Note 3 - Accounts Receivable, Net, Contract Asset and Contract Liability

12 Months Ended

Apr. 30, 2023

Notes to Financial Statements

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

3. ACCOUNTS RECEIVABLE, NET, CONTRACT ASSET AND CONTRACT LIABILITY:

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

	2023		2022
Accounts Receivable, net	$	3,793	$	3,636
Contract Asset		1,893		1,470
Contract Liability		6,031		820

Accounts Receivables, net consist of $3,793 and $3,636 from customers as of April 30, 2023 and April 30, 2022, respectively. At  April 30, 2023, and 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 $1,893 and $1,470 as of April 30, 2023 and 2022. Contract assets increased $423 during 2023, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during 2023 for which we have not yet billed our customers. There were no significant impairment losses related to our contract assets during 2023 and 2022. We expect to bill our customers for the majority of the April 30, 2023 contract assets during fiscal year end 2024.

Contract liabilities increased $5,211 during 2023, primarily due to payments received in excess of revenue recognized on these performance obligations. During 2023, we recognized $820 of our contract liabilities at April 30, 2022 as revenue. During 2022, we recognized $5,798 of our contract liabilities at April 30, 2021, as revenue.