Item 1. Financial Statements
The unaudited financial
statements for the three-and six-month periods ended October 31, 2019, are attached hereto.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
OCTOBER
31, 2019
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—The preparation of these financial statements requires the use of estimates and assumptions including the
carrying value of assets. The estimates and assumptions result in approximate rather than exact amounts.
Recently
Issued Accounting Pronouncements — In February 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 has adopted the ASUs in the first quarter of fiscal year 2020 and the Company’s accounting systems have been
upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material impact
on the Company’s financial statements and related disclosures because leases are not material to the financial statements.
In
August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves
the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures.
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 2016-13(“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the
FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements
to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial
assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit
exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right
to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including
interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained
earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective
approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB
issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic
842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”)
as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods
within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company will continue
to evaluate the effect of adopting ASU 2016-13 will have on the Company’s financial statements and disclosures.
Note
2 Investments
The
Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate
investment trusts, certificates of deposit, and money markets funds. The investments in securities are classified as available-for-sale
securities and are reported at fair value. Available-for-sale investments in debt securities mature between November 2019 and
September 2042. The Company uses the average cost method to determine the cost of securities sold and the amount reclassified
out of accumulated other comprehensive income into earnings. Unrealized gains and losses are excluded from earnings and reported
separately as a component of stockholders’ equity. Dividend and interest income are reported as earned.
As
of October 31, 2019 and April 30, 2019, investments consisted of the following:
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
Investments at
|
|
Cost
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
October 31, 2019
|
|
Basis
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
Municipal bonds
|
|
$
|
5,362,000
|
|
|
|
122,000
|
|
|
|
(47,000
|
)
|
|
|
5,437,000
|
|
Corporate bonds
|
|
|
26,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,000
|
|
REITs
|
|
|
89,000
|
|
|
|
2,000
|
|
|
|
(8,000
|
)
|
|
|
83,000
|
|
Equity securities
|
|
|
16,943,000
|
|
|
|
4,375,000
|
|
|
|
(254,000
|
)
|
|
|
21,064,000
|
|
Money markets and CDs
|
|
|
774,000
|
|
|
|
1,000
|
|
|
|
—
|
|
|
|
775,000
|
|
Total
|
|
$
|
23,194,000
|
|
|
$
|
4,500,000
|
|
|
$
|
(309,000
|
)
|
|
$
|
27,385,000
|
|
|
|
|
|
|
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
|
|
The
Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as when the cost
basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment
and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified,
the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments
are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded
an impairment loss of $7,000 for the quarter, and recorded a loss of $41,000 for the six months ended October 31, 2019. As for
the corresponding periods last year, management recorded an impairment loss of $32,000 for both the quarter and six-months ended
October 31, 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 October 31, 2019 and April 30, 2019, respectively.
Unrealized
Loss Breakdown by Investment Type at October 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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
512,000
|
|
|
$
|
(47,000
|
)
|
|
$
|
512,000
|
|
|
$
|
(47,000
|
)
|
REITs
|
|
|
—
|
|
|
|
—
|
|
|
|
59,000
|
|
|
|
(8,000
|
)
|
|
|
59,000
|
|
|
|
(8,000
|
)
|
Equity securities
|
|
|
1,214,000
|
|
|
|
(66,000
|
)
|
|
|
1,819,000
|
|
|
|
(188,000
|
)
|
|
|
3,033,000
|
|
|
|
(254,000
|
)
|
Total
|
|
$
|
1,214,000
|
|
|
$
|
(66,000
|
)
|
|
$
|
2,390,000
|
|
|
$
|
(243,000
|
)
|
|
$
|
3,604,000
|
|
|
$
|
(309,000
|
)
|
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 October 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 October 31, 2019.
Note
3 Inventories
Inventories
at October 31, 2019 and April 30, 2019 consisted of the following:
|
|
October 31, 2019
|
|
|
April 30, 2019
|
|
|
|
|
|
|
|
|
Raw materials
|
|
$
|
4,131,000
|
|
|
$
|
3,644,000
|
|
Work in process
|
|
|
458,000
|
|
|
|
389,000
|
|
Finished goods
|
|
|
667,000
|
|
|
|
641,000
|
|
|
|
|
5,256,000
|
|
|
|
4,674,000
|
|
Less: allowance for obsolete inventory
|
|
|
(93,000
|
)
|
|
|
(91,000
|
)
|
Inventories, net
|
|
$
|
5,163,000
|
|
|
$
|
4,583,000
|
|
Note
4 Business Segments
The
following is financial information relating to industry segments:
|
|
Three months ended
|
|
|
Six months ended
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
Oct 31, 2019
|
|
|
Oct 31, 2019
|
|
|
Oct 31, 2018
|
|
|
Oct 31, 2018
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security alarm products
|
|
$
|
2,985,000
|
|
|
$
|
5,852,000
|
|
|
$
|
2,852,000
|
|
|
$
|
5,371,000
|
|
Cable & wiring tools
|
|
|
571,000
|
|
|
|
1,071,000
|
|
|
|
649,000
|
|
|
|
1,351,000
|
|
Other products
|
|
|
154,000
|
|
|
|
340,000
|
|
|
|
166,000
|
|
|
|
374,000
|
|
Total net revenue
|
|
$
|
3,710,000
|
|
|
$
|
7,263,000
|
|
|
$
|
3,667,000
|
|
|
$
|
7,096,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security alarm products
|
|
$
|
762,000
|
|
|
$
|
1,495,000
|
|
|
$
|
689,000
|
|
|
$
|
1,291,000
|
|
Cable & wiring tools
|
|
|
140,000
|
|
|
|
273,000
|
|
|
|
157,000
|
|
|
|
293,000
|
|
Other products
|
|
|
44,000
|
|
|
|
87,000
|
|
|
|
40,000
|
|
|
|
75,000
|
|
Total income from operations
|
|
$
|
946,000
|
|
|
$
|
1,855,000
|
|
|
$
|
886,000
|
|
|
$
|
1,659,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security alarm products
|
|
$
|
71,000
|
|
|
$
|
94,000
|
|
|
$
|
10,000
|
|
|
$
|
20,000
|
|
Cable & wiring tools
|
|
|
31,000
|
|
|
|
62,000
|
|
|
|
31,000
|
|
|
|
62,000
|
|
Other products
|
|
|
(4,000
|
)
|
|
|
16,000
|
|
|
|
28,000
|
|
|
|
55,000
|
|
Corporate general
|
|
|
(4,000
|
)
|
|
|
11,000
|
|
|
|
15,000
|
|
|
|
30,000
|
|
Total depreciation and amortization
|
|
$
|
94,000
|
|
|
$
|
183,000
|
|
|
$
|
84,000
|
|
|
$
|
167,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security alarm products
|
|
$
|
10,000
|
|
|
$
|
179,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cable & wiring tools
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other products
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Corporate general
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total capital expenditures
|
|
$
|
10,000
|
|
|
$
|
179,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
October 31, 2019
|
|
|
April 30, 2019
|
|
Identifiable assets:
|
|
|
|
|
|
|
|
|
Security alarm products
|
|
$
|
6,351,000
|
|
|
$
|
6,179,000
|
|
Cable & wiring tools
|
|
|
2,666,000
|
|
|
|
2,713,000
|
|
Other products
|
|
|
835,000
|
|
|
|
842,000
|
|
Corporate general
|
|
|
33,341,000
|
|
|
|
33,293,000
|
|
Total assets
|
|
$
|
43,193,000
|
|
|
$
|
43,027,000
|
|
Note
5 Earnings per Share
Basic
and diluted earnings per share, assuming convertible preferred stock was converted for each period presented, are:
|
|
For the three months ended October 31, 2019
|
|
|
|
Income
|
|
|
Shares
|
|
|
Per-share
|
|
|
|
(Numerator)
|
|
|
(Denominator)
|
|
|
Amount
|
|
Net Income
|
|
$
|
864,000
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
864,000
|
|
|
|
4,952,110
|
|
|
$
|
.1745
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
0
|
|
|
|
20,500
|
|
|
|
(.0007
|
)
|
Diluted EPS
|
|
$
|
864,000
|
|
|
|
4,972,610
|
|
|
$
|
.1738
|
|
|
|
For the six months ended October 31, 2019
|
|
|
|
Income
|
|
|
Shares
|
|
|
Per-share
|
|
|
|
(Numerator)
|
|
|
(Denominator)
|
|
|
Amount
|
|
Net Income
|
|
$
|
1,729,000
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
1,729,000
|
|
|
|
4,954,250
|
|
|
$
|
.3490
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
0
|
|
|
|
20,500
|
|
|
|
(.0014
|
)
|
Diluted EPS
|
|
$
|
1,729,000
|
|
|
|
4,974,750
|
|
|
$
|
.3476
|
|
|
|
For the three months ended October 31, 2018
|
|
|
|
Income
|
|
|
Shares
|
|
|
Per-share
|
|
|
|
(Numerator)
|
|
|
(Denominator)
|
|
|
Amount
|
|
Net Income
|
|
$
|
768,000
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
768,000
|
|
|
|
4,962,177
|
|
|
$
|
.1548
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
0
|
|
|
|
20,500
|
|
|
|
(.0007
|
)
|
Diluted EPS
|
|
$
|
768,000
|
|
|
|
4,982,677
|
|
|
$
|
.1541
|
|
|
|
For the six months ended October 31, 2018
|
|
|
|
Income
|
|
|
Shares
|
|
|
Per-share
|
|
|
|
(Numerator)
|
|
|
(Denominator)
|
|
|
Amount
|
|
Net Income
|
|
$
|
1,386,000
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
1,386,000
|
|
|
|
4,964,879
|
|
|
$
|
.2792
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
0
|
|
|
|
20,500
|
|
|
|
(.0012
|
)
|
Diluted EPS
|
|
$
|
1,386,000
|
|
|
|
4,985,379
|
|
|
$
|
.2780
|
|
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 $7,000 and $3,000 were paid during each quarter ending October 31, 2019 and 2018, respectively. Likewise,
the Company paid matching contributions of approximately $9,000 and $5,000 during each six-month period ending October 31, 2019
and 2018, respectively.
Note
7 Fair Value Measurements
Generally
accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received
from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value,
we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions
that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit
risk.
US
GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement)
and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are
described below:
|
Level
1
|
Valuation
is based upon quoted prices for identical instruments traded in active markets.
|
|
|
|
|
Level
2
|
Valuation
is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments
in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable
in the market.
|
|
|
|
|
Level
3
|
Valuation
is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable
assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.
Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
Investments
and Marketable Securities
As
of October 31, 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
October 31, 2019
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
$
|
—
|
|
|
$
|
5,437,000
|
|
|
$
|
—
|
|
|
$
|
5,437,000
|
|
Corporate Bonds
|
|
|
26,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,000
|
|
REITs
|
|
|
—
|
|
|
|
83,000
|
|
|
|
—
|
|
|
|
83,000
|
|
Equity Securities
|
|
|
21,064,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,064,000
|
|
Money Markets and CDs
|
|
|
775,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
775,000
|
|
Total fair value of assets measured on a recurring basis
|
|
$
|
21,865,000
|
|
|
$
|
5,520,000
|
|
|
$
|
—
|
|
|
$
|
27,385,000
|
|
|
|
Assets Measured at Fair Value on a Recurring Basis as of
April 30, 2019
|
|
|
|
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
|
|
Note
8 Subsequent Events
In
an update to related party transactions, the Company finalized the purchase of the building that it had previously leased from
Bonita Risk on November 22, 2019. Bonita Risk is a director and an employee of the Company and is the majority holder of George
Risk Industries, Inc. stock. This building contains the Company’s sales and accounting departments, maintenance department,
engineering department and some production facilities. Prior to the purchase, the lease required a minimum payment of $1,535 on
a month-to-month basis. The purchase price of the building was $200,000, which was approximately the assessed value of the building
at the time of purchase.
GEORGE
RISK INDUSTRIES, INC.
PART
I. FINANCIAL INFORMATION