What changed in this filing

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Item 1. Financial Statements

2026-03-17 compared with 2025-12-15 · 275 added, 273 removed, 393 unchanged (58% of the section changed)

Financial Statements

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

unaudited financial statements for the three- and nine-month period ended January 31, 2026, are attached hereto.

RISK INDUSTRIES, INC.

3 unchanged sentences

Investments and securities

at fair value

Accounts receivable:

1 unchanged sentence

for credit losses of $ 29,699 and $ 12,414

Income tax overpayment

Federal solar tax credit

22 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

Accumulated other comprehensive income

Accumulated other comprehensive

Retained earnings

treasury stock,

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

treasury stock, 3,613,827 and 3,610,451 shares, at cost

( 5,072,000 )

1 unchanged sentence

Total Stockholders’

TOTAL LIABILITIES AND

TOTAL LIABILITES AND

STOCKHOLDERS’ EQUITY

2 unchanged sentences

INCOME STATEMENTS

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

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2026 AND 2025

Cost of Goods Sold

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Income From Operations

Other (Expense)

Other Income (Expense)

Dividend and Interest Income

Unrealized Gain on equity

Gain on Investments

Gain on Sale of Investments

Gain on Solar Tax Credit

on Sale of Assets

Total Other Income (Loss)

Total Other Income

Income Before Provisions for Income Taxes

1 unchanged sentence

Current Expense

Tax (Benefit) Expense

Income Tax Expense (Benefit)

Total Income Tax Expense

Income Per Share of Common Stock

Weighted Average Number of Common

Shares Outstanding

Weighted Average Number of Common Shares Outstanding

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STATEMENTS OF 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:

THE THREE AND NINE MONTHS ENDED JANUARY 31, 2026 AND 2025

Other Comprehensive Income/(Loss), Net of Tax

Unrealized gain (loss)

on debt securities:

Unrealized holding gains (losses) arising

during period

Income tax (expense) benefit

related to other comprehensive income

tax (expense)/benefit related to other comprehensive income

Comprehensive Income (Loss)

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STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2025 AND 2024

THE THREE MONTHS ENDED JANUARY 31, 2026 AND 2025

Stock Class A

Balances, July 31, 2024

Balances, October 31, 2025

Purchases of Common Stock

Dividend declared at $ 1.00 per common share

Unrealized (loss), net of tax effect

Balances, October 31,

Balances, January 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, 2024

Purchases of common stock

Unrealized (loss), net of tax effect

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE THREE MONTHS ENDED OCTOBER 31, 2025 AND 2024

THE THREE MONTHS ENDED JANUARY 31, 2026 AND 2025

Treasury Stock

Comprehensive

Balances, July 31, 2024

Balances, October 31, 2025

$ ( 5,037,000 )

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

Balances, January 31,

$ ( 5,072,000 )

1 unchanged sentence

Comprehensive

Balances, July 31, 2025

Balances, October 31, 2024

$ ( 4,945,000 )

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

Unrealized (loss), net of tax effect

Balances, January 31,

$ ( 4,977,000 )

2 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025

Stock Class A

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Unrealized gain, net of tax effect

Balances, October 31,

Balances, January 31,

Stock Class A

3 unchanged sentences

Unrealized gain, net of tax effect

Balances, October 31,

Balances, January 31,

accompanying notes to the unaudited condensed financial statements.

1 unchanged sentence

STATEMENTS OF STOCKHOLDERS’ EQUITY

THE SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025

Treasury Stock

2 unchanged sentences

$ ( 5,016,000 )

$ ( 137,000 )

Purchases of common stock

3 unchanged sentences

Unrealized gain, net of tax effect

Balances, October 31, 2023

Balances, January 31,

$ ( 5,072,000 )

9 unchanged sentences

Unrealized gain, net of tax effect

Balances, October 31, 2025

$ ( 5,037,000 )

Balances, January 31,

$ ( 4,977,000 )

2 unchanged sentences

STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDED OCTOBER 31, 2025 AND 2024

THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Depreciation and amortization

(Gain) on sale of investments

(Gain) on sale of

Unrealized (gain) on equity

5 unchanged sentences

Deferred income taxes

Loss on sale of assets

Loss on sales of assets

Changes in assets and liabilities:

2 unchanged sentences

Prepaid expenses

Other receivables and projects

Other receivables

Federal solar tax credit

( 2,375,000 )

Income tax overpayment

Increase (decrease) in:

Accounts payable

Federal solar tax credit

payment payable

Deferred gain on solar

Accrued expenses

Accrued expense

Net cash from operating

6 unchanged sentences

Net cash from investing

( 1,066,000 )

CASH FLOWS FROM FINANCING ACTIVITIES:

15 unchanged sentences

Cash payments for:

Interest paid

Cash receipts for:

1 unchanged sentence

RISK INDUSTRIES, INC.

TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

TO CONDENSED FINANCIAL STATEMENTS

Unaudited Interim Financial Statements

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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.

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

considered necessary for a fair presentation, have been included.

Operating results for any quarter are not necessarily indicative of

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

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

value of assets.

these unaudited condensed financial statements be read in conjunction with the financial statements and notes thereto included in the

Company’s April 30, 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 condensed financial statements requires the use of estimates and assumptions including

the carrying value of assets.

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

Accounting Policies — The significant accounting policies used in preparation of these condensed 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.

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, 2026.

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

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

Purchase of additional solar tax credit took place in January 2026 for tax credit towards

the current fiscal year 2026.

The amount of tax credit purchased was $ 960,000 in exchange for consideration of $ 826,000 , resulting in

a gain of $ 134,000 for the fiscal year ending April 30, 2026.

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

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

As of January 31, 2026, this is shown as a receivable of

$ 2,300,000 .

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

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Financial Statements.

2 Investments

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

money markets.

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

The investments in debt securities, which include municipal bonds and bond funds, mature between June 2026 and December

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

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Dividend and interest income are reported as earned.

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

of January 31, 2026 and April 30, 2025, investments consisted of the following:

Schedule of Investments

Investments on

October 31, 2025

Equity securities

2 unchanged sentences

Investments on

April 30, 2025

$ ( 135,000 )

9 unchanged sentences

The Company also evaluates the nature of the investment,

the cause of the impairment, and the number of investments in an unrealized position.

the cause of impairment, and the number of investments in an unrealized position.

When an “other-than-temporary” decline

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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.

recorded for any of the quarters or the nine-month periods ending January 31, 2026 and 2025.

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

Therefore, either a realized gain or loss is recorded

when a sale happens.

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

when a sale occurs.

For the quarter ended January 31, 2026, the Company had sales of equity securities, which yielded gross realized

gains of $ 602,000 and gross realized losses of $ 90,000 .

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

For the same period, sales of debt securities did not yield any gross realized

gains, but gross realized losses of $ 1,000 were recorded.

For the nine months ended January 31, 2026, the Company had sales of equity

securities which yielded gross realized gains of $ 954,000 and gross realized losses of $ 188,000 .

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,”

For the same nine month period, sales

of debt securities yielded gross realized gains of $ 24,000 and gross realized losses of $ 13,000 .

During the quarter ending January 31,

2025, the Company recorded gross realized gains and losses on equity securities of $ 424,000 and $ 76,000 , respectively, while sales of

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

During the nine-month period

ending January 31, 2025, the Company recorded gross realized gains and losses on equity securities of $ 1,070,000 and $ 159,000 , 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 $ 20,000 were recorded.

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

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

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

Loss Breakdown by Investment Type on October 31, 2025

January 31, 2026 and April 30, 2025, respectively.

Loss Breakdown by Investment Type on January 31, 2026

Schedule of Unrealized Loss Breakdown by Investment Type

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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.

these investments to be other-than-temporarily impaired as of January 31, 2026 and April 30, 2025.

Equity Securities and REITs

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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:

January 31, 2026 and April 30, 2025.

on January 31, 2026 and April 30, 2025, consisted of the following:

Schedule of Inventories

3 unchanged sentences

Inventory, gross

allowance for obsolete inventory

allowance for obsolete

Inventories, net

2 unchanged sentences

Schedule of Basic and Diluted Earnings Per Share

For the three months ended October 31, 2025

the three months ended January 31, 2026

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the three months ended October 31, 2024

Effect of dilutive Convertible Preferred

the three months ended January 31, 2025

(Denominator)

For the six months ended October 31, 2025

Effect of dilutive Convertible Preferred

the nine months ended January 31, 2026

(Denominator)

Effect of dilutive Convertible Preferred Stock

For the six months ended October 31, 2024

Effect of dilutive Convertible Preferred

the nine months ended January 31, 2025

(Denominator)

Effect of dilutive Convertible Preferred Stock

Effect of dilutive Convertible Preferred

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 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.

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

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 $ 18,000 and $ 14,000 were paid during each quarter ending January 31, 2026 and 2025, respectively.

Likewise, the Company

paid matching contributions of approximately $ 50,000 and $ 44,000 during the nine-month periods ending January 31, 2026 and 2025, respectively.

Fair Value Measurements

carrying value of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value

carrying value of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximates their fair value

due to their short-term nature.

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assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

GAAP establishes a fair value hierarchy that prioritizes the inputs used in valuation techniques to measure fair value.

The hierarchy

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and Marketable Securities

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

of January 31, 2026 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.

5 unchanged sentences

Value Hierarchy

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

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

within the fair value hierarchy.

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Schedule of Assets Measured at Fair Value on Recurring Basis

Assets Measured at Fair Value on a Recurring Basis as of

October 31, 2025

Municipal Bonds

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Assets Measured at Fair Value on a Recurring Basis as of

April 30, 2025

Municipal Bonds

Equity Securities

Money Markets and CDs

Total fair value of assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of January 31, 2026

Total fair value of

assets measured on a recurring basis

Measured at Fair Value on a Recurring Basis as of April 30, 2025

Total fair value of

assets measured on a recurring basis

7 Subsequent Events

1 unchanged sentence

FINANCIAL INFORMATION

Management Discussion and Analysis of Financial Condition and

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

Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as

10 unchanged sentences

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

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

financial statements and discussion for the fiscal year ended April 30, 2025.

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.

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, 2025.

Company’s performance in operations has remained consistent across the three quarters of the current fiscal year, with sales in

the third quarter slightly lower than those in the second quarter of the current fiscal year.

This dip is mainly due to our business

being tied to the housing market and the winter months usually see a slowdown.

Opportunities include keeping up with business growth

and finding ways to get our products to our customers in a timelier manner.

One way we are doing this is by exploring more automation

and reconfiguring our production floor to improve workflow efficiency.

We continue to look at businesses that might be a good fit to

purchase and 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 managing the ongoing effects of tariffs and increased material and labor

Management continues to work to keep operations flowing as efficiently as possible with the hopes of getting the facilities running

leaner and more profitable than ever before.

of Operations

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

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,

sales were $5,659,000 for the quarter ended January 31, 2026, which is a 15.21% increase

from the corresponding quarter last year.

Year-to-date net sales were $17,889,000 as of January

31, 2026, which is a 9.71% increase from the same period last year.

The increase in sales

in the current quarter is a result of continued growth and market share we are experiencing

in our industry and catching up on back orders.

Management believes the ongoing commitment

to outstanding customer service and product customization are just a couple of the many reasons

sales continue to grow.

of goods sold was 54.64% of net sales for the quarter ended January 31, 2026, and was 53.22%

for the same quarter last year.

Year-to-date cost of goods sold was 52.15% of net sales for

the current nine months and 51.2% for the corresponding nine months last year.

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.

This is due to increases in

wages and material costs.

Management continues to work with and train employees to work more

Management offset a portion of these added expenses by implementing a 5% price

increase effective January 1, 2026.

expenses increased by $147,000 for the quarter as they increased by $142,000 for the nine

months ended January 31, 2026, compared to the corresponding periods last year.

When comparing

percentages in relation to net sales, the operating expenses for the quarter ended January

31, 2026, were 22.07% of net sales compared to 22.43% for the same quarter the prior year.

For year-to-date numbers, operating expenses were 20.38% and 21.49% of net sales for the

nine months ended January 31, 2026 and 2025, respectively.

The Company has been able to keep

operating expenses below 25% of net sales for many years;

however, the year-to-date increase

in actual dollar amount is due to an increase in commission amounts, related to increased

sales, and additional labor costs related to wage increases.

from operations for the quarter ended January 31, 2026 was $1,318,000, a 10.2% increase from

the corresponding quarter last year, which had income from operations of $1,196,000.

from operations for the nine months ended January 31, 2025, was $4,913,000, a 10.33% increase

from the corresponding nine months last year, when income from operations was $4,453,000.

income and expenses for the quarter ended January 31, 2026, show income of $1,697,000, which

is a $632,000 increase from the corresponding quarter last year, which had income of $1,065,000.

Conversely, there is an increase of $1,811,000 in other income for the year-to-date numbers.

Most of the activity in these accounts consists of investment income, dividends, realized

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 continues

to do so positively.

net income for the quarter ended January 31, 2026, increased $873,000, or 54.32%, from the

same quarter last year.

Net income for the nine-month period ended January 31, 2025, increased

$2,087,000, or 31.97%, from the same period in the prior year.

per common share for the quarter ended January 31, 2026, were $0.51 per share and $1.76 per

share for the year-to-date numbers.

EPS for the quarter and nine months ended January 31,

2025, were $0.33 per share and $1.33 per share, respectively.

and capital resources

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, 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.

cash decreased $2,008,000 during the nine months ended January 31, 2026, compared to a decrease

of $1,532,000 during the corresponding period last year.

receivable increased $224,000 for the nine months ended January 31, 2026, compared with a

$193,000 decrease for the same period last year.

The current year’s increase is due

to increased sales and delays in collecting accounts receivable from a couple of larger customers

during their ERP computer transitions.

An analysis of accounts receivable shows that 19.52%

of receivables were over 90 days as of January 31, 2026.

Significant collections happened

in February 2026, and receivables over 90 days at the end of February 2026 stand at 7.04%.

● Inventories

increased $831,000 during the current nine-month period compared to a decrease of $151,000

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

levels and higher raw materials costs due to tariffs and increased labor costs.

expenses decreased $175,000 for the current nine months, primarily due to reduced prepayments

on inventory during the current nine-month period.

The prior nine-month period showed a $106,000

increase 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 the transferability

provisions of the Inflation Reduction Act of 2022.

tax receivable increased $600,000 for the current nine-month period, compared to an increase

of $460,000 in income tax payable for the nine month period ended January 31, 2025.

year income tax receivable increase is the result of increased income, in which income tax

estimates have been adjusted accordingly, and delays in the utilization of the federal solar

payable increased $3,000 for the current nine-month period ended January 31, 2026, compared

to a $57,000 increase 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 product receipts and invoice

expenses decreased $26,000 for the current nine-month period compared to a $63,000 decrease

for the nine-month period ended January 31, 2025.

The difference in the amounts is primarily

due to timing issues.

Company spent approximately $133,000 on acquisitions of property and equipment for the current

nine-month period, in comparison with the corresponding nine months last year, when the Company

used $359,000 for property and equipment purchases.

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

During the nine-month period ended January 31, 2026, 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, 2026, was $977,000 compared to $806,000 spent

in the prior nine-month period.

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.

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

Company received a cash distribution of $25,000 from the investment in the limited land partnership

during the nine-month period ending January 31, 2026.

This was the final distribution from

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

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

months ended January 31, 2026, the Company purchased $56,000 worth of treasury stock.

is in comparison to $32,000 spent in the same nine-month period the prior year.

company paid out dividends of $4,467,000 during the nine months ending January 31, 2026.

These dividends were paid during the second quarter.

The company declared a dividend of $1.00

per share of common stock on September 30, 2025, and paid it by October 31, 2025.

paid in the prior year were $4,448,000 for the nine months ending January 31, 2025.

of $1.00 per common share was declared and paid during the second fiscal quarter last year.

Product Development

3 unchanged sentences

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.

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.

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 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.

security applications such as government buildings, military installations, 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.

technology is a central 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

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

1 unchanged sentence

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

The intent is to leverage 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.

4 unchanged sentences

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