-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Wbde2Yor+21Czc+MKICrO9qohb/94DXQzN+0PzqYB5dlW5DU0optgHK9NVME/YwX w0YPI2Ss2upiUHnHhINGOg== 0000084112-07-000008.txt : 20070914 0000084112-07-000008.hdr.sgml : 20070914 20070914121147 ACCESSION NUMBER: 0000084112-07-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20070731 FILED AS OF DATE: 20070914 DATE AS OF CHANGE: 20070914 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RISK GEORGE INDUSTRIES INC CENTRAL INDEX KEY: 0000084112 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 840524756 STATE OF INCORPORATION: CO FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-05378 FILM NUMBER: 071117026 BUSINESS ADDRESS: STREET 1: 802 SOUTH ELM STREET 2: GRI PLAZA CITY: KIMBALL STATE: NE ZIP: 69145 BUSINESS PHONE: 3082354645 MAIL ADDRESS: STREET 1: 802 S ELM ST CITY: KIMBALL STATE: NE ZIP: 69145 10QSB 1 july200710qsb.txt 10QSB FOR THE QUARTER ENDED JULY 31, 2007 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB (Mark One) [ X ] Quarterly report under Section 13 or 15(d) of the Securities Ex- change Act of 1934 For the quarter ended July 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: 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) 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 September 14, 2007 was 5,334,878. 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, 2007, are attached hereto. GEORGE RISK INDUSTRIES, INC. BALANCE SHEETS
July 31, April 30, 2007 2007 ------------ ------------ (unaudited) ASSETS Current Assets Cash and cash equivalents $ 5,236,000 $ 4,611,000 Marketable securities (Note 2) 17,093,000 16,738,000 Accounts receivable: Trade, net of $50,000 doubtful account allowance 1,821,000 1,925,000 Other 4,000 3,000 Income tax overpayment 0 137,000 Inventories (Note 3) 2,931,000 3,060,000 Prepaid expenses 107,000 125,000 Deferred income taxes 216,000 115,000 ------------ ------------ Total Current Assets $27,408,000 $26,714,000 Property and Equipment, net at cost $ 874,000 $ 828,000 Other Assets Investment in Land Limited Partnership, at cost 200,000 200,000 Projects in process 70,000 75,000 Note receivable 60,000 60,000 Other 0 18,000 ------------ ------------ Total Other Assets $ 330,000 $ 353,000 TOTAL ASSETS $28,612,000 $27,895,000 ============ ============
GEORGE RISK INDUSTRIES, INC. BALANCE SHEETS
July 31, April 30, 2007 2007 ------------ ------------ (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable, trade $ 51,000 $ 127,000 Dividends payable 161,000 161,000 Accrued expenses Payroll and other expenses 266,000 337,000 Property taxes 2,000 0 Income tax payable 261,000 0 ------------ ------------ Total Current Liabilities $ 741,000 $ 625,000 Long-Term Liabilities Notes payable 25,000 25,000 Deferred income taxes 65,000 74,000 ------------ ------------ Total Long-Term Liabilities $ 90,000 $ 99,000 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 (38,000) 165,000 Retained earnings 27,253,000 26,430,000 Treasury stock, 3,167,604 shares, at cost (2,119,000) (2,109,000) ------------ ------------ Total Stockholders' Equity $27,781,000 $27,171,000 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $28,612,000 $27,895,000 ============ ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE THREE MONTHS ENDED
July 31, 2007 2006 ------------ ------------ Net Sales $ 3,239,000 $ 3,411,000 Less: cost of goods sold (1,530,000) (1,693,000) ------------ ------------ Gross Profit $ 1,709,000 $ 1,718,000 Operating Expenses: General and administrative 174,000 162,000 Selling 543,000 629,000 Engineering 21,000 15,000 Rent paid to related parties 16,000 15,000 ------------ ------------ Total Operating Expenses $ 754,000 $ 821,000 Income From Operations 955,000 897,000 Other Income (Expense) Other 1,000 4,000 Dividend and interest income 205,000 128,000 Gain (loss) on sale of investments 96,000 (87,000) ------------ ------------ $ 302,000 $ 45,000 Income Before Provisions for Income Tax 1,257,000 942,000 Provisions for Income Tax Current expense 398,000 392,000 Deferred tax (benefit) expense 36,000 6,000 ------------ ------------ Total Income Tax Expense $ 434,000 $ 398,000 Net Income $ 823,000 $ 544,000 Retained Earnings, beginning of period $26,430,000 $24,250,000 Retained Earnings, end of period $27,253,000 $24,794,000 Income Per Share of Common Stock: Basic $ .15 $ .10 Diluted $ .15 $ .10 Weighted Average Number of Common Shares Outstanding: Common 5,335,666 5,343,596 Diluted 5,356,166 5,364,096
GEORGE RISK INDUSTRIES, INC. STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED
July 31, 2007 2006 --------------------------- Net Income $ 823,000 $ 544,000 - ----- ----- Other Comprehensive Income, net of tax Unrealized gain (loss) on securities: Unrealized holding gains (losses) arising during period (203,000) (120,000) Reclassification adjustment for (gains) losses included in net income (96,000) 87,000 Income tax expense related to other comprehensive income (125,000) (14,000) ------------ ------------ Other Comprehensive Income (Loss) $ (424,000) $ (47,000) Comprehensive Income (Loss) $ 399,000 $ 497,000 ============ ============
GEORGE RISK INDUSTRIES, INC. STATEMENT OF CASH FLOWS
For the three months ended July 31, 2007 2006 --------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 823,000 $ 544,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 41,000 43,000 (Gain) loss on sale of investments (96,000) 87,000 Deferred income taxes 36,000 6,000 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable 104,000 280,000 Inventories 129,000 (128,000) Prepaid expenses 18,000 18,000 Increase (decrease) in: Accounts payable (76,000) (8,000) Accrued expenses (69,000) (91,000) Income tax payable 398,000 392,000 ------------ ------------ Net cash provided by (used in) operating activities $ 1,308,000 $ 1,143,000 CASH FLOWS FROM INVESTING ACTIVITIES: Other assets manufactured 23,000 (15,000) (Purchase) of property and equipment (87,000) (10,000) Proceeds from sale of marketable securities 1,443,000 670,000 (Purchase) of marketable securities (2,052,000) (1,138,000) (Purchase) of treasury stock (10,000) (39,000) ------------ ------------ Net cash provided by (used in) investing activities $ (683,000) $ (532,000) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on short-term debt 0 (8,000) ------------ ------------ Net cash provided by (used in) financing activities $ 0 $ (8,000) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 625,000 $ 603,000 Cash and cash equivalents, beginning of period $ 4,611,000 $ 5,495,000 ------------ ------------ Cash and cash equivalents, end of period $ 5,236,000 $ 6,098,000 ============ ============ 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, 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. 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, 2007 annual report on Form 10KSB. 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- holders' equity. Dividend and interest income are accrued as earned. Marketable equity securities and related unrealized gains and losses consist of the following as of July 31, 2007: Market Value $ 17,094,000 Cost Basis 17,159,000 ------------- Net Unrealized Gains (Losses) $ (65,000) ============= Gross unrealized gain $ 627,000 ============= Gross unrealized loss $ (692,000) =============
In accordance with SFAS 115, if the Company determines that a market- able 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 realized loss. The investments are period- ically evaluated to determine if impairment changes are required. As a re- sult of this standard, management recorded impairment losses of $5,000 for the quarter ended July 31, 2007 and $53,000 for the quarter ended July 31, 2006. Note 3 Inventories Inventories at July 31, 2007, consisted of the following: Raw Materials $ 1,747,000 Work in Process 893,000 Finished Goods 396,000 ------------ $ 3,036,000 Less: allowance for obsolete inventory (105,000) ------------ Net Inventories $ 2,931,000 ============
Note 4 Business Segments The following is financial information relating to industry segments:
For the quarter ended July 31, 2007 2006 Net revenue: Pool alarm products $ 187,000 $ 311,000 Keyboard products 380,000 188,000 Security alarm and other products 2,672,000 2,912,000 ------------ ------------ Total net revenue $ 3,239,000 $ 3,411,000 Income from operations: Pool alarm products $ 55,000 $ 82,000 Keyboard products 112,000 49,000 Security alarm and other products 788,000 766,000 ------------ ------------ Total income from operations $ 955,000 $ 897,000 Identifiable assets: Pool alarm products $ 248,000 $ 286,000 Keyboard products 362,000 224,000 Security alarm and other products 4,925,000 4,463,000 Corporate general 23,077,000 21,031,000 ------------ ------------ Total assets $28,612,000 $26,004,000 Depreciation and amortization: Pool alarm products $ 3,000 $ 3,000 Keyboard products 0 0 Security alarm and other products 30,000 30,000 Corporate general 8,000 10,000 ------------ ------------ Total depreciation and amortization $ 41,000 $ 43,000 Capital expenditures: Pool alarm products $ 0 $ 0 Keyboard products 0 0 Security alarm and other products 82,000 10,000 Corporate general 0 0 ------------ ------------ Total capital expenditures $ 82,000 $ 10,000
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 July 31, 2007 ---------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ------------- -------------- --------- Net Income $ 823,000 ============= Basic EPS $ 823,000 5,335,666 $ 0.15 Effect of dilutive securities: Convertible preferred stock 0 20,500 ------------- -------------- --------- Diluted EPS $ 823,000 5,356,166 $ 0.15 For the three months ended July 31, 2006 ---------------------------------------- Income Shares Per-share (Numerator) (Denominator) Amount ------------- -------------- --------- Net Income $ 544,000 ============= Basic EPS $ 544,000 5,342,213 $ 0.10 Effect of dilutive securities: Convertible preferred stock 0 20,500 ------------- -------------- --------- Diluted EPS $ 544,000 5,362,713 $ 0.10
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 July 31, 2007 and 2006. There were no discretionary contributions paid during the quarters ending July 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 Company's audited financial statements and discussion for the fiscal year ended April 30, 2007. Net cash increased $625,000 during the quarter ended July 31, 2007 as com- pared to an increase of $603,000 during the corresponding quarter last year. Accounts receivable decreased $103,000 for the quarter ending July 31, 2007, as compared to a $280,000 decrease for the same quarter last year. The reason for the decrease in cash flow towards accounts receivable is two fold. First, the Company is collecting the receivables at a faster rate than the same period last year and secondly, sales have decreased. At the quarter ended July 31, 2007, 78.14% of the receivables are considered current (less than 45 days) and 7.37% of the total are over 90 days past due. This is in comparison to having 77.05% of the receivables considered current and 9.57% over 90 days past due at July 31, 2006. Inventories decreased $129,000 during the current quarter as compared to a $128,000 increase last year. The main reason for the decrease in cash flow towards inventory during the quarter ended July 31, 2007 is that our sales have decreased and management has adjusted its purchasing practices accordingly. At the quarter ended July 31, 2007 there was an $18,000 decrease in prepaid expenses, while at July 31, 2006, there was also a $18,000 decrease. At the quarter ended July 31, 2007, accounts payable shows a decrease of $76,000 as compared to a decrease of $8,000 for the same quarter the year before. And, as stated before, the Company's sales are down and management has reduced some purchases of raw materials. Accrued expenses decreased $64,000 for the current quarter as compared to a $91,000 decrease for the quarter ended July 31, 2006. Because sales are down, commissions are also down. This is reflected in the accrued expenses. Income tax payable in- creased $398,000 for the quarter ended July 31, 2007. This compares to an increase of $392,000 for the quarter ended July 31, 2006. The larger in- crease accounts for the fact that profit is up for the first quarter of fis- cal year end 2008 when comparing the same quarter for fiscal year end 2007. As for our investment activities, the Company has spent approximately $87,000 on acquisitions of property and equipment for the current fiscal quarter. But in comparison to the corresponding quarter last year, there was activity of only $10,000. One piece of machinery management purchased in the quarter ended July 31, 2007 is a Pick and Place machine. This machine aids us in the production of our pool alarms. The pool alarm has been redesigned and this piece of equipment allows us to manufacture the new pool alarms. By re- designing the pool alarm, the Company is able to use less parts and labor on these products. Additionally, the Company continues to put money into the marketable securities. Much of this has been gone towards the purchase of municipal bonds. Most brokers and analysts believe that interest rates will be lowered in light of the problems that the housing and mortgage industries are currently facing. The idea in purchasing bonds at this time is that the Company can lock-in the higher interest rates, before the rates are reduced. We continue the use of our "money manager" accounts. 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 does not pay com- mission for each transaction. Instead, a quarterly service fee is paid based on the value of the assets. Approximately 23% of the Company's marketable securities are invested in the money manager accounts. Furthermore, the Com- pany continues to purchase back common stock when the opportunity arises. For the quarter ended July 31, 2007, the Company purchased $10,000 worth of treasury stock and $39,000 worth of treasury stock for the quarter ended July 31, 2006. We have been actively searching for stockholders that have been "lost" over the years. The payment of dividends over the last three fiscal years has also prompted many stockholders 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, 2007 2006 --------------------------- Working capital $ 26,667,000 $ 24,249,000 Current ratio 36.988 40.365 Quick ratio 32.591 35.760
Net sales were $3,239,000 for the quarter ended July 31, 2007, which is a de- crease of 5.04% from the corresponding quarter last year. Net sales for the quarter ended July 31, 2006 were $3,411,000. As stated before, the majority of the Company's products are tied to the housing market. The decline in sales for the company is a direct result of the decline in the housing market of late. Cost of goods sold was 47.2% of net sales for the quarter ended July 31, 2007 and the cost of goods sold percentage to net sales was 49.6% for the quarter ended July 31, 2006. Having relatively the same percentage of cost of goods sold from period to period shows that we keep our costs in line. As a result of the slow down in sales, management has compensated by taking extra effort in keeping labor and other manufacturing expenses down. Operating expenses were 23.3% of net sales for the quarter ended July 31, 2007 as compared to 24.1% for the corresponding quarter last year. Having relatively the same percentages for both periods shows that management keeps a close eye on our operating expenses to keep them in line from year to year. Specifically, selling expense has decreased 13.7% for the quarter ending July 31, 2007. This is a result of the decrease in sales because commissions are less when comparing the same numbers to the corresponding quarter last year. Income from operations for the quarter ended July 31, 2007 was at $955,000, which is a 6.5% increase from the corresponding quarter last year, which had income from operations of $897,000. Other income and expenses showed a $302,000 gain for the quarter ended July 31, 2007 as compared to only having a $45,000 gain for the quarter ended July 31, 2006. The main reason for the difference in the amount of the gains from one quarter to the other is that our managed accounts had sold many stocks for gains during the current quarter. Also, management had $48,000 less to book in impaired investments. In turn, net income for the quarter ended July 31, 2007 was at $823,000, a 51.3% increase from the corresponding quarter last year, which showed net income of $544,000. Earnings per share for the quarter ended July 31, 2007 were $0.15 per common share and $0.10 per common share for the quarter ended July 31, 2006. George Risk Industries has three distinct business segments, security alarm products, keyboard, and pool alarm products that are subject to disclosure under SFAS No. 131. See the notes to the financial statements in order to examine the three segments. As for new products, a new self-contained water leak detector has just started production this last month. This detector is perfect for the home- owner as it contains a built in sounder and can run off of a 9-volt battery or the alarm panel. It can be mounted on a wall or directly to an appliance where water damage may occur. Sales of this product are expected to be fair, but management is looking at marketing this product to larger retail outlets, which could increase sales immensely. Engineering is currently developing a version of this leak detector for the United Kingdom. The need for this kind of product has come about as a result of flooding in that country over the past summer. Due to popular demand, our 189 open loop series pool alarm is being brought back into production. The 189-series pool alarm was discontinued several years ago, due to minimal sales. The open loop feature is being designed on the new pool alarm circuit board with the 289-series closed loop. The in- staller will be able to use it either open or closed with a simple jumper pin change. The purchase of the pick and place machine, as discussed earlier, allows us to make this interchangeable circuit pool alarm. The wireless pool alarm and wireless contact switch designs are nearing com- pletion. These products will have to be submitted to the FCC for approval. Also, work on the various molds to manufacture these wireless products is being done. Production on these wireless products is expected to begin in the spring of 2008 A new version of our Glass Guard window sensor is in its final stages of development. Management has created this sensor in direct response to cust- omer feedback about how our offshore competitors have long delays in de- livering this type of product. Research and Development continues on the Pump Guard, a water valve con- troller and other wireless sensors. Specific research and development is being done for the wireless sensor market in Iceland. Engineering is also upgrading the CC-01 Current Controller. The CC-01 is used to automatically turn on closed and/or cabinet lights when the door is opened. The new ver- sion will be able to handle more current and inductive load and is currently at UL for approval. 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. At George Risk Industries' latest Board of Director's meeting, which was held on September 6, 2007, a dividend of $0.17 per common share was declared. This is an increase of $.02 per share over the last dividend declaration. This dividend will be paid to stockholders of record as of September 30, 2007, and will be paid by October 31, 2007. 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 July 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 09-14-2007 By: /s/ Kenneth R. Risk Kenneth R. Risk President and Chairman of the Board Date 09-14-2007 By: /s/ Stephanie M. Risk Stephanie M. Risk Chief Financial Officer and Controller EX-31 2 ex31-1july2007.txt CERTIFICATION PURSUANT TO RULE 13A-14(A) OF CEO Exhibit 31.1 CERTIFICATION OF KENNETH R. RISK, CHIEF EXECUTIVE OFFICER, PURSUANT TO RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934 SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Kenneth R. Risk, certify that: (1) I have reviewed this quarterly report on Form 10QSB 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 small business issuer as of, and for, the periods presented in this report; (4) The small business issuer's other certifying officer and I are 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 small business issuer 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 small business issuer, including its consolidated subsidiaries, 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 small business issuer's dis- closure 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 small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter that has mater- ially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and (5) The small business issuer's other certifying officer and I have dis- closed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer'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 small business issuer's ability to record, process, summarize and report finan- cial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting. Date: September 14, 2007 By: /s/ Kenneth R. Risk Kenneth R. Risk Chief Executive Officer EX-31 3 ex31-2july2007.txt CERTIFICATION PURSUANT TO RULE 13A-14(A) OF CFO Exhibit 31.2 CERTIFICATION OF STEPHANIE M. RISK, CHIEF FINANCIAL OFFICER, PURSUANT TO RULE 13a-14 OF THE SECURITIES EXCHANGE ACT OF 1934 SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Stephanie M. Risk, certify that: (1) I have reviewed this quarterly report on Form 10QSB 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 small business issuer as of, and for, the periods presented in this report; (4) The small business issuer's other certifying officer and I are re- sponsible 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 small business issuer and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our super- vision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, 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 small business issuer's dis- closure 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 small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter that has mater- ially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and (5) The small business issuer's other certifying officer and I have dis- closed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer'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 small business issuer's ability to record, process, summarize and report finan- cial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting. Date: September 14, 2007 By: /s/ Stephanie M. Risk Stephanie M. Risk Chief Financial Officer EX-32 4 ex32-1july2007.txt CERTIFICATION PURSUANT TO 18 U.S.C. 1350 OF CEO Exhibit 32.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Kenneth R. Risk, 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 10QSB dated July 31, 2007 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 10QSB fairly presents in all material respects the financial condition and results of operations of George Risk Industries, Inc. Date: September 14, 2007 By: /s/ Kenneth R. Risk Kenneth R. Risk President and Chief Executive Officer EX-33 5 ex32-2july2007.txt CERTIFICATION PURSUANT TO 18 U.S.C. 1350 OF CFO Exhibit 32.2 CERTIFICATION OF CHIEF 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, 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 10QSB dated July 31, 2007 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 10QSB fairly presents in all material respects the financial condition and results of operations of George Risk Industries, Inc. Date: September 14, 2007 By: /s/ Stephanie M. Risk Stephanie M. Risk Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----