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

3 Months Ended

Jul. 31, 2024

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,
	2024		2024
Accounts Receivable, net	$	7,326	$	5,776
Contract Asset		2,376		3,812
Contract Liability		8,038		5,922

Accounts receivable, net consist of $7,326 and $5,776 from customers as of  July 31, 2024 and April 30, 2024, respectively. At July 31, 2024 and April 30, 2024, the allowance for doubtful accounts was $47 and $47, respectively.

Contract assets are net of progress payments and performance based payments from our customers totaling $2,376 and $3,812 as of July 31, 2024 and April 30, 2024. Contract assets decreased $1,436 during the three months ended July 31, 2024, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the three months ended July 31, 2024. There were no significant impairment losses related to our contract assets during the three months ended July 31, 2024. We expect to bill our customers for the majority of the July 31, 2024 contract assets during fiscal year end 2025.

Contract liabilities increased $2,116 during the three months ended July 31, 2024, primarily due to the revenue recognized on these performance obligations being less than the payments received.