What changed in this filing

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Item 1. Financial Statements

2022-12-15 compared with 2022-09-20 · 301 added, 235 removed, 346 unchanged (61% of the section changed)

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

Financial Statements

unaudited financial statements for the three-and six-month periods ended October 31, 2022, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2022

October 31, 2022

April 30, 2022

3 unchanged sentences

Accounts receivable:

Trade, net of allowance for credit losses of $ 20,036

Trade, net of allowance for credit losses of $ 24,139 and $ 33,531

Income tax overpayment

Inventories, net

6 unchanged sentences

Intangible Assets, net

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2022

October 31, 2022

April 30, 2022

3 unchanged sentences

Dividends payable

Deferred income

Accrued expenses:

Payroll and related expenses

Property taxes

Payroll and other expense

Income tax payable

6 unchanged sentences

Stockholders’ Equity

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

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

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

6 unchanged sentences

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE MONTHS ENDED JULY 31, 2022 AND 2021

July 31, 2022

July 31, 2021

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

Cost of Goods Sold

1 unchanged sentence

( 2,729,000 )

( 5,631,000 )

( 5,047,000 )

Operating Expenses

5 unchanged sentences

Unrealized Gain (Loss) on Equity Securities

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

( 1,008,000 )

( 1,197,000 )

Gain (Loss) on Investments

Total Other Income (Loss)

( 1,037,000 )

Income Before Provisions for Income Taxes

2 unchanged sentences

Deferred Tax (Benefit) Expense

Total Income Tax Expense

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Total Income Tax Expense (Benefit)

Income Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE MONTHS ENDED JULY 31, 2022 AND 2021

July 31, 2022

July 31, 2021

Other Comprehensive Income, Net of Tax

Unrealized gain on debt securities:

Unrealized holding gains arising during period

Income tax expense related to other comprehensive income

Other Comprehensive Income

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

Other Comprehensive (Loss), Net of Tax

Unrealized (loss) on debt securities:

Unrealized holding (losses) arising during period

Income tax benefit related to other comprehensive income

Other Comprehensive (Loss)

Comprehensive Income

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2022 and 2021

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2022 AND 2021

Preferred Stock

Balances, April 30, 2021

Stock Class A

Balances, July 31, 2021

Purchases of common stock

Unrealized gain, net of tax effect

Dividend declared at $ 0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

Preferred Stock

Stock Class A

Balances, July 31, 2022

Purchases of common stock

Dividend declared at $ 0.60 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2022 AND 2021

Treasury Stock

(Common Class A)

Comprehensive

Balances, July 31, 2021

$ ( 4,336,000 )

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

( 2,472,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

$ ( 4,362,000 )

Treasury Stock

(Common Class A)

Comprehensive

Balances, July 31, 2022

$ ( 4,549,000 )

$ ( 117,000 )

Purchases of common stock

Dividend declared at $ 0.60 per common share outstanding

( 2,958,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

$ ( 4,550,000 )

$ ( 263,000 )

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

Preferred Stock

Stock Class A

Balances, April 30, 2021

Prior period adjustment for tax provisions related to depreciation

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2022

accompanying notes to the condensed financial statements

Dividend declared at $ 0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

Preferred Stock

Common Stock Class A

Balances, April 30, 2022

Prior period adjustment for provisions related to depreciation

Purchases of common stock

Dividend declared at $ 0.60 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2022 and 2021

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

Treasury Stock

1 unchanged sentence

Comprehensive

April 30, 2021

Balances, April 30, 2021

$ ( 4,336,000 )

Purchases of common stock

gain (loss), net of tax effect

Balances, July 31, 2021

Dividend declared at $ 0.50 per common share outstanding

( 2,472,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

$ ( 4,362,000 )

Treasury Stock

1 unchanged sentence

Comprehensive

April 30, 2022

Balances, April 30, 2022

$ ( 4,547,000 )

$ ( 137,000 )

Prior period adjustment for tax provisions related to depreciation

Prior period adjustment for provisions related to depreciation

Purchases of common stock

gain, net of tax effect

Balances, July 31, 2022

Dividend declared at per common share outstanding

( 2,959,000 )

accompanying notes to the condensed financial statements

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

$ ( 4,550,000 )

$ ( 263,000 )

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2022 AND 2021

July 31, 2022

July 31, 2021

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

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

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization

1 unchanged sentence

Unrealized (gain) loss on equity securities

( 1,043,000 )

Provision for credit losses on accounts receivable

4 unchanged sentences

Accounts receivable

Prepaid expenses

Employee receivables

( 1,755,000 )

( 1,528,000 )

Prepaid expenses and projects in process

Other receivables

Income tax overpayment

Increase (decrease) in:

7 unchanged sentences

(Purchase) of marketable securities

(Purchase) of long-term investment

Net cash from investing activities

2 unchanged sentences

Dividends paid

( 2,689,000 )

( 2,255,000 )

Net cash from financing activities

( 2,692,000 )

( 2,281,000 )

NET CHANGE IN CASH AND CASH EQUIVALENTS

( 1,485,000 )

( 1,219,000 )

Cash and Cash Equivalents, beginning of period

2 unchanged sentences

Cash payments for:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

TO CONDENSED FINANCIAL STATEMENTS

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1 Unaudited Interim Financial Statements

1 unchanged sentence

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

It is suggested

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

Company’s April 30, 2022 annual report on Form 10-K (the “Annual Report”).

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.

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, 2022 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

1 unchanged sentence

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

Significant Accounting Policies

— The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed

in our Annual Report, and there have been no changes to the Company’s significant accounting policies during the three months ended

July 31, 2022.

Financial Statement Adjustment – In connection with the preparation of our financial statements, we identified an

immaterial misstatement to our financial statements in the Company’s Annual Report.

The misstatement is related to a

difference in deferred taxes on depreciation for a few years and up through the year ended April 30, 2022.

In accordance with Staff

Accounting Bulletins No.

99”) Topic 1.M, “Materiality” and SAB No.

99 Topic 1.N “Considering

the Effects of Misstatements when Quantifying Misstatements in the Current Year Financial Statements,” we evaluated the

misstatement and determined that the related impact was not consequential to our financial statements for any annual or interim

period for fiscal 2022, any other prior period, nor would the cumulative impact of correcting the misstatement be consequential to

our results of operations and equity for the fiscal and interim periods of 2023.

Issued Accounting Pronouncements — There are no new accounting pronouncements that are expected to have a significant impact

on our financial statements.

Accounting Policies — The significant accounting policies used in preparation of these condensed consolidated financial statements

are disclosed in our Annual Report, and there have been no changes to the Company’s significant accounting policies during the

six months ended October 31, 2022.

are no 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

6 unchanged sentences

Dividend and interest income are reported as earned.

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

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

Schedule of Investments

Investments at

July 31, 2022

October 31, 2022

Municipal bonds

22 unchanged sentences

to determine if impairment changes are required.

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

July 31, 2022 and 2021, respectively.

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

the quarter or the six months ended October 31, 2022 and 2021.

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

1 unchanged sentence

when a sale happens.

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

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

of $ 89,000 and gross realized losses of $ 187,000 .

1 unchanged sentence

but gross realized losses of $ 12,000 were recorded.

During the quarter ending July 31, 2021, the Company recorded gross realized gains

and losses on equity securities of $ 238,000 and $ 8,000 , respectively, while sales of debt securities did no t yield any gross realized

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

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

previous paragraph.

As for the six-months ended October 31, 2022 the Company had sales of equity securities

which yielded gross realized gains of $ 285,000 and gross realized losses of $ 453,000 .

For the same six-month period, sales of debt securities

did no t yield any gross realized gains, but gross realized losses of $ 41,000 were recorded.

During the quarter ending October 31, 2021,

the Company recorded gross realized gains and losses on equity securities of $ 106,000 and $ 26,000 , respectively, while sales of debt

securities did no t yield any gross realized gains or losses.

During the six-months ending October 31, 2021, the Company recorded gross

realized gains and losses on equity securities of $ 343,000 and $ 33,000 , respectively, while sales of debt securities did no t yield any

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

The gross realized loss numbers include the impaired figures

listed in the previous paragraph.

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

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

July 31, 2022 and April 30, 2022, respectively.

October 31, 2022 and April 30, 2022, respectively.

Loss Breakdown by Investment Type at October 31, 2022

Schedule of Unrealized Loss Breakdown by Investment

Loss Breakdown by Investment Type at July 31, 2022

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

9 unchanged sentences

$ ( 182,000 )

$ ( 1,312,000 )

Loss Breakdown by Investment Type at April 30, 2022

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

14 unchanged sentences

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

these investments to be other-than-temporarily impaired at July 31, 2022 and April 31, 2022.

these investments to be other-than-temporarily impaired at October 31, 2022 and April 30, 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 July 31, 2022 and April 30, 2022.

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

impaired at October 31, 2022 and April 30, 2022.

3 Inventories

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

Schedule of Inventories

1 unchanged sentence

Work in process

Inventory in transit

Finished Goods

Inventory gross

25 unchanged sentences

Total capital expenditures

July 31, 2022

October 31, 2022

April 30, 2022

7 unchanged sentences

of Basic and Diluted Earnings Per Share

For the three months ended July 31, 2022

For the three months ended October 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2021

For the three months ended October 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2021

(Denominator)

Effect of dilutive Convertible Preferred Stock

6 Retirement Benefit Plan

12 unchanged sentences

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

Matching contributions of approximately

$ 16,000 and $ 17,000 were paid in each of the quarters ending July 31, 2022 and 2021 respectively.

Matching contributions by the

Company of approximately $ 13,000 and $ 15,000 were paid during each quarter ending October 31, 2022 and 2021, respectively.

the Company paid matching contributions of approximately $ 29,000 and $ 33,000 during each six-month period ending October 31, 2022 and

2021, respectively.

7 Fair Value Measurements

22 unchanged sentences

and Marketable Securities

of July 31, 2022 and April 30, 2022, our investments consisted of money markets, publicly traded equity securities, real estate investment

of October 31, 2022 and April 30, 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.

11 unchanged sentences

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2022

October 31, 2022

Municipal Bonds

11 unchanged sentences

FINANCIAL INFORMATION

Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS

FINANCIAL CONDITION

RESULTS OF OPERATIONS

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

9 unchanged sentences

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

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

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

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

financial statements and discussion for the fiscal year ended April 30, 2022.

Company’s performance remained steady during the quarter ended July 31, 2022 as compared to the quarter ended July 31, 2021.

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

investments are showing losses in the current quarter, while for the same quarter last year both of those categories were income amounts.

Also, gross profit and income from operations are lower when comparing to the same quarter last year.

This is because of increased cost

of raw materials and labor.

The uptick in sales is mainly due to a price increase that implemented in January 2022.

This was done to

offset the increases in raw material and labor costs that the Company has incurred to continue to do business.

The Company is still feeling

the increased demand of having one of our major competitors close its doors at the end of calendar year 2019.

The Company still has a

considerable back-order log and there has been times that certain raw materials have not been available.

Opportunities include focusing

on ramping up production to meet customer’s needs to get product to them in a timely manner, which includes looking into more automation,

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

We also have new products that are scheduled to enter the

marketplace by the end of the calendar year.

Challenges in the coming months include continuing to get product out to customers in a

timely manner and dealing with COVID-19 pandemic restrictions and inflation.

Possible COVID-19 challenges include, but are not limited

to, price increases and/or delays in the supply chain, reduced sales, workforce interruptions, and economic conditions impacting the

stock market.

Management continues to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities

running leaner and more profitable than ever before.

Company’s sales continue to grow through the first half of the current fiscal year with the second quarter showing an increase

in sales over the first quarter of the current fiscal year.

This is mainly due to having the ability to obtain raw materials that are

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

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

As far as overall company performance, the net income is down when comparing the current six-month period to the prior six-month

This is because the current year realized and unrealized gains (losses) on investments are showing losses, while for the same

period last year both of those categories were income amounts.

Opportunities include keeping up with the business growth, finding ways

to get our products out to our customers in a timelier manner, which includes looking into more automation, 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

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 and inflation.

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

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

Management continues

to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable

than ever before.

of Operations

sales for the quarter ended July 31, 2022 showed a 5.15% increase over the same period in the prior year.

The Company saw increased

sales resulting primarily from a competitor no longer selling competing products and implementing a price increase that became effective

on January 1, 2022.

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

and our ability to customize products.

of goods sold increased from 46.78% of sales in the prior year, to 51.00% in the current quarter, which is just outside of Management’s

goal to keep labor and other manufacturing expenses below 50%.

The increased cost of goods sold percentage is a result of inflation

sales were $5,617,000 for the quarter ended October 31, 2022, which is a 7.11% increase from the corresponding quarter last year.

Year-to-date net sales were $10,827,000 at October 31, 2022, which is a 6.16% increase from the same period last year.

The increases

in sales are primarily a result of a competitor no longer selling competing products and implementing a price increase that became

effective on January 1, 2022.

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 52.95% of net sales for the quarter ended October 31, 2022 and was 52.04% for the same quarter last year.

cost of goods sold percentages were 52.01% for the current six months and 49.49% for the corresponding six months last year.

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

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

The increased cost of goods sold percentages are a result of inflation

that has afflicted the economy recently.

Management has seen significant price increases in raw material and has had to

raise wages to remain competitive in the job market.

expenses decreased by $20,000 when comparing the current year quarter to the same quarter for the prior year.

When comparing

percentages in relation to net sales, the operating expenses decreased to 20.86% for the quarter ended July 31, 2022 as compared

to 22.34% for the corresponding quarter last year.

The dollar amount decrease is the result of decreased general and administration

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

historical ratios.

from operations for the quarter ended July 31, 2022 was at $1,466,000, which is a 4.18% decrease from the corresponding quarter last

year, which had income from operations of $1,530,000.

income and expenses showed a $102,000 loss for the quarter ended July 31, 2022 as compared to a $817,000 gain for the quarter ended

July 31, 2021.

For the three months ended July 31, 2022, $189,000 of unrealized losses from equity securities were recorded, compared

to $420,000 of unrealized gains from equity securities recorded for the three months ended July 31, 2021.

The remainder of the decrease

is primarily due to losses on sales of investments.

Company’s provision for income taxes showed a decrease of $288,000 from $601,000 in the quarter ended July 31, 2021 to $313,000

for the quarter ended July 31, 2022.

This decrease is primarily due to decreased deferred taxes resulting from unrealized losses

on equity securities for the current quarter.

turn, net income for the quarter ended July 31, 2022 was $1,051,000, a 39.81% decrease from the corresponding quarter last year,

which showed net income of $1,746,000.

per share for the quarter ended July 31, 2022 were $0.21 per common share and $0.35 per common share for the quarter ended July 31,

Management has seen significant price increases in raw materials and has had to raise wages

to remain competitive in the job market.

expenses were up $39,000 for the quarter and were up $19,000 for the six-months ended October 31, 2022 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, 2022 was 20.12% of net sales while it was 20.80% of net sales for the same quarter the prior year.

For year-to-date numbers,

operating expense were 20.48% and 21.55% of net sales for the six months ended October 31, 2022 and 2021, 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, 2022 was at $1,513,000, which is a 6.25% increase from the corresponding quarter

last year, which had income from operations of $1,424,000.

Income from operations for the six months ended October 31, 2022 was at

$2,979,000, which is just an 0.85% increase from the corresponding six months last year, which had income from operations of $2,954,000.

income and expenses are down when comparing the current quarter to the same quarter of the prior year, with a decrease of $1,798,000

in the current quarter.

Comparably, other income and expenses are down by $2,717,000 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 decreases in the current quarter

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

The Company is at the mercy of the stock market when

it comes to these figures and inflation and the current state of the economy has influenced these numbers.

net income for the quarter ended October 31, 2022 was down $1,081,000, or 64.04%, over the same quarter last year.

Similarly, net

income for the six-month period ended October 31, 2022 was down $1,775,000, or 51.69%, over the same period in the prior year.

per common share for quarter ended October 31, 2022 were $0.12 per share and $0.34 per share for the year-to-date numbers.

the quarter and six months ended October 31, 2021 were $0.34 per share and $0.69 per share, respectively.

and capital resources

cash increased $1,571,000 during the quarter ended July 31, 2022 as compared to an increase of $1,005,000 during the corresponding

quarter last year.

The details are listed below.

receivable decreased $499,000 for the quarter ending July 31, 2022 compared with a $154,000 decrease for the same quarter last year.

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

Management is always working with customers to collect on accounts and to keep past due accounts to a minimum.

of accounts receivable shows that 5.24% of the balance was over 90 days at July 31, 2022.

increased $947,000 during the current quarter as compared to a $549,000 increase last year.

The larger increase is primarily due

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

and labor costs continue to increase.

the quarter ended July 31, 2022 there was a $317,000 decrease in prepaid expenses compared to an increase of $196,000 for the quarter

ended July 31, 2021.

The current decrease is due to having inventory delivered during the quarter;

therefore, having less money in

prepayments of raw materials on the books.

payable shows a decrease of $21,000 for the quarter ended July 31, 2022 compared to a decrease of $236,000 for the same quarter the

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

Management strives to pay all payables

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

expenses increased $121,000 for the current quarter as compared to a $99,000 increase for the quarter ended July 31, 2021.

The difference

in the amounts is primarily due to timing of when payroll periods end and increases in sales commissions and wages.

tax payable for the quarter ended July 31, 2022 increased $409,000, compared to a $547,000 increase for the quarter ended July 31,

The current smaller increase is due to smaller tax estimates in relation to the decreased income amount.

corporate income tax rate in Nebraska decreased to 7.5% from 7.81% for the current fiscal year.

Company purchased $74,000 of property and equipment during the current fiscal quarter.

In comparison, $40,000 was spent on purchases

of property and equipment during the corresponding quarter last year.

cash decreased $1,485,000 during the six months ended October 31, 2022 as compared to a decrease of $1,219,000 during the corresponding

period last year.

receivable decreased $75,000 for the six months ended October 31, 2022 compared with a $185,000 decrease for the same period last

The smaller current year decrease is a result of improved sales and having a slight improvement in collections of accounts

receivable over the last year.

An analysis of accounts receivable shows that 5.02% of the receivables were over 90 days at October

31, 2022, while 4.84% were over 90 days for the same period last year.

increased $1,755,000 during the current six-month period as compared to a $1,528,000 increase last year.

The bigger increase in the

current year is primarily due to having more inventory on hand to reduce the likelihood of running into a shortage on some major

raw materials and seeing increases in costs of these raw materials.

expenses saw a $798,000 decrease for the current six months, primarily due to having inventory delivered during the current six-month

therefore, having less money in prepayments of raw materials on the books.

The prior year six months showed a $337,000 increase

in prepaid expenses.

tax overpayment increased $364,000 for the current six-month period, compared to having an increase of $140,000 in income tax payable

for the six-months ended October 31, 2021.

The current increase is due to having to pay additional income tax that was due for the

prior fiscal year during the current period.

payable shows a decrease for the current six-month period of $80,000 as it shows a decrease for the prior six-month periods of $183,000.

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 increased $48,000 for the current six-month period as compared to a $4,000 decrease for the six-month period ended October

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

for our investment activities, the Company purchased $209,000 of property and equipment during the current six-month period.

In comparison,

$40,000 was spent on purchases of property and equipment during the corresponding six months last year.

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

Cash spent on purchases of

marketable securities for the quarter ended July 31, 2022 was $111,000 compared to $98,000 spent during the quarter ended July 31,

During the six-month period

ended October 31, 2022 there was quite a bit of buy/sell activity in the investment accounts.

Net cash spent on purchases of marketable

securities for the six-month period ended October 31, 2022 was $224,000 compared to $208,000 spent in the prior six-month period.

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

1 unchanged sentence

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

The Company pays quarterly service fees

based on the value of the investments.

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

For the quarter ended July 31, 2022 the Company

bought back $2,000 worth of treasury stock, but for the quarter ended July 31, 2021, the Company did not buyback any treasury stock.

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

Risk Industries’ performance:

July 31, 2022

July 31, 2021

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, 2022,

the Company purchased $3,000 worth of treasury stock, in comparison to $26,000 repurchased in the corresponding six-month period

company declared a dividend of $0.60 per share of common stock on September 30, 2022, which was paid out during the second quarter.

This is an increase to the dividend of $0.50, 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, 2022

October 31, 2021

Working capital

2 unchanged sentences

(current assets / current liabilities)

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

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

Product Development

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

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

Items currently in various stages of the development process include:

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

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

Items currently in various

stages of the development process include:

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

1 unchanged sentence

type of high security magnetic reed switch.

updated version of the pool access alarm (PAA) has met electrical listing testing (ETL) approval and production has started.

next-generation model combines our battery operated DPA series with our hard wired 289 series.

A variety of installation options

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

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

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system is near completion.

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

that would complement our existing operations.

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

without the need for outside financing.

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

new products and increase sales and profits.

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

line that would complement our existing operations.

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

achieved without the need for outside financing.

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

to deliver new products and increase sales and profits.

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

Our products are

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

Our products are tied

to the housing industry and will fluctuate with building trends.

RISK INDUSTRIES, INC.

FINANCIAL INFORMATION

and Qualitative Disclosures About Market Risk

disclosure does not apply.

Quantitative and Qualitative Disclosures about Market Risk

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