10QSB 1 jan2007-10qsb.txt 10QSB FOR THE QUARTER ENDED JANUARY 31, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB (Mark One) [ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex- change Act of 1934 For the quarter ended January 31, 2007 [ ] Transition report under Section 13 or 15(d) of the Securities Ex- change Act of 1934 For the transition period from ____________ to____________ Commission File Number: 0-5378 GEORGE RISK INDUSTRIES, INC. (Exact name of small business issuer as specified in its charter) Colorado 84-0524756 (State of incorporation) (IRS Employers Identification No.) 802 South Elm St. Kimball, NE 69145 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (308) 235-4645 APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares of the Registrant's Common Stock outstanding, as of March 16, 2007 was 5,337,678. Transitional Small Business Disclosure Format: Yes [ X ] No [ ] GEORGE RISK INDUSTRIES, INC. PART I. FINANCIAL INFORMATION Item 1. Financial Statements The unaudited financial statements for the three and nine month period ended January 31, 2007, are attached hereto. GEORGE RISK INDUSTRIES, INC. BALANCE SHEET JANUARY 31, 2007
ASSETS Current Assets Cash and cash equivalents $ 4,321,000 Marketable securities (Note 2) 16,266,000 Accounts receivable: Trade, net of $50,000 doubtful account allowance 1,917,000 Other 1,000 Inventories (Note 3) 3,037,000 Prepaid expenses 145,000 Deferred current income taxes 195,000 ------------ Total Current Assets $25,882,000 Property and Equipment, net at cost $ 866,000 Other Assets Investment in Land Limited Partnership, at cost 200,000 Projects in process 48,000 Other 1,000 ------------ Total Other Assets $ 249,000 TOTAL ASSETS $26,997,000 ============
GEORGE RISK INDUSTRIES, INC. BALANCE SHEET JANUARY 31, 2007
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable, trade $ 191,000 Dividends payable 159,000 Accrued expenses Payroll and related expenses 226,000 Property taxes 2,000 Income tax payable 203,000 ------------ Total Current Liabilities $ 781,000 Long-Term Liabilities Notes payable 25,000 Deferred income taxes 52,000 ------------ Total Long-Term Liabilities $ 77,000 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 Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,832 shares issued and outstanding 850,000 Additional paid-in capital 1,736,000 Accumulated other comprehensive income 124,000 Retained earnings 25,419,000 Treasury stock, 3,163,594 shares, at cost (2,089,000) ------------ Total Stockholders' Equity $26,139,000 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $26,997,000 ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF INCOME AND RETAINED EARNINGS Three months Nine months Three months Nine months ended ended ended ended January 31, January 31, January 31, January 31, 2007 2007 2006 2006 ---------------------------------------------------- Net Sales $ 3,045,000 $10,087,000 $ 3,627,000 $10,675,000 Less: cost of goods sold (1,384,000) (4,793,000) (1,745,000) (5,138,000) ------------ ------------ ------------ ------------ Gross Profit $ 1,661,000 $ 5,294,000 $ 1,882,000 $ 5,537,000 Operating Expenses: General and administrative 180,000 517,000 180,000 526,000 Selling 613,000 1,865,000 581,000 1,801,000 Engineering 19,000 53,000 22,000 59,000 Rent paid to related parties 12,000 40,000 12,000 40,000 ------------ ------------ ------------ ------------ Total Operating Expenses $ 824,000 $ 2,475,000 $ 795,000 $ 2,426,000 Income From Operations 837,000 2,819,000 1,087,000 3,111,000 Other Income (Expense) Other 1,000 6,000 7,000 54,000 Dividend and interest income 225,000 502,000 135,000 326,000 Gain (loss) on investments 7,000 67,000 (158,000) (155,000) ------------ ------------ ------------ ------------ $ 233,000 $ 575,000 $ (16,000) $ 225,000 Income Before Provisions for Income Tax 1,070,000 3,394,000 1,071,000 3,336,000 Provisions for Income Tax Current Expense 448,000 1,418,000 448,000 1,410,000 Deferred tax expense (benefit) 32,000 6,000 (74,000) (88,000) ------------ ------------ ------------ ------------ Total Income Tax Expense 480,000 1,424,000 374,000 1,322,000 Net Income $ 590,000 $ 1,970,000 $ 697,000 $ 2,014,000 Retained Earnings, beginning of period $24,829,000 $24,250,000 $22,835,000 $22,054,000 Less: Cash Dividends Common Stock ($0.15 per share) 0 (801,000) 0 0 Common Stock ($0.10 per share) 0 0 0 (536,000) Retained Earnings, end of period $25,419,000 $25,419,000 $23,532,000 $23,532,000 Income Per Share of Common Stock: (Note 6) Basic $0.11 $0.37 $0.13 $0.38 Assuming Dilution $0.11 $0.37 $0.13 $0.37 Weighted Average Number of Common Shares Outstanding 5,340,091 5,341,955 5,359,627 5,365,072 Weighted Average Number of Shares Outstanding (assuming dilution) 5,360,591 5,362,455 5,380,127 5,385,572
GEORGE RISK INDUSTRIES, INC. STATEMENT OF COMPREHENSIVE INCOME
Three months Nine months Three months Nine months ended ended ended ended January 31, January 31, January 31, January 31, 2007 2007 2006 2006 ---------------------------------------------------- Net Income $ 590,000 $ 1,970,000 $ 697,000 $ 2,014,000 ------------ ------------ ------------ ------------ Other Comprehensive Income, net of tax Unrealized gain (loss) on securities: Unrealized holding gains (losses) arising during period 121,000 253,000 413,000 604,000 Reclassification adjustment for (gains) losses included in net income (7,000) (67,000) 158,000 155,000 Income tax expense related to other comprehensive income (48,000) (78,000) (239,000) (317,000) ------------ ------------ ------------ ------------ Other Comprehensive Income $ 66,000 $ 108,000 $ 332,000 $ 442,000 Comprehensive Income $ 656,000 $ 2,078,000 $ 1,029,000 $ 2,456,000 ============ ============ ============ ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF CASH FLOWS
Three months Nine months Three months Nine months ended ended ended ended January 31, January 31, January 31, January 31, 2007 2007 2006 2006 ---------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 590,000 $ 1,970,000 $ 697,000 $ 2,014,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 46,000 135,000 54,000 147,000 (Gain) 1oss on sale of investments (7,000) (67,000) 158,000 155,000 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable 134,000 221,000 (218,000) (124,000) Inventories (372,000) (767,000) (99,000) (103,000) Prepaid expenses (50,000) (33,000) 24,000 (50,000) Income tax overpayment 0 0 (187,000) (210,000) Deferred tax asset 84,000 96,000 (74,000) (88,000) Increase (decrease) in: Accounts payable 25,000 50,000 37,000 (2,000) Accrued expenses (145,000) (134,000) (87,000) (55,000) Income tax payable 43,000 473,000 0 0 ------------ ------------ ------------ ------------ Net cash provided by (used in) operating activities $ 348,000 $ 1,944,000 $ 305,000 $ 1,684,000 CASH FLOWS FROM INVESTING ACTIVITIES: Other assets manufactured (22,000) (18,000) 40,000 37,000 (Purchase) of property and equipment (23,000) (75,000) (108,000) (335,000) Proceeds from sale of marketable securities 1,557,000 4,618,000 773,000 2,074,000 (Purchase) of marketable securities (2,060,000) (6,844,000) (1,138,000) (3,111,000) (Purchase) of treasury stock (19,000) (58,000) (33,000) (161,000) ------------ ------------ ------------ ------------ Net cash provided by (used in) investing activities $ (567,000) $(2,377,000) $ (466,000) $(1,496,000) CASH FLOWS FROM FINANCING ACTIVITIES: Increase in long-term debt 0 0 0 100,000 Principal payments on long-term debt 0 (8,000) (25,000) (67,000) Dividends paid (2,000) (733,000) (3,000) (495,000) ------------ ------------ ------------ ------------ Net cash provided by (used in) financing activities $ (2,000) $ (741,000) $ (28,000) $ (462,000) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (221,000) $(1,174,000) $ (189,000) $ (274,000) Cash and cash equivalents, beginning of period $ 4,542,000 $ 5,495,000 $ 5,366,000 $ 5,451,000 ------------ ------------ ------------ ------------ Cash and cash equivalents, end of period $ 4,321,000 $ 4,321,000 $ 5,177,000 $ 5,177,000 ============ ============ ============ ============
GEORGE RISK INDUSTRIES, INC. NOTES TO FINANCIAL STATEMENTS JANUARY 31, 2007 Note 1 Unaudited Interim Financial Statements The accompanying financial statements have been prepared in accordance with the instructions for Form 10QSB and do not include all of the inform- ation and footnotes required by generally accepted accounting principals for complete financial statements. These financial statements should be read in conjunction with the financial statements and notes contained in the com- pany's annual report on Form 10KSB for the year ended April 30, 2006 with the SEC. 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. Note 2 Marketable Securities The Company has investments in publicly traded equity securities as well as certain state and municipal debt securities. These securities are class- ified as available-for-sale securities, and are reported at fair value. Realized gains and losses are determined on the average cost basis, and are included in the Company's statement of income. Unrealized gains and losses are excluded from earnings and reported separately as a component of stock- holder's equity. Dividend and interest income are accrued as earned. Marketable equity securities and unrealized gains and losses consist of the following as of January 31, 2007 and January 31, 2006: Cost Basis $ 16,052,000 $ 13,513,000 Market Value 16,266,000 13,236,000 ------------- ------------- Net Unrealized Gain (Loss) $ 214,000 $ (277,000) ============= ============= Gross Unrealized Gain $ 693,000 $ 577,000 ============= ============= Gross Unrealized Loss $ (479,000) $ (854,000) ============= =============
In accordance with SFAS 115, if the Company determines that a marketable security has an other-than temporary decline in fair value, generally defined as when the cost basis exceeds the fair value for approximately one year, 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 stand- ard, management did not have to record any impairment losses for the quarter ended January 31, 2007. Note 3 Inventories At January 31, 2007 and January 31, 2006, respectively, inventories con- sisted of the following: Raw Materials $ 1,830,000 $ 1,419,000 Work in Process 783,000 531,000 Finished Goods 427,000 231,000 Warehouse in England 67,000 47,000 ------------- ------------- $ 3,107,000 $ 2,228,000 Less: allowance for obsolete inventory (70,000) (70,000) ------------- ------------- Net Inventories $ 3,037,000 $ 2,158,000 ============= =============
Note 4 Business Segments The following is financial information relating to industry segments:
For the quarter ended January 31, 2007 2006 ---------------------------- Net revenue: Pool alarm products $ 156,000 $ 254,000 Keyboard products 344,000 151,000 Security alarm and other products 2,545,000 3,222,000 ------------- ------------- Total net revenue $ 3,045,000 $ 3,627,000 Income from operations: Pool alarm products $ 43,000 $ 76,000 Keyboard products 94,000 45,000 Security alarm and other products 700,000 966,000 ------------- ------------- Total income from operations $ 837,000 $ 1,087,000 Identifiable assets: Pool alarm products $ 238,000 $ 218,000 Keyboard products 446,000 179,000 Security alarm and other products 4,980,000 4,826,000 Corporate general 21,333,000 19,347,000 ------------- ------------- Total assets $ 26,997,000 $ 24,570,000 Depreciation and amortization: Pool alarm products $ 3,000 $ 3,000 Keyboard products 0 0 Security alarm and other products 33,000 34,000 Corporate general 10,000 17,000 ------------- ------------- Total depreciation and amortization $ 46,000 $ 54,000 Capital expenditures: Pool alarm products $ 0 $ 0 Keyboard products 0 0 Security alarm and other products 23,000 46,000 Corporate general 0 62,000 ------------- ------------- Total capital expenditures $ 23,000 $ 108,000
Note 5 Revenue Recognition Revenue is recognized when risks and benefits in ownership are trans- ferred, which normally occurs at the time of the shipment of products. Note 6 Earnings per Share Basic and diluted earning per share, assuming convertible preferred stock was converted for each period presented, are:
For the three months ended January 31, 2007 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $ 590,000 =========== Basic EPS $ 590,000 5,340,091 $ 0.11 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $ 590,000 5,360,591 $ 0.11 For the nine months ended January 31, 2007 ------------------------------------------ Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $1,970,000 =========== Basic EPS $1,970,000 5,341,955 $ 0.37 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $1,970,000 5,362,455 $ 0.37 For the three months ended January 31, 2006 ------------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ----------- Net Income $ 697,000 =========== Basic EPS $ 697,000 5,359,627 $ 0.13 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ----------- Diluted EPS $ 697,000 5,380,127 $ 0.13 For the nine months ended January 31, 2006 ------------------------------------------ Income Shares Per-share (Numerator) (Denominator) Amount ----------- ------------- ---------- Net Income $2,014,000 =========== Basic EPS $2,014,000 5,365,072 $ 0.38 Effect of dilutive securities: Convertible preferred stock 0 20,500 ----------- ------------- ---------- Diluted EPS $2,014,000 5,385,572 $ 0.37
Note 7 Retirement Benefit Plan On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the "Plan"). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $4,000 were paid during each quarter ending January 31, 2007 and 2006. Likewise, the Company paid matching contributions of $12,000 during each nine-month period ending January 31, 2007 and 2006. There were no discretionary contributions paid during either the quarters or nine-month periods ending January 31, 2007 and 2006, respectively. 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 The following discussion should be read in conjunction with the attached condensed consolidated financial statements, and with the George Risk Industries' audited financial statements and discussion for the fiscal year ended April 30, 2006. Net cash decreased $221,000 during the quarter ended January 31, 2007 as it also decreased $189,000 during the corresponding quarter last year. As for the year-to-date numbers, net cash decreased $741,000 for the nine months ended January 31, 2007, while, for the same period last year, net cash de- creased $462,000. Accounts receivable decreased $134,000 during the current quarter as compared to a $281,00 increase for the corresponding quarter last year. The year-to-date figures show a decrease of $221,000 for the current nine months and a $124,000 increase for the same period last year. The de- creases in cash flow for accounts receivable is a reflection of the decreases in sales. At January 31, 2007, 75.2% of the receivables were considered current (less than 45 days) and 13.1% of the total were over 90 days past due. Inventories increased $372,000 for the current quarter as compared to a $99,000 increase for the same quarter last year. The year-to-date numbers show a $767,000 increase in inventory for the current year, as there was a $103,000 increase for the same period last year. There are a couple of rea- sons for the increase in cash expenditures toward inventory. First of all, the Company's finished goods stock is back up to the level it should be a- round. This allows for immediate shipment of most stocked items, instead of having the customer wait a couple of days to get their order filled. Secondly, we are continuing to produce the $700,000+-keyboard order that was received a few months ago. Since the Company has the cash to purchase all the raw materials up front, it allows for better price negotiations on the inventory. For the quarter ended January 31, 2007, prepaid expenses in- creased $50,000, while there was decrease of $24,000 for the corresponding quarter last year. Changes in prepaid expenses in regards to cash flow in- creased by $33,000 and increased by $50,000 for the nine-month periods ending January 31, 2007 and 2006, respectively. For the quarter ended January 31, 2007, accounts payable increased $25,000 as compared to a $37,000 increase for the same quarter the year before. As for the year-to-date numbers, there was a $50,000 increase for the nine months ended January 31, 2007, and a $2,000 decrease for the same period ended January 31, 2006. Accrued expenses decreased by $145,000 for the quarter ended January 31, 2007, and these expenses decreased $87,000 for the cor- responding quarter the year before. As for the nine-month period ended January 31, 2007, accrued expenses decreased $134,000 and also decreased by $55,000 for the same period last year. Income tax payable decreased $43,000 for the quarter ended January 31, 2007, as it increased $187,000 for the quarter ended January 31, 2006. For the nine months ended January 31, 2007, income tax payable decreased $473,000, as it increased $210,000 for the cor- responding period a year ago. The decreases for the current term in income tax payable coincide with the decrease in sales and income. As for the Company's investing activities, there have not been any purchases or sales out of the ordinary during the current quarter. The Company has purchased a couple of fixed assets and continues to put money into buying more marketable securities. As for the year-to-date figures, fiscal year end 2007 shows nothing out of the ordinary, but for fiscal year end 2006 it is again notable to mention the fact that the Company purchased a building for the workers at our Gering, NE facility. This building, which is 7,500 square feet, is bigger than the one the satellite branch was in before and it was bought in conjunction with a loan/grant that we applied for and received from the City of Gering. This "loan" will be converted into grant money if the Company meets all the requirements for adding new employees to the community. Please see the Company's 10QSB for the quarter ended July 31, 2005 for more detailed information. Another large transaction that took place over the nine-month period ending January 31, 2006 was that the Company bought back $128,000 worth of common stock. The Company has been actively searching for stockholders that have been "lost" over the years. Many of the original stockholders are deceased and their descendants are choosing to sell the stock in order to clear up the estates, etc. As for the corresponding num- bers in this category, $19,000 and $58,000 were spent to buyback company stock for the three and nine months ending January 31, 2007, respectively. The following is a list of ratios to help analyze George Risk Industries' performance: For the quarter ended January 31, 2007 2006 ---------------------------------- Working capital $ 25,101,000 $ 22,883,000 Current ratio 33.140 46.045 Quick ratio 28.814 40.902
Net sales were $3,045,000 for the quarter ended January 31, 2007, which is a 16.05% decrease over the corresponding quarter last year. Year-to-date net sales at January 31, 2007 were $10,087,000, which is a 5.5% decrease over the same period last year. Cost of goods sold was 45.45% of net sales for the quarter ended January 31, 2007 and 48.11% for the same quarter last year. Year-to-date cost of goods sold percentages were 47.52% for the current nine months and 48.13% for the corresponding nine months last year. Having rel- atively the same percentage of cost of goods sold from period to period shows that we keep our costs in line. Operating expenses were 27.1% of net sales for the quarter ended January 31, 2007 as compared to 21.9% for the corresponding quarter last year. Year-to- date operating expenses were 24.5% of net sales for the nine months ended January 31, 2007, while they were 22.7% for the same period last year. Having relatively the same percentages for operating expenses shows that management has a good grip on spending habits. Income from operations for the quarter ended January 31, 2007 was at $837,000, which is a 23.0% decrease from the corresponding quarter last year, which had income from operations of $1,087,000. Income from operations for the nine months ended January 31, 2007 was at $2,819,000, which is a 9.4% decrease from the corresponding nine months last year, which had income from operations of $3,111,000. Other income and expenses showed a gain of $233,000 for the quarter and a $575,000 gain for the nine months that ended January 31, 2007. The numbers for the corresponding periods last year were a loss of $16,000 and a gain of $225,000. The main reason for the loss in the prior quarter is that some impaired investments had to be written down and the Company has to recognize a realized loss. Management has taken more of an active roll in hiring money managers to be able to watch the Company's investments better. Also, we are making a conscious effort to take gains on investments to counter the capital loss carryovers that expire at the end of this fiscal year. Net income for the quarter ended January 31, 2007 was at $590,000, a 15.35% decrease from the corresponding quarter last year, which showed net income of $697,000. Net income for the nine months ended January 31, 2007 was $1,970,000, a 2.18% decrease from the same period last year. Net income for the nine months ended January 31, 2006 was $2,014,000. Earnings per common share for the quarter ended January 31, 2007 was $0.11 per share and $0.37 per share for the year-to-date numbers. EPS for the quarter and nine months ended Jan- uary 31, 2006 was $0.13 per share and $0.38 per share, respectively. A dividend of $0.15 per common share was declared and stockholders of record as of September 30, 2006 received the dividend. The payment date was Oct- ober 31, 2006. This is the third consecutive year that the Company has de- clared a dividend and will hopefully continue this trend in the future. The reason that there is still a dividend payable on the books as of January 31, 2007 is that we did not have all the information that was needed in order to process checks to some stockholders. A dividend check is sent out once the Company receives all the correct information. Also, we have many "lost" stockholders on record, but with the continued declaration of dividends, we are finding it is easier to find the lost stockholders. George Risk Industries does have three distinct business segments, security alarm products (and other items), keyboard products, and pool alarm products that are subject to disclosure under SFAS No. 131. See the notes to the financial statements in order to examine these segments. The following is a product update. The new Pool Alarm is complete and it will start to be produced in April 2007. The new board design used will be more reliable. Also, the new design takes fewer parts so making them will be faster and easier. Pool Alarms continue to see growth as more states enact safety legislation aimed at preventing swimming pool accidents. The United Stated Senate and House have both issued bills that would make it a Federal Law for pools and spas to have some kind of alarm or other safety device in place. If this law is passed, management expects sales of the pool alarm to increase significantly. Furthermore, the Company is finishing work on a wireless pool alarm that will be shown at the ISC West Trade Show at the end of March 2007. The wireless design should open up a whole new market for the pool alarm. Engineering is currently working on a wireless contact switch. Wireless de- vices are showing large growth in the industry and management anticipates that adding a wireless contact to the product line will keep us as a leader in the magnetic contact field. The DPS-70R Door Hinge Positioning Switch is now available. This switch and housing are inserted into the hinge of a door and are made to look like a screw. This allows them to blend in with the hinge so they are practically invisible. The Company showed samples of this product at the ISC East show last fall and management anticipates strong sales. The Company is now offering a mini raceway to complement our existing raceway line. The size of this raceway is 3/8" x 3/8" and will have all connectors available this spring. The use of this raceway is excellent to cover speaker wire or phone wire. Much growth continues to be seen in the sale of special order products. A prime example is a water sensor that was custom-built with a connector on the wires. The Company recently completed a large special order of this nature for a company from Iceland. The Company is seeing increased sales to electrical contractors who are in- stalling the CC-01 Current Controller. This device can turn on lights in various areas when the door is opened. Another offering is a new Extreme Duty armored cable with a pull-apart switch for applications such as securing tractors, golf carts, or any other wheeled item that needs securing. Management is always open to the possibility to acquire a business that would complement our existing operations. This would probably not require any out- side financing. The intent is to utilize the equipment, marketing techniques and established customers to increase sales and profits. There are no known seasonal trends with any of our products, since we sell to distributors and OEM manufacturers. The products are tied to the housing in- dustry and will fluctuate with building trends. Item 3 Controls and Procedures (a) Information required by Item 307 Our Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness of the Company's "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 (Exchange Act) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this quarterly report, have concluded that our disclosure controls and procedures are effective based on their evaluation of these controls and procedures required by para- graph (b) of Exchange Act Rules 13a-15 or 15d-15. (b) Information required by Item 308 This disclosure is not yet required. GEORGE RISK INDUSTRIES, INC. Part II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable Item 2. Changes in Securities Not applicable. Item 3. Defaults upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Securities Not applicable Item 5. Other Information Not applicable Item 6. Exhibits and Reports on Form 8-K A. Exhibits 31. Certifications pursuant to Rule 13a-14(a) 31.1 Certification of the Chief Executive Officer 31.2 Certification of the Chief Financial Officer 32. Certifications pursuant to 18 U.S.C. 1350 32.1 Certification of the Chief Executive Officer 32.2 Certification of the Chief Financial Officer B. Reports on Form 8-K No 8-K reports were filed during the quarter ended January 31, 2007. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. George Risk Industries, Inc. (Registrant) Date 03-16-2007 By: /s/ Kenneth R. Risk Kenneth R. Risk President and Chairman of the Board Date 03-16-2007 By: /s/ Stephanie M. Risk Stephanie M. Risk Chief Financial Officer and Controller