What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-07-31 compared with 2023-07-31 · 251 added, 239 removed, 549 unchanged (47% of the section changed)

8 Financial Statements

Financial Statements and Supplementary Data

to Financial Statements

Risk Industries, Inc.

of Independent Registered Public Accounting Firm

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

Report of Independent Registered Public Accounting Firm

Balance Sheets—April 30, 2024 and 2023

Income Statements For the Years Ended April 30, 2024 and 2023

Statements of Comprehensive Income For the Years Ended April 30, 2024 and 2023

Statements of Stockholders’ Equity For the Years Ended April 30, 2024 and 2023

Statements of Cash Flows For the Years Ended April 30, 2024 and 2023

Notes to Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

the Board of Directors and

40 unchanged sentences

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

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

Audit Matter – Inventory Valuation

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 judgment around when the performance obligation is satisfied.

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

Consideration

in contracts with customers is variable due to anticipated reductions such as discounts, rebates, and allowances.

Accordingly, revenues

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.

Company manufactures its inventory, which involves the capture of direct labor and manufacturing overhead costs to inventory instead

of as an expense when valuing work-in-process and finished goods inventory.

This process involves complex calculations based on employee

hours worked on manufacturing inventory, and the amount of overhead that will be captured is based on management’s subjective judgements.

These judgements can have a significant impact on the Company’s reported assets and earnings if they should prove to be significantly

the Critical Audit Matter was Addressed in the Audit

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

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

performed analytical procedures to test the reasonableness of recorded balances.

a sample of transactions, we inspected source documents, including customer contracts or purchase orders, third-party shipping information,

invoices, and relevant communication.

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.

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

principal procedures related to the Company’s valuation of work-in-process and finished goods inventory included the following:

evaluated management’s significant accounting policies related to the valuation of manufactured inventory, including the methodology

of how manufactured overhead is applied to inventory.

tested the direct labor applied to a sample of work-in-process and finished goods inventory items by agreeing employees’ applied

costs to their pay rates per their human resources file maintained by the company.

tested the application of manufacturing overhead to a sample of work-in-process and finished goods inventory by recalculating the

overhead we would expect to be applied based on the company’s standard overhead rate and the number of direct labor hours applied

to the inventory.

Audit Matter – Valuation of Investments

Critical Audit Matter Description

3 unchanged sentences

In addition, as the securities

held at fair value, management must assess securities that are in a significant unrealized loss position for other than temporary impairment.

For these securities, management must make difficult and subjective judgements about the ability of the issuer to be able to meet its

obligations under terms of the security.

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

should prove to be significantly inaccurate.

are held at fair value, management must assess securities that are in a significant unrealized loss position for other than temporary

For these securities, management must make difficult and subjective judgments about the ability of the issuer to be able

to meet its obligations under terms of the security.

These judgments can have a significant impact on the Company’s reported earnings

if they should prove to be significantly inaccurate.

the Critical Audit Matter was Addressed in the Audit

5 unchanged sentences

were appropriate.

Haynie and Company

have served as the Company’s auditor since 1992.

Littleton, CO

July 31, 2023

Salt Lake City, UT

Risk Industries, Inc.

8 unchanged sentences

Inventories, net

Prepaid expenses

Total Current Assets

4 unchanged sentences

Total Other Assets

Intangible Assets,

Intangible Assets, net

accompanying notes are an integral part of these financial statements.

2 unchanged sentences

of April 30, 2024 and 2023

AND STOCKHOLDERS’ EQUITY

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable,

payable, trade

Dividends payable

1 unchanged sentence

Accrued expenses

Income tax payable

Total Current Liabilities

Long-Term Liabilities

Deferred income taxes

Total Long-Term Liabilities

2 unchanged sentences

Stockholders’ Equity

Convertible preferred stock,

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

Common stock, Class A,

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

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

3 unchanged sentences

Retained earnings

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

treasury stock,

3,606,151 and 3,572,338 shares, at cost

( 4,945,000 )

( 4,554,000 )

Total Stockholders’

TOTAL LIABILITES AND

STOCKHOLDERS’ EQUITY

Total Stockholders’ Equity

TOTAL LIABILITES AND STOCKHOLDERS’

accompanying notes are an integral part of these financial statements.

1 unchanged sentence

the years ended April 30, 2024 and 2023

Cost of Goods

Cost of Goods Sold

( 10,926,000 )

5 unchanged sentences

Other Income (Expense)

Impairment on Investment

in Limited Land Partnership

Dividend and Interest

Unrealized (Loss) on

Equity Securities

( 2,764,000 )

Unrealized Gain (Loss)

on Equity Securities

Gain (Loss) on Sale

of Investment

on Sale of Assets

Gain on Sale of Assets

Total Other Income (Expense)

( 1,307,000 )

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

tax (benefit)

Income Tax Expense

Deferred tax expense

Total Income Tax Expense

Earnings Per Share of Common Stock

7 unchanged sentences

the years ended April 30, 2024 and 2023

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)

Other Comprehensive Income (Loss), Net of

Unrealized gain (loss)

on debt securities:

Unrealized holding gains

(losses) arising during period

tax benefit (expense) related to other comprehensive income

Comprehensive Income (Loss)

Comprehensive Income

3 unchanged sentences

the Years Ended April 30, 2024 and 2023

Stock Class A

April 30, 2022

Prior period adjustment for provisions related

to depreciation

Purchases of common stock

1 unchanged sentence

Unrealized gain (loss), net of tax effect

April 30, 2022

Prior period adjustment for provisions related

to depreciation

Balances, April 30, 2023

Purchases of common stock

Dividend declared at $ 0.60 per

common share outstanding

Dividend declared at $ 0.65 per common share

Unrealized gain (loss), net of tax effect

April 30, 2023

Balance, April 30, 2024

accompanying notes are an integral part of these financial statements.

2 unchanged sentences

the Years Ended April 30, 2024 and 2023

Stock (Common Class A)

Accumulated Other

Comprehensive

April 30, 2021

$ ( 4,336,000 )

of common stock

Dividend declared at $ 0.50

per common share outstanding

( 2,472,000 )

Unrealized gain (loss),

net of tax effect

April 30, 2022

( 4,547,000 )

Balances, April 30, 2022

Prior period adjustment

1 unchanged sentence

Purchases of common stock

Dividend declared at $ 0.60

per common share outstanding

( 2,958,000 )

Unrealized gain (loss),

net of tax effect

Dividend declared at $ 0.60 per common share outstanding

Unrealized gain (loss), net of tax effect

April 30, 2023

$ ( 4,554,000 )

$ ( 161,000 )

$ ( 4,554,000 )

$ ( 161,000 )

Purchases of common stock

Dividend declared at $ 0.65 per common share outstanding

Dividend declared per common share

Unrealized gain (loss), net of tax effect

Balance, April 30, 2024

accompanying notes are an integral part of these financial statements.

1 unchanged sentence

of Cash Flows

Flows From Operating Activities:

Cash Flows From Operating

Adjustments to reconcile

4 unchanged sentences

Impairment on investments

Unrealized loss on equity

Unrealized (gain) loss

on equity securities

( 2,771,000 )

Impairment on investment

in limited land partnership

Provision for credit

7 unchanged sentences

( 3,604,000 )

( 2,430,000 )

Prepaid expenses

4 unchanged sentences

Accrued expenses

Income tax payable

Net cash from operating

Flows From Investing Activities:

Cash Flows From Investing

Proceeds from sale of

4 unchanged sentences

(Purchase) of marketable

of long-term investment

Distribution from investment in limited land partnership

Net cash from investing

( 1,275,000 )

Flows From Financing Activities:

of treasury stock

( 2,689,000 )

Cash Flows From Financing

(Purchase) of treasury

Dividends paid

( 2,915,000 )

cash from financing activities

( 2,689,000 )

Net cash from financing

( 3,306,000 )

Change in Cash and Cash Equivalents

( 2,696,000 )

Net Change in Cash and

Cash Equivalents

( 1,135,000 )

and Cash Equivalents, beginning of year

and Cash Equivalents, end of year

Disclosure for Cash Flow Information:

Cash and Cash Equivalents,

beginning of year

Cash and Cash Equivalents,

Supplemental Disclosure

for Cash Flow Information:

Cash payments for:

5 unchanged sentences

to Financial Statements

of Business and Summary of Significant Accounting Policies

Nature of Business and Summary of Significant Accounting Policies , continued

Risk Industries, Inc.

22 unchanged sentences

The Company has recorded an allowance for estimated credit losses

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.

of $ 34,256 for the year ended April 30, 2024, and $ 17,922 for the year ended April 30, 2023.

For the year ended April 30, 2024, the provision

for credit losses on accounts receivable was an expense of $ 16,334 compared to a provision of $ 17,171 for the year ended April 30, 2023.

Concentrations

5 unchanged sentences

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

of Business and Summary of Significant Accounting Policies, continued

Nature of Business and Summary of Significant Accounting Policies, continued

and Equipment — Property and equipment are recorded at cost.

16 unchanged sentences

to operations.

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

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

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

The goal was to hold the property for resale(s) in 2 - 5

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

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

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

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 fees.

The goal of the investment was to hold the property for resale(s) in 2 - 5 years, but many efforts to sell the property

did not materialize for many years.

Fortunately, the sale finally happened on June 30, 2023.

Disbursement of the sale proceeds are contingent

on finishing wetland restoration of the land, but the LLP made a distribution of the net proceeds in January 2024 in the amount of $ 12,000 .

Upon receiving information from the LLP management team, additional details about the contingent ongoing expenses were given to GRI and

it has been determined that there is a $ 38,000 impairment on this investment, which has been accounted for during the year ended April

Subsequently,

an additional distribution of the net proceeds from the sale of the LLP in the amount of $ 255,000 was paid to GRI in July 2024.

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

1 unchanged sentence

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

As of April 30, 2024, the Company had $ 1,028,000 of net intangible assets, compared to net intangible assets of $ 1,149,000 as of April

Amortization expense was $ 121,000 and $ 122,000 for the years ended April 30, 2024 and 2023, respectively.

Nature of Business and Summary of Significant Accounting Policies, continued

of April 30, 2024, future amortization of intangible assets is expected as follows:

7 unchanged sentences

shares outstanding during the period.

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

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

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

22 unchanged sentences

as income tax expense.

of Business and Summary of Significant Accounting Policies, continued

Nature 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 2023, 2022, and prior.

50 unchanged sentences

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

Nature of Business and Summary of Significant Accounting Policies, continued

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

4 unchanged sentences

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

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

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

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

24 unchanged sentences

information disclosures.

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.

Issued Accounting Pronouncements — In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic280):

to Reportable Segment Disclosures .

The new guidance is intended to improve reportable segment disclosure requirements primarily through

enhanced disclosures about significant segment expenses.

The amendments are effective retrospectively for fiscal years beginning after

December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

The Company is in the process of evaluating

the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material.

December 2023, the FASB issued ASU No.

2023-09, Improvements to Tax Disclosures (Topic 740) , to enhance the transparency and decision

usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information.

This guidance is effective

for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is evaluating the impact of adopting this

new accounting guidance on its Consolidated Financial Statements.

Nature of Business and Summary of Significant Accounting Policies, continued

Events – Other than those discussed at the Investment in Limited Land Partnership section of this note, Management

has evaluated all events or transactions that occurred after April 30, 2024 through the date of the filing.

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

at April 30, 2024 and 2023, consisted of the following:

4 unchanged sentences

Inventory, gross

allowance for

obsolete inventory

allowance for obsolete inventory

Inventories, net

1 unchanged sentence

are recorded at fair value.

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

and September 2042.

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

or losses reported in the respective period’s earnings.

The investments in debt securities, which include municipal bonds and bond funds, mature between July 2024

and July 2041.

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

losses reported in the respective period’s earnings.

Dividend and interest income are reported as earned.

of April 30, 2024 and 2023, investments consisted of the following:

Schedule of Investments

of Investments

Investments at

April 30, 2024

Municipal bonds

2 unchanged sentences

$ ( 209,000 )

Money Markets and

Money Markets and CDs

$ ( 317,000 )

Investments at

April 30, 2023

Municipal bonds

2 unchanged sentences

$ ( 501,000 )

Money Markets and

Money Markets and CDs

$ ( 753,000 )

10 unchanged sentences

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

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.

As a result of this standard, management recorded impairment losses of $ 22,000 and $ 67,000 for the years ended April 30, 2024 and 2023,

respectively.

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

5 unchanged sentences

gross realized gains, but sales of debt securities yielded gross realized losses of $ 28,000 .

Conversely, the Company recorded gross realized

gains on equity securities of $ 661,000 and gross realized losses of $ 221,000 for the fiscal year ending April 30, 2022.

As for debt securities,

there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $ 26,000

for the fiscal year ending April 30, 2022.

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

Additionally, proceeds from sales of securities available for sale were $ 25,000 for the fiscal year ended April 30, 2023 and were $ 452,000

for the prior fiscal year.

Comparatively, the Company recorded gross

realized gains on equity securities of $ 512,000 and gross realized losses of $ 740,000 for the fiscal year ending April 30, 2023.

debt securities, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized

losses of $ 63,000 for the fiscal year ending April 30, 2023.

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

previous paragraph.

Additionally, proceeds from sales of securities available for sale were $ 527,000 and $ 25,000 for the years ended

April 30, 2024 and 2023 respectively.

Investments, continued

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 April 30, 2023

Loss Breakdown by Investment Type at April 30, 2023

Schedule of Unrealized Loss Breakdown by Investment

than 12 months

investment category and length of time that individual securities have been in a continuous unrealized loss position, as of April 30,

2024 and 2023.

of Unrealized Loss Breakdown by Investment Type

Loss Breakdown by Investment Type as of April 30, 2024

Schedule of Unrealized Loss Breakdown by Investment Type

Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

1 unchanged sentence

$ ( 137,000 )

Equity securities

$ ( 209,000 )

1 unchanged sentence

$ ( 317,000 )

$ ( 155,000 )

$ ( 598,000 )

$ ( 753,000 )

Loss Breakdown by Investment Type at April 30, 2022

than 12 months

Loss Breakdown by Investment Type as of April 30, 2023

Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

1 unchanged sentence

$ ( 230,000 )

Equity securities

$ ( 140,000 )

3 unchanged sentences

$ ( 598,000 )

$ ( 753,000 )

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

The contractual terms

of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment.

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

not consider these investments to be other-than-temporarily impaired at April 30, 2023 and 2022.

The contractual terms of these

investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment.

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

consider these investments to be other-than-temporarily impaired as of April 30, 2024 and 2023.

Equity Securities and REITs

3 unchanged sentences

Management has evaluated the individual holdings and does not consider

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

these investments to be other-than-temporarily impaired as of April 30, 2024 and 2023.

Retirement Benefit Plan

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

12 unchanged sentences

Matching contributions of approximately

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

$ 60,000 and $ 58,000 were paid during the years ending April 30, 2024 and 2023, respectively.

Stockholders’

8 unchanged sentences

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

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

A dividend for

the four prior quarters and provision has been made for the full dividend in the current fiscal year.

A dividend for the four prior quarters and provision has been made for the full dividend in the current fiscal year.

the fiscal year ended April 30, 2024, the Company purchased 33,813 shares of Class A common stock.

This was initiated by stockholders contacting

This was initiated by stockholders

contacting the Company.

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, 2024

(Denominator)

Effect of dilutive

Convertible Preferred Stock

Effect of dilutive Convertible Preferred Stock

April 30, 2023

(Denominator)

Effect of dilutive

Convertible Preferred Stock

Contingencies, and Related Party Transactions

Effect of dilutive Convertible Preferred Stock

Commitments, Contingencies, and Related Party Transactions

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

1 unchanged sentence

the Company uses for its day-to-day banking operations.

Year end balances of accounts held at this bank are $ 4,637,000 for the year ended

April 30, 2023 and $ 5,058,000 for the year ended April 30, 2022.

The Company also received interest income from FirsTier Bank in the

amount of approximately $ 102,700 for the year ended April 30, 2023 and $ 58,800 for the year ended April 30, 2022.

Year end balances of accounts held at this bank are $ 6,712,000 and $ 4,637,000

for the years ended April 30, 2024 and 2023, respectively.

The Company also received interest income from FirsTier Bank in the amount

of approximately $ 170,000 for the year ended April 30, 2024 and $ 103,000 for the year ended April 30, 2023.

time to time, the Company may be involved in litigation in the ordinary course of business.

7 unchanged sentences

of Income Tax Provision

Total income tax

Year Ended April 30,

Total income tax provision

Reconciliation

4 unchanged sentences

Interest and dividend income

Nondeductible expenses

and timing differences

Nondeductible expenses and timing differences

( 2,379,000 )

Taxable income

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

Increase (decrease) income taxes resulting

of Statutory Rate to Income Before Taxes

Income tax provision at statutory rate

Increase (decrease) income taxes resulting from:

State income taxes

Interest and dividend

Interest and dividend income

Deferred taxes

temporary and permanent differences

Other temporary and permanent differences

Income tax expense

Federal tax rate

statutory rate

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

State tax rate

Blended statutory rate

tax assets (liabilities) consist of the following components as of April 30, 2024 and 2023:

Summary of Deferred Tax Assets (Liabilities)

1 unchanged sentence

$ ( 312,000 )

Capitalized R&D

$ ( 276,000 )

Capitalized R&D expense

Inventory valuation

Allowance for doubtful

Allowance for doubtful accounts

Accrued vacation

unrealized (gain)/loss on investments

Accumulated unrealized (gain)/loss on investments

( 2,547,000 )

( 1,769,000 )

deferred tax assets (liabilities)

Net deferred tax assets (liabilities)

$ ( 2,388,000 )

$ ( 1,727,000 )

Business Segments

following is financial information relating to industry segments:

Schedule of Financial Information Relating to Industry Segments

of Financial Information Relating to Industry Segments

Quarter ended

Security alarm

Security alarm products

Cable & wiring tools

Other products

Total net revenue

2 unchanged sentences

Cable & wiring tools

Total income from

Other products

Total income from operations

Depreciation and amortization:

2 unchanged sentences

Other products

Total depreciation

and amortization

Corporate general

Total depreciation and amortization

Capital expenditures:

2 unchanged sentences

Other products

Corporate general

Total capital expenditures

April 30, 2024

April 30, 2023

Identifiable assets:

alarm products

Security alarm products

Cable & wiring tools

Other products

Corporate general

Concentrations

14 unchanged sentences

switch sales made up 90 % of total sales for the fiscal year ending April 30, 2024 and 87 % of total sales for the fiscal year ending April

Value Measurements

Fair Value Measurements

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

12 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.

techniques include the use of option pricing models, discounted cash flow models and similar techniques.

and Marketable Securities

1 unchanged sentence

as certain state and municipal bonds.

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

Marketable securities are valued using third-party broker statements.

The value of the majority

9 unchanged sentences

level of input that is significant to the fair value measurement.

Schedule of Assets Measured at Fair Value on Recurring Basis

Measured at Fair Value on a Recurring

as of April 30, 2023

of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of April 30, 2024

Municipal Bonds

Equity Securities

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

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

Municipal Bonds

Equity Securities

Markets and CDs

Total fair value

of assets measured on a recurring basis

9 Disagreements

on Accounting and Financial Disclosures

Money Markets and CDs

Total fair value of assets measured on a recurring basis

in and Disagreements with Accountants on Accounting and Financial Disclosures

were no disagreements with accountants on accounting and financial disclosure.

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data