GEORGE RISK INDUSTRIES, INC. 10-Q

ITEM 1: Financial Statements The unaudited financial statements for the three months ended July 31, 2025 are attached hereto. 2 GEORGE RISK INDUSTRIES, INC. CONDENSED BALANCE SHEETS July 31, 2025 April 30, 2025 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 8,260,000 $ 6,471,000 Investments and securities, at fair value 38,470,000 35,736,000 Accounts receivable: Trade, net of allowance for credit losses of $ 57,193 and $ 12,414 5,114,000 4,693,000 Other 24,000 59,000 Federal solar tax credit receivable 2,154,000 2,154,000 Inventories, net 10,585,000 10,740,000 Prepaid expenses 563,000 514,000 Total Current Assets 65,170,000 60,367,000 Property and Equipment, net, at cost 2,130,000 2,031,000 Other Assets Investment in Limited Land Partnership, at cost 25,000 25,000 Projects in process 10,000 10,000 Total Other Assets 35,000 35,000 Intangible assets, net 877,000 907,000 TOTAL ASSETS $ 68,212,000 $ 63,340,000 See accompanying notes to the condensed financial statements. 3 GEORGE RISK INDUSTRIES, INC. CONDENSED BALANCE SHEETS (continued) July 31, 2025 April 30, 2025 (unaudited) LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable, trade $ 465,000 $ 301,000 Dividends payable 3,297,000 3,302,000 Deferred income 8,000 17,000 Accrued expenses 558,000 523,000 Income tax payable 472,000 25,000 Total Current Liabilities 4,800,000 4,168,000 Long-Term Liabilities Deferred income taxes 2,766,000 2,310,000 Total Long-Term Liabilities 2,766,000 2,310,000 Total Liabilities 7,566,000 6,478,000 Commitments and contingencies — — Stockholders’ Equity Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $ 20 stated value, 25,000 shares authorized, 4,239 issued and outstanding 102,000 102,000 Common stock, Class A, $ .10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding 850,000 850,000 Additional paid-in capital 1,931,000 1,931,000 Accumulated other comprehensive income ( 76,000 ) ( 77,000 ) Retained earnings 62,865,000 59,072,000 Less: treasury stock, 3,611,051 and 3,610,451 shares, at cost ( 5,026,000 ) ( 5,016,000 ) Total Stockholders’ Equity 60,646,000 56,862,000 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 68,212,000 $ 63,340,000 See accompanying notes to the condensed financial statements. 4 GEORGE RISK INDUSTRIES, INC. CONDENSED INCOME STATEMENTS FOR THE THREE MONTHS ENDED JULY 31, 2025, AND 2024 (Unaudited) July 31, 2025 July 31, 2024 Net Sales $ 5,898,000 $ 5,780,000 Less: Cost of Goods Sold ( 2,875,000 ) ( 2,835,000 ) Gross Profit 3,023,000 2,945,000 Operating Expenses: General and Administrative 389,000 337,000 Sales 802,000 807,000 Engineering 24,000 27,000 Total Operating Expenses 1,215,000 1,171,000 Income From Operations 1,808,000 1,774,000 Other Income (Expense) Other 67,000 2,000 Interest Expense — ( 1,000 ) Dividend and Interest Income 352,000 317,000 Unrealized Gain on Equity Securities 2,381,000 1,346,000 (Loss) on Sale of Assets ( 30,000 ) ( 2,000 ) Gain on Sale of Investments 145,000 213,000 Total Other Income (Expense) 2,915,000 1,875,000 Income Before Provisions for Income Taxes 4,723,000 3,649,000 Provisions for Income Taxes Current Expense 479,000 705,000 Deferred tax expense 452,000 239,000 Total Income Tax Expense 931,000 944,000 Net Income $ 3,792,000 $ 2,705,000 Basic Earnings Per Share of Common Stock $ 0.78 $ 0.55 Diluted Earnings Per Share of Common Stock $ 0.77 $ 0.55 Weighted Average Number of Common Shares Outstanding 4,892,032 4,896,730 Weighted Average Number of Shares Outstanding (Diluted) 4,912,532 4,917,230 See accompanying notes to the condensed financial statements. 5 GEORGE RISK INDUSTRIES, INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED JULY 31, 2025, AND 2024 (Unaudited) July 31, 2025 July 31, 2024 Net Income $ 3,792,000 $ 2,705,000 Other Comprehensive Income, Net of Tax Unrealized gain on debt securities: Unrealized holding gains arising during period 5,000 247,000 Income tax (expense) related to other comprehensive income ( 4,000 ) ( 70,000 ) Other Comprehensive Income 1,000 177,000 Comprehensive Income $ 3,793,000 $ 2,882,000 See accompanying notes to the condensed financial statements. 6 GEORGE RISK INDUSTRIES, INC. CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED JULY 31, 2025, AND 2024 (Unaudited) Shares Amount Shares Amount Preferred Stock Common Stock Class A Shares Amount Shares Amount Balances, April 30, 2024 4,100 $ 99,000 8,502,881 $ 850,000 Unrealized gain, net of tax effect — — — — Net Income — — — — Balances, July 31, 2024 4,100 $ 99,000 8,502,881 $ 850,000 Preferred Stock Common Stock Class A Shares Amount Shares Amount Balances, April 30, 2025 4,239 $ 102,000 8,502,881 $ 850,000 Balance 4,239 $ 102,000 8,502,881 $ 850,000 Purchases of common stock — — — — Unrealized gain, net of tax effect — — — — Net Income — — — — Balances, July 31, 2025 4,239 $ 102,000 8,502,881 $ 850,000 Balance 4,239 $ 102,000 8,502,881 $ 850,000 See accompanying notes to the condensed financial statements. 7 GEORGE RISK INDUSTRIES, INC. CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITIY FOR THE THREE MONTHS ENDED JULY 31, 2025, AND 2024 (Unaudited) Capital Shares Amount Income Earnings Total Accumulated Treasury Stock Other Paid-In (Common Class A) Comprehensive Retained Capital Shares Amount Income Earnings Total Balances, April 30, 2024 $ 1,934,000 3,606,151 $ ( 4,945,000 ) $ ( 137,000 ) $ 56,836,000 $ 54,637,000 Unrealized gain, net of tax effect — — — 177,000 — 177,000 Net Income — — — — 2,705,000 2,705,000 Balances, July 31, 2024 $ 1,934,000 3,606,151 $ ( 4,945,000 ) $ 40,000 $ 59,541,000 $ 57,519,000 Accumulated Treasury Stock Other Paid-In (Common Class A) Comprehensive Retained Capital Shares Amount Income Earnings Total Balances, April 30, 2025 $ 1,931,000 3,610,451 $ ( 5,017,000 ) $ ( 77,000 ) $ 59,073,000 $ 56,862,000 Balance $ 1,931,000 3,610,451 $ ( 5,017,000 ) $ ( 77,000 ) $ 59,073,000 $ 56,862,000 Purchases of common stock — 600 ( 9,000 ) — — ( 9,000 ) Unrealized gain, net of tax effect — — — 1,000 — 1,000 Net Income — — — — 3,792,000 3,792,000 Balances, July 31, 2025 $ 1,931,000 3,611,051 $ ( 5,026,000 ) $ ( 76,000 ) $ 62,865,000 $ 60,646,000 Balance $ 1,931,000 3,611,051 $ ( 5,026,000 ) $ ( 76,000 ) $ 62,865,000 $ 60,646,000 See accompanying notes to the condensed financial statements. 8 GEORGE RISK INDUSTRIES, INC. CONDENSED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED JULY 31, 2025, AND 2024 (Unaudited) July 31, 2025 July 31, 2024 Cash Flows from Operating Activities: Net Income $ 3,792,000 $ 2,705,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 34,000 125,000 (Gain) on sale of investments ( 145,000 ) ( 213,000 ) Unrealized (gain) on equity securities ( 2,381,000 ) ( 1,346,000 ) Provision for credit losses on accounts receivable 45,000 ( 13,000 ) Reserve for obsolete inventory ( 18,000 ) 4,000 Deferred income taxes 452,000 239,000 Loss on sale of assets 30,000 2,000 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable ( 466,000 ) ( 255,000 ) Inventories 173,000 313,000 Prepaid expenses and other current assets ( 48,000 ) ( 104,000 ) Other receivables 35,000 46,000 Increase (decrease) in: Accounts payable 163,000 ( 30,000 ) Accrued expenses and other current liabilities 26,000 125,000 Income tax payable 447,000 697,000 Net cash from operating activities 2,139,000 2,295,000 Cash Flows From Investing Activities: (Purchase) of property and equipment ( 133,000 ) ( 105,000 ) Proceeds from sale of marketable securities 7,000 8,000 (Purchase) of marketable securities ( 210,000 ) ( 212,000 ) Distribution from investment in limited land partnership — 269,000 Net cash from investing activities ( 336,000 ) ( 40,000 ) Cash Flows From Financing Activities: (Purchase) of treasury stock ( 9,000 ) — Dividends paid ( 5,000 ) — Net cash from financing activities ( 14,000 ) — Net Change in Cash and Cash Equivalents $ 1,789,000 $ 2,255,000 Cash and Cash Equivalents, beginning of period $ 6,471,000 $ 7,112,000 Cash and Cash Equivalents, end of period $ 8,260,000 $ 9,367,000 Supplemental Disclosure for Cash Flow Information: Cash payments for: Income taxes paid $ 250,000 $ 0 Interest paid $ 0 $ 1,000 Cash receipts for: Income taxes $ 226,000 $ 0 See accompanying notes to the condensed financial statements 9 GEORGE RISK INDUSTRIES, INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS JULY 31, 2025 Note 1: Unaudited Interim Financial Statements The accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. 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, 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. Accounting 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. Significant Accounting Policies — The significant accounting policies used in preparation of these condensed financial statements are disclosed in our Annual Report, and there have been no changes to the Company’s significant accounting policies during the three months ended July 31, 2025. Purchase of Transferrable Tax Credits – In September 2024, pursuant to transferability provisions of the Inflation Reduction Act of 2022, the Company executed an agreement to purchase a tax credit of $ 3,431,000 created by solar energy projects qualifying under Internal Revenue Code Section 48 (the “Solar Tax Credit”) in exchange for consideration of $ 2,917,000 , resulting in a total gain on federal Solar Tax Credit of $ 515,000 . 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 July 31, 2025, this is shown as a receivable of $ 2,154,000 . Segment 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. Operating Segments and Related Disclosures We 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. Financial 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 Income. The Company’s objective in making resource allocation decisions is to optimize the financial results. Recently 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. In 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. 10 Note 2: Investments The Company has investments in publicly traded equity securities, state and municipal debt securities, real estate investment trusts, and money markets. The investments in debt securities, which include municipal bonds and bond funds, mature between August 2025 and December 2050. The Company uses the average cost method to determine the cost of equity securities sold, with any unrealized gains or losses reported in the respective period’s earnings. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned. As of July 31, 2025, and April 30, 2025, investments consisted of the following: Schedule of Investments Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2025 Basis Gains Losses Value Municipal bonds $ 7,803,000 $ 151,000 $ ( 123,000 ) $ 7,831,000 REITs 74,000 3,000 ( 7,000 ) 70,000 Equity securities 17,971,000 11,644,000 ( 259,000 ) 29,356,000 Money markets and CDs 1,213,000 — — 1,213,000 Total $ 27,061,000 $ 11,798,000 $ ( 389,000 ) $ 38,470,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2025 Basis Gains Losses Value Municipal bonds $ 7,681,000 $ 141,000 $ ( 135,000 ) $ 7,687,000 REITs 74,000 1,000 ( 7,000 ) 68,000 Equity securities 17,689,000 9,330,000 ( 307,000 ) 26,712,000 Money markets and CDs 1,269,000 — — 1,269,000 Total $ 26,713,000 $ 9,472,000 $ ( 449,000 ) $ 35,736,000 Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of income. The Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. 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. The 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 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 . For the same period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $ 9,000 were recorded. 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. 11 The 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 July 31, 2025, and April 30, 2025, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 2025 Schedule of Unrealized Loss Breakdown by Investment Type Description 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 Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,666,000 $ ( 35,000 ) $ 976,000 $ ( 88,000 ) $ 2,642,000 $ ( 123,000 ) REITs — — 39,000 ( 6,000 ) 39,000 ( 6,000 ) Equity securities 2,535,000 ( 162,000 ) 372,000 ( 98,000 ) 2,907,000 ( 260,000 ) Total $ 4,201,000 $ ( 197,000 ) $ 1,387,000 $ ( 192,000 ) $ 5,588,000 $ ( 389,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2025 Description 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 Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 550,000 $ ( 21,000 ) $ 2,108,000 $ ( 114,000 ) $ 2,658,000 $ ( 135,000 ) REITs — — 38,000 ( 7,000 ) 38,000 ( 7,000 ) Equity securities 1,562,000 ( 132,000 ) 2,238,000 ( 175,000 ) 3,800,000 ( 307,000 ) Total $ 2,112,000 $ ( 153,000 ) $ 4,384,000 $ ( 296,000 ) $ 6,496,000 $ ( 449,000 ) Municipal Bonds The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because 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 July 31, 2025, and April 31, 2025. Marketable Equity Securities and REITs The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2025, and April 30, 2025. 12 Note 3: Inventories Inventories at July 31, 2025, and April 30, 2025, consisted of the following: Schedule of Inventories July 31, April 30, 2025 2025   Raw materials $ 8,917,000 $ 9,279,000 Work in process 898,000 776,000 Finished goods 1,164,000 1,097,000 Inventory, gross 10,979,000 11,152,000 Less: allowance for obsolete inventory ( 394,000 ) ( 412,000 ) Inventories, net $ 10,585,000 $ 10,740,000 Note 4: Earnings per Share Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: Schedule of Basic and Diluted Earnings Per Share For the three months ended July 31, 2025 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,792,000 Basic EPS $ 3,792,000 4,892,032 $ .78 Effect of dilutive Convertible Preferred Stock — 20,500 ( .01 ) Diluted EPS $ 3,792,000 4,912,532 $ .77 For the three months ended July 31, 2024 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 2,705,000 Basic EPS $ 2,705,000 4,896,730 $ .55 Effect of dilutive Convertible Preferred Stock — 20,500 — Diluted EPS $ 2,705,000 4,917,230 $ .55 13 Note 5: Retirement Benefit Plan On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the Company. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. It is funded by voluntary pre-tax and Roth (taxable) contributions from eligible employees who may contribute a percentage of their eligible compensation, subject to limitations. 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. 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. Note 6: Fair Value Measurements The carrying value of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The fair value of our investments is determined utilizing market-based information. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Investments and Marketable Securities As 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. The marketable securities are valued using third-party broker statements. 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. Fair Value Hierarchy The 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. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 14 Schedule of Assets Measured at Fair Value on Recurring Basis Level 1 Level 2 Level 3 Total Assets Measured at Fair Value on a Recurring Basis as of July 31, 2025 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 7,831,000 $ — $ 7,831,000 REITs — 70,000 — 70,000 Equity Securities 29,356,000 — — 29,356,000 Money Markets and CDs 1,213,000 — — 1,213,000 Total fair value of assets measured on a recurring basis $ 30,569,000 $ 7,901,000 $ — $ 38,470,000 Level 1 Level 2 Level 3 Total Assets Measured at Fair Value on a Recurring Basis as of April 30, 2025 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 7,687,000 $ — $ 7,687,000 REITs — 68,000 — 68,000 Equity Securities 26,712,000 — — 26,712,000 Money Markets and CDs 1,269,000 — — 1,269,000 Total fair value of assets measured on a recurring basis $ 27,981,000 $ 7,755,000 $ — $ 35,736,000 Note 7: 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 30, 2025. The total dividend is estimated to be approximately $ 4.9 million, based on the number of outstanding shares. 15 GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 2: Management Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project,” or “continue,” and the negatives of such terms are intended to identify forward-looking statements. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if current information becomes available in the future. The 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. Executive Summary The 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. Results of Operations ● Net 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. ● The 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. ● Operating 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. The Company maintained the ratio of operating expenses to net sales at less than 30%, which is in line with historical ratios. ● Income 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. 16 ● Other 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. ● The 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. ● Net 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. ● Earnings per share for the quarters ended July 31, 2025, and 2024, were $0.78 and $0.55 per common share, respectively. Liquidity and capital resources Operating ● Net 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. ● Accounts receivable, net increased $466,000 for the quarter ending July 31, 2025, compared to a $255,000 increase for the same quarter last year. 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. ● Inventories, 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. ● For 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. ● Accounts 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. ● Accrued 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. ● Income 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. 17 Investing ● The 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. ● The 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 31, 2024. 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. The 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 of the land. Financing ● The 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, 2024. New Product Development ● The 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. ● Research 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. ● Production has begun on a couple of newly developed products. First, there are magnetic contacts, which are listed under UL 634 Level 2. These 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 lights. ● Wireless technology is a main area of focus for product development. We are considering adding wireless technology to some of our current products. 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. Other Information In addition to researching and developing new products, management is always open to the possibility of acquiring a business or product line that would complement our existing operations. Due to the Company’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing techniques, and established customers to deliver new products and increase sales and profits. There 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. 18 GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 3. Quantitative and Qualitative Disclosures About Market Risk This disclosure does not apply.