Note 16 - Segment Reporting and Sales by Major Customer

6 Months Ended

Oct. 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 October 31, 2024	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	9,650	$	7,170	$	824		$	3,716	$	-		$	21,360
Interest expense		458		66		-			14		-			538
Depreciation and amortization		808		789		7			34		20			1,658
Operating income (loss)		3,096		1,191		(24	)		1,903		(1,312	)		4,854

Three Months Ended October 31, 2023	Gaming		Aircraft Modification		Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	9,770	$	6,082	$	778		$	2,972	$	-		$	19,602
Interest expense		532		58		-			16		9			615
Depreciation and amortization		830		726		4			31		35			1,626
Operating income (loss)		2,767		557		(105	)		1,482		(1,103	)		3,598

Six Months Ended October 31, 2024	Gaming		Aircraft Modification		Aircraft Avionics		Special Mission Electronics		Other			Total
Revenues from customers	$	18,887	$	14,276	$	1,285	$	6,741	$	-		$	41,189
Interest expense		949		125		-		28		1			1,103
Depreciation and amortization		1,600		1,533		13		68		40			3,254
Operating income (loss)		5,850		1,746		10		3,287		(2,503	)		8,390

Six Months Ended October 31, 2023	Gaming		Aircraft Modification			Aircraft Avionics			Special Mission Electronics		Other			Total
Revenues from customers	$	18,758	$	11,565		$	1,522		$	4,889	$	52		$	36,786
Interest expense		1,088		116			-			33		17			1,254
Depreciation and amortization		1,478		1,439			7			63		62			3,049
Operating income (loss)		5,081		(191	)		(146	)		2,203		(2,212	)		4,735

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:

	Six Months Ended October 31, 2024			Six Months Ended October 31, 2023
Aerospace Products – one customer in the six months ended October 31, 2024, two customers in the six months ended October 31, 2023		16.2	%		27.5	%
Professional Services		-			-

In the six months ended October 31, 2024 the Company derived 31.9% of total revenue from five Aerospace customers. The top customer provided 16.2% of total revenue while the next top four customers ranged from 2.7% to 6.9%. At October 31, 2024, we had one customer that accounted for 39.3% of our accounts receivable.