GEORGE RISK INDUSTRIES, INC. 10-K

Item 8 Financial Statements and Supplementary Data Index to Financial Statements George Risk Industries, Inc. Page Report of Independent Registered Public Accounting Firm F-2 Balance Sheets April 30, 2026 and 2025 F-4 Income Statements For the Years Ended April 30, 2026 and 2025 F-6 Statements of Comprehensive Income For the Years Ended April 30, 2026 and 2025 F-7 Statements of Stockholders’ Equity For the Years Ended April 30, 2026 and 2025 F-8 Statements of Cash Flows For the Years Ended April 30, 2026 and 2025 F-10 Notes to Financial Statements F-11 F- 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of George Risk Industries, Inc. Opinion on the Financial Statements We have audited the accompanying balance sheets of George Risk Industries, Inc. (the Company) as of April 30, 2026 and 2025, and the related income statements, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended April 30, 2026, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended April 30, 2026, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Critical Audit Matter – Inventory Valuation Critical Audit Matter Description The Company manufactures its inventory, which involves the capture of direct labor and manufacturing overhead costs to inventory instead of as an expense when valuing work-in-process and finished goods inventory. This process involves complex calculations based on employee hours worked on manufacturing inventory, and the amount of overhead that will be captured is based on management’s subjective judgments. These judgments can have a significant impact on the Company’s reported assets and earnings if they should prove to be significantly inaccurate. F- 2 How the Critical Audit Matter was Addressed in the Audit Our principal procedures related to the Company’s valuation of work-in-process and finished goods inventory included the following: ● We evaluated management’s significant accounting policies related to the valuation of manufactured inventory, including the methodology of how manufactured overhead is applied to inventory. ● We tested the direct labor applied to a sample of work-in-process and finished goods inventory items by agreeing employees’ applied costs to their pay rates per their human resources file maintained by the company. ● We tested the application of manufacturing overhead to a sample of work-in-process and finished goods inventory by recalculating the overhead we would expect to be applied based on the company’s standard overhead rate and the number of direct labor hours applied to the inventory. Critical Audit Matter – Valuation of Investments Critical Audit Matter Description The company has investments in publicly traded equity securities, state and municipal debt securities, REITS, and money markets and they are recorded at fair value. Some of these investments are Level 2 investments and do not have an observable value. In addition, as the securities are held at fair value, management must assess securities that are in a significant unrealized loss position for other than temporary impairment. For these securities, management must make difficult and subjective judgments about the ability of the issuer to be able to meet its obligations under terms of the security. These judgments can have a significant impact on the Company’s reported earnings if they should prove to be significantly inaccurate. How the Critical Audit Matter was Addressed in the Audit Our principal procedures related to the Company’s process for debt securities valuations as well as the process for equity securities other than temporary impairment evaluation included the following: ● We evaluated management’s significant accounting policies related to the identification of other than temporary impairment. ● Valuation specialists, with specialized skills and knowledge, were involved in the assessment of the fair values for a sample of Level 2 investments. ● We performed testing over a sample of securities to determine if conclusions reached by management regarding other than temporary impairment were appropriate. /s/ Haynie Haynie & Company Salt Lake City, UT August 7, 2026 PCAOB # 457 We have served as the Company’s auditor since 1992. F- 3 George Risk Industries, Inc. Balance Sheets As of April 30, 2026 and 2025 2026 2025 ASSETS Current Assets: Cash and cash equivalents $ 5,156,000 $ 6,471,000 Investments and securities 42,335,000 35,736,000 Accounts receivable: Trade, net of allowance for credit losses of $ 55,259 and $ 12,414 for 2026 and 2025, respectively 5,025,000 4,693,000 Other 58,000 59,000 Income tax refund receivable 351,000 — Federal solar tax credit receivable 2,300,000 2,154,000 Inventories, net 11,822,000 10,740,000 Prepaid expenses 1,374,000 514,000 Total Current Assets 68,421,000 60,367,000 Property and Equipment, at cost, net 2,154,000 2,031,000 Other Assets Investment in Limited Land Partnership, at cost — 25,000 Projects in process 10,000 10,000 Other 1,000 — Total Other Assets 11,000 35,000 Intangible Assets, net 786,000 907,000 TOTAL ASSETS $ 71,372,000 $ 63,340,000 The accompanying notes are an integral part of these financial statements. F- 4 George Risk Industries, Inc. Balance Sheets (Continued) As of April 30, 2026 and 2025 2026 2025 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable, trade $ 385,000 $ 301,000 Dividends payable 3,726,000 3,302,000 Deferred income 16,000 17,000 Accrued expenses 568,000 523,000 Income tax payable 4,000 25,000 Total Current Liabilities 4,699,000 4,168,000 Long-Term Liabilities Deferred income taxes 3,318,000 2,310,000 Total Long-Term Liabilities 3,318,000 2,310,000 Total Liabilities 8,017,000 6,478,000 Commitments and Contingencies — — Stockholders’ Equity Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $ 20 stated value, 25,000 shares authorized, 4,239 issued and outstanding 102,000 102,000 Common stock, Class A, $ .10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding 850,000 850,000 Additional paid-in capital 1,931,000 1,931,000 Accumulated other comprehensive income (loss) ( 25,000 ) ( 77,000 ) Retained earnings 65,569,000 59,072,000 Less: treasury stock, 3,613,827 and 3,610,451 shares, at cost ( 5,072,000 ) ( 5,016,000 ) Total Stockholders’ Equity 63,355,000 56,862,000 TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY $ 71,372,000 $ 63,340,000 The accompanying notes are an integral part of these financial statements. F- 5 George Risk Industries, Inc. Income Statements For the years ended April 30, 2026 and 2025 Year ended Year ended April 30, 2026 April 30, 2025 Net Sales $ 24,852,000 $ 22,538,000 Less: Cost of Goods Sold ( 12,902,000 ) ( 11,628,000 ) Gross Profit 11,950,000 10,910,000 Operating Expenses: General and Administrative 1,536,000 1,442,000 Selling 3,347,000 3,114,000 Engineering 101,000 116,000 Total Operating Expenses 4,984,000 4,672,000 Income From Operations 6,966,000 6,238,000 Other Income (Expense) Other Income 410,000 96,000 Interest (Expense) ( 2,000 ) ( 6,000 ) Dividend and Interest Income 1,608,000 1,410,000 Unrealized Gain (Loss) on Equity Securities 4,517,000 ( 75,000 ) Gain on Sale of Investments 898,000 937,000 Gain on Solar Tax Credit 134,000 515,000 (Loss) on Sale of Assets ( 30,000 ) ( 2,000 ) Total Other Income (Expense) 7,535,000 2,875,000 Income Before Provisions for Income Taxes 14,501,000 9,113,000 Provisions for Income Taxes Current Expense 2,126,000 2,082,000 Deferred tax expense (benefit) 987,000 ( 102,000 ) Total Income Tax Expense 3,113,000 1,980,000 Net Income $ 11,388,000 $ 7,133,000 Earnings Per Share of Common Stock Basic $ 2.33 $ 1.46 Diluted $ 2.32 $ 1.45 Weighted Average Number of Common Shares Outstanding (Basic) 4,890,363 4,895,349 Weighted Average Number of Common Shares Outstanding (Diluted) 4,911,558 4,916,544 The accompanying notes are an integral part of these financial statements. F- 6 George Risk Industries, Inc. Statements of Comprehensive Income For the years ended April 30, 2026 and 2025 Year ended Year ended April 30, 2026 April 30, 2025 Net Income $ 11,388,000 $ 7,133,000 Other Comprehensive Income, Net of Tax Unrealized gain on debt securities: Unrealized holding gains arising during period 73,000 84,000 Income tax (expense) related to other comprehensive income ( 21,000 ) ( 24,000 ) Other Comprehensive Income 52,000 60,000 Comprehensive Income $ 11,440,000 $ 7,193,000 The accompanying notes are an integral part of these financial statements. F- 7 George Risk Industries, Inc. Statements of Stockholders’ Equity For the Years Ended April 30, 2026 and 2025 Shares Amount Shares Amount Preferred Stock Common Stock Class A Shares Amount Shares Amount Balances, April 30, 2024 4,100 $ 99,000 8,502,881 $ 850,000 Additional shares of preferred stock found during an audit 139 3,000 — — Purchases of common stock — — — — Dividend declared at $ 1.00 per common share outstanding — — — — Unrealized gain (loss), net of tax effect — — — — Net Income — — — — Balances, April 30, 2025 4,239 102,000 8,502,881 850,000 Purchases of common stock — — — — Dividend declared at $ 1.00 per common share outstanding — — — — Unrealized gain (loss), net of tax effect — — — — Net Income — — — — Balance, April 30, 2026 4,239 $ 102,000 8,502,881 $ 850,000 The accompanying notes are an integral part of these financial statements. F- 8 George Risk Industries, Inc. Statements of Stockholders’ Equity For the Years Ended April 30, 2026 and 2025 Capital Shares Amount Income (Loss) Earnings Total Accumulated Paid-In Treasury Stock (Common Class A) Other Comprehensive Retained Capital Shares Amount Income (Loss) Earnings Total Balances, April 30, 2024 $ 1,934,000 3,606,151 $ ( 4,945,000 ) $ ( 137,000 ) $ 56,836,000 $ 54,637,000 Additional shares of preferred stock found during an audit ( 3,000 ) — — — — — Purchases of common stock — 4,300 ( 71,000 ) — — ( 71,000 ) Dividend declared at $1.00 per common share outstanding — — — — ( 4,897,000 ) ( 4,897,000 ) Unrealized gain (loss), net of tax effect — — — 60,000 — 60,000 Net Income — — — — 7,133,000 7,133,000 Balances, April 30, 2025 1,931,000 3,610,451 ( 5,016,000 ) ( 77,000 ) 59,072,000 56,862,000 Balances 1,931,000 3,610,451 ( 5,016,000 ) ( 77,000 ) 59,072,000 56,862,000 Purchases of common stock — 3,376 ( 56,000 ) — — ( 56,000 ) Dividend declared at $1.00 per common share outstanding — — — — ( 4,891,000 ) ( 4,891,000 ) Unrealized gain (loss), net of tax effect — — — 52,000 — 52,000 Net Income — — — — 11,388,000 11,388,000 Balance, April 30, 2026 $ 1,931,000 3,613,827 $ ( 5,072,000 ) $ ( 25,000 ) $ 65,569,000 $ 63,355,000 Balance $ 1,931,000 3,613,827 $ ( 5,072,000 ) $ ( 25,000 ) $ 65,569,000 $ 63,355,000 The accompanying notes are an integral part of these financial statements. F- 9 George Risk Industries, Inc. Statements of Cash Flows Year ended Year ended April 30, 2026 April 30, 2025 Cash Flows From Operating Activities: Net Income $ 11,388,000 $ 7,133,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 350,000 487,000 Realized (gain) on sale of investments ( 898,000 ) ( 937,000 ) Unrealized (gain) loss on equity securities ( 4,517,000 ) 75,000 Provision for credit losses on accounts receivable 43,000 ( 22,000 ) Reserve for obsolete inventory ( 31,000 ) 45,000 Loss on sale of assets 30,000 2,000 Deferred income taxes 987,000 ( 102,000 ) Changes in assets and liabilities: (Increase) decrease in: Accounts receivable ( 375,000 ) ( 768,000 ) Inventories ( 1,051,000 ) 773,000 Prepaid expenses ( 859,000 ) ( 196,000 ) Other receivables 1,000 7,000 Income tax refund receivable ( 351,000 ) — Federal solar tax receivable ( 146,000 ) ( 2,154,000 ) Increase (decrease) in: Accounts payable 84,000 10,000 Accrued expenses 44,000 34,000 Income tax payable ( 21,000 ) ( 80,000 ) Net cash from operating activities 4,678,000 4,307,000 Cash Flows From Investing Activities: (Purchase) of property and equipment ( 383,000 ) ( 396,000 ) Proceeds from sale of marketable securities 25,000 678,000 (Purchase) of marketable securities ( 1,137,000 ) ( 980,000 ) Distribution from investment in limited land partnership 25,000 269,000 Net cash from investing activities ( 1,470,000 ) ( 429,000 ) Cash Flows From Financing Activities: (Purchase) of treasury stock ( 56,000 ) ( 72,000 ) Dividends paid ( 4,467,000 ) ( 4,447,000 ) Net cash from financing activities ( 4,523,000 ) ( 4,519,000 ) Net Change in Cash and Cash Equivalents ( 1,315,000 ) ( 641,000 ) Cash and Cash Equivalents, beginning of year 6,471,000 7,112,000 Cash and Cash Equivalents, end of year $ 5,156,000 $ 6,471,000 Supplemental Disclosure for Cash Flow Information: Cash payments for: Income taxes paid $ 1,579,000 $ 917,000 Interest expense 2,000 6,000 Cash receipts for: Income taxes $ 226,000 $ 19,000 The accompanying notes are an integral part of these financial statements. F- 10 George Risk Industries, Inc. Notes to Financial Statements April 30, 2026 1. Nature of Business and Summary of Significant Accounting Policies George Risk Industries, Inc. (GRI or the Company) was incorporated in 1967 in Colorado. The Company is presently engaged in the design, manufacture, and sale of custom computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, high security switches, and wire and cable installation tools. Nature of Business — The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors, security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire and cable installation tools, and various other sensors and devices. Cash and Cash Equivalents — The Company considers all investments with a maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts Receivable and Allowance for Estimated Credit Losses — Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers. The Company extends credit to its customers based on their creditworthiness and performs continuing credit evaluations of its customers’ financial condition. If the Company believes extending credit is not advisable, other payment methods, such as prepayments, are required. Balances deemed uncollectible by the Company are written off against our allowance for credit loss accounts. The Company maintains an allowance for estimated credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate our allowance for credit losses based on relevant information such as historical experience, current conditions, and future expectations of specifically identified customer balances. This allowance is adjusted as appropriate to reflect current conditions. The Company has recorded an allowance for estimated credit losses of $ 55,259 for the year ended April 30, 2026, and $ 12,414 for the year ended April 30, 2025. For the year ended April 30, 2026, the provision for credit losses on accounts receivable was an expense of $ 42,845 compared to a credit of $ 21,842 for the year ended April 30, 2025. Concentrations of Credit Risk — The Company has a limited number of customers with individually substantial amounts due at any given date. Any unanticipated change in any one of these customers’ 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. F- 11 Inventories — Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs. Property, plant and Equipment — Property and equipment are recorded at cost. Depreciation is calculated based on the following estimated useful lives using the straight-line method: Schedule of Property and Equipment Classification Useful Life in Years 2026 Cost 2025 Cost Dies, jigs, and molds 3 – 7 $ 1,876,000 $ 1,876,000 Machinery and equipment 5 – 10 3,195,000 2,961,000 Furniture and fixtures 5 – 10 222,000 222,000 Improvements 5 – 32 874,000 781,000 Buildings 20 – 39 1,203,000 1,203,000 Automotive 3 – 5 182,000 182,000 Software 2 – 5 425,000 425,000 Land N/A 87,000 87,000 Property and equipment, gross 8,064,000 7,737,000 Accumulated depreciation ( 5,910,000 ) ( 5,706,000 ) Property and equipment, net $ 2,154,000 $ 2,031,000 Depreciation expense of $ 229,000 and $ 366,000 was charged to operations for each of the years ended April 30, 2026 and 2025, respectively. Maintenance and repairs are charged to expenses as incurred, and expenditures for major improvements are capitalized. When assets are retired or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation, and any resulting gain or loss is credited or charged to operations. Investment in Limited Land Partnership (LLP) — In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development in Winter Park-Grand County, CO for investment purposes for a total of $ 200,000 . Over the years, there have been a total of $ 144,000 in additional contributions to support improvements and recurring expenses such as debt service, utilities, taxes, maintenance, insurance, and professional fees. The goal of the investment was to hold the property for resale(s) in 2 - 5 years, but many efforts to sell the property did not materialize for many years. Fortunately, the sale finally happened on June 30, 2023. Disbursement of the sale proceeds was contingent on completing wetland restoration of the land, and we have received net proceeds totaling $ 292,000 over the last two fiscal years. Intangible Assets — Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined that their lives are indefinite. The intangible asset currently being amortized is intellectual property with a useful life of 15 years. As of April 30, 2026, the Company had $ 786,000 of net intangible assets, compared to net intangible assets of $ 907,000 as of April 30, 2025. Amortization expense was $ 121,000 for each of the years ended April 30, 2026 and 2025, respectively. F- 12 As of April 30, 2026, future amortization of intangible assets is expected as follows: Schedule of Future Amortization of Intangible Assets Fiscal year end Amortization amount 2027 $ 121,000 2028 $ 121,000 2029 $ 121,000 2030 $ 121,000 2031 $ 121,000 Thereafter $ 181,000 Total $ 786,000 Basic and Diluted Earnings per Share — The Company computes earnings per share in accordance with Accounting Standards Codification (“ASC”) 260-10-45 Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of income. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings per share exclude all potential common shares if their effect is anti-dilutive. Advertising — Advertising costs are expensed as incurred and are included in selling expenses. Advertising expense amounted to $ 107,000 and $ 145,000 for the years ended April 30, 2026 and 2025, respectively. Income Taxes — Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. Measurement of the deferred tax items is based on enacted tax laws. In the event that the future consequences of differences between the financial reporting and tax bases of the Company’s assets or liabilities result in a deferred tax asset, we evaluate the probability of realizing the future benefits comprising that asset and record a valuation allowance if considered necessary. Accounting standards prescribe a recognition threshold and a measurement attribute for the recognition and measurement of positions taken or expected to be taken in a tax return. For a tax benefit to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. A “more likely than not” tax position is measured as the largest amount of benefit that is greater than a fifty percent likelihood of being realized upon ultimate settlement, or else a full reserve is established against the tax asset or a liability is recorded. The Internal Revenue Service (“IRS”) may generally access additional income tax records for the most recent three years. This would generally prevent the IRS from opening an examination for years ending on or before April 30, 2021. However, there are exceptions that can extend the statute of limitations to six years, and in some cases, prevent the statute of limitations from ever expiring. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense. The Company has determined that it has no uncertain tax positions on its tax returns for the years 2025, 2024, and prior. Based on the evaluation of the 2026 transactions and events, the Company has no material uncertain tax positions that require measurement. Purchase of Transferrable Tax Credits – In September 2024, pursuant to transferability provisions of the Inflation Reduction Act of 2022, the Company executed an agreement to purchase a tax credit of $ 3,431,000 created by solar energy projects qualifying under Internal Revenue Code Section 48 (the “Solar Tax Credit”) in exchange for consideration of $ 2,917,000 , resulting in a total gain on federal Solar Tax Credit of $ 515,000 . This tax credit is available to offset income tax payments for the Company’s 2025 fiscal year and for up to the prior four fiscal years. F- 13 In January 2026, the Company purchased an additional Solar Tax Credit of $ 960,000 in exchange for consideration of $ 826,000 , resulting in a gain of $ 134,000 for fiscal year 2026. Once the amount of current federal income tax due for fiscal year 2026 is finalized, amendments will be made to prior fiscal years' returns until the credit has been fully utilized. As of April 30, 2026, $ 2,300,000 of purchased credits remained unapplied and is reflected as a receivable on the Company's balance sheet. Gains on the Solar Tax Credit of $ 134,000 and $ 515,000 for fiscal years 2026 and 2025, respectively, are recognized within the Company's income statements. These purchased credits are accounted for outside the scope of ASC 740 and, accordingly, are not reflected as a component of income tax expense or within the effective tax rate reconciliation above; amounts applied against the Company's federal income tax liability do, however, reduce the cash income taxes paid disclosed above. Accounting Estimates — The preparation of these financial statements requires the use of estimates and assumptions, including the carrying value of assets. The estimates and assumptions result in approximate rather than exact amounts. Fair Value of Financial Instruments — Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 10. Investments — The accounting policies for the Company’s principal investments are as follows: Debt Securities and Equity Securities. Effective May 1, 2018, the Company adopted Accounting Standards Update 2016-01, “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) (“AOCI”). The Company’s debt securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented, net of related changes, in deferred income taxes. Purchases and sales of debt securities and equity securities are recorded on the trade date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out (“FIFO”) basis. The Company evaluates all marketable securities for other-than-temporary declines in fair value, defined as when the cost basis exceeds fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment, and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will reduce the cost of the marketable security to its new fair value and recognize a realized loss. The investments are periodically evaluated to determine if impairment changes are required. Revenue Recognition — The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” The Company recognizes product revenue using a five-step approach to determine the amount and timing of revenue to be recognized. The five-step approach requires (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract, and (5) recognizing revenue when performance obligations are satisfied. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine whether an arrangement exists. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Payments received from customers in advance of product shipment or revenue recognition are treated as deferred revenues and recognized when the product is shipped. F- 14 The following table presents the changes in the Company’s deferred income balance for the fiscal years ended April 30, 2026 and April 30, 2025: Schedule of Deferred Income Recognized Year Ended April 30, 2026 Year Ended April 30, 2025 Deferred income, beginning of year $ 17,000 $ 23,000 Additions – considerations received from customers 214,000 27,000 Income recognized during the period ( 215,000 ) ( 233,000 ) Deferred income, end of year $ 16,000 $ 17,000 Revenue recognized that was included in the deferred income at the beginning of year $ 17,000 $ 23,000 Variable Consideration — The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Certain customers may receive cash and/or non-cash incentives, such as cash rebates and customer discounts (such as volume or trade discounts), which are accounted for as variable consideration. In some cases, the Company must apply judgment, including contractual rates and historical payment trends, when estimating variable consideration. Product Returns — In the normal course of business, the Company may allow customers to return products in accordance with the provisions of a sale agreement. Estimated product returns are recorded as a reduction in reported revenues with offsetting entries recorded in the balance sheet quarterly based upon historical product return experience, adjusted for known trends, to arrive at the amount of consideration expected to be received. Product Warranties — In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience. Shipping and Handling Costs — The Company considers all shipping and handling to be fulfillment activities and not a separate performance obligation. Shipping and handling costs are recorded as cost of sales. Research and Development Costs — Generally, costs related to the research, design, and development of products are charged to engineering expense as incurred. Certain research and development costs are recognized as assets on the balance sheet. Comprehensive Income — US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures of the components of non-stockholder changes in equity on an annual basis. Total non-stockholder changes in equity include all changes in equity during a period except those resulting from fiscal investments by and distributions to stockholders. Segment Reporting and Related Information — In fiscal year 2025, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards Board (FASB). This new standard requires enhanced disclosure of significant segment expenses annually. F- 15 Operating Segments and Related Disclosures We manage our company as one reportable operating segment. The segment information aligns with how the Company’s Chief Operating Decision Maker (“CODM”) reviews and manages our business. The Company’s CODM is Stephanie Risk-McElroy, President, Chief Executive, and Financial Officer. Financial information, annual operating plans, and forecasts are prepared and reviewed by the CODM at the entity level. The CODM assesses performance for the segment and decides how to allocate resources more effectively based on 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. The accounting policies of our one reportable segment are the same as those described in the summary of significant accounting policies herein. For single reportable segment-level financial information, total assets, and significant non-cash transactions, see Financial Statements. Recently Issued Accounting Pronouncements — In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740) , to enhance the transparency and decision usefulness of income tax disclosures by changing the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company has adopted this standard, which has had minimal impact on its Financial Statements In 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. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides that in developing supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. An entity that elects the practical expedient should apply the amendment prospectively. The Company does not expect the adoption of this new accounting guidance to have a material effect on its Consolidated Financial Statements. Subsequent Events – Management has evaluated all events or transactions that occurred after April 30, 2026 through the date of the filing. During this period, the Company had no material recognizable subsequent events. 2. Inventories Inventories as of April 30, 2026 and 2025 consisted of the following: Schedule of Inventories 2026 2025 Raw materials $ 9,943,000 $ 9,279,000 Work in process 1,041,000 776,000 Finished goods 1,219,000 1,097,000 Inventory, gross 12,203,000 11,152,000 Less: allowance for obsolete inventory ( 381,000 ) ( 412,000 ) Inventories, net $ 11,822,000 $ 10,740,000 F- 16 3. Investments The Company has investments in publicly traded equity securities, state and municipal debt securities, REITs, and money markets, and they are recorded at fair value. The investments in debt securities, which include municipal bonds and bond funds, mature between June 2026 and December 2050. The Company uses the average cost method to determine the cost of equity securities sold, with any unrealized gains or losses reported in the respective period’s earnings. Dividend and interest income are reported as earned. As of April 30, 2026 and 2025 investments consisted of the following: Schedule of Investments Investments at Gross Gross April 30, 2026 Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 8,670,000 $ 138,000 $ ( 85,000 ) $ 8,723,000 REITs $ 92,000 $ 10,000 $ ( 8,000 ) $ 94,000 Equity securities $ 18,367,000 $ 13,682,000 $ ( 124,000 ) $ 31,925,000 Money Markets and CDs $ 1,593,000 $ - $ - $ 1,593,000 Total $ 28,722,000 $ 13,830,000 $ ( 217,000 ) $ 42,335,000 Investments at Gross Gross April 30, 2025 Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 7,681,000 $ 141,000 $ ( 135,000 ) $ 7,687,000 REITs $ 74,000 $ 1,000 $ ( 7,000 ) $ 68,000 Equity securities $ 17,689,000 $ 9,330,000 $ ( 307,000 ) $ 26,712,000 Money Markets and CDs $ 1,269,000 $ - $ - $ 1,269,000 Total $ 26,713,000 $ 9,472,000 $ ( 449,000 ) $ 35,736,000 Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s income statement. The Company evaluates all investments 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, cause of impairment, and number of investments that are in an unrealized position. When other than a temporary decline is identified, the Company will decrease the cost of the investment to the new fair value and recognize a loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, there were no impairment losses recorded for the years ended April 30, 2026 and 2025. The Company’s investments are actively traded in the stock and bond markets. Therefore, there is either a realized gain or loss that is recorded when a sale happens. For the fiscal year ended April 30, 2026, the Company had sales of equity securities which yielded gross realized gains of $ 1,199,000 and gross realized losses of $ 312,000 . For the same period, there were sales of debt securities that yielded $ 25,000 of gross realized gains, and sales of debt securities yielded gross realized losses of $ 14,000 . Comparatively, the Company recorded gross realized gains on equity securities of $ 1,222,000 and gross realized losses of $ 264,000 for the fiscal year ending April 30, 2025. As for debt securities, there were no sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $ 21,000 for the fiscal year ending April 30, 2025. The gross realized loss numbers include the impaired figures listed in the previous paragraph. Additionally, proceeds from sales of securities available for sale were $ 25,000 and $ 678,000 for the years ended April 30, 2026 and 2025, respectively. F- 17 3. Investments, continued The following table shows investments with unrealized losses that are not deemed other-than-temporarily impaired, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position, as of April 30, 2026 and 2025. Schedule of Unrealized Loss Breakdown by Investment Type Unrealized Loss Breakdown by Investment Type as of April 30, 2026 Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,796,000 $ ( 11,000 ) $ 1,125,000 $ ( 74,000 ) $ 2,921,000 $ ( 85,000 ) REITs $ — $ — $ 55,000 $ ( 8,000 ) $ 55,000 $ ( 8,000 ) Equity securities $ 1,885,000 $ ( 79,000 ) $ 271,000 $ ( 45,000 ) $ 2,156,000 $ ( 124,000 ) Total $ 3,681,000 $ ( 90,000 ) $ 1,451,000 $ ( 127,000 ) $ 5,132,000 $ ( 217,000 ) Unrealized Loss Breakdown by Investment Type as of April 30, 2025 Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 550,000 $ ( 21,000 ) $ 2,108,000 $ ( 114,000 ) $ 2,658,000 $ ( 135,000 ) REITs $ — $ — $ 38,000 $ ( 7,000 ) $ 38,000 $ ( 7,000 ) Equity securities $ 1,562,000 $ ( 132,000 ) $ 2,238,000 $ ( 175,000 ) $ 3,800,000 $ ( 307,000 ) Total $ 2,112,000 $ ( 153,000 ) $ 4,384,000 $ ( 296,000 ) $ 6,496,000 $ ( 449,000 ) Municipal Bonds The unrealized losses on the Company’s investments in municipal bonds resulted from interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value occurs, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of April 30, 2026 and 2025. Marketable Equity Securities and REITs The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. Management has evaluated the individual holdings and does not consider these investments to be other-than-temporarily impaired as of April 30, 2026 and 2025. F- 18 4. Retirement Benefit Plan On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the Company. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. It is funded by voluntary pre-tax and Roth (taxable) contributions from eligible employees who may contribute a percentage of their eligible compensation, limited and subject to statutory limits. Employees are eligible to participate in the Plan when they have attained the age of 21 and completed one thousand hours of service in any plan year with the Company. Upon leaving the Company, each participant is 100 % vested with respect to the participants’ contributions while the Company’s matching contributions are vested over a six-year period in accordance with the Plan document. Contributions are invested, as directed by the participant, in investment funds available under the Plan. Matching contributions of approximately $ 67,000 and $ 58,000 were paid during the years ending April 30, 2026 and 2025, respectively. 5. Stockholders’ Equity Preferred Stock — Each share of the Series #1 preferred stock is convertible, at the option of the holder, into five shares of Class A common stock and is also redeemable, at the option of the board of directors, at $ 20 per share. The holders of the convertible preferred stock shall be entitled to a dividend at a rate up to $ 1 per share annually, payable quarterly as declared by the board of directors. No dividends were declared or paid during the two years ended April 30, 2026 and 2025. Convertible preferred stock without par value may be issued from time to time as determined by the board of directors. Shares of different series shall be of equal rank but may vary as to terms and conditions. In an audit conducted in May 2025, it was discovered that an additional 139 preferred stock shares had been issued but were not accounted for on the balance sheet. A journal entry has been made to remedy this error. Class A Common Stock —The holders of the Class A common stock are entitled to receive dividends as declared by the board of directors, usually on an annual basis. During the fiscal year ended April 30, 2026, the Company purchased 3,376 shares of Class A common stock. This was initiated by stockholders contacting the Company. Stock Transfer Agent —The Company does not have an independent stock transfer agent. The Company maintains all stock records. F- 19 6. Earnings Per Share Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: Schedule of Basic and Diluted Earnings Per Share April 30, 2026 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 11,388,000 Basic EPS $ 11,388,000 4,890,363 $ 2.33 Effect of dilutive Convertible Preferred Stock – 21,195 ( 0.01 ) Diluted EPS $ 11,388,000 4,911,558 $ 2.32 April 30, 2025 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 7,133,000 Basic EPS $ 7,133,000 4,895,349 $ 1.46 Effect of dilutive Convertible Preferred Stock – 21,195 ( 0.01 ) Diluted EPS $ 7,133,000 4,916,544 $ 1.45 7. Commitments, Contingencies, and Related Party Transactions One of the directors of the board, Joel Wiens, was the principal shareholder of FirsTier Bank. After his 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. Year-end balances of accounts held at this bank are $ 4,249,000 and $ 5,433,000 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 $ 215,000 for the year ended April 30, 2025. From time to time, the Company may be involved in litigation in the ordinary course of business. The Company is not currently involved in any litigation that we believe could have a material adverse effect on its financial condition or results of operations. F- 20 8. Income Taxes The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future income and deductions implicit in the Balance Sheets. The income tax provision for the fiscal years ended April 30, 2026 and 2025 consisted of the following: Components of Income Tax Provision Schedule of Components of Income Tax Provision 2026 2025 Current: Federal $ 1,689,000 $ 1,542,000 State 437,000 540,000 Deferred: Federal 927,000 ( 76,000 ) State 60,000 ( 26,000 ) Total income tax provision $ 3,113,000 $ 1,980,000 Effective for the fiscal year ended April 30, 2026, the Company adopted Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is effective for public business entities for annual periods beginning after December 15, 2024. ASU 2023-09 expands the required disclosures related to the Company's effective tax rate reconciliation, income taxes paid, and the disaggregation of income before income taxes and income tax expense between domestic and foreign jurisdictions. The Company has applied these requirements prospectively and, for comparability, has presented the fiscal 2025 information below on the same basis to the extent the underlying detail was available. Income Before Income Taxes and Income Tax Expense by Jurisdiction Schedule of Income Before Income Taxes and Income Tax Expense by Jurisdiction 2026 2025 Income before income taxes: Domestic $ 14,501,000 $ 9,113,000 Foreign 0 0 Total $ 14,501,000 $ 9,113,000 2026 2025 Income tax expense (benefit): Federal $ 2,599,000 $ 1,451,000 State 497,000 514,000 Foreign 17,000 15,000 Total $ 3,113,000 $ 1,980,000 The Company is domiciled in, and conducts substantially all of its business operations in, the United States. The Company has no foreign subsidiaries, branches, or operations; accordingly, all income before income taxes is classified as domestic. Foreign income tax expense represents withholding taxes assessed by foreign jurisdictions on dividend income earned on the Company's portfolio of foreign equity securities. Effective Tax Rate Reconciliation Schedule of Effective Tax Rate Reconciliation 2026 % 2025 % U.S. federal statutory income tax rate $ 3,045,000 21.00 % $ 1,914,000 21.00 % State and local income tax, net of federal income tax effect 393,000 2.71 % 406,000 4.46 % Foreign tax effects 4,000 0.03 % 3,000 0.03 % Effect of cross-border tax laws 0 0.00 % 0 0.00 % Effect of changes in tax laws or rates enacted in the current period 0 0.00 % 0 0.00 % Non-taxable or non-deductible items ( 152,000 ) ( 1.05 %) ( 126,000 ) ( 1.38 %) Tax credits (primarily foreign tax credit) ( 17,000 ) ( 0.12 %) ( 15,000 ) ( 0.16 %) Changes in valuation allowances 0 0.00 % 0 0.00 % Changes in unrecognized tax benefits 0 0.00 % 0 0.00 % Other adjustments, net * ( 160,000 ) ( 1.10 %) ( 202,000 ) ( 2.22 %) Income tax expense $ 3,113,000 21.47 % $ 1,980,000 21.73 % * Other adjustments, net primarily reflect true-ups of the prior year's federal and state income tax provisions to amounts reported on the related income tax returns as filed, together with other federal tax credits not separately disaggregated above. The reconciliation above begins with the U.S. federal statutory income tax rate of 21 %, the statutory rate of the jurisdiction in which the Company is domiciled. Substantially all of the state and local income tax category relates to Nebraska, the state in which the Company is domiciled and conducts substantially all of its operations. No individual foreign jurisdiction, and no individual reconciling item within a foreign jurisdiction, met the 5% disaggregation threshold under ASC 740-10-50-12A(b) in either year presented; foreign tax effects and related foreign tax credits relate to withholding taxes on the Company's portfolio of foreign dividend-paying securities. Non-taxable or non-deductible items consist primarily of the dividends-received deduction and tax-exempt interest income. The Company had no valuation allowance against its deferred tax assets and no unrecognized tax benefits as of April 30, 2026 or 2025. Income Taxes Paid Schedule of Income Taxes Paid 2026 2025 Federal $ 813,000 $ 385,000 State 540,000 450,000 Foreign 17,000 15,000 Total income taxes paid, net of refunds received $ 1,370,000 $ 850,000 Amounts presented reflect cash income taxes paid, net of refunds received, during each fiscal year. Substantially all state income taxes paid relate to Nebraska. No individual foreign jurisdiction represented 5% or more of total income taxes paid, net of refunds received, in either year presented. Federal income taxes paid, net of refunds, do not include amounts paid to acquire purchased Solar Tax Credits (see Purchase of Transferable Tax Credits below); amounts applied to satisfy the Company's federal income tax liability using such credits reduce cash otherwise remitted to the IRS and are reflected in the amounts above. Deferred Tax Assets (Liabilities) Deferred tax assets (liabilities) consist of the following components as of April 30, 2026 and 2025: Schedule of Deferred tax assets (liabilities) 2026 2025 Depreciation $ ( 256,000 ) $ ( 296,000 ) Capitalized R&D expense 352,000 380,000 Inventory valuation 100,000 116,000 Allowance for doubtful accounts 14,000 3,000 Accrued vacation 39,000 36,000 Accumulated unrealized gain on investments ( 3,567,000 ) ( 2,549,000 ) Net deferred tax liabilities $ ( 3,318,000 ) $ ( 2,310,000 ) F- 21 9. Concentrations The Company maintains the majority of its cash balance in a financial institution in Kimball, Nebraska. Accounts at this institution are insured by the Federal Deposit Insurance Corporation for up to $ 250,000 . For the years ended April 30, 2026 and 2025, the Company had uninsured balances of $ 3,999,000 and $ 5,183,000 , respectively. Management believes this financial institution is sound and that the risk of loss is minimal. Management also has cash funds with Wells Fargo Bank with uninsured balances of $ 712,000 and $ 881,000 for the years ending April 30, 2026 and 2025, respectively. Management believes this financial institution is sound and that the risk of loss is minimal. The Company has sales to a security alarm distributor representing 37 % of total sales for the years ended April 30, 2026 and 2025, respectively. This distributor accounted for 49 % and 56 % of accounts receivable at the years ended April 30, 2026 and 2025, respectively. Security switch sales accounted for 96 % of total sales for the fiscal year ending April 30, 2026, and 89 % for the fiscal year ending April 30, 2025. 10. Fair Value Measurements The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values due to their short-term nature. The fair value of our investments is determined utilizing market-based information. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. US GAAP establishes a fair value hierarchy that prioritizes the inputs used in valuation techniques to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below: Level 1 Valuation is based on quoted prices for identical instruments traded in active markets. Level 2 Valuation is based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated using model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, and similar techniques. F- 22 Investments and Marketable Securities As of April 30, 2026 and 2025, the Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as certain state and municipal bonds. Marketable securities are valued using third-party broker statements. The value of most securities is derived from quoted market information. The inputs to the valuation are classified as Level 1 given the active market for these securities; however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2. Fair Value Hierarchy The following tables set forth our assets and liabilities measured at fair value on a recurring and non-recurring basis, by level within the fair value hierarchy. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Schedule of Assets Measured at Fair Value on Recurring Basis Level 1 Level 2 Level 3 Total Assets Measured at Fair Value on a Recurring Basis as of April 30, 2026 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 8,723,000 — $ 8,723,000 REITs — $ 94,000 — $ 94,000 Equity Securities $ 31,925,000 — — $ 31,925,000 Money Markets and CDs $ 1,593,000 — — $ 1,593,000 Total fair value of assets measured on a recurring basis $ 33,518,000 $ 8,817,000 — $ 42,335,000 Level 1 Level 2 Level 3 Total Assets Measured at Fair Value on a Recurring Basis as of April 30, 2025 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 7,687,000 — $ 7,687,000 REITs — $ 68,000 — $ 68,000 Equity Securities $ 26,712,000 — — $ 26,712,000 Money Markets and CDs $ 1,269,000 — — $ 1,269,000 Total fair value of assets measured on a recurring basis $ 27,981,000 $ 7,755,000 — $ 35,736,000 F- 23 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosures There were no disagreements with accountants on accounting and financial disclosure.