What changed in this filing

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Item 1. Financial Statements

2021-12-15 compared with 2021-09-20 · 304 added, 205 removed, 383 unchanged (57% of the section changed)

Financial Statements

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

unaudited financial statements for the three-and six-month periods ended October 31, 2021, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2021

October 31, 2021

April 30, 2021

1 unchanged sentence

Cash and cash equivalents

Investments and securities, at fair value

Investments and securities

Accounts receivable:

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

Trade, net of $ 20,343

and $ 9,947 doubtful

account allowance

Inventories, net

6 unchanged sentences

Intangible Assets, net

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2021

October 31, 2021

April 30, 2021

4 unchanged sentences

Accrued expenses:

Payroll and related expenses

Property taxes

Payroll and other expense

Income tax payable

16 unchanged sentences

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE MONTHS ENDED JULY 31, 2021 AND 2020

July 31, 2021

July 31, 2020

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

Cost of Goods Sold

1 unchanged sentence

( 2,294,000 )

( 5,047,000 )

( 4,245,000 )

Operating Expenses

5 unchanged sentences

Unrealized Gain (Loss) on Equity Securities

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

Gain on Investments

Gain on Sale of Assets

Total Other Income

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred tax expense

Deferred Tax (Benefit) Expense

Total Income Tax Expense

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Income Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE MONTHS ENDED JULY 31, 2021 AND 2020

July 31, 2021

July 31, 2020

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

Other Comprehensive Income, Net of Tax

Unrealized gain on debt securities:

Unrealized holding gains arising during period

Income tax expense related to other comprehensive income

Other Comprehensive Income

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)

Comprehensive Income

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2021 and 2020

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2021 AND 2020

Preferred Stock

Balances, April 30, 2020

Balances, July 31, 2020

Purchases of common stock

Purchases of common stock, shares

Unrealized gain, net of tax effect

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Preferred Stock

Balances, July 31, 2021

Purchases of common stock

Dividend declared at $0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2021 AND 2020

Treasury Stock

(Common Class A)

Accumulated Other Comprehensive

Balances, July 31, 2020

$ ( 4,301,000 )

Purchases of common stock

Dividend declared at $0.42 per common share outstanding

( 2,079,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

$ ( 4,302,000 )

Treasury Stock

(Common Class A)

Accumulated Other Comprehensive

Balances, July 31, 2021

$ ( 4,336,000 )

Purchases of common stock

Dividend declared at $0.50 per common share outstanding

( 2,472,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

$ ( 4,362,000 )

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

Preferred Stock

1 unchanged sentence

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2021

accompanying notes to the condensed financial statements

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Preferred Stock

Balances, April 30, 2021

Purchases of common stock

Dividend declared at $0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2021 and 2020

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

Treasury Stock

4 unchanged sentences

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2020

Dividend declared at $0.42 per common share outstanding

( 2,079,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

$ ( 4,302,000 )

Treasury Stock

1 unchanged sentence

Comprehensive

Balances, April 30, 2021

$ ( 4,336,000 )

Beginning balance

$ ( 4,336,000 )

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2021

Dividend declared

( 2,472,000 )

accompanying notes to the condensed financial statements

Unrealized gain (loss), net of tax effect

Ending balance

$ ( 4,362,000 )

accompanying notes to the unaudited 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

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash provided by operating

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 securities

( 1,043,000 )

( 1,999,000 )

Reserve for bad debts

1 unchanged sentence

Deferred income taxes

(Gain) loss on sale of assets

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

Prepaid expenses

Employee receivables

( 1,528,000 )

Prepaid expenses and projects in process

Other 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

( 2,255,000 )

( 1,890,000 )

Net cash from financing activities

( 2,281,000 )

( 1,891,000 )

NET CHANGE IN CASH AND CASH EQUIVALENTS

( 1,219,000 )

Cash and Cash Equivalents, beginning of period

2 unchanged sentences

Cash payments for:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

TO CONDENSED FINANCIAL STATEMENTS

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1 Unaudited Interim Financial Statements

31 unchanged sentences

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.

ASU 2020-01 deals with changes in the significant influence of derivative and investments, of which the Company has

none and 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.

2 Investments

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 investments in debt securities, which include municipal bonds and bond funds, mature between June 2022 and January

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

3 unchanged sentences

Dividend and interest income are reported as earned.

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

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

Schedule of Investments

Investments at

July 31, 2021

October 31, 2021

Municipal bonds

20 unchanged sentences

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.

As a result of this standard, there were no impairment losses recorded for the quarter

and the six months ended October 31, 2021.

As for the corresponding periods last year, management recorded an impairment loss of $ 52,000

for the quarter ended October 31, 2020 and an impairment loss of $ 79,000 was recorded for the six-months ended October 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 July 31, 2021 the Company had sales of equity securities which yielded gross realized gains

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

of $ 106,000 and gross realized losses of $ 26,000 .

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

For the same period, sales of debt securities did no t yield any gross realized gains

As for the six-months ended October 31, 2021 the Company had sales of equity securities which yielded gross realized gains

of $ 343,000 and gross realized losses of $ 33,000 .

For the same six-month period, sales of debt securities did no t yield any gross realized

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

The gross realized loss numbers include the impaired figures listed in the

previous paragraph.

During the quarter ending October 31, 2020, the Company recorded gross realized

gains and losses on equity securities of $ 184,000 and $ 110,000 , respectively, while sales of debt securities did no t yield any gross

realized gains, but gross realized losses of $ 2,000 were recorded.

During the six-months ending October 31, 2020, the Company recorded

gross realized gains and losses on equity securities of $ 286,000 and $ 236,000 , respectively, while sales of debt securities did no t yield

any gross realized gains, but gross realized losses of $ 6,000 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

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

Schedule of Unrealized Loss Breakdown by Investment

Loss Breakdown by Investment Type at October 31, 2021

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

7 unchanged sentences

Loss Breakdown by Investment Type at April 30, 2021

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

10 unchanged sentences

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.

these investments to be other-than-temporarily impaired at October 31, 2021.

Equity Securities and REITs

4 unchanged sentences

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:

impaired at October 31, 2021.

3 Inventories

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

Schedule of Inventories

30 unchanged sentences

Total capital expenditures

July 31, 2021

October 31, 2021

April 30, 2021

7 unchanged sentences

Schedule of Basic and Diluted Earnings per Share

For the three months ended July 31, 2021

For the three months ended October 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2020

For the three months ended October 31, 2020

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2020

(Denominator)

Effect of dilutive Convertible Preferred Stock

6 Retirement Benefit Plan

12 unchanged sentences

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.

Matching contributions by the

Company of approximately $ 15,000 and $ 16,000 were paid during each quarter ending October 31, 2021 and 2020, respectively.

the Company paid matching contributions of approximately $ 33,000 and $ 29,000 during each six-month period ending October 31, 2021 and

2020, respectively.

7 Fair Value Measurements

22 unchanged sentences

and Marketable Securities

of July 31, 2021, our investments consisted of money markets, publicly traded equity securities, real estate investment trusts (REITs)

of October 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.

11 unchanged sentences

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2021

October 31, 2021

Municipal Bonds

8 unchanged sentences

Total fair value of assets measured on a recurring basis

Note 8 Subsequent Events

8 Subsequent Events

RISK INDUSTRIES, INC.

1 unchanged sentence

Management Discussion and Analysis of Financial Condition and Results of Operations

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

9 unchanged sentences

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.

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 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.

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

decline over the first quarter of the current fiscal year.

This is mainly due the inability to obtain all the raw materials that

are needed to complete the manufacture of our products and keeping employees staffed at our locations.

The state of Nebraska, where we

are located, has recently issued news that it has one of the lowest unemployment rates in the country.

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

Opportunities include keeping up with the business growth, finding ways to get our products out to our customers in a timelier

manner, and to continue looking at businesses that might be a good fit to purchase.

We also have new products that are expected to hit

the marketplace 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 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

sales were $5,244,000 for the quarter ended October 31, 2021, which is a 12.85% increase from the corresponding quarter last year.

Year-to-date net sales were $10,199,000 at October 31, 2021, which is a 17.31% increase from the same period last year.

The increases

in sales are primarily a result of 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

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 52.04% of net sales for the quarter ended October 31, 2021 and was 49.37% for the same quarter last year.

cost of goods sold percentages were 49.49% for the current six months and 48.83% for the corresponding six months last year.

current cost of goods sold percentages are right outside of Management’s goal of keeping labor and other manufacturing expenses

at less than 50% for both the quarter but reached that goal for year-to-date results.

Management continues to work with and train

employees to work more efficiently and they also work at getting the best price for raw materials.

Also, a significant wage increase

went into effect for the company at the beginning of the second quarter of the current fiscal year.

expenses were up $102,000 for the quarter and were up $299,000 for the six-months ended October 31, 2021 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, 2021 was 20.80% of net sales while it was 21.28% of net sales for the same quarter the prior year.

For year-to-date numbers,

operating expense were 21.55% and 21.84% of net sales for the six months ended October 31, 2021 and 2020, respectively.

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

however, the actual dollar amount

increase is because of increased commission amounts (since sales have increased) and additional labor costs for wage increases.

from operations for the quarter ended October 31, 2021 was at $1,424,000, which is a 4.40% increase from the corresponding quarter

last year, which had income from operations of $1,364,000.

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,

Income from operations for the six months ended October 31, 2021 was at

$2,954,000, which is a 15.84% increase from the corresponding six months last year, which had income from operations of $2,550,000.

income and expenses are up when comparing the current quarter to the same quarter the prior year, with an increase

of $724,000 in the current quarter.

Conversely, other income and expenses are down by $713,000 when comparing the current six-month

period to the prior six-month period.

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 securities.

The main reason for the increase in the current

quarter as opposed to the decrease for the year-to-date numbers is the unrealized gain and loss on equity securities.

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, 2021 was up $828,000, or 96.28%, from the same quarter last year.

Similarly, net income

for the six-month period ended October 31, 2021 was up $82,000, or 2.45%, from the same period in the prior year.

per common share for quarter ended October 31, 2021 were $0.34 per share and $0.69 per share for the year-to-date numbers.

the quarter and six months ended October 31, 2020 were $0.17 per share and $0.68 per share, respectively.

and capital resources

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.

cash decreased $1,219,000 during the six months ended October 31, 2021 as compared to a decrease of $603,000 during the corresponding

period last year.

receivable decreased $185,000 for the six months ended October 31, 2021 compared with a $32,000 decrease for the same period last

The bigger current year decrease is a result of improved sales while collections on accounts receivable have declined over

the last year.

An analysis of accounts receivable shows that 4.84% of the receivables were over 90 days at October 31, 2021, while

only 0.27% were over 90 days for the same period last year.

increased $1,528,000 during the current six-month period as compared to a $637,000 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, as we have experienced in the

expenses saw a $337,000 increase for the current six months, primarily due to having more prepayments of raw materials.

and costs have risen on raw materials, making it a challenge to obtain.

The prior year six months showed a $73,000 decrease

in prepaid expenses.

payable shows a decrease for the current six-month period of $183,000 while it shows an increase for the prior six-month periods

The company strives to pay all invoices within terms, and the variance is primarily due to the timing of receipt of products

and payment of invoices.

expenses decreased $4,000 for the current six-month period as compared to a $104,000 decrease for the six-month period ended October

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

tax payable increased $140,000 for the current six-month period, compared to having an increase of $376,000 in income tax overpayment

for the six-months ended October 31, 2020.

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

income tax estimates large enough.

for our investment activities, the Company purchased $40,000 of property and equipment during the current six-month period.

In comparison,

$361,000 was spent on purchases of property and equipment during the corresponding six months 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,

During the six-month period

ended October 31, 2021 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, 2021 was $208,000 compared to $186,000 spent in the prior six-month period.

We continue to use “money manager” accounts for most stock transactions.

1 unchanged sentence

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

The Company pays a quarterly service

fee based on the value of the investments.

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

For the six-month period ended October 31, 2021,

the Company purchased $26,000 worth of treasury stock, in comparison to $1,000 repurchased in the corresponding six-month period

company declared a dividend of $0.50 per share of common stock on September 30, 2021, which was paid out during the second quarter.

This is an increase to the dividend of $0.42, which was declared and paid during the second fiscal quarter last year.

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

October 31, 2021

October 31, 2020

Working capital

2 unchanged sentences

(current assets / current liabilities)

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

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

Product Development

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.

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

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

Items 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 production has started.

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 such as instant alarm and seven second delay.

technology is a main area of focus for product development.

We are looking into adding wireless technology to some of our current

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

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.

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

A redesign of our brass water valve

shut-off system is near completion.

Company is developing magnetic contacts which are listed under UL 634 Level 2.

These sensors are for high security applications such

as government buildings, military use, nuclear facilities, and financial institutions.

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.

Our products are

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

Our products are tied

to the housing industry and will fluctuate with building trends.

Issued Accounting Pronouncements

21 unchanged sentences

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.

ASU 2020-01 deals with changes in the significant influence of derivative and investments, of which the Company has

none and 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.

2 unchanged sentences

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