EDGAR 10-K Filing

Company CIK: 84112
Filing Year: 2025
Filename: 84112_10-K_2025_0001641172-25-023170.json

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ITEM 1. BUSINESS
Item 1 Business
Business Development
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 cable and wire installation tools.
Products, Market, and Distribution
The Company designs, manufactures, and sells computer keyboards, proximity switches, security alarm components and systems, pool access alarms, water sensors, electronic switching devices, high security switches, and wire and cable installation tools. The Security sales division, which concentrates on selling products for security purposes, comprises approximately 96.0% of net revenues and these goods are sold to distributors and alarm dealers/installers.
The security division has approximately 1,000 current customers. One of the distributors, Ademco, Inc. (previously known as ADI), accounts for approximately 38.6% of the Company’s sales of these products. Anixter, Inc. accounts for another 22.4% of the security division of the Company sales. The loss of these distributors would be significant to the Company. However, both companies have purchased products from the Company for many years and are expected to continue. The Company also has a written agreement with Ademco. This agreement was signed in February 2011 and was initiated by the customer. The contents of the agreement include product terms, purchasing, payment terms, term and termination, product marketing, representations and warranties, product support, mutual confidentiality, indemnification and insurance, and general provisions.
The keyboard and proximity switch division has approximately 300 customers. These products are primarily sold to original equipment manufacturers to their specifications and to distributors of off-the-shelf keyboards of proprietary design.
Competition
The Company has intense competition in the keyboard/proximity and security/burglar alarm lines.
The security/burglar alarm division has approximately six major competitors. The Company competes well based on price, product design, quality, customization, and having products made in the USA.
The competitors in the keyboard/proximity division are larger companies with automated production facilities. GRI has emphasized small custom order sales that many of its competitors decline or discourage.
Research and Development
The Company conducts research and development for its customers when needed and as requested. Costs in connection with such product development have been borne by the customers. Costs associated with the development of new products are expensed as incurred. The Company’s internal research and development activities support the development of new products.
Employees
GRI has approximately 185 employees.

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ITEM 1A. RISK FACTORS

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ITEM 1B. UNRESOLVED STAFF COMMENTS

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ITEM 2. PROPERTIES
Item 2 Properties
The Company owns the manufacturing and the office facilities that it operates in. The total square footage of the plant in Kimball, Nebraska is approximately 50,000 sq. ft. A 7,500 sq. ft. warehouse for raw material storage was purchased in June 2017 when the Company acquired its cable and wiring division, and another 9,600 sq. ft. building was purchased in April 2020 to provide for additional expansion. Additionally, the Company purchased the 15,000 sq. ft. building that it previously leased from Bonita Risk, which is used mainly for offices, in November 2019. Bonita Risk is a director of the Company.
The Company also owns a building in Gering, NE that is 7,200 sq. ft. in size. This is used for manufacturing. Currently, there are approximately 36 employees at the Gering site.

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ITEM 3. LEGAL PROCEEDINGS
Item 3 Legal Proceedings
None.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4 Mine Safety Disclosures
Not applicable.
Part II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5 Market for the Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
Principal Market
The Company’s Class A Common Stock, which is traded under the ticker symbol RSKIA, is currently quoted on the OTC Bulletin Board by one market maker.
Stock Prices and Dividends Information
2025 Fiscal Year High Low
May 1-July 31 $ 13.50 $ 12.00
August 1-October 31 16.02 12.60
November 1-January 31 17.54 15.00
February 1-April 30 17.30 15.00
2024 Fiscal Year High Low
May 1-July 31 $ 11.10 $ 9.81
August 1-October 31 12.25 10.99
November 1-January 31 12.80 11.24
February 1-April 30 14.10 11.06
On September 30, 2024, a dividend of $1.00 per common share was declared for the fiscal year ending April 30, 2025.
For the prior fiscal year, a dividend of $0.65 per common share was declared on September 30, 2023.
The number of holders of record of the Company’s Class A Common Stock as of April 30, 2025, was approximately 1,077.
Repurchases of Equity Securities
On September 18, 2008, the Board of Directors approved an authorization for the repurchase of up to 500,000 shares of the Company’s common stock. Purchases can be made in the open market or in privately negotiated transactions. The Board did not specify an expiration date for the authorization.
The following tables show repurchases of GRI’s common stock made on a quarterly basis:
2025 Fiscal Year Number of shares repurchased
May 1-July 31
August 1-October 31
November 1-January 31 2,000
February 1-April 30 2,300
2024 Fiscal Year Number of shares repurchased
May 1-July 31 2,035
August 1-October 31 1,715
November 1-January 31 27,963
February 1-April 30 2,100
There are still approximately 188,000 shares available to be repurchased under the current resolution.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6 [Reserved]
Not Applicable

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Overview
George Risk Industries, Inc. (“GRI” or the “Company”) is a diversified manufacturer of electronic components, encompassing the security industry’s widest variety of door and window contact switches, environmental products, wire and cable installation tools, proximity switches and custom keyboards. The security products division comprises the largest portion of GRI sales and products are sold worldwide through distributors, who in turn sell these products to security installation companies. These products are used for residential, commercial, industrial and government installations. International sales accounted for approximately 9.7% of revenues for fiscal year 2025 and 10.3% for 2024.
GRI is known for its quality American made products, top-notch customer service and the willingness to work with customers on their special applications.
GRI owns and operates its main manufacturing plant and offices in Kimball, Nebraska with a satellite plant 40 miles away in Gering, Nebraska.
The Company has substantial marketable securities holdings, and these holdings have a material impact on the financial results. For the year ending April 30, 2025, net other income accounted for 31.55% of income before income taxes. In comparison, for the year ending April 30, 2024, net other income accounted for 39.08% 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.
Management 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. and Roy Bowling.
There are no known seasonal trends with any of GRI’s products, since the Company mostly sells to distributors and original equipment manufacturers. The products are tied to the housing industry and will fluctuate with building trends.
Liquidity and Capital Resources
Operating
Net 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, 2024. 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 30, 2024.
Inventories 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. The current 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.
Prepaid 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 year. 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.
The 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.
For 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, 2024. This difference is primarily a result of timing. Payables are paid within terms and fluctuate based primarily on inventory needs for production. Accrued expenses increased $34,000 for the year ended April 30, 2025, 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.
The 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 ended April 30, 2024. The decrease in the current fiscal year income tax payable is due to the purchase of federal solar tax credits.
Investing
The Company spent $396,000 on purchases of property and equipment during the year ended April 30, 2025, compared to $378,000 during the year ended April 30, 2024. These capitalized costs mainly consisted of purchases of machinery and equipment and making capital improvements. Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. 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, 2024. Net proceeds from the sale of marketable securities were $678,000 and $527,000 at April 30, 2025 and 2024, respectively. The 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.
The Company received a cash distribution of $269,000 from the sale of the investment in the limited land partnership during the year ended April 30, 2025. 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. Please see Note. 1 - Investment in Limited Land Partnership, to our consolidated financial statements for further information.
Financing
Cash used in financing activities consists of declared dividends and the repurchase of the Company’s Class A common Stock. For the year ended April 30, 2025, $4,447,000 was spent on the payment of dividends. 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 30, 2023 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 30, 2024. 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.
As of April 30, 2025, working capital showed a year-over -year increase of 4.68%. The Company measures liquidity using the quick ratio, which is the ratio of cash, securities and accounts receivables to current obligations. The Company’s quick ratio decreased to 11.252 for the year ended April 30, 2025, compared to 12.118 for the year ended April 30, 2024.
Results of Operations
The 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 Year ended Year ended
April 30, April 30, April 30,
(Unaudited)
Revenue:
Security alarm products $ 5,537,000 $ 20,080,000 $ 19,630,000
Cable & wiring tools 386,000 1,478,000 1,484,000
Other products 309,000 980,000 653,000
Total revenue $ 6,232,000 $ 22,538,000 $ 21,767,000
Cost of goods sold:
Security alarm products $ 2,913,000 $ 10,360,000 $ 9,853,000
Cable & wiring tools 203,000 762,000 745,000
Other products 163,000 506,000 328,000
Total cost of goods sold $ 3,279,000 $ 11,628,000 $ 10,926,000
Gross profit
Security alarm products $ 2,624,000 $ 9,720,000 $ 9,777,000
Cable & wiring tools 183,000 716,000 739,000
Other products 146,000 474,000 325,000
Total gross profit $ 2,953,000 $ 10,910,000 $ 10,841,000
Operating Expenses:
General and administrative 344,000 1,442,000 1,492,000
Selling 794,000 3,114,000 2,958,000
Engineering 30,000 116,000 102,000
Total operating expense $ 1,168,000 $ 4,672,000 $ 4,552,000
Income from Operations $ 1,785,000 $ 6,238,000 $ 6,289,000
GRI completed the year ending April 30, 2025 with a net profit of 31.65% of net sales. Net sales for the current fiscal year were $22,538,000, up 3.54% over the previous fiscal year. The increase in sales is a result of the Company continuing to provide quality products to our customers and a price increase that was implemented during the 4th quarter of the fiscal year. Cost of goods sold was 51.59% of net sales for the year ended April 30, 2025, and 50.2% for the same period last year. Management aims to keep the cost of goods sold percentage within 50% and was just slightly over that percentage for the current year. Management strives to be as efficient as possible as wages and material costs continue to increase. 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.
Operating expenses were 20.73% of net sales for the year ended April 30, 2025, compared to 20.91% for the year ended April 30, 2024. 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 fiscal year. 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.
Net 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 30, 2024. 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.
Net 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. Basic and diluted EPS for the year ended April 30, 2024, was $1.54 and $1.53 per share, respectively.
Management is hopeful that sales will continue to increase for the fiscal year ending April 30, 2026. 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 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 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. Due to the Company’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing techniques and established customers to deliver new products and increase sales and profits.
New product development
The 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.
Explosion proof contacts that will be Underwriters Laboratories (UL) listed for hazardous locations are in development. There has been demand from our customers for this type of high security magnetic reed switch.
Research is being done on programmable temperature and humidity sensors with built-in hysteresis, a miniature profile overhead door contact based on our popular 4532 series, and a brass water valve shut-off system.
Production has begun on a couple of newly developed products. First, there are magnetic contacts which are listed under UL 634 Level 2. These sensors will require additional UL testing and are used in high security applications such as government buildings, military use, nuclear facilities, and financial institutions. Secondly, we have updated our small profile glass break detector and, thirdly, an expansion of the GR3045 panic switch to include single-pull, double-throw (SPDT) versions, latching and non-latching with LED indicator lights.
Wireless technology is a main area of focus for product development. We are considering adding wireless technology to some of our current products. A wireless contact switch is in the final stages of development. Also, we are working on wireless versions of monitoring devices which include glass break detection, tilt sensing and environmental monitoring.
Critical Accounting Policies
The discussion and analysis of the financial condition and results of operations are based upon the financial statements, which have been prepared in conformity with generally accepted accounting principles in the United States. The preparation of these financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses reported in those financial statements. These judgments can be subjective and complex, and consequently actual results could differ from those estimates. The most critical accounting policies relate to accounts receivable; marketable securities; and inventory; income taxes.
Accounts receivable-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. Management performs continuing credit evaluations of its customers’ financial condition, and the Company generally does not require collateral.
The Company records an allowance for credit losses based on an analysis of specifically identified customer balances. The Company has a limited number of customers with individually large amounts due at 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 results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off.
Marketable securities-The Company has investments in publicly traded equity securities, state and municipal debt securities, and real-estate investment trusts (REITs). The investments in securities are reported at fair value. The Company uses the average cost method to determine 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 equity. Dividend and interest income are reported as earned.
In accordance with the Generally Accepted Accounting Principles in the United States (“US GAAP”), the Company evaluates all marketable securities for other-than temporary declines in fair value. When the cost basis exceeds the fair market value for approximately one year, management evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized loss position. When it is determined that a security will likely remain impaired, a recognized loss is recorded and the investment is written down to its new fair value. The investments are periodically evaluated to determine if impairment changes are required.
Inventories-Inventories are valued at the lower of cost or net realizable value. Costs are determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied, based in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and approximations and actual results could differ from those estimates.
In 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 percentage. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events.
Income 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. Deferred tax expense represents the change in the deferred tax asset/liability balances .
Related Party Transactions - One of the directors of the board, Joel Wiens, is the principal shareholder of FirsTier Bank. 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 $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.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8 Financial Statements and Supplementary Data
George Risk Industries, Inc.
Page
Report of Independent Registered Public Accounting Firm
Balance Sheets-April 30, 2025 and 2024
Income Statements For the Years Ended April 30, 2025 and 2024
Statements of Comprehensive Income For the Years Ended April 30, 2025 and 2024
Statements of Stockholders’ Equity For the Years Ended April 30, 2025 and 2024
Statements of Cash Flows For the Years Ended April 30, 2025 and 2024
Notes to Financial Statements
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, 2025 and 2024 and the related statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended April 30, 2025 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, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended April 30, 2025 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 audits 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.
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 can be hard to 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 are 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 & Company
Salt Lake City, UT
July 31, 2025
PCAOB #457
We have served as the Company’s auditor since
George Risk Industries, Inc.
Balance Sheets
As of April 30, 2025 and 2024
ASSETS
Current Assets:
Cash and cash equivalents $ 6,471,000 $ 7,112,000
Investments and securities 35,736,000 34,488,000
Accounts receivable:
Trade, net of allowance for credit losses of $12,414 and $34,256 for 2025 and 2024, respectively 4,693,000 3,903,000
Other 59,000 66,000
Federal solar tax credit receivable 2,154,000 -
Inventories, net 10,740,000 11,558,000
Prepaid expenses 514,000 315,000
Total Current Assets 60,367,000 57,442,000
Property and Equipment, at cost, net 2,031,000 2,003,000
Other Assets
Investment in Limited Land Partnership, at cost 25,000 294,000
Projects in process 10,000 13,000
Total Other Assets 35,000 307,000
Intangible Assets, net 907,000 1,028,000
TOTAL ASSETS $ 63,340,000 $ 60,780,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Balance Sheets (Continued)
As of April 30, 2025 and 2024
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable, trade $ 301,000 $ 291,000
Dividends payable 3,302,000 2,853,000
Deferred income 17,000 23,000
Accrued expenses 523,000 483,000
Income tax payable 25,000 105,000
Total Current Liabilities 4,168,000 3,755,000
Long-Term Liabilities
Deferred income taxes 2,310,000 2,388,000
Total Long-Term Liabilities 2,310,000 2,388,000
Total Liabilities 6,478,000 6,143,000
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 and 4,100 issued and outstanding 102,000 99,000
Convertible preferred stock, 1,000,000 shares authorized, Series 1-noncumulative, $20 stated value, 25,000 shares authorized, 4,239 and 4,100 issued and outstanding 102,000 99,000
Common stock, Class A, $.10 par value, 10,000,000 shares
authorized, 8,502,881 shares issued and outstanding 850,000 850,000
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 1,934,000
Accumulated other comprehensive income (loss) (77,000 ) (137,000 )
Retained earnings 59,072,000 56,836,000
Less: treasury stock, 3,610,451 and 3,606,151 shares, at cost (5,016,000 ) (4,945,000 )
Total Stockholders’ Equity 56,862,000 54,637,000
TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY $ 63,340,000 $ 60,780,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Income Statements
For the years ended April 30, 2025 and 2024
April 30, 2025 April 30, 2024
Year ended Year ended
April 30, 2025 April 30, 2024
Net Sales $ 22,538,000 $ 21,767,000
Less: Cost of Goods Sold (11,628,000 ) (10,926,000 )
Gross Profit 10,910,000 10,841,000
Operating Expenses:
General and Administrative 1,442,000 1,492,000
Selling 3,114,000 2,958,000
Engineering 116,000 102,000
Total Operating Expenses 4,672,000 4,552,000
Income From Operations 6,238,000 6,289,000
Other Income (Expense)
Other Income 96,000 37,000
Interest (Expense) (6,000 ) -
Impairment on Investment in Limited Land Partnership - (38,000 )
Dividend and Interest Income 1,410,000 1,116,000
Unrealized Gain (Loss) on Equity Securities (75,000 ) 2,771,000
Gain on Sale of Investments 937,000 148,000
Gain on Solar Tax Credit 515,000 -
(Loss) on Sale of Assets (2,000 ) -
Total Other Income (Expense) 2,875,000 4,034,000
Income Before Provisions for Income Taxes 9,113,000 10,323,000
Provisions for Income Taxes
Current Expense 2,082,000 2,115,000
Deferred tax expense (benefit) (102,000 ) 650,000
Total Income Tax Expense 1,980,000 2,765,000
Net Income $ 7,133,000 $ 7,558,000
Earnings Per Share of Common Stock
Basic $ 1.46 $ 1.54
Diluted $ 1.45 $ 1.53
Weighted Average Number of Common Shares Outstanding (Basic) 4,895,349 4,913,676
Weighted Average Number of Common Shares Outstanding (Diluted) 4,916,544 4,934,176
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Statements of Comprehensive Income
For the years ended April 30, 2025 and 2024
April 30, 2025 April 30, 2024
Year ended Year ended
April 30, 2025 April 30, 2024
Net Income $ 7,133,000 $ 7,558,000
Other Comprehensive Income (Loss), Net of Tax
Unrealized gain on debt securities:
Unrealized holding gains arising during period 84,000 34,000
Income tax (expense) related to other comprehensive income (24,000 ) (10,000 )
Other Comprehensive Income 60,000 24,000
Comprehensive Income $ 7,193,000 $ 7,582,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Statements of Stockholders’ Equity
For the Years Ended April 30, 2025 and 2024
Shares Amount Shares Amount
Preferred Stock Common Stock
Class A
Shares Amount Shares Amount
Balances, April 30, 2023 4,100 $ 99,000 8,502,881 $ 850,000
Purchases of common stock - - - -
Dividend declared at $0.65 per common share outstanding - - - -
Unrealized gain (loss), net of tax effect - - - -
Net Income - - - -
Balances, April 30, 2024 4,100 99,000 8,502,881 850,000
Additional shares of preferred stock found during an audit 3,000 - -
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, 2025 4,239 $ 102,000 8,502,881 $ 850,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Statements of Stockholders’ Equity
For the Years Ended April 30, 2025 and 2024
Paid-In
Capital
Shares Amount Comprehensive
Income (Loss)
Retained
Earnings
Total
Treasury Stock
(Common Class A)
Accumulated
Other
Paid-In
Capital
Shares Amount Comprehensive
Income (Loss)
Retained
Earnings
Total
Balances, April 30, 2023 $ 1,934,000 3,572,338 $ (4,554,000 ) $ (161,000 ) $ 52,481,000 $ 50,649,000
Purchases of common stock - 33,813 (391,000 ) - - (391,000 )
Dividend declared at $0.65 per common share outstanding - - - - (3,203,000 ) (3,203,000 )
Unrealized gain (loss), net of tax effect - - - 24,000 - 24,000
Net Income - - - - 7,558,000 7,558,000
Balance, April 30, 2024 1,934,000 3,606,151 (4,945,000 ) (137,000 ) 56,836,000 54,637,000
Balance 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
Balance, April 30, 2025 $ 1,931,000 3,610,451 $ (5,016,000 ) $ (77,000 ) $ 59,072,000 $ 56,862,000
Balance $ 1,931,000 3,610,451 $ (5,016,000 ) $ (77,000 ) $ 59,072,000 $ 56,862,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Statements of Cash Flows
April 30, 2025 April 30, 2024
Year ended Year ended
April 30, 2025 April 30, 2024
Cash Flows From Operating Activities:
Net Income $ 7,133,000 $ 7,558,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 487,000 487,000
Realized (gain) on sale of investments (937,000 ) (170,000 )
Impairment on investments - 22,000
Unrealized (gain) loss on equity securities 75,000 (2,771,000 )
Impairment on investment in limited land partnership - 38,000
Provision for credit losses on accounts receivable (22,000 ) 16,000
Reserve for obsolete inventory 45,000 (21,000 )
Loss on sale of assets 2,000 -
Deferred income taxes (102,000 ) 650,000
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (768,000 ) (417,000 )
Inventories 773,000 (93,000 )
Prepaid expenses (196,000 ) 418,000
Other receivables 7,000 (7,000 )
Federal solar tax receivable (2,154,000 ) -
Increase (decrease) in:
Accounts payable 10,000 (254,000 )
Accrued expenses 34,000 41,000
Income tax payable (80,000 ) 508,000
Net cash from operating activities 4,307,000 6,005,000
Cash Flows From Investing Activities:
Proceeds from sale of assets - 8,000
(Purchase) of property and equipment (396,000 ) (378,000 )
Proceeds from sale of marketable securities 678,000 527,000
(Purchase) of marketable securities (980,000 ) (699,000 )
Distribution from investment in limited land partnership 269,000 12,000
Net cash from investing activities (429,000 ) (530,000 )
Cash Flows From Financing Activities:
(Purchase) of treasury stock (72,000 ) (391,000 )
Dividends paid (4,447,000 ) (2,915,000 )
Net cash from financing activities (4,519,000 ) (3,306,000 )
Net Change in Cash and Cash Equivalents (641,000 ) 2,169,000
Cash and Cash Equivalents, beginning of year 7,112,000 4,943,000
Cash and Cash Equivalents, end of year $ 6,471,000 $ 7,112,000
Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes paid $ 917,000 $ 1,485,000
Interest expense 6,000 -
Cash receipts for:
Income taxes $ 19,000 $ 57,000
The accompanying notes are an integral part of these financial statements.
George Risk Industries, Inc.
Notes to Financial Statements
April 30, 2025
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 credit worthiness and performs continuing credit evaluations of its customers’ financial condition. If the Company believes the extension of 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 expectation 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 $12,414 for the year ended April 30, 2025, and $34,256 for the year ended April 30, 2024. For the year ended April 30, 2025, the provision for credit losses on accounts receivable was a credit of $21,842 compared to an expense of $16,334 for the year ended April 30, 2024.
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’ credit worthiness 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.
1. Nature of Business and Summary of Significant Accounting Policies, continued
Inventories - Inventories are stated at the lower of cost or net realized 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
Cost
Cost
Dies, jigs, and molds 3-7 $ 1,876,000 $ 1,871,000
Machinery and equipment 5-10 2,961,000 2,832,000
Furniture and fixtures 5-10 222,000 222,000
Improvements 5-32 781,000 638,000
Buildings 20-39 1,203,000 1,151,000
Automotive 3-5 182,000 131,000
Software 2-5 425,000 425,000
Land N/A 87,000 80,000
Property and equipment, gross
7,737,000 7,350,000
Accumulated depreciation
(5,706,000 ) (5,347,000 )
Property and equipment, net
$ 2,031,000 $ 2,003,000
Depreciation expense of $366,000 was charged to operations for each of the years ended April 30, 2025 and 2024, respectively.
The following tables summarize key property, plant, and equipment components, by product line and corporate, for the years ended April 30, 2025 and 2024:
Schedule of Property, Plant, and Equipment Components, by Product Line and Corporate
April 30, 2025 April 30, 2024
Identifiable assets:
Security alarm products 15,085,000 15,263,000
Cable & wiring tools 1,919,000 2,082,000
Other products 1,182,000 859,000
Corporate general 45,154,000 42,576,000
Total assets $ 63,340,000 $ 60,780,000
Depreciation and amortization:
Security alarm products 219,000 202,000
Cable & wiring tools 121,000 121,000
Other products 96,000 92,000
Corporate general 51,000 72,000
Total depreciation and amortization $ 487,000 $ 487,000
Capital expenditures:
Security alarm products 236,000 321,000
Cable & wiring tools - -
Other products 18,000 20,000
Corporate general 142,000 37,000
Total capital expenditures $ 396,000 $ 378,000
1. Nature of Business and Summary of Significant Accounting Policies, continued
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 has been a total of $144,000 of additional contributions to aid in 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 are contingent on finishing wetland restoration of the land, but the LLP made distributions of the net proceeds in January 2024 in the amount of $12,000 and in July 2024 in the amount of $255,000. Upon receiving information from the LLP management team, additional details about the contingent ongoing expenses were given to GRI and it has been determined that there is a $38,000 impairment on this investment, which has been accounted for during the year ended April 30, 2024.
Intangible Assets - Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined their lives to be indefinite. The intangible asset currently being amortized is intellectual property with a useful life of 15 years. As of April 30, 2025, the Company had $907,000 of net intangible assets, compared to net intangible assets of $1,028,000 as of April 30, 2024. Amortization expense was $121,000 for each of the years ended April 30, 2025 and 2024, respectively.
As of April 30, 2025, future amortization of intangible assets is expected as follows:
Schedule of Future Amortization of Intangible Assets
Fiscal year end Amortization amount
$ 121,000
$ 121,000
$ 121,000
$ 121,000
$ 121,000
Thereafter $ 302,000
Total $ 907,000
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.
1. Nature of Business and Summary of Significant Accounting Policies, continued
Advertising - Advertising costs are expensed as incurred and are included in selling expenses. Advertising expense amounted to $145,000 and $116,000 for the years ended April 30, 2025 and 2024, 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 the future consequences of differences between financial reporting bases 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 financial statement recognition and measurement of the positions taken or expected to be taken in a tax return. For those benefits 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.
It has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2024, 2023, and prior. Based on evaluation of the 2025 transactions and events, the Company does not have any 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. 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 April 30, 2025, this is shown as a receivable of $2,154,000.
For the year ended April 30, 2025, a gain on Solar Tax Credit of $515,000 has been recognized in our condensed statements of operations.
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.
1. Nature of Business and Summary of Significant Accounting Policies, continued
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, 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 an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required.
Revenue Recognition -The Company accounts for revenue using the guidance provided by 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 the existence of an arrangement. 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.
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, 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 per the provisions in 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 receive.
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.
1. Nature of Business and Summary of Significant Accounting Policies, continued
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 under assets in 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 an enhanced disclosure of significant segment expenses on an annual basis.
Operating Segments and Related Disclosures
We manage our company as one reportable operating segment. The segment information aligns with how the Company’s Chief Operating Decision Maker (“CODM”) reviews and manages our business. The Company’s CODM is Stephanie Risk-McElroy, President and Chief Executive and Financial Officer.
Financial information and annual operating plans and forecasts are prepared and reviewed by the CODM at an entity level. The CODM assesses performance for the segment and decides how to better allocate resources based on net income that is reported on the Statements of Income and Comprehensive Income. The Company’s objective in making resource allocation decisions is to optimize the financial results. 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 through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated 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.
Subsequent Events - Management has evaluated all events or transactions that occurred after April 30, 2025 through the date of the filing. During this period, the Company did not have any material recognizable subsequent events.
2.
Inventories
Inventories at April 30, 2025 and 2024, consisted of the following:
Schedule of Inventories
Raw materials $ 9,279,000 $ 10,130,000
Work in process 776,000 753,000
Finished goods 1,097,000 1,042,000
Inventory, gross 11,152,000 11,925,000
Less: allowance for obsolete inventory (412,000 ) (367,000 )
Inventories, net $ 10,740,000 $ 11,558,000
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 August 2025 and December 2050. The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported in the respective period’s earnings. Dividend and interest income are reported as earned.
As of April 30, 2025 and 2024, investments consisted of the following:
Schedule of Investments
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
Investments at
Gross Gross
April 30, 2024 Cost Unrealized Unrealized Reported
Basis Gains Losses Value
Municipal bonds $ 7,057,000 $ 28,000 $ (100,000 ) $ 6,985,000
REITs $ 74,000 $ - $ (8,000 ) $ 66,000
Equity securities $ 17,408,000 $ 9,303,000 $ (209,000 ) $ 26,502,000
Money Markets and CDs $ 935,000 $ - $ - $ 935,000
Total $ 25,474,000 $ 9,331,000 $ (317,000 ) $ 34,488,000
Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of income.
The Company evaluates all 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 year ended April 30, 2025, while management recorded an impairment loss of $22,000 for the year ended April 30, 2024.
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, 2025, the Company had sales of equity securities which yielded gross realized gains of $1,222,000 and gross realized losses of $264,000. For the same period, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $21,000. Comparatively, the Company recorded gross realized gains on equity securities of $789,000 and gross realized losses of $613,000 for the fiscal year ending April 30, 2024. As for debt securities, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $28,000 for the fiscal year ending April 30, 2024. The gross realized loss numbers include the impaired figures listed in the previous paragraph. Additionally, proceeds from sales of securities available for sale were $678,000 and $527,000 for the years ended April 30, 2025 and 2024 respectively.
3. Investments, continued
The following table shows the investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of April 30, 2025 and 2024.
Schedule of Unrealized Loss Breakdown by Investment Type
Unrealized Loss Breakdown by Investment Type as of April 30, 2025
Schedule of Unrealized Loss Breakdown by Investment Type
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 )
Unrealized Loss Breakdown by Investment Type as of April 30, 2024
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 $ 5,897,000 $ (20,000 ) $ 773,000 $ (80,000 ) $ 6,670,000 $ (100,000 )
REITs $ - $ - $ 66,000 $ (8,000 ) $ 66,000 $ (8,000 )
Equity
securities $ 2,255,000 $ (72,000 ) $ 766,000 $ (137,000 ) $ 3,021,000 $ (209,000 )
Total $ 8,152,000 $ (92,000 ) $ 1,605,000 $ (225,000 ) $ 9,757,000 $ (317,000 )
Municipal Bonds
The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value occurs, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired as of April 30, 2025 and 2024.
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, 2025 and 2024.
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 $58,000 and $60,000 were paid during the years ending April 30, 2025 and 2024, 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, 2025 and 2024.
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 were issued but 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. A dividend for the four prior quarters and provision has been made for the full dividend in the current fiscal year.
During the fiscal year ended April 30, 2025, the Company purchased 4,300 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.
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, 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
April 30, 2024
Income Shares Per-Share
(Numerator) (Denominator) Amount
Net income $ 7,558,000
Basic EPS $ 7,558,000 4,913,676 $ 1.54
Effect of dilutive Convertible Preferred Stock - 20,500 (0.01 )
Diluted EPS $ 7,558,000 4,934,176 $ 1.53
7. Commitments, Contingencies, and Related Party Transactions
One of the directors of the board, Joel Wiens, is the principal shareholder of FirsTier Bank. 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 $5,433,000 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 $170,000 for the year ended April 30, 2024.
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.
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 year ended April 30, 2025 and 2024 consisted of the following:
Schedule of Income Tax Provision
Year Ended April 30,
Current:
Federal $ 1,542,000 1,604,000
State 540,000 511,000
Deferred:
Federal (76,000 ) 495,000
State (26,000 ) 155,000
Total income tax provision $ 1,980,000 $ 2,765,000
Reconciliation of income taxes with Federal and State taxable income:
Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income
Income before income taxes $ 9,113,000 $ 10,323,000
State income tax deduction (590,000 ) (478,000 )
Interest and dividend income (620,000 ) (489,000 )
Nondeductible expenses and timing differences 552,000 (2,379,000 )
Taxable income $ 8,455,000 $ 6,977,000
The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:
Schedule of Statutory Rate to Income Before Taxes
Income tax provision at statutory rate $ 2,575,000 $ 2,916,000
Increase (decrease) income taxes resulting from:
State income taxes (167,000 ) (135,000 )
Interest and dividend income (175,000 ) (138,000 )
Deferred taxes (102,000 ) 650,000
Other temporary and permanent differences (151,000 ) (528,000 )
Income tax expense $ 1,980,000 $ 2,765,000
Federal tax rate 28.26 % 28.25 %
State tax rate (1.83 )% (1.31 )%
Blended statutory rate 21.73 % 26.78 %
Deferred tax assets (liabilities) consist of the following components as of April 30, 2025 and 2024:
Summary of Deferred Tax Assets (Liabilities)
Deferred tax assets (liabilities):
Depreciation $ (296,000 ) $ (312,000 )
Capitalized R&D expense 380,000 $ 320,000
Inventory valuation 116,000 104,000
Allowance for doubtful accounts 3,000 10,000
Accrued vacation 36,000 37,000
Accumulated unrealized (gain)/loss on investments (2,549,000 ) (2,547,000 )
Net deferred tax assets (liabilities) $ (2,310,000 ) $ (2,388,000 )
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, 2025 and 2024, the Company had uninsured balances of $5,183,000, and $6,494,000, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal.
Management also has cash funds with Wells Fargo Bank with uninsured balances of $881,000 and $151,000 for the years ending April 30, 2025 and 2024, respectively. Management believes that this financial institution is financially sound and 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, 2025 and 2024, respectively. This distributor accounted for 56% of accounts receivable at both years ended April 30, 2025 and 2024, respectively.
Security switch sales made up 89% of total sales for the fiscal year ending April 30, 2025 and 90% of total sales for the fiscal year ending April 30, 2024.
10. Fair Value Measurements
The carrying value of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. The fair value of our investments is determined utilizing market-based information. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.
US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 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 upon quoted prices for identical instruments traded in active markets.
Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques.
10. Fair Value Measurements, continued
Investments and Marketable Securities
As of April 30, 2025 and 2024, 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 the majority of 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 basis and a non-recurring basis by level within the fair value hierarchy. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
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, 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
Level 1 Level 2 Level 3 Total
Assets Measured at Fair Value on a Recurring Basis as of April 30, 2024
Level 1 Level 2 Level 3 Total
Assets:
Municipal Bonds - $ 6,985,000 - $ 6,985,000
REITs - $ 66,000 - $ 66,000
Equity Securities $ 26,502,000 - - $ 26,502,000
Money Markets and CDs $ 935,000 - - $ 935,000
Total fair value of assets measured on a recurring basis $ 27,437,000 $ 7,051,000 - $ 34,488,000

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
There were no disagreements with accountants on accounting and financial disclosure.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A Controls and Procedures
Evaluation of disclosure controls and procedures:
Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of April 30, 2025 our president and chief executive officer (also working as our chief financial officer) has concluded that our disclosure controls and procedures were effective such that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and (ii) accumulated and communicated to our management, including our chief executive officer (also working as our chief financial officer), as appropriate to allow timely decisions regarding disclosure. A control system cannot provide absolute assurance, however, that the objectives of the control systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
Internal control over financial reporting:
The Company’s management is responsible for establishing and maintaining adequate internal controls over financial reporting for the Company. Due to limited resources, Management conducted an evaluation of internal controls based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). For the year ended April 30, 2024, Management’s evaluation determined that our internal control over financial reporting was ineffective due to the material weakness discussed below.
Management’s assessment identified the following material weakness in internal control over financial reporting for the year ended April 30, 2024:
● The small size of our Company limits our ability to achieve the desired level of separation of duties for proper internal controls and financial reporting, particularly as it relates to financial reporting to assure material disclosures or implementation of newly issued accounting standards are included. A secondary review of annual and quarterly filings does occur with an outside party. Due to the departure of the Controller, the current CEO and CFO roles are being fulfilled by the same individual. We do not have an audit committee. We do not believe we have met the full requirement for separation of duties for financial reporting purposes.
The following steps were taken to mitigate the above material weakness during the year ended April 30, 2025:
● The Company hired a part-time controller in March 2023;and in March 2024 this controller became a full-time position with the Company. This hire has enabled more separation of duties within the accounting department and provided an opportunity for a second internal review of financial information.
● We continue to have our quarterly and annual financial statements reviewed by a third-party CPA. This third party ensures we have fulfilled our material disclosures and that newly issued accounting standards have been reviewed and addressed if necessary.
● We have increased our knowledge training, and documentation around internal controls over financial reporting and will continue to do so.
A material weakness in internal control over financial reporting is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of our financial reporting.
Management believes that the steps the Company has taken to mitigate the 2024 material weakness have improved our internal controls and believes that the material weakness no longer exists as of April 30, 2025.
Because of the mitigation of the material weakness in internal control over financial reporting described above, the Company’s management has concluded that, as of April 30, 2025, the Company’s internal control over financial reporting was effective based on the criteria in Internal Control - Integrated Framework issued by the COSO.
We will continue to follow the standards for the Public Company Accounting Oversight Board (United States) for internal control over financial reporting to include procedures that:
● Pertain to the maintenance of records in reasonable detail that fairly reflect the transactions and dispositions of the Company’s assets;
● Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and
● Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
This annual report does not include an attestation report of the Corporation’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Corporation’s independent registered public accounting firm pursuant to Section 404(c) of the Sarbanes-Oxley Act of 2002, as amended, that permit the Corporation to provide only the management’s report in this annual report.

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ITEM 9B. OTHER INFORMATION
Item 9B Other Information
None.
Part III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10 Directors and Executive Officers and Corporate Governance
(a & b) Identification of Directors and Executive Officers
All the executive officers of the corporation serve at the pleasure of the board of directors and do not have fixed terms.
The following information as of April 30, 2025, is furnished with respect to each director and executive officer:
Name
Principal Occupation or Employment
Age
Director or Officer Since
Stephanie M. Risk-McElroy
Chairman of the Board, Chief Executive Officer, and Chief Financial Officer
August 8,1999
Ryan T. McElroy
Secretary/Treasurer
December 13, 2023
Donna Debowey
Director, retired GRI plant manager
July 12, 2005
Joel H. Wiens
Director, FirsTier Banks
September 6, 2007
Bonita P. Risk
Director, Stock Transfer Agent at GRI
March 15, 2013
Jerry Knutsen
Director, retired business owner
August 29, 2016
The following director compensation table is furnished with respect to each director that served during the year ended April 30, 2025:
Name Director’s Fees Paid Stock Awards Option Awards Non-equity incentive plan compen-sation Non-qualified deferred compensation earnings Total
Stephanie Risk-McElroy (1) - - - - - -
Sharon Westby (1) - - - - - -
Ryan T. McElroy (1) - - - - - -
Donna Debowey (2) $ 600 - - - - $ 600
Joel H. Wiens (2) $ 400 - - - - $ 400
Bonita P. Risk (1) - - - - - -
Jerry Knutsen $ 400 - - - - $ 400
The inside directors (1), or employees of the Company, do not receive additional compensation for their services. Outside directors (2) are paid $200 per meeting for their services.
(c) Identification of Certain Significant Employees
None.
(d) Family Relationships
Stephanie Risk-McElroy and Bonita Risk have a daughter - mother relationship. Stephanie Risk-McElroy and Ryan McElory are married. Bonita Risk and Ryan McElroy are mother-in-law/son-in-law, respectively.
(e) Business Experience of Directors and Executive Officers
Stephanie Risk-McElroy, Chairman of the Board, Chief Executive Officer, and Chief Financial Officer, has over thirty years of experience in the accounting field. Mrs. Risk-McElroy graduated from Hastings College with a degree in Accounting. Stephanie worked for Platte Valley Sales from May 1990 until January 1997 as a staff accountant. In 1997, she pursued her career with an accounting manager position at Kershner’s Auto Korner in Hastings, NE. She joined the accounting staff at GRI in 1999 and then was promoted to CFO upon retirement of the prior CFO. Upon the death of her father, Ken R. Risk, in February 2013, she was appointed to the position of Chairman of the Board and Chief Executive Officer.
Mrs. Risk-McElroy serves on the Board of Directors of GRI, as a direct link to the financial condition of the Company. She and her staff oversee all the accounting obligations of the Company. She has knowledge and experience in business outside of the Company that makes her an asset to the Board. And as President of the Company, she oversees all of the day-to-day operations as well.
Ryan McElroy, the Corporate Secretary, started his career by working on the family farm and ranch. In 1993 he attended college in McCook, NE for Criminal Justice and worked at the local Radio Shack, moving up to being responsible for opening/closing duties. After college he moved back to the Sidney, NE area and started working at Wheelers/Country General as a tire tech and soon was moved up to opening/closing duties. He then became employed as a Jailer with the Cheyenne County Sheriff’s Office and became a Deputy a few years later. He went back to college in Sidney and studied Information Technology (IT) while working for the Cheyenne County Community Center. He then went to a local parts store as a counter man then moved up to opening/closing and order entry. He was transferred to Chappel, NE store where he became Manager until a position opened at GRI as the Purchasing Manager and worked his way up to Vice President of Operations.
Donna Debowey, Director, worked in various retail stores and restaurants until she started at GRI in 1968. She started on the production line, but quickly worked her way up the ranks. She has been a Production Line Supervisor, Director of Quality Control and was named Plant Manager and Senior Vice President in 1998. She held that position until her retirement in 2003.
Mrs. Debowey made the transition from employee of GRI to a member of the Board of Directors with no hesitation after her retirement. She brings her 50+ years of experience in the industry to the table and has a vested interest in seeing the continued success of the Company that she helped to build.
Joel H. Wiens, Director, is an entrepreneur with many business interests. He is a director and principal shareholder of FirsTier Banks Nebraska/Wyoming, director of FirsTier II BanCorporation (which owns FirsTier Bank Nebraska/Wyoming), Chairman of Rite-A-Way Industries (lodging and hospitality industries), real estate investments, and ranching and livestock.
Mr. Wiens took his place on the Board of Directors when his predecessor Mike Nelson, (who is affiliated with Mr. Wiens’ financial institutions) retired from the Board to take another position within the banks and moved away. Joel’s knowledge and experience in business and industry span 60+ years and serves as a valuable asset to GRI.
Bonita P. Risk, Director, attended Wayne State College, in Wayne, Nebraska. Upon returning back home to Columbus, NE, she worked in factory positions. Upon her marriage to Ken Risk, she became a homemaker, raising 3 children and working at several sales positions. In 1981, she and Ken started Platte Valley Sales in Hastings, Nebraska, and her expertise was in accounting and sales. For 8 years, she ran the Hastings business while Ken devoted his time to both GRI in Kimball and Platte Valley Sales in Hastings. Ken and Bonita moved to Kimball in 1997. In 1998, she began at GRI in sales support. She continues in sales support and became the Company stock transfer agent in 2004 upon the retirement of Eileen Risk and is an assistant to the chief financial officer.
Jerry Knutsen, Director, has lived in Kimball, Nebraska most of his life. He left the community for a few years to attend the University of Nebraska at Lincoln. Before his retirement, Jerry owned and operated several businesses over his career, including Knutsen Oil, Inc., Marv’s LP Gas, Inc., and Jerry Knutsen, Inc., and he co-owned Kimball Ford-Lincoln-Mercury. He served 24 years and held several positions on the school board in Kimball, NE. Mr. Knutsen is a past member and president of The Nebraska Propane Gas Association and The Nebraska Petroleum Marketers & Convenience Store Association. Other boards he is presently serving on include the Kimball Schools Foundation Board of Directors and Kimball Health Services Board of Trustees.
(f) Involvement in Certain Legal Proceedings
None.
(g) Promoters and Control Persons
None.
Compliance with Section 16(a) of the Securities Exchange Act of 1934
Section 16(a) of the Exchange Act requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports that they file.
Based solely on our review of copies of the Section 16(a) reports filed for the fiscal year ended April 30, 2025, we believe that all filing requirements applicable to our officers, directors, and greater than 10% beneficial owners were complied with.
Code of Ethics and Code of Business Conduct
The Company does not have a written code of ethics at this time. The Company is a small business and employees know that the President of the Company must approve all material business. The Company also has checks and balances to make sure that there is not any fraud or illegal activities taking place.
Corporate Governance
Nominating and Compensation Committees
We do not have standing nominating or compensation committees, or committees performing similar functions. Our Board of Directors believes that it is not necessary to have a standing compensation committee at this time because our Board of Directors adequately performs the functions of such committees.
Our Board of Directors also is of the view that it is appropriate for us not to have a standing nominating committee because our Board of Directors has performed and will perform adequately the functions of a nominating committee. Our Board of Directors has not adopted a charter for the nomination committee. There have not been any defined policy or procedure requirements for stockholders to submit recommendations or nomination for directors. Our Board of Directors does not believe that a defined policy with regard to the consideration of candidates recommended by stockholders is necessary at this time because we believe that, given the early stages of our development, a specific nominating policy would be premature and of little assistance until our business operations are at a more advanced level.
Audit Committee
We do not have a standing audit committee at the present time. Our Board of Directors has determined that we do not have a board member that qualifies as an “audit committee financial expert” as defined in Item 401(h) of Regulation S-K, nor do we have a board member that qualifies as “independent” as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.
Other Committees
All proceedings of our Board of Directors for the year ended April 30, 2025, were conducted by resolutions consented to in writing by our directors and filed with the minutes of the proceedings of the Board of Directors. Our Company currently does not have any committees.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11 Executive Compensation
The following table sets forth certain information regarding the compensation paid to or accrued by the Company to executive officers for services rendered in all capacities during each of the Company’s fiscal years ended April 30, 2025 and 2024.
Name and principal position Year Salary Bonus Stock Awards Option Awards Non-Equity Incentive Plan Compen-sation Change in Pension Value and Non-qualified Deferred Compen-sation Earnings All Other Compen-sation Total
Bonita Risk, Director, $ 47,000 $ - - - - - $ 117,000 $ 164,000
Shareholder, Employee $ 44,000 $ - - - - - $ 147,000 $ 191,000
Stephanie Risk-McElroy, $ 113,000 $ - - - - - $ 98,000 $ 211,000
CEO/CFO, Director, Shareholder $ 110,000 $ - - - - - $ 66,000 $ 176,000
Scott McMurray, $ 59,000 $ - - - - - $ 110,000 $ 169,000
Director of Sales $ 57,000 $ - - - - - $ 101,000 $ 158,000
Bonita Risk, Stephanie Risk-McElroy, and Scott McMurray receive a base salary and bonus/commission based on a percentage of sales for the year.
There were no other officers compensated in excess of $100,000 for the fiscal years ended April 30, 2025 and 2024.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table sets forth certain information regarding our Common Stock beneficially owned as of April 30, 2025, for (i) each stockholder known to be the beneficial owner of 5% or more of our outstanding Common Stock, (ii) each executive officer and director, and (iii) all executive officers and directors as a group. In general, a person is deemed to be a beneficial owner of a security if that person has or shares the power to vote or direct the voting of such security, or the power to dispose or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which the person has the right to acquire beneficial ownership within 60 days. Shares of Common Stock subject to options, warrants or convertible securities exercisable or convertible within 60 days are deemed outstanding for computing the percentage of the person or entity holding such options, warrants or convertible securities but are not deemed outstanding for computing the percentage of any other person. Percentages are determined based on 4,892,430 shares of Common Stock of the Company issued and outstanding and less treasury shares as of April 30, 2025. To the best of our knowledge, subject to community and marital property laws, all persons named have sole voting and investment power with respect to such shares, except as otherwise noted.
Name and Address of Beneficial Owner (1) Number of Shares of Common Stock (2) % of Class of Stock Outstanding (3)
Executive Officers and Directors:
Bonita Risk - Director 2,947,128 60.24 %
The above director has beneficial ownership over the Kenneth Risk Trust that owns 2,187,056 shares, Bonita Risk Family Irrevocable Trust that owns 732,470 shares, and 27,602 shares owned personally. As a result, combined, they have voting and shared dispositive control.
Stephanie M. Risk-McElroy Chairman, CEO, & CFO 1,775 Less than 1%
Donna Debowey - Director Less than 1%
All Officers and Directors as a group 2,949,403 60.29 %
(1) Unless otherwise indicated, the address of the named beneficial owner is George Risk Industries, Inc., 802 S. Elm St., Kimball, NE 69145.
(2) Security ownership information for named beneficial owners (other than executive officers and directors of the Company) is taken from statements filed with the Securities and Exchange Commission pursuant to information made known by the Company and from the Company’s transfer agent.
(3) Based on the net shares outstanding as of April 30, 2025. This consists of Common Shares issued and outstanding (8,502,881) less treasury shares (3,610,451).
Changes in Control
We are not aware of any arrangements, including any pledge by any person of our securities, the operation of which may result in a change in control of the Company.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13 Certain Relationships and Related Transactions, and Director Independence
During each of three years ended April 30, 2025, 2024, and 2023, the Company executed transactions with related entities and individuals. Each of the transactions was in terms at least as favorable as could be obtained from unrelated third parties.
Related Party
Bank Balances
Joel Wiens, Director $ 5,339,553 $ 6,711,558 $ 4,636,584
Interest Income
Joel Wiens, Director $ 214,538 $ 170,187 $ 102,713

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14 Principal Accountant Fees and Services
1) Audit Fees
For each of the last two fiscal years the Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for the audit of our annual financial statements and review of our financial statements for Form 10-Q. The amounts are listed below:
FYE 2025 $ 105,381 Haynie & Company
$ 2,411 Carey Schroeder, CPA
FYE 2024 $ 84,500 Haynie & Company
$ 1,613 Carey Schroeder, CPA
2) Audit-Related Fees
The Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for the audit of the Company’s employee benefit plan. The amounts are listed below:
FYE None Haynie & Company
An audit of the company’s 401K was no longer required.
FYE 2024 $ 10,500 Haynie & Company
3) Tax Fees
The Company incurred aggregate fees or expenses for professional services rendered by tax accountants for tax compliance, tax advice, and tax planning for the last two fiscal years.
FYE 2025 $ 4,333 Haynie & Company
$ 5,610 Tax Resources Group, Inc.
FYE 2024 $ 9,100 Haynie & Company
$ 4,840 Tax Resources Group, Inc.
4) All Other Fees
The Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for restatement of some of the Company’s 10-Qs and 10-K. The amounts are listed below:
FYE None
FYE None
5) The Board of Directors considered whether, and determined that, the auditor’s provisions of non-audit services were compatible with maintaining the auditor’s independence. All the services described above were approved by the Board of Directors pursuant to its policies and procedures.
Part IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15 Exhibits and Financial Statement Schedules
3.(1).a
Articles of Incorporation-Filed as Exhibit 5 to the Registrant’s Form 10-K for the fiscal year ended April 10, 1970, and incorporated by reference herein
3.(i).b
Certificate of Amendment to the Articles of Incorporation of the Registrant-Filed as Exhibit 1.2 to the Registrant’s Form 10-K for the fiscal year ended April 30, 1971, and incorporated by reference herein
3.(ii).c
By-laws-Filed as Exhibit 1.3 to the Registrant’s Form 10-K for the fiscal year ended April 10, 1971, and incorporated by reference herein
10.1
Vendor agreement dated as of February 16, 2011 between Honeywell International, Inc., acting through the ADI business of its Security Group (“ADI”) and George Risk Industries, Inc. - Filed as Exhibit 10.1 to the Registrant’s Form 10-K for the fiscal year ended April 30, 2012, and incorporated by reference herein. *
31.1
Certification pursuant to Rule 13a-14(a) of the Chief Executive Officer (Principal Financial and Accounting Officer)
32.1
Certification pursuant to 18 U.S.C. 1350 of the Chief Executive Officer (Principal Financial and Accounting Officer)
101.
INS Inline XBRL Instance Document
101.
SCH Inline XBRL Taxonomy Extension Schema Document
101.
CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.
DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.
LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.
PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.
Cover Page Interactive Data File (embedded within the Inline XBRL document)
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* Portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934.