Aura Systems, which produces mobile power generators and power management systems, announced Friday it received a new $1.1 million unsecured non-controvertible short term loan from a board member.
Robert Kopple, who excused himself from voting on approving the loan, has advanced a total $2.9 million, including interest accrued to date.
Aura Chief Executive Melvin Gagerman said the loan was necessary for the company to have working capital to meet customer demand.
“Our orders are coming in faster than we can sell them,” Gagerman said. Aura is currently fulfilling orders for South Korean and Israeli militaries, he said, adding, “We’re starting to get absolute recognition of our product everywhere we’re turning right now.”
The El Segundo tech company has a troubled history. It settled a fraud case with the Securities and Exchange Commission in 1996 and filed for Chapter 11 bankruptcy protection in 2005.
Aura was on the way up in 2012 after securing a $612,000 military contract with South Korea that would supply the country with 1,000 mobile power systems. The company also said it planned to branch into commercial sales, including generators for refrigeration systems on delivery trucks.
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