George Risk Industries (RSKIA) 10-Q/A 25 Mar 20 2020 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2019	Sep. 18, 2019
Document And Entity Information
Entity Registrant Name	GEORGE RISK INDUSTRIES, INC.
Entity Central Index Key	0000084112
Document Type	10-Q/A
Document Period End Date	Jul. 31, 2019
Amendment Flag	true
Amendment Description	This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three months ended July 31, 2019 that we originally filed with the Securities and Exchange Commission, or the Commission, on September 18, 2019, or the Original Filing, in connection with our failure to give effect to the phase in of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") in the financial statements included in the Original Filing. All amendments and restatements to the financial statements are non-cash in nature. Restatement As further discussed in Note 9 to our unaudited financial statements in Part I, Item 1, "Financial Statements" of this Amendment, on March 4, 2020, we concluded that we would restate our previously issued financial statements as of and for the three months ended July 31, 2019, as set forth in the Original Filing in connection with our failure to give effect to the phase in of ASU 2016-01 in the financial statements included in the Original Quarterly Report on Form 10-Q. Amendment The purpose of this Amendment is to restate our previously issued unaudited financial statements and related disclosures as of and for the three months ended July 31, 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" to reflect the correction of the error described above. Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Filing. Items Amended in this Filing For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied:
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,952,110
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jul. 31, 2019	Apr. 30, 2019
Current Assets:
Cash and cash equivalents	$ 5,667,000	$ 4,873,000
Investments and securities, at fair value	27,657,000	27,291,000
Accounts receivable:
Trade, net of $8,764 and $9,321 doubtful account allowance	2,534,000	2,696,000
Other	4,000	6,000
Income tax overpayment		259,000
Inventories, net	4,863,000	4,583,000
Prepaid expenses	320,000	282,000
Total Current Assets	41,045,000	39,990,000
Property and Equipment, net, at cost	1,095,000	984,000
Other Assets
Investment in Limited Land Partnership, at cost	293,000	293,000
Projects in process	1,000	117,000
Other	3,000	3,000
Total Other Assets	297,000	413,000
Intangible assets, net	1,609,000	1,640,000
TOTAL ASSETS	44,046,000	43,027,000
Current Liabilities
Accounts payable, trade	261,000	206,000
Dividends payable	1,714,000	1,714,000
Accrued expenses:
Payroll and related expenses	287,000	356,000
Property taxes	3,000
Income tax payable	30,000
Total Current Liabilities	2,295,000	2,276,000
Long-Term Liabilities
Deferred income taxes	1,240,000	1,198,000
Total Long-Term Liabilities	1,240,000	1,198,000
Total Liabilities	3,535,000	3,474,000
Commitments and contingencies
Stockholders' Equity
Convertible preferred stock, 1,000,000 shares authorized, Series 1- noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding	99,000	99,000
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	49,000	14,000
Retained earnings	41,859,000	40,883,000
Less: treasury stock, 3,550,571 and 3,544,271 shares, at cost	(4,280,000)	(4,227,000)
Total Stockholders' Equity	40,511,000	39,553,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 44,046,000	$ 43,027,000

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Jul. 31, 2019	Apr. 30, 2019
Allowance for doubtful account receivable	$ 8,764	$ 9,321
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value	$ .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	3,550,571	3,544,271
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
	Jul. 31, 2019	Jul. 31, 2018
Income Statement [Abstract]
Net Sales	$ 3,552,000	$ 3,429,000
Less: Cost of Goods Sold	(1,769,000)	(1,801,000)
Gross Profit	1,783,000	1,628,000
Operating Expenses:
General and Administrative	297,000	286,000
Sales	557,000	555,000
Engineering	14,000	9,000
Rent Paid to Related Parties	5,000	5,000
Total Operating Expenses	873,000	885,000
Income From Operations	910,000	773,000
Other Income (Expense)
Other	1,000	3,000
Dividend and Interest Income	193,000	193,000
Unrealized Gain (Loss) on Equity Securities	145,000
Gain (Loss) on Sale of Investments	49,000	(68,000)
Total Other Income	388,000	128,000
Income Before Provisions for Income Taxes	1,298,000	901,000
Provisions for Income Taxes
Current Expense	294,000	247,000
Deferred tax expense	28,000	37,000
Total Income Tax Expense	322,000	284,000
Net Income	$ 976,000	$ 617,000
Basic Earnings Per Share of Common Stock	$ 0.20	$ 0.12
Diluted Earnings Per Share of Common Stock	$ 0.20	$ 0.12
Weighted Average Number of Common Shares Outstanding	4,956,389	4,967,580
Weighted Average Number of Shares Outstanding (Diluted)	4,976,889	4,988,080

Condensed Statements of Compreh

Condensed Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Statement of Comprehensive Income [Abstract]
Net Income	$ 976,000	$ 617,000
Unrealized gain (loss) on securities:
Unrealized holding gains arising during period	49,000	607,000
Reclassification adjustment for gains included in net income		44,000
Income tax expense related to other comprehensive income	(14,000)	(188,000)
Other Comprehensive Income	35,000	463,000
Comprehensive Income	$ 1,011,000	$ 1,080,000

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - 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, 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				$ (5,000)			$ (5,000)
Purchases of common stock, shares				650
Unrealized gain (loss), net of tax effect					463,000		$ 463,000
Net Income						617,000	617,000
Balance at Jul. 31, 2018	$ 99,000	$ 850,000	1,934,000	$ (4,153,000)	2,712,000	37,363,000	38,805,000
Balance, shares at Jul. 31, 2018	4,100	8,502,881		3,535,434
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
Purchases of common stock				$ (53,000)			(53,000)
Purchases of common stock, shares				6,300
Unrealized gain (loss), net of tax effect					35,000		35,000
Net Income						976,000	976,000
Balance at Jul. 31, 2019	$ 99,000	$ 850,000	$ 1,934,000	$ (4,280,000)	$ 49,000	$ 41,859,000	$ 40,511,000
Balance, shares at Jul. 31, 2019	4,100	8,502,881		3,550,571

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Cash Flows from Operating Activities:
Net Income	$ 976,000	$ 617,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	89,000	83,000
(Gain) loss on sale of investments	(83,000)	68,000
Impairments on investments	34,000
Unrealized (gain) loss on equity investments	(145,000)
Reserve for bad debts	(2,000)	3,000
Reserve for obsolete inventory	8,000	6,000
Deferred income taxes	28,000	37,000
(Increase) decrease in:
Accounts receivable	163,000	234,000
Inventories	(288,000)	(389,000)
Prepaid expenses	79,000	166,000
Employee receivables	2,000
Income tax overpayment		244,000
Increase (decrease) in:
Accounts payable	55,000	(7,000)
Accrued expenses	(66,000)	(172,000)
Income tax payable	289,000
Net cash provided by operating activities	1,139,000	890,000
Cash Flows From Investing Activities:
(Purchase) of property and equipment	(169,000)
Proceeds from sale of marketable securities	9,000	2,000
(Purchase) of marketable securities	(132,000)	(233,000)
Net cash (used in) investing activities	(292,000)	(231,000)
Cash Flows From Financing Activities:
(Purchase) of treasury stock	(53,000)	(5,000)
Dividends paid		(1,000)
Net cash (used in) financing activities	(53,000)	(6,000)
Net Increase in Cash and Cash Equivalents	794,000	653,000
Cash and Cash Equivalents, beginning of period	4,873,000	4,294,000
Cash and Cash Equivalents, end of period	5,667,000	4,947,000
Supplemental Disclosure for Cash Flow Information:
Income taxes paid	0	0
Interest paid	$ 0	$ 1,000

Unaudited Interim Financial Sta

Unaudited Interim Financial Statements	3 Months Ended
	Jul. 31, 2019
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, 2019 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. Accounting Estimates Recently Issued Accounting Pronouncements — 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.

Investments

Investments	3 Months Ended
	Jul. 31, 2019
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. Effective with the Company’s adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on May 1, 2018, the Company carries all investments at fair value, with unrealized gain or loss on equity securities reported through other income. The investments in debt securities have maturities between September 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 each respective period’s earnings. Dividend and interest income are reported as earned. As of July 31, 2019 and April 30, 2019, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2019 Basis Gains Losses Value Municipal bonds $ 5,475,000 $ 117,000 $ (43,000 ) $ 5,549,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 3,000 (9,000 ) 83,000 Equity securities 16,729,000 4,252,000 (260,000 ) 20,721,000 Money markets and CDs 1,278,000 — — 1,278,000 Total $ 23,597,000 $ 4,372,000 $ (312,000 ) $ 27,657,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2019 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 Marketable securities that are equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the Statements of Operations in the period of the change, and debt securities are carried at fair value on the balance sheet with changes in fair value recorded as unrealized gains or (losses) in the Statement of Comprehensive Income. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On April 30, 2019, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings. 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 on year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded an impairment loss of $34,000 for the quarter ended July 31, 2019. For the prior quarter ended July 31, 2018, management did not need to record any impairment losses. The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at July 31, 2019 and April 30, 2019, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 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 $ — $ — $ 448,000 $ (43,000 ) $ 448,000 $ (43,000 ) REITs — — 30,000 (9,000 ) 30,000 (9,000 ) Equity securities 1,975,000 (147,000 ) 729,000 (113,000 ) 2,704,000 (260,000 ) Total $ 1,975,000 $ (147,000 ) $ 1,207,000 $ (165,000 ) $ 3,182,000 $ (312,000 ) 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 ) Municipal Bonds The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2019. Marketable Equity Securities and REITs The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2019.

Inventories

Inventories	3 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Note 3: Inventories Inventories at July 31, 2019 and April 30, 2019 consisted of the following: July 31, 2019 April 30, 2019 Raw materials $ 3,878,000 $ 3,644,000 Work in process 368,000 389,000 Finished goods 715,000 641,000 4,961,000 4,674,000 Less: allowance for obsolete inventory (98,000 ) (91,000 ) Inventories, net $ 4,863,000 $ 4,583,000

Business Segments

Business Segments	3 Months Ended
	Jul. 31, 2019
Segment Reporting [Abstract]
Business Segments	Note 4: Business Segments The following is financial information relating to industry segments: July 31, 2019 2018 Net revenue: Security alarm products $ 2,830,000 $ 2,150,000 Cable & wiring tools 536,000 679,000 Other products 186,000 600,000 Total net revenue $ 3,552,000 $ 3,429,000 Income from operations: Security alarm products $ 725,000 $ 485,000 Cable & wiring tools 137,000 153,000 Other products 48,000 135,000 Total income from operations $ 910,000 $ 773,000 Depreciation and amortization: Security alarm products $ 23,000 $ 10,000 Cable & wiring tools 31,000 31,000 Other products 20,000 27,000 Corporate general 15,000 15,000 Total depreciation and amortization $ 89,000 $ 83,000 Capital expenditures: Security alarm products $ 169,000 $ — Cable & wiring tools — — Other products — — Corporate general — — Total capital expenditures $ 169,000 $ — Identifiable assets: July 31, 2019 April 30, 2019 Security alarm products $ 6,369,000 $ 6,179,000 Cable & wiring tools 2,725,000 2,713,000 Other products 864,000 842,000 Corporate general 34,088,000 33,293,000 Total assets $ 44,046,000 $ 43,027,000

Earnings Per Share

Earnings Per Share	3 Months Ended
	Jul. 31, 2019
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 July 31, 2019 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 976,000 Basic EPS $ 976,000 4,956,389 $ .1969 Effect of dilutive Convertible Preferred Stock – 20,500 (.0008 ) Diluted EPS $ 976,000 4,976,889 $ .1961 For the three months ended July 31, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 617,000 Basic EPS $ 617,000 4,967,580 $ .1242 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 617,000 4,988,080 $ .1237

Retirement Benefit Plan

Retirement Benefit Plan	3 Months Ended
	Jul. 31, 2019
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 $2,000 were paid during both the quarter ending July 31, 2019 and 2018, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jul. 31, 2019
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 July 31, 2019, our investments consisted of money markets, certificates of deposits (CDs), publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt securities and corporate bonds. Our 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 Level 1 Level 2 Level 3 Total Assets: Municipal Bonds $ — $ 5,549,000 $ — $ 5,549,000 Corporate Bonds 26,000 — — 26,000 REITs — 83,000 — 83,000 Equity Securities 20,721,000 — — 20,721,000 Money Markets and CDs 1,278,000 — — 1,278,000 Total fair value of assets measured on a recurring basis $ 22,025,000 $ 5,632,000 $ — $ 27,657,000 Assets Measured at Fair Value on a Recurring Basis as of 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

Subsequent Events

Subsequent Events	3 Months Ended
	Jul. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 8 Subsequent Events None

Correction of Previously Issued

Correction of Previously Issued Financial Statements	3 Months Ended
	Jul. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Correction of Previously Issued Financial Statements	Note 9 Correction of Previously Issued Financial Statements Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three months ended July 31, 2019, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the phase in of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-Q) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss). This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive loss related to unrealized gains on equity securities as of April 30, 2019 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three months ended July 31, 2019. No entries to correct for this restatement have any impact on our cash position, liquidity, or operations.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Jul. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of Investments	As of July 31, 2019 and April 30, 2019, investments consisted of the following: Gross Gross Investments at Cost Unrealized Unrealized Fair July 31, 2019 Basis Gains Losses Value Municipal bonds $ 5,475,000 $ 117,000 $ (43,000 ) $ 5,549,000 Corporate bonds 26,000 — — 26,000 REITs 89,000 3,000 (9,000 ) 83,000 Equity securities 16,729,000 4,252,000 (260,000 ) 20,721,000 Money markets and CDs 1,278,000 — — 1,278,000 Total $ 23,597,000 $ 4,372,000 $ (312,000 ) $ 27,657,000 Gross Gross Investments at Cost Unrealized Unrealized Fair April 30, 2019 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
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 July 31, 2019 and April 30, 2019, respectively. Unrealized Loss Breakdown by Investment Type at July 31, 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 $ — $ — $ 448,000 $ (43,000 ) $ 448,000 $ (43,000 ) REITs — — 30,000 (9,000 ) 30,000 (9,000 ) Equity securities 1,975,000 (147,000 ) 729,000 (113,000 ) 2,704,000 (260,000 ) Total $ 1,975,000 $ (147,000 ) $ 1,207,000 $ (165,000 ) $ 3,182,000 $ (312,000 ) 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 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories at July 31, 2019 and April 30, 2019 consisted of the following: July 31, 2019 April 30, 2019 Raw materials $ 3,878,000 $ 3,644,000 Work in process 368,000 389,000 Finished goods 715,000 641,000 4,961,000 4,674,000 Less: allowance for obsolete inventory (98,000 ) (91,000 ) Inventories, net $ 4,863,000 $ 4,583,000

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Jul. 31, 2019
Segment Reporting [Abstract]
Schedule of Financial Information Relating to Industry Segments	The following is financial information relating to industry segments: July 31, 2019 2018 Net revenue: Security alarm products $ 2,830,000 $ 2,150,000 Cable & wiring tools 536,000 679,000 Other products 186,000 600,000 Total net revenue $ 3,552,000 $ 3,429,000 Income from operations: Security alarm products $ 725,000 $ 485,000 Cable & wiring tools 137,000 153,000 Other products 48,000 135,000 Total income from operations $ 910,000 $ 773,000 Depreciation and amortization: Security alarm products $ 23,000 $ 10,000 Cable & wiring tools 31,000 31,000 Other products 20,000 27,000 Corporate general 15,000 15,000 Total depreciation and amortization $ 89,000 $ 83,000 Capital expenditures: Security alarm products $ 169,000 $ — Cable & wiring tools — — Other products — — Corporate general — — Total capital expenditures $ 169,000 $ — Identifiable assets: July 31, 2019 April 30, 2019 Security alarm products $ 6,369,000 $ 6,179,000 Cable & wiring tools 2,725,000 2,713,000 Other products 864,000 842,000 Corporate general 34,088,000 33,293,000 Total assets $ 44,046,000 $ 43,027,000

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Jul. 31, 2019
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 July 31, 2019 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 976,000 Basic EPS $ 976,000 4,956,389 $ .1969 Effect of dilutive Convertible Preferred Stock – 20,500 (.0008 ) Diluted EPS $ 976,000 4,976,889 $ .1961 For the three months ended July 31, 2018 Income Shares Per-Share (Numerator) (Denominator) Amount Net income $ 617,000 Basic EPS $ 617,000 4,967,580 $ .1242 Effect of dilutive Convertible Preferred Stock – 20,500 (.0005 ) Diluted EPS $ 617,000 4,988,080 $ .1237

Fair Value Measurements (Tables

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

Investments (Details Narrative)

Investments (Details Narrative) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Available-for-sale debt securities maturity year description	Available-for-sale investments in debt securities mature between September 2019 and January 2044.
Impairment loss	$ 34,000
Reclassified net unrealized gains on marketable securities	$ 2,424,000

Investments - Schedule of Inves

Investments - Schedule of Investments (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jul. 31, 2019	Apr. 30, 2019
Cost Basis	$ 23,597,000	$ 23,425,000
Gross Unrealized Gains	4,372,000	4,223,000
Gross Unrealized Losses	(312,000)	(357,000)
Fair Value	27,657,000	27,291,000
Municipal Bonds [Member]
Cost Basis	5,475,000	5,459,000
Gross Unrealized Gains	117,000	79,000
Gross Unrealized Losses	(43,000)	(55,000)
Fair Value	5,549,000	5,483,000
Corporate Bonds [Member]
Cost Basis	26,000	26,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	26,000	26,000
REITs [Member]
Cost Basis	89,000	89,000
Gross Unrealized Gains	3,000	1,000
Gross Unrealized Losses	(9,000)	(6,000)
Fair Value	83,000	84,000
Equity Securities [Member]
Cost Basis	16,729,000	16,618,000
Gross Unrealized Gains	4,252,000	4,143,000
Gross Unrealized Losses	(260,000)	(296,000)
Fair Value	20,721,000	20,465,000
Money Markets and CDs [Member]
Cost Basis	1,278,000	1,233,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 1,278,000	$ 1,233,000

Investments - Schedule of Unrea

Investments - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($)	Jul. 31, 2019	Apr. 30, 2019
Less than 12 months Fair Value	$ 1,975,000	$ 1,704,000
Less than 12 months Unrealized Loss	(147,000)	(106,000)
12 months or greater Fair Value	1,207,000	2,264,000
12 months or greater Unrealized Loss	(165,000)	(251,000)
Total Fair Value	3,182,000	3,968,000
Total Unrealized Loss	(312,000)	(357,000)
Municipal Bonds [Member]
Less than 12 months Fair Value		772,000
Less than 12 months Unrealized Loss		(4,000)
12 months or greater Fair Value	448,000	580,000
12 months or greater Unrealized Loss	(43,000)	(50,000)
Total Fair Value	448,000	1,352,000
Total Unrealized Loss	(43,000)	(54,000)
REITs [Member]
Less than 12 months Fair Value
Less than 12 months Unrealized Loss
12 months or greater Fair Value	30,000	32,000
12 months or greater Unrealized Loss	(9,000)	(6,000)
Total Fair Value	30,000	32,000
Total Unrealized Loss	(9,000)	(6,000)
Equity Securities [Member]
Less than 12 months Fair Value	1,975,000	932,000
Less than 12 months Unrealized Loss	(147,000)	(102,000)
12 months or greater Fair Value	729,000	1,652,000
12 months or greater Unrealized Loss	(113,000)	(195,000)
Total Fair Value	2,704,000	2,584,000
Total Unrealized Loss	$ (260,000)	$ (297,000)

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Jul. 31, 2019	Apr. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,878,000	$ 3,644,000
Work in process	368,000	389,000
Finished goods	715,000	641,000
Inventory gross	4,961,000	4,674,000
Less: allowance for obsolete inventory	(98,000)	(91,000)
Inventories, net	$ 4,863,000	$ 4,583,000

Business Segments - Schedule of

Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Apr. 30, 2019
Total net revenue	$ 3,552,000	$ 3,429,000
Total income from operations	910,000	773,000
Total depreciation and amortization	89,000	83,000
Total capital expenditures	169,000
Total assets	44,046,000	43,027,000	$ 43,027,000
Security Alarm Products [Member]
Total net revenue	2,830,000	2,150,000
Total income from operations	725,000	485,000
Total depreciation and amortization	23,000	10,000
Total capital expenditures	169,000
Total assets	6,369,000	6,179,000
Cable & Wiring Tools [Member]
Total net revenue	536,000	679,000
Total income from operations	137,000	153,000
Total depreciation and amortization	31,000	31,000
Total capital expenditures
Total assets	2,725,000	2,713,000
Other Products [Member]
Total net revenue	186,000	600,000
Total income from operations	48,000	135,000
Total depreciation and amortization	20,000	27,000
Total capital expenditures
Total assets	864,000	842,000
Corporate General [Member]
Total depreciation and amortization	15,000	15,000
Total capital expenditures
Total assets	$ 34,088,000	$ 33,293,000

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 976,000	$ 617,000
Basic EPS	$ 976,000	$ 617,000
Basic EPS, shares	4,956,389	4,967,580
Basic EPS, per share	$ 0.20	$ 0.12
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	$ (0.0008)	$ (.0005)
Diluted EPS	$ 976,000	$ 617,000
Diluted EPS, shares	4,976,889	4,988,080
Diluted EPS, per share	$ 0.20	$ 0.12

Retirement Benefit Plan (Detail

Retirement Benefit Plan (Details Narrative) - USD ($)	3 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Retirement Benefits [Abstract]
Employees matching contributions	$ 2,000	$ 2,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jul. 31, 2019	Apr. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	$ 27,657,000	$ 27,291,000
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	5,549,000	5,483,000
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	26,000
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	83,000	84,000
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	20,721,000	20,465,000
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	1,278,000	1,233,000
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	22,025,000	21,724,000
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	26,000
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	20,721,000	20,465,000
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	1,278,000	1,233,000
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	5,632,000	5,567,000
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	5,549,000	5,483,000
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	83,000	84,000
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