What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-08-15 compared with 2021-08-12 · 345 added, 396 removed, 437 unchanged (63% of the section changed)

Item 8 Financial Statements

to Financial Statements

Risk Industries, Inc.

Report of Independent Registered Public Accounting Firm

Balance Sheets—April 30, 2021 and 2020

Statements of Income For the Years Ended April 30, 2021 and 2020

Statements of Comprehensive Income For the Years Ended April 30, 2021 and 2020

Statements of Changes in Stockholders’

Equity For the Years Ended April 30, 2021 and 2020

Statements of Cash Flows For the Years Ended April 30, 2021 and 2020

George Risk Industries, Inc.

Report of Independent Registered Public Accounting Firm (PCAOB:

Balance Sheets—April 30, 2022 and 2021

Statements of Income For the Years Ended April 30,

2022 and 2021

Statements of Comprehensive Income For the Years Ended

April 30, 2022 and 2021

Statements of Changes in Stockholders’ Equity

For the Years Ended April 30, 2022 and 2021

Statements of Cash Flows For the Years Ended April

30, 2022 and 2021

Notes to Financial Statements

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

George Risk Industries, Inc.

the Board of Directors and Stockholders of George Risk Industries

on the Financial Statements

We have audited the accompanying balance sheets

of George Risk Industries, Inc.

(the Company) as of April 30, 2021 and 2020, and the related statements of income, comprehensive income,

stockholders’

equity, and cash flows for each of the years in the two-year period ended April 30, 2021, 2020, and the related notes

(collectively referred to as the financial statements).

In our opinion, the financial statements present fairly, in all material respects,

the financial position of the Company as of April 30, 2021 and 2020, and the results of its operations and its cash flows for each of

the years in the two-year period ended April 30, 2021 and 2020, in conformity with accounting principles generally accepted in the United

States of America.

These financial statements are the responsibility

of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are

required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and

regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with

the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were

we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits, we are required to obtain an

understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of

the Company’s internal control over financial reporting.

have audited the accompanying balance sheets of George Risk Industries, Inc.

(the Company) as of April 30, 2022, and 2021, and the related

statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended

April 30, 2022, and the related notes (collectively referred to as the financial statements).

In our opinion, the financial statements

present fairly, in all material respects, the financial position of the Company as of April 30, 2022, and 2021, and the results of its

operations and its cash flows for each of the years in the two-year period ended April 30, 2022, in conformity with accounting principles

generally accepted in the United States of America.

financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s

financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board

(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities

laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits,

we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion

on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures

to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that

respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well

as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below

are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to

the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our

especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion

on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate

opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter - Revenue Recognition

Refer to Note 1 of the Financial Statements

Critical Audit Matter Description

The Company primarily generates revenue through

non-complex sales transactions that require limited judgement.

However, there are instances in which revenue contracts contain complexities

that are subject to critical judgment around when the performance obligation is satisfied.

These specific elements of revenue are variable

considerations and returns and allowances.

audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error

or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding

the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant

estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits

provide a reasonable basis for our opinion.

Audit Matters

critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated

or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial

statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters

does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit

matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Audit Matter – Revenue Recognition – Refer to Note 1 of the Financial Statements

Audit Matter Description

Company primarily generates revenue through non-complex sales transactions that require limited judgement.

However, there are instances

in which revenue contracts contain complexities that are subject to critical judgement around when the performance obligation is satisfied.

These specific elements of revenue are variable considerations and returns and allowances.

Consideration

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are recorded net of estimated variable consideration and returns and allowances, based on known or expected adjustments.

matter was considered a critical audit matter as there is a high degree of auditor effort in performing procedures and evaluating audit

evidence related to contractual terms in customer arrangements to determine the amount of consideration.

matter was considered a critical audit matter as there is a high degree of auditor effort in performing procedures and evaluation audit

evidence related to contractual terms in customer arrangements to determine the amounts of consideration.

the Critical Audit Matter was Addressed in the Audit

principal procedures related to the Company’s revenue recognition for these specific elements are the following:

evaluated management’s significant accounting policies related to various elements of revenue recognition.

principal procedures related to the Company’s revenue recognition for these specific elements are the following:

evaluated management’s significant accounting policies related to various elements of revenue recognition.

performed analytical procedures to test the reasonableness of recorded balances.

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and related recognition of revenue on a sample basis.

Audit Matter –

Valuation of Investments –

Refer to Note 1 and Note 3 of the Financial Statements

Audit Matter Description

Audit Matter – Valuation of Investments – Refer to Note 1 and Note 3 of the Financial Statements

Critical Audit Matter Description

Company has investments in publicly traded equity securities, state and municipal debt securities, REITS, and money markets and they

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obligations under terms of the security.

These judgements can have a significant impact on the Company’s reported earnings if they

should prove to be significantly inaccurate.

the Critical Audit Matter was Addressed in the Audit

principal procedures related to the Company’s process for debt securities valuations as well as the process for equity securities

other than temporary impairment evaluation included.

evaluated management’s significant accounting policies related to the identification of other than temporary impairment.

specialists, with specialized skills and knowledge, were involved in the assessment of the fair values for a sample of Level 2 investments.

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were appropriate.

have served as the Company’s auditor since 1992.

George Risk Industries, Inc.

We have served as the Company’s auditor since 1992.

Lake City, UT

George Risk Industries,

Balance Sheets

As of April 30, 2022 and 2021

and cash equivalents

and securities

net of allowance for credit losses of $ 33,531 and $ 9,947 for 2022 and 2021, respectively

Current Assets

Cash and cash equivalents

Investments and securities

Accounts receivable:

Trade, net of $9,947 and $7,306 doubtful account allowance for 2021 and 2020, respectively

Income tax overpayment

Inventories, net

Prepaid expenses

Total Current Assets

Property and Equipment, at cost, net

Investment in Limited Land Partnership, at cost

Projects in process

Total Other Assets

Intangible Assets, net

accompanying notes are an integral part of these financial statements.

and Equipment, at cost, net

in Limited Land Partnership, at cost

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

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As of April 30, 2022 and 2021

LIABILITIES AND STOCKHOLDERS’

AND STOCKHOLDERS’ EQUITY

payable, trade

and related expenses

Current Liabilities

Accounts payable, trade

Dividends payable

Accrued expenses:

Payroll and related expenses

Income tax payable

Notes payable

Total Current Liabilities

Long-Term Liabilities

Deferred income taxes

Total Long-Term Liabilities

Total Liabilities

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

Common stock, Class A, $.10 par value, 10,000,000 shares

authorized, 8,502,881 shares issued and outstanding

Additional paid-in capital

Accumulated other comprehensive income (loss)

Retained earnings

and Contingencies

Stockholders’

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

and outstanding

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

paid-in capital

other comprehensive income (loss)

treasury stock, 3,571,693 and 3,556,412 shares, at cost

Total Stockholders’

TOTAL LIABILITES AND STOCKHOLDERS’

accompanying notes are an integral part of these financial statements.

( 4,547,000 )

( 4,336,000 )

Stockholders’ Equity

LIABILITES AND STOCKHOLDERS’ EQUITY

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

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For the years ended April 30, 2022 and 2021

April 30, 2021

April 30, 2020

Cost of Goods Sold

of Goods Sold

( 10,720,000 )

( 9,176,000 )

and Administrative

Operating Expenses

General and Administrative

Rent Paid to Related Parties

Total Operating Expenses

Income From Operations

From Operations

Income (Expense)

and Interest Income

Gain (Loss) on Equity Securities

( 2,764,000 )

on Sale of Investment

on Sale of Assets

Other Income (Expense)

Interest Expense

Dividend and Interest Income

Unrealized Gain (Loss) on Equity Securities

Gain (Loss) on Sale of Investment

Gain (Loss) on Sale of Assets

Total Other Income (Expense)

Income Before Provisions for Income Taxes

Provisions for Income Taxes

Current Expense

Deferred tax (benefit) expense

Total Income Tax Expense

Earnings Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding (Basic)

Weighted Average Number of Common Shares Outstanding (Diluted)

accompanying notes are an integral part of these financial statements.

( 1,307,000 )

Before Provisions for Income Taxes

for Income Taxes

tax (benefit) expense

Income Tax Expense

Per Share of Common Stock

Average Number of Common Shares Outstanding (Basic)

Average Number of Common Shares Outstanding (Diluted)

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

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For the years ended April 30, 2022 and 2021

Comprehensive Income (Loss), Net of Tax

gain (loss) on debt securities:

holding gains (losses) arising during period

tax (expense) benefit related to other comprehensive income

Comprehensive Income (Loss)

Comprehensive

The accompanying notes are an integral part of

these financial statements.

Risk Industries, Inc.

Statements of Stockholders’ Equity

For the Years Ended April 30, 2022 and 2021

April 30, 2020

of common stock

declared at $ 0.42 per common share outstanding

gain (loss), net of tax effect

April 30, 2021

Other Comprehensive Income (Loss), Net of Tax

Unrealized gain (loss) on debt securities:

Unrealized holding gains (losses) arising during period

Income tax (expense) benefit related to other comprehensive income

Other Comprehensive Income (Loss)

Comprehensive Income

accompanying notes are an integral part of these financial statements.

of common stock

declared at $ 0.50 per common share outstanding

gain (loss), net of tax effect

April 30, 2022

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

Statements of Stockholders’

Statements of Stockholders’ Equity

For the Years Ended April 30, 2022 and 2021

Preferred Stock

Stock Class A

Balances, April 30, 2019

Comprehensive

April 30, 2020

$ ( 4,301,000 )

Purchases of common stock

Dividend declared at $0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, April 30, 2020

( 2,079,000 )

gain (loss), net of tax effect

( 4,336,000 )

Purchases of common stock

Dividend declared at $0.42 per common share outstanding

Unrealized gain (loss), net of tax effect

Balance, April 30, 2021

accompanying notes are an integral part of these financial statements.

Dividend declared

( 2,472,000 )

gain (loss), net of tax effect

$ ( 4,547,000 )

$ ( 137,000 )

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

Statements of Stockholders’

For the Years Ended April 30, 2021 and 2020

Treasury Stock

(Common Class A)

Accumulated Other Comprehensive

Income (Loss)

Statements of Cash Flows

Flows From Operating Activities:

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

and amortization

(gain) on sale of investments

on investments

(gain) loss on equity securities

( 7,007,000 )

loan forgiven

for credit losses on accounts receivable

for obsolete inventory

on sale of assets

in assets and liabilities:

( 2,430,000 )

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

of Cash Flows

April 30, 2021

April 30, 2020

Cash Flows From Operating Activities:

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

Depreciation and amortization

Realized (gain) loss on sale of investments

Impairment on investments

Unrealized (gain) loss on equity securities

PPP loan forgiven

Bad debt expense

Reserve for obsolete inventory

(Gain) loss on sale of assets

Deferred income taxes

Changes in assets and liabilities:

(Increase) decrease in:

Accounts receivable

Prepaid expenses

Other receivables

Income tax overpayment

Increase (decrease) in:

Accounts payable

Accrued expenses

Income tax payable

Net cash from operating activities

Cash Flows From Investing Activities:

Proceeds from sale of assets

(Purchase) of property and equipment

Proceeds from sale of marketable securities

(Purchase) of marketable securities

(Purchase) of long-term investment

Net cash from investing activities

Cash Flows From Financing Activities:

Proceeds from issuance of new debt

(Purchase) of treasury stock

Dividends paid

Net cash from financing activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, beginning of year

Cash and Cash Equivalents, end of year

Supplemental Disclosure for Cash Flow Information:

Cash payments for:

Income taxes paid

Interest expense

Cash receipts for:

accompanying notes are an integral part of these financial statements.

(decrease) in:

cash from operating activities

Flows From Investing Activities:

from sale of assets

of property and equipment

from sale of marketable securities

of marketable securities

of long-term investment

cash from investing activities

Flows From Financing Activities:

of treasury stock

( 2,257,000 )

( 1,891,000 )

cash from financing activities

( 2,468,000 )

( 1,926,000 )

Change in Cash and Cash Equivalents

( 1,248,000 )

and Cash Equivalents, beginning of year

and Cash Equivalents, end of year

Disclosure for Cash Flow Information:

payments for:

receipts for:

The accompanying notes are an integral part of

these financial statements.

Risk Industries, Inc.

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water sensors, electronic switching devices, high security switches, and wire and cable installation tools.

of Business —

The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors,

of Business — The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors,

security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire and cable installation tools and various

other sensors and devices.

and Cash Equivalents —

The Company considers all investments with a maturity of three months or less to be cash equivalents.

and Cash Equivalents — The Company considers all investments with a maturity of three months or less to be cash equivalents.

The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits.

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it is not exposed to any significant credit risk on cash and cash equivalents.

for Doubtful Accounts —

Accounts receivable are customer obligations due under normal trade terms.

The Company sells its products

to security alarm distributors, alarm installers, and original equipment manufacturers.

The Company performs continuing credit evaluations

of its customers’

financial condition and the Company generally does not require collateral.

Company records an allowance for doubtful accounts based on an analysis of specifically identified customer balances.

The Company has

a limited number of customers with individually substantial amounts due at any given date.

Any unanticipated change in any one of these

customers’

credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material

effect on the results of operations in the period in which such changes or events occur.

After all attempts to collect a receivable have

failed, the receivable is written off.

The Company has recorded an allowance for doubtful accounts of $9,947 for the year ended April

30, 2021 and $7,306 for the year ended April 30, 2020.

For the fiscal year ended April 30, 2021, bad debt expense was $1,828.

fiscal year ended April 30, 2020, bad debt recovery was $156.

Receivable and Allowance for Estimated Credit Losses — Accounts receivable are customer obligations due under normal trade

The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers.

extends credit to its customers based on their credit worthiness, and performs continuing credit evaluations of its customers’

financial condition.

If the Company believes the extension of credit is not advisable, other payment methods such as prepayments are

Balances deemed uncollectible by the Company are written off against our allowance for credit loss accounts.

Company maintains an allowance for estimated credit losses related to accounts receivable for future expected credit losses resulting

from the inability or unwillingness of our customers to make required payments.

We estimate our allowance for credit losses based on

relevant information such as historical experience, current conditions, and future expectation of specifically identified customer balances.

This allowance is adjusted as appropriate to reflect current conditions.

The Company has recorded an allowance for estimated credit losses

of $ 33,531 for the year ended April 30, 2022 and $ 9,947 for the year ended April 30, 2021.

The provision for credit losses on accounts

receivable was $ 24,199 for the fiscal year ended April 30, 2022, and $ 1,828 for the fiscal year ended April 30, 2021.

Concentrations

of Credit Risk — The Company has a limited number of customers with individually substantial amounts due at any given date.

Any unanticipated change in any one of these customers’ credit worthiness or other matters affecting the collectability of amounts

due from such customers could have a material effect on the results of operations in the period in which such changes or events occur.

— Inventories are stated at the lower of cost or net realized value.

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Nature of Business and Summary of Significant Accounting Policies, continued

and Equipment —

Property and equipment are recorded at cost.

and Equipment — Property and equipment are recorded at cost.

Depreciation is calculated based on the following estimated useful

lives using the straight-line method:

of Property and Equipment

Classification

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Furniture and fixtures

Property and equipment, gross

Accumulated depreciation

( 4,826,000 )

( 4,527,000 )

Property and equipment, net

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to operations.

in Limited Land Partnership —

In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development

in Limited Land Partnership — In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development

in Winter Park-Grand County, CO for investment purposes for a total of $ 200,000 .

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Management has evaluated this investment and does not believe there is any impairment and that the full cost will be recovered

Assets —

Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined

Assets — Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined

their lives to be indefinite.

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of April 30, 2022, future amortization of intangible assets is expected as follows:

of Future Amortization of Intangible Assets

Fiscal year end

and Diluted Earnings per Share —

The Company computes earnings per share in accordance with ASC 260-10-45 Earnings per Share,

and Diluted Earnings per Share — The Company computes earnings per share in accordance with ASC 260-10-45 Earnings per Share,

which requires presentation of both basic and diluted earnings per share on the face of the statement of income.

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and $ 67,000 for the years ended April 30, 2022 and 2021, respectively.

Taxes —

Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in

the Company’s financial statements or tax returns.

Taxes — Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in

the Company’s financial statements or tax returns.

Measurement of the deferred tax items is based on enacted tax laws.

the future consequences of differences between financial reporting bases and tax bases of the Company’s assets or liabilities result

in a deferred tax asset, we evaluate the probability of realizing the future benefits comprising that asset and record a valuation allowance

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not to be sustained upon examination by taxing authorities.

A “more likely than not”

tax position is measured as the largest

A “more likely than not” tax position is measured as the largest

amount of benefit that is greater than a fifty percent likelihood of being realized upon ultimate settlement, or else a full reserve

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Interest and penalties accrued on uncertain tax positions are recorded as income tax expense.

It has been determined that the Company

does not have uncertain tax positions on its tax returns for the years 2020, 2019, and prior.

Based on evaluation of the 2020

transactions and events, the Company does not have any material

uncertain tax positions that require measurement.

has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2021, 2020, and prior.

Based on evaluation of the 2022 transactions and events, the Company does not have any material uncertain tax positions that require

Nature of Business and Summary of Significant Accounting Policies, continued

Estimates —

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

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.

Value of Financial Instruments —

Certain financial instruments are required to be recorded at fair value.

Value of Financial Instruments — Certain financial instruments are required to be recorded at fair value.

Changes in assumptions

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are disclosed in Note 11.

The accounting policies for the Company’s principal investments are as follows:

— The accounting policies for the Company’s principal investments are as follows:

Debt Securities and Equity Securities:

Effective May 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2016-01 “Financial Instruments-Overall

(ASC Subtopic 825-10):

Recognition and Measurement of Financial Assets and Financial Liabilities”

(“ASU 2016-01”).

Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”).

As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income.

adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded

in Accumulated other comprehensive income (loss) (“AOCI”).

The Company’s debt securities are currently designated as

in Accumulated other comprehensive income (loss) (“AOCI”).

The Company’s debt securities are currently designated as

available-for-sale.

4 unchanged sentences

Investment gains and losses on sales of securities are generally determined on a first-in-first-out

(“FIFO”) basis.

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

2 unchanged sentences

of investments that are in an unrealized position.

When an “other-than-temporary”

decline is identified, the Company will

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.

1 unchanged sentence

to determine if impairment changes are required.

Recognition —

Effective May 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue

from Contracts with Customers.”

The Company recognizes product revenue using a five-step approach to determine the amount and timing

Recognition — Effective May 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, “Revenue

from Contracts with Customers.” The Company recognizes product revenue using a five-step approach to determine the amount and timing

of revenue to be recognized.

The five-step approach requires (1) identifying the contract with the customer, (2) identifying the performance

obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and

(5) recognizing revenue when performance obligations are satisfied.

The Company recognizes revenue for product sales upon transfer of

title to the customer.

Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement.

documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services

have been rendered.

The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction

and whether the sales price is subject to refund or adjustment.

Payments received from customers in advance of product shipment or revenue

recognition are treated as deferred revenues and recognized when the product is shipped.

obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations

in the contract and (5) recognizing revenue when performance obligations are satisfied.

The Company recognizes revenue for product sales

upon transfer of title to the customer.

Customer purchase orders and/or contracts are generally used to determine the existence of an

Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product

delivery or that services have been rendered.

The Company assesses whether a price is fixed or determinable based upon the payment terms

associated with the transaction and whether the sales price is subject to refund or adjustment.

Payments received from customers in advance

of product shipment or revenue recognition are treated as deferred revenues and recognized when the product is shipped.

of Business and Summary of Significant Accounting Policies, continued

Consideration —

The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange

Consideration — The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange

for transferring goods.

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contractual rates and historical payment trends, when estimating variable consideration.

Returns —

In the normal course of business, the Company may allow customers to return product per the provisions in a sale

Returns — In the normal course of business, the Company may allow customers to return product per the provisions in a sale

Estimated product returns are recorded as a reduction in reported revenues with offsetting entries recorded in the balance

1 unchanged sentence

expected to receive.

Warranties —

In the normal course of business, the Company offers warranties for a variety of its products.

Warranties — In the normal course of business, the Company offers warranties for a variety of its products.

The specific terms

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for the estimated cost of product warranty at the time of sale based on historical experience.

and Handling Costs —

The Company considers all shipping and handling to be fulfillment activities and not a separate

performance obligation.

and Handling Costs — The Company considers all shipping and handling to be fulfillment activities and not a separate performance

Shipping and handling costs are recorded as cost of sales.

and Development Costs —

Generally, costs related to the research, design, and development of products are charged to engineering

and Development Costs — Generally, costs related to the research, design, and development of products are charged to engineering

expense as incurred.

1 unchanged sentence

Comprehensive

Income —

US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures

Income — US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures

of the components of non-stockholder changes in equity on an annual basis.

1 unchanged sentence

in equity during a period except those resulting from fiscal investments by and distributions to stockholders.

Reporting and Related Information —

The Company designates the internal organization that is used by management for allocating

resources and assessing performance as the source of the Company’s reportable segments.

Reporting and Related Information — The Company designates the internal organization that is used by management for allocating

resources and assessing performance as the source of the Company’s reportable segments.

US GAAP also requires disclosures about

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information disclosures.

of Business and Summary of Significant Accounting Policies, continued

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.

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.

Early adoption is permitted.

The Company does not expect the adoption of ASU 2020-01 to

have a material impact on its financial statements.

Nature of Business and Summary of Significant Accounting Policies, continued

Issued Accounting Pronouncements — In 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 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.

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.

Adopted Accounting Standards — In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic

326),” Effective May 1, 2021, we adopted ASU 2016-13, which requires financial assets measured at amortized cost, such as our

trade receivables, to be presented net of expected credit losses, which may be estimated based on relevant information such as historical

experience, current conditions, and future expectations for each pool of similar financial assets.

We adopted ASU 2016-13 using the modified

retrospective method, whereby the guidance was applied prospectively as of the date of adoption and prior periods are not restated.

cumulative effect of adoption was not material.

Nature of Business and Summary of Significant Accounting Policies, continued

Events –

Management has evaluated all events or transactions that occurred after April 30, 2021 through August 11, 2021, the

Events – Management has evaluated all events or transactions that occurred after April 30, 2022 through July 29, 2022, the

report date of the financial statements.

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

of Inventories

Raw materials

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Inventory in transit

inventory gross

allowance for obsolete inventory

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

and January 2044.

and September 2042 .

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.

Dividend and interest income are reported as earned.

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

Schedule of Investments

Investments at

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Municipal bonds

$ ( 229,000 )

Equity securities

$ ( 473,000 )

Money Markets and CDs

$ ( 705,000 )

Investments at

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Municipal bonds

Corporate bonds

Equity securities

$ (1,180,000 )

Money Markets and CDs

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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 investments for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the

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The investments are periodically evaluated to determine if impairment changes are required.

As a result of this standard, management recorded impairment losses of $79,000 for the year ended April 30, 2021 and $157,000 for the

year ended April 30, 2020.

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

As a result of this standard, management did not have to record any impairment losses for the year ended April 30, 2022, but management

did record an impairment loss of $ 79,000 for the year ended April 30, 2021.

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

Therefore, there is either a realized gain or loss that

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As for debt securities,

gross realized gains were $4,000 and gross realized losses were $154,000 for the fiscal year ending April 30, 2020.

The gross realized

loss numbers include the impaired figures listed in the previous paragraph.

Additionally, proceeds from sales of securities available

for sale were $21,000 for the fiscal year ended April 30, 2021 and were $776,000 for the prior fiscal year.

there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $ 13,000

for the fiscal year ending April 30, 2021.

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

Additionally, proceeds from sales of securities available for sale were $ 452,000 for the fiscal year ended April 30, 2022 and were $ 21,000

for the prior fiscal year.

Investments, continued

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Loss Breakdown by Investment Type at April 30, 2022

of Unrealized Loss Breakdown by Investment

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

$ ( 142,000 )

$ ( 229,000 )

Equity securities

$ ( 424,000 )

$ ( 473,000 )

$ ( 567,000 )

$ ( 138,000 )

$ ( 705,000 )

Loss Breakdown by Investment Type at April 30, 2021

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12 months or greater

Unrealized Loss

Municipal bonds

Equity securities

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

$ ( 122,000 )

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

The contractual terms

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

not consider these investments to be other-than-temporarily impaired at April 30, 2021.

not consider these investments to be other-than-temporarily impaired at April 30, 2022 and 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

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Management has evaluated the individual holdings and does not consider

these investments to be other-than-temporarily impaired at April 30, 2021.

these investments to be other-than-temporarily impaired at April 30, 2022 and 2021.

Retirement Benefit Plan

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

Retirement Savings Plan (the “Plan”).

The Plan is a

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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.

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.

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$ 63,000 and $ 61,000 were paid in each of the fiscal years ending April 30, 2022 and 2021, respectively.

Stockholders’

Stock —Each share of the Series #1 preferred stock is convertible at the option of the holder into five shares of Class A common

Stockholders’ Equity

Stock — Each share of the Series #1 preferred stock is convertible at the option of the holder into five shares of Class A common

stock and is also redeemable at the option of the board of directors at $ 20 per share .

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shall be of equal rank but may vary as to terms and conditions.

A Common Stock —The holders of the Class A common stock are entitled to receive dividends as declared by the board of directors.

No dividends may be paid on the Class A common stock until the holders of the Series #1 preferred stock have been paid .

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contacting the Company.

Transfer Agent —The Company does not have an independent stock transfer agent.

The Company maintains all stock records.

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

of Basic and Diluted Earnings Per Share

April 30, 2022

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Commitments, Contingencies, and Related Party Transactions

Company leased a building from Bonita Risk until the Company purchased the building from her in November 2019 for $200,000.

is a majority stockholder, a director and employee of the Company.

This building contains the Company’s sales and accounting departments,

maintenance department, engineering department and some production facilities.

This lease required a minimum payment of $1,535 on a month-to-month

The total lease expense for this arrangement per year was $0 and $7,675 for the fiscal years ended April 30, 2021 and 2020, respectively.

of the directors of the board, Joel Wiens, is the principal shareholder of FirsTier Bank.

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governmental, business

and individuals’

actions that have been and continue to be taken in response to the pandemic;

and individuals’ actions that have been and continue to be taken in response to the pandemic;

the impact of the pandemic on economic

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clients to pay for our services and solutions;

and any closures of our and our clients’

offices and facilities.

and any closures of our and our clients’ offices and facilities.

Any of these events

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consisted of the following:

of Income Tax Provision

Year Ended April 30,

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of income taxes with Federal and State taxable income:

of Reconciliation of Income Taxes with Federal and State Taxable Income

Income before income taxes

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Nondeductible expenses and timing differences

( 7,763,000 )

Taxable income

following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income

The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:

Schedule of Statutory Rate to Income Before Income Taxes

Income tax provision at statutory rate

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Other temporary and permanent differences

( 2,289,000 )

Income tax expense

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Deferred tax assets (liabilities) consist of the following components at April 30, 2022 and 2021:

Summary of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities):

$ ( 124,000 )

Inventory valuation

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Accumulated unrealized (gain)/loss on investments

( 1,807,000 )

( 2,702,000 )

Net deferred tax assets (liabilities)

$ ( 1,742,000 )

Federal tax rate

State tax rate

Blended statutory rate

$ ( 2,735,000 )

Business Segments

following is financial information relating to industry segments:

Schedule of Financial Information Relating to Industry Segments

Quarter ended

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switch sales made up 86 % of total sales for the fiscal year ended April 30, 2022 and 85 % of total sales for the fiscal year ended April

Fair Value Measurements

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

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.

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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 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.

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

Valuation 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.

Valuation 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.

Value Measurements, continued

and Marketable Securities

of April 30, 2021, The Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as certain

state and municipal bonds.

of April 30, 2022 and 2021, The Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as

certain state and municipal bonds.

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

The value of the majority of securities

is derived from quoted market information.

The inputs to the valuation are classified as Level 1 given the active market for these securities;

The value of the

majority of securities is derived from quoted market information.

The inputs to the valuation are 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;

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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

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Municipal Bonds

Corporate Bonds

Equity Securities

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Paycheck Protection Program Loan

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

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.

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In January 2021 it was determined that PPP loan forgiveness was not taxable.

The loan forgiveness amount is included in the “Other”

line of the Other Income (Expense) section of the income statement.

9 Disagreements on Accounting and Financial Disclosures

The loan forgiveness amount is included in the “Other” line of the Other Income (Expense) section of the income statement.

9 Disagreements

on Accounting and Financial Disclosures

were no disagreements with accountants on accounting and financial disclosure.

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-K

Item 8. Financial Statements and Supplementary Data