Note 5 - Accounts Receivable, Net, Contract Asset and Contract Liability

9 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Text Block]

5. Accounts receivable, net, contract asset and contract liability:

Accounts Receivables, net, contract asset and contract liability were as follows (in thousands):

	January 31,		April 30,
	2023		2022
Accounts Receivable, net	$	4,754	$	3,636
Contract Asset		2,722		1,470
Contract Liability		4,863		820

Accounts receivable, net consist of $4,754 and $3,636 from customers as of  January 31, 2023 and April 30, 2022, respectively. At January 31, 2023 and April 30, 2022, the allowance for doubtful accounts was $205 and $205, respectively.

Contract assets are net of progress payments and performance based payments from our customers as well as advance payments from customers totaling $2,722 and $1,470 as of January 31, 2023 and April 30, 2022. Contract assets increased $1,252 during the nine months ended January 31, 2023, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the nine months ended January 31, 2023. There were no significant impairment losses related to our contract assets during the nine months ended January 31, 2023. We expect to bill our customers for the majority of the January 31, 2023 contract assets during fiscal year end 2023.

Contract liabilities increased $4,043 during the nine months ended January 31, 2023, primarily due to payments received in excess of the revenue recognized on these performance obligations.