What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-03-17 compared with 2024-12-16 · 251 added, 295 removed, 400 unchanged (58% of the section changed)

Financial Statements

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

unaudited financial statements for the three- and nine-month period ended January 31, 2025, are attached hereto.

RISK INDUSTRIES, INC.

3 unchanged sentences

Investments and securities

at fair value

Accounts receivable:

7 unchanged sentences

Partnership, at cost

Projects in process

Total Other Assets

3 unchanged sentences

BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS’

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

2 unchanged sentences

Deferred income

Accrued expenses

Accrued expense

Income tax payable

Federal solar tax credit

gain on solar tax credit

6 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

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

Common stock, Class A,

7 unchanged sentences

Total Stockholders’

TOTAL LIABILITIES AND

TOTAL LIABILITES AND

STOCKHOLDERS’ EQUITY

1 unchanged sentence

RISK INDUSTRIES, INC.

INCOME (LOSS) STATEMENTS

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

INCOME STATEMENTS

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

Cost of Goods Sold

7 unchanged sentences

Income From Operations

Other (Expense)

Other Income (Expense)

Dividend and Interest Income

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

Unrealized Gain on equity

Gain (Loss) on Sale of

Gain on Solar Tax Credit

(Loss) on Sale of Assets

Total Other Income

Income Before Provisions for Income Taxes

Provisions for Income Taxes:

Current Expense

Tax (Benefit) Expense

Income Tax Expense (Benefit)

Net Income (Loss)

Total Income Tax Expense

Income Per Share of Common Stock

1 unchanged sentence

Shares Outstanding

Weighted Average Number of Common Shares Outstanding

Average Number of Common Shares Outstanding

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

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)

STATEMENTS OF COMPREHENSIVE INCOME

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

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)

Comprehensive Income

$ ( 262,000 )

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2024 AND 2023

Balances, July 31, 2023

Purchases of common stock

Dividend declared at $ 0.65 per common share

Unrealized (loss), net of tax effect

THE THREE MONTHS ENDED JANUARY 31, 2025 AND 2024

Stock Class A

Balances, October 31, 2024

Balances, July 31, 2024

Purchases of Common Stock

Dividend declared at $ 1.00 per common share

Unrealized (loss), net of tax effect

Unrealized gain, net of tax effect

Balances, January 31,

Stock Class A

Balances, October 31, 2023

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2024 AND 2023

THE THREE MONTHS ENDED JANUARY 31, 2025 AND 2024

Treasury Stock

Comprehensive

Balances, July 31, 2023

$ ( 4,576,000 )

Balances, October 31, 2024

$ ( 4,945,000 )

Purchases of Common Stock

Dividend declared at $0.65 per common share

( 3,203,000 )

Unrealized gain, net of tax effect

Balances, January 31,

$ ( 4,977,000 )

Unrealized (loss), net of tax effect

Treasury Stock

Comprehensive

Balances, October 31, 2023

1 unchanged sentence

$ ( 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,

Unrealized gain, net of tax effect

Balances, January 31,

$ ( 4,918,000 )

2 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

Stock Class A

Balances, April 30, 2024

1 unchanged sentence

Dividend declared at $ 1.00 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

Unrealized gain, net of tax effect

Balances, January 31,

Stock Class A

Balances, April 30, 2023

1 unchanged sentence

Dividend declared at $ 0.65 per common share

Unrealized gain, net of tax effect

Balances, October 31,

Unrealized (loss), net of tax effect

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

Treasury Stock

Comprehensive

3 unchanged sentences

Purchases of common stock

Dividend declared at $0.65 per common share outstanding

( 3,203,000 )

Dividend declared at $1.00 per common share

( 4,897,000 )

Unrealized (loss), net of tax effect

Balances, October 31,

( 4,897,000 )

Unrealized gain, net of tax effect

Balances, January 31,

$ ( 4,977,000 )

Treasury Stock

Comprehensive

5 unchanged sentences

Purchases of common stock

Dividend declared at common share outstanding

Dividend declared at $0.65 per common share

( 3,203,000 )

Unrealized gain, net of tax effect

Unrealized gain (loss), net of tax

Net Income (Loss)

Balances, October 31,

Unrealized (loss), net of tax effect

Balances, January 31,

$ ( 4,918,000 )

3 unchanged sentences

STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDED OCTOBER 31, 2024 AND 2023

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

CASH FLOWS FROM OPERATING ACTIVITIES:

3 unchanged sentences

(Gain) loss on sale of

Impairments of investments

Unrealized (gain) loss

on equity securities

Impairment on investments

Unrealized (gain) on equity

( 1,505,000 )

( 2,149,000 )

Provision for credit losses

2 unchanged sentences

Deferred income taxes

(Gain) loss on sale of

(Gain) loss on sales of

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

( 1,103,000 )

Prepaid expenses and projects

Prepaid expenses

Other receivables

4 unchanged sentences

Accounts payable

Federal solar tax credit

Deferred gain on solar

Accrued expenses

Accrued expense

Net cash from operating

5 unchanged sentences

(Purchase) of marketable

Distribution from investment in limited land partnership

from investment in limited land partnership

Net cash from investing

9 unchanged sentences

( 1,532,000 )

( 1,381,000 )

Cash and Cash Equivalents,

4 unchanged sentences

Cash payments for:

Interest paid

Cash receipts for:

1 unchanged sentence

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1 Unaudited Interim

Financial Statements

TO CONDENSED FINANCIAL STATEMENTS

Unaudited Interim Financial Statements

accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the

1 unchanged sentence

It is suggested that

these 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.

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.

these unaudited 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.

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.

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

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

six months ended October 31, 2024.

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, 2025.

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

2 unchanged sentences

federal Solar Tax Credit of $ 514,000 .

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,

This tax credit is available to offset income tax payments for the Company’s 2025 fiscal

year and for up to the prior four fiscal years.

Once the amount of the current federal income tax due is known, amendments will be made

to the prior fiscal years until the total credit has been used.

As of January 31, 2025, this is shown as a receivable of $ 2,375,000 .

the three and nine months ended January 31, 2025, a gain on Solar Tax Credit of $ 95,000 and $ 468,000 has been recognized in our condensed

statements of operations, respectively.

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

12 unchanged sentences

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

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.

The Company is evaluating the impact of adopting this

new accounting guidance on its Consolidated Financial Statements.

November 2024, the FASB issued ASU No.

6 unchanged sentences

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

6 unchanged sentences

Dividend and interest income are reported as earned.

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

of January 31, 2025 and April 30, 2024, investments consisted of the following:

Schedule of Investments

22 unchanged sentences

to determine if impairment changes are required.

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

the quarter or the 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.

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

ended January 31, 2025 and 2024, respectively.

For the year-to-date numbers, there were no impairment losses recorded for the nine-month

period ended January 31, 2025, while management recorded an impairment loss of $ 22,000 for the nine-month period ended January 31, 2024.

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

Therefore, either a realized gain or loss is recorded

when a sale happens.

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

when a sale occurs.

For the quarter ended January 31, 2025, the Company had sales of equity securities which yielded gross realized gains

of $ 424,000 and gross realized losses of $ 76,000 .

1 unchanged sentence

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

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

For the nine- months ended January 31, 2025, the Company had sales of equity securities

which yielded gross realized gains of $ 1,070,000 and gross realized losses of $ 159,000 .

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

For the same nine-month period, sales of debt

securities did not yield any gross realized gains, but gross realized losses of $ 20,000 were recorded.

During the six-months ending October

During the quarter ending January

31, 2024, the Company recorded gross realized gains and losses on equity securities of $ 116,000 and $ 84,000 , respectively, while sales

of debt securities did not yield any gross realized gains, but gross realized losses of $ 14,000 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

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

Loss Breakdown by Investment Type at October 31, 2024

During the nine-month

period ending January 31, 2024, the Company recorded gross realized gains and losses on equity securities of $ 329,000 and $ 362,000 , respectively.

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

of $ 22,000 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”,

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

of January 31, 2025 and April 30, 2024, respectively.

Loss Breakdown by Investment Type as of January 31, 2025

Schedule of Unrealized Loss Breakdown by Investment Type

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

4 unchanged sentences

$ ( 259,000 )

Loss Breakdown by Investment Type at April 30, 2024

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

Loss Breakdown by Investment Type as of April 30, 2024

than 12 months

9 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 October 31, 2024 and April 30, 2024.

these investments to be other-than-temporarily impaired as of January 31, 2025 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 October 31, 2024 and April 30, 2024.

3 Inventories

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

impaired as of January 31, 2025 and April 30, 2024.

as of January 31, 2025 and April 30, 2024 consisted of the following:

Schedule of Inventories

29 unchanged sentences

Other products

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.

Earnings per Share

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

Schedule of Basic and Diluted Earnings Per Share

the three months ended October 31, 2024

the three months ended January 31, 2025

(Denominator)

Effect of dilutive Convertible

Preferred Stock

the three months ended October 31, 2023

Effect of dilutive

Convertible Preferred Stock

the three months ended January 31, 2024

(Denominator)

the six months ended October 31, 2024

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2025

(Denominator)

Effect of dilutive Convertible

Preferred Stock

the six months ended October 31, 2023

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2024

(Denominator)

Effect of dilutive Convertible

Preferred Stock

Effect of dilutive

Convertible Preferred Stock

Retirement Benefit Plan

13 unchanged sentences

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.

Company of approximately $ 14,000 and $ 15,000 were paid during each quarter ending January 31, 2025 and 2024, respectively.

the Company paid matching contributions of approximately $ 44,000 and $ 45,000 during each nine-month period ending January 31, 2025 and

2024, respectively.

Fair Value Measurements

22 unchanged sentences

and Marketable Securities

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

of January 31, 2025 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.

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.

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.

Value Hierarchy

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

following tables set 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.

3 unchanged sentences

Measured at Fair Value on a Recurring Basis as of

October 31, 2024

January 31, 2025

Municipal Bonds

Equity Securities

Markets and CDs

Total fair value of

4 unchanged sentences

Equity Securities

Markets and CDs

Total fair value of

19 unchanged sentences

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 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 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.

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, 2024.

Company’s performance in operations has remained steady 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.

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 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 $5,613,000 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 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.

sales were $4,912,000 for the quarter ended January 31, 2025, which is an 8.94% decrease from the corresponding quarter last year.

Year-to-date net sales were $16,306,000 as of January 31, 2024, which is a 0.81% increase from the same period last year.

in sales in the current quarter is a result of our seasonal slow-down during the winter months, the lingering effects of inflation,

and some uneasiness that has been felt from the presidential election, especially regarding possible tariffs.

We continue to operate

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

of goods sold was 53.22% of net sales for the quarter ended January 31, 2025 and was 50.69% for the same quarter last year.

cost of goods sold was 51.20% of net sales for the current nine months and 50.36% for the corresponding nine months last year.

current quarter and year-to-date cost of goods sold percentages have risen to be just outside Management’s goal of keeping

labor and other manufacturing expenses at less than 50%.

This is due to increases in wages and material costs.

Management continues

to work with and train employees to work more efficiently.

Management offset a portion of these added expenses by implementing a

5% price increase effective February 1, 2025.

expenses decreased by $40,000 for the quarter as they increased by $148,000 for the nine months ended January 31, 2025, compared

to the corresponding periods last year.

When comparing percentages in relation to net sales, the operating expenses for the quarter

ended January 31, 2025, were 22.43% of net sales compared to 21.17% of net sales for the same quarter the prior year.

For year-to-date

numbers, operating expenses were 21.49% and 20.75% of net sales for the nine months ended January 31, 2025 and 2024, respectively.

The Company has been able to keep the operating expenses at less than 25% of net sales for many years;

however, the actual dollar

amount increase for the year-to-date numbers 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, 2025, was $1,196,000, a 21.21% decrease from the corresponding quarter last year,

which had income from operations of $1,518,000.

Income from operations for the nine months ended January 31, 2025, was $4,453,000,

which is a 4.73% decrease from the corresponding nine months last year, which had income from operations of $4,674,000.

income and expenses for the quarter ended January 31, 2025, shows income of $1,065,000, which is a $2,264,000 decrease from the corresponding

quarter last year, which had income of $3,329,000.

Conversely, there is an increase of $1,112,000 in other income for the year-to-date

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 decrease in the current quarter is the unrealized gain

and loss on equity securities.

The Company is at the mercy of the stock market when it comes to these figures.

The main reason for

the increase in the year-to-date numbers is that the Company has been able to sell investments for gains during this period, as compared

to losses for the same period last year.

net income for the quarter ended January 31, 2025, decreased $1,632,000, or 50.39%, from the same quarter last year.

net income for the nine-month period ended January 31, 2025, increased $970,000, or 17.45%, from the same period in the prior year.

per common share for the quarter ended January 31, 2025, were $0.33 per share and $1.33 per share for the year-to-date numbers.

for the quarter and nine months ended January 31, 2024, were $0.66 per share and $1.13 per share, respectively.

and capital resources

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

cash decreased $1,532,000 during the nine months ended January 31, 2025, compared to an increase of $428,000 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

receivable decreased $193,000 for the nine months ended January 31, 2025, compared with a $554,000 increase for the same period last

The current year’s decrease is a result of the decreased sales during the quarter and while there has been a slight uptick

in collections of accounts receivable.

An analysis of accounts receivable shows that 11.25% of the receivables were over 90 days

as of January 31, 2025.

decreased $151,000 during the current nine-month period compared to an increase of $594,000 last year.

The decrease in the current

year is due to fewer purchases of raw material compared to the prior nine-month period.

expenses increased $106,000 for the current nine months, primarily due to increased prepayments on inventory during the current nine-month

The prior nine-month period showed a $515,000 decrease in prepaid expenses.

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

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.

payable increased $57,000 increase for the current nine-month period ended January 31, 2025, compared to a $164,000 decrease 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.

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

1 unchanged sentence

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

expenses decreased $63,000 for the current nine-month period compared to a $120,000 increase for the nine-month period ended January

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.

tax payable decreased $460,000 for the current nine-month period, compared to a decrease of $88,000 in income tax overpayment for

the nine-months ended January 31, 2024.

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

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.

for investment activities, the Company spent approximately $359,000 on acquisitions of property and equipment for the current nine-month

period, in comparison with the corresponding nine months last year, where the Company used $263,000 for investment activities.

Additionally,

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

During the nine-month

period ended January 31, 2025, 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, 2025, was $806,000 compared to $556,000 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 received a cash distribution of $269,000 from the investment in the limited land partnership during the nine-month period

ending January 31, 2025.

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.

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

For the nine-month period ended January 31, 2025, the

Company purchased $32,000 worth of treasury stock.

This is in comparison to $364,000 spent in the same nine-month period the prior

company paid out dividends of $4,448,000 during the nine months ending January 31, 2025.

These dividends were paid during the second

The company declared a dividend of $1.00 per share of common stock on September 30, 2024, and these dividends were paid

by October 31, 2024.

Dividends paid in the prior year were $2,914,000 for the nine months ending January 31, 2024.

A dividend of

$0.65 per common share was declared and paid during the second fiscal quarter last year.

Product Development

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

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 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.

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 is developing magnetic contacts which are listed under UL 634 Level 2.

1 unchanged sentence

as government buildings, military use, nuclear facilities, and financial institutions.

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

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.

has begun on our updated small profile glass break detector and an expansion of the GR3045 panic switch to include single-pull, double-throw

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

is being done on programmable temperature and humidity sensors with built-in hysteresis, a miniature profile overhead door contact

based on our popular 4532 series, and a brass water valve shut-off system.

technology is a main area of focus for product development.

1 unchanged sentence

A wireless contact switch is in the final stages of development.

Also, we are working on wireless versions of monitoring

devices which include glass break detection, tilt sensing and environmental monitoring.

A redesign of our brass water valve shut-off

system is near completion.

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

11 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements