10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q/A

Amendment No 1

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended January 31, 2020

[  ] 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 of incorporation)	(IRS Employers Identification No.)

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

(308) 235-4645

(Registrant’s telephone number, including area code)

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

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

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [X] 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 and post such files).

Yes [X] No [  ]

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

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]	Smaller reporting company [X]
	Emerging growth company [  ]

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

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

Yes [  ] No [X]

APPLICABLE ONLY TO CORPORATE ISSUERS:

The number of shares of the Registrant’s Common Stock outstanding, as of March 20, 2020, was 4,950,260.

EXPLANATORY NOTE

This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and nine months periods ended January 31, 2020 that we originally filed with the Securities and Exchange Commission, or the Commission, on March 23, 2020, or the Original Filing, in connection with our failure to give effect to the implementation of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) in the prior year financial statements included in the Original Filing.

All amendments and restatements to the financial statements are non-cash in nature.

Restatement

As further discussed in Note 10 to our unaudited financial statements in Part I, Item 1, “Financial Statements” of this Amendment, on April 1, 2020, we concluded that certain disclosures necessary to fairly explain the changes in the financial statements presented were excluded in our previous filings and that we would we would restate our previously issued financial statements for the three-and nine months periods ended January 31, 2019, as set forth in the Original Filing in connection with our failure to give effect to the implementation of ASU 2016-01 in the prior year financial statements included in the Original Quarterly Report on Form 10-Q.

Amendment

The purpose of this Amendment is to restate our previously issued unaudited financial statements and related disclosures for the three-and nine months periods ended January 31, 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to reflect the correction of the error described above.

Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment, along with Amendment #1 (“Amendments”) does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Form 10-Q.

See Note 10 to the financial statements included in Item 1 for additional information and a reconciliation of the previously reported amounts to the restated amounts.

Items Amended in this Filing

For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied:

Part I, Item 1. Financial Statements

Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Part I, Item 4. Controls and Procedures

In accordance with applicable Commission rules, this Amendment includes new certifications required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, from our Chief Executive Officer and Chief Financial Officer dated as of the date of filing of this Amendment.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Restated)

The restated unaudited financial statements for the three- and nine-month period ended January 31, 2020, are attached hereto.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

		January 31, 2020		April 30, 2019
		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	5,647,000	$	4,873,000
Investments and securities		28,178,000		27,291,000
Accounts receivable:
Trade, net of $993 and $9,321 doubtful account allowance		2,243,000		2,696,000
Other		4,000		6,000
Income tax overpayment		117,000		259,000
Inventories, net		5,046,000		4,583,000
Prepaid expenses		356,000		282,000
Total Current Assets		41,591,000		39,990,000
Property and Equipment, net, at cost		1,284,000		984,000
Other Assets
Investment in Limited Land Partnership, at cost		320,000		293,000
Projects in process		—		117,000
Other		3,000		3,000
Total Other Assets		323,000		413,000
Intangible Assets, net		1,548,000		1,640,000
TOTAL ASSETS	$	44,746,000	$	43,027,000

See accompanying notes to the unaudited condensed financial statements.

GEORGE RISK INDUSTRIES, INC.

CONDENSED BALANCE SHEETS

(continued)

		January 31, 2020			April 30, 2019
		(unaudited)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable, trade	$	222,000		$	206,000
Dividends payable		1,892,000			1,714,000
Accrued expenses		357,000			356,000
Total Current Liabilities		2,471,000			2,276,000
Long-Term Liabilities
Deferred income taxes		1,423,000			1,198,000
Total Long-Term Liabilities		1,423,000			1,198,000
Total Liabilities		3,894,000			3,474,000
Commitments and Contingencies		—			—
Stockholders’ Equity
Convertible preferred stock, 1,000,000 shares authorized,
Series 1—noncumulative, $20 stated value, 25,000 shares
authorized, 4,100 issued and outstanding		99,000			99,000
Common stock, Class A, $.10 par value, 10,000,000 shares
authorized, 8,502,881 shares issued and outstanding		850,000			850,000
Additional paid-in capital		1,934,000			1,934,000
Accumulated other comprehensive income		69,000			14,000
Retained earnings		42,198,000			40,883,000
Less: treasury stock, 3,552,621 and 3,544,271 shares, at cost		(4,298,000	)		(4,227,000	)
Total Stockholders’ Equity		40,852,000			39,553,000
TOTAL LIABILITES AND STOCKHOLDERS’ EQUITY	$	44,746,000		$	43,027,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED INCOME STATEMENTS (Unaudited)

	Three months			Nine months			Three months			Nine months
	ended			ended			ended			ended
	Jan 31, 2020			Jan 31, 2020			Jan 31, 2019			Jan 31, 2019
							(Restated)			(Restated)
Net Sales	$	3,589,000		$	10,852,000		$	3,455,000		$	10,551,000
Less: Cost of Goods Sold		(1,832,000	)		(5,462,000	)		(1,772,000	)		(5,467,000	)
Gross Profit		1,757,000			5,390,000			1,683,000			5,084,000
Operating Expenses
General and Administrative		302,000			928,000			294,000			911,000
Sales		587,000			1,698,000			531,000			1,611,000
Engineering		34,000			66,000			21,000			57,000
Rent Paid to Related Parties		—			8,000			5,000			14,000
Total Operating Expenses		923,000			2,700,000			851,000			2,593,000
Income From Operations		834,000			2,690,000			832,000			2,491,000
Other Income
Other		—			2,000			1,000			10,000
Dividend and Interest Income		423,000			782,000			471,000			816,000
Unrealized Gain (Loss) on equity securities		508,000			782,000			(184,000	)		(949,000	)
Gain on Investments		78,000			137,000			169,000			74,000
Gain on Sale of Assets		5,000			5,000			—			—
		1,014,000			1,708,000			457,000			(49,000	)
Income Before Provisions for Income Taxes		1,848,000			4,398,000			1,289,000			2,442,000
Provisions for Income Taxes:
Current Expense		359,000			911,000			291,000			799,000
Deferred Tax Expense (Benefit)		125,000			191,000			(44,000	)		(241,000	)
Total Income Tax Expense		484,000			1,102,000			247,000			558,000
Net Income	$	1,364,000		$	3,296,000		$	1,042,000		$	1,884,000
Income Per Share of Common Stock
Basic	$	0.28		$	0.67		$	0.21		$	0.38
Diluted	$	0.27		$	0.66		$	0.21		$	0.38
Weighted Average Number of Common
Shares Outstanding Basic		4,950,524			4,953,008			4,961,018			4,963,592
Diluted		4,971,024			4,973,508			4,981,518			4,984,092

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

		Three months			Nine months			Three months			Nine months
		ended			ended			ended			ended
		Jan 31, 2020			Jan 31, 2020			Jan 31, 2019			Jan 31, 2019
								(Restated)			(Restated)
Net Income	$	1,364,000		$	3,296,000		$	1,042,000		$	1,884,000
Other Comprehensive Income, Net of Tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period		27,000			77,000			56,000			221,000
Income tax benefit (expense) related to other comprehensive income		(8,000	)		(22,000	)		(16,000	)		(64,000	)
Other Comprehensive Income (Loss)		19,000			55,000			40,000			157,000
Comprehensive Income (Loss)	$	1,383,000		$	3,351,000		$	1,082,000		$	2,041,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JANUARY 31, 2020 AND 2019

(Unaudited)

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, October 31, 2019		4,100	$	99,000		8,502,881	$	850,000
Dividend declared at $0.40 per common share outstanding		—		—		—		—
Unrealized gain (loss), net of tax effect		—		—		—		—
Net Income		—		—		—		—
Balances, January 31, 2020		4,100	$	99,000		8,502,881	$	850,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, October 31, 2018 (Restated)		4,100	$	99,000		8,502,881	$	850,000
Purchases of common stock		—		—		—		—
Unrealized gain (loss), net of tax effect		—		—		—		—
Net Income		—		—		—		—
Balances, January 31, 2019 (Restated)		4,100	$	99,000		8,502,881	$	850,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED JANUARY 31, 2020 AND 2019

(Unaudited)

							Accumulated
Paid-In		Treasury Stock (Common Class A)					Other Comprehensive		Retained
Capital		Shares		Amount			Income		Earnings		Total
$	1,934,000		3,550,771	$	(4,281,000	)	$	50,000	$	40,834,000	$	39,486,000
	—		1,850		(17,000	)		—		—		(17,000	)
	—		—		—			19,000		—		19,000
	—		—		—			—		1,364,000		1,364,000
$	1,934,000		3,552,621	$	(4,297,000	)	$	69,000	$	42,198,000	$	40,852,000

		Treasury Stock					Accumulated Other
Paid-In		(Common Class A)					Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings		Total
$	1,934,000	3,541,234		$	(4,202,000	)	$	(58,000	)	$	38,127,000	$	36,750,000
	—		937		(8,000	)		—			—		(8,000	)
	—		—		—			40,000			—		40,000
	—		—		—			—			1,042,000		1,042,000
$	1,934,000		3,542,171	$	(4,210,000	)	$	(18,000	)	$	39,169,000	$	37,824,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED JANUARY 31, 2020 AND 2019

(Unaudited)

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, April 30, 2019		4,100	$	99,000		8,502,881	$	850,000
Purchases of common stock		—		—		—		—
Dividend declared at $0.40 per common share outstanding		—		—		—		—
Unrealized gain (loss), net of tax effect		—		—		—		—
Net Income		—		—		—		—
Balances, January 31, 2020		4,100	$	99,000		8,502,881	$	850,000

	Preferred Stock				Common Stock Class A
	Shares		Amount		Shares		Amount
Balances, April 30, 2018, as previously reported		4,100	$	99,000		8,502,881	$	850,000
Cumulative effect of restatement on prior periods, for adoption of ASU 2016-01		—		—		—		—
Balance at May 1, 2018 after adoption of ASU 2016-01, as restated		—		—		—		—
Purchases of common stock		—		—		—		—
Dividend declared at $0.38 per common share outstanding
Unrealized gain (loss), net of tax effect		—		—		—		—
Net Income		—		—		—		—
Balances, January 31, 2019 (Restated)		4,100	$	99,000		8,502,881	$	850,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE NINE MONTHS ENDED JANUARY 31, 2020 AND 2019

(Unaudited)

							Accumulated
Paid-In		Treasury Stock (Common Class A)					Other Comprehensive		Retained
Capital		Shares		Amount			Income		Earnings			Total
$	1,934,000		3,544,271	$	(4,227,000	)	$	14,000	$	40,883,000		$	39,553,000
	—		8,350		(71,000	)		—		—			(71,000	)
	—		—		—			—		(1,981,000	)		(1,981,000	)
	—		—		—			55,000		—			55,000
	—		—		—			—		3,296,000			3,296,000
$	1,934,000		3,552,621	$	(4,298,000	)	$	69,000	$	42,198,000		$	40,852,000

							Accumulated
Paid-In		Treasury Stock (Common Class A)					Other Comprehensive			Retained
Capital		Shares		Amount			Income			Earnings			Total
$	1,934,000		3,534,784	$	(4,148,000	)	$	2,249,000		$	36,746,000		$	37,730,000
								(2,424,000	)		2,424,000
	1,934,000		3,534,784		(4,148,000	)		(175,000	)		39,170,000			37,730,000
	—		7,387		(62,000	)		—			—			(62,000	)
	—		—		—			—			(1,885,000	)		(1,885,000	)
	—		—		—			157,000			—			157,000
	—		—		—			—			1,884,000			1,884,000
$	1,934,000		3,542,171	$	(4,210,000	)	$	(18,000	)	$	39,169,000		$	37,824,000

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

CONDENSED STATEMENT OF CASH FLOWS (Unaudited)

	Nine months			Nine months
	ended			ended
	Jan 31, 2020			Jan 31, 2019
					(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	3,296,000		$	1,884,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		276,000			248,000
(Gain) loss on sale of investments		(178,000	)		(142,000	)
Impairments on investments		41,000			68,000
Unrealized (gain) loss on equity investments		(782,000	)		949,000
Reserve for bad debts		(6,000	)		(3,000	)
Reserve for obsolete inventory		42,000			12,000
Deferred income taxes		191,000			(241,000	)
(Gain) loss on sale of assets		(5,000	)		—
Net book value of assets retired		(17,000	)		—
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		460,000			514,000
Inventories		(506,000	)		(999,000	)
Prepaid expenses		43,000			164,000
Other receivables		2,000			(2,000	)
Income tax overpayment		142,000			(106,000	)
Increase (decrease) in:
Accounts payable		16,000			(35,000	)
Accrued expenses		—			(36,000	)
Net cash provided by (used in) operating activities		3,015,000			2,275,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		7,000			—
(Purchase) of property and equipment		(468,000	)		(88,000	)
Proceeds from sale of marketable securities		760,000			761,000
(Purchase) of marketable securities		(640,000	)		(839,000	)
(Purchase) of long-term investment		(27,000	)		—
Net cash provided by (used in) investing activities		(368,000	)		(166,000	)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock		(71,000	)		(62,000	)
Dividends paid		(1,802,000	)		(1,752,000	)
Net cash provided by (used in) financing activities		(1,873,000	)		(1,814,000	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		774,000			295,000
Cash and Cash Equivalents, beginning of period		4,873,000			4,294,000
Cash and Cash Equivalents, end of period	$	5,647,000		$	4,589,000
Supplemental Disclosure for Cash Flow Information:
Cash payments for:
Income taxes	$	870,000		$	900,000
Interest paid	$	—		$	1,000
Cash receipts for:
Income taxes	$	159,000		$	—

See accompanying notes to the unaudited condensed financial statements

GEORGE RISK INDUSTRIES, INC.

NOTES TO RESTATED CONDENSED FINANCIAL STATEMENTS

JANUARY 31, 2020

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, 2019 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year.

Accounting Estimates—The preparation of these financial statements requires the use of estimates and assumptions including the carrying value of assets. The estimates and assumptions result in approximate rather than exact amounts.

Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal year 2020 and the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material impact on the Company’s financial statements and related disclosures because leases are not material to the financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective or fiscal years ending after December 15, 2020 and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

In June 2016, the FASB issued ASU 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company’s financial statements and disclosures.

In January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its condensed financial statements.

Revenue Recognition—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” or “ASC 606”. ASC 606 and all subsequently issued clarifying ASCs replaced most existing revenue recognition guidance in U.S. GAAP. ASC 606 also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard effective November 1, 2019. The effect of this adoption was immaterial to our Financial Statements, and the Company does not expect a material effect to the Financial Statements on an ongoing basis.

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company applies the following standards and recognizes revenue when (1) it has a firm contract and the parties are committed to perform their respective obligations, (2) the product has been shipped to and accepted by the customer or the service has been provided, (3) the sales price is fixed or determinable and (4) amounts are reasonably assured of collection, including the consideration of the customer’s ability and intention to pay when the amount is due. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Revenue is recorded net of provisions for discounts, which are typically agreed to upfront with the customer and do not represent variable consideration. The Company estimates these discounts in the same period that the revenue is recognized for products sales to customers. The amount of revenue recognized represents the amount that will not be subject to a significant future reversal of revenue. All sales to distributors and customers are generally final. In limited instances the Company may accept returned product due to quality. During the current fiscal year, returns have not been material.

The Company’s customers generally pay within 60 days from the receipt of a valid invoice. The Company offers discounts of up to 2% to certain customers for payments made within a specified number of days. These early pay discounts are estimated in the period of sale based on experience with sales to eligible customers. Early pay discounts are recorded as a deduction to the accounts receivable balance presented on the balance sheet.

The Company’s performance obligations are satisfied at the point in time when products are shipped to the customer, which is when the customer has title and the significant risks and rewards of ownership.

Note 2: Investments (Restated)

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets and they are recorded at fair value. The investments in debt securities have maturities between April 2020 and January 2044. The Company uses the average cost method to determine the cost of securities sold with any unrealized gains or losses reported in each respective period’s earnings. Dividend and interest income are reported as earned.

As of January 31, 2020 and April 30, 2019, investments consisted of the following:

Investments at			Gross		Gross
January 31, 2020	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,402,000	$	156,000	$	(43,000	)	$	5,515,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		3,000		(9,000	)		83,000
Equity securities		17,167,000		4,870,000		(241,000	)		21,796,000
Money markets and CDs		758,000		—		—			758,000
Total	$	23,442,000	$	5,029,000	$	(293,000	)	$	28,178,000

Investments at			Gross		Gross
April 30, 2019	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,459,000	$	79,000	$	(55,000	)	$	5,483,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		1,000		(6,000	)		84,000
Equity securities		16,618,000		4,143,000		(296,000	)		20,465,000
Money markets and CDs		1,233,000		—		—			1,233,000
Total	$	23,425,000	$	4,223,000	$	(357,000	)	$	27,291,000

Marketable securities that are 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 Operations in the period of the change; and debt securities are carried at fair value on the balance sheets with changes in fair value recorded as unrealized gains or losses in the Statement of Comprehensive Income. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On May 1. 2018, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings. 

The Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management do not record an impairment loss for the quarter, but did record an impairment loss of $41,000 for the nine months ended January 31, 2020. For the corresponding periods last year, management recorded an impairment loss of $36,000 for the quarter, and recorded a loss of $68,000 for the nine months ended January 31, 2019.

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 at January 31, 2020 and April 30, 2019, respectively.

Unrealized Loss Breakdown by Investment Type at January 31, 2020

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	—	$	—		$	401,000	$	(43,000	)	$	401,000	$	(43,000	)
REITs		—		—			57,000		(9,000	)		57,000		(9,000	)
Equity securities		445,000		(48,000	)		1,930,000		(193,000	)		2,375,000		(241,000	)
Total	$	445,000	$	(48,000	)	$	2,388,000	$	(245,000	)	$	2,833,000	$	(293,000	)

Unrealized Loss Breakdown by Investment Type at April 30, 2019

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)
REITs		—		—			32,000		(6,000	)		32,000		(6,000	)
Equity securities		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)
Total	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2020.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2020.

Note 3: Inventories

Inventories at January 31, 2020 and April 30, 2019 consisted of the following:

<TABLE>

	January 31,			April 30,
	2020			2019
Raw materials	$	4,102,000		$	3,644,000
Work in process		468,000			389,000
Finished goods		609,000			641,000
		5,179,000			4,674,000
Less: allowance for obsolete inventory		(133,000	)		(91,000	)
Totals	$	5,046,000		$	4,583,000

Note 4: Business Segments

The following is financial information relating to industry segments:

	Three months			Nine months		Three months		Nine months
	ended			ended		Ended		ended
	Jan 31, 2020			Jan 31, 2020		Jan 31, 2019		Jan 31, 2019
Net revenue:
Security alarm products	$	2,909,000		$	8,700,000	$	2,735,000	$	8,103,000
Cable & wiring tools		547,000			1,680,000		576,000		1,929,000
Other products		133,000			472,000		144,000		519,000
Total net revenue	$	3,589,000		$	10,852,000	$	3,455,000	$	10,551,000
Income from operations:
Security alarm products	$	669,000		$	2,156,000	$	659,000	$	1,972,000
Cable & wiring tools		129,000			417,000		138,000		415,000
Other products		36,000			117,000		35,000		104,000
Total income from operations	$	834,000		$	2,690,000	$	832,000	$	2,491,000
Depreciation and amortization:
Security alarm products	$	(22,000	)	$	72,000	$	37,000	$	57,000
Cable & wiring tools		31,000			92,000		30,000		92,000
Other products		34,000			50,000		—		55,000
Corporate general		50,000			62,000		14,000		44,000
Total depreciation and amortization	$	93,000		$	276,000	$	81,000	$	248,000
Capital expenditures:
Security alarm products	$	—		$	178,000	$	35,000	$	35,000
Cable & wiring tools		—			—		—		—
Other products		18,000			18,000		37,000		37,000
Corporate general		272,000			272,000		16,000		16,000
Total capital expenditures	$	290,000		$	468,000	$	88,000	$	88,000

		January 31, 2020		April 30, 2019
Identifiable assets:
Security alarm products	$	6,478,000	$	6,179,000
Cable & wiring tools		2,676,000		2,713,000
Other products		733,000		842,000
Corporate general		34,859,000		33,293,000
Total assets	$	44,746,000	$	43,027,000

Note 5: Earnings per Share (Restated)

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

	For the three months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	1,364,000
Basic EPS	$	1,364,000		4,950,524	$	0.28
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	1,364,000		4,971,024	$	0.27

	For the nine months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	3,296,000
Basic EPS	$	3,296,000		4,953,008	$	0.67
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	3,296,000		4,973,508	$	0.66

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38
Income per shares - Diluted	$	0.51	$	(0.13	)	$	0.38

Note 6: Retirement Benefit Plan

On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $14,000 and $2,000 were paid during both the quarters ending January 31, 2020 and 2019, respectively. Likewise, the Company paid matching contributions of approximately $23,000 during the nine-month period ending January 31, 2020 and $7,000 during the corresponding period the prior fiscal year.

Note 7: Fair Value Measurements

Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below:

Level 1	Valuation is based upon quoted prices for identical instruments traded in active markets.
Level 2	Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3	Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Investments and Marketable Securities

As of January 31, 2020, our investments consisted of money markets, certificates of deposit, publicly traded equity securities, real estate investment trusts (REITS) as well as certain state and municipal debt securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the investments is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

Fair Value Hierarchy

The following 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.

	Assets Measured at Fair Value on a Recurring Basis as of January 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,515,000	$	—	$	5,515,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		83,000		—		83,000
Equity Securities		21,796,000		—		—		21,796,000
Money Markets and CDs		758,000		—		—		758,000
Total fair value of assets measured on a recurring basis	$	22,580,000	$	5,598,000	$	—	$	28,178,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		84,000		—		84,000
Equity Securities		20,465,000		—		—		20,465,000
Money Markets and CDs		1,233,000		—		—		1,233,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000

Note 8: Related Party Transactions

The Company purchased a building that it previously leased from Bonita Risk. Bonita Risk is a director and an employee of the Company and is the majority holder of George Risk Industries, Inc. stock. This building contains the Company’s sales and accounting departments, maintenance department, engineering department and some production facilities. The purchase price of the building was $200,000 and the transaction happened during the Company’s third fiscal quarter.

Note 9: Subsequent Events

During and subsequent to the third quarter of the current fiscal year, the world has been impacted by the spread of the coronavirus (COVID-19). It has created significant economic uncertainty and volatility. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on our clients and client demand for our services and solutions; our ability to sell and provide our services and solutions, including as a result of travel restrictions and people working from home; the ability of our clients to pay for our services and solutions; and any closures of our and our clients’ offices and facilities. Any of these events could materially adversely affect our business, financial condition, results of operations and/or stock price.

The Company manufactures and supplies “essential” products and services to many critical industries, so our production facilities will continue to operate. The health and safety of our employees and their families remains our top priority. Therefore, we have implemented many Center of Disease Control protocols to keep them safe while the Company continues to produce products and provide service to our customers. While we are operating in a rapidly changing environment, we also continue to hear positive news from our raw material suppliers.

Note 10 Correction of Previously Issued Financial Statements

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and nine months ended January 31, 2020, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the implementation of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-Q) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss).

This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive loss related to unrealized gains on equity securities as of May 1, 2018 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three and nine months ended January 31, 2019.

No entries to correct for this restatement have any impact on our cash position, liquidity, or operations.

The tables below reflect the effect of restatement on the Company’s financial statements for the three and nine month periods ending January 31, 2019:

	For the Three Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(184,000	)	$	(184,000	)
Total Other Income (Expense)	$	641,000	$	(184,000	)	$	457,000
Income Before Provisions for Income Taxes		1,473,000		(184,000	)		1,289,000
Deferred tax expense (benefit)		9,000		(53,000	)		(44,000	)
Total Income Tax Expense		300,000		(53,000	)		247,000
Net Income	$	1,173,000	$	(131,000	)	$	1,042,000
Earnings Per Share of Common Stock	$	0.24	$	(0.03	)	$	0.21
Basic	$	0.24	$	(0.03	)	$	0.21
Diluted

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(949,000	)	$	(949,000	)
Total Other Income (Expense)	$	900,000	$	(949,000	)	$	(49,000	)
Income Before Provisions for Income Taxes		3,391,000		(949,000	)		2,442,000
Deferred tax expense (benefit)		33,000		(274,000	)		(241,000	)
Total Income Tax Expense		832,000		(274,000	)		558,000
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Earnings Per Share of Common Stock	$	0.52	$	(0.14	)	$	0.38
Basic	$	0.51	$	(0.13	)	$	0.38
Diluted

	For the Three Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	1,173,000		$	(131,000	)	$	1,042,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		43,000			13,000			56,000
Less: reclassification adjustment for (gains) losses included in net income		(171,000	)		171,000			—
Income tax expense related to other comprehensive income		37,000			(53,000	)		(16,000	)
Other Comprehensive Income (Loss)	$	(91,000	)	$	131,000		$	40,000
Comprehensive Income	$	1,082,000		$	—		$	1,082,000

	For the Nine Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	2,559,000		$	(675,000	)	$	1,884,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		(595,000	)		816,000			221,000
Less: reclassification adjustment for (gains) losses included in net income		(134,000	)		134,000			—
Income tax expense related to other comprehensive income		210,000			(274,000	)		(64,000	)
Other Comprehensive Income (Loss)	$	(519,000	)	$	676,000		$	157,000
Comprehensive Income	$	2,040,000		$	1,000		$	2,041,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, October 31, 2018	$	36,748,000		$	2,000		$	36,750,000
Purchase of common stock		(8,000	)		—			(8,000	)
Unrealized gain (loss), net of tax effect		(91,000	)		131,000			40,000
Net Income		1,173,000			(131,000	)		1,042,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018	$	37,730,000		$	—		$	37,730,000
Purchase of common stock		(62,000	)		—			(62,000	)
Dividend declared at $0.38 per common share outstanding		(1,886,000	)		1,000			(1,885,000	)
Impact of adoption of ASU 2016-01		—			—			—
Unrealized gain (loss), net of tax effect		(519,000	)		676,000			157,000
Net Income		2,559,000			(675,000	)		1,884,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—		949,000			949,000
Deferred income taxes		33,000		(274,000	)		(241,000	)
Net cash provided by (used in) operating activities	$	2,275,000	$	—		$	2,275,000

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations (Restated)

MANAGEMENT DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (RESTATED)

This Quarterly Report on Form 10-Q, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which are subject to the “safe harbor” created by those sections. Any statements herein that are not statements of historical fact may be deemed to 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 undertake no obligation to update publicly any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

The following discussion should be read in conjunction with the attached unaudited condensed financial statements, and with the Company’s audited financial statements and discussion for the fiscal year ended April 30, 2019.

Executive Summary

The Company’s performance has stayed steady through the three quarters, with a slight increase in sales, managing cost of sales numbers, and strong investment returns. This is due to the continuation of our quality USA made products with the ability for customization, our notable customer service, and the purchase of the assets of Labor Saving Devices, Inc. Opportunities include gaining business from a competitor that is getting out of the security switch business and to continue looking at businesses that might be a good fit to purchase. New challenges the Company has endured over the nine months of this fiscal year include continuing to get product out to customers in a timelier manner and to fill the stockroom with inventory to get back to shipping out core products the same day. Also, the price of raw materials has increased with the execution of tariffs by the US government and other factors. The COVID-19 virus is also a concern for management as availability to get raw materials may be hampered by the pandemic. But management continues to work at keeping operations flowing as efficient as possible with the hopes of getting the facilities running leaner and more profitable than ever before.

Results of Operations

● Net sales were $3,589,000 for the quarter ended January 31, 2020, which is a 3.88% increase from the corresponding quarter last year. Year-to-date net sales were $10,852,000 at January 31, 2020, which is a 2.85% increase from the same period last year. The steady growth in sales is due to our ongoing commitment to outstanding customer service and our ability to customize products. The Company is also seeing growth since a major competitor closed its doors at the end of 2019.

● Cost of goods sold was 51.04% of net sales for the quarter ended January 31, 2020 and was 51.29% for the same quarter last year. Year-to-date cost of goods sold percentages were 50.33% for the current nine months and 51.81% for the corresponding nine months last year, which is just slightly over the target of less than 50% for both the quarter and year-to-date results. Management has seen increases in labor and materials costs and initiated a price increase that started in January 2020.

● Operating expenses increased by $72,000 for the quarter as they increased by $107,000 for the nine-months ended January 31, 2020 as compared to the corresponding periods last year. These increased costs are primarily due to increased commissions and wages for raises and the hiring of more employees.

● Income from operations for the quarter ended January 31, 2020 was at $834,000 which is a .24% increase from the corresponding quarter last year, which had income from operations of $832,000. Income from operations for the nine months ended January 31, 2020 was at $2,690,000, which is a 7.99% increase from the corresponding nine months last year, which had income from operations of $2,491,000.

● Other income and expenses are up $557,000 when comparing to the current quarter to the same quarter last year. Comparatively, there is an increase of $1,757,000 in other income and expenses for the year-to-date numbers. Investments in marketable securities are presented at fair value and an unrealized gain or loss is recorded within the statements of operations, a non-cash entry, at each period beginning May 1, 2018 and previously recorded unrealized gain or loss in other comprehensive income (loss). For the nine months ended January 31, 2020 an unrealized gain was recorded, a non-cash entry, on marketable securities of $782,000. For the nine months ended January 31, 2019 an unrealized loss of $949,000 was recorded. The remainder of the increase is primarily due to increased dividend and interest income and taking gains on the sale of investments.

● Overall, net income for the quarter ended January 31, 2020 was up $322,000, or 30.90%, from the same quarter last year. Similarly, net income for the nine-month period ended January 31, 2020 was up $1,412,000, or 74.95%, from the same period in the prior year.

● Earnings per common share for quarter and nine months ended January 31, 2020 were $0.28 per share and $0.67 per share, respectively. EPS for the quarter and nine months ended January 31, 2019 were $0.21 per share and $0.38 per share, respectively.

Liquidity and capital resources

Operating

● Net cash increased $774,000 during the nine months ended January 31, 2020 as compared to an increase of $295,000 during the corresponding period last year.

● Accounts receivable decreased $460,000 for the nine months ended January 31, 2020 compared with a $514,000 decrease for the same period last year. The current year decrease is a result of improved sales and collections of accounts receivable improved over last year. An analysis of accounts receivable shows that there were only 0.30% that were over 90 days at January 31, 2020.

● Inventories increased $506,000 during the current nine-month period as compared to an increase of $999,000 last year. The smaller increase in the current year is primarily due to increased sales, not having a stockpile of finished goods, and some issues with getting some vital raw materials in a timely manner.

● Prepaid expenses saw a $43,000 decrease for the current nine months, primarily due to inventory being delivered that had been paid for in advance. The prior nine months showed a $164,000 decrease in prepaid expenses.

● Income tax overpayment for the nine months ended January 31, 2020 decreased $142,000, as the overpayment showed an increase of $106,000 for the same period the prior year. The main reason for the current decrease is that the Company has generated additional income without the need to increase income tax estimates.

● Accounts payable shows a $16,000 increase for the current nine-month period ended January 31, 2020 as compared to a $35,000 decrease for the prior nine-month period. The company strives to pay all invoices within terms, and the variance in increases is primarily due to the timing of receipt of products and payment of invoices.

● Accrued expenses did not have any cash flow change for the current nine-month period as compared to a $36,000 decrease for the nine-month period ended January 31, 2019.

Investing

● As for our investment activities, the Company spent approximately $468,000 on acquisitions of property and equipment for the current nine-month period, in comparison with the corresponding nine months last year, where there was activity of $88,000.

● Additionally, the Company continues to purchase marketable securities, which include municipal bonds and quality stocks. During the nine-month period ended January 31, 2020 there was quite a bit of buy/sell activity in the investment accounts. Net cash spent on purchases of marketable securities for the nine-month period ended January 31, 2020 was $640,000 compared to $839,000 spent in the prior nine-month period. The Company continues to use “money manager” accounts for most stock transactions. By doing this, the Company gives an independent third-party firm, who are experts in this field, permission to buy and sell stocks at will. The Company pays a quarterly service fee based on the value of the investments.

Financing

● The Company continues to purchase back common stock when the opportunity arises. For the nine-month period ended January 31, 2020, the Company purchased $71,000 worth of treasury stock. This is in comparison to $62,000 spent in the same nine months period the prior year.

● The company paid out dividends of $1,802,000 during the nine months ending January 31, 2020. These dividends were paid during the second quarter. The company declared a dividend of $0.40 per share of common stock on September 30, 2019 and these dividends were paid by October 31, 2019. As for the prior year numbers, dividends paid was $1,752,000 for the nine months ending January 31, 2019. A dividend of $0.38 per common share was declared and paid during the second fiscal quarter last year.

The following is a list of ratios to help analyze George Risk Industries’ performance:

	As of
	January 31, 2020		January 31, 2019
Working capital (current assets – current liabilities)	$	39,119,000	$	35,493,000
Current ratio (current assets / current liabilities)		16.831		16.299
Quick ratio ((cash + investments + AR) / current liabilities)		14.597		13.963

New Product Development

The Company and its engineering department continue to develop enhancements to product lines, develop new products which complement existing products, and look for products that are well suited to our distribution network and manufacturing capabilities. Items currently in the development process include:

● A new face plate for our pool alarms is nearing completion. The innovative design is slim in style and will also allow the homeowner to change the plate to match their décor.

● An updated version of the pool access alarm is currently going through electrical listing testing. This next-generation model combines our battery operated DPA series with our hard wired 289 series. A variety of installation options will be available through jumper pin settings.

● We continue our work on high security switches. We have a triple biased high security switch design and an adjustable magnet design was completed for recessed mounting applications. This is ready to be sent to in for electrical listing testing.

● We have introduced the GR1840 Oval Metal Door Channel Magnet. This is a direct replacement for the obsolete Interlogix magnet. This magnet fits into the top channel of a metal door and does not require drilling into the door core. We have also paired this with several of our ¾” and 1” steel door contacts.

● Wireless technology is a main area of focus for product development. We are considering adding wireless technology to some of our current products. A wireless contact switch is in the final stages of development. Also, we are working on wireless versions of our pool access alarm and environmental sensors that will be easy to install in current construction. We are also concentrating on making products compatible with Wi-Fi, smartphone technology and the increasing popular Z-Wave standard for wireless home automation.

● We are ready to launch a new Labor Saving Device’s product. It is a 12” adjustable hole cutter which compliments the popular 10” hole cutter. Using a standard drill, this tool allows you to drill various size holes in the ceiling for speakers and canned lights. The dust bin, which buts against the ceiling, keeps the ceiling material and dust enclosed making for a clean, time saving installation.

● Another LSDI product is new lighted Bullnose tip in a variety of colors (red, green and blue) to go along with the standard clear lights. These colored lights are placed on FiberFuse wire running rods which allows for easy location of the rod ends in dark places such as attics and crawlspaces. The rods can be color coded for wire paths running into different rooms. Larger batteries add to the longevity of these new lights.

Other Information

In addition to researching and developing new products, management is always open to the possibility of acquiring a business or product line that would complement our existing operations. Due to the Company’s strong cash position, management believes this could be achieved without the need for outside financing. The intent is to utilize the equipment, marketing techniques and established customers to deliver new products and increase sales and profits.

There are no known seasonal trends with any of GRI’s products, since we sell to distributors and OEM manufacturers. Our products are tied to the housing industry and will fluctuate with building trends.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning November 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”). ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company adopted the ASUs in the first quarter of 2019 and the Company’s accounting systems will be upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 will not have a material impact on the Company’s financial statements and related disclosures.

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income (loss) are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income (loss) to retained earnings (accumulated deficit) for stranded income tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The amendments in this ASU also require certain disclosures about stranded income tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company has not yet adopted ASU 2018-02 and is currently evaluating the potential impact of adopting the applicable guidance on the Company’s financial statements and related disclosures.

In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in ASU 2018-09 do not require transition guidance and were effective upon issuance of ASU 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. We are currently evaluating the potential impact of adopting the applicable guidance; however we do not believe that the adoption of ASU 2018-09 will have a material impact on the Company’s financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

In June 2016, the FASB issued ASU 2016-13(“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company’s financial statements and disclosures.

In January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its condensed financial statements.

GEORGE RISK INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

Item 4. Controls and Procedures

Our management, under the supervision and with the participation of our chief executive officer (also working as our chief financial officer), evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of January 31, 2020. Based on that evaluation, our chief executive officer (also working as our chief financial officer) concluded that the disclosure controls and procedures employed at the Company were not effective to provide reasonable assurance that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

We continue to operate with a limited number of accounting and financial personnel. A new accounting professional was hired in 2018 to fill the Controller position. Continued training will be required to fulfill disclosure control and procedure responsibilities, including review procedures for key accounting schedules and timely and proper documentation of material transactions and agreements. Until sufficient training has taken place for this new Controller, we believe this control deficiency represents material weaknesses in internal control over financial reporting.

Despite the material weaknesses in financial reporting noted above, we believe that our condensed financial statements included in this report fairly present our financial position, results of operations and cash flows as of and for the periods presented in all material respects.

We are committed to the establishment of effective internal controls over financial reporting and will place emphasis on quarterly and year-end closing procedures, timely documentation and internal review of accounting and financial reporting consequences of material contracts and agreements, and enhanced review of all schedules and account analyses by experienced accounting department personnel or independent consultants.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting during the fiscal quarter ended January 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

GEORGE RISK INDUSTRIES, INC.

Part II. OTHER INFORMATION

Item 1. 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 2020.

Period		Number of shares repurchased
	November 1, 2019 – November 30, 2019		1,350
	December 1, 2019 – December 31, 2019		200
	January 1, 2020 – January 31, 2020		300

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 No.	Description
31.1	Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chief Executive Officer (Principal Financial and Accounting Officer), as required by Section 906 of the Sarbanes-Oxley Act of 2002.

.

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	May 22, 2020	By:	/s/ Stephanie M. Risk-McElroy
			Stephanie M. Risk-McElroy
			President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board

EX-31.1

Exhibit 31.1

CERTIFICATION OF STEPHANIE M. RISK-MCELROY, CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER, PURSUANT TO RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934SECTION 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/A 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) The registrant’s other certifying officer and I have disclosed, based on our 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: May 22, 2020

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

EX-32.1

Exhibit 32.1

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

I, Stephanie M. Risk-McElroy, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the quarterly report of George Risk Industries, Inc. on Form 10-Q/A dated January 31, 2020 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: May 22, 2020	By:	/s/ Stephanie M. Risk-McElroy
		Stephanie M. Risk-McElroy
		President and Chief Executive and Financial
		Officer

XML

Condensed Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended	9 Months Ended
	Jan. 31, 2020	Jan. 31, 2020	Jan. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,364,000	$ 3,296,000	$ 1,884,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	93,000	276,000	248,000
(Gain) loss on sale of investments		(178,000)	(142,000)
Impairments on investments	36,000	41,000	68,000
Unrealized (gain) loss on equity investments	(508,000)	(782,000)	949,000
Reserve for bad debts		(6,000)	(3,000)
Reserve for obsolete inventory		42,000	12,000
Deferred income taxes	125,000	191,000	(241,000)
(Gain) loss on sale of assets	(5,000)	(5,000)
Net book value of assets retired		(17,000)
(Increase) decrease in:
Accounts receivable		460,000	514,000
Inventories		(506,000)	(999,000)
Prepaid expenses		43,000	164,000
Other receivables		2,000	(2,000)
Income tax overpayment		142,000	(106,000)
Increase (decrease) in:
Accounts payable		16,000	(35,000)
Accrued expenses			(36,000)
Net cash provided by (used in) operating activities		3,015,000	2,275,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets		7,000
(Purchase) of property and equipment	(290,000)	(468,000)	(88,000)
Proceeds from sale of marketable securities		760,000	761,000
(Purchase) of marketable securities		(640,000)	(839,000)
(Purchase) of long-term investment		(27,000)
Net cash provided by (used in) investing activities		(368,000)	(166,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Purchase) of treasury stock		(71,000)	(62,000)
Dividends paid		(1,802,000)	(1,752,000)
Net cash provided by (used in) financing activities		(1,873,000)	(1,814,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		774,000	295,000
Cash and Cash Equivalents, beginning of period		4,873,000	4,294,000
Cash and Cash Equivalents, end of period	$ 5,647,000	5,647,000	4,589,000
Supplemental Disclosure for Cash Flow Information:
Income taxes		870,000	900,000
Interest paid			1,000
Cash receipts for:
Income taxes		$ 159,000

XML

Condensed Income Statements (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Income Statement [Abstract]
Net Sales	$ 3,589,000	$ 3,455,000	$ 10,852,000	$ 10,551,000
Less: Cost of Goods Sold	(1,832,000)	(1,772,000)	(5,462,000)	(5,467,000)
Gross Profit	1,757,000	1,683,000	5,390,000	5,084,000
Operating Expenses
General and Administrative	302,000	294,000	928,000	911,000
Sales	587,000	531,000	1,698,000	1,611,000
Engineering	34,000	21,000	66,000	57,000
Rent Paid to Related Parties		5,000	8,000	14,000
Total Operating Expenses	923,000	851,000	2,700,000	2,593,000
Income From Operations	834,000	832,000	2,690,000	2,491,000
Other Income
Other		1,000	2,000	10,000
Dividend and Interest Income	423,000	471,000	782,000	816,000
Unrealized Gain (Loss) on equity securities	508,000	(184,000)	782,000	(949,000)
Gain on Investments	78,000	169,000	137,000	74,000
Gain on Sale of Assets	5,000		5,000
Total other income	1,014,000	457,000	1,708,000	(49,000)
Income Before Provisions for Income Taxes	1,848,000	1,289,000	4,398,000	2,442,000
Provisions for Income Taxes:
Current Expense	359,000	291,000	911,000	799,000
Deferred Tax Expense (Benefit)	125,000	(44,000)	191,000	(241,000)
Total Income Tax Expense	484,000	247,000	1,102,000	558,000
Net Income	$ 1,364,000	$ 1,042,000	$ 3,296,000	$ 1,884,000
Income Per Share of Common Stock
Basic	$ 0.28	$ 0.21	$ 0.67	$ 0.38
Diluted	$ 0.27	$ 0.21	$ 0.66	$ 0.38
Weighted Average Number of Common
Shares Outstanding Basic	4,950,524	4,961,018	4,953,008	4,963,592
Diluted	4,971,024	4,981,518	4,973,508	4,984,092

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Related Party Transactions (Details Narrative)	9 Months Ended
	Jan. 31, 2020 USD ($)
Bonita Risk [Member]
Purchase of building	$ 200,000

XML

Business Segments - Schedule of Financial Information Relating to Industry Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Apr. 30, 2019
Total net revenue	$ 3,589,000	$ 3,455,000	$ 10,852,000	$ 10,551,000
Total income from operations	834,000	832,000	2,690,000	2,491,000
Total depreciation and amortization	93,000	81,000	276,000	248,000
Total capital expenditures	290,000	88,000	468,000	88,000
Total assets	44,746,000		44,746,000		$ 43,027,000
Security Alarm Products [Member]
Total net revenue	2,909,000	2,735,000	8,700,000	8,103,000
Total income from operations	669,000	659,000	2,156,000	1,972,000
Total depreciation and amortization	(22,000)	37,000	72,000	57,000
Total capital expenditures		35,000	178,000	35,000
Total assets	6,478,000		6,478,000		6,179,000
Cable & Wiring Tools [Member]
Total net revenue	547,000	576,000	1,680,000	1,929,000
Total income from operations	129,000	138,000	417,000	415,000
Total depreciation and amortization	31,000	30,000	92,000	92,000
Total capital expenditures
Total assets	2,676,000		2,676,000		2,713,000
Other Products [Member]
Total net revenue	133,000	144,000	472,000	519,000
Total income from operations	36,000	35,000	117,000	104,000
Total depreciation and amortization	34,000		50,000	55,000
Total capital expenditures	18,000	37,000	18,000	37,000
Total assets	733,000		733,000		842,000
Corporate General [Member]
Total depreciation and amortization	50,000	14,000	62,000	44,000
Total capital expenditures	272,000	$ 16,000	272,000	$ 16,000
Total assets	$ 34,859,000		$ 34,859,000		$ 33,293,000

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Earnings Per Share

9 Months Ended

Jan. 31, 2020

Income Per Share of Common Stock

Earnings Per Share

Note 5: Earnings per Share (Restated)

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

	For the three months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	1,364,000
Basic EPS	$	1,364,000		4,950,524	$	0.28
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	1,364,000		4,971,024	$	0.27

	For the nine months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	3,296,000
Basic EPS	$	3,296,000		4,953,008	$	0.67
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	3,296,000		4,973,508	$	0.66

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38
Income per shares - Diluted	$	0.51	$	(0.13	)	$	0.38

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Subsequent Events

9 Months Ended

Jan. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 9: Subsequent Events

During and subsequent to the third quarter of the current fiscal year, the world has been impacted by the spread of the coronavirus (COVID-19). It has created significant economic uncertainty and volatility. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on our clients and client demand for our services and solutions; our ability to sell and provide our services and solutions, including as a result of travel restrictions and people working from home; the ability of our clients to pay for our services and solutions; and any closures of our and our clients’ offices and facilities. Any of these events could materially adversely affect our business, financial condition, results of operations and/or stock price.

The Company manufactures and supplies “essential” products and services to many critical industries, so our production facilities will continue to operate. The health and safety of our employees and their families remains our top priority. Therefore, we have implemented many Center of Disease Control protocols to keep them safe while the Company continues to produce products and provide service to our customers. While we are operating in a rapidly changing environment, we also continue to hear positive news from our raw material suppliers.

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Business Segments (Tables)

9 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Schedule of Financial Information Relating to Industry Segments

The following is financial information relating to industry segments:

	Three months			Nine months		Three months		Nine months
	ended			ended		Ended		ended
	Jan 31, 2020			Jan 31, 2020		Jan 31, 2019		Jan 31, 2019
Net revenue:
Security alarm products	$	2,909,000		$	8,700,000	$	2,735,000	$	8,103,000
Cable & wiring tools		547,000			1,680,000		576,000		1,929,000
Other products		133,000			472,000		144,000		519,000
Total net revenue	$	3,589,000		$	10,852,000	$	3,455,000	$	10,551,000
Income from operations:
Security alarm products	$	669,000		$	2,156,000	$	659,000	$	1,972,000
Cable & wiring tools		129,000			417,000		138,000		415,000
Other products		36,000			117,000		35,000		104,000
Total income from operations	$	834,000		$	2,690,000	$	832,000	$	2,491,000
Depreciation and amortization:
Security alarm products	$	(22,000	)	$	72,000	$	37,000	$	57,000
Cable & wiring tools		31,000			92,000		30,000		92,000
Other products		34,000			50,000		—		55,000
Corporate general		50,000			62,000		14,000		44,000
Total depreciation and amortization	$	93,000		$	276,000	$	81,000	$	248,000
Capital expenditures:
Security alarm products	$	—		$	178,000	$	35,000	$	35,000
Cable & wiring tools		—			—		—		—
Other products		18,000			18,000		37,000		37,000
Corporate general		272,000			272,000		16,000		16,000
Total capital expenditures	$	290,000		$	468,000	$	88,000	$	88,000

		January 31, 2020		April 30, 2019
Identifiable assets:
Security alarm products	$	6,478,000	$	6,179,000
Cable & wiring tools		2,676,000		2,713,000
Other products		733,000		842,000
Corporate general		34,859,000		33,293,000
Total assets	$	44,746,000	$	43,027,000

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Unaudited Interim Financial Statements (Details Narrative)	9 Months Ended
	Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Discount percentage, description	The Company's customers generally pay within 60 days from the receipt of a valid invoice. The Company offers discounts of up to 2% to certain customers for payments made within a specified number of days.

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Inventories - Schedule of Inventories (Details) - USD ($)	Jan. 31, 2020	Apr. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 4,102,000	$ 3,644,000
Work in process	468,000	389,000
Finished goods	609,000	641,000
Inventory gross	5,179,000	4,674,000
Less: allowance for obsolete inventory	(133,000)	(91,000)
Totals	$ 5,046,000	$ 4,583,000

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Investments - Schedule of Unrealized Loss Breakdown by Investment (Details) - USD ($)	Jan. 31, 2020	Apr. 30, 2019
Less than 12 months Fair Value	$ 445,000	$ 1,704,000
Less than 12 months Unrealized Loss	(48,000)	(106,000)
12 months or greater Fair Value	2,388,000	2,264,000
12 months or greater Unrealized Loss	(245,000)	(251,000)
Total Fair Value	2,833,000	3,968,000
Total Unrealized Loss	(293,000)	(357,000)
Municipal Bonds [Member]
Less than 12 months Fair Value		772,000
Less than 12 months Unrealized Loss		(4,000)
12 months or greater Fair Value	401,000	580,000
12 months or greater Unrealized Loss	(43,000)	(50,000)
Total Fair Value	401,000	1,352,000
Total Unrealized Loss	(43,000)	(54,000)
REITs [Member]
Less than 12 months Fair Value
Less than 12 months Unrealized Loss
12 months or greater Fair Value	57,000	32,000
12 months or greater Unrealized Loss	(9,000)	(6,000)
Total Fair Value	57,000	32,000
Total Unrealized Loss	(9,000)	(6,000)
Equity Securities [Member]
Less than 12 months Fair Value	445,000	932,000
Less than 12 months Unrealized Loss	(48,000)	(102,000)
12 months or greater Fair Value	1,930,000	1,652,000
12 months or greater Unrealized Loss	(193,000)	(195,000)
Total Fair Value	2,375,000	2,584,000
Total Unrealized Loss	$ (241,000)	$ (297,000)

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Inventories (Tables)

9 Months Ended

Jan. 31, 2020

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories at January 31, 2020 and April 30, 2019 consisted of the following:

	January 31,			April 30,
	2020			2019
Raw materials	$	4,102,000		$	3,644,000
Work in process		468,000			389,000
Finished goods		609,000			641,000
		5,179,000			4,674,000
Less: allowance for obsolete inventory		(133,000	)		(91,000	)
Totals	$	5,046,000		$	4,583,000

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Correction of Previously Issued Financial Statements (Tables)

9 Months Ended

Jan. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Effect of Restatement on Financial Statements

The tables below reflect the effect of restatement on the Company’s financial statements for the three and nine month periods ending January 31, 2019:

	For the Three Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(184,000	)	$	(184,000	)
Total Other Income (Expense)	$	641,000	$	(184,000	)	$	457,000
Income Before Provisions for Income Taxes		1,473,000		(184,000	)		1,289,000
Deferred tax expense (benefit)		9,000		(53,000	)		(44,000	)
Total Income Tax Expense		300,000		(53,000	)		247,000
Net Income	$	1,173,000	$	(131,000	)	$	1,042,000
Earnings Per Share of Common Stock	$	0.24	$	(0.03	)	$	0.21
Basic	$	0.24	$	(0.03	)	$	0.21
Diluted

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(949,000	)	$	(949,000	)
Total Other Income (Expense)	$	900,000	$	(949,000	)	$	(49,000	)
Income Before Provisions for Income Taxes		3,391,000		(949,000	)		2,442,000
Deferred tax expense (benefit)		33,000		(274,000	)		(241,000	)
Total Income Tax Expense		832,000		(274,000	)		558,000
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Earnings Per Share of Common Stock	$	0.52	$	(0.14	)	$	0.38
Basic	$	0.51	$	(0.13	)	$	0.38
Diluted

	For the Three Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	1,173,000		$	(131,000	)	$	1,042,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		43,000			13,000			56,000
Less: reclassification adjustment for (gains) losses included in net income		(171,000	)		171,000			—
Income tax expense related to other comprehensive income		37,000			(53,000	)		(16,000	)
Other Comprehensive Income (Loss)	$	(91,000	)	$	131,000		$	40,000
Comprehensive Income	$	1,082,000		$	—		$	1,082,000

	For the Nine Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	2,559,000		$	(675,000	)	$	1,884,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		(595,000	)		816,000			221,000
Less: reclassification adjustment for (gains) losses included in net income		(134,000	)		134,000			—
Income tax expense related to other comprehensive income		210,000			(274,000	)		(64,000	)
Other Comprehensive Income (Loss)	$	(519,000	)	$	676,000		$	157,000
Comprehensive Income	$	2,040,000		$	1,000		$	2,041,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, October 31, 2018	$	36,748,000		$	2,000		$	36,750,000
Purchase of common stock		(8,000	)		—			(8,000	)
Unrealized gain (loss), net of tax effect		(91,000	)		131,000			40,000
Net Income		1,173,000			(131,000	)		1,042,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018	$	37,730,000		$	—		$	37,730,000
Purchase of common stock		(62,000	)		—			(62,000	)
Dividend declared at $0.38 per common share outstanding		(1,886,000	)		1,000			(1,885,000	)
Impact of adoption of ASU 2016-01		—			—			—
Unrealized gain (loss), net of tax effect		(519,000	)		676,000			157,000
Net Income		2,559,000			(675,000	)		1,884,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—		949,000			949,000
Deferred income taxes		33,000		(274,000	)		(241,000	)
Net cash provided by (used in) operating activities	$	2,275,000	$	—		$	2,275,000

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38

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Condensed Statement of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Comprehensive Income [Abstract]
Net Income	$ 1,364,000	$ 1,042,000	$ 3,296,000	$ 1,884,000
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during period	27,000	56,000	77,000	221,000
Income tax benefit (expense) related to other comprehensive income	(8,000)	(16,000)	(22,000)	(64,000)
Other Comprehensive Income (Loss)	19,000	40,000	55,000	157,000
Comprehensive Income (Loss)	$ 1,383,000	$ 1,082,000	$ 3,351,000	$ 2,041,000

XML

Document and Entity Information - shares	9 Months Ended
	Jan. 31, 2020	Mar. 20, 2020
Document And Entity Information
Entity Registrant Name	GEORGE RISK INDUSTRIES, INC.
Entity Central Index Key	0000084112
Document Type	10-Q/A
Document Period End Date	Jan. 31, 2020
Amendment Flag	true
Amendment Description	This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and nine months periods ended January 31, 2020 that we originally filed with the Securities and Exchange Commission, or the Commission, on March 23, 2020, or the Original Filing, in connection with our failure to give effect to the implementation of FASB ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") in the prior year financial statements included in the Original Filing. All amendments and restatements to the financial statements are non-cash in nature. Restatement As further discussed in Note 10 to our unaudited financial statements in Part I, Item 1, "Financial Statements" of this Amendment, on April 1, 2020, we concluded that certain disclosures necessary to fairly explain the changes in the financial statements presented were excluded in our previous filings and that we would we would restate our previously issued financial statements for the three-and nine months periods ended January 31, 2019, as set forth in the Original Filing in connection with our failure to give effect to the implementation of ASU 2016-01 in the prior year financial statements included in the Original Quarterly Report on Form 10-Q. Amendment The purpose of this Amendment is to restate our previously issued unaudited financial statements and related disclosures for the three-and nine months periods ended January 31, 2019 in connection with the application of ASU 2016-01. This Amendment also includes (a) an amended Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" to reflect the correction of the error described above. Except as expressly set forth herein, including in the notes to the unaudited financial statements, this Amendment, along with Amendment #1 ("Amendments") does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the Commission. Information not affected by the restatement is unchanged and reflects disclosures made at the time of the filing of the Original Form 10-Q. See Note 10 to the financial statements included in Item 1 for additional information and a reconciliation of the previously reported amounts to the restated amounts. Items Amended in this Filing For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Filing to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment in connection with the application of ASU 2016-01 in this Amendment that was not previously applied: Part I, Item 1. Financial Statements Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4. Controls and Procedures In accordance with applicable Commission rules, this Amendment includes new certifications required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, from our Chief Executive Officer and Chief Financial Officer dated as of the date of filing of this Amendment.
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,950,260
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

XML

Unaudited Interim Financial Statements

9 Months Ended

Jan. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Unaudited Interim Financial Statements

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, 2019 annual report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year.

Accounting Estimates—The preparation of these financial statements requires the use of estimates and assumptions including the carrying value of assets. The estimates and assumptions result in approximate rather than exact amounts.

Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight-line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 is effective for the Company beginning May 1, 2019. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-10 “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” (“ASU 2018-11”) and ASU 2018-20, “Narrow-Scope Improvements for Lessors”. ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. During the first quarter of 2019, the FASB issued ASU 2019-01, Leases (Topic 842) to amend ASU 2016-02. This amendment exempts both lessees and lessors from having to provide certain prior year interim disclosure information in the fiscal year in which a company adopts the new leases standard. The Company has adopted the ASUs in the first quarter of fiscal year 2020 and the Company’s accounting systems have been upgraded to comply with the requirements of the new standard, however, the adoption of ASU 2016-02 did not have a material impact on the Company’s financial statements and related disclosures because leases are not material to the financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

In August 2018, The FASB issued ASU 2018-14 to improve the effectiveness of disclosures for defined benefit plans under ASC 715-20. The ASU applies to employers that sponsor defined benefit pension or other postretirement plans. The FASB issued ASU 2018-14 as part of its disclosure framework project, which has an objective and primary focus to improve the effectiveness of disclosures in the notes to financial statements. As part of the project, during August 2018, the Board also issued a Concepts Statement, which the FASB used as a basis for amending the disclosure requirements for Subtopic 715-20. The guidance is effective or fiscal years ending after December 15, 2020 and early adoption is permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

In June 2016, the FASB issued ASU 2016-13 (“ASU 2016-13”), Financial Instruments—Credit Losses. Subsequently, the FASB issued ASU 2019-05, Financial Instruments- Credit Losses (Topic 326): Targeted Transition Relief and codification improvements to Topic 326 in ASU 2019-11, ASU 2019-04 and ASU 2018-19. The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The ASU is effective for fiscal years beginning after December 15, 2020. Subsequent to September 30, 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation is not needed until May 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company’s financial statements and disclosures.

In January 2020, the FASB issued ASU 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its condensed financial statements.

Revenue Recognition—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” or “ASC 606”. ASC 606 and all subsequently issued clarifying ASCs replaced most existing revenue recognition guidance in U.S. GAAP. ASC 606 also required expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the new standard effective November 1, 2019. The effect of this adoption was immaterial to our Financial Statements, and the Company does not expect a material effect to the Financial Statements on an ongoing basis.

The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company applies the following standards and recognizes revenue when (1) it has a firm contract and the parties are committed to perform their respective obligations, (2) the product has been shipped to and accepted by the customer or the service has been provided, (3) the sales price is fixed or determinable and (4) amounts are reasonably assured of collection, including the consideration of the customer’s ability and intention to pay when the amount is due. The Company primarily receives fixed consideration for sales of product. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. Shipping and handling amounts paid by customers are included in revenue. Sales tax and other similar taxes are excluded from revenue.

Revenue is recorded net of provisions for discounts, which are typically agreed to upfront with the customer and do not represent variable consideration. The Company estimates these discounts in the same period that the revenue is recognized for products sales to customers. The amount of revenue recognized represents the amount that will not be subject to a significant future reversal of revenue. All sales to distributors and customers are generally final. In limited instances the Company may accept returned product due to quality. During the current fiscal year, returns have not been material.

The Company’s customers generally pay within 60 days from the receipt of a valid invoice. The Company offers discounts of up to 2% to certain customers for payments made within a specified number of days. These early pay discounts are estimated in the period of sale based on experience with sales to eligible customers. Early pay discounts are recorded as a deduction to the accounts receivable balance presented on the balance sheet.

The Company’s performance obligations are satisfied at the point in time when products are shipped to the customer, which is when the customer has title and the significant risks and rewards of ownership.

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Correction of Previously Issued Financial Statements - Schedule of Effect of Restatement on Financial Statements (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Unrealized Gain (Loss) on Equity Securities	$ 508,000	$ (184,000)	$ 782,000	$ (949,000)
Total Other Income (Expense)	1,014,000	457,000	1,708,000	(49,000)
Income Before Provisions for Income Taxes	1,848,000	1,289,000	4,398,000	2,442,000
Deferred tax expense (benefit)	125,000	(44,000)	191,000	(241,000)
Total Income Tax Expense	484,000	247,000	1,102,000	558,000
Net Income	$ 1,364,000	$ 1,042,000	$ 3,296,000	$ 1,884,000
Basic	$ 0.28	$ 0.21	$ 0.67	$ 0.38
Diluted	$ 0.27	$ 0.21	$ 0.66	$ 0.38
Unrealized gain (loss) on securities Unrealized holding gains arising during period	$ 27,000	$ 56,000	$ 77,000	$ 221,000
Less: reclassification adjustment for (gains) losses included in net income
Income tax expense related to other comprehensive income	(8,000)	(16,000)	(22,000)	(64,000)
Other Comprehensive Income (Loss)	19,000	40,000	55,000	157,000
Comprehensive Income	1,383,000	1,082,000	3,351,000	2,041,000
Beginning balance	39,486,000	36,750,000	39,553,000	37,730,000
Purchase of common stock		(8,000)	(71,000)	(62,000)
Dividend declared at $0.38 per common share outstanding				(1,885,000)
Unrealized gain (loss), net of tax effect	19,000	40,000	55,000	157,000
Ending balance	$ 40,852,000	$ 37,824,000	40,852,000	37,824,000
Net cash provided by (used in) operating activities			$ 3,015,000	$ 2,275,000
Weighted average common shares outstanding, basic	4,950,524	4,961,018	4,953,008	4,963,592
Convertible Preferred Stock	20,500	20,500	20,500	20,500
Weighted average common shares outstanding, diluted	4,971,024	4,981,518	4,973,508	4,984,092
Original [Member]
Unrealized Gain (Loss) on Equity Securities
Total Other Income (Expense)		641,000		900,000
Income Before Provisions for Income Taxes		1,473,000		3,391,000
Deferred tax expense (benefit)		9,000		33,000
Total Income Tax Expense		300,000		832,000
Net Income		$ 1,173,000		$ 2,559,000
Basic		$ 0.24		$ 0.52
Diluted		$ 0.24		$ 0.51
Unrealized gain (loss) on securities Unrealized holding gains arising during period		$ 43,000		$ (595,000)
Less: reclassification adjustment for (gains) losses included in net income		(171,000)		(134,000)
Income tax expense related to other comprehensive income		37,000		210,000
Other Comprehensive Income (Loss)		(91,000)		(519,000)
Comprehensive Income		1,082,000		2,040,000
Beginning balance		36,748,000		37,730,000
Purchase of common stock		(8,000)		(62,000)
Dividend declared at $0.38 per common share outstanding				(1,886,000)
Impact of adoption of ASU 2016-01
Unrealized gain (loss), net of tax effect		(91,000)		(519,000)
Ending balance		$ 37,822,000		37,822,000
Net cash provided by (used in) operating activities				$ 2,275,000
Weighted average common shares outstanding, basic		4,961,018		4,963,592
Convertible Preferred Stock		20,500		20,500
Weighted average common shares outstanding, diluted		4,981,518		4,984,092
Adjustment [Member]
Unrealized Gain (Loss) on Equity Securities		$ (184,000)		$ (949,000)
Total Other Income (Expense)		(184,000)		(949,000)
Income Before Provisions for Income Taxes		(184,000)		(949,000)
Deferred tax expense (benefit)		(53,000)		(274,000)
Total Income Tax Expense		(53,000)		(274,000)
Net Income		$ (131,000)		$ (675,000)
Basic		$ (0.03)		$ (0.14)
Diluted		$ (0.03)		$ (0.13)
Unrealized gain (loss) on securities Unrealized holding gains arising during period		$ 13,000		$ 816,000
Less: reclassification adjustment for (gains) losses included in net income		171,000		134,000
Income tax expense related to other comprehensive income		(53,000)		(274,000)
Other Comprehensive Income (Loss)		131,000		676,000
Comprehensive Income				1,000
Beginning balance		2,000
Purchase of common stock
Dividend declared at $0.38 per common share outstanding				1,000
Impact of adoption of ASU 2016-01
Unrealized gain (loss), net of tax effect		131,000		676,000
Ending balance		$ 2,000		2,000
Net cash provided by (used in) operating activities
Weighted average common shares outstanding, basic
Convertible Preferred Stock
Weighted average common shares outstanding, diluted

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Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Net income	$ 1,364,000	$ 1,042,000	$ 3,296,000	$ 1,884,000
Basic EPS, Income	$ 1,364,000		$ 3,296,000
Basic EPS, Shares	4,950,524	4,961,018	4,953,008	4,963,592
Basic EPS, Per-share	$ 0.28	$ 0.21	$ 0.67	$ 0.38
Effect of dilutive securities: Convertible Preferred Stock, Income
Effect of dilutive securities: Convertible Preferred Stock, Shares	20,500	20,500	20,500	20,500
Effect of dilutive securities: Convertible Preferred Stock, Per-share
Diluted EPS, Income	$ 1,364,000		$ 3,296,000
Diluted EPS, Shares	4,971,024	4,981,518	4,973,508	4,984,092
Diluted EPS, Per-share	$ 0.27	$ 0.21	$ 0.66	$ 0.38
Original [Member]
Net income		$ 1,173,000		$ 2,559,000
Basic EPS, Shares		4,961,018		4,963,592
Basic EPS, Per-share		$ 0.24		$ 0.52
Effect of dilutive securities: Convertible Preferred Stock, Shares		20,500		20,500
Diluted EPS, Shares		4,981,518		4,984,092
Diluted EPS, Per-share		$ 0.24		$ 0.51
Adjustment [Member]
Net income		$ (131,000)		$ (675,000)
Basic EPS, Shares
Basic EPS, Per-share		$ (0.03)		$ (0.14)
Effect of dilutive securities: Convertible Preferred Stock, Shares
Diluted EPS, Shares
Diluted EPS, Per-share		$ (0.03)		$ (0.13)

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Business Segments

9 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Business Segments

Note 4: Business Segments

The following is financial information relating to industry segments:

	Three months			Nine months		Three months		Nine months
	ended			ended		Ended		ended
	Jan 31, 2020			Jan 31, 2020		Jan 31, 2019		Jan 31, 2019
Net revenue:
Security alarm products	$	2,909,000		$	8,700,000	$	2,735,000	$	8,103,000
Cable & wiring tools		547,000			1,680,000		576,000		1,929,000
Other products		133,000			472,000		144,000		519,000
Total net revenue	$	3,589,000		$	10,852,000	$	3,455,000	$	10,551,000
Income from operations:
Security alarm products	$	669,000		$	2,156,000	$	659,000	$	1,972,000
Cable & wiring tools		129,000			417,000		138,000		415,000
Other products		36,000			117,000		35,000		104,000
Total income from operations	$	834,000		$	2,690,000	$	832,000	$	2,491,000
Depreciation and amortization:
Security alarm products	$	(22,000	)	$	72,000	$	37,000	$	57,000
Cable & wiring tools		31,000			92,000		30,000		92,000
Other products		34,000			50,000		—		55,000
Corporate general		50,000			62,000		14,000		44,000
Total depreciation and amortization	$	93,000		$	276,000	$	81,000	$	248,000
Capital expenditures:
Security alarm products	$	—		$	178,000	$	35,000	$	35,000
Cable & wiring tools		—			—		—		—
Other products		18,000			18,000		37,000		37,000
Corporate general		272,000			272,000		16,000		16,000
Total capital expenditures	$	290,000		$	468,000	$	88,000	$	88,000

		January 31, 2020		April 30, 2019
Identifiable assets:
Security alarm products	$	6,478,000	$	6,179,000
Cable & wiring tools		2,676,000		2,713,000
Other products		733,000		842,000
Corporate general		34,859,000		33,293,000
Total assets	$	44,746,000	$	43,027,000

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Related Party Transactions

9 Months Ended

Jan. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

Note 8: Related Party Transactions

The Company purchased a building that it previously leased from Bonita Risk. Bonita Risk is a director and an employee of the Company and is the majority holder of George Risk Industries, Inc. stock. This building contains the Company’s sales and accounting departments, maintenance department, engineering department and some production facilities. The purchase price of the building was $200,000 and the transaction happened during the Company’s third fiscal quarter.

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Earnings Per Share (Tables)

9 Months Ended

Jan. 31, 2020

Income Per Share of Common Stock

Schedule of Basic and Diluted Earnings Per Share

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

	For the three months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	1,364,000
Basic EPS	$	1,364,000		4,950,524	$	0.28
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	1,364,000		4,971,024	$	0.27

	For the nine months ended January 31, 2020
	Income		Shares		Per-share
	(Numerator)		(Denominator)		Amount
Net Income	$	3,296,000
Basic EPS	$	3,296,000		4,953,008	$	0.67
Effect of dilutive securities:
Convertible preferred stock		—		20,500
Diluted EPS	$	3,296,000		4,973,508	$	0.66

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38
Income per shares - Diluted	$	0.51	$	(0.13	)	$	0.38

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Investments (Details Narrative) - USD ($)		3 Months Ended	9 Months Ended
	May 02, 2018	Jan. 31, 2020	Jan. 31, 2020	Jan. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Available-for-sale debt securities maturity year description			The investments in debt securities have maturities between April 2020 and January 2044.
Unrealized (gain) loss on marketable securities	$ 2,424,000
Impairment loss		$ 36,000	$ 41,000	$ 68,000

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Condensed Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Jan. 31, 2020	Jan. 31, 2020	Jan. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividend declared for per common share outstanding	$ 0.40	$ 0.40	$ 0.38

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Condensed Balance Sheets (Parenthetical) - USD ($)	Jan. 31, 2020	Apr. 30, 2019
Allowance for doubtful account receivable	$ 993	$ 9,321
Convertible preferred stock, shares authorized	1,000,000	1,000,000
Class A Common stock, par value	$ 0.10	$ 0.10
Class A Common stock, shares authorized	10,000,000	10,000,000
Class A Common stock, shares issued	8,502,881	8,502,881
Class A Common stock, shares outstanding	8,502,881	8,502,881
Treasury stock, shares	3,552,621	3,544,271
Series 1 Noncumulative Preferred Stock [Member]
Convertible preferred stock, shares authorized	25,000	25,000
Convertible preferred stock, stated value	$ 20	$ 20
Convertible preferred stock, shares issued	4,100	4,100
Convertible preferred stock, shares outstanding	4,100	4,100

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Investments

9 Months Ended

Jan. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Note 2: Investments (Restated)

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets and they are recorded at fair value. The investments in debt securities have maturities between April 2020 and January 2044. The Company uses the average cost method to determine the cost of securities sold with any unrealized gains or losses reported in each respective period’s earnings. Dividend and interest income are reported as earned.

As of January 31, 2020 and April 30, 2019, investments consisted of the following:

Investments at			Gross		Gross
January 31, 2020	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,402,000	$	156,000	$	(43,000	)	$	5,515,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		3,000		(9,000	)		83,000
Equity securities		17,167,000		4,870,000		(241,000	)		21,796,000
Money markets and CDs		758,000		—		—			758,000
Total	$	23,442,000	$	5,029,000	$	(293,000	)	$	28,178,000

Investments at			Gross		Gross
April 30, 2019	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,459,000	$	79,000	$	(55,000	)	$	5,483,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		1,000		(6,000	)		84,000
Equity securities		16,618,000		4,143,000		(296,000	)		20,465,000
Money markets and CDs		1,233,000		—		—			1,233,000
Total	$	23,425,000	$	4,223,000	$	(357,000	)	$	27,291,000

Marketable securities that are 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 Operations in the period of the change; and debt securities are carried at fair value on the balance sheets with changes in fair value recorded as unrealized gains or losses in the Statement of Comprehensive Income. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of operations. On May 1. 2018, as a result of the adoption of ASU 2016-01 – Financial Instruments, the Company reclassified $2,424,000 of net unrealized gains on marketable securities, that were formerly classified as available-for-sale securities before the adoption of the new standard, from Accumulated Other Comprehensive Income to Retained Earnings. 

The Company evaluates all marketable securities for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management do not record an impairment loss for the quarter, but did record an impairment loss of $41,000 for the nine months ended January 31, 2020. For the corresponding periods last year, management recorded an impairment loss of $36,000 for the quarter, and recorded a loss of $68,000 for the nine months ended January 31, 2019.

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 at January 31, 2020 and April 30, 2019, respectively.

Unrealized Loss Breakdown by Investment Type at January 31, 2020

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	—	$	—		$	401,000	$	(43,000	)	$	401,000	$	(43,000	)
REITs		—		—			57,000		(9,000	)		57,000		(9,000	)
Equity securities		445,000		(48,000	)		1,930,000		(193,000	)		2,375,000		(241,000	)
Total	$	445,000	$	(48,000	)	$	2,388,000	$	(245,000	)	$	2,833,000	$	(293,000	)

Unrealized Loss Breakdown by Investment Type at April 30, 2019

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)
REITs		—		—			32,000		(6,000	)		32,000		(6,000	)
Equity securities		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)
Total	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2020.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at January 31, 2020.

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Retirement Benefit Plan

9 Months Ended

Jan. 31, 2020

Retirement Benefits [Abstract]

Retirement Benefit Plan

Note 6: Retirement Benefit Plan

On January 1, 1998, the Company adopted the George Risk Industries, Inc. Retirement Savings Plan (the “Plan”). The Plan is a defined contribution savings plan designed to provide retirement income to eligible employees of the corporation. The Plan is intended to be qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended. Matching contributions by the Company of approximately $14,000 and $2,000 were paid during both the quarters ending January 31, 2020 and 2019, respectively. Likewise, the Company paid matching contributions of approximately $23,000 during the nine-month period ending January 31, 2020 and $7,000 during the corresponding period the prior fiscal year.

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Correction of Previously Issued Financial Statements

9 Months Ended

Jan. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Correction of Previously Issued Financial Statements

Note 10 Correction of Previously Issued Financial Statements

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and nine months ended January 31, 2020, the Company discovered an error due to missing a change in accounting related to other comprehensive income (loss) as reflected in the implementation of ASU 2016-01, which became effective for the Company on May 1, 2018. Under the new guidance in ASU 2016-01 the Company should record unrealized gains and losses in the value of the equity securities it owns in the statements of operations, whereas, under previous guidance (and in the Original Form 10-Q) those unrealized gains and losses were recorded as accumulated other comprehensive income (loss).

This restatement includes i) recording a one-time adjustment to retained earnings to reclassify the accumulated other comprehensive loss related to unrealized gains on equity securities as of May 1, 2018 and ii) recording an unrealized gain on marketable securities representing the value change in the equities for the three and nine months ended January 31, 2019.

No entries to correct for this restatement have any impact on our cash position, liquidity, or operations.

The tables below reflect the effect of restatement on the Company’s financial statements for the three and nine month periods ending January 31, 2019:

	For the Three Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(184,000	)	$	(184,000	)
Total Other Income (Expense)	$	641,000	$	(184,000	)	$	457,000
Income Before Provisions for Income Taxes		1,473,000		(184,000	)		1,289,000
Deferred tax expense (benefit)		9,000		(53,000	)		(44,000	)
Total Income Tax Expense		300,000		(53,000	)		247,000
Net Income	$	1,173,000	$	(131,000	)	$	1,042,000
Earnings Per Share of Common Stock	$	0.24	$	(0.03	)	$	0.21
Basic	$	0.24	$	(0.03	)	$	0.21
Diluted

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Income Statement
Unrealized Gain (Loss) on Equity Securities	$	—	$	(949,000	)	$	(949,000	)
Total Other Income (Expense)	$	900,000	$	(949,000	)	$	(49,000	)
Income Before Provisions for Income Taxes		3,391,000		(949,000	)		2,442,000
Deferred tax expense (benefit)		33,000		(274,000	)		(241,000	)
Total Income Tax Expense		832,000		(274,000	)		558,000
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Earnings Per Share of Common Stock	$	0.52	$	(0.14	)	$	0.38
Basic	$	0.51	$	(0.13	)	$	0.38
Diluted

	For the Three Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	1,173,000		$	(131,000	)	$	1,042,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		43,000			13,000			56,000
Less: reclassification adjustment for (gains) losses included in net income		(171,000	)		171,000			—
Income tax expense related to other comprehensive income		37,000			(53,000	)		(16,000	)
Other Comprehensive Income (Loss)	$	(91,000	)	$	131,000		$	40,000
Comprehensive Income	$	1,082,000		$	—		$	1,082,000

	For the Nine Months Ended January 31, 2019
	Original			Adjustment			As Restated
Statement of Comprehensive Income
Net Income	$	2,559,000		$	(675,000	)	$	1,884,000
Other Comprehensive Income, net of Tax
Unrealized gain (loss) on securities Unrealized holding gains arising during period		(595,000	)		816,000			221,000
Less: reclassification adjustment for (gains) losses included in net income		(134,000	)		134,000			—
Income tax expense related to other comprehensive income		210,000			(274,000	)		(64,000	)
Other Comprehensive Income (Loss)	$	(519,000	)	$	676,000		$	157,000
Comprehensive Income	$	2,040,000		$	1,000		$	2,041,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, October 31, 2018	$	36,748,000		$	2,000		$	36,750,000
Purchase of common stock		(8,000	)		—			(8,000	)
Unrealized gain (loss), net of tax effect		(91,000	)		131,000			40,000
Net Income		1,173,000			(131,000	)		1,042,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	Original			Adjustment			As Restated
Statement of Stockholders’ Equity
Balance, April 30, 2018	$	37,730,000		$	—		$	37,730,000
Purchase of common stock		(62,000	)		—			(62,000	)
Dividend declared at $0.38 per common share outstanding		(1,886,000	)		1,000			(1,885,000	)
Impact of adoption of ASU 2016-01		—			—			—
Unrealized gain (loss), net of tax effect		(519,000	)		676,000			157,000
Net Income		2,559,000			(675,000	)		1,884,000
Balance, January 31, 2019	$	37,822,000		$	2,000		$	37,824,000

	For the Nine Months Ended January 31, 2019
	Original		Adjustment			As Restated
Statement of Cash Flows
Cash Flows From Operating Activities
Net Income	$	2,559,000	$	(675,000	)	$	1,884,000
Adjustment to reconcile net income to net cash provided operating activities
Unrealized (gain) loss on equity securities		—		949,000			949,000
Deferred income taxes		33,000		(274,000	)		(241,000	)
Net cash provided by (used in) operating activities	$	2,275,000	$	—		$	2,275,000

	For the Three Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	1,173,000	$	(131,000	)	$	1,042,000
Denominator
Weighted average common shares outstanding, basic		4,961,018		—			4,961,018
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,981,518		—			4,981,518
Net Income per share - Basic	$	0.24	$	(0.03	)	$	0.21
Income per shares - Diluted	$	0.24	$	(0.03	)	$	0.21

	For the Nine Months Ended January 31,
	Originally Filed 2019		Adjustment 2019			Restated 2019
Numerator
Net income	$	2,559,000	$	(675,000	)	$	1,884,000
Denominator
Weighted average common shares outstanding, basic		4,963,592		—			4,963,592
Convertible Preferred Stock		20,500		—			20,500
Weighted average common shares outstanding, diluted		4,984,092		—			4,984,092
Net Income per share - Basic	$	0.52	$	(0.14	)	$	0.38

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Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jan. 31, 2020	Apr. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	$ 28,178,000	$ 27,291,000
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,515,000	5,483,000
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	26,000	26,000
REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	83,000	84,000
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	21,796,000	20,465,000
Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	758,000	1,233,000
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	22,580,000	21,724,000
Level 1 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 1 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	26,000	26,000
Level 1 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 1 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	21,796,000	20,465,000
Level 1 [Member] | Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	758,000	1,233,000
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,598,000	5,567,000
Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	5,515,000	5,483,000
Level 2 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 2 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis	83,000	84,000
Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 2 [Member] | Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | REITs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis
Level 3 [Member] | Money Markets and CDs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of assets measured on a recurring basis

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Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock Class A [Member]	Paid-In Capital [Member]	Treasury Stock (Common Class A) [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Total
Beginning balance at Apr. 30, 2018	$ 99,000	$ 850,000	$ 1,934,000	$ (4,148,000)	$ 2,249,000	$ 36,746,000	$ 37,730,000
Beginning balance, shares at Apr. 30, 2018	4,100	8,502,881		3,534,784
Cumulative effect of restatement on prior periods, for adoption of ASU 2016-01					(2,424,000)	(2,424,000)
Balance at May 1, 2018 after adoption of ASU 2016-01, as restated				$ (4,148,000)	(175,000)	39,170,000	37,730,000
Balance at May 1, 2018 after adoption of ASU 2016-01, as restated				3,534,784
Purchases of common stock				$ (62,000)			(62,000)
Purchases of common stock, shares				7,387
Dividend declared at common share outstanding						(1,885,000)	(1,885,000)
Unrealized gain (loss), net of tax effect					157,000		157,000
Net Income						1,884,000	1,884,000
Ending balance at Jan. 31, 2019	$ 99,000	$ 850,000	1,934,000	$ (4,210,000)	(18,000)	39,169,000	37,824,000
Ending balance, shares at Jan. 31, 2019	4,100	8,502,881		3,542,171
Beginning balance at Oct. 31, 2018	$ 99,000	$ 850,000	1,934,000	$ (4,202,000)	(58,000)	38,127,000	36,750,000
Beginning balance, shares at Oct. 31, 2018	4,100	8,502,881		3,541,234
Purchases of common stock				$ (8,000)			(8,000)
Purchases of common stock, shares				937
Unrealized gain (loss), net of tax effect					40,000		40,000
Net Income						1,042,000	1,042,000
Ending balance at Jan. 31, 2019	$ 99,000	$ 850,000	1,934,000	$ (4,210,000)	(18,000)	39,169,000	37,824,000
Ending balance, shares at Jan. 31, 2019	4,100	8,502,881		3,542,171
Beginning balance at Apr. 30, 2019	$ 99,000	$ 850,000	1,934,000	$ (4,227,000)	14,000	40,883,000	39,553,000
Beginning balance, shares at Apr. 30, 2019	4,100	8,502,881		3,544,271
Purchases of common stock				$ (71,000)			(71,000)
Purchases of common stock, shares				8,350
Dividend declared at common share outstanding						(1,981,000)	(1,981,000)
Dividend declared at common share outstanding, shares
Unrealized gain (loss), net of tax effect					55,000		55,000
Net Income						3,296,000	3,296,000
Ending balance at Jan. 31, 2020	$ 99,000	$ 850,000	1,934,000	$ (4,298,000)	69,000	42,198,000	40,852,000
Ending balance, shares at Jan. 31, 2020	4,100	8,502,881		3,552,621
Beginning balance at Oct. 31, 2019	$ 99,000	$ 850,000	1,934,000	$ (4,281,000)	50,000	40,834,000	39,486,000
Beginning balance, shares at Oct. 31, 2019	4,100	8,502,881		3,550,771
Dividend declared at common share outstanding				$ (17,000)			(17,000)
Dividend declared at common share outstanding, shares				1,850
Unrealized gain (loss), net of tax effect					19,000		19,000
Net Income						1,364,000	1,364,000
Ending balance at Jan. 31, 2020	$ 99,000	$ 850,000	$ 1,934,000	$ (4,298,000)	$ 69,000	$ 42,198,000	$ 40,852,000
Ending balance, shares at Jan. 31, 2020	4,100	8,502,881		3,552,621

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Condensed Balance Sheets - USD ($)	Jan. 31, 2020	Apr. 30, 2019
Current Assets:
Cash and cash equivalents	$ 5,647,000	$ 4,873,000
Investments and securities	28,178,000	27,291,000
Accounts receivable:
Trade, net of $993 and $9,321 doubtful account allowance	2,243,000	2,696,000
Other	4,000	6,000
Income tax overpayment	117,000	259,000
Inventories, net	5,046,000	4,583,000
Prepaid expenses	356,000	282,000
Total Current Assets	41,591,000	39,990,000
Property and Equipment, net, at cost	1,284,000	984,000
Other Assets
Investment in Limited Land Partnership, at cost	320,000	293,000
Projects in process		117,000
Other	3,000	3,000
Total Other Assets	323,000	413,000
Intangible Assets, net	1,548,000	1,640,000
TOTAL ASSETS	44,746,000	43,027,000
Current Liabilities
Accounts payable, trade	222,000	206,000
Dividends payable	1,892,000	1,714,000
Accrued expenses	357,000	356,000
Total Current Liabilities	2,471,000	2,276,000
Long-Term Liabilities
Deferred income taxes	1,423,000	1,198,000
Total Long-Term Liabilities	1,423,000	1,198,000
Total Liabilities	3,894,000	3,474,000
Commitments and Contingencies
Stockholders' Equity
Convertible preferred stock, 1,000,000 shares authorized, Series 1-noncumulative, $20 stated value, 25,000 shares authorized, 4,100 issued and outstanding	99,000	99,000
Common stock, Class A, $.10 par value, 10,000,000 shares authorized, 8,502,881 shares issued and outstanding	850,000	850,000
Additional paid-in capital	1,934,000	1,934,000
Accumulated other comprehensive income	69,000	14,000
Retained earnings	42,198,000	40,883,000
Less: treasury stock, 3,552,621 and 3,544,271 shares, at cost	(4,298,000)	(4,227,000)
Total Stockholders' Equity	40,852,000	39,553,000
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY	$ 44,746,000	$ 43,027,000

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Investments (Tables)

9 Months Ended

Jan. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments

As of January 31, 2020 and April 30, 2019, investments consisted of the following:

Investments at			Gross		Gross
January 31, 2020	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,402,000	$	156,000	$	(43,000	)	$	5,515,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		3,000		(9,000	)		83,000
Equity securities		17,167,000		4,870,000		(241,000	)		21,796,000
Money markets and CDs		758,000		—		—			758,000
Total	$	23,442,000	$	5,029,000	$	(293,000	)	$	28,178,000

Investments at			Gross		Gross
April 30, 2019	Cost		Unrealized		Unrealized			Fair
	Basis		Gains		Losses			Value
Municipal bonds	$	5,459,000	$	79,000	$	(55,000	)	$	5,483,000
Corporate bonds		26,000		—		—			26,000
REITs		89,000		1,000		(6,000	)		84,000
Equity securities		16,618,000		4,143,000		(296,000	)		20,465,000
Money markets and CDs		1,233,000		—		—			1,233,000
Total	$	23,425,000	$	4,223,000	$	(357,000	)	$	27,291,000

Schedule of Unrealized Loss Breakdown by Investment

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 at January 31, 2020 and April 30, 2019, respectively.

Unrealized Loss Breakdown by Investment Type at January 31, 2020

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	—	$	—		$	401,000	$	(43,000	)	$	401,000	$	(43,000	)
REITs		—		—			57,000		(9,000	)		57,000		(9,000	)
Equity securities		445,000		(48,000	)		1,930,000		(193,000	)		2,375,000		(241,000	)
Total	$	445,000	$	(48,000	)	$	2,388,000	$	(245,000	)	$	2,833,000	$	(293,000	)

Unrealized Loss Breakdown by Investment Type at April 30, 2019

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	772,000	$	(4,000	)	$	580,000	$	(50,000	)	$	1,352,000	$	(54,000	)
REITs		—		—			32,000		(6,000	)		32,000		(6,000	)
Equity securities		932,000		(102,000	)		1,652,000		(195,000	)		2,584,000		(297,000	)
Total	$	1,704,000	$	(106,000	)	$	2,264,000	$	(251,000	)	$	3,968,000	$	(357,000	)

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Inventories

9 Months Ended

Jan. 31, 2020

Inventory Disclosure [Abstract]

Inventories

Note 3: Inventories

Inventories at January 31, 2020 and April 30, 2019 consisted of the following:

	January 31,			April 30,
	2020			2019
Raw materials	$	4,102,000		$	3,644,000
Work in process		468,000			389,000
Finished goods		609,000			641,000
		5,179,000			4,674,000
Less: allowance for obsolete inventory		(133,000	)		(91,000	)
Totals	$	5,046,000		$	4,583,000

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Fair Value Measurements

9 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7: Fair Value Measurements

Generally accepted accounting principles in the United States of America (US GAAP) defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The levels of the fair value hierarchy under US GAAP are described below:

Level 1	Valuation is based upon quoted prices for identical instruments traded in active markets.
Level 2	Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3	Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Investments and Marketable Securities

As of January 31, 2020, our investments consisted of money markets, certificates of deposit, publicly traded equity securities, real estate investment trusts (REITS) as well as certain state and municipal debt securities and corporate bonds. Our marketable securities are valued using third-party broker statements. The value of the investments is derived from quoted market information. The inputs to the valuation are generally classified as Level 1 given the active market for these securities, however, if an active market does not exist, which is the case for municipal bonds and REITs, the inputs are recorded as Level 2.

Fair Value Hierarchy

The following 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.

	Assets Measured at Fair Value on a Recurring Basis as of January 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,515,000	$	—	$	5,515,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		83,000		—		83,000
Equity Securities		21,796,000		—		—		21,796,000
Money Markets and CDs		758,000		—		—		758,000
Total fair value of assets measured on a recurring basis	$	22,580,000	$	5,598,000	$	—	$	28,178,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		84,000		—		84,000
Equity Securities		20,465,000		—		—		20,465,000
Money Markets and CDs		1,233,000		—		—		1,233,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000

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Correction of Previously Issued Financial Statements - Schedule of Effect of Restatement on Financial Statements (Details) (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Jan. 31, 2020	Jan. 31, 2020	Jan. 31, 2019
Dividend declared for per common share outstanding	$ 0.40	$ 0.40	$ 0.38
Original [Member]
Dividend declared for per common share outstanding			0.38
Adjustment [Member]
Dividend declared for per common share outstanding			$ 0.38

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Retirement Benefit Plan (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Retirement Benefits [Abstract]
Employees matching contributions	$ 14,000	$ 2,000	$ 23,000	$ 7,000

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Fair Value Measurements (Tables)

9 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on Recurring Basis

The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. As required by US GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Assets Measured at Fair Value on a Recurring Basis as of January 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,515,000	$	—	$	5,515,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		83,000		—		83,000
Equity Securities		21,796,000		—		—		21,796,000
Money Markets and CDs		758,000		—		—		758,000
Total fair value of assets measured on a recurring basis	$	22,580,000	$	5,598,000	$	—	$	28,178,000

	Assets Measured at Fair Value on a Recurring Basis as of April 30, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Municipal Bonds	$	—	$	5,483,000	$	—	$	5,483,000
Corporate Bonds		26,000		—		—		26,000
REITs		—		84,000		—		84,000
Equity Securities		20,465,000		—		—		20,465,000
Money Markets and CDs		1,233,000		—		—		1,233,000
Total fair value of assets measured on a recurring basis	$	21,724,000	$	5,567,000	$	—	$	27,291,000

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Investments - Schedule of Investments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jan. 31, 2020	Apr. 30, 2019
Cost Basis	$ 23,442,000	$ 23,425,000
Gross Unrealized Gains	5,029,000	4,223,000
Gross Unrealized Losses	(293,000)	(357,000)
Fair Value	28,178,000	27,291,000
Municipal Bonds [Member]
Cost Basis	5,402,000	5,459,000
Gross Unrealized Gains	156,000	79,000
Gross Unrealized Losses	(43,000)	(55,000)
Fair Value	5,515,000	5,483,000
Corporate Bonds [Member]
Cost Basis	26,000	26,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	26,000	26,000
REITs [Member]
Cost Basis	89,000	89,000
Gross Unrealized Gains	3,000	1,000
Gross Unrealized Losses	(9,000)	(6,000)
Fair Value	83,000	84,000
Equity Securities [Member]
Cost Basis	17,167,000	16,618,000
Gross Unrealized Gains	4,870,000	4,143,000
Gross Unrealized Losses	(241,000)	(296,000)
Fair Value	21,796,000	20,465,000
Money Markets and CDs [Member]
Cost Basis	758,000	1,233,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	$ 758,000	$ 1,233,000