Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2019 | Sep. 18, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | GEORGE RISK INDUSTRIES, INC. | |
Entity Central Index Key | 0000084112 | |
Document Type | 10-Q/A | |
Document Period End Date | Jul. 31, 2019 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 2 to Form 10-Q, ("Amendment"), amends the Quarterly Report on Form 10-Q for the three months ended July 31, 2019 that we originally filed with the Securities and Exchange Commission, or the Commission, on September 18, 2019, or the Original Filing, in connection with our failure to give effect to the implementation of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") in the financial statements included in the Original Filing. All amendments and restatements to the financial statements are non-cash in nature. Restatement As further discussed in Note 9 to our unaudited financial statements in Part I, Item 1, "Financial Statements" of the Amendment #2, on April 1, 2020, we concluded that certain disclosures necessary to fairly explain the changes in the financial statements presented were excluded in our previous filings and that we would we would restate our previously issued financial statements as of July 31, 2019 and for the three months ended July 31, 2018 and 2019, as set forth in the Amended Filing to disclose the in connection with our failure to give effect to the implementation of ASU 2016-01 in the financial statements included in the Original Quarterly Report on Form 10-Q. Amendment The purpose of this Amendment is to restate our previously issued unaudited financial statements and related disclosures as of July 31, 2019 and for the three months ended July 31, 2018 and 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" to reflect the correction of the error described above. Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment, along with Amendment #1 ("Amendments"), does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Filing and Amendments. See Note 9 to the financial statements included in Item 1 for additional information and a reconciliation of the previously reported amounts to the restated amounts. Items Amended in this Filing For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied: Part I, Item 1. Financial Statements Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4. Controls and Procedures In accordance with applicable Commission rules, this Amendment includes new certifications required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, from our Chief Executive Officer and Chief Financial Officer dated as of the date of filing of this Amendment. | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,952,110 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 5,667,000 | $ 4,873,000 |
Investments and securities, at fair value | 27,657,000 | 27,291,000 |
Accounts receivable: | ||
Trade, net of $8,764 and $9,321 doubtful account allowance | 2,534,000 | 2,696,000 |
Other | 4,000 | 6,000 |
Income tax overpayment | 259,000 | |
Inventories, net | 4,863,000 | 4,583,000 |
Prepaid expenses | 320,000 | 282,000 |
Total Current Assets | 41,045,000 | 39,990,000 |
Property and Equipment, net, at cost | 1,095,000 | 984,000 |
Other Assets | ||
Investment in Limited Land Partnership, at cost | 293,000 | 293,000 |
Projects in process | 1,000 | 117,000 |
Other | 3,000 | 3,000 |
Total Other Assets | 297,000 | 413,000 |
Intangible assets, net | 1,609,000 | 1,640,000 |
TOTAL ASSETS | 44,046,000 | 43,027,000 |
Current Liabilities | ||
Accounts payable, trade | 261,000 | 206,000 |
Dividends payable | 1,714,000 | 1,714,000 |
Accrued expenses: | ||
Payroll and related expenses | 287,000 | 356,000 |
Property taxes | 3,000 | |
Income tax payable | 30,000 | |
Total Current Liabilities | 2,295,000 | 2,276,000 |
Long-Term Liabilities | ||
Deferred income taxes | 1,240,000 | 1,198,000 |
Total Long-Term Liabilities | 1,240,000 | 1,198,000 |
Total Liabilities | 3,535,000 | 3,474,000 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Convertible preferred stock, 1,000,000 shares authorized, Series 1-noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding | 99,000 | 99,000 |
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 | 49,000 | 14,000 |
Retained earnings | 41,859,000 | 40,883,000 |
Less: treasury stock, 3,550,571 and 3,544,271 shares, at cost | (4,280,000) | (4,227,000) |
Total Stockholders' Equity | 40,511,000 | 39,553,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 44,046,000 | $ 43,027,000 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Allowance for doubtful account receivable | $ 8,764 | $ 9,321 |
Convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, par value | $ .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 | 3,550,571 | 3,544,271 |
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, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||
Net Sales | $ 3,552,000 | $ 3,429,000 |
Less: Cost of Goods Sold | (1,769,000) | (1,801,000) |
Gross Profit | 1,783,000 | 1,628,000 |
Operating Expenses: | ||
General and Administrative | 297,000 | 286,000 |
Sales | 557,000 | 555,000 |
Engineering | 14,000 | 9,000 |
Rent Paid to Related Parties | 5,000 | 5,000 |
Total Operating Expenses | 873,000 | 885,000 |
Income From Operations | 910,000 | 773,000 |
Other Income (Expense) | ||
Other | 1,000 | 3,000 |
Dividend and Interest Income | 193,000 | 193,000 |
Unrealized gain (loss) on equity securities | 145,000 | 432,000 |
Gain (Loss) on Sale of Investments | 49,000 | (68,000) |
Total Other Income | 388,000 | 560,000 |
Income Before Provisions for Income Taxes | 1,298,000 | 1,333,000 |
Provisions for Income Taxes | ||
Current Expense | 294,000 | 247,000 |
Deferred tax expense | 28,000 | 161,000 |
Total Income Tax Expense | 322,000 | 408,000 |
Net Income | $ 976,000 | $ 925,000 |
Basic Earnings Per Share of Common Stock | $ 0.20 | $ 0.19 |
Diluted Earnings Per Share of Common Stock | $ 0.20 | $ 0.19 |
Weighted Average Number of Common Shares Outstanding | 4,956,389 | 4,967,580 |
Weighted Average Number of Shares Outstanding (Diluted) | 4,976,889 | 4,988,080 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 976,000 | $ 925,000 |
Unrealized gain (loss) on securities: | ||
Unrealized holding gains arising during period | 49,000 | 220,000 |
Income tax expense related to other comprehensive income | (14,000) | (63,000) |
Other Comprehensive Income (Loss) | 35,000 | 157,000 |
Comprehensive Income (Loss) | $ 1,011,000 | $ 1,082,000 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock Class A [Member] | Paid-In Capital [Member] | Treasury Stock (Common Class A) [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Total |
Balance at Apr. 30, 2018 | $ 99,000 | $ 850,000 | $ 1,934,000 | $ (4,148,000) | $ 2,249,000 | $ 36,746,000 | $ 37,730,000 |
Balance, shares at Apr. 30, 2018 | 4,100 | 8,502,881 | 3,534,784 | ||||
Purchases of common stock | $ (5,000) | $ (5,000) | |||||
Purchases of common stock, shares | 650 | ||||||
Cumulative effect of restatement on prior periods, for adoption of ASU 2016-01 | (2,424,000) | 2,424,000 | |||||
Balance at May 1, 2018 after adoption of ASU 2016-01 as restated | 1,934,000 | $ (4,148,000) | (175,000) | 39,170,000 | 37,730,000 | ||
Balance at May 1, 2018 after adoption of ASU 2016-01 as restated, shares | 3,534,784 | ||||||
Unrealized gain (loss), net of tax effect | 157,000 | 157,000 | |||||
Net Income | 925,000 | 925,000 | |||||
Balance at Jul. 31, 2018 | $ 99,000 | $ 850,000 | 1,934,000 | $ (4,153,000) | (18,000) | 40,095,000 | 38,807,000 |
Balance, shares at Jul. 31, 2018 | 4,100 | 8,502,881 | 3,535,434 | ||||
Balance at Apr. 30, 2019 | $ 99,000 | $ 850,000 | 1,934,000 | $ (4,227,000) | 14,000 | 40,883,000 | 39,553,000 |
Balance, shares at Apr. 30, 2019 | 4,100 | 8,502,881 | 3,544,271 | ||||
Purchases of common stock | $ (53,000) | (53,000) | |||||
Purchases of common stock, shares | 6,300 | ||||||
Unrealized gain (loss), net of tax effect | 35,000 | 35,000 | |||||
Net Income | 976,000 | 976,000 | |||||
Balance at Jul. 31, 2019 | $ 99,000 | $ 850,000 | $ 1,934,000 | $ (4,280,000) | $ 49,000 | $ 41,859,000 | $ 40,511,000 |
Balance, shares at Jul. 31, 2019 | 4,100 | 8,502,881 | 3,550,571 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 976,000 | $ 925,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 89,000 | 83,000 |
(Gain) loss on sale of investments | (83,000) | 68,000 |
Impairments on investments | 34,000 | |
Unrealized (gain) loss on equity securities | (145,000) | (432,000) |
Reserve for bad debts | (2,000) | 3,000 |
Reserve for obsolete inventory | 8,000 | 6,000 |
Deferred income taxes | 28,000 | 161,000 |
(Increase) decrease in: | ||
Accounts receivable | 163,000 | 234,000 |
Inventories | (288,000) | (389,000) |
Prepaid expenses | 79,000 | 166,000 |
Employee receivables | 2,000 | |
Income tax overpayment | 244,000 | |
Increase (decrease) in: | ||
Accounts payable | 55,000 | (7,000) |
Accrued expenses | (66,000) | (172,000) |
Income tax payable | 289,000 | |
Net cash provided by operating activities | 1,139,000 | 890,000 |
Cash Flows From Investing Activities: | ||
(Purchase) of property and equipment | (169,000) | |
Proceeds from sale of marketable securities | 9,000 | 2,000 |
(Purchase) of marketable securities | (132,000) | (233,000) |
Net cash (used in) investing activities | (292,000) | (231,000) |
Cash Flows From Financing Activities: | ||
(Purchase) of treasury stock | (53,000) | (5,000) |
Dividends paid | (1,000) | |
Net cash (used in) financing activities | (53,000) | (6,000) |
Net Increase in Cash and Cash Equivalents | 794,000 | 653,000 |
Cash and Cash Equivalents, beginning of period | 4,873,000 | 4,294,000 |
Cash and Cash Equivalents, end of period | 5,667,000 | 4,947,000 |
Supplemental Disclosure for Cash Flow Information: | ||
Income taxes paid | 0 | 0 |
Interest paid | $ 0 | $ 1,000 |
Unaudited Interim Financial Sta
Unaudited Interim Financial Statements | 3 Months Ended |
Jul. 31, 2019 | |
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, 2019 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. Accounting Estimates Recently Issued Accounting Pronouncements — 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. The guidance is effective or fiscal years ending after December 15, 2020 and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of adoption on its financial statements and disclosures. |
Investments (Restated)
Investments (Restated) | 3 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments (Restated) | 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. The investments in debt securities have maturities between September 2019 and January 2044. The Company uses the average cost method to determine the cost of securities sold with any unrealized gains or losses reported in each respective period’s earnings. Dividend and interest income are reported as earned. As of July 31, 2019 and April 30, 2019, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2019 Basis Gains Losses Value Municipal bonds $ 5,475,000 $ 117,000 $ (43,000 ) $ 5,549,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 3,000 (9,000 ) 83,000 Equity securities 16,729,000 4,252,000 (260,000 ) 20,721,000 Money markets and CDs 1,278,000 — — 1,278,000 Total $ 23,597,000 $ 4,372,000 $ (312,000 ) $ 27,657,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2019 Basis Gains Losses Value Municipal bonds $ 5,459,000 $ 79,000 $ (55,000 ) $ 5,483,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 1,000 (6,000 ) 84,000 Equity securities 16,618,000 4,143,000 (296,000 ) 20,465,000 Money markets and CDs 1,233,000 — — 1,233,000 Total $ 23,425,000 $ 4,223,000 $ (357,000 ) $ 27,291,000 Marketable securities that are equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the Statements of Operations in the period of the change, and debt securities are carried at fair value on the balance sheet with changes in fair value recorded as unrealized gains or (losses) in the Statement of Comprehensive Income. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On May 1, 2018, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings. The Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately on year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded an impairment loss of $34,000 for the quarter ended July 31, 2019. For the prior quarter ended July 31, 2018, management did not need to record any impairment losses. 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, 2019 and April 30, 2019, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 2019 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ — $ — $ 448,000 $ (43,000 ) $ 448,000 $ (43,000 ) REITs — — 30,000 (9,000 ) 30,000 (9,000 ) Equity securities 1,975,000 (147,000 ) 729,000 (113,000 ) 2,704,000 (260,000 ) Total $ 1,975,000 $ (147,000 ) $ 1,207,000 $ (165,000 ) $ 3,182,000 $ (312,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2019 Less than 12 months 12 months or greater Total Description 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 ) REITs — — 32,000 (6,000 ) 32,000 (6,000 ) Equity securities 932,000 (102,000 ) 1,652,000 (195,000 ) 2,584,000 (297,000 ) Total $ 1,704,000 $ (106,000 ) $ 2,264,000 $ (251,000 ) $ 3,968,000 $ (357,000 ) Municipal Bonds The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2019. Marketable Equity Securities and REITs The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2019. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3: Inventories Inventories at July 31, 2019 and April 30, 2019 consisted of the following: July 31, 2019 April 30, 2019 Raw materials $ 3,878,000 $ 3,644,000 Work in process 368,000 389,000 Finished goods 715,000 641,000 4,961,000 4,674,000 Less: allowance for obsolete inventory (98,000 ) (91,000 ) Inventories, net $ 4,863,000 $ 4,583,000 |
Business Segments
Business Segments | 3 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Note 4: Business Segments The following is financial information relating to industry segments: July 31, 2019 2018 Net revenue: Security alarm products $ 2,830,000 $ 2,150,000 Cable & wiring tools 536,000 679,000 Other products 186,000 600,000 Total net revenue $ 3,552,000 $ 3,429,000 Income from operations: Security alarm products $ 725,000 $ 485,000 Cable & wiring tools 137,000 153,000 Other products 48,000 135,000 Total income from operations $ 910,000 $ 773,000 Depreciation and amortization: Security alarm products $ 23,000 $ 10,000 Cable & wiring tools 31,000 31,000 Other products 20,000 27,000 Corporate general 15,000 15,000 Total depreciation and amortization $ 89,000 $ 83,000 Capital expenditures: Security alarm products $ 169,000 $ — Cable & wiring tools — — Other products — — Corporate general — — Total capital expenditures $ 169,000 $ — Identifiable assets: July 31, 2019 April 30, 2019 Security alarm products $ 6,369,000 $ 6,179,000 Cable & wiring tools 2,725,000 2,713,000 Other products 864,000 842,000 Corporate general 34,088,000 33,293,000 Total assets $ 44,046,000 $ 43,027,000 |
Earnings Per Share (Restated)
Earnings Per Share (Restated) | 3 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (Restated) | Note 5: Earnings per Share (Restated) Restated basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: For the Three Months Ended July 31, Originally Adjustment Restated 2019 Numerator Net income $ 866,000 $ 110,000 $ 976,000 Denominator Weighted average common shares outstanding, basic 4,956,389 — 4,956,389 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,976,889 — 4,976,889 Net Income per share - Basic $ 0.17 $ 0.03 $ 0.20 Income per shares - Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, Originally Adjustment Restated 2018 Numerator Net income $ 617,000 $ 308,000 $ 925,000 Denominator Weighted average common shares outstanding, basic 4,967,580 — 4,967,580 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,988,080 — 4,988,080 Net Income per share - Basic $ 0.12 $ 0.07 $ 0.19 Income per shares - Diluted $ 0.12 $ 0.07 $ 0.19 |
Retirement Benefit Plan
Retirement Benefit Plan | 3 Months Ended |
Jul. 31, 2019 | |
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, 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jul. 31, 2019 | |
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, 2019, 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 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,549,000 $ — $ 5,549,000 Corporate Bonds 26,000 — — 26,000 REITs — 83,000 — 83,000 Equity Securities 20,721,000 — — 20,721,000 Money Markets and CDs 1,278,000 — — 1,278,000 Total fair value of assets measured on a recurring basis $ 22,025,000 $ 5,632,000 $ — $ 27,657,000 Assets Measured at Fair Value on a Recurring Basis as of Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,483,000 $ — $ 5,483,000 Corporate Bonds 26,000 — — 26,000 REITs — 84,000 — 84,000 Equity Securities 20,465,000 — — 20,465,000 Money Markets and CDs 1,233,000 — — 1,233,000 Total fair value of assets measured on a recurring basis $ 21,724,000 $ 5,567,000 $ — $ 27,291,000 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Events None |
Correction of Previously Issued
Correction of Previously Issued Financial Statements | 3 Months Ended |
Jul. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Correction of Previously Issued Financial Statements | Note 9 Correction of Previously Issued Financial Statements Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three months ended July 31, 2019, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the implementation of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-Q) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss). This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive loss related to unrealized gains on equity securities as of May 1, 2018 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three months ended July 31, 2019 and 2018. No entries to correct for this restatement have any impact on our cash position, liquidity, or operations. The tables below reflect the effect of restatement on the Company’s financial statements for the quarter: As of July 31, 2019 Original Adjustment As Restated Balance Sheet Deferred Income Taxes $ 1,247,000 $ (7,000 ) $ 1,240,000 Total Liabilities 3,542,000 (7,000 ) 3,535,000 Accumulated other comprehensive income $ 2,890,000 $ (2,841,000 ) $ 49,000 Retained Earnings 39,011,000 2,848,000 41,859,000 Total stockholder’s Equity $ 40,504,000 $ 7,000 $ 40,511,000 As of April 30, 2019 Original Adjustment As Restated Balance Sheet Accumulated other comprehensive income $ 2,752,000 $ (2,738,000 ) $ 14,000 Retained Earnings 38,145,000 2,738,000 40,883,000 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Income Statement Unrealized Gain (Loss) on Equity Securities $ — $ 145,000 $ 145,000 Total Other Income (Expense) $ 243,000 $ 145,000 $ 388,000 Income Before Provisions for Income Taxes 1,153,000 145,000 1,298,000 Deferred tax expense (benefit) (7,000 ) 35,000 28,000 Total Income Tax Expense 287,000 42,000 329,000 Net Income $ 866,000 $ 110,000 $ 976,000 Earnings Per Share of Common Stock Basic $ 0.17 $ 0.03 $ 0.20 Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Income Statement Unrealized Gain (Loss) on Equity Securities $ — $ 432,000 $ 432,000 Total Other Income (Expense) $ 128,000 $ 432,000 $ 560,000 Income Before Provisions for Income Taxes 901,000 432,000 1,333,000 Deferred tax expense (benefit) 37,000 124,000 161,000 Total Income Tax Expense 284,000 124,000 408,000 Net Income $ 617,000 $ 308,000 $ 925,000 Earnings Per Share of Common Stock Basic $ 0.12 $ 0.07 $ 0.19 Diluted $ 0.12 $ 0.07 $ 0.19 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Statement of Comprehensive Income Net Income $ 866,000 $ 110,000 $ 976,000 Other Comprehensive Income, net of Tax Unrealized gain (loss) on securities Unrealized holding gains arising during period 324,000 (275,000 ) 49,000 Less: reclassification adjustment for (gains) losses included in net income (130,000 ) 130,000 — Income tax expense related to other comprehensive income (56,000 ) 42,000 (14,000 ) Other Comprehensive Income (Loss) $ 138,000 $ (103,000 ) $ 35,000 Comprehensive Income $ 1,004,000 $ 7,000 $ 1,011,000 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Statement of Comprehensive Income Net Income $ 617,000 $ 308,000 $ 925,000 Other Comprehensive Income, net of Tax Unrealized gain (loss) on securities Unrealized holding gains arising during period 607,000 (387,000 ) 220,000 Less: reclassification adjustment for (gains) losses included in net income 44,000 (44,000 ) — Income tax expense related to other comprehensive income (188,000 ) 125,000 (63,000 ) Other Comprehensive Income (Loss) $ 463,000 $ (306,000 ) $ 157,000 Comprehensive Income $ 1,080,000 $ 2,000 $ 1,082,000 Original Adjustment As Restated Statement of Stockholders’ Equity Balance, April 30, 2019 $ 39,553,000 $ — $ 39,553,000 Purchase of common stock (53,000 ) — (53,000 ) Unrealized gain (loss), net of tax effect 138,000 (103,000 ) 35,000 Net Income 866,000 110,000 976,000 Balance, July 31, 2019 $ 40,504,000 $ 7,000 $ 40,511,000 Original Adjustment As Restated Statement of Stockholders’ Equity Balance, April 30, 2018 $ 37,730,000 $ — $ 37,730,000 Purchase of common stock (5,000 ) — (5,000 ) Impact of adoption of ASU 2016-01 — — — Unrealized gain (loss), net of tax effect 463,000 (306,000 ) 157,000 Net Income 617,000 308,000 925,000 Balance, July 31, 2018 $ 38,805,000 $ 2,000 $ 38,807,000 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Statement of Cash Flows Cash Flows From Operating Activities Net Income $ 866,000 $ 110,000 $ 976,000 Adjustment to reconcile net income to net cash provided operating activities Unrealized (gain) loss on equity securities — (145,000 ) (145,000 ) Deferred income taxes (7,000 ) 35,000 28,000 Net cash provided by (used in) operating activities $ 1,139,000 $ — $ 1,139,000 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Statement of Cash Flows Cash Flows From Operating Activities Net Income $ 617,000 $ 308,000 $ 925,000 Adjustment to reconcile net income to net cash provided operating activities Unrealized (gain) loss on equity securities — (432,000 ) (432,000 ) Deferred income taxes 37,000 124,000 161,000 Net cash provided by (used in) operating activities $ 890,000 $ — $ 890,000 For the Three Months Ended July 31, Originally Adjustment 2019 Restated 2019 Numerator Net income $ 866,000 $ 110,000 $ 976,000 Denominator Weighted average common shares outstanding, basic 4,956,389 — 4,956,389 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,976,889 — 4,976,889 Net Income per share - Basic $ 0.17 $ 0.03 $ 0.20 Income per shares - Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, Originally Adjustment 2018 Restated 2018 Numerator Net income $ 617,000 $ 308,000 $ 925,000 Denominator Weighted average common shares outstanding, basic 4,967,580 — 4,967,580 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,988,080 — 4,988,080 Net Income per share - Basic $ 0.12 $ 0.07 $ 0.19 Income per shares - Diluted $ 0.12 $ 0.07 $ 0.19 |
Investments (Restated) (Tables)
Investments (Restated) (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | As of July 31, 2019 and April 30, 2019, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2019 Basis Gains Losses Value Municipal bonds $ 5,475,000 $ 117,000 $ (43,000 ) $ 5,549,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 3,000 (9,000 ) 83,000 Equity securities 16,729,000 4,252,000 (260,000 ) 20,721,000 Money markets and CDs 1,278,000 — — 1,278,000 Total $ 23,597,000 $ 4,372,000 $ (312,000 ) $ 27,657,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2019 Basis Gains Losses Value Municipal bonds $ 5,459,000 $ 79,000 $ (55,000 ) $ 5,483,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 1,000 (6,000 ) 84,000 Equity securities 16,618,000 4,143,000 (296,000 ) 20,465,000 Money markets and CDs 1,233,000 — — 1,233,000 Total $ 23,425,000 $ 4,223,000 $ (357,000 ) $ 27,291,000 |
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, 2019 and April 30, 2019, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 2019 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ — $ — $ 448,000 $ (43,000 ) $ 448,000 $ (43,000 ) REITs — — 30,000 (9,000 ) 30,000 (9,000 ) Equity securities 1,975,000 (147,000 ) 729,000 (113,000 ) 2,704,000 (260,000 ) Total $ 1,975,000 $ (147,000 ) $ 1,207,000 $ (165,000 ) $ 3,182,000 $ (312,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2019 Less than 12 months 12 months or greater Total Description 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 ) REITs — — 32,000 (6,000 ) 32,000 (6,000 ) Equity securities 932,000 (102,000 ) 1,652,000 (195,000 ) 2,584,000 (297,000 ) Total $ 1,704,000 $ (106,000 ) $ 2,264,000 $ (251,000 ) $ 3,968,000 $ (357,000 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at July 31, 2019 and April 30, 2019 consisted of the following: July 31, 2019 April 30, 2019 Raw materials $ 3,878,000 $ 3,644,000 Work in process 368,000 389,000 Finished goods 715,000 641,000 4,961,000 4,674,000 Less: allowance for obsolete inventory (98,000 ) (91,000 ) Inventories, net $ 4,863,000 $ 4,583,000 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to Industry Segments | The following is financial information relating to industry segments: July 31, 2019 2018 Net revenue: Security alarm products $ 2,830,000 $ 2,150,000 Cable & wiring tools 536,000 679,000 Other products 186,000 600,000 Total net revenue $ 3,552,000 $ 3,429,000 Income from operations: Security alarm products $ 725,000 $ 485,000 Cable & wiring tools 137,000 153,000 Other products 48,000 135,000 Total income from operations $ 910,000 $ 773,000 Depreciation and amortization: Security alarm products $ 23,000 $ 10,000 Cable & wiring tools 31,000 31,000 Other products 20,000 27,000 Corporate general 15,000 15,000 Total depreciation and amortization $ 89,000 $ 83,000 Capital expenditures: Security alarm products $ 169,000 $ — Cable & wiring tools — — Other products — — Corporate general — — Total capital expenditures $ 169,000 $ — Identifiable assets: July 31, 2019 April 30, 2019 Security alarm products $ 6,369,000 $ 6,179,000 Cable & wiring tools 2,725,000 2,713,000 Other products 864,000 842,000 Corporate general 34,088,000 33,293,000 Total assets $ 44,046,000 $ 43,027,000 |
Earnings Per Share (Restated) (
Earnings Per Share (Restated) (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Restated Basic and Diluted Earnings Per Share | Restated basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: For the Three Months Ended July 31, Originally Adjustment Restated 2019 Numerator Net income $ 866,000 $ 110,000 $ 976,000 Denominator Weighted average common shares outstanding, basic 4,956,389 — 4,956,389 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,976,889 — 4,976,889 Net Income per share - Basic $ 0.17 $ 0.03 $ 0.20 Income per shares - Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, Originally Adjustment Restated 2018 Numerator Net income $ 617,000 $ 308,000 $ 925,000 Denominator Weighted average common shares outstanding, basic 4,967,580 — 4,967,580 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,988,080 — 4,988,080 Net Income per share - Basic $ 0.12 $ 0.07 $ 0.19 Income per shares - Diluted $ 0.12 $ 0.07 $ 0.19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
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 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,549,000 $ — $ 5,549,000 Corporate Bonds 26,000 — — 26,000 REITs — 83,000 — 83,000 Equity Securities 20,721,000 — — 20,721,000 Money Markets and CDs 1,278,000 — — 1,278,000 Total fair value of assets measured on a recurring basis $ 22,025,000 $ 5,632,000 $ — $ 27,657,000 Assets Measured at Fair Value on a Recurring Basis as of Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,483,000 $ — $ 5,483,000 Corporate Bonds 26,000 — — 26,000 REITs — 84,000 — 84,000 Equity Securities 20,465,000 — — 20,465,000 Money Markets and CDs 1,233,000 — — 1,233,000 Total fair value of assets measured on a recurring basis $ 21,724,000 $ 5,567,000 $ — $ 27,291,000 |
Correction of Previously Issu_2
Correction of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Jul. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Restatement of Financial Statements | The tables below reflect the effect of restatement on the Company’s financial statements for the quarter: As of July 31, 2019 Original Adjustment As Restated Balance Sheet Deferred Income Taxes $ 1,247,000 $ (7,000 ) $ 1,240,000 Total Liabilities 3,542,000 (7,000 ) 3,535,000 Accumulated other comprehensive income $ 2,890,000 $ (2,841,000 ) $ 49,000 Retained Earnings 39,011,000 2,848,000 41,859,000 Total stockholder’s Equity $ 40,504,000 $ 7,000 $ 40,511,000 As of April 30, 2019 Original Adjustment As Restated Balance Sheet Accumulated other comprehensive income $ 2,752,000 $ (2,738,000 ) $ 14,000 Retained Earnings 38,145,000 2,738,000 40,883,000 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Income Statement Unrealized Gain (Loss) on Equity Securities $ — $ 145,000 $ 145,000 Total Other Income (Expense) $ 243,000 $ 145,000 $ 388,000 Income Before Provisions for Income Taxes 1,153,000 145,000 1,298,000 Deferred tax expense (benefit) (7,000 ) 35,000 28,000 Total Income Tax Expense 287,000 42,000 329,000 Net Income $ 866,000 $ 110,000 $ 976,000 Earnings Per Share of Common Stock Basic $ 0.17 $ 0.03 $ 0.20 Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Income Statement Unrealized Gain (Loss) on Equity Securities $ — $ 432,000 $ 432,000 Total Other Income (Expense) $ 128,000 $ 432,000 $ 560,000 Income Before Provisions for Income Taxes 901,000 432,000 1,333,000 Deferred tax expense (benefit) 37,000 124,000 161,000 Total Income Tax Expense 284,000 124,000 408,000 Net Income $ 617,000 $ 308,000 $ 925,000 Earnings Per Share of Common Stock Basic $ 0.12 $ 0.07 $ 0.19 Diluted $ 0.12 $ 0.07 $ 0.19 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Statement of Comprehensive Income Net Income $ 866,000 $ 110,000 $ 976,000 Other Comprehensive Income, net of Tax Unrealized gain (loss) on securities Unrealized holding gains arising during period 324,000 (275,000 ) 49,000 Less: reclassification adjustment for (gains) losses included in net income (130,000 ) 130,000 — Income tax expense related to other comprehensive income (56,000 ) 42,000 (14,000 ) Other Comprehensive Income (Loss) $ 138,000 $ (103,000 ) $ 35,000 Comprehensive Income $ 1,004,000 $ 7,000 $ 1,011,000 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Statement of Comprehensive Income Net Income $ 617,000 $ 308,000 $ 925,000 Other Comprehensive Income, net of Tax Unrealized gain (loss) on securities Unrealized holding gains arising during period 607,000 (387,000 ) 220,000 Less: reclassification adjustment for (gains) losses included in net income 44,000 (44,000 ) — Income tax expense related to other comprehensive income (188,000 ) 125,000 (63,000 ) Other Comprehensive Income (Loss) $ 463,000 $ (306,000 ) $ 157,000 Comprehensive Income $ 1,080,000 $ 2,000 $ 1,082,000 Original Adjustment As Restated Statement of Stockholders’ Equity Balance, April 30, 2019 $ 39,553,000 $ — $ 39,553,000 Purchase of common stock (53,000 ) — (53,000 ) Unrealized gain (loss), net of tax effect 138,000 (103,000 ) 35,000 Net Income 866,000 110,000 976,000 Balance, July 31, 2019 $ 40,504,000 $ 7,000 $ 40,511,000 Original Adjustment As Restated Statement of Stockholders’ Equity Balance, April 30, 2018 $ 37,730,000 $ — $ 37,730,000 Purchase of common stock (5,000 ) — (5,000 ) Impact of adoption of ASU 2016-01 — — — Unrealized gain (loss), net of tax effect 463,000 (306,000 ) 157,000 Net Income 617,000 308,000 925,000 Balance, July 31, 2018 $ 38,805,000 $ 2,000 $ 38,807,000 For the Three Months Ended July 31, 2019 Original Adjustment As Restated Statement of Cash Flows Cash Flows From Operating Activities Net Income $ 866,000 $ 110,000 $ 976,000 Adjustment to reconcile net income to net cash provided operating activities Unrealized (gain) loss on equity securities — (145,000 ) (145,000 ) Deferred income taxes (7,000 ) 35,000 28,000 Net cash provided by (used in) operating activities $ 1,139,000 $ — $ 1,139,000 For the Three Months Ended July 31, 2018 Original Adjustment As Restated Statement of Cash Flows Cash Flows From Operating Activities Net Income $ 617,000 $ 308,000 $ 925,000 Adjustment to reconcile net income to net cash provided operating activities Unrealized (gain) loss on equity securities — (432,000 ) (432,000 ) Deferred income taxes 37,000 124,000 161,000 Net cash provided by (used in) operating activities $ 890,000 $ — $ 890,000 For the Three Months Ended July 31, Originally Adjustment 2019 Restated 2019 Numerator Net income $ 866,000 $ 110,000 $ 976,000 Denominator Weighted average common shares outstanding, basic 4,956,389 — 4,956,389 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,976,889 — 4,976,889 Net Income per share - Basic $ 0.17 $ 0.03 $ 0.20 Income per shares - Diluted $ 0.17 $ 0.03 $ 0.20 For the Three Months Ended July 31, Originally Adjustment 2018 Restated 2018 Numerator Net income $ 617,000 $ 308,000 $ 925,000 Denominator Weighted average common shares outstanding, basic 4,967,580 — 4,967,580 Convertible Preferred Stock 20,500 — 20,500 Weighted average common shares outstanding, diluted 4,988,080 — 4,988,080 Net Income per share - Basic $ 0.12 $ 0.07 $ 0.19 Income per shares - Diluted $ 0.12 $ 0.07 $ 0.19 |
Investments (Restated) (Details
Investments (Restated) (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities maturity year description | The investments in debt securities have maturities between September 2019 and January 2044. | |
Reclassified net unrealized gains on marketable securities | $ 2,424,000 | |
Impairment loss | $ 34,000 |
Investments (Restated) - Schedu
Investments (Restated) - Schedule of Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2019 | Apr. 30, 2019 | |
Cost Basis | $ 23,597,000 | $ 23,425,000 |
Gross Unrealized Gains | 4,372,000 | 4,223,000 |
Gross Unrealized Losses | (312,000) | (357,000) |
Fair Value | 27,657,000 | 27,291,000 |
Municipal Bonds [Member] | ||
Cost Basis | 5,475,000 | 5,459,000 |
Gross Unrealized Gains | 117,000 | 79,000 |
Gross Unrealized Losses | (43,000) | (55,000) |
Fair Value | 5,549,000 | 5,483,000 |
Corporate Bonds [Member] | ||
Cost Basis | 26,000 | 26,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 26,000 | 26,000 |
REITs [Member] | ||
Cost Basis | 89,000 | 89,000 |
Gross Unrealized Gains | 3,000 | 1,000 |
Gross Unrealized Losses | (9,000) | (6,000) |
Fair Value | 83,000 | 84,000 |
Equity Securities [Member] | ||
Cost Basis | 16,729,000 | 16,618,000 |
Gross Unrealized Gains | 4,252,000 | 4,143,000 |
Gross Unrealized Losses | (260,000) | (296,000) |
Fair Value | 20,721,000 | 20,465,000 |
Money Markets and CDs [Member] | ||
Cost Basis | 1,278,000 | 1,233,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 1,278,000 | $ 1,233,000 |
Investments (Restated) - Sche_2
Investments (Restated) - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Less than 12 months Fair Value | $ 1,975,000 | $ 1,704,000 |
Less than 12 months Unrealized Loss | (147,000) | (106,000) |
12 months or greater Fair Value | 1,207,000 | 2,264,000 |
12 months or greater Unrealized Loss | (165,000) | (251,000) |
Total Fair Value | 3,182,000 | 3,968,000 |
Total Unrealized Loss | (312,000) | (357,000) |
Municipal Bonds [Member] | ||
Less than 12 months Fair Value | 772,000 | |
Less than 12 months Unrealized Loss | (4,000) | |
12 months or greater Fair Value | 448,000 | 580,000 |
12 months or greater Unrealized Loss | (43,000) | (50,000) |
Total Fair Value | 448,000 | 1,352,000 |
Total Unrealized Loss | (43,000) | (54,000) |
REITs [Member] | ||
Less than 12 months Fair Value | ||
Less than 12 months Unrealized Loss | ||
12 months or greater Fair Value | 30,000 | 32,000 |
12 months or greater Unrealized Loss | (9,000) | (6,000) |
Total Fair Value | 30,000 | 32,000 |
Total Unrealized Loss | (9,000) | (6,000) |
Equity Securities [Member] | ||
Less than 12 months Fair Value | 1,975,000 | 932,000 |
Less than 12 months Unrealized Loss | (147,000) | (102,000) |
12 months or greater Fair Value | 729,000 | 1,652,000 |
12 months or greater Unrealized Loss | (113,000) | (195,000) |
Total Fair Value | 2,704,000 | 2,584,000 |
Total Unrealized Loss | $ (260,000) | $ (297,000) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Jul. 31, 2019 | Apr. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,878,000 | $ 3,644,000 |
Work in process | 368,000 | 389,000 |
Finished goods | 715,000 | 641,000 |
Inventory gross | 4,961,000 | 4,674,000 |
Less: allowance for obsolete inventory | (98,000) | (91,000) |
Inventories, net | $ 4,863,000 | $ 4,583,000 |
Business Segments - Schedule of
Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2019 | |
Total net revenue | $ 3,552,000 | $ 3,429,000 | |
Total income from operations | 910,000 | 773,000 | |
Total depreciation and amortization | 89,000 | 83,000 | |
Total capital expenditures | 169,000 | ||
Total assets | 44,046,000 | 43,027,000 | $ 43,027,000 |
Security Alarm Products [Member] | |||
Total net revenue | 2,830,000 | 2,150,000 | |
Total income from operations | 725,000 | 485,000 | |
Total depreciation and amortization | 23,000 | 10,000 | |
Total capital expenditures | 169,000 | ||
Total assets | 6,369,000 | 6,179,000 | |
Cable & Wiring Tools [Member] | |||
Total net revenue | 536,000 | 679,000 | |
Total income from operations | 137,000 | 153,000 | |
Total depreciation and amortization | 31,000 | 31,000 | |
Total capital expenditures | |||
Total assets | 2,725,000 | 2,713,000 | |
Other Products [Member] | |||
Total net revenue | 186,000 | 600,000 | |
Total income from operations | 48,000 | 135,000 | |
Total depreciation and amortization | 20,000 | 27,000 | |
Total capital expenditures | |||
Total assets | 864,000 | 842,000 | |
Corporate General [Member] | |||
Total depreciation and amortization | 15,000 | 15,000 | |
Total capital expenditures | |||
Total assets | $ 34,088,000 | $ 33,293,000 |
Earnings Per Share (Restated) -
Earnings Per Share (Restated) - Schedule of Restated Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Net income | $ 976,000 | $ 925,000 |
Weighted average common shares outstanding, basic | 4,956,389 | 4,967,580 |
Convertible Preferred Stock | 20,500 | 20,500 |
Weighted average common shares outstanding, diluted | 4,976,889 | 4,988,080 |
Net Income per share - Basic | $ 0.20 | $ 0.19 |
Income per shares - Diluted | $ 0.20 | $ 0.19 |
Original [Member] | ||
Net income | $ 866,000 | $ 617,000 |
Weighted average common shares outstanding, basic | 4,956,389 | 4,967,580 |
Convertible Preferred Stock | 20,500 | 20,500 |
Weighted average common shares outstanding, diluted | 4,976,889 | 4,988,080 |
Net Income per share - Basic | $ 0.17 | $ 0.12 |
Income per shares - Diluted | $ 0.17 | $ 0.12 |
Adjustment [Member] | ||
Net income | $ 110,000 | $ 308,000 |
Weighted average common shares outstanding, basic | ||
Convertible Preferred Stock | ||
Weighted average common shares outstanding, diluted | ||
Net Income per share - Basic | $ 0.03 | $ 0.07 |
Income per shares - Diluted | $ 0.03 | $ 0.07 |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details Narrative) - USD ($) | 3 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
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, 2019 | Apr. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets measured on a recurring basis | $ 27,657,000 | $ 27,291,000 |
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 | 5,549,000 | 5,483,000 |
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 | 26,000 | 26,000 |
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 | 83,000 | 84,000 |
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 | 20,721,000 | 20,465,000 |
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 | 1,278,000 | 1,233,000 |
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 | 22,025,000 | 21,724,000 |
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 | 26,000 | 26,000 |
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 | 20,721,000 | 20,465,000 |
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 | 1,278,000 | 1,233,000 |
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 | 5,632,000 | 5,567,000 |
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 | 5,549,000 | 5,483,000 |
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 | 83,000 | 84,000 |
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 |
Correction of Previously Issu_3
Correction of Previously Issued Financial Statements - Schedule of Restatement of Financial Statements (Details) - USD ($) | 3 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Apr. 30, 2019 | |
Deferred Income Taxes | $ 1,240,000 | $ 1,198,000 | ||
Total Liabilities | 3,535,000 | 3,474,000 | ||
Accumulated other comprehensive income | 49,000 | 14,000 | ||
Retained Earnings | 41,859,000 | 40,883,000 | ||
Total stockholder's Equity | $ 40,511,000 | $ 38,807,000 | 40,511,000 | 39,553,000 |
Unrealized Gain (Loss) on Equity Securities | 145,000 | 432,000 | ||
Total Other Income (Expense) | 388,000 | 560,000 | ||
Income Before Provisions for Income Taxes | 1,298,000 | 1,333,000 | ||
Deferred tax expense (benefit) | 28,000 | 161,000 | ||
Total Income Tax Expense | 322,000 | 408,000 | ||
Net Income | $ 976,000 | $ 925,000 | ||
Basic | $ 0.20 | $ 0.19 | ||
Diluted | $ 0.20 | $ 0.19 | ||
Unrealized holding gains arising during period | $ 49,000 | $ 220,000 | ||
Less: reclassification adjustment for (gains) losses included in net income | ||||
Income tax expense related to other comprehensive income | (14,000) | (63,000) | ||
Other Comprehensive Income (Loss) | 35,000 | 157,000 | ||
Comprehensive Income | 1,011,000 | 1,082,000 | ||
Balance | 39,553,000 | 37,730,000 | ||
Purchase of common stock | (53,000) | (5,000) | ||
Impact of adoption of ASU 2016-01 | 37,730,000 | |||
Unrealized gain (loss), net of tax effect | 35,000 | 157,000 | ||
Balance | 40,511,000 | 38,807,000 | ||
Unrealized (gain) loss on equity securities | (145,000) | (432,000) | ||
Deferred income taxes | 28,000 | 161,000 | ||
Net cash provided by operating activities | $ 1,139,000 | $ 890,000 | ||
Weighted average common shares outstanding, basic | 4,956,389 | 4,967,580 | ||
Convertible Preferred Stock | 20,500 | 20,500 | ||
Weighted average common shares outstanding, diluted | 4,976,889 | 4,988,080 | ||
Original [Member] | ||||
Deferred Income Taxes | 1,247,000 | |||
Total Liabilities | 3,542,000 | |||
Accumulated other comprehensive income | 2,890,000 | 2,752,000 | ||
Retained Earnings | 39,011,000 | 38,145,000 | ||
Total stockholder's Equity | $ 39,553,000 | $ 37,730,000 | 40,504,000 | 39,553,000 |
Unrealized Gain (Loss) on Equity Securities | ||||
Total Other Income (Expense) | 243,000 | 128,000 | ||
Income Before Provisions for Income Taxes | 1,153,000 | 901,000 | ||
Deferred tax expense (benefit) | (7,000) | 37,000 | ||
Total Income Tax Expense | 287,000 | 284,000 | ||
Net Income | $ 866,000 | $ 617,000 | ||
Basic | $ 0.17 | $ 0.12 | ||
Diluted | $ 0.17 | $ 0.12 | ||
Unrealized holding gains arising during period | $ 324,000 | $ 607,000 | ||
Less: reclassification adjustment for (gains) losses included in net income | (130,000) | 44,000 | ||
Income tax expense related to other comprehensive income | (56,000) | (188,000) | ||
Other Comprehensive Income (Loss) | 138,000 | 463,000 | ||
Comprehensive Income | 1,004,000 | 1,080,000 | ||
Balance | 39,553,000 | 37,730,000 | ||
Purchase of common stock | (53,000) | (5,000) | ||
Impact of adoption of ASU 2016-01 | ||||
Unrealized gain (loss), net of tax effect | 138,000 | 463,000 | ||
Balance | 40,504,000 | 38,805,000 | ||
Unrealized (gain) loss on equity securities | ||||
Deferred income taxes | (7,000) | 37,000 | ||
Net cash provided by operating activities | $ 1,139,000 | $ 890,000 | ||
Weighted average common shares outstanding, basic | 4,956,389 | 4,967,580 | ||
Convertible Preferred Stock | 20,500 | 20,500 | ||
Weighted average common shares outstanding, diluted | 4,976,889 | 4,988,080 | ||
Adjustment [Member] | ||||
Deferred Income Taxes | (7,000) | |||
Total Liabilities | (7,000) | |||
Accumulated other comprehensive income | (2,841,000) | (2,738,000) | ||
Retained Earnings | 2,848,000 | 2,738,000 | ||
Total stockholder's Equity | $ 7,000 | |||
Unrealized Gain (Loss) on Equity Securities | 145,000 | 432,000 | ||
Total Other Income (Expense) | 145,000 | 432,000 | ||
Income Before Provisions for Income Taxes | 145,000 | 432,000 | ||
Deferred tax expense (benefit) | 35,000 | 124,000 | ||
Total Income Tax Expense | 42,000 | 124,000 | ||
Net Income | $ 110,000 | $ 308,000 | ||
Basic | $ 0.03 | $ 0.07 | ||
Diluted | $ 0.03 | $ 0.07 | ||
Unrealized holding gains arising during period | $ (275,000) | $ (387,000) | ||
Less: reclassification adjustment for (gains) losses included in net income | 130,000 | (44,000) | ||
Income tax expense related to other comprehensive income | 42,000 | 125,000 | ||
Other Comprehensive Income (Loss) | (103,000) | (306,000) | ||
Comprehensive Income | 7,000 | 2,000 | ||
Balance | ||||
Purchase of common stock | ||||
Impact of adoption of ASU 2016-01 | ||||
Unrealized gain (loss), net of tax effect | (103,000) | (306,000) | ||
Balance | 7,000 | 2,000 | ||
Unrealized (gain) loss on equity securities | (145,000) | (432,000) | ||
Deferred income taxes | 35,000 | 124,000 | ||
Net cash provided by operating activities | ||||
Weighted average common shares outstanding, basic | ||||
Convertible Preferred Stock | ||||
Weighted average common shares outstanding, diluted |