Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Aug. 06, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | GEORGE RISK INDUSTRIES, INC. | |
Entity Central Index Key | 0000084112 | |
Document Type | 10-K/A | |
Document Period End Date | Apr. 30, 2019 | |
Amendment Flag | true | |
Amendment Description | On August 13, 2019, George Risk Industries, Inc. (the "Company") filed its Annual Report on Form 10-K for the fiscal year ended April 30, 2019 (the "Original Form 10-K" or "Original Filing"). This Amendment No. 1 amends the Original Form 10-K to give effect to the phase in of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") in the financial statements included in the Original Filing. All amendments and restatements to the financial statements are non-cash in nature. Restatement As further discussed in Note 13 to our financial statements in Part I, Item 8, "Financial Statements" of this Amendment, on March 4, 2020, we concluded that we would restate our previously issued financial statements for the fiscal year ended April 30, 2019, as set forth in the Original Filing in connection with our failure to give effect to the phase in of ASU 2016-01 in the financial statements included in the Original Form 10-K. Amendment The purpose of this Amendment is to restate our previously issued financial statements and related disclosures for the fiscal year ended April 30, 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" to reflect the correction of the error described above. Except as expressly set forth herein, including in the notes to the financial statements, this Amendment does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Filing. Items Amended in this Filing For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied: Part I, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 8. Financial Statements | |
Current Fiscal Year End Date | --04-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 16,623,000 | |
Entity Common Stock, Shares Outstanding | 4,952,310 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2019 |
Balance Sheets
Balance Sheets - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 4,873,000 | $ 4,294,000 |
Investments and securities | 27,291,000 | 26,346,000 |
Accounts receivable: | ||
Trade, net of $9,321 and $6,651 doubtful account allowance for 2019 and 2018, respectively | 2,696,000 | 2,545,000 |
Other | 6,000 | 2,000 |
Income tax overpayment | 259,000 | 747,000 |
Inventories, net | 4,583,000 | 3,267,000 |
Prepaid expenses | 282,000 | 603,000 |
Total Current Assets | 39,990,000 | 37,804,000 |
Property and Equipment, at cost, net | 984,000 | 1,076,000 |
Other Assets | ||
Investment in Limited Land Partnership, at cost | 293,000 | 293,000 |
Projects in process | 117,000 | |
Other | 3,000 | 6,000 |
Total Other Assets | 413,000 | 299,000 |
Intangible Assets, net | 1,640,000 | 1,763,000 |
TOTAL ASSETS | 43,027,000 | 40,942,000 |
Current Liabilities | ||
Accounts payable, trade | 206,000 | 336,000 |
Dividends payable | 1,714,000 | 1,580,000 |
Accrued expenses: | ||
Payroll and related expenses | 356,000 | 329,000 |
Property taxes | 12,000 | |
Total Current Liabilities | 2,276,000 | 2,257,000 |
Long-Term Liabilities | ||
Deferred income taxes | 1,198,000 | 955,000 |
Total Long-Term Liabilities | 1,198,000 | 955,000 |
Total Liabilities | 3,474,000 | 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 | 14,000 | 2,249,000 |
Retained earnings | 40,883,000 | 36,746,000 |
Less: treasury stock, 3,544,271 and 3,534,784 shares, at cost | (4,227,000) | (4,148,000) |
Total Stockholders' Equity | 39,553,000 | 37,730,000 |
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY | $ 43,027,000 | $ 40,942,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Allowance for doubtful account receivable | $ 9,321 | $ 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 | 3,544,271 | 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 |
Income Statements
Income Statements - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||
Net Sales - from contracts with customers | $ 14,126,000 | $ 11,931,000 |
Less: Cost of Goods Sold | (7,326,000) | (6,316,000) |
Gross Profit | 6,800,000 | 5,615,000 |
Operating Expenses: | ||
General and Administrative | 1,235,000 | 1,127,000 |
Sales | 2,167,000 | 1,888,000 |
Engineering | 74,000 | 90,000 |
Rent Paid to Related Parties | 18,000 | 18,000 |
Total Operating Expenses | 3,494,000 | 3,123,000 |
Income From Operations | 3,306,000 | 2,492,000 |
Other Income (Expense) | ||
Other | 11,000 | (112,000) |
Interest Expense | (1,000) | |
Dividend and Interest Income | 981,000 | 960,000 |
Unrealized Gain (Loss) on Equity Securities | 444,000 | |
Gain (Loss) on Sale of Investment | 61,000 | 200,000 |
Gain (Loss) on Sale of Assets | (10,000) | 6,000 |
Total Other Income | 1,486,000 | 1,054,000 |
Income Before Provisions for Income Taxes | 4,792,000 | 3,546,000 |
Provisions for Income Taxes | ||
Current Expense | 1,024,000 | 972,000 |
Deferred tax (benefit) expense | 170,000 | 28,000 |
Total Income Tax Expense | 1,194,000 | 1,000,000 |
Net Income | $ 3,598,000 | $ 2,546,000 |
Earnings Per Share of Common Stock | ||
Basic | $ 0.73 | $ 0.51 |
Diluted | $ 0.72 | $ 0.51 |
Weighted Average Number of Common Shares Outstanding (Basic) | 3,598,000 | 4,958,769 |
Weighted Average Number of Common Shares Outstanding (Diluted) | 4,983,047 | 4,977,584 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 3,598,000 | $ 2,546,000 |
Unrealized gain (loss) on securities: | ||
Unrealized holding gains (losses) arising during period | 265,000 | 1,351,000 |
Less: reclassification adjustment for (gains) losses included in net income | (2,424,000) | (321,000) |
Income tax expense related to other comprehensive income | (76,000) | (20,000) |
Other Comprehensive Income (Loss) | (2,235,000) | 1,010,000 |
Comprehensive Income | $ 1,363,000 | $ 3,556,000 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | 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 |
Balance at Apr. 30, 2017 | $ 99,000 | $ 850,000 | $ 1,736,000 | $ (4,140,000) | $ 1,239,000 | $ 35,981,000 | $ 35,765,000 |
Balance, shares at Apr. 30, 2017 | 4,100 | 8,502,881 | 3,557,606 | ||||
Purchases of common stock | $ (10,000) | (10,000) | |||||
Purchases of common stock, shares | 1,275 | ||||||
Shares given as part of LSDI asset acquisition | 198,000 | $ 2,000 | 200,000 | ||||
Shares given as part of LSDI asset acquisition, shares | (24,097) | ||||||
Dividend declared at $0.36 per common share outstanding | (1,781,000) | (1,781,000) | |||||
Unrealized gain (loss), net of tax effect | 1,010,000 | 1,010,000 | |||||
Net Income | 2,546,000 | 2,546,000 | |||||
Balance at Apr. 30, 2018 | $ 99,000 | $ 850,000 | 1,934,000 | $ (4,148,000) | 2,249,000 | 36,746,000 | 37,730,000 |
Balance, shares at Apr. 30, 2018 | 4,100 | 8,502,881 | 3,534,784 | ||||
Purchases of common stock | $ (79,000) | (79,000) | |||||
Purchases of common stock, shares | 9,487 | ||||||
Dividend declared at $0.36 per common share outstanding | (1,885,000) | (1,885,000) | |||||
Impact of adoption of ASU 2016-01 | 189,000 | 189,000 | |||||
Unrealized gain (loss), net of tax effect | (2,424,000) | 2,424,000 | |||||
Net Income | 3,598,000 | 3,598,000 | |||||
Balance at Apr. 30, 2019 | $ 99,000 | $ 850,000 | $ 1,934,000 | $ (4,227,000) | $ 14,000 | $ 40,883,000 | $ 39,553,000 |
Balance, shares at Apr. 30, 2019 | 4,100 | 8,502,881 | 3,544,271 |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend declared for per common share outstanding | $ 0.38 | $ 0.36 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 3,598,000 | $ 2,546,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 354,000 | 257,000 |
(Gain) loss on sale of investments | (129,000) | (231,000) |
Impairment on investments | 68,000 | 31,000 |
Unrealized (gain) loss on equity investments | (444,000) | |
Bad debt expense | 3,000 | 3,000 |
Reserve for obsolete inventory | 17,000 | |
(Gain) loss on sale of assets | 10,000 | (6,000) |
Deferred income taxes | 170,000 | 28,000 |
(Increase) decrease in: | ||
Accounts receivable | (155,000) | (701,000) |
Inventories | (1,316,000) | (980,000) |
Prepaid expenses | 207,000 | (403,000) |
Other receivables | (5,000) | 2,000 |
Income tax overpayment | 489,000 | (494,000) |
Increase (decrease) in: | ||
Accounts payable | (130,000) | 268,000 |
Accrued expense | 15,000 | 33,000 |
Net cash provided by (used in) operating activities | 2,735,000 | 370,000 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of assets | 5,000 | 6,000 |
(Purchase) of property and equipment | (154,000) | (533,000) |
Proceeds from sale of marketable securities | 766,000 | 2,033,000 |
(Purchase) of marketable securities | (942,000) | (767,000) |
(Purchase) of intangible asset | (1,624,000) | |
(Purchase) of long-term investment | (20,000) | |
Net cash provided by (used in) investing activities | (325,000) | (905,000) |
Cash Flows From Financing Activities: | ||
(Purchase) of treasury stock | (79,000) | (10,000) |
Dividends paid | (1,752,000) | (1,617,000) |
Net cash provided by (used in) financing activities | (1,831,000) | (1,627,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 579,000 | (2,162,000) |
Cash and Cash Equivalents, beginning of period | 4,294,000 | 6,456,000 |
Cash and Cash Equivalents, end of period | 4,873,000 | 4,294,000 |
Supplemental Disclosure for Cash Flow Information: | ||
Income taxes paid | 1,200,000 | 1,760,000 |
Interest expense | 1,000 | |
Cash receipts for: | ||
Income taxes | $ 589,000 | $ 294,000 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | 1. Nature of Business and Summary of Significant Accounting Policies George Risk Industries, Inc. (GRI or the Company) was incorporated in 1967 in Colorado. The Company is presently engaged in the design, manufacture, and sale of computer keyboards, push button switches, burglar alarm components and systems, pool alarms, EZ Duct wire covers, water sensors and wire and cable installation tools. 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 substantial 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 $9,321 for the year ended April 30, 2019 and $6,651 for the year ended April 30, 2018. For the fiscal year ended April 30, 2019, bad debt expense was $3,807. For the fiscal year ended April 30, 2018, bad debt expense was $3,345. Inventories Property and Equipment Classification Useful Life 2019 2018 Dies, jigs, and molds 3–7 $ 1,808,000 $ 1,808,000 Machinery and equipment 5–10 1,533,000 1,414,000 Furniture and fixtures 5–10 142,000 145,000 Leasehold improvements 5–32 256,000 250,000 Buildings 20–39 853,000 853,000 Automotive 3–5 89,000 90,000 Software 2–5 390,000 382,000 Land N/A 13,000 13,000 Total 5,084,000 4,955,000 Accumulated depreciation (4,100,000 ) (3,879,000 ) Net $ 984,000 $ 1,076,000 Depreciation expense of $231,000 and $195,000 was charged to operations for the years ended April 30, 2019 and 2018, 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. Investment in Limited Land Partnership — Intangible Assets — As of April 30, 2019, future amortization of intangible assets is expected as follows: Fiscal year end Amortization 2020 $ 123,000 2021 $ 123,000 2022 $ 123,000 2023 $ 122,000 2024 $ 121,000 Thereafter $ 1,028,000 $ 1,640,000 Basic and Diluted Earnings per Share — Advertising — Income Taxes Accounting standards prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of the positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. A “more likely than not” tax position is measured as the largest amount of benefit that is greater than a fifty percent likelihood of being realized upon ultimate settlement, or else a full reserve is established against the tax asset or a liability is recorded. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense. Accounting Estimates Fair Value of Financial Instruments Revenue Recognition Comprehensive Income Segment Reporting and Related Information Reclassifications Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company will adopt the ASUs in the first quarter of fiscal 2020 and the Company’s accounting systems will be upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 is not anticipated to have a material impact on the Company’s financial statements and related disclosures. 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. The Company is currently evaluating the potential impact of adopting the applicable guidance; however the Company does 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. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of adoption on its financial statements and disclosures. Subsequent Events |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories Inventories at April 30, 2019 and 2018, consisted of the following: 2019 2018 Raw materials $ 3,644,000 $ 2,450,000 Work in process 389,000 444,000 Finished goods 641,000 463,000 4,674,000 3,357,000 Less: allowance for obsolete inventory (91,000 ) (90,000 ) Inventories, net $ 4,583,000 $ 3,267,000 |
Investments
Investments | 12 Months Ended |
Apr. 30, 2019 | |
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, REITs, money markets, certificates of deposits and hedge funds. Effective with the Company’s adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on May 1, 2018, the Company carries all investments at fair value. The investments in debt securities, which includes all investments except for the hedge funds, mature between June 2019 and January 2044. The Company uses the average cost method to determine the cost of securities sold with any unrealized gains or losses reported in the respective period’s earnings. Dividend and interest income are reported as earned. As of April 30, 2019 and 2018, investments consisted of the following: Investments at Gross Gross April 30, 2019 Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 5,459,000 $ 79,000 $ (55,000 ) $ 5,483,000 Corporate bonds $ 26,000 $ - $ - $ 26,000 REITs $ 89,000 $ 1,000 $ (6,000 ) $ 84,000 Equity securities $ 16,618,000 $ 4,143,000 $ (296,000 ) $ 20,465,000 Money Markets and CDs $ 1,233,000 $ - $ - $ 1,233,000 Total $ 23,425,000 $ 4,223,000 $ (357,000 ) $ 27,291,000 Investments at Gross Gross April 30, 2018 Cost Unrealized Unrealized Reported 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 Marketable securities that are equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the Statements of Operations in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On April 30, 2019, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale equity securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings. 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 $68,000 for the year ended April 30, 2019 and $31,000 for the year ended April 30, 2018. 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, 2019 and 2018. Unrealized Loss Breakdown by Investment Type at April 30, 2019 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 772,000 $ (4,000 ) $ 580,000 $ (50,000 ) $ 1,352,000 $ (54,000 ) REITs $ — $ — $ 32,000 $ (6,000 ) $ 32,000 $ (6,000 ) Equity securities $ 932,000 $ (102,000 ) $ 1,652,000 $ (195,000 ) $ 2,584,000 $ (297,000 ) Total $ 1,704,000 $ (106,000 ) $ 2,264,000 $ (251,000 ) $ 3,968,000 $ (357,000 ) 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 occurs, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at April 30, 2019. Marketable Equity Securities and REITs The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. Management has evaluated the individual holdings and does not consider these investments to be other-than-temporarily impaired at April 30, 2019. |
Retirement Benefit Plan
Retirement Benefit Plan | 12 Months Ended |
Apr. 30, 2019 | |
Retirement Benefits [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, 2019 and 2018 respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 5. Stockholders’ 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, 2019, the Company purchased 9,487 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, 2019 | |
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, 2019 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,598,000 Basic EPS $ 3,598,000 4,962,547 $ .7250 Effect of dilutive Convertible Preferred Stock – 20,500 (.0030 ) Diluted EPS $ 3,598,000 4,983,047 $ .7220 April 30, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 2,546,000 Basic EPS $ 2,546,000 4,958,769 $ .5134 Effect of dilutive Convertible Preferred Stock – 20,500 (.0019 ) Diluted EPS $ 2,546,000 4,977,584 $ .5115 |
Commitments, Contingencies, and
Commitments, Contingencies, and Related Party Transactions | 12 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Related Party Transactions | 7. Commitments, Contingencies, and Related Party Transactions The Company leases a building from Bonita Risk. Bonita Risk is a majority stockholder, a director and employee of the Company. This building contains the Company’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 per year was $18,420 for the fiscal years ended April 30, 2019 and 2018. 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 $4,224,000 for the year ended April 30, 2019 and $3,819,000 for the year ended April 30, 2018. The Company also received interest income from FirsTier Bank in the amount of approximately $63,400 for the year ended April 30, 2019 and $33,200 for the year ended April 30, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Reconciliation of income taxes with Federal and State taxable income: 2019 2018 Income before income taxes $ 4,792,000 $ 3,546,000 State income tax deduction (265,000 ) (192,000 ) Interest and dividend income (658,000 ) (669,000 ) Domestic production activities deduction — (243,000 ) Nondeductible expenses and timing differences 136,000 150,000 Taxable income $ 3,561,000 $ 2,592,000 The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes: 2019 2018 Income tax provision at statutory rate $ 1,252,000 $ 1,327,000 Increase (decrease) income taxes resulting from: State income taxes (76,000 ) (72,000 ) Interest and dividend income (190,000 ) (250,000 ) Domestic production activities — (91,000 ) Deferred taxes 170,000 28,000 Other temporary and permanent differences 38,000 58,000 Income tax expense $ 1,194,000 $ 1,000,000 Federal tax rate 21.00 % 29.72 % State tax rate 7.81 % 7.70 % Blended statutory rate 28.81 % 37.42 % Deferred tax assets (liabilities) consist of the following components at April 30, 2019 and 2018: 2019 2018 Deferred tax assets (liabilities): Depreciation (141,000 ) (161,000 ) Inventory valuation 26,000 26,000 Allowance for doubtful accounts 3,000 2,000 263A adjustment — 58,000 Accrued vacation 28,000 30,000 Accumulated unrealized (gain)/loss on investments (1,114,000 ) (910,000 ) Net deferred tax assets (liabilities) $ (1,198,000 ) $ (955,000 ) |
Business Segments
Business Segments | 12 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 9. Business Segments The following is financial information relating to industry segments: Quarter ended Year ended Year ended April 30, April 30, April 30, 2019 2019 2018 Net revenue: Security alarm products $ 2,872,000 $ 11,006,000 $ 8,423,000 Cable & wiring tools 527,000 2,431,000 1,326,000 Other products 175,000 689,000 2,182,000 Total net revenue $ 3,574,000 $ 14,126,000 $ 11,931,000 Income from operations: Security alarm products 654,000 2,656,000 1,759,000 Cable & wiring tools 120,000 488,000 277,000 Other products 40,000 162,000 456,000 Total income from operations $ 814,000 $ 3,306,000 $ 2,492,000 Depreciation and amortization: Security alarm products 38,000 95,000 37,000 Cable & wiring tools 31,000 123,000 62,000 Other products 19,000 74,000 103,000 Corporate general 18,000 62,000 55,000 Total depreciation and amortization $ 106,000 $ 354,000 $ 257,000 Capital expenditures: Security alarm products 39,000 75,000 280,000 Cable & wiring tools — — — Other products 19,000 56,000 172,000 Corporate general 8,000 23,000 81,000 Total capital expenditures $ 66,000 $ 154,000 $ 533,000 April 30, 2019 April 30, 2018 Identifiable assets: Security alarm products 6,179,000 4,561,000 Cable & wiring tools 2,713,000 2,347,000 Other products 842,000 1,521,000 Corporate general 33,293,000 32,510,000 Total assets $ 43,027,000 $ 40,942,000 |
Concentrations
Concentrations | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 and 2018, the Company had uninsured balances of $4,082,000, and $3,591,000, respectively. Management believes that this financial institution is financially sound and the risk of loss is minimal. Management also has cash funds with Wells Fargo Bank with uninsured balances of $399,000 and $224,000 for the years ending April 30, 2019 and 2018, 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 the year ended April 30, 2019 and 34% of total sales for the year ended April 30, 2018. This distributor accounted for 61% and 55% of accounts receivable at April 30, 2019 and 2018, respectively. Security switch sales made up 78% of total sales for the fiscal year ended April 30, 2019 and 71% of total sales for the fiscal year ended April 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The carrying value of the Company’s 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. Investments and Marketable Securities As of April 30, 2019, The Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as certain state and municipal debt securities and corporate bonds. The 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 and REITs; 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 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 5,483,000 — $ 5,483,000 Corporate Bonds $ 26,000 — — $ 26,000 REITs — $ 84,000 — $ 84,000 Equity Securities $ 20,465,000 — — $ 20,465,000 Money Markets and CDs $ 1,233,000 — — $ 1,233,000 Total fair value of assets measured on a recurring basis $ 21,724,000 $ 5,567,000 — $ 27,291,000 Assets Measured at Fair Value on a Recurring 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 |
Asset Purchase
Asset Purchase | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Asset Purchase | 12. Asset Purchase In October 2017, George Risk Industries, Inc. (the “Company”) purchased certain assets from Labor Saving Devices, Inc. (“LSDI”). LSDI is engaged in the business of wire installation, tool design and manufacturing serving the audio/visual, electrical, communications and security alarm markets. The acquisition of LSDI was completed pursuant to an asset purchase agreement dated October 7, 2017. The purchase price for the assets consisted of $3,000,000 in cash and 24,097 shares of the Company’s Class A common stock (valued at $200,000, or approximately $8.30 per share). An initial payment of $1,000,000 in cash was made at closing, with the remaining $2,000,000 in cash paid in November 2017. The value of the assets purchased in October 2017 as described above consisted of the following: Type of Asset Fair Value of Assets Acquired Inventory $ 1,366,000 Fixed Assets $ 10,000 Non-compete agreement $ 10,000 Intangible assets $ 1,814,000 Total $ 3,200,000 |
Correction of Previously Issued
Correction of Previously Issued Financial Statement | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Correction of Previously Issued Financial Statement | 13. Correction of Previously Issued Financial Statement The Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the phase in of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-K) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss). This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive gain, net of taxes, related to unrealized gains on equity securities as of April 30, 2019, ii) recording an unrealized gain on marketable securities representing the value change in the equities for the year ended April 30, 2019, and iii) adjusting the unrealized gain on debt securities for the impact under ASU 2016-01. No entries to correct for this restatement have any impact on our cash position, liquidity, or operations. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [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 substantial 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 $9,321 for the year ended April 30, 2019 and $6,651 for the year ended April 30, 2018. For the fiscal year ended April 30, 2019, bad debt expense was $3,807. For the fiscal year ended April 30, 2018, bad debt expense was $3,345. |
Inventories | Inventories |
Property and Equipment | Property and Equipment Classification Useful Life 2019 2018 Dies, jigs, and molds 3–7 $ 1,808,000 $ 1,808,000 Machinery and equipment 5–10 1,533,000 1,414,000 Furniture and fixtures 5–10 142,000 145,000 Leasehold improvements 5–32 256,000 250,000 Buildings 20–39 853,000 853,000 Automotive 3–5 89,000 90,000 Software 2–5 390,000 382,000 Land N/A 13,000 13,000 Total 5,084,000 4,955,000 Accumulated depreciation (4,100,000 ) (3,879,000 ) Net $ 984,000 $ 1,076,000 Depreciation expense of $231,000 and $195,000 was charged to operations for the years ended April 30, 2019 and 2018, 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. |
Investment in Limited Land Partnership | Investment in Limited Land Partnership — |
Intangible Assets | Intangible Assets — As of April 30, 2019, future amortization of intangible assets is expected as follows: Fiscal year end Amortization 2020 $ 123,000 2021 $ 123,000 2022 $ 123,000 2023 $ 122,000 2024 $ 121,000 Thereafter $ 1,028,000 $ 1,640,000 |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings per Share — |
Advertising | Advertising — |
Income Taxes | Income Taxes Accounting standards prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of the positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. A “more likely than not” tax position is measured as the largest amount of benefit that is greater than a fifty percent likelihood of being realized upon ultimate settlement, or else a full reserve is established against the tax asset or a liability is recorded. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense. |
Accounting Estimates | Accounting Estimates |
Fair Value of Financial Instruments | Fair Value of 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 February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company will adopt the ASUs in the first quarter of fiscal 2020 and the Company’s accounting systems will be upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 is not anticipated to have a material impact on the Company’s financial statements and related disclosures. 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. The Company is currently evaluating the potential impact of adopting the applicable guidance; however the Company does 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. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” “Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” and “ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief,” which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of adoption on its financial statements and disclosures. |
Subsequent Events | Subsequent Events |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Depreciation is calculated based on the following estimated useful lives using the straight-line method: Classification Useful Life 2019 2018 Dies, jigs, and molds 3–7 $ 1,808,000 $ 1,808,000 Machinery and equipment 5–10 1,533,000 1,414,000 Furniture and fixtures 5–10 142,000 145,000 Leasehold improvements 5–32 256,000 250,000 Buildings 20–39 853,000 853,000 Automotive 3–5 89,000 90,000 Software 2–5 390,000 382,000 Land N/A 13,000 13,000 Total 5,084,000 4,955,000 Accumulated depreciation (4,100,000 ) (3,879,000 ) Net $ 984,000 $ 1,076,000 |
Schedule of Future Amortization of Intangible Assets | As of April 30, 2019, future amortization of intangible assets is expected as follows: Fiscal year end Amortization 2020 $ 123,000 2021 $ 123,000 2022 $ 123,000 2023 $ 122,000 2024 $ 121,000 Thereafter $ 1,028,000 $ 1,640,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at April 30, 2019 and 2018, consisted of the following: 2019 2018 Raw materials $ 3,644,000 $ 2,450,000 Work in process 389,000 444,000 Finished goods 641,000 463,000 4,674,000 3,357,000 Less: allowance for obsolete inventory (91,000 ) (90,000 ) Inventories, net $ 4,583,000 $ 3,267,000 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | As of April 30, 2019 and 2018, investments consisted of the following: Investments at Gross Gross April 30, 2019 Cost Unrealized Unrealized Reported Basis Gains Losses Value Municipal bonds $ 5,459,000 $ 79,000 $ (55,000 ) $ 5,483,000 Corporate bonds $ 26,000 $ - $ - $ 26,000 REITs $ 89,000 $ 1,000 $ (6,000 ) $ 84,000 Equity securities $ 16,618,000 $ 4,143,000 $ (296,000 ) $ 20,465,000 Money Markets and CDs $ 1,233,000 $ - $ - $ 1,233,000 Total $ 23,425,000 $ 4,223,000 $ (357,000 ) $ 27,291,000 Investments at Gross Gross April 30, 2018 Cost Unrealized Unrealized Reported 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 April 30, 2019 and 2018. Unrealized Loss Breakdown by Investment Type at April 30, 2019 Less than 12 months 12 months or greater Total Description Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $ 772,000 $ (4,000 ) $ 580,000 $ (50,000 ) $ 1,352,000 $ (54,000 ) REITs $ — $ — $ 32,000 $ (6,000 ) $ 32,000 $ (6,000 ) Equity securities $ 932,000 $ (102,000 ) $ 1,652,000 $ (195,000 ) $ 2,584,000 $ (297,000 ) Total $ 1,704,000 $ (106,000 ) $ 2,264,000 $ (251,000 ) $ 3,968,000 $ (357,000 ) 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 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 3,598,000 Basic EPS $ 3,598,000 4,962,547 $ .7250 Effect of dilutive Convertible Preferred Stock – 20,500 (.0030 ) Diluted EPS $ 3,598,000 4,983,047 $ .7220 April 30, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 2,546,000 Basic EPS $ 2,546,000 4,958,769 $ .5134 Effect of dilutive Convertible Preferred Stock – 20,500 (.0019 ) Diluted EPS $ 2,546,000 4,977,584 $ .5115 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes | Reconciliation of income taxes with Federal and State taxable income: 2019 2018 Income before income taxes $ 4,792,000 $ 3,546,000 State income tax deduction (265,000 ) (192,000 ) Interest and dividend income (658,000 ) (669,000 ) Domestic production activities deduction — (243,000 ) Nondeductible expenses and timing differences 136,000 150,000 Taxable income $ 3,561,000 $ 2,592,000 |
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: 2019 2018 Income tax provision at statutory rate $ 1,252,000 $ 1,327,000 Increase (decrease) income taxes resulting from: State income taxes (76,000 ) (72,000 ) Interest and dividend income (190,000 ) (250,000 ) Domestic production activities — (91,000 ) Deferred taxes 170,000 28,000 Other temporary and permanent differences 38,000 58,000 Income tax expense $ 1,194,000 $ 1,000,000 Federal tax rate 21.00 % 29.72 % State tax rate 7.81 % 7.70 % Blended statutory rate 28.81 % 37.42 % |
Schedule of Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) consist of the following components at April 30, 2019 and 2018: 2019 2018 Deferred tax assets (liabilities): Depreciation (141,000 ) (161,000 ) Inventory valuation 26,000 26,000 Allowance for doubtful accounts 3,000 2,000 263A adjustment — 58,000 Accrued vacation 28,000 30,000 Accumulated unrealized (gain)/loss on investments (1,114,000 ) (910,000 ) Net deferred tax assets (liabilities) $ (1,198,000 ) $ (955,000 ) |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to Industry Segments | The following is financial information relating to industry segments: Quarter ended Year ended Year ended April 30, April 30, April 30, 2019 2019 2018 Net revenue: Security alarm products $ 2,872,000 $ 11,006,000 $ 8,423,000 Cable & wiring tools 527,000 2,431,000 1,326,000 Other products 175,000 689,000 2,182,000 Total net revenue $ 3,574,000 $ 14,126,000 $ 11,931,000 Income from operations: Security alarm products 654,000 2,656,000 1,759,000 Cable & wiring tools 120,000 488,000 277,000 Other products 40,000 162,000 456,000 Total income from operations $ 814,000 $ 3,306,000 $ 2,492,000 Depreciation and amortization: Security alarm products 38,000 95,000 37,000 Cable & wiring tools 31,000 123,000 62,000 Other products 19,000 74,000 103,000 Corporate general 18,000 62,000 55,000 Total depreciation and amortization $ 106,000 $ 354,000 $ 257,000 Capital expenditures: Security alarm products 39,000 75,000 280,000 Cable & wiring tools — — — Other products 19,000 56,000 172,000 Corporate general 8,000 23,000 81,000 Total capital expenditures $ 66,000 $ 154,000 $ 533,000 April 30, 2019 April 30, 2018 Identifiable assets: Security alarm products 6,179,000 4,561,000 Cable & wiring tools 2,713,000 2,347,000 Other products 842,000 1,521,000 Corporate general 33,293,000 32,510,000 Total assets $ 43,027,000 $ 40,942,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds — $ 5,483,000 — $ 5,483,000 Corporate Bonds $ 26,000 — — $ 26,000 REITs — $ 84,000 — $ 84,000 Equity Securities $ 20,465,000 — — $ 20,465,000 Money Markets and CDs $ 1,233,000 — — $ 1,233,000 Total fair value of assets measured on a recurring basis $ 21,724,000 $ 5,567,000 — $ 27,291,000 Assets Measured at Fair Value on a Recurring 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 |
Asset Purchase (Tables)
Asset Purchase (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Purchased | The value of the assets purchased in October 2017 as described above consisted of the following: Type of Asset Fair Value of Assets Acquired Inventory $ 1,366,000 Fixed Assets $ 10,000 Non-compete agreement $ 10,000 Intangible assets $ 1,814,000 Total $ 3,200,000 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies (Details Narrative) | Nov. 30, 2002USD ($)ft² | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($)Integer |
Allowance for doubtful accounts | $ 9,321 | $ 6,651 | |
Bad debt expense | 3,000 | 3,000 | |
Depreciation expense | 231,000 | 195,000 | |
Intangible asset costs | 1,640,000 | 1,763,000 | |
Amortization expense | 123,000 | 61,000 | |
Advertising expense | $ 245,000 | $ 213,000 | |
Number of operating segment | Integer | 3 | ||
Non-compete Agreement [Member] | |||
Intangible assets useful live | 5 years | ||
Winter Park-Grand County, CO [Member] | |||
Purchase of investment land percentage | 6.67% | ||
Area of land | ft² | 22 | ||
Investment | $ 200,000 | ||
Additional contributions expense | $ 93,000 | ||
Winter Park-Grand County, CO [Member] | Minimum [Member] | |||
Property for resale term | 2 years | ||
Winter Park-Grand County, CO [Member] | Maximum [Member] | |||
Property for resale term | 5 years |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Total | $ 5,084,000 | $ 4,955,000 |
Accumulated depreciation | (4,100,000) | (3,879,000) |
Net | 984,000 | 1,076,000 |
Dies, Jigs, and Molds [Member] | ||
Total | $ 1,808,000 | 1,808,000 |
Dies, Jigs, and Molds [Member] | Minimum [Member] | ||
Useful Life in Years | 3 years | |
Dies, Jigs, and Molds [Member] | Maximum [Member] | ||
Useful Life in Years | 7 years | |
Machinery and Equipment [Member] | ||
Total | $ 1,533,000 | 1,414,000 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Useful Life in Years | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Useful Life in Years | 10 years | |
Furniture and Fixtures [Member] | ||
Total | $ 142,000 | 145,000 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Useful Life in Years | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Useful Life in Years | 10 years | |
Leasehold Improvements [Member] | ||
Total | $ 256,000 | 250,000 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Useful Life in Years | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Useful Life in Years | 32 years | |
Buildings [Member] | ||
Total | $ 853,000 | 853,000 |
Buildings [Member] | Minimum [Member] | ||
Useful Life in Years | 20 years | |
Buildings [Member] | Maximum [Member] | ||
Useful Life in Years | 39 years | |
Automotive [Member] | ||
Total | $ 89,000 | 90,000 |
Automotive [Member] | Minimum [Member] | ||
Useful Life in Years | 3 years | |
Automotive [Member] | Maximum [Member] | ||
Useful Life in Years | 5 years | |
Software [Member] | ||
Total | $ 390,000 | 382,000 |
Software [Member] | Minimum [Member] | ||
Useful Life in Years | 2 years | |
Software [Member] | Maximum [Member] | ||
Useful Life in Years | 5 years | |
Land [Member] | ||
Total | $ 13,000 | $ 13,000 |
Useful Life in Years | 0 years |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies - Schedule of Future Amortization of Intangible Assets (Details) | Apr. 30, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
2020 | $ 123,000 |
2021 | 123,000 |
2022 | 123,000 |
2023 | 122,000 |
2024 | 121,000 |
Thereafter | 1,028,000 |
Finite-Lived Intangible Assets, Net | $ 1,640,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,644,000 | $ 2,450,000 |
Work in process | 389,000 | 444,000 |
Finished goods | 641,000 | 463,000 |
Inventory gross | 4,674,000 | 3,357,000 |
Less: allowance for obsolete inventory | (91,000) | (90,000) |
Inventories, net | $ 4,583,000 | $ 3,267,000 |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Impairment loss | $ 68,000 | $ 31,000 |
Reclassified net unrealized gains on marketable securities | $ 2,424,000 | |
Minimum [Member] | ||
Available-for-sale debt securities maturity year | 2019-06 | |
Maximum [Member] | ||
Available-for-sale debt securities maturity year | 2044-11 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cost Basis | $ 23,425,000 | $ 23,188,000 |
Gross Unrealized Gains | 4,223,000 | 3,785,000 |
Gross Unrealized Losses | (357,000) | (627,000) |
Reported Value | 27,291,000 | 26,346,000 |
Municipal Bonds [Member] | ||
Cost Basis | 5,459,000 | 5,984,000 |
Gross Unrealized Gains | 79,000 | 66,000 |
Gross Unrealized Losses | (55,000) | (309,000) |
Reported Value | 5,483,000 | 5,741,000 |
Corporate Bonds [Member] | ||
Cost Basis | 26,000 | 129,000 |
Gross Unrealized Gains | 2,000 | |
Gross Unrealized Losses | ||
Reported Value | 26,000 | 131,000 |
REITs [Member] | ||
Cost Basis | 89,000 | 110,000 |
Gross Unrealized Gains | 1,000 | 3,000 |
Gross Unrealized Losses | (6,000) | (7,000) |
Reported Value | 84,000 | 106,000 |
Equity Securities [Member] | ||
Cost Basis | 16,618,000 | 15,930,000 |
Gross Unrealized Gains | 4,143,000 | 3,714,000 |
Gross Unrealized Losses | (296,000) | (311,000) |
Reported Value | 20,465,000 | 19,333,000 |
Money Markets and CDs [Member] | ||
Cost Basis | 1,233,000 | 1,035,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Reported Value | $ 1,233,000 | $ 1,035,000 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Less than 12 months Fair Value | $ 1,704,000 | $ 3,560,000 |
Less than 12 months Unrealized Loss | (106,000) | (333,000) |
12 months or greater Fair Value | 2,264,000 | 3,235,000 |
12 months or greater Unrealized Loss | (251,000) | (294,000) |
Total Fair Value | 3,968,000 | 6,795,000 |
Total Unrealized Loss | (357,000) | (627,000) |
Municipal Bonds [Member] | ||
Less than 12 months Fair Value | 772,000 | 960,000 |
Less than 12 months Unrealized Loss | (4,000) | (200,000) |
12 months or greater Fair Value | 580,000 | 2,385,000 |
12 months or greater Unrealized Loss | (50,000) | (109,000) |
Total Fair Value | 1,352,000 | 3,345,000 |
Total Unrealized Loss | (54,000) | (309,000) |
REITs [Member] | ||
Less than 12 months Fair Value | 55,000 | |
Less than 12 months Unrealized Loss | (6,000) | |
12 months or greater Fair Value | 32,000 | 27,000 |
12 months or greater Unrealized Loss | (6,000) | (1,000) |
Total Fair Value | 32,000 | 82,000 |
Total Unrealized Loss | (6,000) | (7,000) |
Equity Securities [Member] | ||
Less than 12 months Fair Value | 932,000 | 2,545,000 |
Less than 12 months Unrealized Loss | (102,000) | (127,000) |
12 months or greater Fair Value | 1,652,000 | 823,000 |
12 months or greater Unrealized Loss | (195,000) | (184,000) |
Total Fair Value | 2,584,000 | 3,368,000 |
Total Unrealized Loss | $ (297,000) | $ (311,000) |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details Narrative) - USD ($) | Jan. 01, 1998 | Apr. 30, 2019 | Apr. 30, 2018 |
Retirement Benefits [Abstract] | |||
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, 2019 | Apr. 30, 2018 | |
Class A Common Stock [Member] | ||
Purchases of common stock shares | 9,487 | |
Series 1 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 | |
Dividend rate per share | $ 1 | |
Description of preferred stock dividend payment | No dividends may be paid on the Class A common stock until the holders of the Series #1 preferred stock have been paid. |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share of Common Stock | ||
Net income | $ 3,598,000 | $ 2,546,000 |
Basic EPS | $ 3,598,000 | $ 2,546,000 |
Basic EPS, shares | 3,598,000 | 4,958,769 |
Basic EPS, per share | $ 0.73 | $ 0.51 |
Effect of dilutive convertible preferred Stock | ||
Effect of dilutive convertible preferred Stock, shares | 20,500 | 20,500 |
Effect of dilutive convertible preferred Stock, per share | $ (0.0030) | $ (0.0019) |
Diluted EPS | $ 3,284,000 | $ 2,546,000 |
Diluted EPS, shares | 4,983,047 | 4,977,584 |
Diluted EPS, per share | $ 0.72 | $ 0.51 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Joel Wiens [Member] | ||
Bank deposits | $ 4,224,000 | $ 3,819,000 |
Interest income on bank deposits | 63,400 | 33,200 |
Building [Member] | Bonita Risk [Member] | ||
Monthly minimum lease payment | 1,535 | |
Total lease expense | $ 18,420 | $ 18,420 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income before income taxes | $ 4,792,000 | $ 3,546,000 |
Domestic production activities deduction | 91,000 | |
Federal and State [Member] | ||
Income before income taxes | 4,792,000 | 3,546,000 |
State income tax deduction | (265,000) | (192,000) |
Interest and dividend income | (658,000) | (669,000) |
Domestic production activities deduction | (243,000) | |
Nondeductible expenses and timing differences | 136,000 | 150,000 |
Taxable income | $ 3,561,000 | $ 2,592,000 |
Income Taxes - Schedule of Stat
Income Taxes - Schedule of Statutory Rate to Income Before Income Taxes (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at statutory rate | $ 1,252,000 | $ 1,327,000 |
State income taxes | (76,000) | (72,000) |
Interest and dividend income | (190,000) | (250,000) |
Domestic production activities | (91,000) | |
Deferred taxes | 170,000 | 28,000 |
Other temporary and permanent differences | 38,000 | 58,000 |
Total Income Tax Expense | $ 1,194,000 | $ 1,000,000 |
Federal tax rate | 21.00% | 29.72% |
State tax rate | 7.81% | 7.70% |
Blended statutory rate | 28.81% | 37.42% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Depreciation | $ (141,000) | $ (161,000) |
Inventory valuation | 26,000 | 26,000 |
Allowance for doubtful accounts | 3,000 | 2,000 |
263A adjustment | 58,000 | |
Accrued vacation | 28,000 | 30,000 |
Accumulated unrealized (gain)/loss on investments | (1,114,000) | (910,000) |
Net deferred tax assets (liabilities) | $ (1,198,000) | $ (955,000) |
Business Segments - Schedule of
Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | |
Total net revenue | $ 3,574,000 | $ 14,126,000 | $ 11,931,000 |
Total income from operations | 814,000 | 3,306,000 | 2,492,000 |
Total depreciation and amortization | 106,000 | 354,000 | 257,000 |
Total capital expenditures | 66,000 | 154,000 | 533,000 |
Total assets | 43,027,000 | 43,027,000 | 40,942,000 |
Security Alarm Products [Member] | |||
Total net revenue | 2,872,000 | 11,006,000 | 8,423,000 |
Total income from operations | 654,000 | 2,656,000 | 1,759,000 |
Total depreciation and amortization | 38,000 | 95,000 | 37,000 |
Total capital expenditures | 39,000 | 75,000 | 280,000 |
Total assets | 6,179,000 | 6,179,000 | 4,561,000 |
Cable & Wiring Tools [Member] | |||
Total net revenue | 527,000 | 2,431,000 | 1,326,000 |
Total income from operations | 120,000 | 488,000 | 277,000 |
Total depreciation and amortization | 31,000 | 123,000 | 62,000 |
Total capital expenditures | |||
Total assets | 2,713,000 | 2,713,000 | 2,347,000 |
Other Products [Member] | |||
Total net revenue | 175,000 | 689,000 | 2,182,000 |
Total income from operations | 40,000 | 162,000 | 456,000 |
Total depreciation and amortization | 19,000 | 74,000 | 103,000 |
Total capital expenditures | 19,000 | 56,000 | 172,000 |
Total assets | 842,000 | 842,000 | 1,521,000 |
Corporate General [Member] | |||
Total depreciation and amortization | 18,000 | 62,000 | 55,000 |
Total capital expenditures | 8,000 | 23,000 | 81,000 |
Total assets | $ 33,293,000 | $ 33,293,000 | $ 32,510,000 |
Concentrations (Details Narrati
Concentrations (Details Narrative) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash, FDIC insured amount | $ 250,000 | $ 250,000 |
Uninsured amount | $ 4,082,000 | $ 3,591,000 |
Sales (Security Alarm) [Member] | Customer Concentration Risk [Member] | ||
Percentage of concentration risk | 41.00% | 34.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Percentage of concentration risk | 61.00% | 55.00% |
Sales (Security Switch) [Member] | Customer Concentration Risk [Member] | ||
Percentage of concentration risk | 78.00% | 71.00% |
Wells Fargo Bank [Member] | ||
Uninsured amount | $ 399,000 | $ 224,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Apr. 30, 2019 | 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 | $ 27,291,000 | $ 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 | 5,483,000 | 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 | 26,000 | 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 | 84,000 | 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 | 20,465,000 | 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 | 1,233,000 | 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 | 21,724,000 | 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 | 26,000 | 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 | 20,465,000 | 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 | 1,233,000 | 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 | 5,567,000 | 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 | 5,483,000 | 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 | 84,000 | 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 |
Asset Purchase (Details Narrati
Asset Purchase (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Oct. 31, 2017 | Apr. 30, 2018 | |
Purchase price of assets | $ 2,000,000 | $ 1,000,000 | |
Stock issued during period value | $ 200,000 | ||
Common Class A [Member] | |||
Purchase price of assets | $ 3,000,000 | ||
Stock issued during period shares | 24,097 | ||
Stock issued during period value | $ 200,000 | ||
Shares issued price per share | $ 8.30 |
Asset Purchase - Schedule of As
Asset Purchase - Schedule of Assets Purchased (Details) | Apr. 30, 2019USD ($) |
Fair Value of Assets Acquired | $ 3,200,000 |
Inventory [Member] | |
Fair Value of Assets Acquired | 1,366,000 |
Fixed Assets [Member] | |
Fair Value of Assets Acquired | 10,000 |
Non-compete Agreement [Member] | |
Fair Value of Assets Acquired | 10,000 |
Intangible Assets [Member] | |
Fair Value of Assets Acquired | $ 1,814,000 |