What changed in this filing

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Item 1. Financial Statements

2023-09-14 compared with 2023-03-17 · 278 added, 375 removed, 289 unchanged (69% of the section changed)

Financial Statements

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

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

RISK INDUSTRIES, INC.

BALANCE SHEETS

January 31, 2023

July 31, 2023

April 30, 2023

1 unchanged sentence

Cash and cash equivalents

Investments and securities

Investments and securities, at fair value

Accounts receivable:

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

and $ 33,531 ,

Trade, net of allowance for credit losses of $ 21,730 and $ 17,922

Income tax overpayment

7 unchanged sentences

Intangible assets, net

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

BALANCE SHEETS

January 31, 2023

July 31, 2023

April 30, 2023

5 unchanged sentences

Accrued expenses:

Income tax payable

Payroll and related expenses

Property taxes

Total Current Liabilities

5 unchanged sentences

Stockholders’ Equity

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

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

5 unchanged sentences

Total Stockholders’ Equity

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements.

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

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

THE THREE MONTHS ENDED JULY 31, 2023 AND 2022

July 31, 2023

July 31, 2022

Cost of Goods Sold

1 unchanged sentence

( 2,657,000 )

( 8,076,000 )

( 7,908,000 )

Operating Expenses:

5 unchanged sentences

Unrealized gain (loss) on equity securities

( 1,729,000 )

Gain (Loss) on Sale of Investments

Gain on sale of asset

(Loss) on Sale of Investments

Total Other Income (Expense)

( 1,085,000 )

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred Tax Expense (Benefit)

Total Income Tax Expense (Benefit)

Income Per Share of Common Stock

Deferred tax (benefit) expense

Total Income Tax Expense

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

accompanying notes to the unaudited condensed financial statements.

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

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:

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE MONTHS ENDED JULY 31, 2023 AND 2022

July 31, 2023

July 31, 2022

Other Comprehensive Income, Net of Tax

Unrealized gain on debt securities:

Unrealized holding gains (losses) arising during period

Income tax benefit (expense) related to other comprehensive

Other Comprehensive Income (Loss)

Income tax (expense) benefit related to other comprehensive income

Other Comprehensive Income

Comprehensive Income

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2023 AND 2022

Preferred Stock

Stock Class A

Balances, October 31, 2022

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31, 2023

Preferred Stock

Stock Class A

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.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2023 AND 2022

Paid-In Capital

Treasury Stock

(Common Class A)

Comprehensive

Paid-In Capital

Balances, October 31, 2022

$ ( 4,550,000 )

$ ( 263,000 )

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31, 2023

$ ( 4,552,000 )

$ ( 139,000 )

Treasury Stock

(Common Class A)

Comprehensive

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 )

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2023 and 2022

Preferred Stock

Stock Class A

Balances, April 30, 2022

Prior period adjustment for provisions related to depreciation

Prior period adjustment for tax provisions related to depreciation

Purchases of common stock

Dividend declared at $ 0.60 per common share outstanding

Unrealized gain, net of tax effect

Balances, January 31, 2023

Balances, July 31, 2022

Preferred Stock

Stock Class A

Balances, April 30, 2023

Purchases of common stock

Dividend declared at $ 0.50 per common share outstanding

Unrealized (loss), net of tax effect

Balances, January 31, 2022

accompanying notes to the unaudited condensed financial statements.

Unrealized gain, net of tax effect

Balances, July 31, 2023

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

Paid-In Capital

Treasury Stock

(Common Class A)

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2023 and 2022

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 $ 0.60

per common share outstanding

April 30, 2022

$ ( 4,547,000 )

$ ( 137,000 )

Unrealized gain, net of tax effect

Balances, January 31, 2023

period adjustment for tax provisions related to depreciation

of common stock

gain (loss), net of tax effect

July 31, 2022

$ ( 4,549,000 )

1 unchanged sentence

Comprehensive

Paid-In Capital

Balances, April 30, 2021

April 30, 2023

$ ( 4,554,000 )

Purchases of common stock

Dividend declared at $ 0.50

per common share outstanding

$ ( 161,000 )

of common stock

gain, net of tax effect

gain (loss), net of tax effect

July 31, 2023

$ ( 4,576,000 )

Unrealized (loss), net of tax effect

Balances, January 31, 2022

$ ( 184,000 )

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENT OF CASH FLOWS

THE NINE MONTHS ENDED JANUARY 31, 2023 AND 2022

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2023 AND 2022

July 31, 2023

July 31, 2022

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:

1 unchanged sentence

(Gain) loss on sale of investments

Unrealized (gain) loss on equity investments

Unrealized (gain) loss on equity securities

( 1,634,000 )

Provision for credit losses on accounts receivable

1 unchanged sentence

Deferred income taxes

(Gain) on sale of assets

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

( 2,444,000 )

( 1,465,000 )

Prepaid expenses

( 1,089,000 )

Prepaid expenses and other current assets

Other receivables

2 unchanged sentences

Accounts payable

Accrued expenses

Accrued expenses and other current liabilities

Income tax payable

1 unchanged sentence

Cash Flows From Investing Activities:

Proceeds from sale of assets

(Purchase) of property and equipment

1 unchanged sentence

(Purchase) of marketable securities

(Purchase) of long-term investment

Net cash from investing activities

2 unchanged sentences

Dividends paid

( 2,689,000 )

( 2,256,000 )

Net cash from financing activities

( 2,694,000 )

( 2,291,000 )

Net Change in Cash and Cash Equivalents

3 unchanged sentences

Cash payments for:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

TO CONDENSED FINANCIAL STATEMENTS

Interim Financial Statements

Unaudited 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 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.

these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s

April 30, 2023 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.

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

value of assets.

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

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.

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, 2023.

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 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.

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

money markets.

The investments in debt securities, which include municipal bonds and bond funds, mature between August 2023 and September

The investments in debt securities, which include municipal bonds and bond funds, mature between August 2023 and July

The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported

3 unchanged sentences

Dividend and interest income are reported as earned.

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

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

Schedule of Investments

Investments at

January 31, 2023

Unrealized Gains

Unrealized Losses

July 31, 2023

Municipal bonds

5 unchanged sentences

April 30, 2023

Unrealized Gains

Unrealized Losses

Municipal bonds

15 unchanged sentences

to determine if impairment changes are required.

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

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

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

July 31, 2023 and 2022, respectively.

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

Therefore, either a realized gain or loss is recorded

when a sale occurs.

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

when a sale happens.

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

of $ 105,000 and gross realized losses of $ 218,000 .

For the same period, sales of debt securities did no t yield any gross realized gains,

For the same period, sales of debt securities did not yield any gross realized gains,

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

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 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 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, 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”,

During the quarter ending July 31, 2022, the Company recorded gross realized gains

and losses on equity securities of $ 197,000 and $ 267,000 , respectively, while sales of debt securities did not yield any gross realized

gains, but gross realized losses of $ 29,000 were recorded.

The gross realized loss numbers include would include the impaired figures

listed in the previous paragraph if there happened to be any.

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

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

Loss Breakdown by Investment Type at January 31, 2023

July 31, 2023 and April 30, 2023, respectively.

Loss Breakdown by Investment Type at July 31, 2023

Schedule of Unrealized Loss Breakdown by Investment

3 unchanged sentences

Unrealized Loss

Municipal bonds

4 unchanged sentences

$ ( 532,000 )

$ ( 782,000 )

Loss Breakdown by Investment Type at April 30, 2023

15 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 January 31, 2023 and April 30, 2022.

these investments to be other-than-temporarily impaired at July 31, 2023 and April 31, 2023.

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 January 31, 2023 and April 30, 2022.

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

impaired at July 31, 2023 and April 30, 2023.

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

of Inventories

8 unchanged sentences

Schedule of Financial Information Relating to Industry Segments

Security alarm

Security alarm products

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

Total depreciation and

Corporate general

Total depreciation and amortization

Capital expenditures:

2 unchanged sentences

Other products

Corporate general

Total capital expenditures

July 31, 2023

April 30, 2023

Identifiable assets:

Security alarm

Security alarm products

Cable & wiring tools

Other products

Corporate general

Earnings per Share

1 unchanged sentence

of Basic and Diluted Earnings Per Share

the three months ended January 31, 2023

(Denominator)

Effect of dilutive Convertible

Preferred Stock

the three months ended January 31, 2022

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2023

For the three months ended July 31, 2023

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2022

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2022

(Denominator)

Effect of dilutive

Convertible Preferred Stock

Effect of dilutive Convertible Preferred Stock

Retirement Benefit Plan

12 unchanged sentences

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

Matching contributions by the

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.

Matching contributions of approximately

$ 16,000 were paid in each of the quarters ending July 31, 2023 and 2022, respectively.

Fair 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.

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.

and Marketable Securities

of January 31, 2023 and April 30, 2022, our investments consisted of money markets, publicly traded equity securities, real estate investment

of July 31, 2023 and April 30, 2023, our investments consisted of money markets, publicly traded equity securities, real estate investment

trusts (REITs) as well as certain state and municipal debt securities.

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.

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.

Value Hierarchy

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

following table sets 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

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

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2023

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

April 30, 2023

Total fair value of

assets measured on a recurring basis

Municipal Bonds

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Subsequent Events

1 unchanged sentence

FINANCIAL INFORMATION

Management Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS

FINANCIAL CONDITION

RESULTS OF OPERATIONS

Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 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 new information becomes available in the future.

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.

those anticipated in these forward-looking statements, even if current 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, 2023.

Company’s performance remained steady during the quarter ended July 31, 2023 as compared to the quarter ended July 31, 2022.

sales have decreased when comparing to the same quarter last year, overall net income is up because unrealized gains on investments are

showing gains in the current quarter, while for the same quarter last year both of those categories were loss amounts.

Also, gross profit

and income from operations are lower when comparing to the same quarter last year.

This is because of the increased costs of raw materials

The decline in sales is a result of a slowing economy which has seen inflation climb to some of its highest levels in 15 years

and, in turn, impacts the housing market, which the Company is directly tied to, negatively.

The Company still has a considerable back-order

log and there have 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 the ongoing effect of the COVID-19 pandemic and inflation.

Possible ongoing effects of COVID-19 include, but are not limited

to, price increases and/or delays in the supply chain, reduced sales, and economic conditions impacting the stock market.

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 $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.

sales for the quarter ended July 31, 2023 showed a 9.25% decrease over the same period in the prior year.

The Company saw decreased

sales resulting primarily from a weakened economy, which has constrained the housing market, and inflation.

Management also believes

that sales stay at a consistent rate due to our ongoing commitment to outstanding customer service and our ability to customize products.

cost of goods sold percentage increased from 51.00% of sales in the prior year, to 52.07% 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 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 $8,000 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 increased to 22.82% for the quarter ended July 31, 2023 as compared to 20.86% for

the corresponding quarter last year.

The dollar amount decrease is the result of decreased sales commissions.

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, 2023 was at $1,187,000, which is a 19.03% decrease from the corresponding quarter

last year, which had income from operations of $1,466,000.

income and expenses showed a $1,773,000 gain for the quarter ended July 31, 2023 as compared to a $102,000 loss for the quarter ended

July 31, 2022.

For the three months ended July 31, 2023, $1,634,000 of unrealized gains from equity securities were recorded, compared

to $189,000 of unrealized losses from equity securities recorded for the three months ended July 31, 2022.

The remainder of the increase

is primarily due to dividend and interest income paid on investments.

Company’s provision for income taxes showed an increase of $273,000 from $313,000 in the quarter ended July 31, 2022 to $586,000

for the quarter ended July 31, 2023.

This increase is primarily due to increased deferred taxes resulting from unrealized gains on

equity securities for the current quarter.

turn, net income for the quarter ended July 31, 2023 was $2,374,000, a 125.88% increase from the corresponding quarter last year,

which showed net income of $1,051,000.

per share for the quarter ended July 31, 2023 were $0.48 per common share and $0.21 per common share for the quarter ended July 31,

and capital resources

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 $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 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.

cash increased $611,000 during the quarter ended July 31, 2023 as compared to an increase of $1,571,000 during the corresponding

quarter last year.

The details are listed below.

receivable, net decreased $431,000 for the quarter ending July 31, 2023 compared with a $499,000 decrease for the same quarter last

The smaller decrease in accounts receivable is directly attributable to a decrease in sales and customers being able to pay

in a slightly timelier manner.

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

An analysis of accounts receivable shows that 5.14% of the balance was over 90 days at July 31, 2023.

increased $521,000 during the current quarter as compared to a $947,000 increase last year.

The smaller increase is primarily due

to the fact that the Company has slowed down on buying raw materials due to decreased orders and that the prices of raw materials

have leveled out while labor costs continue to increase.

the quarter ended July 31, 2023, there was a $482,000 increase in prepaid expenses and other current assets compared to a decrease

of $317,000 for the quarter ended July 31, 2022.

The current increase is due to having to prepay for inventory during the quarter;

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

tax overpayment for the quarter ended July 31, 2023 decreased $304,000, compared to a $409,000 decrease in income tax payable for

the quarter ended July 31, 2022.

The current decrease is due to decreased income.

Also, the corporate income tax rate in Nebraska

decreased to 7.25% from 7.5% for the current fiscal year.

payable shows a decrease of $50,000 for the quarter ended July 31, 2023 compared to a decrease of $21,000 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 and other current liabilities increased $2,000 for the current quarter as compared to a $121,000 increase for the quarter

ended July 31, 2022.

The difference in the amounts is primarily due to timing of when payroll periods end and decreases in sales

Company purchased $201,000 of property and equipment during the current fiscal quarter.

In comparison, $74,000 was spent on purchases

of property and equipment during the corresponding quarter 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, 2023 was $150,000 compared to $111,000 spent during the quarter ended July 31,

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 quarterly service fees

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:

For the quarter ended July 31, 2023 the Company bought

back $22,000 worth of treasury stock and $2,000 was bought back during the quarter ended July 31, 2022.

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, 2023

July 31, 2022

Working capital

(current assets – current liabilities)

Current ratio

assets / current liabilities)

+ investments + AR) / current liabilities)

(current assets / current liabilities)

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

Product Development

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 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 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:

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.

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.

is being done on updating our small profile glass break detector, in addition to looking at development of programmable temperature

and humidity sensors with built-in hysteresis.

technology is a main area of focus for product development.

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.

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.

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

5 unchanged sentences

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

Quantitative and Qualitative Disclosures about Market Risk

and Qualitative Disclosures About Market Risk

disclosure does not apply.

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