UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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

(Mark One)

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

For the quarterly period ended ~~July~~October 31, ~~2019~~2020

[ ] 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 registrant as specified in its charter)

Colorado

84-0524756

(State or other jurisdiction of

incorporation or organization)

(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)

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

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

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (&232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [ ]

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

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

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of the Registrant’s Common Stock outstanding, as of ~~September 18, 2019~~December 15, 2020 was ~~4,952,110.~~4,948,302.

~~EXPLANATORY NOTE~~

This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three months ended July 31, 2019 that we originally filed with the Securities and Exchange Commission, or the Commission, on September 18, 2019, or the Original Filing, in connection with our failure to give effect to the phase in 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 this Amendment, on March 4, 2020, we concluded that we would restate our previously issued financial statements as of and for the three months ended July 31, 2019, as set forth in the Original Filing in connection with our failure to give effect to the phase in 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 and for the three months ended July 31, 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to reflect the correction of the error described above.

Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Filing.

~~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:~~Item 1. Financial Statements

The unaudited financial statements for the ~~three-month period~~three-and six-month periods ended ~~July~~October 31, ~~2019~~2020, are attached hereto.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

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

Current Assets:
Cash and cash equivalents	$	5,667,000	$	4,873,000	$	5,855,000	$	6,458,000
Investments and securities, at fair value		27,657,000		27,291,000
Investments and securities						27,666,000		25,322,000
Accounts receivable:
Trade, net of $8,764 and $9,321 doubtful account allowance		2,534,000		2,696,000
Trade, net of $1,014 and $7,306 doubtful account allowance						2,938,000		2,964,000
Other		4,000		6,000		29,000		18,000
Income tax overpayment		—		259,000		—		56,000
Inventories, net		4,863,000		4,583,000		5,731,000		5,103,000
Prepaid expenses		320,000		282,000		438,000		516,000
Total Current Assets		41,045,000		39,990,000		42,657,000		40,437,000

Property and Equipment, net, at cost		1,095,000		984,000		1,699,000		1,465,000

Other Assets
Investment in Limited Land Partnership, at cost		293,000		293,000		320,000		320,000
Projects in process		1,000		117,000		25,000		21,000
Other		3,000		3,000		2,000		2,000
Total Other Assets		297,000		413,000		347,000		343,000

Intangible assets, net		1,609,000		1,640,000
Intangible Assets, net						1,455,000		1,517,000

TOTAL ASSETS	$	44,046,000	$	43,027,000	$	46,158,000	$	43,762,000

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

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

~~(continued)~~

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

Current Liabilities
Accounts payable, trade	$	261,000		$	206,000		$	215,000		$	187,000
Dividends payable		1,714,000			1,714,000			2,081,000			1,892,000
Accrued expenses:
Payroll and related expenses		287,000			356,000
Property taxes		3,000			—
Payroll and other expense								346,000			450,000
Income tax payable		30,000			—			321,000			—
Notes payable								950,000			950,000
Total Current Liabilities		2,295,000			2,276,000			3,913,000			3,479,000

Long-Term Liabilities
Deferred income taxes		1,240,000			1,198,000			1,298,000			699,000
Total Long-Term Liabilities		1,240,000			1,198,000			1,298,000			699,000

Total Liabilities		3,535,000			3,474,000			5,211,000			4,178,000

Commitments and contingencies		—			—
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			1,934,000			1,934,000			1,934,000
Accumulated other comprehensive income		49,000			14,000			87,000			(4,000	)
Retained earnings		41,859,000			40,883,000			42,279,000			41,006,000
Less: treasury stock, 3,550,571 and 3,544,271 shares, at cost		(4,280,000	)		(4,227,000	)
Less: treasury stock, 3,553,029 and 3,552,954 shares, at cost								(4,302,000	)		(4,301,000	)
Total Stockholders’ Equity		40,511,000			39,553,000			40,947,000			39,584,000

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	44,046,000		$	43,027,000		$	46,158,000		$	43,762,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED ~~JULY~~OCTOBER 31, ~~2019~~2020 AND ~~2018~~2019

(Unaudited)

							Three months			Six months			Three months			Six months
	July 31, 2019			July 31, 2018			ended			ended			ended			ended
							Oct 31, 2020			Oct 31, 2020			Oct 31, 2019			Oct 31, 2019
Net Sales	$	3,552,000		$	3,429,000		$	4,647,000		$	8,694,000		$	3,710,000		$	7,263,000
Less: Cost of Goods Sold		(1,769,000	)		(1,801,000	)		(2,294,000	)		(4,245,000	)		(1,860,000	)		(3,630,000	)
Gross Profit		1,783,000			1,628,000			2,353,000			4,449,000			1,850,000			3,633,000

Operating Expenses:
Operating Expenses
General and Administrative		297,000			286,000			364,000			678,000			329,000			626,000
Sales		557,000			555,000			604,000			1,171,000			555,000			1,112,000
Engineering		14,000			9,000			21,000			50,000			17,000			32,000
Rent Paid to Related Parties		5,000			5,000			—			—			3,000			8,000
Total Operating Expenses		873,000			885,000			989,000			1,899,000			904,000			1,778,000

Income From Operations		910,000			773,000			1,364,000			2,550,000			946,000			1,855,000

Other Income (Expense)
Other		1,000			3,000			44,000			56,000			1,000			2,000
Dividend and Interest Income		193,000			193,000			134,000			290,000			166,000			359,000
Unrealized gain (loss) on marketable securities		145,000			—
Gain (Loss) on Sale of Investments		49,000			(68,000	)
Unrealized Gain (Loss) on Equity Securities								(115,000	)		1,999,000			129,000			274,000
Gain on Investments								72,000			44,000			10,000			59,000
Gain on Sale of Assets								4,000			4,000			—			—
Total Other Income		388,000			128,000			139,000			2,393,000			306,000			694,000

Income Before Provisions for Income Taxes		1,298,000			901,000			1,503,000			4,943,000			1,252,000			2,549,000

Provisions for Income Taxes
Provisions for Income Taxes:
Current Expense		294,000			247,000			682,000			1,032,000			258,000			552,000
Deferred tax expense		28,000			37,000
Deferred Tax (Benefit) Expense								(39,000	)		559,000			37,000			65,000
Total Income Tax Expense		322,000			284,000			643,000			1,591,000			295,000			617,000

Net Income	$	976,000		$	617,000		$	860,000		$	3,352,000		$	957,000		$	1,932,000

Basic Earnings Per Share of Common Stock	$	0.20		$	0.12
Diluted Earnings Per Share of Common Stock	$	0.20		$	0.12
Income Per Share of Common Stock
Basic							$	0.17		$	0.68		$	0.19		$	0.39
Diluted							$	0.17		$	0.67		$	0.19		$	0.39

Weighted Average Number of Common Shares Outstanding		4,956,389			4,967,580
Weighted Average Number of Shares Outstanding (Diluted)		4,976,889			4,988,080
Basic								4,949,902			4,949,914			4,952,110			4,954,250
Diluted								4,970,402			4,970,414			4,972,610			4,974,750

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED ~~JULY~~OCTOBER 31, ~~2019~~2020 AND ~~2018~~2019

(Unaudited)

July 31, 2019 July 31, 2018

Net Income $ 976,000 $ 617,000

Other Comprehensive Income, Net of Tax
Unrealized gain (loss) on securities:
Unrealized holding gains arising during period 49,000 607,000
Reclassification adjustment for gains included in net income — 44,000
Income tax expense related to other comprehensive income (14,000 ) (188,000 )
Other Comprehensive Income 35,000 463,000

Comprehensive Income $ 1,011,000 $ 1,080,000

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

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

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

~~CONDENSED~~STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED ~~JULY~~OCTOBER 31, 2020 AND 2019 ~~and 2018~~

(Unaudited)

	Preferred Stock				Common Stock Class A				Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount
Balances, April 30, 2019		4,100	$	99,000		8,502,881	$	850,000
Balances, July 31, 2019										4,100	$	99,000		8,502,881	$	850,000

Purchases of common stock		—		—		—		—		—		—		—		—

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

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

Net Income		—		—		—		—		—		—		—		—

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

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

Purchases of common stock		—		—		—		—

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

Net Income		—		—		—		—

Balances, July 31, 2018		4,100	$	99,000		8,502,881	$	850,000
Balances, October 31, 2019										4,100	$	99,000		8,502,881	$	850,000

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

Purchases of common stock		—		—		—		—

Dividend declared at $0.42 per common share outstanding

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

Net Income		—		—		—		—

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

~~CONDENSED~~STATEMENTS OF STOCKHOLDERS’ ~~EQUITIY~~EQUITY

FOR THE THREE MONTHS ENDED ~~JULY~~OCTOBER 31, 2020 AND 2019 ~~and 2018~~

(Unaudited)

							Accumulated
		Treasury Stock					Other
Paid-In	Paid-In	(Common Class A)					Comprehensive		Retained					Paid-In	Treasury Stock (Common Class A)					Accumulated Other Comprehensive		Retained
Capital	Capital	Shares		Amount			Income		Earnings		Total			Capital	Shares		Amount			Income		Earnings			Total
$	1,934,000		3,544,271	$	(4,227,000	)	$	14,000	$	40,883,000	$	39,553,000		1,934,000		3,550,571	$	(4,280,000	)	$	49,000	$	41,859,000		$	40,511,000

	—		6,300		(53,000	)		—		—		(53,000	)	—		200		(1,000	)		—		—			(1,000	)

	—		—		—			35,000		—		35,000		—		—		—			—		(1,982,000	)		(1,982,000	)

	—		—		—			—		976,000		976,000		—		—		—			1,000		—			1,000

														—		—		—			—		957,000			957,000

$	1,934,000		3,550,571	$	(4,280,000	)	$	49,000	$	41,859,000	$	40,511,000		1,934,000		3,550,771	$	(4,281,000	)	$	50,000	$	40,834,000		$	39,486,000

							Accumulated
		Treasury Stock					Other
Paid-In	Paid-In	(Common Class A)					Comprehensive		Retained					Paid-In	Treasury Stock (Common Class A)					Accumulated Other Comprehensive			Retained
Capital	Capital	Shares		Amount			Income		Earnings		Total			Capital	Shares		Amount			Income			Earnings			Total
$	1,934,000		3,534,784	$	(4,148,000	)	$	2,249,000	$	36,746,000	$	37,730,000		1,934,000		3,552,954	$	(4,301,000	)	$	101,000		$	43,498,000		$	42,181,000

	—		650		(5,000	)		—		—		(5,000	)	—		75		(1,000	)		—			—			(1,000	)

	—		—		—			463,000		—		463,000		—		—		—			—			(2,079,000	)		(2,079,000	)

	—		—		—			—		617,000		617,000		—		—		—			(14,000	)		—			(14,000	)

														—		—		—			—			860,000			860,000

$	1,934,000		3,535,434	$	(4,153,000	)	$	2,712,000	$	37,363,000	$	38,805,000		1,934,000		3,553,029	$	(4,302,000	)	$	87,000		$	42,279,000		$	40,947,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

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

FOR THE ~~THREE~~SIX MONTHS ENDED ~~JULY~~OCTOBER 31, ~~2019~~2020 AND ~~2018~~2019

(Unaudited)

July 31, 2019 July 31, 2018
Cash Flows from Operating Activities:
Net Income $ 976,000 $ 617,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 89,000 83,000
(Gain) loss on sale of investments (83,000 ) 68,000
Impairments on investments 34,000 —
Unrealized (gain) loss on marketable securities (145,000 ) —
Reserve for bad debts (2,000 ) 3,000
Reserve for obsolete inventory 8,000 6,000
Deferred income taxes 28,000 37,000
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 163,000 234,000
Inventories (288,000 ) (389,000 )
Prepaid expenses 79,000 166,000
Employee receivables 2,000 —
Income tax overpayment — 244,000
Increase (decrease) in:
Accounts payable 55,000 (7,000 )
Accrued expenses (66,000 ) (172,000 )
Income tax payable 289,000 —
Net cash provided by operating activities 1,139,000 890,000

Cash Flows From Investing Activities:
(Purchase) of property and equipment (169,000 ) —
Proceeds from sale of marketable securities 9,000 2,000
(Purchase) of marketable securities (132,000 ) (233,000 )
Net cash (used in) investing activities (292,000 ) (231,000 )

Cash Flows From Financing Activities:
(Purchase) of treasury stock (53,000 ) (5,000 )
Dividends paid — (1,000 )
Net cash (used in) financing activities (53,000 ) (6,000 )

Net Increase in Cash and Cash Equivalents $ 794,000 $ 653,000

Cash and Cash Equivalents, beginning of period $ 4,873,000 $ 4,294,000
Cash and Cash Equivalents, end of period $ 5,667,000 $ 4,947,000

Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes paid $ 0 $ 0
Interest paid $ 0 $ 1,000

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

Purchases of common stock		—		—		—		—

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

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

Net Income		—		—		—		—

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

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

Purchases of common stock		—		—		—		—

Dividend declared at $0.42 per common share outstanding

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

Net Income		—		—		—		—

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

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

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

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

	—		—		—			36,000		—			36,000

	—		—		—			—		1,932,000			1,932,000

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

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

	—		75		(1,000	)		—			—			(1,000	)

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

	—		—		—			91,000			—			91,000

	—		—		—			—			3,352,000			3,352,000

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTSOF CASH FLOWS

FOR THE SIX MONTHS ENDED OCTOBER 31, 2020 AND 2019

(Unaudited)

	Oct 31, 2020			Oct 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	3,352,000		$	1,932,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		189,000			183,000
(Gain) loss on sale of investments		(123,000	)		(100,000	)
Impairments on investments		79,000			41,000
Unrealized (gain) loss on equity securities		(1,999,000	)		(274,000	)
Reserve for bad debts		(6,000	)		(6,000	)
Reserve for obsolete inventory		10,000			2,000
Deferred income taxes		559,000			65,000
(Gain) loss on sale of assets		(4,000	)		—
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		32,000			486,000
Inventories		(637,000	)		(583,000	)
Prepaid expenses and projects in process		73,000			271,000
Other receivables		(10,000	)		5,000
Income tax overpayment		—			114,000
Increase (decrease) in:
Accounts payable		28,000			(36,000	)
Accrued expenses		(104,000	)		11,000
Income tax payable		376,000			—
Net cash from operating activities		1,815,000			2,111,000

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		4,000			—
(Purchase) of property and equipment		(361,000	)		(179,000	)
Proceeds from sale of marketable securities		16,000			540,000
(Purchase) of marketable securities		(186,000	)		(250,000	)
(Purchase) of long-term investment		—			(27,000	)
Net cash from investing activities		(527,000	)		84,000
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock		(1,000	)		(54,000	)
Dividends paid		(1,890,000	)		(1,802,000	)
Net cash from financing activities		(1,891,000	)		(1,856,000	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		(603,000	)		339,000

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

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

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

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

~~JULY~~OCTOBER 31, ~~2019~~2020

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, ~~2019~~2020 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year.

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

Recently Issued Accounting Pronouncements — In ~~February~~June 2016, the FASB issued ASU ~~2016-02, “Leases (Topic 842)~~No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ~~(“ASU 2016-02”)~~, which ~~provides guidance for accounting for leases. ASU 2016-02~~ requires ~~lessees~~entities to ~~classify leases as either finance or operating leases and to record~~use a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognizedforward looking approach based on ~~an effective interest rate method or~~expected losses to estimate credit losses on ~~a straight-line basis over~~certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the ~~term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02~~standard to provide additional clarification on specific topics. Topic 326 is effective for ~~the Company~~fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We have applied this guidance, as of May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects2020, using a modified-retrospective approach. The application of ~~the~~this guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizesdid not require a ~~cumulative-effect~~cumulative effect adjustment to ~~the opening balance of~~ retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal 2020 and the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material ~~impact~~effect on ~~the Company’s~~our 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. We applied this guidance, as of May 1, 2020. The ~~Company is currently assessing the timing and impact~~application of ~~adopting the updated provisions.~~this guidance did not have a material effect on our 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 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,January 2020, ~~and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.~~

~~In June 2016,~~ the FASB issued ASU ~~No. 2016-13, “Financial Instruments~~2020-01, “Investments - ~~Credit Losses~~Equity Securities (Topic ~~326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure~~321), Investments - Equity Method and ~~recognize expected credit losses for financial assets held~~Joint Ventures (Topic 323), and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “Topic 815, Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic ~~825, Financial Instruments,~~815.” ~~and “ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU.~~ The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, ~~2020. The ASU requires a modified retrospective~~2020, and interim periods within those fiscal years. Early adoption ~~method.~~is permitted. The Company ~~is still evaluating~~does not expect the ~~impact~~adoption of ~~adoption~~ASU 2020-01 to have a material impact on its financial ~~statements and disclosures.~~statements.

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

Note 2:2 Investments

The Company has investments in publicly traded equity securities, ~~corporate bonds,~~ state and municipal debt securities, real estate investment trusts, and money markets. Effective with the Company’s adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on May 1, 2018, the Company carries all investments at fair value, with unrealized gain or loss on equity securities reported through other income. The investments in debt securities, ~~have maturities~~which include municipal bonds and bond funds, mature between ~~September 2019~~April 2021 and January 2044. The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported in ~~each~~the respective period’s earnings. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholder’s equity. Dividend and interest income are reported as earned.

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

			Gross		Gross							Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair		Cost		Unrealized		Unrealized			Fair
July 31, 2019	Basis		Gains		Losses			Value
October 31, 2020										Basis		Gains		Losses			Value
Municipal bonds	$	5,475,000	$	117,000	$	(43,000	)	$	5,549,000	$	5,308,000	$	163,000	$	(41,000	)	$	5,430,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		3,000		(9,000	)		83,000		112,000		—		(41,000	)		71,000
Equity securities	��	16,729,000		4,252,000		(260,000	)		20,721,000		17,326,000		4,946,000		(684,000	)		21,588,000
Money markets and CDs		1,278,000		—		—			1,278,000		577,000		—		—			577,000
Total	$	23,597,000	$	4,372,000	$	(312,000	)	$	27,657,000	$	23,323,000	$	5,109,000	$	(766,000	)	$	27,666,000

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

Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the ~~Statements~~statements of ~~Operations~~income in the period of the ~~change, and debt securities are carried at fair value on the balance sheet with changes in fair value recorded as unrealized gains or (losses) in the Statement of Comprehensive Income.~~change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On April 30, 2019, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings.income.

The Company evaluates all marketable securities for ~~other-than temporary~~other-than-temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately onone year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded an impairment loss of ~~$34,000~~$52,000 for the quarter, and recorded a loss of $79,000 for the six months ended October 31, 2020. As for the corresponding periods last year, management recorded an impairment loss of $7,000 for the quarter ended ~~July~~October 31, 2019 and an impairment loss of $41,000 was recorded for the six-months ended October 31, 2019.

The Company’s investments are actively traded in the stock and bond markets. Therefore, either a realized gain or loss is recorded when a sale happens. For the ~~prior~~ quarter ended ~~July~~October 31, ~~2018, management~~2020 the Company had sales of equity securities which yielded gross realized gains of $184,000 and gross realized losses of $110,000. For the same period, sales of debt securities did not ~~need to record~~yield any ~~impairment~~gross realized gains, but gross realized losses of $2,000 were recorded. As for the six-months ended October 31, 2020 the Company had sales of equity securities which yielded gross realized gains of $286,000 and gross realized losses of $236,000. For the same six-month period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $6,000 were recorded. During the quarter ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $67,000 and $57,000, respectively, while sales of debt securities did not yield any gross realized gains or losses. During the six-months ending October 31, 2019, the Company recorded gross realized gains and losses on equity securities of $220,000 and $161,000, respectively, as well as gross realized gains and losses on debt securities of $3,000 and $3,000, respectively. The gross realized loss numbers include the impaired figures listed in the previous paragraph.

The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at ~~July~~October 31, ~~2019~~2020 and April 30, ~~2019,~~2020, respectively.

Unrealized Loss Breakdown by Investment Type at ~~July~~October 31, ~~2019~~2020

	Less than 12 months					12 months or greater					Total					Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	—	$	—		$	448,000	$	(43,000	)	$	448,000	$	(43,000	)	$	93,000	$	(1,000	)	$	333,000	$	(40,000	)	$	426,000	$	(41,000	)
REITs		—		—			30,000		(9,000	)		30,000		(9,000	)		28,000		(17,000	)		43,000		(24,000	)		71,000		(41,000	)
Equity securities		1,975,000		(147,000	)		729,000		(113,000	)		2,704,000		(260,000	)		4,218,000		(569,000	)		1,747,000		(115,000	)		5,965,000		(684,000	)
Total	$	1,975,000	$	(147,000	)	$	1,207,000	$	(165,000	)	$	3,182,000	$	(312,000	)	$	4,339,000	$	(587,000	)	$	2,123,000	$	(179,000	)	$	6,462,000	$	(766,000	)

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

	Less than 12 months					12 months or greater					Total					Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)	$	2,203,000	$	(42,000	)	$	484,000	$	(47,000	)	$	2,687,000	$	(89,000	)
REITs		—		—			32,000		(6,000	)		32,000		(6,000	)		43,000		(30,000	)		24,000		(14,000	)		67,000		(44000	)
Equity securities		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)		5,496,000		(866,000	)		1,651,000		(314,000	)		7,147,000		(1,180,000	)
Total	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)	$	7,742,000	$	(938,000	)	$	2,159,000	$	(375,000	)	$	9,901,000	$	(1,313,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at ~~July~~October 31, ~~2019.~~2020.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at ~~July~~October 31, ~~2019.~~
2020.

Note 3:3 Inventories

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

							October 31,			April 30,
	July 31, 2019			April 30, 2019			2020			2020

Raw materials	$	3,878,000		$	3,644,000		$	4,784,000		$	4,233,000
Work in process		368,000			389,000			478,000			402,000
Finished goods		715,000			641,000			617,000			606,000
		4,961,000			4,674,000			5,879,000			5,241,000
Less: allowance for obsolete inventory		(98,000	)		(91,000	)		(148,000	)		(138,000	)
Inventories, net	$	4,863,000		$	4,583,000		$	5,731,000		$	5,103,000

Note 4:4 Business Segments

The following is financial information relating to industry segments:

					Three months		Six months		Three months			Six months
	July 31,				ended		ended		ended			ended
	2019		2018		Oct 31, 2020		Oct 31, 2020		Oct 31, 2019			Oct 31, 2019
Net revenue:
Security alarm products	$	2,830,000	$	2,150,000	$	3,632,000	$	6,962,000	$	2,985,000		$	5,852,000
Cable & wiring tools		536,000		679,000		620,000		1,019,000		571,000			1,071,000
Other products		186,000		600,000		395,000		713,000		154,000			340,000
Total net revenue	$	3,552,000	$	3,429,000	$	4,647,000	$	8,694,000	$	3,710,000		$	7,263,000

Income from operations:
Security alarm products	$	725,000	$	485,000	$	1,092,000	$	2,042,000	$	762,000		$	1,495,000
Cable & wiring tools		137,000		153,000		160,000		299,000		140,000			273,000
Other products		48,000		135,000		112,000		209,000		44,000			87,000
Total income from operations	$	910,000	$	773,000	$	1,364,000	$	2,550,000	$	946,000		$	1,855,000

Depreciation and amortization:
Security alarm products	$	23,000	$	10,000	$	39,000	$	61,000	$	71,000		$	94,000
Cable & wiring tools		31,000		31,000		31,000		61,000		31,000			62,000
Other products		20,000		27,000		14,000		27,000		(4,000	)		16,000
Corporate general		15,000		15,000		19,000		40,000		(4,000	)		11,000
Total depreciation and amortization	$	89,000	$	83,000	$	103,000	$	189,000	$	94,000		$	183,000

Capital expenditures:
Security alarm products	$	169,000	$	—	$	149,000	$	242,000	$	10,000		$	179,000
Cable & wiring tools		—		—		—		—		—			—
Other products		—		—		111,000		113,000		—			—
Corporate general		—		—		6,000		6,000		—			—
Total capital expenditures	$	169,000	$	—	$	266,000	$	361,000	$	10,000		$	179,000

					October 31, 2020		April 30, 2020
Identifiable assets:	July 31, 2019		April 30, 2019
Security alarm products	$	6,369,000	$	6,179,000	$	7,849,000	$	7,150,000
Cable & wiring tools		2,725,000		2,713,000		2,586,000		2,684,000
Other products		864,000		842,000		967,000		724,000
Corporate general		34,088,000		33,293,000		34,756,000		33,204,000
Total assets	$	44,046,000	$	43,027,000	$	46,158,000	$	43,762,000

Note 5:5 Earnings per Share

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

	For the three months ended July 31, 2019							For the three months ended October 31, 2020
	Income		Shares		Per-Share			Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount			(Numerator)		(Denominator)		Amount
Net income	$	976,000						$	860,000
Basic EPS	$	976,000		4,956,389	$	.1969		$	860,000		4,949,902	$	.17
Effect of dilutive Convertible Preferred Stock		–		20,500		(.0008	)		–		20,500		--
Diluted EPS	$	976,000		4,976,889	$	.1961		$	860,000		4,970,402	$	.17

	For the three months ended July 31, 2018							For the six months ended October 31, 2020
	Income		Shares		Per-Share			Income		Shares		Per-Share
	(Numerator)		(Denominator)		Amount			(Numerator)		(Denominator)		Amount
Net income	$	617,000						$	3,352,000
Basic EPS	$	617,000		4,967,580	$	.1242		$	3,352,000		4,949,914	$	.68
Effect of dilutive Convertible Preferred Stock		–		20,500		(.0005	)		–		20,500		--
Diluted EPS	$	617,000		4,988,080	$	.1237		$	3,352,000		4,970,414	$	.67

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

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

Note 6:6 Retirement Benefit Plan

On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the ~~corporation.~~Company. The Plan is intended to be qualified under Section ~~401 (k)~~401(k) of the Internal Revenue Code of 1986, as amended. It is funded by voluntary pre-tax and Roth (taxable) contributions from eligible employees who may contribute a percentage of their eligible compensation, limited and subject to statutory limits. Employees are eligible to participate in the Plan when they have attained the age of 21 and completed one thousand hours of service in any plan year with the Company. Upon leaving the Company, each participant is 100% vested with respect to the participants’ contributions while the Company’s matching contributions are vested over a six-year period in accordance with the Plan document. Contributions are invested, as directed by the participant, in investment funds available under the Plan. Matching contributions by the Company of approximately ~~$2,000~~$16,000 and $7,000 were paid during ~~both the~~each quarter ending ~~July~~October 31, 2020 and 2019, respectively. Likewise, the Company paid matching contributions of approximately $29,000 and ~~2018,~~$9,000 during each six-month period ending October 31, 2020 and 2019, respectively.

Note 7:7 Fair Value Measurements

~~Generally accepted accounting principles in~~The carrying value of the ~~United States of America (US GAAP) defines~~Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value asdue to their short term nature. The fair value of our investments is determined utilizing market based information. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

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

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

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

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

Investments and Marketable Securities

As of ~~July~~October 31, ~~2019,~~2020, our investments consisted of money markets, ~~certificates of deposits (CDs),~~ publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt ~~securities and corporate bonds. Our~~securities. The marketable securities are valued using third-party broker statements. The value of the ~~investments~~majority of securities is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

Fair Value Hierarchy

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

Assets Measured at Fair Value on a Recurring Basis as of
July 31, 2019
Level 1 Level 2 Level 3 Total
Assets:
Municipal Bonds $ — $ 5,549,000 $ — $ 5,549,000
Corporate Bonds 26,000 — — 26,000
REITs — 83,000 — 83,000
Equity Securities 20,721,000 — — 20,721,000
Money Markets and CDs 1,278,000 — — 1,278,000
Total fair value of assets measured on a recurring basis $ 22,025,000 $ 5,632,000 $ — $ 27,657,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019								Assets Measured at Fair Value on a Recurring Basis as of October 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000	$	—	$	5,430,000	$	—	$	5,430,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		84,000		—		84,000		—		71,000		—		71,000
Equity Securities		20,465,000		—		—		20,465,000		21,588,000		—		—		21,588,000
Money Markets and CDs		1,233,000		—		—		1,233,000		577,000		—		—		577,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000	$	22,165,000	$	5,501,000	$	—	$	27,666,000

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

Note 8 Notes Payable

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

Note 89 Subsequent Events

~~None~~As stated above, the Company received notification on December 3, 2020 from its lender of the Paycheck Protection Program (“PPP”) loan that the full amount of the loan was forgiven.

~~Note 9 Correction of Previously Issued Financial Statements~~

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three months ended July 31, 2019, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the phase in 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 April 30, 2019 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three months ended July 31, 2019.

~~No entries to correct for this restatement have any impact on our cash position, liquidity, or operations.~~

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 2:2. 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/A,~~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 ~~current~~new information becomes available in the future.

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

Executive Summary

The Company’s performance ~~has increased~~continues to improve through the first half of the current fiscal year with the second quarter ~~in comparison~~showing growth over the first quarter of the current fiscal year. This is mainly due the closure of a competitor at the end of calendar year 2019 and having the ability to continue to work through the COVID-19 pandemic. The state of Nebraska, where we are located, has kept businesses open during the pandemic. Additionally, the Company’s products are traditionally tied to the ~~prior quarter last year. In comparison to~~housing market and with that market remaining strong, it in turn helps the ~~most recent prior quarter, performance has stayed steady with similar~~Company’s sales figures. The main difference between this year’s quarter and last year’s quarter is that the Company doesn’t have a big back order log and is able to get inventory in the stockroom which allows the Company to ship products out on timely basis.grow. Opportunities include ~~continuing to learn and grow~~keeping up with ~~our computer system~~the business growth and to continue looking at businesses that might be a good fit to purchase. ~~Also, we~~We also have new products that have hit the marketplace and a couple more that are scheduled to ~~enter the marketplace~~be introduced by the end of the ~~calendar~~ year. Challenges in the coming months include continuing to get product out to customers in a ~~timelier manner. Raw material prices~~timely manner and dealing with the COVID-19 pandemic restrictions. Possible COVID-19 challenges include, but are ~~also a concern with tariffs being levied by~~not limited to, price increases and/or delays in the ~~US government~~supply chain, reduced sales, workforce interruptions, and ~~other factors.~~economic conditions impacting the stock market. Management continues to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever before.

Results of Operations

●

Net sales ~~showed~~were $4,647,000 for the quarter ended October 31, 2020, which is a ~~3.59%~~25.26% increase ~~over~~from the corresponding quarter last year. Year-to-date net sales were $8,694,000 at October 31, 2020, which is a 19.70% increase from the same period last year. The increases in sales are primarily a result of a competitor no longer selling competing products, as discussed above. Other than the ~~prior year. Management believes that they~~loss of a competitor, the Company does not believe COVID-19 has had a significant effect on our net revenue and we do not expect it to have ~~been successful at training employees on~~a significant effect going forward. Also, the ~~new computer system~~ongoing commitment towards outstanding customer service and ~~production is running smoothly. The Company has also seen some old customers buying from us again. Management believes that this may be in relation~~customization of products are a few of the many reasons sales continue to ~~price increases from our competitors~~grow.

●

Cost of goods sold ~~saw a decrease from 52.52%~~was 49.37% of net sales infor the ~~prior year, to 49.80% in~~quarter ended October 31, 2020 and was 50.13% for the same quarter last year. Year-to-date cost of goods sold percentages were 48.83% for the current ~~quarter, which is inside~~six months and 49.98% for the corresponding six months last year. The current cost of goods sold percentages are right at Management’s goal ~~to keep~~of keeping labor and other manufacturing expenses ~~within~~at less than 50% for both the ~~range of 45~~quarter and year-to-date results. Management continues to ~~50%. The decreased cost of goods sold percentage is a reflection of having better training~~work with and ~~working~~train employees to work more efficiently ~~when making product.~~and they also work at getting the best price for raw materials.

●

Operating expenses ~~have increased by $18,000~~were up $85,000 for the quarter and were up $121,000 for the six-months ended October 31, 2020 as compared to the corresponding periods last year. But when comparing ~~the current year quarter to the same quarter for the prior year, but the percentage~~percentages in relation to net sales, ~~decreased to 24.58%~~the operating expenses for the quarter ended ~~July~~October 31, ~~2019 as compared to 24.93%~~2020 was 21.28% of net sales while it was 24.37% of net sales for the ~~corresponding~~same quarter ~~last~~the prior year. For year-to-date numbers, operating expense were 21.84% and 24.48% of net sales for the six months ended October 31, 2020 and 2019, respectively. The Company has been able to keep the operating expenses at less than 30% of net sales for many years now; however, the actual dollar amount increase is because of increased commission amounts (since sales have increased) and additional labor costs for hiring new employees and wage increases.

●

Income from operations for the quarter ended ~~July~~October 31, ~~2019~~2020 was at ~~$910,000,~~$1,364,000, which is a ~~17.72%~~44.19% increase from the corresponding quarter last year, which had income from operations of ~~$773,000.~~$946,000. Income from operations for the six months ended October 31, 2020 was at $2,550,000, which is a 37.47% increase from the corresponding six months last year, which had income from operations of $1,855,000.

●

Other income and expenses ~~showed~~are down when comparing the current quarter to the prior quarter, with a ~~$388,000 gain for~~decrease of $167,000 in the ~~quarter ended July 31, 2019 as compared~~current quarter. Conversely, other income and expenses are up by $1,699,000 when comparing the current six-month period to ~~a $128,000 gain for~~ the quarter ended July 31, 2018. Investments in marketable securities are presented at fair value and an 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 three months ended July 31, 2019 an unrealized gain was recorded, a non-cash entry, on marketable securities of $145,000. For the three months ended July 31, 2018 we recorded $463,000 of unrealized gains to other comprehensive income. The remainderprior six-month period. Most of the ~~increase is primarily due to~~activity in these accounts consists of investment interest, dividends, real gains ~~realized from the~~or losses on sale of investments, and unrealized gains or losses on equity securities. The main reason for the decrease in the current quarter as ~~compared~~opposed to ~~losses sustained during~~ the ~~same quarter last year.~~increase for the year-to-date numbers is the unrealized gain and loss on equity securities. The Company is at the mercy of the stock market when it comes to these figures and the COVID-19 pandemic influenced these numbers.

	●	Provision for income taxes showed an increase of $38,000, up from $284,000 in the quarter ended July 31, 2018 to $322,000 for the quarter ended July 31, 2019. The increase is a direct result of the adoption of ASU 2016-01.
	●	~~In turn,~~Overall, net income for the quarter ended ~~July~~October 31, ~~2019~~2020 was ~~$976,000, a 58.18% increase~~down $97,000, or 10.14%, from the ~~corresponding~~same quarter last ~~year, which showed~~year. Conversely, net income ~~of $617,000.~~for the six-month period ended October 31, 2020 was up $1,420,000, or 73.5%, from the same period in the prior year.

●

Earnings per common share for quarter ended October 31, 2020 were $0.17 per share and $0.68 per share for the year-to-date numbers. EPS for the quarter and six months ended ~~July~~October 31, 2019 were ~~$0.20~~$0.19 per ~~common~~ share and ~~$0.12~~$0.39 per ~~common~~ share, ~~for the quarter ended July 31, 2018.~~respectively.

Liquidity and capital resources

Operating

●

Net cash ~~increased $794,000~~decreased $603,000 during the ~~quarter~~six months ended ~~July~~October 31, ~~2019~~2020 as compared to an increase of ~~$653,000~~$339,000 during the corresponding ~~quarter~~period last year.

	●	Accounts receivable decreased ~~$163,000~~$32,000 for the ~~quarter ending July~~six months ended October 31, ~~2019~~2020 compared with a ~~$234,000~~$486,000 decrease for the same ~~quarter~~period last year. The smaller current year decrease inis a result of improved sales and collections on accounts receivable ~~is directly attributable to~~have improved over the ~~Company’s ability to collect on accounts and to keep past due accounts to a minimum.~~last year. An analysis of accounts shows that there were only ~~5.15%~~0.27% that were over 90 days at ~~July~~October 31, ~~2019.~~2020.

	●	Inventories increased ~~$288,000~~$637,000 during the current ~~quarter~~six-month period as compared to a ~~$389,000~~$583,000 increase last year. The ~~smaller~~bigger increase in the current year is primarily due to being prepared for the ~~fact that~~increase we have seen in sales. In addition, the Company ~~selling~~is keeping more ~~finished goods at~~inventory on hand to reduce the likelihood of running into a ~~slightly faster rate than it is replenishing~~shortage on some major raw ~~materials.~~materials, such as we experienced last year.

	●	AtPrepaid expenses saw a $73,000 decrease for the ~~quarter ended July 31, 2019 there was~~current six months, primarily due to less prepayment of raw materials and running through some of our prepaid agreements without needing to renew them. The prior six months showed a ~~$79,000 decrease~~$271,000 increase in prepaid ~~expenses and at July 31, 2018, there was a $166,000 decrease. The current decrease is due to capitalizing some projects in process.~~expenses.

	●	Accounts payable shows an increase ~~of $55,000~~ for the ~~quarter ended July 31, 2019 compared to~~current six-month period of $28,000 while it shows a decrease ~~of $7,000~~ for the ~~same quarter the year before, primarily due to timing issues. Management~~prior six-month periods of $36,000. The company strives to pay all ~~payables~~invoices within terms, ~~unless there~~and the variance in the decreases is ~~a problem with~~primarily due to the ~~merchandise.~~timing of receipt of products and payment of invoices.

	●	Accrued expenses decreased ~~$66,000~~$104,000 for the current ~~quarter~~six-month period as compared to ~~a $172,000 decrease~~an $11,000 increase for the ~~quarter~~six-month period ended ~~July~~October 31, ~~2018.~~2019. The difference in the amounts is primarily due to timing ~~issues of when pay periods end.~~issues.

	●	Income tax payable increased $376,000 for the ~~quarter ended July 31, 2019 increased $289,000, while there was~~current six-month period, compared to having a ~~$244,000~~ decrease ~~towards~~in income tax overpayment for the ~~quarter~~six-months ended ~~July~~October 31, ~~2018.~~2019. The current increase is largely due to ~~waiting on tax refunds to be sent~~having increased sales and income and not having ~~to pay~~ income tax estimates ~~yet.~~large enough. Also, since the Company was notified that the PPP loan was forgiven, the forgiveness amount was included in the income tax expense calculation.

Investing

	●	As for our investment activities, the Company purchased ~~$169,000~~$361,000 of property and equipment during the current ~~fiscal quarter.~~six-month period. In comparison, ~~with the corresponding quarter last year, there were not any~~$179,000 was spent on purchases of property and ~~equipment.~~equipment during the corresponding six months last year.

	●	~~Additionally, the~~The Company continues to purchase marketable securities, which include municipal bonds and quality stocks. ~~Cash~~During the six-month period ended October 31, 2020 there was quite a bit of buy/sell activity in the investment accounts. Net cash spent on purchases of marketable securities for the ~~quarter~~six-month period ended ~~July~~October 31, ~~2019~~2020 was ~~$132,000~~$186,000 compared to ~~$233,000~~$250,000 spent ~~during~~in the ~~quarter ended July 31, 2018.~~prior six-month period. We continue to use “money manager” accounts for most stock transactions. By doing this, the Company gives an independent ~~third party~~third-party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays a quarterly service fee based on the value of the investments. The COVID-19 pandemic has had a negative impact on the performance of the stock market, which has affected the real and unrealized gains/losses. Management believes that more realized losses were recorded when investments were sold and more write downs had to be recorded.

Financing

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

	●	The Company continues to purchase back its common stock when the opportunity arises. For the ~~quarter~~six-month period ended ~~July~~October 31, ~~2019,~~2020, the Company purchased ~~$53,000~~$1,000 worth of treasury stock, ~~along with the $5,000 spent~~in comparison to $54,000 repurchased in the ~~same~~corresponding six-month period last year.

	●	The company declared a dividend of $0.42 per share of common stock on September 30, 2020, which was paid out during the ~~prior~~second quarter. This is a slight increase to the dividend of $0.40, which was declared and paid during the second fiscal quarter last year.

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

	Qtr ended		Qtr ended		As of
	July 31, 2019		July 31, 2018		October 31, 2020		October 31, 2019
Working capital (current assets – current liabilities)	$	38,750,000	$	36,894,000	$	38,744,000	$	37,805,000
Current ratio (current assets / current liabilities)		17.882		18.760		10.901		16.564
Quick ratio ((cash + investments + AR) / current liabilities)		15.622		16.567		9.317		14.333

New Product Development

The Company and ~~its’~~its engineering department ~~perpetually work~~continue to develop enhancements to ~~current~~ 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 ~~various stages of~~ the development process include:

●

~~A new face plate~~Explosion proof contacts that will be UL listed for hazardous locations. There has been demand from our ~~pool alarms is nearing completion. The innovative design is slim in style and will also allow the homeowner to change the plate to match their décor.~~customers for this type of high security magnetic reed switch.

●

~~A new~~An updated version of the pool access alarm is(PAA) has met electrical listing testing (ETL) approval and we are currently ~~going through electrical listing~~waiting on component parts to begin production and field testing. This next-generation model combines our battery operated DPA series with our hard wired 289 series. A variety of installation options will be available through jumper pin settings.

	●	~~Work continues on high security switches. They have a triple biased high security switch design nearly complete and an adjustable magnet design was completed for recessed mounting applications.~~
	●	Wireless technology is a main area of focus for product development. We are ~~looking into~~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~~pool access alarm and environmental sensors that will be easy to install in current construction. We are also concentrating on making products compatible with Wi-Fi, smartphone technology and the increasing popular Z-Wave standard for wireless home automation.

●

WeIn the high security realm, the Company has introduced the 2707 Series which is a triple high biased magnetic reed contact and available in SPDT and DPDT models. These contacts are ~~ready~~resistant to ~~launch a new product~~magnetic tamper and defeat. They are used in ~~our cable~~applications such as airports, biotechnology labs, manufacturing plants, banks, military bases, and ~~wiring tools segment,~~ energy-generation facilities.

●

The ~~Grabbit GR5. This is~~3045 Panic Switch contains screw terminals and uses an ~~ultra-compact, lightweight telescoping pole that extends 5’ to grab or push a wire. The GR5 is~~actuating lever which can be triggered with only the ~~newest member~~tip of the ~~Grabbit family - joining~~finger. It can be installed under a counter or desk or any similar place. The 3045CT uses 12’ extreme temperature rated wire for installation in refrigerators and freezers. Both models have a latching LED indicating when the ~~10’, 12’~~switch is activated and ~~18’ versions. The Grabbits are an indispensable tool~~automatically resets when ~~running wire through drop ceilings~~the lever is closed and ~~difficult-to-access areas. A Z-tip, J-tip~~is fully re-armed. Latching LED and ~~LED light are included with the Grabbits which are interchangeable depending on the situation.~~UL Listed versions will follow.

Other Information

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

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

Recently Issued Accounting Pronouncements

In ~~February~~June 2016, the FASB issued ASU ~~2016-02, “Leases (Topic 842)~~No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ~~(“ASU 2016-02”)~~, which ~~provides guidance for accounting for leases. ASU 2016-02~~ requires ~~lessees~~entities to ~~classify leases as either finance or operating leases and to record~~use a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognizedforward looking approach based on ~~an effective interest rate method or~~expected losses to estimate credit losses on ~~a straight-line basis over~~certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the ~~term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02~~standard to provide additional clarification on specific topics. Topic 326 is effective for ~~the Company~~fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We have applied this guidance, as of May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects2020, using a modified-retrospective approach. The application of ~~the~~this guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizesdid not require a ~~cumulative-effect~~cumulative effect adjustment to ~~the opening balance of~~ retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal 2020 and the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material ~~impact~~effect on ~~the Company’s~~our financial ~~statements and related disclosures because leases are not material to the financial~~ statements.

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

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures ~~About~~about Market Risk

~~This disclosure does not apply.~~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 ~~July~~October 31, ~~2019.~~2020. Based on that evaluation, ~~our chief executive officer (also working as our chief financial officer)~~management concluded that the disclosure controls and procedures employed at the Company were not effective to provide reasonable assurance that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

~~We continue to operate with~~In our annual report filed on Report 10-K for the year ended April 30 ,2020, management identified the following material weakness in our internal control over financial reporting:

●

The small size of our Company limits our ability to achieve the desired level of separation of duties for proper internal controls and financial reporting, particularly as it relates to financial reporting to assure material disclosures or implementation of newly issued accounting standards are included. A secondary review over annual and quarterly filings does not occur. Due to the departure of the Controller, the current CEO and CFO roles are being fulfilled by the same individual. We do not have an audit committee. We do not believe we have met the full requirement for separation for financial reporting purposes.

During the quarter ending October 31, 2020, a ~~limited number of accounting and financial personnel. A new accounting professional~~Controller was hired by the Company in ~~2018 to fill the Controller position.~~September 2020. Training will be required to fulfill disclosure control and procedure responsibilities, including review procedures for key accounting schedules and timely and proper documentation of material transactions and agreements. Until sufficient training has taken place for this new Controller, we believe this control deficiency represents material weaknesses in internal control over financial reporting. To mitigate the effects of the material weakness identified in our annual report, the Company contracted with an outside CPA to perform a secondary review of our quarterly report filed on Form 10-Q.

Despite the material weaknesses in financial reporting noted above, we believe that our ~~restated~~consolidated 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~~Other than those mentioned above, there were no ~~change~~changes in our internal control over financial reporting during the fiscal quarter ended ~~July~~October 31, ~~2019~~2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

GEORGE RISK INDUSTRIES, INC.

~~PART~~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 ~~first~~second quarter of fiscal year ~~2020.~~2021.

Period		Number of shares ~~repurchased~~repurchased/(issued)
~~May~~August 1, ~~2019~~2020 – ~~May~~August 31, ~~2019~~2020		-0-
~~June~~September 1, ~~2019~~2020 – ~~June~~September 30, ~~2019~~2020		~~300~~-0-
~~July~~October 1, ~~2019~~2020 – ~~July~~October 31, ~~2019~~2020		~~6,000~~75

Item 3. Defaults upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

Item 6. Exhibits

	Exhibit No.		Description
	31.1		Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002.

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

SIGNATURES

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

		George Risk Industries, Inc.
		(Registrant)

Date ~~March 24,~~	December 15, 2020	By:	/s/ Stephanie M. Risk-McElroy
			Stephanie M. Risk-McElroy
			President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board