Note 17 - Subsequent Events

12 Months Ended

Apr. 30, 2023

Notes to Financial Statements

Subsequent Events [Text Block]

17. SUBSEQUENT EVENTS:

Subsequent to year end, the Company sold three airplanes and disposed of two airplanes resulting in a gain on sale of $440.

On May 9, 2023, the employment of Clark D. Stewart with the Company was terminated by Mr. Stewart for good reason. This resulted in the forfeiture of 1.1 million restricted shares of Company stock.

On July 11, 2023, the Company purchased 974,120 shares of Company stock, at $0.70 per share, from the brother of our former CEO, Clark D. Stewart.  The stock acquired was placed in treasury.

Clark D. Stewart and Craig D. Stewart tendered resignations as members of the board of the directors (the “Board”) of  Butler National Corporation on July 20, 2023, effective on July 28, 2023. Following the resignation of Clark D. Stewart and Craig D. Stewart, the size of the Board will be reduced from seven directors to five directors.

Clark D. Stewart and Craig D. Stewart each entered into a Separation and Mutual Release Agreement with the Company, each of the other directors, and with the Company’s executive officers dated July 20, 2023.  Pursuant to the Agreements, in consideration of a mutual general release of claims, Clark D. Stewart and Craig D. Stewart were each paid a lump sum severance benefit, which totaled $2.7 million for Clark D. Stewart and $1.8 million for Craig D. Stewart. In addition, the Company purchased 3,956,267 shares of Company stock from Clark D. Stewart and 1,933,402 shares of Company stock from Craig D. Stewart at $0.739 per share. The stock acquired was placed in treasury.

On July 20, 2023, the Board approved an increase of the size of the Company’s stock repurchase program from $4 million to $9 million. The program is authorized through July 31, 2025. After giving effect to the redemptions above, approximately $2.6 million will remain under the stock repurchase program for future purchases.

The Company evaluated its April 30, 2023, consolidated financial statements for subsequent events through July 31, 2023, the filing date of this report. The Company is not aware of any other subsequent events that would require recognition or disclosure in the consolidated financial statements.