UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM ~~10-Q/A~~

~~Amendment No 1~~10-Q

(Mark One)

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

For the ~~quarter~~quarterly period ended ~~January~~October 31, 2020

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 ORor 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 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 S.South Elm St.,
Kimball, NE		69145
(Address of principal executive offices)		(Zip Code)

(308) 235-4645

(Registrant’s telephone number, including area code)

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 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 every Interactive Data File required to be submitted 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 [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, a small reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated 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]

~~Yes [ ]~~

~~No [X]~~

APPLICABLE ONLY TO CORPORATE ~~ISSUERS:~~ISSUERS

The number of shares of the Registrant’s Common Stock outstanding, as of ~~March 20,~~December 15, 2020 was ~~4,950,260.~~

4,948,302.

~~EXPLANATORY NOTE~~

This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and nine months periods ended January 31, 2020 that we originally filed with the Securities and Exchange Commission, or the Commission, on March 23, 2020, 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 prior year 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 10 to our unaudited financial statements in Part I, Item 1, “Financial Statements” of this Amendment, 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 for the three-and nine months periods ended January 31, 2019, as set forth in the Original Filing in connection with our failure to give effect to the implementation of ASU 2016-01 in the prior year 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 for the three-and nine months periods ended January 31, 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 Form 10-Q.

~~See Note 10 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. Financial Statements ~~(Restated)~~

The ~~restated~~ unaudited financial statements for the ~~three- and nine-month period~~three-and six-month periods ended ~~January~~October 31, 2020, are attached hereto.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

					October 31, 2020		April 30, 2020
		January 31, 2020		April 30, 2019	(unaudited)
		(unaudited)
ASSETS

Current Assets:
Cash and cash equivalents	$	5,647,000	$	4,873,000	$	5,855,000	$	6,458,000
Investments and securities		28,178,000		27,291,000		27,666,000		25,322,000
Accounts receivable:
Trade, net of $993 and $9,321 doubtful account allowance		2,243,000		2,696,000
Trade, net of $1,014 and $7,306 doubtful account allowance						2,938,000		2,964,000
Other		4,000		6,000		29,000		18,000
Income tax overpayment		117,000		259,000		—		56,000
Inventories, net		5,046,000		4,583,000		5,731,000		5,103,000
Prepaid expenses		356,000		282,000		438,000		516,000
Total Current Assets		41,591,000		39,990,000		42,657,000		40,437,000

Property and Equipment, net, at cost		1,284,000		984,000		1,699,000		1,465,000

Other Assets
Investment in Limited Land Partnership, at cost		320,000		293,000		320,000		320,000
Projects in process		—		117,000		25,000		21,000
Other		3,000		3,000		2,000		2,000
Total Other Assets		323,000		413,000		347,000		343,000

Intangible Assets, net		1,548,000		1,640,000		1,455,000		1,517,000

TOTAL ASSETS	$	44,746,000	$	43,027,000	$	46,158,000	$	43,762,000

See accompanying notes to the unaudited condensed financial statements.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

~~(continued)~~

							October 31, 2020			April 30, 2020
		January 31, 2020			April 30, 2019		(unaudited)
		(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities
Accounts payable, trade	$	222,000		$	206,000		$	215,000		$	187,000
Dividends payable		1,892,000			1,714,000			2,081,000			1,892,000
Accrued expenses		357,000			356,000
Accrued expenses:
Payroll and other expense								346,000			450,000
Income tax payable								321,000			—
Notes payable								950,000			950,000
Total Current Liabilities		2,471,000			2,276,000			3,913,000			3,479,000

Long-Term Liabilities
Deferred income taxes		1,423,000			1,198,000			1,298,000			699,000
Total Long-Term Liabilities		1,423,000			1,198,000			1,298,000			699,000

Total Liabilities		3,894,000			3,474,000			5,211,000			4,178,000

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
Common stock, Class A, $.10 par value, 10,000,000 shares
authorized, 8,502,881 shares issued and outstanding		850,000			850,000
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
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		1,934,000			1,934,000			1,934,000			1,934,000
Accumulated other comprehensive income		69,000			14,000			87,000			(4,000	)
Retained earnings		42,198,000			40,883,000			42,279,000			41,006,000
Less: treasury stock, 3,552,621 and 3,544,271 shares, at cost		(4,298,000	)		(4,227,000	)
Less: treasury stock, 3,553,029 and 3,552,954 shares, at cost								(4,302,000	)		(4,301,000	)
Total Stockholders’ Equity		40,852,000			39,553,000			40,947,000			39,584,000

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY	$	44,746,000		$	43,027,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							$	46,158,000		$	43,762,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

Three months Nine months Three months Nine months
ended ended ended ended
Jan 31, 2020 Jan 31, 2020 Jan 31, 2019 Jan 31, 2019
(Restated) (Restated)
Net Sales $ 3,589,000 $ 10,852,000 $ 3,455,000 $ 10,551,000
Less: Cost of Goods Sold (1,832,000 ) (5,462,000 ) (1,772,000 ) (5,467,000 )
Gross Profit 1,757,000 5,390,000 1,683,000 5,084,000

Operating Expenses
General and Administrative 302,000 928,000 294,000 911,000
Sales 587,000 1,698,000 531,000 1,611,000
Engineering 34,000 66,000 21,000 57,000
Rent Paid to Related Parties — 8,000 5,000 14,000
Total Operating Expenses 923,000 2,700,000 851,000 2,593,000

Income From Operations 834,000 2,690,000 832,000 2,491,000

Other Income
Other — 2,000 1,000 10,000
Dividend and Interest Income 423,000 782,000 471,000 816,000
Unrealized Gain (Loss) on equity securities 508,000 782,000 (184,000 ) (949,000 )
Gain on Investments 78,000 137,000 169,000 74,000
Gain on Sale of Assets 5,000 5,000 — —
1,014,000 1,708,000 457,000 (49,000 )

Income Before Provisions for Income Taxes 1,848,000 4,398,000 1,289,000 2,442,000

Provisions for Income Taxes:
Current Expense 359,000 911,000 291,000 799,000
Deferred Tax Expense (Benefit) 125,000 191,000 (44,000 ) (241,000 )
Total Income Tax Expense 484,000 1,102,000 247,000 558,000

Net Income $ 1,364,000 $ 3,296,000 $ 1,042,000 $ 1,884,000

Income Per Share of Common Stock
Basic $ 0.28 $ 0.67 $ 0.21 $ 0.38
Diluted $ 0.27 $ 0.66 $ 0.21 $ 0.38

Weighted Average Number of Common
Shares Outstanding Basic 4,950,524 4,953,008 4,961,018 4,963,592
Diluted 4,971,024 4,973,508 4,981,518 4,984,092

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

~~GEORGE RISK INDUSTRIES, INC.~~

~~CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)~~

Three months Nine months Three months Nine months
ended ended ended ended
Jan 31, 2020 Jan 31, 2020 Jan 31, 2019 Jan 31, 2019
(Restated) (Restated)
Net Income $ 1,364,000 $ 3,296,000 $ 1,042,000 $ 1,884,000

Other Comprehensive Income, Net of Tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period 27,000 77,000 56,000 221,000
Income tax benefit (expense) related to other comprehensive income (8,000 ) (22,000 ) (16,000 ) (64,000 )
Other Comprehensive Income (Loss) 19,000 55,000 40,000
157,000

Comprehensive Income (Loss) $ 1,383,000 $ 3,351,000 $ 1,082,000 $
2,041,000

	Three months			Six months			Three months			Six months
	ended			ended			ended			ended
	Oct 31, 2020			Oct 31, 2020			Oct 31, 2019			Oct 31, 2019
Net Sales	$	4,647,000		$	8,694,000		$	3,710,000		$	7,263,000
Less: Cost of Goods Sold		(2,294,000	)		(4,245,000	)		(1,860,000	)		(3,630,000	)
Gross Profit		2,353,000			4,449,000			1,850,000			3,633,000

Operating Expenses
General and Administrative		364,000			678,000			329,000			626,000
Sales		604,000			1,171,000			555,000			1,112,000
Engineering		21,000			50,000			17,000			32,000
Rent Paid to Related Parties		—			—			3,000			8,000
Total Operating Expenses		989,000			1,899,000			904,000			1,778,000

Income From Operations		1,364,000			2,550,000			946,000			1,855,000

Other Income (Expense)
Other		44,000			56,000			1,000			2,000
Dividend and Interest Income		134,000			290,000			166,000			359,000
Unrealized Gain (Loss) on Equity Securities		(115,000	)		1,999,000			129,000			274,000
Gain on Investments		72,000			44,000			10,000			59,000
Gain on Sale of Assets		4,000			4,000			—			—
Total Other Income		139,000			2,393,000			306,000			694,000

Income Before Provisions for Income Taxes		1,503,000			4,943,000			1,252,000			2,549,000

Provisions for Income Taxes:
Current Expense		682,000			1,032,000			258,000			552,000
Deferred Tax (Benefit) Expense		(39,000	)		559,000			37,000			65,000
Total Income Tax Expense		643,000			1,591,000			295,000			617,000

Net Income	$	860,000		$	3,352,000		$	957,000		$	1,932,000

Income Per Share of Common Stock
Basic	$	0.17		$	0.68		$	0.19		$	0.39
Diluted	$	0.17		$	0.67		$	0.19		$	0.39

Weighted Average Number of Common Shares Outstanding
Basic		4,949,902			4,949,914			4,952,110			4,954,250
Diluted		4,970,402			4,970,414			4,972,610			4,974,750

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF ~~STOCKHOLDERS’ EQUITY~~COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED ~~JANUARY~~OCTOBER 31, 2020 AND 2019

(Unaudited)

Preferred Stock
Common Stock Class A

Shares Amount Shares Amount
Balances, October 31, 2019 4,100 $ 99,000 8,502,881 $ 850,000

Dividend declared at $0.40 per common share outstanding — — — —

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

Net Income — — — —

Balances, January 31, 2020 4,100 $ 99,000 8,502,881 $ 850,000

Preferred Stock
Common Stock Class A

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

Purchases of common stock — — — —

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

Net Income — — — —

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

	Three months			Six months			Three months		Six months
	ended			ended			ended		ended
	Oct 31, 2020			Oct 31, 2020			Oct 31, 2019		Oct 31, 2019
Net Income	$	860,000		$	3,352,000		$	957,000	$	1,932,000

Other Comprehensive Income, Net of Tax
Unrealized gain (loss) on debt securities:
Unrealized holding gains (losses) arising during period		(20,000	)		130,000			1,000		50,000
Income tax benefit (expense) related to other comprehensive income		6,000			(39,000	)		—		(14,000	)
Other Comprehensive Income (Loss)		(14,000	)		91,000			1,000		36,000

Comprehensive Income	$	846,000		$	3,443,000		$	958,000	$	1,968,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

~~CONDENSED~~ STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED ~~JANUARY~~OCTOBER 31, 2020 AND 2019

(Unaudited)

Accumulated

Paid-In
Treasury Stock
(Common Class A)

Other
Comprehensive
Retained
Capital Shares Amount Income Earnings Total
$ 1,934,000 3,550,771 $ (4,281,000 ) $ 50,000 $ 40,834,000 $ 39,486,000

— 1,850 (17,000 ) — — (17,000 )

— — — 19,000 — 19,000

— — — — 1,364,000 1,364,000

$ 1,934,000 3,552,621 $ (4,297,000 ) $ 69,000 $ 42,198,000 $ 40,852,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, July 31, 2019		4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—

Dividend declared at $0.40 per common share outstanding		—		—		—		—

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

Net Income		—		—		—		—

Balances, October 31, 2019		4,100	$	99,000		8,502,881	$	850,000

Treasury Stock

Accumulated
Other

Paid-In (Common Class A) Comprehensive Retained
Capital Shares Amount Income Earnings Total
$ 1,934,000 3,541,234 $ (4,202,000 ) $ (58,000 ) $ 38,127,000 $ 36,750,000

— 937 (8,000 ) — — (8,000 )

— — — 40,000 — 40,000

— — — — 1,042,000 1,042,000

$ 1,934,000 3,542,171 $ (4,210,000 ) $ (18,000 ) $ 39,169,000 $ 37,824,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, July 31, 2020		4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—

Dividend declared at $0.42 per common share outstanding

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

Net Income		—		—		—		—

Balances, October 31, 2020		4,100	$	99,000		8,502,881	$	850,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

~~CONDENSED~~ STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE ~~NINE~~THREE MONTHS ENDED ~~JANUARY~~OCTOBER 31, 2020 AND 2019

(Unaudited)

Paid-In		Treasury Stock (Common Class A)					Accumulated Other Comprehensive		Retained
Capital		Shares		Amount			Income		Earnings			Total
$	1,934,000		3,550,571	$	(4,280,000	)	$	49,000	$	41,859,000		$	40,511,000

	—		200		(1,000	)		—		—			(1,000	)

	—		—		—			—		(1,982,000	)		(1,982,000	)

	—		—		—			1,000		—			1,000

	—		—		—			—		957,000			957,000

$	1,934,000		3,550,771	$	(4,281,000	)	$	50,000	$	40,834,000		$	39,486,000

Preferred Stock
Common Stock
Class A

Shares Amount Shares Amount
Balances, April 30, 2019 4,100 $ 99,000 8,502,881 $ 850,000

Purchases of common stock — — — —

Dividend declared at $0.40 per common share outstanding — — — —

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

Net Income — — — —

Balances, January 31, 2020 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 — — — —

Dividend declared at $0.38 per common share outstanding

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

Net Income — — — —

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

Paid-In		Treasury Stock (Common Class A)					Accumulated Other Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings			Total
$	1,934,000		3,552,954	$	(4,301,000	)	$	101,000		$	43,498,000		$	42,181,000

	—		75		(1,000	)		—			—			(1,000	)

	—		—		—			—			(2,079,000	)		(2,079,000	)

	—		—		—			(14,000	)		—			(14,000	)

	—		—		—			—			860,000			860,000

$	1,934,000		3,553,029	$	(4,302,000	)	$	87,000		$	42,279,000		$	40,947,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

~~CONDENSED~~ STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE ~~NINE~~SIX MONTHS ENDED ~~JANUARY~~OCTOBER 31, 2020 AND 2019

(Unaudited)

Accumulated
Paid-In
Treasury Stock
(Common Class A)

Other
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

— 8,350 (71,000 ) — — (71,000 )

— — — — (1,981,000 ) (1,981,000 )

— — — 55,000 — 55,000

— — — — 3,296,000 3,296,000

$ 1,934,000 3,552,621 $ (4,298,000 ) $ 69,000 $ 42,198,000 $ 40,852,000

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

Purchases of common stock		—		—		—		—

Dividend declared at $0.40 per common share outstanding		—		—		—		—

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

Net Income		—		—		—		—

Balances, October 31, 2019		4,100	$	99,000		8,502,881	$	850,000

Accumulated
Paid-In
Treasury Stock
(Common Class A)

Other
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

— 7,387 (62,000 ) — — (62,000 )

— — — — (1,885,000 ) (1,885,000 )

— — — 157,000 — 157,000

— — — — 1,884,000 1,884,000

$ 1,934,000 3,542,171 $ (4,210,000 ) $ (18,000 ) $ 39,169,000 $ 37,824,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, April 30, 2020		4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—

Dividend declared at $0.42 per common share outstanding

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

Net Income		—		—		—		—

Balances, October 31, 2020		4,100	$	99,000		8,502,881	$	850,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

Paid-In		Treasury Stock (Common Class A)					Accumulated Other 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

	—		6,500		(54,000	)		—		—			(54,000	)

	—		—		—			—		(1,981,000	)		(1,981,000	)

	—		—		—			36,000		—			36,000

	—		—		—			—		1,932,000			1,932,000

$	1,934,000		3,550,771	$	(4,281,000	)	$	50,000	$	40,834,000		$	39,486,000

Paid-In		Treasury Stock (Common Class A)					Accumulated Other Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings			Total
$	1,934,000		3,552,954	$	(4,301,000	)	$	(4,000	)	$	41,006,000		$	39,584,000

	—		75		(1,000	)		—			—			(1,000	)

	—		—		—			—			(2,079,000	)		(2,079,000	)

	—		—		—			91,000			—			91,000

	—		—		—			—			3,352,000			3,352,000

$	1,934,000		3,553,029	$	(4,302,000	)	$	87,000		$	42,279,000		$	40,947,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED ~~STATEMENT OF~~STATEMENTSOF CASH FLOWS

FOR THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

	Nine months			Nine months
	ended			ended
	Jan 31, 2020			Jan 31, 2019
					(Restated)		Oct 31, 2020			Oct 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	3,296,000		$	1,884,000		$	3,352,000		$	1,932,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		276,000			248,000			189,000			183,000
(Gain) loss on sale of investments		(178,000	)		(142,000	)		(123,000	)		(100,000	)
Impairments on investments		41,000			68,000			79,000			41,000
Unrealized (gain) loss on equity investments		(782,000	)		949,000
Unrealized (gain) loss on equity securities								(1,999,000	)		(274,000	)
Reserve for bad debts		(6,000	)		(3,000	)		(6,000	)		(6,000	)
Reserve for obsolete inventory		42,000			12,000			10,000			2,000
Deferred income taxes		191,000			(241,000	)		559,000			65,000
(Gain) loss on sale of assets		(5,000	)		—			(4,000	)		—
Net book value of assets retired		(17,000	)		—
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		460,000			514,000			32,000			486,000
Inventories		(506,000	)		(999,000	)		(637,000	)		(583,000	)
Prepaid expenses		43,000			164,000
Prepaid expenses and projects in process								73,000			271,000
Other receivables		2,000			(2,000	)		(10,000	)		5,000
Income tax overpayment		142,000			(106,000	)		—			114,000
Increase (decrease) in:
Accounts payable		16,000			(35,000	)		28,000			(36,000	)
Accrued expenses		—			(36,000	)		(104,000	)		11,000
Net cash provided by (used in) operating activities		3,015,000			2,275,000
Income tax payable								376,000			—
Net cash from operating activities								1,815,000			2,111,000

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		7,000			—			4,000			—
(Purchase) of property and equipment		(468,000	)		(88,000	)		(361,000	)		(179,000	)
Proceeds from sale of marketable securities		760,000			761,000			16,000			540,000
(Purchase) of marketable securities		(640,000	)		(839,000	)		(186,000	)		(250,000	)
(Purchase) of long-term investment		(27,000	)		—			—			(27,000	)
Net cash provided by (used in) investing activities		(368,000	)		(166,000	)
Net cash from investing activities								(527,000	)		84,000
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock		(71,000	)		(62,000	)		(1,000	)		(54,000	)
Dividends paid		(1,802,000	)		(1,752,000	)		(1,890,000	)		(1,802,000	)
Net cash provided by (used in) financing activities		(1,873,000	)		(1,814,000	)
Net cash from financing activities								(1,891,000	)		(1,856,000	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		774,000			295,000
NET CHANGE IN CASH AND CASH EQUIVALENTS								(603,000	)		339,000

Cash and Cash Equivalents, beginning of period		4,873,000			4,294,000			6,458,000			4,873,000
Cash and Cash Equivalents, end of period	$	5,647,000		$	4,589,000		$	5,855,000		$	5,212,000

Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes	$	870,000		$	900,000		$	650,000		$	605,000
Interest paid	$	—		$	1,000		$	—		$	—

Cash receipts for:
Income taxes	$	159,000		$	—		$	—		$	159,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

NOTES TO ~~RESTATED~~UNAUDITED CONDENSED FINANCIAL STATEMENTS

~~JANUARY~~OCTOBER 31, 2020

~~Note 1:~~

~~Unaudited Interim Financial Statements~~

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 ~~unaudited~~ condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, ~~2019~~2020 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 ~~February~~June 2016, the FASB issued ASU ~~2016-02, “Leases (Topic 842)~~No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ~~(“ASU 2016-02”)~~, which ~~provides guidance for accounting for leases. ASU 2016-02~~ requires ~~lessees~~entities to ~~classify leases as either finance or operating leases and to record~~use 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 recognizedforward looking approach based on ~~an effective interest rate method or~~expected losses to estimate credit losses on ~~a straight-line basis over~~certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the ~~term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02~~standard to provide additional clarification on specific topics. Topic 326 is effective for ~~the Company~~fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We have applied this guidance, as of 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”. ASU 2018-10 provides certain amendments that affect narrow aspects2020, using a modified-retrospective approach. The application of ~~the~~this 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 leases standard at the adoption date and recognizesdid not require a ~~cumulative-effect~~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 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 year 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~~effect on ~~the Company’s financial statements and related disclosures because leases are not material to the~~our financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 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. TheWe applied this 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 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, ~~2023.~~2020. The ~~Company will continue to evaluate the~~application of this guidance did not have a material effect ~~of adopting ASU 2016-13 will have~~ on ~~the Company’s financial statements and~~our disclosures.

In January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its ~~condensed~~ financial statements.

~~Revenue Recognition~~—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” or “ASC 606”. ASC 606 and all subsequently issued clarifying ASCs replaced most existing revenue recognition guidance in U.S. GAAP. ASC 606 also required expanded disclosures relatingThere are no other new accounting pronouncements that are expected to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard effective November 1, 2019. The effect of this adoption was immaterial tohave a significant impact on our ~~Financial Statements, and the Company does not expect a material effect to the Financial Statements on an ongoing basis.~~financial statements.

Note 2 Investments

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company applies the following standards and recognizes revenue when (1) it has a firm contract and the parties are committed to perform their respective obligations, (2) the product has been shipped to and accepted by the customer or the service has been provided, (3) the sales price is fixed or determinable and (4) amounts are reasonably assured of collection, including the consideration of the customer’s ability and intention to pay when the amount is due. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Revenue is recorded net of provisions for discounts, which are typically agreed to upfront with the customer and do not represent variable consideration. The Company estimates these discounts in the same period that the revenue is recognized for products sales to customers. The amount of revenue recognized represents the amount that will not be subject to a significant future reversal of revenue. All sales to distributors and customers are generally final. In limited instances the Company may accept returned product due to quality. During the current fiscal year, returns have not been material.

The Company’s customers generally pay within 60 days from the receipt of a valid invoice. The Company offers discounts of up to 2% to certain customers for payments made within a specified number of days. These early pay discounts are estimated in the period of sale based on experience with sales to eligible customers. Early pay discounts are recorded as a deduction to the accounts receivable balance presented on the balance sheet.

The Company’s performance obligations are satisfied at the point in time when products are shipped to the customer, which is when the customer has title and the significant risks and rewards of ownership.

~~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 and they are recorded at fair value.~~markets. The investments in debt securities, ~~have maturities~~which include municipal bonds and bond funds, mature between April ~~2020~~2021 and January 2044. The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported in ~~each~~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.

As of ~~January~~October 31, 2020 and April 30, ~~2019,~~2020, investments consisted of the following:

												Gross		Gross
Investments at			Gross		Gross					Cost		Unrealized		Unrealized			Fair
January 31, 2020	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
October 31, 2020										Basis		Gains		Losses			Value
Municipal bonds	$	5,402,000	$	156,000	$	(43,000	)	$	5,515,000	$	5,308,000	$	163,000	$	(41,000	)	$	5,430,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		3,000		(9,000	)		83,000		112,000		—		(41,000	)		71,000
Equity securities		17,167,000		4,870,000		(241,000	)		21,796,000		17,326,000		4,946,000		(684,000	)		21,588,000
Money markets and CDs		758,000		—		—			758,000		577,000		—		—			577,000
Total	$	23,442,000	$	5,029,000	$	(293,000	)	$	28,178,000	$	23,323,000	$	5,109,000	$	(766,000	)	$	27,666,000

												Gross		Gross
Investments at			Gross		Gross					Cost		Unrealized		Unrealized			Fair
April 30, 2019	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
April 30, 2020										Basis		Gains		Losses			Value
Municipal bonds	$	5,459,000	$	79,000	$	(55,000	)	$	5,483,000	$	5,271,000	$	80,000	$	(89,000	)	$	5,262,000
Corporate bonds		26,000		—		—			26,000		26,000		—		—			26,000
REITs		89,000		1,000		(6,000	)		84,000		112,000		—		(44,000	)		68,000
Equity securities		16,618,000		4,143,000		(296,000	)		20,465,000		17,119,000		3,446,000		(1,180,000	)		19,385,000
Money markets and CDs		1,233,000		—		—			1,233,000		581,000		—		—			581,000
Total	$	23,425,000	$	4,223,000	$	(357,000	)	$	27,291,000	$	23,109,000	$	3,526,000	$	(1,313,000	)	$	25,322,000

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~~statements of ~~Operations~~income in the period of the ~~change; and debt securities are carried at fair value on the balance sheets with changes in fair value recorded as unrealized gains or losses in the Statement of Comprehensive Income.~~change. 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. income.

The Company evaluates all marketable securities for ~~other-than temporary~~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. As a result of this standard, management ~~do not record an impairment loss for the quarter, but did record~~recorded an impairment loss of ~~$41,000~~$52,000 for the ~~nine~~quarter, and recorded a loss of $79,000 for the six months ended ~~January~~October 31, 2020. ~~For~~As for the corresponding periods last year, management recorded an impairment loss of ~~$36,000~~$7,000 for the quarter ended October 31, 2019 and ~~recorded a~~an impairment loss of ~~$68,000~~$41,000 was recorded for the ~~nine months~~six-months ended ~~January~~October 31, 2019.

The Company’s investments are actively traded in the stock and bond markets. Therefore, either a realized gain or loss is recorded when a sale happens. For the quarter ended October 31, 2020 the Company had sales of equity securities which yielded gross realized gains of $184,000 and gross realized losses of $110,000. For the same period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $2,000 were recorded. As for the six-months ended October 31, 2020 the Company had sales of equity securities which yielded gross realized gains of $286,000 and gross realized losses of $236,000. For the same six-month period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $6,000 were recorded. During the quarter ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $67,000 and $57,000, respectively, while sales of debt securities did not yield any gross realized gains or losses. During the six-months ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $220,000 and $161,000, respectively, as well as gross realized gains and losses on debt securities of $3,000 and $3,000, respectively. The gross realized loss numbers include the impaired figures listed in the previous paragraph.

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~~October 31, 2020 and April 30, ~~2019,~~2020, respectively.

Unrealized Loss Breakdown by Investment Type at ~~January~~October 31, 2020

	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	$	—	$	—		$	401,000	$	(43,000	)	$	401,000	$	(43,000	)	$	93,000	$	(1,000	)	$	333,000	$	(40,000	)	$	426,000	$	(41,000	)
REITs		—		—			57,000		(9,000	)		57,000		(9,000	)		28,000		(17,000	)		43,000		(24,000	)		71,000		(41,000	)
Equity securities		445,000		(48,000	)		1,930,000		(193,000	)		2,375,000		(241,000	)		4,218,000		(569,000	)		1,747,000		(115,000	)		5,965,000		(684,000	)
Total	$	445,000	$	(48,000	)	$	2,388,000	$	(245,000	)	$	2,833,000	$	(293,000	)	$	4,339,000	$	(587,000	)	$	2,123,000	$	(179,000	)	$	6,462,000	$	(766,000	)

Unrealized Loss Breakdown by Investment Type at April 30, ~~2019~~2020

	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	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)	$	2,203,000	$	(42,000	)	$	484,000	$	(47,000	)	$	2,687,000	$	(89,000	)
REITs		—		—			32,000		(6,000	)		32,000		(6,000	)		43,000		(30,000	)		24,000		(14,000	)		67,000		(44000	)
Equity securities		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)		5,496,000		(866,000	)		1,651,000		(314,000	)		7,147,000		(1,180,000	)
Total	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)	$	7,742,000	$	(938,000	)	$	2,159,000	$	(375,000	)	$	9,901,000	$	(1,313,000	)

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~~October 31, 2020.

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~~October 31, 2020.

~~Note 3:~~

~~Inventories~~

Note 3 Inventories

Inventories at ~~January~~October 31, 2020 and April 30, ~~2019~~2020 consisted of the following:

~~<TABLE>~~

	January 31,			April 30,			October 31,			April 30,
	2020			2019			2020			2020

Raw materials	$	4,102,000		$	3,644,000		$	4,784,000		$	4,233,000
Work in process		468,000			389,000			478,000			402,000
Finished goods		609,000			641,000			617,000			606,000
		5,179,000			4,674,000			5,879,000			5,241,000
Less: allowance for obsolete inventory		(133,000	)		(91,000	)		(148,000	)		(138,000	)
Totals	$	5,046,000		$	4,583,000
Inventories, net							$	5,731,000		$	5,103,000

~~Note 4:~~

~~Business Segments~~

Note 4 Business Segments

The following is financial information relating to industry segments:

	Three months			Nine months		Three months		Nine months		Three months		Six months		Three months			Six months
	ended			ended		Ended		ended		ended		ended		ended			ended
	Jan 31, 2020			Jan 31, 2020		Jan 31, 2019		Jan 31, 2019		Oct 31, 2020		Oct 31, 2020		Oct 31, 2019			Oct 31, 2019
Net revenue:
Security alarm products	$	2,909,000		$	8,700,000	$	2,735,000	$	8,103,000	$	3,632,000	$	6,962,000	$	2,985,000		$	5,852,000
Cable & wiring tools		547,000			1,680,000		576,000		1,929,000		620,000		1,019,000		571,000			1,071,000
Other products		133,000			472,000		144,000		519,000		395,000		713,000		154,000			340,000
Total net revenue	$	3,589,000		$	10,852,000	$	3,455,000	$	10,551,000	$	4,647,000	$	8,694,000	$	3,710,000		$	7,263,000

Income from operations:
Security alarm products	$	669,000		$	2,156,000	$	659,000	$	1,972,000	$	1,092,000	$	2,042,000	$	762,000		$	1,495,000
Cable & wiring tools		129,000			417,000		138,000		415,000		160,000		299,000		140,000			273,000
Other products		36,000			117,000		35,000		104,000		112,000		209,000		44,000			87,000
Total income from operations	$	834,000		$	2,690,000	$	832,000	$	2,491,000	$	1,364,000	$	2,550,000	$	946,000		$	1,855,000

Depreciation and amortization:
Security alarm products	$	(22,000	)	$	72,000	$	37,000	$	57,000	$	39,000	$	61,000	$	71,000		$	94,000
Cable & wiring tools		31,000			92,000		30,000		92,000		31,000		61,000		31,000			62,000
Other products		34,000			50,000		—		55,000		14,000		27,000		(4,000	)		16,000
Corporate general		50,000			62,000		14,000		44,000		19,000		40,000		(4,000	)		11,000
Total depreciation and amortization	$	93,000		$	276,000	$	81,000	$	248,000	$	103,000	$	189,000	$	94,000		$	183,000

Capital expenditures:
Security alarm products	$	—		$	178,000	$	35,000	$	35,000	$	149,000	$	242,000	$	10,000		$	179,000
Cable & wiring tools		—			—		—		—		—		—		—			—
Other products		18,000			18,000		37,000		37,000		111,000		113,000		—			—
Corporate general		272,000			272,000		16,000		16,000		6,000		6,000		—			—
Total capital expenditures	$	290,000		$	468,000	$	88,000	$	88,000	$	266,000	$	361,000	$	10,000		$	179,000

		January 31, 2020		April 30, 2019	October 31, 2020		April 30, 2020
Identifiable assets:
Security alarm products	$	6,478,000	$	6,179,000	$	7,849,000	$	7,150,000
Cable & wiring tools		2,676,000		2,713,000		2,586,000		2,684,000
Other products		733,000		842,000		967,000		724,000
Corporate general		34,859,000		33,293,000		34,756,000		33,204,000
Total assets	$	44,746,000	$	43,027,000	$	46,158,000	$	43,762,000

~~Note 5:~~

~~Earnings per Share (Restated)~~

Note 5 Earnings per Share

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

For the three months ended January 31, 2020
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 1,364,000

Basic EPS $ 1,364,000 4,950,524 $ 0.28
Effect of dilutive securities:
Convertible preferred stock — 20,500

Diluted EPS $ 1,364,000 4,971,024 $ 0.27

	For the three months ended October 31, 2020
	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
Net income	$	860,000
Basic EPS	$	860,000		4,949,902	$	.17
Effect of dilutive Convertible Preferred Stock		–		20,500		--
Diluted EPS	$	860,000		4,970,402	$	.17

For the nine months ended January 31, 2020
Income Shares Per-share
(Numerator) (Denominator) Amount
Net Income $ 3,296,000

Basic EPS $ 3,296,000 4,953,008 $ 0.67
Effect of dilutive securities:
Convertible preferred stock — 20,500

Diluted EPS $ 3,296,000 4,973,508 $ 0.66

	For the six months ended October 31, 2020
	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
Net income	$	3,352,000
Basic EPS	$	3,352,000		4,949,914	$	.68
Effect of dilutive Convertible Preferred Stock		–		20,500		--
Diluted EPS	$	3,352,000		4,970,414	$	.67

For the Three Months Ended January 31,

Originally
Filed 2019

Adjustment
2019

Restated
2019

Numerator
Net income $ 1,173,000 $ (131,000 ) $ 1,042,000

Denominator
Weighted average common shares outstanding, basic 4,961,018 — 4,961,018
Convertible Preferred Stock 20,500 — 20,500
Weighted average common shares outstanding, diluted 4,981,518 — 4,981,518
Net Income per share - Basic $ 0.24 $ (0.03 ) $ 0.21
Income per shares - Diluted $ 0.24 $ (0.03 ) $ 0.21

	For the three months ended October 31, 2019
	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
Net income	$	957,000
Basic EPS	$	957,000		4,952,110	$	.19
Effect of dilutive Convertible Preferred Stock		–		20,500		--
Diluted EPS	$	957,000		4,972,610	$	.19

For the Nine Months Ended January 31,

Originally
Filed 2019

Adjustment
2019

Restated
2019

Numerator
Net income $ 2,559,000 $ (675,000 ) $ 1,884,000

Denominator
Weighted average common shares outstanding, basic 4,963,592 — 4,963,592
Convertible Preferred Stock 20,500 — 20,500
Weighted average common shares outstanding, diluted 4,984,092 — 4,984,092
Net Income per share - Basic $ 0.52 $ (0.14 ) $ 0.38
Income per shares - Diluted $ 0.51 $ (0.13 ) $ 0.38

	For the six months ended October 31, 2019
	Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount
Net income	$	1,932,000
Basic EPS	$	1,932,000		4,954,250	$	.39
Effect of dilutive Convertible Preferred Stock		–		20,500		--
Diluted EPS	$	1,932,000		4,974,750	$	.39

~~Note 6:~~

~~Retirement Benefit Plan~~

Note 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.~~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 by the Company of approximately ~~$14,000~~$16,000 and ~~$2,000~~$7,000 were paid during ~~both the quarters~~each quarter ending ~~January~~October 31, 2020 and 2019, respectively. Likewise, the Company paid matching contributions of approximately ~~$23,000~~$29,000 and $9,000 during ~~the nine-month~~each six-month period ending ~~January~~October 31, 2020 and ~~$7,000 during the corresponding period the prior fiscal year.~~2019, respectively.

~~Note 7:~~

~~Fair Value Measurements~~

~~Generally accepted accounting principles in~~Note 7 Fair Value Measurements

The carrying value of the ~~United States of America (US GAAP) defines~~Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value asdue 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 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~~October 31, 2020, our investments consisted of money markets, ~~certificates of deposit,~~ publicly traded equity securities, real estate investment trusts ~~(REITS)~~(REITs) as well as certain state and municipal debt ~~securities and corporate bonds. Our~~securities. The marketable securities are valued using third-party broker statements. The value of the ~~investments~~majority of securities 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, 2020								Assets Measured at Fair Value on a Recurring Basis as of October 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,515,000	$	—	$	5,515,000	$	—	$	5,430,000	$	—	$	5,430,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		83,000		—		83,000		—		71,000		—		71,000
Equity Securities		21,796,000		—		—		21,796,000		21,588,000		—		—		21,588,000
Money Markets and CDs		758,000		—		—		758,000		577,000		—		—		577,000
Total fair value of assets measured on a recurring basis	$	22,580,000	$	5,598,000	$	—	$	28,178,000	$	22,165,000	$	5,501,000	$	—	$	27,666,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019								Assets Measured at Fair Value on a Recurring Basis as of April 30, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000	$	—	$	5,262,000	$	—	$	5,262,000
Corporate Bonds		26,000		—		—		26,000		26,000		—		—		26,000
REITs		—		84,000		—		84,000		—		68,000		—		68,000
Equity Securities		20,465,000		—		—		20,465,000		19,385,000		—		—		19,385,000
Money Markets and CDs		1,233,000		—		—		1,233,000		581,000		—		—		581,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000	$	19,992,000	$	5,330,000	$	—	$	25,322,000

Note 8 Notes Payable

~~Note 8:~~

~~Related Party Transactions~~

On April 15, 2020, the Company received loan proceeds of approximately $950,000 (the “PPP Loan”) from FirsTier Bank, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The PPP Loan, which was in the form of a Note dated April 15, 2020 issued to the Company, matures on April 15, 2022 and bears interest at a rate of 1% per annum, payable monthly commencing on November 15, 2020. If the Company submits a loan forgiveness application within ten months of the completion of the Covered Period, it will not be required to make any payments until the forgiveness amount is remitted to the lender by Small Business Administration (“SBA”). Interest accrues during the time between the disbursement of the loan and the SBA remittance of the forgiveness amount. The Company ~~purchased a building that it previously leased from Bonita Risk. Bonita Risk~~ is ~~a director and an employee~~responsible for paying the accrued interest only on the amount of the loan that is not forgiven. The lender is responsible for notifying the Company of remittance of the forgiveness amount by the SBA and, isif applicable, the ~~majority holder of George Risk Industries, Inc. stock. This building contains~~date on which the Company’s ~~sales and accounting departments, maintenance department, engineering department and some production facilities. The purchase price~~first payment of the ~~building~~remaining balance is due. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on certain other debt obligations. The Company used the entire PPP Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the PPP Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. On December 3, 2020, the Company received notice from the lender that the entire amount of the PPP loan was ~~$200,000 and the transaction happened during the Company’s third fiscal quarter.~~forgiven.

~~Note 9:~~

~~Subsequent Events~~

~~During and subsequent to~~Note 9 Subsequent Events

As stated above, the ~~third quarter~~Company received notification on December 3, 2020 from its lender of the ~~current fiscal year,~~Paycheck Protection Program (“PPP”) loan that the ~~world has been impacted by the spread~~full amount of the coronavirus (COVID-19). It has created significant economic uncertainty and volatility. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on our clients and client demand for our services and solutions; our ability to sell and provide our services and solutions, including as a result of travel restrictions and people working from home; the ability of our clients to pay for our services and solutions; and any closures of our and our clients’ offices and facilities. Any of these events could materially adversely affect our business, financial condition, results of operations and/or stock price.loan was forgiven.

The Company manufactures and supplies “essential” products and services to many critical industries, so our production facilities will continue to operate. The health and safety of our employees and their families remains our top priority. Therefore, we have implemented many Center of Disease Control protocols to keep them safe while the Company continues to produce products and provide service to our customers. While we are operating in a rapidly changing environment, we also continue to hear positive news from our raw material suppliers.

~~Note 10~~

~~Correction of Previously Issued Financial Statements~~

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and nine months ended January 31, 2020, 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 and nine months ended January 31, 2019.

~~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 three and nine month periods ending January 31, 2019:~~

For the Three Months Ended January 31, 2019
Original Adjustment As Restated
Income Statement

Unrealized Gain (Loss) on Equity Securities $ — $ (184,000 ) $ (184,000 )
Total Other Income (Expense) $ 641,000 $ (184,000 ) $ 457,000

Income Before Provisions for Income Taxes 1,473,000 (184,000 ) 1,289,000

Deferred tax expense (benefit) 9,000 (53,000 ) (44,000 )
Total Income Tax Expense 300,000 (53,000 ) 247,000

Net Income $ 1,173,000 $ (131,000 ) $ 1,042,000

Earnings Per Share of Common Stock $ 0.24 $ (0.03 ) $ 0.21
Basic $ 0.24 $ (0.03 ) $ 0.21
Diluted

For the Nine Months Ended January 31, 2019
Original Adjustment As Restated
Income Statement

Unrealized Gain (Loss) on Equity Securities $ — $ (949,000 ) $ (949,000 )
Total Other Income (Expense) $ 900,000 $ (949,000 ) $ (49,000 )

Income Before Provisions for Income Taxes 3,391,000 (949,000 ) 2,442,000

Deferred tax expense (benefit) 33,000 (274,000 ) (241,000 )
Total Income Tax Expense 832,000 (274,000 ) 558,000

Net Income $ 2,559,000 $ (675,000 ) $ 1,884,000

Earnings Per Share of Common Stock $ 0.52 $ (0.14 ) $ 0.38
Basic $ 0.51 $ (0.13 ) $ 0.38
Diluted

For the Three Months Ended January 31, 2019
Original Adjustment As Restated
Statement of Comprehensive Income
Net Income $ 1,173,000 $ (131,000 ) $ 1,042,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period 43,000 13,000 56,000
Less: reclassification adjustment for (gains) losses included in net income (171,000 ) 171,000 —
Income tax expense related to other comprehensive income 37,000 (53,000 ) (16,000 )
Other Comprehensive Income (Loss) $ (91,000 ) $ 131,000 $ 40,000

Comprehensive Income $ 1,082,000 $ — $ 1,082,000

For the Nine Months Ended January 31, 2019
Original Adjustment As Restated
Statement of Comprehensive Income
Net Income $ 2,559,000 $ (675,000 ) $ 1,884,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period (595,000 ) 816,000 221,000
Less: reclassification adjustment for (gains) losses included in net income (134,000 )
134,000
—
Income tax expense related to other comprehensive income 210,000 (274,000 ) (64,000 )
Other Comprehensive Income (Loss) $ (519,000 ) $
676,000
$
157,000

Comprehensive Income $ 2,040,000 $
1,000
$
2,041,000

Original Adjustment As Restated
Statement of Stockholders’ Equity
Balance, October 31, 2018 $ 36,748,000 $ 2,000 $ 36,750,000
Purchase of common stock (8,000 ) — (8,000 )
Unrealized gain (loss), net of tax effect (91,000 ) 131,000 40,000
Net Income 1,173,000 (131,000 ) 1,042,000
Balance, January 31, 2019 $ 37,822,000 $ 2,000 $ 37,824,000

Original Adjustment As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018 $ 37,730,000 $ — $ 37,730,000
Purchase of common stock (62,000 ) — (62,000 )
Dividend declared at $0.38 per common share outstanding (1,886,000 ) 1,000 (1,885,000 )
Impact of adoption of ASU 2016-01 — — —
Unrealized gain (loss), net of tax effect (519,000 ) 676,000 157,000
Net Income 2,559,000 (675,000 ) 1,884,000
Balance, January 31, 2019 $ 37,822,000 $ 2,000 $ 37,824,000

For the Nine Months Ended January 31, 2019
Original Adjustment As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income $ 2,559,000 $ (675,000 ) $ 1,884,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities — 949,000 949,000
Deferred income taxes 33,000 (274,000 ) (241,000 )
Net cash provided by (used in) operating activities $ 2,275,000 $ — $ 2,275,000

For the Three Months Ended January 31,
Originally Filed 2019 Adjustment 2019 Restated 2019
Numerator
Net income $ 1,173,000 $ (131,000 ) $ 1,042,000

Denominator
Weighted average common shares outstanding, basic 4,961,018 — 4,961,018
Convertible Preferred Stock 20,500 — 20,500
Weighted average common shares outstanding, diluted 4,981,518 — 4,981,518
Net Income per share - Basic $ 0.24 $ (0.03 ) $ 0.21
Income per shares - Diluted $ 0.24 $ (0.03 ) $ 0.21

For the Nine Months Ended January 31,
Originally Filed 2019 Adjustment 2019 Restated 2019
Numerator
Net income $ 2,559,000 $ (675,000 ) $ 1,884,000

Denominator
Weighted average common shares outstanding, basic 4,963,592 — 4,963,592
Convertible Preferred Stock 20,500 — 20,500
Weighted average common shares outstanding, diluted 4,984,092 — 4,984,092
Net Income per share - Basic $ 0.52 $ (0.14 ) $ 0.38

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations ~~(Restated)~~

MANAGEMENT DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS ~~(RESTATED)~~

This Quarterly Report on Form 10-Q, 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 information becomes available in the future.

The following discussion should be read in conjunction with the attached ~~unaudited~~ condensed financial statements, and with the Company’s audited financial statements and discussion for the fiscal year ended April 30, ~~2019.~~2020.

Executive Summary

The Company’s performance ~~has stayed steady~~continues to improve through the ~~three quarters,~~first half of the current fiscal year with ~~a slight increase in sales, managing cost~~the second quarter showing growth over the first quarter of ~~sales numbers, and strong investment returns.~~the current fiscal year. This is mainly due the closure of a competitor at the end of calendar year 2019 and having the ability to continue to work through the COVID-19 pandemic. The state of Nebraska, where we are located, has kept businesses open during the pandemic. Additionally, the Company’s products are traditionally tied to the ~~continuation of our quality USA made products~~housing market and with that market remaining strong, it in turn helps the Company’s sales grow. Opportunities include keeping up with the ~~ability for customization, our notable customer service, and the purchase of the assets of Labor Saving Devices, Inc. Opportunities include gaining~~ business ~~from a competitor that is getting out of the security switch business~~growth and to continue looking at businesses that might be a good fit to purchase. ~~New challenges~~We also have new products that have hit the ~~Company has endured over~~marketplace and a couple more that are scheduled to be introduced by the ~~nine~~end of the year. Challenges in the coming months ~~of this fiscal year~~ include continuing to get product out to customers in a ~~timelier~~timely manner and ~~to fill the stockroom with inventory to get back to shipping out core products the same day. Also, the price of raw materials has increased~~dealing with the ~~execution of tariffs by~~COVID-19 pandemic restrictions. Possible COVID-19 challenges include, but are not limited to, price increases and/or delays in the ~~US government~~supply chain, reduced sales, workforce interruptions, and ~~other factors. The COVID-19 virus is also a concern for management as availability to get raw materials may be hampered by~~economic conditions impacting the ~~pandemic. But management~~stock market. Management continues to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever before.

Results of Operations

●

Net sales were ~~$3,589,000~~$4,647,000 for the quarter ended ~~January~~October 31, 2020, which is a ~~3.88%~~25.26% increase from the corresponding quarter last year. Year-to-date net sales were ~~$10,852,000~~$8,694,000 at ~~January~~October 31, 2020, which is a ~~2.85%~~19.70% increase from the same period last year. The ~~steady growth~~increases in sales ~~is due~~are primarily a result of a competitor no longer selling competing products, as discussed above. Other than the loss of a competitor, the Company does not believe COVID-19 has had a significant effect on our net revenue and we do not expect it to ~~our~~have a significant effect going forward. Also, the ongoing commitment totowards outstanding customer service and ~~our ability~~customization of products are a few of the many reasons sales continue to ~~customize products. The Company is also seeing growth since a major competitor closed its doors at the end of 2019.~~grow.

●

Cost of goods sold was ~~51.04%~~49.37% of net sales for the quarter ended ~~January~~October 31, 2020 and was ~~51.29%~~50.13% for the same quarter last year. Year-to-date cost of goods sold percentages were ~~50.33%~~48.83% for the current ~~nine~~six months and ~~51.81%~~49.98% for the corresponding ~~nine~~six months last ~~year, which is just slightly over the target~~year. The current cost of goods sold percentages are right at Management’s goal of keeping labor and other manufacturing expenses at less than 50% for both the quarter and year-to-date results. Management ~~has seen increases in labor~~continues to work with and ~~materials costs~~train employees to work more efficiently and ~~initiated a~~they also work at getting the best price ~~increase that started in January 2020.~~for raw materials.

●

Operating expenses ~~increased by $72,000~~were up $85,000 for the quarter ~~as they increased by $107,000~~and were up $121,000 for the ~~nine-months~~six-months ended ~~January~~October 31, 2020 as compared to the corresponding periods last year. ~~These~~But when comparing percentages in relation to net sales, the operating expenses for the quarter ended October 31, 2020 was 21.28% of net sales while it was 24.37% of net sales for the same quarter the prior year. For year-to-date numbers, operating expense were 21.84% and 24.48% of net sales for the six months ended October 31, 2020 and 2019, respectively. 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 commission amounts (since sales have increased) and additional labor costs ~~are primarily due to increased commissions~~for hiring new employees and ~~wages for raises and the hiring of more employees.~~wage increases.

●

Income from operations for the quarter ended ~~January~~October 31, 2020 was at ~~$834,000~~$1,364,000, which is a ~~.24%~~44.19% increase from the corresponding quarter last year, which had income from operations of ~~$832,000.~~$946,000. Income from operations for the ~~nine~~six months ended ~~January~~October 31, 2020 was at ~~$2,690,000,~~$2,550,000, which is a ~~7.99%~~37.47% increase from the corresponding ~~nine~~six months last year, which had income from operations of ~~$2,491,000.~~$1,855,000.

●

Other income and expenses are ~~up $557,000~~down when comparing to the current quarter to the ~~same~~prior quarter, ~~last year. Comparatively, there is an increase~~with a decrease of ~~$1,757,000~~$167,000 in the current quarter. Conversely, other income and expenses are up by $1,699,000 when comparing the current six-month period to the prior six-month period. Most of the activity in these accounts consists of investment interest, dividends, real gains or losses on sale of investments, and unrealized gains or losses on equity securities. The main reason for the decrease in the current quarter as opposed to the increase for the year-to-date ~~numbers. Investments in marketable securities are presented at fair value and an~~numbers is the unrealized gain orand loss on equity securities. The Company is ~~recorded within~~at 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 nine months ended January 31, 2020 an unrealized gain was recorded, a non-cash entry, on marketable securities of $782,000. For the nine months ended January 31, 2019 an unrealized loss of $949,000 was recorded. The remaindermercy of the ~~increase is primarily due~~stock market when it comes to ~~increased dividend~~these figures and ~~interest income and taking gains on~~ the ~~sale of investments.~~COVID-19 pandemic influenced these numbers.

●

Overall, net income for the quarter ended ~~January~~October 31, 2020 was ~~up $322,000,~~down $97,000, or ~~30.90%~~10.14%, from the same quarter last year. ~~Similarly,~~Conversely, net income for the ~~nine-month~~six-month period ended ~~January~~October 31, 2020 was up ~~$1,412,000,~~$1,420,000, or ~~74.95%~~73.5%, from the same period in the prior year.

●

Earnings per common share for quarter ~~and nine months~~ ended ~~January~~October 31, 2020 were ~~$0.28~~$0.17 per share and ~~$0.67~~$0.68 per share ~~respectively.~~for the year-to-date numbers. EPS for the quarter and ~~nine~~six months ended ~~January~~October 31, 2019 were ~~$0.21~~$0.19 per share and ~~$0.38~~$0.39 per share, respectively.

Liquidity and capital resources

Operating

●

Net cash ~~increased $774,000~~decreased $603,000 during the ~~nine~~six months ended ~~January~~October 31, 2020 as compared to an increase of ~~$295,000~~$339,000 during the corresponding period last year.

	●	Accounts receivable decreased ~~$460,000~~$32,000 for the ~~nine~~six months ended ~~January~~October 31, 2020 compared with a ~~$514,000~~$486,000 decrease for the same period last year. The smaller current year decrease is a result of improved sales and collections ofon accounts receivable have improved over the last year. An analysis of accounts ~~receivable~~ shows that there were only ~~0.30%~~0.27% that were over 90 days at ~~January~~October 31, 2020.

	●	Inventories increased ~~$506,000~~$637,000 during the current ~~nine-month~~six-month period as compared to ana $583,000 increase ~~of $999,000~~ last year. The ~~smaller~~bigger increase in the current year is primarily due to ~~increased sales, not having~~being prepared for the increase we have seen in sales. In addition, the Company is keeping more inventory on hand to reduce the likelihood of running into a ~~stockpile of finished goods, and~~shortage on some ~~issues with getting some vital~~major raw materials, ~~in a timely manner.~~such as we experienced last year.

	●	Prepaid expenses saw a ~~$43,000~~$73,000 decrease for the current ~~nine~~six months, primarily due to ~~inventory being delivered that had been paid for in advance.~~less prepayment of raw materials and running through some of our prepaid agreements without needing to renew them. The prior ~~nine~~six months showed a ~~$164,000 decrease~~$271,000 increase in prepaid expenses.
	●	Income tax overpayment for the nine months ended January 31, 2020 decreased $142,000, as the overpayment showed an increase of $106,000 for the same period the prior year. The main reason for the current decrease is that the Company has generated additional income without the need to increase income tax estimates.
	●	Accounts payable shows ~~a $16,000~~an increase for the current ~~nine-month~~six-month period ~~ended January 31, 2020 as compared to~~of $28,000 while it shows a ~~$35,000~~ decrease for the prior ~~nine-month period.~~six-month periods of $36,000. The company strives to pay all invoices within terms, and the variance in ~~increases~~the decreases is primarily due to the timing of receipt of products and payment of invoices.

	●	Accrued expenses ~~did not have any cash flow change~~decreased $104,000 for the current ~~nine-month~~six-month period as compared to ~~a $36,000 decrease~~an $11,000 increase for the ~~nine-month~~six-month period ended ~~January~~October 31, 2019. The difference in the amounts is primarily due to timing issues.


	●	Income tax payable increased $376,000 for the current six-month period, compared to having a decrease in income tax overpayment for the six-months ended October 31, 2019. The current increase is largely due to having increased sales and income and not having income tax estimates large enough. Also, since the Company was notified that the PPP loan was forgiven, the forgiveness amount was included in the income tax expense calculation.

Investing

	●	As for our investment activities, the Company ~~spent approximately $468,000 on acquisitions~~purchased $361,000 of property and equipment ~~for~~during the current ~~nine-month period, in~~six-month period. In comparison, ~~with~~$179,000 was spent on purchases of property and equipment during the corresponding ~~nine~~six months last ~~year, where there was activity of $88,000.~~year.

	●	~~Additionally, the~~The Company continues to purchase marketable securities, which include municipal bonds and quality stocks. During the ~~nine-month~~six-month period ended ~~January~~October 31, 2020 there was quite a bit of buy/sell activity in the investment accounts. Net cash spent on purchases of marketable securities for the ~~nine-month~~six-month period ended ~~January~~October 31, 2020 was ~~$640,000~~$186,000 compared to ~~$839,000~~$250,000 spent in the prior ~~nine-month~~six-month period. ~~The Company continues~~We continue to use “money manager” accounts for most stock transactions. By doing this, the Company gives an independent third-party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays a quarterly service fee based on the value of the investments. The COVID-19 pandemic has had a negative impact on the performance of the stock market, which has affected the real and unrealized gains/losses. Management believes that more realized losses were recorded when investments were sold and more write downs had to be recorded.

Financing

	●	On April 15, 2020, the Company received loan proceeds of approximately $950,000 from FirsTier Bank, pursuant to the Paycheck Protection Program under Division A, Title I of the CARES Act, which was enacted March 27, 2020. Please refer to Note 8 for more information about the loan. In accordance with the terms of the loan, the Company used the proceeds for qualified operating expenses. As of December 3, 2020, the liability of this loan has been completely forgiven.

	●	The Company continues to purchase back its common stock when the opportunity arises. For the ~~nine-month~~six-month period ended ~~January~~October 31, 2020, the Company purchased ~~$71,000~~$1,000 worth of treasury ~~stock. This is~~stock, in comparison to ~~$62,000 spent~~$54,000 repurchased in the ~~same nine months~~corresponding six-month period ~~the prior~~last year.

	●	The company ~~paid out dividends of $1,802,000 during the nine months ending January 31, 2020. These dividends were paid during the second quarter. The company~~ declared a dividend of ~~$0.40~~$0.42 per share of common stock on September 30, ~~2019 and these dividends were~~2020, which was paid ~~by October 31, 2019. As for~~out during the ~~prior year numbers, dividends paid was $1,752,000 for~~second quarter. This is a slight increase to the ~~nine months ending January 31, 2019. A~~ dividend of ~~$0.38 per common share~~$0.40, which was declared and paid during the second fiscal quarter last year.

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

	As of				As of
	January 31, 2020		January 31, 2019		October 31, 2020		October 31, 2019
Working capital (current assets – current liabilities)	$	39,119,000	$	35,493,000	$	38,744,000	$	37,805,000
Current ratio (current assets / current liabilities)		16.831		16.299		10.901		16.564
Quick ratio ((cash + investments + AR) / current liabilities)		14.597		13.963		9.317		14.333

New Product Development

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

●

~~A new face plate~~Explosion proof contacts that will be UL listed for hazardous locations. There has been demand from 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.~~customers for this type of high security magnetic reed switch.

●

An updated version of the pool access alarm is(PAA) has met electrical listing testing (ETL) approval and we are currently ~~going through electrical listing~~waiting on component parts to begin production and field 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.

	●	We continue our work on high security switches. We have a triple biased high security switch design and an adjustable magnet design was completed for recessed mounting applications. This is ready to be sent to in for electrical listing testing.
	●	We have introduced the GR1840 Oval Metal Door Channel Magnet. This is a direct replacement for the obsolete Interlogix magnet. This magnet fits into the top channel of a metal door and does not require drilling into the door core. We have also paired this with several of our ¾” and 1” steel door contacts.
	●	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 our pool access 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.

●

~~We are ready to launch a new Labor Saving Device’s product. It~~In the high security realm, the Company has introduced the 2707 Series which is a ~~12” adjustable hole cutter which compliments the popular 10” hole cutter. Using a standard drill, this tool allows you~~triple high biased magnetic reed contact and available in SPDT and DPDT models. These contacts are resistant to ~~drill various size holes~~magnetic tamper and defeat. They are used in ~~the ceiling for speakers~~applications such as airports, biotechnology labs, manufacturing plants, banks, military bases, and ~~canned lights. The dust bin, which buts against the ceiling, keeps the ceiling material and dust enclosed making for a clean, time saving installation.~~energy-generation facilities.

●

~~Another LSDI product is new lighted Bullnose~~The 3045 Panic Switch contains screw terminals and uses an actuating lever which can be triggered with only the tip ~~in a variety of colors (red, green and blue) to go along with the standard clear lights. These colored lights are placed on FiberFuse wire running rods which allows for easy location~~ of the ~~rod ends in dark places such as attics and crawlspaces. The rods~~finger. It can be ~~color coded~~installed under a counter or desk or any similar place. The 3045CT uses 12’ extreme temperature rated wire for ~~wire paths running into different rooms. Larger batteries add to~~installation in refrigerators and freezers. Both models have a latching LED indicating when the ~~longevity of these new lights.~~switch is activated and automatically resets when the lever is closed and is fully re-armed. Latching LED and UL Listed versions will follow.

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 ~~February~~June 2016, the FASB issued ASU ~~2016-02, “Leases (Topic 842)~~No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ~~(“ASU 2016-02”)~~, which ~~provides guidance for accounting for leases. ASU 2016-02~~ requires ~~lessees~~entities to ~~classify leases as either finance or operating leases and to record~~use 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 recognizedforward looking approach based on ~~an effective interest rate method or~~expected losses to estimate credit losses on ~~a straight-line basis over~~certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the ~~term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02~~standard to provide additional clarification on specific topics. Topic 326 is effective for ~~the Company beginning November 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”)~~fiscal years, and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”). 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 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. The Company adopted the ASUs in the first quarter of 2019 and the Company’s accounting systems will be upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 will not have a material impact on the Company’s financial statements and related disclosures.

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income (loss) are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income (loss) to retained earnings (accumulated deficit) for stranded income tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The amendments in this ASU also require certain disclosures about stranded income tax effects. The guidance is effective forinterim periods within those fiscal years, beginning after December 15, ~~2018, and interim periods within those fiscal years. Early adoption in any period is permitted.~~2019. We have applied this guidance, as of May 1, 2020, using a modified-retrospective approach. The ~~Company has not yet adopted ASU 2018-02 and is currently evaluating the potential impact~~application of ~~adopting the applicable~~this guidance ~~on the Company’s financial statements and related disclosures.~~

In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in ASU 2018-09 dodid not require ~~transition guidance~~a cumulative effect adjustment to retained earnings and were effective upon issuance of ASU 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. We are currently evaluating the potential impact of adopting the applicable guidance; however we dodid not ~~believe that the adoption of ASU 2018-09 will~~ have a material ~~impact~~effect on ~~the Company’s~~our financial ~~statements and related disclosures.~~statements.

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. TheWe applied this guidance, ~~is effective for 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 2016-13(“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, ~~2023.~~2020. The ~~Company will continue to evaluate the~~application of this guidance did not have a material effect ~~of adopting ASU 2016-13 will have~~ on ~~the Company’s financial statements and~~our disclosures.

There are no other new accounting pronouncements that are expected to have a significant impact on our financial statements.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

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~~October 31, 2020. Based on that evaluation, ~~our chief executive officer (also working as our chief financial officer)~~management 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 continue to operate with~~In our annual report filed on Report 10-K for the year ended April 30 ,2020, management identified the following material weakness in our internal control over financial reporting:

●

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 over annual and quarterly filings does not occur. 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 for financial reporting purposes.

During the quarter ending October 31, 2020, a ~~limited number of accounting and financial personnel. A new accounting professional~~Controller was hired by the Company in ~~2018 to fill the Controller position. Continued training~~September 2020. 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 for this new Controller, we believe this control deficiency represents material weaknesses in internal control over financial reporting. To mitigate the effects of the material weakness identified in our annual report, the Company contracted with an outside CPA to perform a secondary review of our quarterly report filed on Form 10-Q.

Despite the material weaknesses in financial reporting noted above, we believe that our ~~condensed~~consolidated financial statements included in this 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~~over Financial Reporting

~~There was~~Other than those mentioned above, there were no ~~change~~changes in our internal control over financial reporting during the fiscal quarter ended ~~January~~October 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

GEORGE RISK INDUSTRIES, INC.

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 and issuance of common stock for the ~~third~~second quarter of fiscal year ~~2020.~~2021.

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
	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	~~May 22,~~December 15, 2020	By:	/s/ Stephanie M. Risk-McElroy
			Stephanie M. Risk-McElroy
			President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, October 31, 2019		4,100	$	99,000		8,502,881	$	850,000

Dividend declared at $0.40 per common share outstanding		—		—		—		—

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

Net Income		—		—		—		—

Balances, January 31, 2020		4,100	$	99,000		8,502,881	$	850,000

							Accumulated
Paid-In		Treasury Stock (Common Class A)					Other Comprehensive		Retained
Capital		Shares		Amount			Income		Earnings		Total
$	1,934,000		3,550,771	$	(4,281,000	)	$	50,000	$	40,834,000	$	39,486,000

	—		1,850		(17,000	)		—		—		(17,000	)

	—		—		—			19,000		—		19,000

	—		—		—			—		1,364,000		1,364,000

$	1,934,000		3,552,621	$	(4,297,000	)	$	69,000	$	42,198,000	$	40,852,000

		Treasury Stock					Accumulated Other
Paid-In		(Common Class A)					Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings		Total
$	1,934,000	3,541,234		$	(4,202,000	)	$	(58,000	)	$	38,127,000	$	36,750,000

	—		937		(8,000	)		—			—		(8,000	)

	—		—		—			40,000			—		40,000

	—		—		—			—			1,042,000		1,042,000

$	1,934,000		3,542,171	$	(4,210,000	)	$	(18,000	)	$	39,169,000	$	37,824,000

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000

Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000

Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38
Income per shares - Diluted	$	0.51	$	(0.13	)	$	0.38

	For the Three Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement

Unrealized Gain (Loss) on Equity Securities	$	—	$	(184,000	)	$	(184,000	)
Total Other Income (Expense)	$	641,000	$	(184,000	)	$	457,000

Income Before Provisions for Income Taxes		1,473,000		(184,000	)		1,289,000

Deferred tax expense (benefit)		9,000		(53,000	)		(44,000	)
Total Income Tax Expense		300,000		(53,000	)		247,000

Net Income	$	1,173,000	$	(131,000	)	$	1,042,000

Earnings Per Share of Common Stock	$	0.24	$	(0.03	)	$	0.21
Basic	$	0.24	$	(0.03	)	$	0.21
Diluted

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000

Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

Number of shares ~~repurchased~~

repurchased/(issued)

~~November 1, 2019 – November 30, 2019~~

~~December 1, 2019 – December 31, 2019~~

~~January~~August 1, 2020 – ~~January~~August 31, 2020

September 1, 2020 – September 30, 2020

~~300~~-0-

October 1, 2020 – October 31, 2020