BUKS Butler National Corp (QX)

Forward-Looking Statements

 

Statements made in this report, other reports and proxy statements filed with the Securities and Exchange Commission, communications to stockholders, press releases, and oral statements made by representatives of the Company that are not historical in nature, or that state the Company's or management's intentions, plans, beliefs, expectations or predictions of the future, may constitute "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements can often be identified by the use of forward-looking terminology, such as "could," "should," "will," "intended," "continue," "believe," "may," "expect," "anticipate," "goal," "forecast," "plan," "guidance" or "estimate" or the negative of these words, variations thereof or similar expressions. Forward-looking statements are not guarantees of future performance or results. They involve risks, uncertainties, and assumptions. It is important to note that any such performance and actual results, financial condition or business, could differ materially from those expressed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Item 1A. Risk Factors and elsewhere herein or in other reports filed with the SEC. Other unforeseen factors not identified herein could also have such an effect. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time, except as expressly required by federal securities laws.

 

Actual events or results may differ materially from the information included in forward-looking statements. In evaluating such statements, a number of risks, uncertainties and other factors could cause actual results, performance, financial condition, cash flows, prospects and opportunities to differ materially from those expressed in, or implied by, the forward-looking statements. These risks, uncertainties and other factors include those set forth in Item 1A (Risk Factors) of this Annual Report on Form 10-K, including the following factors:

 

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customer concentration risk;

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dependence on government spending;

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industry specific business cycles;

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regulatory hurdles in the launch of new products;

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loss of key personnel;

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the geographic location of our casino;

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fixed-price contracts;

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international sales;

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future acquisitions;

	●	supply chain and labor issues;
	●	customer demand;
	●	lack of insurance for aircraft modifications;

	●	cyber security threats;
	●	fraud, theft and cheating at our casino;

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dependence on third-party platforms to offer sports wagering;

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outside factors influence the profitability of sports wagering;

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change of control restrictions;

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significant and expensive governmental regulation across our industries;

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failure by the corporation or its stockholders to maintain applicable gaming licenses;

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evolving political and legislative initiatives in gaming;

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extensive and increasing taxation of gaming revenues;

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changes in regulations of financial reporting;

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the stability of economic markets;

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potential impairment losses;

	●	marketability restrictions of our common stock;
	●	the possibility of a reverse-stock split;
	●	market competition by larger competitors;
	●	acts of terrorism and war;
	●	inclement weather and natural disasters; and
	●	rising inflation

 

Results of operations in any past period should not be considered indicative of the results to be expected for future periods. Fluctuations in operating results may also result in fluctuations in the price of the Company's common stock.

 

Investors should also be aware that while the Company, from time to time, communicates with securities analysts; Company policy is to not disclose any material non-public information or other confidential commercial information. Accordingly, shareholders should not assume that the Company agrees with any statement or report issued by any analyst irrespective of the content of the statement or report. Furthermore, the Company has a policy against issuing or confirming financial forecasts or projections issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the responsibility of Butler National Corporation.

 

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PART I

 

Item 1.

BUSINESS

 

General

 

Butler National Corporation (“Butler National” the “Company”, “we”, “us”, or “our”) was incorporated in 1960. Our companies design, engineer, manufacture, sell, integrate, install, repair, modify, overhaul, service and distribute a broad portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies and systems (“Aerospace Products”). We serve a broad, worldwide spectrum of the aviation industry, including owners and contractors of private and commercial business, and government aircraft and suppliers to the government.

 

In addition, our companies provide management services in the gaming industry, which includes owning the land and building for the Boot Hill Casino and Resort in Dodge City, Kansas (“Professional Services”).

 

Products and Services

 

The Company has two operating segments for financial reporting purposes: (a) Aerospace Products, whose companies’ revenues are derived from system design, engineering, manufacturing, sale, distribution, integration, installation, repairing, modifying, overhauling and servicing of aerostructures, avionics, aircraft components, accessories, subassemblies and systems; and (b) Professional Services, whose companies provide professional management services in the traditional gaming industry and in sports wagering.

 

Aerospace Products. The Aerospace Products segment includes the design, manufacture, sale and service of structural modifications, electronic equipment, and systems and technologies that enhance aircraft and electronics related equipment for control systems, test equipment, and defense related articles. Additionally, we operate Federal Aviation Administration (the “FAA”) Repair Stations. Companies in Aerospace Products concentrate on Learjets, Beechcraft King Air, and Cessna turboprop aircraft.

 

Products. The aviation-related products that the companies within this group design, engineer, manufacture, integrate, install, repair and service include:

 

●	Aerial surveillance products	●	GARMIN GTN Navigator / G700TXi displays
●	Aerodynamic enhancement products	●	J.E.T. autopilot products
●	Standby instrument systems	●	Electrical power systems and switching equipment
●	Avcon stability enhancing fins	●	Rate gyroscopes
●	ADS-B (transponder) systems	●	Replacement vertical accelerometers
●	Cargo/sensor carrying pods and radomes	●	Provisions to allow carrying of external stores
●	Electronic navigation instruments, radios and transponders	●	Attitude and heading reference systems

 

Modifications. The companies in Aerospace Products have authority, pursuant to Federal Aviation Administration Supplemental Type Certificates (“STCs”) and Parts Manufacturer Approval (“PMA”), to build required parts and subassemblies and to make applicable installations. Companies in Aerospace Products perform modifications in the aviation industry including:

 

●	Aerial photograph capabilities	●	Extended tip fuel tanks
●	Aerodynamic improvements	●	Radar systems
●	Avionics systems	●	ISR – Intelligence Surveillance Reconnaissance
●	Cargo doors	●	Special mission modifications
●	Extended nose and wing tip bays	●	Target towing capability
●	Airborne research capability	●	Traffic collision avoidance systems

 

Special Mission Electronics. We supply defense-related, commercial off-the-shelf products to various commercial entities and government agencies and subcontractors in order to update or extend the useful life of systems. These products include:

 

●	Cabling	●	HangFire Override Modules
●	Electronic control systems	●	Test equipment
●	Gun Control Units for Apache and Blackhawk helicopters	●	Gun Control Units for land and sea based military vehicles

 

 

Professional Services. The Professional Services segment includes the management of a gaming and related dining and entertainment facility in Dodge City, Kansas. Boot Hill Casino and Resort features approximately 500 slot machines, 17 table games and a sportsbook. A Company in Professional Services previously provided licensed architectural services, including commercial and industrial building design services.

 

Boot Hill. Butler National Service Corporation (“BNSC”), and BHCMC, LLC (“BHCMC”), companies in Professional Services, manage The Boot Hill Casino and Resort in Dodge City, Kansas (“Boot Hill”) pursuant to the Lottery Gaming Facility Management Contract, by and among BNSC, BHCMC and the Kansas Lottery, as subsequently amended (“Boot Hill Agreement”). As required by Kansas law, all games, gaming equipment and gaming operations, including sports wagering, at Boot Hill are owned and operated by the Kansas Lottery. On September 1, 2022, sports wagering became legal in the State of Kansas. The Company entered into a provider contract with DraftKings for interactive/mobile sports wagering.  In addition to an online platform, the Company opened a DraftKings branded sports book at Boot Hill on February 28, 2023.

 

Architectural Services. A Company in Professional Services provided licensed architectural services, including commercial and industrial building design.  The Company was closed in January 2024. 

 

Proprietary Rights

 

We do not currently hold any patents, franchises or concessions. In our overhaul and repair business, original equipment manufacturers (“OEMs”) of equipment that we maintain for our customers often include language in repair manuals that relate to their equipment, asserting broad claims of proprietary rights to the contents of the manuals used in our operations. There can be no assurance that OEMs will not try to enforce such claims, including the possible use of legal proceedings. In the event of such legal proceedings, there can be no assurance that such actions against the Company will be unsuccessful. However, we believe that our use of OEM manufacture and repair manuals is lawful.

 

Seasonality

 

Our Aerospace Products businesses are generally not seasonal. We believe that our Professional Services business, however, are subject to seasonality based on local weather conditions, agricultural and petroleum prices, employment levels and the travel habits of visitors in the market service area.

 

Raw Materials and Replacement Parts

 

 

Backlog

 

Our backlog as of April 30, 2024 and 2023 was as follows:

 

Industry Segment
(in thousands)		2024				2023
Aerospace Products		$	30,265			$	26,360
Professional Services			-				-
Total backlog		$	30,265			$	26,360

 

Our backlog as of July 19, 2024, totaled $28,595 for Aerospace Products. The backlog includes orders with signed contracts which may not be completed within the next fiscal year. There can be no assurance that all orders will be completed or that some may ever commence.

 

Dependence on Significant Customers

 

During the fiscal year ending April 30, 2024 we derived 28.5% of our revenue from five customers, and we had one "major customer" (10 percent or more of consolidated revenue) that provided 15.2% of total revenue. At April 30, 2024, we had one customer that accounted for 42.5% of our total accounts receivable.

 

 

Competition

 

We compete in the aerospace and casino gaming industries. In the aerospace industry, we compete against peer companies of which some are divisions or subsidiaries of other large companies, in the manufacture of aircraft structures, systems components, subassemblies and parts in addition to services related to aircraft modifications. Competition for the repair and overhaul of aviation components comes from three primary sources, some of whom possess greater financial and other resources than we have: OEMs, governmental support depots, and other independent repair and overhaul companies.  As technology advances, the concept of repair and overhaul changes, in that items that were formerly repaired are now being replaced.  Many governments maintain aircraft support depots or contractor organizations that modify, maintain and repair their aircraft. Other independent service organizations also compete for the modification, repair and overhaul business. Participants in the aerospace industry compete primarily based on size of business and technical staffing, quality, turnaround time, capacity and price.

 

The casino entertainment business is highly competitive. The industry is comprised of a diverse group of competitors that vary considerably in size and geographic diversity, quality of facilities and amenities available, marketing strategies and financial condition. We compete with other casino facilities in the Kansas region. We also compete with other non-gaming resorts and vacation destinations, various other entertainment businesses, and other forms of gaming, such as state lotteries, on-track and off-track wagering, video lottery terminals and card parlors.

 

Government Regulation and Industry Oversight

 

The aerospace industry is highly regulated in the United States by the FAA and in other countries by similar agencies. Our products and aircraft modifications must be certified by the FAA or meet FAA requirements.  FAA certification involves designing, engineering, and testing of specific aircraft models.  Our businesses, which sell defense products and services directly to the U.S. government or through its contractors, can be subject to various laws and regulations governing pricing and other factors.

 

We must also satisfy the requirements of our customers that are subject to FAA regulations and provide these customers with products and repair services that comply with the applicable government regulations. The FAA regulates flight operations and requires that aircraft components meet stringent FAA standards.  We are subject to inspections by the FAA and may be subjected to fines and other penalties (including orders to cease production) for noncompliance with FAA regulations.  In addition, the FAA requires that various maintenance routines be performed on aircraft components. We currently satisfy these maintenance standards allowing component repair and overhaul services at our FAA-approved repair stations.

 

The FAA licensing process may be costly and time-consuming. To obtain an FAA license, an applicant must satisfy all applicable regulations of the FAA governing repair stations.  FAA regulations require that an applicant have experienced personnel, inspection systems, suitable facilities and equipment. In addition, the applicant must demonstrate a need for the license. Because an applicant must procure manufacturing and repair manuals relating to each particular aircraft component in order to obtain a license with respect to that component, the application process may involve substantial time and cost. Such licenses, which are ongoing in duration, are required for us to perform authorized maintenance, repair, and overhaul services for our customers and are subject to revocation by the government for non-compliance with applicable regulations. We believe that we possess all licenses and certifications that are material to the conduct of our business.

 

Our non-U.S. sales are subject to both U.S. and non-U.S. governmental regulations and procurement policies and practices, including regulations relating to import-export control, tariffs, investment, exchange controls, anti-corruption and repatriation of earnings. Non-U.S. sales are also subject to varying currency, political and economic risks.

 

Our Professional Services business is subject to various federal, state and local laws and regulations in addition to gaming regulations. These laws and regulations include, but are not limited to, restrictions and conditions concerning gaming, employment, alcoholic beverages, food service, smoking, currency transactions, taxation, zoning and building codes, and marketing and advertising. Such laws and regulations could change or could be interpreted differently in the future, or new laws and regulations could be enacted. Material changes, new laws or regulations, or material differences in interpretations by courts or governmental authorities could adversely affect our operating results.

 

Our operations are also subject to a variety of worker and community safety laws. For example, the Occupational Safety and Health Act of 1970, or OSHA, mandates general requirements for safe workplaces for all employees in the United States. We believe that our operations are in material compliance with OSHA's health and safety requirements.

 

Moreover, our gaming management operations are regulated largely by the Kansas Racing and Gaming Commission and the Kansas Lottery. The gaming industry, in general, is highly regulated and we must maintain our licenses and pay gaming taxes to continue our operations. Each gaming facility is subject to extensive regulation under the laws, rules and regulations where it is located. These laws, rules and regulations generally relate to the responsibility, financial stability, integrity and character of the owners, managers, contractors and persons with financial interests in the gaming operations.  The process of obtaining such necessary licenses, registrations, or other approvals often involves substantial disclosure of confidential or proprietary information about us and our officers, directors, key personnel and, in certain instances, beneficial owners of our debt or equity securities, and requires a determination by the regulators as to our suitability. Authorities have broad discretion and may require any beneficial holder of our securities directly or indirectly owing five percent 5% of the ownership interest to file an application, make personal or confidential disclosures, be investigated, and be subject to a determination of suitability. If such beneficial holder is found unsuitable, these restrictions may require a holder of our securities to dispose of the securities, or, if the holder refuses or is unable to dispose of the securities, we may be required to repurchase the securities.

 

 

The Company’s business is also impacted by various other laws and regulations, including, but not limited to, local, state, federal, and international tax codes, import and export controls and customs laws, employment and employment-related laws, environmental laws, intellectual property laws, and consumer protection statutes. The Company from time to time incurs costs in the ordinary course of business in connection with maintaining compliance with these evolving and at times overlapping regulatory regimes.

 

While we are firmly committed to full compliance with all applicable laws and have developed appropriate policies and procedures to comply with the requirements of the evolving regulatory regimes, we cannot provide assurance that our compliance program will prevent all violations of applicable laws or regulations, or that a violation by us or our personnel will not result in a monetary fine or suspension or revocation of one or more of our licenses.

 

Human Capital Resources

 

Other than persons employed by our gaming management subsidiaries there were 133 full time and 2 part time employees on April 30, 2024 compared to 104 full time and 3 part time employees on April 30, 2023. As of July 19, 2024, staffing was 137 full time and 3 part time employees. Our staffing at Boot Hill Casino on April 30, 2024 was 196 full time and 48 part time employees and 205 full time employees and 59 part time employees on April 30, 2023. As of July 19, 2024 our staffing at Boot Hill Casino was 190 full time employees and 47 part time employees.

 

We believe our success as a company depends on the strength of our workforce.  Each leader of an operating subsidiary, reporting to our President and Chief Executive Officer, is responsible for developing and executing our human capital strategy.  This includes recruiting, hiring, training and retention as well as providing recommendations for the development of our compensation and benefits programs.

 

As the success of our business is fundamentally connected to the well-being of our people, we offer benefits that support their physical, financial and emotional well-being. We provide our employees with access to affordable and convenient medical programs intended to meet their physical and emotional needs and the needs of their families.  To foster retention, employees with fifteen or more years of service receive an annual retention bonus.

 

As an added benefit for employees, we offer a 401(k) savings plan with a Company match as well as paid vacation and personal days. These benefits are in addition to the Company’s market-based compensation program designed to maintain competitive compensation packages for all employees.

 

None of our employees are subject to collective bargaining agreements.

 

Executive Officers of the Registrant

 

Our executive officers are:

 

Name		Age		Position
Christopher J. Reedy		58		President and Chief Executive Officer since May 2023. Previously Chief Operating Officer from January 2023 to May 2023. Vice President and Secretary since 2005.
Tad M. McMahon		57		Chief Financial Officer and Secretary since May 2023. Previously Chief Financial Officer from 2017 to May 2023.
Joe Aric Peters		49		Vice President

 

Officers are elected by the Board of Directors of Butler National Corporation and serve at the discretion of the Board. All of the officers of the Company are subject to an employment agreement with the Company.  The Company has three "executive officers" pursuant to Exchange Act Rule 3b-7.

 

Available Information

 

For more information about us, visit our website at www.butlernational.com. The contents of the website are not part of this Annual Report on Form 10-K or incorporated into any other filings we make with the SEC. Our electronic filings with the Securities and Exchange Commission ("SEC") (including all Forms 10-K, 10-Q and 8-K, and any amendments to these reports) are available free of charge through our website immediately after we electronically file with or furnish them to the SEC.  The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers who file electronically with the SEC at www.sec.gov.

 

 

Item 1A.  RISK FACTORS

 

The following statements on risk factors contain "forward looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements can often be identified by the use of forward-looking terminology, such as "could," "should," "will," "intended," "continue," "believe," "may," "expect," "anticipate," "goal," "forecast," "plan," "guidance" or "estimate" or the negative of these words, variations thereof or similar expressions. Forward looking statements are not guarantees of future performance or result and involve risks, uncertainties, and assumptions. Stockholders should be aware of certain risks, including those described below and elsewhere in this Form 10-K, which could adversely affect the value of their holdings and could cause our actual results to differ materially from those projected in any forward looking statements. We undertake no obligation to update or revise forward looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time, except as expressly required by federal securities laws.

 

Risks Related to Our Business and Operations

 

Our Aerospace Products business is subject to significant customer concentration risk. 

 

During the fiscal year ending April 30, 2024, we derived 28.5% of our revenue from five customers, and we had one "major customer" (10 percent or more of consolidated revenue) that provided 15.2% of total revenue. At April 30, 2024, we had one customer that accounted for 42.5% of our total accounts receivable. Our business operations in Tempe, Arizona sell almost entirely to one customer. A loss of business from, or the bankruptcy or insolvency of, one or more of any of these major customers may have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.

 

We depend on the U.S. government and friendly foreign countries spending for a significant portion of our revenues.

 

We are a supplier, either directly or as a subcontractor, to the U.S. Government, its agencies and to friendly foreign countries. We rely heavily on government spending for a significant portion of our business. The United States financing or assistance in facilitating foreign objectives around the world impacts our business at our Avcon Industries, Inc. and Butler National - Tempe subsidiaries. If the flow of United States support globally would decrease, it would have a detrimental impact. If the U.S. Government or friendly foreign countries, ceased doing business with us or significantly decreased the amount of business they do with us, it may have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.

 

We operate in cyclical industries and an economic downturn could negatively impact our operations.

 

Historically, adverse conditions in the local, regional, national and global economies have negatively affected our operations, and may continue to negatively affect our operations in the future. During periods of economic contraction, our revenues may decrease while some of our costs remain fixed or even increase, resulting in decreased earnings.

 

The gaming activities that we offer represent discretionary expenditures and participation in such activities may decline during economic downturns, during which consumers generally earn less disposable income. An uncertain economic outlook may adversely affect consumer spending in our gaming operations and may have a material adverse effect on the Company’s financial condition, results of operations, liquidity and cash flows.

 

Our Aerospace Products business is subject to the general health of the aviation industry, which can be cyclical. During periods of economic expansion, when capital spending normally increases, we generally benefit from greater demand for our aviation products and services. During periods of economic contraction, when capital spending normally decreases, we generally are adversely affected by declining demand for our aerospace products and services. Such conditions may also inhibit our ability to obtain products and materials from our suppliers or may negatively impact the affordability of such products and materials. Aviation industry conditions are impacted by numerous factors over which we have no control, including political, regulatory, economic and military conditions, environmental concerns, weather conditions and fuel pricing. Any prolonged cyclical downturn may adversely affect customer demand in our Aerospace Products business and may have a material adverse effect on the Company’s financial condition, results of operations, liquidity and cash flows.

 

Lack of regulatory approval may lead to difficulties or delays in the development, production, testing and marketing of products, which could adversely affect our business.

 

Our Aerospace Products business is subject, in part, to regulatory procedures enacted or administered by the Federal Aviation Administration ("FAA"). Accordingly, our business may be adversely affected in the event the Company is unable to comply with such regulations relative to its current products or if any new products or services to be offered by the Company are not formally approved by such agency. Proposed aviation modification products depend upon the issuance by the FAA of a Supplemental Type Certificate with related parts manufacturing authority. Such certifications for future aircraft modification products may not be issued within our expected time frames or issued at all, which may have a material adverse effect on our business. Similarly, the loss of one or more of our current licenses or certifications may also have a material adverse effect on the Company’s financial condition, results of operations, liquidity and cash flows.

 

 

We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel or hire qualified personnel, our results of operations could be impacted.

 

Recruitment and retention of employees are important to the financial condition and business objectives of the Company. Our cost-effective and quality products and services depend on well-trained employees. Likewise, research and development to generate new products and services in our Aerospace Products business is dependent on trained personnel. The Company relies on various engineering resources, both internally and externally, to perform engineering and certification work to develop new products. The new products have been vital to our growth and sustained revenues and are critical to satisfying customer requirements. A loss of consultants or engineers could adversely affect the financials of the Company. Certain individuals in the Company hold specific expertise in engineering. Additionally, key personnel are particularly important in maintaining relationships with the operations related to the FAA and the State of Kansas. We also depend on a limited number of key personnel to manage and operate our businesses, including our executive officers. The leadership of these key personnel has been, and we expect will continue to be, a significant element of our success. The existing contracts for our executive officers will terminate at the end of the year. Several of the tasks each our executive officers perform lack redundancy. The departure, death or disability of any one of our executive officers or other extended or permanent loss of any of their services, or any negative industry perception with respect to any of them or their loss, could have a material adverse effect on our business. Our success depends heavily upon the continued contributions of these key persons, whose knowledge, leadership and technical expertise would be difficult to replace, and on our ability to attract and retain experienced professional staff. Losing key personnel may have a material adverse effect on the Company’s financial condition, results of operations, liquidity and cash flows.

 

We may face risks related to the geographic location of our casino.

 

Boot Hill Casino is located in Dodge City, Kansas. Consequently, a significant portion of our gaming business is dependent upon attracting local residents, for both patronage and employees, as well as out of town visitors and is subject to the general economic health of the region around Dodge City, Kansas. The economy of Dodge City, Kansas is significantly influenced by the agricultural sector of the national and local economy, which includes both agricultural farming and meat processing. As a result, changes in the economic climate, weather patterns, the availability of rural medical care, and market fluctuations for agricultural and petroleum products could cause our customers to see a decrease in discretionary income which may negatively impact our revenues from gaming. This may have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.

 

Due to fixed contract pricing, increasing contract costs exposes us to reduced profitability.

 

We sell certain products and services to commercial, government, and defense customers under firm fixed-priced contracts, regardless of costs incurred by us. Our Aerospace Products business generated approximately 60% of its 2024 revenue from fixed-price contracts. The costs of producing products or providing services may be adversely affected by increases in the cost of labor, materials, overhead, and other unknown variants, including manufacturing and other operational inefficiencies and differences between assumptions used by us to price a contract and actual results. Increased costs may result in cost overruns and losses on such contracts, which may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We are exposed to risks associated with our international sales.

 

We conduct our business in a number of foreign countries, some of which are politically unstable or subject to military or civil conflicts. International sales amount to 17% of total revenue in fiscal 2024. Consequently, we are subject to a variety of risks that are specific to international operations, including the following:

 

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Military conflicts, civil strife, and political risks;

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Export regulations that could erode profit margins or restrict exports;

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Export controls and financial and economic sanctions imposed on certain industry sectors, countries or products;

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The burden and cost of compliance with foreign laws, treaties, and technical standards and changes in those regulations;

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Contract award and funding delays;

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Potential restrictions on transfers of funds;

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Import and export duties and value added taxes;

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Foreign exchange risk;

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Transportation delays and interruptions;

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Uncertainties arising from foreign local business practices and cultural considerations; and

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Changes in U.S. policies on trade relations and trade policy, including implementation of or changes in trade sanctions, tariffs, and embargoes.

 

Any measures adopted to reduce the potential impact of losses resulting from the risks of doing business internationally, may not be adequate, and the regions in which we operate might not continue to be stable enough to allow us to operate profitably or at all. Our international sales may be subject to local laws, regulations and procurement policies and practices which may differ from U.S. Federal Government regulation, including regulations related to products being installed on aircraft, and export and exchange controls. We are also exposed to risks associated with any relationships with foreign representatives, consultants, partners and suppliers for international sales and operations. Our ability to arrange safe travel to visit our international customers may put our ability to sell to such customers at risk, which may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

 

We may make future acquisitions and our business may suffer if we are unable to successfully integrate such acquisitions into our company or otherwise manage the growth associated with investments and acquisitions.

 

We continually review, evaluate and consider potential investments and acquisitions in pursuing our business strategy. In evaluating such transactions, we are making difficult judgments regarding the value of business opportunities, technologies and other assets, and the risk and cost of potential liabilities. Acquisitions and investments involve certain other risks and uncertainties, including the difficulty in integrating newly-acquired businesses, the challenges in reaching our strategic objectives, benefits expected from acquisitions or investments, cost and revenue synergies, interest rates and financial conditions, and risk that markets do not evolve as anticipated and the targeted opportunity or technology do not prove to be those needed to be successful in those markets. Other risks include the diversion of our attention and resources from our current operations, the potential of impairment of acquired assets and the potential loss of key employees of acquired businesses. Failure to realize the benefits of an acquisition may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Operational challenges impacting our Aerospace Products business could result in failure to meet customer demand for new modifications.

 

Our aircraft modification business is extremely complex. Customer projects are often scheduled based upon the availability of certain components and specific airplane models. These components are frequently acquired by the customer or by our Avcon Industries, Inc. subsidiary. Our customers may desire modification to specific airplane models that may become scarce due to competing demand, aircraft manufactured parts, manufacturing or labor challenges, among other factors. Operational issues, including delays or defects in parts or supplier components, failure to meet internal performance plans, or delays or failures to achieve required regulatory approval, could result in additional out-of-sequence work and increased production costs, as well as delayed deliveries to customers. We and our suppliers have been experiencing supply chain disruptions as a result of global supply chain constraints and labor instability. Supply chain issues could impact overall productivity and may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

A decrease in customer demand, coupled with the rise of entities purchasing Avcon-modified airplanes and leasing them, may impact our business and operations.

 

Our aircraft modification business is dependent on customer demand for Avcon modifications. There are several entities that have purchased Avcon-modified planes and lease them as an alternative to potential customers purchasing a modification for their airplane. If customer demand for Avcon modifications decreases generally, from the issues we may face from being able to meet customer demand for new components, or from the leasing of Avcon-modified airplanes offered by other entities, this may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We do not carry insurance on our airplane modification services and liability stemming from these services could adversely affect our business.

 

We do not carry liability insurance covering the Company for providing airplane modification services. We also expressly disclaim all expressed and implied warranties at law in most of our contracts in which we provide airplane modification services. While our airplane modification service contracts specifically disclaim certain warranties, and contain limitations on our liability, courts may still hold us liable for such claims if asserted against us. This may have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.

 

Cyber security attacks, internal system or service failures, and misappropriation of data or other breaches of information security may adversely impact our business and operations.

 

We increasingly rely on information technology and other systems, including our own systems and those of service providers and third parties, to manage our business and employee data and maintain and transmit customers’ personal and financial information, payment settlements, and payment funds transmissions. In addition, third-party service providers and other business partners process and maintain our proprietary business information and data. Our collection of such data is subject to extensive regulation by private groups, such as the payment card industry, as well as governmental authorities, including gaming regulatory authorities. Privacy regulations continue to evolve, and we have taken, and will continue to take, steps to comply by implementing processes designed to safeguard the confidential and personal information of our business, employees and customers.

 

Our information and processes and those of our service providers and other third parties, including our contractors and contractors of our service providers and vendors, are subject to the ever-changing threat of compromised security, in the form of a risk of potential breach, system failure, computer virus, or unauthorized or fraudulent use by customers, Company employees, Company contractors and other third parties including employees and contractors of third-party vendors. The steps we take to deter and mitigate the risks of breaches may not be successful, and any resulting compromise or loss of data or systems could adversely impact operations or regulatory compliance and could result in remedial expenses, fines, litigation, disclosures, and loss of reputation, potentially impacting our financial results.

 

Further, as cyber-attacks continue to evolve and become more sophisticated, we may incur significant costs in our attempts to modify or enhance our protective measures or investigate or remediate any actual or perceived vulnerability. Increased instances of cyber-attacks may also have a negative reputational impact that may result in a loss of customer confidence. Any failure to prevent or mitigate security breaches or cyber risk could result in interruptions to the services we provide and cause our customers to lose confidence in our products and services. The unauthorized access, acquisition or disclosure of consumer information could compel us to comply with disparate breach notification laws and otherwise subject us to proceedings by governmental entities, including gaming regulatory authorities, or others and substantial legal and financial liability. This could harm our business and reputation, disrupt our relationships with partners and diminish our competitive position.

 

 

Any system or service disruptions, including those caused by projects to improve our information technology systems, if not anticipated and appropriately mitigated, could disrupt our business, and impair our ability to effectively provide products and related services to our customers and could have a material adverse effect on our business. We could also be subject to systems failures, including network, software, or hardware failures, whether caused by us, third-party service providers, intruders or hackers, computer viruses, natural disasters, power shortages, or terrorist attacks. The failure or disruption of our communications or utilities could cause us to interrupt or suspend our operations or otherwise adversely affect our business. Although we utilize various procedures and controls to monitor and mitigate the risk of these threats, there can be no assurance that these procedures and controls will be sufficient. Moreover, expenditures incurred in implementing cyber security and other procedures and controls, including rising insurance costs, could impact our financial condition. Any cybersecurity incident or breach of our data or information systems may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We face the risk of fraud, theft, and cheating.

 

We face the risk that gaming customers may attempt or commit fraud or theft or cheat in order to increase winnings. Such acts of fraud, theft, or cheating could involve the use of counterfeit chips or other tactics, which may or may not occur in collusion with our employees. Internal acts of cheating could also be conducted by employees through collusion with dealers, surveillance staff, floor managers, or other casino or gaming area staff. Additionally, we also face the risk that customers may attempt or commit fraud or theft with respect to our non-gaming offerings or against other customers. Such risks include stolen credit or charge cards or cash, falsified checks, theft of retail inventory and purchased goods, and unpaid or counterfeit receipts. Failure to discover such acts or schemes in a timely manner could result in losses in our operations. Negative publicity related to such acts or schemes could have an adverse effect on our reputation. Any incidents of fraud, theft or cheating may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We are dependent on third-party platforms to offer sports wagering.

 

We signed agreements with DraftKings and Bally Corporation to facilitate online and mobile sports wagering. In calendar 2022, we commenced mobile sports wagering with DraftKings. Our Sports Wagering Management Contract with DraftKings has three years remaining and is scheduled to expire in 2027. If we cannot renew, we may have to enter into a similar contract with a different service provider. Bally Corporation has not performed its obligation as a platform for sports wagering. There is no guarantee that we will be able to negotiate favorable terms in any renewal or new contract. In addition, as we seek to launch online gaming and sports wagering applications in Kansas, we may need to hire additional qualified employees, such as engineers, IT professionals and other compliance personnel. Given the significant competition in this area for qualified candidates, we may be unable to recruit, hire, and retain such qualified candidates. Termination of our Sports Wagering Management contract with the State of Kansas or a failure to extend our relationship with DraftKings may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

There can be no assurance our sports wagering operations will be continuous or remain profitable.

 

In 2022 Kansas legalized intra-state sports wagering and established extensive state licensing and regulatory requirements governing any such intra-state sports wagering. We launched online and mobile sports wagering applications in the fall of 2022. Our contracted sports wagering platform competes in a rapidly evolving and highly competitive market against an increasing number of competitors.

 

Additionally, we have entered into agreements with sports wagering vendors such as DraftKings and Bally Corporation and may enter into additional agreements with strategic partners and other third-party vendors to provide market access. There can be no assurance that the Kansas audience will continue to engage in sports wagering and online gaming products to the extent that we expect. The success of our sports wagering activity is dependent on a number of additional factors, many of which are beyond our control, including the ultimate tax rates and license fees charged by the state of Kansas; our ability to maintain market share in Kansas; the access to online or mobile sports wagering in other states; the timeliness and the technological and popular viability of our products; our ability to compete with new entrants in the market; changes in consumer demographics and public tastes and preferences; cancellations and delays in sporting seasons and sporting matches as a result of events such as players strikes or lockouts; and the availability and popularity of other forms of entertainment. There can be no assurance that we will be able to compete effectively or that our offerings will be successful and generate sufficient returns on our investment. Any of the factors that impede sports wagering may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We are subject to certain change of control restrictions, which could make it more difficult to be acquired.

 

Some provisions of our Articles of Incorporation and our existing Shareholder Rights Agreement could make it more difficult for a potential acquirer to acquire a majority of our outstanding voting stock. This includes, but is not limited to, provisions that: provide for a classified Board of Directors, prohibit stockholders from taking action by written consent, and restrict the ability of stockholders to call special meetings. We are also subject to provisions of Kansas law K.S.A. 17-6427 that prohibit us from engaging in any business combination with any interested stockholder for a period of three years from the date the person became an interested stockholder, unless certain conditions are met, which could have the effect of delaying or preventing a change of control. In light of the highly regulated nature of our business and the authority of the regulatory agencies that monitor our business to monitor the composition of our shareholders, the Board has consistently believed these restrictions are appropriate. Nonetheless, these restrictions may result in missed opportunities for the Company and could result in a reduced share price of our common stock, which could harm our business.

 

Legal and Regulatory Risks

 

We are subject to significant government regulation and may need to incur significant expenses to comply with new or more stringent government regulation.

 

Our Aerospace Products business is subject to regulation by the FAA. We manufacture products and parts under FAA Parts Manufacturing Authority requiring qualification and traceability of all materials and vendors used by us. We make aircraft modifications pursuant to the authority granted by Supplemental Type Certificates issued by the FAA. We repair aircraft parts pursuant to the authority granted by our FAA Authorized Repair Station. Before we sell any of our products that are to be installed on an aircraft, they must meet certain standards of airworthiness established by the FAA or the equivalent regulatory agencies in certain other countries. New, more stringent government regulations, or different interpretations of current regulations may be adopted in the future. Changes in the availability of FAA resources to process approvals of modifications or in the regulations that impact our ability to export modifications may adversely affect our business. Likewise, adverse determinations or policy directives from the United States government with respect to controls and classifications of our Avcon Industries, Inc. products could adversely affect the financial condition of the Company. Our failure to comply with applicable regulations could result in the termination of or our disqualification from some of our material contracts, licenses, certificates, authorizations, or approvals, which could have a material adverse effect on our operations and financial condition. Related costs of compliance with, or liability for violations of, existing or future regulations may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

 

The online gaming industry is heavily regulated and the Company’s failure to obtain or maintain applicable licensure or approvals, or otherwise comply with applicable requirements, could be disruptive to our business and could adversely affect our operations.

 

We are subject to regulation in connection with our management of a State of Kansas owned Lottery Gaming Facility. Kansas gaming authorities may require our management personnel, the Company and the managing subsidiaries, and key personnel of all entities to maintain a state-issued license or undergo background checks. Each State Gaming Agency has broad discretion in granting, renewing, and revoking licenses. Obtaining such licenses and approvals could be time consuming and may be unsuccessful or involve considerable expense, which could adversely affect our ability to successfully operate our business. Further, the failure of the Company or key personnel to obtain or retain a license could have a material adverse effect on the Company or on its ability to obtain or retain these licenses in other jurisdictions.

 

Our present and future stockholders are, and will continue to be, subject to review by regulatory agencies. We are subject to the Lottery Gaming Facility management contract approval process in the state of Kansas. This process requires that any entity or person directly or indirectly owning five percent 5% of the ownership interest of a management company must be found suitable to be an owner by the state of Kansas. If found unsuitable by any agency, the stockholder must offer all of the interest in Company stock held by such stockholder to the Company for cash at the current market bid price less a fifteen percent 15% administrative charge and the Company must purchase such interest within six months of the offer. The stockholder is required to pay all costs of investigation with respect to a determination of his her or their suitability. Any such forced sale may negatively affect the trading price and liquidity of our shares. In addition, regardless of ownership, each member of the Board of Directors and certain officers of the Company are subject to a finding of suitability by any Agency on a regular basis. If a Board member or officer were found unsuitable, we may be forced to dissociate with such person. Such forced dissociation may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Gaming regulation and law is evolving, which may adversely affect our business.

 

Gaming management operations are and will be subject to extensive gaming laws and regulations, many of which were recently adopted and have not been the subject of definitive interpretations and are still subject to proposed amendments and regulation. The political and regulatory environment in which the Company is and will be operating with respect to gaming activities is dynamic and rapidly changing. Some legislative efforts seek to enact a smoking ban that would impact our casino facility. Smoking is permitted in Indian casinos in the State of Kansas and in casinos in neighboring states. Such a ban, if enacted, would put us at a competitive disadvantage and may adversely affect our financial condition, results of operations, liquidity and cash flows. Additionally, certain political efforts seek a significant regulatory change for Indian gaming that, if enacted, could lead to Indian casino gaming over the internet throughout the state. Propositions have also been made that would make it easier for Indian tribes to place land into trust that would enable the tribes to conduct gaming operations. Additional gaming would increase competition for discretionary income from our gaming patrons. The State of Kansas may enact new legislation involving the expansion of gaming including with respect to internet and mobile gaming.  Furthermore, regulatory costs may continue to rise. We may not be able to respond quickly or effectively to regulatory, legislative, and other developments, and these changes may in turn impair our ability to offer our existing or proposed products and services or increase our expenses in providing these products and services. Adoption or changes in gaming laws and regulations could adversely affect our financial condition, results of operations, liquidity and cash flows.

 

We are subject to extensive taxation policies, which could adversely affect our business.

 

The federal government has, from time to time, considered a federal tax on casino revenues and may consider such a tax in the future. If such an increase were to be enacted, our ability to incur additional indebtedness in the future to finance casino development projects could be materially adversely affected. Additionally, gaming companies are currently subject to significant state and local taxes and fees, in addition to normal federal and state corporate income taxes, and such taxes and fees are subject to increase at any time. The Boot Hill Casino, pursuant to its Management Contract with the State of Kansas pays total taxes between 27% and 31% of gross gaming revenue, based on achievement of the following revenue levels: 27% on gross gaming revenue up to $180 million, 29% on amounts from $180 million to $220 million, and 31% on amounts above $220 million in gross gaming revenue. The Boot Hill Casino is contractually obligated to pay its proportionate share of certain expenses incurred by the Kansas Lottery Commission and the Kansas Racing and Gaming Commission, which amounted to $2.4 million during fiscal year ended April 30, 2024. On December 15, 2024, the tax rate to the state increases by 2% and we begin our second 15-year management contract for traditional gaming at Boot Hill Casino.

 

Changes in financial reporting regulations could have a materially adverse effect on our business.

 

The Company reports information to its stockholders and the general public pursuant to the regulations of various federal and state commissions and agencies. The Company is subject to guidance from the FASB (Financial Accounting Standards Board) and the Securities Exchange Commission. The political and regulatory environment in which the Company operates is dynamic and rapidly changing, and adoption or changes in regulations defining accounting procedures or reporting requirements could increase expenditures to report required financial information, which may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Financial Risks

 

Our business requires financing and financing is dependent upon the stability of economic markets.

 

Our ability to manage and grow our business and to execute our business strategy is dependent, in part, on the continued availability of financing. Access to financing may be limited by various factors, including the condition of overall credit markets, the current high interest rate environment, general economic factors, state of the aviation or gaming industry, our financial performance, and credit ratings. Financing may not continue to be available to us on favorable terms, or at all. If we are unable to obtain additional capital when required, or on satisfactory terms, we may be precluded from maintaining or enhancing our properties, taking advantage of future opportunities, growing our business, acquiring new properties, or responding to competitive pressures.

 

 

We may be required in the future to record impairment losses related to assets we currently carry on our balance sheet.

 

We own and distribute aircraft parts and components. Recurring losses in certain operations could require us to evaluate the recoverability of the carrying value of the related assets and recognize an impairment charge through earnings to reduce the carrying value. In addition, if aircraft for which we offer replacement parts, components, or supply maintenance services are retired and there are fewer aircraft that require these parts or services, our revenues in the future may decline from historical trends.

 

We evaluate intangible assets for impairment annually during the fourth quarter and in any interim period in which circumstances arise that indicate our intangible asset may be impaired. Indicators of impairment include, but are not limited to, the loss of significant business or significant adverse changes in industry or market conditions. No events occurred during the periods presented indicating the existence of an impairment with respect to our intangible assets. Preparation of forecasts for use in the long-range plan and the selection of the discount rate involve significant judgments that we base primarily on existing firm orders, expected future orders and general market conditions. Significant changes in these forecasts or the discount rate selected could affect the estimated fair value and could result in an impairment charge in a future period.

 

We make a number of assumptions when determining the recoverability of our assets, including historical sales trends, current and expected usage trends, replacement values, residual values, future demand, and future cash flows. Differences between actual results and the assumptions utilized by us when determining the recoverability of our assets could result in impairment charges in future periods, which may adversely affect our results of operations, financial condition, liquidity and cash flows.

 

Risks Related to our Stock

 

Because our common stock is deemed a low-priced "Penny" stock, an investment in our common stock should be considered high risk and subject to marketability restrictions.

 

Since our common stock is a penny stock, as defined in Rule 3a51-1 under the Exchange Act, it will be more difficult for investors to liquidate their investment. Until the trading price of the common stock increases so that it no longer qualifies as a “penny stock,” if ever, trading in the common stock is subject to the penny stock rules of the Exchange Act. Those rules require broker-dealers, before effecting transactions in any penny stock, to:

 

●

Deliver to the customer, and obtain a written receipt for, a disclosure document;

●

Disclose certain price information about the stock;

●

Disclose the amount of compensation received by the broker-dealer or any associated person of the broker-dealer;

●

Send monthly statements to customers with market and price information about the penny stock; and

●

In some circumstances, approve the purchaser's account under certain standards and deliver written statements to the customer with information specified in the rules.

 

Consequently, the penny stock rules may restrict the ability or willingness of broker-dealers to sell the common stock and may affect the ability of holders to sell their common stock in the secondary market and the price at which such holders can sell any such securities. These additional procedures could also limit our ability to raise additional capital in the future.

 

We may conduct a reverse-stock split, which could expose us to certain risks.

 

The possibility of the Company undergoing a reverse-stock split has been discussed at prior annual meetings as a means to increase the common stock share price. We operate in competitive industries and the Company must consider all strategies to increase our common stock share price for stockholders. A reverse stock-split and subsequent increase in the common stock price could elicit a positive market reaction and attract new investors to the Company. There are also risks with a reverse stock-split. The market could react negatively to the consolidation and our common stock could come under renewed selling pressure, which would negatively affect the trading price of our common stock.

 

 

General Risk Factors

 

We operate in competitive markets, and competitive pressures could adversely affect our business.

 

The markets for our Aerospace Products to our commercial, government, and defense customers are highly competitive, and we face competition from a number of sources, both domestic and international. While we believe that we have unique products and proprietary designs that provide a competitive advantage to other modification businesses, the risk exists that other businesses could expand into the marketplace of our Aerospace Products business. Some of our competitors have substantially greater financial and other resources than we have, and others may price their products and services below our selling prices. These competitive markets also create pressure on our ability to hire and retain qualified technicians and other skilled labor needs. These competitive pressures may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Additionally, because of the rapid rate at which the gaming industry has expanded, and continues to expand, the gaming industry may be at risk of market saturation, both as to specific areas and generally. Overbuilding of gaming facilities by others at particular sites in competitive markets may have a material adverse effect on our ability to compete and on our operations. Other forms of entertainment, such as television, movies, sporting events and the Kansas Lottery operating iLottery, are more well-established and may be perceived by our users to offer greater variety, affordability, interactivity and enjoyment. We compete with these other forms of entertainment for the discretionary time and income of our users. It is possible that these secondary competitors could reduce the number of visitors to our facilities or the amount they are willing to wager with us, which may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Acts of terrorism and war could disrupt our business.

 

Terrorist attacks and other acts of war or hostility create many economic and political uncertainties. We cannot predict the extent to which terrorism, security alerts, war, or hostilities throughout the world will continue to directly or indirectly impact our business and operating results. Because of the threat of terrorist attacks and other acts of war or hostility in the future, premiums for certain insurance products have increased, and some types of insurance are no longer available. Given current conditions in the global insurance markets, we are substantially uninsured for losses and interruptions caused by terrorist acts and acts of war. If any such event were to affect our properties, it may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Inclement weather, natural or human-caused disasters and other conditions could seriously disrupt our business and operations.

 

Our gaming operations are subject to the weather and other conditions that could disrupt or reduce the number of customers who visit our casino. If weather conditions limit access to our casino or otherwise adversely impact our ability to operate our casino at full capacity, our revenue could suffer, which may adversely affect our financial condition, results of operations, liquidity and cash flows. We also face risks that the weather and other conditions could adversely affect the local industries in Dodge City, Kansas, where the Boot Hill Casino is located. The local economy in Dodge City is primarily fueled by the agriculture, meat processing and oil and gas industries. In the event the weather or other conditions severely disrupt these industries, we could see a reduction in the number of customers who visit our casino. In addition, natural or human-caused disasters or other catastrophic events such as pandemics, major fires, floods, blizzards, tornados and earthquakes could also adversely impact our business and operating results. Such events could lead to the loss of use of one or more of the facilities for which we provide management services for an extended period of time and disrupt our ability to attract customers to our gaming facilities. Additionally, damage from severe weather to our aircraft modification facilities could have an adverse impact on our business if we are unable to continue performing aircraft modifications. Any such event may adversely affect our financial condition, results of operations, liquidity and cash flows.

 

Rising inflation has increased costs related to materials and labor which has adversely impacted our operational capacity and lowered profitability.

 

The Bureau of Labor Statistics reported that the Consumer Price Index increased 3.4 percent in 2023. Many of our operating expenses are sensitive to increases in inflation including equipment prices, fuel costs, and employee-related costs. Insurance costs have also significantly increased with most major carriers. Furthermore, current inflationary pressures may increase costs for materials, supplies, and services. Rising inflation may also drive demand for increases in compensation for employees which may result in increased labor costs. With increasing costs, we may have to increase our prices to maintain the same level of profitability. If we are unable to increase our prices sufficiently to offset increasing expenses, then inflation may have a material adverse effect on our financial condition, results of operations, liquidity and cash flows.

 

 

 

Item 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

 

Item 1C. CYBERSECURITY

 

Risk Management and Strategy

 

The Company maintains cybersecurity processes, technologies and controls to help it assess, identify and manage material risks from cybersecurity threats. These processes, technologies and controls are part of the Company’s overall enterprise risk management process.

 

Our cybersecurity program is based on the National Institute of Standards and Technology Cybersecurity Framework and is designed to ensure that our information systems are effective and are prepared for cybersecurity threats, including through regular oversight and mitigation of internal and external threats.  As a U.S. defense subcontractor, we are additionally obligated to comply with Department of Defense regulations such as Defense Federal Acquisition Regulation Supplement.

 

The Company utilizes existing employees and contracts with third party firms to evaluate our information security program, for continuous system monitoring and threat detection, to gather insights for identifying and assessing material cybersecurity threats, and for potential mitigation assistance. We conduct cybersecurity assessments using third-party service providers, and we require them to promptly notify the Company of any cybersecurity risks, threats or incidents that might impact us.

 

The Company has an established cybersecurity and information security awareness training program that includes mandatory annual training and regular communications for our employees regarding cybersecurity threats and methods of mitigation.

 

There can be no guarantee that our policies and procedures will be effective. Although our risk factors include further detail about the material cybersecurity risks we face, we believe that risks from cybersecurity threats have not materially affected our business to date. We can provide no assurance that there will not be incidents in the future or that they will not materially affect us, including our business strategy, results of operations or financial condition. For more information about the cybersecurity risks we face, see the risk factor entitled “Cyber security attacks, internal system or service failures, and misappropriation of data or other breaches of information security may adversely impact our business and operations” in Item 1A. Risk Factors.

 

Governance

 

Management is responsible for the day-to-day assessment and management of cybersecurity risks. Cybersecurity measures that pertain specifically to Company’s Boot Hill subsidiary have been delegated to Boot Hill’s Board of Managers, a committee comprised of directors and officers of the Company and officers of Boot Hill. This committee is responsible for ensuring compliance with Kansas Racing and Gaming Commission regulations.

 

The Board of Directors has oversight responsibility for the Company’s strategic and operational risks. The Board has delegated oversight responsibility for certain risks to its committees, including delegation to the Board’s Nominating and Governance Committee oversight of the Company’s major non-financial reporting enterprise risk assessment and management processes not retained by the Board.  However, given the broad and important role of cybersecurity oversight, the Board has determined that oversight for cybersecurity should remain with the full Board. The Board routinely receives reports from the Company’s Chief Executive Officer, with the assistance of the Company’s IT department, concerning the Company’s cybersecurity risk management and strategies and related processes, technologies and controls.

Item 2. PROPERTIES

Corporate

Our corporate headquarters are located in a 36,000 square foot leased facility with hanger and office space at One Aero Plaza, New Century, Kansas (located at the New Century Airport).

Aerospace Products (dollars in thousands)

Butler National Corporation has an office and manufacturing operations at 4654 South Ash Ave, Tempe, Arizona in a 16,110 square foot owned facility.

Butler Avionics, Inc. and Butler National Aviation Certification Center are located at One Aero Plaza, New Century, Kansas in the same facility as the corporate office.

Avcon Industries, Inc. is located at 714 North Oliver Road, Newton, Kansas, in a 47,000 square foot leased facility with hangar and office space at the municipal airport in Newton, Kansas. In addition, Avcon Industries, Inc. owns a 12,000 square foot hangar and office space at the municipal airport in Newton, Kansas.

Professional Services

BHCMC, LLC is located at 4000 W. Comanche in Dodge City, Kansas in a 60,000 square foot owned building known as the Boot Hill Casino facility. 

BHCMC, LLC has an administration center located at 2601 N. 14th Avenue in Dodge City, Kansas in a 29,000 square foot owned facility.

Management believes our properties have been well maintained, are suitable and adequate for us to operate at present levels, and the current productive capacity. The utilization of these facilities is appropriate for our existing real estate requirements. However, significant increases in customer orders, changes in product lines, and/or future acquisitions may require expansion of our current properties or the addition of new properties.

Item 3. LEGAL PROCEEDINGS

As of July 23, 2024, there are no significant known legal proceedings pending against us. We consider all such unknown proceedings, if any, to be ordinary litigation incident to the character of the business. We believe that the resolution of any claims will not, individually or in the aggregate, have a material adverse effect on the financial position, results of operations, or liquidity of the Company.

Item 4. MINE SAFETY DISCLOSURES.

Not applicable.

 

 

 

PART II

 

Item 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

COMMON STOCK (BUKS)

 

(a)	Market Information: Our shares are exclusively quoted on OTCQX platform under the symbol "BUKS".
The range of the high and low bid prices per share of the common stock, for fiscal years 2024 and 2023, as reported by OTC Markets Group, is set forth below. Such market quotations reflect inter-dealer prices, without retail mark-up, mark-down or commissions, and may not necessarily represent actual transactions.

 

		Year Ended April 30, 2024								Year Ended April 30, 2023
		Low				High				Low				High
First quarter		$	0.66			$	0.84			$	0.78			$	1.01
Second quarter		$	0.57			$	0.84			$	0.63			$	0.95
Third quarter		$	0.64			$	0.82			$	0.62			$	0.72
Fourth quarter		$	0.74			$	0.93			$	0.61			$	0.74

 

(b)	Holders: The approximate number of holders of record of our common stock, as of July 19, 2024, was 2,600. The price of the stock as of July 19, 2024 was approximately $0.86 per share.
(c)	Dividends: We have not paid any cash dividends on common stock, and the Board of Directors does not expect to declare any cash dividends in the foreseeable future.

 

SECURITIES CONVERTIBLE TO COMMON STOCK

 

As of July 23, 2024, there were no convertible preferred shares or convertible debenture notes outstanding.

 

STOCK REPURCHASE PROGRAM

 

In December 2016, the Board of Directors approved a common stock repurchase program. The program was established for the purpose of enabling Butler National Corporation (BNC) to flexibly repurchase its own shares in consideration of factors such as opportunities for strategic investment, BNC's financial condition and the price of its common stock as part of improving capital efficiency. In July 2023, the Board of Directors approved an increase in the size of the Company's common stock repurchase program from $4 million to $9 million. The program is currently authorized through July 31, 2025.

 

The table below provides information with respect to common stock purchases by the Company during the quarter ended April 30, 2024.

 

Period		Total Number of Shares Purchased				Average Price Paid per Share				Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs				Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
Program authorization														$	9,000
Shares purchased prior to January 31, 2024			10,270,355			$	0.63				10,270,355			$	2,540
Month ended February 29, 2024			-			$	-				-			$	2,540
Month ended March 31, 2024			-			$	-				-			$	2,540
Month ended April 30, 2024 (a)			5,000			$	0.79				5,000			$	2,536
Total			10,275,355			$	0.63				10,275,355

 

(a)	These shares of common stock purchased were purchased through private transactions.

 

Item 6.  RESERVED

 

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following Management Discussion and Analysis (MD&A) is intended to help the reader understand our results of operations and financial condition for fiscal years 2024 and 2023 by discussing principle factors affecting the results of operations, liquidity and capital resources, as well as the critical accounting policies of the Company and its wholly-owned subsidiaries and affiliates. This MD&A should be read in conjunction with, our consolidated financial statements and the accompanying notes to the consolidated financial statements.

 

Our fiscal year ends on April 30th. Fiscal years 2024 and 2023 consisted of 52 weeks and ended on April 30, 2024 and April 30, 2023, respectively. All references to years in this MD&A represent fiscal years unless otherwise noted.

 

 

Overview

 

We have two separate reporting segments: Aerospace Products and Professional Services. Aerospace Products and Professional Services do not share the same customers or suppliers and have substantially distinct businesses. The Aerospace Products operating segment provides products and services in the aerospace industry. Companies in Aerospace Products derive their revenue from system design, engineering, manufacturing, integration, installation, repairing, overhauling, servicing and distribution of aerostructures, avionics, aircraft components, accessories, subassemblies and systems. The Professional Services operating segment provides services in the gaming industry. Professional Services companies manage a gaming and entertainment facility and previously provided architectural services. These reporting segments operate through various subsidiaries and affiliates listed on Exhibit 21 to this Form 10-K.

 

Management is focused on increasing long-term shareholder value from increased cash generation, earnings growth, and prudently managing capital expenditures. We plan to do this by continuing to drive increased revenues from product and service innovations, strategic acquisitions, and targeted marketing programs. Specifically, Butler National Corporation actively works to develop and promote new STCs and continues to work to expand its aircraft modification production capabilities.

 

Butler National’s strategy is dependent on a number and viability of ongoing factors as discussed under “Forward-Looking Statements” and Part 1, Item 1A, “Risk Factors.” The key factors that affect our operating results are the customer headcount at Boot Hill, the number and viability of new STCs we are able to develop, our ability to market STCs in domestic and international markets, the growth of our new sports wagering platforms, and our ability to manage our cost structure for capital expenditures and operating expenses such as salaries, wages and benefits, claims and insurance expense, maintenance, and new equipment or raw materials.

 

Results Overview

 

Our fiscal 2024 revenue increased 4% to $78.4 million compared to $75.2 million in fiscal 2023. In fiscal 2024 the Professional Services revenue increased 2% primarily due to the development of sportsbook revenue.  There was also an increase of 7% in the Aerospace Products revenue in fiscal 2024 which can be attributed to targeted marketing efforts for our new STC's and special mission products.

 

Our fiscal 2024 net income was $12.5 million compared to net income of $4.5 million in fiscal 2023. Earnings per share was $0.18 for fiscal 2024 compared to $0.06 in fiscal 2023. We continue focusing on our margin expansion initiatives, including efficiencies in our implementation of improved operational processes and controlling general and administrative expenses. The fiscal 2024 operating income was $13.2 million, an increase of 53% from $8.7 million in fiscal 2023.

 

RESULTS OF OPERATIONS

 

Fiscal 2024 compared to Fiscal 2023

 

(dollars in thousands)		2024				Percent of Total Revenue				2023				Percent of Total Revenue				Percent Change 2023-2024
Revenue:
Professional Services		$	38,640				49	%		$	38,041				51	%			2	%
Aerospace Products			39,736				51	%			37,141				49	%			7	%
Total revenues			78,376				100	%			75,182				100	%			4	%
Costs and expenses:
Cost of professional services			15,761				20	%			15,449				21	%			2	%
Cost of aerospace products			28,711				37	%			25,854				34	%			11	%
Marketing and advertising			5,009				6	%			5,426				7	%			-8	%
General, administrative and other			15,656				20	%			19,799				26	%			-21	%
Total costs and expenses			65,137				83	%			66,528				88	%			-2	%
Operating income		$	13,239				17	%		$	8,654				12	%			53	%

 

 

Revenue

 

Revenue increased to $78.4 million in fiscal 2024, compared to $75.2 million in fiscal 2023. See "Operations by Segment" below for a discussion of the primary reasons for the increase in revenue.

 

Professional Services derives its revenue from (a) professional management services in the gaming industry through Butler National Service Corporation ("BNSC") and BHCMC, LLC ("BHCMC"), and (b) professional architectural and management support services through BCS Design, Inc. ("BCS"), which was closed in January 2024. Revenue from Professional Services increased 2% to $38.6 million in fiscal 2024 compared to $38.0 million in fiscal 2023.  The sports wagering platform brought in $4.6 million of revenue during fiscal 2024 compared to $2.7 million in fiscal 2023. Furthermore, casino gaming revenue decreased $1.2 million due to a decrease in patron visits.  We believe this was due primarily to increased inflation, competition and drought conditions in our primary market area causing a decrease in discretionary spending.

 

Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, servicing and repairing products for aircraft and military vehicles. Aerospace Products revenue increased 7% to $39.7 million in fiscal 2024 compared to $37.1 million in fiscal 2023. The increase in revenue is primarily due to an increase in the aircraft modification business of $1.0 million and an increase in special mission electronics of $1.2 million.  The development of new STC's and our marketing efforts for them in both domestic and international markets supported this increase.

 

Costs and expenses

 

Costs and expenses related to Professional Services and Aerospace Products include the cost of engineering, labor, materials, equipment utilization, control systems, security and occupancy.

 

Costs and expenses decreased 2% in fiscal 2024 to $65.1 million compared to $66.5 million in fiscal 2023.  Costs and expenses were 83% of total revenue in fiscal 2024, compared to 88% of total revenue in fiscal 2023.  The decrease is primarily due to a $4.5 million severance accrual relating to a separation agreement with two former executive officers that was expensed in fiscal year 2023, partially offset by an increase in material and labor costs in fiscal 2024.  

 

Costs of Professional Services increased 2%  in the year ended April 30, 2024, to $15.8 million compared to $15.4 million in the year ended April 30, 2023.  Costs were 20% of total revenue in the year ended April 30, 2024, as compared to 21% of total revenue in the year ended April 30, 2023.  The increase is directly related to an increase in labor costs.

 

Costs of Aerospace Products increased 11% in the year ended April 30, 2024, to $28.7 million compared to $25.9 million for the year ended April 30, 2023.  Costs were 37% of total revenue in the year ended April 30, 2024, as compared to 34% of total revenue in the year ended April 30, 2023.  The increase is directly related to an increase in material and labor costs.

 

Marketing and advertising expenses decreased 8% to $5.0 million in fiscal 2024, from $5.4 million in fiscal 2023. Costs were 6% of total revenue in the year ended April 30, 2024 as compared to 7% of total revenue in the year ended April 30, 2023. The decrease is due to a change in marketing strategy and methods to attract customers. Marketing and advertising expenses include advertising, sales and marketing labor, gaming development costs, and casino and product promotions. 

 

General, administrative and other expenses  decreased 21% to $15.7 million in fiscal 2024, from $19.8 million in fiscal 2023. Costs were 20% of total revenue in the year ended April 30, 2024, compared to 26% of total revenue in the year ended April 30, 2023. The decrease is primarily due to a $4.5 million severance accrual relating to a separation agreement with two former executive officers that was expensed in fiscal 2023. 

 

Other income (expense)

 

Other income (expense) was $ 3.5 million in fiscal 2024 compared to ($2.1) million in fiscal 2023, a change of $ 5.6 million from fiscal 2023 to fiscal 2024.  Interest expense was ($2.4) million in fiscal 2024 and ($2.7) million in fiscal 2023.  Gain on sale of assets was $5.7 million in fiscal 2024 compared to $479 in fiscal 2023. Interest income was $305 in fiscal 2024 and $0 in fiscal 2023.  

 

 

 

Operations by Segment

 

We have two operating segments, Professional Services and Aerospace Products. The Professional Services segment includes revenue contributions and expenditures associated with casino management services and professional architectural and management support services. Aerospace Products derives its revenue by designing, engineering, manufacturing, installing, modifying, servicing and repairing products for aircraft.

 

 The following table presents a summary of our operating segment information for fiscal years 2024 and 2023:

 

(dollars in thousands)		2024				Percent of Revenue				2023				Percent of Revenue				Percent Change 2023-2024
Professional Services
Revenue
Boot Hill Casino		$	38,577				100	%		$	37,758				99	%			2	%
Other Professional Services			63				0	%			283				1	%			-78	%
Revenue			38,640				100	%			38,041				100	%			2	%
Costs of Professional Services			15,761				41	%			15,449				40	%			2	%
Expenses			14,162				36	%			14,003				37	%			1	%
Total costs and expenses			29,923				77	%			29,452				77	%			2	%
Professional Services operating income		$	8,717				23	%		$	8,589				23	%			1	%

 

(dollars in thousands)		2024				Percent of Revenue				2023				Percent of Revenue				Percent Change 2023-2024
Aerospace Products
Revenue		$	39,736				100	%		$	37,141				100	%			7	%
Costs of Aerospace Products			28,711				72	%			25,854				70	%			11	%
Expenses			6,503				17	%			11,222				30	%			-42	%
Total costs and expenses			35,214				89	%			37,076				100	%			-5	%
Aerospace Products operating income		$	4,522				11	%		$	65				0	%			6857	%

 

Professional Services

 

●

Revenue from Professional Services increased 2% to $38.6 million in fiscal 2024 from $38.0 million in fiscal 2023. We established a new sports wagering platform during fiscal 2023 that brought in $4.6 million of revenue during fiscal 2024 compared to $2.7 million for the partial year it was operational in fiscal 2023.  Furthermore, traditional casino gaming revenue decreased $1.2 million due to a decrease in patron visits.  We believe this was due primarily to increased inflation and drought conditions in our primary market area causing a decrease in discretionary spending.

 

The remaining management and Professional Services revenue is from architectural services. Architectural services revenue decreased 78% to $63 in fiscal 2024 compared to $283 in fiscal 2023.  The decrease is due to management's dissolution of the architecture business in January 2024.  

 

●

Costs increased 2% in fiscal 2024 to $15.8 million compared to $15.4 million in fiscal 2023. Costs were 41% of segment total revenue in fiscal 2024, compared to 40% of segment total revenue in fiscal 2023.  The increase is directly related to an increase in labor costs.

 

●

Expenses increased 1% in fiscal 2024 to $14.2 million compared to $14.0 million in fiscal 2023. Expenses were 36% of segment total revenue in fiscal 2024, compared to 37% of segment total revenue in fiscal 2023.  The increase is due primarily to an increase in  depreciation expense.

 

 

Aerospace Products

 

●

Revenue increased 7% to $39.7 million in fiscal 2024 compared to $37.1 million in fiscal 2023. This increase was primarily due to an increase in our aircraft modification business of $1.0 million and an increase in special mission electronics of $1.2 million.  The development of new STC's and our marketing efforts in both domestic and international markets supported the increase.

 

●

Costs increased 11% to $28.7 million in fiscal 2024 compared to $25.9 million in fiscal 2023. Costs were 72% of segment total revenue in fiscal 2024, compared to 70% of segment total revenue in fiscal 2023. This increase is directly related to the increase in material and labor costs.

 

●

Expenses decreased 42% in fiscal 2024 to $6.5 million compared to $11.2 million in fiscal 2023. Expenses were 17% of segment total revenue in fiscal 2024, compared to 30% of segment total revenue in fiscal 2023.  The decrease is primarily due to a $4.5 million severance accrual relating to separation agreements with two former executive officers that was expensed in fiscal 2023.

Outlook

 

The Bureau of Labor Statistics reported that the Consumer Price Index increased 3.4 percent in 2023. Many of our operating expenses are sensitive to increases in inflation including equipment prices, fuel costs, and employee-related costs. Insurance costs have also significantly increased with most major carriers. Furthermore, the market is currently experiencing inflationary pressures that may increase costs for materials, supplies, and services. Rising inflation may also drive employee demand for increases in compensation which may result in increased in labor costs. With costs increasing, we may have to increase our prices to maintain the same level of profitability. The Company believes the omnicron variant of COVID-19 pandemic and the conflicts in Israel and Ukraine had no material impact on the performance of the Company and it is unlikely to have a material impact in the future.

 

Liquidity and Capital Resources (in thousands, except where expressed in millions)

 

Overview 

 

Butler National is a holding company. Our ability to fund our obligations depends on existing cash on hand, cash flow from our subsidiaries and our ability to raise capital. Our primary sources of liquidity and capital resources have been cash on hand, cash flow from operations, borrowings under our lines of credit and notes payable (as further described below) and proceeds from the issuance of debt and equity securities. We assess liquidity in terms of the ability to generate cash or obtain financing in order to fund operating, investing and debt service requirements. Our primary ongoing cash requirements include the funding of operations, capital expenditures, acquisitions and other investments in line with our business strategy and debt repayment obligations and interest payments. Our strategy has been to maintain moderate leverage and substantial capital resources in order to take advantage of opportunities, to invest in our businesses and develop new streams of income that may be profitable. As such, we have continued to invest in developing and marketing new aircraft modifications and marketing new STCs. We believe that our current banks will provide the necessary capital for our business operations. However, we continue to maintain contact with other banks that have expressed an interest in funding our working capital needs to continue our operational growth in 2024 and beyond.

 

Notes Payable and Lines of Credit

 

At April 30, 2024, the Company has a $2 million line of credit with Kansas State Bank in the form of a promissory note with an interest rate 8.4%. The unused line at April 30, 2024 was $2 million. There were no advances made on the line of credit during the year ended April 30, 2024. The line of credit is due on demand and is secured by a first and second position on all assets of the Company.

 

One note payable with Academy Bank, N.A. had a balance of $29.2 million at April 30, 2024, secured by all of BHCMC's assets and compensation under the State management contract with an interest rate of 5.32% payable over seven years with an initial twenty-year amortization and a balloon payment of $19.3 million in December 2027. A second note payable with Academy Bank, N.A. had a balance of $7.5 million at April 30, 2024, and is secured by all of BHCMC's assets and compensation under the State management contract with an interest rate of 5.75%.  This note matures in October 2026. These notes contain a covenant to maintain a debt service coverage ratio of 1.3 to 1.0. These notes also contain a liquidity covenant requiring the Company to maintain an aggregate sum of $1.5 million of unrestricted cash. We are in compliance with these covenants at April 30, 2024.

 

At April 30, 2024, there was a note payable with Bank of America, N.A. with a balance of $787. The interest rate on this note is at SOFR plus 1.75%.  The loan is secured by buildings and improvements having a net book value of $680.  This note matures in March 2029.

 

At April 30, 2024, there was a note payable with Patriots Bank with an interest rate of 4.35% with a balance of $887.  This loan is secured by aircraft security agreements with a net book value of $701. This note matures in March 2029.

 

At April 30, 2024, there is a note payable with an interest rate of 8.13% with a balance of $34 secured by equipment with a net book value of $31. This note matures in October 2025.

 

We are compliant with the covenants and obligations of each of our notes as of April 30, 2024, and July 23, 2024.

 

 

Cashflow Summary

 

Our use of cash in the last fiscal year is in line with our overall fiscal strategy to use moderate leverage to facilitate growth in existing businesses and to develop new streams of income. During fiscal 2024 our cash position decreased by $4.2 million. Net income was $12.5 million.

 

Operating Activities

 

Cash flows from operating activities provided $7.5 million. Non-cash activities consisting of depreciation and amortization contributed $6.1 million, gain on sale of assets used $5.7 million, deferred compensation used $15, and stock awarded to a director provided $222. Deferred income taxes decreased our cash position by $446. Accounts receivable decreased our cash position by $2.0 million. Inventories decreased our cash position by $1.0 million. Accounts payable and contract liability decreased our cash position by $138. Contract assets decreased our cash position by $1.9 million. Prepaid expenses and other assets increased our cash by $1.8 million, while gaming facility mandated payments increased our cash by $116. Accrued liabilities and other liabilities decreased our cash position by $4.6 million.  Income taxes payable increased our cash position by $2.6 million.

 

Investing Activities

 

Cash used in investing activities was $1.1 million. This was a decrease of $4.8 million from last year. The decrease was primarily attributable to the Company selling fixed assets in fiscal 2024. We invested $2.2 million towards STCs, $1.7 million on a building and improvements, $1.6 on the purchase of an airplane and airplane upgrades and $3.2 million on equipment and furnishings. We received $4.9 million in proceeds from the sale of airplanes and $2.7 million in proceeds from the sales of land and buildings.

 

Financing Activities

 

Cash used in financing activities was $10.6 million. This was an increase of $5.1 million from last year. The increase was primarily attributable to the Company repurchasing $5.1 million of company stock. Our uses consisted of repayments on our debt of $5.3 million and a reduction of our lease liability by $263. The stock acquired was placed in treasury.

 

Capital Expenditures

 

The Company anticipates capital expenditures in fiscal year 2025 to be approximately $13.0 million, consisting of $2.5 million on STC's, $3.0 million on equipment, $1.5 million on buildings and improvements, and $6.0 million on airplanes. We anticipate our cash balance will be sufficient to cover cash requirements through the current fiscal year.

 

Critical Accounting Estimates

 

We believe there are several accounting policies that are critical to understanding our historical and future performance, as these policies affect the reported amount of revenue and other significant areas involving management judgments and estimates. These significant accounting policies relate to revenue from contracts with customers, inventory valuation and long-lived assets. These policies and our procedures related to these policies are described in detail below and under specific areas within this "Management Discussion and Analysis of Financial Condition and Results of Operations." In addition, Note 1 to the consolidated financial statements expands upon discussion of our accounting policies.

 

Revenue from Contracts with Customers – Aerospace Contracts

 

Methodology

 

We recognize revenue and profit based upon either (1) the percent completion method, in which sales and profit are recorded based upon the ratio of labor costs incurred to date to estimated total labor costs to complete the performance obligation, or (2) the point-in-time method, in which sales are recognized at the time control is transferred to the customer. For aerospace contracts that involve airplane modifications based on customer specific requirements, we generally recognize revenue and income using the percent completion method because of continuous transfer of control to the customer. Revenue is generally recognized using the percent completion method based on the extent of progress towards completion of the performance obligation, which allows for recognition of revenue as work on a contract progresses. Our general contract term is between one to twelve months. 

 

Management performs detailed quarterly reviews of all of our significant long-term contracts. Based upon these reviews, we record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, we record a provision for the entire anticipated contract loss at that time.

 

Judgment and Uncertainties

 

The percent completion revenue recognition model requires that we estimate future revenues and costs over the life of a contract. Revenues are estimated based upon the original contract price, with consideration being given to exercised contract options, change orders and, in some cases, projected customer requirements. Contract costs may be incurred over a period of several months, and the estimation of these costs requires significant judgment based upon the acquired knowledge and experience of program managers, engineers and financial professionals. Estimated costs are based primarily on anticipated purchase contract terms, historical performance trends, business base and other economic projections.

 

 

Effect if Actual Results Differ From Assumptions

 

While we do not believe there is a reasonable likelihood there will be a material change in estimates or assumptions used to calculate our revenue contracts and costs, estimating the percentage of work complete on certain programs is a complex task. As a result, changes to these estimates could have a significant impact on our results of operations. These products and services are an important element in our continuing strategy to increase operating efficiencies and profitability as well as broaden our business base. Management continues to monitor and update program cost estimates quarterly for these contracts. A significant change in an estimate on one or more of these contracts could have a material effect on our financial position and results of operations.

 

Inventory Valuation

 

Methodology

 

We have four types of inventory (a) raw materials, (b) contracts in process, (c) other work in process and (d) finished goods. Raw material includes certain general stock materials but primarily relates to purchases that were made in anticipation of specific programs that have not been started as of the balance sheet date. Raw materials are stated at the lower of the cost of the inventory or its fair market value. Contracts in process, other work in process and finished goods are valued at production cost comprised of material, labor and overhead. Contracts in process, other work in process and finished goods are reported at the lower of cost or net realizable value.

 

Judgment and Uncertainties

 

The process for evaluating inventory obsolescence or market value often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be sold in the normal course of business. We adjust our inventory by the difference between the estimated market value and the actual cost of our inventory to arrive at net realizable value. Changes in estimates of future sales volume may necessitate future write-downs of inventory value.

 

Effect if Actual Results Differ From Assumptions

 

Management reviews the inventory balance on an annual basis to determine whether any additional write-downs are necessary. Following the write-down of the inventory as discussed above, we believe this inventory is stated at net realizable value at April 30 2024, although an unanticipated lack of demand for aircraft or spare parts in the future could result in additional write-downs of the inventory value. Overall, management believes that our inventory is appropriately valued at April 30, 2024.

 

Long-lived Assets

 

Methodology

 

The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses the recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. 

 

Judgment and Uncertainties

 

In years that management performs a qualitative assessment we consider the following qualitative factors: general economic conditions in the markets served by the segment, relevant industry-specific performance statistics, and forecasted results of operations.

 

For the quantitative impairment tests, management estimated the fair value of the long-lived asset group using an income methodology based on management's estimates of forecasted undiscounted cash flows over the estimated life of the assets. Changes in these estimates and assumptions could materially affect the results of our impairment testing.

 

An impairment loss is recognized for any excess of the carrying amount of the estimated undiscounted cash flows over the remaining life of the assets. No impairment charges were recorded in the fiscal year ended April 30, 2024.

 

Effect if Actual Results Differ From Assumptions

 

As with all assumptions, there is an inherent level of uncertainty and actual results, to the extent they differ from those assumptions, could have a material impact on fair value. For example, a reduction in customer demand would impact our assumed growth rate resulting in a reduced fair value. Potential events or circumstances could have a negative effect on the estimated fair value. The loss of a major customer or program could have a significant impact on the future cash flows associated with a long-lived asset group. We do not currently believe there to be a reasonable likelihood that actual results will vary materially from estimates and assumptions used to test our long-lived assets for impairment losses. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to additional impairment charges that could be material.

 

 

Item 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable. 

 

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The Financial Statements of the Registrant are set forth on pages 29 through 47 of this report.

 

Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

Item 9A.  CONTROLS AND PROCEDURES

 

Evaluation of disclosure controls and procedures

 

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

 

In connection with the preparation of this Form 10-K, our Chief Executive Officer and our Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of April 30, 2024. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of April 30, 2024.

 

Internal Control Over Financial Reporting

 

Management Report on Internal Control Over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal controls over financial reporting based on the framework in Internal Control - Integrated Framework issued by ("COSO"). Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of April 30, 2024.

 

 

Our internal control over financial reporting includes policies and procedures that (1) pertain to maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of Company assets that could have a material effect on the financial statements.

 

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting because it is not required for a smaller reporting company.

 

Limitations on Controls and Procedures

 

The effectiveness of any system of controls and procedures is subject to certain limitations, and, as a result, there can be no assurance that our controls and procedures will detect all errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system will be attained.

 

Changes in Internal Control Over Financial Reporting

 

There were no material changes in the Company internal controls over financial reporting during the three months ended April 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.

 

Item 9B.  OTHER INFORMATION

 

During the quarter ended April 30, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading agreement" or "non-Rule 10b5-1 trading agreement" as each term is defined in Item 408(a) of Regulation S-K. 

 

Item 9C.  DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

 

Not applicable 

 

 

PART III

 

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Information required by this Item 10 will be presented in the Company’s definitive proxy statement for its annual meeting of shareholders, to be filed with the SEC not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and is incorporated herein by reference. Certain information regarding executive officers of Butler National Corporation is included above in Part I of this Form 10-K under the caption “Executive Officers of the Registrant” pursuant to Instruction 3 to Item 401(b) of Regulation S-K and General Instruction G(3) of Form 10-K.

 

Item 11. EXECUTIVE COMPENSATION

 

Information required by this Item 11 regarding executive compensation will be presented in the Company’s definitive proxy statement for its annual meeting of shareholders, to be filed with the SEC not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and is incorporated herein by reference.

 

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table provides information about our common stock that may be issued under our equity compensation plan as of April 30, 2024.

 

Plan Category		Securities to be issued upon exercise of outstanding options and rights				Weighted average exercise price per share				Securities available for future issuance
Equity compensation plans approved by security holders			-				-				4,300,000
Equity compensation plans not approved by security holders			-				-				-
Total			-				-				4,300,000

 

Information regarding security ownership of certain beneficial owners and management and related stockholder matters will be presented in the Company’s definitive proxy statement for its annual meeting of stockholders to be filed with the SEC not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and is incorporated herein by reference.

 

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

Information required by this Item 13 regarding certain relationships, related party transactions and director independence will be presented in the Company’s definitive proxy statement for its annual meeting of shareholders, to be filed with the SEC not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and is incorporated herein by reference.

 

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Information required by this Item 14 regarding accounting fees and services will be presented in the Company’s definitive proxy statement for its annual meeting of stockholders, to be filed with the SEC not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and is incorporated herein by reference.

 

 

PART IV

 

Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

(a)	Documents Filed as Part of Form 10-K Report.

 

(1)	Financial Statements:
	Description			Page No.
	Report of Independent Registered Public Accounting Firm			29
	Consolidated Balance Sheets as of April 30, 2024 and 2023			31
	Consolidated Statements of Operations for the years ended April 30, 2024 and 2023			32
	Consolidated Statements of Stockholders' Equity for the years ended April 30, 2024 and 2023			33
	Consolidated Statements of Cash Flows for the years ended April 30, 2024 and 2023			34
	Notes to Consolidated Financial Statements			35

 

All other financial statements and schedules not listed have been omitted because the required information is inapplicable or the information is presented in the financial statements or related notes.

 

(2)	Exhibits Index:

 

No.		Description
3.1		Articles of Incorporation, as amended and restated, are incorporated by reference to Exhibit A of our Form DEF 14A filed on December 26, 2001 (File No. 000-01678).
3.2		Bylaws, as amended, are incorporated by reference to Exhibit 3.2 of our Form 10-Q for the period ended January 31, 2013 filed on March 12, 2013 (File No. 000-01678).
4.1		The Shareholder Rights Agreement between Butler National Corporation and UMB Bank, N.A. as Rights Agent, dated August 2, 2011, incorporated by reference to Exhibit 4.1 of the Company's registration statement on Form 8-A dated August 2, 2011, and as refiled as Exhibit 4.1 to the Company's Form 10-Q for the period ended October 31, 2016 (File No. 000-01678).
4.2		Amendment One to Rights Agreement between Butler National Corporation and UMB Bank, N.A. dated July 22, 2021, incorporated by reference to Exhibit 4.2 of our Form 8-K filed on July 26, 2021 (File No. 000-01678).
4.3		Description of Securities, incorporated by reference to Exhibit 4.3 of our Form 10-K filed on July 15, 2022 for the period ended April 30, 2022 (File No. 000-01678).
10.1		Separation and Mutual Release Agreement dated July 20, 2023 among the Company, Clark Stewart, and the other directors and executive officers of Buller National Corporation (incorporated by reference to Exhibit 10.1 of our Form 8-K dated July 26, 2023 (File No. 000-01678).
10.2		Employment Agreement between Butler National Corporation and Christopher J. Reedy dated February 4, 2020, incorporated by reference to Exhibit 10.2 of our Form 8-K, dated February 4, 2020 (File No. 000-01678).*
10.3		Separation and Mutual Release Agreement dated July 20, 2023 among the Company, Craig Stewart and the other directors and executive officers of Butler National Corporation (incorporated by reference to Exhibit 10.1 of our Form 8-K dated July 26, 2023 (File No. 000-01678).
10.4		Employment Agreement between Butler National Corporation and Tad M. McMahon dated February 4, 2020, incorporated by reference to Exhibit 10.4 of our Form 8-K, dated February 4, 2020 (File No. 000-01678).*
10.5		Employment Agreement between Butler National Corporation and Joe Aric Peters, dated February 4, 2020, incorporated by reference to Exhibit 10.1 of our 8-K dated June 15, 2022 (File No. 000-01678). *
10.6		First Amendment to Employment Agreement of Christopher J. Reedy dated October 4, 2023, incorporated by reference to Exhibit 10.1 of our 8-K dated October 5, 2023 (File No. 000-01678).
10.7		First Amendment to Employment Agreement of Tad M. McMahon dated October 4, 2023, incorporated by reference to Exhibit 10.2 of our 8-K dated October 5, 2023 (File No. 000-01678).
10.8		First Amendment to Employment Agreement of Joe A. Peters dated October 4, 2023, incorporated by reference to Exhibit 10.3 of our 8-K dated October 5, 2023 (File No. 000-01678).
10.9		Lottery Gaming Facility Management Contract between the State of Kansas and Butler National Service Corporation, approved by the Kansas Racing and Gaming Commission on December 8, 2008, incorporated by reference to Exhibit 10.6 of our Form 10-Q for the period ended July 31, 2012 (File No. 000-01678).

 

 

10.10		First Amendment to the Lottery Gaming Facility Management Contract between the State of Kansas and Butler National Service Corporation, dated December 29, 2009, incorporated by reference to Exhibit 10.7 of our Form 10-Q for the period ended July 31, 2012 (File No. 000-01678).
10.11		Renewal of Lottery Gaming Facility Management Contract between the State of Kansas, BNSC, and BHCMC effective December 15, 2019, incorporated by reference to Exhibit 10.1 of our Form 8-K dated December 9, 2019 (File No. 000-01678).
10.12		Third Amendment to the Lottery Gaming Facility Management Contract between the State of Kansas, BNSC, and BHCMC effective December 15, 2019, incorporated by reference to Exhibit 10.1 of our Form 8-K dated December 9, 2019 (File No. 000-01678).
10.13		Written Consent for Renewal of the Lottery Gaming Facility Management Contract between the State of Kansas, BNSC and BHCMC effective December 15, 2019, incorporated by reference to Exhibit 10.3 of our Form 8-K dated December 9, 2019 (File No. 000-01678).
10.14		Sports Wagering Management Contract between Butler National Service Corporation, BHCMC, LLC and the Kansas Lottery approved August 18, 2022, incorporated by reference to Exhibit 10.1 of our Form 8-K dated August 18, 2022 (File No. 000-01678).
10.15		Bill of Sale dated April 30, 2013, by and among Butler National Services, Inc. and Beadle Enterprises LLC, incorporated by reference to Exhibit 10.1 of our Form 8-K filed on May 2, 2013 (File No. 000-01678).
10.16		Promissory Note dated April 29, 2015, by and among BHCMC, L.L.C. and KS State Bank, incorporated by reference to Exhibit 10.23 of our Form 10-K filed on July 29, 2015 (File No. 000-01678).
10.17		Butler National Corporation 2016 Equity Incentive Plan, incorporated by reference to Exhibit A of the Company's Definitive Proxy Statement filed September 29, 2016 (File No. 000-01678).
10.18		Form of Registered Stock Agreement under the Butler National Corporation 2016 Equity Incentive Plan, incorporated by reference to Exhibit 10.1 of our Form 8-K filed on April 17, 2019 (File No. 000-01678).
10.19		Promissory Note dated February 27, 2019, by Butler National, Inc. and First Source Bank, incorporated by reference to Exhibit 10.18 of our Form 10-K filed on July 19, 2019 (File No. 000-16780).
10.20		Loan Agreement dated December 17, 2020 by BHCMC, L.L.C., BHCRE LLC, and Academy Bank, N.A., incorporated by reference to Exhibit 10.1 of our Form 10-Q filed on March 12, 2021 (File No. 000-16780).
10.21		Sale and Purchase Agreement for Preferred Membership Interest Units in BHCMC, L.L.C., dated September 13, 2021, incorporated by reference to Exhibit 10.1 of our Form 8-K filed on October 20, 2021.
10.22		Loan Modification Agreement dated October 18, 2021 between BHCMC, L.L.C. and Academy Bank N.A., incorporated by reference to Exhibit 10.2 of our Form 8-K filed on October 20, 2021.
14		Standards of Business Conduct and Ethics, incorporated by reference to Exhibit 14 of the Company's Form 8-K filed September 29, 2022. (File No. 000-01678).
21		List of Subsidiaries.
23.1		Consent of Independent Registered Public Accountants RBSM LLP.
31.1		Certificate furnished pursuant to 18 U.S.C 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certificate furnished pursuant to 18 U.S.C 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certifications of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certifications of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial information from the Company's Annual Report on Form 10-K for the year ended April 30, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language) includes; (i) Consolidated Balance Sheets as of April 30, 2024 and 2023; (ii) Consolidated Statements of Operations for the years ended April 30, 2024 and 2023; (iii) Consolidated Statements of Stockholders' Equity for the years ended April 30, 2024 and 2023; (iv) Consolidated Statements of Cash Flows for the years ended April 30, 2024 and 2023, and (v) the Notes to Consolidated Financial Statements, with detail tagging.
104		Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

 

* Relates to management contract, compensatory plan or arrangement.

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

July 23, 2024

 

BUTLER NATIONAL CORPORATION

 

/s/ Christopher J. Reedy
Christopher J. Reedy, President
and Chief Executive Officer

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated:

 

Signature	Title	Date
/s/ Christopher J. Reedy	President and Chief Executive Officer	July 23, 2024
Christopher J. Reedy	(Principal Executive Officer)
/s/ Tad M. McMahon	Chief Financial Officer and Secretary	July 23, 2024
Tad M. McMahon	(Principal Financial Officer and Principal Accounting Officer)
/s/ R. Warren Wagoner	Chairman of the Board and Director	July 23, 2024
R. Warren Wagoner
/s/ David B. Hayden	Director	July 23, 2024
David B. Hayden
/s/ John M. Edgar	Director	July 23, 2024
John M. Edgar
/s/ Joe Aric Peters	Director	July 23, 2024
Joe Aric Peters
/s/ Joseph P. Daly	Director	July 23, 2024
Joseph P. Daly
/s/ Jeffrey D. Yowell	Director	July 23, 2024
Jeffery D. Yowell

 

 

 

 

 

BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF April 30, 2024 and 2023

(in thousands, except per share data)

 

 

The accompanying notes are an integral part of these consolidated financial statements

 

 

 

BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED April 30, 2024 and 2023

(in thousands, except per share data)

 

 

The accompanying notes are an integral part of these consolidated financial statements 

 

 

 

BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED April 30, 2024 and 2023

(dollars in thousands)

 

 

 

The accompanying notes are an integral part of these consolidated financial statements. 

 

 

 

BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED April 30, 2024 and 2023

(dollars in thousands)

 

 

The accompanying notes are an integral part of these consolidated financial statements. 

 

 

BUTLER NATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

 

1.	NATURE OF OPERATIONS, ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying consolidated financial statements include the accounts of Butler National Corporation (BNC) and its wholly-owned active subsidiaries, Avcon Industries, Inc., Butler Machine, LLC, BCS Design, Inc., Butler National Service Corporation, Butler National Corporation-Tempe, Butler Avionics, Inc., Butler National, Inc., Butler Temporary Services, Inc., Kansas International Corporation, Kansas International DDC, LLC, and BHCMC, LLC (collectively, The Company). These consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. All amounts are in thousands, except share and par values, unless otherwise noted. All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year end of the Company is April 30.

 

Avcon Industries, Inc. modifies business category aircraft at its Newton, Kansas facility. Modifications can include passenger-to-freighter configuration, addition of aerial photography capability, ISR modifications, and stability enhancing modifications. Butler Machine, LLC is a provider of high quality precision machine parts. Butler Avionics, Inc. sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). Butler National, Inc. acquires airplanes, principally Learjets, to refurbish and sell. Butler Temporary Services, Inc. processes company payroll. Kansas International Corporation and Kansas International DDC, LLC own property. Butler National Corporation-Tempe is primarily engaged in the manufacture of electronics for weapon control systems used by the military. Butler National Service Corporation is a management consulting and administrative services firm providing business planning and financial coordination to Indian tribes interested in owning and operating casinos under the terms of the Indian Gaming Regulatory Act of 1988. BHCMC, LLC provides management services for the Boot Hill Casino under a management agreement with the State of Kansas. BCS Design, Inc. provided professional architectural services, and was closed in January 2024.

 

SIGNIFICANT ACCOUNTING POLICIES:

 

a) Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts is calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe adequate reserves are maintained.

 

b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets.

 

c) Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventories include material, labor and factory overhead required in the production of our products.

 

Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence, we consider inventory that has been inactive for five years or longer and the probability of using that inventory in future production. The obsolete inventory generally consists of Falcon and Learjet parts and electrical components. 

 

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d) Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. Depreciation expense was $4,110 for the year ended April 30, 2024 and $3,999 for the year ended April 30, 2023. Depreciation expense is included in cost of sales and general and administrative costs.   

 

Description	Estimated useful life
Building and improvements	39 years or the shorter of the estimated useful life of the asset or the underlying lease term
Aircraft	5 years
Machinery and equipment	5 years
Office furniture and fixtures	5 years
Leasehold improvements	Shorter of the estimated useful life of the asset or the underlying lease term

 

Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired are removed from the accounts and any resulting gains or losses are reflected as income or expense.

 

e) Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.

 

f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $7,215 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $128.  BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the initial Management Contract with the State of Kansas which will end in December 2024.  The State of Kansas approved a renewal management contract and an amendment to the current management contract for our professional services company BNSC via BHCMC. The renewal will take effect December 15, 2024, and continue until 2039, another 15 years. The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.  The JET intellectual property is fully amortized.  Amortization relating to other assets in the year ended  April 30, 2024 and 2023 was $751 and $715, respectively.

 

Other assets net values are as follows:

 

(dollars in thousands)		2024				2023
Privilege fee		$	5,500			$	5,500
Less amortized costs			5,218				4,795
Privilege fee balance		$	282			$	705
Intangible gaming equipment		$	7,215			$	6,646
Less amortized costs			6,406				6,078
Intangible gaming equipment balance		$	809			$	568
JET autopilot intellectual property		$	1,417			$	1,417
Less amortized costs			1,417				1,417
JET autopilot intellectual property balance		$	-			$	-

 

g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized over seven years. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Amortization relating to STC's in the year ended  April 30, 2024 and 2023 was $1,207 and $1,184, respectively. 

  

h) Revenue Recognition: ASC Topic 606, “Revenue from Contracts with Customers”

 

Under ASC 606, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration we expect to receive in exchange for those services. To achieve this core principal, the Company applies the following five steps:

 

1)    Identify the contract, or contracts, with a customer

 

A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration.

 

 

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2)    Identification of the performance obligations in the contract

 

At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer. Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.

 

3)    Determination of the transaction price

 

The transaction price is the amount that an entity allocates to the performance obligations identified in the contract and, therefore, represents the amount of revenue recognized as those performance obligations are satisfied. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.

 

4)    Allocation of the transaction price to the performance obligations in the contract

 

Once a contract and associated performance obligations have been identified and the transaction price has been determined, ASC 606 requires an entity to allocate the transaction price to each performance obligation identified. This is generally done in proportion to the standalone selling prices of each performance obligation (i.e., on a relative standalone selling price basis). As a result, any discount within the contract generally is allocated proportionally to all the separate performance obligations in the contract. The Company is applying the right to invoice practical expedient to recognize revenue. As a result, the entity bypasses the steps of determining the transaction price, allocating that transaction price and determining when to recognize revenue as it will recognize revenue as billed by multiplying the price assigned to the good or service, by the units.

 

5)  Recognition of revenue when, or as, we satisfy a performance obligation

 

Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers either over time or at a point in time. Revenue is recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services.

 

Aircraft modifications are performed under fixed-price contracts unless modified with a change order.  Significant payment terms are generally included in these contracts, requiring a 30% to 50% down payment on arrival of the aircraft and include milestone payments throughout the project.  Typically, contracts are less than one year in duration.  Revenue from fixed-priced contracts is recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor.  Direct labor best represents the progress on a contract as it directly correlates to the overall progress on the work to be performed.

 

Revenue from Aircraft Avionics and Special Mission Electronics are recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment.

 

Regarding warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion, any future warranty work would not be material to the consolidated financial statements.

 

Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the value of jackpots increase. Effective September 1, 2022, sports wagering became legal in the State of Kansas. The company is currently managing sports wagering through DraftKings sports wagering platform. The Company shares a percentage of the gross sports wagering win with its platform partner. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered. Food, beverage, and other revenue is recorded when the service is received and paid.

 

i) Fair Value Measurements: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:

 

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

 

Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings.

 

Level 3 - Unobservable inputs that are supported by little or no market activities.

 

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The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

 

For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, marketable securities, notes payable,  and accounts payable, the carrying amounts approximate fair value.  We do not have financial assets and liabilities that are measured at fair value on a recurring basis.  Other financial assets and liabilities are carried at cost with fair value disclosed, if required.

 

We measure certain other instruments, including stock-based compensation awards settled in the stock also at fair value. The determination of fair value involves the use of appropriate valuation methods and relevant inputs into valuation models.

 

j) Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot.

 

k) Gaming Facility Mandated Payment: Boot Hill Casino is contractually obligated to pay its proportionate share of certain expenses incurred by the Kansas Lottery Commission and the Kansas Racing and Gaming Commission, which amounted to $2,436 and $2,224 in the fiscal year ended April 30, 2024 and 2023, respectively.

 

l) Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as contract liability in current liabilities.

 

m) Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year.

 

The computation of the Company basic and diluted earnings per common share is as follows:

 

(in thousands, except share and per share data)		2024				2023
Net income attributable to Butler National Corporation		$	12,512			$	4,516
Weighted average common shares outstanding			70,435,752				76,456,631
Dilutive effect of non-qualified stock option plans			-				-
Weighted average common shares outstanding, assuming dilution			70,435,752				76,456,631
Potential common shares if all options were exercised and shares issued			70,435,752				76,456,631
Basic earnings per common share		$	0.18			$	0.06
Diluted earnings per common share		$	0.18			$	0.06

 

 

n) Stock-based Compensation: The Company accounts for stock-based compensation under ASC 718, "Accounting for Stock-Based Compensation." These standards define a fair value based method of accounting for stock-based compensation. The cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Black-Scholes option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. For Restricted Stock, fair value is based on the closing price of our common stock on the grant date. Compensation expenses, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period. The requisite service period of the awards is generally the same as the vesting period. 

 

o) Income Taxes: The Company utilizes ASC 740, Accounting for Income Taxes. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize. 

 

We recognize the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50% likely to be realized upon settlement with the taxing authority. To the extent the assessment of such tax position changes, such difference will affect the provision for (benefit from) income taxes in the period in which we make the determination. We recognize interest accrued and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes.

 

p) Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2024 and 2023, we had $1,955 and $17,021, respectively in bank deposits that exceeded the federally insured limits.

 

q) Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. Our financial instruments that are exposed to concentration of credit risk consist primarily of cash and trade receivables. Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2024 or 2023.

 

r) Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2024 and 2023 was $823 and $1,065 respectively.

 

s) Advertising Costs: Advertising costs include production costs of print, radio, television and other advertisements and are expensed as incurred.  Advertising costs were $4,044 and $4,231 in the fiscal year ended April 30, 2024 and 2023, respectively.

 

t) Segment Information: We operate in two operating segments, aerospace products and professional services. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. Our CODM allocates resources and assesses performance based upon discrete financial information at the segment level. For fiscal 2024, our chief executive officer and chief financial officer together served as CODM for purposes of segment reporting.

 

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u) Business Combinations: We allocate the purchase consideration of acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess recorded to goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations.

 

In the event that we acquire a company in which we previously held an equity interest, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the equity investment is recorded as a non-cash gain or loss and recorded within Other income (expense), net on the Consolidated Statements of Operations.

 

v) Acquisition-Related Intangible Assets: Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events.

 

w) Treasury Stock: Treasury stock is accounted for using the cost method and recorded as a reduction to Stockholders’ equity on the Consolidated Balance Sheets. Incremental direct costs to purchase treasury stock are included in the cost of the shares acquired.

 

To determine the cost of treasury stock that is either sold or re-issued, we use the first in, first out method. When treasury stock is re-issued at a price higher than its cost, the increase is recorded in Additional paid-in capital on the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the decrease is recorded in Additional paid-in capital to the extent that there are previously recorded increases to offset the decrease. Any decreases in excess of that amount are recorded in Accumulated deficit on the Consolidated Financial statements.

 

x) Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard.

 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, and allows for adoption on a prospective basis, with a retrospective option. We are currently evaluating the impacts of the new standard.

 

Other standards issued by the FASB or SEC had no material impact on our future financial reporting.

 

y) Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations.

 

 

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2.	DISAGGREGATION OF REVENUE:

 

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

 

		Year Ended April 30, 2024
		Professional Services				Aerospace Products				Total
Geographical Markets
North America		$	38,640			$	26,429			$	65,069
Europe			-				8,161				8,161
Middle East			-				1,606				1,606
Asia and Other			-				3,540				3,540
		$	38,640			$	39,736			$	78,376
Major Product Lines
Casino Gaming Revenue		$	29,441			$	-			$	29,441
Sportsbook Revenue			4,585				-				4,585
Casino Non-Gaming Revenue			4,551				-				4,551
Other Professional Services			63				-				63
Aircraft Modification			-				25,061				25,061
Aircraft Avionics			-				2,722				2,722
Special Mission Electronics			-				11,953				11,953
		$	38,640			$	39,736			$	78,376
Contract Types / Revenue Recognition Timing
Percentage of completion contracts		$	-			$	22,570			$	22,570
Goods or services transferred at a point of sale			38,640				17,166				55,806
		$	38,640			$	39,736			$	78,376

 

		Year Ended April 30, 2023
		Professional Services				Aerospace Products				Total
Geographical Markets
North America		$	38,041			$	30,503			$	68,544
Europe			-				1,095				1,095
Middle East			-				4,614				4,614
Asia and Other			-				929				929
		$	38,041			$	37,141			$	75,182
Major Product Lines
Casino Gaming Revenue		$	30,564			$	-			$	30,564
Sportsbook Revenue			2,738				-				2,738
Casino Non-Gaming Revenue			4,456				-				4,456
Other Professional Services			283				-				283
Aircraft Modification			-				24,016				24,016
Aircraft Avionics			-				2,324				2,324
Special Mission Electronics			-				10,801				10,801
		$	38,041			$	37,141			$	75,182
Contract Types / Revenue Recognition Timing
Percentage of completion contracts		$	-			$	22,500			$	22,500
Goods or services transferred at a point of sale			38,041				14,641				52,682
		$	38,041			$	37,141			$	75,182

 

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3.	ACCOUNTS RECEIVABLE, NET, CONTRACT ASSET AND CONTRACT LIABILITY:

 

Accounts Receivables, net, contract asset and contract liability were as follows (in thousands):

 

		2024				2023
Accounts Receivable, net		$	5,776			$	3,793
Contract Asset			3,812				1,893
Contract Liability			5,922				6,031

 

Accounts Receivables, net consist of $5,776 and $3,793 from customers as of  April 30, 2024 and 2023 respectively. At  April 30, 2024, and 2023, the allowance for doubtful accounts was $47 and $205, respectively.

Contract assets are net of progress payments and performance-based payments from our customers as well as advance payments from customers totaling $3,812 and $1,893 as of  April 30, 2024 and 2023. Contract assets increased $1,919 during 2024, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during 2024 for which we have not yet billed our customers. There were no significant impairment losses related to our contract assets during 2024 and 2023. We expect to bill our customers for the majority of the April 30, 2024 contract assets during fiscal year end 2025.

Contract liabilities decreased $109 during 2024, primarily due to payments received in excess of revenue recognized on these performance obligations. During 2024, we recognized $4,323 of our contract liabilities at April 30, 2023 as revenue. During 2023, we recognized $820 of our contract liabilities at April 30, 2022, as revenue.

 

4.

INVENTORY

 

Inventory is comprised of the following, net of the estimate for obsolete inventory of $360 at April 30, 2024 and $275 at April 30, 2023.

 

		2024				2023
Parts and raw material		$	6,111			$	5,704
Work in process			3,349				3,194
Finished goods			62				49
Total Inventory, net of allowance		$	9,522			$	8,947

 

5.	PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment is comprised of the following:

 

		2024				2023
Land		$	4,224			$	4,751
Building and improvements			48,190				47,867
Aircraft			5,599				8,515
Machinery and equipment			7,484				5,547
Office furniture and fixtures			14,389				13,881
Leasehold improvements			4,032				4,032
			83,918				84,593
Accumulated depreciation			(24,331	)			(25,526	)
Total property, plant and equipment		$	59,587			$	59,067

 

 

 

 

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6.

DEBT:

 

Principal amounts of debt at April 30, 2024 and 2023, consist of the following (in thousands):

 

Promissory Notes		2024				2023
Bank line of credit, available LOC $2.0 million interest at 8.4% due on demand, secured by a first and second position on all assets of the Company.			-				-
		$	-			$	-
Long-Term Debt
Note payable, interest at 6.25%. This note was paid in full in May 2023.		$	-			$	158
Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75% due March 2029, secured by buildings and improvements with a net book value of $680.			787				946
Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75%. This note was paid in full in March 2024.			-				434
Note payable, interest at 5.32%, this note matures in December 2027, with a balloon payment of $19,250, secured by all of BHCMC's assets and compensation due under the State Management Contract.			29,167				30,916
Note payable, interest at 5.75%, this note matures October 2026, secured by all of BHCMC's assets and compensation due under the State Management Contract.			7,471				10,173
Note payable, interest at 4.35%, due March 2029, secured by Aircraft Security Agreements with a net book value of $701.			887				1,046
Note payable, interest at 8.13%, due October 2025, secured by equipment with a net book value of $31.			34				44
			38,346				43,717
Less: Origination fees			236				312
			38,110				43,405
Less: Current maturities			4,866				4,987
		$	33,244			$	38,418

  

Maturities of long-term debt are as follows:

 

 

Year Ending April 30		Amount
2025		$	4,948
2026			4,939
2027			3,866
2028			2,099
2029			2,077
Thereafter			20,417
		$	38,346

 

Financial and Other Covenants

 

We are compliant with the covenants and obligations of each of our notes at April 30, 2024. 

 

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7.	LEASE RIGHT-TO-USE:

 

The Company accounts for its leases under ASU 2016-02 Leases – Topic 842. ASU 2016-02 requires that on the balance sheet a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.

 

We lease the hangar and office space with initial lease terms of two, five, and fifty years.

 

 

		April 30, 2024				April 30, 2023
Finance lease right-to-use assets		$	3,781			$	3,781
Less accumulated depreciation			889				700
Total		$	2,892			$	3,081

 

 

Future minimum lease payments for assets under capital leases at April 30, 2024 are as follows:

 

2025		$	139
2026			116
2027			118
2028			120
2029			123
Thereafter			12,705
Total minimum lease payments			13,321
Less amount representing interest			9,923
Present value of net minimum lease payments			3,398
Less current maturities of finance lease liability			25
Finance lease liability, net of current maturities		$	3,373

 

		April 30, 2024				April 30, 2023
Finance lease cost:
Amortization of right-of-use assets			$ 189				$ 188
Interest on lease liabilities			186				188
Total finance lease cost			$ 375				$ 376
		April 30, 2024				April 30, 2023
Weighted average remaining lease term - Financing leases		44 years				43 years
Weighted average discount rate - Financing leases			5.8%				5.8%

 

8.	ACQUISITION:

 

In September 2023, the Company acquired KC Machine to help expand our Avcon parts fabrication capacity for $2,860. KC Machine is a recognized provider of high quality precision machine parts. The purchase price was paid by a combination of $2,375 in cash, a $300 earned-out liability that was paid in March 2024, and a final escrow liability due September 2024. The present value of the escrow liability due in  September is included in accounts payable at April 30, 2024.

 

The following table summarizes the purchase price and accounting for this transaction:   

 

Purchase price summary:
Cash paid at closing		$	2,375
Present value of final escrow liability			228
Present value of earn-out liability			257
		$	2,860
Accounting summary:
Building		$	1,510
Equipment			930
Intangibles			205
Inventory			230
Other			(15	)
		$	2,860

 

 

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9.	INCOME TAXES:

 

Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of April 30, 2024 and 2023 are as follows (in thousands):

 

 

	April 30, 2024			April 30, 2023
Deferred tax liabilities:
Deferred compensation, restricted stock	$	(7	)	$	(166	)
Total deferred tax liabilities		(7	)		(166	)
Deferred tax assets:
Depreciation and amortization		98			325
Research and development		1,319			738
Accounts receivable allowance		13			55
Inventory and other allowances		97			74
Lease right-to-use		144			114
Compensation accruals		72			156
Jackpot reserves		183			177
Total deferred tax assets		1,926			1,639
Less valuation allowance		-			-
Net deferred tax asset	$	1,919		$	1,473

 

The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:

 

		April 30, 2024				April 30, 2023
Statutory federal income tax rate expense			21.00	%			21.00	%
State income tax, net of federal benefits			5.97	%			5.90	%
Permanent tax			0.63	%			2.19	%
Other			-2.28	%			1.72	%
			25.32	%			30.81	%
Income tax expense:
Deferred income tax (benefit)		$	(446	)		$	297
Current income tax			4,690				1,714
Total income tax expense		$	4,244			$	2,011

 

Current income tax expense of $4,690 and $1,714 are comprised of $3,438 and $1,238 in federal income tax and $1,252 and $476 in state income tax for the years ended April 30, 2024 and 2023, respectively.

 

The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its financial condition, results of operations or cashflow. Therefore, no reserve for uncertain income tax position, interest or penalties, have been recorded. 

 

The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. Federal tax examinations for tax years beginning on May 1, 2020 and prior. There are no current tax examinations.

 

10.	STOCKHOLDERS' EQUITY:

 

Common Stock Transactions

 

During the year ended  April 30, 2024, the Company granted a board member 300,000 shares, valued at $222, under the Butler National Corporation 2016 Equity Incentive Plan.

 

During the year ended  April 30, 2023, we issued 997,639 shares valued at $783 as the contribution to the Company 401(k) profit sharing plan.  In addition, the Company granted a board member 400,000 shares, valued at $352, under the Butler National Corporation 2016 Equity Incentive Plan.

 

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11.	STOCK OPTIONS AND INCENTIVE PLANS:

  

In November 2016, the shareholders approved and adopted the Butler National Corporation 2016 Equity Incentive Plan. The maximum number of shares of common stock that may be issued under the Plan is 12.5 million.

 

On April 12, 2019, the Company granted 2.5 million restricted shares to employees. In April 2024, 1,650,000 of those shares became fully vested and non-forfeitable. The remaining 850,000 shares were forfeited. On March 17, 2020, the Company granted 5.0 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested and non-forfeitable on March 16, 2025. The restricted shares were valued at $0.41 per share, for a total of $2.0 million. The deferred compensation related to these grants will be expensed on the financial statements over the five-year vesting period. 

 

In July 2022, the Company granted a board member 400,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant.  These shares were valued at $0.88 per share, for a total of $352.  The compensation related to this grant was expensed in the year ended April 30, 2023. 

 

In October 2023, the Company granted a board member 300,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant. These shares were valued at $0.74, for a total of $222.  The compensation related to this grant was expensed in the year ended April 30, 2024.

 

No other equity awards have been made under the plan. During the year ended April 30, 2024, 1,525,000 shares were forfeited. During the year ended April 30, 2023, 875,000 shares were forfeited. At April 30, 2024, total compensation cost related to nonvested awards not recognized was $251, and the weighted average period over which it is expected to be recognized is less than one year.

 

During the year ended April 30, 2024 the Company expensed $634 and received a benefit of $427 from the forfeiture of shares for a net expense of $207.  For the year ended April 30, 2023, the Company expensed $915 and received a benefit of $206 from the forfeiture of shares for a net expense of $709.

 

		Number of Shares				Weighted Average Grant Date Fair Value
Total shares issued (2019 - 2024)			8,200,000			$	0.43
Forfeited, in prior periods			(100,000	)		$	0.40
Forfeited during the year ended April 30, 2023			(875,000	)		$	0.40
Forfeited during the year ended April 30, 2024			(1,525,000	)		$	0.40
Total			5,700,000			$	0.45
Vested shares			2,350,000			$	0.56
Non-vested shares			3,350,000			$	0.41

 

12.	STOCK REPURCHASE PROGRAM:

 

In December 2016, the Board of Directors approved a common stock repurchase program. The program was established for the purpose of enabling Butler National Corporation (BNC) to flexibly repurchase its own shares in consideration of factors such as opportunities for strategic investment, BNC's financial condition and the price of its common stock as part of improving capital efficiency. In July 2023, the Board of Directors approved an increase in the size of the Company's common stock repurchase program from $4 million to $9 million. The program is currently authorized through July 31, 2025. The total remaining authorization for future common stock repurchases under our share repurchase program was $2.5 million as of April 30, 2024.

 

The table below provides information with respect to common stock purchases by the Company during the year ended April 30, 2024.

 

Period		Total Number of Shares Purchased				Average Price Paid per Share				Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs				Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
Shares purchased in prior periods			3,290,426			$	0.41				3,290,426			$	2,655
Quarter ended July 31, 2022 (a)			1,639			$	0.84				1,639			$	2,653
Quarter ended October 31, 2022 (a)			150			$	0.70				150			$	2,653
Quarter ended January 31, 2023 (a)			85,307			$	0.68				85,307			$	2,595
Quarter ended April 30, 2023 (a)			2,000			$	0.68				2,000			$	2,594
Increase in program authorization July 2023			-			$	-				-			$	7,594
Quarter ended July 31, 2023 (a)			6,863,789			$	0.73				6,863,789			$	2,560
Quarter ended October 31, 2023 (a)			2,300			$	0.73				2,300			$	2,558
Quarter ended January 31, 2024 (a)			24,744			$	0.73				24,744			$	2,540
Quarter ended April 30, 2024 (a)			5,000			$	0.79				5,000			$	2,536
Total			10,275,355			$	0.63				10,275,355

 

(a)

These shares of common stock purchased were purchased through private transactions.

 

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13.	COMMITMENTS AND CONTINGENCIES:

 

Litigation:

 

From time to time, we may be a defendant and/or plaintiff in various other legal proceedings arising in the normal course of our business. We are not currently a party to any material legal proceedings or government actions, including any bankruptcy, receivership, or similar proceedings. In addition, we are not aware of any known litigation or liabilities involving the operators of our properties that could affect our operations. Furthermore, as of July 23, 2024, our management is not aware of any proceedings to which any of our directors, officers, or affiliates, or any associate of any such director, officer, affiliate, or security holder is a party averse to our company or has a material interest averse to us. 

 

14.	RELATED-PARTY TRANSACTIONS:

 

The Company paid consulting fees of $135 and $135 to David Hayden, a director of Butler National Corporation in fiscal year ended April 30, 2024 and 2023 respectively.

 

The Company paid Edgar Law Firm, LLC, owned by John M. Edgar, a director of Butler National Corporation $73 and $113 in fiscal year ended  April 30, 2024 and 2023 respectively.

 

Included in accrued liabilities are $0 and $244 as of April 30, 2024 and 2023, respectively, for amounts owed to Clark D. Stewart, former director and CEO, for accrued compensation.

 

On January 20, 2023, the board of directors voted to terminate Craig D. Stewart. This resulted in the forfeiture of 800,000 shares of Company common stock in fiscal 2023. On May 9, 2023, the employment of Clark D. Stewart with the Company was terminated by Mr. Stewart for good reason.  This resulted in the forfeiture of 1.1 million shares of Company common stock in fiscal 2024.  

 

Clark D. Stewart and Craig D. Stewart each entered into a Separation and Mutual Release Agreement with the Company, each of the directors, and with the Company's executive officers dated July 20, 2023.  Pursuant to the Agreements, in consideration of a mutual general release of claims, Clark D. Stewart and Craig D. Stewart were each paid a lump sum severance benefit, which totaled $2.7 million for Clark D. Stewart and $1.8 million for Craig D. Stewart, and in addition, the Company purchased 3,956,267 shares of Company stock from Clark D. Stewart and 1,933,402 shares of Company stock from Craig D. Stewart at $0.739 per share. The stock acquired was placed in treasury.

 

There were three related-person transactions under the relevant standards: Butler National Corporation employed the brother (Wayne Stewart as an engineer), son (Craig Stewart as a Vice President) and son-in-law (Jeff Shinkle as an architect) of Clark D. Stewart, former director and CEO. Compensation for these related-persons was calculated in the same manner as the Summary Compensation table shown in the most recent Proxy Statement resulting in compensation of $315, $0 and $162 respectively, for fiscal 2024 and $303, $331 and $254, respectively, for fiscal 2023.

 

The policies and procedures for payment of goods and services for related transactions follow our normal course of business standards and require the necessary review and approval process as outlined in our Policies and Procedures manual and as set forth by our Compensation Committee.

 

15.	401(k) PROFIT SHARING PLAN:

 

We have a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees with at least thirty days of service are eligible to participate in the plan; however, there are only two entry dates per calendar year. The Plan may match, subject to the annual approval of the Board of Directors, 100 percent of every pre-tax dollar an employee contributes up to 6 percent of the employee's salary, and a portion of the Company’s profits. Employees are 100 percent vested in the employer's contributions immediately. Our matching contribution, as approved by the Board of Directors was paid in cash in the year ended April 30, 2024 and was paid in common stock of the Company in the year ended April 30, 2023.  The stock contribution amount was valued at a weekly weighted average market price of the stock contributed in fiscal year 2023. The contribution expense was $750 and $783 in fiscal year ended April 30, 2024 and 2023, respectively. 

 

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.

 

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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") provides management services to the Boot Hill Casino, a "state-owned casino".

 

Year Ended April 30, 2024		Gaming				Aircraft Modification				Aircraft Avionics				Special Mission Electronics				Other				Total
Revenues from customers		$	38,577			$	25,061			$	2,722			$	11,953			$	63			$	78,376
Interest expense			2,122				229				-				63				33				2,447
Depreciation and amortization			3,014				2,790				20				125				119				6,068

 

Year Ended April 30, 2023		Gaming				Aircraft Modification				Aircraft Avionics				Special Mission Electronics				Other				Total
Revenues from customers		$	37,758			$	24,016			$	2,324			$	10,801			$	283			$	75,182
Interest expense			2,419				251				-				47				26				2,743
Depreciation and amortization			2,742				2,718				11				145				282				5,898

 

Our Chief Operating Decision Maker (CODM) uses the segment 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:

 

		2024				2023
Aerospace Products – one customer in 2024 and 2023			15.2	%			14.3	%
Professional Services			-				-

 

In fiscal 2024 the Company derived 28.5% of total revenue from five Aerospace customers. The top customer provided 15.2% of total revenue while the next top four customers ranged from 1.9% to 5.8%. At April 30, 2024, we had one customer that accounted for 42.5% of our accounts receivable.

 

17.	SUBSEQUENT EVENTS:

 

The Company evaluated its April 30, 2024, consolidated financial statements for subsequent events through July 23, 2024, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the consolidated financial statements. 

 

Exhibit 21 

 

Subsidiaries

 

Avcon Industries, Inc., a Kansas Corporation

 

Avcon ISR Solutions, Inc., a Kansas Corporation

 

Avcon Leasing Inc., a Kansas Corporation

 

BCS Design, Inc., a Kansas Corporation

 

Butler Avionics, Inc., a Kansas Corporation

 

Butler National, Inc., a Nevada Corporation

 

Butler Temporary Services, Inc., a Kansas Corporation

 

Butler National Corporation, a Nebraska Corporation

 

Kansas International Corporation, a Kansas Corporation

 

Kansas International DDC, LLC, a Kansas Limited Liability Company

 

Butler National Service Corporation, a Kansas Corporation

 

Indian Gaming Services, Inc., a Kansas Corporation

 

BHCMC, LLC, a Kansas Limited Liability Company

 

BHCRRE, LLC, a Kansas Limited Liability Company

 

Butler Machine, LLC a Missouri Limited Liability Company

Exhibit 23.1 

 

Consent of Independent Registered Public Accountants

 

We consent to the incorporation by reference in the Form S-8 Registration Statements, (File Numbers, 333-219417, 033-65256, 033-65254, 033-65890, 333-07735, 333-46791, 333-46795, 333-46797, and 333-46809) of our report dated July 23, 2024 with respect to the consolidated financial statements of Butler National Corporation included in the Annual Report (Form 10-K) for the year ended April 30, 2024.

 

/s/ RBSM, LLP

Las Vegas, NV

July 23, 2024

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Christopher J. Reedy, certify that:

 

1.	I have reviewed this report for the year ended April 30, 2024 on Form 10-K of Butler National Corporation.

 

2.	Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

 

Date: July 23, 2024	/s/Christopher J. Reedy
	Christopher J. Reedy
	President and Chief Executive Officer

 

Exhibit 31.2

 

 

CERTIFICATIONS

 

I, Tad M. McMahon, certify that:

 

1.	I have reviewed this report for the year ended April 30, 2024 on Form 10-K of Butler National Corporation.

 

2.	Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

 

Date: July 23, 2024	/s/ Tad M. McMahon
	Tad M. McMahon
	Chief Financial Officer

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the annual report of Butler National Corporation (the "Company") on Form 10-K for the period ending April 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Christopher J. Reedy, Chief Executive Officer of the Company, certify, (to the best of my knowledge), pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002 that;

 

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

 

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

	/s/Christopher J. Reedy
	Christopher J. Reedy
	President and Chief Executive Officer
	Butler National Corporation
	July 23, 2024

 

"A signed original of this written statement required by Section 906 has been provided to Butler National Corporation and will be retained by Butler National Corporation and furnished to the Securities and Exchange Commission or its staff upon request."

 

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the annual report of Butler National Corporation (the "Company") on Form 10-K for the period ending April 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Tad M. McMahon, Chief Financial Officer of the Company, certify, (to the best of my knowledge), pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002 that;

 

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

 

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

	/s/ Tad M. McMahon
	Tad M. McMahon
	Chief Financial Officer
	Butler National Corporation
	July 23, 2024

 

"A signed original of this written statement required by Section 906 has been provided to Butler National Corporation and will be retained by Butler National Corporation and furnished to the Securities and Exchange Commission or its staff upon request."

 

 

v3.24.2

Document And Entity Information - USD ($)	12 Months Ended
	Apr. 30, 2024	Jul. 23, 2024	Oct. 31, 2023
Document Information [Line Items]
Entity Central Index Key	0000015847
Entity Registrant Name	BUTLER NATIONAL CORP
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Document Type	10-K
Document Annual Report	true
Document Period End Date	Apr. 30, 2024
Document Transition Report	false
Entity File Number	0-1678
Entity Incorporation, State or Country Code	KS
Entity Tax Identification Number	41-0834293
Entity Address, Address Line One	One Aero Plaza
Entity Address, City or Town	New Century
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66031
City Area Code	913
Local Phone Number	780-9595
Title of 12(g) Security	Common Stock $.01 Par Value
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Document Financial Statement Error Correction [Flag]	false
Entity Public Float			$ 39,408,269
Entity Common Stock, Shares Outstanding		68,770,856
Auditor Name	RBSM LLP
Auditor Location	Las Vegas, NV
Auditor Firm ID	587

v3.24.2

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
CURRENT ASSETS:
Cash	$ 17,792	$ 21,997
Accounts receivable, net	5,776	3,793
Inventory, net	9,522	8,947
Contract asset	3,812	1,893
Prepaid expenses and other current assets	1,694	3,532
Total current assets	38,596	40,162
LEASE RIGHT-TO-USE ASSET, net	2,892	3,081
PROPERTY, PLANT AND EQUIPMENT, net	59,587	59,067
SUPPLEMENTAL TYPE CERTIFICATES (net of accumulated amortization of $11,810 at April 30, 2024 and $10,603 at April 30, 2023)	9,762	8,722
OTHER ASSETS:
Other assets (net of accumulated amortization of $13,041 at April 30, 2024 and $12,290 at April 30, 2023)	1,219	1,401
Deferred tax asset, net	1,919	1,473
Total other assets	3,138	2,874
Total assets	113,975	113,906
CURRENT LIABILITIES:
Accounts payable	5,291	5,320
Current maturities of long-term debt	4,866	4,987
Current maturities of lease liability	25	145
Contract liability	5,922	6,031
Gaming facility mandated payment	1,846	1,730
Compensation and compensated absences	1,932	6,722
Income tax payable	2,842	228
Other current liabilities	193	214
Total current liabilities	22,917	25,377
Long-term debt, net of current maturities	33,244	38,418
Lease liability, net of current maturities	3,373	3,330
Total long-term liabilities	36,617	41,748
Total liabilities	59,534	67,125
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, par value $.01: Authorized 100,000,000 shares, issued 79,646,211 shares, and outstanding 68,770,856 shares at April 30, 2024 and issued 80,871,211 shares, and outstanding 76,891,689 shares at April 30, 2023	796	808
Capital contributed in excess of par	13,866	13,647
Treasury stock at cost, 10,875,355 shares at April 30, 2024 and 3,979,522 shares at April 30, 2023	(7,197)	(2,138)
Retained earnings	46,976	34,464
Total stockholders' equity	54,441	46,781
Total liabilities and stockholders' equity	113,975	113,906
Preferred Class A [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, class B	0	0
Preferred Class B [Member]
STOCKHOLDERS' EQUITY:
Preferred stock, class B	$ 0	$ 0

v3.24.2

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Supplemental type certificates, accumulated amortization	$ 11,810	$ 10,603
Other assets, accumulated amortization	$ 13,041	$ 12,290
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	79,646,211	80,871,211
Common stock, outstanding (in shares)	68,770,856	76,891,689
Treasury stock, shares (in shares)	10,875,355	3,979,522
Preferred Class A [Member]
Preferred stock, stated value (in dollars per share)	$ 100	$ 100
Preferred stock, dividend rate	9.80%	9.80%
Preferred stock, liquidation value	$ 100	$ 100
Preferred stock, redemption value	$ 100	$ 100
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, designated classes (in shares)	200,000	200,000
Preferred Class B [Member]
Preferred stock, stated value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, dividend rate	6.00%	6.00%
Preferred stock, liquidation value	$ 1,000	$ 1,000
Preferred stock, redemption value	$ 1,000	$ 1,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, designated classes (in shares)	200,000	200,000

v3.24.2

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
REVENUES:
Revenues	$ 78,376	$ 75,182
COSTS AND EXPENSES:
Marketing and advertising	5,009	5,426
General, administrative and other	15,656	19,799
Total costs and expenses	65,137	66,528
OPERATING INCOME	13,239	8,654
OTHER INCOME (EXPENSE):
Interest expense	(2,447)	(2,743)
Interest income	305	0
Gain on sale of airplanes	4,169	410
Gain on sale of land and buildings	1,490	69
Other	0	137
Total other income (expense)	3,517	(2,127)
INCOME BEFORE INCOME TAXES	16,756	6,527
PROVISION FOR INCOME TAXES
Provision for income taxes	4,690	1,714
Deferred income tax (benefit)	(446)	297
NET INCOME	$ 12,512	$ 4,516
BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION (in dollars per share)	$ 0.18	$ 0.06
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	70,435,752	76,456,631
DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO BUTLER NATIONAL CORPORATION (in dollars per share)	$ 0.18	$ 0.06
WEIGHTED AVERAGE SHARES USED IN PER SHARE CALCULATION (in shares)	70,435,752	76,456,631
Professional Services [Member]
REVENUES:
Revenues	$ 38,640	$ 38,041
COSTS AND EXPENSES:
Cost of services and products	15,761	15,449
Aerospace Products [Member]
REVENUES:
Revenues	39,736	37,141
COSTS AND EXPENSES:
Cost of services and products	$ 28,711	$ 25,854

v3.24.2

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Parent [Member]	Total
Balance (in shares) at Apr. 30, 2022	80,348,572		3,890,426
Balance at Apr. 30, 2022	$ 803	$ 12,160	$ (2,077)	$ 29,948	$ 40,834
Issuance of stock to benefit plan (in shares)	997,639		0			997,639
Issuance of stock to benefit plan	$ 9	774	$ 0	0	783	$ 783
Stock repurchase	$ 0	0	$ (61)	0	(61)
Stock repurchase (in shares)			89,096
Stock award to director (in shares)	400,000		0
Stock award to director	$ 4	348	$ 0	0	352
Deferred compensation, restricted stock (in shares)	(875,000)		0
Deferred compensation, restricted stock	$ (8)	365	$ 0	0	357
Net Income	0	0	0	4,516	4,516	4,516
Deferred compensation, restricted stock	$ 8	(365)	$ (0)	(0)	(357)
Balance (in shares) at Apr. 30, 2023	80,871,211		3,979,522
Balance at Apr. 30, 2023	$ 808	13,647	$ (2,138)	34,464	46,781	46,781
Stock repurchase	$ 0	0	$ (5,059)	0	(5,059)
Stock repurchase (in shares)			6,895,833
Stock award to director (in shares)	300,000		0
Stock award to director	$ 3	219	$ 0	0	222
Deferred compensation, restricted stock (in shares)	(1,525,000)		0
Deferred compensation, restricted stock	$ 15	0	$ 0	0	15
Net Income	0	0	0	12,512	12,512	12,512
Deferred compensation, restricted stock	$ (15)	0	$ 0	0	(15)
Balance (in shares) at Apr. 30, 2024	79,646,211		10,875,355
Balance at Apr. 30, 2024	$ 796	$ 13,866	$ (7,197)	$ 46,976	$ 54,441	$ 54,441

v3.24.2

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 12,512	$ 4,516
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,068	5,898
Stock issued for benefit plan	0	783
Stock awarded to director	222	352
Deferred income tax expense (benefit)	(446)	297
Gain on sale of airplanes	(4,169)	(410)
Gain on sale of land and buildings	(1,490)	(69)
Deferred compensation, restricted stock	(15)	357
Changes in operating assets and liabilities:
Accounts receivable	(1,983)	(157)
Inventory	(1,047)	(75)
Contract asset	(1,919)	(423)
Prepaid expenses and other assets	1,838	(2,171)
Accounts payable	(29)	2,547
Contract liability	(109)	5,211
Lease liability	186	188
Accrued liabilities	(4,790)	4,811
Gaming facility mandated payment	116	100
Income tax payable	2,614	(821)
Other liabilities	(21)	3
Net cash provided by operating activities	7,538	20,937
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(8,740)	(6,510)
Proceeds from sale of airplanes	4,904	410
Proceeds from sale of land and buildings	2,710	164
Net cash used in investing activities	(1,126)	(5,936)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt	(5,295)	(5,171)
Payments on right-to-use liability	(263)	(259)
Repurchase of common stock	(5,059)	(61)
Net cash used in financing activities	(10,617)	(5,491)
NET INCREASE (DECREASE) IN CASH	(4,205)	9,510
CASH, beginning of year	21,997	12,487
CASH, end of year	17,792	21,997
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	2,454	2,752
Income taxes paid	2,075	2,536
NON CASH INVESTING AND FINANCING ACTIVITY:
Lease right-to-use assets purchased	0	541
Lease liability for purchase of assets under lease	$ 0	$ 541

v3.24.2

Insider Trading Arrangements	3 Months Ended	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		Item 9B.  OTHER INFORMATION   During the quarter ended April 30, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading agreement" or "non-Rule 10b5-1 trading agreement" as each term is defined in Item 408(a) of Regulation S-K.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. NATURE OF OPERATIONS, ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES   The accompanying consolidated financial statements include the accounts of Butler National Corporation (BNC) and its wholly-owned active subsidiaries, Avcon Industries, Inc., Butler Machine, LLC, BCS Design, Inc., Butler National Service Corporation, Butler National Corporation-Tempe, Butler Avionics, Inc., Butler National, Inc., Butler Temporary Services, Inc., Kansas International Corporation, Kansas International DDC, LLC, and BHCMC, LLC (collectively, The Company). These consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. All amounts are in thousands, except share and par values, unless otherwise noted. All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year end of the Company is April 30.   Avcon Industries, Inc. modifies business category aircraft at its Newton, Kansas facility. Modifications can include passenger-to-freighter configuration, addition of aerial photography capability, ISR modifications, and stability enhancing modifications. Butler Machine, LLC is a provider of high quality precision machine parts. Butler Avionics, Inc. sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). Butler National, Inc. acquires airplanes, principally Learjets, to refurbish and sell. Butler Temporary Services, Inc. processes company payroll. Kansas International Corporation and Kansas International DDC, LLC own property. Butler National Corporation-Tempe is primarily engaged in the manufacture of electronics for weapon control systems used by the military. Butler National Service Corporation is a management consulting and administrative services firm providing business planning and financial coordination to Indian tribes interested in owning and operating casinos under the terms of the Indian Gaming Regulatory Act of 1988. BHCMC, LLC provides management services for the Boot Hill Casino under a management agreement with the State of Kansas. BCS Design, Inc. provided professional architectural services, and was closed in January 2024.   SIGNIFICANT ACCOUNTING POLICIES:   a) Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts is calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe adequate reserves are maintained.   b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets.   c) Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventories include material, labor and factory overhead required in the production of our products.   Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence, we consider inventory that has been inactive for five years or longer and the probability of using that inventory in future production. The obsolete inventory generally consists of Falcon and Learjet parts and electrical components.    d) Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. Depreciation expense was $4,110 for the year ended April 30, 2024 and $3,999 for the year ended April 30, 2023. Depreciation expense is included in cost of sales and general and administrative costs.      Description Estimated useful life Building and improvements 39 years or the shorter of the estimated useful life of the asset or the underlying lease term Aircraft 5 years Machinery and equipment 5 years Office furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of the asset or the underlying lease term   Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired are removed from the accounts and any resulting gains or losses are reflected as income or expense.   e) Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.   f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $7,215 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $128.  BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the initial Management Contract with the State of Kansas which will end in December 2024.  The State of Kansas approved a renewal management contract and an amendment to the current management contract for our professional services company BNSC via BHCMC. The renewal will take effect December 15, 2024, and continue until 2039, another 15 years. The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.  The JET intellectual property is fully amortized.  Amortization relating to other assets in the year ended  April 30, 2024 and 2023 was $751 and $715, respectively.   Other assets net values are as follows:   (dollars in thousands)   2024     2023                     Privilege fee   $ 5,500     $ 5,500   Less amortized costs     5,218       4,795   Privilege fee balance   $ 282     $ 705                     Intangible gaming equipment   $ 7,215     $ 6,646   Less amortized costs     6,406       6,078   Intangible gaming equipment balance   $ 809     $ 568                     JET autopilot intellectual property   $ 1,417     $ 1,417   Less amortized costs     1,417       1,417   JET autopilot intellectual property balance   $ -     $ -     g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized over seven years. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Amortization relating to STC's in the year ended  April 30, 2024 and 2023 was $1,207 and $1,184, respectively.     h) Revenue Recognition: ASC Topic 606, “Revenue from Contracts with Customers”   Under ASC 606, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration we expect to receive in exchange for those services. To achieve this core principal, the Company applies the following five steps:   1)    Identify the contract, or contracts, with a customer   A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration.     2)    Identification of the performance obligations in the contract   At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer. Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.   3)    Determination of the transaction price   The transaction price is the amount that an entity allocates to the performance obligations identified in the contract and, therefore, represents the amount of revenue recognized as those performance obligations are satisfied. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.   4)    Allocation of the transaction price to the performance obligations in the contract   Once a contract and associated performance obligations have been identified and the transaction price has been determined, ASC 606 requires an entity to allocate the transaction price to each performance obligation identified. This is generally done in proportion to the standalone selling prices of each performance obligation (i.e., on a relative standalone selling price basis). As a result, any discount within the contract generally is allocated proportionally to all the separate performance obligations in the contract. The Company is applying the right to invoice practical expedient to recognize revenue. As a result, the entity bypasses the steps of determining the transaction price, allocating that transaction price and determining when to recognize revenue as it will recognize revenue as billed by multiplying the price assigned to the good or service, by the units.   5)  Recognition of revenue when, or as, we satisfy a performance obligation   Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers either over time or at a point in time. Revenue is recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services.   Aircraft modifications are performed under fixed-price contracts unless modified with a change order.  Significant payment terms are generally included in these contracts, requiring a 30% to 50% down payment on arrival of the aircraft and include milestone payments throughout the project.  Typically, contracts are less than one year in duration.  Revenue from fixed-priced contracts is recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor.  Direct labor best represents the progress on a contract as it directly correlates to the overall progress on the work to be performed.   Revenue from Aircraft Avionics and Special Mission Electronics are recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment.   Regarding warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion, any future warranty work would not be material to the consolidated financial statements.   Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the value of jackpots increase. Effective September 1, 2022, sports wagering became legal in the State of Kansas. The company is currently managing sports wagering through DraftKings sports wagering platform. The Company shares a percentage of the gross sports wagering win with its platform partner. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered. Food, beverage, and other revenue is recorded when the service is received and paid.   i) Fair Value Measurements: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:   Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.   Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings.   Level 3 - Unobservable inputs that are supported by little or no market activities.   The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.   For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, marketable securities, notes payable,  and accounts payable, the carrying amounts approximate fair value.  We do not have financial assets and liabilities that are measured at fair value on a recurring basis.  Other financial assets and liabilities are carried at cost with fair value disclosed, if required.   We measure certain other instruments, including stock-based compensation awards settled in the stock also at fair value. The determination of fair value involves the use of appropriate valuation methods and relevant inputs into valuation models.   j) Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot.   k) Gaming Facility Mandated Payment: Boot Hill Casino is contractually obligated to pay its proportionate share of certain expenses incurred by the Kansas Lottery Commission and the Kansas Racing and Gaming Commission, which amounted to $2,436 and $2,224 in the fiscal year ended April 30, 2024 and 2023, respectively.   l) Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as contract liability in current liabilities.   m) Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year.   The computation of the Company basic and diluted earnings per common share is as follows:   (in thousands, except share and per share data)   2024     2023                     Net income attributable to Butler National Corporation   $ 12,512     $ 4,516   Weighted average common shares outstanding     70,435,752       76,456,631   Dilutive effect of non-qualified stock option plans     -       -   Weighted average common shares outstanding, assuming dilution     70,435,752       76,456,631   Potential common shares if all options were exercised and shares issued     70,435,752       76,456,631   Basic earnings per common share   $ 0.18     $ 0.06   Diluted earnings per common share   $ 0.18     $ 0.06       n) Stock-based Compensation: The Company accounts for stock-based compensation under ASC 718, "Accounting for Stock-Based Compensation." These standards define a fair value based method of accounting for stock-based compensation. The cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Black-Scholes option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. For Restricted Stock, fair value is based on the closing price of our common stock on the grant date. Compensation expenses, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period. The requisite service period of the awards is generally the same as the vesting period.    o) Income Taxes: The Company utilizes ASC 740, Accounting for Income Taxes. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize.    We recognize the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50% likely to be realized upon settlement with the taxing authority. To the extent the assessment of such tax position changes, such difference will affect the provision for (benefit from) income taxes in the period in which we make the determination. We recognize interest accrued and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes.   p) Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2024 and 2023, we had $1,955 and $17,021, respectively in bank deposits that exceeded the federally insured limits.   q) Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. Our financial instruments that are exposed to concentration of credit risk consist primarily of cash and trade receivables. Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2024 or 2023.   r) Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2024 and 2023 was $823 and $1,065 respectively.   s) Advertising Costs: Advertising costs include production costs of print, radio, television and other advertisements and are expensed as incurred.  Advertising costs were $4,044 and $4,231 in the fiscal year ended April 30, 2024 and 2023, respectively.   t) Segment Information: We operate in two operating segments, aerospace products and professional services. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. Our CODM allocates resources and assesses performance based upon discrete financial information at the segment level. For fiscal 2024, our chief executive officer and chief financial officer together served as CODM for purposes of segment reporting.   u) Business Combinations: We allocate the purchase consideration of acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess recorded to goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations.   In the event that we acquire a company in which we previously held an equity interest, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the equity investment is recorded as a non-cash gain or loss and recorded within Other income (expense), net on the Consolidated Statements of Operations.   v) Acquisition-Related Intangible Assets: Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events.   w) Treasury Stock: Treasury stock is accounted for using the cost method and recorded as a reduction to Stockholders’ equity on the Consolidated Balance Sheets. Incremental direct costs to purchase treasury stock are included in the cost of the shares acquired.   To determine the cost of treasury stock that is either sold or re-issued, we use the first in, first out method. When treasury stock is re-issued at a price higher than its cost, the increase is recorded in Additional paid-in capital on the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the decrease is recorded in Additional paid-in capital to the extent that there are previously recorded increases to offset the decrease. Any decreases in excess of that amount are recorded in Accumulated deficit on the Consolidated Financial statements.   x) Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard.   In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, and allows for adoption on a prospective basis, with a retrospective option. We are currently evaluating the impacts of the new standard.   Other standards issued by the FASB or SEC had no material impact on our future financial reporting.   y) Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations.

v3.24.2

Note 2 - Disaggregation of Revenue	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Disaggregation of Revenue [Text Block]	2. DISAGGREGATION OF REVENUE:   In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.       Year Ended April 30, 2024       Professional Services     Aerospace Products     Total   Geographical Markets                         North America   $ 38,640     $ 26,429     $ 65,069   Europe     -       8,161       8,161   Middle East     -       1,606       1,606   Asia and Other     -       3,540       3,540       $ 38,640     $ 39,736     $ 78,376                             Major Product Lines                         Casino Gaming Revenue   $ 29,441     $ -     $ 29,441   Sportsbook Revenue     4,585       -       4,585   Casino Non-Gaming Revenue     4,551       -       4,551   Other Professional Services     63       -       63   Aircraft Modification     -       25,061       25,061   Aircraft Avionics     -       2,722       2,722   Special Mission Electronics     -       11,953       11,953       $ 38,640     $ 39,736     $ 78,376                             Contract Types / Revenue Recognition Timing                         Percentage of completion contracts   $ -     $ 22,570     $ 22,570   Goods or services transferred at a point of sale     38,640       17,166       55,806       $ 38,640     $ 39,736     $ 78,376         Year Ended April 30, 2023       Professional Services     Aerospace Products     Total   Geographical Markets                         North America   $ 38,041     $ 30,503     $ 68,544   Europe     -       1,095       1,095   Middle East     -       4,614       4,614   Asia and Other     -       929       929       $ 38,041     $ 37,141     $ 75,182                             Major Product Lines                         Casino Gaming Revenue   $ 30,564     $ -     $ 30,564   Sportsbook Revenue     2,738       -       2,738   Casino Non-Gaming Revenue     4,456       -       4,456   Other Professional Services     283       -       283   Aircraft Modification     -       24,016       24,016   Aircraft Avionics     -       2,324       2,324   Special Mission Electronics     -       10,801       10,801       $ 38,041     $ 37,141     $ 75,182                             Contract Types / Revenue Recognition Timing                         Percentage of completion contracts   $ -     $ 22,500     $ 22,500   Goods or services transferred at a point of sale     38,041       14,641       52,682       $ 38,041     $ 37,141     $ 75,182

v3.24.2

Note 3 - Accounts Receivable, Net, Contract Asset and Contract Liability	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Text Block]	3. ACCOUNTS RECEIVABLE, NET, CONTRACT ASSET AND CONTRACT LIABILITY:   Accounts Receivables, net, contract asset and contract liability were as follows (in thousands):       2024     2023   Accounts Receivable, net   $ 5,776     $ 3,793   Contract Asset     3,812       1,893   Contract Liability     5,922       6,031     Accounts Receivables, net consist of $5,776 and $3,793 from customers as of  April 30, 2024 and 2023 respectively. At  April 30, 2024, and 2023, the allowance for doubtful accounts was $47 and $205, respectively. Contract assets are net of progress payments and performance-based payments from our customers as well as advance payments from customers totaling $3,812 and $1,893 as of  April 30, 2024 and 2023. Contract assets increased $1,919 during 2024, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during 2024 for which we have not yet billed our customers. There were no significant impairment losses related to our contract assets during 2024 and 2023. We expect to bill our customers for the majority of the April 30, 2024 contract assets during fiscal year end 2025. Contract liabilities decreased $109 during 2024, primarily due to payments received in excess of revenue recognized on these performance obligations. During 2024, we recognized $4,323 of our contract liabilities at April 30, 2023 as revenue. During 2023, we recognized $820 of our contract liabilities at April 30, 2022, as revenue.

v3.24.2

Note 4 - Inventory	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	4. INVENTORY   Inventory is comprised of the following, net of the estimate for obsolete inventory of $360 at April 30, 2024 and $275 at April 30, 2023.       2024     2023   Parts and raw material   $ 6,111     $ 5,704   Work in process     3,349       3,194   Finished goods     62       49   Total Inventory, net of allowance   $ 9,522     $ 8,947

v3.24.2

Note 5 - Property, Plant and Equipment	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5. PROPERTY, PLANT AND EQUIPMENT   Property, plant and equipment is comprised of the following:       2024     2023   Land   $ 4,224     $ 4,751   Building and improvements     48,190       47,867   Aircraft     5,599       8,515   Machinery and equipment     7,484       5,547   Office furniture and fixtures     14,389       13,881   Leasehold improvements     4,032       4,032         83,918       84,593   Accumulated depreciation     (24,331 )     (25,526 ) Total property, plant and equipment   $ 59,587     $ 59,067

v3.24.2

Note 6 - Debt	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	6. DEBT:   Principal amounts of debt at April 30, 2024 and 2023, consist of the following (in thousands):   Promissory Notes   2024     2023                     Bank line of credit, available LOC $2.0 million interest at 8.4% due on demand, secured by a first and second position on all assets of the Company.     -       -       $ -     $ -                     Long-Term Debt                                   Note payable, interest at 6.25%. This note was paid in full in May 2023.   $ -     $ 158                     Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75% due March 2029, secured by buildings and improvements with a net book value of $680.     787       946                     Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75%. This note was paid in full in March 2024.     -       434                     Note payable, interest at 5.32%, this note matures in December 2027, with a balloon payment of $19,250, secured by all of BHCMC's assets and compensation due under the State Management Contract.     29,167       30,916                     Note payable, interest at 5.75%, this note matures October 2026, secured by all of BHCMC's assets and compensation due under the State Management Contract.     7,471       10,173                     Note payable, interest at 4.35%, due March 2029, secured by Aircraft Security Agreements with a net book value of $701.     887       1,046                     Note payable, interest at 8.13%, due October 2025, secured by equipment with a net book value of $31.     34       44                           38,346       43,717   Less: Origination fees     236       312         38,110       43,405   Less: Current maturities     4,866       4,987       $ 33,244     $ 38,418      Maturities of long-term debt are as follows:     Year Ending April 30   Amount   2025   $ 4,948   2026     4,939   2027     3,866   2028     2,099   2029     2,077   Thereafter     20,417       $ 38,346     Financial and Other Covenants   We are compliant with the covenants and obligations of each of our notes at April 30, 2024.

v3.24.2

Note 7 - Lease Right-to-use	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Lessee, Finance Leases [Text Block]	7. LEASE RIGHT-TO-USE:   The Company accounts for its leases under ASU 2016-02 Leases – Topic 842. ASU 2016-02 requires that on the balance sheet a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term.   We lease the hangar and office space with initial lease terms of two, five, and fifty years.         April 30, 2024     April 30, 2023   Finance lease right-to-use assets   $ 3,781     $ 3,781   Less accumulated depreciation     889       700   Total   $ 2,892     $ 3,081       Future minimum lease payments for assets under capital leases at April 30, 2024 are as follows:   2025   $ 139   2026     116   2027     118   2028     120   2029     123   Thereafter     12,705   Total minimum lease payments     13,321   Less amount representing interest     9,923   Present value of net minimum lease payments     3,398   Less current maturities of finance lease liability     25   Finance lease liability, net of current maturities   $ 3,373         April 30, 2024     April 30, 2023   Finance lease cost:                 Amortization of right-of-use assets     $ 189       $ 188   Interest on lease liabilities     186       188   Total finance lease cost     $ 375       $ 376                         April 30, 2024     April 30, 2023   Weighted average remaining lease term - Financing leases   44 years     43 years   Weighted average discount rate - Financing leases     5.8%       5.8%

v3.24.2

Note 8 - Acquisition	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Business Combination Disclosure [Text Block]	8. ACQUISITION:   In September 2023, the Company acquired KC Machine to help expand our Avcon parts fabrication capacity for $2,860. KC Machine is a recognized provider of high quality precision machine parts. The purchase price was paid by a combination of $2,375 in cash, a $300 earned-out liability that was paid in March 2024, and a final escrow liability due September 2024. The present value of the escrow liability due in  September is included in accounts payable at April 30, 2024.   The following table summarizes the purchase price and accounting for this transaction:      Purchase price summary:         Cash paid at closing   $ 2,375   Present value of final escrow liability     228   Present value of earn-out liability     257       $ 2,860             Accounting summary:         Building   $ 1,510   Equipment     930   Intangibles     205   Inventory     230   Other     (15 )     $ 2,860

v3.24.2

Note 9 - Income Taxes	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9. INCOME TAXES:   Deferred taxes are determined based on the estimated future tax effects of differences between the financial statements and tax basis of assets and liabilities given the provision of the enacted tax laws. Significant components of the Company's deferred tax liabilities and assets as of April 30, 2024 and 2023 are as follows (in thousands):       April 30, 2024   April 30, 2023   Deferred tax liabilities:             Deferred compensation, restricted stock $ (7 ) $ (166 ) Total deferred tax liabilities   (7 )   (166 )               Deferred tax assets:             Depreciation and amortization   98     325   Research and development   1,319     738   Accounts receivable allowance   13     55   Inventory and other allowances   97     74   Lease right-to-use   144     114   Compensation accruals   72     156   Jackpot reserves   183     177   Total deferred tax assets   1,926     1,639                 Less valuation allowance   -     -   Net deferred tax asset $ 1,919   $ 1,473     The reconciliation of the federal statutory income tax rate to the effective tax rate is as follows:       April 30, 2024     April 30, 2023   Statutory federal income tax rate expense     21.00 %     21.00 % State income tax, net of federal benefits     5.97 %     5.90 % Permanent tax     0.63 %     2.19 % Other     -2.28 %     1.72 %       25.32 %     30.81 %                   Income tax expense:                 Deferred income tax (benefit)   $ (446 )   $ 297   Current income tax     4,690       1,714   Total income tax expense   $ 4,244     $ 2,011     Current income tax expense of $4,690 and $1,714 are comprised of $3,438 and $1,238 in federal income tax and $1,252 and $476 in state income tax for the years ended April 30, 2024 and 2023, respectively.   The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on its financial condition, results of operations or cashflow. Therefore, no reserve for uncertain income tax position, interest or penalties, have been recorded.    The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. Federal tax examinations for tax years beginning on May 1, 2020 and prior. There are no current tax examinations.

v3.24.2

Note 10 - Stockholders' Equity	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Equity [Text Block]	10. STOCKHOLDERS' EQUITY:   Common Stock Transactions   During the year ended  April 30, 2024, the Company granted a board member 300,000 shares, valued at $222, under the Butler National Corporation 2016 Equity Incentive Plan.   During the year ended  April 30, 2023, we issued 997,639 shares valued at $783 as the contribution to the Company 401(k) profit sharing plan.  In addition, the Company granted a board member 400,000 shares, valued at $352, under the Butler National Corporation 2016 Equity Incentive Plan.

v3.24.2

Note 11 - Stock Options and Incentive Plans	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	11. STOCK OPTIONS AND INCENTIVE PLANS:    In November 2016, the shareholders approved and adopted the Butler National Corporation 2016 Equity Incentive Plan. The maximum number of shares of common stock that may be issued under the Plan is 12.5 million.   On April 12, 2019, the Company granted 2.5 million restricted shares to employees. In April 2024, 1,650,000 of those shares became fully vested and non-forfeitable. The remaining 850,000 shares were forfeited. On March 17, 2020, the Company granted 5.0 million restricted shares to employees. These shares have voting rights at date of grant and become fully vested and non-forfeitable on March 16, 2025. The restricted shares were valued at $0.41 per share, for a total of $2.0 million. The deferred compensation related to these grants will be expensed on the financial statements over the five-year vesting period.    In July 2022, the Company granted a board member 400,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant.  These shares were valued at $0.88 per share, for a total of $352.  The compensation related to this grant was expensed in the year ended April 30, 2023.    In October 2023, the Company granted a board member 300,000 shares under the plan.  These shares were fully vested and non-forfeitable on the date of the grant. These shares were valued at $0.74, for a total of $222.  The compensation related to this grant was expensed in the year ended April 30, 2024.   No other equity awards have been made under the plan. During the year ended April 30, 2024, 1,525,000 shares were forfeited. During the year ended April 30, 2023, 875,000 shares were forfeited. At April 30, 2024, total compensation cost related to nonvested awards not recognized was $251, and the weighted average period over which it is expected to be recognized is less than one year.   During the year ended April 30, 2024 the Company expensed $634 and received a benefit of $427 from the forfeiture of shares for a net expense of $207.  For the year ended April 30, 2023, the Company expensed $915 and received a benefit of $206 from the forfeiture of shares for a net expense of $709.       Number of Shares     Weighted Average Grant Date Fair Value   Total shares issued (2019 - 2024)     8,200,000     $ 0.43   Forfeited, in prior periods     (100,000 )   $ 0.40   Forfeited during the year ended April 30, 2023     (875,000 )   $ 0.40   Forfeited during the year ended April 30, 2024     (1,525,000 )   $ 0.40   Total     5,700,000     $ 0.45   Vested shares     2,350,000     $ 0.56   Non-vested shares     3,350,000     $ 0.41

v3.24.2

Note 12 - Stock Repurchase Program	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Treasury Stock [Text Block]	12. STOCK REPURCHASE PROGRAM:   In December 2016, the Board of Directors approved a common stock repurchase program. The program was established for the purpose of enabling Butler National Corporation (BNC) to flexibly repurchase its own shares in consideration of factors such as opportunities for strategic investment, BNC's financial condition and the price of its common stock as part of improving capital efficiency. In July 2023, the Board of Directors approved an increase in the size of the Company's common stock repurchase program from $4 million to $9 million. The program is currently authorized through July 31, 2025. The total remaining authorization for future common stock repurchases under our share repurchase program was $2.5 million as of April 30, 2024.   The table below provides information with respect to common stock purchases by the Company during the year ended April 30, 2024.   Period   Total Number of Shares Purchased     Average Price Paid per Share     Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs     Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs   Shares purchased in prior periods     3,290,426     $ 0.41       3,290,426     $ 2,655   Quarter ended July 31, 2022 (a)     1,639     $ 0.84       1,639     $ 2,653   Quarter ended October 31, 2022 (a)     150     $ 0.70       150     $ 2,653   Quarter ended January 31, 2023 (a)     85,307     $ 0.68       85,307     $ 2,595   Quarter ended April 30, 2023 (a)     2,000     $ 0.68       2,000     $ 2,594   Increase in program authorization July 2023     -     $ -       -     $ 7,594   Quarter ended July 31, 2023 (a)     6,863,789     $ 0.73       6,863,789     $ 2,560   Quarter ended October 31, 2023 (a)     2,300     $ 0.73       2,300     $ 2,558   Quarter ended January 31, 2024 (a)     24,744     $ 0.73       24,744     $ 2,540   Quarter ended April 30, 2024 (a)     5,000     $ 0.79       5,000     $ 2,536   Total     10,275,355     $ 0.63       10,275,355               (a) These shares of common stock purchased were purchased through private transactions.

v3.24.2

Note 13 - Commitments and Contingencies	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	13. COMMITMENTS AND CONTINGENCIES:   Litigation:   From time to time, we may be a defendant and/or plaintiff in various other legal proceedings arising in the normal course of our business. We are not currently a party to any material legal proceedings or government actions, including any bankruptcy, receivership, or similar proceedings. In addition, we are not aware of any known litigation or liabilities involving the operators of our properties that could affect our operations. Furthermore, as of July 23, 2024, our management is not aware of any proceedings to which any of our directors, officers, or affiliates, or any associate of any such director, officer, affiliate, or security holder is a party averse to our company or has a material interest averse to us.

v3.24.2

Note 14 - Related-party Transactions	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	14. RELATED-PARTY TRANSACTIONS:   The Company paid consulting fees of $135 and $135 to David Hayden, a director of Butler National Corporation in fiscal year ended April 30, 2024 and 2023 respectively.   The Company paid Edgar Law Firm, LLC, owned by John M. Edgar, a director of Butler National Corporation $73 and $113 in fiscal year ended  April 30, 2024 and 2023 respectively.   Included in accrued liabilities are $0 and $244 as of April 30, 2024 and 2023, respectively, for amounts owed to Clark D. Stewart, former director and CEO, for accrued compensation.   On January 20, 2023, the board of directors voted to terminate Craig D. Stewart. This resulted in the forfeiture of 800,000 shares of Company common stock in fiscal 2023. On May 9, 2023, the employment of Clark D. Stewart with the Company was terminated by Mr. Stewart for good reason.  This resulted in the forfeiture of 1.1 million shares of Company common stock in fiscal 2024.     Clark D. Stewart and Craig D. Stewart each entered into a Separation and Mutual Release Agreement with the Company, each of the directors, and with the Company's executive officers dated July 20, 2023.  Pursuant to the Agreements, in consideration of a mutual general release of claims, Clark D. Stewart and Craig D. Stewart were each paid a lump sum severance benefit, which totaled $2.7 million for Clark D. Stewart and $1.8 million for Craig D. Stewart, and in addition, the Company purchased 3,956,267 shares of Company stock from Clark D. Stewart and 1,933,402 shares of Company stock from Craig D. Stewart at $0.739 per share. The stock acquired was placed in treasury.   There were three related-person transactions under the relevant standards: Butler National Corporation employed the brother (Wayne Stewart as an engineer), son (Craig Stewart as a Vice President) and son-in-law (Jeff Shinkle as an architect) of Clark D. Stewart, former director and CEO. Compensation for these related-persons was calculated in the same manner as the Summary Compensation table shown in the most recent Proxy Statement resulting in compensation of $315, $0 and $162 respectively, for fiscal 2024 and $303, $331 and $254, respectively, for fiscal 2023.   The policies and procedures for payment of goods and services for related transactions follow our normal course of business standards and require the necessary review and approval process as outlined in our Policies and Procedures manual and as set forth by our Compensation Committee.

v3.24.2

Note 15 - 401(k) Profit Sharing Plan	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Retirement Benefits [Text Block]	15. 401(k) PROFIT SHARING PLAN:   We have a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees with at least thirty days of service are eligible to participate in the plan; however, there are only two entry dates per calendar year. The Plan may match, subject to the annual approval of the Board of Directors, 100 percent of every pre-tax dollar an employee contributes up to 6 percent of the employee's salary, and a portion of the Company’s profits. Employees are 100 percent vested in the employer's contributions immediately. Our matching contribution, as approved by the Board of Directors was paid in cash in the year ended April 30, 2024 and was paid in common stock of the Company in the year ended April 30, 2023.  The stock contribution amount was valued at a weekly weighted average market price of the stock contributed in fiscal year 2023. The contribution expense was $750 and $783 in fiscal year ended April 30, 2024 and 2023, respectively.

v3.24.2

Note 16 - Segment Reporting and Sales by Major Customer	12 Months Ended
	Apr. 30, 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") provides management services to the Boot Hill Casino, a "state-owned casino".   Year Ended April 30, 2024   Gaming     Aircraft Modification     Aircraft Avionics     Special Mission Electronics     Other     Total   Revenues from customers   $ 38,577     $ 25,061     $ 2,722     $ 11,953     $ 63     $ 78,376   Interest expense     2,122       229       -       63       33       2,447   Depreciation and amortization     3,014       2,790       20       125       119       6,068     Year Ended April 30, 2023   Gaming     Aircraft Modification     Aircraft Avionics     Special Mission Electronics     Other     Total   Revenues from customers   $ 37,758     $ 24,016     $ 2,324     $ 10,801     $ 283     $ 75,182   Interest expense     2,419       251       -       47       26       2,743   Depreciation and amortization     2,742       2,718       11       145       282       5,898     Our Chief Operating Decision Maker (CODM) uses the segment 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:       2024     2023   Aerospace Products – one customer in 2024 and 2023     15.2 %     14.3 % Professional Services     -       -     In fiscal 2024 the Company derived 28.5% of total revenue from five Aerospace customers. The top customer provided 15.2% of total revenue while the next top four customers ranged from 1.9% to 5.8%. At April 30, 2024, we had one customer that accounted for 42.5% of our accounts receivable.

v3.24.2

Note 17 - Subsequent Events	12 Months Ended
	Apr. 30, 2024
Notes to Financial Statements
Subsequent Events [Text Block]	17. SUBSEQUENT EVENTS:   The Company evaluated its April 30, 2024, consolidated financial statements for subsequent events through July 23, 2024, the filing date of this report. The Company is not aware of any subsequent events that would require recognition or disclosure in the consolidated financial statements.

v3.24.2

Significant Accounting Policies (Policies)	12 Months Ended
	Apr. 30, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The accompanying consolidated financial statements include the accounts of Butler National Corporation (BNC) and its wholly-owned active subsidiaries, Avcon Industries, Inc., Butler Machine, LLC, BCS Design, Inc., Butler National Service Corporation, Butler National Corporation-Tempe, Butler Avionics, Inc., Butler National, Inc., Butler Temporary Services, Inc., Kansas International Corporation, Kansas International DDC, LLC, and BHCMC, LLC (collectively, The Company). These consolidated financial statements and related notes are presented in accordance with generally accepted accounting principles in the United States (“GAAP”), expressed in U.S. dollars. All amounts are in thousands, except share and par values, unless otherwise noted. All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year end of the Company is April 30.   Avcon Industries, Inc. modifies business category aircraft at its Newton, Kansas facility. Modifications can include passenger-to-freighter configuration, addition of aerial photography capability, ISR modifications, and stability enhancing modifications. Butler Machine, LLC is a provider of high quality precision machine parts. Butler Avionics, Inc. sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). Butler National, Inc. acquires airplanes, principally Learjets, to refurbish and sell. Butler Temporary Services, Inc. processes company payroll. Kansas International Corporation and Kansas International DDC, LLC own property. Butler National Corporation-Tempe is primarily engaged in the manufacture of electronics for weapon control systems used by the military. Butler National Service Corporation is a management consulting and administrative services firm providing business planning and financial coordination to Indian tribes interested in owning and operating casinos under the terms of the Indian Gaming Regulatory Act of 1988. BHCMC, LLC provides management services for the Boot Hill Casino under a management agreement with the State of Kansas. BCS Design, Inc. provided professional architectural services, and was closed in January 2024.
Accounts Receivable [Policy Text Block]	a) Accounts receivable: Accounts receivable are carried on a gross basis, with no discounting, less the allowance for doubtful accounts. Management estimates the allowance for doubtful accounts based on existing economic conditions, the financial conditions of the customers, and the amount and the age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. Allowance for doubtful accounts is calculated on the historical write-off of doubtful accounts of the individual subsidiaries. Invoices are generally considered a doubtful account if no payment has been made in the past 90 days. We review these policies on a quarterly basis, and based on these reviews, we believe adequate reserves are maintained.
Use of Estimates, Policy [Policy Text Block]	b) Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Significant estimates include assumptions about collection of accounts receivable, the valuation and recognition of stock-based compensation expense, valuation for deferred tax assets and useful life of fixed assets.
Inventory, Policy [Policy Text Block]	c) Inventories: Inventories are priced at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventories include material, labor and factory overhead required in the production of our products.   Inventory obsolescence is examined on a regular basis. When determining our estimate of obsolescence, we consider inventory that has been inactive for five years or longer and the probability of using that inventory in future production. The obsolete inventory generally consists of Falcon and Learjet parts and electrical components.
Property, Plant and Equipment, Policy [Policy Text Block]	d) Property and Related Depreciation: Machinery and equipment are recorded at cost and depreciated over their estimated useful lives. Depreciation is provided on a straight-line basis. Depreciation expense was $4,110 for the year ended April 30, 2024 and $3,999 for the year ended April 30, 2023. Depreciation expense is included in cost of sales and general and administrative costs.      Description Estimated useful life Building and improvements 39 years or the shorter of the estimated useful life of the asset or the underlying lease term Aircraft 5 years Machinery and equipment 5 years Office furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of the asset or the underlying lease term   Maintenance and repairs are charged to expense as incurred. The cost and accumulated depreciation of assets retired are removed from the accounts and any resulting gains or losses are reflected as income or expense.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	e) Long-Lived Assets: The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.
Other Assets Policy [Policy Text Block]	f) Other Assets: Our other asset account includes assets of $5,500 related to the Kansas Expanded Lottery Act Management Contract privilege fee, $7,215 of gaming equipment we were required to pay for ownership by the State of Kansas Lottery, and JET autopilot intellectual property of $1,417, and miscellaneous other assets of $128.  BHCMC expects the $5,500 privilege fee to have a value over the remaining life of the initial Management Contract with the State of Kansas which will end in December 2024.  The State of Kansas approved a renewal management contract and an amendment to the current management contract for our professional services company BNSC via BHCMC. The renewal will take effect December 15, 2024, and continue until 2039, another 15 years. The Managers Certificate asset for use of gaming equipment is being amortized over a period of three years based on the estimated useful life of gaming equipment.  The JET intellectual property is fully amortized.  Amortization relating to other assets in the year ended  April 30, 2024 and 2023 was $751 and $715, respectively.   Other assets net values are as follows:   (dollars in thousands)   2024     2023                     Privilege fee   $ 5,500     $ 5,500   Less amortized costs     5,218       4,795   Privilege fee balance   $ 282     $ 705                     Intangible gaming equipment   $ 7,215     $ 6,646   Less amortized costs     6,406       6,078   Intangible gaming equipment balance   $ 809     $ 568                     JET autopilot intellectual property   $ 1,417     $ 1,417   Less amortized costs     1,417       1,417   JET autopilot intellectual property balance   $ -     $ -
Supplemental Type Certificates [Policy Text Block]	g) Supplemental Type Certificates: Supplemental Type Certificates (STCs) are authorizations granted by the Federal Aviation Administration (FAA) for specific modification of a certain aircraft. The STC authorizes us to perform modifications, installations, and assemblies on applicable customer-owned aircraft. Costs incurred to obtain STCs are capitalized and subsequently amortized over seven years. The legal life of an STC is indefinite. We believe we have enough future sales to fully amortize our STC development costs. Amortization relating to STC's in the year ended  April 30, 2024 and 2023 was $1,207 and $1,184, respectively.
Revenue from Contract with Customer [Policy Text Block]	h) Revenue Recognition: ASC Topic 606, “Revenue from Contracts with Customers”   Under ASC 606, revenue is recognized when a customer obtains control of promised services in an amount that reflects the consideration we expect to receive in exchange for those services. To achieve this core principal, the Company applies the following five steps:   1)    Identify the contract, or contracts, with a customer   A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration.     2)    Identification of the performance obligations in the contract   At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer. Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.   3)    Determination of the transaction price   The transaction price is the amount that an entity allocates to the performance obligations identified in the contract and, therefore, represents the amount of revenue recognized as those performance obligations are satisfied. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer.   4)    Allocation of the transaction price to the performance obligations in the contract   Once a contract and associated performance obligations have been identified and the transaction price has been determined, ASC 606 requires an entity to allocate the transaction price to each performance obligation identified. This is generally done in proportion to the standalone selling prices of each performance obligation (i.e., on a relative standalone selling price basis). As a result, any discount within the contract generally is allocated proportionally to all the separate performance obligations in the contract. The Company is applying the right to invoice practical expedient to recognize revenue. As a result, the entity bypasses the steps of determining the transaction price, allocating that transaction price and determining when to recognize revenue as it will recognize revenue as billed by multiplying the price assigned to the good or service, by the units.   5)  Recognition of revenue when, or as, we satisfy a performance obligation   Revenue is recognized when or as performance obligations are satisfied by transferring control of a promised good or service to a customer. Control transfers either over time or at a point in time. Revenue is recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services.   Aircraft modifications are performed under fixed-price contracts unless modified with a change order.  Significant payment terms are generally included in these contracts, requiring a 30% to 50% down payment on arrival of the aircraft and include milestone payments throughout the project.  Typically, contracts are less than one year in duration.  Revenue from fixed-priced contracts is recognized on the percentage-of-completion method, measured by the direct labor incurred compared to total estimated direct labor.  Direct labor best represents the progress on a contract as it directly correlates to the overall progress on the work to be performed.   Revenue from Aircraft Avionics and Special Mission Electronics are recognized when shipped. Payment for these Avionics products is due within 30 days of the invoice date after shipment.   Regarding warranties and returns, our products are special order and are not suitable for return. Our products are unique upon installation and tested prior to their release to the customer and acceptance by the customer. In the rare event of a warranty claim, the claim is processed through the normal course of business and may include additional charges to the customer. In our opinion, any future warranty work would not be material to the consolidated financial statements.   Gaming revenue is the gross gaming win as reported by the Kansas Lottery casino reporting systems, less the mandated payments by and for the State of Kansas. Electronic games-slots and table games revenue is the aggregate of gaming wins and losses. Liabilities are recognized for chips and "ticket-in, ticket-out" coupons in the customers' possession, and for accruals related to anticipated payout of progressive jackpots. Progressive gaming machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are deducted from revenue as the value of jackpots increase. Effective September 1, 2022, sports wagering became legal in the State of Kansas. The company is currently managing sports wagering through DraftKings sports wagering platform. The Company shares a percentage of the gross sports wagering win with its platform partner. Revenue from Gaming Management and other Corporate/Professional Services is recognized as the service is rendered. Food, beverage, and other revenue is recorded when the service is received and paid.
Fair Value Measurement, Policy [Policy Text Block]	i) Fair Value Measurements: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value:   Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.   Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings.   Level 3 - Unobservable inputs that are supported by little or no market activities.   The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.   For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, marketable securities, notes payable,  and accounts payable, the carrying amounts approximate fair value.  We do not have financial assets and liabilities that are measured at fair value on a recurring basis.  Other financial assets and liabilities are carried at cost with fair value disclosed, if required.   We measure certain other instruments, including stock-based compensation awards settled in the stock also at fair value. The determination of fair value involves the use of appropriate valuation methods and relevant inputs into valuation models.
Slot Machine Jackpots [Policy Text Block]	j) Slot Machine Jackpots: If the casino is not required to make payment of the jackpot (i.e. the incremental amount on a progressive machine) due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated with a related reduction in casino revenue. No liability is accrued with respect to the base jackpot.
Gaming Facility Mandated Payment [Policy Text Block]	k) Gaming Facility Mandated Payment: Boot Hill Casino is contractually obligated to pay its proportionate share of certain expenses incurred by the Kansas Lottery Commission and the Kansas Racing and Gaming Commission, which amounted to $2,436 and $2,224 in the fiscal year ended April 30, 2024 and 2023, respectively.
Advanced Payments and Billings in Excess of Costs Incurred [Policy Text Block]	l) Advanced Payments and Billings in Excess of Costs Incurred: We receive advances, performance-based payments and progress payment from customers which may exceed costs incurred on certain contracts. We classify advance payments and billings in excess of costs incurred, other than those reflected as a reduction of contracts in process, as contract liability in current liabilities.
Earnings Per Share, Policy [Policy Text Block]	m) Earnings Per Share: Earnings per common share is based on the weighted average number of common shares outstanding during the year.   The computation of the Company basic and diluted earnings per common share is as follows:   (in thousands, except share and per share data)   2024     2023                     Net income attributable to Butler National Corporation   $ 12,512     $ 4,516   Weighted average common shares outstanding     70,435,752       76,456,631   Dilutive effect of non-qualified stock option plans     -       -   Weighted average common shares outstanding, assuming dilution     70,435,752       76,456,631   Potential common shares if all options were exercised and shares issued     70,435,752       76,456,631   Basic earnings per common share   $ 0.18     $ 0.06   Diluted earnings per common share   $ 0.18     $ 0.06
Share-Based Payment Arrangement [Policy Text Block]	n) Stock-based Compensation: The Company accounts for stock-based compensation under ASC 718, "Accounting for Stock-Based Compensation." These standards define a fair value based method of accounting for stock-based compensation. The cost of stock-based compensation is measured at the grant date based on the value of the award and is recognized over the vesting period. The value of the stock-based award is determined using the Black-Scholes option-pricing model, whereby compensation cost is the excess of the fair value of the award as determined by the pricing model at the grant date or other measurement date over the amount that must be paid to acquire the stock. The resulting amount is charged to expense on the straight-line basis over the period in which the Company expects to receive the benefit, which is generally the vesting period. For Restricted Stock, fair value is based on the closing price of our common stock on the grant date. Compensation expenses, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period. The requisite service period of the awards is generally the same as the vesting period.
Income Tax, Policy [Policy Text Block]	o) Income Taxes: The Company utilizes ASC 740, Accounting for Income Taxes. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred taxes, which arise principally from temporary differences between the period in which certain income and expense items are recognized for financial reporting purposes and the period in which they affect taxable income, are included in the amounts provided for income taxes. Under this method, the computation of deferred tax assets and liabilities give recognition to enacted tax rates in effect in the year the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that we expect to realize.    We recognize the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50% likely to be realized upon settlement with the taxing authority. To the extent the assessment of such tax position changes, such difference will affect the provision for (benefit from) income taxes in the period in which we make the determination. We recognize interest accrued and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes.
Cash and Cash Equivalents, Policy [Policy Text Block]	p) Cash and Cash Equivalents: Cash and cash equivalents consist primarily of cash and investments in a money market fund. We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. At April 30, 2024 and 2023, we had $1,955 and $17,021, respectively in bank deposits that exceeded the federally insured limits.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	q) Concentration of Credit Risk: We extend credit to customers based on an evaluation of their financial condition and collateral is not required. We perform ongoing credit evaluations of our customers and maintain an allowance for doubtful accounts. Our financial instruments that are exposed to concentration of credit risk consist primarily of cash and trade receivables. Other than the United States, no country individually accounted for more than 10% of total revenues during fiscal 2024 or 2023.
Research and Development Expense, Policy [Policy Text Block]	r) Research and Development: We invested in research and development activities. The amount invested in the year ended April 30, 2024 and 2023 was $823 and $1,065 respectively.
Advertising Cost [Policy Text Block]	s) Advertising Costs: Advertising costs include production costs of print, radio, television and other advertisements and are expensed as incurred.  Advertising costs were $4,044 and $4,231 in the fiscal year ended April 30, 2024 and 2023, respectively.
Segment Reporting, Policy [Policy Text Block]	t) Segment Information: We operate in two operating segments, aerospace products and professional services. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assessing performance. Our CODM allocates resources and assesses performance based upon discrete financial information at the segment level. For fiscal 2024, our chief executive officer and chief financial officer together served as CODM for purposes of segment reporting.
Business Combinations Policy [Policy Text Block]	u) Business Combinations: We allocate the purchase consideration of acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date, with the excess recorded to goodwill. Our estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations.   In the event that we acquire a company in which we previously held an equity interest, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the equity investment is recorded as a non-cash gain or loss and recorded within Other income (expense), net on the Consolidated Statements of Operations.
Intangible Assets, Acquisition Related, Finite-Lived, Policy [Policy Text Block]	v) Acquisition-Related Intangible Assets: Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events.
Treasury Stock, Policy [Policy Text Block]	w) Treasury Stock: Treasury stock is accounted for using the cost method and recorded as a reduction to Stockholders’ equity on the Consolidated Balance Sheets. Incremental direct costs to purchase treasury stock are included in the cost of the shares acquired.   To determine the cost of treasury stock that is either sold or re-issued, we use the first in, first out method. When treasury stock is re-issued at a price higher than its cost, the increase is recorded in Additional paid-in capital on the Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the decrease is recorded in Additional paid-in capital to the extent that there are previously recorded increases to offset the decrease. Any decreases in excess of that amount are recorded in Accumulated deficit on the Consolidated Financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]	x) Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impacts of the new standard.   In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, and allows for adoption on a prospective basis, with a retrospective option. We are currently evaluating the impacts of the new standard.   Other standards issued by the FASB or SEC had no material impact on our future financial reporting.
Reclassification, Comparability Adjustment [Policy Text Block]	y) Reclassifications: Certain reclassifications within the financial statement captions have been made to maintain consistency in presentation between years. These reclassifications have no impact on the reported results of operations.

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Useful Life of Property, Plant, and Equipment [Table Text Block]	Description Estimated useful life Building and improvements 39 years or the shorter of the estimated useful life of the asset or the underlying lease term Aircraft 5 years Machinery and equipment 5 years Office furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of the asset or the underlying lease term
Schedule of Other Assets [Table Text Block]	(dollars in thousands)   2024     2023                     Privilege fee   $ 5,500     $ 5,500   Less amortized costs     5,218       4,795   Privilege fee balance   $ 282     $ 705                     Intangible gaming equipment   $ 7,215     $ 6,646   Less amortized costs     6,406       6,078   Intangible gaming equipment balance   $ 809     $ 568                     JET autopilot intellectual property   $ 1,417     $ 1,417   Less amortized costs     1,417       1,417   JET autopilot intellectual property balance   $ -     $ -
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	(in thousands, except share and per share data)   2024     2023                     Net income attributable to Butler National Corporation   $ 12,512     $ 4,516   Weighted average common shares outstanding     70,435,752       76,456,631   Dilutive effect of non-qualified stock option plans     -       -   Weighted average common shares outstanding, assuming dilution     70,435,752       76,456,631   Potential common shares if all options were exercised and shares issued     70,435,752       76,456,631   Basic earnings per common share   $ 0.18     $ 0.06   Diluted earnings per common share   $ 0.18     $ 0.06

v3.24.2

Note 2 - Disaggregation of Revenue (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	Year Ended April 30, 2024       Professional Services     Aerospace Products     Total   Geographical Markets                         North America   $ 38,640     $ 26,429     $ 65,069   Europe     -       8,161       8,161   Middle East     -       1,606       1,606   Asia and Other     -       3,540       3,540       $ 38,640     $ 39,736     $ 78,376                             Major Product Lines                         Casino Gaming Revenue   $ 29,441     $ -     $ 29,441   Sportsbook Revenue     4,585       -       4,585   Casino Non-Gaming Revenue     4,551       -       4,551   Other Professional Services     63       -       63   Aircraft Modification     -       25,061       25,061   Aircraft Avionics     -       2,722       2,722   Special Mission Electronics     -       11,953       11,953       $ 38,640     $ 39,736     $ 78,376                             Contract Types / Revenue Recognition Timing                         Percentage of completion contracts   $ -     $ 22,570     $ 22,570   Goods or services transferred at a point of sale     38,640       17,166       55,806       $ 38,640     $ 39,736     $ 78,376       Year Ended April 30, 2023       Professional Services     Aerospace Products     Total   Geographical Markets                         North America   $ 38,041     $ 30,503     $ 68,544   Europe     -       1,095       1,095   Middle East     -       4,614       4,614   Asia and Other     -       929       929       $ 38,041     $ 37,141     $ 75,182                             Major Product Lines                         Casino Gaming Revenue   $ 30,564     $ -     $ 30,564   Sportsbook Revenue     2,738       -       2,738   Casino Non-Gaming Revenue     4,456       -       4,456   Other Professional Services     283       -       283   Aircraft Modification     -       24,016       24,016   Aircraft Avionics     -       2,324       2,324   Special Mission Electronics     -       10,801       10,801       $ 38,041     $ 37,141     $ 75,182                             Contract Types / Revenue Recognition Timing                         Percentage of completion contracts   $ -     $ 22,500     $ 22,500   Goods or services transferred at a point of sale     38,041       14,641       52,682       $ 38,041     $ 37,141     $ 75,182

v3.24.2

Note 3 - Accounts Receivable, Net, Contract Asset and Contract Liability (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]	2024     2023   Accounts Receivable, net   $ 5,776     $ 3,793   Contract Asset     3,812       1,893   Contract Liability     5,922       6,031

v3.24.2

Note 4 - Inventory (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	2024     2023   Parts and raw material   $ 6,111     $ 5,704   Work in process     3,349       3,194   Finished goods     62       49   Total Inventory, net of allowance   $ 9,522     $ 8,947

v3.24.2

Note 5 - Property, Plant and Equipment (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	2024     2023   Land   $ 4,224     $ 4,751   Building and improvements     48,190       47,867   Aircraft     5,599       8,515   Machinery and equipment     7,484       5,547   Office furniture and fixtures     14,389       13,881   Leasehold improvements     4,032       4,032         83,918       84,593   Accumulated depreciation     (24,331 )     (25,526 ) Total property, plant and equipment   $ 59,587     $ 59,067

v3.24.2

Note 6 - Debt (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Debt [Table Text Block]	Promissory Notes   2024     2023                     Bank line of credit, available LOC $2.0 million interest at 8.4% due on demand, secured by a first and second position on all assets of the Company.     -       -       $ -     $ -                     Long-Term Debt                                   Note payable, interest at 6.25%. This note was paid in full in May 2023.   $ -     $ 158                     Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75% due March 2029, secured by buildings and improvements with a net book value of $680.     787       946                     Note payable, interest at Secured Overnight Financing Rate (SOFR) plus 1.75%. This note was paid in full in March 2024.     -       434                     Note payable, interest at 5.32%, this note matures in December 2027, with a balloon payment of $19,250, secured by all of BHCMC's assets and compensation due under the State Management Contract.     29,167       30,916                     Note payable, interest at 5.75%, this note matures October 2026, secured by all of BHCMC's assets and compensation due under the State Management Contract.     7,471       10,173                     Note payable, interest at 4.35%, due March 2029, secured by Aircraft Security Agreements with a net book value of $701.     887       1,046                     Note payable, interest at 8.13%, due October 2025, secured by equipment with a net book value of $31.     34       44                           38,346       43,717   Less: Origination fees     236       312         38,110       43,405   Less: Current maturities     4,866       4,987       $ 33,244     $ 38,418
Schedule of Maturities of Long-Term Debt [Table Text Block]	Year Ending April 30   Amount   2025   $ 4,948   2026     4,939   2027     3,866   2028     2,099   2029     2,077   Thereafter     20,417       $ 38,346

v3.24.2

Note 7 - Lease Right-to-use (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Lessee, Finance Lease, Right of Use Assets [Table Text Block]	April 30, 2024     April 30, 2023   Finance lease right-to-use assets   $ 3,781     $ 3,781   Less accumulated depreciation     889       700   Total   $ 2,892     $ 3,081
Finance Lease, Liability, to be Paid, Maturity [Table Text Block]	2025   $ 139   2026     116   2027     118   2028     120   2029     123   Thereafter     12,705   Total minimum lease payments     13,321   Less amount representing interest     9,923   Present value of net minimum lease payments     3,398   Less current maturities of finance lease liability     25   Finance lease liability, net of current maturities   $ 3,373
Lease, Cost [Table Text Block]	April 30, 2024     April 30, 2023   Finance lease cost:                 Amortization of right-of-use assets     $ 189       $ 188   Interest on lease liabilities     186       188   Total finance lease cost     $ 375       $ 376                         April 30, 2024     April 30, 2023   Weighted average remaining lease term - Financing leases   44 years     43 years   Weighted average discount rate - Financing leases     5.8%       5.8%

v3.24.2

Note 8 - Acquisition (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Purchase price summary:         Cash paid at closing   $ 2,375   Present value of final escrow liability     228   Present value of earn-out liability     257       $ 2,860             Accounting summary:         Building   $ 1,510   Equipment     930   Intangibles     205   Inventory     230   Other     (15 )     $ 2,860

v3.24.2

Note 9 - Income Taxes (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	April 30, 2024   April 30, 2023   Deferred tax liabilities:             Deferred compensation, restricted stock $ (7 ) $ (166 ) Total deferred tax liabilities   (7 )   (166 )               Deferred tax assets:             Depreciation and amortization   98     325   Research and development   1,319     738   Accounts receivable allowance   13     55   Inventory and other allowances   97     74   Lease right-to-use   144     114   Compensation accruals   72     156   Jackpot reserves   183     177   Total deferred tax assets   1,926     1,639                 Less valuation allowance   -     -   Net deferred tax asset $ 1,919   $ 1,473
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	April 30, 2024     April 30, 2023   Statutory federal income tax rate expense     21.00 %     21.00 % State income tax, net of federal benefits     5.97 %     5.90 % Permanent tax     0.63 %     2.19 % Other     -2.28 %     1.72 %       25.32 %     30.81 %                   Income tax expense:                 Deferred income tax (benefit)   $ (446 )   $ 297   Current income tax     4,690       1,714   Total income tax expense   $ 4,244     $ 2,011

v3.24.2

Note 11 - Stock Options and Incentive Plans (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Number of Shares     Weighted Average Grant Date Fair Value   Total shares issued (2019 - 2024)     8,200,000     $ 0.43   Forfeited, in prior periods     (100,000 )   $ 0.40   Forfeited during the year ended April 30, 2023     (875,000 )   $ 0.40   Forfeited during the year ended April 30, 2024     (1,525,000 )   $ 0.40   Total     5,700,000     $ 0.45   Vested shares     2,350,000     $ 0.56   Non-vested shares     3,350,000     $ 0.41

v3.24.2

Note 12 - Stock Repurchase Program (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Class of Treasury Stock [Table Text Block]	Period   Total Number of Shares Purchased     Average Price Paid per Share     Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs     Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs   Shares purchased in prior periods     3,290,426     $ 0.41       3,290,426     $ 2,655   Quarter ended July 31, 2022 (a)     1,639     $ 0.84       1,639     $ 2,653   Quarter ended October 31, 2022 (a)     150     $ 0.70       150     $ 2,653   Quarter ended January 31, 2023 (a)     85,307     $ 0.68       85,307     $ 2,595   Quarter ended April 30, 2023 (a)     2,000     $ 0.68       2,000     $ 2,594   Increase in program authorization July 2023     -     $ -       -     $ 7,594   Quarter ended July 31, 2023 (a)     6,863,789     $ 0.73       6,863,789     $ 2,560   Quarter ended October 31, 2023 (a)     2,300     $ 0.73       2,300     $ 2,558   Quarter ended January 31, 2024 (a)     24,744     $ 0.73       24,744     $ 2,540   Quarter ended April 30, 2024 (a)     5,000     $ 0.79       5,000     $ 2,536   Total     10,275,355     $ 0.63       10,275,355

v3.24.2

Note 16 - Segment Reporting and Sales by Major Customer (Tables)	12 Months Ended
	Apr. 30, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Year Ended April 30, 2024   Gaming     Aircraft Modification     Aircraft Avionics     Special Mission Electronics     Other     Total   Revenues from customers   $ 38,577     $ 25,061     $ 2,722     $ 11,953     $ 63     $ 78,376   Interest expense     2,122       229       -       63       33       2,447   Depreciation and amortization     3,014       2,790       20       125       119       6,068   Year Ended April 30, 2023   Gaming     Aircraft Modification     Aircraft Avionics     Special Mission Electronics     Other     Total   Revenues from customers   $ 37,758     $ 24,016     $ 2,324     $ 10,801     $ 283     $ 75,182   Interest expense     2,419       251       -       47       26       2,743   Depreciation and amortization     2,742       2,718       11       145       282       5,898
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]	2024     2023   Aerospace Products – one customer in 2024 and 2023     15.2 %     14.3 % Professional Services     -       -

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended
	Apr. 30, 2024 USD ($)	Apr. 30, 2023 USD ($)
Duration after Which Invoices Are Considered to Be Doubtful (Day)	90 days
Duration During Which Inventory If Inactive Taken as Obsolete (Year)	5 years
Depreciation	$ 4,110	$ 3,999
Period for Payment Due (Day)	30 days
Cash, Uninsured Amount	$ 1,955	17,021
Research and Development Expense	823	1,065
Advertising Expense	$ 4,044	4,231
Number of Operating Segments	2
Kansas Lottery Commission and the Kansas Racing and Gaming Commission [Member]
Accrued Liabilities	$ 2,436	2,224
Kansas Expanded Lottery Act Management Contract Privilege Fee [Member]
Finite-Lived Intangible Assets, Gross	5,500	5,500
Gaming Equipment [Member]
Finite-Lived Intangible Assets, Gross	$ 7,215	6,646
Finite-Lived Intangible Asset, Useful Life (Year)	3 years
JET Autopilot Intellectual Property [Member]
Finite-Lived Intangible Assets, Gross	$ 1,417	1,417
Other Miscellaneous Long-Term Assets [Member]
Finite-Lived Intangible Assets, Gross	128
Amortization of Intangible Assets	$ 751	715
Supplemental Type Certificates [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	7 years
Amortization of Intangible Assets	$ 1,207	$ 1,184

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies - Property and Related Depreciation (Details)	Apr. 30, 2024
Building and Building Improvements [Member]
Useful life (Year)	39 years
Aircraft [Member]
Useful life (Year)	5 years
Machinery and Equipment [Member]
Useful life (Year)	5 years
Furniture and Fixtures [Member]
Useful life (Year)	5 years

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Kansas Expanded Lottery Act Management Contract Privilege Fee [Member]
Other assets intangible	$ 5,500	$ 5,500
Less amortized costs	5,218	4,795
Other assets net intangible, net	282	705
Gaming Equipment [Member]
Other assets intangible	7,215	6,646
Less amortized costs	6,406	6,078
Other assets net intangible, net	809	568
JET Autopilot Intellectual Property [Member]
Other assets intangible	1,417	1,417
Less amortized costs	1,417	1,417
Other assets net intangible, net	$ 0	$ 0

v3.24.2

Note 1 - Nature of Operations, Organization and Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Net income attributable to Butler National Corporation	$ 12,512	$ 4,516
Weighted average common shares outstanding (in shares)	70,435,752	76,456,631
Dilutive effect of non-qualified stock option plans (in shares)	0	0
Weighted average common shares outstanding, assuming dilution (in shares)	70,435,752	76,456,631
Potential common shares if all options were exercised and shares issued (in shares)	70,435,752	76,456,631
Basic earnings per common share (in dollars per share)	$ 0.18	$ 0.06
Diluted earnings per common share (in dollars per share)	$ 0.18	$ 0.06

v3.24.2

Note 2 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Revenues	$ 78,376	$ 75,182
Percentage of Completion Contracts [Member]
Revenues	22,570	22,500
Transferred at Point in Time [Member]
Revenues	55,806	52,682
Casino [Member]
Revenues	29,441	30,564
Sportsbook [Member]
Revenues	4,585	2,738
Casino Non-gaming [Member]
Revenues	4,551	4,456
Professional Services [Member]
Revenues	63	283
Aircraft Modification [Member]
Revenues	25,061	24,016
Aircraft Avionics [Member]
Revenues	2,722	2,324
Special Mission Electronics [Member]
Revenues	11,953	10,801
Professional Services [Member]
Revenues	38,640	38,041
Professional Services [Member] | Percentage of Completion Contracts [Member]
Revenues	0	0
Professional Services [Member] | Transferred at Point in Time [Member]
Revenues	38,640	38,041
Professional Services [Member] | Casino [Member]
Revenues	29,441	30,564
Professional Services [Member] | Sportsbook [Member]
Revenues	4,585	2,738
Professional Services [Member] | Casino Non-gaming [Member]
Revenues	4,551	4,456
Professional Services [Member] | Professional Services [Member]
Revenues	63	283
Professional Services [Member] | Aircraft Modification [Member]
Revenues	0	0
Professional Services [Member] | Aircraft Avionics [Member]
Revenues	0	0
Professional Services [Member] | Special Mission Electronics [Member]
Revenues	0	0
Aerospace Products [Member]
Revenues	39,736	37,141
Aerospace Products [Member] | Percentage of Completion Contracts [Member]
Revenues	22,570	22,500
Aerospace Products [Member] | Transferred at Point in Time [Member]
Revenues	17,166	14,641
Aerospace Products [Member] | Casino [Member]
Revenues	0	0
Aerospace Products [Member] | Sportsbook [Member]
Revenues	0	0
Aerospace Products [Member] | Casino Non-gaming [Member]
Revenues	0	0
Aerospace Products [Member] | Professional Services [Member]
Revenues	0	0
Aerospace Products [Member] | Aircraft Modification [Member]
Revenues	25,061	24,016
Aerospace Products [Member] | Aircraft Avionics [Member]
Revenues	2,722	2,324
Aerospace Products [Member] | Special Mission Electronics [Member]
Revenues	11,953	10,801
North America [Member]
Revenues	65,069	68,544
North America [Member] | Professional Services [Member]
Revenues	38,640	38,041
North America [Member] | Aerospace Products [Member]
Revenues	26,429	30,503
Europe [Member]
Revenues	8,161	1,095
Europe [Member] | Professional Services [Member]
Revenues	0	0
Europe [Member] | Aerospace Products [Member]
Revenues	8,161	1,095
Middle East [Member]
Revenues	1,606	4,614
Middle East [Member] | Professional Services [Member]
Revenues	0	0
Middle East [Member] | Aerospace Products [Member]
Revenues	1,606	4,614
Asia [Member]
Revenues	3,540	929
Asia [Member] | Professional Services [Member]
Revenues	0	0
Asia [Member] | Aerospace Products [Member]
Revenues	$ 3,540	$ 929

v3.24.2

Note 3 - Accounts Receivable, Net, Contract Asset and Contract Liability (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Accounts Receivable, after Allowance for Credit Loss	$ 5,776	$ 3,793
Accounts Receivable, Allowance for Credit Loss	47	205
Contract with Customer, Asset, after Allowance for Credit Loss	3,812	1,893
Increase (Decrease) in Contract with Customer, Asset	1,919	423
Increase (Decrease) in Contract with Customer, Liability	(109)	5,211
Contract with Customer, Liability, Revenue Recognized	$ 4,323	$ 820

v3.24.2

Note 3 - Accounts Receivable, Net, Contract Asset and Contract Liability - Accounts Receivable, Net, Contract Asset and Contract Liability (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Accounts Receivable, net	$ 5,776	$ 3,793
Contract Asset	3,812	1,893
Contract Liability	$ 5,922	$ 6,031

v3.24.2

Note 4 - Inventory (Details Textual) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Inventory Valuation Reserves	$ 360	$ 275

v3.24.2

Note 4 - Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Parts and raw material	$ 6,111	$ 5,704
Work in process	3,349	3,194
Finished goods	62	49
Total Inventory, net of allowance	$ 9,522	$ 8,947

v3.24.2

Note 5 - Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Property, plant, and equipment, gross	$ 83,918	$ 84,593
Accumulated depreciation	(24,331)	(25,526)
Total property, plant and equipment	59,587	59,067
Land [Member]
Property, plant, and equipment, gross	4,224	4,751
Building and Building Improvements [Member]
Property, plant, and equipment, gross	48,190	47,867
Aircraft [Member]
Property, plant, and equipment, gross	5,599	8,515
Machinery and Equipment [Member]
Property, plant, and equipment, gross	7,484	5,547
Furniture and Fixtures [Member]
Property, plant, and equipment, gross	14,389	13,881
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 4,032	$ 4,032

v3.24.2

Note 6 - Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Notes payable	$ 38,346	$ 43,717
Less: Origination fees	236	312
Long-Term Debt	38,110	43,405
Less: Current maturities	4,866	4,987
Long-Term Debt, Excluding Current Maturities	33,244	38,418
Note Collateralized by Real Estate [Member]
Notes payable	0	158
Note Collateralized by Real Estate Due March 2029 [Member]
Notes payable	787	946
Note Two Collateralized by Real Estate Due March 2029 [Member]
Notes payable	0	434
Note Collateralized by Aircraft Security Agreement [Member]
Notes payable	887	1,046
Note Collateralized by Equipment Due October 2025 [Member]
Notes payable	34	44
Note Collateralized by Real Estate [Member]
Bank line of credit, available LOC $2.0 million interest at 8.4% due on demand, secured by a first and second position on all assets of the Company.	0	0
Long-Term Debt, Excluding Current Maturities	33,244	38,418
Notes Collateralized by BHCMC's Assets and Compensation Due under State Management Contract Due December 2027 [Member]
Notes payable	29,167	30,916
Note Collateralized By All Of BHCMC's Assets and Compensation due under the State Management Contract Due October 2026 [Member]
Notes payable	$ 7,471	$ 10,173

v3.24.2

Note 6 - Debt - Schedule of Debt (Details) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Note Collateralized by Real Estate [Member]
Interest rate	6.25%	6.25%
Note Collateralized by Real Estate Due March 2029 [Member]
Basis spread	1.75%	1.75%
Maturity date	Mar. 31, 2029	Mar. 31, 2029
Balloon payment	$ 680	$ 680
Note Two Collateralized by Real Estate Due March 2029 [Member]
Basis spread	1.75%	1.75%
Note Collateralized by Aircraft Security Agreement [Member]
Interest rate	4.35%	4.35%
Maturity date	Mar. 31, 2029	Mar. 31, 2029
Balloon payment	$ 701	$ 701
Note Collateralized by Equipment Due October 2025 [Member]
Interest rate	8.13%	8.13%
Maturity date	Oct. 31, 2025	Oct. 31, 2025
Balloon payment	$ 31	$ 31
Note Collateralized by Real Estate [Member]
Borrowing capacity	$ 2,000	$ 2,000
Interest rate	8.40%	8.40%
Notes Collateralized by BHCMC's Assets and Compensation Due under State Management Contract Due December 2027 [Member]
Interest rate	5.32%	5.32%
Maturity date	Dec. 31, 2027	Dec. 31, 2027
Balloon payment	$ 19,250	$ 19,250
Note Collateralized By All Of BHCMC's Assets and Compensation due under the State Management Contract Due October 2026 [Member]
Interest rate	5.75%	5.75%
Maturity date	Oct. 31, 2026	Oct. 31, 2026

v3.24.2

Note 6 - Debt - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
2025	$ 4,948
2026	4,939
2027	3,866
2028	2,099
2029	2,077
Thereafter	20,417
Long-Term Debt, Gross	$ 38,346	$ 43,717

v3.24.2

Note 7 - Lease Right-to-use (Details Textual)	Apr. 30, 2024
Casino, Hangar, and Office Space, Three [Member]
Lessee, Finance Lease, Term of Contract (Year)	50 years

v3.24.2

Note 7 - Lease Right-to-use - Finance Lease Right-of-use Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Finance lease right-to-use assets	$ 3,781	$ 3,781
Less accumulated depreciation	889	700
Total	$ 2,892	$ 3,081

v3.24.2

Note 7 - Lease Right-to-use - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
2025	$ 139
2026	116
2027	118
2028	120
2029	123
Thereafter, Finance Lease	12,705
Total minimum lease payments, Finance Lease	13,321
Less amount representing interest	9,923
Present value of net minimum lease payments	3,398
Less current maturities of finance lease liability	25	$ 145
Finance lease liability, net of current maturities	$ 3,373	$ 3,330

v3.24.2

Note 7 - Lease Right-to-use - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Amortization of right-of-use assets	$ 189	$ 188
Interest on lease liabilities	186	188
Total finance lease cost	$ 375	$ 376
Weighted average remaining lease term - Financing leases (Year)	44 years	43 years
Weighted average discount rate - Financing leases	5.80%	5.80%

v3.24.2

Note 8 - Acquisition (Details Textual) - KC Machine [Member] $ in Thousands	1 Months Ended
	Sep. 30, 2023 USD ($)
Business Combination, Consideration Transferred	$ 2,860
Payments to Acquire Businesses, Gross	2,375
Earn Out Liability [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 257

v3.24.2

Note 8 - Acquisition - Schedule of Acquisition (Details) - KC Machine [Member] $ in Thousands	1 Months Ended
	Sep. 30, 2023 USD ($)
Cash paid at closing	$ 2,375
Business Combination, Consideration Transferred	2,860
Building	1,510
Equipment	930
Intangibles	205
Inventory	230
Other	(15)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	2,860
Final Purchase Agreement Liability [Member]
Present value of final escrow liability	228
Earn Out Liability [Member]
Present value of final escrow liability	$ 257

v3.24.2

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Current Income Tax Expense (Benefit)	$ 4,690	$ 1,714
Current Federal Tax Expense (Benefit)	3,438	1,238
Current State and Local Tax Expense (Benefit)	1,252	$ 476
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	$ 0

v3.24.2

Note 9 - Income Taxes - Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2024	Apr. 30, 2023
Deferred tax liabilities:
Deferred compensation, restricted stock	$ (7)	$ (166)
Total deferred tax liabilities	(7)	(166)
Deferred tax assets:
Depreciation and amortization	(98)	(325)
Research and development	1,319	738
Accounts receivable allowance	13	55
Inventory and other allowances	97	74
Lease right-to-use	144	114
Compensation accruals	72	156
Jackpot reserves	183	177
Total deferred tax assets	1,926	1,639
Less valuation allowance	0	0
Net deferred tax asset	$ 1,919	$ 1,473

v3.24.2

Note 9 - Income Taxes - Reconciliation of the Federal Statutory Income Tax Rate to the Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Statutory federal income tax rate expense	21.00%	21.00%
State income tax, net of federal benefits	5.97%	5.90%
Permanent tax	0.63%	2.19%
Other	(2.28%)	1.72%
Effective Income Tax Rate Reconciliation, Percent	25.32%	30.81%
PROVISION FOR INCOME TAXES
Deferred income tax expense (benefit)	$ (446)	$ 297
Current Income Tax Expense (Benefit)	4,690	1,714
Total income tax expense	$ 4,244	$ 2,011

v3.24.2

Note 10 - Stockholders' Equity (Details Textual) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Oct. 31, 2023	Jul. 30, 2022	Apr. 30, 2024	Apr. 30, 2023
Stock Issued During Period, Shares, Employee Benefit Plan (in shares)				997,639
Stock Issued During Period, Value, Employee Benefit Plan				$ 783
Butler National Corporation 2016 Equity Incentive Plan [Member] | Director [Member]
Stock Issued During Period, Shares, Issued for Services (in shares)	300,000	400,000	300,000	400,000
Stock Issued During Period, Value, Issued for Services	$ 222	$ 352	$ 222	$ 352

v3.24.2

Note 11 - Stock Options and Incentive Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended			12 Months Ended
	Mar. 17, 2020	Apr. 12, 2019	Apr. 30, 2024	Oct. 31, 2023	Jul. 30, 2022	Apr. 30, 2024	Apr. 30, 2023	Nov. 30, 2016
Share-Based Payment Arrangement, Expense						$ 634	$ 915
Shares Issued, Value, Share-Based Payment Arrangement, Forfeited						427	206
Share-Based Payment Arrangement, Expense, Tax Benefit						$ 207	$ 709
Butler National Corporation 2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)								12,500,000
Stock Issued During Period, Value, Restricted Stock Award, Gross	$ 2,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)							0
Butler National Corporation 2016 Equity Incentive Plan [Member] | Director [Member]
Stock Issued During Period, Shares, Issued for Services (in shares)				300,000	400,000	300,000	400,000
Shares Issued, Price Per Share (in dollars per share)				$ 0.74	$ 0.88
Stock Issued During Period, Value, Issued for Services				$ 222	$ 352	$ 222	$ 352
Butler National Corporation 2016 Equity Incentive Plan [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	5,000,000	2,500,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares)			1,650,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares)			850,000			1,525,000	875,000
Share Price (in dollars per share)	$ 0.41
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)		5 years
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount							$ 251
Butler National Corporation 2016 Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)							1 year

v3.24.2

Note 11 - Stock Options and Incentive Plans - Restricted Stock Options Activity (Details) - $ / shares	12 Months Ended		37 Months Ended
	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2022
Outstanding, shares (in shares)			8,200,000
Outstanding, weighted average fair value (in dollars per share)			$ 0.43
Forfeited, shares (in shares)	(1,525,000)	(875,000)	(100,000)
Forfeited, weighted average fair value (in dollars per share)	$ 0.4	$ 0.4	$ 0.4
Outstanding, shares (in shares)	5,700,000
Outstanding, weighted average fair value (in dollars per share)	$ 0.45
Vested shares (in shares)	2,350,000
Vested shares, weighted average fair value (in dollars per share)	$ 0.56
Non-vested shares (in shares)	3,350,000
Non-vested shares, weighted average fair value (in dollars per share)	$ 0.41

v3.24.2

Note 12 - Stock Repurchase Program (Details Textual) - USD ($) $ in Thousands	Apr. 30, 2024	[1]	Jan. 31, 2024	[1]	Oct. 31, 2023	[1]	Jul. 31, 2023		Jul. 30, 2023	Apr. 30, 2023	[1]	Jan. 31, 2023	[1]	Oct. 31, 2022	[1]	Jul. 31, 2022	[1]	Apr. 30, 2022
Share Repurchase Program, Authorized, Amount							$ 9,000		$ 4,000
Share Repurchase Program, Remaining Authorized, Amount	$ 2,536		$ 2,540		$ 2,558		$ 2,560	[1]		$ 2,594		$ 2,595		$ 2,653		$ 2,653		$ 2,655
[1] These shares of common stock were purchased through a private transaction

v3.24.2

Note 12 - Stock Repurchase Program - Schedule of Stock Purchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																72 Months Ended	96 Months Ended
	Apr. 30, 2024	[1]	Jan. 31, 2024	[1]	Oct. 31, 2023	[1]	Jul. 31, 2023		Apr. 30, 2023	[1]	Jan. 31, 2023	[1]	Oct. 31, 2022	[1]	Jul. 31, 2022	[1]	Apr. 30, 2022	Apr. 30, 2024
Number of Shares Purchased (in shares)	5,000		24,744		2,300		6,863,789	[1]	2,000		85,307		150		1,639		3,290,426	10,275,355
Average Price Paid per Share (in dollars per share)	$ 0.79		$ 0.73		$ 0.73		$ 0.73	[1]	$ 0.68		$ 0.68		$ 0.7		$ 0.84		$ 0.41	$ 0.63
Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in shares)	5,000		24,744		2,300		6,863,789	[1]	2,000		85,307		150		1,639		3,290,426	10,275,355
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan or Programs	$ 2,536		$ 2,540		$ 2,558		$ 2,560	[1]	$ 2,594		$ 2,595		$ 2,653		$ 2,653		$ 2,655	$ 2,536	[1]
Increase in program authorization July 2023							$ 7,594
[1] These shares of common stock were purchased through a private transaction

v3.24.2

Note 14 - Related-party Transactions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended																12 Months Ended		72 Months Ended	96 Months Ended
	Jul. 20, 2023	Apr. 30, 2024		Jan. 31, 2024	[1]	Oct. 31, 2023	[1]	Jul. 31, 2023	[1]	Apr. 30, 2023		Jan. 31, 2023	[1]	Oct. 31, 2022	[1]	Jul. 31, 2022	[1]	Apr. 30, 2024	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2024
Shares Acquired, Average Cost Per Share (in dollars per share)		$ 0.79	[1]	$ 0.73		$ 0.73		$ 0.73		$ 0.68	[1]	$ 0.68		$ 0.7		$ 0.84				$ 0.41	$ 0.63
Director David Hayden [Member] | Consulting Fees [Member]
Related Party Transaction, Amounts of Transaction																		$ 135	$ 135
Edgar Law Firm LLC [Member]
Related Party Transaction, Amounts of Transaction																		73	113
Chief Executive Officer [Member]
Accrued Liabilities, Current		$ 0								$ 244								$ 0	$ 244		$ 0
Shares Granted, Shares, Share-based Payment Arrangement, Forfeited (in shares)																		1,100,000
Severance Costs	$ 1,800
Stock Repurchased During Period, Shares (in shares)	1,933,402
Shares Acquired, Average Cost Per Share (in dollars per share)	$ 0.739
Vice President [Member]
Shares Granted, Shares, Share-based Payment Arrangement, Forfeited (in shares)																			800,000
Severance Costs	$ 2,700
Stock Repurchased During Period, Shares (in shares)	3,956,267
Shares Acquired, Average Cost Per Share (in dollars per share)	$ 0.739
Wayne Stewart [Member]
Compensation Expense, Excluding Cost of Good and Service Sold																		$ 315	$ 303
Craig Stewart [Member]
Compensation Expense, Excluding Cost of Good and Service Sold																		0	331
Jeff Shinkle [Member]
Compensation Expense, Excluding Cost of Good and Service Sold																		$ 162	$ 254
[1] These shares of common stock were purchased through a private transaction

v3.24.2

Note 15 - 401(k) Profit Sharing Plan (Details Textual) $ in Thousands	12 Months Ended
	Apr. 30, 2024 USD ($)	Apr. 30, 2023 USD ($)
Number of Days of Service Eligible to Participate in Plan (Day)	30 days
Number of Entry Dates per Calendar Year to Participate in Plan	2
Defined Contribution Plan Matching Contribution, as Percent of Every Pretax Dollar	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	6.00%
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	100.00%
Defined Contribution Plan, Cost	$ 750	$ 783

v3.24.2

Note 16 - Segment Reporting and Sales by Major Customer (Details Textual)	12 Months Ended
	Apr. 30, 2024
Number of Operating Segments	2
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | The Five Aerospace Customers [Member]
Concentration Risk, Percentage	28.50%
Number of Major Customers	5
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Top Customer [Member]
Concentration Risk, Percentage	15.20%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Next Top Four Customers [Member] | Minimum [Member]
Concentration Risk, Percentage	1.90%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Next Top Four Customers [Member] | Maximum [Member]
Concentration Risk, Percentage	5.80%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage	42.50%
Number of Major Customers	1

v3.24.2

Note 16 - Segment Reporting and Sales by Major Customer - Professional Services (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Revenues	$ 78,376	$ 75,182
Interest expense	2,447	2,743
Depreciation and amortization	6,068	5,898
Gaming [Member]
Revenues	38,577	37,758
Interest expense	2,122	2,419
Depreciation and amortization	3,014	2,742
Aircraft Modification [Member]
Revenues	25,061	24,016
Interest expense	229	251
Depreciation and amortization	2,790	2,718
Aircraft Avionics [Member]
Revenues	2,722	2,324
Interest expense	0	0
Depreciation and amortization	20	11
Special Mission Electronics [Member]
Revenues	11,953	10,801
Interest expense	63	47
Depreciation and amortization	125	145
Product and Service, Other [Member]
Revenues	63	283
Interest expense	33	26
Depreciation and amortization	$ 119	$ 282

v3.24.2

Note 16 - Segment Reporting and Sales by Major Customer - Schedule of Revenue by Major Customers by Reporting Segments (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Aerospace Products [Member]
Concentration risk percentage	15.20%	14.30%
Professional Services [Member]
Concentration risk percentage	0.00%	0.00%

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