UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark
(Mark One)
[ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
| [X] | Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarter ended October 31, 2015
[ ] Transition report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
2016
| [ ] | Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ___________________________ to ___________
________________
Commission File Number: 000-05378
GEORGE RISK INDUSTRIES, INC.
(Exact
(Exact name of small business issuer as specified in its charter)
Colorado 84-0524756
(State of incorporation) (IRS Employers Identification No.)
802 South Elm St.
Kimball, NE 69145
(Address of principal executive offices) (Zip Code)
| Colorado | | 84-0524756 |
| (State of incorporation) | | (IRS Employers Identification No.) |
| 802 South Elm St. | | |
| Kimball, NE | | 69145 |
| (Address of principal executive offices) | | (Zip Code) |
(308) 235-4645
(Registrant's
(Registrant’s telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ][X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [X]
Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company in Rule 12b-2 of the Exchange Act.
| Large accelerated filer [ ] | | Accelerated filer [ ] |
| Non-accelerated filer [ ] | | Smaller reporting company [X] |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Act).Yes [ ] No [ X ]
[X]
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of the Registrant'sRegistrant’s Common Stock outstanding, as of December 14, 201415, 2016 was 5,024,260.
4,946,250.
Transitional Small Business Disclosure Format: Yes [ X ][X] No [ ]
GEORGE RISK INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
The unaudited financial statements for the three and six monthsix-month period ended October 31, 2015,2016, are attached hereto.
GEORGE RISK INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
October 31, April 30,
2015 2015
------------ ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 4,719,000 $ 5,691,000
Investments and securities 24,553,000 25,266,000
Accounts receivable:
Trade, net of $206 and $160
doubtful account allowance 1,753,000 2,007,000
Other 5,000 3,000
Note receivable, current -- 1,000
Income tax overpayment 762,000 534,000
Inventories, net 2,826,000 2,275,000
Prepaid expenses 71,000 108,000
------------ ------------
Total Current Assets $34,689,000 $35,885,000
Property and Equipment, net, at cost 610,000 661,000
Other Assets
Investment in Limited Land Partnership,
at cost 253,000 253,000
Projects in process 70,000 56,000
Other 1,000 1,000
------------ ------------
Total Other Assets $ 324,000 $ 310,000
TOTAL ASSETS $35,623,000 $36,856,000
============ ============
| 2 | |
GEORGE RISK INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
| | | October 31, 2016 | | | April 30, 2016 | |
| | | (unaudited) | | | | |
| | | | | | | |
| ASSETS | | | | | | | | |
| | | | | | | | | |
| Current Assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 5,592,000 | | | $ | 5,918,000 | |
| Investments and securities | | | 25,094,000 | | | | 24,530,000 | |
| Accounts receivable: | | | | | | | | |
| Trade, net of $394 and $74 doubtful account allowance | | | 1,859,000 | | | | 1,912,000 | |
| Income tax overpayment | | | 201,000 | | | | 199,000 | |
| Inventories, net | | | 2,663,000 | | | | 2,964,000 | |
| Prepaid expenses | | | 57,000 | | | | 68,000 | |
| Total Current Assets | | $ | 35,466,000 | | | $ | 35,591,000 | |
| | | | | | | | | |
| Property and Equipment, net, at cost | | | 785,000 | | | | 756,000 | |
| | | | | | | | | |
| Other Assets | | | | | | | | |
| Investment in Limited Land Partnership, at cost | | | 273,000 | | | | 253,000 | |
| Projects in process | | | 17,000 | | | | 68,000 | |
| Total Other Assets | | $ | 290,000 | | | $ | 321,000 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 36,541,000 | | | $ | 36,668,000 | |
See accompanying notes to the condensed financial statements.
GEORGE RISK INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
October 31, April 30,
2015 2015
------------ ------------
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 134,000 $ 110,000
Dividends payable 1,255,000 1,099,000
Accrued expenses:
Payroll and related expenses 309,000 306,000
Deferred income taxes 442,000 857,000
------------ ------------
Total Current Liabilities $ 2,140,000 $ 2,372,000
Long-Term Liabilities
Deferred income taxes 105,000 115,000
------------ ------------
Total Long-Term Liabilities $ 105,000 $ 115,000
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 1,736,000 1,736,000
Accumulated other comprehensive income 708,000 1,282,000
Retained earnings 33,547,000 33,960,000
Treasury stock, 3,473,671 and 3,470,906
shares, at cost (3,562,000) (3,558,000)
------------ ------------
Total Stockholders' Equity $33,378,000 $34,369,000
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY $35,623,000 $36,856,000
============ ============
| 3 | |
See the companying notes to the condensed financial statements.
GEORGE RISK INDUSTRIES, INC.
CONDENSED INCOME STATEMENTS
(Unaudited)
Three months Six months Three months Six months
ended ended ended ended
October 31, October 31, October 31, October 31,
2015 2015 2014 2014
---------------------------------------------------
Net Sales $ 2,775,000 $ 5,630,000 $ 3,020,000 $ 6,019,000
Less: cost of goods sold (1,187,000) (2,548,000) (1,288,000) (2,802,000)
------------ ------------ ------------ ------------
Gross Profit $ 1,588,000 $ 3,082,000 $ 1,732,000 $ 3,217,000
Operating Expenses:
General and
administrative 213,000 416,000 218,000 412,000
Sales 486,000 980,000 463,000 956,000
Engineering 23,000 38,000 21,000 41,000
Rent paid to related
parties 5,000 9,000 5,000 9,000
------------ ------------ ------------ ------------
Total Operating Expenses $ 727,000 $ 1,443,000 $ 707,000 $ 1,418,000
Income From Operations 861,000 1,639,000 1,025,000 1,799,000
Other Income (Expense)
Other 5,000 8,000 0 1,000
Dividend and interest
income 142,000 309,000 136,000 289,000
Gain (loss) on
investments (135,000) (46,000) 128,000 265,000
------------ ------------ ------------ ------------
$ 12,000 $ 271,000 $ 264,000 $ 555,000
Income Before Provisions
for Income Tax 873,000 1,910,000 1,289,000 2,354,000
Provisions for Income Tax
Current expense (287,000) (626,000) (233,000) (583,000)
Deferred tax benefit
(expense) (13,000) 11,000 (35,000) (18,000)
------------ ------------ ------------ ------------
Total Income Tax Expense $ (300,000) $ (615,000) $ (268,000) $ (601,000)
Net Income $ 573,000 $ 1,295,000 $ 1,021,000 $ 1,753,000
============ ============ ============ ============
Cash Dividends
Common Stock ($0.34
per share) $(1,709,000) $(1,709,000)
Common Stock ($0.32
per share) $(1,609,000) $(1,609,000)
Income Per Share of Common Stock:
Basic $0.11 $0.26 $0.20 $0.35
Assuming Dilution $0.11 $0.26 $0.20 $0.35
Weighted Average Number of
Common Shares Outstanding:
Basic 5,025,244 5,025,379 5,029,609 5,029,759
Assuming Dilution 5,045,744 5,045,879 5,050,109 5,050,259
See the accompanying notes to the condensed financial statements.
GEORGE RISK INDUSTRIES, INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
Three months Six months Three months Six months
ended ended ended ended
October 31, October 31, October 31, October 31,
2015 2015 2014 2014
----------------------------------------------------
Net Income $ 573,000 $ 1,295,000 $ 1,021,000 $ 1,753,000
------------ ------------ ------------ ------------
Other Comprehensive Income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding
gains (losses) arising
during period (631,000) (1,118,000) 366,000 639,000
Reclassification adjustment
for gains (losses) included
in net income 194,000 131,000 (503,000) (649,000)
Income tax benefit (expense)
related to other com-
prehensive income 183,000 413,000 57,000 4,000
------------ ------------ ------------ ------------
Other Comprehensive
Income $ (254,000) $ (574,000) $ (80,000) $ (6,000)
Comprehensive Income $ 319,000 $ 721,000 $ 941,000 $ 1,747,000
============ ============ ============ ============
GEORGE RISK INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
| | | October 31, 2016 | | | April 30, 2016 | |
| | | (unaudited) | | | | |
| | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Accounts payable, trade | | $ | 128,000 | | | $ | 31,000 | |
| Dividends payable | | | 1,417,000 | | | | 1,255,000 | |
| Accrued expenses: | | | | | | | | |
| Payroll and related expenses | | | 304,000 | | | | 320,000 | |
| Deferred income taxes | | | 148,000 | | | | 87,000 | |
| Total Current Liabilities | | $ | 1,997,000 | | | $ | 1,693,000 | |
| | | | | | | | | |
| Long-Term Liabilities | | | | | | | | |
| Deferred income taxes | | | 177,000 | | | | 191,000 | |
| Total Long-Term Liabilities | | $ | 177,000 | | | $ | 191,000 | |
| | | | | | | | | |
| 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 | | | 1,736,000 | | | | 1,736,000 | |
| Accumulated other comprehensive income | | | 430,000 | | | | 347,000 | |
| Retained earnings | | | 34,838,000 | | | | 35,337,000 | |
| Less: treasury stock, 3,481,221 and 3,481,021 shares, at cost | | | (3,586,000 | ) | | | (3,585,000 | ) |
| Total Stockholders’ Equity | | $ | 34,367,000 | | | $ | 34,784,000 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 36,541,000 | | | $ | 36,668,000 | |
See accompanying notes to the condensed financial statements.
statements
GEORGE RISK INDUSTRIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months Six months
ended ended
October 31, October 31,
2015 2014
---------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,295,000 $ 1,753,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 79,000 71,000
(Gain) loss on sale of investments 46,000 (265,000)
Reserve for bad debts 0 (5,000)
Reserve for obsolete inventory 12,000 10,000
Deferred income taxes (11,000) 19,000
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 254,000 (14,000)
Inventories (563,000) (51,000)
Prepaid expenses 37,000 35,000
Other receivables (2,000) (3,000)
Income tax overpayment (228,000) 0
Increase (decrease) in:
Accounts payable 24,000 60,000
Accrued expenses 3,000 27,000
Income tax payable 0 (31,000)
------------ ------------
Net cash provided by (used in) operating
activities $ 946,000 $ 1,606,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Other assets manufactured (14,000) (18,000)
(Purchase) of property and equipment (27,000) (111,000)
Proceeds from sale of marketable securities 55,000 21,000
(Purchase) of marketable securities (376,000) (377,000)
(Purchase) of long-term investment 0 (15,000)
Collections of loans to employees 1,000 0
------------ ------------
Net cash provided by (used in) investing
activities $ (361,000) $ (500,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of tresury stock (4,000) (4,000)
Dividends paid (1,553,000) (1,463,000)
------------ ------------
Net cash provided by (used in) financing
activities $(1,557,000) $(1,467,000)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS $ (972,000) $ (361,000)
Cash and cash equivalents, beginning of
period $ 5,691,000 $ 5,872,000
------------ ------------
Cash and cash equivalents, end of period $ 4,719,000 $ 5,511,000
============ ============
Supplemental Disclosure of Cash Flow
Information
Cash payments for:
Income taxes $ 850,000 $ 610,000
Interest expense $ 0 $ 0
Cash receipts for:
Income taxes $ 0 $ 0
| 4 | |
GEORGE RISK INDUSTRIES, INC.
CONDENSED INCOME STATEMENTS (Unaudited)
| | | Three months | | | Six months | | | Three months | | | Six months | |
| | | ended | | | ended | | | ended | | | ended | |
| | | Oct 31, 2016 | | | Oct 31, 2016 | | | Oct 31, 2015 | | | Oct 31, 2015 | |
| Net Sales | | $ | 2,883,000 | | | $ | 5,549,000 | | | $ | 2,775,000 | | | $ | 5,630,000 | |
| Less: Cost of Goods Sold | | | (1,284,000 | ) | | | (2,670,000 | ) | | | (1,187,000 | ) | | | (2,548,000 | ) |
| Gross Profit | | $ | 1,599,000 | | | $ | 2,879,000 | | | $ | 1,588,000 | | | $ | 3,082,000 | |
| | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | |
| General and Administrative | | | 230,000 | | | | 441,000 | | | | 213,000 | | | | 416,000 | |
| Sales | | | 487,000 | | | | 971,000 | | | | 486,000 | | | | 980,000 | |
| Engineering | | | 24,000 | | | | 42,000 | | | | 23,000 | | | | 38,000 | |
| Rent Paid to Related Parties | | | 4,000 | | | | 9,000 | | | | 5,000 | | | | 9,000 | |
| Total Operating Expenses | | $ | 745,000 | | | $ | 1,463,000 | | | $ | 727,000 | | | $ | 1,443,000 | |
| | | | | | | | | | | | | | | | | |
| Income From Operations | | | 854,000 | | | | 1,416,000 | | | | 861,000 | | | | 1,639,000 | |
| | | | | | | | | | | | | | | | | |
| Other Income (Expense) | | | | | | | | | | | | | | | | |
| Other | | | 7,000 | | | | 10,000 | | | | 5,000 | | | | 8,000 | |
| Dividend and Interest Income | | | 126,000 | | | | 318,000 | | | | 142,000 | | | | 309,000 | |
| Gain (Loss) on Investments | | | 38,000 | | | | 85,000 | | | | (135,000 | ) | | | (46,000 | ) |
| | | $ | 171,000 | | | $ | 413,000 | | | $ | 12,000 | | | $ | 271,000 | |
| | | | | | | | | | | | | | | | | |
| Income Before Provisions for Income Taxes | | | 1,025,000 | | | | 1,829,000 | | | | 873,000 | | | | 1,910,000 | |
| | | | | | | | | | | | | | | | | |
| Provisions for Income Taxes: | | | | | | | | | | | | | | | | |
| Current Expense | | | (325,000 | ) | | | (583,000 | ) | | | (287,000 | ) | | | (626,000 | ) |
| Deferred Tax Benefit (Expense) | | | (8,000 | ) | | | 13,000 | | | | (13,000 | ) | | | 11,000 | |
| Total Income Tax Expense | | $ | (333,000 | ) | | $ | (570,000 | ) | | $ | (300,000 | ) | | $ | (615,000 | ) |
| | | | | | | | | | | | | | | | | |
| Net Income | | $ | 692,000 | | | $ | 1,259,000 | | | $ | 573,000 | | | $ | 1,295,000 | |
| | | | | | | | | | | | | | | | | |
| Cash Dividends | | | | | | | | | | | | | | | | |
| Common Stock ($0.35 per share) | | $ | 1,758,000 | | | $ | 1,758,000 | | | | | | | | | |
| Common Stock ($0.34 per share) | | | | | | | | | | $ | 1,709,000 | | | $ | 1,709,000 | |
| | | | | | | | | | | | | | | | | |
| Income Per Share of Common Stock | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.14 | | | $ | 0.25 | | | $ | 0.11 | | | $ | 0.26 | |
| Diluted | | $ | 0.14 | | | $ | 0.25 | | | $ | 0.11 | | | $ | 0.26 | |
| | | | | | | | | | | | | | | | | |
| Weighted Average Number of Common Shares Outstanding | | | | | | | | | | | | | | | | |
| Basic | | | 5,021,660 | | | | 5,021,701 | | | | 5,025,244 | | | | 5,025,379 | |
| Diluted | | | 5,042,160 | | | | 5,042,201 | | | | 5,045,744 | | | | 5,045,879 | |
See accompanying notes to the condensed financial statements.
statements
GEORGE RISK INDUSTRIES, INC.
CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
| | | Three months | | | Six months | | | Three months | | | Six months | |
| | | ended | | | ended | | | ended | | | ended | |
| | | Oct 31, 2016 | | | Oct 31, 2016 | | | Oct 31, 2015 | | | Oct 31, 2015 | |
| | | | | | | | | | | | | |
| Net Income | | $ | 692,000 | | | $ | 1,259,000 | | | $ | 573,000 | | | $ | 1,295,000 | |
| | | | | | | | | | | | | | | | | |
| Other Comprehensive Income, net of tax | | | | | | | | | | | | | | | | |
| Unrealized gain (loss) on securities: | | | | | | | | | | | | | | | | |
| Unrealized holding gains (losses) arising during period | | | (376,000 | ) | | | 168,000 | | | | (631,000 | ) | | | (1,118,000 | ) |
| Reclassification adjustment for gains (losses) included in net income | | | (7,000 | ) | | | (25,000 | ) | | | 194,000 | | | | 131,000 | |
| Income tax benefit (expense) related to other comprehensive income | | | 160,000 | | | | (60,000 | ) | | | 183,000 | | | | 413,000 | |
| | | | | | | | | | | | | | | | | |
| Other Comprehensive Income | | $ | (223,000 | ) | | $ | 83,000 | | | $ | (254,000 | ) | | $ | (574,000 | ) |
| | | | | | | | | | | | | | | | | |
| Comprehensive Income | | $ | 469,000 | | | $ | 1,342,000 | | | $ | 319,000 | | | $ | 721,000 | |
See accompanying notes to the condensed financial statements
GEORGE RISK INDUSTRIES, INC.
CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
| | | Six months | | | Six months | |
| | | ended | | | ended | |
| | | Oct 31, 2016 | | | Oct 31, 2015 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
| Net Income | | $ | 1,259,000 | | | $ | 1,295,000 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 91,000 | | | | 79,000 | |
| (Gain) loss on sale of investments | | | (98,000 | ) | | | 23,000 | |
| Impairments on investments | | | 13,000 | | | | 23,000 | |
| Reserve for obsolete inventory | | | 15,000 | | | | 12,000 | |
| Deferred income taxes | | | (13,000 | ) | | | (11,000 | ) |
| Changes in assets and liabilities: | | | | | | | | |
| (Increase) decrease in: | | | | | | | | |
| Accounts receivable | | | 53,000 | | | | 254,000 | |
| Inventories | | | 286,000 | | | | (563,000 | ) |
| Prepaid expenses | | | 12,000 | | | | 37,000 | |
| Other receivables | | | - | | | | (2,000 | ) |
| Income tax overpayment | | | (2,000 | ) | | | (228,000 | ) |
| Increase (decrease) in: | | | | | | | | |
| Accounts payable | | | 97,000 | | | | 24,000 | |
| Accrued expenses | | | (16,000 | ) | | | 3,000 | |
| Net cash provided by (used in) operating activities | | $ | 1,697,000 | | | $ | 946,000 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Other assets manufactured | | | 50,000 | | | | (14,000 | ) |
| (Purchase) of property and equipment | | | (120,000 | ) | | | (27,000 | ) |
| Proceeds from sale of marketable securities | | | 37,000 | | | | 55,000 | |
| (Purchase) of marketable securities | | | (373,000 | ) | | | (376,000 | ) |
| (Purchase) of long-term investment | | | (20,000 | ) | | | - | |
| Collection of loans to employees | | | - | | | | 1,000 | |
| Net cash provided by (used in) investing activities | | $ | (426,000 | ) | | $ | (361,000 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| (Purchase) of treasury stock | | | (1,000 | ) | | | (4,000 | ) |
| Dividends paid | | | (1,596,000 | ) | | | (1,553,000 | ) |
| Net cash provided by (used in) financing activities | | $ | (1,597,000 | ) | | $ | (1,557,000 | ) |
| | | | | | | | | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | $ | (326,000 | ) | | $ | (972,000 | ) |
| | | | | | | | | |
| Cash and Cash Equivalents, beginning of period | | $ | 5,918,000 | | | $ | 5,691,000 | |
| Cash and Cash Equivalents, end of period | | $ | 5,592,000 | | | $ | 4,719,000 | |
| | | | | | | | | |
| Supplemental Disclosure for Cash Flow Information: | | | | | | | | |
| Cash payments for: | | | | | | | | |
| Income taxes | | $ | 706,000 | | | $ | 850,000 | |
| Interest paid | | $ | 0 | | | $ | 0 | |
| Cash receipts for: | | | | | | | | |
| Income taxes | | $ | 0 | | | $ | 0 | |
See accompanying notes to the condensed financial statements
GEORGE RISK INDUSTRIES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
OCTOBER 31, 2015
2016
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 com-
pletecomplete 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'sCompany’s April 30, 20152016 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal re-
curringrecurring 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.
Note 2 Marketable Securities
Investments
The Company has investments in publicly traded equity securities, cor-
poratecorporate bonds, state and municipal debt securities, real estate investment trusts, and money markets funds. The investments in securities are classi-
fiedclassified as available-for-sale securities, and are reported at fair value. Available-for-sale investments in debt securities mature between JanuaryNovember 2016 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'stockholders’ equity. Dividend and interest income are reported as earned.
As of October 31, 2015,2016 and April 30, 2016, investments available-for-sale consisted of the following:
| | | | | | Gross | | | Gross | | | | |
| Investments at | | Cost | | | Unrealized | | | Unrealized | | | Fair | |
| October 31, 2016 | | Basis | | | Gains | | | Losses | | | Value | |
| Municipal bonds | | $ | 5,964,000 | | | $ | 107,000 | | | $ | (233,000 | ) | | $ | 5,838,000 | |
| Corporate bonds | | $ | 129,000 | | | $ | - | | | $ | (1,000 | ) | | $ | 128,000 | |
| REITs | | $ | 42,000 | | | $ | 6,000 | | | $ | (3,000 | ) | | $ | 45,000 | |
| Equity securities | | $ | 15,948,000 | | | $ | 1,373,000 | | | $ | (511,000 | ) | | $ | 16,810,000 | |
| Money markets and CDs | | $ | 2,273,000 | | | $ | - | | | $ | - | | | $ | 2,273,000 | |
| Total | | $ | 24,356,000 | | | $ | 1,486,000 | | | $ | (748,000 | ) | | $ | 25,094,000 | |
Gross Gross
Cost Unrealized Unrealized Fair
Basis Gains Losses Value
------------ ------------ ------------ ------------
Municipal bonds $ 6,535,000 $ 107,000 $ (139,000) $ 6,503,000
Corporate bonds $ 30,000 $ -- $ (6,000) $ 24,000
REITs $ 86,000 $ 1,000 $ (13,000) $ 74,000
Equity securities $14,246,000 $ 1,630,000 $ (364,000) $15,512,000
Money markets $ 2,440,000 $ -- $ -- $ 2,440,000
------------ ------------ ------------ ------------
Total $23,337,000 $ 1,738,000 $ (552,000) $24,553,000
| 8 | |
| | | | | Gross | | | Gross | | | | |
| Investments at | | Cost | | | Unrealized | | | Unrealized | | | Fair | |
| April 30, 2016 | | Basis | | | Gains | | | Losses | | | Value | |
| Municipal bonds | | $ | 6,489,000 | | | $ | 133,000 | | | $ | (239,000 | ) | | $ | 6,383,000 | |
| Corporate bonds | | $ | 130,000 | | | $ | - | | | $ | (4,000 | ) | | $ | 126,000 | |
| REITs | | $ | 42,000 | | | $ | 4,000 | | | $ | (2,000 | ) | | $ | 44,000 | |
| Equity securities | | $ | 14,796,000 | | | $ | 1,187,000 | | | $ | (484,000 | ) | | $ | 15,499,000 | |
| Money markets and CDs | | $ | 2,478,000 | | | $ | - | | | $ | - | | | $ | 2,478,000 | |
| Total | | $ | 23,935,000 | | | $ | 1,324,000 | | | $ | (729,000 | ) | | $ | 24,530,000 | |
The Company evaluates all marketable securities for other-than temp-
orarytemporary declines in fair value, which are defined as when the cost basis ex-
ceedsexceeds 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"“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 recordeddid not record an impairment losses of $23,000 for
bothloss during the quarter, andbut did record a loss of $13,000 for the six months ended October 31, 2015.2016. Likewise, as for the corresponding periods last year, management recorded an $8,000did not record a loss for the quarter, but did record a $23,000 impairment loss for the three and six months ended October 31, 2014.
2015.
The following table shows the investments with unrealized losses that are not deemed to be "other-than-temporarily impaired"“other-than-temporarily impaired”, aggregated by invest-
mentinvestment category and length of time that individual securities have been in a continuous unrealized loss position, at October 31, 2015.
2016 and April 30, 2016, respectively.
Unrealized Loss Breakdown by Investment Type at October 31, 2016
| | | Less than 12 months | | | 12 months or greater | | | Total | |
| Description | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | |
| Municipal bonds | | $ | 737,000 | | | $ | (11,000 | ) | | $ | 1,850,000 | | | $ | (222,000 | ) | | $ | 2,587,000 | | | $ | (233,000 | ) |
| Corporate bonds | | $ | 99,000 | | | $ | - | | | $ | 29,000 | | | $ | (1,000 | ) | | $ | 128,000 | | | $ | (1,000 | ) |
| REITs | | $ | - | | | $ | - | | | $ | 25,000 | | | $ | (3,000 | ) | | $ | 25,000 | | | $ | (3,000 | ) |
| Equity securities | | $ | 4,008,000 | | | $ | (319,000 | ) | | $ | 1,445,000 | | | $ | (192,000 | ) | | $ | 5,453,000 | | | $ | (511,000 | ) |
| Total | | $ | 4,844,000 | | | $ | (330,000 | ) | | $ | 3,349,000 | | | $ | (418,000 | ) | | $ | 8,193,000 | | | $ | (748,000 | ) |
Less than 12 months 12 months or greater Total
----------------------- --------------------- ---------------------
Fair Unrealized Fair Unrealized Fair Unrealized
Value Loss Value Loss Value Loss
...........................................................................
Municipal bonds
$2,506,000 $ (48,000) $1,341,000 $ (91,000) $ 3,847,000 $ (139,000)
Corporate bonds
$ 24,000 $ (6,000) $ -- $ -- $ 24,000 $ (6,000)
REITs
$ 28,000 $ (1,000) $ 16,000 $ (12,000) $ 44,000 $ (13,000)
Equity securities
$2,644,000 $ (185,000) $1,098,000 $(179,000) $ 3,742,000 $ (364,000)
----------- ------------ ----------- ---------- ------------ ------------
Total
$5,202,000 $ (240,000) $2,455,000 $(282,000) $ 7,657,000 $ (522,000)
| 9 | |
Unrealized Loss Breakdown by Investment Type at April 30, 2016
| | | Less than 12 months | | | 12 months or greater | | | Total | |
| Description | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | | | Fair Value | | | Unrealized Loss | |
| Municipal bonds | | $ | 3,129,000 | | | $ | (215,000 | ) | | $ | 609,000 | | | $ | (24,000 | ) | | $ | 3,738,000 | | | $ | (239,000 | ) |
| Corporate bonds | | | - | | | | - | | | $ | 27,000 | | | $ | (4,000 | ) | | $ | 27,000 | | | $ | (4,000 | ) |
| REITs | | $ | 27,000 | | | $ | (2,000 | ) | | | - | | | | - | | | $ | 27,000 | | | $ | (2,000 | ) |
| Equity securities | | $ | 5,018,000 | | | $ | (323,000 | ) | | $ | 1,171,000 | | | $ | (161,000 | ) | | $ | 6,189,000 | | | $ | (484,000 | ) |
| Total | | $ | 8,174,000 | | | $ | (540,000 | ) | | $ | 1,807,000 | | | $ | (189,000 | ) | | $ | 9,981,000 | | | $ | (729,000 | ) |
Municipal Bonds
---------------
The unrealized losses on the Company'sCompany’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these invest-
mentsinvestments 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 October 31, 2015.
2016.
Corporate Bonds
---------------
The Company'sCompany’s unrealized loss on investments in corporate bonds relates to one bond.two bonds. The contractual term of this investmentthese investments does not permit the issuer to settle the securitysecurities at a price less than the amortized cost of the invest-
ment.investment. Because the Company has the ability to hold this investmentthese investments until a recovery of fair value, which may be maturity, the Company does not consider this investmentthese investments to be other-than-temporarily impaired at October 31, 2015.
2016.
Marketable Equity Securities and REITs
--------------------------------------
The Company'sCompany’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'smanagement’s plan to hold ontoon to these investments for an extended period, the companyCompany does not consider these investments to be other-
than-temporarilyother-than-temporarily impaired at October 31, 2015.
2016.
Note 3 Inventories
Inventories at October 31, 20152016 and April 30, 20152016 consisted of the following:
| | | October 31, 2016 | | | April 30, 2016 | |
| | | | | | | |
| Raw materials | | $ | 1,819,000 | | | $ | 1,948,000 | |
| Work in process | | | 495,000 | | | | 641,000 | |
| Finished goods | | | 437,000 | | | | 448,000 | |
| | | | 2,751,000 | | | | 3,037,000 | |
| Less: allowance for obsolete inventory | | | (88,000 | ) | | | (73,000 | ) |
| Totals | | $ | 2,663,000 | | | $ | 2,964,000 | |
October 31, April 30,
2015 2015
------------ ------------
Raw Materials $ 1,887,000 $ 1,557,000
Work in Process 594,000 466,000
Finished Goods 423,000 318,000
------------ ------------
$ 2,904,000 $ 2,341,000
Less: allowance for obsolete
inventory (78,000) (66,000)
------------ ------------
Net Inventories $ 2,826,000 $ 2,275,000
============ ============
| 11 | |
Note 4 Business Segments
The following is financial information relating to industry segments:
| | | Three months | | | Six months | | | Three months | | | Six months | |
| | | ended | | | ended | | | ended | | | ended | |
| | | Oct 31, 2016 | | | Oct 31, 2016 | | | Oct 31, 2015 | | | Oct 31, 2015 | |
| Net revenue: | | | | | | | | | | | | | | | | |
| Security alarm products | | $ | 2,473,000 | | | $ | 4,746,000 | | | $ | 2,351,000 | | | $ | 4,768,000 | |
| Other products | | | 410,000 | | | | 803,000 | | | | 424,000 | | | | 862,000 | |
| Total net revenue | | $ | 2,883,000 | | | $ | 5,549,000 | | | $ | 2,775,000 | | | $ | 5,630,000 | |
| | | | | | | | | | | | | | | | | |
| Income from operations: | | | | | | | | | | | | | | | | |
| Security alarm products | | | 732,000 | | | | 1,211,000 | | | | 729,000 | | | | 1,389,000 | |
| Other products | | | 122,000 | | | | 205,000 | | | | 132,000 | | | | 250,000 | |
| Total income from operations | | $ | 854,000 | | | $ | 1,416,000 | | | $ | 861,000 | | | $ | 1,639,000 | |
| | | | | | | | | | | | | | | | | |
| Depreciation and amortization: | | | | | | | | | | | | | | | | |
| Security alarm products | | | 7,000 | | | | 21,000 | | | | 4,000 | | | | 8,000 | |
| Other products | | | 28,000 | | | | 53,000 | | | | 30,000 | | | | 60,000 | |
| Corporate general | | | 12,000 | | | | 17,000 | | | | 6,000 | | | | 11,000 | |
| Total depreciation and amortization | | $ | 47,000 | | | $ | 91,000 | | | $ | 40,000 | | | $ | 79,000 | |
| | | | | | | | | | | | | | | | | |
| Capital expenditures: | | | | | | | | | | | | | | | | |
| Security alarm products | | | - | | | | - | | | | 24,000 | | | | 24,000 | |
| Other products | | | 59,000 | | | | 114,000 | | | | - | | | | - | |
| Corporate general | | | 2,000 | | | | 6,000 | | | | - | | | | 3,000 | |
| Total capital expenditures | | $ | 61,000 | | | $ | 120,000 | | | $ | 24,000 | | | $ | 27,000 | |
| | | October 31, 2016 | | | April 30, 2016 | |
| Identifiable assets: | | | | | | | | |
| Security alarm products | | | 3,672,000 | | | | 4,203,000 | |
| Other products | | | 1,427,000 | | | | 1,142,000 | |
| Corporate general | | | 31,442,000 | | | | 31,323,000 | |
| Total assets | | $ | 36,541,000 | | | $ | 36,668,000 | |
For the quarter ended
October 31,
2015 2014
---------------------------
Net revenue:
Security alarm products 2,351,000 2,562,000
Other products 424,000 458,000
------------ ------------
Total net revenue $ 2,775,000 $ 3,020,000
Income from operations:
Security alarm products 729,000 869,000
Other products 132,000 156,000
------------ ------------
Total income from operations $ 861,000 $ 1,025,000
Identifiable assets:
Security alarm products 3,549,000 3,994,000
Other products 1,538,000 885,000
Corporate general 30,536,000 30,554,000
------------ ------------
Total assets $35,623,000 $35,433,000
Depreciation and amortization:
Security alarm products 4,000 3,000
Other products 30,000 29,000
Corporate general 6,000 6,000
------------ ------------
Total depreciation and amortization $ 40,000 $ 38,000
Capital expenditures:
Security alarm products 24,000 --
Other products -- 87,000
Corporate general -- 12,000
------------ ------------
Total capital expenditures $ 24,000 $ 99,000
| 12 | |
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 October 31, 2016 | |
| | | Income | | | Shares | | | Per-share | |
| | | (Numerator) | | | (Denominator) | | | Amount | |
| | | | | | | | | | | | | |
| Net Income | | $ | 692,000 | | | | - | | | | - | |
| | | | | | | | | | | | | |
| Basic EPS | | $ | 692,000 | | | | 5,021,660 | | | $ | .1378 | |
| Effect of dilutive securities: | | | | | | | | | | | | |
| Convertible preferred stock | | | 0 | | | | 20,500 | | | | (.0006 | ) |
| | | | | | | | | | | | - | |
| Diluted EPS | | $ | 692,000 | | | | 5,042,160 | | | $ | .1372 | |
| | | For the six months ended October 31, 2016 | |
| | | Income | | | Shares | | | Per-share | |
| | | (Numerator) | | | (Denominator) | | | Amount | |
| | | | | | | | | | |
| Net Income | | $ | 1,259,000 | | | | - | | | | - | |
| | | | | | | | | | | | | |
| Basic EPS | | $ | 1,259,000 | | | | 5,021,701 | | | $ | .2507 | |
| Effect of dilutive securities: | | | | | | | | | | | | |
| Convertible preferred stock | | | 0 | | | | 20,500 | | | | (.0010 | ) |
| | | | | | | | | | | | | |
| Diluted EPS | | $ | 1,259,000 | | | | 5,042,201 | | | $ | .2497 | |
| | | For the three months ended October 31, 2015 | |
| | | Income | | | Shares | | | Per-share | |
| | | (Numerator) | | | (Denominator) | | | Amount | |
| | | | | | | | | | |
| Net Income | | $ | 573,000 | | | | - | | | | - | |
| | | | | | | | | | | | | |
| Basic EPS | | $ | 573,000 | | | | 5,025,244 | | | $ | .1140 | |
| Effect of dilutive securities: | | | | | | | | | | | | |
| Convertible preferred stock | | | 0 | | | | 20,500 | | | | (.0004 | ) |
| | | | | | | | | | | | | |
| Diluted EPS | | $ | 573,000 | | | | 5,045,744 | | | $ | .1136 | |
For the three months ended October 31, 2015
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $ 573,000
===========
Basic EPS $ 573,000 5,025,244 $ 0.11
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $ 573,000 5,045,744 $ 0.11
For the six months ended October 31, 2015
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $1,295,000
===========
Basic EPS $1,295,000 5,025,379 $ 0.26
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $1,295,000 5,045,879 $ 0.26
For the three months ended October 31, 2014
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $1,021,000
===========
Basic EPS $1,021,000 5,029,609 $ 0.20
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $1,021,000 5,050,109 $ 0.20
For the six months ended October 31, 2014
-------------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
----------- ------------- -----------
Net Income $1,753,000
===========
Basic EPS $1,753,000 5,029,759 $ 0.35
Effect of dilutive securities:
Convertible preferred stock 0 20,500
----------- ------------- -----------
Diluted EPS $1,753,000 5,050,259 $ 0.35
| 13 | |
| | | For the six months ended October 31, 2015 | |
| | | Income | | | Shares | | | Per-share | |
| | | (Numerator) | | | (Denominator) | | | Amount | |
| | | | | | | | | | |
| Net Income | | $ | 1,295,000 | | | | - | | | | - | |
| | | | | | | | | | | | | |
| Basic EPS | | $ | 1,295,000 | | | | 5,025,379 | | | $ | .2577 | |
| Effect of dilutive securities: | | | | | | | | | | | | |
| Convertible preferred stock | | | 0 | | | | 20,500 | | | | (.0011 | ) |
| | | | | | | | | | | | | |
| Diluted EPS | | $ | 1,295,000 | | | | 5,045,879 | | | $ | .2566 | |
Note 6 Retirement Benefit Plan
On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the "Plan"“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 $3,000 were paid during both the quarterquarters ending October 31, 2016 and 2015, and $2,000 was paid during the corresponding quarter the
prior fiscal year.respectively. Likewise, the Company paid matching contributions of approximately $5,000 during both the six-month period ending October 31, 2015 and
$5,000 during the six-month period ending October 31, 2014. There were no
discretionary contributions paid during either the quarters or six-month periods ending October 31, 2016 and 2015, and 2014, respectively.
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 in-
herentinherent risk, transfer restrictions, and credit risk.
US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements)measurement) and the lowest priority to un-
observableunobservable 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 in-
struments traded in active markets.
Level 2 - Valuation is based upon quoted prices for similar in-
struments
| 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 model-based valuation techniques for which all sig-
nificant 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.
Marketable Securities
---------------------
As of October 31, 2015,2016, our investments consisted of money markets, publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt securities.securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the majority of securitiesinvestments 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 corporate bonds,REITs, the inputs are recorded atas Level 2.
Fair Value Hierarchy
--------------------
The following tables settable 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 October 31, 2015
---------------------------------------------------
Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Assets:
Municipal Bonds $ -- $ 6,503,000 $ -- $ 6,503,000
Corporate Bonds $ 24,000 $ -- $ -- $ 24,000
REITs $ 74,000 $ -- $ -- $ 74,000
Equity Securities $15,512,000 $ -- $ -- $15,512,000
Money Markets $ 2,440,000 $ -- $ -- $ 2,440,000
------------ ------------ ---------- ------------
Total fair value of
assets measured on a
recurring basis $18,050,000 $ 6,503,000 $ -- $24,553,000
============ ============ ========== ============
| 15 | |
| | | Assets Measured at Fair Value on a Recurring Basis as of
October 31, 2016 |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | - | | | $ | 5,838,000 | | | $ | - | | | $ | 5,838,000 | |
| Corporate Bonds | | $ | 128,000 | | | $ | - | | | $ | - | | | $ | 128,000 | |
| REITs | | $ | - | | | $ | 45,000 | | | $ | - | | | $ | 45,000 | |
| Equity Securities | | $ | 16,810,000 | | | $ | - | | | $ | - | | | $ | 16,810,000 | |
| Money Markets and CDs | | $ | 2,273,000 | | | $ | - | | | $ | - | | | $ | 2,273,000 | |
| Total fair value of assets measured on a recurring basis | | $ | 19,211,000 | | | $ | 5,883,000 | | | $ | - | | | $ | 25,094,000 | |
| | | Assets Measured at Fair Value on a Recurring Basis as of
April 30, 2016 |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| Assets: | | | | | | | | | | | | | | | | |
| Municipal Bonds | | $ | - | | | $ | 6,383,000 | | | $ | - | | | $ | 6,383,000 | |
| Corporate Bonds | | $ | 126,000 | | | $ | - | | | $ | - | | | $ | 126,000 | |
| REITs | | $ | - | | | $ | 44,000 | | | $ | - | | | $ | 44,000 | |
| Equity Securities | | $ | 15,499,000 | | | $ | - | | | $ | - | | | $ | 15,499,000 | |
| Money Markets and CDs | | $ | 2,478,000 | | | $ | - | | | $ | - | | | $ | 2,478,000 | |
| Total fair value of assets measured on a recurring basis | | $ | 18,103,000 | | | $ | 6,427,000 | | | $ | - | | | $ | 24,530,000 | |
Note 8 Subsequent Events
None
GEORGE RISK INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the "safe harbor"“safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "could," "would," "should," "anticipate,"
"expect," "intend," "believe," "estimate," "project"“may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project” or "continue,"“continue,” and the negatives of such terms are intended to identify forward-looking statements. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obliga-
tionobligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
The following discussion should be read in conjunction with the attached condensed consolidated financial statements, and with the Company'sCompany’s audited financial statements and discussion for the fiscal year ended April 30, 2015.
2016.
Executive Summary
~~~~~~~~~~~~~~~~~
The Company'sCompany’s performance has declinedremained fairly constant through the first and second quarters, showing a drop in salesdue to the continuation of our quality USA made products with the ability for customization and the poorour notable customer service. Additionally, strong performance in the stock market has generated some realized lossesadequate returns on investments. New challenges the Company has endured over the six months of this fiscal year include the
burden of regulatory requirements of the Affordable Care Act and the increasemarketable securities. Challenges in the minimum wage requirements, as well as selection andcoming months include the implementation of new hardware and software systems which will enhance productivity and communication throughout the organization.
organization and getting new products out to the marketplace.
Results of Operations
~~~~~~~~~~~~~~~~~~~~~
* Net sales showed a 6.46% decrease year-to-date over the same period in
the prior year. There were only slight decreases of less than 1% in
our most popular products lines and the Company's ongoing commitment
to outstanding customer service is one reason as to why sales did not
fall further.
* Cost of goods sold remained steady throughout the six months ended
October 31, 2015 at 45.26% of sales, compared to 46.55% in the prior
year, keeping well within the target of less than 50%.
* Operating expenses were up approximately $25,000
| ● | Net sales were $2,883,000 for the period ended
October 31, 2015 as compared to the corresponding period last year.
These costs are primarily due to new product development and increased
sales advertising. The Company has been able to keep the operating
expenses at less than 30% of net sales over the last several years;
however, the effects of the Accountable Care Act and the State of
Nebraska regulatory increase in the minimum wage continue to provide
concerns regarding the ability to maintain this pattern.
* Income from operations for the six months ended October 31, 2015 was
at $1,639,000, an 8.89% decrease from the corresponding period last
year, which had income from operations of $1,799,000.
* Other income and expenses are down when comparing to the current six
month period the prior year, with only a decrease of approximately
$284,000 in the current year. The majority of activity in these
accounts consists of investment interest, dividends, and gain or loss
on sale of investments. With the recent decline in the performance of
the stock market, decisions were made to sell many holdings and take
the realized losses on the investments over the last few months.
* Overall net income for the six month period ended October 31, 2015 was
down $458,000, or 26.13%, from the same period in the prior year.
* Earnings per share for the six months ended October 31, 2015 were
$0.26 per common share and $0.35 per common share for the same period
in the prior year.
Liquidity and capital resources
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Operating
---------
* Net cash decreased $972,000 during the six months ended October 31,
2015 as compared to a decrease of $361,000 during the corresponding
period last year.
* Accounts receivable decreased $254,000 for the six months ended
October 31, 2015 compared with a $14,000 increase for the same period
last year. The current year decrease is a result of the decline in
sales and is offset with the Company's ability to collect on accounts
receivable in a timely manner.
* Inventories increased during the current and prior six month periods
showing an increase of $563,000 in the current period compared to a
$51,000 increase in the prior period. These increases are attribut-
able to past buying trends, since there had been increases in sales
prior to the most recent quarter, and some vendors' price increases.
* Prepaid expenses saw a $37,000 decrease for the current six months,
primarily due to recording the regular monthly of doing business and
no having to renew any service agreements over the last six months.
Conversely, the prior six months showed a $35,000 decrease in prepaid
expenses.
* There was an increase of $228,000 income tax overpayment for the
period ended October 31, 2015, while there was no overpayment for the
same period the prior year.
* Accounts payable shows increases for both six month periods at $24,000
and $60,000, respectively. The company strives to pay all invoices
within terms, and the variance in increases is primarily due to the
timing of receipt of products and payment of invoices.
* Accrued expenses increased $3,000 for the current six month period as
compared to a $27,000 increase for the six month period ended October
31, 2014.
Investing
---------
* As for our investment activities, the Company spent approximately
$24,000 on acquisitions of property and equipment for the current six
month period, in comparison with the corresponding six months last
year, where there was activity of $111,000. In addition, the company
has accumulated $14,000 towards assets manufactured on site for the
current six month period.
* Additionally, the Company continues to purchase marketable securities,
which include municipal bonds and quality stocks. During the six
month period ended October 31, 2015 there was quite a bit of buy/sell
activity in the investment accounts. Net cash spent on purchases of
marketable securities for the six month period ended October 31, 2015
was $376,000 compared to $377,000 spent in the prior six month period.
We continue to use "money manager" accounts for most stock trans-
actions. By doing this, the Company gives an independent third party
firm, who are experts in this field, permission to buy and sell stocks
at will. The Company pays a quarterly service fee based on the value
of the investments.
Financing
---------
* The Company continues to purchase back common stock when the oppor-
tunity arises. For the six month period ended October 31, 2015, the
Company purchased $4,000 worth of treasury stock, which is the same
amount spent in the corresponding six months period last year.
* The company paid out dividends of $1,553,000 during the six months
ending October 31, 2015. These dividends were paid during the second
quarter. The company declared a dividend of $0.34 per share of common
stock on September 30, 2015 and these dividends were paid by October
31, 2015. As for the prior year numbers, dividends paid was
$1,463,000 for the six months ending October 31, 2014. A dividend of
$0.32 per common share was declared and paid during the second fiscal
quarter last year.
The following is a list of ratios to help analyze George Risk
Industries' performance:
For the quarter ended October 31, 2016, which is a 3.89% increase from the corresponding quarter last year. Year-to-date net sales were $5,549,000 at October 31, 2016, which is a 1.44% decrease from the same period last year. The slight variations in sales shows the stability of the Company and loyalty of its customer base. Our ongoing commitment to outstanding customer service and customization of products are a few of the many reasons sales remained relatively constant. New competition and the inability to bring new products to market in a timelier manner are a few of the reasons why management believes it has not been able to increase sales in a timelier manner. | ● | Cost of goods sold was 44.54% of net sales for the quarter ended October 31, 2016 and was 42.77% for the same quarter last year. Year-to-date cost of goods sold percentages were 48.12% for the current six months and 45.26% for the corresponding six months last year, keeping within the target of less than 50% for both the quarter and year-to-date results. The biggest reason for the slight increases in the current periods is the fact that there were minimum wage increases in our state which increased the cost of our direct labor. | | ● | Operating expenses were up $18,000 for the quarter and $20,000 for the six-months ended October 31, 2016 as compared to the corresponding periods last year. These increased costs are primarily due to new product development and implementation costs and fees for the new computer software. The Company has been able to keep the operating expenses at less than 30% of net sales for many years; however, the effects of the Affordable Care Act, the State of Nebraska regulatory increase in the minimum wage and various other expenditures continue to provide concerns regarding the ability to maintain this pattern. |
| ● | Income from operations for the quarter ended October 31, 2016 was at $854,000 which is a 0.81% decrease from the corresponding quarter last year, which had income from operations of $861,000. Income from operations for the six months ended October 31, 2016 was at $1,416,000, which is a 13.61% decrease from the corresponding six months last year, which had income from operations of $1,639,000. | | ● | Other income and expenses are up when comparing to the current quarter and six-month periods the prior year, with an increase of $159,000 in the current quarter and an increase of $142,00 for the current year-to-date. The majority of activity in these accounts consists of investment interest, dividends, and gain or loss on sale of investments. With the recent uptick in the performance of the stock market, decisions were made to sell holdings and take the realized gain and dividends and interest payments remain solid. | | ● | Overall, net income for the quarter ended October 31, 2016 was up $119,000, or 20.77%, from the same quarter last year. Conversely, net income for the six-month period ended October 31, 2016 was down $36,000, or 2.78%, from the same period in the prior year. | | ● | Earnings per common share for quarter ended October 31, 2016 were $0.14 per share and $0.25 per share for the year-to-date numbers. EPS for the quarter and six months ended October 31, 2015 2014
---------------------------
Working capital
(currentwere $0.11 per share and $0.26 per share, respectively. |
Liquidity and capital resources Operating | ● | Net cash decreased $326,000 during the six months ended October 31, 2016 as compared to a decrease of $972,000 during the corresponding period last year. | | ● | Accounts receivable decreased $53,000 for the six months ended October 31, 2016 compared with a $254,000 increase for the same period last year. The smaller current year decrease is a result of sales remaining steady and the Company’s ongoing ability to continue to collect on accounts receivable in a timely manner. | | ● | Inventories decreased $286,000 during the current six-month period as compared to a $563,000 increase last year, primarily due to the fact that sales have remained steady, which drives the amount that needs to be purchased. This is offset by price increases from various vendors. | | ● | Prepaid expenses saw a $12,000 decrease for the current six months, primarily due to the recording of regular monthly expense transactions (from the purchasing of service agreements and such in advance at intervals of a year and sometimes more) and not having to renew any service agreements over the last six months. The prior six months showed a $37,000 decrease in prepaid expenses. | | ● | There was a slight increase of $2,000 income tax overpayment for the period ended October 31, 2016, while the increase was $228,000 for the same period the prior year. Management usually pays income tax estimates in the same amounts that were actually taxed on for the prior year when we don’t expect a huge fluctuation in income and since net income up to this point is close to the same as last year, the estimates are a close match to the actual expense. |
| ● | Accounts payable shows increases for both six month periods at $97,000 and $24,000, respectively. The company strives to pay all invoices within terms, and the variance in increases is primarily due to the timing of receipt of products and payment of invoices. | | ● | Accrued expenses decreased $16,000 for the current six-month period as compared to a $3,000 increase for the six-month period ended October 31, 2015. |
Investing | ● | As for our investment activities, the Company spent approximately $120,000 on acquisitions of property and equipment for the current six-month period, in comparison to the corresponding six months last year, where there was activity of $27,000. In addition, the company has disbursed $50,000 towards assets -manufactured on site for the current liabilities) $ 32,549,000 $ 32,078,000
Current ratio
(current assets / current liabilities) 16.210 14.495
Quick ratio
((six-month period. | | ● | Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. During the six-month period ended October 31, 2016 there was quite a bit of buy/sell activity in the investment accounts. Net cash + investments + AR) / current liabilities)
14.498 13.495
spent on purchases of marketable securities for the six-month period ended October 31, 2016 was $373,000 compared to $376,000 spent in the prior six-month period. We continue to use “money manager” accounts for most stock transactions. By doing this, the Company gives an independent third party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays a quarterly service fee based on the value of the investments. |
Financing | ● | The Company continues to purchase back common stock when the opportunity arises. For the six-month period ended October 31, 2016, the Company purchased $1,000 worth of treasury stock, in comparison to $4,000 repurchased in the corresponding six-month period last year. | | ● | The company paid out dividends of $1,596,000 during the six months ending October 31, 2016. These dividends were paid during the second quarter. The company declared a dividend of $0.35 per share of common stock on September 30, 2016 and these dividends were paid by October 31, 2016. As for the prior year numbers, dividends paid was $1,553,000 for the six months ending October 31, 2015. A dividend of $0.34 per common share was declared and paid during the second fiscal quarter last year. | | | | | | The following is a list of ratios to help analyze George Risk Industries’ performance: |
| | | For the quarter ended | | | | October 31, 2016 | | October 31, 2015 | Working capital (current assets – current liabilities) | | $ | 33,469,000 | | | $ | 32,549,000 | | Current ratio (current assets / current liabilities) | | | 17.760 | | | | 16.210 | | Quick ratio ((cash + investments + AR) / current liabilities) | | | 16.297 | | | | 14.498 | |
New Product Development
~~~~~~~~~~~~~~~~~~~~~~~
The Company and its'its engineering department continue to develop enhance-
mentsenhancements to product lines, develop new products which complement existing prod-
ucts,products, and look for products that are well suited to our distribution network and manufacturing capabilities. Items currently in the development process include:
* Wireless contact switches, Wi-Fi to enable monitoring of sensors from
a smartphone, pool alarms and environmental sensors are in development
* Slim-line face plate for pool alarms that will also allow homeowner to
change the plate to match their decor
* Triple biased High Security Switch
* Redesign of our Current Controller that will allow us to manufacture
a 15 amp version that would automatically turn on a whole room of
lights and a 220-volt version for international markets. 12 and 24-
volt versions are also being developed in response to many requests to
turn on LED lighting.
* Redesign for the cover of the 29-Series terminal switch
* New float water sensor that will monitor water levels in livestock
tanks and sump pumps
* Fuel level monitor - With fuel theft being a major problem around the
world, we are crafting a monitor to tie into the security system to
alarm if tanks or trucks are tampered with.
| ● | Wireless contact switches, Wi-Fi to enable monitoring of sensors from a smartphone, pool alarms and environmental sensors are in development | | ● | A redesign of our top selling resistor pack. The new design will be more automated which will allow us to produce more in a shorter timeframe. | | ● | Redesign of the connectors in our raceway line has gone through molding and are going through product safety standards testing approval. The original raceway line connectors were not fire rated and high voltage rated compliant. | | ● | Slim-line face plate for pool alarms that will also allow homeowner to change the plate to match their decor | | ● | Triple biased High Security Switch | | ● | Redesign of our Current Controller is complete and now is going through the U.L. approval process. The new design will allow us to manufacture a 15-amp version that would automatically turn on a whole room of lights and a 220-volt version for international markets. 12 and 24-volt versions are also being developed in response to many requests to turn on LED lighting. | | ● | Redesign for the cover of the 29-Series terminal switch | | ● | New float water sensor that will monitor water levels in livestock tanks and sump pumps | | ● | Fuel level monitor – With fuel theft being a major problem around the world, we are crafting a monitor to tie into the security system to alarm if tanks or trucks are tampered with. | | ● | A new version of our 200-36 overhead door switch line up is nearing completion. The modified version, part #200-36UF, is for universal fit that allows an installer to replace an existing competitor’s switch without drilling new holes into the cement or adjusting the location. The modified case has an additional mounting hole along with reshaped mounting holes. | | ● | The smaller size custom power transfer device (PTDC) has been completed. The PTDC series offer a secure way to channel electrical wiring from the door frame to the door and are used for powering exit bars, locks, electric strikes etc. We will offer two different end pieces; 0.218” inside diameter and 0.313” inside diameter which will allow different sizes or wire to be looped through the custom length armored cable. |
Other Information
~~~~~~~~~~~~~~~~~
In addition to researching and developing new products, management is always open to the possibility of acquiring a business or product line that would complement our existing operations. Due to the Company'sCompany’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing tech-
niquestechniques and established customers to deliver new products and increase sales and profits. There are no known seasonal trends with any of GRI'sGRI’s products, since we sell to distributors and OEM manufacturers. Our products are tied to the housing industry and will fluctuate with building trends. Recently Issued Accounting Pronouncements
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The objective of this update is to provide a robust framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance. Amended in August 2015, thisThis update is effective in annual reporting periods beginning after December 15, 2017 and the interim periods within that year. The Company is evaluating the impact of this update on the Company'sCompany’s financial statements. In January 2015, the FASB issued Accounting Standards Update No. 2015-04, "Requirement“Requirement that All Deferred Income Tax Assets and Liabilities Be Presented as Non-Current in a Classified Balance Sheet"Sheet”. The objective of this update is to require deferred tax liabilities and assets be classified entirely as non-current in a classified balance sheet. This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year. The Company is evaluating the impact of this update on the Company'sCompany’s financial statements. In February of 2016, the FASB issued ASU 2016-02Leases. Under the new guidance, lessees will be required to recognize so-called right-of-use assets and liabilities for most leases having lease terms of 12 months or more. This update is effective in annual reporting periods beginning after December 31, 2019 and the interim periods starting thereafter. The Company is evaluating the impact of this update on the Company’s financial statements. GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 3. Quantitative and Qualitative Disclosures about Market Risk Not applicable Item 4. Controls and Procedures
(a) Information required by Item 307
Our Chief Executive Officermanagement, under the supervision and with the participation of our chief executive officer (also working as our Chief Financial Officer)chief financial officer), after evaluatingevaluated the effectiveness of the Company's "disclosuredesign and operation of our disclosure controls and procedures"procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of October 31, 2016. Based on that evaluation, our chief executive officer (also working as our chief financial officer) concluded that the disclosure controls and procedures employed at the Company were not effective to provide reasonable assurance that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 (Exchange Act)
Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this
quarterly report, has concluded that our disclosure controls and procedures
are effective based on their evaluation of these controls and procedures re-
quired by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15.
(b) Information required by Item 308
This disclosure is not yet required.
Item 4A. Controls and Procedures
Quarterly Evaluation of disclosure controls and procedures:
-----------------------------------------------------------
As of the end of the period covered by the Quarterly Report on Form 10-Q,
management performed, with the participation of our Chief Executive Officer
(who also serves as our Chief Financial Officer), an evaluation of the
effectiveness of our disclosure controls and procedures as defined in Rules
13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 ("Exchange
Act"). Our disclosure controls and procedures are designed to ensure that
information required to be disclosed in the reports we file or submit under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Exchange Act and SEC'sSEC rules and that such
information is accumulated and communicatedforms. We continue to our management, including our
Chief Executive, to allow timely decisions regarding required disclosures.
There are inherent limitations to the effectivenessoperate with a limited number of any system of dis-
closure controls and procedures, including the possibility of human error and
the circumvention or overriding of the controls and procedures. Accordingly,
even effective disclosure controls and procedures can only provide reasonable
assurance of achieving their control objectives. Our Chief Executive Officer
concluded that, as of October 31, 2015, our disclosure controls and pro-
cedures were not effective.
Changes in internal controls over financial reporting:
------------------------------------------------------
The Company's management is responsible for establishing and maintaining
adequate internal controls over financial reporting for the Company. Due to
limited resources, Management conducted an evaluation of internal controls
based on criteria established in Internal Control - Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Com-
mission ("COSO"). The results of this evaluation determined that our in-
ternal control over financial reporting was ineffective as of October 31,
2015, due to a material weakness. A material weakness in internal control
over financial reporting is defined as a deficiency, or a combination of
deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of the Company's
annual or interim financial statements will not be prevented or detected on a
timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control over financial reporting that is less
severe than a material weakness, yet important enough to merit attention by
those responsible for oversight of our financial reporting.
Management's assessment identified the following material weakness in inter-
nal control over financial reporting:
* The small size of our Company limits our ability to achieve the
desired level of separation of internal controlsaccounting and financial re-
porting, particularly as it relates to financial reporting and de-
ferred taxes. Due topersonnel. Although we added the departureservices of the Controller, the current CEO
and CFO roles are being fulfilled by the same individual. We do not
have an audit committee. Until such time as the Company is able to
hire a Controller, we do not believe we meet the full requirement for
separation for financial reporting purposes.
As a result of the material weakness in internal control over financial re-
porting described above, the Company's management has concluded that, as of
October 31, 2015, the Company's internal control over financial reporting was
not effective based on the criteria in Internal Control - Integrated Frame-
work issued by the COSO.
To date, the Company has hired a person to fill the controller position, butduring 2014, more training will be required to fulfill disclosure control and procedure responsibilities.responsibilities, including review procedures for key accounting schedules and timely and proper documentation of material transactions and agreements. We will continue to followbelieve these control deficiencies represent material weaknesses in internal control over financial reporting. Despite the standardsmaterial weaknesses in financial reporting noted above, we believe that our consolidated financial statements included in this report fairly present our financial position, results of operations and cash flows as of and for the Public
Company Accounting Oversight Board (United States) forperiods presented in all material respects. We are committed to the establishment of effective internal controls over financial reporting and will place emphasis on quarterly and year-end closing procedures, timely documentation and internal review of accounting and financial reporting consequences of material contracts and agreements, and enhanced review of all schedules and account analyses by experienced accounting department personnel or independent consultants. Changes in Internal Control Over Financial Reporting There was no change in our internal control over financial reporting during the fiscal quarter ended October 31, 2016 that has materially affected, or is reasonably likely to include procedures that:
* Pertain to the maintenance of records in reasonable detail accurately
that fairly reflect the transactions and dispositions of the Company's
assets;
* Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of the financial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures are being made only in accordance with
authorizations of management and the Board of Directors; and
* Provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or disposition of the Company's
assets that could have a material effect on the financial statements.
This quarterly report does not include an attestation report of the Corpor-
ation's registered public accounting firm regardingmaterially affect, our internal control over financial reporting. Management's report was not subject to attestation by
the Corporation's registered public accounting firm pursuant to Section
404(c) of the Sarbanes-Oxley Act of 2002, as amended, that permits the Cor-
poration to provide only the management's report in this quarterly report.
GEORGE RISK INDUSTRIES, INC. Part II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable Item 1A. Risk Factors Not applicable. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The following table provides information relating to the Company'sCompany’s repurchase of common stock for the second quarter of fiscal year 2016.
2017. | Period | | | Number of shares repurchased
-------------------------------------- ----------------------------
| | August 1, 2015 -2016 – August 31, 2015 200
2016 | | | | -0- | | September 1, 2015 -2016 – September 30, 2015 100
2016 | | | | -0- | | October 1, 2015 -2016 – October 31, 2015 -
2016 | | | | -0- | |
Item 3. Defaults upon Senior Securities Not applicable Item 4. (Removed and Reserved)
Mine Safety Disclosures Not applicable Item 5. Other Information Not applicable Item 6. Exhibits and Reports on Form 8-K
Exhibit No. Description
----------- -----------
31.1 Certification of the Chief Executive Officer (Principal
and Accounting Officer), as required by Section 302 of
the Sarbanes-Oxley Act of 2002.
32.1 Certification of the Chief Executive Officer (Principal
and Accounting Officer), as required by Section 906 of
the Sarbanes-Oxley Act of 2002.
| Exhibit No. | | Description | | | | | | 31.1 | | Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002. | | | | | | 32.1 | | Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 906 of the Sarbanes-Oxley Act of 2002. |
SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
George Risk Industries, Inc.
(Registrant)
Date: December 14, 2015 By: /s/ Stephanie M. Risk-McElroy
Stephanie M. Risk-McElroy
President, Chief Executive Officer, Chief
Financial Officer and Chairman of the Board
| George Risk Industries, Inc. | | (Registrant) | | | | | Date December 15, 2016 | By: | /s/ Stephanie M. Risk-McElroy | | | Stephanie M. Risk-McElroy | | | President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board |
|