George Risk Industries (RSKIA) 10-Q 17 Dec 18 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Oct. 31, 2018	Dec. 17, 2018
Document And Entity Information
Entity Registrant Name	GEORGE RISK INDUSTRIES, INC.
Entity Central Index Key	84,112
Document Type	10-Q
Document Period End Date	Oct. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		4,961,447
Trading Symbol	RSKIA
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,019

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Oct. 31, 2018	Apr. 30, 2018
Current Assets:
Cash and cash equivalents	$ 4,090,000	$ 4,294,000
Investments and securities	25,221,000	26,346,000
Accounts receivable:
Trade, net of $12,588 and $6,651 doubtful account allowance	2,516,000	2,545,000
Other	4,000	2,000
Income tax overpayment	844,000	747,000
Inventories, net	3,683,000	3,267,000
Prepaid expenses	360,000	603,000
Total Current Assets	36,718,000	37,804,000
Property and Equipment, net, at cost	971,000	1,076,000
Other Assets
Investment in Limited Land Partnership, at cost	293,000	293,000
Projects in process	8,000
Other	73,000	6,000
Total Other Assets	374,000	299,000
Intangible Assets, net	1,701,000	1,763,000
TOTAL ASSETS	39,764,000	40,942,000
Current Liabilities
Accounts payable, trade	147,000	336,000
Dividends payable	1,714,000	1,580,000
Accrued expenses:
Payroll and other expenses	349,000	329,000
Property taxes		12,000
Total Current Liabilities	2,210,000	2,257,000
Long-Term Liabilities
Deferred income taxes	806,000	955,000
Total Long-Term Liabilities	806,000	955,000
Total Liabilities	3,016,000	3,212,000
Commitments and Contingencies
Stockholders' Equity
Convertible preferred stock, 1,000,000 shares authorized, Series 1-noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding	99,000	99,000
Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding	850,000	850,000
Additional paid-in capital	1,934,000	1,934,000
Accumulated other comprehensive income	1,821,000	2,249,000
Retained earnings	36,246,000	36,746,000
Less: treasury stock, 3,541,234 and 3,534,784 shares, at cost	(4,202,000)	(4,148,000)
Total Stockholders' Equity	36,748,000	37,730,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 39,764,000	$ 40,942,000

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Oct. 31, 2018	Apr. 30, 2018
Allowance for doubtful account receivable	$ 12,588	$ 6,651
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	8,502,881	8,502,881
Common stock, shares outstanding	8,502,881	8,502,881
Treasury stock, shares	3,541,234	3,534,784
Series 1 Noncumulative Preferred Stock [Member]
Convertible preferred stock, shares authorized	25,000	25,000
Convertible preferred stock, stated value	$ 20	$ 20
Convertible preferred stock, shares issued	4,100	4,100
Convertible preferred stock, shares outstanding	4,100	4,100

Condensed Income Statements (Un

Condensed Income Statements (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Income Statement [Abstract]
Net Sales	$ 3,667,000	$ 3,089,000	$ 7,096,000	$ 5,337,000
Less: Cost of Goods Sold	(1,893,000)	(1,416,000)	(3,695,000)	(2,511,000)
Gross Profit	1,774,000	1,673,000	3,401,000	2,826,000
Operating Expenses
General and Administrative	331,000	290,000	616,000	519,000
Sales	525,000	443,000	1,080,000	859,000
Engineering	28,000	35,000	37,000	48,000
Rent Paid to Related Parties	4,000	4,000	9,000	9,000
Total Operating Expenses	888,000	772,000	1,742,000	1,435,000
Income From Operations	886,000	901,000	1,659,000	1,391,000
Other Income (Expense)
Other	6,000	1,000	8,000	3,000
Dividend and Interest Income	152,000	155,000	345,000	434,000
Gain (Loss) on Investments	(27,000)	9,000	(94,000)	(28,000)
Gain (Loss) on Sale of Assets				4,000
Total Other Income (Expense)	131,000	165,000	259,000	413,000
Income Before Provisions for Income Taxes	1,017,000	1,066,000	1,918,000	1,804,000
Provisions for Income Taxes:
Current Expense	(261,000)	(360,000)	(508,000)	(572,000)
Deferred Tax Benefit (Expense)	12,000	16,000	(24,000)	8,000
Total Income Tax Expense	(249,000)	(344,000)	(532,000)	(564,000)
Net Income	768,000	722,000	1,386,000	1,240,000
Cash Dividends Common Stock	$ 1,886,000	$ 1,780,000	$ 1,886,000	$ 1,780,000
Income Per Share of Common Stock Basic	$ 0.15	$ 0.15	$ 0.28	$ 0.25
Income Per Share of Common Stock Diluted	$ 0.15	$ 0.15	$ 0.28	$ 0.25
Weighted Average Number of Common Shares Outstanding Basic	4,962,177	4,953,070	4,964,879	4,949,081
Weighted Average Number of Common Shares Outstanding Diluted	4,982,677	4,973,570	4,985,379	4,969,581

Condensed Income Statements (Pa

Condensed Income Statements (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Income Statement [Abstract]
Common stock, dividends, per share	$ 0.38	$ 0.36	$ 0.38	$ 0.36

Condensed Statement of Comprehe

Condensed Statement of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 768,000	$ 722,000	$ 1,386,000	$ 1,240,000
Other Comprehensive Income, net of tax Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period	(1,245,000)	709,000	(638,000)	1,338,000
Reclassification adjustment for gains (losses) included in net income	(7,000)	(32,000)	37,000	(117,000)
Income tax benefit (expense) related to other comprehensive income	361,000	(283,000)	173,000	(510,000)
Other Comprehensive Income	(891,000)	394,000	(428,000)	711,000
Comprehensive Income (Loss)	$ (123,000)	$ 1,116,000	$ 958,000	$ 1,951,000

Condensed Statement of Cash Flo

Condensed Statement of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,386,000	$ 1,240,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	167,000	86,000
(Gain) loss on sale of investments	62,000	6,000
Impairments on investments	32,000	23,000
Reserve for bad debts	6,000
Reserve for obsolete inventory	18,000
Deferred income taxes	(24,000)	8,000
(Gain) loss on sale of assets		(4,000)
(Increase) decrease in:
Accounts receivable	23,000	(364,000)
Inventories	(435,000)	(1,290,000)
Prepaid expenses and other	168,000	(139,000)
Other receivables	(2,000)	3,000
Income tax overpayment	(97,000)	127,000
Increase (decrease) in:
Accounts payable	(189,000)	98,000
Accrued expenses	8,000	(33,000)
Asset acquisition payable		2,000,000
Net cash provided by (used in) operating activities	1,172,000	1,744,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		4,000
(Purchase) of property and equipment		(314,000)
Proceeds from sale of marketable securities	754,000	2,002,000
(Purchase) of marketable securities	(324,000)	(324,000)
(Purchase) of intangible assets		(1,624,000)
Net cash provided by (used in) investing activities	430,000	(256,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock	(54,000)	(3,000)
Dividends paid	(1,752,000)	(1,617,000)
Net cash provided by (used in) financing activities	(1,806,000)	(1,620,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(204,000)	(132,000)
Cash and Cash Equivalents, beginning of period	4,294,000	6,456,000
Cash and Cash Equivalents, end of period	4,090,000	6,324,000
Supplemental Disclosure for Cash Flow Information:
Income taxes	600,000	440,000
Interest paid	1,000	0
Supplemental Disclosure for Noncash Investing and Financing Information:
Issuance of treasury stock as part of asset acquisition		$ 200,000

Unaudited Interim Financial Sta

Unaudited Interim Financial Statements	6 Months Ended
	Oct. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Unaudited Interim Financial Statements	Note 1 Unaudited Interim Financial Statements The accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, 2018 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. Accounting Estimates Recently Issued Accounting Pronouncements — In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income (loss) are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income (loss) to retained earnings (accumulated deficit) for stranded income tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The amendments in this ASU also require certain disclosures about stranded income tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company has not yet adopted ASU 2018-02 and is currently evaluating the potential impact of adopting the applicable guidance on the Company’s financial statements and related disclosures. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in ASU 2018-09 do not require transition guidance and were effective upon issuance of ASU 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. We are currently evaluating the potential impact of adopting the applicable guidance, however we do not believe that the adoption of ASU 2018-09 will have a material impact on the Company’s financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions. In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective or fiscal years ending after December 15, 2020 and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

Investments

Investments	6 Months Ended
	Oct. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Investments	Note 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 funds. The investments in securities are classified as available-for-sale securities and are reported at fair value. Available-for-sale investments in debt securities mature between June 2019 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 October 31, 2018 and April 30, 2018, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair October 31, 2018 Basis Gains Losses Value Municipal bonds $ 5,599,000 39,000 (110,000 ) 5,528,000 Corporate bonds 56,000 1,000 — 57,000 REITs 89,000 — (10,000 ) 79,000 Equity securities 16,145,000 3,184,000 (546,000 ) 18,783,000 Money markets and CDs 774,000 — — 774,000 Total $ 22,663,000 $ 3,224,000 $ (666,000 ) $ 25,221,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2018 Basis Gains Losses Value Municipal bonds $ 5,984,000 $ 66,000 $ (309,000 ) $ 5,741,000 Corporate bonds 129,000 2,000 — 131,000 REITs 110,000 3,000 (7,000 ) 106,000 Equity securities 15,930,000 3,714,000 (311,000 ) 19,333,000 Money markets and CDs 1,035,000 — — 1,035,000 Total $ 23,188,000 $ 3,785,000 $ (627,000 ) $ 26,346,000 The Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded an impairment loss of $32,000 for both the quarter and six-months ended October 31, 2018. As for the corresponding periods last year, management recorded an impairment loss of $23,000 for both the quarter and six-months ended October 31, 2017. 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 October 31, 2018 and April 30, 2018, respectively. Unrealized Loss Breakdown by Investment Type at October 31, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 3,759,000 $ (51,000 ) $ 543,000 $ (59,000 ) $ 4,302,000 $ (110,000 ) REITs 31,000 (8,000 ) 48,000 (2,000 ) 79,000 (10,000 ) Equity securities 4,886,000 (309,000 ) 798,000 (237,000 ) 5,684,000 (546,000 ) Total $ 8,676,000 $ (368,000 ) $ 1,389,000 (298,000 ) 10,065,000 $ (666,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 960,000 $ (200,000 ) $ 2,385,000 $ (109,000 ) $ 3,345,000 $ (309,000 ) REITs 55,000 (6,000 ) 27,000 (1,000 ) 82,000 (7,000 ) Equity securities 2,545,000 (127,000 ) 823,000 (184,000 ) 3,368,000 (311,000 ) Total $ 3,560,000 $ (333,000 ) $ 3,235,000 $ (294,000 ) $ 6,795,000 $ (627,000 ) 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 October 31, 2018. 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 October 31, 2018.

Inventories

Inventories	6 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Note 3 Inventories Inventories at October 31, 2018 and April 30, 2018 consisted of the following: October 31, 2018 April 30, 2018 Raw materials $ 2,781,000 $ 2,450,000 Work in process 489,000 444,000 Finished goods 522,000 463,000 3,792,000 3,357,000 Less: allowance for obsolete inventory (109,000 ) (90,000 ) Totals $ 3,683,000 $ 3,267,000

Business Segments

Business Segments	6 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
Business Segments	Note 4 Business Segments The following is financial information relating to industry segments: Three months Six months Three months Six months ended ended ended ended Oct 31, 2018 Oct 31, 2018 Oct 31, 2017 Oct 31, 2017 Net revenue: Security alarm products $ 2,852,000 $ 5,371,000 $ 2,170,000 $ 3,967,000 Cable & wiring tools 649,000 1,351,000 — — Other products 166,000 374,000 919,000 1,370,000 Total net revenue $ 3,667,000 $ 7,096,000 $ 3,089,000 $ 5,337,000 Income from operations: Security alarm products $ 689,000 $ 1,291,000 $ 670,000 $ 1,034,000 Cable & wiring tools 157,000 293,000 — — Other products 40,000 75,000 231,000 357,000 Total income from operations $ 886,000 $ 1,659,000 $ 901,000 $ 1,391,000 Depreciation and amortization: Security alarm products $ 10,000 $ 20,000 $ 10,000 $ 17,000 Cable & wiring tools 31,000 62,000 — — Other products 28,000 55,000 21,000 43,000 Corporate general 15,000 30,000 14,000 26,000 Total depreciation and amortization $ 84,000 $ 167,000 $ 45,000 $ 86,000 Capital expenditures: Security alarm products $ — $ — $ 50,000 $ 260,000 Cable & wiring tools — — — — Other products — — — — Corporate general — — 56,000 56,000 Total capital expenditures $ — $ — $ 106,000 $ 316,000 October 31, 2018 April 30, 2018 Identifiable assets: Security alarm products $ 4,683,000 $ 4,564,000 Cable & wiring tools 2,743,000 2,347,000 Other products 1,402,000 1,521,000 Corporate general 30,936,000 32,510,000 Total assets $ 39,764,000 $ 40,942,000

Earnings Per Share

Earnings Per Share	6 Months Ended
	Oct. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Note 5 Earnings per Share Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are: For the three months ended October 31, 2018 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 768,000 Basic EPS $ 768,000 4,962,177 $ .1548 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0007 ) Diluted EPS $ 768,000 4,982,677 $ .1541 For the six months ended October 31, 2018 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 1,386,000 Basic EPS $ 1,386,000 4,964,879 $ .2792 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0012 ) Diluted EPS $ 1,386,000 4,985,379 $ .2780 For the three months ended October 31, 2017 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 722,000 Basic EPS $ 722,000 4,953,070 $ .1458 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0006 ) Diluted EPS $ 722,000 4,973,570 $ .1452 For the six months ended October 31, 2017 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 1,240,000 Basic EPS $ 1,240,000 4,949,081 $ .2506 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0011 ) Diluted EPS $ 1,240,000 4,969,581 $ .2495

Retirement Benefit Plan

Retirement Benefit Plan	6 Months Ended
	Oct. 31, 2018
Retirement Benefits [Abstract]
Retirement Benefit Plan	Note 6 Retirement Benefit Plan On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $3,000 were paid during both the quarters ending October 31, 2018 and 2017. Likewise, the Company paid matching contributions of approximately $5,000 during both the six-month periods ending October 31, 2018 and 2017.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Oct. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7 Fair Value Measurements Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Investments and Marketable Securities As of October 31, 2018, our investments consisted of money markets, publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the investments is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2. Fair Value Hierarchy The following table sets forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Assets Measured at Fair Value on a Recurring Basis as of October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,528,000 $ — $ 5,528,000 Corporate Bonds 57,000 — — 57,000 REITs — 79,000 — 79,000 Equity Securities 18,783,000 — — 18,783,000 Money Markets and CDs 774,000 — — 774,000 Total fair value of assets measured on a recurring basis $ 19,614,000 $ 5,607,000 $ — $ 25,221,000 Assets Measured at Fair Value on a Recurring Basis as of April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,741,000 $ — $ 5,741,000 Corporate Bonds 131,000 — — 131,000 REITs — 106,000 — 106,000 Equity Securities 19,333,000 — — 19,333,000 Money Markets and CDs 1,035,000 — — 1,035,000 Total fair value of assets measured on a recurring basis $ 20,499,000 $ 5,847,000 $ — $ 26,346,000

Subsequent Events

Subsequent Events	6 Months Ended
	Oct. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 8 Subsequent Events None

Investments (Tables)

Investments (Tables)	6 Months Ended
	Oct. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of Investments	As of October 31, 2018 and April 30, 2018, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair October 31, 2018 Basis Gains Losses Value Municipal bonds $ 5,599,000 39,000 (110,000 ) 5,528,000 Corporate bonds 56,000 1,000 — 57,000 REITs 89,000 — (10,000 ) 79,000 Equity securities 16,145,000 3,184,000 (546,000 ) 18,783,000 Money markets and CDs 774,000 — — 774,000 Total $ 22,663,000 $ 3,224,000 $ (666,000 ) $ 25,221,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2018 Basis Gains Losses Value Municipal bonds $ 5,984,000 $ 66,000 $ (309,000 ) $ 5,741,000 Corporate bonds 129,000 2,000 — 131,000 REITs 110,000 3,000 (7,000 ) 106,000 Equity securities 15,930,000 3,714,000 (311,000 ) 19,333,000 Money markets and CDs 1,035,000 — — 1,035,000 Total $ 23,188,000 $ 3,785,000 $ (627,000 ) $ 26,346,000
Schedule of Unrealized Loss Breakdown by Investment	The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at October 31, 2018 and April 30, 2018, respectively. Unrealized Loss Breakdown by Investment Type at October 31, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 3,759,000 $ (51,000 ) $ 543,000 $ (59,000 ) $ 4,302,000 $ (110,000 ) REITs 31,000 (8,000 ) 48,000 (2,000 ) 79,000 (10,000 ) Equity securities 4,886,000 (309,000 ) 798,000 (237,000 ) 5,684,000 (546,000 ) Total $ 8,676,000 $ (368,000 ) $ 1,389,000 (298,000 ) 10,065,000 $ (666,000 ) Unrealized Loss Breakdown by Investment Type at April 30, 2018 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 960,000 $ (200,000 ) $ 2,385,000 $ (109,000 ) $ 3,345,000 $ (309,000 ) REITs 55,000 (6,000 ) 27,000 (1,000 ) 82,000 (7,000 ) Equity securities 2,545,000 (127,000 ) 823,000 (184,000 ) 3,368,000 (311,000 ) Total $ 3,560,000 $ (333,000 ) $ 3,235,000 $ (294,000 ) $ 6,795,000 $ (627,000 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Oct. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories at October 31, 2018 and April 30, 2018 consisted of the following: October 31, 2018 April 30, 2018 Raw materials $ 2,781,000 $ 2,450,000 Work in process 489,000 444,000 Finished goods 522,000 463,000 3,792,000 3,357,000 Less: allowance for obsolete inventory (109,000 ) (90,000 ) Totals $ 3,683,000 $ 3,267,000

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Oct. 31, 2018
Segment Reporting [Abstract]
Schedule of Financial Information Relating to Industry Segments	The following is financial information relating to industry segments: Three months Six months Three months Six months ended ended ended ended Oct 31, 2018 Oct 31, 2018 Oct 31, 2017 Oct 31, 2017 Net revenue: Security alarm products $ 2,852,000 $ 5,371,000 $ 2,170,000 $ 3,967,000 Cable & wiring tools 649,000 1,351,000 — — Other products 166,000 374,000 919,000 1,370,000 Total net revenue $ 3,667,000 $ 7,096,000 $ 3,089,000 $ 5,337,000 Income from operations: Security alarm products $ 689,000 $ 1,291,000 $ 670,000 $ 1,034,000 Cable & wiring tools 157,000 293,000 — — Other products 40,000 75,000 231,000 357,000 Total income from operations $ 886,000 $ 1,659,000 $ 901,000 $ 1,391,000 Depreciation and amortization: Security alarm products $ 10,000 $ 20,000 $ 10,000 $ 17,000 Cable & wiring tools 31,000 62,000 — — Other products 28,000 55,000 21,000 43,000 Corporate general 15,000 30,000 14,000 26,000 Total depreciation and amortization $ 84,000 $ 167,000 $ 45,000 $ 86,000 Capital expenditures: Security alarm products $ — $ — $ 50,000 $ 260,000 Cable & wiring tools — — — — Other products — — — — Corporate general — — 56,000 56,000 Total capital expenditures $ — $ — $ 106,000 $ 316,000 October 31, 2018 April 30, 2018 Identifiable assets: Security alarm products $ 4,683,000 $ 4,564,000 Cable & wiring tools 2,743,000 2,347,000 Other products 1,402,000 1,521,000 Corporate general 30,936,000 32,510,000 Total assets $ 39,764,000 $ 40,942,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Oct. 31, 2018
Earnings Per Share [Abstract]
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: For the three months ended October 31, 2018 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 768,000 Basic EPS $ 768,000 4,962,177 $ .1548 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0007 ) Diluted EPS $ 768,000 4,982,677 $ .1541 For the six months ended October 31, 2018 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 1,386,000 Basic EPS $ 1,386,000 4,964,879 $ .2792 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0012 ) Diluted EPS $ 1,386,000 4,985,379 $ .2780 For the three months ended October 31, 2017 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 722,000 Basic EPS $ 722,000 4,953,070 $ .1458 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0006 ) Diluted EPS $ 722,000 4,973,570 $ .1452 For the six months ended October 31, 2017 Income Shares Per-share (Numerator) (Denominator) Amount Net Income $ 1,240,000 Basic EPS $ 1,240,000 4,949,081 $ .2506 Effect of dilutive securities: Convertible preferred stock — 20,500 (.0011 ) Diluted EPS $ 1,240,000 4,969,581 $ .2495

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Oct. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value On Recurring Basis	As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Assets Measured at Fair Value on a Recurring Basis as of October 31, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,528,000 $ — $ 5,528,000 Corporate Bonds 57,000 — — 57,000 REITs — 79,000 — 79,000 Equity Securities 18,783,000 — — 18,783,000 Money Markets and CDs 774,000 — — 774,000 Total fair value of assets measured on a recurring basis $ 19,614,000 $ 5,607,000 $ — $ 25,221,000 Assets Measured at Fair Value on a Recurring Basis as of April 30, 2018 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,741,000 $ — $ 5,741,000 Corporate Bonds 131,000 — — 131,000 REITs — 106,000 — 106,000 Equity Securities 19,333,000 — — 19,333,000 Money Markets and CDs 1,035,000 — — 1,035,000 Total fair value of assets measured on a recurring basis $ 20,499,000 $ 5,847,000 $ — $ 26,346,000

Investments (Details Narrative)

Investments (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Impairment loss	$ 32,000	$ 23,000	$ 32,000	$ 23,000
Minimum [Member]
Available-for-sale debt securities maturity year			2019-06
Maximum [Member]
Available-for-sale debt securities maturity year			2048-11

Investments - Schedule of Inves

Investments - Schedule of Investments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Oct. 31, 2018	Apr. 30, 2018
Cost Basis	$ 22,663,000	$ 23,188,000
Gross Unrealized Gains	3,224,000	3,785,000
Gross Unrealized Losses	(666,000)	(627,000)
Fair Value	25,221,000	26,346,000
Municipal Bonds [Member]
Cost Basis	5,599,000	5,984,000
Gross Unrealized Gains	39,000	66,000
Gross Unrealized Losses	(110,000)	(309,000)
Fair Value	5,528,000	5,741,000
Corporate Bonds [Member]
Cost Basis	56,000	129,000
Gross Unrealized Gains	1,000	2,000
Gross Unrealized Losses
Fair Value	57,000	131,000
REITs [Member]
Cost Basis	89,000	110,000
Gross Unrealized Gains		3,000
Gross Unrealized Losses	(10,000)	(7,000)
Fair Value	79,000	106,000
Equity Securities [Member]
Cost Basis	16,145,000	15,930,000
Gross Unrealized Gains	3,184,000	3,714,000
Gross Unrealized Losses	(546,000)	(311,000)
Fair Value	18,783,000	19,333,000
Money Markets and CDs [Member]
Cost Basis	774,000	1,035,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 774,000	$ 1,035,000

Investments - Schedule of Unrea

Investments - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($)	Oct. 31, 2018	Apr. 30, 2018
Less than 12 months Fair Value	$ 8,676,000	$ 3,560,000
Less than 12 months Unrealized Loss	(368,000)	(333,000)
12 months or greater Fair Value	1,389,000	3,235,000
12 months or greater Unrealized Loss	(298,000)	(294,000)
Total Fair Value	10,065,000	6,795,000
Total Unrealized Loss	(666,000)	(627,000)
Municipal Bonds [Member]
Less than 12 months Fair Value	3,759,000	960,000
Less than 12 months Unrealized Loss	(51,000)	(200,000)
12 months or greater Fair Value	543,000	2,385,000
12 months or greater Unrealized Loss	(59,000)	(109,000)
Total Fair Value	4,302,000	3,345,000
Total Unrealized Loss	(110,000)	(309,000)
REITs [Member]
Less than 12 months Fair Value	31,000	55,000
Less than 12 months Unrealized Loss	(8,000)	(6,000)
12 months or greater Fair Value	48,000	27,000
12 months or greater Unrealized Loss	(2,000)	(1,000)
Total Fair Value	79,000	82,000
Total Unrealized Loss	(10,000)	(7,000)
Equity Securities [Member]
Less than 12 months Fair Value	4,886,000	2,545,000
Less than 12 months Unrealized Loss	(309,000)	(127,000)
12 months or greater Fair Value	798,000	823,000
12 months or greater Unrealized Loss	(237,000)	(184,000)
Total Fair Value	5,684,000	3,368,000
Total Unrealized Loss	$ (546,000)	$ (311,000)

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Oct. 31, 2018	Apr. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,781,000	$ 2,450,000
Work in process	489,000	444,000
Finished goods	522,000	463,000
Inventory gross	3,792,000	3,357,000
Less: allowance for obsolete inventory	(109,000)	(90,000)
Totals	$ 3,683,000	$ 3,267,000

Business Segments - Schedule of

Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017	Apr. 30, 2018
Total net revenue	$ 3,667,000	$ 3,089,000	$ 7,096,000	$ 5,337,000
Total income from operations	886,000	901,000	1,659,000	1,391,000
Total depreciation and amortization	84,000	45,000	167,000	86,000
Total capital expenditures		106,000		316,000
Total assets	39,764,000		39,764,000		$ 40,942,000
Security Alarm Products [Member]
Total net revenue	2,852,000	2,170,000	5,371,000	3,967,000
Total income from operations	689,000	670,000	1,291,000	1,034,000
Total depreciation and amortization	10,000	10,000	20,000	17,000
Total capital expenditures		50,000		260,000
Total assets	4,683,000		4,683,000		4,564,000
Cable & Wiring Tools [Member]
Total net revenue	649,000		1,351,000
Total income from operations	157,000		293,000
Total depreciation and amortization	31,000		62,000
Total capital expenditures
Total assets	2,743,000		2,743,000		2,347,000
Other Products [Member]
Total net revenue	166,000	919,000	374,000	1,370,000
Total income from operations	40,000	231,000	75,000	357,000
Total depreciation and amortization	28,000	21,000	55,000	43,000
Total capital expenditures
Total assets	1,402,000		1,402,000		1,521,000
Corporate General [Member]
Total depreciation and amortization	15,000	14,000	30,000	26,000
Total capital expenditures		$ 56,000		$ 56,000
Total assets	$ 30,936,000		$ 30,936,000		$ 32,510,000

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Earnings Per Share [Abstract]
Net Income	$ 768,000	$ 722,000	$ 1,386,000	$ 1,240,000
Basic EPS	$ 768,000	$ 722,000	$ 1,386,000	$ 1,240,000
Basic EPS, shares	4,962,177	4,953,070	4,964,879	4,949,081
Basic EPS, per share	$ 0.15	$ 0.15	$ 0.28	$ 0.25
Effect of dilutive securities convertible preferred Stock
Effect of dilutive securities convertible preferred Stock, shares	20,500	20,500	20,500	20,500
Effect of dilutive securities convertible preferred Stock, per share	$ (0.0007)	$ (0.0006)	$ (0.0012)	$ (0.0011)
Diluted EPS	$ 768,000	$ 722,000	$ 1,386,000	$ 1,240,000
Diluted EPS, shares	4,982,677	4,973,570	4,985,379	4,969,581
Diluted EPS, per share	$ 0.15	$ 0.15	$ 0.28	$ 0.25

Retirement Benefit Plan (Detail

Retirement Benefit Plan (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2018	Oct. 31, 2017	Oct. 31, 2018	Oct. 31, 2017
Retirement Benefits [Abstract]
Employees matching contributions	$ 3,000	$ 3,000	$ 5,000	$ 5,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value On Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Oct. 31, 2018	Apr. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	$ 25,221,000	$ 26,346,000
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,528,000	5,741,000
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	57,000	131,000
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	79,000	106,000
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	18,783,000	19,333,000
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	774,000	1,035,000
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	19,614,000	20,499,000
Level 1 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 1 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	57,000	131,000
Level 1 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	18,783,000	19,333,000
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	774,000	1,035,000
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,607,000	5,847,000
Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,528,000	5,741,000
Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 2 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	79,000	106,000
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 2 [Member] | Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis