BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2014

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $2,252 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417. BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the Management Contract with the State of Kansas which will end in December 2024. There is no assurance of the Management Contract renewal. The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment. The JET intellectual property is being amortized over a period of 15 years.

Other assets net values are as follows:

(dollars in thousands)	2014		2013

Privilege fee	$	5,500	$	5,500
Less amortized costs		987		564
Privilege fee balance	$	4,513	$	4,936

Intangible gaming equipment	$	2,252	$	1,182
Less amortized costs		948		148
Intangible gaming equipment balance	$	1,304		1,034

JET autopilot intellectual property	$	1,417	$	1,417
Less amortized costs		585		491
JET autopilot balance	$	832	$	926

Supplemental Type Certificates capitalized costs

Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized against revenues being generated from aircraft modifications associated with the STC. The costs are expensed as services are rendered on each aircraft through costs of sales using the units of production method. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Consultant costs, as shown below, include costs of engineering, legal and aircraft specialists. STC capitalized costs are as follows:

(dollars in thousands)	2014		2013

Direct labor	$	1,033	$	1,018
Direct materials		1,833		1,546
Consultant costs		1,922		1,922
Overhead		1,797		2,020
		6,585		6,506
Less-amortized costs		2,841		2,642
STC balance	$	3,744	$	3,864

Computation of basic and diluted earnings per common share

The computation of the Company basic and diluted earnings per common share is as follows:

(in thousands, except per share data)	2014		2013		2012

Net income (loss) attributable to Butler National Corporation	$	112	$	(148)	$	1,900
Weighted average common shares outstanding		60,893,092		59,014,594		56,596,214
Dilutive effect of non-qualified stock option plans		-		-		-
Weighted average common shares outstanding, assuming dilution		60,893,092		59,014,594		56,596,214
Potential common shares if all options were exercised and shares issued		68,155,156		66,281,237		64,848,201
Basic earnings per common share	$	.00	$	.00	$	.03
Diluted earnings per common share	$	.00	$	.00	$	.03