UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex-
change Act of 1934
For the quarter ended July 31, 2010
[ ] 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: 000-05378
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)
(308) 235-4645
(Registrant's telephone number, including area code)
Check whether the issuer (1) filed all reports 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 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
September 14, 2010 was 5,059,415.
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-month period ended
July 31, 2010, are attached hereto.
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
July 31, April 30,
2010 2010
------------ ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,712,000 $ 3,641,000
Investments and securities 18,146,000 19,607,000
Accounts receivable:
Trade, net of $6,655 and $19,700
doubtful account allowance 1,211,000 1,295,000
Other 1,000 --
Note receivable, current 10,000 11,000
Income tax overpayment 128,000 216,000
Inventories 1,701,000 1,968,000
Prepaid expenses 77,000 142,000
Deferred current income taxes 400,000 266,000
------------ ------------
Total Current Assets $27,386,000 $27,146,000
Property and Equipment, net, at cost 580,000 733,000
Other Assets
Investment in Limited Land Partnership,
at cost 210,000 200,000
Projects in process 143,000 112,000
Note receivable 5,000 7,000
------------ ------------
Total Other Assets $ 358,000 $ 319,000
TOTAL ASSETS $28,324,000 $28,198,000
============ ============
GEORGE RISK INDUSTRIES, INC.
BALANCE SHEETS
July 31, April 30,
2010 2010
------------ ------------
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 58,000 $ 57,000
Dividends payable 394,000 395,000
Accrued expenses:
Payroll and related expenses 259,000 198,000
Property taxes 2,000 --
------------ ------------
Total Current Liabilities $ 713,000 $ 650,000
Long-Term Liabilities
Aircraft ownership deposit payable 5,000 5,000
Deferred income taxes 65,000 75,000
------------ ------------
Total Long-Term Liabilities $ 70,000 $ 80,000
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 99,000
Common stock, Class A, $.10 par value,
10,000,000 shares authorized, 8,502,832
shares issued and outstanding 850,000 850,000
Additional paid-in capital 1,736,000 1,736,000
Accumulated other comprehensive income (144,000) 13,000
Retained earnings 28,352,000 28,102,000
Treasury stock, 3,443,017 and 3,438,352
shares, at cost (3,352,000) (3,332,000)
------------ ------------
Total Stockholders' Equity $27,541,000 $27,468,000
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY $28,324,000 $28,198,000
============ ============
GEORGE RISK INDUSTRIES, INC.
INCOME STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2010 AND 2009
July 31,
2010 2009
------------ ------------
Net Sales $ 2,007,000 $ 1,964,000
Less: Cost of Goods Sold (1,229,000) (1,142,000)
------------ ------------
Gross Profit $ 778,000 $ 822,000
Operating Expenses:
General and Administrative 181,000 168,000
Sales 391,000 403,000
Engineering 17,000 15,000
Rent Paid to Related Parties 11,000 11,000
------------ ------------
Total Operating Expenses $ 600,000 $ 597,000
Income From Operations 178,000 225,000
Other Income (Expense)
Other Income 2,000 2,000
Dividend and Interest Income 182,000 183,000
Gain (Loss) on Sale of Investments (56,000) (99,000)
------------ ------------
$ 128,000 $ 86,000
Income Before Provisions for Income Taxes 306,000 311,000
Provisions for Income Taxes
Current Expense 89,000 108,000
Deferred Tax Expense (32,000) (1,000)
------------ ------------
Total Income Tax Expense $ 57,000 $ 107,000
Net Income $ 249,000 $ 204,000
Basic and Diluted Earnings Per Share of
Common Stock $ 0.05 $ 0.04
Weighted Average Number of Common Shares
Outstanding 5,062,892 5,106,296
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED
July 31,
2010 2009
---------------------------
Net Income $ 249,000 $ 204,000
------------ ------------
Other Comprehensive Income, net of tax
Unrealized gain (loss) on securities:
Unrealized holding gains (losses)
arising during period (355,000) 906,000
Reclassification adjustment for gains
(losses) included in net income 85,000 153,000
Income tax expense related to other
comprehensive income 113,000 (443,000)
------------ ------------
Other Comprehensive Income (Loss) $ (157,000) $ 616,000
Comprehensive Income (Loss) $ 92,000 $ 820,000
============ ============
GEORGE RISK INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
For the three months
ended July 31,
2010 2009
---------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 249,000 $ 204,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 37,000 40,000
(Gain) loss on sale of investments 56,000 99,000
Reserve for bad debts 5,000 2,000
Reserve for obsolete inventory 31,000 64,000
Deferred income taxes (31,000) (1,000)
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable 79,000 99,000
Inventories 236,000 179,000
Prepaid expenses 56,000 12,000
Income tax overpayment 88,000 106,000
Increase (decrease) in:
Accounts payable 1,000 46,000
Accrued expenses 62,000 (76,000)
------------ ------------
Net cash provided by (used in) operating
activities $ 869,000 $ 774,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Other assets manufactured & purchased (31,000) (7,000)
Proceeds from receipt of insurance claim 132,000 --
(Purchase) of property and equipment (17,000) (11,000)
Proceeds from sale of marketable securities 1,554,000 179,000
(Purchase) of marketable securities (419,000) (166,000)
Collection of loans to employees 3,000 1,000
(Purchase) of treasury stock (20,000) (189,000)
------------ ------------
Net cash provided by (used in) investing
activities $ 1,202,000 $ (193,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash provided by (used in) financing
activities $ -- $ --
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS $ 2,071,000 $ 581,000
Cash and cash equivalents, beginning of
period $ 3,641,000 $ 4,671,000
------------ ------------
Cash and cash equivalents, end of period $ 5,712,000 $ 5,252,000
============ ============
Supplemental Disclosure of Cash Flow
Information
Cash payments for:
Income taxes $0 $0
Interest expense $0 $0
GEORGE RISK INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
JULY 31, 2010
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 inform-
ation and footnotes required by generally accepted accounting principles for
complete financial statements. It is suggested that these condensed finan-
cial statements be read in conjunction with the financial statements and
notes thereto included in the Company's April 30, 2010 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.
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.
Refer to Note 7, Fair Value Measurements, for additional information on the
fair value measurements for all assets and liabilities, including invest-
ments, that are measured at fair value in these financial statements.
Available-for-sale investments in debt securities mature between August 2010
and June 2042. The Company uses the average cost method to determine the
cost of securities sold and the amount reclassified out of accumulated other
comprehensive income into earnings. Unrealized gains and losses are excluded
from earnings and reported separately as a component of stockholder's equity.
Dividend and interest income are accrued as earned.
As of July 31, 2010, investments available-for-sale consisted of the
following:
Gross Gross
Cost Unrealized Unrealized Fair
Basis Gains Losses Value
------------ ------------ ------------ ------------
Municipal bonds $ 8,973,000 $ 168,000 $ (111,000) $ 9,030,000
Federal agency mortgage
backed securities $ 125,000 $ 2,000 $ -- $ 127,000
Corporate bonds $ 180,000 $ 6,000 $ -- $ 186,000
Equity securities $ 7,538,000 $ 297,000 $ (610,000) $ 7,225,000
Money markets/CDs $ 1,578,000 $ -- $ -- $ 1,578,000
------------ ------------ ------------ ------------
Total $18,394,000 $ 473,000 $ (721,000) $18,146,000
In accordance with US GAAP, 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 recorded impairment
losses of $7,000 for the quarter ended July 31, 2010 and $55,000 for the
quarter ended July 31, 2009.
The following table shows the investments with unrealized losses that
are not deemed to be other-than-temporarily impaired, aggregated by invest-
ment category and length of time that individual securities have been in a
continuous unrealized loss position, at July 31, 2010.
Less than 12 months 12 months or greater Total
----------------------- --------------------- ---------------------
Fair Unrealized Fair Unrealized Fair Unrealized
Value Loss Value Loss Value Loss
...........................................................................
Municipal bonds
$1,318,000 $ (27,000) $1,373,000 $ (87,000) $ 2,691,000 $ (114,000)
Equity securities
$2,607,000 $(252,000) $1,705,000 $(355,000) $ 4,312,000 $ (607,000)
----------- ---------- ----------- ---------- ------------ ------------
Total
$3,925,000 $(279,000) $3,078,000 $(442,000) $ 7,003,000 $ (721,000)
Municipal Bonds
---------------
The unrealized losses on the Company's investments in municipal bonds were
caused by interest rate increases. The contractual terms of these invest-
ments 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 July 31, 2010.
Marketable Equity Securities
----------------------------
The Company's investments in marketable equity securities consist of a wide
variety of companies. Investments in these companies include growth, growth
income, and foreign investment objectives. Management has evaluated the in-
dividual holdings, and because of the recent decline in the stock market,
does not consider these investments to be other-than-temporarily impaired at
July 31, 2010.
Note 3 Inventories
Inventories at July 31, 2010, consisted of the following:
Raw Materials $ 1,166,000
Work in Process 488,000
Finished Goods 248,000
------------
$ 1,902,000
Less: allowance for obsolete inventory (201,000)
------------
Net Inventories $ 1,701,000
============
Note 4 Business Segments
The following is financial information relating to industry segments:
For the quarter ended
July 31,
2010 2009
---------------------------
Net revenue:
Security alarm products 1,797,000 1,711,000
Other products 210,000 253,000
------------ ------------
Total net revenue $ 2,007,000 $ 1,964,000
Income from operations:
Security alarm products 159,000 196,000
Other products 19,000 29,000
------------ ------------
Total income from operations $ 178,000 $ 225,000
Identifiable assets:
Security alarm products 2,485,000 2,912,000
Other products 916,000 1,421,000
Corporate general 24,923,000 23,101,000
------------ ------------
Total assets $28,324,000 $27,434,000
Depreciation and amortization:
Security alarm products 6,000 6,000
Other products 24,000 27,000
Corporate general 7,000 7,000
------------ ------------
Total depreciation and amortization $ 37,000 $ 40,000
Capital expenditures:
Security alarm products -- --
Other products 5,000 6,000
Corporate general 12,000 5,000
------------ ------------
Total capital expenditures $ 17,000 $ 11,000
Note 5 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 July 31, 2010
----------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
------------- -------------- ---------
Net Income $ 249,000
=============
Basic EPS $ 249,000 5,062,892 $ 0.0492
Effect of dilutive securities:
Convertible preferred stock -- 20,500 (0.0002)
------------- -------------- ----------
Diluted EPS $ 249,000 5,083,392 $ 0.0490
For the three months ended July 31, 2009
----------------------------------------
Income Shares Per-share
(Numerator) (Denominator) Amount
------------- -------------- ---------
Net Income $ 204,000
=============
Basic EPS $ 204,000 5,106,296 $ 0.0400
Effect of dilutive securities:
Convertible preferred stock -- 20,500 (0.0002)
------------- -------------- ----------
Diluted EPS $ 204,000 5,126,796 $ 0.0398
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 $3,000 were paid during the quarter ending
July 31, 2010 and approximately $2,000 of matching contributions were paid
during the quarter ending July 31, 2009. There were no discretionary con-
tributions paid during the quarters ending July 31, 2010 and 2009, re-
spectively.
Note 7 Fair Value Measurements
As of May 1, 2008, we adopted the US GAAP "Fair Value Measurements"
standard. This standard defines fair value as the price that would be re-
ceived 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 ad-
vantageous 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 measurements) and the lowest priority to un-
observable 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 in-
struments traded in active markets.
Level 2 - Valuation is based upon quoted prices for similar in-
struments in active markets, quoted prices for identical
or similar instruments in markets that are not active,
and model-based valuation techniques for which all sig-
nificant 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.
Marketable Securities
---------------------
As of July 31, 2010, our investments consisted of publicly traded equity
securities as well as certain state and municipal debt securities. Our
marketable securities are valued using third-party broker statements. The
value of the majority of securities is derived from quoted market inform-
ation. 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, the inputs are recorded at a lower level in the fair value hierarchy.
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 July 31, 2010
---------------------------------------------------
Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Assets:
Marketable
Securities $18,146,000 $ -- $ -- $18,146,000
------------ ---------- ---------- ------------
Total fair value of
assets measured on a
recurring basis $18,146,000 $ -- $ -- $18,146,000
============ =========== ========== ============
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 con-
densed consolidated financial statements, and with the Company's audited
financial statements and discussion for the fiscal year ended April 30, 2010.
Liquidity and capital resources
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Operating
---------
Net cash increased $2,071,000 during the quarter ended July 31, 2010 as com-
pared to an increase of $581,000 during the corresponding quarter last year.
Accounts receivable decreased $79,000 for the quarter ending July 31, 2010
compared with a $99,000 decrease for the same quarter last year. The smaller
decrease in cash flow for accounts receivable for the current period is a re-
flection of the slight increases in sales. At the quarter ended July 31,
2010, 78.15% of the receivables are considered current (less than 45 days)
while 4.06% of the total are over 90 days past due. This is in comparison to
having 85.36% of the receivables considered current and -0.08% over 90 days
past due at July 31, 2009. Inventories decreased $236,000 during the current
quarter as compared to a $179,000 decrease last year. Management has had to
increase its raw material purchases as a result of the increase in sales. At
the quarter ended July 31, 2010 there was a $56,000 decrease in prepaid ex-
penses, while at July 31, 2009, there was a $12,000 decrease. Income tax
overpayment decreased $88,000 for the quarter ended July 31, 2010, while
there was a $106,000 decrease in income tax overpayment for the corresponding
quarter last year. Management paid income tax estimates based on prior year
taxable income.
At the quarter ended July 31, 2010, accounts payable shows an increase of
$1,000 as compared to an increase of $46,000 for the same quarter the year
before. The change in cash in regards to accounts payable can vary. It
really depends on the time of the month the invoices are due, since the com-
pany pays all its invoices within the terms. Accrued expenses increased
$62,000 for the current quarter as compared to a $76,000 decrease for the
quarter ended July 31, 2009. The increase is due to the timing of the ending
of the pay period. A whole pay period of wages and payroll taxes are in the
accrued expenses number.
Investing
---------
As for our investment activities, the Company has spent approximately $17,000
on acquisitions of property and equipment for the current fiscal quarter. In
comparison with the corresponding quarter last year, there was activity of
$11,000. With only a slight increases in sales, the company is being
cautious and only buying equipment that is needed. The Company received pro-
ceeds of $152,000 from its insurance company in regards to damage that was
sustained due to a major hailstorm in May 2010 and $20,000 has been put to
use on repairs already. Additionally, the Company continues to purchase
marketable securities, which include municipal bonds and quality stocks.
Cash spent on purchases of marketable securities for the quarter ended July
31, 2010 was $419,000 compared with $166,000 spent during the quarter ended
July 31, 2009. We continue 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. Furthermore, the Company continues to purchase back common
stock when the opportunity arises. For the quarter ended July 31, 2010, the
Company purchased $20,000 worth of treasury stock and $189,000 worth of
treasury stock for the quarter ended July 31, 2009. We have been actively
searching for stockholders that have been "lost" over the years. The payment
of dividends over the last six fiscal years has also prompted many stock-
holders and/or their relatives and descendants to sell back their stock to
the Company.
The following is a list of ratios to help analyze George Risk Industries'
performance:
For the quarter ended
July 31,
2010 2009
---------------------------
Working capital $ 26,673,000 $ 25,710,000
Current ratio 38.410 41.939
Quick ratio 35.160 36.721
Results of Operations
~~~~~~~~~~~~~~~~~~~~~
Net sales were $2,007,000 for the quarter ended July 31, 2010, which is an
increase of 2.2% from the corresponding quarter last year. Net sales for the
quarter ended July 31, 2009 were $1,964,000. Even though the majority of the
Company's products are tied to the housing market, the slight increase in
sales is a result of the Company focusing on gaining market share in the in-
dustry. The Company is accomplishing this by having excellent customer
service and being willing to make many customized parts. Cost of goods sold
was 61.24% of net sales for the quarter ended July 31, 2010 and 58.15% for
the quarter ended July 31, 2009. Management has been trying to keep labor
and other manufacturing expenses down, but raw materials costs continue to
rise.
Operating expenses were 29.9% of net sales for the quarter ended July 31,
2010 as compared to 30.4% for the corresponding quarter last year. Keeping
operating expenses around 30% of net sales, as management has been able to
achieve over the years, shows that management keeps a close eye on these ex-
penses from year to year. Income from operations for the quarter ended July
31, 2010 was at $178,000, which is a 20.89% decrease from the corresponding
quarter last year, which had income from operations of $225,000.
Other income and expenses showed a $128,000 gain for the quarter ended July
31, 2010 as compared to having a $86,000 gain for the quarter ended July 31,
2009. The main reason for the bigger gains in other income for the current
quarter is that management did not have to write down as much for impaired
investments. For the quarter ended July 31, 2010, management wrote down
$7,000 in impaired investments, while $55,000 was written down for the cor-
responding quarter last year. In turn, net income for the quarter ended July
31, 2010 was at $249,000, a 22.06% increase from the corresponding quarter
last year, which showed net income of $204,000. Earnings per share for the
quarter ended July 31, 2010 were $0.05 per common share and $0.04 per common
share for the quarter ended July 31, 2009.
New Product Development
~~~~~~~~~~~~~~~~~~~~~~~
The new Hold-Up Switch (pt # HD-1) is now in production. The HD-1 requires
no key to reset and is jumper selectable for latching or non-latching. It is
tamper resistant, and can incorporate an end-of-line resistor. Engineering
is currently working with our international representative on a modified
version for the European market.
Mold design is currently being completed on a miniature surface-mount contact
switch with terminal blocks. This has been requested by customers for some
time and will be the Company's smallest surface mount terminal switch.
The E-Z Duct Quarter Round line is in stock and a line of connecting pieces
of splices and corners will soon be added.
Along with the dual terminal resistor packs the Company has also added a
single terminal version that incorporates one specified value resistor.
From more customer requests the Company has added a stubby version to our
3/4" and 1" steel door recessed contacts. These will be in the Company's
80RS-12 and 8080-TRS series switches.
Engineering is completing design on a garage door alert which will monitor
when the garage door has been left open and will automatically shut the door
- either by a timer function after each vehicle leaves the garage and/or
closing at dusk. Management believes this will be a good complimentary
product as most home burglaries happen through a garage door that is left
open or unlocked.
Engineering is also looking to complete a design on an 110-volt Current
Controller which would work with our contact switches to secure the door of
a storage unit and also turn on the light when the door is opened.
Recently Issued Accounting Pronouncements
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
There are no new accounting pronouncements that significantly affect the
Company.
Other Information
~~~~~~~~~~~~~~~~~
Management is always open to the possibility to acquire a business that would
complement our existing operations. This would require no outside 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 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.
GEORGE RISK INDUSTRIES, INC.
PART I. FINANCIAL INFORMATION
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.
Item 3A(T). Controls and Procedures
Evaluation of disclosure controls and procedures:
-------------------------------------------------
Based on their evaluation of our disclosure controls and procedures (as de-
fined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of July 31,
2010, our president and chief executive officer and our chief financial
officer have concluded that our disclosure controls and procedures are
effective such that information required to be disclosed by us in the reports
that we file or submit under the Exchange Act is (i) recorded, processed,
summarized and reported within the time periods specified in the Securities
and Exchange Commission's rules and (ii) accumulated and communicated to our
management, including our chief executive officer and our chief financial
officer, as appropriate to allow timely decisions regarding disclosure. A
control system cannot provide absolute assurance, however, that the ob-
jectives of the control systems are met, and no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud,
if any, within a company have been detected.
Changes in internal controls over financial reporting:
------------------------------------------------------
There was no change in our internal controls over financial reporting that
occurred during the period covered by this report, that has materially
affected, or is reasonably likely to materially affect, our internal con-
trols over financial reporting.
Management's Annual Report on Internal Control over Financial Reporting:
------------------------------------------------------------------------
Our management is responsible for establishing and maintaining adequate in-
ternal control over financial reporting, as such term is defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was
designed to provide reasonable assurance regarding the reliability of finan-
cial reporting and the preparation of financial statements for external pur-
poses, in accordance with generally accepted accounting principles. Because
of inherent limitations, a system of internal control over financial re-
porting may not prevent or detect misstatements. Therefore, even those
systems determined to be effective can provide no reasonable assurance of
achieving their control objectives. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may
become inadequate due to change in conditions, or that the degree of com-
pliance with the policies or procedures may deteriorate.
Our management, including our principal executive officer and principal
accounting officer, conducted an evaluation of the effectiveness of our in-
ternal control over financial reporting using the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in
Internal Control-Integrated Framework. Based on its evaluation, our manage-
ment concluded that as of July 31, 2010 our internal control over financial
reporting is effective.
This quarterly report does not include an attestation report of the Corpor-
ation's registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to attestation by
the Corporation's registered public accounting firm pursuant to temporary
rules of the SEC that permit the Corporation to provide only the management's
report in this quarterly report.
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 July 31, 2010
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 09-14-2010 By: /s/ Ken R. Risk
Ken R. Risk
President and Chairman of the Board
Date 09-14-2010 By: /s/ Stephanie M. Risk
Stephanie M. Risk
Chief Financial Officer and Controller