Note 15 - Segment Reporting and Sales by Major Customer

3 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. 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 for specific operations or special missions such as addition of aerial photography capabilities, mapping, search and rescue, and ISR 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 upgrades for classic weapon control systems used on civilian and military 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 that enhance pilot situational awareness and 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.

Three Months Ended July 31, 2023	Gaming		Aircraft Modification			Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	8,989	$	5,483		$	744		$	1,917	$	52		$	17,185
Interest expense		556		58			-			16		9			639
Depreciation and amortization		648		713			3			32		27			1,423
Operating income (loss)		2,314		(793	)		(86	)		721		(1,019	)		1,137

Three Months Ended July 31, 2022	Gaming		Aircraft Modification		Aircraft Avionics		Special Mission Electronics		Other			Total
Revenues from customers	$	8,893	$	3,836	$	715	$	1,791	$	69		$	15,304
Interest expense		642		66		-		7		8			723
Depreciation and amortization		626		740		2		39		51			1,458
Operating income (loss)		2,642		54		48		616		(1,735	)		1,625

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:

	Three Months Ended July 31, 2023			Three Months Ended July 31, 2022
Aerospace Products – two customers in the three months ended July 31, 2023, one customer in the three months ended July 31, 2022		23.8	%		11.7	%
Professional Services		-			-

In the three months ended July 31, 2023 the Company derived 33.8% of total revenue from five Aerospace customers. The top customer provided 12.9% of total revenue while the next top four customers ranged from 2.0% to 10.9%.