What changed in this filing

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Item 1. Financial Statements

2025-09-12 compared with 2025-03-17 · 340 added, 410 removed, 241 unchanged (76% of the section changed)

Financial Statements

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

unaudited financial statements for the three months ended July 31, 2025 are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2025

April 30, 2025

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 $ 16,494 and $ 34,256

Federal solar tax credit

Trade, net of allowance for credit losses of $ 57,193 and $ 12,414

Federal solar tax credit receivable

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, 2025

April 30, 2025

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable,

Accounts payable, trade

Dividends payable

Deferred income

Accrued expense

Accrued expenses

Income tax payable

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, 4,239 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

( 5,016,000 )

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, 2025 AND 2024

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

July 31, 2025

July 31, 2024

Cost of Goods Sold

1 unchanged sentence

( 2,835,000 )

( 8,349,000 )

( 8,145,000 )

Operating Expenses:

3 unchanged sentences

Other Income (Expense)

Interest Expense

Dividend and Interest Income

Unrealized Gain on equity

Gain (Loss) on Sale of

Gain on Solar Tax Credit

Unrealized Gain on Equity Securities

(Loss) on Sale of Assets

Total Other Income

Gain on Sale of Investments

Total Other Income (Expense)

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred tax expense

Total Income Tax Expense

Income Per Share of Common Stock

Weighted Average Number of Common

Shares Outstanding

Average Number of Common Shares Outstanding

accompanying notes to the unaudited condensed financial statements.

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Weighted Average Number of Common Shares Outstanding

Weighted Average Number of Shares Outstanding (Diluted)

accompanying notes to the condensed financial statements.

RISK INDUSTRIES, INC.

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)

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

July 31, 2025

July 31, 2024

Other Comprehensive Income, Net of Tax

Unrealized gain on debt securities:

Unrealized holding gains arising during period

Income tax (expense) related to other comprehensive income

Other Comprehensive Income

Comprehensive Income

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2025 AND 2024

Stock Class A

Balances, October 31, 2024

Purchases of Common Stock

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.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2025 AND 2024

Treasury Stock

Comprehensive

Balances, October 31, 2024

$ ( 4,945,000 )

Purchases of Common Stock

Unrealized gain, net of tax effect

Balances, January 31,

$ ( 4,977,000 )

Treasury Stock

Comprehensive

Balances, October 31, 2023

$ ( 4,595,000 )

$ ( 391,000 )

Purchases of common stock

Unrealized gain, net of tax effect

Balances, January 31,

$ ( 4,918,000 )

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

Stock Class A

CONDENSED STATEMENTS

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

Preferred Stock

Balances, April 30, 2024

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized gain, net of tax effect

Balances, January 31,

Stock Class A

Balances, July 31, 2024

Preferred Stock

Balances, April 30, 2025

Purchases of common stock

Dividend declared at $ 0.65 per common share

Unrealized (loss), net of tax effect

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

Unrealized gain, net of tax effect

Balances, July 31, 2025

accompanying notes to the condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

STATEMENTS OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

Treasury Stock

(Common Class A)

Comprehensive

2 unchanged sentences

$ ( 137,000 )

Purchases of common stock

Dividend declared at $1.00 per common share

( 4,897,000 )

Unrealized gain, net of tax effect

Balances, January 31,

Balances, July 31, 2024

$ ( 4,945,000 )

Treasury Stock

(Common Class A)

Comprehensive

2 unchanged sentences

$ ( 5,017,000 )

$ ( 4,554,000 )

$ ( 161,000 )

Purchases of common stock

Dividend declared at $0.65 per common share

( 3,203,000 )

Unrealized (loss), net of tax effect

Balances, January 31,

Unrealized gain, net of tax effect

Balances, July 31, 2025

$ ( 5,026,000 )

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE NINE MONTHS ENDED JANUARY 31, 2025 AND 2024

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

July 31, 2025

July 31, 2024

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

Impairment on investments

Unrealized (gain) on equity

(Gain) on sale of investments

Unrealized (gain) on equity securities

( 2,381,000 )

( 1,346,000 )

Provision for credit losses

on accounts receivable

Provision for credit losses on accounts receivable

Reserve for obsolete inventory

Deferred income taxes

(Gain) loss on sales of

Loss on sale of assets

Changes in assets and liabilities:

1 unchanged sentence

Accounts receivable

Prepaid expenses

Prepaid expenses and other current assets

Other receivables

Federal solar tax credit

( 2,375,000 )

Income tax overpayment

Increase (decrease) in:

Accounts payable

Deferred gain on solar

Accrued expense

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 investment in limited land partnership

Net cash from investing

(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

( 4,448,000 )

( 2,914,000 )

Net cash from financing

( 4,480,000 )

( 3,278,000 )

NET CHANGE IN CASH AND

CASH EQUIVALENTS

( 1,532,000 )

Cash and Cash Equivalents,

beginning of period

Cash and Cash Equivalents,

end of period

(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:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the unaudited condensed financial statements.

accompanying notes to the condensed financial statements

RISK INDUSTRIES, INC.

TO CONDENSED FINANCIAL STATEMENTS

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, 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.

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

April 30, 2025 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, 2025.

in our Annual Report, and there have been no changes to the Company’s significant accounting policies during the three months ended

July 31, 2025.

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

6 unchanged sentences

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.

2023-07, Segment Reporting (Topic280):

to Reportable Segment Disclosures .

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

enhanced disclosures about significant segment expenses.

The amendments are effective retrospectively for fiscal years beginning after

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

The Company is in the process of evaluating

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

December 2023, the FASB issued ASU No.

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

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

This guidance is effective

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

The Company is evaluating the impact of adopting this

new accounting guidance on its Consolidated Financial Statements.

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.

As of July 31, 2025, this is shown as a receivable of $ 2,154,000 .

Reporting and Related Information — In fiscal year 2025, we adopted Accounting Standards Update (ASU) No.

2023-07, Segment

Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards

Board (FASB).

This new standard requires an enhanced disclosure of significant segment expenses on an annual basis.

Segments and Related Disclosures

manage our company as one reportable operating segment.

The segment information aligns with how the Company’s Chief Operating Decision

Maker (“CODM”) reviews and manages our business.

The Company’s CODM is Stephanie Risk-McElroy, President and Chief

Executive and Financial Officer.

information and annual operating plans and forecasts are prepared and reviewed by the CODM at an entity level.

The CODM assesses performance

for the segment and decides how to better allocate resources based on net income that is reported on the Statements of Income and Comprehensive

The Company’s objective in making resource allocation decisions is to optimize the financial results.

Issued Accounting Pronouncements — In December

2023, the FASB issued ASU No.

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

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

This guidance is effective for

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

The Company has adopted this standard which has had

minimal impact on its Financial Statements.

July 2025, the FASB issued ASU No.

2024-05, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts

Receivable and Contract Assets , which provides that in developing supportable forecasts as part of estimating expected credit losses,

all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the

remaining life of the asset.

This guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting

periods within those annual reporting periods.

Early adoption is permitted in both interim and annual reporting periods in which financial

statements have not yet been issued or made available for issuance.

An entity that elects the practical expedient should apply the amendment

prospectively.

The Company does not expect the adoption of this new accounting guidance to have a material effect on its Consolidated

Financial Statements.

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

4 unchanged sentences

Unrealized gains and losses on debt securities are excluded from earnings and reported separately

as a component of stockholder’s equity.

as a component of stockholders’ equity.

Dividend and interest income are reported as earned.

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

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

Schedule of Investments

Investments at

July 31, 2025

Municipal bonds

$ ( 123,000 )

Equity securities

2 unchanged sentences

Investments at

April 30, 2025

Municipal bonds

9 unchanged sentences

exceeds the fair value for approximately one year.

The Company also evaluates the nature of the investment, cause of impairment and number

of investments that are in an unrealized position.

When an “other-than-temporary” decline is identified, the Company will

decrease the cost of the marketable security to the new fair value and recognize a real loss.

The investments are periodically evaluated

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, 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.

The Company also evaluates the nature of the investment, the cause of impairment,

and the number of investments that are in an unrealized position.

When an “other-than-temporary” decline is identified, the

Company will decrease the cost of the marketable security to the new fair value and recognize a real loss.

The investments are periodically

evaluated to determine if impairment changes are required.

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

ended July 31, 2025, and 2024, 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, 2025, the Company had sales of equity securities which yielded gross realized gains

when a sale happens.

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

of $ 190,000 and gross realized losses of $ 36,000 .

1 unchanged sentence

but gross realized losses of $ 9,000 were recorded.

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 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 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.

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”,

During the quarter ending July 31, 2024, the Company recorded gross realized gains

and losses on equity securities of $ 268,000 and $ 48,000 , 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 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, as

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

Loss Breakdown by Investment Type as of January 31, 2025

of July 31, 2025, and April 30, 2025, respectively.

Loss Breakdown by Investment Type at July 31, 2025

Schedule of Unrealized Loss Breakdown by Investment Type

than 12 months

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

$ ( 123,000 )

Equity securities

1 unchanged sentence

$ ( 192,000 )

Loss Breakdown by Investment Type as of April 30, 2024

than 12 months

$ ( 389,000 )

Loss Breakdown by Investment Type at April 30, 2025

Less than 12 months, Fair Value

Less than 12 months, Unrealized Loss

12 months or greater, Fair Value

12 months or greater, Unrealized Loss

Total, Fair Value

Total, Unrealized Loss

Less than 12 months

12 months or greater

Unrealized Loss

Municipal bonds

$ ( 114,000 )

$ ( 135,000 )

Equity securities

1 unchanged sentence

$ ( 296,000 )

$ ( 449,000 )

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

these investments to be other-than-temporarily impaired as of July 31, 2025, and April 31, 2025.

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

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

impaired at July 31, 2025, and April 30, 2025.

at July 31, 2025, and April 30, 2025, consisted of the following:

Schedule of Inventories

3 unchanged sentences

Inventory, gross

allowance for obsolete

allowance for obsolete inventory

Inventories, net

Business Segments

following is financial information relating to industry segments:

Schedule of Financial Information Relating to Industry Segments

Security alarm

Cable & wiring tools

Total net revenue

Income from operations:

Security alarm products

Cable & wiring tools

Total income from operations

Depreciation and amortization:

Security alarm products

Cable & wiring tools

Other products

Total depreciation and

Capital expenditures:

Security alarm products

Cable & wiring tools

Other products

Total capital expenditures

Identifiable assets:

Security alarm

Cable & wiring tools

Other products

Earnings per Share

1 unchanged sentence

Schedule of Basic and Diluted Earnings Per Share

the three months ended January 31, 2025

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the three months ended January 31, 2024

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2025

For the three months ended July 31, 2025

(Denominator)

Effect of dilutive

Convertible Preferred Stock

the nine months ended January 31, 2024

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2024

(Denominator)

Effect of dilutive

Convertible Preferred Stock

Effect of dilutive Convertible Preferred Stock

Retirement Benefit Plan

6 unchanged sentences

It is funded by voluntary pre-tax and Roth (taxable)

contributions from eligible employees who may contribute a percentage of their eligible compensation, limited and subject to statutory

Employees are eligible to participate in the Plan when they have attained the age of 21 and completed one thousand hours of service

in any plan year with the Company.

Upon leaving the Company, each participant is 100 % vested with respect to the participants’

contributions while the Company’s matching contributions are vested over a six-year period in accordance with the Plan document.

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

Matching contributions by the

Company of approximately $ 14,000 and $ 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.

contributions from eligible employees who may contribute a percentage of their eligible compensation, subject to limitations.

are eligible to participate in the Plan when they have attained the age of 21 and completed one thousand hours of service in any plan

year with the Company.

Each participant is immediately 100 % vested with respect to the participants’ contributions while the Company’s

matching contributions are vested over six years in accordance with the Plan document.

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, 2025, and 2024, respectively.

Fair Value Measurements

22 unchanged sentences

and Marketable Securities

of January 31, 2025 and April 30, 2024, our investments consisted of money markets, publicly traded equity securities, real estate investment

of July 31, 2025, and April 30, 2025, our investments consisted of money markets, publicly traded equity securities, real estate investment

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

Our marketable securities are valued using third-party broker

The value of the investments is derived from quoted market information.

The inputs to the valuation are generally classified

as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal

bonds and REITs, the inputs are recorded as Level 2.

The marketable securities are valued using third-party broker

The value of the majority of securities is derived from quoted market information.

The inputs to the valuation are generally

classified as Level 1, given the active market for these securities;

however, if an active market does not exist, which is the case for

municipal bonds and REITs, the inputs are recorded as Level 2.

Value Hierarchy

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

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

within the fair value hierarchy.

2 unchanged sentences

Schedule of Assets Measured at Fair Value on Recurring Basis

Measured at Fair Value on a Recurring Basis as of

January 31, 2025

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2025

Municipal Bonds

Equity Securities

Total fair value of

assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of

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, 2025

1 unchanged sentence

Equity Securities

Total fair value of

assets measured on a recurring basis

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Subsequent Events

On July 28, 2025, the Board of Directors declared

a cash dividend of $ 1.00 per share on the Company’s common stock, payable by October 31, 2025, to shareholders of record as of September

The total dividend is estimated to be approximately $ 4.9 million, based on the number of outstanding shares.

RISK INDUSTRIES, INC.

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, 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.

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, 2025.

Company’s performance improved during the quarter ended July 31, 2025, as compared to the quarter ended July 31, 2024.

Sales, income

from operations, and overall net income have increased when comparing these figures to the same quarter last year.

The Company has a

back-order log, but management has seen improvement in this area and continues to work towards diminishing that number.

During this current

quarter, even with the tariffs that the government has put into place, the economy is strong, which has helped shape our profitable numbers.

Opportunities include ramping up production to meet customers’ needs, potentially through increased automation and exploring potential

acquisitions.

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 deliver products to customers in a timely manner and addressing the continuing impact of tariffs, as well

as purchasing raw materials at prices that will maintain the Company’s profitability.

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 $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.

sales for the quarter ended July 31, 2025, showed a 2.04% increase over the same period in the prior year.

The small increase in

sales is a result of a resilient 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, our ability to customize products, and continuing to manufacture

quality products.

cost of goods sold percentage decreased from 49.05% of sales during the quarter last year to 48.75% for the current quarter, which

is right at Management’s goal of keeping 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.

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

expenses increased by $44,000 when comparing the current year quarter to the same quarter for the prior year.

When comparing percentages

in relation to net sales, the operating expenses increased slightly to 20.6% for the quarter ended July 31, 2025, as compared to

20.26% for the corresponding quarter last year.

The dollar 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, 2025, was $1,808,000, which is an increase of 1.92% over the corresponding quarter

last year, which had income from operations of $1,774,000.

income and expenses showed a $2,915,000 gain for the quarter ended July 31, 2025, as compared to a $1,875,000 gain for the quarter

ended July 31, 2024.

For the three months ended July 31, 2025, $2,381,000 of unrealized gains from equity securities were recorded,

compared to $1,346,000 of unrealized losses from equity securities recorded for the three months ended July 31, 2024.

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 a slight decrease of $13,000 from $944,000 in the quarter ended July 31, 2024,

to $931,000 for the quarter ended July 31, 2025.

This decrease is primarily due to the State of Nebraska reducing the corporate income

tax rate for 2025.

Income before provisions for income tax is up $1,074,000 when comparing the current quarter ending July 31, 2025,

to the same quarter the prior year.

income for the quarter ended July 31, 2025, was $3,792,000, a 40.18% increase from the corresponding quarter last year, which showed

net income of $2,705,000.

per share for the quarters ended July 31, 2025, and 2024, were $0.78 and $0.55 per common share, respectively.

and capital resources

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 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 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

been recognized.

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

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 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.

cash increased $1,789,000 during the quarter ended July 31, 2025, compared to an increase of $2,255,000 during the corresponding

quarter last year.

Details by category are listed below.

receivable, net increased $466,000 for the quarter ending July 31, 2025, compared to a $255,000 increase for the same quarter last

The increase in cash flow from accounts receivable is directly attributable to the increase in sales, offset slightly by a

temporary delay in payment from one of our larger customers.

Management works with customers to collect accounts and to keep past

due accounts to a minimum.

An analysis of accounts receivable shows that 19.92% of the balance was over 90 days at July 31, 2025.

net decreased $173,000 during the current quarter as compared to a $313,000 decrease last year.

The current period’s decrease

is primarily due to the Company’s increased sales, thereby using inventory faster than it is replenished.

the quarter ended July 31, 2025, there was a $48,000 increase in prepaid expenses and other current assets, compared to an increase

of $104,000 for the quarter ended July 31, 2024.

The smaller current increase is due to a decrease in prepayments for raw materials

during the quarter.

payable increased $163,000 for the quarter ended July 31, 2025, compared to a decrease of $30,000 for the same quarter the year before.

The variance is primarily due to timing differences in the receipt of products.

Management strives to pay all payables within terms,

unless there is a problem with the merchandise.

expenses and other current liabilities increased $26,000 for the current quarter, as compared to a $125,000 increase for the quarter

ended July 31, 2024.

The difference in the amounts is primarily due to the timing of payroll cycles.

tax payable increased $447,000 for the quarter ended July 31, 2025, compared to a $697,000 increase in income tax payable for the

quarter ended July 31, 2024.

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

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 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.

Company purchased $133,000 of property and equipment during the current fiscal quarter.

In comparison, $105,000 was spent on purchases

of property and equipment during the corresponding quarter last year.

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

Cash spent on purchases of

marketable securities for the quarter ended July 31, 2025, was $210,000 compared to $212,000 spent during the quarter ended July

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

By doing this, the Company gives an

independent third-party firm, which is an expert 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 did not receive any cash distributions from the investment in the limited land partnership during the quarter ending July

31, 2025, compared to a cash distribution of $269,000 received during the quarter ending July 31, 2024.

This was the second distribution

received from the sale of the limited land partnership.

The rest of the proceeds are contingent on finishing wetland restoration

Company continues to repurchase common stock when the opportunity arises.

For the quarter ended July 31, 2025, the Company repurchased

treasury stock in the amount of $9,000.

In comparison, there was no treasury stock repurchased during the quarter ended July 31,

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

These sensors are for high security applications such

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

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.

Company and its engineering department perpetually work to develop enhancements to current

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:

Explosion-proof

contacts that will be Underwriter Laboratories (UL) listed for hazardous locations are in development.

There has been demand from

our customers for this type of high-security magnetic reed switch.

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.

has begun on a couple of newly developed products.

First, there are magnetic contacts, which are listed under UL 634 Level 2.

sensors will require additional UL testing and are used in high security applications such as government buildings, military use,

nuclear facilities, and financial institutions.

Second, we have updated our small profile glass break detector and, third, we have

expanded the GR3045 panic switch to include single-pull, double-throw (SPDT) versions, latching and non-latching with LED indicator

technology is a main area of focus for product development.

1 unchanged sentence

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

We are also working on wireless versions of monitoring

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

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

5 unchanged sentences

are no known seasonal trends with any of GRI’s products, since we sell to distributors and OEM manufacturers.

Our products are tied

to the housing industry and will fluctuate with building trends.

Our products are

tied to the housing industry and will fluctuate with building trends.

RISK INDUSTRIES, INC.

FINANCIAL INFORMATION

Quantitative and Qualitative Disclosures about Market Risk

and Qualitative Disclosures About Market Risk

disclosure does not apply.

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

What changed 10-Q

Item 1. Financial Statements