George Risk Industries, Inc 10-K for FY2024

George Risk Industries, Inc. (RSKIA)

10-K 2024-07-31 For: 2024-04-30

Added on April 06, 2026

About this 10-K

George Risk Industries, Inc filed this 10-K on July 31, 2024, covering the fiscal year ended April 30, 2024 (FY2024).

Headline figures

Fiscal year ended April 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $21.77M; up 8.9% from $19.98M a year earlier
Net income: $7.56M; up 58.9% from net income of $4.76M a year earlier
Diluted EPS: $1.53; up 59.4% from $0.96 a year earlier

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Colorado		84-0524756
(State of incorporation)		(IRS Employer Identification No.)

802 South Elm St., Kimball, NE		69145
(Address of principal executive offices)		(Zip Code)

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

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

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

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

		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

	●	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.

	●	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.

	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

	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

	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

	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

	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

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

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

	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

			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

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	)

	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

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

	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

	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	%

	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	)

	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

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.

●	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.

●	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.

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

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

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

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).

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