George Risk Industries, Inc. Liquidation Value

George Risk Industries (RSKIA) presents a strongly positive liquidation recovery posture as of January 31, 2026, driven overwhelmingly by a large, liquid investment portfolio that dwarfs its modest liability stack. Total assets of $68.4M sit against total liabilities of only $7.7M, yielding reported stockholders' equity of $60.7M. Under liquidation-lens haircuts, recovery to equity remains firmly positive.

The dominant asset is the marketable securities portfolio carried at fair value of $41.3M (cost basis $28.4M), consisting of publicly traded equity securities ($31.2M fair value, Level 1), municipal bonds ($8.7M, Level 2), money markets/CDs ($1.3M, Level 1), and REITs ($0.07M, Level 2). These are mark-to-market assets; liquidation recovery at or near fair value is credible for the equity and money market components, with municipal bonds subject to rate-driven bid-ask friction but largely recoverable given maturities extending to 2050. Under the lens, applying a modest 95% recovery to the full portfolio yields approximately $39.3M.

Cash and equivalents of $4.5M recover at 100%. Net accounts receivable of $4.9M (gross $4.9M less $30K allowance) recover at 90-95%, yielding approximately $4.4M-$4.7M. The company discloses 19.5% of receivables were over 90 days at January 31, 2026, but subsequent collections reduced that to 7% by February 2026, limiting credit concern.

Inventory net of $11.6M (gross $12.0M less $386K obsolescence reserve) recovers at approximately 60%, yielding approximately $7.0M. PP&E net of $2.0M recovers at 50-70%, yielding approximately $1.0M-$1.4M. Finite-lived intangibles of $816K recover at 0% under the lens.

Total estimated liquidation asset recovery: approximately $56M-$58M. Against total liabilities at face value of $7.7M (current liabilities $4.5M including $3.7M declared dividends payable and $487K accrued; non-current deferred tax liability of $3.1M), estimated net recovery to equity is approximately $48M-$50M, well in excess of zero.

A custom-tagged federal solar tax credit receivable (RSKIA:FederalSolarTaxCreditReceivable) of $2.3M is disclosed in the notes as a balance sheet receivable representing remaining transferable IRC Section 48 credits purchased under the Inflation Reduction Act. This is not separately tagged in standard XBRL but is disclosed in MD&A and Note 1. Its realizability is contingent on tax liability sufficiency across amended prior-year returns; recovery is probable but not guaranteed at face.

QoQ change from the October 31, 2025 filing: total fair value of investments increased from $39.9M to $41.3M, driven by equity securities appreciation ($30.6M to $31.2M) and municipal bond additions ($8.0M to $8.7M). Inventory increased modestly from $11.1M to $11.6M. Cash declined from approximately $5.8M (implied from prior filing) to $4.5M, reflecting the annual $4.5M dividend outflow. The deferred tax liability of $3.1M, primarily attributable to unrealized investment gains, would crystallize on liquidation and reduce net recovery, though this is partially embedded in the MFFAIS OLV figure.