Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | GEORGE RISK INDUSTRIES, INC. | |
Entity Central Index Key | 84,112 | |
Document Type | 10-K | |
Trading Symbol | GRI | |
Document Period End Date | Apr. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 13,277,116 | |
Entity Common Stock, Shares Outstanding | 5,021,660 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,016 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 5,918,000 | $ 5,691,000 |
Investments and securities | 24,530,000 | 25,266,000 |
Accounts receivable: | ||
Trade, net of $74 and $160 doubtful account allowance for 2016 and 2015, respectively | 1,912,000 | 2,007,000 |
Other | 3,000 | |
Note receivable, current | 1,000 | |
Income tax overpayment | 199,000 | 534,000 |
Inventories, net | 2,964,000 | 2,275,000 |
Prepaid expenses | 68,000 | 108,000 |
Total Current Assets | 35,591,000 | 35,885,000 |
Property and Equipment, net, at cost | 756,000 | 661,000 |
Other Assets | ||
Investment in Limited Land Partnership, at cost | 253,000 | 253,000 |
Projects in process | 68,000 | 56,000 |
Other | 1,000 | |
Total Other Assets | 321,000 | 310,000 |
TOTAL ASSETS | 36,668,000 | 36,856,000 |
Current Liabilities | ||
Accounts payable, trade | 31,000 | 110,000 |
Dividends payable | 1,255,000 | 1,099,000 |
Accrued expenses: | ||
Payroll and related expenses | 320,000 | 306,000 |
Deferred income taxes | 87,000 | 857,000 |
Total Current Liabilities | 1,693,000 | 2,372,000 |
Long-Term Liabilities | ||
Deferred income taxes | 191,000 | 115,000 |
Total Long-Term Liabilities | 191,000 | 115,000 |
Stockholders' Equity | ||
Convertible preferred stock, 1,000,000 shares authorized, Series 1-noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding | 99,000 | 99,000 |
Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding | 850,000 | 850,000 |
Additional paid-in capital | 1,736,000 | 1,736,000 |
Accumulated other comprehensive income | 347,000 | 1,282,000 |
Retained earnings | 35,337,000 | 33,960,000 |
Less: treasury stock, 3,481,021 and 3,477,156 shares, at cost | (3,585,000) | (3,558,000) |
Total Stockholders' Equity | 34,784,000 | 34,369,000 |
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY | $ 36,668,000 | $ 36,856,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Allowance for doubtful account receivable | $ 74 | $ 160 |
Convertible preferred stock, authorized | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 8,502,881 | 8,502,881 |
Common stock, outstanding | 8,502,881 | 8,502,881 |
Treasury stock, at cost | 3,481,021 | 3,477,156 |
Series I Noncumulative Preferred Stock [Member] | ||
Convertible preferred stock, authorized | 25,000 | 25,000 |
Convertible preferred stock, stated value (in dollars per share) | $ 20 | $ 20 |
Convertible preferred stock, issued | 4,100 | 4,100 |
Convertible preferred stock, outstanding | 4,100 | 4,100 |
Income Statements
Income Statements - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Statement [Abstract] | ||
Net Sales | $ 11,240,000 | $ 11,903,000 |
Less: Cost of Goods Sold | (4,977,000) | (5,466,000) |
Gross Profit | 6,263,000 | 6,437,000 |
Operating Expenses: | ||
General and Administrative | 853,000 | 817,000 |
Sales | 1,937,000 | 1,960,000 |
Engineering | 92,000 | 87,000 |
Rent Paid to Related Parties | 19,000 | 19,000 |
Total Operating Expenses | 2,901,000 | 2,883,000 |
Income From Operations | 3,362,000 | 3,554,000 |
Other Income (Expense) | ||
Other Income | 16,000 | 5,000 |
Interest Expense | (3,000) | |
Dividend and Interest Income | 867,000 | 820,000 |
Gain on Investments | 72,000 | 304,000 |
Gain on Sale of Assets | 5,000 | |
Nonoperating Income (Expense) | 955,000 | 1,131,000 |
Income Before Provisions for Income Taxes | 4,317,000 | 4,685,000 |
Provisions for Income Taxes | ||
Current Expense | 1,252,000 | 1,474,000 |
Deferred tax (benefit) expense | (21,000) | 59,000 |
Total Income Tax Expense | 1,231,000 | 1,533,000 |
Net Income | $ 3,086,000 | $ 3,152,000 |
Earnings Per Share of Common Stock | ||
Basic (in dollars per share) | $ 0.61 | $ 0.63 |
Diluted (in dollars per share) | $ 0.61 | $ 0.62 |
Weighted Average Number of Common Shares Outstanding (in shares) | 5,024,428 | 5,029,343 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Statements Of Comprehensive Income | ||
Net Income | $ 3,086,000 | $ 3,152,000 |
Unrealized gain (loss) on securities: | ||
Unrealized holding gains (losses) arising during period | (1,545,000) | 816,000 |
Less: reclassification adjustment for (gains) losses included in net income | (62,000) | (711,000) |
Income tax expense related to other comprehensive income | 672,000 | (45,000) |
Other Comprehensive Income | (935,000) | 60,000 |
Comprehensive Income | $ 2,151,000 | $ 3,212,000 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Series 1 - Noncumulative Preferred Stock [Member] | Common Stock Class A [Member] | Paid-In Capital [Member] | Treasury Stock (Common Class A) [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Total |
Balances at beginning at Apr. 30, 2014 | $ 99,000 | $ 850,000 | $ 1,736,000 | $ (3,525,000) | $ 1,222,000 | $ 32,417,000 | $ 32,799,000 |
Balances at beginning (in shares) at Apr. 30, 2014 | 4,100 | 8,502,881 | 3,472,706 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Purchases of common stock | $ (33,000) | (33,000) | |||||
Purchases of common stock (in shares) | 4,450 | ||||||
Dividend declared | (1,609,000) | (1,609,000) | |||||
Unrealized gain (loss), net of tax effect | 60,000 | 60,000 | |||||
Net Income | 3,152,000 | 3,152,000 | |||||
Balances at End at Apr. 30, 2015 | $ 99,000 | $ 850,000 | 1,736,000 | $ (3,558,000) | 1,282,000 | 33,960,000 | 34,369,000 |
Balances at End (in shares) at Apr. 30, 2015 | 4,100 | 8,502,881 | 3,477,156 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Purchases of common stock | $ (27,000) | (27,000) | |||||
Purchases of common stock (in shares) | 3,865 | ||||||
Dividend declared | (1,709,000) | (1,709,000) | |||||
Unrealized gain (loss), net of tax effect | (935,000) | (935,000) | |||||
Net Income | 3,086,000 | 3,086,000 | |||||
Balances at End at Apr. 30, 2016 | $ 99,000 | $ 850,000 | $ 1,736,000 | $ (3,585,000) | $ 347,000 | $ 35,337,000 | $ 34,784,000 |
Balances at End (in shares) at Apr. 30, 2016 | 4,100 | 8,502,881 | 3,481,021 |
Statements of Stockholders' Eq7
Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend declared (in dollars per share) | $ 0.34 | $ 0.32 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 3,086,000 | $ 3,152,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 182,000 | 149,000 |
(Gain) loss on sale of investments | (72,000) | (304,000) |
(Gain) Loss on sale of property and equipment | (5,000) | |
Bad debt expense | (2,000) | (4,000) |
Reserve for obsolete inventory | 6,000 | (116,000) |
Deferred income taxes | (21,000) | 59,000 |
(Increase) decrease in: | ||
Accounts receivable | 98,000 | 31,000 |
Inventories | (695,000) | 74,000 |
Prepaid expenses | 40,000 | 24,000 |
Employee receivables | 2,000 | |
Income tax overpayment | 335,000 | (609,000) |
Increase (decrease) in: | ||
Accounts payable | (79,000) | 1,000 |
Accrued expense | 14,000 | 28,000 |
Net cash provided by (used in) operating activities | 2,894,000 | 2,480,000 |
Cash Flows From Investing Activities: | ||
Other assets manufactured & purchased | (12,000) | (15,000) |
Proceeds from sales of assets | 5,000 | |
(Purchase) of property and equipment | (276,000) | (186,000) |
Proceeds from sale of marketable securities | 64,000 | 33,000 |
(Purchase) of marketable securities | (864,000) | (986,000) |
(Purchase) of long-term investment | (15,000) | |
(Loans) made to employees | (2,000) | |
Collections of loans to employees | 1,000 | 1,000 |
Net cash provided by (used in) investing activities | (1,087,000) | (1,165,000) |
Cash Flows From Financing Activities: | ||
(Purchase) of treasury stock | (27,000) | (33,000) |
Dividends paid | (1,553,000) | (1,463,000) |
Net cash provided by (used in) financing activities | (1,580,000) | (1,496,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 227,000 | (181,000) |
Cash and Cash Equivalents, beginning of period | 5,691,000 | 5,872,000 |
Cash and Cash Equivalents, end of period | 5,918,000 | 5,691,000 |
Cash payments for: | ||
Income taxes paid | 1,380,000 | 2,050,000 |
Interest expense | $ 3,000 | |
Cash receipts for: | ||
Income taxes | $ 447,000 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | 1. Nature of Business and Summary of Significant Accounting Policies Nature of Business Cash and Cash Equivalents Allowance for Doubtful Accounts The company records an allowance for doubtful accounts based on an analysis of specifically identified customer balances. The company has a limited number of customers with individually large amounts due at any given date. Any unanticipated change in any one of these customers’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off. The company has recorded an allowance for doubtful accounts of $74 for the year ended April 30, 2016 and $160 for the year ended April 30, 2015. For the fiscal year ended April 30, 2016, bad debt expense was a net credit of $2,489 due to bad debt recoveries during the year. For the fiscal year ended April 30, 2015, bad debt expense was a net credit of $3,727. Inventories Property and Equipment Classification Useful Life 2016 2015 Dies, jigs, and molds 3–7 $ 1,685,000 $ 1,652,000 Machinery and equipment 5–10 1,156,000 1,152,000 Furniture and fixtures 5–10 145,000 145,000 Leasehold improvements 5–32 214,000 189,000 Buildings 20–39 659,000 659,000 Automotive 3–5 76,000 74,000 Software 2–5 353,000 140,000 Land N/A 13,000 13,000 Total 4,301,000 4,024,000 Accumulated depreciation (3,545,000 ) (3,363,000 ) Net $ 756,000 $ 661,000 Depreciation expense of $182,000 and $149,000 was charged to operations for the years ended April 30, 2016 and 2015, respectively. Maintenance and repairs are charged to expense as incurred, and expenditures for major improvements are capitalized. When assets are retired or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to operations. Advertising— Income Taxes The flow-through method of accounting for tax credits has been adopted by the company. Such credits are reflected as a reduction of the provision for income taxes in the year in which they become available. Net Income Per Common Share Accounting Estimates Financial Instruments Revenue Recognition Comprehensive Income Segment Reporting and Related Information Reclassifications 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 January 2015, the FASB issued Accounting Standards Update No. 2015-04, “Requirement that All Deferred Income Tax Assets and Liabilities Be Presented as Non-Current in a Classified Balance Sheet”. The objective of this update is to require deferred tax liabilities and assets be classified entirely as non-current in a classified balance sheet. This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year. The Company is evaluating the impact of this update on the Company’s financial statements. In February of 2016, the FASB issued ASU 2016-02 Leases |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories Inventories at April 30, 2016 and 2015, consisted of the following: 2016 2015 Raw materials $ 1,948,000 $ 1,557,000 Work in process 641,000 466,000 Finished goods 448,000 318,000 3,037,000 2,341,000 Less: allowance for obsolete inventory (73,000 ) (66,000 ) Totals $ 2,964,000 $ 2,275,000 |
Investments
Investments | 12 Months Ended |
Apr. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 3. Investments The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, money markets, certificates of deposits and hedge funds. The investments in securities, which include all investments except for the hedge funds, are classified as available-for-sale securities, and are reported at fair value. Available-for-sale investments in debt securities mature between June 2016 and November 2048. The Company uses the average cost method to determine the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned. As of April 30, 2016, investments consisted of the following: Gross Gross Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 6,489,000 $ 133,000 $ (239,000 ) $ 6,383,000 Corporate bonds $ 130,000 $ — $ (4,000 ) $ 126,000 REITs $ 42,000 $ 4,000 $ (2,000 ) $ 44,000 Equity securities $ 14,796,000 $ 1,187,000 $ (484,000 ) $ 15,499,000 Money Markets and CDs $ 2,478,000 $ — $ — $ 2,478,000 Total $ 23,935,000 $ 1,324,000 $ (729,000 ) $ 24,530,000 The Company evaluates all investments for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When other than a temporary decline is identified, the Company will decrease the cost of the investment to the new fair value and recognize a loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded impairment losses of $69,000 for the year ended April 30, 2016 and $25,000 for the year ended April 30, 2015. 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 April 30, 2016. Less than 12 months 12 months or greater Total Description Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Municipal bonds $ 3,129,000 $ (215,000 ) $ 609,000 $ (24,000 ) $ 3,738,000 $ (239,000 ) Corporate bonds $ — $ — $ 27,000 $ (4,000 ) $ 27,000 $ (4,000 ) REITs $ 27,000 $ (2,000 ) $ — $ — $ 27,000 $ (2,000 ) Equity securities $ 5,018,000 $ (323,000 ) $ 1,171,000 $ (161,000 ) $ 6,189,000 $ (484,000 ) Total $ 8,174,000 $ (540,000 ) $ 1,807,000 $ (189,000 ) $ 9,981,000 $ (729,000 ) Municipal Bonds The unrealized losses on the Company’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 occurs, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at April 30, 2016. Corporate Bonds The Company’s unrealized loss on investments in corporate bonds relates to one bond. The contractual term of this investment does not permit the issuer to settle the security at a price less than the amortized cost of the investment. Because the Company has the ability to hold this investment until a recovery of fair value, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at April 30, 2016. 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. Management has evaluated the individual holdings, and does not consider these investments to be other-than-temporarily impaired at April 30, 2016. |
Retirement Benefit Plan
Retirement Benefit Plan | 12 Months Ended |
Apr. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefit Plan | 4. 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 company and its subsidiaries. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. It is funded by voluntary pre-tax 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 of approximately $10,000 were paid for each of the fiscal years ending April 30, 2016 and 2015, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 5. StockholdersÂ’ Equity Preferred Stock Convertible preferred stock without par value may be issued from time to time as determined by the board of directors. Shares of different series shall be of equal rank but may vary as to terms and conditions. Class A Common Stock During the fiscal year ended April 30, 2016, the Company purchased 3,865 shares of Class A common stock. This was initiated by stockholders contacting the company. Stock Transfer Agent |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share of Common Stock | |
Earnings Per Share | 6. Earnings Per Share Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented are: April 30, 2016 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,086,000 Basic EPS $ 3,086,000 5,024,428 $ .6142 Effect of dilutive Convertible Preferred Stock — 20,500 (.0025 ) Diluted EPS $ 3,086,000 5,044,928 $ .6117 April 30, 2015 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,152,000 Basic EPS $ 3,152,000 5,029,343 $ .6267 Effect of dilutive Convertible Preferred Stock — 20,500 (.0025 ) Diluted EPS $ 3,152,000 5,049,813 $ .6242 |
Commitments, Contingencies, and
Commitments, Contingencies, and Related Party Transactions | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Related Party Transactions | 7. Commitments, Contingencies, and Related Party Transactions The Company leases a building from Bonnie Risk. Bonnie Risk is a majority stockholder, a director and employee of the company. This building contains the CompanyÂ’s sales and accounting departments, maintenance department, engineering department and some production facilities. This lease requires a minimum payment of $1,535 on a month-to-month basis. The total lease expense for this arrangement was $18,420 for the fiscal years ended April 30, 2016 and 2015. One of the directors of the board, Joel Wiens, is the principal shareholder of FirsTier Bank. FirsTier Bank is the financial institution the company uses for its day to day banking operations. Year end balances of accounts held at this bank are $4,304,000 for the year ended April 30, 2016 and $4,647,000 for the year ended April 30, 2015. The Company also received interest income from FirsTier Bank in the amount of approximately $1,500 for the years ended April 30, 2016 and 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Reconciliation of income taxes with Federal and State taxable income: 2016 2015 Income before income taxes $ 4,317,000 $ 4,685,000 State income tax deduction (236,000 ) (279,000 ) Interest and dividend income (638,000 ) (617,000 ) Domestic production activities deduction (312,000 ) (347,000 ) Nondeductible expenses and timing differences 18,000 53,000 Taxable income $ 3,149,000 $ 3,495,000 The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes: Income tax provision at statutory rate $ 1,805,000 $ 1,958,000 Increase (decrease) income taxes resulting from: State income taxes (99,000 ) (117,000 ) Interest and dividend income (267,000 ) (258,000 ) Domestic production activities (130,000 ) (145,000 ) Deferred taxes (21,000 ) 59,000 Other temporary and permanent differences (57,000 ) 36,000 Income tax expense $ 1,231,000 $ 1,533,000 Federal tax rate 34.0 % 34.0 % State tax rate 7.8 % 7.8 % Blended statutory rate 41.8 % 41.8 % Deferred tax assets (liabilities) consist of the following components at April 30, 2016 and 2015: Deferred tax current assets (liabilities): Inventory valuation 30,000 27,000 263A adjustment 98,000 — Accrued vacation 34,000 37,000 Accumulated unrealized (gain)/loss on investments (249,000 ) (921,000 ) Net deferred tax assets (liabilities) $ (87,000 ) $ (857,000 ) Deferred long-term tax assets (liabilities): Depreciation (191,000 ) (115,000 ) Net deferred long-term tax assets (liabilities) $ (191,000 ) $ (115,000 ) |
Business Segments
Business Segments | 12 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | 9. Business Segments The following is financial information relating to industry segments: April 30, 2016 2015 Net revenue: Security alarm products $ 8,989,000 $ 10,063,000 Other products 2,251,000 1,840,000 Total net revenue $ 11,240,000 $ 11,903,000 Income from operations: Security alarm products $ 2,689,000 $ 3,005,000 Other products 673,000 549,000 Total income from operations $ 3,362,000 $ 3,554,000 Identifiable assets: Security alarm products $ 4,203,000 $ 3,383,000 Other products 1,142,000 1,450,000 Corporate general 31,323,000 32,023,000 Total assets $ 36,668,000 $ 36,856,000 Depreciation and amortization: Security alarm products $ 16,000 $ 15,000 Other products 123,000 113,000 Corporate general 43,000 21,000 Total depreciation and amortization $ 182,000 $ 149,000 Capital expenditures: Security alarm products $ 24,000 $ 2,000 Other products 33,000 163,000 Corporate general 219,000 21,000 Total capital expenditures $ 276,000 $ 186,000 |
Concentrations
Concentrations | 12 Months Ended |
Apr. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 10. Concentrations The company maintains the majority of its cash balance in a financial institution in Kimball, Nebraska. Accounts at this institution are insured by the Federal Deposit Insurance Corporation for up to $250,000. For the years ended April 30, 2016 and 2015, the Company had uninsured balances of $4,279,000, and $4,452,000, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal. The Company also maintains cash balances in money market funds at the above-mentioned financial institution. Such balances are not insured. Management also has cash funds with Wells Fargo Bank with uninsured balances of $1,363,000 and 793,000 for the years ending April 30, 2016 and 2015, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal. The company has sales to a security alarm distributor representing 41% of total sales for both the years ended April 30, 2016 and 2015. This distributor accounted for 48% and 50% of accounts receivable at April 30, 2016 and 2015, respectively. Security switch sales made up 80% of total sales for the fiscal year ended April 30, 2016 and 85% of total sales for the fiscal year ended April 30, 2015. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The carrying value of our cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due 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 measurements) 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. Marketable Securities As of April 30, 2016, our investments consisted of money markets, publicly traded equity securities as well as certain state and municipal debt securities. Our marketable securities are valued using third-party broker statements. The value of the majority of securities is derived from quoted market information. The inputs to the valuation are 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; the inputs are recorded as Level 2. Fair Value Hierarchy The following tables set 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 April 30, 2016 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 6,383,000 — $ 6,383,000 Corporate Bonds $ 126,000 — — $ 126,000 REITs — $ 44,000 — $ 44,000 Equity Securities $ 15,499,000 — — $ 15,499,000 Money Markets and CDs $ 2,478,000 — — $ 2,478,000 Total fair value of assets measured on a recurring basis $ 18,103,000 $ 6,427,000 — $ 24,530,000 |
Nature of Business and Summar20
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The company records an allowance for doubtful accounts based on an analysis of specifically identified customer balances. The company has a limited number of customers with individually large amounts due at any given date. Any unanticipated change in any one of these customersÂ’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off. The company has recorded an allowance for doubtful accounts of $74 for the year ended April 30, 2016 and $160 for the year ended April 30, 2015. For the fiscal year ended April 30, 2016, bad debt expense was a net credit of $2,489 due to bad debt recoveries during the year. For the fiscal year ended April 30, 2015, bad debt expense was a net credit of $3,727. |
Inventories | Inventories |
Property and Equipment | Property and Equipment Classification Useful Life 2016 2015 Dies, jigs, and molds 3–7 $ 1,685,000 $ 1,652,000 Machinery and equipment 5–10 1,156,000 1,152,000 Furniture and fixtures 5–10 145,000 145,000 Leasehold improvements 5–32 214,000 189,000 Buildings 20–39 659,000 659,000 Automotive 3–5 76,000 74,000 Software 2–5 353,000 140,000 Land N/A 13,000 13,000 Total 4,301,000 4,024,000 Accumulated depreciation (3,545,000 ) (3,363,000 ) Net $ 756,000 $ 661,000 Depreciation expense of $182,000 and $149,000 was charged to operations for the years ended April 30, 2016 and 2015, respectively. Maintenance and repairs are charged to expense as incurred, and expenditures for major improvements are capitalized. When assets are retired or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to operations. |
Advertising | Advertising— |
Income Taxes | Income Taxes The flow-through method of accounting for tax credits has been adopted by the company. Such credits are reflected as a reduction of the provision for income taxes in the year in which they become available. |
Net Income Per Common Share | Net Income Per Common Share |
Accounting Estimates | Accounting Estimates |
Financial Instruments | Financial Instruments |
Revenue Recognition | Revenue Recognition |
Comprehensive Income | Comprehensive Income |
Segment Reporting and Related Information | Segment Reporting and Related Information |
Reclassifications | Reclassifications |
Recently Issued Accounting Pronouncements | 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 January 2015, the FASB issued Accounting Standards Update No. 2015-04, “Requirement that All Deferred Income Tax Assets and Liabilities Be Presented as Non-Current in a Classified Balance Sheet”. The objective of this update is to require deferred tax liabilities and assets be classified entirely as non-current in a classified balance sheet. This update is effective in annual reporting periods beginning after December 15, 2016 and the interim periods within that year. The Company is evaluating the impact of this update on the Company’s financial statements. In February of 2016, the FASB issued ASU 2016-02 Leases |
Nature of Business and Summar21
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of property and equipment | Depreciation is calculated based on the following estimated useful lives using the straight-line method: Classification Useful Life 2016 2015 Dies, jigs, and molds 3–7 $ 1,685,000 $ 1,652,000 Machinery and equipment 5–10 1,156,000 1,152,000 Furniture and fixtures 5–10 145,000 145,000 Leasehold improvements 5–32 214,000 189,000 Buildings 20–39 659,000 659,000 Automotive 3–5 76,000 74,000 Software 2–5 353,000 140,000 Land N/A 13,000 13,000 Total 4,301,000 4,024,000 Accumulated depreciation (3,545,000 ) (3,363,000 ) Net $ 756,000 $ 661,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories at April 30, 2016 and 2015, consisted of the following: 2016 2015 Raw materials $ 1,948,000 $ 1,557,000 Work in process 641,000 466,000 Finished goods 448,000 318,000 3,037,000 2,341,000 Less: allowance for obsolete inventory (73,000 ) (66,000 ) Totals $ 2,964,000 $ 2,275,000 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments | As of April 30, 2016, investments consisted of the following: Gross Gross Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 6,489,000 $ 133,000 $ (239,000 ) $ 6,383,000 Corporate bonds $ 130,000 $ — $ (4,000 ) $ 126,000 REITs $ 42,000 $ 4,000 $ (2,000 ) $ 44,000 Equity securities $ 14,796,000 $ 1,187,000 $ (484,000 ) $ 15,499,000 Money Markets and CDs $ 2,478,000 $ — $ — $ 2,478,000 Total $ 23,935,000 $ 1,324,000 $ (729,000 ) $ 24,530,000 |
Schedule of unrealized losses not deemed to be other-than-temporarily impaired | 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 April 30, 2016. Less than 12 months 12 months or greater Total Description Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Municipal bonds $ 3,129,000 $ (215,000 ) $ 609,000 $ (24,000 ) $ 3,738,000 $ (239,000 ) Corporate bonds $ — $ — $ 27,000 $ (4,000 ) $ 27,000 $ (4,000 ) REITs $ 27,000 $ (2,000 ) $ — $ — $ 27,000 $ (2,000 ) Equity securities $ 5,018,000 $ (323,000 ) $ 1,171,000 $ (161,000 ) $ 6,189,000 $ (484,000 ) Total $ 8,174,000 $ (540,000 ) $ 1,807,000 $ (189,000 ) $ 9,981,000 $ (729,000 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share of Common Stock | |
Schedule of basic and diluted earnings per share | Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented are: April 30, 2016 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,086,000 Basic EPS $ 3,086,000 5,024,428 $ .6142 Effect of dilutive Convertible Preferred Stock — 20,500 (.0025 ) Diluted EPS $ 3,086,000 5,044,928 $ .6117 April 30, 2015 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,152,000 Basic EPS $ 3,152,000 5,029,343 $ .6267 Effect of dilutive Convertible Preferred Stock — 20,500 (.0025 ) Diluted EPS $ 3,152,000 5,049,813 $ .6242 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of income taxes | Reconciliation of income taxes with Federal and State taxable income: 2016 2015 Income before income taxes $ 4,317,000 $ 4,685,000 State income tax deduction (236,000 ) (279,000 ) Interest and dividend income (638,000 ) (617,000 ) Domestic production activities deduction (312,000 ) (347,000 ) Nondeductible expenses and timing differences 18,000 53,000 Taxable income $ 3,149,000 $ 3,495,000 |
Schedule of statutory rate to income before income taxes | The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes: Income tax provision at statutory rate $ 1,805,000 $ 1,958,000 Increase (decrease) income taxes resulting from: State income taxes (99,000 ) (117,000 ) Interest and dividend income (267,000 ) (258,000 ) Domestic production activities (130,000 ) (145,000 ) Deferred taxes (21,000 ) 59,000 Other temporary and permanent differences (57,000 ) 36,000 Income tax expense $ 1,231,000 $ 1,533,000 Federal tax rate 34.0 % 34.0 % State tax rate 7.8 % 7.8 % Blended statutory rate 41.8 % 41.8 % |
Schedule of deferred tax assets (liabilities) | Deferred tax assets (liabilities) consist of the following components at April 30, 2016 and 2015: Deferred tax current assets (liabilities): Inventory valuation 30,000 27,000 263A adjustment 98,000 — Accrued vacation 34,000 37,000 Accumulated unrealized (gain)/loss on investments (249,000 ) (921,000 ) Net deferred tax assets (liabilities) $ (87,000 ) $ (857,000 ) Deferred long-term tax assets (liabilities): Depreciation (191,000 ) (115,000 ) Net deferred long-term tax assets (liabilities) $ (191,000 ) $ (115,000 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of financial information relating to industry segments | The following is financial information relating to industry segments: April 30, 2016 2015 Net revenue: Security alarm products $ 8,989,000 $ 10,063,000 Other products 2,251,000 1,840,000 Total net revenue $ 11,240,000 $ 11,903,000 Income from operations: Security alarm products $ 2,689,000 $ 3,005,000 Other products 673,000 549,000 Total income from operations $ 3,362,000 $ 3,554,000 Identifiable assets: Security alarm products $ 4,203,000 $ 3,383,000 Other products 1,142,000 1,450,000 Corporate general 31,323,000 32,023,000 Total assets $ 36,668,000 $ 36,856,000 Depreciation and amortization: Security alarm products $ 16,000 $ 15,000 Other products 123,000 113,000 Corporate general 43,000 21,000 Total depreciation and amortization $ 182,000 $ 149,000 Capital expenditures: Security alarm products $ 24,000 $ 2,000 Other products 33,000 163,000 Corporate general 219,000 21,000 Total capital expenditures $ 276,000 $ 186,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Assets Measured at Fair Value on a Recurring Basis as of April 30, 2016 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 6,383,000 — $ 6,383,000 Corporate Bonds $ 126,000 — — $ 126,000 REITs $ 44,000 — — $ 44,000 Equity Securities $ 15,499,000 — — $ 15,499,000 Money Markets and CDs $ 2,478,000 — — $ 2,478,000 Total fair value of assets measured on a recurring basis $ 18,147,000 $ 6,383,000 — $ 24,530,000 |
Nature of Business and Summar28
Nature of Business and Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |
Apr. 30, 2016USD ($)N | Apr. 30, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts | $ 74 | $ 160 |
Bad debt expense | (2,000) | (4,000) |
Depreciation expense | 182,000 | 149,000 |
Advertising expense | $ 289,000 | $ 257,000 |
Number of reportable segments | N | 2 |
Nature of Business and Summar29
Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,301,000 | $ 4,024,000 |
Accumulated depreciation | (3,545,000) | (3,363,000) |
Net | 756,000 | 661,000 |
Dies, Jigs And Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,685,000 | 1,652,000 |
Dies, Jigs And Molds [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 3 years | |
Dies, Jigs And Molds [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 7 years | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,156,000 | 1,152,000 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 10 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 145,000 | 145,000 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 10 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 214,000 | 189,000 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 32 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 659,000 | 659,000 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 20 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 39 years | |
Automotive [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 76,000 | 74,000 |
Automotive [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 3 years | |
Automotive [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 5 years | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 353,000 | 140,000 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 2 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life in Years | 5 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 13,000 | $ 13,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,948,000 | $ 1,557,000 |
Work in process | 641,000 | 466,000 |
Finished goods | 448,000 | 318,000 |
Gross | 3,037,000 | 2,341,000 |
Less: allowance for obsolete inventory | (73,000) | (66,000) |
Totals | $ 2,964,000 | $ 2,275,000 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Impairment losses | $ 69,000 | $ 25,000 |
Minimum [Member] | ||
Available-for-sale debt securities maturity year | 2016-06 | |
Maximum [Member] | ||
Available-for-sale debt securities maturity year | 2048-11 |
Investments (Details)
Investments (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | $ 23,935,000 | |
Gross Unrealized Gains | 1,324,000 | |
Gross Unrealized Losses | (729,000) | |
Reported Value | 24,530,000 | $ 25,266,000 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 6,489,000 | |
Gross Unrealized Gains | 133,000 | |
Gross Unrealized Losses | (239,000) | |
Reported Value | 6,383,000 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 130,000 | |
Gross Unrealized Losses | (4,000) | |
Reported Value | 126,000 | |
REITs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 42,000 | |
Gross Unrealized Gains | 4,000 | |
Gross Unrealized Losses | (2,000) | |
Reported Value | 44,000 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 14,796,000 | |
Gross Unrealized Gains | 1,187,000 | |
Gross Unrealized Losses | (484,000) | |
Reported Value | 15,499,000 | |
Money Markets and CDs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 2,478,000 | |
Reported Value | $ 2,478,000 |
Investments (Details 1)
Investments (Details 1) | 12 Months Ended |
Apr. 30, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | $ 8,174,000 |
Less than 12 Months, Unrealized Losses | (540,000) |
12 months or greater, Fair Value | 1,807,000 |
12 months or greater, Unrealized Losses | (189,000) |
Total, Fair Value | 9,981,000 |
Total, Unrealized Losses | (729,000) |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | 3,129,000 |
Less than 12 Months, Unrealized Losses | (215,000) |
12 months or greater, Fair Value | 609,000 |
12 months or greater, Unrealized Losses | (24,000) |
Total, Fair Value | 3,738,000 |
Total, Unrealized Losses | (239,000) |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
12 months or greater, Fair Value | 27,000 |
12 months or greater, Unrealized Losses | (4,000) |
Total, Fair Value | 27,000 |
Total, Unrealized Losses | (4,000) |
REITs [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | 27,000 |
Less than 12 Months, Unrealized Losses | (2,000) |
Total, Fair Value | 27,000 |
Total, Unrealized Losses | (2,000) |
Equity Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 12 Months, Fair Value | 5,018,000 |
Less than 12 Months, Unrealized Losses | (323,000) |
12 months or greater, Fair Value | 1,171,000 |
12 months or greater, Unrealized Losses | (161,000) |
Total, Fair Value | 6,189,000 |
Total, Unrealized Losses | $ (484,000) |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details Narrative) - Retirement Savings Plan [Member] - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Description of employees eligibility | 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. | |
Employer matching contribution vesting period | 6 years | |
Employees vesting percentage | 100.00% | |
Employees matching contributions | $ 10,000 | $ 10,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Dividend Rate | 100.00% | |
Series I Noncumulative Preferred Stock [Member] | ||
Description of preferred stock conversion terms | Each share of the Series #1 preferred stock is convertible at the option of the holder into five shares of Class A common stock and is also redeemable at the option of the board of directors at $20 per share. | |
Number of shares issued upon conversion | 5 | |
Redemption Price Per Share | $ 20 | |
Description of preferred stock dividend payment | The holders of the convertible preferred stock shall be entitled to a dividend at a rate up to $1 per share annually. | |
Treasury Stock (Common Class A) [Member] | ||
Purchases of common stock (in shares) | 3,865 | 4,450 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income (Numerator) | ||
Net income | $ 3,086,000 | $ 3,152,000 |
Diluted EPS | $ 3,086,000 | $ 3,152,000 |
Shares (Denominator) | ||
Basic EPS | 5,024,428 | 5,029,343 |
Effect of dilutive Convertible Preferred Stock | 20,500 | 20,500 |
Diluted EPS | 5,044,928 | 5,049,813 |
Per-Share Amount | ||
Basic EPS (in dollars per share) | $ 0.61 | $ 0.63 |
Effect of dilutive Convertible Preferred Stock (in dollars per share) | (0.0025) | (0.0025) |
Diluted EPS (in dollars per share) | $ 0.61 | $ 0.62 |
Commitments, Contingencies, a37
Commitments, Contingencies, and Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Mr. Joel Wiens (Principal Shareholder Of FirsTier Bank) [Member] | ||
Bank deposits | $ 4,304,000 | $ 4,647,000 |
Interest income on bank deposits | 1,500 | 1,500 |
Buildings [Member] | Mr. Bonnie Risk [Member] | ||
Monthly minimum lease payment | 1,535 | |
Total lease expense | $ 18,420 | $ 18,420 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 4,317,000 | $ 4,685,000 |
State income tax deduction | (236,000) | (279,000) |
Interest and dividend income | (638,000) | (617,000) |
Domestic production activities deduction | (312,000) | (347,000) |
Nondeductible expenses and timing differences | 18,000 | 53,000 |
Taxable income | $ 3,149,000 | $ 3,495,000 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at statutory rate | $ 1,805,000 | $ 1,958,000 |
Increase (decrease) income taxes resulting from: | ||
State income taxes | (99,000) | (117,000) |
Interest and dividend income | (267,000) | (258,000) |
Domestic production activities | (130,000) | (145,000) |
Deferred taxes | (21,000) | 59,000 |
Other temporary and permanent differences | (57,000) | 36,000 |
Total Income Tax Expense | $ 1,231,000 | $ 1,533,000 |
Federal tax rate | 34.00% | 34.00% |
State tax rate | 7.80% | 7.80% |
Blended statutory rate | 41.80% | 41.80% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Deferred tax current assets (liabilities): | ||
Inventory valuation | $ 30,000 | $ 27,000 |
263A adjustment | 98,000 | |
Accrued vacation | 34,000 | 37,000 |
Accumulated unrealized (gain)/loss on investments | (249,000) | (921,000) |
Net deferred tax assets (liabilities) | 87,000 | 857,000 |
Deferred long-term tax assets (liabilities): | ||
Depreciation | (191,000) | (115,000) |
Net deferred long-term tax assets (liabilities) | $ 191,000 | $ 115,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Net revenue: | ||
Total net revenue | $ 11,240,000 | $ 11,903,000 |
Income from operations: | ||
Total income from operations | 3,362,000 | 3,554,000 |
Identifiable assets: | ||
Total assets | 36,668,000 | 36,856,000 |
Depreciation and amortization: | ||
Total depreciation and amortization | 182,000 | 149,000 |
Capital expenditures: | ||
Total capital expenditures | 276,000 | 186,000 |
Security Alarm Products [Member] | ||
Net revenue: | ||
Total net revenue | 8,989,000 | 10,063,000 |
Income from operations: | ||
Total income from operations | 2,689,000 | 3,005,000 |
Identifiable assets: | ||
Total assets | 4,203,000 | 3,383,000 |
Depreciation and amortization: | ||
Total depreciation and amortization | 16,000 | 15,000 |
Capital expenditures: | ||
Total capital expenditures | 24,000 | 2,000 |
Other Products [Member] | ||
Net revenue: | ||
Total net revenue | 2,251,000 | 1,840,000 |
Income from operations: | ||
Total income from operations | 673,000 | 549,000 |
Identifiable assets: | ||
Total assets | 1,142,000 | 1,450,000 |
Depreciation and amortization: | ||
Total depreciation and amortization | 123,000 | 113,000 |
Capital expenditures: | ||
Total capital expenditures | 33,000 | 163,000 |
Corporate General [Member] | ||
Identifiable assets: | ||
Total assets | 31,323,000 | 32,023,000 |
Depreciation and amortization: | ||
Total depreciation and amortization | 43,000 | 21,000 |
Capital expenditures: | ||
Total capital expenditures | $ 219,000 | $ 21,000 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Concentration Risk [Line Items] | ||
Cash, FDIC insured amount | $ 250,000 | |
Uninsured amount | $ 4,279,000 | $ 4,452,000 |
Customer Concentration Risk [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 41.00% | 41.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 48.00% | 50.00% |
Customer Concentration Risk [Member] | Sales (Security Switch) [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 80.00% | 85.00% |
Well Fargo Bank [Member] | ||
Concentration Risk [Line Items] | ||
Uninsured amount | $ 1,363,000 | $ 793,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] | Apr. 30, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | $ 24,530,000 |
Municipal Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 6,383,000 |
Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 126,000 |
REITs [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 44,000 |
Equity Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 15,499,000 |
Money Markets and CDs [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 2,478,000 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 18,103,000 |
Level 1 [Member] | Corporate Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 126,000 |
Level 1 [Member] | Equity Securities [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 15,499,000 |
Level 1 [Member] | Money Markets and CDs [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 2,478,000 |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 6,427,000 |
Level 2 [Member] | Municipal Bonds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | 6,383,000 |
Level 2 [Member] | REITs [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total fair value of assets measured on a recurring basis | $ 44,000 |