GEORGE RISK INDUSTRIES, INC.

GEORGE RISK INDUSTRIES, INC. designs, manufactures, and sells custom computer keyboards, proximity switches, security alarm components and systems, pool access alarms, EZ Duct wire covers, water sensors, electronic switching devices, high security switches, and cable and wire installation tools. The company was incorporated in 1967 in Colorado. The Security sales division is a major part of the business, accounting for approximately 96.0% of net revenues. Products from this division are sold to distributors and alarm dealers/installers, serving approximately 1,000 current customers. Two key distributors are ADI Global Distribution, LLC (ADI), which accounts for approximately 37.1% of the Company's security product sales, and Anixter, Inc., which accounts for another 23.5% of security division sales. The Company has a written agreement with ADI, signed in February 2011, covering product terms, purchasing, payment terms, and other provisions. The keyboard and proximity switch division serves approximately 300 customers. These products are primarily sold to original equipment manufacturers, built to their specific requirements, and to distributors who sell off-the-shelf keyboards of proprietary design. The Company faces intense competition in both its keyboard/proximity and security/burglar alarm product lines. The security/burglar alarm division competes with approximately six major competitors, emphasizing price, product design, quality, customization, and products made in the USA. In the keyboard/proximity division, competitors are larger companies with automated production facilities. GEORGE RISK INDUSTRIES, INC. focuses on small custom order sales, which many competitors decline or discourage.