Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2018 | Sep. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | GEORGE RISK INDUSTRIES, INC. | |
Entity Central Index Key | 84,112 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,962,447 | |
Trading Symbol | RSKIA | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 4,947,000 | $ 4,294,000 |
Investments and securities, at fair value | 27,161,000 | 26,346,000 |
Accounts receivable: | ||
Trade, net of $10,075 and $6,651 doubtful account allowance | 2,308,000 | 2,545,000 |
Other | 1,000 | 2,000 |
Income tax overpayment | 504,000 | 747,000 |
Inventories, net | 3,650,000 | 3,267,000 |
Prepaid expenses | 401,000 | 603,000 |
Total Current Assets | 38,972,000 | 37,804,000 |
Property and Equipment, net, at cost | 1,024,000 | 1,076,000 |
Other Assets | ||
Investment in Limited Land Partnership, at cost | 293,000 | 293,000 |
Other | 41,000 | 6,000 |
Total Other Assets | 334,000 | 299,000 |
Intangible assets, net | 1,732,000 | 1,763,000 |
TOTAL ASSETS | 42,062,000 | 40,942,000 |
Current Liabilities | ||
Accounts payable, trade | 329,000 | 336,000 |
Dividends payable | 1,579,000 | 1,580,000 |
Accrued expenses: | ||
Payroll and related expenses | 166,000 | 329,000 |
Property taxes | 3,000 | 12,000 |
Total Current Liabilities | 2,077,000 | 2,257,000 |
Long-Term Liabilities | ||
Deferred income taxes | 1,179,000 | 955,000 |
Total Long-Term Liabilities | 1,179,000 | 955,000 |
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 |
Additional paid-in capital | 1,934,000 | 1,934,000 |
Accumulated other comprehensive income | 2,712,000 | 2,249,000 |
Retained earnings | 37,364,000 | 36,746,000 |
Less: treasury stock, 3,535,434 and 3,534,784 shares, at cost | (4,153,000) | (4,148,000) |
Total Stockholders' Equity | 38,806,000 | 37,730,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 42,062,000 | $ 40,942,000 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Allowance for doubtful account receivable | $ 10,075 | $ 6,651 |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,502,881 | 8,502,881 |
Common stock, shares outstanding | 8,502,881 | 8,502,881 |
Treasury stock, shares | 3,535,434 | 3,534,784 |
Series 1 Noncumulative Preferred Stock [Member] | ||
Convertible preferred stock, shares authorized | 25,000 | 25,000 |
Convertible preferred stock, stated value | $ 20 | $ 20 |
Convertible preferred stock, shares issued | 4,100 | 4,100 |
Convertible preferred stock, shares outstanding | 4,100 | 4,100 |
Condensed Income Statements (Un
Condensed Income Statements (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement [Abstract] | ||
Net Sales | $ 3,429,000 | $ 2,248,000 |
Less: Cost of Goods Sold | (1,801,000) | (1,095,000) |
Gross Profit | 1,628,000 | 1,153,000 |
Operating Expenses: | ||
General and Administrative | 286,000 | 229,000 |
Sales | 555,000 | 416,000 |
Engineering | 9,000 | 13,000 |
Rent Paid to Related Parties | 5,000 | 5,000 |
Total Operating Expenses | 855,000 | 663,000 |
Income From Operations | 773,000 | 490,000 |
Other Income (Expense) | ||
Other | 3,000 | 3,000 |
Dividend and Interest Income | 193,000 | 279,000 |
Gain (Loss) on Sales of Assets | 4,000 | |
Gain (Loss) on Sale of Investments | (68,000) | (38,000) |
Total Other Income (Expense) | 128,000 | 248,000 |
Income Before Provisions for Income Taxes | 901,000 | 738,000 |
Provisions for Income Taxes | ||
Current Expense | 247,000 | 213,000 |
Deferred tax expense (benefit) | 37,000 | 7,000 |
Total Income Tax Expense | 284,000 | 220,000 |
Net Income | $ 617,000 | $ 518,000 |
Basic Earnings Per Share of Common Stock | $ 0.12 | $ 0.1 |
Diluted Earnings Per Share of Common Stock | $ 0.12 | $ 0.1 |
Weighted Average Number of Common Shares Outstanding | 4,967,580 | 4,945,092 |
Weighted Average Number of Shares Outstanding (Diluted) | 4,988,080 | 4,965,592 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 617,000 | $ 518,000 |
Other Comprehensive Income, Net of Tax Unrealized gain (loss) on securities: | ||
Unrealized holding gains (losses) arising during period | 607,000 | 629,000 |
Reclassification adjustment for gains (losses) included in net income | 44,000 | (84,000) |
Income tax expense related to other comprehensive income | (188,000) | (228,000) |
Other Comprehensive Income (Loss) | 463,000 | 317,000 |
Comprehensive Income | $ 1,080,000 | $ 835,000 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 617,000 | $ 518,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 83,000 | 41,000 |
(Gain) loss on sale of investments | 68,000 | 38,000 |
Reserve for bad debts | 3,000 | |
Reserve for obsolete inventory | 6,000 | |
Deferred income taxes | 37,000 | 7,000 |
(Gain) loss on sale of assets | (4,000) | |
(Increase) decrease in: | ||
Accounts receivable | 234,000 | 257,000 |
Inventories | (389,000) | (62,000) |
Prepaid expenses | 166,000 | 63,000 |
Employee receivables | 1,000 | |
Income tax overpayment | 244,000 | 208,000 |
Increase (decrease) in: | ||
Accounts payable | (7,000) | 112,000 |
Accrued expenses | (172,000) | (163,000) |
Net cash provided by (used in) operating activities | 890,000 | 1,016,000 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of assets | 4,000 | |
(Purchase) of property and equipment | (253,000) | |
Proceeds from sale of marketable securities | 2,000 | 2,000 |
(Purchase) of marketable securities | (233,000) | (224,000) |
Net cash provided by (used in) investing activities | (231,000) | (471,000) |
Cash Flows From Financing Activities: | ||
(Purchase) of treasury stock | (5,000) | (3,000) |
Dividends paid | (1,000) | |
Net cash provided by (used in) financing activities | (6,000) | (3,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 653,000 | 542,000 |
Cash and Cash Equivalents, beginning of period | 4,294,000 | 6,456,000 |
Cash and Cash Equivalents, end of period | 4,947,000 | 6,998,000 |
Supplemental Disclosure for Cash Flow Information: | ||
Income taxes paid | 0 | 0 |
Interest paid | $ 1,000 | $ 0 |
Unaudited Interim Financial Sta
Unaudited Interim Financial Statements | 3 Months Ended |
Jul. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, 2018 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 Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning 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”) 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 will adopt 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 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company has not yet adopted ASU 2018-02 and is currently evaluating the potential impact of adopting the applicable 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 do not require transition guidance 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 do not believe that the adoption of ASU 2018-09 will have a material impact on the Company’s financial statements and related disclosures. 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 if 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. |
Investments
Investments | 3 Months Ended |
Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 2: Investments The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets. The investments in securities are classified as available-for-sale securities, and are reported at fair value. Available-for-sale investments in debt securities mature between August 2018 and November 2048. The Company uses the average cost method to determine the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned. As of July 31, 2018 and April 30, 2018, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2018 Basis Gains Losses Value Municipal bonds $ 5,917,000 $ 65,000 $ (99,000 ) $ 5,883,000 Corporate bonds $ 30,000 $ 1,000 $ - $ 31,000 REITs $ 110,000 $ 11,000 $ (3,000 ) $ 118,000 Equity securities $ 16,103,000 $ 4,105,000 $ (270,000 ) $ 19,938,000 Money markets and CDs $ 1,191,000 $ - $ - $ 1,191,000 Total $ 23,351,000 $ 4,182,000 $ (372,000 ) $ 27,161,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2018 Basis Gains Losses Value Municipal bonds $ 5,984,000 $ 66,000 $ (309,000 ) $ 5,741,000 Corporate bonds $ 129,000 $ 2,000 $ — $ 131,000 REITs $ 110,000 $ 3,000 $ (7,000 ) $ 106,000 Equity securities $ 15,930,000 $ 3,714,000 $ (311,000 ) $ 19,333,000 Money markets and CDs $ 1,035,000 $ — $ — $ 1,035,000 Total $ 23,188,000 $ 3,785,000 $ (627,000 ) $ 26,346,000 The Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management did not need to record any impairment losses for either of the quarters ended July 31, 2018 and July 31, 2017. The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at July 31, 2018 and April 30, 2018, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,857,000 $ (9,000 ) $ 1,211,000 $ (90,000 ) $ 3,068,000 $ (99,000 ) REITs $ 35,000 $ (3,000 ) $ — $ — $ 35,000 $ (3,000 ) Equity securities $ 1,269,000 $ (100,000 ) $ 1,146,000 $ (170,000 ) $ 2,415,000 $ (270,000 ) Total $ 3,161,000 $ (112,000 ) $ 2,357,000 $ (260,000 ) $ 5,518,000 $ (372,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 702,000 $ (152,000 ) $ 1,674,000 $ (86,000 ) $ 2,376,000 $ (238,000 ) REITs $ 56,000 $ (5,000 ) $ 27,000 $ (1,000 ) $ 83,000 $ (6,000 ) Equity securities $ 534,000 $ (35,000 ) $ 590,000 $ (168,000 ) $ 1,124,000 $ (203,000 ) Total $ 1,292,000 $ (192,000 ) $ 2,291,000 $ (225,000 ) $ 3,583,000 $ (447,000 ) 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 July 31, 2018. 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 July 31, 2018. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3: Inventories Inventories at July 31, 2018 and April 30, 2018 consisted of the following: July 31, 2018 April 30, 2018 Raw materials $ 2,774,000 $ 2,450,000 Work in process 483,000 444,000 Finished goods 489,000 463,000 3,746,000 3,357,000 Less: allowance for obsolete inventory (96,000 ) (90,000 ) Totals $ 3,650,000 $ 3,267,000 |
Business Segments
Business Segments | 3 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Note 4: Business Segments The following is financial information relating to industry segments: July 31, 2018 2017 Net revenue: Security alarm products $ 2,150,000 $ 1,798,000 Cable & wiring tools 679,000 — Other products 600,000 450,000 Total net revenue $ 3,429,000 $ 2,248,000 Income from operations: Security alarm products $ 485,000 $ 392,000 Cable & wiring tools 153,000 — Other products 135,000 98,000 Total income from operations $ 773,000 $ 490,000 Identifiable assets: Security alarm products $ 3,848,000 $ 3,934,000 Cable & wiring tools 2,783,000 — Other products 2,024,000 749,000 Corporate general 33,407,000 34,797,000 Total assets $ 42,062,000 $ 39,480,000 Depreciation and amortization: Security alarm products $ 10,000 $ 8,000 Cable & wiring tools 31,000 — Other products 27,000 21,000 Corporate general 15,000 12,000 Total depreciation and amortization $ 83,000 $ 41,000 Capital expenditures: Security alarm products $ — $ 210,000 Cable & wiring tools — — Other products — — Corporate general — 43,000 Total capital expenditures $ — $ 253,000 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5: Earnings per Share Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: For the three months ended July 31, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 617,000 Basic EPS $ 617,000 4,967,580 $ .1242 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 617,000 4,988,080 $ .1237 For the three months ended July 31, 2017 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 518,000 Basic EPS $ 518,000 4,945,092 $ .1048 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 518,000 4,965,592 $ .1043 |
Retirement Benefit Plan
Retirement Benefit Plan | 3 Months Ended |
Jul. 31, 2018 | |
Retirement Benefits [Abstract] | |
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. The Plan is intended to be qualified under Section 401 (k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $2,000 were paid during both the quarter ending July 31, 2018 and 2017, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7: Fair Value Measurements Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Investments and Marketable Securities As of July 31, 2018, our investments consisted of money markets, certificates of deposits (CDs), publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the investments is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2. Fair Value Hierarchy The following 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 July 31, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,883,000 $ — $ 5,883,000 Corporate Bonds $ 31,000 $ — $ — $ 31,000 REITs $ — $ 118,000 $ — $ 118,000 Equity Securities $ 19,938,000 $ — $ — $ 19,938,000 Money Markets and CDs $ 1,191,000 $ — $ — $ 1,191,000 Total fair value of assets measured on a recurring basis $ 21,160,000 $ 6,001,000 $ — $ 27,161,000 Assets Measured at Fair Value on a Recurring Basis as of April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,741,000 $ — $ 5,741,000 Corporate Bonds $ 131,000 $ — $ — $ 131,000 REITs $ — $ 106,000 $ — $ 106,000 Equity Securities $ 19,333,000 $ — $ — $ 19,333,000 Money Markets and CDs $ 1,035,000 $ — $ — $ 1,035,000 Total fair value of assets measured on a recurring basis $ 20,499,000 $ 5,847,000 $ — $ 26,346,000 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Events None |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | As of July 31, 2018 and April 30, 2018, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2018 Basis Gains Losses Value Municipal bonds $ 5,917,000 $ 65,000 $ (99,000 ) $ 5,883,000 Corporate bonds $ 30,000 $ 1,000 $ - $ 31,000 REITs $ 110,000 $ 11,000 $ (3,000 ) $ 118,000 Equity securities $ 16,103,000 $ 4,105,000 $ (270,000 ) $ 19,938,000 Money markets and CDs $ 1,191,000 $ - $ - $ 1,191,000 Total $ 23,351,000 $ 4,182,000 $ (372,000 ) $ 27,161,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2018 Basis Gains Losses Value Municipal bonds $ 5,984,000 $ 66,000 $ (309,000 ) $ 5,741,000 Corporate bonds $ 129,000 $ 2,000 $ — $ 131,000 REITs $ 110,000 $ 3,000 $ (7,000 ) $ 106,000 Equity securities $ 15,930,000 $ 3,714,000 $ (311,000 ) $ 19,333,000 Money markets and CDs $ 1,035,000 $ — $ — $ 1,035,000 Total $ 23,188,000 $ 3,785,000 $ (627,000 ) $ 26,346,000 |
Schedule of Unrealized Loss Breakdown by Investment | The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at July 31, 2018 and April 30, 2018, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 1,857,000 $ (9,000 ) $ 1,211,000 $ (90,000 ) $ 3,068,000 $ (99,000 ) REITs $ 35,000 $ (3,000 ) $ — $ — $ 35,000 $ (3,000 ) Equity securities $ 1,269,000 $ (100,000 ) $ 1,146,000 $ (170,000 ) $ 2,415,000 $ (270,000 ) Total $ 3,161,000 $ (112,000 ) $ 2,357,000 $ (260,000 ) $ 5,518,000 $ (372,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 702,000 $ (152,000 ) $ 1,674,000 $ (86,000 ) $ 2,376,000 $ (238,000 ) REITs $ 56,000 $ (5,000 ) $ 27,000 $ (1,000 ) $ 83,000 $ (6,000 ) Equity securities $ 534,000 $ (35,000 ) $ 590,000 $ (168,000 ) $ 1,124,000 $ (203,000 ) Total $ 1,292,000 $ (192,000 ) $ 2,291,000 $ (225,000 ) $ 3,583,000 $ (447,000 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at July 31, 2018 and April 30, 2018 consisted of the following: July 31, 2018 April 30, 2018 Raw materials $ 2,774,000 $ 2,450,000 Work in process 483,000 444,000 Finished goods 489,000 463,000 3,746,000 3,357,000 Less: allowance for obsolete inventory (96,000 ) (90,000 ) Totals $ 3,650,000 $ 3,267,000 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to Industry Segments | The following is financial information relating to industry segments: July 31, 2018 2017 Net revenue: Security alarm products $ 2,150,000 $ 1,798,000 Cable & wiring tools 679,000 — Other products 600,000 450,000 Total net revenue $ 3,429,000 $ 2,248,000 Income from operations: Security alarm products $ 485,000 $ 392,000 Cable & wiring tools 153,000 — Other products 135,000 98,000 Total income from operations $ 773,000 $ 490,000 Identifiable assets: Security alarm products $ 3,848,000 $ 3,934,000 Cable & wiring tools 2,783,000 — Other products 2,024,000 749,000 Corporate general 33,407,000 34,797,000 Total assets $ 42,062,000 $ 39,480,000 Depreciation and amortization: Security alarm products $ 10,000 $ 8,000 Cable & wiring tools 31,000 — Other products 27,000 21,000 Corporate general 15,000 12,000 Total depreciation and amortization $ 83,000 $ 41,000 Capital expenditures: Security alarm products $ — $ 210,000 Cable & wiring tools — — Other products — — Corporate general — 43,000 Total capital expenditures $ — $ 253,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: For the three months ended July 31, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 617,000 Basic EPS $ 617,000 4,967,580 $ .1242 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 617,000 4,988,080 $ .1237 For the three months ended July 31, 2017 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 518,000 Basic EPS $ 518,000 4,945,092 $ .1048 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 518,000 4,965,592 $ .1043 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value On Recurring Basis | 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 July 31, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,883,000 $ — $ 5,883,000 Corporate Bonds $ 31,000 $ — $ — $ 31,000 REITs $ — $ 118,000 $ — $ 118,000 Equity Securities $ 19,938,000 $ — $ — $ 19,938,000 Money Markets and CDs $ 1,191,000 $ — $ — $ 1,191,000 Total fair value of assets measured on a recurring basis $ 21,160,000 $ 6,001,000 $ — $ 27,161,000 Assets Measured at Fair Value on a Recurring Basis as of April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,741,000 $ — $ 5,741,000 Corporate Bonds $ 131,000 $ — $ — $ 131,000 REITs $ — $ 106,000 $ — $ 106,000 Equity Securities $ 19,333,000 $ — $ — $ 19,333,000 Money Markets and CDs $ 1,035,000 $ — $ — $ 1,035,000 Total fair value of assets measured on a recurring basis $ 20,499,000 $ 5,847,000 $ — $ 26,346,000 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Impairment loss | ||
Minimum [Member] | ||
Available-for-sale debt securities maturity year | 2018-08 | |
Maximum [Member] | ||
Available-for-sale debt securities maturity year | 2048-11 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2018 | Apr. 30, 2018 | |
Cost Basis | $ 23,351,000 | $ 23,188,000 |
Gross Unrealized Gains | 4,182,000 | 3,785,000 |
Gross Unrealized Losses | (372,000) | (627,000) |
Fair Value | 27,161,000 | 26,346,000 |
Municipal Bonds [Member] | ||
Cost Basis | 5,917,000 | 5,984,000 |
Gross Unrealized Gains | 65,000 | 66,000 |
Gross Unrealized Losses | (99,000) | (309,000) |
Fair Value | 5,883,000 | 5,741,000 |
Corporate Bonds [Member] | ||
Cost Basis | 30,000 | 129,000 |
Gross Unrealized Gains | 1,000 | 2,000 |
Gross Unrealized Losses | ||
Fair Value | 31,000 | 131,000 |
REITs [Member] | ||
Cost Basis | 110,000 | 110,000 |
Gross Unrealized Gains | 11,000 | 3,000 |
Gross Unrealized Losses | (3,000) | (7,000) |
Fair Value | 118,000 | 106,000 |
Equity Securities [Member] | ||
Cost Basis | 16,103,000 | 15,930,000 |
Gross Unrealized Gains | 4,105,000 | 3,714,000 |
Gross Unrealized Losses | (270,000) | (311,000) |
Fair Value | 19,938,000 | 19,333,000 |
Money Markets and CDs [Member] | ||
Cost Basis | 1,191,000 | 1,035,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 1,191,000 | $ 1,035,000 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Less than 12 months Fair Value | $ 3,161,000 | $ 1,292,000 |
Less than 12 months Unrealized Loss | (112,000) | (192,000) |
12 months or greater Fair Value | 2,357,000 | 2,291,000 |
12 months or greater Unrealized Loss | (260,000) | (225,000) |
Total Fair Value | 5,518,000 | 3,583,000 |
Total Unrealized Loss | (372,000) | (447,000) |
Municipal Bonds [Member] | ||
Less than 12 months Fair Value | 1,857,000 | 702,000 |
Less than 12 months Unrealized Loss | (9,000) | (152,000) |
12 months or greater Fair Value | 1,211,000 | 1,674,000 |
12 months or greater Unrealized Loss | (90,000) | (86,000) |
Total Fair Value | 3,068,000 | 2,376,000 |
Total Unrealized Loss | (99,000) | (238,000) |
REITs [Member] | ||
Less than 12 months Fair Value | 35,000 | 56,000 |
Less than 12 months Unrealized Loss | (3,000) | (5,000) |
12 months or greater Fair Value | 27,000 | |
12 months or greater Unrealized Loss | (1,000) | |
Total Fair Value | 35,000 | 83,000 |
Total Unrealized Loss | (3,000) | (6,000) |
Equity Securities [Member] | ||
Less than 12 months Fair Value | 1,269,000 | 534,000 |
Less than 12 months Unrealized Loss | (100,000) | (35,000) |
12 months or greater Fair Value | 1,146,000 | 590,000 |
12 months or greater Unrealized Loss | (170,000) | (168,000) |
Total Fair Value | 2,415,000 | 1,124,000 |
Total Unrealized Loss | $ (270,000) | $ (203,000) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,774,000 | $ 2,450,000 |
Work in process | 483,000 | 444,000 |
Finished goods | 489,000 | 463,000 |
Inventory gross | 3,746,000 | 3,357,000 |
Less: allowance for obsolete inventory | (96,000) | (90,000) |
Totals | $ 3,650,000 | $ 3,267,000 |
Business Segments - Schedule of
Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2018 | |
Total net revenue | $ 3,429,000 | $ 2,248,000 | |
Total income from operations | 773,000 | 490,000 | |
Total depreciation and amortization | 83,000 | 41,000 | |
Total capital expenditures | 253,000 | ||
Total assets | 42,062,000 | 39,480,000 | $ 40,942,000 |
Security Alarm Products [Member] | |||
Total net revenue | 2,150,000 | 1,798,000 | |
Total income from operations | 485,000 | 392,000 | |
Total depreciation and amortization | 10,000 | 8,000 | |
Total capital expenditures | 210,000 | ||
Total assets | 3,848,000 | 3,934,000 | |
Cable & Wiring Tools [Member] | |||
Total net revenue | 679,000 | ||
Total income from operations | 153,000 | ||
Total depreciation and amortization | 31,000 | ||
Total capital expenditures | |||
Total assets | 2,783,000 | ||
Other Products [Member] | |||
Total net revenue | 600,000 | 450,000 | |
Total income from operations | 135,000 | 98,000 | |
Total depreciation and amortization | 27,000 | 21,000 | |
Total capital expenditures | |||
Total assets | 2,024,000 | 749,000 | |
Corporate General [Member] | |||
Total depreciation and amortization | 15,000 | 12,000 | |
Total capital expenditures | 43,000 | ||
Total assets | $ 33,407,000 | $ 34,797,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 617,000 | $ 518,000 |
Basic EPS | $ 617,000 | $ 518,000 |
Basic EPS, shares | 4,967,580 | 4,945,092 |
Basic EPS, per share | $ 0.12 | $ 0.1 |
Effect of dilutive convertible preferred Stock | ||
Effect of dilutive convertible preferred Stock, shares | 20,500 | 20,500 |
Effect of dilutive convertible preferred Stock, per share | $ (0.0005) | $ (0.0005) |
Diluted EPS | $ 617,000 | $ 518,000 |
Diluted EPS, shares | 4,988,080 | 4,965,592 |
Diluted EPS, per share | $ 0.12 | $ 0.1 |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Employees matching contributions | $ 2,000 | $ 2,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value On Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Jul. 31, 2018 | Apr. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | $ 27,161,000 | $ 26,346,000 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 5,883,000 | 5,741,000 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 31,000 | 131,000 |
REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 118,000 | 106,000 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 19,938,000 | 19,333,000 |
Money Markets and CDs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 1,191,000 | 1,035,000 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 21,160,000 | 20,499,000 |
Level 1 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 1 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 31,000 | 131,000 |
Level 1 [Member] | REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 19,938,000 | 19,333,000 |
Level 1 [Member] | Money Markets and CDs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 1,191,000 | 1,035,000 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 6,001,000 | 5,847,000 |
Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 5,883,000 | 5,741,000 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 2 [Member] | REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | 118,000 | 106,000 |
Level 2 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 2 [Member] | Money Markets and CDs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | ||
Level 3 [Member] | Money Markets and CDs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis |