What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-08-07 compared with 2025-08-12 · 102 added, 123 removed, 126 unchanged (64% of the section changed)

18 unchanged sentences

30, 2025, net other income accounted for 31.55% of the income before income taxes.

Management’s philosophy behind having holdings

in marketable securities is to keep the money working and to gain interest on the cash that does not need to be put back into the business.

Over the years, the investments have kept the earnings per share up when the results from operations have not fared as well.

is always open to the possibility of acquiring a business that would complement our existing operations, such as the October 2017 purchase

of substantially all of the assets from Labor Saving Devices, Inc.

Management’s philosophy for holding marketable

securities is to keep the money working and earn interest on cash that does not need to be put back into the business.

Over the years,

the investments have kept the earnings per share up when the results from operations have not fared as well.

is always open to the possibility of acquiring a business that would complement our existing operations, as evidenced by the October

2017 purchase of substantially all of the assets from Labor Saving Devices, Inc.

and Roy Bowling.

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and Capital Resources

cash decreased by $641,000 during the year ended April 30, 2025, compared to an increase of $2,169,000 during the year ended April 30,

Accounts receivable increased by $768,000 during the current fiscal year compared to a $417,000 increase in the prior fiscal year.

The current fiscal year increase in cash flow from accounts receivable is the result of increased sales, offset by slightly faster collection

of accounts receivable .

The average collection time in days for the year ended April 30, 2025, is 65 days, compared to 66 days for the

year ended April 30, 2024.

As of April 30, 2025, 72.68% of receivables were aged less than 60 days (“Current”) and 7.65%

were aged over 90 days.

In comparison, 68.12% of the receivables were considered Current and 8.53% were over 90 days past due at April

decreased by $773,000 for the year ended April 30, 2025, compared to an increase of $93,000 for the year ended April 30, 2024.

fiscal year decrease is primarily a result of having less raw materials on hand, offset by increased raw material and labor costs and

increased sales.

expenses and other assets increased by $196,000 during the year ended April 30, 2025, compared to a decrease of $418,000 for the prior

The current fiscal year’s increase is due to having increased prepayments for raw materials and renewing multi-year subscriptions

in the current fiscal year.

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

tax credits, pursuant to transferability provisions of the Inflation Reduction Act of 2022.

Please see Note 1 - Purchase of Transferrable

Tax Credits, to our consolidated financial statements, for further information.

the year ended April 30, 2025, accounts payable increased by $10,000 compared to a decrease of $254,000 for the year ended April 30,

cash decreased by $1,315,000 during the year ended April 30, 2026, and by $641,000 during the year ended April 30, 2025.

Accounts receivable

increased by $375,000 during the current fiscal year compared to a $768,000 increase in the prior fiscal year.

The current fiscal year

increase in cash flow from accounts receivable is the result of increased sales, offset by slightly slower collection of accounts receivable.

The average collection time in days for the year ended April 30, 2026, is 72 days, compared to 65 days for the year ended April 30, 2025.

As of April 30, 2026, 75.67% of receivables were aged less than 60 days (“Current”) and 5.49% were aged over 90 days.

comparison, 72.68% of the receivables were considered Current, and 7.65% were over 90 days past due as of April 30, 2025.

increased by $1,051,000 for the year ended April 30, 2026, compared to a decrease of $773,000 for the year ended April 30, 2025.

current fiscal year increase is primarily a result of having more raw materials on hand that have increased in price due to tariff increases

implemented by the US government over the fiscal year, as well as increased labor costs and higher sales.

expenses and other assets increased by $859,000 during the year ended April 30, 2026, compared to an increase of $196,000 for the prior

The current fiscal year’s increase is due to higher prepayments for raw materials and the renewal of multi-year subscriptions.

tax refund receivable increased by $351,000 during the year ended April 30, 2026, with no activity in the account during the prior fiscal

The increase is the result of amending prior-year income tax returns (FY 2023 & 2024) to claim additional research and development

tax credits under the One Big Beautiful Bill Act, which was passed in 2025.

federal solar tax credit receivable represents additional and existing federal solar tax credits we will receive from our purchase of

transferable tax credits, pursuant to transferability provisions of the Inflation Reduction Act of 2022.

Please see Note 1 - Purchase

of Transferable Tax Credits, to our consolidated financial statements for further information.

the year ended April 30, 2026, accounts payable increased by $84,000 compared to an increase of $10,000 for the year ended April 30,

This difference is primarily a result of timing.

Payables are paid within terms and fluctuate based primarily on inventory needs

for production.

Payables are paid within terms and fluctuate primarily based on production inventory

Accrued expenses increased $44,000 for the year ended April 30, 2026, compared to the prior year.

This is primarily due

to a higher year-end payroll accrual as of April 30, 2025, compared to April 30, 2024.

Company’s income tax payable decreased $80,000 for the year ended April 30, 2025, compared to an increase of $508,000 for the year

This is primarily due to a higher

year-end payroll accrual as of April 30, 2026, compared to April 30, 2025.

Company’s income tax payable decreased $21,000 for the year ended April 30, 2026, compared to a decrease of $80,000 for the year

ended April 30, 2025.

The decrease in the current fiscal year income tax payable is due to the purchase of federal solar tax credits.

Company spent $396,000 on purchases of property and equipment during the year ended April 30, 2025, compared to $378,000 during the year

Company spent $383,000 on property and equipment purchases during the year ended April 30, 2026, compared to $396,000 during the year

ended April 30, 2025.

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Cash spent on

purchases of marketable securities for the year ended April 30, 2025, was $980,000 versus $699,000 spent for the year ended April 30,

purchases of marketable securities for the year ended April 30, 2026, was $1,137,000, compared with $980,000 for the year ended April

Net proceeds from the sale of marketable securities were $25,000 and $678,000 at April 30, 2026 and 2025, respectively.

uses “money manager” accounts for most stock transactions.

By doing this, the Company gives an independent third-party firm,

who are experts in this field, permission to buy and sell stocks at will.

The Company pays quarterly service fees based on the value

of the investments.

Company uses “money manager” accounts for most stock transactions.

By doing this, the Company gives an independent third-party

firm, who are experts in this field, permission to buy and sell stocks at will.

The Company pays quarterly service fees based on the

value of the investments.

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

April 30, 2026.

This was the second distribution received from the sale of the limited land partnership.

The remainder of the proceeds

are contingent on finishing wetland restoration of the land.

This was the third and final distribution received from the sale of the limited land partnership.

Please see Note.

1 - Investment in Limited Land Partnership, to our consolidated

financial statements for further information.

- Investment in Limited Land Partnership, to our consolidated financial statements for further information.

used in financing activities consists of declared dividends and the repurchase of the Company’s Class A common Stock.

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

stock on September 30, 2024, for the current fiscal year, while a $0.65 per share of common stock dividend was declared on September

stock on September 30, 2025, for the current fiscal year;

equally, a $1.00 per share of common stock dividend was declared on September

30, 2024 and issued in the prior fiscal year.

The Company continues to purchase back its Class A common stock when the opportunity arises.

For the year ended April 30, 2025, the Company purchased $72,000 of treasury stock and $391,000 was bought back for the year ended April

In an effort to repurchase its Class A Common Stock, the Company has been actively searching for stockholders that have been

“lost” over the years.

For the year ended April 30, 2026, the Company purchased $56,000 of treasury stock and $72,000 of treasury stock was repurchased for

the year ended April 30, 2025.

In an effort to repurchase its Class A Common Stock, the Company has been actively searching for stockholders

that have been “lost” over the years.

of April 30, 2026, working capital showed a year-over -year increase of 13.39%.

The Company measures liquidity using the quick ratio,

which is the ratio of cash, securities and accounts receivables to current obligations.

which is the ratio of cash, securities, and accounts receivable to current obligations.

The Company’s quick ratio decreased to

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of Operations

following table summarizes key income statement components, by product line and corporate, for the three months ended April 30, 2025

and the years ended April 30, 2025 and 2024:

Quarter ended

Security alarm products

Cable & wiring tools

Other products

Total revenue

Cost of goods sold:

Security alarm products

Cable & wiring tools

Other products

Total cost of goods sold

Security alarm products

Cable & wiring tools

Other products

Total gross profit

Operating Expenses:

General and administrative

Total operating expense

Income from Operations

completed the year ending April 30, 2026 with a net profit of 45.82% of net sales.

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

effective February 1, 2025, and a price increase of 2.5% that was effective on January 1, 2024.

effective January 1, 2026.

This price increase remains consistent with the prior year, raising prices 5% that became effective on February

expenses were 20.05% of net sales for the year ended April 30, 2026, compared to 20.73% for the year ended April 30, 2025.

Management’s goal is to keep the operating expenses around 25% or less of net sales, so the goal has been met for the current

Income from operations for the year ended April 30, 2025 decreased to $6,238,000, or 0.81%, from the year ended April

30, 2024, which had income from operations of $6,289,000.

This decrease was primarily due to increased cost of goods, slightly

offset by increased sales.

other income for the year ended April 30, 2025, was $2,875,000, compared to a net other income of $4,034,000 for the year ending April

Dividend and interest income was $1,410,000 for the current fiscal year, which is up 26.34% over the $1,116,000 dividend and

interest income for the prior fiscal year.

Investments in marketable securities are presented at fair value and a non-cash unrealized

gain or loss is recorded within the statements of operations.

As a result, an unrealized loss of $75,000 was recorded for the year ending

April 30, 2025, compared to an unrealized gain of $2,771,000 for the year ending April 30, 2024.

Net gain on the sale of investments

for the current fiscal year was $937,000, which is a 533.11% increase over the net gain on the sale of investments of $148,000 for the

prior fiscal year.

income for the year ended April 30, 2025 was $7,133,000, down 5.62% from the $7,558,000 net income for the year ended April 30, 2024.

This reduction is primarily related to the reduction in other income, offset by increased sales.

Basic earnings per common share (“EPS”)

for the year ended April 30, 2025, was $1.46 per share, and the diluted earnings per common share for the same period was $1.45.

and diluted EPS for the year ended April 30, 2024, was $1.54 and $1.53 per share, respectively.

goal is to keep operating expenses at or below 25% of net sales, and this goal has been met for the current fiscal year.

operations for the year ended April 30, 2026 increased to $6,966,000, or 11.67%, from the year ended April 30, 2025, which had income

from operations of $6,238,000.

This increase was primarily due to increased sales and lower operating expenses.

other income for the year ended April 30, 2026, was $7,535,000, compared to $2,875,000 for the year ended April 30, 2025.

interest income was $1,608,000 for the current fiscal year, up 14.04% from $1,410,000 for the prior fiscal year.

Investments in marketable

securities are presented at fair value and any non-cash unrealized gain or loss is recognized in the statements of operations.

an unrealized gain of $4,517,000 was recorded for the year ending April 30, 2026, compared to an unrealized loss of $75,000 for the year

ending April 30, 2025.

Net gain on the sale of investments for the current fiscal year was $898,000, a 4.16% decrease from the prior

fiscal year’s $937,000.

income for the year ended April 30, 2026, was $11,388,000, up 59.65% from $7,133,000 for the year ended April 30, 2025.

This escalation

is primarily related to the greater amount in other income.

Basic earnings per common share (“EPS”) for the year ended April

30, 2026, was $2.33, and diluted EPS for the same period was $2.32.

Basic and diluted EPS for the year ended April 30, 2025, was $1.46

and $1.45 per share, respectively.

is hopeful that sales will continue to increase for the fiscal year ending April 30, 2027.

Opportunities for Management include keeping

up with business growth and focusing on finding ways to get our products out to our customers in a timelier manner.

One way we are doing

this is by looking into more automation.

Challenges facing Management include keeping costs down as raw materials and labor costs continue

The Company also struggles to get enough workers to fill production needs.

Our Security sales division, which is our largest

sales generator, is directly tied to the housing industry and we normally experience the same fluctuations.

We are always researching

and developing new products that will help our sales increase and we are searching for products that complement our current offerings.

Management is always open to the possibility of acquiring a business or product line that would complement our existing operations.

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

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

up with business growth and continuing to focus on finding ways to get our products out to our customers in a timelier manner.

the ways we are accomplishing this include exploring more automation and reconfiguring our production floor to improve workflow efficiency.

Challenges facing Management include keeping costs down as raw materials and labor costs continue to increase.

The Company also struggles

to get enough workers to fill production needs.

Our Security sales division, which is our largest sales generator, is directly tied to

the housing industry and we normally experience the same fluctuations.

We are continually researching and developing new products to

increase sales, and we are seeking products that complement our current offerings.

Management is always open to the possibility of 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 profits.

product development

GRI engineering department continues to develop enhancements to our existing products as well as to develop new products that will continue

to secure our position in the industry.

GRI engineering department continues to develop enhancements to our existing products and to develop new products that will help secure

our position in the industry.

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

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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

is underway 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.

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and financial institutions.

Secondly, we have updated our small profile glass break detector and, thirdly, an expansion of the GR3045

Secondly, we have updated our small profile glass break detector, and thirdly, we have expanded the GR3045

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

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These judgments can be subjective and complex, and consequently actual results could differ from those

The most critical accounting policies relate to accounts receivable;

marketable securities;

and inventory;

income taxes.

The most critical accounting policies relate to accounts receivable, marketable securities, inventory, and income taxes.

receivable —Accounts receivable are customer obligations due under normal trade terms.

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The Company has a limited

number of customers with individually large amounts due at any given date.

number of customers, each with individually large amounts due on any given date.

Any unanticipated change in any one of these customers’

credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the

creditworthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the

results of operations in the period in which such changes or events occur.

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the cost of securities sold and any unrealized gains or losses on equity securities are 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 stockholder’s

Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholders’

Dividend and interest income are reported as earned.

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estimates and approximations, and actual results could differ from those estimates.

addition, the Company records an inventory obsolescence reserve, which represents the cost of the inventory that has had no movement

in over two years.

There is inherent professional judgment and subjectivity made by management in determining the estimated obsolescence

addition, the Company records an inventory obsolescence reserve, which represents the cost of inventory that has not moved for over two

There is inherent professional judgment and subjectivity made by management in determining the estimated obsolescence percentage.

In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events.

Taxes —US GAAP requires use of the assets and liability method;

whereby current and deferred tax assets and liabilities are

Taxes —US GAAP requires use of the assets and liability method, whereby current and deferred tax assets and liabilities are

determined based on tax rates and laws enacted as of the balance sheet date.

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tax asset/liability balances.

Party Transactions — One of the directors of the board, Joel Wiens, is the principal shareholder of FirsTier Bank.

Bank is the financial institution the Company uses for its day-to-day banking operations.

The year end balances of accounts held at this

bank were $5,340,000 and $6,712,000 for the years ended April 30, 2025 and 2024, respectively.

The Company also received interest income

from FirsTier Bank in the amount of approximately $215,000 for the year ended April 30, 2025, and approximately $170,000 was received

for the year ended April 30, 2024.

Party Transactions — One of the directors of the board, Joel Wiens, was the principal shareholder of FirsTier Bank.

death on March 8, 2026, this ownership transferred to his two sons, Tim and Tom Wiens.

FirsTier Bank is the financial institution the

Company uses for its day-to-day banking operations.

The year-end balances of accounts held at this bank were $4,193,000 and $5,340,000

for the years ended April 30, 2026 and 2025, respectively.

The Company also received interest income from FirsTier Bank in the amount

of approximately $154,000 for the year ended April 30, 2026, and approximately $215,000 was received for the year ended April 30, 2025.

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-K

Item 7. Management’s Discussion and Analysis