BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2013

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Other Assets: Our other asset account includes intangible assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $1,182 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 intangible gaming equipment asset 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 at a rate of 5% per year. Other assets net values are as follows:

(dollars in thousands)	2013		2012

Privilege fee	$	5,500	$	5,500
Less amortized costs		564		141
Privilege fee balance	$	4,936	$	$5,359

Intangible gaming equipment	$	1,182	$	-
Less amortized costs		148		-
Intangible gaming equipment balance	$	1,034		-

JET autopilot intellectual property	$	1,417	$	1,417
Less amortized costs		491		397
JET autopilot balance	$	926	$	1,020

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)	2013		2012

Direct labor	$	566	$	444
Direct materials		1,244		1,120
Consultant costs		1,922		1,922
Overhead		886		691
		4,618		4,177
Less-amortized costs		2,604		2,500
STC balance	$	2,014	$	1,677

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)	2013			2012		2011

Net income (loss) attributable to Butler National Corporation	$	(148	)	$	1,900	$	1,259
Weighted average common shares outstanding		59,014,594			56,596,214		56,108,812
Dilutive effect of non-qualified stock option plans		-			-		-
Weighted average common shares outstanding, assuming dilution		59,014,594			56,596,214		56,108,812
Potential common shares if all options were exercised and shares issued		66,281,237			64,848,201		63,856,326
Basic earnings per common share	$	.00		$	.03	$	.02
Diluted earnings per common share	$	.00		$	.03	$	.02