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

3 Months Ended

Jul. 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):

	July 31,		April 30,
	2023		2023
Accounts Receivable, net	$	3,260	$	3,793
Contract Asset		3,169		1,893
Contract Liability		9,256		6,031

Accounts receivable, net consist of $3,260 and $3,793 from customers as of  July 31, 2023 and April 30, 2023, respectively. At July 31, 2023 and April 30, 2023, the allowance for doubtful accounts was $205 and $205, respectively.

Contract assets are net of progress payments and performance based payments from our customers totaling $3,169 and $1,893 as of July 31, 2023 and April 30, 2023. Contract assets increased $1,276 during the three months ended July 31, 2023, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the three months ended July 31, 2023. There were no significant impairment losses related to our contract assets during the three months ended July 31, 2023. We expect to bill our customers for the majority of the July 31, 2023 contract assets during fiscal year end 2024.

Contract liabilities increased $3,225 during the three months ended July 31, 2023, primarily due to payments received in excess of the revenue recognized on these performance obligations.