What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-09-20 compared with 2021-03-17 · 382 added, 466 removed, 206 unchanged (80% of the section changed)

Financial Statements

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

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

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2021

April 30, 2021

1 unchanged sentence

Cash and cash equivalents

Investments and securities

Investments and securities, at fair value

Accounts receivable:

Trade, net of $ 15,622 and $ 9,947 doubtful account allowance

Income tax overpayment

Inventories, net

1 unchanged sentence

Total Current Assets

Property and Equipment, net

Property and Equipment, net, at cost

Investment in Limited Land Partnership, at cost

2 unchanged sentences

Intangible assets, net

accompanying notes to the unaudited condensed financial statements.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

January 31, 2021

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2021

April 30, 2021

LIABILITIES AND STOCKHOLDERS’

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

2 unchanged sentences

Accrued expenses:

Payroll and related expenses

Property taxes

Income tax payable

Notes payable

Total Current Liabilities

4 unchanged sentences

Commitments and contingencies

Stockholders’

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

Stockholders’ Equity

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

3 unchanged sentences

treasury stock, 3,556,425 and 3,556,412 shares, at cost

Total Stockholders’

TOTAL LIABILITES AND STOCKHOLDERS’

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

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

( 4,336,000 )

Total Stockholders’ Equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE MONTHS ENDED JULY 31, 2021 AND 2020

July 31, 2021

July 31, 2020

Cost of Goods Sold

( 2,318,000 )

( 1,952,000 )

Operating Expenses:

General and Administrative

Rent Paid to Related Parties

Total Operating Expenses

Income From Operations

Other Income (Expense)

Dividend and Interest Income

Unrealized Gain on equity securities

Gain on Investments

Gain on Sale of Assets

Total Other Income

Unrealized gain (loss) on equity securities

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred Tax Expense (Benefit)

Deferred tax expense

Total Income Tax Expense

Income Per Share of Common Stock

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

accompanying notes to the unaudited condensed financial statements

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENT OF COMPREHENSIVE INCOME

THE THREE AND NINE MONTHS ENDED JANUARY 31.

2021 AND 2020

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE MONTHS ENDED JULY 31, 2021 AND 2020

July 31, 2021

July 31, 2020

Other Comprehensive Income, Net of Tax

4 unchanged sentences

Comprehensive Income

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE THREE MONTHS ENDED JANUARY 31, 2021 AND 2020

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2021 and 2020

Preferred Stock

Balances, October 31, 2020

Balances, April 30, 2020

Purchases of common stock

Purchases of common stock, shares

Unrealized gain, net of tax effect

Balances, January 31, 2021

Balances, July 31, 2020

Preferred Stock

Balances, October 31, 2019

Balances, April 30, 2021

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31, 2020

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE THREE MONTHS ENDED JANUARY 31, 2021 AND 2020

Balances, July 31, 2021

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2021 and 2020

Treasury Stock

1 unchanged sentence

Comprehensive

Balances, April 30, 2020

$ ( 4,301,000 )

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2020

$ ( 4,301,000 )

2 unchanged sentences

Comprehensive

Balances, April 30, 2021

$ ( 4,336,000 )

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE NINE MONTHS ENDED JANUARY 31, 2021 AND 2020

Preferred Stock

Balances, April 30, 2020

Purchases of common stock

Dividend declared at $0.42 per common share outstanding

Unrealized gain, net of tax effect

Balances, January 31, 2021

Preferred Stock

Balances, April 30, 2019

Purchases of common stock

Dividend declared at $0.40 per common share outstanding

Unrealized (loss), net of tax effect

Balances, January 31, 2020

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’

FOR THE NINE MONTHS ENDED JANUARY 31, 2021 AND 2020

Treasury Stock

(Common Class A)

Comprehensive

$ (4,301,000 )

$ (4,329,000 )

Treasury Stock

(Common Class A)

Comprehensive

Balances, July 31, 2021

$ ( 4,336,000 )

accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED JANUARY 31,2021 AND 2020

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2021 AND 2020

July 31, 2021

July 31, 2020

Cash Flows from Operating Activities:

1 unchanged sentence

Depreciation and amortization

(Gain) on sale of investments

(Gain) loss on sale of investments

Impairments on investments

Unrealized (gain) on equity investments

Unrealized (gain) loss on equity securities

( 2,114,000 )

Reserve for bad debts

1 unchanged sentence

Deferred income taxes

PPP loan debt forgiveness

(Gain) on sale of assets

Net book value of assets retired

Changes in assets and liabilities:

2 unchanged sentences

Prepaid expenses

Other receivables

Income tax overpayment

Employee receivables

Increase (decrease) in:

4 unchanged sentences

Cash Flows From Investing Activities:

Proceeds from sale of assets

(Purchase) of property and equipment

1 unchanged sentence

(Purchase) of marketable securities

(Purchase) of long-term investment

Net cash from investing activities

Cash Flows From Financing Activities:

(Purchase) of treasury stock

Dividends paid

5 unchanged sentences

Cash payments for:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the unaudited condensed financial statements

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

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 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.

Unaudited 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.

It is suggested that

these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s

April 30, 2021 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.

The estimates and assumptions result in approximate rather than exact amounts.

Issued Accounting Pronouncements —

In June 2016, the FASB issued ASU No.

2016-13, “

Financial Instruments –

Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments ”, which requires entities to

use a forward looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including

trade receivables.

The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics.

Topic 326 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

have applied this guidance, as of May 1, 2020, using a modified-retrospective approach.

The application of this guidance did not

require a cumulative effect adjustment to retained earnings and did not have a material effect on our financial statements.

August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820).

The updated guidance improves

the disclosure requirements on fair value measurements.

The updated guidance is effective for fiscal years, and interim periods

within those fiscal years, beginning after December 15, 2019.

Early adoption is permitted for any removed or modified disclosures.

We applied this guidance, as of May 1, 2020.

The application of this guidance did not have a material effect on our disclosures.

January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and

Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323,

and Topic 815.”

The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability

in accounting for these transactions.

ASU 2016-01 made targeted improvements to accounting for financial instruments, including

providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any

impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar

investment of the same issuer.

Among other topics, the amendments clarify that an entity should consider observable transactions

that require it to either apply or discontinue the equity method of accounting.

For public business entities, the amendments in

the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.

adoption is permitted.

The Company does not expect the adoption of ASU 2020-01 to have a material impact on its financial statements.

Issued Accounting Pronouncements — In June 2016 the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses

(Topic 326),” which was subsequently amended in February 2020 by ASU 2020-02, “Financial Instruments - Credit Losses

(Topic 326) and Leases (Topic 842).” The amendments introduce an impairment model that is based on expected credit losses,

rather than incurred losses, to estimate credit losses on certain types of financial instruments (e.g., loans and held-to-maturity securities),

including certain off-balance sheet financial instruments (e.g., loan commitments).

The expected credit losses should consider historical

information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual

Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses.

with amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The Company does not believe this new guidance will have a material impact on its financial statements and will implement the disclosures

related to this update beginning in 2023.

January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint

Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.”

The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions.

ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure

certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from

observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Among other topics, the

amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method

of accounting.

ASU 2020-01 became effective for the Company in the first quarter of 2021.

The adoption of this standard did not have

any impact on the Company’s condensed financial statements.

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

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

and money markets.

The investments in debt securities, which include municipal bonds and bond funds, mature between April 2021

and January 2044.

The Company uses the average cost method to determine the cost of equity securities sold with any unrealized

gains or losses reported in the respective period’s earnings.

Unrealized gains and losses on debt securities are excluded

from earnings and reported separately as a component of stockholder’s equity.

Dividend and interest income are reported

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

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

money markets.

The investments in debt securities, which include municipal bonds and bond funds, mature between November 2021 and January

The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported

in the respective period’s earnings.

Unrealized gains and losses on debt securities are excluded from earnings and reported separately

as a component of stockholder’s equity.

Dividend and interest income are reported as earned.

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

Schedule of Investments

Investments at

January 31, 2021

July 31, 2021

Municipal bonds

1 unchanged sentence

Money markets and CDs

$ ( 132,000 )

Investments at

1 unchanged sentence

Municipal bonds

Corporate bonds

Equity securities

1 unchanged sentence

$ ( 122,000 )

securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value

recorded as an unrealized gain or (loss) in the statements of income in the period of the change.

Upon the disposition of a marketable

security, the Company records a realized gain or (loss) on the Company’s statements of income.

Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as when the cost

basis exceeds the fair value for approximately one year.

The Company also evaluates the nature of the investment, cause of impairment

and number of investments that are in an unrealized position.

When an “other-than-temporary”

decline is identified,

the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss.

The investments

are periodically evaluated to determine if impairment changes are required.

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.

securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded

as an unrealized gain or (loss) in the statements of income in the period of the change.

Upon the disposition of a marketable security,

the Company records a realized gain or (loss) on the Company’s statements of income.

Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis

exceeds the fair value for approximately one year.

The Company also evaluates the nature of the investment, cause of impairment and number

of investments that are in an unrealized position.

When an “other-than-temporary” decline is identified, the Company will

decrease the cost of the marketable security to the new fair value and recognize a real loss.

The investments are periodically evaluated

to determine if impairment changes are required.

As a result of this standard, no impairment loss was recorded for the quarter ended

July 31, 2021.

For the prior quarter ended July 31, 2020, an impairment loss of $ 27,000 was recorded.

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

Therefore, either a realized gain or loss is recorded

when a sale happens.

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.

For the same period, sales of debt securities did not yield any gross

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

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.

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

Loss Breakdown by Investment Type at January 31, 2021

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

of $ 238,000 and gross realized losses of $ 8,000 .

For the same period, sales of debt securities did not yield any gross realized gains,

but gross realized losses of $ 10,000 were recorded.

During the quarter ending July 31, 2020, the Company recorded gross realized gains

and losses on equity securities of $ 102,000 and $ 126,000 , respectively, while sales of debt securities did not yield any gross realized

gains, but gross realized losses of $ 4,000 were recorded.

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”,

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

July 31, 2021 and April 30, 2021, respectively.

Loss Breakdown by Investment Type at July 31, 2021

Schedule of Unrealized Loss Breakdown by Investment

Less than 12 months

5 unchanged sentences

Equity securities

$ ( 132,000 )

Loss Breakdown by Investment Type at April 30, 2021

7 unchanged sentences

$ ( 122,000 )

unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases.

The contractual

terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment.

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 January 31, 2021.

unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases.

The contractual terms

of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment.

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 July 31, 2021.

Equity Securities and REITs

Company’s investments in marketable equity securities and REITs consist of a wide variety of companies.

Investments in these

companies include growth, growth income, and foreign investment objectives.

The individual holdings have been evaluated, and due

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 January 31, 2021.

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

Company’s investments in marketable equity securities and REITs consist of a wide variety of companies.

Investments in these companies

include growth, growth income, and foreign investment objectives.

The individual holdings have been evaluated, and due 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 July 31, 2021.

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

Schedule of Inventories

Raw materials

1 unchanged sentence

Finished goods

Inventory in transit

Inventory gross

allowance for obsolete inventory

Inventories, net

Business Segments

following is financial information relating to industry segments:

Schedule of Financial Information Relating to Industry Segments

Security alarm products

19 unchanged sentences

Total capital expenditures

January 31, 2021

July 31, 2021

April 30, 2021

4 unchanged sentences

Corporate general

Earnings per Share

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

For the three months ended January 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended January 31, 2020

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the nine months ended January 31, 2021

Schedule of Basic and Diluted Earnings Per Share

For the three months ended July 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the nine months ended January 31, 2020

For the three months ended July 31, 2020

(Denominator)

Effect of dilutive Convertible Preferred Stock

Retirement Benefit Plan

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

Retirement Savings Plan (the “Plan”).

is a defined contribution savings plan designed to provide retirement income to eligible employees of the Company.

intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended.

It is funded by voluntary pre-tax

and Roth (taxable) contributions from eligible employees who may contribute a percentage of their eligible compensation, limited

and subject to statutory limits.

Employees are eligible to participate in the Plan when they have attained the age of 21 and completed

one thousand hours of service in any plan year with the Company.

Upon leaving the Company, each participant is 100% vested with

respect to the participants’

contributions while the Company’s matching contributions are vested over a six-year period

in accordance with the Plan document.

Contributions are invested, as directed by the participant, in investment funds available

under the Plan.

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

January 31, 2021 and 2020, respectively.

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

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

Retirement Savings Plan (the “Plan”).

The Plan is a

defined contribution savings plan designed to provide retirement income to eligible employees of the Company.

The Plan is intended to

be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended.

It is funded by voluntary pre-tax and Roth (taxable)

contributions from eligible employees who may contribute a percentage of their eligible compensation, limited and subject to statutory

Employees are eligible to participate in the Plan when they have attained the age of 21 and completed one thousand hours of service

in any plan year with the Company.

Upon leaving the Company, each participant is 100 % vested with respect to the participants’

contributions while the Company’s matching contributions are vested over a six -year period in accordance with the Plan document.

Contributions are invested, as directed by the participant, in investment funds available under the Plan.

Matching contributions of approximately

$ 17,000 and $ 13,000 were paid in each of the quarters ending July 31, 2021 and 2020 respectively.

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.

Fair 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

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

The hierarchy

gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement)

and the lowest priority to unobservable inputs (level 3 measurements).

The levels of the fair value hierarchy under US GAAP are

described below:

gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and

the lowest priority to unobservable inputs (level 3 measurements).

The levels of the fair value hierarchy under US GAAP are described

is based upon quoted prices for identical instruments traded in active markets.

is 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 assumptions are observable

in the market.

is 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 assumptions are observable in the market.

is generated from model-based techniques that use significant assumptions not observable in the market.

These unobservable

assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.

Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

These unobservable assumptions

reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.

Valuation techniques

include use of option pricing models, discounted cash flow models and similar techniques.

and Marketable Securities

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.

of July 31, 2021, 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 statements.

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.

Value Hierarchy

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.

As required by US GAAP, assets and liabilities are classified in their entirety based on

the lowest level of input that is significant to the fair value measurement.

following table sets 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.

As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest

level of input that is significant to the fair value measurement.

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of

January 31, 2021

July 31, 2021

Municipal Bonds

5 unchanged sentences

Municipal Bonds

Corporate Bonds

Equity Securities

1 unchanged sentence

Total fair value of assets measured on a recurring basis

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.

Note 8 Subsequent Events

RISK INDUSTRIES, INC.

1 unchanged sentence

Management Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS

FINANCIAL CONDITION

RESULTS OF OPERATIONS

Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of

1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which

are subject to the “safe harbor”

created by those sections.

Any statements herein that are not statements of historical

fact may be deemed to be forward-looking statements.

For example, words such as “may,”

“will,”

“could,”

“would,”

“should,”

“anticipate,”

“expect,”

“intend,”

“believe,”

“estimate,”

“project”

or “continue,”

and the negatives of such terms are intended to identify

forward-looking statements.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as

amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject

to the “safe harbor” created by those sections.

Any statements herein that are not statements of historical fact may be deemed

to be forward-looking statements.

For example, words such as “may,” “will,” “could,” “would,”

“should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,”

“project” or “continue,” and the negatives of such terms are intended to identify forward-looking statements.

The information included herein represents our estimates and assumptions as of the date of this filing.

Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons

actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes

available in the future.

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 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.

Unless required by law, we undertake

no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from

those anticipated in these forward-looking statements, even if current information becomes available in the future.

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

financial statements and discussion for the fiscal year ended April 30, 2021.

Company’s performance remained steady during the quarter ended July 31, 2021 as compared to the quarter ended July 31, 2020.

sales have increased when comparing to the same quarter last year, overall net income is down because unrealized gains on investments

aren’t as big as they were for the same quarter last year.

The uptick in sales is direct result of the closure of a competitor

at the end of calendar year 2019 and having the ability to continue working through the COVID-19 pandemic.

As a result of the increased

demand, the Company is experiencing a sizable back order log;

however, management has been able to increase inventory.

Management now

intends to focus on ramping up production to meet customer’s needs in a timely manner.

Opportunities include continuing to learn

and grow with our computer system and to continue looking at businesses that might be a good fit to purchase.

We also have new products

that are scheduled to enter the marketplace by the end of the calendar year.

Challenges in the coming months include continuing to get

product out to customers in a timely manner and dealing with 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 $4,633,000 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

sales for the quarter ended July 31, 2021 showed a 22.44% increase over the same period in the prior year.

The Company saw increased

sales resulting primarily from a competitor no longer selling competing products and having the ability to continue to work through

the COVID-19 pandemic.

Management also believes that sales continue to grow due to our ongoing commitment to outstanding customer

service and our ability to customize products.

of goods sold decreased from 48.23% of sales in the prior year, to 46.78% in the current quarter, which is inside of Management’s

goal to keep labor and other manufacturing expenses within the range of 45 to 50%.

The decreased cost of goods sold percentage is

a reflection of training initiatives resulting in more efficient production.

expenses increased by $198,000 when comparing the current year quarter to the same quarter for the prior year;

however, the percentage

of net sales decreased to 22.34% for the quarter ended July 31, 2020 compared to 22.46% for the corresponding quarter last year.

The dollar amount increase is the result of increased personnel and commission expense related to the increase in net sales;

the Company maintained the ratio of operating expenses to net sales at less than 30%, which is in line with historical ratios.

from operations for the quarter ended July 31, 2021 was at $1,530,000, which is a 29.01% increase from the corresponding quarter

last year, which had income from operations of $1,186,000.

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.

income and expenses showed a $817,000 gain for the quarter ended July 31, 2021 as compared to a $2,254,000 gain for the quarter ended

July 31, 2020.

For the three months ended July 31, 2021, $420,000 of unrealized gains from equity securities were recorded, compared

to the $2,114,000 of unrealized gains from equity securities recorded for the three months ended July 31, 2020.

The remainder of

the increase is primarily due to dividend and interest income and gains on sales of investments.

Company’s provision for income taxes showed a decrease of $347,000 from $948,000 in the quarter ended July 31, 2020 to $601,000

for the quarter ended July 31, 2021.

This decrease is primarily due to decreased deferred taxes resulting from a much smaller unrealized

gain for the current quarter.

turn, net income for the quarter ended July 31, 2021 was $1,746,000, a 29.94% decrease from the corresponding quarter last year,

which showed net income of $2,492,000.

per share for the quarter ended July 31, 2021 were $0.35 per common share and $0.50 per common share for the quarter ended July 31,

and capital resources

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 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

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.

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

cash increased $1,005,000 during the quarter ended July 31, 2021 as compared to an increase of $1,033,000 during the corresponding

quarter last year.

receivable decreased $154,000 for the quarter ending July 31, 2021 compared with a $49,000 decrease for the same quarter last year.

The bigger decrease in accounts receivable is directly attributable to an increase in sales and customers being able to pay timely

as the COVID-19 pandemic has become a part of our everyday life.

Management still has the ability to collect on accounts and to keep

past due accounts to a minimum.

An analysis of accounts shows that there were only 3.26% that were over 90 days at July 31, 2021.

increased $549,000 during the current quarter as compared to a $405,000 increase last year.

The larger increase is primarily due

to the fact that the Company is continuing to buy more raw materials due to increased orders and that the prices of raw materials

continue to increase.

the quarter ended July 31, 2021 there was a $196,000 increase in prepaid expenses compared to a decrease of $94,000 for the quarter

ended July 31, 2020.

The current increase is due to more prepayments of raw materials.

Lead times and costs have risen on raw materials,

making it a challenge to obtain these raw materials.

payable shows a decrease of $236,000 for the quarter ended July 31, 2021 compared to an increase of $117,000 for the same quarter

the year before.

The variance is primarily due to timing differences of when product is received.

Management strives to pay all payables

within terms, unless there is a problem with the merchandise.

expenses increased $99,000 for the current quarter as compared to a $61,000 decrease for the quarter ended July 31, 2020.

The difference

in the amounts is primarily due to timing of when payroll periods end.

tax payable for the quarter ended July 31, 2021 increased $547,000, compared to a $346,000 increase for the quarter ended July 31,

The current increase is due to larger tax estimates in relation to increased income.

Company purchased $40,000 of property and equipment during the current fiscal quarter.

In comparison, $95,000 was spent on purchases

of property and equipment during the corresponding quarter last year.

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

Cash spent on purchases of

marketable securities for the quarter ended July 31, 2021 was $98,000 compared to $111,000 spent during the quarter ended July 31,

We continue 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 quarterly service fees

based on the value of the investments.

Company continues to purchase back common stock when the opportunity arises, but for the quarter ended July 31, 2021 and 2020, respectively,

the Company did not buyback any treasury stock.

conjunction with the Company’s Condensed Financial Statements, we have provided the following list of ratios to help analyze George

Risk Industries’ performance:

July 31, 2021

July 31, 2020

Working capital

(current assets –

current liabilities)

(current assets – current liabilities)

Current ratio

(current assets / current liabilities)

((cash + investments + AR) / current liabilities)

((cash + current investments + AR) / current liabilities)

Product Development

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.

currently in the development process include:

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 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.

Company and its’ engineering department perpetually work to develop enhancements to current product lines, develop new products

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

Items currently in various stages of the development process include:

proof contacts that will be UL listed for hazardous locations are in development.

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 production has started.

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.

are currently redesigning our glass break detector switch and water shutoff system to include a brass valve.

technology is a main area of focus for product development.

We are considering adding wireless technology to some of our current

We are looking into 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

line that would complement our existing operations.

Due to the Company’s strong cash position, management believes this

could be achieved without the need for outside financing.

The intent is to utilize the equipment, marketing techniques and established

customers to deliver new products and increase sales and profits.

are no known seasonal trends with any of GRI’s products, since we sell to distributors and OEM manufacturers.

are tied to the housing industry and will fluctuate with building trends.

Also, we are working on wireless versions of our Pool

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.

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

that would complement our existing operations.

Due to the Company’s strong cash position, management believes this could be achieved

without the need for outside financing.

The intent is to utilize the equipment, marketing techniques and established customers to deliver

new products and increase sales and profits.

are no known seasonal trends with any of GRI’s products, since we sell to distributors and OEM manufacturers.

Our products are

tied to the housing industry and will fluctuate with building trends.

Issued Accounting Pronouncements

June 2016, the FASB issued ASU No.

2016-13, “

Financial Instruments –

Credit Losses (Topic 326):

of Credit Losses on Financial Instruments ”, which requires entities to use a forward looking approach based on expected

losses to estimate credit losses on certain types of financial instruments, including trade receivables.

The FASB has subsequently

issued updates to the standard to provide additional clarification on specific topics.

Topic 326 is effective for fiscal years,

and interim periods within those fiscal years, beginning after December 15, 2019.

We have applied this guidance, as of May 1,

2020, using a modified-retrospective approach.

The application of this guidance did not require a cumulative effect adjustment

to retained earnings and did not have a material effect on our financial statements.

August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820).

The updated guidance improves

the disclosure requirements on fair value measurements.

The updated guidance is effective for fiscal years, and interim periods

within those fiscal years, beginning after December 15, 2019.

Early adoption is permitted for any removed or modified disclosures.

We applied this guidance, as of May 1, 2020.

The application of this guidance did not have a material effect on our disclosures.

January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and

Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323,

and Topic 815.”

The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability

in accounting for these transactions.

ASU 2016-01 made targeted improvements to accounting for financial instruments, including

providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any

impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar

investment of the same issuer.

Among other topics, the amendments clarify that an entity should consider observable transactions

that require it to either apply or discontinue the equity method of accounting.

For public business entities, the amendments in

the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.

adoption is permitted.

The Company does not expect the adoption of ASU 2020-01 to have a material impact on its financial statements.

June 2016 the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which was subsequently

amended in February 2020 by ASU 2020-02, “Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842).”

The amendments introduce an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit

losses on certain types of financial instruments (e.g., loans and held-to-maturity securities), including certain off-balance sheet financial

instruments (e.g., loan commitments).

The expected credit losses should consider historical information, current information, and reasonable

and supportable forecasts, including estimates of prepayments, over the contractual term.

Financial instruments with similar risk characteristics

may be grouped together when estimating expected credit losses.

The update with amendment is effective for fiscal years beginning after

December 15, 2022, including interim periods within those fiscal years.

The Company does not believe this new guidance will have a material

impact on its financial statements and will implement the disclosures related to this update beginning in 2023.

January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint

Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.”

The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions.

ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure

certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from

observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Among other topics, the

amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method

of accounting.

ASU 2020-01 became effective for the Company in the first quarter of 2021.

The adoption of this standard did not have

any impact on the Company’s condensed financial statements.

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

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Quantitative and Qualitative Disclosures About Market Risk

disclosure does not apply.

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