Note 16 - Segment Reporting and Sales by Major Customer

12 Months Ended

Apr. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

16. SEGMENT REPORTING AND SALES BY MAJOR CUSTOMER:

Industry Segmentation

Current Activities: The Company focuses on two primary activities, Professional Services and Aerospace Products.

Aerospace Products

Aircraft Modifications principally includes the modification of customer and company owned business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, ISR modifications, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. We provide these services through our subsidiary, Avcon Industries, Inc. ("Aircraft Modifications" or "Avcon").

Special mission electronics principally includes the manufacture, sale, and service of electronics for weapon control systems used on government aircraft and vehicles. We provide the products through our subsidiary, Butler National Corporation - Tempe, Arizona.

Butler Avionics sells, installs and repairs aircraft avionics equipment (airplane radio equipment and flight control systems). These systems are flight display systems which include intuitive touchscreen controls with large display to give users unprecedented access to high-resolution terrain mapping, graphical flight planning, geo-referenced charting, traffic display, satellite weather and much more. Butler Avionics is also recognized nationwide for its troubleshooting and repair work particularly on autopilot systems.

Professional Services

Butler National Service Corporation ("BNSC") provides management services to the Boot Hill Casino, a "state-owned casino".

BCS Design, Inc. provides licensed architectural services. These services include commercial and industrial building design.

Year Ended April 30, 2023	Gaming		Aircraft Modification		Aircraft Avionics		Special Mission Electronics		Other		Total
Revenues from customers	$	37,758	$	24,016	$	2,324	$	10,801	$	283	$	75,182
Interest expense		2,419		251		-		47		26		2,743
Depreciation and amortization		2,742		2,718		11		145		282		5,898

Year Ended April 30, 2022	Gaming		Aircraft Modification		Aircraft Avionics		Special Mission Electronics		Other		Total
Revenues from customers	$	36,813	$	21,399	$	2,373	$	10,554	$	378	$	71,517
Interest expense		2,440		215		-		23		11		2,689
Depreciation and amortization		2,454		2,384		5		161		277		5,281

Our Chief Operating Decision Maker (CODM) does not evaluate operating segments using asset or liability information.

Major Customers: Revenue from major customers (10 percent or more of consolidated revenue) were as follows:

	2023			2022
Aerospace Products – one customer in 2023, two customers in 2022		14.3	%		25.7	%
Professional Services		-			-

In fiscal 2023 the Company derived 33.3% of total revenue from five Aerospace customers. The top customer provided 14.3% of total revenue while the next top four customers ranged from 1.9% to 8.3%. At April 30, 2023, we had one customer that accounted for 31.7% of our accounts receivable.