CONTRACT (LIABILITIES) ASSETS, NET

6 Months Ended

Oct. 31, 2022

Contractors [Abstract]

Long-Term Contracts or Programs Disclosure [Text Block]

NOTE C – CONTRACT (LIABILITIES) ASSETS, NET

At October 31, 2022 and April 30, 2022, contract (liabilities) assets, net, consisted of the following:

	October 31, 2022			April 30, 2022
				Revised
	(In thousands)
Contract Assets	$	9,473		$	8,857
Contract Liabilities		(16,976	)		(11,098	)
Net (liability) asset	$	(7,503	)	$	(2,241	)

Such amounts represent revenue recognized on long-term contracts that have not been billed at the balance sheet dates or represent a liability for amounts billed in excess of the revenue recognized. Amounts are billed to customers pursuant to contract terms. In general, the recorded amounts will be billed and collected or revenue recognized within twelve months of the balance sheet dates. Revenue on these long-term contracts are accounted for on the percentage-of-completion (“POC”) basis. During the three and six months ended October 31, 2022, revenue recognized under POC contracts was approximately $8.7 million and $16.6 million, respectively. During the three and six months ended October 31, 2021, revenue recognized under POC contracts was approximately $12.2 million and $24.6 million, respectively. If contract losses are anticipated, a loss provision is recorded for the full amount of such losses when they are determinable. Contract losses of approximately $737,000 and $2.0 million were recorded for the three and six months ended October 31, 2022, respectively. Contract losses of approximately $31,000 and $47,000 were recorded for the three and six months ended October 31, 2021, respectively.

Revision of Previously Issued Financial Statements

During the preparation of our condensed consolidated financial statements for the second quarter ended October 31, 2022, the Company identified an immaterial error in relation to previously reported amounts in the Form 10-K and in the Quarterly Report on Form 10-Q for the three months ended July 31, 2022, filed on September 14, 2022, with the Securities and Exchange Commission (the “Q1 2023 Form 10-Q”). As a result, the Company is revising its consolidated financial statements below for the periods impacted.

The table below sets forth the consolidated balance sheets and consolidated statements of cash flows, including the balances originally as filed, adjustments, and the revised balances for each revised period (in thousands):

	April 30, 2022							April 30, 2021						July 31, 2022
	As Filed		Adjustment			Revised		As Filed		Adjustment		Revised		As Filed		Adjustment			Revised
Consolidated Balance Sheets:
Contract Assets	$	9,977	$	(1,120	)	$	8,857	$	12,640	$	1,820	$	14,460	$	11,750	$	(1,741	)	$	10,009
Total Current Assets		57,130		(1,120	)		56,010		59,371		1,820		61,191		54,402		(1,741	)		52,661
Total Assets		85,880		(1,120	)		84,760		96,708		1,820		98,528		82,833		(1,741	)		81,092
Contract Liabilities		12,218		(1,120	)		11,098		10,692		1,820		12,512		12,837		(1,741	)		11,096
Total Current Liabilities		22,981		(1,120	)		21,861		18,789		1,820		20,609		23,498		(1,741	)		21,757
Total Liabilities		39,192		(1,120	)		38,072		41,299		1,820		43,119		39,151		(1,741	)		37,410

Consolidated Statements of Cash Flows:
Changes in Operating Assets & Liabilities
Contract Assets	$	2,306	$	2,940		$	5,246		$	(2,180	)	$	(2,315	)	$	(4,495	)	*	*	*
Contract Liabilities		1,526		(2,940	)		(1,414	)		7,185			2,315			9,500		*	*	*
Net cash provided by operating activities		4,036		-			4,036			12,157			-			12,157		*	*	*
* No effect on the Company's quarterly report for the period ended July 31, 2022 as the Statement of Cash Flows are condensed

The table below sets forth the disclosures in Note 3 to the consolidated financial statements in the Form 10-K and Note C to the condensed consolidated financial statements in the Q1 2023 Form 10-Q, including the balances originally as filed, adjustments, and the revised balances for each revised period (in thousands):

	April 30, 2022									April 30, 2021									July 31, 2022
	As Filed			Adjustment			Revised			As Filed			Adjustment			Revised			As Filed			Adjustment			Revised
Contract Assets	$	9,977		$	(1,120	)	$	8,857		$	12,640		$	1,820		$	14,460		$	11,750		$	(1,741	)	$	10,009
Contract Liabilities		(12,218	)		1,120			(11,098	)		(10,692	)		(1,820	)		(12,512	)		(12,837	)		1,741			(11,096	)
Net (liability) asset	$	(2,241	)	$	-		$	(2,241	)	$	1,948		$	-		$	1,948		$	(1,087	)	$	-		$	(1,087	)

The table below sets forth the segment information disclosures in Note 13 to the consolidated financial statements in the Form 10-K and Note G to the condensed consolidated financial statements in the Q1 2023 Form 10-Q, including the balances originally as filed, adjustments, and the revised balances for each revised period (in thousands):

	April 30, 2022							April 30, 2021						July 31, 2022
	As Filed		Adjustment			Revised		As Filed		Adjustment		Revised		As Filed		Adjustment			Revised
Identifiable assets:
FEI-NY	$	42,008	$	(1,120	)	$	40,888	$	45,552	$	1,820	$	47,372	$	42,433	$	(1,741	)	$	40,692
Consolidated identifiable assets		85,880		(1,120	)		84,760		96,708		1,820		98,528		82,833		(1,741	)		81,092