UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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

Amendment No. 2

��

(Mark One)

~~[X]~~

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

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

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

~~[ ]~~

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

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

For the transition period from ______________ to ________________

Commission File Number: 000-05378

GEORGE RISK INDUSTRIES, INC.

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

Colorado		84-0524756
(State or other jurisdiction of ~~incorporation)~~ incorporation or organization)		(~~IRS~~I.R.S. Employers Identification No.)

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

(308) 235-4645

(Registrant’s telephone number, including area code)

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

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

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

~~Yes [X]~~

~~No [ ]~~

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

~~Yes [ ]~~

~~No [X]~~

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

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

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

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

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of the Registrant’s Common Stock outstanding, as of ~~March 16, 2018,~~December 20, 2019 was ~~4,968,447.~~

~~Transitional Small Business Disclosure Format:Yes [X] No [ ]~~4,950,760.

EXPLANATORY NOTE

This Amendment No. 2 to Form 10-Q (“Amendment”), amends the Quarterly Report on Form 10-Q for the three-and six months periods ended October 31, 2019 that we originally filed with the Securities and Exchange Commission, or the Commission, on December 20, 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 October 31, 2019 and for the three-and six months periods ended October 31, 2018 and 2019, as set forth in the Original Filing in connection with our failure to give effect to the implementation of ASU 2016-01 in the 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 October 31, 2019 and for the three-and six months periods ended October 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 (“Amendment”), does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Form 10-Q.

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

Items Amended in this Filing

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

Part I, Item 1. Financial Statements

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

Part I, Item 4. Controls and Procedures

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

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

					October 31, 2019		April 30, 2019
	January 31, 2018		April 30, 2017		(unaudited)
	(unaudited)					(Restated)		(Restated)
ASSETS

Current Assets:
Cash and cash equivalents	$	3,952,000	$	6,456,000	$	5,212,000	$	4,873,000
Investments and securities		27,496,000		26,382,000		27,385,000		27,291,000
Accounts receivable:
Trade, net of $16,422 and $2,425 doubtful account allowance		2,471,000		1,848,000
Trade, net of $4,082 and $9,321 doubtful account allowance						2,217,000		2,696,000
Other		2,000		3,000		1,000		6,000
Income tax overpayment		474,000		253,000		145,000		259,000
Inventories, net		3,594,000		2,304,000		5,163,000		4,583,000
Prepaid expenses		487,000		193,000		111,000		282,000
Total Current Assets	$	38,476,000	$	37,439,000		40,234,000		39,990,000

Property and Equipment, net, at cost		948,000		739,000		1,041,000		984,000

Other Assets
Investment in Limited Land Partnership, at cost		273,000		273,000		320,000		293,000
Projects in process		—		13,000		17,000		117,000
Other		77,000		—		3,000		3,000
Total Other Assets	$	350,000	$	286,000		340,000		413,000

Intangible Assets, net	$	1,794,000		—		1,578,000		1,640,000

TOTAL ASSETS	$	41,568,000	$	38,464,000	$	43,193,000	$	43,027,000

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

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

~~(continued)~~

							October 31, 2019			April 30, 2019
							(unaudited)
	January 31, 2018			April 30, 2017			(Restated)			(Restated)
	(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities
Accounts payable, trade	$	308,000		$	69,000		$	170,000		$	206,000
Dividends payable		1,580,000			1,416,000			1,892,000			1,714,000
Accrued expenses:
Payroll and related expenses		178,000			308,000
Property taxes		3,000			—
Payroll and other expenses								367,000			356,000
Total Current Liabilities	$	2,069,000		$	1,793,000			2,429,000			2,276,000

Long-Term Liabilities
Deferred income taxes		1,902,000			906,000			1,278,000			1,198,000
Total Long-Term Liabilities	$	1,902,000		$	906,000			1,278,000			1,198,000

Total Liabilities								3,707,000			3,474,000

Commitments and Contingencies								—			—

Stockholders’ Equity
Convertible preferred stock, 1,000,000 shares authorized, Series 1—noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding		99,000			99,000			99,000			99,000
Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding		850,000			850,000			850,000			850,000
Additional paid-in capital		1,934,000			1,736,000			1,934,000			1,934,000
Accumulated other comprehensive income		2,623,000			1,239,000			50,000			14,000
Retained earnings		36,232,000			35,981,000			40,834,000			40,883,000
Less: treasury stock, 3,533,934 and 3,557,606 shares, at cost		(4,141,000	)		(4,140,000	)
Less: treasury stock, 3,550,771 and 3,544,271 shares, at cost								(4,281,000	)		(4,227,000	)
Total Stockholders’ Equity	$	37,597,000		$	35,765,000			39,486,000			39,553,000

TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY	$	41,568,000		$	38,464,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							$	43,193,000		$	43,027,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

	Three months			Nine months			Three months			Nine months
	ended			ended			ended			ended			Three months ended Oct 31, 2019			Six months ended Oct 31, 2019			Three months ended Oct 31, 2018			Six months ended Oct 31, 2018
	Jan 31, 2018			Jan 31, 2018			Jan 31, 2017			Jan 31, 2017			(Restated)			(Restated)			(Restated)			(Restated)
Net Sales	$	3,260,000		$	8,597,000		$	2,645,000		$	8,194,000		$	3,710,000		$	7,263,000		$	3,667,000		$	7,096,000
Less: Cost of Goods Sold		(1,826,000	)		(4,337,000	)		(1,229,000	)		(3,899,000	)		(1,860,000	)		(3,630,000	)		(1,893,000	)		(3,695,000	)
Gross Profit	$	1,434,000		$	4,260,000		$	1,416,000		$	4,295,000			1,850,000			3,633,000			1,774,000			3,401,000

Operating Expenses
General and Administrative		313,000			833,000			223,000			664,000			329,000			626,000			331,000			616,000
Sales		512,000			1,371,000			461,000			1,432,000			555,000			1,112,000			525,000			1,080,000
Engineering		22,000			69,000			17,000			59,000			17,000			32,000			28,000			37,000
Rent Paid to Related Parties		5,000			14,000			5,000			14,000			3,000			8,000			4,000			9,000
Total Operating Expenses	$	852,000		$	2,287,000		$	706,000		$	2,169,000			904,000			1,778,000			888,000			1,742,000

Income From Operations		582,000			1,973,000			710,000			2,126,000			946,000			1,855,000			886,000			1,659,000

Other Income (Expense)
Other		—			3,000			1,000			11,000			1,000			2,000			6,000			8,000
Dividend and Interest Income		376,000			811,000			332,000			650,000			166,000			359,000			152,000			345,000
Unrealized Gain (Loss) on Equity Securities														129,000			274,000			(1,197,000	)		(765,000	)
Gain (Loss) on Investments		123,000			94,000			51,000			136,000			10,000			59,000			(27,000	)		(94,000	)
Gain (Loss) on Sale of Assets		—			4,000			—			—
	$	499,000		$	912,000		$	384,000		$	797,000
Total Other Income (Loss)														306,000			694,000			(1,066,000	)		(506,000	)

Income Before Provisions for Income Taxes		1,081,000			2,885,000			1,094,000			2,923,000			1,252,000			2,549,000			(180,000	)		1,153,000

Provisions for Income Taxes:
Current Expense		281,000			852,000			313,000			896,000			258,000			552,000			261,000			508,000
Deferred Tax Expense (Benefit)		9,000			1,000			(11,000	)		(24,000	)		37,000			65,000			(357,000	)		(197,000	)
Total Income Tax Expense	$	290,000		$	853,000		$	302,000		$	872,000
Total Income Tax Expense (Benefit)														295,000			617,000			(96,000	)		311,000

Net Income	$	791,000		$	2,032,000		$	792,000		$	2,051,000
Net Income (Loss)													$	957,000		$	1,932,000		$	(84,000	)	$	842,000

Cash Dividends
Common Stock ($0.36 per share)	$	—		$	1,780,000
Common Stock ($0.35 per share)							$	—		$	1,758,000

Income Per Share of Common Stock
Income (Loss) Per Share of Common Stock
Basic	$	0.16		$	0.41		$	0.16		$	0.41		$	0.19		$	0.39		$	(0.02	)	$	0.17
Diluted	$	0.16		$	0.41		$	0.16		$	0.41		$	0.19		$	0.39		$	(0.02	)	$	0.17

Weighted Average Number of Common
Shares Outstanding
Weighted Average Number of Common Shares Outstanding
Basic		4,969,013			4,955,725			4,945,972			4,996,453			4,952,110			4,954,250			4,962,177			4,964,879
Diluted		4,989,513			4,976,225			4,966,472			5,016,953			4,972,610			4,974,750			4,982,677			4,985,379

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED ~~STATEMENT~~STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

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

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

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

	Three months ended Oct 31, 2019		Six months ended Oct 31, 2019			Three months ended Oct 31, 2018			Six months ended Oct 31, 2018
	(Restated)		(Restated)			(Restated)			(Restated)
Net Income (Loss)	$	957,000	$	1,932,000		$	(84,000	)	$	842,000

Other Comprehensive Income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period		1,000		50,000			(55,000	)		165,000
Income tax benefit (expense) related to other comprehensive income		—		(14,000	)		15,000			(48,000	)
Other Comprehensive Income (Loss)		1,000		36,000			(40,000	)		117,000

Comprehensive Income (Loss)	$	958,000	$	1,968,000		$	(124,000	)	$	959,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

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

FOR THE THREE MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

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

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

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

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

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

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

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

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

Purchases of common stock		—		—		—		—

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

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

Net Income		—		—		—		—

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

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, July 31, 2018 (Restated)		4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—

Dividend declared at $0.38 per common share outstanding

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

Net Income		—		—		—		—

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

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

	—		200		(1,000	)		—		—			(1,000	)

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

	—		—		—			1,000		—			1,000

	—		—		—			—		957,000			957,000

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

		Treasury Stock (Common Class A)					Accumulated Other Comprehensive			Retained
Paid-In Capital		Shares		Amount			Income			Earnings			Total

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

	—		5,800		(49,000	)		—			—			(49,000	)

	—		—		—			—			(1,885,000	)		(1,885,000	)

	—		—		—			(40,000	)		—			(40,000	)

	—		—		—			—			(83,000	)		(83,000	)

$	1,934,000		3,541,234	$	(4,202,000	)	$	(58,000	)	$	38,127,000		$	36,750,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

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

Purchases of common stock		—		—		—		—

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

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

Net Income		—		—		—		—

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

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

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

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

Purchases of common stock		—		—		—		—

Dividend declared at $0.38 per common share outstanding		—		—		—		—

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

Net Income		—		—		—		—

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

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

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

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

	—		—		—			36,000		—			36,000

	—		—		—			—		1,932,000			1,932,000

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

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

								(2,424,000	)		2,424,000

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

	—		6,450		(54,000	)		—			—			(54,000	)

	—		—		—			—			(1,885,000	)		(1,885,000	)

	—		—		—			117,000			—			117,000

	—		—		—			—			842,000			842,000

$	1,934,000		3,541,234	$	(4,202,000	)	$	(58,000	)	$	38,127,000		$	36,750,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTSOF CASH FLOWS

FOR THE SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018

(Unaudited)

	Oct 31, 2019			Oct 31, 2018
	(Restated)			(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	1,932,000		$	842,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		183,000			167,000
(Gain) loss on sale of investments		(100,000	)		62,000
Impairments on investments		41,000			32,000
Unrealized (gain) loss on equity securities		(274,000	)		765,000
Reserve for bad debts		(6,000	)		6,000
Reserve for obsolete inventory		2,000			19,000
Deferred income taxes		65,000			(197,000	)
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		486,000			23,000
Inventories		(583,000	)		(435,000	)
Prepaid expenses and projects in process		271,000			168,000
Other receivables		5,000			(2,000	)
Income tax over payment		114,000			(97,000	)
Increase (decrease) in:
Accounts payable		(36,000	)		(189,000	)
Accrued expenses		11,000			8,000
Net cash provided by operating activities		2,111,000			1,172,000

CASH FLOWS FROM INVESTING ACTIVITIES:
(Purchase) of property and equipment		(179,000	)		—
Proceeds from sale of marketable securities		540,000			754,000
(Purchase) of marketable securities		(250,000	)		(324,000	)
(Purchase) of long-term investment		(27,000	)		—
Net cash provided by investing activities		84,000			430,000
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock		(54,000	)		(54,000	)
Dividends paid		(1,802,000	)		(1,752,000	)
Net cash (used in) financing activities		(1,856,000	)		(1,806,000	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		339,000			(204,000	)

Cash and Cash Equivalents, beginning of period		4,873,000			4,294,000
Cash and Cash Equivalents, end of period	$	5,212,000		$	4,090,000

Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes	$	605,000		$	600,000
Interest paid	$	—		$	1,000

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

NOTES TO RESTATED UNAUDITED CONDENSED FINANCIAL STATEMENTS

~~JANUARY~~OCTOBER 31, ~~2018~~2019

Note 1:1 Unaudited Interim Financial Statements

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

Accounting Estimates—The preparation of these financial statements requires the use of estimates and assumptions including the carrying value of assets. The estimates and assumptions result in approximate rather than exact amounts.

Recently Issued Accounting Pronouncements —In ~~May 2014,~~February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting ~~Standards Update~~for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. ~~2014-09, Revenue~~2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from ~~Contracts with Customers. The objective~~the associated lease component if certain conditions are met. During the first quarter of ~~this update is~~2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a ~~robust framework for addressing revenue recognition issues~~company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal year 2020 and ~~upon its effective date, replaces almost all existing revenue recognition guidance. This update~~the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material impact on the Company’s financial statements and related disclosures because leases are not material to the financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. 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 2016-13(“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, ~~2017 and the~~2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that ~~year.~~are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company ~~is evaluating~~will continue to evaluate the ~~impact~~effect of ~~this update~~adopting ASU 2016-13 will have on the Company’s financial ~~statements.~~statements and disclosures.

~~In February of 2016, the FASB issued ASU 2016-02~~~~Leases~~. 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.

In February of 2018, the FASB issued ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under this update, companies have the option to reclassify stranded tax effects caused by US Tax Cuts and Jobs Act (TCJA) from accumulated other comprehensive income (AOCI) to retained earnings. Under current US GAAP, effects from a change in tax law is recorded as a component of the income tax provision related to continuing operations in the period of enactment, even if the deferred taxes were established for a financial statement component not part of continuing operations, such as accumulated other comprehensive income (AOCI). Adopting of this standard will remove tax effects stranded in AOCI by the tax law enactment. Adoption of this ASU is optional. This update is effective in annual reporting periods beginning after December 15, 2018 and the interim periods starting thereafter. The Company is evaluating the impact of this update on the Company’s financial statements.

Note 2:2 Investments (Restated)

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets ~~funds. The investments in securities~~and they are ~~classified as available-for-sale securities and are reported~~recorded at fair value. ~~Available-for-sale~~The investments in debt securities ~~mature~~have maturities between ~~June 2018~~November 2019 and ~~November 2048.~~September 2042. The Company uses the average cost method to determine the cost of securities sold ~~and the amount reclassified out of accumulated other comprehensive income into~~with any unrealized gains or losses reported in each respective period’s earnings. ~~Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity.~~ Dividend and interest income are reported as earned.

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

			Gross		Gross							Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair		Cost		Unrealized		Unrealized			Fair
January 31, 2018	Basis		Gains		Losses			Value
October 31, 2019										Basis		Gains		Losses			Value
Municipal bonds	$	5,966,000	$	103,000	$	(238,000	)	$	5,831,000	$	5,362,000		122,000		(47,000	)		5,437,000
Corporate bonds	$	129,000	$	2,000	$	—		$	131,000		26,000		—		—			26,000
REITs	$	110,000	$	5,000	$	(6,000	)	$	109,000		89,000		2,000		(8,000	)		83,000
Equity securities	$	15,720,000	$	4,844,000	$	(203,000	)	$	20,361,000		16,943,000		4,375,000		(254,000	)		21,064,000
Money markets and CDs	$	1,064,000	$	—	$	—		$	1,064,000		774,000		1,000		—			775,000
Total	$	22,989,000	$	4,954,000	$	(447,000	)	$	27,496,000	$	23,194,000	$	4,500,000	$	(309,000	)	$	27,385,000

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

Marketable securities that are equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the Statements of Operations in the period of the change; and debt securities are carried at fair value on the balance sheets 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~~other-than-temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management ~~did not record~~recorded an impairment loss ~~during~~of $7,000 for the quarter, ~~but did record~~and recorded a loss of ~~$23,000~~$41,000 for the ~~nine~~six months ended ~~January~~October 31, ~~2018. Likewise,~~2019. As for the corresponding periods last year, management ~~did not record a~~recorded an impairment loss of $32,000 for both the quarter ~~but did record a $13,000 impairment loss for the nine months~~and six-months ended ~~January~~October 31, ~~2017.~~2018.

The following ~~tables show~~table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at ~~January~~October 31, ~~2018~~2019 and April 30, ~~2017,~~2019, respectively.

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

	Less than 12 months					12 months or greater					Total					Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	702,000	$	(152,000	)	$	1,674,000	$	(86,000	)	$	2,376,000	$	(238,000	)	$	—	$	—		$	512,000	$	(47,000	)	$	512,000	$	(47,000	)
REITs	$	56,000	$	(5,000	)	$	27,000	$	(1,000	)	$	83,000	$	(6,000	)		—		—			59,000		(8,000	)		59,000		(8,000	)
Equity securities	$	534,000	$	(35,000	)	$	590,000	$	(168,000	)	$	1,124,000	$	(203,000	)		1,214,000		(66,000	)		1,819,000		(188,000	)		3,033,000		(254,000	)
Total	$	1,292,000	$	(192,000	)	$	2,291,000	$	(255,000	)	$	3,583,000	$	(447,000	)	$	1,214,000	$	(66,000	)	$	2,390,000	$	(243,000	)	$	3,604,000	$	(309,000	)

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

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

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at ~~January~~October 31, ~~2018.~~2019.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at ~~January~~October 31, ~~2018~~2019.

Note 3:3 Inventories

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

	January 31,			April 30,
	2018			2017			October 31, 2019			April 30, 2019

Raw materials	$	2,704,000		$	1,579,000		$	4,131,000		$	3,644,000
Work in process		348,000			442,000			458,000			389,000
Finished goods		615,000			356,000			667,000			641,000
		3,667,000			2,377,000			5,256,000			4,674,000
Less: allowance for obsolete inventory		(73,000	)		(73,000	)		(93,000	)		(91,000	)
Totals	$	3,594,000		$	2,304,000
Inventories, net							$	5,163,000		$	4,583,000

~~Note 4:Asset Purchase~~

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

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

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

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

Note 5:4 Business Segments

The following is financial information relating to industry segments:

	Three months			Six months		Three months		Six months
	ended			ended		ended		ended
	Oct 31, 2019			Oct 31, 2019		Oct 31, 2018		Oct 31, 2018
Net revenue:
Security alarm products	$	2,985,000		$	5,852,000	$	2,852,000	$	5,371,000
Cable & wiring tools		571,000			1,071,000		649,000		1,351,000
Other products		154,000			340,000		166,000		374,000
Total net revenue	$	3,710,000		$	7,263,000	$	3,667,000	$	7,096,000

Income from operations:
Security alarm products	$	762,000		$	1,495,000	$	689,000	$	1,291,000
Cable & wiring tools		140,000			273,000		157,000		293,000
Other products		44,000			87,000		40,000		75,000
Total income from operations	$	946,000		$	1,855,000	$	886,000	$	1,659,000

Depreciation and amortization:
Security alarm products	$	71,000		$	94,000	$	10,000	$	20,000
Cable & wiring tools		31,000			62,000		31,000		62,000
Other products		(4,000	)		16,000		28,000		55,000
Corporate general		(4,000	)		11,000		15,000		30,000
Total depreciation and amortization	$	94,000		$	183,000	$	84,000	$	167,000

Capital expenditures:
Security alarm products	$	10,000		$	179,000	$	—	$	—
Cable & wiring tools		—			—		—		—
Other products		—			—		—		—
Corporate general		—			—		—		—
Total capital expenditures	$	10,000		$	179,000	$	—	$	—

	Three months		Nine months		Three months		Nine months		October 31, 2019		April 30, 2019
	ended		ended		ended		ended
	Jan 31, 2018		Jan 31, 2018		Jan 31, 2017		Jan 31, 2017
Net revenue:
Identifiable assets:
Security alarm products	$	2,715,000	$	6,683,000	$	2,214,000	$	6,955,000	$	6,351,000	$	6,179,000
Other products		545,000		1,914,000		431,000		1,239,000
Total net revenue	$	3,260,000	$	8,597,000	$	2,645,000	$	8,194,000

Income from operations:
Security alarm products		452,000		1,534,000		603,000		1,805,000
Other products		130,000		439,000		107,000		321,000
Total income from operations	$	582,000	$	1,973,000	$	710,000	$	2,126,000

Depreciation and amortization:
Security alarm products		10,000		28,000		7,000		29,000
Cable & wiring tools										2,666,000		2,713,000
Other products		52,000		94,000		27,000		80,000		835,000		842,000
Corporate general		15,000		41,000		13,000		29,000		33,341,000		33,293,000
Total depreciation and amortization	$	77,000	$	163,000	$	47,000	$	138,000

Capital expenditures:
Security alarm products		—		260,000		—		—
Other products		—		—		16,000		130,000
Corporate general		16,000		81,000		10,000		16,000
Total capital expenditures	$	16,000	$	341,000	$	26,000	$	146,000
Total assets									$	43,193,000	$	43,027,000

January 31, 2018 April 30, 2017
Identifiable assets:
Security alarm products 4,424,000 3,180,000
Other products 2,371,000 1,517,000
Corporate general 34,773,000 33,767,000
Total assets $ 41,568,000 $ 38,464,000

Note 6:5 Earnings per Share (Restated)

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

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

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

	For the Three Months Ended October 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	864,000	$	93,000	$	957,000

Denominator
Weighted average common shares outstanding, basic		4,952,110		—		4,952,110
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,972,610		—		4,972,610
Net Income per share - Basic	$	0.17	$	0.02	$	0.19
Income per shares - Diluted	$	0.17	$	0.02	$	0.19

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

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

	For the Six Months Ended October 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	1,729,000	$	203,000	$	1,932,000

Denominator
Weighted average common shares outstanding, basic		4,954,250		—		4,964,250
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,974,750		—		4,974,750
Net Income per share - Basic	$	0.35	$	0.04	$	0.39
Income per shares - Diluted	$	0.35	$	0.04	$	0.39

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

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

	For the Three Months Ended October 31,
	Originally Filed 2018		Adjustment 2018			Restated 2018
Numerator
Net income	$	768,000	$	(852,000	)	$	(84,000	)

Denominator
Weighted average common shares outstanding, basic		4,962,177		—			4,962,177
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,982,677		—			4,982,677
Net Income per share - Basic	$	0.15	$	(0.17	)	$	(0.02	)
Income per shares - Diluted	$	0.15	$	(0.17	)	$	(0.02	)

	For the Six Months Ended October 31,
	Originally Filed 2018		Adjustment 2018			Restated 2018
Numerator
Net income	$	1,386,000	$	(544,000	)	$	842,000

Denominator
Weighted average common shares outstanding, basic		4,964,879		—			4,964,879
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,985,379		—			4,985,379
Net Income per share - Basic	$	0.28	$	(0.11	)	$	0.17
Income per shares - Diluted	$	0.28	$	(0.11	)	$	0.17

Note 7:6 Retirement Benefit Plan

On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately ~~$2,000~~$7,000 and $3,000 were paid during ~~both the quarters~~each quarter ending ~~January~~October 31, ~~2018~~2019 and ~~2017,~~2018, respectively. Likewise, the Company paid matching contributions of approximately ~~$8,000~~$9,000 and $5,000 during ~~the nine-month~~each six-month period ending ~~January~~October 31, 2019 and 2018, ~~and $7,000 during the corresponding period the prior fiscal year.~~respectively.

Note 8:7 Fair Value Measurements

Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below:

	Level 1	Valuation is based upon quoted prices for identical instruments traded in active markets.

	Level 2	Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

	Level 3	Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Investments and Marketable Securities

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

Fair Value Hierarchy

The following ~~tables set~~table sets forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

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

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

Assets Measured at Fair Value on a Recurring Basis as of
April 30, 2017

Level 1 Level 2 Level 3 Total
Assets:
Municipal Bonds $ — $ 6,038,000 $ — $ 6,038,000
Corporate Bonds $ 130,000 $ — $ — $ 130,000
REITs $ — $ 76,000 $ — $ 76,000
Equity Securities $ 17,381,000 $ — $ — $ 17,381,000
Money Markets and CDs $ 2,757,000 $ — $ — $ 2,757,000
Total fair value of assets measured on a recurring basis $ 20,268,000 $ 6,114,000 $ — $ 26,382,000

	Assets Measured at Fair Value on a Recurring Basis as of October 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,437,000	$	—	$	5,437,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		83,000		—		83,000
Equity Securities		21,064,000		—		—		21,064,000
Money Markets and CDs		775,000		—		—		775,000
Total fair value of assets measured on a recurring basis	$	21,865,000	$	5,520,000	$	—	$	27,385,000

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

Note 9:8 Subsequent Events

~~None~~In an update to related party transactions, the Company finalized the purchase of the building that it had previously leased from Bonita Risk on November 22, 2019. Bonita Risk is a director and an employee of the Company and is the majority holder of George Risk Industries, Inc. stock. This building contains the Company’s sales and accounting departments, maintenance department, engineering department and some production facilities. Prior to the purchase, the lease required a minimum payment of $1,535 on a month-to-month basis. The purchase price of the building was $200,000, which was approximately the assessed value of the building at the time of purchase.

Note 9 Correction of Previously Issued Financial Statements

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three-and six months periods ended October 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 unrealized gains on marketable securities representing the value change in the equities for the three-and six months periods ended October 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 three and six month periods ending October 31, 2019 and 2018:

	As of October 31, 2019
	Original		Adjustment			As Restated
Balance Sheet
Deferred Income Taxes	$	1,286,000	$	(8,000	)	$	1,278,000
Total Liabilities	$	3,715,000	$	(8,000	)	$	3,707,000

Accumulated other comprehensive income		2,983,000		(2,933,000	)		50,000
Retained Earnings		37,893,000		2,941,000			40,834,000
Total stockholder’s Equity	$	39,478,000	$	8,000		$	39,486,000

Total liabilities and stockholder’s Equity	$	43,193,000	$	—		$	43,193,000

	As of October 31, 2018
	Original		Adjustment			As Restated

Balance Sheet
Accumulated other comprehensive income	$	1,821,000	$	(1,879,000	)	$	(58,000	)
Retained Earnings		36,246,000		1,881,000			38,127,000

Total Stockholder’s Equity	$	36,748,000	$	2,000		$	36,750,000

	For the Three Months Ended October 31, 2019
	Original		Adjustment		As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	129,000	$	129,000
Total Other Income (Expense)		177,000		129,000		306,000

Income Before Provisions for Income Taxes		1,123,000		129,000		1,252,000

Provisions for Income Taxes
Deferred tax expense (benefit)		1,000		36,000		37,000
Total Income Tax Expense		259,000		36,000		295,000

Net Income	$	864,000	$	93,000	$	957,000

Earnings Per Share of Common Stock	$	0.17	$	0.02	$	0.19
Basic	$	0.17	$	0.02	$	0.19
Diluted

	For the Six Months Ended October 31, 2019
	Original			Adjustment		As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—		$	274,000	$	274,000
Total Other Income (Expense)	$	420,000		$	274,000	$	694,000

Income Before Provisions for Income Taxes		2,275,000			274,000		2,549,000

Deferred tax expense (benefit)		(6,000	)		71,000		65,000
Total Income Tax Expense		546,000			71,000		617,000

Net Income	$	1,729,000		$	203,000	$	1,932,000

Earnings Per Share of Common Stock	$	0.35		$	0.04	$	0.39
Basic	$	0.35		$	0.04	$	0.39
Diluted

	For the Three Months Ended October 31, 2018
	Original			Adjustment			As Restated
Income Statement

Unrealized Gain (Loss) on Equity Securities	$	—		$	(1,197,000	)	$	(1,197,000	)
Total Other Income (Expense)	$	131,000		$	(1,197,000	)	$	(1,066,000	)

Income Before Provisions for Income Taxes		1,017,000			(1,197,000	)		(180,000	)

Deferred tax expense (benefit)		(12,000	)		(345,000	)		(357,000	)
Total Income Tax Expense		249,000			(345,000	)		(96,000	)

Net Income	$	768,000		$	(852,000	)	$	(84,000	)

Earnings Per Share of Common Stock	$	0.15		$	(0.17	)	$	(0.02	)
Basic	$	0.15		$	(0.17	)	$	(0.02	)
Diluted

	For the Six Months Ended October 31, 2018
	Original		Adjustment			As Restated
Income Statement

Unrealized Gain (Loss) on Equity Securities	$	—	$	(765,000	)	$	(765,000	)
Total Other Income (Expense)	$	259,000	$	(765,000	)	$	(506,000	)

Income Before Provisions for Income Taxes		1,918,000		(765,000	)		1,153,000

Deferred tax expense (benefit)		24,000		(221,000	)		(197,000	)
Total Income Tax Expense		532,000		(221,000	)		311,000

Net Income	$	1,386,000	$	(544,000	)	$	842,000

Earnings Per Share of Common Stock	$	0.28	$	(0.11	)	$	0.17
Basic	$	0.28	$	(0.11	)	$	0.17
Diluted

	For the Three Months Ended October 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	864,000		$	93,000		$	957,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains (losses) arising during period		241,000			(240,000	)		1,000
Less: reclassification adjustment for (gains) losses included in net income		(111,000	)		111,000			—
Income tax expense (benefit) related to other comprehensive income		(37,000	)		37,000			—
Other Comprehensive Income (Loss)	$	93,000		$	(92,000	)	$	1,000

Comprehensive Income	$	957,000		$	1,000		$	958,000

	For the Six Months Ended October 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	1,729,000		$	203,000		$	1,932,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains arising during period		565,000			(515,000	)		50,000
Less: reclassification adjustment for (gains) losses included in net income		(240,000	)		240,000			—
Income tax expense related to other comprehensive income		(94,000	)		80,000			(14,000	)
Other Comprehensive Income (Loss)	$	231,000		$	(195,000	)	$	36,000

Comprehensive Income	$	1,960,000		$	8,000		$	1,968,000

	For the Three Months Ended October 31, 2018
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income (Loss)	$	768,000		$	(852,000	)	$	(84,000	)

Other Comprehensive Income (Loss), net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains (Loss) arising during period		(1,245,000	)		1,190,000			(55,000	)
Less: reclassification adjustment for (gains) losses included in net income		(7,000	)		7,000			—

Income tax expense related to other comprehensive income		361,000			(346,000	)		15,000
Other Comprehensive Income (Loss)	$	(891,000	)	$	851,000		$	(40,000	)

Comprehensive Loss	$	(123,000	)	$	(1,000	)	$	(124,000	)

	For the Six Months Ended October 31, 2018
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	1,386,000		$	(544,000	)	$	842,000

Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities
Unrealized holding gains arising during period		(638,000	)		803,000			165,000
Less: reclassification adjustment for (gains) losses included in net income		37,000			(37,000	)		—
Income tax expense related to other comprehensive income		173,000			(221,000	)		(48,000	)
Other Comprehensive Income (Loss)	$	(428,000	)	$	545,000		$	117,000

Comprehensive Income (Loss)	$	958,000		$	1,000		$	959,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, July 31, 2019	$	40,504,000		$	7,000		$	40,511,000
Purchase of common stock		(2,000	)		1,000			(1,000	)
Dividend declared at $0.40 per common share outstanding		(1,981,000	)		(1,000	)		(1,982,000	)
Unrealized gain (loss), net of tax effect		93,000			(92,000	)		1,000
Net Income		864,000			93,000			957,000
Balance, October 31, 2019	$	39,478,000		$	8,000		$	39,486,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, July 31, 2018	$	38,806,000		$	1,000		$	38,807,000
Purchase of common stock		(49,000	)		—			(49,000	)
Dividend declared at $0.38 per common share outstanding		(1,886,000	)		1,000			(1,885,000	)
Unrealized gain (loss), net of tax effect		(891,000	)		851,000			(40,000	)
Net Income		768,000			(851,000	)		(83,000	)
Balance, October 31, 2018	$	36,748,000		$	2,000		$	36,750,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2019	$	39,553,000		$	—		$	39,553,000
Purchase of common stock		(54,000	)		—			(54,000	)
Dividend declared at $0.40 per common share outstanding		(1,981,000	)		—			(1,981,000	)
Unrealized gain (loss), net of tax effect		231,000			(195,000	)		36,000
Net Income		1,729,000			203,000			1,932,000
Balance, October 31, 2019	$	39,478,000		$	8,000		$	39,486,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018	$	37,730,000		$	—		$	37,730,000
Purchase of common stock		(54,000	)		—			(54,000	)
Dividend declared at $0.38 per common share outstanding		(1,886,000	)		1,000			(1,885,000	)
Unrealized gain (loss), net of tax effect		(428,000	)		545,000			117,000
Net Income		1,386,000			(544,000	)		842,000
Balance, October 31, 2018	$	36,748,000		$	2,000		$	36,750,000

	For the Six Months Ended October 31, 2019
	Original			Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	1,729,000		$	203,000		$	1,932,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—			(274,000	)		(274,000	)
Deferred income taxes		(6,000	)		71,000			65,000
Net cash provided by (used in) operating activities	$	2,111,000		$	—		$	2,111,000

	For the Six Months Ended October 31, 2018
	Original		Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	1,386,000	$	(544,000	)	$	842,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—		765,000			765,000
Deferred income taxes		25,000		(222,000	)		(197,000	)
Net cash provided by (used in) operating activities	$	1,172,000	$	—		$	1,172,000

	For the Three Months Ended October 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	864,000	$	93,000	$	957,000

Denominator
Weighted average common shares outstanding, basic		4,952,110		—		4,952,110
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,972,610		—		4,972,610
Net Income per share - Basic	$	0.17	$	0.02	$	0.19
Income per shares - Diluted	$	0.17	$	0.02	$	0.19

	For the Six Months Ended October 31,
	Originally Filed 2019		Adjustment 2019		Restated 2019
Numerator
Net income	$	1,729,000	$	203,000	$	1,932,000

Denominator
Weighted average common shares outstanding, basic		4,954,250		—		4,964,250
Convertible Preferred Stock		20,500		—		20,500
Weighted average common shares outstanding, diluted		4,974,750		—		4,974,750
Net Income per share - Basic	$	0.35	$	0.04	$	0.39
Income per shares - Diluted	$	0.35	$	0.04	$	0.39

	For the Three Months Ended October 31,
	Originally Filed 2018		Adjustment 2018			Restated 2018
Numerator
Net income	$	768,000	$	(852,000	)	$	(84,000	)

Denominator
Weighted average common shares outstanding, basic		4,962,177		—			4,962,177
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,982,677		—			4,982,677
Net Income per share - Basic	$	0.15	$	(0.17	)	$	(0.02	)
Income per shares - Diluted	$	0.15	$	(0.17	)	$	(0.02	)

	For the Six Months Ended October 31,
	Originally Filed 2018		Adjustment 2018			Restated 2018
Numerator
Net income	$	1,386,000	$	(544,000	)	$	842,000

Denominator
Weighted average common shares outstanding, basic		4,964,879		—			4,964,879
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,985,379		—			4,985,379
Net Income per share - Basic	$	0.28	$	(0.11	)	$	0.17
Income per shares - Diluted	$	0.28	$	(0.11	)	$	0.17

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” created by those sections. Any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,” “project” or “continue,” and the negatives of such terms are intended to identify forward-looking statements. The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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

Executive Summary

The Company’s performance ~~has remained steady~~continues to improve through the ~~three~~first half of the current fiscal year with the first and second quarters ~~with increased sales, being offset by increased cost of sales, and greatly improved investment returns.~~presenting almost identical numbers. This is due to the continuation of our quality USA made products with the ability for customization, our notable customer service, and the purchase of the assets of Labor Saving Devices, Inc. ~~New challenges~~Additionally, the ~~Company has endured over~~Company’s products are traditionally tied to the ~~nine~~housing market and with that market remaining strong, it in turn helps the Company’s sales grow. Opportunities include gaining business from a competitor that is getting out of the security switch business and to continue looking at businesses that might be a good fit to purchase. Challenges in the coming months ~~of this fiscal year~~ include continuing to get product out to customers in a timely manner and to fill the ~~continuation of training of our new software system, learning and incorporating~~stockroom with inventory to get back to shipping out core products the ~~Labor Saving Devices product line, and dealing with~~same day. Also, there have been some shortages ~~and defects~~ of raw ~~materials.~~materials and prices of raw materials have increased with the execution of tariffs by the US government. Management continues to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever before.

Results of Operations

	●	Net sales were ~~$3,260,000~~$3,710,000 for the quarter ended ~~January~~October 31, ~~2018,~~2019, which is ~~a 23.25%~~an 1.17% increase from the corresponding quarter last year. Year-to-date net sales were ~~$8,597,000~~$7,263,000 at ~~January~~October 31, ~~2018,~~2019, which is a ~~4.92%~~2.35% increase from the same period last year. ~~A significant part of growth~~The increases in sales ~~is a direct result~~shows the stability of the ~~asset purchase~~Company and loyalty of ~~Labor Saving Devices and having a new product line to sell as a result of the purchase. Also, our~~its customer base. The ongoing commitment totowards outstanding customer service and customization of products are a few of the many reasons sales ~~remained steady over~~continue to grow. Also, new sales have emerged since GRI acquired the ~~years.~~assets of Labor Saving Devices. The Company has been selling this product line for a couple of years now, which has been a factor in the increased sales.

	●	Cost of goods sold was ~~56.0%~~50.13% of net sales for the quarter ended ~~January~~October 31, ~~2018~~2019 and was ~~46.4%~~51.62% for the same quarter last year. Year-to-date cost of goods sold percentages were ~~50.4%~~49.98% for the current ~~nine~~six months and ~~47.6%~~52.07% for the corresponding ~~nine~~six months last ~~year, which is just slightly over the target~~year. The current cost of goods sold percentages are right at Management’s goal of keeping labor and other manufacturing expenses at less than 50% for both the quarter and year-to-date results. ~~There were some added expenses that were incurred~~Labor costs have decreased because Management has been working with ~~the purchase of Labor Saving Devices that happened during this quarter but they were “one time” expenses management expects the cost of goods sold percentage~~and training employees to ~~fall to return to normal in the future.~~work more efficiently.

●

Operating expenses ~~increased by $146,000~~were up $16,000 for the quarter and ~~also increased by $118,000~~were up $36,000 for the ~~nine-months~~six-months ended ~~January~~October 31, ~~2018~~2019 as compared to the corresponding periods last year. ~~These~~But when comparing percentages in relation to net sales, the operating expenses for the quarter ended October 31, 2019 was 24.37% of net sales while it was 24.22% of net sales for the same quarter the prior year. For year-to-date numbers, operating expense were 24.48% and 24.55% of net sales for the six months ended October 31, 2019 and 2018, respectively. The Company has been able to keep the operating expenses at less than 30% of net sales for many years now; however, the actual dollar amount increase is because of increased ~~costs are primarily due to increased new product development, increased commissions,~~commission amounts (since sales have increased) and additional ~~training~~labor costs for hiring new employees and ~~maintenance fees on our new computer software~~wage increases.


	●	Income from operations for the quarter ended ~~January~~October 31, ~~2018~~2019 was at ~~$582,000~~$946,000, which is ~~an 18.02% decrease~~a 6.77% increase from the corresponding quarter last year, which had income from operations of ~~$710,000.~~$886,000. Income from operations for the ~~nine~~six months ended ~~January~~October 31, ~~2018~~2019 was at ~~$1,973,000,~~$1,855,000, which is a ~~7.20% decrease~~11.81% increase from the corresponding ~~nine~~six months last year, which had income from operations of ~~$2,126,000.~~$1,659,000.

	●	Other income and expenses showed a $306,000 gain for the quarter ended October 31, 2019 as compared to a $1,066,000 loss for the quarter ended October 31, 2018. Investments in marketable securities are ~~up when comparing to the current quarter and nine-month periods the prior year, with an increase of $115,000 in the current quarter~~presented at fair value and an ~~increase of $115,000 for the current year-to-date. The majority of activity in these accounts consists of investment interest, dividends, and~~unrealized gain or loss is recorded within the statements of operations, a non-cash entry, at each period beginning May 1, 2018 and previously recorded unrealized gain or loss in other comprehensive income (loss). For the six months ended October 31, 2019 an unrealized gain was recorded, a non-cash entry, on marketable securities of $274,000. For the six months ended October 31, 2018 an unrealized loss of $765,000 was recorded. The remainder of the increase is primarily due to increased dividend and interest income and taking gains on the sale of investments. With the continued growth in the performance of the stock market, decisions were made to sell holdings and take the realized gain and dividends and interest payments exceeded expectations and many of our holdings had additional and increased dividend payouts.investments

	●	Overall, net income for the quarter ended ~~January~~October 31, ~~2018~~2019 was ~~down $1,000,~~up $1,041,000, or ~~0.13%~~1,239.29%, from the same quarter last year. Similarly, net income for the ~~nine-month~~six-month period ended ~~January~~October 31, ~~2018~~2019 was ~~down $19,000,~~up $1,090,000, or ~~0.93%~~129.45%, from the same period in the prior year.

	●	Earnings per common share for quarter ended ~~January~~October 31, ~~2018~~2019 were ~~$0.16~~$0.19 per share and ~~$0.41~~$0.39 per share for the year-to-date numbers. EPS for the quarter and ~~nine~~six months ended ~~January~~October 31, ~~2017~~2018 were ~~also $0.16~~($0.02) per share and ~~$0.41~~$0.17 per share, respectively.

Liquidity and capital resources

Operating

	●	Net cash ~~decreased $2,504,000~~increased $339,000 during the ~~nine~~six months ended ~~January~~October 31, ~~2018~~2019 as compared to ~~an increase~~a decrease of ~~$80,000~~$204,000 during the corresponding period last year. ~~This is primarily due to the asset purchase of Labor Saving Devices, Inc., which was done without outside financing.~~

	●	Accounts receivable ~~increased $636,000~~decreased $486,000 for the ~~nine~~six months ended ~~January~~October 31, ~~2018~~2019 compared with a ~~$163,000~~$23,000 decrease for the same period last year. The current year ~~increase~~decrease is a result of improved sales and collections on accounts receivable ~~taking a bit longer than normal. Management believes~~have improved over the last year. An analysis of accounts shows that ~~approximately $16,000 of accounts~~there were only 0.02% that were over 90 days ~~have a possibility of being uncollectible.~~at October 31, 2019.

	●	Inventories increased ~~$1,291,000~~$583,000 during the current ~~nine-month~~six-month period as compared to ~~an decrease of $426,000~~a $435,000 increase last year. The bigger increase in the current year is primarily due to ~~the~~increased sales and being able to have inventory ~~purchased from Labor Saving Devices.~~on hand to get product out to customers in a timely manner.

	●	Prepaid expenses saw a $271,000 decrease for the current six months, primarily due to inventory being delivered that had to be paid for in advance. The prior six months showed a $168,000 increase in prepaid expenses.
	●	Prepaid expenses saw a $359,000 increase for the current nine months, primarily due to the prepayment of inventory the Company purchases. Likewise, the prior nine months showed a $48,000 increase in prepaid expenses.

	●	Income tax overpayment for the ~~nine months~~period ended ~~January~~October 31, ~~2018 increased $221,000, as the overpayment also showed~~2019 decreased $114,000, while there was an increase of ~~$43,000~~$97,000 for the same period the prior year. The ~~main reason for~~current decrease is due to making an educated evaluation of the ~~current increase is that the Company expects to generate additional~~Company’s income ~~with the asset acquisition that happened earlier this fiscal year.~~
		tax estimates.
	●	Accounts payable shows ~~increases~~decreases for ~~both nine-month~~the current and prior six-month periods ~~at $239,000~~of $36,000 and ~~$20,000,~~$189,000, respectively. The company strives to pay all invoices within terms, and the variance in ~~increases~~the decreases is primarily due to the timing of receipt of products and payment of invoices.

	●	Accrued expenses ~~decreased $127,000~~increased $11,000 for the current ~~nine-month~~six-month period as compared to a ~~$72,000 decrease~~$8,000 increase for the ~~nine-month~~six-month period ended ~~January~~October 31, ~~2017.~~2018. The current year increase is due to increased wages and commissions.

Investing

	●	As for our investment activities, the Company ~~spent approximately $342,000 on acquisitions~~purchased $179,000 of property and equipment ~~for~~during the current ~~nine-month period, in~~six-month period. In comparison with the corresponding ~~nine~~six months last year, ~~where there was activity of $146,000.~~

	●	~~As a result of~~ the ~~asset acquisition of Labor Saving Devices, Inc. (“LSDI”), a net amount of $1,624,000 of intangible assets were bought, along with inventory and~~Company did not buy any fixed assets. ~~Since the acquisition took place in the current year, there was no cash towards this item for the same reporting period last year.~~

	●	Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. During the ~~nine-month~~six-month period ended ~~January~~October 31, ~~2018~~2019 there was quite a bit of buy/sell activity in the investment accounts. Net cash spent on purchases of marketable securities for the ~~nine-month~~six-month period ended ~~January~~October 31, ~~2018~~2019 was ~~$653,000~~$250,000 compared to ~~$668,000~~$324,000 spent in the prior ~~nine-month~~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 its common stock when the opportunity arises. For the ~~nine-month~~six-month period ended ~~January~~October 31, ~~2018,~~2019, the Company purchased ~~$3,000~~$54,000 worth of treasury ~~stock. This is~~stock, in comparison to ~~$551,000 spent~~$54,000 repurchased in the ~~same nine months~~corresponding six-month period ~~the prior~~last year.

	●	The company ~~paid out dividends of $1,617,000 during the nine months ending January 31, 2018. These dividends were paid during the second quarter. The company~~ declared a dividend of ~~$0.36~~$0.40 per share of common stock on September 30, ~~2017 and these dividends were~~2019, which was paid ~~by October 31, 2017. As for~~out during the ~~prior year numbers, dividend paid was $1,596,000 for~~second quarter. This is a slight increase to the ~~nine months ending January 31, 2017. A~~ dividend of ~~$0.35 per common share~~$0.38, which was declared and paid during the second fiscal quarter last year.

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

	As of
	October 31, 2019		October 31, 2018
Working capital
(current assets – current liabilities)	$	37,805,000	$	34,508,000
Current ratio
(current assets / current liabilities)		16.564		16.614
Quick ratio
((cash + investments + AR) / current liabilities)		14.333		14.401

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

New Product Development

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

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

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

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

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

	●	~~We continue to research~~Tool and die is currently working on a mold for a new version of the ~~possibilities~~channel magnet. These magnets fit into the top channel of ~~fuel level sensing and how that may also serve other agricultural based needs. Several companies from around~~steel doors; no drilling of the ~~world have been looking for ways to secure fuel tanks and trucks. Our emphasis would be in ways to safely monitor fuel levels and report tampering.~~

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

	●	Wireless technology is a main area of focus for product development. We are considering adding wireless technology to some of our current products. A wireless contact switch is in the final stages of development. Also, we are working on wireless versions of our Pool Alarm and environmental sensors that will be easy to install in current construction. We are also concentrating on making products compatible with Wi-Fi, smartphone technology and the increasing popular Z-Wave standard for wireless home automation.

	●	~~An updated version of~~We are ready to launch a new Labor Saving Devices product. It is a 12” adjustable hole cutter which complements our ~~200-36 & 4532 overhead door switch line up is nearing completion with~~popular 10” hole cutter. Using a standard drill, this tool allows you to drill various size holes in the ~~new aluminum cases presently on order.~~ceiling for speakers and canned lights. The ~~modified versions,~~dust bin which, sits against the ~~200-36UF~~ceiling, keeps the ceiling material and ~~4532UF, are being made as~~dust enclosed making for a universal fit switch. This will allow an installer to replace an existing switch without drilling new holes into the cement or adjusting the location. The modified case has an additional mounting hole along with reshaped mounting holes.clean, time saving installation.

Other Information

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

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

Recently Issued Accounting Pronouncements

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

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

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

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

In August 2018, The FASB issued ASU 2018-14 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 ~~comprehensive income (AOCI)~~postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to ~~retained earnings. Under current US GAAP, effects from~~improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a ~~change in tax law is recorded~~Concepts Statement, which the FASB used as a ~~component~~basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the ~~income tax provision related~~updated provisions.

In June 2016, the FASB issued ASU 2016-13(“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to ~~continuing operations~~Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the ~~period of enactment, even if~~scope that have the deferred taxes were established for a financial statement component not part of continuing operations, such as accumulated other comprehensive income (AOCI). Adopting of this standard will remove tax effects strandedcontractual right to receive cash. The amendments in ~~AOCI by the tax law enactment. Adoption of~~ this ASU ~~is optional. This update is~~are effective infor annual reporting periods beginning after December 15, ~~2018 and the~~2019, including interim periods ~~starting thereafter.~~within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company ~~is evaluating~~will continue to evaluate the ~~impact~~effect of ~~this update~~adopting ASU 2016-13 will have on the Company’s financial ~~statements.~~statements and disclosures.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

Item 4. Controls and Procedures

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

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

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

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

Changes in Internal Control ~~Over~~over Financial Reporting

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

GEORGE RISK INDUSTRIES, INC.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

Not applicable

Item 1A. Risk Factors

Not applicable.

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

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

Period		Number of shares ~~repurchased~~repurchased/(issued)
August 1, 2019 – August 31, 2019		200
~~November~~September 1, ~~2017~~2019 – ~~November~~September 30, ~~2017~~	2019		-0-
~~December~~October 1, ~~2017~~2019 – ~~December~~October 31, ~~2017~~	2019		-0-
~~January 1, 2018 – January 31, 2018~~			~~100~~

Item 3. Defaults upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

Item 6. Exhibits

	Exhibit No.		Description

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

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

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

SIGNATURES

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

	George Risk Industries, Inc.
	(Registrant)

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

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

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