What changed in this filing

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Item 1. Financial Statements

2024-09-16 compared with 2024-03-15 · 288 added, 357 removed, 275 unchanged (70% of the section changed)

Financial Statements

unaudited financial statements for the three- and nine-month period ended January 31, 2024, are attached hereto.

unaudited financial statements for the three-month period ended July 31, 2024 are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2024

April 30, 2024

Current Assets:

Cash and cash

Investments and securities

Cash and cash equivalents

Investments and securities, at fair value

Accounts receivable:

Trade, net of allowance

for credit losses of $ 14,864 and $ 17,922

Income tax overpayment

Trade, net of allowance for credit losses of $ 21,027 and $ 34,256

Inventories, net

Prepaid expenses

Total Current Assets

Property and Equipment, net, at cost

Investment in Limited Land

Partnership, at cost

Investment in Limited Land Partnership, at cost

Projects in process

1 unchanged sentence

Intangible assets, net

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2024

April 30, 2024

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable,

Accounts payable, trade

Dividends payable

Deferred income

Accrued expenses

Income tax payable

Total Current Liabilities

Long-Term Liabilities

Deferred income taxes

Total Long-Term Liabilities

3 unchanged sentences

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

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

Accumulated other comprehensive income

Retained earnings

2 unchanged sentences

( 4,945,000 )

Total Stockholders’

TOTAL LIABILITES AND

STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements.

Total Stockholders’ Equity

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, 2024 AND 2023

Cost of Goods

( 2,734,000 )

( 2,444,000 )

THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

July 31, 2024

July 31, 2023

Cost of Goods Sold

( 2,835,000 )

5 unchanged sentences

Other Income (Expense)

Interest Expense

Dividend and Interest Income

Unrealized Gain on Equity Securities

Gain (Loss) on Sale of

Gain on Sale of Assets

Gain (Loss) on Sale of Assets

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

2 unchanged sentences

Current Expense

Tax Expense (Benefit)

Deferred tax (benefit) expense

Total Income Tax Expense

Income Per Share of Common Stock

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, 2024 AND 2023

Other Comprehensive Income/(Loss), Net of Tax

Unrealized gain (loss)

on debt securities:

Unrealized holding gains (losses) arising

during period

tax (expense) related to other comprehensive income

Comprehensive Income (Loss)

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

July 31, 2024

July 31, 2023

Other Comprehensive Income, Net of Tax

Unrealized gain on debt securities:

Unrealized holding gains (losses) arising during period

Income tax (expense) benefit related to other comprehensive income

Other Comprehensive Income

Comprehensive Income

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2024 AND 2023

Balances, October 31, 2023

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2024 and 2023

Preferred Stock

Balances, April 30, 2023

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31,

Balances, October 31, 2022

Purchases of common stock

Balances, July 31, 2023

Preferred Stock

Balances, April 30, 2024

Unrealized gain, net of tax effect

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

Balances, July 31, 2024

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2024 AND 2023

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2024 and 2023

Treasury Stock

(Common Class A)

Other Comprehensive

Balances, October

Comprehensive

Balances, April 30, 2023

$ ( 4,554,000 )

2 unchanged sentences

Unrealized gain, net of tax effect

Balances, January 31, 2024

Balances, July 31, 2023

$ ( 4,576,000 )

$ ( 184,000 )

Treasury Stock

(Common Class A)

Other Comprehensive

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 )

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2024 AND 2023

Balances, April 30, 2023

Purchases of common stock

Dividend declared at $ 0.65 per common share

Unrealized gain, net of tax effect

Balances, January 31,

Balances, April

Prior period adjustment for provisions related

to depreciation

Purchases of common stock

Dividend declared at $ 0.60

per common share outstanding

Unrealized (loss), net of

January 31, 2023

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2024 AND 2023

Other Comprehensive

Comprehensive

Balances, April 30, 2024

1 unchanged sentence

$ ( 137,000 )

Purchases of common stock

Dividend declared at $ 0.65 per common share outstanding

$ ( 4,945,000 )

1 unchanged sentence

Unrealized gain, net of tax effect

Balances, January 31, 2024

$ ( 4,918,000 )

Other Comprehensive

Balances, April 30, 2022

$ ( 4,547,000 )

$ ( 137,000 )

$ ( 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

( 2,958,000 )

Unrealized gain

(loss), net of tax effect

Balances, January 31, 2023

$ ( 4,552,000 )

$ ( 139,000 )

Balances, July 31, 2024

$ ( 4,945,000 )

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, 2024 AND 2023

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

July 31, 2024

July 31, 2023

Cash Flows from Operating Activities:

Adjustments to reconcile

net income to net cash provided by operating activities:

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

Depreciation and amortization

Loss on sale of investments

Impairment on investments

Unrealized (gain) on equity

(Gain) loss on sale of investments

Unrealized (gain) loss on equity securities

( 1,346,000 )

Provision for credit losses

on accounts receivable

( 1,634,000 )

Provision for credit losses on accounts receivable

Reserve for obsolete inventory

Deferred income taxes

(Gain) on sales of assets

(Gain) on sale of assets

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

( 2,444,000 )

Prepaid expenses

Prepaid expenses and other current assets

Other receivables

2 unchanged sentences

Accounts payable

Accrued expenses

Net cash from operating

Accrued expenses and other current liabilities

Income tax payable

Net cash from operating activities

Cash Flows From Investing Activities:

Proceeds from sale of assets

(Purchase) of property

and equipment

Proceeds from sale of marketable

(Purchase) of marketable

from long-term investment

Net cash from investing

CASH FLOWS FROM FINANCING

(Purchase) of treasury

( 2,914,000 )

( 2,689,000 )

Net cash from financing

( 3,278,000 )

( 2,694,000 )

NET CHANGE IN CASH AND

CASH EQUIVALENTS

Cash and Cash Equivalents,

beginning of period

Cash and Cash Equivalents,

end of period

(Purchase) of property and equipment

Proceeds from sale of marketable securities

(Purchase) of marketable securities

Distribution from investment in limited land partnership

Net cash from investing activities

Cash Flows From Financing Activities:

(Purchase) of treasury stock

Dividends paid

Net cash from financing activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, beginning of period

Cash and Cash Equivalents, end of period

Supplemental Disclosure for Cash Flow Information:

Cash payments for:

Cash receipts for:

accompanying notes to the unaudited condensed financial statements.

Income taxes paid

Interest paid

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

TO CONDENSED FINANCIAL STATEMENTS

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Unaudited Interim Financial Statements

2 unchanged sentences

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, 2023 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, 2024 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.

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

three months ended July 31, 2024.

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

13 unchanged sentences

The Company is evaluating the impact of adopting this

new accounting guidance on its Consolidated Financial Statements.

new accounting guidance on its 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 February 2024 and July

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

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

of Investments

of July 31, 2024 and April 30, 2024, investments consisted of the following:

Schedule of Investments

Investments at

January 31, 2024

Unrealized Gains

Unrealized Losses

July 31, 2024

Municipal bonds

$ ( 162,000 )

Equity securities

3 unchanged sentences

April 30, 2024

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 the quarters

ended January 31, 2024 and 2023, respectively.

As for the year-to-date numbers, management recorded an impairment loss of $ 22,000 for

the nine-month period ended January 31, 2024, while there were no impairment losses recorded for the nine-month period ended January

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

July 31, 2024 and 2023, 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, 2024 the Company had sales of equity securities which yielded gross realized gains

when a sale happens.

For the quarter ended July 31, 2024, the Company had sales of equity securities which yielded gross realized gains

of $ 268,000 and gross realized losses of $ 48,000 .

1 unchanged sentence

but gross realized losses of $ 7,000 were recorded.

As for the nine-months ended January 31, 2024 the Company had sales of equity securities

which yielded gross realized gains of $ 329,000 and gross realized losses of $ 362,000 .

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

did not yield any gross realized gains, but gross realized losses of $ 22,000 were recorded.

During the quarter ending January 31, 2023,

the Company recorded gross realized gains and losses on equity securities of $ 118,000 and $ 69,000 , respectively, while sales of debt

securities did not yield any gross realized gains, but gross realized losses of $ 5,000 were recorded.

During the nine-month period ending

January 31, 2023, the Company recorded gross realized gains and losses on equity securities of $ 403,000 and $ 522,000 , respectively.

the same nine-month period last year, sales of debt securities did not yield any gross realized gains, but gross realized losses of $ 46,000

were recorded.

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, 2023, the Company recorded gross realized gains

and losses on equity securities of $ 105,000 and $ 218,000 , respectively, while sales of debt securities did not yield any gross realized

gains, but gross realized losses of $ 5,000 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, 2024 and April 30, 2023, respectively.

Loss Breakdown by Investment Type at January 31, 2024

of Unrealized Loss Breakdown by Investment

than 12 months

July 31, 2024 and April 30, 2024, respectively.

Loss Breakdown by Investment Type at July 31, 2024

Schedule of Unrealized Loss Breakdown by Investment Type

Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

$ ( 153,000 )

$ ( 163,000 )

Equity securities

2 unchanged sentences

Loss Breakdown by Investment Type at April 30, 2024

than 12 months

Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

$ ( 100,000 )

$ ( 230,000 )

Equity securities

1 unchanged sentence

$ ( 317,000 )

$ ( 753,000 )

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

2 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, 2024 and April 30, 2023.

these investments to be other-than-temporarily impaired at July 31, 2024 and April 31, 2024.

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, 2024 and April 30, 2023.

at January 31, 2024 and April 30, 2023 consisted of the following:

of Inventories

impaired at July 31, 2024 and April 30, 2024.

at July 31, 2024 and April 30, 2024 consisted of the following:

Schedule of Inventories

Raw materials

2 unchanged sentences

Inventory, gross

allowance for

obsolete inventory

allowance for obsolete inventory

Inventories, net

1 unchanged sentence

following is financial information relating to industry segments:

of Financial Information Relating to Industry Segments

Security alarm

Schedule of Financial Information Relating to Industry Segments

Security alarm products

Cable & wiring tools

Other products

Total net revenue

Income from operations:

1 unchanged sentence

Cable & wiring tools

income from operations

Other products

Total income from operations

Depreciation and amortization:

2 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, 2024

April 30, 2024

Identifiable assets:

Security alarm

Security alarm products

Cable & wiring tools

Other products

Corporate general

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

the three months ended January 31, 2024

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the three months ended January 31, 2023

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2024

Schedule of Basic and Diluted Earnings Per Share

For the three months ended July 31, 2024

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2023

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2023

(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 $ 15,000 and $ 14,000 were paid during each quarter ending January 31, 2024 and 2023, respectively.

the Company paid matching contributions of approximately $ 45,000 and $ 43,000 during each nine-month period ending January 31, 2024 and

2023, respectively.

Matching contributions of approximately

$ 16,000 were paid in each of the quarters ending July 31, 2024 and 2023, respectively.

Fair Value Measurements

22 unchanged sentences

and Marketable Securities

of January 31, 2024 and April 30, 2023, our investments consisted of money markets, publicly traded equity securities, real estate investment

of July 31, 2024 and April 30, 2024, 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.

1 unchanged sentence

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

of Assets Measured at Fair Value on Recurring Basis

Measured at Fair Value on a Recurring Basis as of

January 31, 2024

Total fair value of

assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2024

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, 2024

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, 2023.

Company’s performance in operations has seen a tick upward 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 to the fact that our business

is tied to the housing market and the winter months usually show a slowdown.

Opportunities include keeping up with 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 continue to work on new products that will be a

good fit for our industry and business.

Challenges in the coming months include getting products out to customers in a timely manner,

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.

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, 2024.

Company’s performance improved during the quarter ended July 31, 2024 as compared to the quarter ended July 31, 2023.

Sales, income

from operations, and overall net income have increased when comparing these figures to the same quarter last year The Company still has

a sizable back-order log and there have still been times that certain raw materials have not been available.

Overall, during this current

quarter, the economy has strengthened and inflation levels have leveled out, which has helped shape our profitable numbers.

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 continue to work on new products

that will be a good fit for our industry and business.

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

in a timely manner and dealing with the ongoing effects of inflation.

Management continues to work at keeping operations flowing as efficiently

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

of Operations

sales were $5,394,000 for the quarter ended January 31, 2024, which is a 23.55% increase from the corresponding quarter last year.

Year-to-date net sales were $16,175,000 at January 31, 2024, which is a 6.46% increase from the same period last year.

The improvement

in sales is a result of the economy rebounding and having the ability to get goods built and shipped to our customers.

to operate our business with our ongoing commitment to outstanding customer service and our ability to customize products.

of goods sold was 50.69% of net sales for the quarter ended January 31, 2024 and was 55.98% for the same quarter last year.

cost of goods sold percentages were 50.36% for the current nine months and 53.15% for the corresponding nine months last year.

current cost of goods sold percentages have dropped to be just 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.

Raw material prices have come down during the current fiscal year as compared to the previous fiscal year,

but wages continue to rise to remain competitive in the job market.

Management offset some of these added expenses by implementing

a 2.5% price increase effective January 1, 2024.

expenses increased by $120,000 for the quarter and they increased by $116,000 for the nine-months ended January 31, 2024 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, 2024 was 21.17% of net sales while it was 23.41% of net sales for the same quarter the prior year.

For year-to-date

numbers, operating expenses were 20.75% and 21.32% of net sales for the nine months ended January 31, 2024 and 2023, respectively.

The Company has been able to keep the operating expenses at less than 30% of net sales for many years now;

however, the actual dollar

amount increase is due to increased commission amounts, related to increased sales, and additional labor costs related to wage increases.

from operations for the quarter ended January 31, 2024 was $1,518,000, a 68.67% increase from the corresponding quarter last year,

which had income from operations of $900,000.

Income from operations for the nine months ended January 31, 2024 was $4,674,000, which

is a 20.53% increase from the corresponding nine months last year, which had income from operations of $3,878,000.

income and expenses for the quarter ended January 31, 2024 shows income of $3,329,000, which is a $1,553,000 increase from the corresponding

quarter last year, which had an income amount of $1,776,000.

Comparatively, there is an increase of $2,259,000 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, the stock market has seen an upturn recently with decreased inflation and improvement in the economy.

net income for the quarter ended January 31, 2024 was up $1,230,000, or 61.22%, from the same quarter last year.

Similarly, net income

for the nine-month period ended January 31, 2024 was up $1,891,000, or 51.57%, from the same period in the prior year.

per common share for the quarter ended January 31, 2024 were $0.66 per share and $1.13 per share for the year-to-date numbers.

for the quarter and nine months ended January 31, 2023 were $0.41 per share and $0.74 per share, respectively.

sales for the quarter ended July 31, 2024 showed a 22.25% increase over the same period in the prior year.

The Company saw increased

sales resulting primarily from a strengthened economy, which has helped improve growth in the housing market.

Management also believes

that sales stay strong due to our ongoing commitment to outstanding customer service and our ability to customize products.

cost of goods sold percentage decreased from 52.07% of sales during the quarter last year, to 49.05% for the current quarter, which

is right at Management’s goal to keep labor and other manufacturing expenses below 50%.

The decreased cost of goods sold percentage

is a result of a steadier economy.

Management strives to be as efficient as possible as material costs continue to increase.

also continue to increase in order to remain competitive in the job market.

expenses increased by $92,000 when comparing the current year quarter to the same quarter for the prior year.

When comparing percentages

in relation to net sales, the operating expenses decreased to 20.26% for the quarter ended July 31, 2024 as compared to 22.82% for

the corresponding quarter last year.

The dollar amount increase is primarily the result of increased sales commissions.

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, 2024 was at $1,774,000, which is a 49.45% increase from the corresponding quarter

last year, which had income from operations of $1,187,000.

income and expenses showed a $1,875,000 gain for the quarter ended July 31, 2024 as compared to a $1,773,000 gain for the quarter

ended July 31, 2023.

For the three months ended July 31, 2024, $1,346,000 of unrealized gains from equity securities were recorded,

compared to $1,634,000 of unrealized losses from equity securities recorded for the three months ended July 31, 2023.

The remainder

of the increase is primarily due to dividend and interest income paid on investments and gains on sales of investments.

Company’s provision for income taxes showed an increase of $358,000 from $586,000 in the quarter ended July 31, 2023 to $944,000

for the quarter ended July 31, 2024.

This increase is primarily due to increased income.

Income before provisions for income tax

is up $689,000 when comparing the current quarter ending July 31, 2024 to the same quarter the prior year.

turn, net income for the quarter ended July 31, 2024 was $2,705,000, a 13.94% increase from the corresponding quarter last year,

which showed net income of $2,374,000.

per share for the quarter ended July 31, 2024 were $0.55 per common share and $0.48 per common share for the quarter ended July 31,

and capital resources

cash increased $428,000 during the nine months ended January 31, 2024 as compared to a decrease of $813,000 during the corresponding

period last year.

receivable increased $554,000 for the nine months ended January 31, 2024 compared with a $824,000 decrease for the same period last

The current year increase is a direct result of the increased sales, while there has been a slight uptick in collections of

accounts receivable.

An analysis of accounts receivable shows that 9.62% of the receivables were over 90 days at January 31, 2024.

increased $594,000 during the current nine-month period compared to an increase of $2,444,000 last year.

The smaller increase in

the current year is due to not having as many raw materials on hand since sales have increased.

Management has also seen slight decreases

in raw material prices during the current year as compared to the nine-month period ending January 31, 2023.

expenses saw a $515,000 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-month period

showed a $458,000 decrease in prepaid expenses.

tax overpayment decreased $88,000 for the current nine-month period, compared to having an increase of $478,000 in income tax overpayment

for the nine-months ended January 31, 2023.

The current decrease is due to having to our income tax estimates be more aligned with

our net income.

payable shows a $164,000 decrease for the current nine-month period ended January 31, 2024 compared to an $84,000 increase for the

prior nine-month period.

The company strives to pay all invoices within terms, and the variance is primarily due to the timing of

receipt of products and payment of invoices.

expenses increased $120,000 for the current nine-month period compared to a $184,000 increase for the nine-month period ended January

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

for our investment activities, the Company spent approximately $263,000 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 $221,000.

Additionally,

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

During the nine-month

period ended January 31, 2024 the buy/sell activity in the investment accounts continued as usual.

Net cash spent on purchases of

marketable securities for the nine-month period ended January 31, 2024 was $556,000 compared to $648,000 spent in the prior nine-month

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.

The Company pays

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

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

For the nine-month period ended January 31, 2024, the

Company purchased $364,000 worth of treasury stock.

This is in comparison to $5,000 spent in the same nine-month period the prior

company paid out dividends of $2,914,000 during the nine months ending January 31, 2024.

These dividends were paid during the second

The company declared a dividend of $0.65 per share of common stock on September 30, 2023 and these dividends were paid by

October 31, 2023.

As for the prior year numbers, dividends paid was $2,689,000 for the nine months ending January 31, 2023.

of $0.60 per common share was declared and paid during the second fiscal quarter last year.

cash increased $2,255,000 during the quarter ended July 31, 2024 as compared to an increase of $611,000 during the corresponding

quarter last year.

The details are listed below.

receivable, net increased $255,000 for the quarter ending July 31, 2024 compared with a $431,000 decrease for the same quarter last

The increase in cash flow from accounts receivable is directly attributable to the increase 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 a minimum.

An analysis of accounts receivable shows that 4.76% of the balance was over 90 days at July 31, 2024.

net decreased $313,000 during the current quarter as compared to a $521,000 increase last year.

The current period decrease is primarily

due to the fact that the Company has increased sales and using inventory faster than it is being replenished.

the quarter ended July 31, 2024, there was a $104,000 increase in prepaid expenses and other current assets compared to an increase

of $482,000 for the quarter ended July 31, 2023.

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.

payable shows a decrease of $30,000 for the quarter ended July 31, 2024 compared to a decrease of $50,000 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 $125,000 for the current quarter as compared to a $2,000 increase for the quarter

ended July 31, 2023.

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

tax payable for the quarter ended July 31, 2024 increased $697,000, compared to a $304,000 decrease in income tax receivable for

the quarter ended July 31, 2023.

The current year income tax payable increase is a result of increased income.

Company purchased $105,000 of property and equipment during the current fiscal quarter.

In comparison, $201,000 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

Cash spent on purchases of marketable securities for the quarter ended July 31, 2024

was $212,000 compared to $150,000 spent during the quarter ended July 31, 2023.

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 received a cash distribution of $269,000 from the investment in the limited land partnership during the quarter ending July

This was the second distribution received from the sale of the limited land partnership and the rest of the proceeds are

contingent on finishing wetland restoration of the land.

Company continues to repurchase common stock when the opportunity arises.

For the quarter ended July 31, 2024 the Company did not

buy back any treasury stock but $22,000 was bought back during the quarter ended July 31, 2023.

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.

3 unchanged sentences

and humidity sensors with built-in hysteresis.

An expansion of the GR3045 panic switch is in the works to include single pull, double

throw (SPDT) versions, latching, and non-latching with LED indicator lights.

A miniature profile overhead door contact based on the

popular 4532 is also in development.

technology is a main area of focus for product development.

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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