What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2023-07-31 compared with 2022-08-15 · 324 added, 318 removed, 464 unchanged (58% of the section changed)

Item 8 Financial Statements

8 Financial Statements

to Financial Statements

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

Risk Industries, Inc.

of Independent Registered Public Accounting Firm

the Board of Directors and Stockholders of George Risk Industries

Sheets—April 30, 2023 and 2022

of Income For the Years Ended April 30, 2023 and 2022

of Comprehensive Income For the Years Ended April 30, 2023 and 2022

of Changes in Stockholders’ Equity For the Years Ended April 30, 2023 and 2022

of Cash Flows For the Years Ended April 30, 2023 and 2022

to Financial Statements

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

the Board of Directors and

of George Risk Industries, Inc.

on the Financial Statements

39 unchanged sentences

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

Audit Matter Description

Critical 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.

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, returns and allowances.

Consideration

1 unchanged sentence

Accordingly, revenues

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 evaluation audit

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

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

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

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

the Critical Audit Matter was Addressed in the Audit

4 unchanged sentences

invoices, and relevant communication.

contractual terms in customer arrangements that impact management determination of the variable consideration related to the products

contractual terms in customer arrangements that impact management determination of the variable consideration related to the productions

and related recognition of revenue on a sample basis.

12 unchanged sentences

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.

other than temporary impairment evaluation included are the following:

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

2 unchanged sentences

were appropriate.

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

Haynie and Company

have served as the Company’s auditor since 1992.

Littleton, CO

July 31, 2023

Risk Industries, Inc.

of April 30, 2023 and 2022

Current Assets:

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.

Balance Sheets (Continued)

As of April 30, 2022 and 2021

cash equivalents

Investments and securities

Accounts receivable:

Trade, net of allowance

for credit losses of $ 17,922 and $ 33,531 for 2023 and 2022, respectively

Income tax overpayment

Inventories, net

Total Current Assets

Property and Equipment, at cost, net

Investment in Limited

Land Partnership, at cost

Projects in process

Total Other Assets

Intangible Assets,

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

Sheets (Continued)

of April 30, 2023 and 2022

AND STOCKHOLDERS’ EQUITY

payable, trade

and related expenses

Current Liabilities

Accounts payable,

Dividends payable

Deferred income

Accrued expenses

Total Current Liabilities

Long-Term Liabilities

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)

Total Long-Term Liabilities

Total Liabilities

Commitments and Contingencies

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

Additional paid-in capital

Accumulated other comprehensive

income (loss)

Retained earnings

treasury stock, 3,572,338 and 3,571,693 shares, at cost

1 unchanged sentence

( 4,547,000 )

Total Stockholders’

TOTAL LIABILITES AND

STOCKHOLDERS’ EQUITY

LIABILITES AND STOCKHOLDERS’ EQUITY

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

Income Statements

For the years ended April 30, 2022 and 2021

of Goods Sold

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

the years ended April 30, 2023 and 2022

Cost of Goods

( 10,605,000 )

( 10,720,000 )

and Administrative

Operating Expenses:

From Operations

Income (Expense)

and Interest Income

Gain (Loss) on Equity Securities

General and Administrative

Total Operating Expenses

Income From Operations

Other Income (Expense)

Dividend and Interest

Unrealized (Loss) on

Equity Securities

( 2,764,000 )

on Sale of Investment

Gain (Loss) on Sale

of Investment

on Sale of Assets

Other Income (Expense)

Total Other Income (Expense)

( 1,307,000 )

Before Provisions for Income Taxes

for Income Taxes

tax (benefit) expense

Income Before Provisions for Income Taxes

Provisions for Income Taxes

Current Expense

tax (benefit)

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.

Statements of Comprehensive Income

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.

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.

Risk Industries, Inc.

Statements of Stockholders’ Equity

For the Years Ended April 30, 2022 and 2021

of Comprehensive Income

the years ended April 30, 2023 and 2022

Other Comprehensive (Loss), Net of Tax

Unrealized (loss) on

debt securities:

Unrealized holding (losses)

arising during period

tax benefit related to other comprehensive income

Comprehensive (Loss)

Comprehensive Income

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

of Stockholders’ Equity

the Years Ended April 30, 2023 and 2022

April 30, 2021

of common stock

declared at $ 0.42 per common share outstanding

gain (loss), net of tax effect

Purchases of common stock

Dividend declared at $ 0.50 per common share

Unrealized gain (loss), net of tax effect

April 30, 2022

of common stock

declared at $ 0.50 per common share outstanding

gain (loss), net of tax effect

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

April 30, 2023

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

Statements of Stockholders’ Equity

For the Years Ended April 30, 2022 and 2021

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

of Stockholders’ Equity

the Years Ended April 30, 2023 and 2022

Stock (Common Class A)

Accumulated Other

Comprehensive

1 unchanged sentence

$ ( 4,336,000 )

Purchases of common stock

Dividend declared at $0.50 per common share outstanding

of common stock

Dividend declared at $ 0.50

per common share outstanding

( 2,472,000 )

gain (loss), net of tax effect

Unrealized gain (loss),

net of tax effect

April 30, 2022

( 4,547,000 )

Prior period adjustment

for provisions related to depreciation

Purchases of common stock

Dividend declared

Dividend declared at $ 0.60

per common share outstanding

( 2,958,000 )

gain (loss), net of tax effect

Unrealized gain (loss),

net of tax effect

April 30, 2023

$ ( 4,554,000 )

$ ( 161,000 )

The accompanying notes are an integral part of

these financial statements.

George Risk Industries, Inc.

Statements of Cash Flows

$ ( 4,554,000 )

$ ( 161,000 )

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

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

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 loss on equity

Provision for credit

losses on accounts receivable

Reserve for obsolete

(Gain) on sale of assets

Deferred income taxes

Changes in assets and

(Increase) decrease

Accounts receivable

( 3,604,000 )

loan forgiven

for credit losses on accounts receivable

for obsolete inventory

on sale of assets

in assets and liabilities:

( 2,430,000 )

(decrease) in:

cash from operating activities

Prepaid expenses

Other receivables

Income tax overpayment

Increase (decrease)

Accounts payable

Accrued expenses

Net cash from operating

Flows From Investing Activities:

from sale of assets

of property and equipment

from sale of marketable securities

of marketable securities

Proceeds from sale of

(Purchase) of property

and equipment

Proceeds from sale of

marketable securities

(Purchase) of marketable

of long-term investment

cash from investing activities

Net cash from investing

( 1,275,000 )

Flows From Financing Activities:

7 unchanged sentences

( 1,135,000 )

( 1,248,000 )

and Cash Equivalents, beginning of year

1 unchanged sentence

Disclosure for Cash Flow Information:

payments for:

receipts for:

The accompanying notes are an integral part of

these financial statements.

Cash payments for:

Income taxes paid

Interest expense

Cash receipts for:

accompanying notes are an integral part of these financial statements.

Risk Industries, Inc.

to Financial Statements

Nature of Business and Summary of Significant Accounting Policies

of Business and Summary of Significant Accounting Policies

Risk Industries, Inc.

13 unchanged sentences

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

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

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

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

5 unchanged sentences

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.

of $ 17,922 for the year ended April 30, 2023 and $ 33,531 for the year ended April 30, 2022 For the fiscal year ended April 30, 2023,

the provision for credit losses on accounts receivable was a credit of $ 17,171 compared to an expense of $ 24,199 for the fiscal year

ended April 30, 2022.

Concentrations

5 unchanged sentences

The Company uses actual costs to price its manufactured inventories, approximating average costs.

Nature of Business and Summary of Significant Accounting Policies, continued

of Business and Summary of Significant Accounting Policies, continued

and Equipment — Property and equipment are recorded at cost.

10 unchanged sentences

( 4,826,000 )

Property and equipment, net

Property and equipment,

expense of $ 323,000 and $ 312,000 was charged to operations for the years ended April 30, 2023 and 2022, respectively.

7 unchanged sentences

years, but many efforts to sell the property have not materialized.

Over the years, there have been a total of $ 144,000 of additional

Over the years, there has been a total of $ 144,000 of additional

contributions to aid in improvements and recurring expenses such as debt service, utilities, taxes, maintenance, insurance, and professional

2 unchanged sentences

their lives to be indefinite.

The two intangible assets currently being amortized are (1) a non-compete agreement with a useful live

of 5 years and (2) intellectual property with a useful live of 15 years.

As of April 30, 2022, the Company had $ 1,271,000 of net intangible

asset costs, while the net intangible assets costs at April 30, 2021 were $ 1,394,000 .

Amortization expense was $ 123,000 for the years

ended April 30, 2022 and 2021, respectively.

Nature of Business and Summary of Significant Accounting Policies, continued

The intangible asset currently being amortized is intellectual property with a useful life of 15 years.

As of April 30, 2023 the Company had $ 1,149,000 of net intangible asset costs, while the net intangible assets costs at April 30, 2022

were $ 1,271,000 .

Amortization expense was $ 122,000 for the year ended April 30, 2023 and $ 123,000 for the year ended April 30, 2022,

respectively.

of Business and Summary of Significant Accounting Policies, continued

of April 30, 2023, 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,

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

Basic earnings per share

is computed by dividing net earnings available to common stockholders by the weighted average number of outstanding common shares during

Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period.

Dilutive earnings

per share excludes all potential common shares if their effect is anti-dilutive.

and Diluted Earnings per Share — The Company computes earnings per share in accordance with Accounting Standards Codification

(“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.

Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted

average number of outstanding common shares during the period.

Diluted earnings per share gives effect to all dilutive potential common

shares outstanding during the period.

Dilutive earnings per share excludes all potential common shares if their effect is anti-dilutive.

— Advertising costs are expensed as incurred and are included in selling expenses.

14 unchanged sentences

is established against the tax asset or a liability is recorded.

Tax years open for examination by taxing authorities are 2018, 2019,

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

The Internal Revenue Service (“IRS”) may generally access

additional income tax records for the most recent three years.

This would generally prevent the IRS from opening an examination for years

ending on or before April 30, 2019.

However, there are exceptions that can extend the statute of limitations to six years, and in some

cases, prevent the statute of limitations from ever expiring.

Interest and penalties accrued on uncertain tax positions are recorded

as income tax expense.

of Business and Summary of Significant Accounting Policies, continued

has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2022, 2021, 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

on evaluation of the 2023 transactions and events, the Company does not have any material uncertain tax positions that require measurement.

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

12 unchanged sentences

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”).

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

available-for-sale.

Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities

are recorded directly in AOCI and presented net of related changes in deferred income taxes.

Purchases and sales of debt securities and

equity securities are recorded on the trade date.

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

(“FIFO”) basis.

Effective May 1, 2018, the Company adopted Accounting Standards Update 2016-01 “Financial Instruments-Overall (ASC Subtopic 825-10):

Recognition and Measurement of Financial Assets and Financial Liabilities”.

As a result, the Company measures its equity securities

at fair value and recognizes any changes in fair value in net income.

Prior to 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 available-for-sale.

Available-for-sale securities are reported at fair

value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented, net of related changes,

in deferred income taxes.

Purchases and sales of debt securities and equity securities are recorded on the trade date.

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

6 unchanged sentences

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

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

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.

Recognition —The Company accounts for revenue using the guidance provided by 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.

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.

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

32 unchanged sentences

information disclosures.

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, 2022 through July 29, 2022, the

report date of the financial statements.

During this period, the Company did not have any material recognizable subsequent events.

Period 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 fiscal year end 2022 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.

Events – Management has evaluated all events or transactions that occurred after April 30, 2023 and through the date of this

During this period, the Company received news about its investment in the limited land partnership.

The sale of this property

(called Idlewild) closed on June 30, 2023.

Disbursement of the sale proceeds are contingent on finishing wetland restoration of the land.

The limited land partnership intends to start making periodic distributions of the net proceeds of the sale in January 2024.

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

3 unchanged sentences

Finished goods

Inventory in transit

Inventory gross

allowance for obsolete inventory

allowance for

obsolete inventory

Inventories, net

9 unchanged sentences

Investments at

April 30, 2022

Municipal bonds

2 unchanged sentences

$ ( 501,000 )

Money Markets and CDs

Money Markets and

$ ( 753,000 )

Investments at

April 30, 2021

Municipal bonds

$ ( 229,000 )

Equity securities

Money Markets and CDs

$ ( 473,000 )

Money Markets and

$ ( 705,000 )

securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded

9 unchanged sentences

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

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.

As a result of this standard, management recorded an impairment loss of $ 67,000 for the year ended April 30, 2023, but did no t have to

record any impairment losses for the year ended April 30, 2022.

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

13 unchanged sentences

for the prior fiscal year.

Investments, continued

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

1 unchanged sentence

Loss Breakdown by Investment Type at April 30, 2023

of Unrealized Loss Breakdown by Investment

Less than 12 months

Schedule of Unrealized Loss Breakdown by Investment

than 12 months

months or greater

8 unchanged sentences

$ ( 598,000 )

$ ( 753,000 )

Loss Breakdown by Investment Type at April 30, 2022

Less than 12 months

than 12 months

months or greater

Municipal bonds

$ ( 142,000 )

$ ( 229,000 )

Equity securities

$ ( 424,000 )

$ ( 473,000 )

$ ( 567,000 )

$ ( 138,000 )

$ ( 705,000 )

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

9 unchanged sentences

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

Retirement Benefit Plan

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

13 unchanged sentences

$ 58,000 and $ 63,000 were paid in each of the fiscal years ending April 30, 2023 and 2022, respectively.

Stockholders’ Equity

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

11 unchanged sentences

the fiscal year ended April 30, 2023, the Company purchased 645 shares of Class A common stock.

This was initiated by stockholders

contacting the Company.

This was initiated by stockholders contacting

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

The Company maintains all stock records.

Earnings Per Share

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

(Denominator)

Effect of dilutive Convertible Preferred Stock

April 30, 2021

Effect of dilutive

Convertible Preferred Stock

(Denominator)

Effect of dilutive Convertible Preferred Stock

Commitments, Contingencies, and Related Party Transactions

Effect of dilutive

Convertible Preferred Stock

Contingencies, and Related Party Transactions

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

8 unchanged sentences

any litigation that we believe could have a material adverse effect on its financial condition or results of operations.

world has been impacted by the spread of the coronavirus (COVID-19) since early 2020.

It has created significant economic uncertainty

and volatility.

The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous

evolving factors that we may not be able to accurately predict, including:

the duration and scope of the pandemic;

governmental, business

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

the impact of the pandemic on economic

activity and actions taken in response;

the effect on our clients and client demand for our services and solutions;

our ability to sell

and provide our services and solutions, including as a result of travel restrictions and people working from home;

the ability of our

clients to pay for our services and solutions;

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

Any of these events

could materially adversely affect our business, financial condition, results of operations and/or stock price.

Company has been able to continue to operate through the pandemic.

The health and safety of our employees and their families remains

our top priority.

Therefore, we have implemented many Centers of Disease Control protocols to keep our employees safe while the Company

continues to produce products and provide service to our customers.

While we are operating in a rapidly changing environment, the Company

has experienced delays in receiving raw material supplies in a timely manner.

Company utilizes the liability method of accounting for income taxes.

4 unchanged sentences

of Income Tax Provision

Year Ended April 30,

Total income tax provision

Total income tax

Reconciliation

4 unchanged sentences

Interest and dividend income

Nondeductible expenses and timing differences

( 7,763,000 )

Taxable income

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

Nondeductible expenses

and timing differences

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

Schedule of Statutory Rate to Income Before Income Taxes

Income tax provision at statutory rate

Increase (decrease) income taxes resulting from:

Income tax provision at statutory

Increase (decrease) income taxes resulting

State income taxes

Interest and dividend income

Interest and dividend

Deferred taxes

Other temporary and permanent differences

( 2,289,000 )

Income tax expense

temporary and permanent differences

Federal tax rate

State tax rate

Blended statutory rate

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

statutory rate

tax assets (liabilities) consist of the following components at April 30, 2023 and 2022:

Summary of Deferred Tax Assets (Liabilities)

1 unchanged sentence

$ ( 276,000 )

Capitalized R&D

Inventory valuation

Allowance for doubtful accounts

Allowance for doubtful

Accrued vacation

Accumulated unrealized (gain)/loss on investments

unrealized (gain)/loss on investments

( 1,769,000 )

( 1,807,000 )

Net deferred tax assets (liabilities)

deferred tax assets (liabilities)

$ ( 1,727,000 )

$ ( 1,742,000 )

Business Segments

following is financial information relating to industry segments:

1 unchanged sentence

Quarter ended

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

Total income from

Depreciation and amortization:

2 unchanged sentences

Other products

Corporate general

Total depreciation and amortization

Total depreciation

and amortization

Capital expenditures:

2 unchanged sentences

Other products

Corporate general

Total capital expenditures

April 30, 2022

April 30, 2021

Identifiable assets:

Security alarm products

alarm products

Cable & wiring tools

Other products

Corporate general

Concentrations

13 unchanged sentences

respectively.

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

switch sales made up 87 % of total sales for the fiscal year ending April 30, 2023 and 86 % of total sales for the fiscal year ending April

Value Measurements

13 unchanged sentences

The levels of the fair value hierarchy under US GAAP are described

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

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 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.

of April 30, 2023 and 2022, 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;

the inputs are recorded as Level 2.

the inputs are recorded

Value Hierarchy

4 unchanged sentences

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring

Basis as of April 30, 2022

Municipal Bonds

Measured at Fair Value on a Recurring

as of April 30, 2023

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 April 30, 2021

Municipal Bonds

Markets and CDs

Total fair value

of assets measured on a recurring basis

Measured at Fair Value on a Recurring

as of April 30, 2022

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Paycheck Protection Program Loan

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.

The PPP Loan, which

was in the form of a Note dated April 15, 2020 issued to the Company, matures on April 15, 2022 and bears interest at a rate of 1 % per

The Company used the proceeds of the PPP Loan for qualifying expenses.

On December 3, 2020, the Company received notice from the

lender that the entire amount of the PPP loan was forgiven.

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.

Markets and CDs

Total fair value

of assets measured on a recurring basis

9 Disagreements

2 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-K

Item 8. Financial Statements and Supplementary Data