What changed in this filing

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Item 1. Financial Statements

2025-12-15 compared with 2025-09-12 · 386 added, 301 removed, 280 unchanged (71% of the section changed)

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

Financial Statements

unaudited financial statements for the three-and six-month periods ended October 31, 2025, are attached hereto.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2025

April 30, 2025

Current Assets:

Cash and cash equivalents

Investments and securities, at fair value

Cash and cash

Investments and securities,

at fair value

Accounts receivable:

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

Federal solar tax credit receivable

Trade, net of allowance

for credit losses of $ 27,869 and $ 12,414

Federal solar tax credit

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 condensed financial statements.

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

BALANCE SHEETS

July 31, 2025

April 30, 2025

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Accounts payable, trade

Accounts payable,

Dividends payable

1 unchanged sentence

Accrued expenses

Income tax payable

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, 4,239 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

1 unchanged sentence

Retained earnings

treasury stock, 3,611,051 and 3,610,451 shares, at cost

treasury stock,

3,611,751 and 3,610,451 shares, at cost

( 5,037,000 )

( 5,016,000 )

Total Stockholders’ Equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

accompanying notes to the condensed financial statements.

Total Stockholders’

TOTAL LIABILITIES AND

STOCKHOLDERS’ EQUITY

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

INCOME STATEMENTS

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

July 31, 2025

July 31, 2024

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

Cost of Goods Sold

1 unchanged sentence

( 2,899,000 )

( 6,239,000 )

( 5,735,000 )

Operating Expenses

2 unchanged sentences

Income From Operations

Other Income (Expense)

Interest Expense

Other (Expense)

Dividend and Interest Income

Unrealized Gain on Equity Securities

(Loss) on Sale of Assets

Gain on Sale of Investments

Total Other Income (Expense)

Unrealized Gain on Equity

Gain on Investments

Gain on Solar Tax Credit

on Sale of Assets

Total Other Income (Loss)

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Deferred tax expense

Total Income Tax Expense

Basic Earnings Per Share of Common Stock

Diluted Earnings Per Share of Common Stock

Tax (Benefit) Expense

Income Tax Expense (Benefit)

Income 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.

accompanying notes to the unaudited condensed financial statements

RISK INDUSTRIES, INC.

STATEMENTS OF COMPREHENSIVE INCOME

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

THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

Other Comprehensive Income (Loss), Net of

Unrealized gain (loss) on

debt securities:

Unrealized holding gains (losses) arising

during period

Income tax (expense) benefit

related to other comprehensive income

Comprehensive Income (Loss)

Comprehensive Income

accompanying notes to the condensed financial statements.

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

CONDENSED STATEMENTS

OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

Preferred Stock

Balances, April 30, 2024

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2025 AND 2024

Stock Class A

Balances, July 31, 2024

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

Stock Class A

Balances, July 31, 2025

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized gain, net of tax effect

Balances, October 31,

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2025 AND 2024

Treasury Stock

Comprehensive

Balances, July 31, 2024

Preferred Stock

$ ( 4,945,000 )

Purchases of common stock

Dividend declared at $1.00 per common share outstanding

( 4,896,000 )

Unrealized (loss), net of tax effect

Balances, October 31, 2024

$ ( 4,945,000 )

Treasury Stock

Comprehensive

Balances, July 31, 2025

$ ( 5,026,000 )

Purchases of common stock

Dividend declared at $1.00 per common share outstanding

( 4,891,000 )

Unrealized gain, net of tax effect

Balances, October 31, 2025

$ ( 5,037,000 )

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

Stock Class A

Balances, April 30, 2024

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized gain, net of tax effect

Balances, July 31, 2025

accompanying notes to the condensed financial statements.

Balances, October 31,

Stock Class A

Balances, April 30, 2025

Purchases of common stock

Dividend declared at $ 1.00 per common share

Unrealized gain, net of tax effect

Balances, October 31,

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITIY

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 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 outstanding

( 4,896,000 )

Unrealized gain, net of tax effect

Balances, July 31, 2024

Balances, October 31, 2023

$ ( 4,945,000 )

Treasury Stock

(Common Class A)

Comprehensive

3 unchanged sentences

Purchases of common stock

Dividend declared at $1.00 per common share outstanding

( 4,890,000 )

Unrealized gain, net of tax effect

Balances, July 31, 2025

Balances, October 31, 2025

$ ( 5,037,000 )

accompanying notes to the condensed financial statements.

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED JULY 31, 2025, AND 2024

July 31, 2025

July 31, 2024

THE SIX MONTHS ENDED OCTOBER 31, 2025 AND 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) on sale of investments

Unrealized (gain) on equity securities

Unrealized (gain) on equity

( 3,292,000 )

( 1,413,000 )

Provision for credit losses on accounts receivable

Provision for credit losses

on accounts receivable

Reserve for obsolete inventory

4 unchanged sentences

Accounts receivable

Prepaid expenses and other current assets

Other receivables

Prepaid expenses

Other receivables and projects

Federal solar tax credit

( 2,485,000 )

Increase (decrease) in:

Accounts payable

Accrued expenses and other current liabilities

Income tax payable

Net cash from operating activities

Federal solar tax credit

payment payable

Deferred gain on solar

Accrued expenses

Net cash from operating

CASH FLOWS FROM INVESTING ACTIVITIES:

(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

(Purchase) of property

and equipment

Proceeds from sale of marketable

(Purchase) of marketable

from investment in limited land partnership

Net cash from investing

CASH FLOWS FROM FINANCING ACTIVITIES:

(Purchase) of treasury stock

Dividends paid

Net cash from financing activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents, beginning of period

Cash and Cash Equivalents, end of period

of treasury stock

( 4,467,000 )

( 4,448,000 )

Net cash from financing

( 4,488,000 )

( 4,448,000 )

NET CHANGE IN CASH AND

CASH EQUIVALENTS

( 1,628,000 )

( 1,658,000 )

Cash and Cash Equivalents,

beginning of period

Cash and Cash Equivalents,

end of period

Supplemental Disclosure for Cash Flow Information:

Cash payments for:

Income taxes paid

Interest paid

Cash receipts for:

accompanying notes to the condensed financial statements

accompanying notes to the unaudited condensed financial statements.

RISK INDUSTRIES, INC.

5 unchanged sentences

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.

April 30, 2025 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

1 unchanged sentence

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 three months ended

July 31, 2025.

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

six months ended October 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 July 31, 2025, this is shown as a receivable of $ 2,154,000 .

As of October 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.

1 unchanged sentence

Reporting (Topic 280):

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

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

Board (FASB).

6 unchanged sentences

Executive and Financial Officer.

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

information, 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

for the segment and decides how to allocate resources more effectively based on the net income reported in the Statements of Income and

Comprehensive Income.

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.

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.

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.

July 2025, the FASB issued ASU No.

12 unchanged sentences

Financial Statements.

2 Investments

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

money markets.

The investments in debt securities, which include municipal bonds and bond funds, mature between August 2025 and December

The investments in debt securities, which include municipal bonds and bond funds, mature between December 2025 and December

The Company uses the average cost method to determine the cost of equity securities sold, with any unrealized gains or losses reported

3 unchanged sentences

Dividend and interest income are reported as earned.

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

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

Schedule of Investments

Investments at

July 31, 2025

Municipal bonds

$ ( 123,000 )

Investments on

October 31, 2025

Equity securities

1 unchanged sentence

$ ( 239,000 )

Investments at

Investments on

April 30, 2025

Municipal bonds

$ ( 135,000 )

6 unchanged sentences

the Company records a realized gain or (loss) on the Company’s statements of income.

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.

Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as declines in fair value

that result in the cost basis exceeding the fair value for approximately one year.

The Company also evaluates the nature of the investment,

the cause of the impairment, and the number of investments 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 either of the quarters or the six-month periods ending October 31, 2025, and 2024.

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

1 unchanged sentence

when a sale happens.

For the quarter ended July 31, 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.

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

gains of $ 163,000 and gross realized losses of $ 63,000 .

For the same period, sales of debt securities yielded gross realized gains of

$ 24,000 , and gross realized losses of $ 3,000 were recorded.

For the six months ended October 31, 2025, the Company had sales of equity

securities which yielded gross realized gains of $ 352,000 and gross realized losses of $ 98,000 .

For the same six-month period in 2024,

sales of debt securities yielded gross realized gains of $ 24,000 , and gross realized losses of $ 12,000 were recorded.

During the quarter

ending October 31, 2024, the Company recorded gross realized gains and losses on equity securities of $ 378,000 and $ 35,000 , respectively,

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

six months ending October 31, 2024, the Company recorded gross realized gains and losses on equity securities of $ 646,000 and $ 83,000 ,

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, as

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

Loss Breakdown by Investment Type at July 31, 2025

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

October 31, 2025, and April 30, 2025, respectively.

Loss Breakdown by Investment Type on October 31, 2025

Schedule of Unrealized Loss Breakdown by Investment Type

5 unchanged sentences

Total, Unrealized Loss

Less than 12 months

than 12 months

months or greater

Unrealized Loss

Municipal bonds

$ ( 123,000 )

Equity securities

1 unchanged sentence

$ ( 238,000 )

$ ( 389,000 )

Loss Breakdown by Investment Type at April 30, 2025

Loss Breakdown by Investment Type on April 30, 2025

Less than 12 months, Fair Value

4 unchanged sentences

Total, Unrealized Loss

Less than 12 months

than 12 months

months or greater

Unrealized Loss

Municipal bonds

$ ( 114,000 )

4 unchanged sentences

$ ( 449,000 )

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.

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.

in interest rates caused the unrealized losses on the Company’s investments in municipal bonds.

The contractual terms of these

investments do not permit the issuer to settle the securities at a price below the investment’s amortized cost.

Because the Company

has the ability to hold these investments until a recovery of fair value, which may occur at maturity, the Company does not consider

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

Equity Securities and REITs

3 unchanged sentences

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.

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

plan to hold these investments for an extended period, the Company does not consider them to be other-than-temporarily impaired as of

October 31, 2025, and April 30, 2025.

3 Inventories

on October 31, 2025, and April 30, 2025, consisted of the following:

Schedule of Inventories

8 unchanged sentences

Schedule of Basic and Diluted Earnings Per Share

For the three months ended July 31, 2025

For the three months ended October 31, 2025

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended July 31, 2024

For the three months ended October 31, 2024

(Denominator)

For the six months ended October 31, 2025

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2024

(Denominator)

Effect of dilutive Convertible Preferred Stock

5 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, 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.

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 participant’s

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 $ 16,000 and $ 13,000 were paid during each quarter ending October 31, 2025, and 2024, respectively.

the Company paid matching contributions of approximately $ 34,000 and $ 29,000 during the six-month periods ending October 31, 2025, and

2024, respectively.

6 Fair Value Measurements

22 unchanged sentences

and Marketable Securities

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

of October 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.

2 unchanged sentences

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

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.

6 unchanged sentences

Assets Measured at Fair Value on a Recurring Basis as of

July 31, 2025

October 31, 2025

Municipal Bonds

9 unchanged sentences

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

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

RISK INDUSTRIES, INC.

FINANCIAL INFORMATION

Discussion and Analysis of Financial Condition and Results of Operations

Management Discussion and Analysis of Financial Condition and

Results of Operations

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

10 unchanged sentences

no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from

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

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

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

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

Company’s performance has continued to improve over the first half of the current fiscal year, with the second quarter showing

a 12.83% increase in sales over the first quarter of the current fiscal year.

This is mainly due to not having to increase pricing due

to tariffs, and some of our larger customers completing their ERP computer transition and getting inventory stocking levels to where

they are needed.

For overall company performance, net income is up when comparing the current six-month period to the prior six-month

Management continues to keep manufacturing and operating expenses in check.

In the current year, unrealized gains on investments

have increased compared to the same period last year, while realized gains have decreased by a smaller percentage.

Opportunities include

keeping up with business growth, finding ways to get our products out to our customers more quickly, including exploring more automation,

and continuing to look 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 promptly and dealing

with the ongoing effects of inflation.

Management continues to work to keep operations running as efficiently as possible, with the hope

of making the facilities leaner and more profitable than ever before.

of Operations

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.

Net sales were $6,333,000 for the quarter ended October 31,

2025, which is a 12.83% increase from the corresponding quarter last year.

Year-to-date net sales were $12,231,000 as of October 31,

2025, a 7.35% increase from the same period last year.

The increases in sales are the result of the business catching up on back orders

and receiving more orders from customers.

Management believes the ongoing commitment to outstanding customer service and product customization

are just a couple of the many reasons sales continue to grow.

Cost of goods sold was 53.12% of net sales for the quarter

ended October 31, 2025, and was 51.65% for the same quarter last year.

Year-to-date cost of goods sold percentages were 51.01% for the

current six months and 50.33% for the corresponding six months last year.

The current cost of goods sold percentage goals of keeping

labor and other manufacturing expenses below 50% are just slightly over for the quarter and year-to-date.

The increased cost of goods

sold percentages continue to result from higher wages and material costs from tariffs.

As always, management continues to work on finding

ways to be more efficient.

Operating expenses were down $48,000 for the quarter and were

down $5,000 for the six-months ended October 31, 2025, as compared to the corresponding periods last 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.

relative to net sales, the operating expenses for the quarter ended October 31, 2025, were 18.68% of net sales, compared with 21.93%

for the same quarter in the prior year.

For year-to-date numbers, operating expenses were 19.61% and 21.09% of net sales for the six

months ended October 31, 2025, and 2024, respectively.

The Company has kept operating expenses below 25% of net sales for many years

Income from operations for the quarter ended October 31, 2025,

was $1,786,000, which is a 20.43% increase from the corresponding quarter last year, which had income from operations of $1,483,000.

Income from operations for the six months ended October 31, 2025, was $3,594,000, which is a 10.38% increase from the corresponding six

months last year, which had income from operations of $3,256,000.

Other income and expenses are up when comparing the current

quarter to the same quarter of the prior year, with an increase of $139,000 in the current quarter.

By comparison, other income and expenses

are up by $1,179,000 from the previous 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 is the unrealized gain and loss on equity securities.

The stock market influences these figures,

and the economy has been performing well.

Overall, net income for

the quarter ended October 31, 2025, was up $128,000, or 5.78%, over the same quarter last year.

Net income for the six months ended

October 31, 2025, was up $1,215,000, an increase of 24.70% over the same period in the prior year.

Earnings per common share for the quarter ended October 31,

2025, were $0.48 per share and $1.25 per share for the year-to-date numbers.

EPS for the quarter and six months ended October 31, 2024,

were $0.45 per share and $1.00 per share, respectively.

and capital resources

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.

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

Net cash decreased $1,628,000 during the six months ended October

31, 2025, compared to a decrease of $1,658,000 during the corresponding period last year.

Accounts receivable increased $107,000 for the six months ended

October 31, 2025, compared with a $19,000 increase for the same period last year.

The larger increase in the current year is due to increased

sales and delays in collecting accounts receivable from a couple of larger customers during their ERP computer transitions.

of accounts receivable shows that 12.58% of receivables were over 90 days on October 31, 2025, compared to 6.69% for the same period

Inventories increased $314,000 during the current six-month

period compared to a $435,000 decrease last year.

The increase in the current year is primarily due to replenishing raw materials levels

and increased costs of those raw materials due to tariffs.

Prepaid expenses and other current assets decreased $19,000

for the current six months, primarily due to reduced prepayments on inventory during the current six-month period.

The prior year’s

six months showed a $21,000 increase in prepaid expenses.

Accounts payable decreased $3,000 for the current six-month

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

The company strives to pay all invoices within terms, and the

variance is primarily due to the timing of product receipt and invoice payment.

Accrued expenses increased $27,000 for the current six-month

period compared to a $29,000 decrease for the six months ended October 31, 2024.

The difference in the amounts is primarily due to timing

Income tax payable increased $260,000 for the current six-month

period, compared to an increase of $65,000 in income tax receivable for the six months ended October 31, 2024.

The increase in current-year

income tax payable is due to higher income and delays in the utilization of the federal solar tax program in the current fiscal year.

The Company purchased $133,000 of property and equipment during

the current six-month period.

In comparison, $308,000 was spent on property and equipment purchases during the corresponding six months

The Company continues to purchase marketable securities, which

include municipal bonds and quality stocks.

During the six months ended October 31, 2025, there was significant buy/sell activity in

the investment accounts.

Net cash used to purchase marketable securities for the six months ended October 31, 2025, was $373,000 compared

to $361,000 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, 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,

By doing this, the Company gives an independent third-party firm, who are experts in this field, permission to buy and sell stocks at

The Company pays a quarterly service fee based on the value of the investments.

The Company received a cash distribution of $25,000 from the

investment in the limited land partnership during the six months ending October 31, 2025.

This was the final distribution from the sale

of the limited land partnership, and this asset has been cleared from the Company’s books.

The Company continues to purchase back its common stock when

the opportunity arises.

For the six months ended October 31, 2025, the Company purchased $21,000 of treasury stock, while no treasury

stock was repurchased in the corresponding six-month period last year.

The company declared a dividend of $1.00 per share of common

stock on September 30, 2025, which was paid out during the second quarter.

This is the same amount that was declared and paid during

the second fiscal quarter last year.

Product Development

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

product lines, develop new products 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.

We are considering adding wireless technology to some of our current

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

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.

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.

Company and its engineering department continually work to enhance current product lines, develop new products that complement existing

products, and identify products 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

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 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 central area of focus for product

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 that include glass-break detection, tilt sensing,

and environmental monitoring.

addition to researching and developing new products, management is always open to acquiring a business or product line that would complement

our existing operations.

Given the Company’s strong cash position, management believes this could be achieved without outside financing.

The intent is to utilize the equipment, marketing techniques, and established customers to deliver new products and increase sales and

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

Our products are tied

to the housing industry and will fluctuate with building trends.

RISK INDUSTRIES, INC.

FINANCIAL INFORMATION

and Qualitative Disclosures About Market Risk

Quantitative 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