UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM ~~10-Q~~10-Q/A

Amendment No. 2

(Mark One)

~~[X]~~

~~Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934~~

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the ~~quarter~~quarterly period ended ~~January~~July 31, ~~2018~~2019

~~[ ]~~

~~Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934~~

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ________________

Commission File Number: 000-05378

GEORGE RISK INDUSTRIES, INC.

(Exact name of ~~small business issuer~~registrant as specified in its charter)

Colorado

84-0524756

(State or other jurisdiction

of ~~incorporation)~~incorporation or organization)

(~~IRS~~I.R.S. Employers

Identification No.)

802 South Elm St. Kimball, NE
~~Kimball, NE~~	69145
(Address of principal executive offices)		(Zip Code)

(308) 235-4645

(Registrant’s telephone number, including area code)

~~Check~~Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.10 par value	RSKIA	OTC Markets
Convertible Preferred Stock, $20 stated value	RSKIA	OTC Markets

Indicate by check mark whether the ~~issuer~~registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

~~Yes [X]~~

~~No [ ]~~

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (&232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

~~Yes [ ]~~

~~No [X]~~

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a small reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated ~~filer” and~~filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer [ ]		Accelerated filer [ ]
	Non-accelerated filer [ ]		Smaller reporting company [X]
			Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes [ ]No [X]

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of the Registrant’s Common Stock outstanding, as of ~~March 16, 2018,~~September 18, 2019 was ~~4,968,447.~~4,952,110.

~~Transitional Small Business Disclosure Format:Yes [X] No [ ]~~

EXPLANATORY NOTE

This Amendment No. 2 to Form 10-Q, (“Amendment”), amends the Quarterly Report on Form 10-Q for the three months ended July 31, 2019 that we originally filed with the Securities and Exchange Commission, or the Commission, on September 18, 2019, or the Original Filing, in connection with our failure to give effect to the implementation of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) in the financial statements included in the Original Filing.

All amendments and restatements to the financial statements are non-cash in nature.

Restatement

As further discussed in Note 9 to our unaudited financial statements in Part I, Item 1, “Financial Statements” of the Amendment #2, on April 1, 2020, we concluded that certain disclosures necessary to fairly explain the changes in the financial statements presented were excluded in our previous filings and that we would we would restate our previously issued financial statements as of July 31, 2019 and for the three months ended July 31, 2018 and 2019, as set forth in the Amended Filing to disclose the in connection with our failure to give effect to the implementation of ASU 2016-01 in the financial statements included in the Original Quarterly Report on Form 10-Q.

Amendment

The purpose of this Amendment is to restate our previously issued unaudited financial statements and related disclosures as of July 31, 2019 and for the three months ended July 31, 2018 and 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to reflect the correction of the error described above.

Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment, along with Amendment #1 (“Amendments”), does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Filing and Amendments.

See Note 9 to the financial statements included in Item 1 for additional information and a reconciliation of the previously reported amounts to the restated amounts.

Items Amended in this Filing

For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied:

Part I, Item 1. Financial Statements

Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Part I, Item 4. Controls and Procedures

In accordance with applicable Commission rules, this Amendment includes new certifications required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, from our Chief Executive Officer and Chief Financial Officer dated as of the date of filing of this Amendment.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

~~Item 1.~~ITEM 1: Financial Statements

The restated unaudited financial statements for the ~~three and nine-month~~three-month period ended ~~January~~July 31, ~~2018,~~2019 are attached hereto.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

					July 31, 2019		April 30, 2019
	January 31, 2018		April 30, 2017		(unaudited)
	(unaudited)				(Restated)		(Restated)
ASSETS
Current Assets:
Cash and cash equivalents	$	3,952,000	$	6,456,000	$	5,667,000	$	4,873,000
Investments and securities		27,496,000		26,382,000
Investments and securities, at fair value						27,657,000		27,291,000
Accounts receivable:
Trade, net of $16,422 and $2,425 doubtful account allowance		2,471,000		1,848,000
Trade, net of $8,764 and $9,321 doubtful account allowance						2,534,000		2,696,000
Other		2,000		3,000		4,000		6,000
Income tax overpayment		474,000		253,000		—		259,000
Inventories, net		3,594,000		2,304,000		4,863,000		4,583,000
Prepaid expenses		487,000		193,000		320,000		282,000
Total Current Assets	$	38,476,000	$	37,439,000		41,045,000		39,990,000

Property and Equipment, net, at cost		948,000		739,000		1,095,000		984,000

Other Assets
Investment in Limited Land Partnership, at cost		273,000		273,000		293,000		293,000
Projects in process		—		13,000		1,000		117,000
Other		77,000		—		3,000		3,000
Total Other Assets	$	350,000	$	286,000		297,000		413,000

Intangible Assets, net	$	1,794,000		—
Intangible assets, net						1,609,000		1,640,000

TOTAL ASSETS	$	41,568,000	$	38,464,000	$	44,046,000	$	43,027,000

See accompanying notes to the condensed financial ~~statements.~~statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

(continued)

							July 31, 2019			April 30, 2019
	January 31, 2018			April 30, 2017			(unaudited)
	(unaudited)						(Restated)			(Restated)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable, trade	$	308,000		$	69,000		$	261,000		$	206,000
Dividends payable		1,580,000			1,416,000			1,714,000			1,714,000
Accrued expenses:
Payroll and related expenses		178,000			308,000			287,000			356,000
Property taxes		3,000			—			3,000			—
Income tax payable								30,000			—
Total Current Liabilities	$	2,069,000		$	1,793,000			2,295,000			2,276,000

Long-Term Liabilities
Deferred income taxes		1,902,000			906,000			1,240,000			1,198,000
Total Long-Term Liabilities	$	1,902,000		$	906,000			1,240,000			1,198,000

Total Liabilities								3,535,000			3,474,000
							��
Commitments and contingencies								—			—

Stockholders’ Equity
Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding		99,000			99,000			99,000			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			850,000			850,000
Additional paid-in capital		1,934,000			1,736,000			1,934,000			1,934,000
Accumulated other comprehensive income		2,623,000			1,239,000			49,000			14,000
Retained earnings		36,232,000			35,981,000			41,859,000			40,883,000
Less: treasury stock, 3,533,934 and 3,557,606 shares, at cost		(4,141,000	)		(4,140,000	)
Less: treasury stock, 3,550,571 and 3,544,271 shares, at cost								(4,280,000	)		(4,227,000	)
Total Stockholders’ Equity	$	37,597,000		$	35,765,000			40,511,000			39,553,000

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY	$	41,568,000		$	38,464,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							$	44,046,000		$	43,027,000

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

FOR THE THREE MONTHS ENDED JULY 31, 2019 AND 2018

(Unaudited)

	Three months			Nine months			Three months			Nine months			July 31, 2019			July 31, 2018
	ended			ended			ended			ended			(Restated)			(Restated)
	Jan 31, 2018			Jan 31, 2018			Jan 31, 2017			Jan 31, 2017
Net Sales	$	3,260,000		$	8,597,000		$	2,645,000		$	8,194,000		$	3,552,000		$	3,429,000
Less: Cost of Goods Sold		(1,826,000	)		(4,337,000	)		(1,229,000	)		(3,899,000	)		(1,769,000	)		(1,801,000	)
Gross Profit	$	1,434,000		$	4,260,000		$	1,416,000		$	4,295,000			1,783,000			1,628,000

Operating Expenses
Operating Expenses:
General and Administrative		313,000			833,000			223,000			664,000			297,000			286,000
Sales		512,000			1,371,000			461,000			1,432,000			557,000			555,000
Engineering		22,000			69,000			17,000			59,000			14,000			9,000
Rent Paid to Related Parties		5,000			14,000			5,000			14,000			5,000			5,000
Total Operating Expenses	$	852,000		$	2,287,000		$	706,000		$	2,169,000			873,000			885,000

Income From Operations		582,000			1,973,000			710,000			2,126,000			910,000			773,000

Other Income (Expense)
Other		—			3,000			1,000			11,000			1,000			3,000
Dividend and Interest Income		376,000			811,000			332,000			650,000			193,000			193,000
Gain (Loss) on Investments		123,000			94,000			51,000			136,000
Gain (Loss) on Sale of Assets		—			4,000			—			—
	$	499,000		$	912,000		$	384,000		$	797,000
Unrealized gain (loss) on equity securities														145,000			432,000
Gain (Loss) on Sale of Investments														49,000			(68,000	)
Total Other Income														388,000			560,000

Income Before Provisions for Income Taxes		1,081,000			2,885,000			1,094,000			2,923,000			1,298,000			1,333,000

Provisions for Income Taxes:
Provisions for Income Taxes
Current Expense		281,000			852,000			313,000			896,000			294,000			247,000
Deferred Tax Expense (Benefit)		9,000			1,000			(11,000	)		(24,000	)
Deferred tax expense														28,000			161,000
Total Income Tax Expense	$	290,000		$	853,000		$	302,000		$	872,000			322,000			408,000

Net Income	$	791,000		$	2,032,000		$	792,000		$	2,051,000		$	976,000		$	925,000

Cash Dividends
Common Stock ($0.36 per share)	$	—		$	1,780,000
Common Stock ($0.35 per share)							$	—		$	1,758,000
Basic Earnings Per Share of Common Stock													$	0.20		$	0.19
Diluted Earnings Per Share of Common Stock													$	0.20		$	0.19

Income Per Share of Common Stock
Basic	$	0.16		$	0.41		$	0.16		$	0.41
Diluted	$	0.16		$	0.41		$	0.16		$	0.41

Weighted Average Number of Common
Shares Outstanding
Basic		4,969,013			4,955,725			4,945,972			4,996,453
Diluted		4,989,513			4,976,225			4,966,472			5,016,953
Weighted Average Number of Common Shares Outstanding														4,956,389			4,967,580
Weighted Average Number of Shares Outstanding (Diluted)														4,976,889			4,988,080

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED ~~STATEMENT~~STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JULY 31, 2019 AND 2018

(Unaudited)

Three months Nine months Three months Nine months
ended ended ended ended
Jan 31, 2018 Jan 31, 2018 Jan 31, 2017 Jan 31, 2017
Net Income $ 791,000 $ 2,032,000 $ 792,000 $ 2,051,000

Other Comprehensive Income, Net of Tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period 1,247,000 2,585,000 570,000 796,000
Reclassification adjustment for gains (losses) included in net income (88,000 ) (205,000 ) (5,000 ) (88,000 )
Income tax benefit (expense) related to other comprehensive income (485,000 ) (995,000 ) (236,000 ) (296,000 )
Other Comprehensive Income 674,000 1,385,000 329,000 412,000

Comprehensive Income $ 1,465,000 $ 3,417,000 $ 1,121,000 $ 2,463,000

	July 31, 2019			July 31, 2018
	(Restated)			(Restated)

Net Income	$	976,000		$	925,000

Other Comprehensive Income (Loss), Net of Tax
Unrealized gain (loss) on securities:
Unrealized holding gains arising during period		49,000			220,000
Income tax expense related to other comprehensive income		(14,000	)		(63,000	)
Other Comprehensive Income (Loss)		35,000			157,000

Comprehensive Income (Loss)	$	1,011,000		$	1,082,000

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED ~~STATEMENT~~STATEMENTS OF ~~CASH FLOWS~~ STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JULY 31, 2019 and 2018

(Unaudited)

Nine months Nine months
ended ended
Jan 31, 2018 Jan 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,032,000 $ 2,051,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 163,000 138,000
(Gain) loss on sale of investments (117,000 ) (149,000 )
Impairments on investments 23,000 13,000
Reserve for bad debts 13,000 —
Reserve for obsolete inventory — 5,000
Deferred income taxes 1,000 (24,000 )
(Gain) loss on sale of assets (4,000 ) —
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (636,000 ) 163,000
Inventories (1,291,000 ) 426,000
Prepaid expenses (359,000 ) (48,000 )
Other receivables 2,000 (5,000 )
Income tax overpayment (221,000 ) (43,000 )
Increase (decrease) in:
Accounts payable 239,000 20,000
Accrued expenses (127,000 ) (72,000 )
Net cash provided by (used in) operating activities $ (282,000 ) $ 2,475,000

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets 4,000 —
(Purchase) of property and equipment (342,000 ) (146,000 )
Proceeds from sale of marketable securities 2,013,000 586,000
(Purchase) of marketable securities (653,000 ) (668,000 )
(Purchase) of intangible assets (1,624,000 ) —
(Purchase) of long-term investment — (20,000 )
Net cash provided by (used in) investing activities $ (602,000 ) $ (248,000 )

CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock (3,000 ) (551,000 )
Dividends paid (1,617,000 ) (1,596,000 )
Net cash provided by (used in) financing activities $ (1,620,000 ) $ (2,147,000 )

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (2,504,000 ) $ 80,000

Cash and Cash Equivalents, beginning of period $ 6,456,000 $ 5,918,000
Cash and Cash Equivalents, end of period $ 3,952,000 $ 5,998,000

Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes $ 1,320,000 $ 1,059,000
Interest paid $ 0 $ 0
Cash receipts for:
Income taxes $ 253,000 $ 125,000

Supplemental Disclosure of Noncash Investing and Financing Activities:
Issuance of treasury stock as part of asset acquisition $ 200,000 $ 0

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, April 30, 2019 (Restated)		4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—

Unrealized gain (loss), net of tax effect		—		—		—		—

Net Income		—		—		—		—

Balances, July 31, 2019 (Restated)		4,100	$	99,000		8,502,881	$	850,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, April 30, 2018, as previously reported		4,100	$	99,000		8,502,881	$	850,000

Cumulative effect of restatement on prior periods, for adoption of ASU 2016-01		—		—		—		—

Balance at May 1, 2018 after adoption of ASU 2016-01, as restated		—		—		—		—

Purchases of common stock		—		—		—		—

Unrealized gain (loss), net of tax effect		—		—		—		—

Net Income		—		—		—		—

Balances, July 31, 2018 (Restated)		4,100	$	99,000		8,502,881	$	850,000

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITIY

FOR THE THREE MONTHS ENDED JULY 31, 2019 and 2018

(Unaudited)

							Accumulated
		Treasury Stock					Other
Paid-In		(Common Class A)					Comprehensive		Retained
Capital		Shares		Amount			Income		Earnings		Total
$	1,934,000		3,544,271	$	(4,227,000	)	$	14,000	$	40,883,000	$	39,553,000

	—		6,300		(53,000	)		—		—		(53,000	)

	—		—		—			35,000		—		35,000

	—		—		—			—		976,000		976,000

$	1,934,000		3,550,571	$	(4,280,000	)	$	49,000	$	41,859,000	$	40,511,000

							Accumulated
		Treasury Stock					Other
Paid-In		(Common Class A)					Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings		Total
$	1,934,000		3,534,784	$	(4,148,000	)	$	2,249,000		$	36,746,000	$	37,730,000

								(2,424,000	)		2,424,000		—

	1,934,000		3,534,784		(4,148,000	)		(175,000	)		39,170,000		37,730,000

	—		650		(5,000	)		—			—		(5,000	)

	—		—		—			157,000			—		157,000

	—		—		—			—			925,000		925,000

$	1,934,000		3,535,434	$	(4,153,000	)	$	(18,000	)	$	40,095,000	$	38,807,000

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JULY 31, 2019 AND 2018

(Unaudited)

	July 31, 2019			July 31, 2018
	(Restated)			(Restated)
Cash Flows from Operating Activities:
Net Income	$	976,000		$	925,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		89,000			83,000
(Gain) loss on sale of investments		(83,000	)		68,000
Impairments on investments		34,000			—
Unrealized (gain) loss on equity securities		(145,000	)		(432,000	)
Reserve for bad debts		(2,000	)		3,000
Reserve for obsolete inventory		8,000			6,000
Deferred income taxes		28,000			161,000
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		163,000			234,000
Inventories		(288,000	)		(389,000	)
Prepaid expenses		79,000			166,000
Employee receivables		2,000			—
Income tax overpayment		—			244,000
Increase (decrease) in:
Accounts payable		55,000			(7,000	)
Accrued expenses		(66,000	)		(172,000	)
Income tax payable		289,000			—
Net cash provided by operating activities		1,139,000			890,000

Cash Flows From Investing Activities:
(Purchase) of property and equipment		(169,000	)		—
Proceeds from sale of marketable securities		9,000			2,000
(Purchase) of marketable securities		(132,000	)		(233,000	)
Net cash (used in) investing activities		(292,000	)		(231,000	)

Cash Flows From Financing Activities:
(Purchase) of treasury stock		(53,000	)		(5,000	)
Dividends paid		—			(1,000	)
Net cash (used in) financing activities		(53,000	)		(6,000	)

Net Increase in Cash and Cash Equivalents	$	794,000		$	653,000

Cash and Cash Equivalents, beginning of period	$	4,873,000		$	4,294,000
Cash and Cash Equivalents, end of period	$	5,667,000		$	4,947,000

Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes paid	$	0		$	0
Interest paid	$	0		$	1,000

See accompanying notes to the condensed financial statements

GEORGE RISK INDUSTRIES, INC.

NOTES TO RESTATED CONDENSED FINANCIAL STATEMENTS

~~JANUARY~~JULY 31, ~~2018~~2019

Note 1:Unaudited Interim Financial Statements

The accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, ~~2017~~2019 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year.

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.

Recently Issued Accounting Pronouncements —In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to provide a robust framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance. This update is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is evaluating the impact of this update on the Company’s financial statements.

In February of 2016, the FASB issued ASU 2016-02,~~Leases~~ “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ~~Under~~ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new ~~guidance,~~leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees ~~will be required~~and lessors from having to ~~recognize so-called right-of-use assets and liabilities for most~~provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases ~~having lease terms~~standard. The Company has adopted the ASUs in the first quarter of ~~12 months or more. This update is effective in annual reporting periods beginning after December 31, 2019~~fiscal 2020 and the ~~interim periods starting thereafter. The Company is evaluating~~Company’s accounting systems have been upgraded to comply with the ~~impact~~requirements of ~~this update~~the new standard, however, the adoption of ASU 2016-02 did not have a material impact on the Company’s financial statements and related disclosures because leases are not material to the financial statements.

In ~~February of~~August 2018, the FASB issued ASU ~~2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under this update, companies have~~2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the option to reclassify stranded tax effects caused by US Tax Cuts and Jobs Act (TCJA) from accumulated other comprehensive income (AOCI) to retained earnings. Under current US GAAP, effects from a change in tax law is recorded as a component of the income tax provision related to continuing operations in the period of enactment, even if the deferred taxes were established for a financial statement component not part of continuing operations, such as accumulated other comprehensive income (AOCI). Adopting of this standard will remove tax effects stranded in AOCI by the tax law enactment. Adoption of this ASU is optional. This updatedisclosure requirements on fair value measurements. The updated guidance is effective ~~in annual reporting~~for fiscal years, and interim periods within those fiscal years, beginning after December 15, ~~2018 and the interim periods starting thereafter.~~2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective or fiscal years ending after December 15, 2020 and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of ~~this update~~adoption on ~~the Company’s~~its financial ~~statements.~~statements and disclosures.

Note 2:Investments (Restated)

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets ~~funds. The investments in securities~~and they are ~~classified as available-for-sale securities and are reported~~recorded at fair value. ~~Available-for-sale~~The investments in debt securities ~~mature~~have maturities between ~~June 2018~~September 2019 and ~~November 2048.~~January 2044. The Company uses the average cost method to determine the cost of securities sold ~~and the amount reclassified out of accumulated other comprehensive income into~~with any unrealized gains or losses reported in each respective period’s earnings. ~~Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity.~~ Dividend and interest income are reported as earned.

As of ~~January~~July 31, ~~2018~~2019 and April 30, ~~2017,~~2019, investments consisted of the following:

			Gross		Gross							Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair		Cost		Unrealized		Unrealized			Fair
January 31, 2018	Basis		Gains		Losses			Value
July 31, 2019										Basis		Gains		Losses			Value
Municipal bonds	$	5,966,000	$	103,000	$	(238,000	)	$	5,831,000	$	5,475,000	$	117,000	$	(43,000	)	$	5,549,000
Corporate bonds	$	129,000	$	2,000	$	—		$	131,000		26,000		—		—			26,000
REITs	$	110,000	$	5,000	$	(6,000	)	$	109,000		89,000		3,000		(9,000	)		83,000
Equity securities	$	15,720,000	$	4,844,000	$	(203,000	)	$	20,361,000		16,729,000		4,252,000		(260,000	)		20,721,000
Money markets and CDs	$	1,064,000	$	—	$	—		$	1,064,000		1,278,000		—		—			1,278,000
Total	$	22,989,000	$	4,954,000	$	(447,000	)	$	27,496,000	$	23,597,000	$	4,372,000	$	(312,000	)	$	27,657,000

			Gross		Gross							Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair		Cost		Unrealized		Unrealized			Fair
April 30, 2017	Basis		Gains		Losses			Value
April 30, 2019										Basis		Gains		Losses			Value
Municipal bonds	$	6,045,000	$	90,000	$	(97,000	)	$	6,038,000	$	5,459,000	$	79,000	$	(55,000	)	$	5,483,000
Corporate bonds	$	129,000	$	1,000	$	—		$	130,000		26,000		—		—			26,000
REITs	$	64,000	$	13,000	$	(1,000	)	$	76,000		89,000		1,000		(6,000	)		84,000
Equity securities	$	15,259,000	$	2,441,000	$	(319,000	)	$	17,381,000		16,618,000		4,143,000		(296,000	)		20,465,000
Money markets and CDs	$	2,757,000	$	—	$	—		$	2,757,000		1,233,000		—		—			1,233,000
Total	$	24,254,000	$	2,545,000	$	(417,000	)	$	26,382,000	$	23,425,000	$	4,223,000	$	(357,000	)	$	27,291,000

Marketable securities that are 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 Operations in the period of the change, and debt securities are carried at fair value on the balance sheet with changes in fair value recorded as unrealized gains or (losses) in the Statement of Comprehensive Income. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On May 1, 2018, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings.

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~~on 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. As a result of this standard, management ~~did not record~~recorded an impairment loss ~~during~~of $34,000 for the quarter ~~but did record a loss of $23,000 for~~ended July 31, 2019. For the ~~nine months~~prior quarter ended ~~January~~July 31, ~~2018. Likewise, for the corresponding periods last year,~~2018, management did not need to record ~~a loss for the quarter, but did record a $13,000~~any impairment ~~loss for the nine months ended January 31, 2017.~~losses.

The following ~~tables show~~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, at ~~January~~July 31, ~~2018~~2019 and April 30, ~~2017,~~2019, respectively.

Unrealized Loss Breakdown by Investment Type at ~~January~~July 31, ~~2018~~2019

	Less than 12 months					12 months or greater					Total					Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	702,000	$	(152,000	)	$	1,674,000	$	(86,000	)	$	2,376,000	$	(238,000	)	$	—	$	—		$	448,000	$	(43,000	)	$	448,000	$	(43,000	)
REITs	$	56,000	$	(5,000	)	$	27,000	$	(1,000	)	$	83,000	$	(6,000	)		—		—			30,000		(9,000	)		30,000		(9,000	)
Equity securities	$	534,000	$	(35,000	)	$	590,000	$	(168,000	)	$	1,124,000	$	(203,000	)		1,975,000		(147,000	)		729,000		(113,000	)		2,704,000		(260,000	)
Total	$	1,292,000	$	(192,000	)	$	2,291,000	$	(255,000	)	$	3,583,000	$	(447,000	)	$	1,975,000	$	(147,000	)	$	1,207,000	$	(165,000	)	$	3,182,000	$	(312,000	)

Unrealized Loss Breakdown by Investment Type at April 30, ~~2017~~2019

	Less than 12 months					12 months or greater					Total					Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	1,420,000	$	(19,000	)	$	1,292,000	$	(78,000	)	$	2,712,000	$	(97,000	)	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)
REITs	$	—	$	—		$	27,000	$	(1,000	)	$	27,000	$	(1,000	)		—		—			32,000		(6,000	)		32,000		(6,000	)
Equity securities	$	983,000	$	(92,000	)	$	1,689,000	$	(227,000	)	$	2,672,000	$	(319,000	)		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)
Total	$	2,403,000	$	(111,000	)	$	3,008,000	$	(306,000	)	$	5,411,000	$	(417,000	)	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)

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, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at ~~January~~July 31, ~~2018.~~2019.

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. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at ~~January~~July 31, ~~2018~~2019.

Note 3:Inventories

Inventories at ~~January~~July 31, ~~2018~~2019 and April 30, ~~2017~~2019 consisted of the following:

January 31, April 30,
2018 2017

Raw materials $ 2,704,000 $ 1,579,000
Work in process 348,000 442,000
Finished goods 615,000 356,000
3,667,000 2,377,000
Less: allowance for obsolete inventory (73,000 ) (73,000 )
Totals $ 3,594,000 $ 2,304,000

	July 31, 2019			April 30, 2019

Raw materials	$	3,878,000		$	3,644,000
Work in process		368,000			389,000
Finished goods		715,000			641,000
		4,961,000			4,674,000
Less: allowance for obsolete inventory		(98,000	)		(91,000	)
Inventories, net	$	4,863,000		$	4,583,000

~~Note 4:Asset Purchase~~

In October 2017, George Risk Industries, Inc. (the “Company”) purchased assets from Labor Saving Devices, Inc. (“LSDI”). The purchase price for the assets consisted of $3,000,000 in cash and 24,097 shares of the Company’s Class A common stock (valued at $200,000, or approximately $8.30 per share). An initial payment of $1,000,000 in cash was made at closing, with the remaining $2,000,000 in cash paid in November 2017.

~~The value of the assets purchased as described above at January 31, 2018 consisted of the following:~~

Type of Assets Beginning Balance Amortization Total Assets, Net
Inventory $ 1,366,000 — $ 1,366,000
Fixed Assets $ 10,000 — $ 10,000
Non-compete agreement $ 10,000 — $ 10,000
Intangible assets $ 1,814,000 $ (30,000 ) $ 1,784,000
Total $ 3,200,000 $ (30,000 ) $ 3,170,000

~~Since the asset purchase took place in October 2017, there was no value to these assets at April 30, 2017.~~

Note 5:4: Business Segments

The following is financial information relating to industry segments:

	Three months		Nine months		Three months		Nine months
	ended		ended		ended		ended		July 31,
	Jan 31, 2018		Jan 31, 2018		Jan 31, 2017		Jan 31, 2017		2019		2018
Net revenue:
Security alarm products	$	2,715,000	$	6,683,000	$	2,214,000	$	6,955,000	$	2,830,000	$	2,150,000
Cable & wiring tools										536,000		679,000
Other products		545,000		1,914,000		431,000		1,239,000		186,000		600,000
Total net revenue	$	3,260,000	$	8,597,000	$	2,645,000	$	8,194,000	$	3,552,000	$	3,429,000

Income from operations:
Security alarm products		452,000		1,534,000		603,000		1,805,000	$	725,000	$	485,000
Cable & wiring tools										137,000		153,000
Other products		130,000		439,000		107,000		321,000		48,000		135,000
Total income from operations	$	582,000	$	1,973,000	$	710,000	$	2,126,000	$	910,000	$	773,000

Depreciation and amortization:
Security alarm products		10,000		28,000		7,000		29,000	$	23,000	$	10,000
Cable & wiring tools										31,000		31,000
Other products		52,000		94,000		27,000		80,000		20,000		27,000
Corporate general		15,000		41,000		13,000		29,000		15,000		15,000
Total depreciation and amortization	$	77,000	$	163,000	$	47,000	$	138,000	$	89,000	$	83,000

Capital expenditures:
Security alarm products		—		260,000		—		—	$	169,000	$	—
Cable & wiring tools										—		—
Other products		—		—		16,000		130,000		—		—
Corporate general		16,000		81,000		10,000		16,000		—		—
Total capital expenditures	$	16,000	$	341,000	$	26,000	$	146,000	$	169,000	$	—

	January 31, 2018		April 30, 2017
Identifiable assets:					July 31, 2019		April 30, 2019
Security alarm products		4,424,000		3,180,000	$	6,369,000	$	6,179,000
Cable & wiring tools						2,725,000		2,713,000
Other products		2,371,000		1,517,000		864,000		842,000
Corporate general		34,773,000		33,767,000		34,088,000		33,293,000
Total assets	$	41,568,000	$	38,464,000	$	44,046,000	$	43,027,000

Note 6:5: Earnings per Share (Restated)

~~Basic~~Restated basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are:

For the three months ended January 31, 2018
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 791,000

Basic EPS $ 791,000 4,969,013 $ 0.1592
Effect of dilutive securities:
Convertible preferred stock 0 20,500
Diluted EPS $ 791,000 4,989,513 $ 0.1585

	For the Three Months Ended July 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	866,000	$	110,000	$	976,000

Denominator
Weighted average common shares outstanding, basic		4,956,389		—		4,956,389
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,976,889		—		4,976,889
Net Income per share - Basic	$	0.17	$	0.03	$	0.20
Income per shares - Diluted	$	0.17	$	0.03	$	0.20

For the nine months ended January 31, 2018
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 2,032,000

Basic EPS $ 2,032,000 4,955,725 $ 0.4100
Effect of dilutive securities:
Convertible preferred stock 0 20,500
Diluted EPS $ 2,032,000 4,976,225 $ 0.4083

For the three months ended January 31, 2017
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 792,000

Basic EPS $ 792,000 4,945,972 $ 0.1601
Effect of dilutive securities:
Convertible preferred stock 0 20,500
Diluted EPS $ 792,000 4,966,472 $ 0.1595
For the nine months ended January 31, 2017
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 2,051,000
Basic EPS $ 2,051,000 4,996,453 $ 0.4105
Effect of dilutive securities:
Convertible preferred stock 0 20,500
Diluted EPS $ 2,051,000 5,016,953 $ 0.4088

	For the Three Months Ended July 31,
	Originally Filed 2018		Adjustment 2018		Restated 2018
Numerator
Net income	$	617,000	$	308,000	$	925,000

Denominator
Weighted average common shares outstanding, basic		4,967,580		—		4,967,580
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,988,080		—		4,988,080
Net Income per share - Basic	$	0.12	$	0.07	$	0.19
Income per shares - Diluted	$	0.12	$	0.07	$	0.19

Note 7:6: 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 corporation. The Plan is intended to be qualified under Section ~~401(k)~~401 (k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $2,000 were paid during both the ~~quarters~~quarter ending ~~January~~July 31, 2019 and 2018, ~~and 2017,~~ respectively. ~~Likewise, the Company paid matching contributions of approximately $8,000 during the nine-month period ending January 31, 2018 and $7,000 during the corresponding period the prior fiscal year.~~

Note 8:7: Fair Value Measurements

Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as 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 measurement) 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 use of option pricing models, discounted cash flow models and similar techniques.

Investments and Marketable Securities

As of ~~January~~July 31, ~~2018,~~2019, our investments consisted of money markets, certificates of deposits (CDs), publicly traded equity securities, real estate investment trusts ~~(REITS)~~(REITs) as well as certain state and municipal debt securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the investments is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

Fair Value Hierarchy

The following ~~tables set~~table sets 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.

Assets Measured at Fair Value on a Recurring Basis as of
January 31, 2018

Level 1 Level 2 Level 3 Total
Assets:
Municipal Bonds $ - $ 5,831,000 $ - $ 5,831,000
Corporate Bonds $ 131,000 $ - $ - $ 131,000
REITs $ - $ 109,000 $ - $ 109,000
Equity Securities $ 20,361,000 $ - $ - $ 20,361,000
Money Markets and CDs $ 1,064,000 $ - $ - $ 1,064,000
Total fair value of assets measured on a recurring basis $ 21,556,000 $ 5,940,000 $ - $ 27,496,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2017								Assets Measured at Fair Value on a Recurring Basis as of July 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	6,038,000	$	—	$	6,038,000	$	—	$	5,549,000	$	—	$	5,549,000
Corporate Bonds	$	130,000	$	—	$	—	$	130,000		26,000		—		—		26,000
REITs	$	—	$	76,000	$	—	$	76,000		—		83,000		—		83,000
Equity Securities	$	17,381,000	$	—	$	—	$	17,381,000		20,721,000		—		—		20,721,000
Money Markets and CDs	$	2,757,000	$	—	$	—	$	2,757,000		1,278,000		—		—		1,278,000
Total fair value of assets measured on a recurring basis	$	20,268,000	$	6,114,000	$	—	$	26,382,000	$	22,025,000	$	5,632,000	$	—	$	27,657,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		84,000		—		84,000
Equity Securities		20,465,000		—		—		20,465,000
Money Markets and CDs		1,233,000		—		—		1,233,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000

Note 9:8 Subsequent Events

None

Note 9 Correction of Previously Issued Financial Statements

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three months ended July 31, 2019, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the implementation of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-Q) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss).

This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive loss related to unrealized gains on equity securities as of May 1, 2018 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three months ended July 31, 2019 and 2018.

No entries to correct for this restatement have any impact on our cash position, liquidity, or operations.

The tables below reflect the effect of restatement on the Company’s financial statements for the quarter:

	As of July 31, 2019
	Original		Adjustment			As Restated
Balance Sheet
Deferred Income Taxes	$	1,247,000	$	(7,000	)	$	1,240,000
Total Liabilities		3,542,000		(7,000	)		3,535,000

Accumulated other comprehensive income	$	2,890,000	$	(2,841,000	)	$	49,000
Retained Earnings		39,011,000		2,848,000			41,859,000
Total stockholder’s Equity	$	40,504,000	$	7,000		$	40,511,000

	As of April 30, 2019
	Original		Adjustment			As Restated
Balance Sheet
Accumulated other comprehensive income	$	2,752,000	$	(2,738,000	)	$	14,000
Retained Earnings		38,145,000		2,738,000			40,883,000

	For the Three Months Ended July 31, 2019
	Original			Adjustment		As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—		$	145,000	$	145,000
Total Other Income (Expense)	$	243,000		$	145,000	$	388,000

Income Before Provisions for Income Taxes		1,153,000			145,000		1,298,000

Deferred tax expense (benefit)		(7,000	)		35,000		28,000
Total Income Tax Expense		287,000			42,000		329,000

Net Income	$	866,000		$	110,000	$	976,000

Earnings Per Share of Common Stock
Basic	$	0.17		$	0.03	$	0.20
Diluted	$	0.17		$	0.03	$	0.20

	For the Three Months Ended July 31, 2018
	Original		Adjustment		As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	432,000	$	432,000
Total Other Income (Expense)	$	128,000	$	432,000	$	560,000

Income Before Provisions for Income Taxes		901,000		432,000		1,333,000

Deferred tax expense (benefit)		37,000		124,000		161,000
Total Income Tax Expense		284,000		124,000		408,000

Net Income	$	617,000	$	308,000	$	925,000

Earnings Per Share of Common Stock
Basic	$	0.12	$	0.07	$	0.19
Diluted	$	0.12	$	0.07	$	0.19

	For the Three Months Ended July 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	866,000		$	110,000		$	976,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains arising during period		324,000			(275,000	)		49,000
Less: reclassification adjustment for (gains) losses included in net income		(130,000	)		130,000			—
Income tax expense related to other comprehensive income		(56,000	)		42,000			(14,000	)
Other Comprehensive Income (Loss)	$	138,000		$	(103,000	)	$	35,000

Comprehensive Income	$	1,004,000		$	7,000		$	1,011,000

	For the Three Months Ended July 31, 2018
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	617,000		$	308,000		$	925,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains arising during period		607,000			(387,000	)		220,000
Less: reclassification adjustment for (gains) losses included in net income		44,000			(44,000	)		—
Income tax expense related to other comprehensive income		(188,000	)		125,000			(63,000	)
Other Comprehensive Income (Loss)	$	463,000		$	(306,000	)	$	157,000

Comprehensive Income	$	1,080,000		$	2,000		$	1,082,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2019	$	39,553,000		$	—		$	39,553,000
Purchase of common stock		(53,000	)		—			(53,000	)
Unrealized gain (loss), net of tax effect		138,000			(103,000	)		35,000
Net Income		866,000			110,000			976,000
Balance, July 31, 2019	$	40,504,000		$	7,000		$	40,511,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018	$	37,730,000		$	—		$	37,730,000
Purchase of common stock		(5,000	)		—			(5,000	)
Impact of adoption of ASU 2016-01		—			—			—
Unrealized gain (loss), net of tax effect		463,000			(306,000	)		157,000
Net Income		617,000			308,000			925,000
Balance, July 31, 2018	$	38,805,000		$	2,000		$	38,807,000

	For the Three Months Ended July 31, 2019
	Original			Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	866,000		$	110,000		$	976,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—			(145,000	)		(145,000	)
Deferred income taxes		(7,000	)		35,000			28,000
Net cash provided by (used in) operating activities	$	1,139,000		$	—		$	1,139,000

	For the Three Months Ended July 31, 2018
	Original		Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	617,000	$	308,000		$	925,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—		(432,000	)		(432,000	)
Deferred income taxes		37,000		124,000			161,000
Net cash provided by (used in) operating activities	$	890,000	$	—		$	890,000

	For the Three Months Ended July 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	866,000	$	110,000	$	976,000
Denominator
Weighted average common shares outstanding, basic		4,956,389		—		4,956,389
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,976,889		—		4,976,889
Net Income per share - Basic	$	0.17	$	0.03	$	0.20
Income per shares - Diluted	$	0.17	$	0.03	$	0.20

	For the Three Months Ended July 31,
	Originally Filed 2018		Adjustment 2018		Restated 2018
Numerator
Net income	$	617,000	$	308,000	$	925,000
Denominator
Weighted average common shares outstanding, basic		4,967,580		—		4,967,580
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,988,080		—		4,988,080
Net Income per share - Basic	$	0.12	$	0.07	$	0.19
Income per shares - Diluted	$	0.12	$	0.07	$	0.19

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 2.2: Management Discussion and Analysis of Financial Condition and Results of Operations

MANAGEMENT DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (Restated)

This Quarterly Report on Form ~~10-Q,~~10-Q/A, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project” or “continue,” and the negatives of such terms are intended to identify forward-looking statements. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if ~~new~~current information becomes available in the future.

The following discussion should be read in conjunction with the attached condensed ~~consolidated~~ financial statements, and with the Company’s audited financial statements and discussion for the fiscal year ended April 30, ~~2017.~~2019.

Executive Summary

The Company’s performance has ~~remained steady~~increased through the ~~three quarters, with increased sales, being offset by increased cost of sales, and greatly improved investment returns. This is due~~first quarter in comparison to the ~~continuation of~~prior quarter last year. In comparison to the most recent prior quarter, performance has stayed steady with similar sales figures. The main difference between this year’s quarter and last year’s quarter is that the Company doesn’t have a big back order log and is able to get inventory in the stockroom which allows the Company to ship products out on timely basis. Opportunities include continuing to learn and grow with our ~~quality USA made~~computer system and to continue looking at businesses that might be a good fit to purchase. Also, we have new products ~~with~~that are scheduled to enter the ~~ability for customization, our notable customer service, and~~marketplace by the ~~purchase~~end of the ~~assets of Labor Saving Devices, Inc. New challenges~~calendar year. Challenges in the ~~Company has endured over~~coming months include continuing to get product out to customers in a timelier manner. Raw material prices are also a concern with tariffs being levied by the ~~nine months of this fiscal year include~~US government and other factors. Management continues to work at keeping the ~~continuation of training of our new software system, learning~~facilities running leaner and ~~incorporating the Labor Saving Devices product line, and dealing with some shortages and defects of raw materials.~~more profitable than ever before.

Results of Operations

	●	Net sales ~~were $3,260,000 for the quarter ended January 31, 2018, which is~~showed a ~~23.25%~~3.59% increase ~~from the corresponding quarter last year. Year-to-date net sales were $8,597,000 at January 31, 2018, which is a 4.92% increase from~~over the same period ~~last~~in the prior year. ~~A significant part of growth~~Management believes that they have been successful at training employees on the new computer system and production is running smoothly. The Company has also seen some old customers buying from us again. Management believes that this may be in ~~sales is a direct result of the asset purchase of Labor Saving Devices and having a new product line~~relation to ~~sell as a result of the purchase. Also,~~price increases from our ~~ongoing commitment to outstanding customer service and customization of products are a few of the many reasons sales remained steady over the years.~~
		competitors
	●	Cost of goods sold ~~was 56.0%~~saw a decrease from 52.52% of ~~net~~ sales ~~for~~in the ~~quarter ended January 31, 2018 and was 46.4% for the same quarter last year. Year-to-date cost of goods sold percentages were 50.4% for~~prior year, to 49.80% in the current ~~nine months and 47.6% for the corresponding nine months last year,~~quarter, which is ~~just slightly over~~inside of Management’s goal to keep labor and other manufacturing expenses within the ~~target~~range of ~~less than~~45 to 50% for both the quarter and year-to-date results. There were some added expenses that were incurred with the purchase of Labor Saving Devices that happened during this quarter but they were “one time” expenses management expects the. The decreased cost of goods sold percentage ~~to fall to return to normal in the future.~~
		is a reflection of having better training and working more efficiently when making product.
	●	Operating expenses have increased by ~~$146,000~~$18,000 when comparing the current quarter to the same quarter for the prior year, but the percentage in relation to net sales decreased to 24.58% for the quarter ~~and also increased by $118,000 for the nine-months~~ ended ~~January~~July 31, ~~2018~~2019 as compared to 24.93% for the corresponding ~~periods~~quarter last year. ~~These~~The Company has been able to keep the operating expenses at less than 30% of net sales for many years now; however, the actual dollar amount increase is because of increased ~~costs are primarily due to increased new product development, increased commissions,~~commission amounts (since sales have increased) and additional ~~training~~labor costs for hiring new employees and ~~maintenance fees on our new computer software~~wage increases.

	●	Income from operations for the quarter ended ~~January~~July 31, ~~2018~~2019 was at ~~$582,000~~$910,000, which is ~~an 18.02% decrease~~a 17.72% increase from the corresponding quarter last year, which had income from operations of $710,000. Income from operations for the nine months ended January 31, 2018 was at $1,973,000, which is a 7.20% decrease from the corresponding nine months last year, which had income from operations of $2,126,000.
		$773,000.
	●	Other income and expenses showed a $388,000 gain for the quarter ended July 31, 2019 as compared to a $560,000 gain for the quarter ended July 31, 2018. Investments in marketable securities are ~~up when comparing to the current quarter and nine-month periods the prior year, with an increase of $115,000 in the current quarter~~presented at fair value and an ~~increase of $115,000 for the current year-to-date. The majority of activity in these accounts consists of investment interest, dividends, and~~unrealized gain or loss is recorded within the statements of operations, a non-cash entry, at each period beginning May 1, 2018 and previously recorded unrealized gain or loss in other comprehensive income (loss). For the three months ended July 31, 2019, $145,000 of unrealized gains on equity securities were recorded and $432,000 of unrealized gains on equity securities were recorded for the three months ended July 31, 2018. The remainder of the increase is primarily due to gains realized from the sale of ~~investments. With~~investments as compared to losses sustained during the continued growth in the performance of the stock market, decisions were made to sell holdings and take the realized gain and dividends and interest payments exceeded expectations and many of our holdings had additional and increased dividend payouts.
		same quarter last year.
	●	~~Overall,~~Provision for income taxes showed a decrease of $79,000, down from $408,000 in the quarter ended July 31, 2018 to $329,000 for the quarter ended July 31, 2019. The decrease is a direct result of the adoption of ASU 2016-01.
	●	In turn, net income for the quarter ended ~~January~~July 31, ~~2018~~2019 was ~~down $1,000, or 0.13%,~~$969,000, a 4.76% increase from the ~~same~~corresponding quarter last ~~year. Similarly,~~year, which showed net income ~~for the nine-month period ended January 31, 2018 was down $19,000, or 0.93%, from the same period in the prior year.~~
		of $925,000.
	●	Earnings per share for the quarter ended July 31, 2019 were $0.20 per common share and $0.19 per common share for the quarter ended ~~January~~July 31, ~~2018 were $0.16 per share and $0.41 per share for the year-to-date numbers. EPS for the quarter and nine months ended January 31, 2017 were also $0.16 per share and $0.41 per share, respectively.~~2018.

Liquidity and capital resources

Operating

	●	Net cash ~~decreased $2,504,000~~increased $794,000 during the ~~nine months~~quarter ended ~~January~~July 31, ~~2018~~2019 as compared to an increase of ~~$80,000~~$653,000 during the corresponding ~~period~~quarter last year. ~~This is primarily due to the asset purchase of Labor Saving Devices, Inc., which was done without outside financing.~~

	●	Accounts receivable ~~increased $636,000~~decreased $163,000 for the ~~nine months ended January~~quarter ending July 31, ~~2018~~2019 compared with a ~~$163,000~~$234,000 decrease for the same ~~period~~quarter last year. The ~~current year increase~~decrease in accounts receivable is ~~a result of improved sales and collections~~directly attributable to the Company’s ability to collect on accounts ~~receivable taking~~and to keep past due accounts to a ~~bit longer than normal. Management believes~~minimum. An analysis of accounts shows that ~~approximately $16,000 of accounts~~there were only 5.15% that were over 90 days ~~have a possibility of being uncollectible.~~
		at July 31, 2019.
	●	Inventories increased ~~$1,291,000~~$288,000 during the current ~~nine-month period~~quarter as compared to ~~an decrease of $426,000~~a $389,000 increase last ~~year,~~year. The smaller increase is primarily due to the ~~inventory purchased from Labor Saving Devices.~~
		fact that the Company selling more finished goods at a slightly faster rate than it is replenishing raw materials.
	●	~~Prepaid~~At the quarter ended July 31, 2019 there was a $79,000 decrease in prepaid expenses ~~saw~~and at July 31, 2018, there was a ~~$359,000 increase for the~~$166,000 decrease. The current ~~nine months, primarily~~decrease is due to ~~the prepayment of inventory the Company purchases. Likewise, the prior nine months showed a $48,000 increase~~capitalizing some projects in ~~prepaid expenses.~~

	●	Income tax overpayment for the nine months ended January 31, 2018 increased $221,000, as the overpayment also showed an increase of $43,000 for the same period the prior year. The main reason for the current increase is that the Company expects to generate additional income with the asset acquisition that happened earlier this fiscal year.
		process.
	●	Accounts payable shows ~~increases~~an increase of $55,000 for ~~both nine-month periods at $239,000 and $20,000, respectively. The company~~the quarter ended July 31, 2019 compared to a decrease of $7,000 for the same quarter the year before, primarily due to timing issues. Management strives to pay all ~~invoices~~payables within terms, ~~and~~unless there is a problem with the ~~variance in increases is primarily due to the timing of receipt of products and payment of invoices.~~
		merchandise.
	●	Accrued expenses decreased ~~$127,000~~$66,000 for the current ~~nine-month period~~quarter as compared to a ~~$72,000~~$172,000 decrease for the ~~nine-month period~~quarter ended ~~January~~July 31, ~~2017.~~2018. The difference in the amounts is primarily due to timing issues of when pay periods end.
	●	Income tax payable for the quarter ended July 31, 2019 increased $289,000, while there was a $244,000 decrease towards income tax overpayment for the quarter ended July 31, 2018. The current increase is due to waiting on tax refunds to be sent and not having to pay income tax estimates yet.

Investing

	●	As for our investment activities, the Company ~~spent approximately $342,000 on acquisitions~~purchased $169,000 of property and equipment ~~for~~during the current ~~nine-month period, in~~fiscal quarter. In comparison with the corresponding ~~nine months~~quarter last year, ~~where~~ there ~~was activity~~were not any purchases of ~~$146,000.~~

	●	~~As a result of the asset acquisition of Labor Saving Devices, Inc. (“LSDI”), a net amount of $1,624,000 of intangible assets were bought, along with inventory~~property and ~~fixed assets. Since the acquisition took place in the current year, there was no cash towards this item for the same reporting period last year.~~
		equipment.
	●	Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. ~~During the nine-month period ended January 31, 2018 there was quite a bit of buy/sell activity in the investment accounts. Net cash~~Cash spent on purchases of marketable securities for the ~~nine-month period~~quarter ended ~~January~~July 31, ~~2018~~2019 was ~~$653,000~~$132,000 compared to ~~$668,000~~$233,000 spent induring the ~~prior nine-month period.~~quarter ended July 31, 2018. We continue to use “money manager” accounts for most stock transactions. By doing this, the Company gives an independent ~~third-party~~third party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays a quarterly service fee based on the value of the investments.

Financing

●

~~The~~Furthermore, the Company continues to purchase back common stock when the opportunity arises. For the ~~nine-month period~~quarter ended ~~January~~July 31, ~~2018,~~2019, the Company purchased ~~$3,000~~$53,000 worth of treasury ~~stock. This is in comparison to $551,000~~stock, along with the $5,000 spent in the same ~~nine months~~ period the prior year.


	●	The company paid out dividends of $1,617,000 during the nine months ending January 31, 2018. These dividends were paid during the second quarter. The company declared a dividend of $0.36 per share of common stock on September 30, 2017 and these dividends were paid by October 31, 2017. As for the prior year numbers, dividend paid was $1,596,000 for the nine months ending January 31, 2017. A dividend of $0.35 per common share was declared and paid during the second fiscal quarter last year.23

The following is a list of ratios to help analyze George Risk Industries’ performance:

	Qtr ended		Qtr ended
	July 31, 2019		July 31, 2018
Working capital
(current assets – current liabilities)	$	38,750,000	$	36,894,000
Current ratio
(current assets / current liabilities)		17.882		18.760
Quick ratio
((cash + investments + AR) / current liabilities)		15.622		16.567

For the quarter ended
January 31, 2018 January 31, 2017
Working capital
(current assets – current liabilities)
$ 36,407,000 $ 34,041,000
Current ratio
(current assets / current liabilities)
18.596 17.171
Quick ratio
((cash + investments + AR) / current liabilities)
16.394 15.773

New Product Development

The Company and ~~its~~its’ engineering department ~~continue~~perpetually work to develop enhancements to current product lines, develop new products which complement existing products, and look for products that are well suited to our distribution network and manufacturing capabilities. Items currently in various stages of the development process include:

	●	A new face plate for our pool alarms is nearing completion. The innovative design is slim in style and will also allow the homeowner to change the plate to match their décor.

	●	~~An updated~~A new version of the pool access alarm is currently going through ~~ETL~~electrical listing testing. This next-generation model combines our battery operated DPA series with our hard wired 289 series. A variety of installation options will be available through jumper pin settings.

	●	The case for our CC15 is complete and has been submitted to U.L. for approval for the US and Canada. This will allow us to manufacture several different versions. One is a 15-amp version that would automatically turn on a whole room of lights. Another is a 220-volt version to be used in international markets.

	●	~~We continue to work~~Work continues on high security switches. WeThey have a triple biased high security switch design nearly complete and an adjustable magnet design was completed for recessed mounting applications.

	●	We continue to research the possibilities of fuel level sensing and how that may also serve other agricultural based needs. Several companies from around the world have been looking for ways to secure fuel tanks and trucks. Our emphasis would be in ways to safely monitor fuel levels and report tampering.

	●	~~A new float water sensor is being developed that will monitor water levels in livestock tanks and sump pumps.~~

	●	Wireless technology is a main area of focus for product development. We are ~~considering~~looking into 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 our Pool Alarm and environmental sensors that will be easy to install in current construction. We are also concentrating on making products compatible with Wi-Fi, smartphone technology and the increasing popular Z-Wave standard for wireless home automation.

	●	~~An updated version~~We are ready to launch a new product in our cable and wiring tools segment, The Grabbit GR5. This is an ultra-compact, lightweight telescoping pole that extends 5’ to grab or push a wire. The GR5 is the newest member of ~~our 200-36 & 4532 overhead door switch line up is nearing completion~~the Grabbit family - joining the 10’, 12’ and 18’ versions. The Grabbits are an indispensable tool when running wire through drop ceilings and difficult-to-access areas. A Z-tip, J-tip and LED light are included with the ~~new aluminum cases presently~~Grabbits which are interchangeable depending on ~~order. The modified versions,~~ the 200-36UF and 4532UF, are being made as a universal fit switch. This will allow an installer to replace an existing switch without drilling new holes into the cement or adjusting the location. The modified case has an additional mounting hole along with reshaped mounting holes.situation.

Other Information

In addition to researching ~~and~~ developing new products, management is always open to the possibility of acquiring a business or product line that would complement our existing operations. Due to the Company’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing techniques and established customers to deliver new products and increase sales and profits.

There are no known seasonal trends with any of GRI’s products, since we sell to distributors and OEM manufacturers. Our products are tied to the housing industry and will fluctuate with building trends.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to provide a robust framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance. This update is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is evaluating the impact of this update on the Company’s financial statements.

In February of 2016, the FASB issued ASU 2016-02,~~Leases~~~~. Under the new~~ “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees ~~will be required~~ to ~~recognize so-called~~classify leases as either finance or operating leases and to record a right-of-use ~~assets~~asset and ~~liabilities~~a lease liability for ~~most~~all leases ~~having lease terms of~~with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or ~~more. This update~~on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective ~~in annual reporting periods~~for the Company beginning ~~after December 31, 2019 and the interim periods starting thereafter. The Company~~May 1, 2019. Early adoption is ~~evaluating the impact of this update on the Company’s financial statements.~~

permitted. In ~~February of~~July 2018, the FASB issued ASU ~~2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under this update, companies have the option~~No. 2018-10 “Codification Improvements to ~~reclassify stranded tax effects caused by US Tax Cuts~~Topic 842, Leases” (“ASU 2018-10”) and ~~Jobs Act (TCJA) from accumulated other comprehensive income (AOCI) to retained earnings. Under current US GAAP, effects from a change in tax law is recorded as a component~~ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the ~~income tax provision related~~guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to ~~continuing operations~~choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of ~~enactment, even~~adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the ~~deferred taxes were established for~~first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal 2020 and the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material impact on the Company’s financial ~~statement component~~statements and related disclosures because leases are not ~~part of continuing operations, such as accumulated other comprehensive income (AOCI)~~material to the financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). ~~Adopting of this standard will remove tax effects stranded in AOCI by~~The updated guidance improves the ~~tax law enactment. Adoption of this ASU is optional. This update~~disclosure requirements on fair value measurements. The updated guidance is effective ~~in annual reporting~~for fiscal years, and interim periods within those fiscal years, beginning after December 15, ~~2018 and the interim periods starting thereafter.~~2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures ~~about~~About Market Risk

~~Not applicable~~This disclosure does not apply.

Item 4. Controls and Procedures

Our management, under the supervision and with the participation of our chief executive officer (also working as our chief financial officer), evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of ~~January~~July 31, ~~2018.~~2019. Based on that evaluation, our chief executive officer (also working as our chief financial officer) concluded that the disclosure controls and procedures employed at the Company were not effective to provide reasonable assurance that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

We ~~have taken measures~~continue to ~~improve our disclosure controls~~operate with a limited number of accounting and ~~procedures.~~financial personnel. A new accounting professional was hired in ~~October 2017~~2018 to fill the Controller position. ~~Regarding this filing, more training~~Training will be required to fulfill disclosure control and procedure responsibilities, including review procedures for key accounting schedules and timely and proper documentation of material transactions and agreements. Until sufficient training has taken place offor this new Controller, we believe this control deficiency represents material weaknesses in internal control over financial reporting.

Despite the material weaknesses in financial reporting noted above, we believe that our ~~consolidated~~restated financial statements included in this restated report fairly present our financial position, results of operations and cash flows as of and for the periods presented in all material respects.

We are committed to the establishment of effective internal controls over financial reporting and will place emphasis on quarterly and year-end closing procedures, timely documentation and internal review of accounting and financial reporting consequences of material contracts and agreements, and enhanced review of all schedules and account analyses by experienced accounting department personnel or independent consultants.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting during the fiscal quarter ended ~~January~~July 31, ~~2018~~2019 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

GEORGE RISK INDUSTRIES, INC.

~~Part~~PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Not applicable

~~Item 1A. Risk Factors~~

~~Not applicable.~~

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information relating to the Company’s repurchase of common stock for the ~~third~~first quarter of fiscal year ~~2018.~~2020.

Period	Number of shares repurchased
~~November~~May 1, ~~2017~~2019 – ~~November 30, 2017~~May 31, 2019		-0-
~~December~~June 1, ~~2017~~2019 – ~~December 31, 2017~~June 30, 2019		~~-0-~~300
~~January~~July 1, ~~2018~~2019 – ~~January~~July 31, ~~2018~~2019		~~100~~6,000

Item 3. Defaults upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

Item 6. Exhibits

	Exhibit No.		Description

	~~10.1~~		~~Material Contract – Purchase Agreement~~

	31.1		Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002.

	32.1		Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

~~Pursuant to~~In accordance with the requirements of the ~~Securities~~ Exchange Act, ~~of 1934,~~ the registrant ~~has duly~~ caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	George Risk Industries, Inc.
	(Registrant)

Date ~~March 16, 2018~~May 22, 2020	By:	/s/ Stephanie M. Risk-McElroy
		Stephanie M. Risk-McElroy
		President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board

	January 31,			April 30,
	2018			2017

Raw materials	$	2,704,000		$	1,579,000
Work in process		348,000			442,000
Finished goods		615,000			356,000
		3,667,000			2,377,000
Less: allowance for obsolete inventory		(73,000	)		(73,000	)
Totals	$	3,594,000		$	2,304,000

Type of Assets	Beginning Balance		Amortization			Total Assets, Net
Inventory	$	1,366,000		—		$	1,366,000
Fixed Assets	$	10,000		—		$	10,000
Non-compete agreement	$	10,000		—		$	10,000
Intangible assets	$	1,814,000	$	(30,000	)	$	1,784,000
Total	$	3,200,000	$	(30,000	)	$	3,170,000

	For the quarter ended
	January 31, 2018		January 31, 2017
Working capital (current assets – current liabilities)	$	36,407,000	$	34,041,000
Current ratio (current assets / current liabilities)		18.596		17.171
Quick ratio ((cash + investments + AR) / current liabilities)		16.394		15.773