(3) Account Receivable, Contract Assets, and Contract Liabilities

Accounts Receivable

The following provides further details on the balance sheet accounts of accounts receivable, contract assets and contract liabilities from contracts with customers:

 Schedule of Accounts Receivable, Contract Assets and Contract Liabilities

Contract Assets

Significant changes in the contract assets balances during the period are as follows:

 Schedule of Significant Changes in Contract Assets

Contract assets include unbilled amounts typically resulting from arrangements whereby the right to payment is conditional on completing additional tasks or services for a performance obligation. The increase in contract assets from the prior year is primarily a result of consulting services projects for which revenue was recognized in the prior year yet billed in the current year including two Bill-and-Hold agreements for $529,000. No impairments to contract assets were incurred during the fiscal years ended April 30, 2025 and 2024, respectively.

Contract Liabilities

Significant changes in the contract liabilities balances during the period are as follows:

 Schedule of Significant Changes in Contract Liabilities

Contract liabilities consist of amounts invoiced to and collected from customers in excess of revenue recognized. The decrease in contract liabilities from April 30, 2024 is primarily due to recognizing revenue on the DOE Phase II contract for which the Company was paid in prior periods.