What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-03-17 compared with 2021-12-15 · 251 added, 237 removed, 450 unchanged (52% of the section changed)

Financial Statements

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

unaudited financial statements for the three- and nine-month period ended January 31, 2022, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

October 31, 2021

January 31, 2022

April 30, 2021

3 unchanged sentences

Accounts receivable:

Trade, net of $ 20,343

and $ 9,947 doubtful

account allowance

Trade, net of $ 25,747 and $ 9,947 doubtful account allowance

Inventories, net

1 unchanged sentence

Total Current Assets

Property and Equipment, net, at cost

Property and Equipment, net

Investment in Limited Land Partnership, at cost

5 unchanged sentences

BALANCE SHEETS

October 31, 2021

January 31, 2022

April 30, 2021

4 unchanged sentences

Accrued expenses

Payroll and other expense

Income tax payable

7 unchanged sentences

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

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

shares issued and outstanding

Additional paid-in capital

5 unchanged sentences

Total Stockholders’ Equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements

1 unchanged sentence

INCOME STATEMENTS

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

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2022 AND 2021

Cost of Goods Sold

10 unchanged sentences

Unrealized Gain (Loss) on equity securities

Gain on Investments

( 1,729,000 )

Gain on Sale of Investments

Gain on Sale of Assets

Total Other Income

Total Other Income (Expense)

( 1,085,000 )

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred Tax (Benefit) Expense

Total Income Tax Expense

Deferred Tax Expense (Benefit)

Total Income Tax Expense (Benefit)

Income Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

Weighted Average Number of Common

Shares Outstanding

Average Number of Common Shares Outstanding

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF COMPREHENSIVE INCOME

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

Other Comprehensive Income, Net of Tax

STATEMENT OF COMPREHENSIVE INCOME

THE THREE AND NINE MONTHS ENDED JANUARY 31.

2022 AND 2021

Other Comprehensive Income (Loss), Net of Tax

Unrealized gain (loss)on debt securities:

Unrealized holding gains (losses)arising during period

Income tax benefit (expense) related to other comprehensive income

Income tax benefit (expense) related to other comprehensive

Other Comprehensive Income (Loss)

3 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2021 AND 2020

THE THREE MONTHS ENDED JANUARY 31, 2022 AND 2021

Preferred Stock

Balances, July 31, 2020

Purchases of common stock

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

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

Dividend declared at $0.50

per common share outstanding

Unrealized gain, net of tax effect

Balances, January 31, 2022

Preferred Stock

Balances, October 31, 2020

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31, 2021

accompanying notes to the unaudited condensed financial statements

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2021 AND 2020

THE THREE MONTHS ENDED JANUARY 31, 2022 AND 2021

Treasury Stock

1 unchanged sentence

Accumulated Other Comprehensive

Balances, July 31, 2020

Balances, October 31, 2021

$ ( 4,362,000 )

1 unchanged sentence

Dividend declared at $0.50 per common share outstanding

( 2,079,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Unrealized gain, net of tax effect

Balances, January 31, 2022

$ ( 4,371,000 )

1 unchanged sentence

(Common Class A)

Accumulated Other Comprehensive

Balances, July 31, 2021

Comprehensive

Balances, October 31, 2020

$ ( 4,302,000 )

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

Unrealized gain, net of tax effect

Balances, January 31, 2021

$ ( 4,329,000 )

2 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

THE NINE MONTHS ENDED JANUARY 31, 2022 AND 2021

Preferred Stock

2 unchanged sentences

Dividend declared at $ 0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Unrealized gain, net of tax effect

Balances, January 31, 2022

Preferred Stock

2 unchanged sentences

Dividend declared at $ 0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

Unrealized (loss), net of tax effect

Balances, January 31, 2021

accompanying notes to the unaudited condensed financial statements

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

THE NINE MONTHS ENDED JANUARY 31, 2022 AND 2021

Treasury Stock

7 unchanged sentences

( 2,472,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2020

Unrealized gain, net of tax effect

Balances, January 31, 2022

$ ( 4,371,000 )

2 unchanged sentences

Comprehensive

Beginning balance

Balances, April 30, 2020

$ ( 4,301,000 )

Purchases of common stock

Dividend declared

Dividend declared at $0.42 per common share outstanding

( 2,079,000 )

Unrealized gain (loss), net of tax effect

Ending balance

Unrealized (loss), net of tax effect

Balances, January 31, 2021

$ ( 4,329,000 )

1 unchanged sentence

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDED OCTOBER 31, 2021 AND 2020

STATEMENT OF CASH FLOWS

THE NINE MONTHS ENDED JANUARY 31, 2022 AND 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Adjustments to reconcile net income to net cash provided by operating

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

Depreciation and amortization

1 unchanged sentence

Impairments on investments

Unrealized (gain) on equity securities

( 1,043,000 )

Unrealized (gain) loss on equity investments

( 4,653,000 )

2 unchanged sentences

Deferred income taxes

(Gain) loss on sale of assets

PPP loan debt forgiveness

(Gain) on sale of assets

Changes in assets and liabilities:

2 unchanged sentences

( 1,465,000 )

Prepaid expenses and projects in process

Prepaid expenses

( 1,089,000 )

Other receivables

20 unchanged sentences

NET CHANGE IN CASH AND CASH EQUIVALENTS

( 1,219,000 )

Cash and Cash Equivalents, beginning of period

6 unchanged sentences

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

TO CONDENSED FINANCIAL STATEMENTS

Unaudited Interim Financial Statements

2 unchanged sentences

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.

these unaudited 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

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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.

related to this update beginning in fiscal year 2023.

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

7 unchanged sentences

of accounting.

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.

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 June 2022 and January

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

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

of January 31, 2022 and April 30, 2021, investments consisted of the following:

Schedule of Investments

Investments at

October 31, 2021

January 31, 2022

Municipal bonds

21 unchanged sentences

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.

and the nine months ended January 31, 2022.

As for the corresponding periods last year, management did not record an impairment loss

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

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 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 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.

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”,

when a sale occurs.

For the quarter ended January 31, 2022 the Company had sales of equity securities which yielded gross realized gains

of $ 121,000 and

gross realized losses of $ 27,000 .

For the same period, sales of debt securities did no t

yield any gross realized gains, but gross realized losses of $ 3,000

were recorded.

As for the nine-months ended January

31, 2022 the Company had sales of equity securities which yielded gross realized gains of $ 465,000

and gross realized losses of $ 61,000 .

For the same nine-month period last year, sales of debt securities did no t

yield any gross realized gains, but gross realized losses of $ 13,000

were recorded.

During the quarter ending January

31, 2021, the Company recorded gross realized gains and losses on equity securities of $ 288,000

and $ 35,000 ,

respectively, while sales of debt securities did not yield any gross realized gains, but gross realized losses of $ 3,000

were recorded.

During the nine-months ending

January 31, 2021, the Company recorded gross realized gains and losses on equity securities of $ 575,000

and $ 272,000 ,

respectively.

For the same nine-month period last year, sales of debt securities did no t

yield any gross realized gains, but gross realized losses of $ 9,000

were recorded.

The gross realized loss numbers

include the impaired figures listed in the previous paragraph.

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

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

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

January 31, 2022 and April 30, 2021, respectively.

Loss Breakdown by Investment Type at January 31, 2022

Schedule of Unrealized Loss Breakdown by Investment

Loss Breakdown by Investment Type at October 31, 2021

Less than 12 months, Fair Value

12 unchanged sentences

$ ( 183,000 )

$ ( 280,000 )

Loss Breakdown by Investment Type at April 30, 2021

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the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider

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

these investments to be other-than-temporarily impaired at January 31, 2022.

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 October 31, 2021.

3 Inventories

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

impaired at January 31, 2022.

at January 31, 2022 and April 30, 2021 consisted of the following:

Schedule of Inventories

30 unchanged sentences

Total capital expenditures

October 31, 2021

January 31, 2022

April 30, 2021

7 unchanged sentences

Schedule of Basic and Diluted Earnings per Share

For the three months ended October 31, 2021

For the three months ended January 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended October 31, 2020

For the three months ended January 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2021

For the nine months ended January 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2020

For the nine months ended January 31, 2021

(Denominator)

15 unchanged sentences

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.

Company of approximately $ 16,000 were paid during each quarter ending January 31, 2022 and 2021.

Likewise, the Company paid matching

contributions of approximately $ 48,000 and $ 46,000 during each nine-month period ending January 31, 2022 and 2021, respectively.

Fair Value Measurements

22 unchanged sentences

and Marketable Securities

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

of January 31, 2022, 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.

Our marketable securities are valued using third-party broker statements.

value of the investments 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 table sets forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level

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.

3 unchanged sentences

Assets Measured at Fair Value on a Recurring Basis as of

October 31, 2021

January 31, 2022

Municipal Bonds

Equity Securities

Money Markets and CDs

Money Markets

Total fair value of assets measured on a recurring basis

3 unchanged sentences

Equity Securities

Money Markets and CDs

Money Markets

Total fair value of assets measured on a recurring basis

18 unchanged sentences

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 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.

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, 2021.

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

dipping slightly in sales over the second 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 Company is

on track to have another record setting year for sales.

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

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

Opportunities include keeping up with

the business growth and finding ways to get our products out to our customers in a timelier manner.

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 efficiently as possible

with the hopes of getting the facilities running leaner and more profitable than ever before.

of Operations

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.

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.

sales were $5,054,000 for the quarter ended January 31, 2022, which is a 9.09% increase from the corresponding quarter last year.

Year-to-date net sales were $15,252,000 at January 31, 2022, which is a 14.44% 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 products.

is also seeing continued growth since a major competitor closed its doors at the end of 2019 and having the ability to continue to

work through the COVID-19 pandemic.

of goods sold was 56.61% of net sales for the quarter ended January 31, 2022 and was 51.48% for the same quarter last year.

cost of goods sold percentages were 51.85% for the current nine months and 49.76% for the corresponding nine 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 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.

at less than 50% for both the quarter and year-to-date results.

Management continues to work with and train employees to work more

Raw material prices have soared over the current fiscal year and a significant wage increase went into effect for the

company at the beginning of the second quarter of the current fiscal year.

Management offset some of these added expenses by implementing

a 10% price increase effective January 1, 2022.

expenses increased by $17,000 for the quarter and they increased by $316,000 for the nine-months ended January 31, 2022 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, 2022 was 20.76% of net sales while it was 22.27% of net sales for the same quarter the prior year.

For year-to-date

numbers, operating expense were 21.28% and 21.99% of net sales for the nine months ended January 31, 2022 and 2021, respectively.

The Company 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 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, 2022 was $1,144,000, a 5.92% decrease from the corresponding quarter last year,

which had income from operations of $1,216,000.

Income from operations for the nine months ended January 31, 2022 was $4,098,000,

which is an 8.82% increase from the corresponding nine months last year, which had income from operations of $3,766,000.

expenses for the quarter ended January 31, 2022 was $1,085,000, which is a $5,258,000 decrease from the $4,173,000 other income from

the same quarter last year.

Comparatively, there is a decrease of $5,971,000 in other income for the year-to-date numbers.

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 decrease in the current quarter and year-to-date numbers is unrealized

gain and loss on equity securities.

The Company is at the mercy of the stock market when it comes to these figures and the COVID-19

pandemic and other economic reasons have influenced those numbers.

net income for the quarter ended January 31, 2022 was down $4,286,000, or 96.38%, from the same quarter last year.

Similarly, net

income for the nine-month period ended January 31, 2022 was down $4,204,000, or 53.90%, from the same period in the prior year.

per common share for quarter ended January 31, 2022 were $0.03 per share and $0.73 per share for the year-to-date numbers.

the quarter and nine months ended January 31, 2021 were $0.90 per share and $1.58 per share, respectively.

and capital resources

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

cash decreased $938,000 during the nine months ended January 31, 2022 as compared to an increase of $478,000 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.

During the six-month period

ended October 31, 2021 there was quite a bit of buy/sell activity in the investment accounts.

receivable decreased $91,000 for the nine months ended January 31, 2022 compared with a $376,000 increase for the same period last

The current year decrease is a result of improved sales offset by slightly slower collections of accounts receivable.

of accounts receivable shows that there were 6.61% that were over 90 days at January 31, 2022.

increased $1,465,000 during the current nine-month period compared to an increase of $823,000 last year.

The larger increase in the

current year is due to increases in the cost of raw materials and having more raw materials on hand to supply the increase in sales.

expenses saw a $1,089,000 increase for the current nine months, primarily due to having more prepayments for inventory and prepaying

for some machines that will aid in our production process.

The prior nine months showed a $327,000 decrease in prepaid expenses.

payable shows a $176,000 decrease for the current nine-month period ended January 31, 2022 compared to a $311,000 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.

expenses increased $130,000 for the current nine-month period compared to a $54,000 increase for the nine-month period ended January

The difference in the amounts is primarily due to increased sales commissions and wages.

tax payable increased $163,000 for the current nine-month period, compared to an increase of $249,000 in income tax payable for the

nine-months ended January 31, 2021.

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 $164,000 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 $426,000.

Additionally,

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

During the nine-month

period ended January 31, 2022 the buy/sell activity in the investment accounts was high.

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.

By doing this, the Company gives an independent

third-party firm, who are experts in this field, permission to buy and sell stocks at will.

The Company pays a quarterly service

fee based on the value of the investments.

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

securities for the nine-month period ended January 31, 2022 was $640,000 compared to $440,000 spent in the prior nine-month period.

The Company continues to use “money manager” accounts for most stock transactions.

By doing this, the Company gives an

independent third-party firm, who are experts in this field, permission to buy and sell stocks at will.

The Company pays a quarterly

service fee based on the value of the investments.

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

For the nine-month period ended January 31, 2022, the

Company purchased $35,000 worth of treasury stock.

This is in comparison to $28,000 spent in the same nine months period the

company paid out dividends of $2,256,000 during the nine months ending January 31, 2022.

These dividends were paid during the second

The company declared a dividend of $0.50 per share of common stock on September 30, 2021 and these dividends were paid by

October 31, 2021.

As for the prior year numbers, dividends paid was $1,892,000 for the nine months ending January 31, 2021.

of $0.42 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’ performance:

January 31, 2022

January 31, 2021

Working capital

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Product Development

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

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.

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A variety of installation options

will be available through jumper pin settings such as instant alarm and seven second delay.

are available through jumper pin settings such as instant alarm and seven second delay.

technology is a main area of focus for product development.

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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.

A redesign of our brass water valve

shut-off system is near completion.

Also, we are working on wireless versions of monitoring

devices which include glass break detection, tilt sensing and environmental monitoring.

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.

23 unchanged sentences

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.

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

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

7 unchanged sentences

of accounting.

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.

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.

3 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements