What changed in this filing

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Item 1. Financial Statements

2024-12-16 compared with 2024-09-16 · 387 added, 255 removed, 308 unchanged (68% of the section changed)

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

Financial Statements

unaudited financial statements for the three-and six-month periods ended October 31, 2024, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2024

April 30, 2024

Current Assets:

Cash and cash equivalents

Investments and securities, at fair value

Cash and cash

Investments and securities,

at fair value

Accounts receivable:

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

Trade, net of allowance

for credit losses of $ 40,845 and $ 34,256

Federal solar tax credit

Inventories, net

Prepaid expenses

Total Current Assets

Property and Equipment, net, at cost

Investment in Limited Land Partnership, at cost

Projects in process

Investment in Limited Land

Partnership, at cost

Total Other Assets

Intangible Assets, net

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2024

April 30, 2024

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES AND STOCKHOLDERS’

Current Liabilities

Accounts payable, trade

Accounts payable,

Dividends payable

2 unchanged sentences

Income tax payable

Federal solar tax credit

gain on solar tax credit

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, $ .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

Accumulated other comprehensive income

Accumulated other comprehensive

Retained earnings

2 unchanged sentences

( 4,945,000 )

Total Stockholders’ Equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements

Total Stockholders’

TOTAL LIABILITIES AND

STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

July 31, 2024

July 31, 2023

INCOME (LOSS) STATEMENTS

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

Cost of Goods Sold

1 unchanged sentence

( 2,949,000 )

( 5,735,000 )

( 5,411,000 )

Operating Expenses

2 unchanged sentences

Income From Operations

Other Income (Expense)

Interest Expense

Other (Expense)

Dividend and Interest Income

Unrealized Gain on Equity Securities

Gain (Loss) on Sale of Assets

Gain (Loss) on Sale of Investments

Total Other Income (Expense)

Income Before Provisions for Income Taxes

Unrealized (Loss) on Equity

( 2,368,000 )

Gain (Loss) on Investments

Gain (Loss) on Solar Tax

on Sale of Assets

Total Other Income (Loss)

( 2,103,000 )

Income (Loss) Before Provisions for Income

Provisions for Income Taxes:

Current Expense

Deferred tax (benefit) expense

Total Income Tax Expense

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Tax (Benefit) Expense

Income Tax Expense (Benefit)

Net Income (Loss)

Income Per Share of Common Stock

Weighted Average Number of Common

Shares Outstanding

Weighted Average Number of Common Shares Outstanding

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

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

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

Net Income (Loss)

Other Comprehensive (Loss), Net of Tax

Unrealized (loss) on debt

Unrealized holding (losses) arising during

tax (expense) benefit related to other comprehensive income

Comprehensive (Loss)

Comprehensive Income

accompanying notes to the condensed financial statements

$ ( 262,000 )

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2024 and 2023

Preferred Stock

Balances, April 30, 2023

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2024 AND 2023

Balances, July 31, 2023

Purchases of common stock

Unrealized gain, net of tax effect

Dividend declared at $ 0.65 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

Balances, July 31, 2024

Preferred Stock

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2024 AND 2023

Comprehensive

Balances, July 31, 2023

$ ( 4,576,000 )

$ ( 184,000 )

Purchases of common stock

Dividend declared at $0.65 per common share

( 3,203,000 )

Unrealized (loss), net of tax effect

Balances, October 31,

$ ( 4,595,000 )

$ ( 391,000 )

Comprehensive

Balances, July 31, 2024

$ ( 4,945,000 )

Purchases of common stock

Dividend declared at $0.65 per common share outstanding

( 4,896,000 )

Unrealized (loss), net of tax effect

Balances, October 31,

$ ( 4,945,000 )

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

Balances, April 30, 2023

Purchases of common stock

Dividend declared at $ 0.65 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

Balances, April 30, 2024

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized gain, net of tax effect

Balances, July 31, 2024

accompanying notes to the condensed financial statements

Balances, October 31,

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2024 and 2023

Treasury Stock

(Common Class A)

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

Comprehensive

3 unchanged sentences

Purchases of common stock

Unrealized gain, net of tax effect

Balances, July 31, 2023

Dividend declared at $0.65 per common share outstanding

( 3,203,000 )

Treasury Stock

(Common Class A)

Unrealized (loss), net of tax effect

Balances, October 31,

$ ( 4,595,000 )

$ ( 391,000 )

Comprehensive

4 unchanged sentences

$ ( 137,000 )

Purchases of common stock

Dividend declared at common share outstanding

( 4,896,000 )

Unrealized gain, net of tax effect

Balances, July 31, 2024

Unrealized gain (loss), net of tax

Net Income (Loss)

Balances, October 31,

$ ( 4,945,000 )

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2024 AND 2023

July 31, 2024

July 31, 2023

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 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

(Gain) loss on sale of investments

Unrealized (gain) loss on equity securities

( 1,346,000 )

(Gain) loss on sale of

Impairments of investments

Unrealized (gain) loss

on equity securities

( 1,413,000 )

Provision for credit losses on accounts receivable

Provision for credit losses

on accounts receivable

Reserve for obsolete inventory

Deferred income taxes

(Gain) on sale of assets

(Gain) loss on sale of

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

Prepaid expenses and other current assets

( 1,103,000 )

Prepaid expenses and projects

Other receivables

Federal solar tax credit

( 2,485,000 )

Income tax overpayment

1 unchanged sentence

Accounts payable

Accrued expenses and other current liabilities

Income tax payable

Net cash from operating activities

Federal solar tax credit

Deferred gain on solar

Accrued expenses

Net cash from operating

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of assets

(Purchase) of property and equipment

Proceeds from sale of marketable securities

(Purchase) of marketable securities

(Purchase) of property

and equipment

Proceeds from sale of marketable

(Purchase) of marketable

Distribution from investment in limited land partnership

Net cash from investing activities

Net cash from investing

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

(Purchase) of treasury

( 4,448,000 )

( 2,914,000 )

Net cash from financing

( 4,448,000 )

( 2,955,000 )

NET CHANGE IN CASH AND

CASH EQUIVALENTS

( 1,658,000 )

( 1,381,000 )

Cash and Cash Equivalents,

beginning of period

Cash and Cash Equivalents,

end of period

Supplemental Disclosure for Cash Flow Information:

Cash payments for:

Income taxes paid

Interest paid

accompanying notes to the condensed financial statements

Cash receipts for:

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Unaudited Interim Financial Statements

1 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

2 unchanged sentences

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.

April 30, 2024 annual report on Form 10-K.

In the opinion of management, all adjustments, consisting only of normal recurring adjustments

considered necessary for a fair presentation, have been included.

Operating results for any quarter are not necessarily indicative of

the results for any other quarter or for the full year.

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

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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

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, 2024.

six months ended October 31, 2024.

of Transferrable Tax Credits – In September 2024, pursuant to transferability provisions of the Inflation Reduction Act of

2022, the Company executed an agreement to purchase a tax credit of $ 3,431,000 created by solar energy projects qualifying under Internal

Revenue Code Section 48 (the “Solar Tax Credit”) in exchange for consideration of $ 2,917,000 , resulting in a total gain on

federal Solar Tax Credit of $ 373,000 .

This tax credit is available to offset income tax expense for the Company’s 2025 fiscal year.

the three months ended October 31, 2024, the Company paid cash of $ 1,945,000 for this purchase and applied $ 947,000 of the tax credit

towards income tax expense for the first six months of fiscal year 2025.

As of October 31, 2024, the remaining Solar Tax Credit of $ 2,485,000

is shown as a receivable, and the remaining consideration of $ 972,000 is shown as a current liability, on our condensed balance sheet.

This liability was paid in November 2024.

the three and six months ended October 31, 2024, a gain on Solar Tax Credit of $ 373,000 has been recognized in our condensed statements

of operations, and a deferred gain on solar tax credit remains as a current liability on our condensed balance sheet as of October 31,

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

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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 Financial Statements.

The Company has evaluated the impact that the adoption

of this ASU will have to the financial statements and related disclosures and expects to have significant changes to the disclosures

regarding segments.

The Company plans to adopt this ASU beginning with its fiscal year beginning May 1, 2025.

November 2024, the FASB issued ASU No.

2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures

(Subtopic 220-40) Disaggregation of Income Statement Expenses, which requires public business entities to disclose additional information

about certain expenses in the notes to the financial statements.

This guidance is effective for annual reporting periods beginning after

December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is evaluating

the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

2 Investments

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 December 2024 and December

The investments in debt securities, which include municipal bonds and bond funds, mature between August 2025 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 July 31, 2024 and April 30, 2024, investments consisted of the following:

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

Schedule of Investments

Investments at

July 31, 2024

Municipal bonds

3 unchanged sentences

Investments at

April 30, 2024

Municipal bonds

15 unchanged sentences

to determine if impairment changes are required.

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

July 31, 2024 and 2023, respectively.

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

the quarter or the six months ended October 31, 2024, while management recorded an impairment loss of $ 22,000 for the quarter and six-month

period ended October 31, 2023.

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

1 unchanged sentence

when a sale happens.

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

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

of $ 378,000 and gross realized losses of $ 35,000 .

1 unchanged sentence

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

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.

As for the six-months ended October 31, 2024 the Company had sales of equity securities

which yielded gross realized gains of $ 646,000 and gross realized losses of $ 83,000 .

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

did not yield any gross realized gains, but gross realized losses of $ 14,000 were recorded.

During the quarter ending October 31, 2023,

the Company recorded gross realized gains and losses on equity securities of $ 108,000 and $ 60,000 , respectively, while sales of debt

securities did not yield any gross realized gains, but gross realized losses of $ 2,000 were recorded.

During the six-months ending October

31, 2023, the Company recorded gross realized gains and losses on equity securities of $ 214,000 and $ 278,000 , respectively, while sales

of debt securities did not yield any gross realized gains, but gross realized losses of $ 7,000 were recorded.

The gross realized loss

numbers include the impaired figures listed in the previous paragraph.

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

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

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

Loss Breakdown by Investment Type at July 31, 2024

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

Loss Breakdown by Investment Type at October 31, 2024

Schedule of Unrealized Loss Breakdown by Investment Type

Unrealized Loss

Less than 12 months

Debt securities, unrealized loss, less than 12 months

Debt securities, unrealized loss, less than 12 months, accumulated loss

Debt securities, unrealized loss, 12 months or greater

Debt securities, unrealized loss, 12 months or greater, accumulated loss

Debt securities, unrealized loss fair value

Debt securities, unrealized loss fair value, accumulated loss

than 12 months

months or greater

Unrealized Loss

Municipal bonds

3 unchanged sentences

Loss Breakdown by Investment Type at April 30, 2024

Unrealized Loss

Less than 12 months

Debt securities, unrealized loss, less than 12 months

Debt securities, unrealized loss, less than 12 months, accumulated loss

Debt securities, unrealized loss, 12 months or greater

Debt securities, unrealized loss, 12 months or greater, accumulated loss

Debt securities, unrealized loss fair value

Debt securities, unrealized loss fair value, accumulated loss

than 12 months

months or greater

Unrealized Loss

Municipal bonds

7 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 July 31, 2024 and April 31, 2024.

these investments to be other-than-temporarily impaired at October 31, 2024 and April 30, 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 July 31, 2024 and April 30, 2024.

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

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

3 Inventories

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

Schedule of Inventories

3 unchanged sentences

Inventory, gross

allowance for obsolete inventory

allowance for obsolete

Inventories, net

2 unchanged sentences

Schedule of Financial Information Relating to Industry Segments

Security alarm products

Security alarm

Cable & wiring tools

Other products

Total net revenue

2 unchanged sentences

Cable & wiring tools

Other products

Total income from operations

3 unchanged sentences

Other products

Corporate general

Total depreciation and amortization

Total depreciation and

Capital expenditures:

2 unchanged sentences

Other products

Corporate general

Total capital expenditures

July 31, 2024

April 30, 2024

Identifiable assets:

Security alarm products

Security alarm

Cable & wiring tools

Other products

Corporate general

Earnings per Share

Note 5 Earnings per Share

Income (Loss) Per Share

income (loss) per share of common stock attributable to common stockholders is calculated by dividing net income (loss) attributable

to common stockholders by the weighted-average shares of common stock outstanding for the period.

Potentially dilutive shares, which

are based on the weighted-average shares of common stock underlying outstanding stock-based awards using the treasury stock method or

the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable

to common stockholders when their effect is dilutive.

The dilutive common shares for the three months ended October 31, 2023 are not

included in the computation of diluted earnings per share because to do so would be anti-dilutive.

As of October 31, 2024 there were

20,500 potentially dilutive shares.

and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are:

Schedule of Basic and Diluted Earnings Per Share

For the three months ended July 31, 2024

the three months ended October 31, 2024

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2023

Effect of dilutive Convertible

Preferred Stock

the three months ended October 31, 2023

(Denominator)

Effect of dilutive Convertible Preferred Stock

the six months ended October 31, 2024

(Denominator)

Effect of dilutive Convertible

Preferred Stock

the six months ended October 31, 2023

(Denominator)

Effect of dilutive Convertible

Preferred Stock

6 Retirement Benefit Plan

12 unchanged sentences

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

Matching contributions of approximately

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

Matching contributions by the

Company of approximately $ 13,000 and $ 14,000 were paid during each quarter ending October 31, 2024 and 2023, respectively.

the Company paid matching contributions of approximately $ 29,000 during each of six-month periods ending October 31, 2024 and 2023.

7 Fair Value Measurements

22 unchanged sentences

and Marketable Securities

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

of October 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.

10 unchanged sentences

Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2024

Measured at Fair Value on a Recurring Basis as of

October 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

Markets and CDs

Total fair value of

assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of

April 30, 2024

1 unchanged sentence

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Markets and CDs

Total fair value of

assets measured on a recurring basis

8 Subsequent Events

1 unchanged sentence

FINANCIAL INFORMATION

Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management Discussion and Analysis of Financial Condition and Results of Operations

DISCUSSION AND ANALYSIS

FINANCIAL CONDITION

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 current information becomes available in the future.

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

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

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

Company’s performance remained steady through the first half of the current fiscal year with the second quarter showing a decrease

in sales over the first quarter of the current fiscal year.

This is mainly due to not having a few vital raw materials that are needed

to complete the manufacture of our products.

Also, management is not seeing as many high dollar orders as there were in the first quarter

This is because production has caught up on back orders and, since we are tied to the housing market, there almost always is a decline

from the first to second quarter and inflation is still very high.

As far as overall company performance, the net income is up when comparing

the current six-month period to the prior six-month period.

Management continues to keep manufacturing and operating expenses in check

and the current year realized and unrealized gains on investments have increased over the same periods last year.

Opportunities include

keeping up with the business growth, finding ways to get our products out to our customers in a timelier manner, which includes looking

into more automation, and to continue looking at businesses that might be a good fit to purchase.

We also 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

that will be 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 ongoing effects of inflation.

Management continues to work at keeping operations flowing as efficient

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

of Operations

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

sales were $5,613,000 for the quarter ended October 31, 2024, which is a 7.27% decrease from the corresponding quarter last year.

Year-to-date net sales were $11,394,000 at October 31, 2024, which is a 5.69% increase from the same period last year.

in sales in the current quarter is a result of the business getting caught up on back orders and seeing the lingering results of

inflation having smaller orders coming in.

But management believes the ongoing commitment towards outstanding customer service and

customization of products are just a few of the many reasons sales continue to grow.

of goods sold was 51.65% of net sales for the quarter ended October 31, 2024 and was 48.72% for the same quarter last year.

cost of goods sold percentages were 50.33% for the current six months and 50.19% for the corresponding six months last year.

current cost of goods sold percentage goals of keeping labor and other manufacturing expenses at less than 50% are just slightly

over for the quarter and year-to-date results.

The increased cost of goods sold percentages are a result of increased wages and some

increased material costs as management continues to work on finding ways to be more efficient.

expenses were up $95,000 for the quarter and were up $188,000 for the six-months ended October 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 October 31,

2024 was 21.93% of net sales while it was 18.77% of net sales for the same quarter the prior year.

For year-to-date numbers, operating

expense were 21.09% and 20.55% of net sales for the six months ended October 31, 2024 and 2023, respectively.

The Company has been

able to keep the operating expenses at less than 25% of net sales for many years now;

however, the actual dollar amount increase

is because of increased commission amounts (since sales have increased) and additional labor costs for wage increases.

from operations for the quarter ended October 31, 2024 was at $1,483,000, which is a 24.64% decrease from the corresponding quarter

last year, which had income from operations of $1,968,000.

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,

Income from operations for the six months ended October 31, 2024 was at

$3,256,000, which is a 3.20% increase from the corresponding six months last year, which had income from operations of $3,155,000.

income and expenses are up when comparing the current quarter to the same quarter of the prior year, with an increase of $3,273,000

in the current quarter.

Comparably, other income and expenses are up by $3,375,000 when comparing the current six-month period to

the prior six-month period.

Most of the activity in these accounts consists of investment interest, dividends, real gains or losses

on sale of investments, and unrealized gains or losses on equity securities.

The main reason for the gains in the current quarter

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

The stock market influences these figures,

and the current state of the economy has been performing well.

net income for the quarter ended October 31, 2024 was up $2,270,000, or 4,127.27%, over the same quarter last year.

Conversely, net

income for the six-month period ended October 31, 2024 was up $2,601,000, or 112.16%, over the same period in the prior year.

per common share for the quarter ended October 31, 2024 were $0.45 per share and $1.00 per share for the year-to-date numbers.

for the quarter and six months ended October 31, 2023 were ($0.01) per share and $0.47 per share, respectively.

and capital resources

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.

cash decreased $1,658,000 during the six months ended October 31, 2024 compared to a decrease of $1,381,000 during the corresponding

period last year.

receivable increased $19,000 for the six months ended October 31, 2024 compared with a $553,000 increase for the same period last

The smaller current year increase is a result of improved collection on accounts receivable.

An analysis of accounts receivable

shows that 6.69% of the receivables were over 90 days at October 31, 2024, while 6.71% were over 90 days for the same period last

decreased $435,000 during the current six-month period compared to a $1,103,000 increase last year.

The decrease in the current year

is primarily due to fewer purchases of raw materials compared to the prior six-month period.

expenses and other current assets increased $21,000 for the current six months, primarily due to increased prepayments on inventory

during the current six-month period.

The prior year six months showed a $608,000 decrease in prepaid expenses.

federal solar tax credit receivable represents the remaining federal solar tax credits we will receive from our purchase of transferrable

tax credits, pursuant to transferability provisions of the Inflation Reduction Act of 2022.

payable decreased $33,000 for the current six-month period compared to a decrease of $323,000 for the prior six-month period.

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

federal solar tax credit payment payable represents the remaining liability for the purchase of transferrable tax credits.

was paid in November 2024.

deferred gain on solar tax credit represents the portion of the gain on the purchase of federal solar tax credits that has not yet

been recognized.

This will be recognized as more of the federal solar tax credits are applied to income tax payable.

expenses decreased $29,000 for the current six-month period compared to a $72,000 decrease for the six-month period ended October

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

tax payable increased $65,000 for the current six-month period, compared to having a decrease of $25,000 in income tax receivable

for the six-months ended October 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.

for our investment activities, the Company purchased $308,000 of property and equipment during the current six-month period.

In comparison,

$243,000 was spent on purchases of property and equipment during the corresponding six months last year.

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

During the six-month period

ended October 31, 2024 there was quite a bit of buy/sell activity in the investment accounts.

Net cash used to purchase marketable

securities for the six-month period ended October 31, 2024 was $361,000 compared to $273,000 cash used in the prior six-month period.

We continue to use “money manager” accounts for most stock transactions.

By doing this, the Company gives an independent

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

The Company pays a quarterly service

fee based on the value of the investments.

Company received a cash distribution of $269,000 from the investment in the limited land partnership during the six-month period

ending October 31, 2024.

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 purchase back its common stock when the opportunity arises.

For the six-month period ended October 31, 2024,

the Company did not purchase any treasury stock, compared to $41,000 repurchased in the corresponding six-month period last year.

company declared a dividend of $1.00 per share of common stock on September 30, 2024, which was paid out during the second quarter.

This is an increase to the dividend of $0.65, which was declared and paid during the second fiscal quarter last year.

Product Development

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:

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

24 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

and Qualitative Disclosures About Market Risk

disclosure does not apply.

Quantitative and Qualitative Disclosures about Market Risk

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