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