 square feet of space in Lake Forest, California.

7 unchanged sentences

additional space.

As the Company continues

to expand operations, we will need to renew relationships and contracts with our suppliers or locate suitable new suppliers for subassemblies

As the Company continues to

expand its operations, we will need to renew relationships and contracts with our suppliers or locate suitable new suppliers for subassemblies

and other components.

Research and Development

We believe that ongoing research and development is important to the

success of our product in order to utilize the most recent technology, develop additional products and additional uses for existing products,

stay current with changes in vehicle manufacture and design and to maintain an advantage over potential competition.

Our engineering,

research and development costs for Fiscal 2024 was approximately $0.8 million compared to approximately $0.9 million in Fiscal 2023.

Fiscal 2024 we have completed the design for (i) 4 kW motor for water pump applications, (ii) a new optimized 10 kW mobile power solution

smaller and higher efficiency of the older design, and (iii) a 250-kW motor solution for EV applications.

In addition, during fiscal 2024

we made significant engineering progress in the design of novel innovative active cooling solutions for very high energy density motors

and generators.

We expect to finalize this innovation during the second quarter of 2024.

We believe that ongoing research

and development is important to the success of our product in order to utilize the most recent technology, develop additional products

and additional uses for existing products, stay current with changes in vehicle manufacture and design and to maintain an advantage over

potential competition.

Our engineering, research and development costs for Fiscal 2025 were approximately $1.2 million compared to approximately

$0.8 million in Fiscal 2024.

In Fiscal 2025 we completed the design and built a prototype for a 250-kW electric motor using our axial

flux induction technology as well as completing the design for 250 kW electric generator using the axial flux induction technology.

addition, we filed 3 new patent applications for our axial flux induction machines.

Patents and Intellectual Property

1 unchanged sentence

portfolio consists of trademarks, proprietary know-how, trade secrets, and patents.

Historically the Company obtained over 70 patents

in electromagnetic and electrooptical technologies.

Historically the Company obtained 78 patents in electromagnetic

and electrooptical technologies.

During fiscal 2025 the Company filed 3 new patent applications covering (i) new winding patterns can

be made to increase current density for increasing the torque density and the power density and (ii) two patent applications for the development

of novel cooling systems which make better heat dissipation is used to reach the highest torque and power density

The basic philosophy followed

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This will provide a year before international patents need

Current active patents are

(i) Patent 8720618 Issued date 5/3/2014, (ii) Patent 6700214 Issued date 3/2/2004, and ( iii) Patent 6700802 Issued date 3/2/2004.

We expect over the next 12

months to file new technology patent applications covering:

(several patents)

Using different number of stators (one

or more) and rotors (one or more) to reach wide range of speed and torque.

Also, utilization of optimal topology makes capability to

achieve high power/torque density which is a key component for the electric vehicle (EV) and electric airplane (EA) industries.

Using new laminations, the hysteresis

and eddy current losses decrease.

So, a capability is made to increase the efficiency of these machines as the most important parameter

for electric machines evaluation.

Moreover, these laminations deliver higher saturation profile to reach high torque density which

is very important for the EV and EA industries.

(several patents)

New winding patterns can be made to

increase current density for increasing the torque density and the power density.

system (several patents)

Development of novel cooling systems

which make better heat dissipation is used to reach highest torque and power density.

and noise (several patents)

Implementation of new methods for vibration

and noise reduction is the key component for electric machines which are used in home appliances, EV and EA.

Using newly developed alloys help to

decrease losses, increase efficiency, magnify torque, and power density.

The alloy steel used in the stator cores, alloy casting used

for rotor and alloy aluminum used for enclosure have essential influences on the machine performance.

Automotive alternator

Current air-cooled automotive alternators

are power limited to around 1.5 kW.

A new design using Aura’s axial flux induction will increase the power to 3.5-5 kW at the same

size as current automotive alternators at a lower reduced cost.

of inverter components with motor (2 in 1 integration)

Higher integration will lead to better

overall efficiency and smaller packaging.

In addition, we also plan

to file specific motor application patents for (i) Drone usage, (ii) Pump usage, (iii) Compressors, (iv) Fans and Blower usage, (v) Machine

tools usage, (vi) Specific 2-and 4-wheel EV usage and (vii) Airplane/air taxi applications.

For mobile power applications

we plan to file a number of patent applications for (i) military usage, (ii) Hybrid APU, (iii) diesel power Cell tower usage, (iv)water

treatment plants and (v) marine usage.

Government Regulation

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As of the date of this filing,

the Company has a total of eleven (11) full-time employees in research and development, sales, operations and administration.

the Company has a total of twelve (12) full-time employees in research and development, sales, operations and administration.

Additionally,

the Company engages independent contractors, on an as-needed basis, to support various areas of the business.

During Fiscal 2024 and

Fiscal 2023 we engaged two independent contractors to support engineering developments.

During Fiscal 2025 we engaged

three independent contractors to support engineering developments.

Significant Customers

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These materials can be inspected and copied at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C.

of these materials may also be obtained by mail at prescribed rates from the SEC’s Public Reference Room at the above address.

of these materials may also be obtained by mail at prescribed rates from the S.E.C’s Public Reference Room at the above address.

Information about the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330.

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business