RSKIA George Risk Industries Inc (PK)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-K

 

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended April 30, 2024

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to _________

 

Commission File Number: 000-05378

 

George Risk Industries, Inc.

 

(Exact name of registrant as specified in its charter)

 

Colorado		84-0524756
(State of incorporation)		(IRS Employer Identification No.)
802 South Elm St., Kimball, NE		69145
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number (308) 235–4645

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class		Name of Exchange on Which Registered
None		None

 

Securities registered under Section 12(g) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, $0.10 par value		RSKIA		OTC Markets
Convertible Preferred Stock, $20 stated value		RSKIA		OTC Markets

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 

Yes ☐ No ☒

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Sections 15(d) of the Act.

 

Yes ☐ No ☒

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229-405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

	Large accelerated filer ☐		Accelerated filer ☐
	Non-accelerated filer ☐		Smaller reporting company ☒
			Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

 

Yes ☐ No ☒

 

Based on the closing sale price on October 31, 2023, the aggregate market value of the voting stock held by non-affiliates (assuming, for this purpose, that all directors, officers and owners of 5% or more of the registrant’s common stock are deemed affiliates) of the registrant was $23,660,000.

 

The number of outstanding shares of the common stock as of July 30, 2024, was 4,896,730.

 

 

 

Part I

 

Preliminary Note Regarding Forward-Looking Statements and Currency Disclosure

 

This annual report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” that may cause our, or our industry’s, actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We do not intend to update any of the forward-looking statements to conform these statements to actual results except as required by applicable law, including the securities laws of the United States.

 

Our financial statements are stated in United States dollars, rounded to the nearest thousand, and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

Item 1

Business

 

Business Development

 

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 custom computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, high security switches and wire and cable installation tools.

 

Products, Market, and Distribution

 

The Company designs, manufactures, and sells computer keyboards, proximity switches, security alarm components and systems, pool access alarms, water sensors, electronic switching devices, high security switches, and wire and cable installation tools. The Security sales division, which concentrates on selling products for security purposes, comprises approximately 96.0% of net revenues and these goods are sold to distributors and alarm dealers/installers.

 

The security segment has approximately 1,000 current customers. One of the distributors, Ademco, Inc. (previously known as ADI), accounts for approximately 37.7% of the Company’s sales of these products. Anixter, Inc. accounts for another 23.5% of the security segment of the Company sales. The loss of these distributors would be significant to the Company. However, both companies have purchased products from the Company for many years and are expected to continue. The Company also has a written agreement with Ademco. This agreement was signed in February 2011 and was initiated by the customer. The contents of the agreement include product terms, purchasing, payment terms, term and termination, product marketing, representations and warranties, product support, mutual confidentiality, indemnification and insurance, and general provisions.

 

 

The keyboard and proximity switch segment has approximately 300 customers. These products are primarily sold to original equipment manufacturers to their specifications and to distributors of off-the-shelf keyboards of proprietary design.

 

Competition

 

The Company has intense competition in the keyboard/proximity and security/burglar alarm lines.

 

The security/burglar alarm segment has approximately six major competitors. The Company competes well based on price, product design, quality, customization, and having products made in the USA.

 

The competitors in the keyboard/proximity segment are larger companies with automated production facilities. GRI has emphasized small custom order sales that many of its competitors decline or discourage.

 

Research and Development

 

The Company conducts research and development for its customers when needed and as requested. Costs in connection with such product development have been borne by the customers. Costs associated with the development of new products are expensed as incurred. The Company’s internal research and development activities support the development of new products.

 

Employees

 

GRI has approximately 185 employees.

 

Item 1C

Cybersecurity

 

We believe a proactive approach to cybersecurity risks and threats is essential to achieving our business objectives and protecting our business. We therefore have processes for assessing, identifying, and managing risks from cybersecurity threats, that are conducted both in-house and with the aid of a third-party IT service, Five Nines, and have integrated these processes into our overall risk management system. We continually monitor our safeguards and provide our employees at all levels with the tools and training on these safeguards. Five Nine’s security specialists monitor and aid with industry best practices and compliance and assist us in implementing our cybersecurity procedures. Additionally, they routinely assess risks from cybersecurity threats, including but not limited to changes to firmware, disruption/denial of service and any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. We have established policies for tracking, managing, and safely disposing of physical hardware that may contain confidential information. We intend to continually evaluate best practices and methods, including continued cyber defense systems and training programs to protect our business from a wide range of potential threats and the ever-evolving cybersecurity risks.

 

 

Governance

 

Our company IT Manager continually monitors company computers and information systems for potential malware, ransomware and other malicious activity. The IT Manager works directly with our third-party IT service, Five Nines, and periodically updates the CEO on our cybersecurity and information security policies, training, new concerns, and plans. The CEO reports, as and if needed, directly to the audit committee and board of directors. The board of directors and audit committee will be apprised of any cybersecurity incidents deemed to have a moderate or higher business impact and will be provided with updates as necessary.

 

Item 2

Properties

 

The Company owns the manufacturing and the office facilities that it operates in. Total square footage of the plant in Kimball, Nebraska is approximately 50,000 sq. ft. A 7,500 sq. ft. warehouse for raw material storage was purchased in June 2017 when the Company acquired its cable and wiring segment, and another 9,600 sq. ft. building was purchased in April 2020 to provide for additional expansion. Additionally, the Company purchased the 15,000 sq. ft. building that it previously leased from Bonita Risk, which is used mainly for offices, in November 2019. Bonita Risk is a director of the Company.

 

The Company also owns a building in Gering, NE that is 7,200 sq. ft. in size. This is used for manufacturing. Currently, there are approximately 37 employees at the Gering site.

 

Item 3

Legal Proceedings

 

None.

 

Item 4

Mine Safety Disclosures

 

Not applicable.

 

 

Part II

 

Item 5

Market for the Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

 

Principal Market

 

The Company’s Class A Common Stock, which is traded under the ticker symbol RSKIA, is currently quoted on the OTC Bulletin Board by one market maker.

 

Stock Prices and Dividends Information

 

2024 Fiscal Year		High				Low
May 1—July 31		$	11.10			$	9.81
August 1—October 31			12.25				10.99
November 1—January 31			12.80				11.24
February 1—April 30			14.10				11.06

 

2023 Fiscal Year		High				Low
May 1—July 31		$	12.24			$	11.02
August 1—October 31			12.00				9.52
November 1—January 31			11.60				10.35
February 1—April 30			11.69				10.62

 

On September 30, 2023, a dividend of $0.65 per common share was declared for the fiscal year ending April 30, 2024.

 

For the prior fiscal year, a dividend of $0.60 per common share was declared on September 30, 2022.

 

The number of holders of record of the Company’s Class A Common Stock as of April 30, 2024, was approximately 1,084.

 

Repurchases of Equity Securities

 

On September 18, 2008, the Board of Directors approved an authorization for the repurchase of up to 500,000 shares of the Company’s common stock. Purchases can be made in the open market or in privately negotiated transactions. The Board did not specify an expiration date for the authorization.

 

 

The following tables show repurchases of GRI’s common stock made on a quarterly basis:

 

2024 Fiscal Year		Number of shares repurchased
May 1—July 31			2,035
August 1—October 31			1,715
November 1—January 31			27,963
February 1—April 30			2,100

 

2023 Fiscal Year		Number of shares repurchased
May 1—July 31			200
August 1—October 31			70
November 1—January 31			175
February 1—April 30			200

 

There are still approximately 192,000 shares available to be repurchased under the current resolution.

 

Item 6

[Reserved]

 

Not Applicable

 

 

Item 7

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Executive Overview

 

George Risk Industries, Inc. (“GRI” or the “Company”) is a diversified manufacturer of electronic components, encompassing the security industry’s widest variety of door and window contact switches, environmental products, wire and cable installation tools, proximity switches and custom keyboards. The security products division comprises the largest portion of GRI sales and products are sold worldwide through distributors, who in turn sell these products to security installation companies. These products are used for residential, commercial, industrial and government installations. International sales accounted for approximately 10.3% of revenues for fiscal year 2024 and 11.1% for 2023.

 

GRI is known for its quality American made products, top-notch customer service and the willingness to work with customers on their special applications.

 

GRI owns and operates its main manufacturing plant and offices in Kimball, Nebraska with a satellite plant 40 miles away in Gering, Nebraska.

 

The Company has substantial marketable securities holdings, and these holdings have a material impact on the financial results. For the year ending April 30, 2024, net other income accounted for 39.08% of income before income taxes. In comparison, for the year ending April 30, 2023, net other income accounted for 12.98% of the income before income taxes. Management’s philosophy behind having holdings in marketable securities is to keep the money working and to gain interest on the cash that is not needed to be put back into the business. Over the years, the investments have kept the earnings per share up when the results from operations have not fared as well.

 

Management is always open to the possibility of acquiring a business that would complement our existing operations, such as the October 2017 purchase of substantially all of the assets from Labor Saving Devices, Inc. (“LSDI”) and Roy Bowling.

 

There are no known seasonal trends with any of GRI’s products, since the Company mostly sells to distributors and original equipment manufacturers. The products are tied to the housing industry and will fluctuate with building trends.

 

Liquidity and Capital Resources

 

Operating

 

Net cash increased by $2,169,000 during the year ended April 30, 2024, compared to a decrease of $1,135,000 during the year ended April 30, 2023. Accounts receivable increased by $417,000 during the current fiscal year compared to a $627,000 decrease in the prior fiscal year. The current fiscal year increase in cash flow from accounts receivable is the result of a combination of slightly faster collection of accounts receivable and increased sales. The average collection time in days for the year ended April 30, 2024, is 66 days, compared to 65 days for the year ended April 30, 2023. As of April 30, 2024, 68.12% of receivables were aged less than 60 days (“Current”) and 8.53% were aged over 90 days. In comparison, 79.90% of the receivables were considered Current and 4.95% were over 90 days past due at April 30, 2023.

 

 

Inventories increased by $93,000 for the year ended April 30, 2024, compared to an increase of $3,604,000 for the year ended April 30, 2023. The smaller current fiscal year increase is a result of having slightly less raw materials on hand and an increase in raw material costs. In turn, with material and labor costs rising, the work in process inventory has increased while the finished goods inventory has decreased since there were more sales than the previous fiscal year.

 

Prepaid expenses and other assets decreased by $418,000 and $761,000 in the current and prior fiscal years, respectively. The current fiscal year’s decrease is due to not having as many prepayments for raw materials than at the last fiscal year-end and not having to renew multi-year subscriptions in the current fiscal year.

 

For the year ended April 30, 2024, accounts payable decreased by $254,000 compared to an increase of $226,000 for the year ended April 30, 2023. The change in cash with regards to accounts payable is largely based on timing. Payables are paid within terms and fluctuate based primarily on inventory needs for production. Accrued expenses increased $41,000 for the year ended April 30, 2024, due to having more accrued payroll calculated as compared to the year ended April 30, 2023.

 

The Company had an increase in cash flow towards income tax payable of $508,000 for the year ended April 30, 2024, compared to a decrease of $680,000 in cash flow towards income tax receivable for the year ended April 30, 2023. The current fiscal year income tax payable is the result of timing between recording and paying the income tax liability. The receivable in the 2023 fiscal year was due to an overpayment of tax liability.

 

Investing

 

As for investment activities, $378,000 was spent on purchases of property and equipment during the year ended April 30, 2024, compared to $548,000 during the year ended April 30, 2023. These capitalized costs mainly consisted of purchases of machinery and equipment and making capital improvements. Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. Cash spent on purchases of marketable securities for the year ended April 30, 2024, was $699,000 versus $764,000 spent for the year ended April 30, 2023. Conversely, net proceeds from the sale of marketable securities were $527,000 and $25,000 at April 30, 2024 and 2023, respectively. The Company uses “money manager” accounts for most stock transactions. By doing this, the Company gives an independent third-party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays quarterly service fees based on the value of the investments.

 

Financing

 

Cash used in financing activities consists of two items. First, for the year ended April 30, 2024, $2,915,000 was spent on the payment of dividends. The Company declared a dividend of $0.65 per share of common stock on September 30, 2023, for the current fiscal year, while a $0.60 per share of common stock dividend was declared on September 30, 2022 and issued in the prior fiscal year. Second, the Company continues to purchase back its Class A common stock when the opportunity arises. For the year ended April 30, 2024, the Company purchased $391,000 of treasury stock and $7,000 was bought back for the year ended April 30, 2023. In an effort to repurchase its Class A Common Stock, the Company has been actively searching for stockholders that have been “lost” over the years.

 

As of April 30, 2024, working capital showed a year-over -year increase of 10.04%. The Company measures liquidity using the quick ratio, which is the ratio of cash, securities and accounts receivables to current obligations. The Company’s quick ratio increased to 12.118 for the year ended April 30, 2024, compared to 11.135 for the year ended April 30, 2023.

 

 

Results of Operations

 

GRI completed the year ending April 30, 2024 with a net profit of 34.72% of net sales. Net sales for the current fiscal year were $21,767,000, up 8.95% over the previous fiscal year. The increase in sales is a result of a strengthening economy in which inflation leveled up as compared to the previous year. Cost of goods sold was 50.2% of net sales for the year ended April 30, 2024, and 53.08% for the same period last year. Management aims to keep the cost of goods sold percentage within 50% and was just slightly over that percentage for the current year. Management strives to be as efficient as possible as wages and material costs continue to increase. Management offset some of these added expenses by implementing a 2.5% price increase effective January 1, 2024, and a price increase of 10% that was effective on January 1, 2023.

 

Operating expenses were 20.91% of net sales for the year ended April 30, 2024, compared to 21.59% for the year ended April 30 ,2023. Management’s goal is to keep the operating expenses around 25% or less of net sales, so the goal has been met for the current fiscal year. Income from operations for the year ended April 30, 2024 was $6,289,000, which is a 24.29% increase from the year ended April 30, 2023, which had income from operations of $5,060,000.

 

Other income and expense results for the year ended April 30, 2024, produced net other income of $4,034,000, compared to a net other income of $755,000 for the year ending April 30, 2023. Dividend and interest income was $1,116,000 for the current fiscal year, which is up 4.49% over the $1,068,000 dividend and interest income for the prior fiscal year. Investments in marketable securities are presented at fair value and an unrealized gain or loss is recorded within the statements of operations, a non-cash entry. As a result, an unrealized gain of $2,771,000 was recorded for the year ending April 30, 2024, and an unrealized loss of $31,000 was recorded for the year ending April 30, 2023. Net gain on the sale of investments for the current fiscal year was $148,000, which is a 150.86% increase over the net loss on the sale of investments of $291,000 for the prior fiscal year.

 

Net income for the year ended April 30, 2024 was $7,558,000, which is up 58.88% from the $4,757,000 net income for the year ended April 30, 2023. Basic earnings per common share (“EPS”) for the year ended April 30, 2024, was $1.54 per share, and the diluted earnings per common share for the same period was $1.53. Basic and diluted EPS for the year ended April 30, 2023, was $0.96 per share.

 

Management is hopeful that sales will continue to increase for the fiscal year ending April 30, 2025. Opportunities for Management include focusing on finding ways to get our products out to our customers in a timelier manner. One way we are doing this is by looking into more automation. Challenges facing Management include obtaining certain raw materials and the increased costs of most raw materials because of inflation. The Company also struggles to get enough workers to fill production needs. Our Security sales division, which is our largest sales generator, is directly tied to the housing industry and we normally experience the same fluctuations. We are always researching and developing new products that will help our sales increase. Although there were not any new products to hit the market during fiscal year 2024, we are confident that there will be more released soon, and we are searching for products that complement our current offerings. Management is always open to the possibility of acquiring a business or product line that would complement our existing operations. Due to the Company’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing techniques and established customers to deliver new products and increase sales and profits.

 

 

New product development

 

The GRI Engineering department continues to develop enhancements to our existing products as well as to develop new products that will continue to secure our position in the industry.

 

Explosion proof contacts that will be UL listed for hazardous locations are in development. There has been demand from our customers for this type of high security magnetic reed switch.

 

The Company is developing magnetic contacts which are listed under UL 634 Level 2. These sensors are for high security applications such as government buildings, military use, nuclear facilities, and financial institutions.

 

Research is being done on updating our small profile glass break detector, in addition to looking at development of programmable temperature and humidity sensors with built-in hysteresis. An expansion of the GR3045 panic switch is in the works to include single pull, double throw (SPDT) versions, latching, and non-latching with LED indicator lights. A miniature profile overhead door contact based on the popular 4532 is also in development.

 

Wireless technology is a main area of focus for product development. We are considering adding wireless technology to some of our current products. A wireless contact switch is in the final stages of development. Also, we are working on wireless versions of monitoring devices which include glass break detection, tilt sensing and environmental monitoring. A redesign of our brass water valve shut-off system is near completion.

 

Critical Accounting Policies

 

The discussion and analysis of the financial condition and results of operations are based upon the financial statements, which have been prepared in conformity with generally accepted accounting principles in the United States. The preparation of these financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses reported in those financial statements. These judgments can be subjective and complex, and consequently actual results could differ from those estimates. The most critical accounting policies relate to accounts receivable; marketable securities; inventory; income taxes; and segment reporting.

 

Accounts receivable—Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers. Management performs continuing credit evaluations of its customers’ financial condition, and the Company generally does not require collateral.

 

The Company records an allowance for credit losses based on an analysis of specifically identified customer balances. The Company has a limited number of customers with individually large amounts due at any given date. Any unanticipated change in any one of these customers’ credit worthiness or other matters affecting the collectability of amounts due from such customers could have a material effect on the results of operations in the period in which such changes or events occur. After all attempts to collect a receivable have failed, the receivable is written off.

 

 

Marketable securities—The Company has investments in publicly traded equity securities, state and municipal debt securities, and real-estate investment trusts (REITs). The investments in securities are reported at fair value. The Company uses the average cost method to determine the cost of securities sold and any unrealized gains or losses on equity securities are reported in the respective period’s earnings. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholder’s equity. Dividend and interest income are reported as earned.

 

In accordance with the Generally Accepted Accounting Principles in the United States (“US GAAP”), the Company evaluates all marketable securities for other-than temporary declines in fair value. When the cost basis exceeds the fair market value for approximately one year, management evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized loss position. When it is determined that a security will likely remain impaired, a recognized loss is recorded and the investment is written down to its new fair value. The investments are periodically evaluated to determine if impairment changes are required.

 

Inventories—Inventories are valued at the lower of cost or net realizable value. Costs are determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied, based in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and approximations and actual results could differ from those estimates.

 

In addition, the Company records an inventory obsolescence reserve, which represents the cost of the inventory that has had no movement in over two years. There is inherent professional judgment and subjectivity made by management in determining the estimated obsolescence percentage. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events.

 

Income Taxes—US GAAP requires use of the assets and liability method; whereby current and deferred tax assets and liabilities are determined based on tax rates and laws enacted as of the balance sheet date. Deferred tax expense represents the change in the deferred tax asset/liability balances.

 

Segment Reporting and Related Information—The Company designates the internal organization that is used by management for allocating resources and assessing performance as the source of the Company’s reportable segments. US GAAP also requires disclosures about products and services, geographic area, and major customers.

 

Related Party Transactions — 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. The year end balances of accounts held at this bank were $6,712,000 and $4,637,000 for the years ended April 30, 2024 and 2023, respectively. The Company also received interest income from FirsTier Bank in the amount of approximately $170,000 for the year ended April 30, 2024, and approximately $103,000 was received for the year ended April 30, 2023.

 

 

Item 8

Financial Statements and Supplementary Data

 

Index to Financial Statements

George Risk Industries, Inc.

 

		Page
Report of Independent Registered Public Accounting Firm		F-2
Balance Sheets—April 30, 2024 and 2023		F-4
Income Statements For the Years Ended April 30, 2024 and 2023		F-6
Statements of Comprehensive Income For the Years Ended April 30, 2024 and 2023		F-7
Statements of Stockholders’ Equity For the Years Ended April 30, 2024 and 2023		F-8
Statements of Cash Flows For the Years Ended April 30, 2024 and 2023		F-10
Notes to Financial Statements		F-11

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and

Stockholders of George Risk Industries, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of George Risk Industries, Inc. (the Company) as of April 30, 2024 and 2023, and the related statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended April 30, 2024, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the two-year period ended April 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

Critical Audit Matter – Inventory Valuation

 

Critical Audit Matter Description

 

The Company manufactures its inventory, which involves the capture of direct labor and manufacturing overhead costs to inventory instead of as an expense when valuing work-in-process and finished goods inventory. This process involves complex calculations based on employee hours worked on manufacturing inventory, and the amount of overhead that will be captured is based on management’s subjective judgements. These judgements can have a significant impact on the Company’s reported assets and earnings if they should prove to be significantly inaccurate.

 

 

How the Critical Audit Matter was Addressed in the Audit

 

Our principal procedures related to the Company’s valuation of work-in-process and finished goods inventory included the following:

 

	●	We evaluated management’s significant accounting policies related to the valuation of manufactured inventory, including the methodology of how manufactured overhead is applied to inventory.
	●	We tested the direct labor applied to a sample of work-in-process and finished goods inventory items by agreeing employees’ applied costs to their pay rates per their human resources file maintained by the company.
	●	We tested the application of manufacturing overhead to a sample of work-in-process and finished goods inventory by recalculating the overhead we would expect to be applied based on the company’s standard overhead rate and the number of direct labor hours applied to the inventory.

 

Critical Audit Matter – Valuation of Investments

 

Critical Audit Matter Description

 

The company has investments in publicly traded equity securities, state and municipal debt securities, REITS, and money markets and they are recorded at fair value. Some of these investments are Level 2 investments and can be hard to value. In addition, as the securities are held at fair value, management must assess securities that are in a significant unrealized loss position for other than temporary impairment. For these securities, management must make difficult and subjective judgments about the ability of the issuer to be able to meet its obligations under terms of the security. These judgments can have a significant impact on the Company’s reported earnings if they should prove to be significantly inaccurate.

 

How the Critical Audit Matter was Addressed in the Audit

 

Our principal procedures related to the Company’s process for debt securities valuations as well as the process for equity securities other than temporary impairment evaluation included are the following:

 

	●	We evaluated management’s significant accounting policies related to the identification of other than temporary impairment.
	●	Valuation specialists, with specialized skills and knowledge, were involved in the assessment of the fair values for a sample of Level 2 investments.
	●	We performed testing over a sample of securities to determine if conclusions reached by management regarding other than temporary impairment were appropriate.

 

 

Haynie and Company

We have served as the Company’s auditor since 1992.
Salt Lake City, UT Firm ID 457
July 30, 2024

 

 

George Risk Industries, Inc.

Balance Sheets

As of April 30, 2024 and 2023

 

		2024				2023
ASSETS
Current Assets:
Cash and cash equivalents		$	7,112,000			$	4,943,000
Investments and securities			34,488,000				31,363,000
Accounts receivable:
Trade, net of allowance for credit losses of $34,256 and $17,922 for 2024 and 2023, respectively			3,903,000				3,503,000
Other			66,000				59,000
Income tax overpayment			—				403,000
Inventories, net			11,558,000				11,443,000
Prepaid expenses			315,000				651,000
Total Current Assets			57,442,000				52,365,000
Property and Equipment, at cost, net			2,003,000				1,997,000
Other Assets
Investment in Limited Land Partnership, at cost			294,000				344,000
Projects in process			13,000				83,000
Other			—				13,000
Total Other Assets			307,000				440,000
Intangible Assets, net			1,028,000				1,149,000
TOTAL ASSETS		$	60,780,000			$	55,951,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Balance Sheets (Continued)

As of April 30, 2024 and 2023

 

		2024				2023
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable, trade		$	291,000			$	546,000
Dividends payable			2,853,000				2,565,000
Deferred income			23,000				43,000
Accrued expenses			483,000				421,000
Income tax payable			105,000				—
Total Current Liabilities			3,755,000				3,575,000
Long-Term Liabilities
Deferred income taxes			2,388,000				1,727,000
Total Long-Term Liabilities			2,388,000				1,727,000
Total Liabilities			6,143,000				5,302,000
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 (loss)			(137,000	)			(161,000	)
Retained earnings			56,836,000				52,481,000
Less: treasury stock, 3,606,151 and 3,572,338 shares, at cost			(4,945,000	)			(4,554,000	)
Total Stockholders’ Equity			54,637,000				50,649,000
TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY		$	60,780,000			$	55,951,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Income Statements

For the years ended April 30, 2024 and 2023

 

		Year ended				Year ended
		April 30, 2024				April 30, 2023
Net Sales		$	21,767,000			$	19,979,000
Less: Cost of Goods Sold			(10,926,000	)			(10,605,000	)
Gross Profit			10,841,000				9,374,000
Operating Expenses:
General and Administrative			1,492,000				1,380,000
Selling			2,958,000				2,836,000
Engineering			102,000				98,000
Total Operating Expenses			4,552,000				4,314,000
Income From Operations			6,289,000				5,060,000
Other Income (Expense)
Other Income			37,000				6,000
Impairment on Investment in Limited Land Partnership			(38,000	)			—
Dividend and Interest Income			1,116,000				1,068,000
Unrealized Gain (Loss) on Equity Securities			2,771,000				(31,000	)
Gain (Loss) on Sale of Investment			148,000				(291,000	)
Gain on Sale of Assets			—				3,000
Total Other Income (Expense)			4,034,000				755,000
Income Before Provisions for Income Taxes			10,323,000				5,815,000
Provisions for Income Taxes
Current Expense			2,115,000				1,226,000
Deferred tax expense (benefit)			650,000				(168,000	)
Total Income Tax Expense			2,765,000				1,058,000
Net Income		$	7,558,000			$	4,757,000
Earnings Per Share of Common Stock
Basic		$	1.54			$	0.96
Diluted		$	1.53			$	0.96
Weighted Average Number of Common Shares Outstanding (Basic)			4,913,676				4,930,835
Weighted Average Number of Common Shares Outstanding (Diluted)			4,934,176				4,951,335

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Statements of Comprehensive Income

For the years ended April 30, 2024 and 2023

 

		Year ended				Year ended
		April 30, 2024				April 30, 2023
Net Income		$	7,558,000			$	4,757,000
Other Comprehensive Income (Loss), Net of Tax
Unrealized gain (loss) on debt securities:
Unrealized holding gains (losses) arising during period			34,000				(33,000	)
Income tax benefit (expense) related to other comprehensive income			(10,000	)			9,000
Other Comprehensive Income (Loss)			24,000				(24,000	)
Comprehensive Income		$	7,582,000			$	4,733,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Statements of Stockholders’ Equity

For the Years Ended April 30, 2024 and 2023

 

		Shares				Amount				Shares				Amount
		Preferred Stock								Common Stock Class A
		Shares				Amount				Shares				Amount
Balances, April 30, 2022			4,100			$	99,000				8,502,881			$	850,000
Prior period adjustment for provisions related to depreciation			—				—				—				—
Purchases of common stock			—				—				—				—
Dividend declared at $0.60 per common share outstanding			—				—				—				—
Unrealized gain (loss), net of tax effect			—				—				—				—
Net Income			—				—				—				—
Balances, April 30, 2023			4,100				99,000				8,502,881				850,000
Purchases of common stock			—				—				—				—
Dividend declared at $0.65 per common share outstanding			—				—				—				—
Unrealized gain (loss), net of tax effect			—				—				—				—
Net Income			—				—				—				—
Balance, April 30, 2024			4,100			$	99,000				8,502,881			$	850,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Statements of Stockholders’ Equity

For the Years Ended April 30, 2024 and 2023

 

	Capital				Shares				Amount				Income				Earnings				Total
					Treasury Stock (Common Class A)								Accumulated Other Comprehensive Income (Loss)
	Paid-In Capital				Shares				Amount								Retained Earnings				Total
Balances, April 30, 2022	$	1,934,000				3,571,693			$	(4,547,000	)		$	(137,000	)		$	50,843,000			$	49,042,000
Prior period adjustment for provisions related to depreciation		—				—				—				—				(161,000	)			(161,000	)
Purchases of common stock		—				645				(7,000	)			—				—				(7,000	)
Dividend declared at $0.60 per common share outstanding		—				—				—				—				(2,958,000	)			(2,958,000	)
Unrealized gain (loss), net of tax effect		—				—				—				(24,000	)			—				(24,000	)
Net Income		—				—				—				—				4,757,000				4,757,000
Balance, April 30, 2023		1,934,000				3,572,338				(4,554,000	)			(161,000	)			52,481,000				50,649,000
Balance		1,934,000				3,572,338				(4,554,000	)			(161,000	)			52,481,000				50,649,000
Purchases of common stock		—				33,813				(391,000	)			—				—				(391,000	)
Dividend declared at $0.65 per common share outstanding		—				—				—				—				(3,203,000	)			(3,203,000	)
Dividend declared per common share outstanding		—				—				—				—				(3,203,000	)			(3,203,000	)
Unrealized gain (loss), net of tax effect		—				—				—				24,000				—				24,000
Net Income		—				—				—				—				7,558,000				7,558,000
Balance, April 30, 2024	$	1,934,000				3,606,151			$	(4,945,000	)		$	(137,000	)		$	56,836,000			$	54,637,000
Balance	$	1,934,000				3,606,151			$	(4,945,000	)		$	(137,000	)		$	56,836,000			$	54,637,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Statements of Cash Flows

 

		Year ended				Year ended
		April 30, 2024				April 30, 2023
Cash Flows From Operating Activities:
Net Income		$	7,558,000			$	4,757,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			487,000				445,000
Realized (gain) loss on sale of investments			(170,000	)			224,000
Impairment on investments			22,000				67,000
Unrealized (gain) loss on equity securities			(2,771,000	)			31,000
Impairment on investment in limited land partnership			38,000				—
Provision for credit losses on accounts receivable			16,000				(16,000	)
Reserve for obsolete inventory			(21,000	)			100,000
(Gain) on sale of assets			—				(3,000	)
Deferred income taxes			650,000				(167,000	)
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable			(417,000	)			627,000
Inventories			(93,000	)			(3,604,000	)
Prepaid expenses			418,000				761,000
Other receivables			(7,000	)			(43,000	)
Income tax overpayment			—				(680,000	)
Increase (decrease) in:
Accounts payable			(254,000	)			226,000
Accrued expenses			41,000				111,000
Income tax payable			508,000				—
Net cash from operating activities			6,005,000				2,836,000
Cash Flows From Investing Activities:
Proceeds from sale of assets			8,000				12,000
(Purchase) of property and equipment			(378,000	)			(548,000	)
Proceeds from sale of marketable securities			527,000				25,000
(Purchase) of marketable securities			(699,000	)			(764,000	)
Distribution from investment in limited land partnership			12,000				—
Net cash from investing activities			(530,000	)			(1,275,000	)
Cash Flows From Financing Activities:
(Purchase) of treasury stock			(391,000	)			(7,000	)
Dividends paid			(2,915,000	)			(2,689,000	)
Net cash from financing activities			(3,306,000	)			(2,696,000	)
Net Change in Cash and Cash Equivalents			2,169,000				(1,135,000	)
Cash and Cash Equivalents, beginning of year			4,943,000				6,078,000
Cash and Cash Equivalents, end of year		$	7,112,000			$	4,943,000
Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes paid		$	1,485,000			$	2,070,000
Interest expense			—				—
Cash receipts for:
Income taxes		$	57,000			$	176,000

 

The accompanying notes are an integral part of these financial statements.

 

 

George Risk Industries, Inc.

Notes to Financial Statements

April 30, 2024

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

 

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 custom computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, high security switches, and wire and cable installation tools.

 

Nature of Business — The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors, security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire and cable installation tools and various other sensors and devices.

 

Cash and Cash Equivalents — The Company considers all investments with a maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

 

Accounts Receivable and Allowance for Estimated Credit Losses — Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers. The Company extends credit to its customers based on their credit worthiness and performs continuing credit evaluations of its customers’ financial condition. If the Company believes the extension of credit is not advisable, other payment methods such as prepayments are required. Balances deemed uncollectible by the Company are written off against our allowance for credit loss accounts.

 

The Company maintains an allowance for estimated credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate our allowance for credit losses based on relevant information such as historical experience, current conditions, and future expectation of specifically identified customer balances. This allowance is adjusted as appropriate to reflect current conditions. The Company has recorded an allowance for estimated credit losses of $34,256 for the year ended April 30, 2024, and $17,922 for the year ended April 30, 2023. For the year ended April 30, 2024, the provision for credit losses on accounts receivable was an expense of $16,334 compared to a provision of $17,171 for the year ended April 30, 2023.

 

Concentrations of Credit Risk — 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.

 

Inventories — Inventories are stated at the lower of cost or net realized value. Cost is determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs.

 

F-11

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

  

Property and Equipment — Property and equipment are recorded at cost. Depreciation is calculated based on the following estimated useful lives using the straight-line method:

 

Schedule of Property and Equipment

 

Classification		Useful Life in Years		2024 Cost				2023 Cost
Dies, jigs, and molds		3–7		$	1,871,000			$	1,871,000
Machinery and equipment		5–10			2,832,000				2,632,000
Furniture and fixtures		5–10			222,000				222,000
Improvements		5–32			638,000				605,000
Buildings		20–39			1,151,000				1,151,000
Automotive		3–5			131,000				126,000
Software		2–5			425,000				425,000
Land		N/A			80,000				80,000
Property and equipment, gross					7,350,000				7,112,000
Accumulated depreciation					(5,347,000	)			(5,115,000	)
Property and equipment, net				$	2,003,000			$	1,997,000

 

Depreciation expense of $366,000 and $323,000 was charged to operations for the years ended April 30, 2024 and 2023, 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 (LLP) — In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development in Winter Park-Grand County, CO for investment purposes for a total of $200,000. Over the years, there has been a total of $144,000 of additional contributions to aid in improvements and recurring expenses such as debt service, utilities, taxes, maintenance, insurance, and professional fees. The goal of the investment was to hold the property for resale(s) in 2-5 years, but many efforts to sell the property did not materialize for many years. Fortunately, the sale finally happened on June 30, 2023. Disbursement of the sale proceeds are contingent on finishing wetland restoration of the land, but the LLP made a distribution of the net proceeds in January 2024 in the amount of $12,000. Upon receiving information from the LLP management team, additional details about the contingent ongoing expenses were given to GRI and it has been determined that there is a $38,000 impairment on this investment, which has been accounted for during the year ended April 30, 2024.

 

Subsequently, an additional distribution of the net proceeds from the sale of the LLP in the amount of $255,000 was paid to GRI in July 2024.

 

Intangible Assets — Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined their lives to be indefinite. The intangible asset currently being amortized is intellectual property with a useful life of 15 years. As of April 30, 2024, the Company had $1,028,000 of net intangible assets, compared to net intangible assets of $1,149,000 as of April 30, 2023. Amortization expense was $121,000 and $122,000 for the years ended April 30, 2024 and 2023, respectively.

 

F-12

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

  

As of April 30, 2024, future amortization of intangible assets is expected as follows:

 

Schedule of Future Amortization of Intangible Assets

 

Fiscal year end		Amortization amount
2025		$	121,000
2026		$	121,000
2027		$	121,000
2028		$	121,000
2029		$	121,000
Thereafter		$	423,000
Total		$	1,028,000

 

Basic and Diluted Earnings per Share — The Company computes earnings per share in accordance with Accounting Standards Codification (“ASC”) 260-10-45 Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of income. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings per share exclude all potential common shares if their effect is anti-dilutive.

 

Advertising — Advertising costs are expensed as incurred and are included in selling expenses. Advertising expense amounted to $116,000 and $105,000 for the years ended April 30, 2024 and 2023, respectively.

 

Income Taxes — Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. Measurement of the deferred tax items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and tax bases of the Company’s assets or liabilities result in a deferred tax asset, we evaluate the probability of realizing the future benefits comprising that asset and record a valuation allowance if considered necessary.

 

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. The Internal Revenue Service (“IRS”) may generally access additional income tax records for the most recent three years. This would generally prevent the IRS from opening an examination for years ending on or before April 30, 2020. However, there are exceptions that can extend the statute of limitations to six years, and in some cases, prevent the statute of limitations from ever expiring. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense.

 

F-13

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

  

It has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2023, 2022, and prior. Based on evaluation of the 2024 transactions and events, the Company does not have any material uncertain tax positions that require measurement.

 

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.

 

Fair Value of Financial Instruments — Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 11.

 

Investments — The accounting policies for the Company’s principal investments are as follows: Debt Securities and Equity Securities: Effective May 1, 2018, the Company adopted Accounting Standards Update 2016-01 “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) (“AOCI”). The Company’s debt securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented, net of related changes, in deferred income taxes. Purchases and sales of debt securities and equity securities are recorded on the trade date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out (“FIFO”) basis.

 

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.

 

Revenue Recognition —The Company accounts for revenue using the guidance provided by ASC 606, “Revenue from Contracts with Customers.” The Company recognizes product revenue using a five-step approach to determine the amount and timing of revenue to be recognized. The five-step approach requires (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when performance obligations are satisfied. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Payments received from customers in advance of product shipment or revenue recognition are treated as deferred revenues and recognized when the product is shipped.

 

F-14

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

 

Variable Consideration — The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Certain customers may receive cash and/or non-cash incentives such as cash rebates, customer discounts (such as volume or trade discounts), which are accounted for as variable consideration. In some cases, the Company must apply judgment, including contractual rates and historical payment trends, when estimating variable consideration.

 

Product Returns — In the normal course of business, the Company may allow customers to return products per the provisions in a sale agreement. Estimated product returns are recorded as a reduction in reported revenues with offsetting entries recorded in the balance sheet quarterly based upon historical product return experience, adjusted for known trends, to arrive at the amount of consideration expected to receive.

 

Product Warranties — In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience.

 

Shipping and Handling Costs — The Company considers all shipping and handling to be fulfillment activities and not a separate performance obligation. Shipping and handling costs are recorded as cost of sales.

 

Research and Development Costs — Generally, costs related to the research, design, and development of products are charged to engineering expense as incurred. Certain research and development costs are recognized under assets in the balance sheet.

 

Comprehensive Income — US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures of the components of non-stockholder changes in equity on an annual basis. Total non-stockholder changes in equity include all changes in equity during a period except those resulting from fiscal investments by and distributions to stockholders.

 

Segment Reporting and Related Information — The Company designates the internal organization that is used by management for allocating resources and assessing performance as the source of the Company’s reportable segments. US GAAP also requires disclosures about products and services, geographic area and major customers. At April 30, 2024, the Company operated in three segments organized by security line products, cable and wiring tools (Labor Saving Devices - LSDI) products, and all other products. See Note 9 for further segment information disclosures.

 

Recently Issued Accounting Pronouncements — In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material.

 

In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

 

F-15

 

1.	Nature of Business and Summary of Significant Accounting Policies, continued

 

Subsequent Events – Other than those discussed at the Investment in Limited Land Partnership section of this note, Management has evaluated all events or transactions that occurred after April 30, 2024 through the date of the filing. During this period, the Company did not have any material recognizable subsequent events.

 

 

2.	Inventories

 

Inventories at April 30, 2024 and 2023, consisted of the following:

 

Schedule of Inventories

 

		2024				2023
Raw materials		$	10,130,000			$	9,886,000
Work in process			753,000				678,000
Finished goods			1,042,000				1,267,000
Inventory, gross			11,925,000				11,831,000
Less: allowance for obsolete inventory			(367,000	)			(388,000	)
Inventories, net		$	11,558,000			$	11,443,000

 

F-16

 

 

3.	Investments

 

The Company has investments in publicly traded equity securities, state and municipal debt securities, REITs, and money markets and they are recorded at fair value. The investments in debt securities, which include municipal bonds and bond funds, mature between July 2024 and July 2041. The Company uses the average cost method to determine the cost of equity 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, 2024 and 2023, investments consisted of the following:

 

Schedule of Investments

 

						Gross				Gross
Investments at		Cost				Unrealized				Unrealized				Reported
April 30, 2024		Basis				Gains				Losses				Value
Municipal bonds		$	7,057,000			$	28,000			$	(100,000	)		$	6,985,000
REITs		$	74,000			$	-			$	(8,000	)		$	66,000
Equity securities		$	17,408,000			$	9,303,000			$	(209,000	)		$	26,502,000
Money Markets and CDs		$	935,000			$	-			$	-			$	935,000
Total		$	25,474,000			$	9,331,000			$	(317,000	)		$	34,488,000

 

						Gross				Gross
Investments at		Cost				Unrealized				Unrealized				Reported
April 30, 2023		Basis				Gains				Losses				Value
Municipal bonds		$	5,396,000			$	46,000			$	(230,000	)		$	5,212,000
REITs		$	93,000			$	-			$	(22,000	)		$	71,000
Equity securities		$	18,605,000			$	6,915,000			$	(501,000	)		$	25,019,000
Money Markets and CDs		$	1,060,000			$	1,000			$	-			$	1,061,000
Total		$	25,154,000			$	6,962,000			$	(753,000	)		$	31,363,000

 

Marketable securities that are classified as 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 income 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 income.

 

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 $22,000 and $67,000 for the years ended April 30, 2024 and 2023, respectively.

 

The Company’s investments are actively traded in the stock and bond markets. Therefore, there is either a realized gain or loss that is recorded when a sale happens. For the fiscal year ended April 30, 2024, the Company had sales of equity securities which yielded gross realized gains of $789,000 and gross realized losses of $613,000. For the same period, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $28,000. Comparatively, the Company recorded gross realized gains on equity securities of $512,000 and gross realized losses of $740,000 for the fiscal year ending April 30, 2023. As for debt securities, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $63,000 for the fiscal year ending April 30, 2023. The gross realized loss numbers include the impaired figures listed in the previous paragraph. Additionally, proceeds from sales of securities available for sale were $527,000 and $25,000 for the years ended April 30, 2024 and 2023 respectively.

 

F-17

 

 

3.	Investments, continued

 

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, as of April 30, 2024 and 2023.

 

Schedule of Unrealized Loss Breakdown by Investment Type

 

Unrealized Loss Breakdown by Investment Type as of April 30, 2024

 Schedule of Unrealized Loss Breakdown by Investment Type

Description		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
		Less than 12 months								12 months or greater								Total
Description		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
Municipal bonds		$	5,897,000			$	(20,000	)		$	773,000			$	(80,000	)		$	6,670,000			$	(100,000	)
REITs		$	—			$	—			$	66,000			$	(8,000	)		$	66,000			$	(8,000	)
Equity securities		$	2,255,000			$	(72,000	)		$	766,000			$	(137,000	)		$	3,021,000			$	(209,000	)
Total		$	8,152,000			$	(92,000	)		$	1,605,000			$	(225,000	)		$	9,757,000			$	(317,000	)

 

Unrealized Loss Breakdown by Investment Type as of April 30, 2023

 

Description		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
		Less than 12 months								12 months or greater								Total
Description		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
Municipal bonds		$	868,000			$	(6,000	)		$	3,769,000			$	(224,000	)		$	4,637,000			$	(230,000	)
REITs		$	36,000			$	(9,000	)		$	35,000			$	(13,000	)		$	71,000			$	(22,000	)
Equity securities		$	3,048,000			$	(140,000	)		$	2,209,000			$	(361,000	)		$	5,257,000			$	(501,000	)
Total		$	3,952,000			$	(155,000	)		$	6,013,000			$	(598,000	)		$	9,965,000			$	(753,000	)

 

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 as of April 30, 2024 and 2023.

 

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 as of April 30, 2024 and 2023.

 

F-18

 

 

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. 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 and Roth (taxable) 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 $60,000 and $58,000 were paid during the years ending April 30, 2024 and 2023, respectively.

 

5.	Stockholders’ Equity

 

Preferred Stock—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. The holders of the convertible preferred stock shall be entitled to a dividend at a rate up to $1 per share annually, payable quarterly as declared by the board of directors. No dividends were declared or paid during the two years ended April 30, 2024 and 2023.

 

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—The holders of the Class A common stock are entitled to receive dividends as declared by the board of directors. A dividend for the four prior quarters and provision has been made for the full dividend in the current fiscal year.

 

During the fiscal year ended April 30, 2024, the Company purchased 33,813 shares of Class A common stock. This was initiated by stockholders contacting the Company.

 

Stock Transfer Agent—The Company does not have an independent stock transfer agent. The Company maintains all stock records.

 

F-19

 

 

6.	Earnings Per Share

 

Basic and diluted earnings per share, assuming convertible preferred stock was converted for each period presented are:

 

Schedule of Basic and Diluted Earnings Per Share

 

		April 30, 2024
		Income				Shares				Per-Share
		(Numerator)				(Denominator)				Amount
Net income		$	7,558,000
Basic EPS		$	7,558,000				4,913,676			$	1.54
Effect of dilutive Convertible Preferred Stock			–				20,500				(0.01	)
Diluted EPS		$	7,558,000				4,934,176			$	1.53

 

		April 30, 2023
		Income				Shares				Per-Share
		(Numerator)				(Denominator)				Amount
Net income		$	4,757,000
Basic EPS		$	4,757,000				4,930,835			$	0.96
Effect of dilutive Convertible Preferred Stock			–				20,500				—
Diluted EPS		$	4,757,000				4,951,335			$	0.96

 

 

7.	Commitments, Contingencies, and Related Party Transactions

 

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 $6,712,000 and $4,637,000 for the years ended April 30, 2024 and 2023, respectively. The Company also received interest income from FirsTier Bank in the amount of approximately $170,000 for the year ended April 30, 2024 and $103,000 for the year ended April 30, 2023.

 

From time to time, the Company may be involved in litigation in the ordinary course of business. The Company is not currently involved in any litigation that we believe could have a material adverse effect on its financial condition or results of operations.

 

F-20

 

 

8.	Income Taxes

 

The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future income and deductions implicit in the Balance Sheets. The income tax provision for the fiscal year ended April 30, 2024 and 2023 consisted of the following:

 

Schedule of Income Tax Provision

 

Year Ended April 30,		2024				2023
Current:
Federal		$	1,604,000				1,051,000
State			511,000				175,000
Deferred:
Federal			495,000				(108,000	)
State			155,000				(60,000	)
Total income tax provision		$	2,765,000			$	1,058,000

 

Reconciliation of income taxes with Federal and State taxable income:

 

Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income

 

		2024				2023
Income before income taxes		$	10,323,000			$	5,815,000
State income tax deduction			(478,000	)			(351,000	)
Interest and dividend income			(489,000	)			(511,000	)
Nondeductible expenses and timing differences			(2,379,000	)			(11,000	)
Taxable income		$	6,977,000			$	4,942,000

 

The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:

 

Schedule of Statutory Rate to Income Before Taxes

 

		2024				2023
Income tax provision at statutory rate		$	2,916,000			$	1,657,000
Increase (decrease) income taxes resulting from:
State income taxes			(135,000	)			(100,000	)
Interest and dividend income			(138,000	)			(146,000	)
Deferred taxes			650,000				(168,000	)
Other temporary and permanent differences			(528,000	)			(185,000	)
Income tax expense		$	2,765,000			$	1,058,000
Federal tax rate			21.00	%			21.00	%
State tax rate			7.25	%			7.50	%
Blended statutory rate			28.25	%			28.50	%

 

Deferred tax assets (liabilities) consist of the following components as of April 30, 2024 and 2023:

 

Summary of Deferred Tax Assets (Liabilities)

 

		2024				2023
Deferred tax assets (liabilities):
Depreciation		$	(312,000	)		$	(276,000	)
Capitalized R&D expense			320,000			$	165,000
Inventory valuation			104,000				111,000
Allowance for doubtful accounts			10,000				5,000
Accrued vacation			37,000				37,000
Accumulated unrealized (gain)/loss on investments			(2,547,000	)			(1,769,000	)
Net deferred tax assets (liabilities)		$	(2,388,000	)		$	(1,727,000	)

 

F-21

 

 

9.	Business Segments

 

The following is financial information relating to industry segments:

 

Schedule of Financial Information Relating to Industry Segments

 

		Quarter ended				Year ended				Year ended
		April 30,				April 30,				April 30,
		2024				2024				2023
		(Unaudited)
Net revenue:
Security alarm products		$	5,002,000			$	19,630,000			$	17,428,000
Cable & wiring tools			368,000				1,484,000				1,870,000
Other products			222,000				653,000				681,000
Total net revenue		$	5,592,000			$	21,767,000			$	19,979,000
Income from operations:
Security alarm products			1,457,000				5,672,000				4,414,000
Cable & wiring tools			110,000				429,000				474,000
Other products			48,000				188,000				172,000
Total income from operations		$	1,615,000			$	6,289,000			$	5,060,000
Depreciation and amortization:
Security alarm products			56,000				202,000				194,000
Cable & wiring tools			30,000				121,000				122,000
Other products			24,000				92,000				81,000
Corporate general			13,000				72,000				48,000
Total depreciation and amortization		$	123,000			$	487,000			$	445,000
Capital expenditures:
Security alarm products			97,000				321,000				237,000
Cable & wiring tools			—				—				—
Other products			—				20,000				268,000
Corporate general			18,000				37,000				43,000
Total capital expenditures		$	115,000			$	378,000			$	548,000

 

		April 30, 2024			April 30, 2023
Identifiable assets:
Security alarm products		15,263,000			14,251,000
Cable & wiring tools		2,082,000			2,548,000
Other products		859,000			981,000
Corporate general		42,576,000			38,171,000
Total assets	$	60,780,000		$	55,951,000

 

F-22

 

 

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, 2024 and 2023, the Company had uninsured balances of $6,494,000, and $4,530,000, 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 $151,000 and $56,000 for the years ending April 30, 2024 and 2023, 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 37% of total sales for the year ended April 30, 2024 and 36% of total sales for the year ended April 30, 2023. This distributor accounted for 56% and 44% of accounts receivable at April 30, 2024 and 2023, respectively.

 

Security switch sales made up 90% of total sales for the fiscal year ending April 30, 2024 and 87% of total sales for the fiscal year ending April 30, 2023.

 

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 the use of option pricing models, discounted cash flow models and similar techniques.

 

Investments and Marketable Securities

 

As of April 30, 2024 and 2023, The Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as certain state and municipal bonds. 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.

 

Schedule of Assets Measured at Fair Value on Recurring Basis

 

		Level 1				Level 2				Level 3				Total
		Assets Measured at Fair Value on a Recurring Basis as of April 30, 2024
		Level 1				Level 2				Level 3				Total
Assets:
Municipal Bonds			—			$	6,985,000				—			$	6,985,000
REITs			—			$	66,000				—			$	66,000
Equity Securities		$	26,502,000				—				—			$	26,502,000
Money Markets and CDs		$	935,000				—				—			$	935,000
Total fair value of assets measured on a recurring basis		$	27,437,000			$	7,051,000				—			$	34,488,000

 

 

		Level 1				Level 2				Level 3				Total
		Assets Measured at Fair Value on a Recurring Basis as of April 30, 2023
		Level 1				Level 2				Level 3				Total
Assets:
Municipal Bonds			—			$	5,212,000				—			$	5,212,000
REITs			—			$	71,000				—			$	71,000
Equity Securities		$	25,019,000				—				—			$	25,019,000
Money Markets and CDs		$	1,061,000				—				—			$	1,061,000
Total fair value of assets measured on a recurring basis		$	26,080,000			$	5,283,000				—			$	31,363,000

 

 

 

Item 9

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

 

There were no disagreements with accountants on accounting and financial disclosure.

 

Item 9A

Controls and Procedures

 

Evaluation of disclosure controls and procedures:

 

Based on their evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of April 30, 2024 our president and chief executive officer (also working as our chief financial officer) has concluded that our disclosure controls and procedures are not effective such that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and (ii) accumulated and communicated to our management, including our chief executive officer (also working as our chief financial officer), as appropriate to allow timely decisions regarding disclosure. A control system cannot provide absolute assurance, however, that the objectives of the control systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

 

Internal control over financial reporting:

 

The Company’s management is responsible for establishing and maintaining adequate internal controls over financial reporting for the Company. Due to limited resources, Management conducted an evaluation of internal controls based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). For the year ended April 30, 2023, Management’s evaluation determined that our internal control over financial reporting was ineffective due to the material weakness discussed below.

 

Management’s assessment identified the following material weakness in internal control over financial reporting for the year ended April 30, 2023:

 

●

The small size of our Company limits our ability to achieve the desired level of separation of duties for proper internal controls and financial reporting, particularly as it relates to financial reporting to assure material disclosures or implementation of newly issued accounting standards are included.  A secondary review of annual and quarterly filings does occur with an outside party.  Due to the departure of the Controller, the current CEO and CFO roles are being fulfilled by the same individual.  We do not have an audit committee.  We do not believe we have met the full requirement for separation of duties for financial reporting purposes.

 

 

The following steps were taken to mitigate the above material weakness during the year ended April 30, 2024:

 

●	The Company hired a part-time controller in March 2023;and in March 2024 this controller became a full-time position with the Company.  This hire has enabled more separation of duties within the accounting department and provided an opportunity for a second internal review of financial information.
●	We continue to have our quarterly and annual financial statements reviewed by a third-party CPA. This third party ensures we have fulfilled our material disclosures and that newly issued accounting standards have been reviewed and addressed if necessary.
●	We have begun increasing our knowledge and training around internal controls over financial reporting and will continue to do so.

 

A material weakness in internal control over financial reporting is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of our financial reporting.

 

Management believes that the steps the Company has taken to mitigate the 2023 material weakness have improved our internal controls; however, due to our size the CEO and the CFO roles continue to be filled by the same individual, so we have not achieved complete segregation of duties, and we still do not have an audit committee. As such, Management is optimistic in our ability to downgrade the material weakness to a significate deficiency in a future period.

 

Because of the material weakness and significant deficiency in internal control over financial reporting described above, the Company’s management has concluded that, as of April 30, 2024 and 2023, the Company’s internal control over financial reporting was not effective based on the criteria in Internal Control - Integrated Framework issued by the COSO.

 

We will continue to follow the standards for the Public Company Accounting Oversight Board (United States) for internal control over financial reporting to include procedures that:

 

●	Pertain to the maintenance of records in reasonable detail that fairly reflect the transactions and dispositions of the Company’s assets;
●	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and
●	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

 

This annual report does not include an attestation report of the Corporation’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Corporation’s independent registered public accounting firm pursuant to Section 404(c) of the Sarbanes-Oxley Act of 2002, as amended, that permit the Corporation to provide only the management’s report in this annual report.

 

Item 9B

Other Information

 

None.

 

 

Part III

 

Item 10

Directors and Executive Officers and Corporate Governance

 

(a & b) Identification of Directors and Executive Officers

 

All the executive officers of the corporation serve at the pleasure of the board of directors and do not have fixed terms.

 

The following information as of April 30, 2024, is furnished with respect to each director and executive officer:

 

Name		Principal Occupation or Employment		Age		Director or Officer Since
Stephanie M. Risk-McElroy		Chairman of the Board, Chief Executive Officer, and Chief Financial Officer		52		August 8,1999
Ryan T. McElroy		Secretary/Treasurer		49		December 13, 2023
Donna Debowey		Director, retired GRI plant manager		86		July 12, 2005
Joel H. Wiens		Director, FirsTier Banks		94		September 6, 2007
Bonita P. Risk		Director, Stock Transfer Agent at GRI		74		March 15, 2013
Jerry Knutsen		Director, retired business owner		81		August 29, 2016

 

The following director compensation table is furnished with respect to each director that served during the year ended April 30, 2024:

 

Name		Director’s Fees Paid				Stock Awards				Option Awards				Non-equity incentive plan compen-sation				Non-qualified deferred compensation earnings				Total
Stephanie Risk-McElroy (1)			—				—				—				—				—				—
Sharon Westby (1)			—				—				—				—				—				—
Ryan T. McElroy (1)			—				—				—				—				—				—
Donna Debowey (2)		$	800				—				—				—				—			$	800
Joel H. Wiens (2)		$	600				—				—				—				—			$	600
Bonita P. Risk (1)			—				—				—				—				—				—
Jerry Knutsen		$	600				—				—				—				—			$	600

 

The inside directors (1), or employees of the Company, do not receive additional compensation for their services. Outside directors (2) are paid $200 per meeting for their services.

 

(c) Identification of Certain Significant Employees

 

None.

 

(d) Family Relationships

 

Stephanie Risk-McElroy and Bonita Risk have a daughter - mother relationship. Stephanie Risk-McElroy and Ryan McElory are married. Bonita Risk and Ryan McElroy are mother-in-law/son-in-law, respectively.

 

 

(e) Business Experience of Directors and Executive Officers

 

Stephanie Risk-McElroy, Chairman of the Board, Chief Executive Officer, and Chief Financial Officer, has over thirty years of experience in the accounting field. Mrs. Risk-McElroy graduated from Hastings College with a degree in Accounting. Stephanie worked for Platte Valley Sales from May 1990 until January 1997 as a staff accountant. In 1997, she pursued her career with an accounting manager position at Kershner’s Auto Korner in Hastings, NE. She joined the accounting staff at GRI in 1999 and then was promoted to CFO upon retirement of the prior CFO. Upon the death of her father, Ken R. Risk, in February 2013, she was appointed to the position of Chairman of the Board and Chief Executive Officer.

 

Mrs. Risk-McElroy serves on the Board of Directors of GRI, as a direct link to the financial condition of the Company. She and her staff oversee all the accounting obligations of the Company. She has knowledge and experience in business outside of the Company that makes her an asset to the Board. And as President of the Company, she oversees all of the day-to-day operations as well.

 

Ryan McElroy, the Corporate Secretary, started his career by working on the family farm and ranch. In 1993 he attended college in McCook, NE for Criminal Justice and worked at the local Radio Shack, moving up to being responsible for opening/closing duties. After college he moved back to the Sidney, NE area and started working at Wheelers/Country General as a tire tech and soon was moved up to opening/closing duties. He then became employed as a Jailer with the Cheyenne County Sheriff’s Office and became a Deputy a few years later. He went back to college in Sidney and studied Information Technology (IT) while working for the Cheyenne County Community Center. He then went to a local parts store as a counter man then moved up to opening/closing and order entry. He was transferred to Chappel, NE store where he became Manager until a position opened at GRI as the Purchasing Manager and worked his way up to Vice President of Operations.

 

Donna Debowey, Director, worked in various retail stores and restaurants until she started at GRI in 1968. She started on the production line, but quickly worked her way up the ranks. She has been a Production Line Supervisor, Director of Quality Control and was named Plant Manager and Senior Vice President in 1998. She held that position until her retirement in 2003.

 

Mrs. Debowey made the transition from employee of GRI to a member of the Board of Directors with no hesitation after her retirement. She brings her 50+ years of experience in the industry to the table and has a vested interest in seeing the continued success of the Company that she helped to build.

 

Joel H. Wiens, Director, is an entrepreneur with many business interests. He is a director and principal shareholder of FirsTier Banks Nebraska/Wyoming, director of FirsTier II BanCorporation (which owns FirsTier Bank Nebraska/Wyoming), Chairman of Rite-A-Way Industries (lodging and hospitality industries), real estate investments, and ranching and livestock.

 

Mr. Wiens took his place on the Board of Directors when his predecessor Mike Nelson, (who is affiliated with Mr. Wiens’ financial institutions) retired from the Board to take another position within the banks and moved away. Joel’s knowledge and experience in business and industry span 60+ years and serves as a valuable asset to GRI.

 

Bonita P. Risk, Director, attended Wayne State College, in Wayne, Nebraska. Upon returning back home to Columbus, NE, she worked in factory positions. Upon her marriage to Ken Risk, she became a homemaker, raising 3 children and working at several sales positions. In 1981, she and Ken started Platte Valley Sales in Hastings, Nebraska, and her expertise was in accounting and sales. For 8 years, she ran the Hastings business while Ken devoted his time to both GRI in Kimball and Platte Valley Sales in Hastings. Ken and Bonita moved to Kimball in 1997. In 1998, she began at GRI in sales support. She continues in sales support and became the Company stock transfer agent in 2004 upon the retirement of Eileen Risk and is an assistant to the chief financial officer.

 

Jerry Knutsen, Director, has lived in Kimball, Nebraska most of his life. He left the community for a few years to attend the University of Nebraska at Lincoln. Before his retirement, Jerry owned and operated several businesses over his career, including Knutsen Oil, Inc., Marv’s LP Gas, Inc., and Jerry Knutsen, Inc., and he co-owned Kimball Ford-Lincoln-Mercury. He served 24 years and held several positions on the school board in Kimball, NE. Mr. Knutsen is a past member and president of The Nebraska Propane Gas Association and The Nebraska Petroleum Marketers & Convenience Store Association. Other boards he is presently serving on include the Kimball Schools Foundation Board of Directors and Kimball Health Services Board of Trustees.

 

(f) Involvement in Certain Legal Proceedings

 

None.

 

(g) Promoters and Control Persons

 

None.

 

 

Compliance with Section 16(a) of the Securities Exchange Act of 1934

 

Section 16(a) of the Exchange Act requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports that they file.

 

Based solely on our review of copies of the Section 16(a) reports filed for the fiscal year ended April 30, 2024, we believe that all filing requirements applicable to our officers, directors, and greater than 10% beneficial owners were complied with.

 

Code of Ethics and Code of Business Conduct

 

The Company does not have a written code of ethics at this time. The Company is a small business and employees know that the President of the Company must approve all material business. The Company also has checks and balances to make sure that there is not any fraud or illegal activities taking place.

 

Corporate Governance

 

Nominating and Compensation Committees

 

We do not have standing nominating or compensation committees, or committees performing similar functions. Our Board of Directors believes that it is not necessary to have a standing compensation committee at this time because our Board of Directors adequately performs the functions of such committees.

 

Our Board of Directors also is of the view that it is appropriate for us not to have a standing nominating committee because our Board of Directors has performed and will perform adequately the functions of a nominating committee. Our Board of Directors has not adopted a charter for the nomination committee. There have not been any defined policy or procedure requirements for stockholders to submit recommendations or nomination for directors. Our Board of Directors does not believe that a defined policy with regard to the consideration of candidates recommended by stockholders is necessary at this time because we believe that, given the early stages of our development, a specific nominating policy would be premature and of little assistance until our business operations are at a more advanced level.

 

Audit Committee

 

We do not have a standing audit committee at the present time. Our Board of Directors has determined that we do not have a board member that qualifies as an “audit committee financial expert” as defined in Item 401(h) of Regulation S-K, nor do we have a board member that qualifies as “independent” as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.

 

Other Committees

 

All proceedings of our Board of Directors for the year ended April 30, 2024, were conducted by resolutions consented to in writing by our directors and filed with the minutes of the proceedings of the Board of Directors. Our Company currently does not have any committees.

 

 

Item 11

Executive Compensation

 

The following table sets forth certain information regarding the compensation paid to or accrued by the Company to executive officers for services rendered in all capacities during each of the Company’s fiscal years ended April 30, 2024 and 2023.

 

Name and principal position		Year				Salary				Bonus				Stock Awards				Option Awards				Non-Equity Incentive Plan Compen-sation				Change in Pension Value and Non-qualified Deferred Compen-sation Earnings				All Other Compen-sation				Total
Bonita Risk, Director,			2024			$	44,000			$	—				—				—				—				—			$	147,000			$	191,000
Shareholder, Employee			2023			$	42,000			$	—				—				—				—				—			$	132,000			$	174,000
Stephanie Risk-McElroy,			2024			$	110,000			$	—				—				—				—				—			$	66,000			$	176,000
CEO/CFO, Director, Shareholder			2023			$	104,000			$	—				—				—				—				—			$	56,000			$	160,000
Scott McMurray,			2024			$	57,000			$	—				—				—				—				—			$	101,000			$	158,000
Director of Sales			2023			$	55,000			$	—				—				—				—				—			$	83,000			$	138,000

 

Bonita Risk, Stephanie Risk-McElroy, and Scott McMurray receive a base salary and bonus/commission based on a percentage of sales for the year.

 

There were no other officers compensated in excess of $100,000 for the fiscal years ended April 30, 2024 and 2023.

 

 

Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The following table sets forth certain information regarding our Common Stock beneficially owned as of April 30, 2024, for (i) each stockholder known to be the beneficial owner of 5% or more of our outstanding Common Stock, (ii) each executive officer and director, and (iii) all executive officers and directors as a group. In general, a person is deemed to be a beneficial owner of a security if that person has or shares the power to vote or direct the voting of such security, or the power to dispose or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which the person has the right to acquire beneficial ownership within 60 days. Shares of Common Stock subject to options, warrants or convertible securities exercisable or convertible within 60 days are deemed outstanding for computing the percentage of the person or entity holding such options, warrants or convertible securities but are not deemed outstanding for computing the percentage of any other person. Percentages are determined based on 4,896,730 shares of Common Stock of the Company issued and outstanding and less treasury shares as of April 30, 2024. To the best of our knowledge, subject to community and marital property laws, all persons named have sole voting and investment power with respect to such shares, except as otherwise noted.

 

Name and Address of Beneficial Owner (1)		Number of Shares of Common Stock (2)				% of Class of Stock Outstanding (3)
Executive Officers and Directors:
Bonita Risk – Director			2,947,128				60.19	%
The above director has beneficial ownership over the Kenneth Risk Trust that owns 2,187,056 shares, Bonita Risk Family Irrevocable Trust that owns 732,470 shares, and 27,602 shares owned personally. As a result, combined, they have voting and shared dispositive control.
Stephanie M. Risk-McElroy Chairman, CEO, & CFO			1,775				Less than 1%
Donna Debowey – Director			500				Less than 1%
All Officers and Directors as a group			2,949,403				60.23	%

 

(1)	Unless otherwise indicated, the address of the named beneficial owner is George Risk Industries, Inc., 802 S. Elm St., Kimball, NE  69145.
(2)	Security ownership information for named beneficial owners (other than executive officers and directors of the Company) is taken from statements filed with the Securities and Exchange Commission pursuant to information made known by the Company and from the Company’s transfer agent.
(3)	Based on the net shares outstanding as of April 30, 2024.  This consists of Common Shares issued and outstanding (8,502,881) less treasury shares (3,606,151).

 

Changes in Control

 

We are not aware of any arrangements, including any pledge by any person of our securities, the operation of which may result in a change in control of the Company.

 

Item 13

Certain Relationships and Related Transactions, and Director Independence

 

During each of three years ended April 30, 2024, 2023, and 2022, the Company executed transactions with related entities and individuals. Each of the transactions was in terms at least as favorable as could be obtained from unrelated third parties.

 

Related Party		2024				2023				2022
Bank Balances Joel Wiens, Director		$	6,711,558			$	4,636,584			$	5,058,307
Interest Income Joel Wiens, Director		$	170,187			$	102,713			$	58,751

 

 

Item 14

Principal Accountant Fees and Services

 

1)	Audit Fees

 

For each of the last two fiscal years the Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for the audit of our annual financial statements and review of our financial statements for Form 10-Q. The amounts are listed below:

 

FYE 2024		$	84,500			Haynie & Company
		$	1,613			Carey Schroeder, CPA
FYE 2023		$	78,000			Haynie & Company
		$	1,763			Carey Schroeder, CPA

 

2)	Audit-Related Fees

 

 

The Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for the audit of the Company’s employee benefit plan. The amounts are listed below:

 

FYE 2024		$	10,500			Haynie & Company
FYE 2023		$	10,500			Haynie & Company

3)

Tax Fees

 

The Company incurred aggregate fees or expenses for professional services rendered by tax accountants for tax compliance, tax advice, and tax planning for the last two fiscal years.

 

FYE 2024		$	9,100			Haynie & Company
		$	4,840			Tax Resources Group, Inc.
FYE 2023		$	6,000			Haynie & Company
		$	4,900			Tax Resources Group, Inc.

 

4)	All Other Fees

 

The Company incurred aggregate fees and expenses for professional services rendered by our principal accountants for restatement of some of the Company’s 10-Qs and 10-K. The amounts are listed below:

 

FYE 2024		None
FYE 2023		None

 

5)	The Board of Directors considered whether, and determined that, the auditor’s provisions of non-audit services were compatible with maintaining the auditor’s independence. All the services described above were approved by the Board of Directors pursuant to its policies and procedures.

 

 

Part IV

 

Item 15

Exhibits and Financial Statement Schedules

 

3.(1).a	Articles of Incorporation—Filed as Exhibit 5 to the Registrant’s Form 10–K for the fiscal year ended April 10, 1970, and incorporated by reference herein
3.(i).b	Certificate of Amendment to the Articles of Incorporation of the Registrant—Filed as Exhibit 1.2 to the Registrant’s Form 10–K for the fiscal year ended April 30, 1971, and incorporated by reference herein
3.(ii).c	By-laws—Filed as Exhibit 1.3 to the Registrant’s Form 10–K for the fiscal year ended April 10, 1971, and incorporated by reference herein
10.1	Vendor agreement dated as of February 16, 2011 between Honeywell International, Inc., acting through the ADI business of its Security Group (“ADI”) and George Risk Industries, Inc. – Filed as Exhibit 10.1 to the Registrant’s Form 10-K for the fiscal year ended April 30, 2012, and incorporated by reference herein. *
31.1	Certification pursuant to Rule 13a-14(a) of the Chief Executive Officer (Principal Financial and Accounting Officer)
32.1	Certification pursuant to 18 U.S.C. 1350 of the Chief Executive Officer (Principal Financial and Accounting Officer)
101.	INS Inline XBRL Instance Document
101.	SCH Inline XBRL Taxonomy Extension Schema Document
101.	CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.	DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.	LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.	PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934.

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

/s/ STEPHANIE M. RISK-MCELROY		July 31, 2024
STEPHANIE M. RISK-MCELROY President and Chairman of the Board		Date

 

Pursuant to the requirements of the securities exchange act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

/s/ STEPHANIE M. RISK-MCELROY		July 31, 2024
STEPHANIE M. RISK-MCELROY President and Chairman of the Board		Date
/s/ DONNA DEBOWEY		July 31, 2024
DONNA DEBOWEY Director		Date
/s/ JOEL H. WIENS		July 31, 2024
JOEL H. WIENS Director		Date
/s/ BONITA P. RISK		July 31, 2024
BONITA P. RISK Director		Date
/s/ JERRY KNUTSEN		July 31, 2024
JERRY KNUTSEN Director		Date

 

 

 

Exhibit 31.1

 

CERTIFICATION OF STEPHANIE M. RISK-MCELROY, CHIEF EXECUTIVE AND FINANCIAL OFFICER, PURSUANT TO RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Stephanie M. Risk-McElroy, certify that:

 

(1) I have reviewed this annual report on Form 10K of George Risk Industries, Inc.;

 

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3) Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the smaller reporting company issuer as of, and for, the periods presented in this report;

 

(4) The smaller reporting company issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the smaller reporting company issuer and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the smaller reporting company issuer, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the smaller reporting company issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the smaller reporting company issuer’s internal control over financial reporting that occurred during the smaller reporting company issuer’s most recent fiscal quarter (the smaller reporting company issuer’s fourth fiscal quarter in the case of this annual report) that has materially affected, or is reasonably likely to materially affect, the smaller reporting company issuer’s internal control over financial reporting; and

 

(5) The smaller reporting company issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the smaller reporting company issuer’s auditors and the audit committee of the smaller reporting company issuer’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the smaller reporting company issuer’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the smaller reporting company issuer’s internal control over financial reporting.

 

Date: July 31, 2024

 

/s/ Stephanie M. Risk-McElroy
Stephanie M. Risk-McElroy
Chief Executive and Financial Officer

 

 

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE AND FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Stephanie M. Risk-McElroy, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the annual report of George Risk Industries, Inc. on Form 10-K dated April 30, 2024 fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10K fairly presents in all material respects the financial condition and results of operations of George Risk Industries, Inc.

 

Date: July 31, 2024	/s/ Stephanie M. Risk-McElroy
	Stephanie M. Risk-McElroy
	Chief Executive and Financial Officer

 

 

v3.24.2

Cover - USD ($)	12 Months Ended
	Apr. 30, 2024	Jul. 30, 2024	Oct. 31, 2023
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2024
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--04-30
Entity File Number	000-05378
Entity Registrant Name	George Risk Industries, Inc.
Entity Central Index Key	0000084112
Entity Tax Identification Number	84-0524756
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	802 South Elm St.
Entity Address, City or Town	Kimball
Entity Address, State or Province	NE
Entity Address, Postal Zip Code	69145
City Area Code	308
Local Phone Number	235–4645
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 23,660,000
Entity Common Stock, Shares Outstanding		4,896,730
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Name	Haynie and Company
Auditor Location	Salt Lake City, UT
Auditor Firm ID	457
Class A Common Stock, $0.10 par value
Title of 12(b) Security	Class A Common Stock, $0.10 par value
Trading Symbol	RSKIA
Convertible Preferred Stock, $20 stated value
Title of 12(b) Security	Convertible Preferred Stock, $20 stated value
Trading Symbol	RSKIA

v3.24.2

Balance Sheets - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Current Assets:
Cash and cash equivalents	$ 7,112,000	$ 4,943,000
Investments and securities	34,488,000	31,363,000
Accounts receivable:
Trade, net of allowance for credit losses of $34,256 and $17,922 for 2024 and 2023, respectively	3,903,000	3,503,000
Other	66,000	59,000
Income tax overpayment		403,000
Inventories, net	11,558,000	11,443,000
Prepaid expenses	315,000	651,000
Total Current Assets	57,442,000	52,365,000
Property and Equipment, at cost, net	2,003,000	1,997,000
Other Assets
Investment in Limited Land Partnership, at cost	294,000	344,000
Projects in process	13,000	83,000
Other		13,000
Total Other Assets	307,000	440,000
Intangible Assets, net	1,028,000	1,149,000
TOTAL ASSETS	60,780,000	55,951,000
Current Liabilities
Accounts payable, trade	291,000	546,000
Dividends payable	2,853,000	2,565,000
Deferred income	23,000	43,000
Accrued expenses	483,000	421,000
Income tax payable	105,000
Total Current Liabilities	3,755,000	3,575,000
Long-Term Liabilities
Deferred income taxes	2,388,000	1,727,000
Total Long-Term Liabilities	2,388,000	1,727,000
Total Liabilities	6,143,000	5,302,000
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 (loss)	(137,000)	(161,000)
Retained earnings	56,836,000	52,481,000
Less: treasury stock, 3,606,151 and 3,572,338 shares, at cost	(4,945,000)	(4,554,000)
Total Stockholders’ Equity	54,637,000	50,649,000
TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY	$ 60,780,000	$ 55,951,000

v3.24.2

Balance Sheets (Parenthetical) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Trade, allowance for credit loss, current	$ 34,256	$ 17,922
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Class A common stock, par value	$ 10	$ 10
Class A common stock, shares authorized	10,000,000	10,000,000
Class A common stock, shares issued	8,502,881	8,502,881
Class A common stock, shares outstanding	8,502,881	8,502,881
Treasury stock, shares	3,606,151	3,572,338
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

v3.24.2

Income Statements - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Income Statement [Abstract]
Net Sales	$ 21,767,000	$ 19,979,000
Less: Cost of Goods Sold	(10,926,000)	(10,605,000)
Gross Profit	10,841,000	9,374,000
Operating Expenses:
General and Administrative	1,492,000	1,380,000
Selling	2,958,000	2,836,000
Engineering	102,000	98,000
Total Operating Expenses	4,552,000	4,314,000
Income From Operations	6,289,000	5,060,000
Other Income (Expense)
Other Income	37,000	6,000
Impairment on Investment in Limited Land Partnership	(38,000)
Dividend and Interest Income	1,116,000	1,068,000
Unrealized Gain (Loss) on Equity Securities	2,771,000	(31,000)
Gain (Loss) on Sale of Investment	148,000	(291,000)
Gain on Sale of Assets		3,000
Total Other Income (Expense)	4,034,000	755,000
Income Before Provisions for Income Taxes	10,323,000	5,815,000
Provisions for Income Taxes
Current Expense	2,115,000	1,226,000
Deferred tax expense (benefit)	650,000	(168,000)
Total Income Tax Expense	2,765,000	1,058,000
Net Income	$ 7,558,000	$ 4,757,000
Earnings Per Share of Common Stock
Basic	$ 1.54	$ 0.96
Diluted	$ 1.53	$ 0.96
Weighted Average Number of Common Shares Outstanding (Basic)	4,913,676	4,930,835
Weighted Average Number of Common Shares Outstanding (Diluted)	4,934,176	4,951,335

v3.24.2

Statements of Comprehensive Income - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Income Statement [Abstract]
Net Income	$ 7,558,000	$ 4,757,000
Unrealized gain (loss) on debt securities:
Unrealized holding gains (losses) arising during period	34,000	(33,000)
Income tax benefit (expense) related to other comprehensive income	(10,000)	9,000
Other Comprehensive Income (Loss)	24,000	(24,000)
Comprehensive Income	$ 7,582,000	$ 4,733,000

v3.24.2

Statements of Stockholders' Equity - USD ($)	Preferred Stock [Member]	Common Stock Class A [Member]	Additional Paid-in Capital [Member]	Treasury Stock Common ClassA (Member)	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance at Apr. 30, 2022	$ 99,000	$ 850,000	$ 1,934,000	$ (4,547,000)	$ (137,000)	$ 50,843,000	$ 49,042,000
Balance, shares at Apr. 30, 2022	4,100	8,502,881		3,571,693
Prior period adjustment for provisions related to depreciation						(161,000)	(161,000)
Purchases of common stock				$ (7,000)			(7,000)
Purchases of common stock, shares				645
Dividend declared per common share outstanding						(2,958,000)	(2,958,000)
Unrealized gain (loss), net of tax effect					(24,000)		(24,000)
Net Income						4,757,000	4,757,000
Balance, shares at Apr. 30, 2023	4,100	8,502,881		3,572,338
Balance at Apr. 30, 2023	$ 99,000	$ 850,000	1,934,000	$ (4,554,000)	(161,000)	52,481,000	50,649,000
Purchases of common stock				$ (391,000)			(391,000)
Purchases of common stock, shares				33,813
Dividend declared per common share outstanding						(3,203,000)	(3,203,000)
Unrealized gain (loss), net of tax effect					24,000		24,000
Net Income						7,558,000	7,558,000
Balance, shares at Apr. 30, 2024	4,100	8,502,881		3,606,151
Balance at Apr. 30, 2024	$ 99,000	$ 850,000	$ 1,934,000	$ (4,945,000)	$ (137,000)	$ 56,836,000	$ 54,637,000

v3.24.2

Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividend declared for per common share outstanding	$ 0.65	$ 0.60

v3.24.2

Statements of Cash Flows - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Cash Flows From Operating Activities:
Net Income	$ 7,558,000	$ 4,757,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	487,000	445,000
Realized (gain) loss on sale of investments	(170,000)	224,000
Impairment on investments	22,000	67,000
Unrealized (gain) loss on equity securities	(2,771,000)	31,000
Impairment on investment in limited land partnership	38,000
Provision for credit losses on accounts receivable	16,000	(16,000)
Reserve for obsolete inventory	(21,000)	100,000
(Gain) on sale of assets		(3,000)
Deferred income taxes	650,000	(167,000)
(Increase) decrease in:
Accounts receivable	(417,000)	627,000
Inventories	(93,000)	(3,604,000)
Prepaid expenses	418,000	761,000
Other receivables	(7,000)	(43,000)
Income tax overpayment		(680,000)
Increase (decrease) in:
Accounts payable	(254,000)	226,000
Accrued expenses	41,000	111,000
Income tax payable	508,000
Net cash from operating activities	6,005,000	2,836,000
Cash Flows From Investing Activities:
Proceeds from sale of assets	8,000	12,000
(Purchase) of property and equipment	(378,000)	(548,000)
Proceeds from sale of marketable securities	527,000	25,000
(Purchase) of marketable securities	(699,000)	(764,000)
Distribution from investment in limited land partnership	12,000
Net cash from investing activities	(530,000)	(1,275,000)
Cash Flows From Financing Activities:
(Purchase) of treasury stock	(391,000)	(7,000)
Dividends paid	(2,915,000)	(2,689,000)
Net cash from financing activities	(3,306,000)	(2,696,000)
Net Change in Cash and Cash Equivalents	2,169,000	(1,135,000)
Cash and Cash Equivalents, beginning of year	4,943,000	6,078,000
Cash and Cash Equivalents, end of year	7,112,000	4,943,000
Supplemental Disclosure for Cash Flow Information:
Income taxes paid	1,485,000	2,070,000
Interest expense
Cash receipts for:
Income taxes	$ 57,000	$ 176,000

v3.24.2

Nature of Business and Summary of Significant Accounting Policies	12 Months Ended
	Apr. 30, 2024
Accounting Policies [Abstract]
Nature of Business and Summary of Significant Accounting Policies	1. Nature of Business and Summary of Significant Accounting Policies, continued   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 custom computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, high security switches, and wire and cable installation tools.   Nature of Business — The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors, security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire and cable installation tools and various other sensors and devices.   Cash and Cash Equivalents — The Company considers all investments with a maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.   Accounts Receivable and Allowance for Estimated Credit Losses — Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers. The Company extends credit to its customers based on their credit worthiness and performs continuing credit evaluations of its customers’ financial condition. If the Company believes the extension of credit is not advisable, other payment methods such as prepayments are required. Balances deemed uncollectible by the Company are written off against our allowance for credit loss accounts.   The Company maintains an allowance for estimated credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate our allowance for credit losses based on relevant information such as historical experience, current conditions, and future expectation of specifically identified customer balances. This allowance is adjusted as appropriate to reflect current conditions. The Company has recorded an allowance for estimated credit losses of $34,256 for the year ended April 30, 2024, and $17,922 for the year ended April 30, 2023. For the year ended April 30, 2024, the provision for credit losses on accounts receivable was an expense of $16,334 compared to a provision of $17,171 for the year ended April 30, 2023.   Concentrations of Credit Risk — 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.   Inventories — Inventories are stated at the lower of cost or net realized value. Cost is determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs.     1. Nature of Business and Summary of Significant Accounting Policies, continued    Property and Equipment — Property and equipment are recorded at cost. Depreciation is calculated based on the following estimated useful lives using the straight-line method:   Schedule of Property and Equipment   Classification   Useful Life in Years   2024 Cost     2023 Cost   Dies, jigs, and molds   3–7   $ 1,871,000     $ 1,871,000   Machinery and equipment   5–10     2,832,000       2,632,000   Furniture and fixtures   5–10     222,000       222,000   Improvements   5–32     638,000       605,000   Buildings   20–39     1,151,000       1,151,000   Automotive   3–5     131,000       126,000   Software   2–5     425,000       425,000   Land   N/A     80,000       80,000   Property and equipment, gross         7,350,000       7,112,000   Accumulated depreciation         (5,347,000 )     (5,115,000 ) Property and equipment, net       $ 2,003,000     $ 1,997,000     Depreciation expense of $366,000 and $323,000 was charged to operations for the years ended April 30, 2024 and 2023, 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 (LLP) — In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development in Winter Park-Grand County, CO for investment purposes for a total of $200,000. Over the years, there has been a total of $144,000 of additional contributions to aid in improvements and recurring expenses such as debt service, utilities, taxes, maintenance, insurance, and professional fees. The goal of the investment was to hold the property for resale(s) in 2-5 years, but many efforts to sell the property did not materialize for many years. Fortunately, the sale finally happened on June 30, 2023. Disbursement of the sale proceeds are contingent on finishing wetland restoration of the land, but the LLP made a distribution of the net proceeds in January 2024 in the amount of $12,000. Upon receiving information from the LLP management team, additional details about the contingent ongoing expenses were given to GRI and it has been determined that there is a $38,000 impairment on this investment, which has been accounted for during the year ended April 30, 2024.   Subsequently, an additional distribution of the net proceeds from the sale of the LLP in the amount of $255,000 was paid to GRI in July 2024.   Intangible Assets — Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined their lives to be indefinite. The intangible asset currently being amortized is intellectual property with a useful life of 15 years. As of April 30, 2024, the Company had $1,028,000 of net intangible assets, compared to net intangible assets of $1,149,000 as of April 30, 2023. Amortization expense was $121,000 and $122,000 for the years ended April 30, 2024 and 2023, respectively.     1. Nature of Business and Summary of Significant Accounting Policies, continued    As of April 30, 2024, future amortization of intangible assets is expected as follows:   Schedule of Future Amortization of Intangible Assets   Fiscal year end   Amortization amount   2025   $ 121,000   2026   $ 121,000   2027   $ 121,000   2028   $ 121,000   2029   $ 121,000   Thereafter   $ 423,000   Total   $ 1,028,000     Basic and Diluted Earnings per Share — The Company computes earnings per share in accordance with Accounting Standards Codification (“ASC”) 260-10-45 Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of income. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings per share exclude all potential common shares if their effect is anti-dilutive.   Advertising — Advertising costs are expensed as incurred and are included in selling expenses. Advertising expense amounted to $116,000 and $105,000 for the years ended April 30, 2024 and 2023, respectively.   Income Taxes — Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. Measurement of the deferred tax items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and tax bases of the Company’s assets or liabilities result in a deferred tax asset, we evaluate the probability of realizing the future benefits comprising that asset and record a valuation allowance if considered necessary.   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. The Internal Revenue Service (“IRS”) may generally access additional income tax records for the most recent three years. This would generally prevent the IRS from opening an examination for years ending on or before April 30, 2020. However, there are exceptions that can extend the statute of limitations to six years, and in some cases, prevent the statute of limitations from ever expiring. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense.     1. Nature of Business and Summary of Significant Accounting Policies, continued    It has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2023, 2022, and prior. Based on evaluation of the 2024 transactions and events, the Company does not have any material uncertain tax positions that require measurement.   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.   Fair Value of Financial Instruments — Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 11.   Investments — The accounting policies for the Company’s principal investments are as follows: Debt Securities and Equity Securities: Effective May 1, 2018, the Company adopted Accounting Standards Update 2016-01 “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) (“AOCI”). The Company’s debt securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented, net of related changes, in deferred income taxes. Purchases and sales of debt securities and equity securities are recorded on the trade date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out (“FIFO”) basis.   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.   Revenue Recognition —The Company accounts for revenue using the guidance provided by ASC 606, “Revenue from Contracts with Customers.” The Company recognizes product revenue using a five-step approach to determine the amount and timing of revenue to be recognized. The five-step approach requires (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when performance obligations are satisfied. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Payments received from customers in advance of product shipment or revenue recognition are treated as deferred revenues and recognized when the product is shipped.     1. Nature of Business and Summary of Significant Accounting Policies, continued   Variable Consideration — The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Certain customers may receive cash and/or non-cash incentives such as cash rebates, customer discounts (such as volume or trade discounts), which are accounted for as variable consideration. In some cases, the Company must apply judgment, including contractual rates and historical payment trends, when estimating variable consideration.   Product Returns — In the normal course of business, the Company may allow customers to return products per the provisions in a sale agreement. Estimated product returns are recorded as a reduction in reported revenues with offsetting entries recorded in the balance sheet quarterly based upon historical product return experience, adjusted for known trends, to arrive at the amount of consideration expected to receive.   Product Warranties — In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience.   Shipping and Handling Costs — The Company considers all shipping and handling to be fulfillment activities and not a separate performance obligation. Shipping and handling costs are recorded as cost of sales.   Research and Development Costs — Generally, costs related to the research, design, and development of products are charged to engineering expense as incurred. Certain research and development costs are recognized under assets in the balance sheet.   Comprehensive Income — US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures of the components of non-stockholder changes in equity on an annual basis. Total non-stockholder changes in equity include all changes in equity during a period except those resulting from fiscal investments by and distributions to stockholders.   Segment Reporting and Related Information — The Company designates the internal organization that is used by management for allocating resources and assessing performance as the source of the Company’s reportable segments. US GAAP also requires disclosures about products and services, geographic area and major customers. At April 30, 2024, the Company operated in three segments organized by security line products, cable and wiring tools (Labor Saving Devices - LSDI) products, and all other products. See Note 9 for further segment information disclosures.   Recently Issued Accounting Pronouncements — In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material.   In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.     1. Nature of Business and Summary of Significant Accounting Policies, continued   Subsequent Events – Other than those discussed at the Investment in Limited Land Partnership section of this note, Management has evaluated all events or transactions that occurred after April 30, 2024 through the date of the filing. During this period, the Company did not have any material recognizable subsequent events.

v3.24.2

Inventories	12 Months Ended
	Apr. 30, 2024
Inventory Disclosure [Abstract]
Inventories	2. Inventories   Inventories at April 30, 2024 and 2023, consisted of the following:   Schedule of Inventories       2024     2023   Raw materials   $ 10,130,000     $ 9,886,000   Work in process     753,000       678,000   Finished goods     1,042,000       1,267,000   Inventory, gross     11,925,000       11,831,000   Less: allowance for obsolete inventory     (367,000 )     (388,000 ) Inventories, net   $ 11,558,000     $ 11,443,000

v3.24.2

Investments	12 Months Ended
	Apr. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Investments	3. Investments   The Company has investments in publicly traded equity securities, state and municipal debt securities, REITs, and money markets and they are recorded at fair value. The investments in debt securities, which include municipal bonds and bond funds, mature between July 2024 and July 2041. The Company uses the average cost method to determine the cost of equity 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, 2024 and 2023, investments consisted of the following:   Schedule of Investments           Gross     Gross         Investments at   Cost     Unrealized     Unrealized     Reported   April 30, 2024   Basis     Gains     Losses     Value   Municipal bonds   $ 7,057,000     $ 28,000     $ (100,000 )   $ 6,985,000   REITs   $ 74,000     $ -     $ (8,000 )   $ 66,000   Equity securities   $ 17,408,000     $ 9,303,000     $ (209,000 )   $ 26,502,000   Money Markets and CDs   $ 935,000     $ -     $ -     $ 935,000   Total   $ 25,474,000     $ 9,331,000     $ (317,000 )   $ 34,488,000             Gross     Gross         Investments at   Cost     Unrealized     Unrealized     Reported   April 30, 2023   Basis     Gains     Losses     Value   Municipal bonds   $ 5,396,000     $ 46,000     $ (230,000 )   $ 5,212,000   REITs   $ 93,000     $ -     $ (22,000 )   $ 71,000   Equity securities   $ 18,605,000     $ 6,915,000     $ (501,000 )   $ 25,019,000   Money Markets and CDs   $ 1,060,000     $ 1,000     $ -     $ 1,061,000   Total   $ 25,154,000     $ 6,962,000     $ (753,000 )   $ 31,363,000     Marketable securities that are classified as 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 income 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 income.   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 $22,000 and $67,000 for the years ended April 30, 2024 and 2023, respectively.   The Company’s investments are actively traded in the stock and bond markets. Therefore, there is either a realized gain or loss that is recorded when a sale happens. For the fiscal year ended April 30, 2024, the Company had sales of equity securities which yielded gross realized gains of $789,000 and gross realized losses of $613,000. For the same period, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $28,000. Comparatively, the Company recorded gross realized gains on equity securities of $512,000 and gross realized losses of $740,000 for the fiscal year ending April 30, 2023. As for debt securities, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $63,000 for the fiscal year ending April 30, 2023. The gross realized loss numbers include the impaired figures listed in the previous paragraph. Additionally, proceeds from sales of securities available for sale were $527,000 and $25,000 for the years ended April 30, 2024 and 2023 respectively.     3. Investments, continued   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, as of April 30, 2024 and 2023.   Schedule of Unrealized Loss Breakdown by Investment Type   Unrealized Loss Breakdown by Investment Type as of April 30, 2024  Schedule of Unrealized Loss Breakdown by Investment Type Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss       Less than 12 months     12 months or greater     Total   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss   Municipal bonds   $ 5,897,000     $ (20,000 )   $ 773,000     $ (80,000 )   $ 6,670,000     $ (100,000 ) REITs   $ —     $ —     $ 66,000     $ (8,000 )   $ 66,000     $ (8,000 ) Equity securities   $ 2,255,000     $ (72,000 )   $ 766,000     $ (137,000 )   $ 3,021,000     $ (209,000 ) Total   $ 8,152,000     $ (92,000 )   $ 1,605,000     $ (225,000 )   $ 9,757,000     $ (317,000 )   Unrealized Loss Breakdown by Investment Type as of April 30, 2023   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss       Less than 12 months     12 months or greater     Total   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss   Municipal bonds   $ 868,000     $ (6,000 )   $ 3,769,000     $ (224,000 )   $ 4,637,000     $ (230,000 ) REITs   $ 36,000     $ (9,000 )   $ 35,000     $ (13,000 )   $ 71,000     $ (22,000 ) Equity securities   $ 3,048,000     $ (140,000 )   $ 2,209,000     $ (361,000 )   $ 5,257,000     $ (501,000 ) Total   $ 3,952,000     $ (155,000 )   $ 6,013,000     $ (598,000 )   $ 9,965,000     $ (753,000 )   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 as of April 30, 2024 and 2023.   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 as of April 30, 2024 and 2023.

v3.24.2

Retirement Benefit Plan	12 Months Ended
	Apr. 30, 2024
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. 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 and Roth (taxable) 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 $60,000 and $58,000 were paid during the years ending April 30, 2024 and 2023, respectively.

v3.24.2

Stockholders’ Equity	12 Months Ended
	Apr. 30, 2024
Equity [Abstract]
Stockholders’ Equity	5. Stockholders’ Equity   Preferred Stock—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. The holders of the convertible preferred stock shall be entitled to a dividend at a rate up to $1 per share annually, payable quarterly as declared by the board of directors. No dividends were declared or paid during the two years ended April 30, 2024 and 2023.   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—The holders of the Class A common stock are entitled to receive dividends as declared by the board of directors. A dividend for the four prior quarters and provision has been made for the full dividend in the current fiscal year.   During the fiscal year ended April 30, 2024, the Company purchased 33,813 shares of Class A common stock. This was initiated by stockholders contacting the Company.   Stock Transfer Agent—The Company does not have an independent stock transfer agent. The Company maintains all stock records.

v3.24.2

Earnings Per Share	12 Months Ended
	Apr. 30, 2024
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:   Schedule of Basic and Diluted Earnings Per Share       April 30, 2024       Income     Shares     Per-Share       (Numerator)     (Denominator)     Amount   Net income   $ 7,558,000                   Basic EPS   $ 7,558,000       4,913,676     $ 1.54   Effect of dilutive Convertible Preferred Stock     –       20,500       (0.01 ) Diluted EPS   $ 7,558,000       4,934,176     $ 1.53         April 30, 2023       Income     Shares     Per-Share       (Numerator)     (Denominator)     Amount   Net income   $ 4,757,000                   Basic EPS   $ 4,757,000       4,930,835     $ 0.96   Effect of dilutive Convertible Preferred Stock     –       20,500       —   Diluted EPS   $ 4,757,000       4,951,335     $ 0.96

v3.24.2

Commitments, Contingencies, and Related Party Transactions	12 Months Ended
	Apr. 30, 2024
Commitments Contingencies And Related Party Transactions
Commitments, Contingencies, and Related Party Transactions	7. Commitments, Contingencies, and Related Party Transactions   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 $6,712,000 and $4,637,000 for the years ended April 30, 2024 and 2023, respectively. The Company also received interest income from FirsTier Bank in the amount of approximately $170,000 for the year ended April 30, 2024 and $103,000 for the year ended April 30, 2023.   From time to time, the Company may be involved in litigation in the ordinary course of business. The Company is not currently involved in any litigation that we believe could have a material adverse effect on its financial condition or results of operations.

v3.24.2

Income Taxes	12 Months Ended
	Apr. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes   The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future income and deductions implicit in the Balance Sheets. The income tax provision for the fiscal year ended April 30, 2024 and 2023 consisted of the following:   Schedule of Income Tax Provision   Year Ended April 30,   2024     2023   Current:             Federal   $ 1,604,000       1,051,000   State     511,000       175,000   Deferred:                 Federal     495,000       (108,000 ) State     155,000       (60,000 ) Total income tax provision   $ 2,765,000     $ 1,058,000     Reconciliation of income taxes with Federal and State taxable income:   Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income       2024     2023   Income before income taxes   $ 10,323,000     $ 5,815,000   State income tax deduction     (478,000 )     (351,000 ) Interest and dividend income     (489,000 )     (511,000 ) Nondeductible expenses and timing differences     (2,379,000 )     (11,000 ) Taxable income   $ 6,977,000     $ 4,942,000     The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:   Schedule of Statutory Rate to Income Before Taxes       2024     2023   Income tax provision at statutory rate   $ 2,916,000     $ 1,657,000   Increase (decrease) income taxes resulting from:                 State income taxes     (135,000 )     (100,000 ) Interest and dividend income     (138,000 )     (146,000 ) Deferred taxes     650,000       (168,000 ) Other temporary and permanent differences     (528,000 )     (185,000 ) Income tax expense   $ 2,765,000     $ 1,058,000                     Federal tax rate     21.00 %     21.00 % State tax rate     7.25 %     7.50 % Blended statutory rate     28.25 %     28.50 %   Deferred tax assets (liabilities) consist of the following components as of April 30, 2024 and 2023:   Summary of Deferred Tax Assets (Liabilities)       2024     2023   Deferred tax assets (liabilities):                 Depreciation   $ (312,000 )   $ (276,000 ) Capitalized R&D expense     320,000     $ 165,000   Inventory valuation     104,000       111,000   Allowance for doubtful accounts     10,000       5,000   Accrued vacation     37,000       37,000   Accumulated unrealized (gain)/loss on investments     (2,547,000 )     (1,769,000 ) Net deferred tax assets (liabilities)   $ (2,388,000 )   $ (1,727,000 )

v3.24.2

Business Segments	12 Months Ended
	Apr. 30, 2024
Segment Reporting [Abstract]
Business Segments	9. Business Segments   The following is financial information relating to industry segments:   Schedule of Financial Information Relating to Industry Segments       Quarter ended     Year ended     Year ended       April 30,     April 30,     April 30,       2024     2024     2023       (Unaudited)               Net revenue:                         Security alarm products   $ 5,002,000     $ 19,630,000     $ 17,428,000   Cable & wiring tools     368,000       1,484,000       1,870,000   Other products     222,000       653,000       681,000   Total net revenue   $ 5,592,000     $ 21,767,000     $ 19,979,000                             Income from operations:                         Security alarm products     1,457,000       5,672,000       4,414,000   Cable & wiring tools     110,000       429,000       474,000   Other products     48,000       188,000       172,000   Total income from operations   $ 1,615,000     $ 6,289,000     $ 5,060,000                             Depreciation and amortization:                         Security alarm products     56,000       202,000       194,000   Cable & wiring tools     30,000       121,000       122,000   Other products     24,000       92,000       81,000   Corporate general     13,000       72,000       48,000   Total depreciation and amortization   $ 123,000     $ 487,000     $ 445,000                             Capital expenditures:                         Security alarm products     97,000       321,000       237,000   Cable & wiring tools     —       —       —   Other products     —       20,000       268,000   Corporate general     18,000       37,000       43,000   Total capital expenditures   $ 115,000     $ 378,000     $ 548,000       April 30, 2024   April 30, 2023 Identifiable assets:             Security alarm products   15,263,000     14,251,000   Cable & wiring tools   2,082,000     2,548,000   Other products   859,000     981,000   Corporate general   42,576,000     38,171,000   Total assets $ 60,780,000   $ 55,951,000

v3.24.2

Concentrations	12 Months Ended
	Apr. 30, 2024
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, 2024 and 2023, the Company had uninsured balances of $6,494,000, and $4,530,000, 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 $151,000 and $56,000 for the years ending April 30, 2024 and 2023, 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 37% of total sales for the year ended April 30, 2024 and 36% of total sales for the year ended April 30, 2023. This distributor accounted for 56% and 44% of accounts receivable at April 30, 2024 and 2023, respectively.   Security switch sales made up 90% of total sales for the fiscal year ending April 30, 2024 and 87% of total sales for the fiscal year ending April 30, 2023.

v3.24.2

Fair Value Measurements	12 Months Ended
	Apr. 30, 2024
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 the use of option pricing models, discounted cash flow models and similar techniques.   Investments and Marketable Securities   As of April 30, 2024 and 2023, The Company’s investments consisted of money markets, publicly traded equity securities, REITs as well as certain state and municipal bonds. 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.   Schedule of Assets Measured at Fair Value on Recurring Basis       Level 1     Level 2     Level 3     Total       Assets Measured at Fair Value on a Recurring Basis as of April 30, 2024       Level 1     Level 2     Level 3     Total   Assets:                         Municipal Bonds     —     $ 6,985,000       —     $ 6,985,000   REITs     —     $ 66,000       —     $ 66,000   Equity Securities   $ 26,502,000       —       —     $ 26,502,000   Money Markets and CDs   $ 935,000       —       —     $ 935,000   Total fair value of assets measured on a recurring basis   $ 27,437,000     $ 7,051,000       —     $ 34,488,000           Level 1     Level 2     Level 3     Total       Assets Measured at Fair Value on a Recurring Basis as of April 30, 2023       Level 1     Level 2     Level 3     Total   Assets:                         Municipal Bonds     —     $ 5,212,000       —     $ 5,212,000   REITs     —     $ 71,000       —     $ 71,000   Equity Securities   $ 25,019,000       —       —     $ 25,019,000   Money Markets and CDs   $ 1,061,000       —       —     $ 1,061,000   Total fair value of assets measured on a recurring basis   $ 26,080,000     $ 5,283,000       —     $ 31,363,000

v3.24.2

Nature of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Apr. 30, 2024
Accounting Policies [Abstract]
Nature of Business	Nature of Business — The Company is engaged in the design, manufacture, and marketing of custom computer keyboards, proximity sensors, security alarm components, pool access alarms, liquid detection sensors, raceway wire covers, wire and cable installation tools and various other sensors and devices.
Cash and Cash Equivalents	Cash and Cash Equivalents — The Company considers all investments with a maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. The Company continually monitors its banking relationships and consequently has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
Accounts Receivable and Allowance for Estimated Credit Losses	Accounts Receivable and Allowance for Estimated Credit Losses — Accounts receivable are customer obligations due under normal trade terms. The Company sells its products to security alarm distributors, alarm installers, and original equipment manufacturers. The Company extends credit to its customers based on their credit worthiness and performs continuing credit evaluations of its customers’ financial condition. If the Company believes the extension of credit is not advisable, other payment methods such as prepayments are required. Balances deemed uncollectible by the Company are written off against our allowance for credit loss accounts.   The Company maintains an allowance for estimated credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate our allowance for credit losses based on relevant information such as historical experience, current conditions, and future expectation of specifically identified customer balances. This allowance is adjusted as appropriate to reflect current conditions. The Company has recorded an allowance for estimated credit losses of $34,256 for the year ended April 30, 2024, and $17,922 for the year ended April 30, 2023. For the year ended April 30, 2024, the provision for credit losses on accounts receivable was an expense of $16,334 compared to a provision of $17,171 for the year ended April 30, 2023.
Concentrations of Credit Risk	Concentrations of Credit Risk — 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.
Inventories	Inventories — Inventories are stated at the lower of cost or net realized value. Cost is determined using the average cost-pricing method. The Company uses actual costs to price its manufactured inventories, approximating average costs.     1. Nature of Business and Summary of Significant Accounting Policies, continued
Property and Equipment	Property and Equipment — Property and equipment are recorded at cost. Depreciation is calculated based on the following estimated useful lives using the straight-line method:   Schedule of Property and Equipment   Classification   Useful Life in Years   2024 Cost     2023 Cost   Dies, jigs, and molds   3–7   $ 1,871,000     $ 1,871,000   Machinery and equipment   5–10     2,832,000       2,632,000   Furniture and fixtures   5–10     222,000       222,000   Improvements   5–32     638,000       605,000   Buildings   20–39     1,151,000       1,151,000   Automotive   3–5     131,000       126,000   Software   2–5     425,000       425,000   Land   N/A     80,000       80,000   Property and equipment, gross         7,350,000       7,112,000   Accumulated depreciation         (5,347,000 )     (5,115,000 ) Property and equipment, net       $ 2,003,000     $ 1,997,000     Depreciation expense of $366,000 and $323,000 was charged to operations for the years ended April 30, 2024 and 2023, 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 (LLP)	Investment in Limited Land Partnership (LLP) — In November 2002, the Company purchased 6.67% of a prime 22-acre land parcel for development in Winter Park-Grand County, CO for investment purposes for a total of $200,000. Over the years, there has been a total of $144,000 of additional contributions to aid in improvements and recurring expenses such as debt service, utilities, taxes, maintenance, insurance, and professional fees. The goal of the investment was to hold the property for resale(s) in 2-5 years, but many efforts to sell the property did not materialize for many years. Fortunately, the sale finally happened on June 30, 2023. Disbursement of the sale proceeds are contingent on finishing wetland restoration of the land, but the LLP made a distribution of the net proceeds in January 2024 in the amount of $12,000. Upon receiving information from the LLP management team, additional details about the contingent ongoing expenses were given to GRI and it has been determined that there is a $38,000 impairment on this investment, which has been accounted for during the year ended April 30, 2024.   Subsequently, an additional distribution of the net proceeds from the sale of the LLP in the amount of $255,000 was paid to GRI in July 2024.
Intangible Assets	Intangible Assets — Intangible assets are amortized on a straight-line basis over their estimated useful lives, unless it is determined their lives to be indefinite. The intangible asset currently being amortized is intellectual property with a useful life of 15 years. As of April 30, 2024, the Company had $1,028,000 of net intangible assets, compared to net intangible assets of $1,149,000 as of April 30, 2023. Amortization expense was $121,000 and $122,000 for the years ended April 30, 2024 and 2023, respectively.     1. Nature of Business and Summary of Significant Accounting Policies, continued    As of April 30, 2024, future amortization of intangible assets is expected as follows:   Schedule of Future Amortization of Intangible Assets   Fiscal year end   Amortization amount   2025   $ 121,000   2026   $ 121,000   2027   $ 121,000   2028   $ 121,000   2029   $ 121,000   Thereafter   $ 423,000   Total   $ 1,028,000
Basic and Diluted Earnings per Share	Basic and Diluted Earnings per Share — The Company computes earnings per share in accordance with Accounting Standards Codification (“ASC”) 260-10-45 Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of income. Basic earnings per share is computed by dividing net earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive earnings per share exclude all potential common shares if their effect is anti-dilutive.
Advertising	Advertising — Advertising costs are expensed as incurred and are included in selling expenses. Advertising expense amounted to $116,000 and $105,000 for the years ended April 30, 2024 and 2023, respectively.
Income Taxes	Income Taxes — Deferred tax assets and liabilities are recorded for the future consequences of events that have been recognized in the Company’s financial statements or tax returns. Measurement of the deferred tax items is based on enacted tax laws. In the event the future consequences of differences between financial reporting bases and tax bases of the Company’s assets or liabilities result in a deferred tax asset, we evaluate the probability of realizing the future benefits comprising that asset and record a valuation allowance if considered necessary.   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. The Internal Revenue Service (“IRS”) may generally access additional income tax records for the most recent three years. This would generally prevent the IRS from opening an examination for years ending on or before April 30, 2020. However, there are exceptions that can extend the statute of limitations to six years, and in some cases, prevent the statute of limitations from ever expiring. Interest and penalties accrued on uncertain tax positions are recorded as income tax expense.     1. Nature of Business and Summary of Significant Accounting Policies, continued    It has been determined that the Company does not have uncertain tax positions on its tax returns for the years 2023, 2022, and prior. Based on evaluation of the 2024 transactions and events, the Company does not have any material uncertain tax positions that require measurement.
Accounting Estimates	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.
Fair Value of Financial Instruments	Fair Value of Financial Instruments — Certain financial instruments are required to be recorded at fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments, including cash equivalents, certain investments and short-term debt, are recorded at cost, which approximates fair value. The fair values of long-term debt and financial instruments are disclosed in Note 11.
Investments	Investments — The accounting policies for the Company’s principal investments are as follows: Debt Securities and Equity Securities: Effective May 1, 2018, the Company adopted Accounting Standards Update 2016-01 “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) (“AOCI”). The Company’s debt securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented, net of related changes, in deferred income taxes. Purchases and sales of debt securities and equity securities are recorded on the trade date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out (“FIFO”) basis.   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.
Revenue Recognition	Revenue Recognition —The Company accounts for revenue using the guidance provided by ASC 606, “Revenue from Contracts with Customers.” The Company recognizes product revenue using a five-step approach to determine the amount and timing of revenue to be recognized. The five-step approach requires (1) identifying the contract with the customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when performance obligations are satisfied. The Company recognizes revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Payments received from customers in advance of product shipment or revenue recognition are treated as deferred revenues and recognized when the product is shipped.     1. Nature of Business and Summary of Significant Accounting Policies, continued
Variable Consideration	Variable Consideration — The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Certain customers may receive cash and/or non-cash incentives such as cash rebates, customer discounts (such as volume or trade discounts), which are accounted for as variable consideration. In some cases, the Company must apply judgment, including contractual rates and historical payment trends, when estimating variable consideration.
Product Returns	Product Returns — In the normal course of business, the Company may allow customers to return products per the provisions in a sale agreement. Estimated product returns are recorded as a reduction in reported revenues with offsetting entries recorded in the balance sheet quarterly based upon historical product return experience, adjusted for known trends, to arrive at the amount of consideration expected to receive.
Product Warranties	Product Warranties — In the normal course of business, the Company offers warranties for a variety of its products. The specific terms and conditions of the warranties vary depending upon the specific product and markets in which the products were sold. The Company accrues for the estimated cost of product warranty at the time of sale based on historical experience.
Shipping and Handling Costs	Shipping and Handling Costs — The Company considers all shipping and handling to be fulfillment activities and not a separate performance obligation. Shipping and handling costs are recorded as cost of sales.
Research and Development Costs	Research and Development Costs — Generally, costs related to the research, design, and development of products are charged to engineering expense as incurred. Certain research and development costs are recognized under assets in the balance sheet.
Comprehensive Income	Comprehensive Income — US GAAP requires disclosure of total non-stockholder changes in equity in interim periods and additional disclosures of the components of non-stockholder changes in equity on an annual basis. Total non-stockholder changes in equity include all changes in equity during a period except those resulting from fiscal investments by and distributions to stockholders.
Segment Reporting and Related Information	Segment Reporting and Related Information — The Company designates the internal organization that is used by management for allocating resources and assessing performance as the source of the Company’s reportable segments. US GAAP also requires disclosures about products and services, geographic area and major customers. At April 30, 2024, the Company operated in three segments organized by security line products, cable and wiring tools (Labor Saving Devices - LSDI) products, and all other products. See Note 9 for further segment information disclosures.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements — In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the financial statements and related disclosures, which is not expected to be material.   In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.     1. Nature of Business and Summary of Significant Accounting Policies, continued
Subsequent Events	Subsequent Events – Other than those discussed at the Investment in Limited Land Partnership section of this note, Management has evaluated all events or transactions that occurred after April 30, 2024 through the date of the filing. During this period, the Company did not have any material recognizable subsequent events.

v3.24.2

Nature of Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Apr. 30, 2024
Accounting Policies [Abstract]
Schedule of Property and Equipment	Schedule of Property and Equipment   Classification   Useful Life in Years   2024 Cost     2023 Cost   Dies, jigs, and molds   3–7   $ 1,871,000     $ 1,871,000   Machinery and equipment   5–10     2,832,000       2,632,000   Furniture and fixtures   5–10     222,000       222,000   Improvements   5–32     638,000       605,000   Buildings   20–39     1,151,000       1,151,000   Automotive   3–5     131,000       126,000   Software   2–5     425,000       425,000   Land   N/A     80,000       80,000   Property and equipment, gross         7,350,000       7,112,000   Accumulated depreciation         (5,347,000 )     (5,115,000 ) Property and equipment, net       $ 2,003,000     $ 1,997,000
Schedule of Future Amortization of Intangible Assets	As of April 30, 2024, future amortization of intangible assets is expected as follows:   Schedule of Future Amortization of Intangible Assets   Fiscal year end   Amortization amount   2025   $ 121,000   2026   $ 121,000   2027   $ 121,000   2028   $ 121,000   2029   $ 121,000   Thereafter   $ 423,000   Total   $ 1,028,000

v3.24.2

Inventories (Tables)	12 Months Ended
	Apr. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories at April 30, 2024 and 2023, consisted of the following:   Schedule of Inventories       2024     2023   Raw materials   $ 10,130,000     $ 9,886,000   Work in process     753,000       678,000   Finished goods     1,042,000       1,267,000   Inventory, gross     11,925,000       11,831,000   Less: allowance for obsolete inventory     (367,000 )     (388,000 ) Inventories, net   $ 11,558,000     $ 11,443,000

v3.24.2

Investments (Tables)	12 Months Ended
	Apr. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Investments	As of April 30, 2024 and 2023, investments consisted of the following:   Schedule of Investments           Gross     Gross         Investments at   Cost     Unrealized     Unrealized     Reported   April 30, 2024   Basis     Gains     Losses     Value   Municipal bonds   $ 7,057,000     $ 28,000     $ (100,000 )   $ 6,985,000   REITs   $ 74,000     $ -     $ (8,000 )   $ 66,000   Equity securities   $ 17,408,000     $ 9,303,000     $ (209,000 )   $ 26,502,000   Money Markets and CDs   $ 935,000     $ -     $ -     $ 935,000   Total   $ 25,474,000     $ 9,331,000     $ (317,000 )   $ 34,488,000             Gross     Gross         Investments at   Cost     Unrealized     Unrealized     Reported   April 30, 2023   Basis     Gains     Losses     Value   Municipal bonds   $ 5,396,000     $ 46,000     $ (230,000 )   $ 5,212,000   REITs   $ 93,000     $ -     $ (22,000 )   $ 71,000   Equity securities   $ 18,605,000     $ 6,915,000     $ (501,000 )   $ 25,019,000   Money Markets and CDs   $ 1,060,000     $ 1,000     $ -     $ 1,061,000   Total   $ 25,154,000     $ 6,962,000     $ (753,000 )   $ 31,363,000
Schedule of Unrealized Loss Breakdown by Investment Type	Unrealized Loss Breakdown by Investment Type as of April 30, 2024  Schedule of Unrealized Loss Breakdown by Investment Type Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss       Less than 12 months     12 months or greater     Total   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss   Municipal bonds   $ 5,897,000     $ (20,000 )   $ 773,000     $ (80,000 )   $ 6,670,000     $ (100,000 ) REITs   $ —     $ —     $ 66,000     $ (8,000 )   $ 66,000     $ (8,000 ) Equity securities   $ 2,255,000     $ (72,000 )   $ 766,000     $ (137,000 )   $ 3,021,000     $ (209,000 ) Total   $ 8,152,000     $ (92,000 )   $ 1,605,000     $ (225,000 )   $ 9,757,000     $ (317,000 )   Unrealized Loss Breakdown by Investment Type as of April 30, 2023   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss       Less than 12 months     12 months or greater     Total   Description   Fair Value     Unrealized Loss     Fair Value     Unrealized Loss     Fair Value     Unrealized Loss   Municipal bonds   $ 868,000     $ (6,000 )   $ 3,769,000     $ (224,000 )   $ 4,637,000     $ (230,000 ) REITs   $ 36,000     $ (9,000 )   $ 35,000     $ (13,000 )   $ 71,000     $ (22,000 ) Equity securities   $ 3,048,000     $ (140,000 )   $ 2,209,000     $ (361,000 )   $ 5,257,000     $ (501,000 ) Total   $ 3,952,000     $ (155,000 )   $ 6,013,000     $ (598,000 )   $ 9,965,000     $ (753,000 )

v3.24.2

Earnings Per Share (Tables)	12 Months Ended
	Apr. 30, 2024
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:   Schedule of Basic and Diluted Earnings Per Share       April 30, 2024       Income     Shares     Per-Share       (Numerator)     (Denominator)     Amount   Net income   $ 7,558,000                   Basic EPS   $ 7,558,000       4,913,676     $ 1.54   Effect of dilutive Convertible Preferred Stock     –       20,500       (0.01 ) Diluted EPS   $ 7,558,000       4,934,176     $ 1.53         April 30, 2023       Income     Shares     Per-Share       (Numerator)     (Denominator)     Amount   Net income   $ 4,757,000                   Basic EPS   $ 4,757,000       4,930,835     $ 0.96   Effect of dilutive Convertible Preferred Stock     –       20,500       —   Diluted EPS   $ 4,757,000       4,951,335     $ 0.96

v3.24.2

Income Taxes (Tables)	12 Months Ended
	Apr. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Income Tax Provision	Schedule of Income Tax Provision   Year Ended April 30,   2024     2023   Current:             Federal   $ 1,604,000       1,051,000   State     511,000       175,000   Deferred:                 Federal     495,000       (108,000 ) State     155,000       (60,000 ) Total income tax provision   $ 2,765,000     $ 1,058,000
Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income	Reconciliation of income taxes with Federal and State taxable income:   Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income       2024     2023   Income before income taxes   $ 10,323,000     $ 5,815,000   State income tax deduction     (478,000 )     (351,000 ) Interest and dividend income     (489,000 )     (511,000 ) Nondeductible expenses and timing differences     (2,379,000 )     (11,000 ) Taxable income   $ 6,977,000     $ 4,942,000
Schedule of Statutory Rate to Income Before Taxes	The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:   Schedule of Statutory Rate to Income Before Taxes       2024     2023   Income tax provision at statutory rate   $ 2,916,000     $ 1,657,000   Increase (decrease) income taxes resulting from:                 State income taxes     (135,000 )     (100,000 ) Interest and dividend income     (138,000 )     (146,000 ) Deferred taxes     650,000       (168,000 ) Other temporary and permanent differences     (528,000 )     (185,000 ) Income tax expense   $ 2,765,000     $ 1,058,000                     Federal tax rate     21.00 %     21.00 % State tax rate     7.25 %     7.50 % Blended statutory rate     28.25 %     28.50 %
Summary of Deferred Tax Assets (Liabilities)	Deferred tax assets (liabilities) consist of the following components as of April 30, 2024 and 2023:   Summary of Deferred Tax Assets (Liabilities)       2024     2023   Deferred tax assets (liabilities):                 Depreciation   $ (312,000 )   $ (276,000 ) Capitalized R&D expense     320,000     $ 165,000   Inventory valuation     104,000       111,000   Allowance for doubtful accounts     10,000       5,000   Accrued vacation     37,000       37,000   Accumulated unrealized (gain)/loss on investments     (2,547,000 )     (1,769,000 ) Net deferred tax assets (liabilities)   $ (2,388,000 )   $ (1,727,000 )

v3.24.2

Business Segments (Tables)	12 Months Ended
	Apr. 30, 2024
Segment Reporting [Abstract]
Schedule of Financial Information Relating to Industry Segments	The following is financial information relating to industry segments:   Schedule of Financial Information Relating to Industry Segments       Quarter ended     Year ended     Year ended       April 30,     April 30,     April 30,       2024     2024     2023       (Unaudited)               Net revenue:                         Security alarm products   $ 5,002,000     $ 19,630,000     $ 17,428,000   Cable & wiring tools     368,000       1,484,000       1,870,000   Other products     222,000       653,000       681,000   Total net revenue   $ 5,592,000     $ 21,767,000     $ 19,979,000                             Income from operations:                         Security alarm products     1,457,000       5,672,000       4,414,000   Cable & wiring tools     110,000       429,000       474,000   Other products     48,000       188,000       172,000   Total income from operations   $ 1,615,000     $ 6,289,000     $ 5,060,000                             Depreciation and amortization:                         Security alarm products     56,000       202,000       194,000   Cable & wiring tools     30,000       121,000       122,000   Other products     24,000       92,000       81,000   Corporate general     13,000       72,000       48,000   Total depreciation and amortization   $ 123,000     $ 487,000     $ 445,000                             Capital expenditures:                         Security alarm products     97,000       321,000       237,000   Cable & wiring tools     —       —       —   Other products     —       20,000       268,000   Corporate general     18,000       37,000       43,000   Total capital expenditures   $ 115,000     $ 378,000     $ 548,000       April 30, 2024   April 30, 2023 Identifiable assets:             Security alarm products   15,263,000     14,251,000   Cable & wiring tools   2,082,000     2,548,000   Other products   859,000     981,000   Corporate general   42,576,000     38,171,000   Total assets $ 60,780,000   $ 55,951,000

v3.24.2

Fair Value Measurements (Tables)	12 Months Ended
	Apr. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on Recurring Basis	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.   Schedule of Assets Measured at Fair Value on Recurring Basis       Level 1     Level 2     Level 3     Total       Assets Measured at Fair Value on a Recurring Basis as of April 30, 2024       Level 1     Level 2     Level 3     Total   Assets:                         Municipal Bonds     —     $ 6,985,000       —     $ 6,985,000   REITs     —     $ 66,000       —     $ 66,000   Equity Securities   $ 26,502,000       —       —     $ 26,502,000   Money Markets and CDs   $ 935,000       —       —     $ 935,000   Total fair value of assets measured on a recurring basis   $ 27,437,000     $ 7,051,000       —     $ 34,488,000           Level 1     Level 2     Level 3     Total       Assets Measured at Fair Value on a Recurring Basis as of April 30, 2023       Level 1     Level 2     Level 3     Total   Assets:                         Municipal Bonds     —     $ 5,212,000       —     $ 5,212,000   REITs     —     $ 71,000       —     $ 71,000   Equity Securities   $ 25,019,000       —       —     $ 25,019,000   Money Markets and CDs   $ 1,061,000       —       —     $ 1,061,000   Total fair value of assets measured on a recurring basis   $ 26,080,000     $ 5,283,000       —     $ 31,363,000

v3.24.2

Schedule of Property and Equipment (Details) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,350,000	$ 7,112,000
Accumulated depreciation	(5,347,000)	(5,115,000)
Property and equipment, net	2,003,000	1,997,000
Dies, Jigs, and Molds [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,871,000	1,871,000
Dies, Jigs, and Molds [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	3 years
Dies, Jigs, and Molds [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	7 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,832,000	2,632,000
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	10 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 222,000	222,000
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 638,000	605,000
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	5 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	32 years
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,151,000	1,151,000
Buildings [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	20 years
Buildings [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	39 years
Automotive [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 131,000	126,000
Automotive [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	3 years
Automotive [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	5 years
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 425,000	425,000
Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	2 years
Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life years	5 years
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 80,000	$ 80,000

v3.24.2

Schedule of Future Amortization of Intangible Assets (Details) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Accounting Policies [Abstract]
2025	$ 121,000
2026	121,000
2027	121,000
2028	121,000
2029	121,000
Thereafter	423,000
Total	$ 1,028,000	$ 1,149,000

v3.24.2

Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	1 Months Ended			12 Months Ended
	Jul. 30, 2024	Jan. 31, 2024	Nov. 30, 2002	Apr. 30, 2024	Apr. 30, 2023
Property, Plant and Equipment [Line Items]
Accounts receivable, allowance for credit loss, current				$ 34,256	$ 17,922
Accounts receivable				16,334	17,171
Depreciation expenses				366,000	323,000
Investment in limited land partnership held for sale, description			the Company purchased 6.67% of a prime 22-acre land parcel for development in Winter Park-Grand County, CO for investment purposes for a total of $200,000
Impairment on investment				38,000
Intangible assets				1,028,000	1,149,000
Amortization expenses				121,000	122,000
Advertising expenses				$ 116,000	$ 105,000
Non-compete Agreement [Member]
Property, Plant and Equipment [Line Items]
Intellectual property with a useful live				15 years
Subsequent Event [Member]
Property, Plant and Equipment [Line Items]
Net proceeds	$ 255,000
Winter Park-Grand County, CO [Member]
Property, Plant and Equipment [Line Items]
Investments			$ 200,000
Additional contributions expenses			$ 144,000
Net proceeds		$ 12,000
Winter Park-Grand County, CO [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property for resale term			2 years
Winter Park-Grand County, CO [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property for resale term			5 years

v3.24.2

Schedule of Inventories (Details) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 10,130,000	$ 9,886,000
Work in process	753,000	678,000
Finished goods	1,042,000	1,267,000
Inventory, gross	11,925,000	11,831,000
Less: allowance for obsolete inventory	(367,000)	(388,000)
Inventories, net	$ 11,558,000	$ 11,443,000

v3.24.2

Schedule of Investments (Details) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Marketable Securities [Line Items]
Cost Basis	$ 25,474,000	$ 25,154,000
Gross Unrealized Gains	9,331,000	6,962,000
Gross Unrealized Losses	(317,000)	(753,000)
Fair Value	34,488,000	31,363,000
Municipal Bonds [Member]
Marketable Securities [Line Items]
Cost Basis	7,057,000	5,396,000
Gross Unrealized Gains	28,000	46,000
Gross Unrealized Losses	(100,000)	(230,000)
Fair Value	6,985,000	5,212,000
Real Estate Investment [Member]
Marketable Securities [Line Items]
Cost Basis	74,000	93,000
Gross Unrealized Gains
Gross Unrealized Losses	(8,000)	(22,000)
Fair Value	66,000	71,000
Equity Securities [Member]
Marketable Securities [Line Items]
Cost Basis	17,408,000	18,605,000
Gross Unrealized Gains	9,303,000	6,915,000
Gross Unrealized Losses	(209,000)	(501,000)
Fair Value	26,502,000	25,019,000
Money Markets and CDs [Member]
Marketable Securities [Line Items]
Cost Basis	935,000	1,060,000
Gross Unrealized Gains		1,000
Gross Unrealized Losses
Fair Value	$ 935,000	$ 1,061,000

v3.24.2

Schedule of Unrealized Loss Breakdown by Investment Type (Details) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Marketable Securities [Line Items]
Debt securities, unrealized loss, less than 12 months	$ 8,152,000	$ 3,952,000
Debt securities, unrealized loss, less than 12 months, accumulated loss	(92,000)	(155,000)
Debt securities, unrealized loss, 12 months or greater	1,605,000	6,013,000
Debt securities, unrealized loss, 12 months or greater, accumulated loss	(225,000)	(598,000)
Debt securities, unrealized loss fair value	9,757,000	9,965,000
Debt securities, unrealized loss fair value, accumulated loss	(317,000)	(753,000)
Municipal Bonds [Member]
Marketable Securities [Line Items]
Debt securities, unrealized loss, less than 12 months	5,897,000	868,000
Debt securities, unrealized loss, less than 12 months, accumulated loss	(20,000)	(6,000)
Debt securities, unrealized loss, 12 months or greater	773,000	3,769,000
Debt securities, unrealized loss, 12 months or greater, accumulated loss	(80,000)	(224,000)
Debt securities, unrealized loss fair value	6,670,000	4,637,000
Debt securities, unrealized loss fair value, accumulated loss	(100,000)	(230,000)
Real Estate Investment [Member]
Marketable Securities [Line Items]
Debt securities, unrealized loss, less than 12 months		36,000
Debt securities, unrealized loss, less than 12 months, accumulated loss		(9,000)
Debt securities, unrealized loss, 12 months or greater	66,000	35,000
Debt securities, unrealized loss, 12 months or greater, accumulated loss	(8,000)	(13,000)
Debt securities, unrealized loss fair value	66,000	71,000
Debt securities, unrealized loss fair value, accumulated loss	(8,000)	(22,000)
Equity Securities [Member]
Marketable Securities [Line Items]
Debt securities, unrealized loss, less than 12 months	2,255,000	3,048,000
Debt securities, unrealized loss, less than 12 months, accumulated loss	(72,000)	(140,000)
Debt securities, unrealized loss, 12 months or greater	766,000	2,209,000
Debt securities, unrealized loss, 12 months or greater, accumulated loss	(137,000)	(361,000)
Debt securities, unrealized loss fair value	3,021,000	5,257,000
Debt securities, unrealized loss fair value, accumulated loss	$ (209,000)	$ (501,000)

v3.24.2

Investments (Details Narrative) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Debt securities maturity description	The investments in debt securities, which include municipal bonds and bond funds, mature between July 2024 and July 2041.
Impairment loss	$ 22,000	$ 67,000
Gross realized gain	789,000	512,000
Gross realized losses	613,000	740,000
Gross realized loss debt	28,000	63,000
Debt securities realized loss	$ 527,000	$ 25,000

v3.24.2

Retirement Benefit Plan (Details Narrative) - USD ($)		12 Months Ended
	Jan. 01, 1998	Apr. 30, 2024	Apr. 30, 2023
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.
Employees vesting percentage	100.00%
Employer matching contribution vesting period	P6Y
Employees matching contributions		$ 60,000	$ 58,000

v3.24.2

Stockholders’ Equity (Details Narrative)	12 Months Ended
	Apr. 30, 2024 $ / shares shares
Equity [Abstract]
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.
Redemption price per share	$ 20
Dividend rate per share	$ 1
Purchase of common stock shares | shares	33,813

v3.24.2

Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Earnings Per Share of Common Stock
Net income	$ 7,558,000	$ 4,757,000
Basic EPS, Income	$ 7,558,000	$ 4,757,000
Basic EPS, Shares	4,913,676	4,930,835
Basic EPS, Per-Share Amount	$ 1.54	$ 0.96
Effect of dilutive Convertible Preferred Stock, Income
Effect of dilutive Convertible Preferred Stock, Shares	20,500	20,500
Effect of dilutive Convertible Preferred Stock, Per-Share Amount	$ (0.01)
Diluted EPS, Income	$ 7,558,000	$ 4,757,000
Diluted EPS, Shares	4,934,176	4,951,335
Diluted EPS, Per-Share Amount	$ 1.53	$ 0.96

v3.24.2

Commitments, Contingencies, and Related Party Transactions (Details Narrative) - Joel Wiens [Member] - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Bank deposit	$ 6,712,000	$ 4,637,000
Interest income on bank deposit	$ 170,000	$ 103,000

v3.24.2

Schedule of Income Tax Provision (Details) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Current:
Federal	$ 1,604,000	$ 1,051,000
State	511,000	175,000
Deferred:
Federal	495,000	(108,000)
State	155,000	(60,000)
Total Income Tax Expense	$ 2,765,000	$ 1,058,000

v3.24.2

Schedule of Reconciliation of Income Taxes with Federal and State Taxable Income (Details) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Income Tax Disclosure [Abstract]
Income before income taxes	$ 10,323,000	$ 5,815,000
State income tax deduction	(478,000)	(351,000)
Interest and dividend income	(489,000)	(511,000)
Nondeductible expenses and timing differences	(2,379,000)	(11,000)
Taxable income	$ 6,977,000	$ 4,942,000

v3.24.2

Schedule of Statutory Rate to Income Before Taxes (Details) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision at statutory rate	$ 2,916,000	$ 1,657,000
State income taxes	(135,000)	(100,000)
Interest and dividend income	(138,000)	(146,000)
Deferred taxes	650,000	(168,000)
Other temporary and permanent differences	(528,000)	(185,000)
Total Income Tax Expense	$ 2,765,000	$ 1,058,000
Federal tax rate	21.00%	21.00%
State tax rate	7.25%	7.50%
Blended statutory rate	28.25%	28.50%

v3.24.2

Summary of Deferred Tax Assets (Liabilities) (Details) - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Income Tax Disclosure [Abstract]
Depreciation	$ (312,000)	$ (276,000)
Capitalized R&D expense	320,000	165,000
Inventory valuation	104,000	111,000
Allowance for doubtful accounts	10,000	5,000
Accrued vacation	37,000	37,000
Accumulated unrealized (gain)/loss on investments	(2,547,000)	(1,769,000)
Net deferred tax assets (liabilities)	$ (2,388,000)	$ (1,727,000)

v3.24.2

Schedule of Financial Information Relating to Industry Segments (Details) - USD ($)	3 Months Ended	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2024	Apr. 30, 2023
Segment Reporting Information [Line Items]
Total net revenue	$ 5,592,000	$ 21,767,000	$ 19,979,000
Total income from operations	1,615,000	6,289,000	5,060,000
Total depreciation and amortization	123,000	487,000	445,000
Total capital expenditures	115,000	378,000	548,000
Total assets	60,780,000	60,780,000	55,951,000
Security Alarm Products [Member]
Segment Reporting Information [Line Items]
Total net revenue	5,002,000	19,630,000	17,428,000
Total income from operations	1,457,000	5,672,000	4,414,000
Total depreciation and amortization	56,000	202,000	194,000
Total capital expenditures	97,000	321,000	237,000
Total assets	15,263,000	15,263,000	14,251,000
Cable and Wiring Tools [Member]
Segment Reporting Information [Line Items]
Total net revenue	368,000	1,484,000	1,870,000
Total income from operations	110,000	429,000	474,000
Total depreciation and amortization	30,000	121,000	122,000
Total capital expenditures
Total assets	2,082,000	2,082,000	2,548,000
Other Products [Member]
Segment Reporting Information [Line Items]
Total net revenue	222,000	653,000	681,000
Total income from operations	48,000	188,000	172,000
Total depreciation and amortization	24,000	92,000	81,000
Total capital expenditures		20,000	268,000
Total assets	859,000	859,000	981,000
Corporate General [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	13,000	72,000	48,000
Total capital expenditures	18,000	37,000	43,000
Total assets	$ 42,576,000	$ 42,576,000	$ 38,171,000

v3.24.2

Concentrations (Details Narrative) - USD ($)	12 Months Ended
	Apr. 30, 2024	Apr. 30, 2023
Concentration Risk [Line Items]
Cash FDIC insured amount	$ 250,000
Uninsured amount	$ 6,494,000	$ 4,530,000
Sales Security Alarm [Member] | Customer Concentration Risk [Member] | Customer [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	37.00%	36.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	56.00%	44.00%
Sales (Security Switch) [Member] | Customer Concentration Risk [Member] | Customer [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	90.00%	87.00%
Wells Fargo Bank [Member]
Concentration Risk [Line Items]
Uninsured amount	$ 151,000	$ 56,000

v3.24.2

Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	Apr. 30, 2024	Apr. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	$ 34,488,000	$ 31,363,000
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	6,985,000	5,212,000
Real Estate Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	66,000	71,000
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	26,502,000	25,019,000
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	935,000	1,061,000
Fair Value, Inputs, 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	27,437,000	26,080,000
Fair Value, Inputs, 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
Fair Value, Inputs, Level 1 [Member] | Real Estate Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Fair Value, Inputs, 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	26,502,000	25,019,000
Fair Value, Inputs, 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	935,000	1,061,000
Fair Value, Inputs, 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	7,051,000	5,283,000
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	6,985,000	5,212,000
Fair Value, Inputs, Level 2 [Member] | Real Estate Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	66,000	71,000
Fair Value, Inputs, 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
Fair Value, Inputs, 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
Fair Value, Inputs, 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
Fair Value, Inputs, 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
Fair Value, Inputs, Level 3 [Member] | Real Estate Investment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Fair Value, Inputs, 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
Fair Value, Inputs, 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

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