10-Q
GEORGE RISK INDUSTRIES, INC. (RSKIA)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended January 31, 2026
☐ TRANSITION REPORT PURSUANT TO 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<br> of incorporation) | (IRS<br> Employers Identification No.) |
| 802<br> S. Elm St., Kimball, NE | 69145 |
| --- | --- |
| (Address<br> of principal executive offices) | (Zip<br> Code) |
(308) 235-4645
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| Class<br> A Common Stock, $0.10 par value | RSKIA | OTC<br> Markets |
| Convertible<br> Preferred Stock, $20 stated value | RSKIA | OTC<br> Markets |
Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit 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<br> accelerated filer ☐ | Accelerated<br> filer ☐ |
|---|---|
| Non-accelerated<br> filer ☐ | Smaller<br> reporting company ☒ |
| Emerging<br> 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
APPLICABLE
ONLY TO CORPORATE ISSUERS:
The
number of shares of the Registrant’s Common Stock outstanding, as of March 17, 2026, was 4,889,054.
GEORGE
RISK INDUSTRIES, INC.
PART
I. FINANCIAL INFORMATION
Item
- Financial Statements
The unaudited financial statements for the three- and nine-month period ended January 31, 2026, are attached hereto.
| 2 |
| --- |
GEORGE
RISK INDUSTRIES, INC.
CONDENSED
BALANCE SHEETS
| April<br> 30, 2025 | |||
|---|---|---|---|
| ASSETS | |||
| Current Assets: | |||
| Cash and cash<br> equivalents | 4,463,000 | $ | 6,471,000 |
| Investments and securities | 41,324,000 | 35,736,000 | |
| Accounts receivable: | |||
| Trade, net of allowance<br> for credit losses of 29,699 and 12,414 | 4,900,000 | 4,693,000 | |
| Other | 50,000 | 59,000 | |
| Income tax overpayment | 576,000 | — | |
| Federal solar tax credit<br> receivable | 2,300,000 | 2,154,000 | |
| Inventories, net | 11,597,000 | 10,740,000 | |
| Prepaid<br> expenses | 340,000 | 514,000 | |
| Total Current Assets | 65,550,000 | 60,367,000 | |
| Property and Equipment, net, at cost | 1,978,000 | 2,031,000 | |
| Other Assets | |||
| Investment in Limited Land<br> Partnership, at cost | — | 25,000 | |
| Projects in process | 10,000 | 10,000 | |
| Other | 1,000 | — | |
| Total Other Assets | 11,000 | 35,000 | |
| Intangible Assets, net | 816,000 | 907,000 | |
| TOTAL ASSETS | 68,355,000 | $ | 63,340,000 |
All values are in US Dollars.
See accompanying notes to the unaudited condensed financial statements.
| 3 |
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
BALANCE SHEETS
(continued)
| April<br> 30, 2025 | |||||
|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current Liabilities | |||||
| Accounts payable,<br> trade | 304,000 | $ | 301,000 | ||
| Dividends payable | 3,726,000 | 3,302,000 | |||
| Deferred income | 28,000 | 17,000 | |||
| Accrued expenses | 487,000 | 523,000 | |||
| Income<br> tax payable | — | 25,000 | |||
| Total Current Liabilities | 4,545,000 | 4,168,000 | |||
| Long-Term Liabilities | |||||
| Deferred<br> income taxes | 3,140,000 | 2,310,000 | |||
| Total Long-Term Liabilities | 3,140,000 | 2,310,000 | |||
| Total Liabilities | 7,685,000 | 6,478,000 | |||
| Commitments and Contingencies | — | — | |||
| Stockholders’ Equity | |||||
| Convertible preferred stock,<br> 1,000,000 shares authorized, Series 1—noncumulative, 20 stated value, 25,000 shares authorized, 4,239 issued and outstanding | 102,000 | 102,000 | |||
| Common stock, Class A,<br> .10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding | 850,000 | 850,000 | |||
| Additional paid-in capital | 1,931,000 | 1,931,000 | |||
| Accumulated other comprehensive<br> income | 63,000 | (77,000 | ) | ||
| Retained earnings | 62,796,000 | 59,072,000 | |||
| Less:<br> treasury stock, 3,613,827 and 3,610,451 shares, at cost | (5,072,000 | ) | (5,016,000 | ) | |
| Total Stockholders’<br> Equity | 60,670,000 | 56,862,000 | |||
| TOTAL LIABILITES AND<br> STOCKHOLDERS’ EQUITY | 68,355,000 | $ | 63,340,000 |
All values are in US Dollars.
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
INCOME STATEMENTS
FOR
THE THREE AND NINE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Jan<br> 31, 2026 | Jan<br> 31, 2025 | Jan<br> 31, 2026 | Jan<br> 31, 2025 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months | Three months | Nine months | Nine months | |||||||||
| ended | ended | ended | ended | |||||||||
| Jan<br> 31, 2026 | Jan<br> 31, 2025 | Jan<br> 31, 2026 | Jan<br> 31, 2025 | |||||||||
| Net Sales | $ | 5,659,000 | $ | 4,912,000 | $ | 17,889,000 | $ | 16,306,000 | ||||
| Less: Cost of Goods Sold | (3,092,000 | ) | (2,614,000 | ) | (9,330,000 | ) | (8,349,000 | ) | ||||
| Gross Profit | 2,567,000 | 2,298,000 | 8,559,000 | 7,957,000 | ||||||||
| Operating Expenses | ||||||||||||
| General and Administrative | 375,000 | 344,000 | 1,111,000 | 1,098,000 | ||||||||
| Sales | 839,000 | 726,000 | 2,454,000 | 2,320,000 | ||||||||
| Engineering | 35,000 | 32,000 | 81,000 | 86,000 | ||||||||
| Total Operating Expenses | 1,249,000 | 1,102,000 | 3,646,000 | 3,504,000 | ||||||||
| Income From Operations | 1,318,000 | 1,196,000 | 4,913,000 | 4,453,000 | ||||||||
| Other Income (Expense) | ||||||||||||
| Other | — | 1,000 | 66,000 | 97,000 | ||||||||
| Dividend and Interest Income | 683,000 | 536,000 | 1,312,000 | 1,152,000 | ||||||||
| Unrealized Gain on equity<br> securities | 369,000 | 92,000 | 3,662,000 | 1,505,000 | ||||||||
| Gain on Sale of Investments | 511,000 | 341,000 | 777,000 | 890,000 | ||||||||
| Gain on Solar Tax Credit | 134,000 | 95,000 | 134,000 | 468,000 | ||||||||
| (Loss)<br> on Sale of Assets | — | — | (30,000 | ) | (2,000 | ) | ||||||
| Total Other Income | 1,697,000 | 1,065,000 | 5,921,000 | 4,110,000 | ||||||||
| Income Before Provisions for Income Taxes | 3,015,000 | 2,261,000 | 10,834,000 | 8,563,000 | ||||||||
| Provisions for Income Taxes: | ||||||||||||
| Current Expense | 452,000 | 602,000 | 1,441,000 | 1,771,000 | ||||||||
| Deferred<br> Tax Expense | 83,000 | 52,000 | 778,000 | 264,000 | ||||||||
| Total Income Tax Expense | 535,000 | 654,000 | 2,219,000 | 2,035,000 | ||||||||
| Net Income | $ | 2,480,000 | $ | 1,607,000 | $ | 8,615,000 | $ | 6,528,000 | ||||
| Income Per Share of Common Stock | ||||||||||||
| Basic | $ | 0.51 | $ | 0.33 | $ | 1.76 | $ | 1.33 | ||||
| Diluted | $ | 0.51 | $ | 0.33 | $ | 1.75 | $ | 1.33 | ||||
| Weighted Average Number of Common | ||||||||||||
| Shares Outstanding | ||||||||||||
| Weighted Average Number of Common Shares Outstanding | ||||||||||||
| Basic | 4,889,160 | 4,895,382 | 4,890,785 | 4,896,281 | ||||||||
| Diluted | 4,910,355 | 4,915,882 | 4,911,980 | 4,916,781 |
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF COMPREHENSIVE INCOME
FOR
THE THREE AND NINE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Three months | Three months | Nine months | Nine months | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ended | ended | ended | ended | |||||||||
| Jan<br> 31, 2026 | Jan<br> 31, 2025 | Jan<br> 31, 2026 | Jan<br> 31, 2025 | |||||||||
| Net Income | $ | 2,480,000 | $ | 1,607,000 | $ | 8,615,000 | $ | 6,528,000 | ||||
| Other Comprehensive Income/(Loss), Net of Tax | ||||||||||||
| Unrealized gain (loss)<br> on debt securities: | ||||||||||||
| Unrealized holding gains (losses) arising<br> during period | (25,000 | ) | (81,000 | ) | 192,000 | 132,000 | ||||||
| Income<br> tax (expense)/benefit related to other comprehensive income | 6,000 | 23,000 | (52,000 | ) | (37,000 | ) | ||||||
| Other<br> Comprehensive Income (Loss) | (19,000 | ) | (58,000 | ) | 140,000 | 95,000 | ||||||
| Comprehensive Income | $ | 2,461,000 | $ | 1,549,000 | $ | 8,755,000 | $ | 6,623,000 |
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR
THE THREE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Shares | Amount | Shares | Amount | |||||
|---|---|---|---|---|---|---|---|---|
| Preferred<br> Stock | Common Stock Class A | |||||||
| Shares | Amount | Shares | Amount | |||||
| Balances, October 31, 2025 | 4,239 | $ | 102,000 | 8,502,881 | $ | 850,000 | ||
| Purchases of Common Stock | — | — | — | — | ||||
| Unrealized (loss), net of tax effect | — | — | — | — | ||||
| Net Income | — | — | — | — | ||||
| Balances, January 31,<br> 2026 | 4,239 | $ | 102,000 | 8,502,881 | $ | 850,000 | ||
| Preferred<br> Stock | Common Stock Class A | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shares | Amount | Shares | Amount | |||||
| Balances, October 31, 2024 | 4,100 | $ | 99,000 | 8,502,881 | $ | 850,000 | ||
| Purchases of common stock | — | — | — | — | ||||
| Unrealized (loss), net of tax effect | — | — | — | — | ||||
| Net Income | — | — | — | — | ||||
| Balances, January 31,<br> 2025 | 4,100 | $ | 99,000 | 8,502,881 | $ | 850,000 |
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR
THE THREE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Capital | Shares | Amount | Income | Earnings | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated | |||||||||||||||
| Treasury Stock | Other | ||||||||||||||
| Paid-In | (Common<br> Class A) | Comprehensive | Retained | ||||||||||||
| Capital | Shares | Amount | Income | Earnings | Total | ||||||||||
| Balances, October 31, 2025 | $ | 1,931,000 | 3,611,751 | $ | (5,037,000 | ) | $ | 82,000 | $ | 60,316,000 | $ | 58,244,000 | |||
| Purchases of Common Stock | — | 2,076 | (35,000 | ) | — | — | (35,000 | ) | |||||||
| Unrealized (loss), net of tax effect | — | — | — | (19,000 | ) | — | (19,000 | ) | |||||||
| Net Income | — | — | — | — | 2,480,000 | 2,480,000 | |||||||||
| Balances, January 31,<br> 2026 | $ | 1,931,000 | 3,613,827 | $ | (5,072,000 | ) | $ | 63,000 | $ | 62,796,000 | $ | 60,670,000 | |||
| Accumulated | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Treasury Stock | Other | ||||||||||||||
| Paid-In | (Common<br> Class A) | Comprehensive | Retained | ||||||||||||
| Capital | Shares | Amount | Income | Earnings | Total | ||||||||||
| Balances, October 31, 2024 | $ | 1,934,000 | 3,606,151 | $ | (4,945,000 | ) | $ | 16,000 | $ | 56,860,000 | $ | 54,814,000 | |||
| Purchases of Common Stock | — | 2,000 | (32,000 | ) | — | — | (32,000 | ) | |||||||
| Unrealized (loss), net of tax effect | — | — | — | (58,000 | ) | — | (58,000 | ) | |||||||
| Net Income | — | — | — | — | 1,607,000 | 1,607,000 | |||||||||
| Balances, January 31,<br> 2025 | $ | 1,934,000 | 3,608,151 | $ | (4,977,000 | ) | $ | (42,000 | ) | $ | 58,467,000 | $ | 56,331,000 |
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR
THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Amount | Shares | Amount | |||||
|---|---|---|---|---|---|---|---|
| Common Stock Class A | |||||||
| Amount | Shares | Amount | |||||
| Balances, April 30, 2025 | 4,239 | $ | 102,000 | 8,502,881 | $ | 850,000 | |
| Purchases of common stock | — | — | — | — | |||
| Dividend declared at 1.00 per common share<br> outstanding | — | — | — | — | |||
| Unrealized gain, net of tax effect | — | — | — | — | |||
| Net Income | — | — | — | — | |||
| Balances, January 31,<br> 2026 | 4,239 | $ | 102,000 | 8,502,881 | $ | 850,000 |
All values are in US Dollars.
| Common Stock Class A | |||||||
|---|---|---|---|---|---|---|---|
| Amount | Shares | Amount | |||||
| Balances, April 30, 2024 | 4,100 | $ | 99,000 | 8,502,881 | $ | 850,000 | |
| Purchases of common stock | — | — | — | — | |||
| Dividend declared at 1.00 per common share<br> outstanding | — | — | — | — | |||
| Unrealized gain, net of tax effect | — | — | — | — | |||
| Net Income | — | — | — | — | |||
| Balances, January 31,<br> 2025 | 4,100 | $ | 99,000 | 8,502,881 | $ | 850,000 |
All values are in US Dollars.
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR
THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Shares | Amount | Income | Earnings | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Accumulated | |||||||||||||||
| Treasury Stock | Other | ||||||||||||||
| (Common<br> Class A) | Comprehensive | Retained | |||||||||||||
| Shares | Amount | Income | Earnings | Total | |||||||||||
| Balances, April 30, 2025 | 1,931,000 | 3,610,451 | $ | (5,016,000 | ) | $ | (77,000 | ) | $ | 59,072,000 | $ | 56,862,000 | |||
| Purchases of common stock | — | 3,376 | (56,000 | ) | — | — | (56,000 | ) | |||||||
| Dividend declared at 1.00 per common share outstanding | — | — | — | — | (4,891,000 | ) | (4,891,000 | ) | |||||||
| Unrealized gain, net of tax effect | — | — | — | 140,000 | — | 140,000 | |||||||||
| Net Income | — | — | — | — | 8,615,000 | 8,615,000 | |||||||||
| Balances, January 31,<br> 2026 | 1,931,000 | 3,613,827 | $ | (5,072,000 | ) | $ | 63,000 | $ | 62,796,000 | $ | 60,670,000 |
All values are in US Dollars.
| Accumulated | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Treasury Stock | Other | ||||||||||||||
| (Common<br> Class A) | Comprehensive | Retained | |||||||||||||
| Shares | Amount | Income | Earnings | Total | |||||||||||
| Balances, April 30, 2024 | 1,934,000 | 3,606,151 | $ | (4,945,000 | ) | $ | (137,000 | ) | $ | 56,836,000 | $ | 54,637,000 | |||
| Purchases of common stock | — | 2,000 | (32,000 | ) | — | — | (32,000 | ) | |||||||
| Dividend declared at 1.00 per common share outstanding | — | — | — | — | (4,897,000 | ) | (4,897,000 | ) | |||||||
| Unrealized gain, net of tax effect | — | — | — | 95,000 | — | 95,000 | |||||||||
| Net Income | — | — | — | — | 6,528,000 | 6,528,000 | |||||||||
| Balances, January 31,<br> 2025 | 1,934,000 | 3,608,151 | $ | (4,977,000 | ) | $ | (42,000 | ) | $ | 58,467,000 | $ | 56,331,000 |
All values are in US Dollars.
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
CONDENSED
STATEMENTS OF CASH FLOWS
FOR
THE NINE MONTHS ENDED JANUARY 31, 2026 AND 2025
(Unaudited)
| Jan<br> 31, 2026 | Jan<br> 31, 2025 | |||||
|---|---|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net Income | $ | 8,615,000 | $ | 6,528,000 | ||
| Adjustments to reconcile<br> net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 246,000 | 363,000 | ||||
| (Gain) on sale of<br> investments | (777,000 | ) | (890,000 | ) | ||
| Unrealized (gain) on equity<br> investments | (3,662,000 | ) | (1,505,000 | ) | ||
| Provision for credit losses<br> on accounts receivable | 17,000 | (18,000 | ) | |||
| Reserve for obsolete inventory | (26,000 | ) | 39,000 | |||
| Deferred income taxes | 778,000 | 264,000 | ||||
| Loss on sales of assets | 30,000 | 2,000 | ||||
| Changes in assets and liabilities: | ||||||
| (Increase) decrease in: | ||||||
| Accounts receivable | (224,000 | ) | 193,000 | |||
| Inventories | (831,000 | ) | 151,000 | |||
| Prepaid expenses | 175,000 | (106,000 | ) | |||
| Other receivables | 9,000 | 27,000 | ||||
| Federal solar tax credit<br> receivable | (146,000 | ) | (2,375,000 | ) | ||
| Income tax overpayment | (600,000 | ) | — | |||
| Increase (decrease) in: | ||||||
| Accounts payable | 3,000 | 57,000 | ||||
| Deferred gain on solar<br> tax credit | — | 47,000 | ||||
| Accrued expense | (26,000 | ) | (63,000 | ) | ||
| Income<br> tax payable | — | 460,000 | ||||
| Net cash from operating<br> activities | 3,581,000 | 3,174,000 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| (Purchase) of property<br> and equipment | (133,000 | ) | (359,000 | ) | ||
| Proceeds from sale of marketable<br> securities | 19,000 | 670,000 | ||||
| (Purchase) of marketable<br> securities | (977,000 | ) | (806,000 | ) | ||
| Distribution<br> from investment in limited land partnership | 25,000 | 269,000 | ||||
| Net cash from investing<br> activities | (1,066,000 | ) | (226,000 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| (Purchase)<br> of treasury stock | (56,000 | ) | (32,000 | ) | ||
| Dividends<br> paid | (4,467,000 | ) | (4,448,000 | ) | ||
| Net cash from financing<br> activities | (4,523,000 | ) | (4,480,000 | ) | ||
| NET CHANGE IN CASH AND<br> CASH EQUIVALENTS | (2,008,000 | ) | (1,532,000 | ) | ||
| Cash and Cash Equivalents,<br> beginning of period | 6,471,000 | 7,112,000 | ||||
| Cash and Cash Equivalents,<br> end of period | $ | 4,463,000 | $ | 5,580,000 | ||
| Supplemental Disclosure for Cash Flow Information: | ||||||
| Cash payments for: | ||||||
| Income<br> taxes | $ | 1,430,000 | $ | 320,000 | ||
| Interest<br> paid | $ | 2,000 | $ | 1,000 | ||
| Cash receipts for: | ||||||
| Income<br> taxes | $ | 226,000 | $ | 19,000 |
See accompanying notes to the unaudited condensed financial statements.
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GEORGE
RISK INDUSTRIES, INC.
NOTES
TO CONDENSED FINANCIAL STATEMENTS
JANUARY
31, 2026
Note 1: Unaudited Interim Financial Statements
The accompanying financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. It is suggested that these unaudited condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s April 30, 2025 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year.
AccountingEstimates — The preparation of these condensed 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.
SignificantAccounting Policies — The significant accounting policies used in preparation of these condensed financial statements are disclosed in our Annual Report, and there have been no changes to the Company’s significant accounting policies during the nine months ended January 31, 2026.
Purchaseof Transferrable Tax Credits – In September 2024, pursuant to transferability provisions of the Inflation Reduction Act of 2022, the Company executed an agreement to purchase a tax credit of $3,431,000 created by solar energy projects qualifying under Internal Revenue Code Section 48 (the “Solar Tax Credit”) in exchange for consideration of $2,917,000, resulting in a total gain on federal Solar Tax Credit of $514,000. This tax credit is available to offset income tax payments for the Company’s 2025 fiscal year and for up to the prior four fiscal years. Purchase of additional solar tax credit took place in January 2026 for tax credit towards the current fiscal year 2026. The amount of tax credit purchased was $960,000 in exchange for consideration of $826,000, resulting in a gain of $134,000 for the fiscal year ending April 30, 2026. Once the amount of the current federal income tax due is known, amendments will be made to the prior fiscal years until the total credit has been used. As of January 31, 2026, this is shown as a receivable of $2,300,000.
SegmentReporting and Related Information — In fiscal year 2025, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which was issued by the Financial Accounting Standards Board (FASB). This new standard requires an enhanced disclosure of significant segment expenses on an annual basis.
OperatingSegments and Related Disclosures
We manage our company as one reportable operating segment. The segment information aligns with how the Company’s Chief Operating Decision Maker (“CODM”) reviews and manages our business. The Company’s CODM is Stephanie Risk-McElroy, President and Chief Executive and Financial Officer.
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Financial information, annual operating plans, and forecasts are prepared and reviewed by the CODM at an entity level. The CODM assesses performance for the segment and decides how to allocate resources more effectively based on the net income reported in the Statements of Income and Comprehensive Income. The Company’s objective in making resource allocation decisions is to optimize the financial results.
RecentlyIssued Accounting Pronouncements — In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic740), 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 has adopted this standard, which has had minimal impact on its Financial Statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures(Subtopic 220-40) Disaggregation of Income Statement Expenses, which requires public business entities to disclose additional information about certain expenses in the notes to the financial statements. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.
In July 2025, the FASB issued ASU No. 2024-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for AccountsReceivable and Contract Assets, which provides that in developing supportable forecasts as part of estimating expected credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. An entity that elects the practical expedient should apply the amendment prospectively. The Company does not expect the adoption of this new accounting guidance to have a material effect on its Consolidated Financial Statements.
| 13 |
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Note 2: Investments
The Company has investments in publicly traded equity securities, state and municipal debt securities, real estate investment trusts, and money markets. The investments in debt securities, which include municipal bonds and bond funds, mature between June 2026 and December 2050. 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. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned.
As of January 31, 2026 and April 30, 2025, investments consisted of the following:
Schedule of Investments
| Investments on | Gross | Gross | |||||||
|---|---|---|---|---|---|---|---|---|---|
| January 31,<br> 2026 | Cost | Unrealized | Unrealized | Fair | |||||
| Basis | Gains | Losses | Value | ||||||
| Municipal<br> bonds | $ | 8,570,000 | $ | 212,000 | $ | (64,000 | ) | $ | 8,718,000 |
| REITs | 74,000 | 5,000 | (9,000 | ) | 70,000 | ||||
| Equity securities | 18,492,000 | 12,843,000 | (110,000 | ) | 31,225,000 | ||||
| Money markets and CDs | 1,311,000 | — | — | 1,311,000 | |||||
| Total | $ | 28,447,000 | $ | 13,060,000 | $ | (183,000 | ) | $ | 41,324,000 |
| Investments on | Gross | Gross | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| April 30,<br> 2025 | Cost | Unrealized | Unrealized | Fair | |||||
| Basis | Gains | Losses | Value | ||||||
| Municipal<br> bonds | $ | 7,681,000 | $ | 141,000 | $ | (135,000 | ) | $ | 7,687,000 |
| REITs | 74,000 | 1,000 | (7,000 | ) | 68,000 | ||||
| Equity securities | 17,689,000 | 9,330,000 | (307,000 | ) | 26,712,000 | ||||
| Money markets and CDs | 1,269,000 | — | — | 1,269,000 | |||||
| Total | $ | 26,713,000 | $ | 9,472,000 | $ | (449,000 | ) | $ | 35,736,000 |
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 marketable securities for other-than-temporary declines in fair value, which are defined as declines in fair value that result in the cost basis exceeding the fair value for approximately one year. The Company also evaluates the nature of the investment, the cause of impairment, and the number of investments in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, there were no impairment losses recorded for any of the quarters or the nine-month periods ending January 31, 2026 and 2025.
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The
Company’s investments are actively traded in the stock and bond markets. Therefore, either a realized gain or loss is recorded when a sale occurs. For the quarter ended January 31, 2026, the Company had sales of equity securities, which yielded gross realized gains of $602,000 and gross realized losses of $90,000. For the same period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $1,000 were recorded. For the nine months ended January 31, 2026, the Company had sales of equity securities which yielded gross realized gains of $954,000 and gross realized losses of $188,000. For the same nine month period, sales of debt securities yielded gross realized gains of $24,000 and gross realized losses of $13,000. During the quarter ending January 31, 2025, the Company recorded gross realized gains and losses on equity securities of $424,000 and $76,000, respectively, while sales of debt securities did not yield any gross realized gains, but gross realized losses of $7,000 were recorded. During the nine-month period ending January 31, 2025, the Company recorded gross realized gains and losses on equity securities of $1,070,000 and $159,000, respectively. For the same nine-month period last year, sales of debt securities did not yield any gross realized gains, but gross realized losses of $20,000 were recorded.
The following tables show 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 on January 31, 2026 and April 30, 2025, respectively.
Unrealized
Loss Breakdown by Investment Type on January 31, 2026
Schedule of Unrealized Loss Breakdown by Investment Type
| Description | Less than 12 months, Fair Value | Less than 12 months, Unrealized Loss | 12 months or greater, Fair Value | 12 months or greater, Unrealized Loss | Total, Fair Value | Total, Unrealized Loss | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Less<br> than 12 months | 12<br> months or greater | Total | |||||||||||||
| Description | Fair<br> Value | Unrealized<br> Loss | Fair<br> Value | Unrealized<br> Loss | Fair<br> Value | Unrealized<br> Loss | |||||||||
| Municipal<br> bonds | $ | 37,000 | $ | — | $ | 1,049,000 | $ | (63,000 | ) | $ | 1,086,000 | $ | (63,000 | ) | |
| REITs | — | — | 36,000 | (9,000 | ) | 36,000 | (9,000 | ) | |||||||
| Equity securities | 730,000 | (50,000 | ) | 269,000 | (61,000 | ) | 999,000 | (111,000 | ) | ||||||
| Total | $ | 767,000 | $ | (50,000 | ) | $ | 1,354,000 | $ | (133,000 | ) | $ | 2,121,000 | $ | (183,000 | ) |
Unrealized
Loss Breakdown by Investment Type on April 30, 2025
| Description | Less than 12 months, Fair Value | Less than 12 months, Unrealized Loss | 12 months or greater, Fair Value | 12 months or greater, Unrealized Loss | Total, Fair Value | Total, Unrealized Loss | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Less<br> than 12 months | 12<br> months or greater | Total | |||||||||||||
| Description | Fair<br> Value | Unrealized<br> Loss | Fair<br> Value | Unrealized<br> Loss | Fair<br> Value | Unrealized<br> Loss | |||||||||
| Municipal<br> bonds | $ | 550,000 | $ | (21,000 | ) | $ | 2,108,000 | $ | (114,000 | ) | $ | 2,658,000 | $ | (135,000 | ) |
| REITs | — | — | 38,000 | (7,000 | ) | 38,000 | (7,000 | ) | |||||||
| Equity securities | 1,562,000 | (132,000 | ) | 2,238,000 | (175,000 | ) | 3,800,000 | (307,000 | ) | ||||||
| Total | $ | 2,112,000 | $ | (153,000 | ) | $ | 4,384,000 | $ | (296,000 | ) | $ | 6,496,000 | $ | (449,000 | ) |
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MunicipalBonds
Increases in interest rates caused the unrealized losses on the Company’s investments in municipal bonds. The contractual terms of these investments do not permit the issuer to settle the securities at a price below the investment’s amortized cost. Because the Company has the ability to hold these investments until a recovery of fair value, which may occur at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of January 31, 2026 and April 30, 2025.
MarketableEquity Securities and REITs
The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold these investments for an extended period, the Company does not consider them to be other-than-temporarily impaired as of January 31, 2026 and April 30, 2025.
Note 3: Inventories
Inventories on January 31, 2026 and April 30, 2025, consisted of the following:
Schedule of Inventories
| January 31, | April 30, | |||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||
| Raw materials | $ | 9,504,000 | $ | 9,279,000 | ||
| Work in process | 1,029,000 | 776,000 | ||||
| Finished goods | 1,450,000 | 1,097,000 | ||||
| Inventory, gross | 11,983,000 | 11,152,000 | ||||
| Less: allowance for obsolete<br> inventory | (386,000 | ) | (412,000 | ) | ||
| Inventories, net | $ | 11,597,000 | $ | 10,740,000 |
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Note 4: 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
| For<br> the three months ended January 31, 2026 | |||||||
|---|---|---|---|---|---|---|---|
| Income | Shares | Per-Share | |||||
| (Numerator) | (Denominator) | Amount | |||||
| Net income | $ | 2,480,000 | |||||
| Basic EPS | $ | 2,480,000 | 4,889,160 | $ | .51 | ||
| Effect of dilutive Convertible Preferred<br> Stock | — | 21,195 | — | ||||
| Diluted<br> EPS | $ | 2,480,000 | 4,910,355 | $ | .51 | ||
| For<br> the three months ended January 31, 2025 | |||||||
| --- | --- | --- | --- | --- | --- | --- | |
| Income | Shares | Per-Share | |||||
| (Numerator) | (Denominator) | Amount | |||||
| Net income | $ | 1,607,000 | |||||
| Basic EPS | $ | 1,607,000 | 4,895,382 | $ | .33 | ||
| Effect of dilutive Convertible Preferred<br> Stock | — | 20,500 | — | ||||
| Diluted<br> EPS | $ | 1,607,000 | 4,915,882 | $ | .33 | ||
| For<br> the nine months ended January 31, 2026 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Income | Shares | Per-Share | |||||
| (Numerator) | (Denominator) | Amount | |||||
| Net income | $ | 8,615,000 | |||||
| Basic EPS | $ | 8,615,000 | 4,890,785 | $ | 1.76 | ||
| Effect of dilutive Convertible Preferred<br> Stock | — | 21,195 | (.01 | ) | |||
| Diluted<br> EPS | $ | 8,615,000 | 4,911,980 | $ | 1.75 | ||
| For<br> the nine months ended January 31, 2025 | |||||||
| --- | --- | --- | --- | --- | --- | --- | |
| Income | Shares | Per-Share | |||||
| (Numerator) | (Denominator) | Amount | |||||
| Net income | $ | 6,528,000 | |||||
| Basic EPS | $ | 6,528,000 | 4,896,281 | $ | 1.33 | ||
| Effect of dilutive Convertible Preferred<br> Stock | — | 20,500 | — | ||||
| Diluted<br> EPS | $ | 6,528,000 | 4,916,781 | $ | 1.33 |
Note 5: 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, 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 by the Company of approximately $18,000 and $14,000 were paid during each quarter ending January 31, 2026 and 2025, respectively. Likewise, the Company paid matching contributions of approximately $50,000 and $44,000 during the nine-month periods ending January 31, 2026 and 2025, respectively.
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Note 6: Fair Value Measurements
The carrying value of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximates 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 used in valuation techniques to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below:
| Level<br> 1 | Valuation<br> is based upon quoted prices for identical instruments traded in active markets. |
|---|---|
| Level<br> 2 | Valuation<br> is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets<br> that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
| Level<br> 3 | Valuation<br> is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions<br> reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques<br> include use of option pricing models, discounted cash flow models and similar techniques. |
Investmentsand Marketable Securities
As of January 31, 2026 and April 30, 2025, our investments consisted of money markets, publicly traded equity securities, real estate investment trusts (REITs) as well as certain state and municipal debt securities. The marketable securities are valued using third-party broker statements. The value of the majority of securities is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.
FairValue 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.
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Schedule of Assets Measured at Fair Value on Recurring Basis
| Level<br> 1 | Level<br> 2 | Level<br> 3 | Total | |||||
|---|---|---|---|---|---|---|---|---|
| Assets<br> Measured at Fair Value on a Recurring Basis as of January 31, 2026 | ||||||||
| Level<br> 1 | Level<br> 2 | Level<br> 3 | Total | |||||
| Assets: | ||||||||
| Municipal<br> Bonds | $ | — | $ | 8,718,000 | $ | — | $ | 8,718,000 |
| REITs | — | 70,000 | — | 70,000 | ||||
| Equity<br> Securities | 31,225,000 | — | — | 31,225,000 | ||||
| Money<br> Markets | 1,311,000 | — | — | 1,311,000 | ||||
| Total fair value of<br> assets measured on a recurring basis | $ | 32,536,000 | $ | 8,788,000 | $ | — | $ | 41,324,000 |
| Level<br> 1 | Level<br> 2 | Level<br> 3 | Total | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets<br> Measured at Fair Value on a Recurring Basis as of April 30, 2025 | ||||||||
| Level<br> 1 | Level<br> 2 | Level<br> 3 | Total | |||||
| Assets: | ||||||||
| Municipal<br> Bonds | $ | — | $ | 7,687,000 | $ | — | $ | 7,687,000 |
| REITs | — | 68,000 | — | 68,000 | ||||
| Equity<br> Securities | 26,712,000 | — | — | 26,712,000 | ||||
| Money<br> Markets | 1,269,000 | — | — | 1,269,000 | ||||
| Total fair value of<br> assets measured on a recurring basis | $ | 27,981,000 | $ | 7,755,000 | $ | — | $ | 35,736,000 |
Note 7 Subsequent Events
None
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GEORGE
RISK INDUSTRIES, INC.
PART
I. FINANCIAL INFORMATION
Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations
MANAGEMENT
DISCUSSION AND ANALYSIS
OF
FINANCIAL CONDITION
AND
RESULTS OF OPERATIONS
ThisQuarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, asamended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subjectto the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemedto be forward-looking statements. For example, words such as “may,” “will,” “could,” “would,”“should,” “anticipate,” “expect,” “intend,” “believe,” “estimate,”“project” or “continue,” and the negatives of such terms are intended to identify forward-looking statements.The information included herein represents our estimates and assumptions as of the date of this filing. Unless required by law, we undertakeno obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially fromthose anticipated in these forward-looking statements, even if new information becomes available in the future.
Thefollowing discussion should be read in conjunction with the attached unaudited condensed financial statements, and with the Company’saudited financial statements and discussion for the fiscal year ended April 30, 2025.
ExecutiveSummary
The Company’s performance in operations has remained consistent across the three quarters of the current fiscal year, with sales in the third quarter slightly lower than those in the second quarter of the current fiscal year. This dip is mainly due to our business being tied to the housing market and the winter months usually see a slowdown. Opportunities include keeping up with business growth and finding ways to get our products to our customers in a timelier manner. One way we are doing this is by exploring more automation and reconfiguring our production floor to improve workflow efficiency. We continue to look at businesses that might be a good fit to purchase and continue to work on new products that will be a good fit for our industry and business. Challenges in the coming months include getting products out to customers in a timely manner and managing the ongoing effects of tariffs and increased material and labor costs. Management continues to work to keep operations flowing as efficiently as possible with the hopes of getting the facilities running leaner and more profitable than ever before.
Results of Operations
| ● | Net<br> sales were $5,659,000 for the quarter ended January 31, 2026, which is a 15.21% increase<br> from the corresponding quarter last year. Year-to-date net sales were $17,889,000 as of January<br> 31, 2026, which is a 9.71% increase from the same period last year. The increase in sales<br> in the current quarter is a result of continued growth and market share we are experiencing<br> in our industry and catching up on back orders. Management believes the ongoing commitment<br> to outstanding customer service and product customization are just a couple of the many reasons<br> sales continue to grow. |
|---|---|
| ● | Cost<br> of goods sold was 54.64% of net sales for the quarter ended January 31, 2026, and was 53.22%<br> for the same quarter last year. Year-to-date cost of goods sold was 52.15% of net sales for<br> the current nine months and 51.2% for the corresponding nine months last year. The current<br> cost of goods sold percentage goals of keeping labor and other manufacturing expenses below<br> 50% are just slightly over for the quarter and year-to-date. This is due to increases in<br> wages and material costs. Management continues to work with and train employees to work more<br> efficiently. Management offset a portion of these added expenses by implementing a 5% price<br> increase effective January 1, 2026. |
| --- | --- |
| 20 |
| --- | | ● | Operating<br> expenses increased by $147,000 for the quarter as they increased by $142,000 for the nine<br> months ended January 31, 2026, compared to the corresponding periods last year. When comparing<br> percentages in relation to net sales, the operating expenses for the quarter ended January<br> 31, 2026, were 22.07% of net sales compared to 22.43% for the same quarter the prior year.<br> For year-to-date numbers, operating expenses were 20.38% and 21.49% of net sales for the<br> nine months ended January 31, 2026 and 2025, respectively. The Company has been able to keep<br> operating expenses below 25% of net sales for many years; however, the year-to-date increase<br> in actual dollar amount is due to an increase in commission amounts, related to increased<br> sales, and additional labor costs related to wage increases. | | --- | --- | | ● | Income<br> from operations for the quarter ended January 31, 2026 was $1,318,000, a 10.2% increase from<br> the corresponding quarter last year, which had income from operations of $1,196,000. Income<br> from operations for the nine months ended January 31, 2025, was $4,913,000, a 10.33% increase<br> from the corresponding nine months last year, when income from operations was $4,453,000. | | --- | --- | | ● | Other<br> income and expenses for the quarter ended January 31, 2026, show income of $1,697,000, which<br> is a $632,000 increase from the corresponding quarter last year, which had income of $1,065,000.<br> Conversely, there is an increase of $1,811,000 in other income for the year-to-date numbers.<br> Most of the activity in these accounts consists of investment income, dividends, realized<br> gains or losses on sale of investments, and unrealized gains or losses on equity securities.<br> The main reason for the gains in the current quarter and year-to-date numbers is the unrealized<br> gain and loss on equity securities. The stock market influences these figures and continues<br> to do so positively. | | --- | --- | | ● | Overall,<br> net income for the quarter ended January 31, 2026, increased $873,000, or 54.32%, from the<br> same quarter last year. Net income for the nine-month period ended January 31, 2025, increased<br> $2,087,000, or 31.97%, from the same period in the prior year. | | --- | --- | | ● | Earnings<br> per common share for the quarter ended January 31, 2026, were $0.51 per share and $1.76 per<br> share for the year-to-date numbers. EPS for the quarter and nine months ended January 31,<br> 2025, were $0.33 per share and $1.33 per share, respectively. | | --- | --- |
Liquidity and capital resources
Operating
| ● | Net<br> cash decreased $2,008,000 during the nine months ended January 31, 2026, compared to a decrease<br> of $1,532,000 during the corresponding period last year. |
|---|---|
| ● | Accounts<br> receivable increased $224,000 for the nine months ended January 31, 2026, compared with a<br> $193,000 decrease for the same period last year. The current year’s increase is due<br> to increased sales and delays in collecting accounts receivable from a couple of larger customers<br> during their ERP computer transitions. An analysis of accounts receivable shows that 19.52%<br> of receivables were over 90 days as of January 31, 2026. Significant collections happened<br> in February 2026, and receivables over 90 days at the end of February 2026 stand at 7.04%. |
| --- | --- |
| 21 |
| --- | | ● | Inventories<br> increased $831,000 during the current nine-month period compared to a decrease of $151,000<br> last year. The increase in the current year is primarily due to replenishing raw material<br> levels and higher raw materials costs due to tariffs and increased labor costs. | | --- | --- | | ● | Prepaid<br> expenses decreased $175,000 for the current nine months, primarily due to reduced prepayments<br> on inventory during the current nine-month period. The prior nine-month period showed a $106,000<br> increase in prepaid expenses. | | --- | --- | | ● | The<br> federal solar tax credit receivable represents the remaining federal solar tax credits we<br> will receive from our purchase of transferable tax credits, pursuant to the transferability<br> provisions of the Inflation Reduction Act of 2022. | | --- | --- | | ● | Income<br> tax receivable increased $600,000 for the current nine-month period, compared to an increase<br> of $460,000 in income tax payable for the nine month period ended January 31, 2025. The current<br> year income tax receivable increase is the result of increased income, in which income tax<br> estimates have been adjusted accordingly, and delays in the utilization of the federal solar<br> tax credits. | | --- | --- | | ● | Accounts<br> payable increased $3,000 for the current nine-month period ended January 31, 2026, compared<br> to a $57,000 increase for the prior nine-month period. The company strives to pay all invoices<br> within terms, and the variance is primarily due to the timing of product receipts and invoice<br> payments. | | --- | --- | | ● | Accrued<br> expenses decreased $26,000 for the current nine-month period compared to a $63,000 decrease<br> for the nine-month period ended January 31, 2025. The difference in the amounts is primarily<br> due to timing issues. | | --- | --- |
Investing
| ● | The<br> Company spent approximately $133,000 on acquisitions of property and equipment for the current<br> nine-month period, in comparison with the corresponding nine months last year, when the Company<br> used $359,000 for property and equipment purchases. |
|---|---|
| ● | The<br> Company continues to purchase marketable securities, which include municipal bonds and quality<br> stocks. During the nine-month period ended January 31, 2026, the buy/sell activity in the<br> investment accounts continued as usual. Net cash spent on purchases of marketable securities<br> for the nine-month period ended January 31, 2026, was $977,000 compared to $806,000 spent<br> in the prior nine-month period. The Company continues to use “money manager”<br> accounts for most stock transactions. By doing this, the Company gives an independent third-party<br> firm, who are experts in this field, permission to buy and sell stocks at will. The Company<br> pays a quarterly service fee based on the value of the investments. |
| --- | --- |
| ● | The<br> Company received a cash distribution of $25,000 from the investment in the limited land partnership<br> during the nine-month period ending January 31, 2026. This was the final distribution from<br> the sale of the limited land partnership, and this asset has been cleared from the Company’s<br> books. |
| --- | --- |
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Financing
| ● | The<br> Company continues to purchase back common stock when the opportunity arises. For the nine<br> months ended January 31, 2026, the Company purchased $56,000 worth of treasury stock. This<br> is in comparison to $32,000 spent in the same nine-month period the prior year. |
|---|---|
| ● | The<br> company paid out dividends of $4,467,000 during the nine months ending January 31, 2026.<br> These dividends were paid during the second quarter. The company declared a dividend of $1.00<br> per share of common stock on September 30, 2025, and paid it by October 31, 2025. Dividends<br> paid in the prior year were $4,448,000 for the nine months ending January 31, 2025. A dividend<br> of $1.00 per common share was declared and paid during the second fiscal quarter last year. |
| --- | --- |
New Product Development
The Company and its engineering department continually work to enhance current product lines, develop new products that complement existing products, and identify products well-suited to our distribution network and manufacturing capabilities. Items currently in various stages of the development process include:
| ● | Explosion<br> proof contacts that will be UL listed for hazardous locations. There has been demand from<br> our customers for this type of high security magnetic reed switch. |
|---|---|
| ● | Research<br> is being done on programmable temperature and humidity sensors with built-in hysteresis,<br> a miniature profile overhead door contact based on our popular 4532 series, and a brass water<br> valve shut-off system. |
| --- | --- |
| ● | Production<br> has begun on a couple of newly developed products. First, there are magnetic contacts listed<br> under UL 634 Level 2. These sensors will require additional UL testing and are used in high<br> security applications such as government buildings, military installations, nuclear facilities,<br> and financial institutions. Second, we have updated our small-profile glass-break detector,<br> and third, we have expanded the GR3045 panic switch to include single-pull, double-throw<br> (SPDT) versions, latching and non-latching, with LED indicator lights. |
| --- | --- |
| ● | Wireless<br> technology is a central area of focus for product development. We are considering adding<br> wireless technology to some of our current products. A wireless contact switch is in the<br> final stages of development. We are also working on wireless versions of monitoring devices<br> that include glass-break detection, tilt sensing, and environmental monitoring. |
| --- | --- |
Other Information
In addition to researching and developing new products, management is always open to acquiring a business or product line that would complement our existing operations. Given the Company’s strong cash position, management believes this could be achieved without outside financing. The intent is to leverage the equipment, marketing techniques, and established customers to deliver new products and increase sales and profits.
There are no known seasonal trends in any of GRI’s products, as we sell to distributors and OEM manufacturers. Our products are tied to the housing industry and will fluctuate with building trends.
| 23 |
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GEORGE
RISK INDUSTRIES, INC.
PART
I. FINANCIAL INFORMATION
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Not applicable
Item 4. Controls and Procedures
DisclosureControls and Procedures
The Company’s management, with the participation of the Company’s Chief Executive Officer (also serving as the Chief Financial Officer), has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of January 31, 2026. Based on such evaluation, the Company’s Chief Executive Officer has concluded that, as of January 31, 2026, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and are designed to ensure that information required to be disclosed by the Company in the reports we file or submit under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer, as appropriate to allow timely decisions regarding required disclosure.
Changesin Internal Control Over Financial Reporting
No change in our internal control over financial reporting occurred during the fiscal quarter ended January 31, 2026, which has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
| 24 |
| --- |
GEORGE
RISK INDUSTRIES, INC.
Part
II. OTHER INFORMATION
Item
- Legal Proceedings
Not applicable
Item 1A. Risk Factors
Not applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information relating to the Company’s repurchase of common stock for the third quarter of fiscal year 2026.
| Period | Number<br> of shares repurchased |
|---|---|
| November<br> 1, 2025 – November 30, 2025 | 1,751 |
| December<br> 1, 2025 – December 31, 2025 | 325 |
| January<br> 1, 2026 – January 31, 2026 | -0- |
Item 3. Defaults upon Senior Securities
Not applicable
Item 4. Mine Safety Disclosures
Not applicable
Item 5. Other Information
Not applicable
Item 6. Exhibits
| Exhibit<br>No. | Description |
|---|---|
| 31.1 | Certification<br> of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section<br> 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Certification<br> of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 906 of the Sarbanes-Oxley<br> Act of 2002. |
| 101.INS | Inline<br> XBRL Instance Document |
| 101.SCH | Inline<br> XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline<br> XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline<br> XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline<br> XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline<br> XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document |
| 25 |
| --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
George
Risk Industries, Inc.
(Registrant)
| Date<br> March 17, 2026 | By: | /s/ Stephanie M. Risk-McElroy |
|---|---|---|
| Stephanie<br> M. Risk-McElroy | ||
| President,<br> Chief Executive Officer, Chief Financial Officer, and Chairman of the Board |
| 26 |
| --- |
Exhibit31.1
CERTIFICATIONPURSUANT TO
RULES13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
ASADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Stephanie M. Risk-McElroy, certify that:
(1) I have reviewed this quarterly report on Form 10-Q 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 quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4) I am 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 registrant 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 registrant 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 registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
(5) I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 registrant’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 registrant’s internal control over financial reporting.
| Date:<br> March 17, 2026 | By: | /s/<br> Stephanie M. Risk-McElroy |
|---|---|---|
| Stephanie<br> M. Risk-McElroy | ||
| Chief<br> Executive Officer and Chief Financial Officer |
Exhibit 32.1
CERTIFICATION 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 quarterly report of George Risk Industries, Inc. on Form 10-Q dated January 31, 2026 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 10-Q fairly presents in all material respects the financial condition and results of operations of George Risk Industries, Inc.
| Date: March 17, 2026 | By: | /s/ Stephanie M. Risk-McElroy |
|---|---|---|
| Stephanie M. Risk-McElroy | ||
| President and Chief Executive and Financial Officer |