Note 16 - Segment Reporting and Sales by Major Customer

3 Months Ended

Jul. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

16. 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 with capabilities to perform special missions including provisions for radar systems, aerial photography, search and rescue, environmental research, mapping, ISR, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. We provide these services through our subsidiary, Avcon Industries, Inc. ("Aircraft Modifications" or "Avcon").  Avcon activities include the high quality precision manufacturing of machine parts at Butler Machine. 

Special mission electronics principally includes the manufacture, sale, and service of electronics for weapon control systems used on government 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 to 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") and its wholly owned subsidiary BHCMC, LLC provide management services to the Boot Hill Casino, a "state-owned casino".

Three Months Ended July 31, 2024	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	9,236	$	7,106	$	461		$	3,025	$	-		$	19,828
Interest expense		491		59		-			14		1			565
Depreciation and amortization		792		744		6			34		20			1,596
Operating income (loss)		2,754		555		(55	)		1,384		(1,102	)		3,536

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

Our Chief Operating Decision Maker (CODM) uses the information above to evaluate performance by operating segment and 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, 2024			Three Months Ended July 31, 2023
Aerospace Products – one customer in the three months ended July 31, 2024, two customers in the three months ended July 31, 2023		15.2	%		23.8	%
Professional Services		-			-

In the three months ended July 31, 2024 the Company derived 33.3% of total revenue from five Aerospace customers. The top customer provided 15.2% of total revenue while the next top four customers ranged from 2.6% to 6.9%. At July 31, 2024, we had one customer that accounted for 24.2% of our accounts receivable.