What changed in this filing

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Item 1. Financial Statements

2021-03-17 compared with 2020-12-15 · 267 added, 317 removed, 405 unchanged (59% of the section changed)

Financial Statements

unaudited financial statements for the three-and six-month periods ended October 31, 2020, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

October 31, 2020

unaudited financial statements for the three- and nine-month period ended January 31, 2021, are attached hereto.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

January 31, 2021

April 30, 2020

8 unchanged sentences

Total Current Assets

Property and Equipment, net, at cost

Property and Equipment, net

Investment in Limited Land Partnership, at cost

3 unchanged sentences

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

BALANCE SHEETS

October 31, 2020

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

January 31, 2021

April 30, 2020

4 unchanged sentences

Accrued expenses

Payroll and other expense

Income tax payable

7 unchanged sentences

Stockholders’

Convertible preferred stock, 1,000,000 shares authorized, Series

1—noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding

Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and

Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding

Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding

Additional paid-in capital

3 unchanged sentences

Total Stockholders’

TOTAL LIABILITIES AND STOCKHOLDERS’

TOTAL LIABILITES AND STOCKHOLDERS’

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2021 AND 2020

Cost of Goods Sold

Operating Expenses

and Administrative

Paid to Related Parties

General and Administrative

Rent Paid to Related Parties

Total Operating Expenses

Income From Operations

Other Income (Expense)

and Interest Income

Gain (Loss) on Equity Securities

on Investments

on Sale of Assets

Income Before Provisions

for Income Taxes

Provisions for Income

Tax (Benefit) Expense

Income Tax Expense

Dividend and Interest Income

Unrealized Gain on equity securities

Gain on Investments

Gain on Sale of Assets

Total Other Income

Income Before Provisions for Income Taxes

Provisions for Income Taxes:

Current Expense

Deferred Tax Expense (Benefit)

Total Income Tax Expense

Income Per Share of Common Stock

2 unchanged sentences

RISK INDUSTRIES, INC.

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

STATEMENT OF COMPREHENSIVE INCOME

THE THREE AND NINE MONTHS ENDED JANUARY 31.

2021 AND 2020

Other Comprehensive Income, Net of Tax

Unrealized gain (loss) on debt securities:

Unrealized holding gains (losses) arising during period

Income tax benefit (expense) related to other comprehensive income

Other Comprehensive Income (Loss)

Unrealized gain on debt securities:

Unrealized holding gains arising during period

Income tax (expense) related to other comprehensive income

Other Comprehensive Income

Comprehensive Income

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’

THE THREE MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE THREE MONTHS ENDED JANUARY 31, 2021 AND 2020

Preferred Stock

Balances, July 31, 2019

Purchases of common stock

Dividend declared at $0.40 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Preferred Stock

Balances, July 31, 2020

Purchases of Common Stock

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Unrealized gain, net of tax effect

Balances, January 31, 2021

Preferred Stock

Balances, October 31, 2019

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31, 2020

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’

THE THREE MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE THREE MONTHS ENDED JANUARY 31, 2021 AND 2020

Treasury Stock

9 unchanged sentences

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’

THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE NINE MONTHS ENDED JANUARY 31, 2021 AND 2020

Preferred Stock

2 unchanged sentences

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2019

Unrealized gain, net of tax effect

Balances, January 31, 2021

Preferred Stock

2 unchanged sentences

Dividend declared at $0.40 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Unrealized (loss), net of tax effect

Balances, January 31, 2020

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’

THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE NINE MONTHS ENDED JANUARY 31, 2021 AND 2020

Treasury Stock

9 unchanged sentences

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTSOF CASH FLOWS

THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED JANUARY 31,2021 AND 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

1 unchanged sentence

Depreciation and amortization

(Gain) loss on sale of investments

(Gain) on sale of investments

Impairments on investments

Unrealized (gain) loss on equity securities

Unrealized (gain) on equity investments

Reserve for bad debts

1 unchanged sentence

Deferred income taxes

(Gain) loss on sale of assets

PPP loan debt forgiveness

(Gain) on sale of assets

Net book value of assets retired

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

Prepaid expenses and projects in process

Prepaid expenses

Other receivables

25 unchanged sentences

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1 Unaudited Interim Financial Statements

TO CONDENSED FINANCIAL STATEMENTS

Interim Financial Statements

accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all

of the information and footnotes required by generally accepted accounting principles for complete financial statements.

suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included

in the Company’s April 30, 2020 annual report on Form 10-K.

In the opinion of management, all adjustments, consisting only

of normal recurring adjustments considered necessary for a fair presentation, have been included.

Operating results for any quarter

are not necessarily indicative of the results for any other quarter or for the full year.

Estimates —The preparation of these financial statements requires the use of estimates and assumptions including the

suggested that these unaudited condensed financial statements be read in conjunction with the financial statements and notes thereto

included in the Company’s April 30, 2020 annual report on Form 10-K.

In the opinion of management, all adjustments, consisting

only of normal recurring adjustments considered necessary for a fair presentation, have been included.

Operating results for any

quarter are not necessarily indicative of the results for any other quarter or for the full year.

Estimates —

The preparation of these financial statements requires the use of estimates and assumptions including the

carrying value of assets.

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are no other new accounting pronouncements that are expected to have a significant impact on our financial statements.

2 Investments

Company has investments in publicly traded equity securities, state and municipal debt securities, real estate investment trusts,

7 unchanged sentences

Dividend and interest income are reported

of October 31, 2020 and April 30, 2020, investments consisted of the following:

of January 31, 2021 and April 30, 2020, investments consisted of the following:

Investments at

October 31, 2020

January 31, 2021

Municipal bonds

21 unchanged sentences

are periodically evaluated to determine if impairment changes are required.

As a result of this standard, management recorded

an impairment loss of $52,000 for the quarter, and recorded a loss of $79,000 for the six months ended October 31, 2020.

the corresponding periods last year, management recorded an impairment loss of $7,000 for the quarter ended October 31, 2019 and

an impairment loss of $41,000 was recorded for the six-months ended October 31, 2019.

As a result of this standard, management did not need

to record an impairment loss for the quarter, but recorded a loss of $79,000 for the nine months ended January 31, 2021.

the corresponding periods last year, management did not need to record an impairment loss for the quarter ended January 31, 2020

but did record an impairment loss of $41,000 for the nine-months ended January 31, 2020.

Company’s investments are actively traded in the stock and bond markets.

1 unchanged sentence

when a sale happens.

For the quarter ended October 31, 2020 the Company had sales of equity securities which yielded gross realized

For the quarter ended January 31, 2021 the Company had sales of equity securities which yielded gross realized

gains of $288,000 and gross realized losses of $35,000.

1 unchanged sentence

realized gains, but gross realized losses of $3,000 were recorded.

As for the six-months ended October 31, 2020 the Company had

As for the nine-months ended January 31, 2021 the Company had

sales of equity securities which yielded gross realized gains of $575,000 and gross realized losses of $272,000.

six-month period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $6,000 were recorded.

During the quarter ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $67,000

and $57,000, respectively, while sales of debt securities did not yield any gross realized gains or losses.

During the six-months

ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $220,000 and $161,000, respectively,

as well as gross realized gains and losses on debt securities of $3,000 and $3,000, respectively.

The gross realized loss numbers

include the impaired figures listed in the previous paragraph.

following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”,

nine-month period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $9,000 were recorded.

During the quarter ending January 31, 2020, the Company recorded gross realized gains and losses on equity securities of $97,000

and $17,000, respectively, while sales of debt securities did not yield any gross realized gains, but gross realized losses of

$2,000 were recorded.

During the nine-months ending January 31, 2020, the Company recorded gross realized gains and losses on

equity securities of $317,000 and $178,000, respectively, as well as gross realized gains and losses on debt securities of $3,000

and $5,000, respectively.

The gross realized loss numbers include the impaired figures listed in the previous paragraph.

following tables show the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”,

aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position

at October 31, 2020 and April 30, 2020, respectively.

Loss Breakdown by Investment Type at October 31, 2020

at January 31, 2021 and April 30, 2020, respectively.

Loss Breakdown by Investment Type at January 31, 2021

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

3 unchanged sentences

12 months or greater

Unrealized Loss

Municipal bonds

5 unchanged sentences

Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company

does not consider these investments to be other-than-temporarily impaired at October 31, 2020.

does not consider these investments to be other-than-temporarily impaired at January 31, 2021.

Equity Securities and REITs

4 unchanged sentences

to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments

to be other-than-temporarily impaired at October 31, 2020.

3 Inventories

at October 31, 2020 and April 30, 2020 consisted of the following:

to be other-than-temporarily impaired at January 31, 2021.

at January 31, 2021 and April 30, 2020 consisted of the following:

Raw materials

3 unchanged sentences

Inventories, net

4 Business Segments

following is financial information relating to industry segments:

20 unchanged sentences

Total capital expenditures

October 31, 2020

January 31, 2021

April 30, 2020

4 unchanged sentences

Corporate general

5 Earnings per Share

and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are:

the three months ended October 31, 2020

For the three months ended January 31, 2021

(Denominator)

of dilutive Convertible Preferred Stock

the six months ended October 31, 2020

Effect of dilutive Convertible Preferred Stock

For the three months ended January 31, 2020

(Denominator)

of dilutive Convertible Preferred Stock

the three months ended October 31, 2019

Effect of dilutive Convertible Preferred Stock

For the nine months ended January 31, 2021

(Denominator)

of dilutive Convertible Preferred Stock

the six months ended October 31, 2019

Effect of dilutive Convertible Preferred Stock

For the nine months ended January 31, 2020

(Denominator)

of dilutive Convertible Preferred Stock

6 Retirement Benefit Plan

Effect of dilutive Convertible Preferred Stock

January 1, 1998, the Company adopted the George Risk Industries, Inc.

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Matching contributions by the Company of approximately $16,000 and $14,000 were paid during each quarter ending

October 31, 2020 and 2019, respectively.

January 31, 2021 and 2020, respectively.

Likewise, the Company paid matching contributions of approximately $46,000 and $23,000

during each six-month period ending October 31, 2020 and 2019, respectively.

7 Fair Value Measurements

carrying value of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair

value due to their short term nature.

The fair value of our investments is determined utilizing market based information.

value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date.

When determining the fair value measurements for assets and liabilities, which are

required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the

market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent

risk, transfer restrictions, and credit risk.

during each nine-month period ending January 31, 2021 and 2020, respectively.

Value Measurements

accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received

from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement

When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value,

we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions

that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

13 unchanged sentences

and Marketable Securities

of October 31, 2020, our investments consisted of money markets, publicly traded equity securities, real estate investment trusts

(REITs) as well as certain state and municipal debt securities.

The marketable securities are valued using third-party broker

The value of the majority of securities is derived from quoted market information.

The inputs to the valuation are

generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which

is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

of January 31, 2021, our investments consisted of money markets, certificates of deposit, publicly traded equity securities, real

estate investment trusts (REITs) as well as certain state and municipal debt securities and corporate bonds.

Our marketable securities

are valued using third-party broker statements.

The value of the investments is derived from quoted market information.

to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market

does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

Value Hierarchy

following table sets forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by

following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by

level within the fair value hierarchy.

2 unchanged sentences

Assets Measured at Fair Value on a Recurring Basis as of

October 31, 2020

January 31, 2021

Municipal Bonds

9 unchanged sentences

Total fair value of assets measured on a recurring basis

8 Notes Payable

April 15, 2020, the Company received loan proceeds of approximately $950,000 (the “PPP Loan”) from FirsTier Bank,

pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted

March 27, 2020.

The PPP Loan, which was in the form of a Note dated April 15, 2020 issued to the Company, matures on April 15,

2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 15, 2020.

If the Company submits a loan

forgiveness application within ten months of the completion of the Covered Period, it will not be required to make any payments

until the forgiveness amount is remitted to the lender by Small Business Administration (“SBA”).

Interest accrues

during the time between the disbursement of the loan and the SBA remittance of the forgiveness amount.

The Company is responsible

for paying the accrued interest only on the amount of the loan that is not forgiven.

The lender is responsible for notifying the

Company of remittance of the forgiveness amount by the SBA and, if applicable, the date on which the Company’s first payment

of the remaining balance is due.

The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties.

Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments,

rent, utilities, and interest on certain other debt obligations.

The Company used the entire PPP Loan amount for qualifying expenses.

Under the terms of the PPP, certain amounts of the PPP Loan may be forgiven if they are used for qualifying expenses as described

in the CARES Act.

On December 3, 2020, the Company received notice from the lender that the entire amount of the PPP loan was forgiven.

9 Subsequent Events

stated above, the Company received notification on December 3, 2020 from its lender of the Paycheck Protection Program (“PPP”)

loan that the full amount of the loan was forgiven.

Protection Program Loan

On April 15, 2020,

the Company received loan proceeds of approximately $950,000 (the “PPP Loan”) from FirsTier Bank, pursuant to the

Paycheck Protection Program under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

The PPP Loan, which

was in the form of a Note dated April 15, 2020 issued to the Company, matures on April 15, 2022 and bears interest at a rate of

1% per annum.

The Company used the proceeds of the PPP Loan for qualifying expenses.

On December 3, 2020, the Company received

notice from the lender that the entire amount of the PPP loan was forgiven.

In January 2021 it was determined that PPP loan forgiveness

was not taxable.

RISK INDUSTRIES, INC.

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available in the future.

following discussion should be read in conjunction with the attached condensed financial statements, and with the Company’s

following discussion should be read in conjunction with the attached unaudited condensed financial statements, and with the Company’s

audited financial statements and discussion for the fiscal year ended April 30, 2020.

Company’s performance continues to improve through the first half of the current fiscal year with the second quarter showing

growth over the first quarter of the current fiscal year.

This is mainly due the closure of a competitor at the end of calendar

year 2019 and having the ability to continue to work through the COVID-19 pandemic.

The state of Nebraska, where we are located,

has kept businesses open during the pandemic.

Additionally, the Company’s products are traditionally tied to the housing

market and with that market remaining strong, it in turn helps the Company’s sales grow.

Opportunities include keeping up

with the business growth and to continue looking at businesses that might be a good fit to purchase.

We also have new products

that have hit the marketplace and a couple more that are scheduled to be introduced by the end of the year.

in the coming months include continuing to get product out to customers in a timely manner and dealing with the COVID-19 pandemic

restrictions.

Possible COVID-19 challenges include, but are not limited to, price increases and/or delays in the supply chain,

reduced sales, workforce interruptions, and economic conditions impacting the stock market.

Management continues to work at keeping

operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever

Company’s performance continues to improve through the three quarters of the current fiscal year with the third quarter

staying strong.

The Company is on track to have a record setting year for sales.

This is mainly due the closure of a competitor

that got out of the security switch business at the end of calendar year 2019 and having the ability to continue to work through

the COVID-19 pandemic.

The state of Nebraska, where we are located, has kept businesses open during the pandemic.

Additionally,

the Company’s products are traditionally tied to the housing market and with that market remaining strong, it in turn helps

the Company’s sales growth.

Opportunities include keeping up with the business growth.

One way we are doing this is by looking

into more automation.

We also continue to look at businesses that might be a good fit to purchase.

We also have new products that

have hit the marketplace and a couple more that are scheduled to be introduced by the end of the fiscal year.

Challenges in the

coming months include continuing to get product out to customers in a timely manner and dealing with the COVID-19 pandemic restrictions.

Possible COVID-19 challenges include, but are not limited to, price increases and/or delays in the supply chain, reduced sales,

workforce interruptions, and economic conditions impacting the stock market.

Management continues to work at keeping operations

flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever before.

of Operations

sales were $4,647,000 for the quarter ended October 31, 2020, which is a 25.26% increase

from the corresponding quarter last year.

Year-to-date net sales were $8,694,000 at October

31, 2020, which is a 19.70% increase from the same period last year.

The increases in

sales are primarily a result of a competitor no longer selling competing products, as

discussed above.

Other than the loss of a competitor, the Company does not believe COVID-19

has had a significant effect on our net revenue and we do not expect it to have a significant

effect going forward.

Also, the ongoing commitment towards outstanding customer service

and customization of products are a few of the many reasons sales continue to grow.

of goods sold was 49.37% of net sales for the quarter ended October 31, 2020 and was

50.13% for the same quarter last year.

Year-to-date cost of goods sold percentages were

48.83% for the current six months and 49.98% for the corresponding six months last year.

The current cost of goods sold percentages are right at Management’s goal of keeping

labor and other manufacturing expenses at less than 50% for both the quarter and year-to-date

Management continues to work with and train employees to work more efficiently

and they also work at getting the best price for raw materials.

expenses were up $85,000 for the quarter and were up $121,000 for the six-months ended

October 31, 2020 as compared to the corresponding periods last year.

But when comparing

percentages in relation to net sales, the operating expenses for the quarter ended October

31, 2020 was 21.28% of net sales while it was 24.37% of net sales for the same quarter

the prior year.

For year-to-date numbers, operating expense were 21.84% and 24.48% of

net sales for the six months ended October 31, 2020 and 2019, respectively.

has been able to keep the operating expenses at less than 30% of net sales for many years

however, the actual dollar amount increase is because of increased commission amounts

(since sales have increased) and additional labor costs for hiring new employees and

wage increases.

from operations for the quarter ended October 31, 2020 was at $1,364,000, which is a

44.19% increase from the corresponding quarter last year, which had income from operations

Income from operations for the six months ended October 31, 2020 was at

$2,550,000, which is a 37.47% increase from the corresponding six months last year, which

had income from operations of $1,855,000.

income and expenses are down when comparing the current quarter to the prior quarter,

with a decrease of $167,000 in the current quarter.

Conversely, other income and expenses

are up by $1,699,000 when comparing the current six-month period to the prior six-month

Most of the activity in these accounts consists of investment interest, dividends,

real gains or losses on sale of investments, and unrealized gains or losses on equity

The main reason for the decrease in the current quarter as opposed to the

increase for the year-to-date numbers is the unrealized gain and loss on equity securities.

The Company is at the mercy of the stock market when it comes to these figures and

the COVID-19 pandemic influenced these numbers.

net income for the quarter ended October 31, 2020 was down $97,000, or 10.14%, from the

same quarter last year.

Conversely, net income for the six-month period ended October

31, 2020 was up $1,420,000, or 73.5%, from the same period in the prior year.

per common share for quarter ended October 31, 2020 were $0.17 per share and $0.68 per

share for the year-to-date numbers.

EPS for the quarter and six months ended October

31, 2019 were $0.19 per share and $0.39 per share, respectively.

sales were $4,633,000 for the quarter ended January 31, 2021, which is a 29.09% increase from the corresponding quarter last

Year-to-date net sales were $13,327,000 at January 31, 2021, which is a 22.81% increase from the same period last year.

The significant growth in sales is due to our ongoing commitment to outstanding customer service and our ability to customize

The Company is also seeing continued growth since a major competitor closed its doors at the end of 2019.

of goods sold was 51.48% of net sales for the quarter ended January 31, 2021 and was 51.04% for the same quarter last year.

Year-to-date cost of goods sold percentages were 49.76% for the current nine months and 50.33% for the corresponding nine

months last year, which is right at the target of less than 50% for both the quarter and year-to-date results.

continues to train employees for more efficient production and strives to get the best price for raw materials.

expenses increased by $109,000 for the quarter as they increased by $230,000 for the nine-months ended January 31, 2021 as

compared to the corresponding periods last year.

When comparing percentages in relation to net sales, the operating expenses

for the quarter ended January 31, 2021 was 22.27% of net sales while it was 25.72% of net sales for the same quarter the prior

For year-to-date numbers, operating expense were 21.99% and 24.88% of net sales for the nine months ended January 31,

2021 and 2020, respectively.

The Company has been able to keep the operating expenses at less than 30% of net sales for many

however, the actual dollar amount increase is due to increased commission amounts, related to increased

sales, and additional labor costs related to hiring new employees and wage increases.

from operations for the quarter ended January 31, 2021 was $1,216,000, a 45.80% increase from the corresponding quarter

last year, which had income from operations of $834,000.

Income from operations for the nine months ended January 31, 2021

was $3,766,000, which is a 40.00% increase from the corresponding nine months last year, which had income from operations

of $2,690,000.

income and expenses are up $3,159,000 when comparing the current quarter to the same quarter last year.

Comparatively,

there is an increase of $4,858,000 in other income and expenses for the year-to-date numbers.

The majority of activity in

these accounts consists of investment interest, dividends, realized gains or losses on sale of investments, and unrealized

gains or losses on equity securities.

The majority of the larger than normal increases are from unrealized gains, which

is a reflection of the stock market performing well.

net income for the quarter ended January 31, 2021 was up $3,083,000, or 226.03%, from the same quarter last year.

net income for the nine-month period ended January 31, 2021 was up $4,503,000, or 136.62%, from the same period in the prior

per common share for quarter ended January 31, 2021 were $0.90 per share and $1.58 per share for the year-to-date numbers.

EPS for the quarter and nine months ended January 31, 2020 were $0.28 per share and $0.67 per share, respectively.

and capital resources

cash decreased $603,000 during the six months ended October 31, 2020 as compared to an increase of $339,000 during the corresponding

cash increased $478,000 during the nine months ended January 31, 2021 as compared to an increase of $774,000 during the corresponding

period last year.

receivable decreased $32,000 for the six months ended October 31, 2020 compared with a $486,000 decrease for the same period

The smaller current year decrease is a result of improved sales and collections on accounts receivable have improved

over the last year.

An analysis of accounts shows that there were only 0.27% that were over 90 days at October 31, 2020.

increased $637,000 during the current six-month period as compared to a $583,000 increase last year.

The bigger increase in

the current year is primarily due to being prepared for the increase we have seen in sales.

In addition, the Company is keeping

more inventory on hand to reduce the likelihood of running into a shortage on some major raw materials, such as we experienced

expenses saw a $73,000 decrease for the current six months, primarily due to less prepayment of raw materials and running

through some of our prepaid agreements without needing to renew them.

The prior six months showed a $271,000 increase in prepaid

payable shows an increase for the current six-month period of $28,000 while it shows a decrease for the prior six-month periods

The company strives to pay all invoices within terms, and the variance in the decreases is primarily due to the

timing of receipt of products and payment of invoices.

expenses decreased $104,000 for the current six-month period as compared to an $11,000 increase for the six-month period ended

October 31, 2019.

The difference in the amounts is primarily due to timing issues.

tax payable increased $376,000 for the current six-month period, compared to having a decrease in income tax overpayment for

the six-months ended October 31, 2019.

receivable increased $376,000 for the nine months ended January 31, 2021 compared with a $460,000 decrease for the same period

The current year increase is a result of improved sales, partially offset by slower collections of

accounts receivable.

Multiple receipts were received after the close of the reporting period.

An analysis of accounts receivable

shows that there were only 3.65% that were over 90 days at January 31, 2021.

increased $823,000 during the current nine-month period compared to an increase of $506,000 last year.

The larger increase

in the current year is primarily due to an increase in raw material and finished goods.

The increase in raw material

is a result of having enough supply of material for the increase sales.

The increase in finished goods relates to

the introduction of a new product, a high security switch.

We expect these to be sold soon.

expenses saw a $327,000 decrease for the current nine months, primarily due to inventory being delivered that had been paid

for in advance.

The prior nine months showed a $43,000 decrease in prepaid expenses.

payable shows a $311,000 increase for the current nine-month period ended January 31, 2021 compared to a $16,000 increase

for the prior nine-month period.

The company strives to pay all invoices within terms, and the variance in increases is primarily

due to the timing of receipt of products and payment of invoices, as well asCOVID-19 related personnel constraints

at the end of the current reporting period.

expenses increased $54,000 for the current nine-month period compared to no change for the nine-month period ended January

The difference in the amounts is primarily due to timing of payroll periods ending.

tax payable increased $249,000 for the current nine-month period, compared to a decrease in income tax overpayment for the

nine-months ended January 31, 2020.

The current increase is largely due to having increased sales and income and not having

income tax estimates large enough.

Also, since the Company was notified that the PPP loan was forgiven, the forgiveness amount

was included in the income tax expense calculation.

As for our investment activities, the Company purchased $361,000 of property and equipment during the current six-month period.

In comparison, $179,000 was spent on purchases of property and equipment during the corresponding six months last year.

The Company continues to purchase marketable securities,

which include municipal bonds and quality stocks.

During the six-month period ended October 31, 2020 there was quite a bit

of buy/sell activity in the investment accounts.

Net cash spent on purchases of marketable securities for the six-month period

ended October 31, 2020 was $186,000 compared to $250,000 spent in the prior six-month period.

We continue to use “money

manager”

large enough income tax estimates.

for our investment activities, the Company spent approximately $426,000 on acquisitions of property and equipment for the

current nine-month period, in comparison with the corresponding nine months last year, where there was activity of $468,000.

Additionally,

the Company continues to purchase marketable securities, which include municipal bonds and quality stocks.

During the nine-month

period ended January 31, 2021 the buy/sell activity in the investment accounts was high.

Net cash spent on purchases

of marketable securities for the nine-month period ended January 31, 2021 was $440,000 compared to $640,000 spent in the prior

nine-month period.

The Company continues to use “money manager”

accounts for most stock transactions.

By doing this, the Company gives an independent third-party firm, who

are experts in this field, permission to buy and sell stocks at will.

The Company pays a quarterly service fee based on the

value of the investments.

The COVID-19 pandemic has had a negative impact on the performance of the stock market, which has

affected the real and unrealized gains/losses.

Management believes that more realized losses were recorded when investments

were sold and more write downs had to be recorded.

April 15, 2020, the Company received loan proceeds of approximately $950,000 from FirsTier Bank, pursuant to the Paycheck

Protection Program under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

Please refer to Note 8 for

more information about the loan.

In accordance with the terms of the loan, the Company used the proceeds for qualified operating

As of December 3, 2020, the liability of this loan has been completely forgiven.

Company continues to purchase back its common stock when the opportunity arises.

For the six-month period ended October 31,

2020, the Company purchased $1,000 worth of treasury stock, in comparison to $54,000 repurchased in the corresponding six-month

period last year.

company declared a dividend of $0.42 per share of common stock on September 30, 2020, which was paid out during the second

This is a slight increase to the dividend of $0.40, which was declared and paid during the second fiscal quarter

this, the Company gives an independent third-party firm, who are experts in this field, permission to buy and sell stocks

The Company pays a quarterly service fee based on the value of the investments.

Company continues to purchase back common stock when the opportunity arises.

For the nine-month period ended January 31, 2021,

the Company purchased $28,000 worth of treasury stock.

This is in comparison to $71,000 spent in the same nine months period

the prior year.

company paid out dividends of $1,892,000 during the nine months ending January 31, 2021.

These dividends were paid during

the second quarter.

The company declared a dividend of $0.42 per share of common stock on September 30, 2020 and these dividends

were paid by October 31, 2020.

As for the prior year numbers, dividends paid was $1,802,000 for the nine months ending January

A dividend of $0.40 per common share was declared and paid during the second fiscal quarter last year.

following is a list of ratios to help analyze George Risk Industries’

January 31, 2021

January 31, 2020

Working capital

(current assets –

current liabilities)

Current ratio

(current assets / current liabilities)

1 unchanged sentence

Product Development

Company and its engineering department continue to develop enhancements to product lines, develop new products that complement

Company and its engineering department continue to develop enhancements to product lines, develop new products which complement

existing products, and look for products that are well suited to our distribution network and manufacturing capabilities.

1 unchanged sentence

proof contacts that will be UL listed for hazardous locations.

There has been demand

from our customers for this type of high security magnetic reed switch.

updated version of the pool access alarm (PAA) has met electrical listing testing (ETL)

approval and we are currently waiting on component parts to begin production and field

This next-generation model combines our battery operated DPA series with our

hard wired 289 series.

A variety of installation options will be available through jumper

pin settings.

There has been demand from our customers for this type of high

security magnetic reed switch.

updated version of the pool access alarm (PAA) has met electrical listing testing (ETL) approval and we are currently waiting

on component parts to begin production and field testing.

This next-generation model combines our battery operated DPA series

with our hard wired 289 series.

A variety of installation options will be available through jumper pin settings.

technology is a main area of focus for product development.

We are considering adding

wireless technology to some of our current products.

A wireless contact switch is in

the final stages of development.

Also, we are working on wireless versions of our pool

access alarm and environmental sensors that will be easy to install in current construction.

We are also concentrating on making products compatible with Wi-Fi, smartphone technology

and the increasing popular Z-Wave standard for wireless home automation.

the high security realm, the Company has introduced the 2707 Series which is a triple

high biased magnetic reed contact and available in SPDT and DPDT models.

These contacts

are resistant to magnetic tamper and defeat.

They are used in applications such as airports,

biotechnology labs, manufacturing plants, banks, military bases, and energy-generation

3045 Panic Switch contains screw terminals and uses an actuating lever which can be triggered

with only the tip of the finger.

It can be installed under a counter or desk or any similar

The 3045CT uses 12’

extreme temperature rated wire for installation in refrigerators

and freezers.

Both models have a latching LED indicating when the switch is activated

and automatically resets when the lever is closed and is fully re-armed.

and UL Listed versions will follow.

We are considering adding wireless technology to some of our current

A wireless contact switch is in the final stages of development.

Also, we are working on wireless versions of our

pool access alarm and environmental sensors that will be easy to install in current construction.

We are also concentrating

on making products compatible with Wi-Fi, smartphone technology and the increasing popular Z-Wave standard for wireless home

addition to researching and developing new products, management is always open to the possibility of acquiring a business or product

49 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements