What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-03-17 compared with 2022-12-15 · 297 added, 280 removed, 367 unchanged (61% of the section changed)

Financial Statements

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

unaudited financial statements for the three- and nine-month period ended January 31, 2023, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

October 31, 2022

January 31, 2023

April 30, 2022

1 unchanged sentence

Cash and cash equivalents

Investments and securities, at fair value

Investments and securities

Accounts receivable:

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

Trade, net of allowance for credit losses of $ 26,991

and $ 33,531 ,

Income tax overpayment

10 unchanged sentences

BALANCE SHEETS

October 31, 2022

January 31, 2023

April 30, 2022

5 unchanged sentences

Accrued expenses

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

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

Common stock, Class A, $.

10 par value, 10,000,000 shares authorized, 8,502,881

shares issued and outstanding

10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding

Additional paid-in capital

5 unchanged sentences

Total Stockholders’ Equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

INCOME STATEMENTS

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

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

Cost of Goods Sold

11 unchanged sentences

( 1,729,000 )

( 1,197,000 )

Gain (Loss) on Investments

Total Other Income (Loss)

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

( 1,085,000 )

2 unchanged sentences

Current Expense

Deferred Tax (Benefit) Expense

Deferred Tax Expense (Benefit)

Total Income Tax Expense (Benefit)

3 unchanged sentences

RISK INDUSTRIES, INC.

STATEMENTS OF 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)

STATEMENT OF COMPREHENSIVE INCOME

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

Other Comprehensive Income/(Loss), Net of Tax

Unrealized gain (loss) on debt securities:

Unrealized holding gains (losses) arising during period

Income tax benefit (expense) related to other comprehensive

Other Comprehensive Income (Loss)

Comprehensive Income

2 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2022 AND 2021

THE THREE MONTHS ENDED JANUARY 31, 2023 AND 2022

Preferred Stock

Stock Class A

Balances, July 31, 2021

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31, 2023

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, 2021

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31, 2022

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2022 AND 2021

THE THREE MONTHS ENDED JANUARY 31, 2023 AND 2022

Paid-In Capital

Treasury Stock

1 unchanged sentence

Comprehensive

Balances, July 31, 2021

Paid-In Capital

Balances, October 31, 2022

$ ( 4,550,000 )

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

$ ( 263,000 )

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31, 2023

$ ( 4,552,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

$ ( 139,000 )

2 unchanged sentences

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

Paid-In Capital

Balances, October 31, 2021

$ ( 4,362,000 )

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31, 2022

$ ( 4,371,000 )

2 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

Preferred Stock

1 unchanged sentence

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, 2021

Unrealized gain, net of tax effect

Balances, January 31, 2023

Preferred Stock

Common Stock Class A

Stock Class A

Balances, April 30, 2021

Prior period adjustment for provisions related to depreciation

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

Unrealized (loss), net of tax effect

Balances, January 31, 2022

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

Paid-In Capital

Treasury Stock

1 unchanged sentence

Comprehensive

Paid-In Capital

Balances, April 30, 2022

$ ( 4,547,000 )

$ ( 137,000 )

Prior period adjustment for provisions related to depreciation

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

Dividend declared at $ 0.60

per common share outstanding

( 2,958,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2021

Unrealized gain, net of tax effect

Balances, January 31, 2023

$ ( 4,552,000 )

Treasury Stock

(Common Class A)

$ ( 139,000 )

Comprehensive

Paid-In Capital

Balances, April 30, 2021

$ ( 4,336,000 )

$ ( 137,000 )

Prior period adjustment for provisions related to depreciation

Purchases of common stock

Dividend declared at per common share outstanding

( 2,959,000 )

Dividend declared at $ 0.50

per common share outstanding

( 2,472,000 )

Unrealized gain (loss), net of tax effect

Balances, October 31, 2022

( 2,472,000 )

Unrealized (loss), net of tax effect

Balances, January 31, 2022

$ ( 4,371,000 )

1 unchanged sentence

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDED OCTOBER 31, 2022 AND 2021

STATEMENT OF CASH FLOWS

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

1 unchanged sentence

provided by operating activities:

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

Depreciation and amortization

(Gain) loss on sale of investments

Unrealized (gain) loss on equity securities

( 1,043,000 )

Unrealized (gain) loss on equity investments

Provision for credit losses on accounts receivable

6 unchanged sentences

( 1,465,000 )

Prepaid expenses and projects in process

Prepaid expenses

( 1,089,000 )

Other receivables

20 unchanged sentences

NET CHANGE IN CASH AND CASH EQUIVALENTS

( 1,485,000 )

( 1,219,000 )

Cash and Cash Equivalents, beginning of period

6 unchanged sentences

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1 Unaudited Interim Financial Statements

TO CONDENSED FINANCIAL STATEMENTS

Interim Financial Statements

accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the

1 unchanged sentence

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

value of assets.

these unaudited 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 condensed 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.

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

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

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

January 31, 2023.

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

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

6 unchanged sentences

Dividend and interest income are reported as earned.

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

of January 31, 2023 and April 30, 2022, investments consisted of the following:

Schedule of Investments

Investments at

October 31, 2022

January 31, 2023

Unrealized Gains

Unrealized Losses

Municipal bonds

5 unchanged sentences

April 30, 2022

Unrealized Gains

Unrealized Losses

Municipal bonds

16 unchanged sentences

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.

the quarter or the nine months ended January 31, 2023 and 2022.

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

Therefore, either a realized gain or loss is recorded

when a sale happens.

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

when a sale occurs.

For the quarter ended January 31, 2023 the Company had sales of equity securities which yielded gross realized gains

of $ 118,000 and gross realized losses of $ 69,000 .

1 unchanged sentence

but gross realized losses of $ 5,000 were recorded.

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

As for the nine-months ended January 31, 2023 the Company had sales of equity securities

which yielded gross realized gains of $ 403,000 and gross realized losses of $ 522,000 .

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

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

did no t yield any gross realized gains, but gross realized losses of $ 46,000 were recorded.

During the quarter ending October 31, 2021,

During the quarter ending January 31, 2022,

the Company recorded gross realized gains and losses on equity securities of $ 121,000 and $ 27,000 , 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”,

securities did no t yield any gross realized gains, but gross realized losses of $ 3,000 were recorded.

During the nine-months ending January

31, 2022, the Company recorded gross realized gains and losses on equity securities of $ 465,000 and $ 61,000 , respectively.

nine-month period last year, sales of debt securities did no t yield any gross realized gains, but gross realized losses of $ 13,000 were

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

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

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

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

Loss Breakdown by Investment Type at October 31, 2022

January 31, 2023 and April 30, 2022, respectively.

Loss Breakdown by Investment Type at January 31, 2023

Schedule of Unrealized Loss Breakdown by Investment

3 unchanged sentences

Unrealized Loss

Municipal bonds

22 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 October 31, 2022 and April 30, 2022

these investments to be other-than-temporarily impaired at January 31, 2023 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 October 31, 2022 and April 30, 2022.

3 Inventories

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

Schedule of Inventories

impaired at January 31, 2023 and April 30, 2022.

at January 31, 2023 and April 30, 2022 consisted of the following:

of Inventories

Raw materials

7 unchanged sentences

Schedule of Financial Information Relating to Industry Segments

Security alarm products

Security alarm

Cable & wiring tools

Other products

Total net revenue

2 unchanged sentences

Cable & wiring tools

Other products

Total income from operations

3 unchanged sentences

Other products

Corporate general

Total depreciation and amortization

Total depreciation and

Capital expenditures:

2 unchanged sentences

Other products

Corporate general

Total capital expenditures

October 31, 2022

April 30, 2022

Identifiable assets:

Security alarm products

Security alarm

Cable & wiring tools

Other products

Corporate general

Earnings per Share

1 unchanged sentence

of Basic and Diluted Earnings Per Share

For the three months ended October 31, 2022

the three months ended January 31, 2023

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended October 31, 2021

Effect of dilutive Convertible

Preferred Stock

the three months ended January 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2022

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2023

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2021

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2022

(Denominator)

Effect of dilutive Convertible Preferred Stock

Effect of dilutive

Convertible Preferred Stock

Retirement Benefit Plan

13 unchanged sentences

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

Company of approximately $ 14,000 and $ 16,000 were paid during each quarter ending January 31, 2023 and 2022, respectively.

the Company paid matching contributions of approximately $ 43,000 and $ 48,000 during each nine-month period ending January 31, 2023 and

2022, respectively.

14 unchanged sentences

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.

and Marketable Securities

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

of January 31, 2023 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.

The marketable securities are valued using third-party broker

The value of the majority of securities is derived from quoted market information.

The inputs to the valuation are generally

classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for

municipal bonds and REITs, the inputs are recorded as Level 2.

Our marketable securities are valued using third-party broker

The value of the investments is derived from quoted market information.

The inputs to the valuation are generally classified

as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal

bonds and REITs, the inputs are recorded as Level 2.

Value Hierarchy

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

following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level

within the fair value hierarchy.

2 unchanged sentences

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of

October 31, 2022

Municipal Bonds

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Assets Measured at Fair Value on a Recurring Basis as of

Measured at Fair Value on a Recurring Basis as of

January 31, 2023

Total fair value of

assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of

April 30, 2022

Municipal Bonds

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Total fair value of

assets measured on a recurring basis

Subsequent Events

17 unchanged sentences

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

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

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

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.

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

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

Company’s performance in operations stayed consistent through the three quarters of the current fiscal year with the third quarter

dipping slightly in sales over the second quarter of the current fiscal year.

This is mainly due the fact that our business is tied to

the housing market and the winter months usually show a slowdown and the colder and snowier than normal weather has been keeping employees

away from our locations at times.

Opportunities include keeping up with the business growth and finding ways to get our products out

to our customers in a timelier manner.

One way we are doing this is by looking into more automation.

We also continue to look at businesses

that might be a good fit to purchase.

We also have new products that are scheduled to be introduced by the end of the fiscal year.

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

of Operations

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 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.

sales were $4,366,000 for the quarter ended January 31, 2023, which is a 13.61% decrease

from the corresponding quarter last year.

Year-to-date net sales were $15,194,000 at January

31, 2023, which is a 0.38% decrease from the same period last year.

The slight reduction

in sales is due to our general winter and holiday slowdown and there has been more winter

weather than normal.

But we continue to operate our business with our ongoing commitment

to outstanding customer service and our ability to customize products.

of goods sold was 55.98% of net sales for the quarter ended January 31, 2023 and was 56.61%

for the same quarter last year.

Year-to-date cost of goods sold percentages were 53.15% for

the current nine months and 51.85% for the corresponding nine months last year.

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.

Management continues to work with and train employees to work more efficiently.

prices have soared over the current fiscal year because of inflation and wages have had to

be raised to remain competitive in the job market.

Management offset some of these added

expenses by implementing a 10% price increase effective January 1, 2023.

expenses decreased by $27,000 for the quarter and they decreased by $6,000 for the nine-months

ended January 31, 2023 as compared to the corresponding periods last year.

When comparing

percentages in relation to net sales, the operating expenses for the quarter ended January

31, 2023 was 23.41% of net sales while it was 20.76% of net sales for the same quarter the

For year-to-date numbers, operating expense were 21.32% and 21.28% of net sales

for the nine months ended January 31, 2023 and 2022, respectively.

The Company has been able

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

the actual dollar amount increase is due to increased commission amounts, related to increased

sales, and additional labor costs related wage increases.

from operations for the quarter ended January 31, 2023 was $900,000, a 21.33% decrease from

the corresponding quarter last year, which had income from operations of $1,144,000.

from operations for the nine months ended January 31, 2023 was $3,878,000, which is a 5.37%

decrease from the corresponding nine months last year, which had income from operations of

income and expenses for the quarter ended January 31, 2023 shows income of $1,775,000, which

is a $2,860,000 increase from the from the corresponding quarter last year, which had an

expense amount of $1,085,000.

Comparatively, there is an increase of $144,000 in other income

for the year-to-date numbers.

Most of the activity in these accounts consists of investment

interest, dividends, real gains or losses on sale of investments, and unrealized gains or

losses on equity securities.

The main reason for the increase in the current quarter and

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

The Company is at

the mercy of the stock market when it comes to these figures and market has seen a recovery

since the COVID-19 pandemic and other economic factors.

net income for the quarter ended January 31, 2023 was up $1,848,000, or 1147.83%, from the

same quarter last year.

Similarly, net income for the nine-month period ended January 31,

2023 was up $72,000, or 2%, from the same period in the prior year.

per common share for quarter ended January 31, 2023 were $0.41 per share and $0.74 per share

for the year-to-date numbers.

EPS for the quarter and nine months ended January 31, 2022

were $0.03 per share and $0.73 per share, respectively.

and capital resources

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

cash decreased $813,000 during the nine months ended January 31, 2023 as compared to a decrease

of $938,000 during the corresponding period last year.

receivable decreased $824,000 for the nine months ended January 31, 2023 compared with a

$91,000 decrease for the same period last year.

The current year decrease is a result of

a slight decline in sales and slower collections of accounts receivable.

An analysis of accounts

receivable shows that there were 7.02% that were over 90 days at January 31, 2023.

● Inventories

increased $2,444,000 during the current nine-month period compared to an increase of $1,465,000

The larger increase in the current year is due to increases in the cost of raw

materials and having more raw materials on hand to not run into shortages like what has happened

expenses saw a $458,000 decrease for the current nine months, primarily due to having inventory

and machinery delivered during the current nine-month period;

therefore, having less money

in prepayments of raw materials on the books.

The prior nine months showed a $1,089,000 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.

During the six-month period

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

tax overpayment increased $478,000 for the current nine-month period, compared to having

a decrease of $163,000 in income tax payable for the nine-months ended January 31, 2022.

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 an $84,000 increase for the current nine-month period ended January 31, 2023

compared to a $176,000 decrease for the prior nine-month period.

The company strives to pay

all invoices within terms, and the variance in increases is primarily due to the timing of

receipt of products and payment of invoices.

expenses increased $184,000 for the current nine-month period compared to a $130,000 increase

for the nine-month period ended January 31, 2022.

The difference in the amounts is primarily

due to increased wages.

for our investment activities, the Company spent approximately $221,000 on acquisitions of

property and equipment for the current nine-month period, in comparison with the corresponding

nine months last year, where there was activity of $164,000.

● Additionally,

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

quality stocks.

During the nine-month period ended January 31, 2023 the buy/sell activity

in the investment accounts was continued as usual.

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.

By doing this, the Company gives an independent

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

The Company pays a quarterly service

fee based on the value of the investments.

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

For the six-month period ended October 31, 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.

securities for the nine-month period ended January 31, 2023 was $648,000 compared to $640,000

spent in the prior nine-month period.

The Company continues to use “money manager”

accounts for most stock transactions.

By doing this, the Company gives an independent third-party

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

pays a quarterly service fee based on the value of the investments.

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

For the nine-month

period ended January 31, 2023, the Company purchased $5,000 worth of treasury stock.

is in comparison to $35,000 spent in the same nine months period the prior year.

company paid out dividends of $2,689,000 during the nine months ending January 31, 2023.

These dividends were paid during the second quarter.

The company declared a dividend of $0.60

per share of common stock on September 30, 2022 and these dividends were paid by October

As for the prior year numbers, dividends paid was $2,256,000 for the nine months

ending January 31, 2022.

A dividend of $0.50 per common share was declared and paid during

the second fiscal quarter last year.

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

October 31, 2022

October 31, 2021

Working capital

(current assets – current liabilities)

Current ratio

(current assets / current liabilities)

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

assets / current liabilities)

+ investments + AR) / current liabilities)

Product Development

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

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

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

Items currently in various

stages of the development process include:

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

There has been demand from our customers for this

type of high security magnetic reed switch.

Items currently in the

development process include:

proof contacts that will be UL listed for hazardous locations.

There has been demand from

our customers for this type of high security magnetic reed switch.

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

These sensors are for high security applications such

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

These sensors

are for high security applications such as government buildings, military use, nuclear facilities,

and financial institutions.

technology is a main area of focus for product development.

We are considering adding wireless technology to some of our current

A wireless contact switch is in the final stages of development.

Also, we are working on wireless versions of monitoring

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

A redesign of our brass water valve shut-off

system is near completion.

We are considering adding wireless

technology to some of our current products.

A wireless contact switch is in the final stages

of development.

Also, we are working on wireless versions of monitoring devices which include

glass break detection, tilt sensing and environmental monitoring.

A redesign of our brass

water valve shut-off system is near completion.

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

11 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements