10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2018

or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________________________________________ to ________________________________________________

Commission File Number: 0-11306

VALUE LINE, INC.

(Exact name of registrant as specified in its charter)

New York	13-3139843
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
551 Fifth Avenue, New York, New York	10176-0001
(Address of principal executive offices)	(Zip Code)

(212) 907-1500

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 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 has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]   Accelerated filer [  ]   Non-accelerated filer [X]

Smaller reporting company [  ]   Emerging growth company [  ]

         (Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

      Yes [  ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at August 31, 2018
Common stock, $0.10 par value	9,689,334 shares

VALUE LINE INC.

TABLE OF CONTENTS

		Page No.
	PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Condensed Financial Statements
	Consolidated Condensed Balance Sheets as of July 31, 2018 and April 30, 2018	3
	Consolidated Condensed Statements of Income for the three months ended July 31, 2018 and July 31, 2017	4
	Consolidated Condensed Statements of Comprehensive Income for the three months ended July 31, 2018 and July 31, 2017	5
	Consolidated Condensed Statements of Cash Flows for the three months ended July 31, 2018 and July 31, 2017	6
	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2018	7
	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2017	8
	Notes to Consolidated Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	32
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 5.	Other Information	33
Item 6.	Exhibits	34
	Signatures	35

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Balance Sheets

(in thousands, except share amounts)

	July 31,			April 30,
	2018			2018
	(unaudited)
Assets
Current Assets:
Cash and cash equivalents (including short term investments of $4,084 and $4,982, respectively)	$	4,992		$	5,941
Securities available-for-sale		18,870			17,844
Accounts receivable, net of allowance for doubtful accounts of $15 and $14, respectively		1,075			1,049
Prepaid and refundable income taxes		20			457
Prepaid expenses and other current assets		1,220			1,270
Total current assets		26,177			26,561
Long term assets:
Investment in EAM Trust		58,331			58,233
Restricted money market investment		469			469
Property and equipment, net		1,312			1,371
Capitalized software and other intangible assets, net		110			154
Total long term assets		60,222			60,227
Total assets	$	86,399		$	86,788
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities	$	1,220		$	1,926
Accrued salaries		1,293			1,387
Dividends payable		1,841			1,841
Accrued taxes on income		328			-
Unearned revenue		18,878			19,717
Total current liabilities		23,560			24,871
Long term liabilities:
Unearned revenue		5,251			5,808
Deferred charges		831			854
Deferred income taxes		11,573			11,714
Total long term liabilities		17,655			18,376
Total liabilities		41,215			43,247
Shareholders' Equity:
Common stock, $0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares		1,000			1,000
Additional paid-in capital		991			991
Retained earnings		46,165			44,902
Treasury stock, at cost (310,666 and 308,380 shares, respectively)		(4,181	)		(4,135	)
Accumulated other comprehensive income, net of tax		1,209			783
Total shareholders' equity		45,184			43,541
Total liabilities and shareholders' equity	$	86,399		$	86,788

The accompanying notes are an integral part of these consolidated condensed financial statements.

3

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Income

(in thousands, except share & per share amounts)

(unaudited)

	For the Three Months Ended
	July 31,
	2018		2017
Revenues:
Investment periodicals and related publications	$	7,292	$	7,440
Copyright data fees		1,679		1,474
Total publishing revenues		8,971		8,914
Expenses:
Advertising and promotion		920		795
Salaries and employee benefits		4,479		4,500
Production and distribution		1,315		1,395
Office and administration		987		1,059
Total expenses		7,701		7,749
Income from operations		1,270		1,165
Revenues and profits interests in EAM Trust		2,271		2,136
Income from securities transactions, net		114		96
Income before income taxes		3,655		3,397
Income tax provision		551		1,182
Net income	$	3,104	$	2,215
Earnings per share, basic & fully diluted	$	0.32	$	0.23
Weighted average number of common shares		9,689,334		9,709,580

The accompanying notes are an integral part of these consolidated condensed financial statements.

4

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Comprehensive Income

(in thousands)

(unaudited)

	For the Three Months Ended
	July 31,
	2018		2017
Net income	$	3,104	$	2,215
Other comprehensive income, net of tax:
Change in unrealized gains on securities, net of taxes		426		92
Other comprehensive income		426		92
Comprehensive income	$	3,530	$	2,307

The accompanying notes are an integral part of these consolidated condensed financial statements.

5

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Cash Flows

(in thousands)

(unaudited)

	For the Three Months Ended
	July 31,
	2018			2017
Cash flows from operating activities:
Net income	$	3,104		$	2,215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		108			227
Deferred income taxes		(271	)		(216	)
Deferred rent		(23	)		259
Other, net		(15	)		(15	)
Changes in operating assets and liabilities:
Unearned revenue		(1,396	)		(814	)
Accounts payable & accrued expenses		(706	)		(391	)
Accrued salaries		(94	)		94
Accrued taxes on income		344			1,367
Prepaid and refundable income taxes		437			2
Prepaid expenses and other current assets		50			275
Accounts receivable		(26	)		(25	)
Total adjustments		(1,592	)		763
Net cash provided by operating activities		1,512			2,978
Cash flows from investing activities:
Purchases of fixed income securities classified as available-for-sale		(2,123	)		(2,386	)
Proceeds from sales of fixed income securities classified as available-for-sale		1,637			1,394
Non-voting revenues interest in EAM Trust		(1,968	)		(1,978	)
Non-voting profits interest in EAM Trust		(303	)		(158	)
Distributions received from EAM Trust		2,188			1,920
Acquisition of property and equipment		(5	)		(230	)
Net cash used in investing activities		(574	)		(1,438	)
Cash flows from financing activities:
Purchase of treasury stock at cost		(46	)		(40	)
Dividends paid		(1,841	)		(1,748	)
Net cash used in financing activities		(1,887	)		(1,788	)
Net change in cash and cash equivalents		(949	)		(248	)
Cash, cash equivalents and restricted cash at beginning of period		6,410			7,026
Cash, cash equivalents and restricted cash at end of period	$	5,461		$	6,778

The accompanying notes are an integral part of these consolidated condensed financial statements.

6

Part I - Financial Information

Item 1. Financial Statements

                  Value Line, Inc.

     Consolidated Condensed Statement of Changes in Shareholders' Equity

                    For the Three Months Ended July 31, 2018

                    (in thousands, except share amounts)

                (unaudited)

	Common stock				Additional paid-in-		Treasury stock						Retained			Accumulated other comprehensive
	Shares		Amount		capital		Shares			Amount			earnings			income		Total
Balance at April 30, 2018		10,000,000	$	1,000	$	991		(308,380	)	$	(4,135	)	$	44,902		$	783	$	43,541
Net income														3,104					3,104
Change in unrealized gains on securities, net of taxes																	426		426
Purchase of treasury stock								(2,286	)		(46	)							(46	)
Dividends declared														(1,841	)				(1,841	)
Balance at July 31, 2018		10,000,000	$	1,000	$	991		(310,666	)	$	(4,181	)	$	46,165		$	1,209	$	45,184

Dividends declared per common share were $0.19 for the three months ending July 31, 2018.

The accompanying notes are an integral part of these consolidated condensed financial statements.

7

Part I - Financial Information

Item 1. Financial Statements

                  Value Line, Inc.

     Consolidated Condensed Statement of Changes in Shareholders' Equity

                    For the Three Months Ended July 31, 2017

                    (in thousands, except share amounts)

                (unaudited)

	Common stock				Additional paid-in-		Treasury stock						Retained			Accumulated other comprehensive
	Shares		Amount		capital		Shares			Amount			earnings			income		Total
Balance at April 30, 2017		10,000,000	$	1,000	$	991		(288,335	)	$	(3,781	)	$	39,186		$	458	$	37,854
Net income														2,215					2,215
Change in unrealized gains on securities, net of taxes																	92		92
Purchase of treasury stock								(2,353	)		(40	)							(40	)
Dividends declared														(1,748	)				(1,748	)
Balance at July 31, 2017		10,000,000	$	1,000	$	991		(290,688	)	$	(3,821	)	$	39,653		$	550	$	38,373

Dividends declared per common share were $0.18 for the three months ending July 31, 2017.

The accompanying notes are an integral part of these consolidated condensed financial statements.

8

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Note 1 - Organization and Summary of Significant Accounting Policies:

Value Line, Inc. ("Value Line" or "VLI", and collectively with its subsidiaries, the “Company”) is incorporated in the State of New York. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. The Company's primary business is producing investment periodicals and related publications and making available copyright data including certain Value Line trademarks and Value Line Proprietary Ranking System information to third parties under written agreements for use in third party managed and marketed investment products. The Company maintains a significant investment in the EULAV Asset Management LLC ("EAM") from which it received a non-voting revenues interest and a non-voting profits interest. EAM was established to provide investment management services to the Value Line Mutual Funds ("Value Line Funds" or the "Funds").

The Consolidated Condensed Balance Sheets as of July 31, 2018 and April 30, 2018, which have been derived from the unaudited interim Consolidated Condensed Financial Statements and the audited Consolidated Financial Statements, respectively, were prepared following the interim reporting requirements of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying Unaudited Interim Consolidated Condensed Financial Statements contain all adjustments (consisting of normal recurring accruals except as noted below) considered necessary for a fair presentation. This report should be read in conjunction with the audited financial statements and footnotes contained in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2018 filed with the SEC on July 26, 2018 (the “Form 10-K”). Results of operations covered by this report may not be indicative of the results of operations for the entire year.

Use of Estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

Principles of Consolidation:

The Company follows the guidance in the Financial Accounting Standards Board's ("FASB") Topic 810 “Consolidation” to determine if it should consolidate its investment in a variable interest entity ("VIE"). A VIE is a legal entity in which either (i) equity investors do not have sufficient equity investment at risk to enable the entity to finance its activities independently or (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity's economic performance. A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary. The determination of a controlling financial interest in a VIE is based on a qualitative assessment to identify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a VIE and the Company has determined it is not the primary beneficiary of a VIE (see Note 3).

In accordance with FASB's Topic 810, the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. On December 23, 2010, the Company completed the Restructuring Transaction and deconsolidated the related affiliates in accordance with FASB's Topic 810. As part of the Restructuring Transaction, the Company received a significant non-voting revenues interest (excluding distribution revenues) and a significant non-voting profits interest in the new entity, EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”). The Company relied on the guidance in FASB's ASC Topics 323 and 810 in its determination not to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Condensed Statements of Income.

Revenue Recognition:

Depending upon the product, subscription fulfillment for Value Line periodicals and related publications is available in print or digitally, via internet access. The length of a subscription varies by product and offer received by the subscriber. Generally, subscriptions are offered as annual subscriptions. Subscription revenues, net of discounts, are recognized ratably on a straight line basis when the product is served to the client over the life of the subscription. Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheets are shown as unearned revenue within current and long-term liabilities.

Copyright data revenues are derived from providing certain Value Line trademarks and the Value Line Proprietary Ranking System information to third parties under written agreements for use in selecting securities for third party marketed products, including unit investment trusts, annuities and exchange traded funds ("ETFs"). The Company earns asset-based copyright data fees as specified in the individual agreements. Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value.

Investment in Unconsolidated Entities:

The Company accounts for its investment in its unconsolidated entity, EAM, using the equity method of accounting in accordance with FASB’s ASC 323. The equity method is an appropriate means of recognizing increases or decreases measured by GAAP in the economic resources underlying the investments. Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee.

9

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a "non-voting revenues interest" and a "non-voting profits interest" in EAM as defined in the EAM Trust Agreement. The non-voting revenues interest entitles the Company to receive a range of 41% to 55%, based on the amount of EAM’s adjusted gross revenues, excluding EULAV Securities' distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive 50% of EAM's profits, subject to certain limited adjustments as defined in the EAM Trust Agreement (“Profits Interest”). The Revenues Interest and at least 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. Subsequent to the Restructuring Date, the Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary EULAV Securities. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction. Although the Company does not have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, the Company has a contractual right to receive its share of EAM's revenues and profits.

Recent Accounting Pronouncements:

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02").  The core principle of Topic 842 requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements.  The amendments in ASU 2016-2 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  The guidance is required to be adopted at the earliest period presented using a modified retrospective approach.  The adoption of ASU 2016-02 will not have a material impact on our consolidated condensed financial statements and related disclosures.

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments     (a consensus of the Emerging Issues Task Force) (“ASU 2016-15”). The amendments in ASU 2016-15 address eight specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC Topic 230, Statement of Cash Flows. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has adopted ASU 2016-15 in the first quarter of fiscal 2019.  As a result, it has reclassified, within the Consolidated Condensed Statement of Cash Flows, $2.3 million and $2.1 million, for the three months ended July 31, 2018 and July 31, 2017, respectively, of EAM non-voting revenues interest and profits interest, from operating activities to investing activities.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or cumulative effect transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.  The Company has adopted ASU No. 2014-09 in the first quarter of fiscal 2019, which does not have a material impact on the Company's consolidated condensed financial statements and related disclosures.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230):  Restricted Cash (a consensus of the FASB Emerging Issues Task Force)".  This ASU requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents.   ASU No. 2016-18 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.  The Company has adopted ASU No. 2016-18 in the first quarter of fiscal 2019, which does not have a material impact on the Company's consolidated condensed financial statements and related disclosures.  

On June 21, 2018, the United States Supreme Court reversed the 1992 ruling in Quill, which protected firms mailing items by common carrier into a state where it had no physical presence from having to collect sales tax in such state.  The Company is evaluating the impact of the 2018 ruling (South Dakota vs. Wayfair) on its operations.

10

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Valuation of Securities:

The Company's securities classified as cash equivalents and available-for-sale consist of shares of money market funds that invest primarily in short-term U.S. Government securities and investments in equities including ETFs and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB's ASC 820. The securities classified as available-for-sale reflected in the Consolidated Condensed Balance Sheets are valued at market and unrealized gains and losses, net of applicable taxes, are reported as a separate component of shareholders' equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings as of the trade date and are determined on the identified cost method.

The Company classifies its securities available-for-sale as current assets to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise.

Market valuations of securities listed on a securities exchange and ETF shares are based on the closing sales prices on the last business day of each month. The market value of the Company's fixed maturity U.S. Government debt securities is determined utilizing publicly quoted market prices. Cash equivalents consist of investments in money market funds that invest primarily in U.S. Government securities valued in accordance with rule 2a-7 under the 1940 Act.

The Fair Value Measurements Topic of FASB's ASC defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fair Value Measurements Topic established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical investments

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The following summarizes the levels of fair value measurements of the Company’s investments:

	As of July 31, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,084	$	-	$	-	$	4,084
Securities available-for-sale		18,870		-		-		18,870
	$	22,954	$	-	$	-	$	22,954

	As of April 30, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,982	$	-	$	-	$	4,982
Securities available-for-sale		17,844		-		-		17,844
	$	22,826	$	-	$	-	$	22,826

The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended July 31, 2018 and April 30, 2018, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities subject to fair value measurement.

Advertising expenses:

The Company expenses advertising costs as incurred.

Income Taxes:

The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB's ASC. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. The Company adopted the provisions of ASU 2015-17, Income taxes (Topic 740) during the first quarter of fiscal 2018 and continues to classify all deferred taxes as long-term liabilities on the Consolidated Condensed Balance Sheets.

11

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

The Income Tax Topic of the FASB's ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. As of July 31, 2018, management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is no material impact to the Company's financial statements.

Earnings per share:

Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. Any shares that are reacquired during the period are weighted for the portion of the period that they are outstanding. The Company does not have any potentially dilutive common shares from outstanding stock options, warrants, restricted stock, or restricted stock units.

Cash and Cash Equivalents:

For purposes of the Consolidated Condensed Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than three months to be cash and cash equivalents. As of July 31, 2018 and April 30, 2018, cash equivalents included $4,084,000 and $4,982,000, respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.

Note 2 - Investments:

Securities Available-for-Sale:

Investments held by the Company and its subsidiaries are classified as securities available-for-sale in accordance with FASB's ASC 320, Investments - Debt and Equity Securities. All of the Company's securities classified as available-for-sale were readily marketable or had a maturity of twelve months or less and are classified as current assets on the Consolidated Condensed Balance Sheets.

Equity Securities:

Equity securities classified as available-for-sale on the Consolidated Condensed Balance Sheets, consist of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes and ETFs that hold preferred shares primarily of financial institutions.

As of July 31, 2018 and April 30, 2018, the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), INVESCO Financial Preferred ETF (PGF), Select Utilities Select Sector SPDR ETF (XLU), First Trust Value Line 100 ETF (FVL) and Proshares Trust S&P 500 Dividend Aristocrats ETF (NOBL) was $8,385,000, and the fair value was $9,917,000 and $9,379,000, respectively.

There were no sales or proceeds from sales of equity securities during the three months ended July 31, 2018 or July 31, 2017. The increase in gross unrealized gains on equity securities classified as available-for-sale of $538,000, net of deferred taxes of $113,000 was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet at July 31, 2018. The increase in gross unrealized gains on equity securities classified as available-for-sale of $152,000, net of deferred taxes of $54,000 was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet at July 31, 2017.

The changes in the value of equity securities investments are recorded in Other Comprehensive Income in the Consolidated Condensed Financial Statements. Realized gains and losses are recorded as of the trade date in the Consolidated Condensed Statements of Income when securities are sold, mature or are redeemed. As of July 31, 2018 and April 30, 2018, accumulated other comprehensive income included unrealized gains of $1,532,000 and $994,000, net of deferred taxes of $322,000 and $209,000, respectively.

The carrying value and fair value of securities available-for-sale at July 31, 2018 were as follows:

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	1,532	$	-	$	9,917

The carrying value and fair value of securities available-for-sale at April 30, 2018 were as follows:

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	994	$	-	$	9,379

12

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Government Debt Securities (Fixed Income Securities):

Fixed income securities consist of certificates of deposits and securities issued by federal, state, and local governments within the United States. The aggregate cost and fair value at July 31, 2018 of fixed income securities classified as available-for-sale were as follows:

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	8,705	$	6	$	(7	)	$	8,704
Due 1 year through 5 years		250		-		(1	)		249
Total investment in government debt securities	$	8,955	$	6	$	(8	)	$	8,953

The aggregate cost and fair value at April 30, 2018 of fixed income securities classified as available-for-sale were as follows:

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	7,868	$	10	$	(12	)	$	7,866
Due 1 year through 5 years		600		-		(1	)		599
Total investment in government debt securities	$	8,468	$	10	$	(13	)	$	8,465

Proceeds from maturities and sales of government debt securities classified as available-for-sale during the three months ended July 31, 2018 and July 31, 2017, were $1,637,000 and $1,394,000, respectively. The decrease in gross unrealized losses of $2,000 on fixed income securities classified as available-for-sale net of deferred income tax of $1,000, was included in in Shareholders' Equity on the Consolidated Condensed Balance Sheet as of July 31, 2018. The increase in gross unrealized losses of $10,000 on fixed income securities classified as available-for-sale net of deferred income tax of $4,000, was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet as of July 31, 2017. As of July 31, 2018 and April 30, 2018, accumulated other comprehensive income included unrealized losses of $1,000 and $3,000, net of deferred tax benefits of $200 and $600, respectively.

The average yield on the Government debt securities classified as available-for-sale at July 31, 2018 and April 30, 2018 was 1.7% and 1.24%, respectively.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended July 31,
($ in thousands)	2018		2017
Dividend income	$	67	$	52
Interest income		35		25
Other		12		19
Total income from securities transactions, net	$	114	$	96

Investment in Unconsolidated Entities:

Equity Method Investment:

As of July 31, 2018 and April 30, 2018, the Company's investment in EAM Trust, on the Consolidated Condensed Balance Sheets was $58,331,000 and $58,233,000, respectively.

The value of VLI’s investment in EAM at July 31, 2018 and April 30, 2018 reflects the fair value of contributed capital of $55,805,000 at inception which included $5,820,000 of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI, plus VLI's share of non-voting revenues and non-voting profits from EAM less distributions, made quarterly to VLI by EAM, during the period subsequent to its initial investment through the dates of the Consolidated Condensed Balance Sheets.

It is anticipated that EAM will have sufficient liquidity and earn enough profit to conduct its current and future operations so the management of EAM will not need additional funding.

13

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

The Company monitors its Investment in EAM Trust for impairment to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. Impairment indicators of an impairment could include, but are not limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital and regulatory requirements. EAM did not record any impairment losses for its assets during the fiscal years 2019 or 2018.

The components of EAM’s investment management operations, provided to the Company by EAM, were as follows:

	Three Months Ended July 31,
($ in thousands) (unaudited)	2018		2017
Investment management fees earned from the Value Line Funds, net of fee waivers	$	4,109	$	3,958
12b-1 fees and other fees, net of fee waivers	$	1,704	$	1,549
Other income	$	71	$	55
Investment management fee waivers	$	111	$	154
12b-1 fee waivers	$	159	$	235
Value Line’s non-voting revenues interest	$	1,968	$	1,978
EAM's net income (1)	$	606	$	316

(1) Represents EAM's net income, after giving effect to Value Line’s non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

	July 31,			April 30,
($ in thousands)	2018			2018
	(unaudited)
EAM's total assets	$	60,278		$	60,203
EAM's total liabilities (1)		(3,378	)		(3,128	)
EAM's total equity	$	56,900		$	57,075

(1) At July 31, 2018 and April 30, 2018, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues interest and non-voting profits interest of $2,279,000 and $2,113,000, respectively.

Note 3 - Variable Interest Entity

The Company retained a non-voting revenues interest and a 50% non-voting profits interest in EAM, which was formed, as a result of the Restructuring Transaction on December 23, 2010, to carry on the asset management and mutual fund distribution businesses formerly conducted by the Company. EAM is considered to be a VIE. The Company makes its determination for consolidation of EAM as a VIE based on a qualitative assessment of the purpose and design of EAM, the terms and characteristics of the variable interests in EAM, and the risks EAM is designed to originate and pass through to holders of variable interests. Other than EAM, the Company does not have an interest in any other VIEs.

The Company has determined that it does not have a controlling financial interest in EAM because it does not have the power to direct the activities of EAM that most significantly impact its economic performance. Value Line does not hold any voting stock of EAM and it does not have any involvement in the day-to-day activities or operations of EAM. Although the EAM Trust Agreement provides Value Line with certain consent rights and contains certain restrictive covenants related to the activities of EAM, these are considered to be protective rights and therefore Value Line does not maintain control over EAM.

In addition, although EAM is expected to be profitable, there is a risk that it could operate at a loss. While all of the profit interest shareholders in EAM are subject to variability based on EAM’s operations risk, Value Line’s non-voting revenues interest in EAM is a preferred interest in the revenues of EAM, rather than a profits interest in EAM, and Value Line accordingly believes it is subject to proportionately less risk than other holders of the profits interests.

The Company has not provided any explicit or implicit financial or other support to EAM other than what was contractually agreed to in the EAM Trust Agreement. Value Line has no obligation to fund EAM in the future and, as a result, has no exposure to loss beyond its initial investment and any undistributed revenues and profits interests retained in EAM. The following table presents the total assets of EAM, the maximum exposure to loss due to involvement with EAM, as well as the value of the assets and liabilities the Company has recorded on its Consolidated Condensed Balance Sheets for its interest in EAM.

			Value Line
($ in thousands)	VIE Assets		Investment in EAM Trust (1)		Liabilities		Maximum Exposure to Loss
As of July 31, 2018 (unaudited)	$	60,278	$	58,331	$	-	$	58,331
As of April 30, 2018	$	60,203	$	58,233	$	-	$	58,233

(1) Reported within Long Term Assets on the Consolidated Condensed Balance Sheets.

14

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Note 4 - Supplementary Cash Flows Information:

Reconciliation of Cash, Cash Equivalents, and Restricted Cash:

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Condensed Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Condensed Statement of Cash Flows.

	Three months ended July 31,
($ in thousands)	2018		2017
Cash and cash equivalents	$	4,992	$	6,309
Restricted cash		469		469
Total cash, cash equivalents, and restricted cash shown in the Consolidated Condensed Statement of Cash Flows	$	5,461	$	6,778

Income Tax Payments:

The Company made income tax payments as follows:

	Three months ended July 31,
($ in thousands)	2018		2017
State and local income tax payments	$	102	$	27
Federal income tax payments to the Parent	$	-	$	-

Note 5 - Employees' Profit Sharing and Savings Plan:

Substantially all employees of the Company and its subsidiaries are members of the Value Line, Inc. Profit Sharing and Savings Plan (the "Plan"). In general, this is a qualified, contributory plan which provides for a discretionary annual Company contribution which is determined by a formula based on the salaries of eligible employees and the amount of consolidated net operating income as defined in the Plan. For the three months ended July 31, 2018 and July 31, 2017, the estimated profit sharing plan contributions, which are included as expenses in salaries and employee benefits in the Consolidated Condensed Statements of Income, were $107,000 in both years.

Note 6 - Comprehensive Income:

The FASB's ASC Comprehensive Income topic requires the reporting of comprehensive income in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that otherwise would not be recognized in the calculation of net income.

As of July 31, 2018 and July 31, 2017, the Company held equity securities consisting primarily of ETFs with high relative dividend yields that are classified as securities available-for-sale on the Consolidated Condensed Balance Sheets. The change in valuation of these securities, net of deferred income taxes, has been recorded in accumulated other comprehensive income in the Company's Consolidated Condensed Balance Sheets.

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the three months ended July 31, 2018 are as follows:

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	539	$	(113	)	$	426
	$	539	$	(113	)	$	426

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the three months ended July 31, 2017 are as follows:

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	142	$	(50	)	$	92
	$	142	$	(50	)	$	92

Note 7 - Related Party Transactions:

Investment Management (overview):

The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company no longer reports this operation as a separate business segment, although it still maintains a significant interest in the cash flows generated by this business and will receive non-voting revenues and non-voting profits interests forward, as discussed below.

Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2018, were $2.66 billion, 7% above total assets of $2.49 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2017.

15

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues is calculated each fiscal quarter. The applicable recent non-voting revenues interest percentage for the first quarter of fiscal 2019 was 50.3%.

EAM Trust - VLI's non-voting revenues and non-voting profits interests:

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business. EAM currently has no separately managed account fees. The Company recorded income from its non-voting revenues interest and its non-voting profits interests in EAM as follows:

	Three Months Ended July 31,
($ in thousands)	2018		2017
Non-voting revenues interest in EAM	$	1,968	$	1,978
Non-voting profits interest in EAM		303		158
	$	2,271	$	2,136

At July 31, 2018, the Company's investment in EAM includes a receivable of $2,279,000 representing the quarterly distribution of the non-voting revenues share and non-voting profits share.

Transactions with Parent:

During the three months ended July 31, 2018 and July 31, 2017, the Company was reimbursed $73,000 and $70,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent Company, Arnold Bernhard and Co., Inc. ("Parent"). There were no receivables from the Parent on the Consolidated Condensed Balance Sheets at July 31, 2018 and April 30, 2018.

The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the two Companies between them. The Company didn't make any federal tax payments to the Parent during the three months ended July 31, 2018 or July 31, 2017.

As of July 31, 2018, the Parent owned 89.11% of the outstanding shares of common stock of the Company.

Note 8 - Federal, State and Local Income Taxes:

In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following:

	Three Months Ended July 31,
($ in thousands)	2018			2017
Current tax expense:
Federal	$	734		$	1,319
State and local		88			79
Current tax expense		822			1,398
Deferred tax expense (benefit):
Federal		-			(186	)
State and local		(271	)		(30	)
Deferred tax expense (benefit):		(271	)		(216	)
Income tax provision	$	551		$	1,182

On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the "Tax Act") was enacted. The Tax Act lowers the U.S. federal income tax rate ("Federal Tax Rate") from 35% to 21% effective January 1, 2018. Accordingly, the Company computed Federal income tax expense for the fiscal quarter ended July 31, 2018 using the Federal Tax Rate of 21%. The 21% Federal Tax Rate applies to the fiscal year ending April 30, 2019 and each year thereafter.

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2018 and July 31, 2017 were 15.07% and 34.80%, respectively. The decline in the overall effective tax rate during the quarter ended July 31, 2018 is primarily a result of a decline in Federal Tax Rate and a decrease in the state and local allocation factors on the deferred tax on the unrealized gain from deconsolidation of EAM. In fiscal 2018 the U.S. statutory federal corporate income tax rate was reduced from 35% to 21% on the Company’s long-term deferred tax liabilities, resulting in a tax benefit of 54.51% of pre-tax income for the twelve months ended April 30, 2018, primarily attributable to the effect on the long-term deferred tax liability. The Company re-calculated its net deferred tax assets and liabilities using the Federal Tax Rate under the Tax Act. The effect of the re-calculation was reflected entirely in the third quarter ended January 31, 2018 (the period that included the enactment date) and was allocated directly to both current and deferred income tax expenses from continuing operations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to the new tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

16

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Deferred income taxes, a liability, are provided for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effect of temporary differences giving rise to the Company's long-term deferred tax liability are as follows:

	July 31,			April 30,
($ in thousands)	2018			2018
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	10,660		$	10,658
Deferred non-cash post-employment compensation		(372	)		(372	)
Depreciation and amortization		108			119
Unrealized loss (gain) on securities held for sale		321			208
Deferred charges		(182	)		(331	)
Other		72			210
Total federal tax liability		10,607			10,492
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,027			1,299
Deferred non-cash post-employment compensation		36			(45	)
Depreciation and amortization		10			15
Other		(107	)		(47	)
Total state and local tax liabilities		966			1,222
Deferred tax liability, long-term	$	11,573		$	11,714

At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full fiscal year. The Company uses the effective income tax rate determined to provide for income taxes on a year-to-date basis and reflects the tax effect of any tax law changes and certain other discrete events in the period in which they occur.

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following:

	Three Months Ended July 31,
	2018			2017
U.S. statutory federal tax rate		21.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		-5.70	%		0.73	%
Effect of dividends received deductions		-0.27	%		-0.37	%
Domestic production tax credit		-			-0.65	%
Other, net		0.04	%		0.09	%
Effective income tax rate		15.07	%		34.80	%

The Company believes that, as of July 31, 2018, there were no material uncertain tax positions that would require disclosure under GAAP.

The Company is included in the consolidated federal income tax return of the Parent, and files combined income tax returns with the Parent on a unitary basis in certain states.  The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company's liability/(benefit) as if it filed a separate return. 

The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended 2014 through 2017, are subject to examination by the tax authorities, generally for three years after they are filed with the tax authorities. The Company is presently engaged in a federal tax audit for the fiscal year ended April 30, 2015 and does not expect it to have a material effect on the financial statements.

17

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

Note 9 - Property and Equipment:

Property and equipment are carried at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the remaining terms of the leases. For income tax purposes, depreciation of furniture and equipment is computed using accelerated methods and buildings and leasehold improvements are depreciated over prescribed extended tax lives. Property and equipment, net, on the Consolidated Condensed Balance Sheets was comprised of the following:

	July 31,			April 30,
($ in thousands)	2018			2018
Building and leasehold improvements	$	1,013		$	1,013
Furniture and equipment		4,036			4,031
		5,049			5,044
Accumulated depreciation and amortization		(3,737	)		(3,673	)
Total property and equipment, net	$	1,312		$	1,371

Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use:

The Company has adopted the provisions of the Statement of Position 98-1 (SOP 98-1), "Accounting for the Costs of Computer Software Developed for Internal Use". SOP 98-1 requires companies to capitalize as long-lived assets many of the costs associated with developing or purchasing software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.

The Company did not incur and did not capitalize expenditures related to the development of software for internal use during the three months ended July 31, 2018 or July 31, 2017. Total amortization expenses during the three months ended July 31, 2018 and July 31, 2017, were $44,000 and $165,000, respectively.

Note 11 - Treasury Stock and Repurchase Program:

On September 19, 2012, the Company's Board of Directors approved a share repurchase program authorizing the repurchase of shares of the Company’s common stock up to an aggregate purchase price of $3,000,000. The repurchases may be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block purchases or otherwise. The repurchase program may be suspended or discontinued at any time at the Company’s discretion and has no set expiration date.

Treasury stock, at cost, consists of the following:

(in thousands except for shares and cost per share)	Shares		Total Average Cost Assigned		Average Cost per Share		Aggregate Purchase Price Remaining Under the Program
Balance as of April 30, 2018 (1)(2)		308,380	$	4,135	$	13.41	$	255
Purchases effected in open market during the months ended (2):
May 31, 2018		2,286		46		20.26		209
June 30, 2018		-		-		-		-
July 31, 2018		-		-		-		-
Balance as of July 31, 2018		310,666	$	4,181	$	13.46	$	209

(1) Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to January 2011.

(2) Were acquired during the $3 million repurchase program authorized in September 2012.

Note 12 - Lease Commitments:

On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (23% initially) in the Company’s annual rental expenditure taking into account free rent for the first six months of the sublease. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters, delaying the actual rent payments until November 2017.

18

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

July 31, 2018

(Unaudited)

On February 29, 2016, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Warehouse”) beginning on May 1, 2016 and ending on April 30, 2024 (“Lease”). Base rent under the Lease is $192,880 per annum payable in equal monthly installments on the first day of each month and will gradually increase to $237,218 in fiscal 2024, subject to customary increases based on operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $32,146, which will be fully refunded after the lease term expires. The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse.

The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease.

Future minimum payments, exclusive of potential increases in real estate taxes and operating cost escalations, under operating leases for office space, with remaining terms of one year or more, are as follows:

Fiscal Years Ended April 30,	($ in thousands)
2020		1,399
2021		1,432
2022		1,506
2023		1,833
2024 and thereafter		6,663
	$	12,833

For the three months ended July 31, 2018 and 2017, rental expenses were $317,000 and $309,000, respectively.

Note 13 - Copyright Data Fees:

During the three months ended July 31, 2018, copyright data fees of $1,679,000 were 13.9% above fiscal 2018. As of July 31, 2018, total third party sponsored assets were attributable to three contracts for copyright data representing $4.4 billion in various products, as compared to three contracts for copyright data representing $3.9 billion in assets at July 31, 2017.

Note 14 - Restricted Cash and Deposits:

Restricted Money Market Investment in the noncurrent assets on the Consolidated Condensed Balance Sheet at July 31, 2018, includes $469,000, which represents cash invested in a bank money market fund securing a letter of credit ("LOC") in the amount of $469,000 issued to the sublandlord as a security deposit for the Company's NYC leased corporate office facility.

Note 15 - Concentration:

During the three months ended July 31, 2018, 18.7% of total publishing revenues of $8,971,000 were derived from a single customer.

Note 16 - Concentration of Credit Risk:

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of July 31, 2018 and July 31, 2017, the Company had $899,000 and $4,670,000, respectively, in excess of the FDIC insured limit.

19

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement Regarding Forward-Looking Information

This report contains statements that are predictive in nature, depend upon or refer to future events or conditions (including certain projections and business trends) accompanied by such phrases as “believe”, “estimate”, “expect”, “anticipate”, “will”, “intend” and other similar or negative expressions, that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended. Actual results for Value Line, Inc. (“Value Line” or “the Company”) may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the following:

● maintaining revenue from subscriptions for the Company’s digital and print published products;

● changes in market and economic conditions, including global financial issues;

● protection of intellectual property rights;

● dependence on non-voting revenues and non-voting profits interests in EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”), which serves as the investment advisor to the Value Line Funds and engages in related distribution, marketing and administrative services;

● fluctuations in EAM’s assets under management due to broadly based changes in the values of equity and debt securities, redemptions by investors and other factors, and the effect these changes may have on the valuation of EAM’s intangible assets;

● generating future revenues or collection of receivables from significant customers;

● dependence on key personnel;

● competition in the fields of publishing, copyright data and investment management;

● the impact of government regulation on the Company’s and EAM’s businesses;

● availability of free or low cost investment data through discount brokers or generally over the internet;

● terrorist attacks, cyber attacks and natural disasters;

● other risks and uncertainties, including but not limited to the risks described in Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended April 30, 2018 and in Part II, Item 1A of this Quarterly Report on Form 10-Q for the period ended July 31, 2018; and other risks and uncertainties arising from time to time.

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors which may involve external factors over which we may have no control or changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion, could also have material adverse effects on future results. Except as otherwise required to be disclosed in periodic reports required to be filed by public companies with the SEC pursuant to the SEC's rules, we have no duty to update these statements, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, current plans, anticipated actions, and future financial conditions and results may differ from those expressed in any forward-looking information contained herein.

In this report, “Value Line,” “we,” “us,” “our” refers to Value Line, Inc. and the “Company” refers to Value Line and its subsidiaries unless the context otherwise requires.

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Executive Summary of the Business

The Company's core business is producing investment periodicals and their underlying research and making available copyright data, including certain proprietary Ranking System and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands including Value Line®, the Value Line logo®, The Value Line Investment Survey®, Smart Research, Smarter Investing™ and The Most Trusted Name in Investment Research®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. Effective December 23, 2010, EULAV Asset Management Trust (“EAM”) was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). The Company maintains a significant investment in EAM from which it receives payments in respect of its non-voting revenues and non-voting profits interests.

The Company’s target audiences within the investment research field are individual investors, colleges, libraries, and investment management professionals. Individuals come to Value Line for complete research in one package. Institutional licensees consist of corporations, financial professionals, colleges, and municipal libraries. Libraries and universities offer the Company’s detailed research to their patrons and students. Investment management professionals use the research and historical information in their day-to-day businesses. The Company has a dedicated department that solicits institutional subscriptions.

Payments received for new and renewal subscriptions and the value of receivables for amounts billed to retail and institutional customers are recorded as unearned revenue until the order is fulfilled. As the orders are fulfilled, the Company recognizes revenue in equal installments over the life of the particular subscription. Accordingly, the subscription fees to be earned by fulfilling subscriptions after the date of a particular balance sheet are shown on that balance sheet as unearned revenue within current and long-term liabilities.

The investment periodicals and related publications (retail and institutional) and fees from copyright data including the proprietary Ranking System information and other proprietary information consolidate into one segment called Publishing.

Asset Management and Mutual Fund Distribution Businesses

The business of EAM is managed by its trustees each owning 20% of the voting profits interest in EAM and by its officers subject to the direction of the trustees. The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement.

Pursuant to the EAM Declaration of Trust, the Company granted EAM the right to use the Value Line name for all existing Value Line Funds and agreed to supply the Value Line proprietary Ranking System information to EAM without charge or expense.

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Business Environment 

The economic upturn, which had been an understated affair throughout its long tenure, really hit its stride in the second calendar quarter of this year, with the nation's gross domestic product climbing by an impressive 4.2%. Underpinning this strong outcome were healthy contributions from consumer spending, exports, and nonresidential fixed investment.

Meanwhile, this stellar performance is likely to mark the high point for this venerable business expansion. However, any moderation in growth probably will be gradual and measured, with such strong underlying fundamentals as rising consumer confidence, healthy job growth, and durable levels of business and consumer activity combining to keep growth in the 3.0%-3.5% range for the remainder of this calendar year. Further solid improvement, most likely on the order of 2.5%-3.0%, would seem reasonable to expect in 2019.    

This recent buildup in momentum seems likely to continue, in some degree at least, as this decade concludes. Of course, few expansions continue without interruption, and this one figures to be no exception. So, although we do not see a recession on the horizon, at this time, given the absence of excesses on the demand or inflation fronts, there are risks to our forecast that should not be ignored. Key among these would be the failure of fiscal initiatives or monetary policy adjustments to keep the economic ball rolling without inviting major overheating. Other risks would be a breakdown in our business relationships with China and the European Union, or escalating political headwinds at home, which could bring about unwanted fiscal changes.

Results of Operations for the Three Months Ended July 31, 2018 and July 31, 2017

The following table illustrates the Company’s key components of revenues and expenses.

	Three Months Ended July 31,
($ in thousands, except earnings per share)	2018		2017		Change
Income from operations	$	1,270	$	1,165		9.0	%
Non-voting revenues and non-voting profits interests from EAM Trust		2,271		2,136		6.3	%
Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust	$	3,541	$	3,301		7.3	%
Operating expenses	$	7,701	$	7,749		-0.6	%
Income from securities transactions, net	$	114	$	96		18.8	%
Income before income taxes	$	3,655	$	3,397		7.6	%
Net income	$	3,104	$	2,215		40.1	%
Earnings per share	$	0.32	$	0.23		39.1	%

During the three months ended July 31, 2018, the Company’s net income of $3,104,000, or $0.32 per share, was $889,000 or 40.1% above net income of $2,215,000, or $0.23 per share, for the three months ended July 31, 2017. The largest factor in the increase was the January 1, 2018 reduction in the U.S. statutory federal corporate income tax rate from 35% to 21%.  Income from operations of $1,270,000 during the three months ended July 31, 2018 was 9.0% above income from operations of $1,165,000.  During the three months ended July 31, 2018 there were 9,689,334 average common shares outstanding as compared to 9,703,580 average common shares outstanding during the three months ended July 31, 2017. 

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Total operating revenues

	Three Months Ended July 31,
($ in thousands)	2018		2017		Change
Investment periodicals and related publications:
Print	$	3,393	$	3,460		-1.9	%
Digital		3,899		3,980		-2.0	%
Total investment periodicals and related publications		7,292		7,440		-2.0	%
Copyright data fees		1,679		1,474		13.9	%
Total publishing revenues	$	8,971	$	8,914		0.6	%

Within investment periodicals and related publications, subscription sales orders are derived from print and digital products. The following chart illustrates the changes in the sales orders associated with print and digital subscriptions. 

Sources of subscription sales

	Three Months Ended July 31,
	2018						2017
	Print			Digital			Print			Digital
New Sales		15.8	%		14.9	%		16.2	%		15.9	%
Conversion and Renewal Sales		84.2	%		85.1	%		83.8	%		84.1	%
Total Gross Sales		100.0	%		100.0	%		100.0	%		100.0	%

During the three months ended July 31, 2018 new sales of print and digital publications decreased as a percent of the total gross print and digital sales as a result of a decrease in new sales orders.

	As of July 31,		As of April 30,		As of July 31,		Change
($ in thousands)	2018		2018		2017		July-18 vs. Apr-18			July-18 vs. July-17
Unearned subscription revenue (current and long term liabilities)	$	24,129	$	25,525	$	24,845		-5.5	%		-2.9	%

Unearned subscription revenue as of July 31, 2018 is 2.9% below July 31, 2017 and is 5.5% below April 30, 2018. The decline from April 30, 2018, reflects both the timing of advertising for order generation and the fact that April 30^th is the usual annual peak. A certain amount of variation is to be expected due to the volume of new orders and timing of renewal orders, direct mail campaigns and large Institutional Sales orders.

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Investment periodicals and related publications revenues

Investment periodicals and related publications revenues of $7,292,000 decreased 2.0%, for the three months ended July 31, 2018, as compared to the prior fiscal year. The Company continued its efforts to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. Total product line circulation at July 31, 2018 was 1.7% below total product line circulation at July 31, 2017. The Company has been successful in growing revenues from investment periodicals within the institutional market.

Total print circulation at July 31, 2018 was 2.6% above total print circulation at July 31, 2017.  Print publication revenues of $3,393,000 decreased 1.9% for the three months ended July 31, 2018 as compared to the prior fiscal year.  Total digital circulation at July 31, 2018 was 7.5% below total digital circulation at July 31, 2017.  However, digital publications revenues of $3,899,000 during the three months ended July 31, 2018 were only 2.0% below the prior fiscal year, as higher-priced subscriptions were generally retained. 

The Value Line proprietary Ranking System information (the “Ranking System”), a component of the Company’s flagship product, The Value Line Investment Survey, is also utilized in the Company’s copyright data business. The Ranking System is made available to EAM for specific uses without charge. The Ranking System is designed to be predictive over a six to twelve month period. For the six month period ended July 31, 2018, the combined Ranking System “Rank 1 & 2” stocks’ increase of 1.4% compared favorably to the S&P 500 Index’s decrease of 0.3% during the comparable period. For the twelve month period ended July 31, 2018, the combined Ranking System “Rank 1 & 2” stocks’ increase of 14.8% outperformed the S&P 500 Index’s increase of 14.0% during the comparable period.

Value Line serves primarily individual and professional investors in stocks, who pay, primarily on annual subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere. The ongoing goal of adding new subscribers has led us to experiment with varying terms for our reliable, proprietary research including a period of intensive promotion of “starter” services and publications.

Copyright data fees

During the three months ended July 31, 2018, copyright data fees revenues of $1,679,000 were 13.9% above the prior fiscal year. At July 31, 2018, total third party sponsored assets were $4.4 billion, as compared to $3.9 billion in assets at July 31, 2017. The largest of the individual ETFs active under Value Line’s copyright data program has again earned a five star Morningstar rating.

Investment management fees and services – (unconsolidated)

The Company has a substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.

Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2018, were $2.66 billion, which is $170 million, or 7%, above total assets of $2.49 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2017. The increase reflects successful investment selection capturing market appreciation, offset by net redemptions in eight of the eleven Value Line Funds over the twelve month period ended July 31, 2018.

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Shares of Value Line Strategic Asset Management Trust (“SAM”) and Value Line Centurion Fund (“Centurion”) are within certain variable annuity and variable life insurance contracts issued by The Guardian Insurance & Annuity Company, Inc. (“GIAC”); new contracts of this type are no longer sold.

Value Line Mutual Funds

	As of July 31,
($ in millions)	2018		2017		Change
Variable annuity assets ("GIAC")	$	397	$	408		-2.7	%
All other open end equity and hybrid fund assets		2,162		1,955		10.6	%
Total equity and hybrid funds		2,559		2,363		8.3	%
Fixed income funds		110		122		-9.8	%
Total EAM managed net assets	$	2,669	$	2,485		7.4	%

The Value Line Fund shareholders are provided a money market fund investment managed by Federated Government Obligations Fund.

As of July 31, 2018, four of six Value Line equity and hybrid mutual funds, excluding SAM and Centurion, held an overall four or five star rating by Morningstar, Inc.

Several of the Value Line Funds have received national recognition. The Value Line Mid-Cap Focused Fund, the Value Line Small Cap Opportunities Fund and the Value Line Capital Appreciation Fund have been named “Category Kings” in The Wall Street Journal in multiple months in calendar 2017 and 2018.

EAM Trust - Results of operations before distribution to interest holders

The overall results of EAM’s investment management operations during the three months ended July 31, 2018, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $4,109,000, 12b-1 fees and other fees of $1,704,000 and other income of $71,000 which included dividend, interest and licensing fees income. For the same period, total investment management fee waivers were $111,000 and 12b-1 fee waivers for four Value Line Funds were $159,000. During the three months ended July 31, 2018, EAM's net income was $606,000 after giving effect to Value Line’s non-voting revenues interest of $1,968,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

The overall results of EAM’s investment management operations during the three months ended July 31, 2017, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $3,958,000, 12b-1 fees and other fees of $1,549,000 and other income of $55,000 which included dividend, interest and licensing fees income. For the same period, total investment management fee waivers were $154,000 and 12b-1 fee waivers for four Value Line Funds were $235,000. During the three months ended July 31, 2017, EAM's net income was $316,000 after giving effect to Value Line’s non-voting revenues interest of $1,978,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

As of July 31, 2018, three of the Value Line Funds have all or a portion of the 12b-1 fees being waived, and one fund has partial investment management fee waivers in place. Although, under the terms of the EAM Declaration of Trust, the Company no longer receives or shares in the revenues from 12b-1 distribution fees, the Company could benefit from the fee waivers to the extent that the resulting reduction of expense ratios and enhancement of the performance of the Value Line Funds attracts new assets.

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The Value Line equity and hybrid funds assets represent 81.0%, variable annuity funds issued by GIAC represent 14.9%, and fixed income fund assets represent 4.1%, respectively, of total fund assets under management (“AUM”) as of July 31, 2018. At July 31, 2018, equity, hybrid and GIAC variable annuities AUM increased by 7.9% and fixed income AUM decreased by 9.8% as compared to the prior fiscal year.

EAM - The Company’s non-voting revenues and non-voting profits interests

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business, and 50% of EAM’s net profits, not less than 90% of which is distributed in cash every fiscal quarter. The applicable recent non-voting revenues interest percentage for the first quarter of fiscal 2019 was 50.3%.

The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:

	Three Months Ended July 31,
($ in thousands)	2018		2017		Change
Non-voting revenues interest	$	1,968	$	1,978		-0.5	%
Non-voting profits interest		303		158		91.8	%
	$	2,271	$	2,136		6.3	%

Operating expenses

	Three Months Ended July 31,
($ in thousands)	2018		2017		Change
Advertising and promotion	$	920	$	795		15.7	%
Salaries and employee benefits		4,479		4,500		-0.5	%
Production and distribution		1,315		1,395		-5.7	%
Office and administration		987		1,059		-6.8	%
Total expenses	$	7,701	$	7,749		-0.6	%

Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration.

Operating expenses of $7,701,000 for the three months ended July 31, 2018 were comparable to those during the three months ended July 31, 2017.

Advertising and promotion

During the three months ended July 31, 2018, advertising and promotion expenses of $920,000 increased $125,000 or 15.7% as compared to the prior fiscal year primarily due to a $141,000 increase in media marketing expenses and institutional sales promotion. During the three months ended July 31, 2018 sales commissions were comparable to the prior fiscal year. Direct mail expenses were slightly below those during the three months ended July 31, 2017.

Salaries and employee benefits

During the three months ended July 31, 2018 salaries and employee benefits of $4,479,000 were comparable to the prior fiscal year.

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Production and distribution

During the three months ended July 31, 2018 production and distribution expenses of $1,315,000 decreased 5.7% below the prior fiscal year. During the three months ended July 31, 2018 a decrease of $121,000 was attributable to a decline in amortization of internally developed software costs related to digital security and product production software. During the three months ended July 31, 2018 the decrease in production costs was partially offset by a $33,000 increase in production support of the Company’s website, maintenance of the Company’s publishing and application software and operating systems and web “framework”.

Office and administration

During the three months ended July 31, 2018 office and administrative expenses of $987,000 decreased 6.8% below the prior fiscal year.  The decrease was primarily a result of a decline in hardware and software maintenance costs due to an upgrade of production equipment in fiscal 2018 which resulted in lower costs in the first quarter of fiscal 2019.

Income from Securities Transactions, net

During the three months ended July 31, 2018 and July 31, 2017, the Company’s income from securities transactions, net, primarily derived from dividend income, was $114,000 and $96,000, respectively. Proceeds from maturities and sales of government debt securities classified as available-for-sale during the three months ended July 31, 2018 and July 31, 2017, were $1,637,000 and $1,394,000, respectively. There were no sales, or gains or losses from sales of equity securities during the three months ended July 31, 2018 or July 31, 2017.

Concentration

During the three months ended July 31, 2018, 18.7% of total publishing revenues of $8,971,000 were derived from a single customer.

Lease Commitments

On November 30, 2016, Value Line, Inc. received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (23% initially) in the Company’s annual rental expenditure taking into account free rent for the first six months of the sublease. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters, delaying the actual rent payments until November 2017.

On February 29, 2016, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Warehouse”) beginning on May 1, 2016 and ending on April 30, 2024 (“Lease”). Base rent under the Lease is $192,880 per annum payable in equal monthly installments on the first day of each month and will gradually increase to $237,218 in fiscal 2024, subject to customary increases based on operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $32,146, which will be fully refunded after the lease term expires. The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse.

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Effective income tax rate 

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2018 and July 31, 2017 were 15.07% and 34.80%, respectively. The decline in the overall effective tax rate during the quarter ended July 31, 2018 is primarily a result of a decline in Federal Tax Rate and a decrease in the state and local allocation factors on the deferred tax on the unrealized gain from deconsolidation of EAM.

In fiscal 2018 the U.S. statutory federal corporate income tax rate was reduced from 35% to 21% on the Company’s long-term deferred tax liabilities, resulting in a tax benefit of 54.51% of pre-tax income for the twelve months ended April 30, 2018, primarily attributable to the effect on the long-term deferred tax liability. The Company re-calculated its net deferred tax assets and liabilities using the Federal Tax Rate under the Tax Act. The effect of the re-calculation was reflected entirely in the third quarter ended July 31, 2018 (the period that included the enactment date) and was allocated directly to both current and deferred income tax expenses from continuing operations.

The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to the new tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

Liquidity and Capital Resources

The Company had working capital, defined as current assets less current liabilities, of $2,617,000 as of July 31, 2018 and working capital of $1,690,000 as of April 30, 2018. These amounts include short term unearned revenue of $18,878,000 and $19,717,000 reflected in total current liabilities at July 31, 2018 and April 30, 2018, respectively. Cash and short term securities were $23,862,000 and $23,785,000 as of July 31, 2018 and April 30, 2018, respectively.

The Company’s cash and cash equivalents include $4,084,000 and $4,982,000 at July 31, 2018 and April 30, 2018, respectively, invested primarily in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Securities and Exchange Act and invest primarily in short term U.S. government securities.

Cash from operating activities

The Company had cash inflows from operating activities of $1,512,000 during the three months ended July 31, 2018 compared to cash inflows from operations of $2,978,000 during the three months ended July 31, 2017.  The decrease in cash inflows from fiscal 2018 to fiscal 2019 was primarily attributable to the timing of payments for federal state and local income taxes, and a smaller decline in unearned prepaid revenues, partially offset by the timing of prepaid expenses. 

Cash from investing activities

The Company’s cash outflows from investing activities of $574,000 during the three months ended July 31, 2018, were below cash outflows from investing activities of $1,438,000 for the three months ended July 31, 2017. During fiscal 2019, the Company continued to invest in fixed income securities. During the three months ended July 31, 2018, the Company invested $2,123,000 in fixed income securities and $5,000 in property and equipment as compared to $2,386,000 and $230,000, respectively, in fiscal 2018.

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Cash from financing activities

During the three months ended July 31, 2018, the Company’s cash outflows from financing activities were $1,887,000 and compared to cash outflows from financing activities of $1,788,000 for the three months ended July 31, 2017. Cash outflows for financing activities included $46,000 and $40,000 for the repurchase of 2,286 and 2,353 shares of the Company’s common stock under the September 19, 2012 board approved common stock repurchase program, during fiscal years 2019 and 2018, respectively. Quarterly dividend payments of $0.19 per share during the three months ended July 31, 2018 aggregated $1,841,000 as compared to $1,748,000 aggregated quarterly dividend payments of $0.18 per share during the three months ended July 31, 2017.

On July 19, 2018, the Board of Directors of Value Line declared a quarterly dividend of $0.19 per share. At July 31, 2018 there were 9,689,334 common shares outstanding as compared to 9,709,580 common shares outstanding at July 31, 2017. The Company expects financing activities to continue to include use of cash for dividend payments and common share repurchases for the foreseeable future.    

Management believes that the Company’s cash and other liquid asset resources used in its business together with the future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months. Management does not anticipate making any borrowings during the next twelve months. As of July 31, 2018, retained earnings and liquid assets were $46,165,000 and $23,862,000, respectively.

Seasonality

Our publishing revenues are comprised of subscriptions which are generally annual subscriptions, paid in advance. Our cash flows from operating activities are minimally seasonal in nature, primarily due to the timing of customer payments made for orders and subscription renewals.

Off-balance sheet arrangements

We are not a party to any off-balance sheet arrangements, other than operating leases entered into in the ordinary course of business.

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02").  The core principle of Topic 842 requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements.  The amendments in ASU 2016-2 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  The guidance is required to be adopted at the earliest period presented using a modified retrospective approach.  The adoption of ASU 2016-02 will not have a material impact on our consolidated condensed financial statements and related disclosures.

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments     (a consensus of the Emerging Issues Task Force) (“ASU 2016-15”). The amendments in ASU 2016-15 address eight specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC Topic 230, Statement of Cash Flows. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company has adopted ASU 2016-15 in the first quarter of fiscal 2019.  As a result, it has reclassified, within the Consolidated Condensed Statement of Cash Flows, $2.3 million and $2.1 million, for the three months ended July 31, 2018 and July 31, 2017, respectively, of EAM non-voting revenues interest and profits interest, from operating activities to investing activities.

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In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU No. 2014-09 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09 supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or cumulative effect transition method. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.  The Company has adopted ASU No. 2014-09 in the first quarter of fiscal 2019, which does not have a material impact on the Company's consolidated condensed financial statements and related disclosures.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230):  Restricted Cash (a consensus of the FASB Emerging Issues Task Force)".  This ASU requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents.   ASU No. 2016-18 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods.  The Company has adopted ASU No. 2016-18 in the first quarter of fiscal 2019, which does not have a material impact on the Company's consolidated condensed financial statements and related disclosures. 

On June 21, 2018, the United States Supreme Court reversed the 1992 ruling in Quill, which protected firms mailing items by common carrier into a state where it had no physical presence from having to collect sales tax in such state.  The Company is evaluating the impact of the 2018 ruling (South Dakota vs. Wayfair) on its operations.

Critical Accounting Estimates and Policies

The Company prepares its Consolidated Condensed Financial Statements in accordance with generally accepted accounting principles as in effect in the United States (U.S. “GAAP”). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent, and the Company evaluates its estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies reflect the significant judgments and estimates used in the preparation of its Consolidated Condensed Financial Statements.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market Risk Disclosures

The Company’s Consolidated Condensed Balance Sheet includes a substantial amount of assets whose fair values are subject to market risks. The Company’s market risks are primarily associated with interest rates and equity price risk. The following sections address the significant market risks associated with the Company’s investment activities.

Interest Rate Risk

The Company’s strategy has been to acquire debt securities with low credit risk. Despite this strategy management recognizes and accepts the possibility that losses may occur. To limit the price fluctuation in these securities from interest rate changes, the Company’s management invests primarily in short-term obligations maturing within one year.

The fair values of the Company’s fixed maturity investments will fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally translate into decreases and increases in fair values of those instruments. Additionally, fair values of interest rate sensitive instruments may be affected by prepayment options, relative values of alternative investments, and other general market conditions.

30

Fixed income securities consist of certificates of deposits and securities issued by federal, state and local governments within the United States. As of July 31, 2018 and April 30, 2018 the aggregate cost of fixed income securities classified as available-for-sale were $8,955,000 and $8,468,000, respectively, and fair value was $8,953,000 and $8,465,000, respectively.

The following table summarizes the estimated effects of hypothetical increases and decreases in interest rates on assets that are subject to interest rate risk. It is assumed that the changes occur immediately and uniformly to each category of instrument containing interest rate risks. The hypothetical changes in market interest rates do not reflect what could be deemed best or worst case scenarios. Variations in market interest rates could produce significant changes in the timing of repayments due to prepayment options available. For these reasons, actual results might differ from those reflected in the table.

Fixed Income Securities

			Estimated Fair Value after
			Hypothetical Change in Interest Rates
			(in thousands)
			(bp = basis points)
			6 mos.		6 mos.		1 yr.		1 yr.
	Fair		50bp		50bp		100bp		100bp
	Value		increase		decrease		increase		decrease
As of July 31, 2018
Investments in securities with fixed maturities	$	8,953	$	9,056	$	9,057	$	9,209	$	9,122
As of April 30, 2018
Investments in securities with fixed maturities	$	8,465	$	8,668	$	8,628	$	8,688	$	8,608

Management regularly monitors the maturity structure of the Company’s investments in debt securities in order to maintain an acceptable price risk associated with changes in interest rates.

Equity Price Risk

The carrying values of investments subject to equity price risks are based on quoted market prices as of the balance sheet dates. Market prices are subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may significantly differ from the reported market value. Fluctuation in the market price of a security may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions. Furthermore, amounts realized in the sale of a particular security may be affected by the relative quantity of the security being sold.

The Company’s equity investment strategy has been to acquire equity securities across a diverse industry group. The portfolio consists primarily of ETFs and select common stock holdings of blue chip companies with a concentration on large capitalization companies with high relative dividend yields. In order to maintain liquidity in these securities, the Company’s policy has been to invest in and hold in its portfolio, no more than 5% of the approximate average daily trading volume in any one issue. Additionally, the Company may purchase and hold non-leveraged ETFs whose performance inversely corresponds to the market value changes of investments in other ETF securities held in the equity portfolio for dividend yield.

31

As of July 31, 2018 and April 30, 2018, the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), INVESCO Financial Preferred ETF (PGF), Select Utilities Select Sector SPDR ETF (XLU), First Trust Value Line 100 ETF (FVL) and Proshares Trust S&P 500 Dividend Aristocrats ETF (NOBL) was $8,385,000 and the fair value was $9,917,000 and $9,379,000, respectively.   

Equity Securities
					Estimated Fair Value after		Hypothetical Percentage Increase (Decrease) in
				Hypothetical	Hypothetical		Shareholders’
($ in thousands)		Fair Value		Price Change	Change in Prices		Equity
As of July 31, 2018	Equity Securities and ETFs held for dividend yield	$	9,917	30% increase	$	12,892		5.40%
				30% decrease	$	6,942		-5.40%

Equity Securities
					Estimated Fair Value after		Hypothetical Percentage Increase (Decrease) in
				Hypothetical	Hypothetical		Shareholders’
($ in thousands)		Fair Value		Price Change	Change in Prices		Equity
As of April 30, 2018	Equity Securities and ETFs held for dividend yield	$	9,379	30% increase	$	12,193		5.11%
				30% decrease	$	6,565		-5.11%

Item 4. CONTROLS AND PROCEDURES

(a) The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding disclosure.

The Company’s management has evaluated, with the participation of the Company’s Principal Executive Officer and Principal Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) The registrant’s Principal Executive Officer and Principal Financial Officer have determined that there have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

32

Part II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in Item 1A – Risk Factors in the Company’s Annual Report on Form 10-K for the year ended April 30, 2018 filed with the SEC on July 26, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Purchases of Equity Securities by the Company

The following table provides information with respect to all repurchases of common stock made by or on behalf of the Company during the fiscal quarter ended July 31, 2018. All purchases listed below were made in the open market at prevailing market prices.

	ISSUER PURCHASES OF EQUITY SECURITIES
	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
May 1 - 31, 2018		2,286	$	20.26		2,286	$	209,000
June 1 - 30, 2018		-		-		-		209,000
July 1 - 31, 2018		-		-		-		209,000
Total		2,286	$	20.26		2,286	$	209,000

All shares represent shares repurchased pursuant to authorization of the Board of Directors. On September 19, 2012, the Company’s Board of Directors authorized the repurchase of shares of the Company’s common stock, at such times and prices as management determined to be advisable, up to an aggregate purchase price of $3,000,000.

Item 5. Other Information

None.

33

Item 6. Exhibits

31.1 Certificate of Principal Executive Officer Required Under Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certificate of Principal Financial Officer Required Under Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Joint Principal Executive Officer/Principal Financial Officer Certificate Required Under Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS   101.SCH   101.CAL   101.DEF   101.LAB   101.PRE XBRL Instance Document   XBRL Taxonomy Extension Schema Document   XBRL Taxonomy Extension Calculation Linkbase Document   XBRL Taxonomy Extension Definition Linkbase Document   XBRL Taxonomy Extension Label Linkbase Document   XBRL Taxonomy Extension Presentation Linkbase Document

34

VALUE LINE, INC.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Value Line, Inc.

(Registrant)

By: /s/	Howard A. Brecher
	Howard A. Brecher Chief Executive Officer (Principal Executive Officer)
By: /s/	Stephen R. Anastasio
	Stephen R. Anastasio
	Vice President & Treasurer
	(Principal Financial Officer)

Date: September 12, 2018

35

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Howard A. Brecher, certify that:

1. I have reviewed this report on Form 10-Q of Value Line, Inc. for the quarter ended July 31, 2018;

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 report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) 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 registrant 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 registrant, 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 registrant's disclosure 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 12, 2018	By: /s/	Howard A. Brecher
		Howard A. Brecher
		Chairman and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Stephen R. Anastasio, certify that:

1. I have reviewed this report on Form 10-Q of Value Line, Inc. for the quarter ended July 31, 2018;

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 report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) 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 registrant 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 registrant, 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 registrant's disclosure 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’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 registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 12, 2018	By: /s/	Stephen R. Anastasio
		Stephen R. Anastasio
		Vice President & Treasurer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350

In accordance with 18 U.S.C. Section 1350, the undersigned hereby certify, in the indicated capacities with respect to Value Line, Inc. (the “Issuer”), that the report on Form 10-Q for the quarter ended July 31, 2018 of the Issuer fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the quarterly report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Issuer. This certification is not to be deemed to be filed pursuant to the Securities Exchange Act of 1934 and does not constitute a part of the quarterly report on Form 10-Q of the Issuer accompanying this certification.

	By: /s/	Howard A. Brecher
		Howard A. Brecher
		Chairman and Chief Executive Officer
		(Principal Executive Officer)
	By: /s/	Stephen R. Anastasio
		Stephen R. Anastasio
		Vice President & Treasurer
		(Principal Financial Officer)
Date: September 12, 2018

XML

Document And Entity Information - shares	3 Months Ended
	Jul. 31, 2018	Aug. 31, 2018
Document Information [Line Items]
Entity Registrant Name	VALUE LINE INC
Entity Central Index Key	0000717720
Trading Symbol	valu
Current Fiscal Year End Date	--04-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		9,689,334
Document Type	10-Q
Document Period End Date	Jul. 31, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jul. 31, 2018	Apr. 30, 2018
Current Assets:
Cash and cash equivalents	$ 4,992,000	$ 5,941,000
Securities available-for-sale	18,870,000	17,844,000
Accounts receivable, net of allowance for doubtful accounts of $15 and $14, respectively	1,075,000	1,049,000
Prepaid and refundable income taxes	20,000	457,000
Prepaid expenses and other current assets	1,220,000	1,270,000
Total current assets	26,177,000	26,561,000
Long term assets:
Investment in EAM Trust	58,331,000	58,233,000
Restricted money market investment	469,000	469,000
Property and equipment, net	1,312,000	1,371,000
Capitalized software and other intangible assets, net	110,000	154,000
Total long term assets	60,222,000	60,227,000
Total assets	86,399,000	86,788,000
Current Liabilities:
Accounts payable and accrued liabilities	1,220,000	1,926,000
Accrued salaries	1,293,000	1,387,000
Dividends payable	1,841,000	1,841,000
Accrued taxes on income	328,000
Unearned revenue	18,878,000	19,717,000
Total current liabilities	23,560,000	24,871,000
Long term liabilities:
Unearned revenue	5,251,000	5,808,000
Deferred charges	831,000	854,000
Deferred income taxes	11,573,000	11,714,000
Total long term liabilities	17,655,000	18,376,000
Total liabilities	41,215,000	43,247,000
Shareholders' Equity:
Common stock, $0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares	1,000,000	1,000,000
Additional paid-in capital	991,000	991,000
Retained earnings	46,165,000	44,902,000
Treasury stock, at cost (310,666 and 308,380 shares, respectively)	(4,181,000)	(4,135,000)	[1],[2]
Accumulated other comprehensive income, net of tax	1,209,000	783,000
Total shareholders' equity	45,184,000	43,541,000
Total liabilities and shareholders' equity	$ 86,399,000	$ 86,788,000

[1] Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to January 2011.

[2] Were acquired during the $3 million repurchase program authorized in September 2012.

XML

Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Short term investments	$ 4,084	$ 4,982
Allowance for doubtful accounts	$ 15	$ 14
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	10,000,000	10,000,000
Treasury stock, shares (in shares)	310,666	308,380	[1],[2]

[1] Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to January 2011.

[2] Were acquired during the $3 million repurchase program authorized in September 2012.

XML

Consolidated Condensed Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenues:
Revenues	$ 8,971,000	$ 8,914,000
Expenses:
Advertising and promotion	920,000	795,000
Salaries and employee benefits	4,479,000	4,500,000
Production and distribution	1,315,000	1,395,000
Office and administration	987,000	1,059,000
Total expenses	7,701,000	7,749,000
Income from operations	1,270,000	1,165,000
Revenues and profits interests in EAM Trust	2,271,000	2,136,000
Income from securities transactions, net	114,000	96,000
Income before income taxes	3,655,000	3,397,000
Income tax provision	551,000	1,182,000
Net income	$ 3,104,000	$ 2,215,000
Earnings per share, basic & fully diluted (in dollars per share)	$ 0.32	$ 0.23
Weighted average number of common shares (in shares)	9,689,334	9,709,580
Subscription and Circulation [Member]
Revenues:
Revenues	$ 7,292,000	$ 7,440,000
License [Member]
Revenues:
Revenues	$ 1,679,000	$ 1,474,000

XML

Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Net income	$ 3,104	$ 2,215
Other comprehensive income, net of tax:
Change in unrealized gains on securities, net of taxes	426	92
Other comprehensive income	426	92
Comprehensive income	$ 3,530	$ 2,307

XML

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Cash flows from operating activities:
Net income	$ 3,104	$ 2,215
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	108	227
Deferred income taxes	(271)	(216)
Deferred rent	(23)	259
Other, net	(15)	(15)
Changes in operating assets and liabilities:
Unearned revenue	(1,396)	(814)
Accounts payable & accrued expenses	(706)	(391)
Accrued salaries	(94)	94
Accrued taxes on income	344	1,367
Prepaid and refundable income taxes	437	2
Prepaid expenses and other current assets	50	275
Accounts receivable	(26)	(25)
Total adjustments	(1,592)	763
Net cash provided by operating activities	1,512	2,978
Cash flows from investing activities:
Purchases of fixed income securities classified as available-for-sale	(2,123)	(2,386)
Proceeds from sales of fixed income securities classified as available-for-sale	1,637	1,394
Non-voting revenues interest in EAM Trust	(1,968)	(1,978)
Non-voting profits interest in EAM Trust	(303)	(158)
Distributions received from EAM Trust	2,188	1,920
Acquisition of property and equipment	(5)	(230)
Net cash used in investing activities	(574)	(1,438)
Cash flows from financing activities:
Purchase of treasury stock at cost	(46)	(40)
Dividends paid	(1,841)	(1,748)
Net cash used in financing activities	(1,887)	(1,788)
Net change in cash and cash equivalents	(949)	(248)
Cash, cash equivalents and restricted cash at beginning of period	6,410	7,026
Cash, cash equivalents and restricted cash at end of period	$ 5,461	$ 6,778

XML

Consolidated Condensed Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Apr. 30, 2017		10,000,000		(288,335)
Balance at Apr. 30, 2017		$ 1,000	$ 991	$ (3,781)	$ 39,186	$ 458	$ 37,854
Net income					2,215		2,215
Change in unrealized gains on securities, net of taxes						92	92
Purchase of treasury stock (in shares)				(2,353)
Purchase of treasury stock				$ (40)			(40)
Dividends declared	[1]				(1,748)		(1,748)
Balance (in shares) at Jul. 31, 2017		10,000,000		(290,688)
Balance at Jul. 31, 2017		$ 1,000	991	$ (3,821)	39,653	550	38,373
Balance (in shares) at Apr. 30, 2018		10,000,000		(308,380)
Balance at Apr. 30, 2018		$ 1,000	991	$ (4,135)	44,902	783	43,541
Net income					3,104		3,104
Change in unrealized gains on securities, net of taxes						426	426
Purchase of treasury stock (in shares)				(2,286)
Purchase of treasury stock				$ (46)			(46)
Dividends declared	[2]				(1,841)		(1,841)
Balance (in shares) at Jul. 31, 2018		10,000,000		(310,666)
Balance at Jul. 31, 2018		$ 1,000	$ 991	$ (4,181)	$ 46,165	$ 1,209	$ 45,184

[1] Dividends declared per common share were $0.18 for the three months ending July 31, 2017.

[2] Dividends declared per common share were $0.19 for the three months ending July 31, 2018.

XML

Consolidated Condensed Statement of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Retained Earnings [Member]
Dividends declared per share (in dollars per share)		$ 0.18
Dividends declared per share (in dollars per share)	$ 0.19

XML

Note 1 - Organization and Summary of Significant Accounting Policies

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note

1

- Organization and Summary of Significant Accounting Policies:

Value Line, Inc. ("Value Line" or "VLI", and collectively with its subsidiaries, the “Company”) is incorporated in the State of New York. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. The Company's primary business is producing investment periodicals and related publications and making available copyright data including certain Value Line trademarks and Value Line Proprietary Ranking System information to

third

parties under written agreements for use in

third

party managed and marketed investment products. The Company maintains a significant investment in the EULAV Asset Management LLC ("EAM") from which it received a non-voting revenues interest and a non-voting profits interest. EAM was established to provide investment management services to the Value Line Mutual Funds ("Value Line Funds" or the "Funds").

The Consolidated Condensed Balance Sheets as of

July 31, 2018

and

April 30, 2018,

which have been derived from the unaudited interim Consolidated Condensed Financial Statements and the audited Consolidated Financial Statements, respectively, were prepared following the interim reporting requirements of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying Unaudited Interim Consolidated Condensed Financial Statements contain all adjustments (consisting of normal recurring accruals except as noted below) considered necessary for a fair presentation. This report should be read in conjunction with the audited financial statements and footnotes contained in the Company's Annual Report on Form

10

-K for the fiscal year ended

April 30, 2018

filed with the SEC on

July 26, 2018 (

the “Form

10

-K”). Results of operations covered by this report

may

not

be indicative of the results of operations for the entire year.

Use of Estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results

may

differ from those estimates.

Principles of Consolidation:

The Company follows the guidance in the Financial Accounting Standards Board's ("FASB") Topic

810

“Consolidation” to determine if it should consolidate its investment in a variable interest entity ("VIE"). A VIE is a legal entity in which either (i) equity investors do

not

have sufficient equity investment at risk to enable the entity to finance its activities independently or (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity's economic performance. A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary. The determination of a controlling financial interest in a VIE is based on a qualitative assessment to identify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a VIE and the Company has determined it is

not

the primary beneficiary of a VIE (see Note

3

).

In accordance with FASB's Topic

810,

the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. On

December 23, 2010,

the Company completed the Restructuring Transaction and deconsolidated the related affiliates in accordance with FASB's Topic

810.

As part of the Restructuring Transaction, the Company received a significant non-voting revenues interest (excluding distribution revenues) and a significant non-voting profits interest in the new entity, EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”). The Company relied on the guidance in FASB's ASC Topics

323

and

810

in its determination

not

to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Condensed Statements of Income.

Revenue Recognition:

Depending upon the product, subscription fulfillment for Value Line periodicals and related publications is available in print or digitally, via internet access. The length of a subscription varies by product and offer received by the subscriber. Generally, subscriptions are offered as annual subscriptions. Subscription revenues, net of discounts, are recognized ratably on a straight line basis when the product is served to the client over the life of the subscription. Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheets are shown as unearned revenue within current and long-term liabilities.

Copyright data revenues are derived from providing certain Value Line trademarks and the Value Line Proprietary Ranking System information to

third

parties under written agreements for use in selecting securities for

third

party marketed products, including unit investment trusts, annuities and exchange traded funds ("ETFs"). The Company earns asset-based copyright data fees as specified in the individual agreements. Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value.

Investment in Unconsolidated Entities:

The Company accounts for its investment in its unconsolidated entity, EAM, using the equity method of accounting in accordance with FASB’s ASC

323.

The equity method is an appropriate means of recognizing increases or decreases measured by GAAP in the economic resources underlying the investments. Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee.

The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a "non-voting revenues interest" and a "non-voting profits interest" in EAM as defined in the EAM Trust Agreement. The non-voting revenues interest entitles the Company to receive a range of

41%

to

55%,

based on the amount of EAM’s adjusted gross revenues, excluding EULAV Securities' distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive

50%

of EAM's profits, subject to certain limited adjustments as defined in the EAM Trust Agreement (“Profits Interest”). The Revenues Interest and at least

90%

of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. Subsequent to the Restructuring Date, the Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary EULAV Securities. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction. Although the Company does

not

have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, the Company has a contractual right to receive its share of EAM's revenues and profits.

Recent Accounting Pronouncements:

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases (Topic

842

) (“ASU

2016

-

02"

).  The core principle of Topic

842

requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements.  The amendments in ASU

2016

-

2

are effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years.  The guidance is required to be adopted at the earliest period presented using a modified retrospective approach.  The adoption of ASU

2016

-

02

will

not

have a material impact on our consolidated condensed financial statements and related disclosures.

In

August 2016,

the FASB issued Accounting Standards Update

No.

2016

-

15,

Classification of Certain Cash Receipts and Cash Payments     (a consensus of the Emerging Issues Task Force) (“ASU

2016

-

15”

). The amendments in ASU

2016

-

15

address

eight

specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC Topic

230,

Statement of Cash Flows. The amendments in ASU

2016

-

15

are effective for public business entities for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. The Company has adopted ASU

2016

-

15

in the

first

quarter of fiscal

2019.

  As a result, it has reclassified, within the Consolidated Condensed Statement of Cash Flows,

$2.3

million and

$2.1

million, for the

three

months ended

July 31, 2018

and

July 31, 2017,

respectively, of EAM non-voting revenues interest and profits interest, from operating activities to investing activities.

In

May 2014,

the FASB issued ASU

No.

2014

-

09,

“Revenue from Contracts with Customers (Topic

606

)”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU

No.

2014

-

09

requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU

No.

2014

-

09

supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or cumulative effect transition method. ASU

No.

2014

-

09

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those annual periods.  The Company has adopted ASU

No.

2014

-

09

in the

first

quarter of fiscal

2019,

which does

not

have a material impact on the Company's consolidated condensed financial statements and related disclosures.

In

November 2016,

the FASB issued ASU

No.

2016

-

18,

"Statement of Cash Flows (Topic

230

):  Restricted Cash (a consensus of the FASB Emerging Issues Task Force)".  This ASU requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents.   ASU

No.

2016

-

18

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those annual periods.  The Company has adopted ASU

No.

2016

-

18

in the

first

quarter of fiscal

2019,

which does

not

have a material impact on the Company's consolidated condensed financial statements and related disclosures.  

On

June 21, 2018,

the United States Supreme Court reversed the

1992

ruling in

Quill

, which protected firms mailing items by common carrier into a state where it had

no

physical presence from having to collect sales tax in such state.  The Company is evaluating the impact of the

2018

ruling (

South Dakota vs. Wayfair

) on its operations.

Valuation of Securities:

The Company's securities classified as cash equivalents and available-for-sale consist of shares of money market funds that invest primarily in short-term U.S. Government securities and investments in equities including ETFs and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB's ASC

820.

The securities classified as available-for-sale reflected in the Consolidated Condensed Balance Sheets are valued at market and unrealized gains and losses, net of applicable taxes, are reported as a separate component of shareholders' equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings as of the trade date and are determined on the identified cost method.

The Company classifies its securities available-for-sale as current assets to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise.

Market valuations of securities listed on a securities exchange and ETF shares are based on the closing sales prices on the last business day of each month. The market value of the Company's fixed maturity U.S. Government debt securities is determined utilizing publicly quoted market prices. Cash equivalents consist of investments in money market funds that invest primarily in U.S. Government securities valued in accordance with rule

2a

-

7

under the

1940

Act.

The Fair Value Measurements Topic of FASB's ASC defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fair Value Measurements Topic established a

three

-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The

three

-tier hierarchy of inputs is summarized in the

three

broad levels listed below.

Level

1

– quoted prices in active markets for identical investments

Level

2

– other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level

3

– significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The following summarizes the levels of fair value measurements of the Company’s investments:

	As of July 31, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,084	$	-	$	-	$	4,084
Securities available-for-sale		18,870		-		-		18,870
	$	22,954	$	-	$	-	$	22,954

	As of April 30, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,982	$	-	$	-	$	4,982
Securities available-for-sale		17,844		-		-		17,844
	$	22,826	$	-	$	-	$	22,826

The Company had

no

other financial instruments such as futures, forwards and swap contracts. For the periods ended

July 31, 2018

and

April 30, 2018,

there were

no

Level

2

nor Level

3

investments. The Company does

not

have any liabilities subject to fair value measurement.

Advertising expenses:

The Company expenses advertising costs as incurred.

Income Taxes:

The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB's ASC. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. The Company adopted the provisions of ASU

2015

-

17,

Income taxes (Topic

740

) during the

first

quarter of fiscal

2018

and continues to classify all deferred taxes as long-term liabilities on the Consolidated Condensed Balance Sheets.

The Income Tax Topic of the FASB's ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. As of

July 31, 2018,

management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is

no

material impact to the Company's financial statements.

Earnings per share:

Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. Any shares that are reacquired during the period are weighted for the portion of the period that they are outstanding. The Company does

not

have any potentially dilutive common shares from outstanding stock options, warrants, restricted stock, or restricted stock units.

Cash and Cash Equivalents:

For purposes of the Consolidated Condensed Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than

three

months to be cash and cash equivalents. As of

July 31, 2018

and

April 30, 2018,

cash equivalents included

$4,084,000

and

$4,982,000,

respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.

XML

Note 2 - Investments

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note

2

- Investments:

Securities Available-for-Sale:

Investments held by the Company and its subsidiaries are classified as securities available-for-sale in accordance with FASB's ASC

320,

Investments - Debt and Equity Securities. All of the Company's securities classified as available-for-sale were readily marketable or had a maturity of

twelve

months or less and are classified as current assets on the Consolidated Condensed Balance Sheets.

Equity Securities:

Equity securities classified as available-for-sale on the Consolidated Condensed Balance Sheets, consist of ETFs held for dividend yield that attempt to replicate the performance of certain equity indexes and ETFs that hold preferred shares primarily of financial institutions.

As of

July 31, 2018

and

April 30, 2018,

the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the SPDR Series Trust S&P Dividend ETF (SDY), First Trust Value Line Dividend Index ETF (FVD), INVESCO Financial Preferred ETF (PGF), Select Utilities Select Sector SPDR ETF (XLU), First Trust Value Line

100

ETF (FVL) and Proshares Trust S&P

500

Dividend Aristocrats ETF (NOBL) was

$8,385,000

,

and the fair value was

$9,917,000

and

$9,379,000,

respectively.

There were

no

sales or proceeds from sales of equity securities during the

three

months ended

July 31, 2018

or

July 31, 2017.

The increase in gross unrealized gains on equity securities classified as available-for-sale of

$538,000,

net of deferred taxes of

$113,000

was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet at

July 31, 2018.

The increase in gross unrealized gains on equity securities classified as available-for-sale of

$152,000,

net of deferred taxes of

$54,000

was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet at

July 31, 2017.

The changes in the value of equity securities investments are recorded in Other Comprehensive Income in the Consolidated Condensed Financial Statements. Realized gains and losses are recorded as of the trade date in the Consolidated Condensed Statements of Income when securities are sold, mature or are redeemed. As of

July 31, 2018

and

April 30, 2018,

accumulated other comprehensive income included unrealized gains of

$1,532,000

and

$994,000,

net of deferred taxes of

$322,000

and

$209,000,

respectively.

The carrying value and fair value of securities available-for-sale at

July 31, 2018

were as follows:

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	1,532	$	-	$	9,917

The carrying value and fair value of securities available-for-sale at

April 30, 2018

were as follows:

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	994	$	-	$	9,379

Government Debt Securities (Fixed Income Securities):

Fixed income securities consist of certificates of deposits and securities issued by federal, state, and local governments within the United States. The aggregate cost and fair value at

July 31, 2018

of fixed income securities classified as available-for-sale were as follows:

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	8,705	$	6	$	(7	)	$	8,704
Due 1 year through 5 years		250		-		(1	)		249
Total investment in government debt securities	$	8,955	$	6	$	(8	)	$	8,953

The aggregate cost and fair value at

April 30, 2018

of fixed income securities classified as available-for-sale were as follows:

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	7,868	$	10	$	(12	)	$	7,866
Due 1 year through 5 years		600		-		(1	)		599
Total investment in government debt securities	$	8,468	$	10	$	(13	)	$	8,465

Proceeds from maturities and sales of government debt securities classified as available-for-sale during the

three

months ended

July 31, 2018

and

July 31, 2017,

were

$1,637,000

and

$1,394,000,

respectively. The decrease in gross unrealized losses of

$2,000

on fixed income securities classified as available-for-sale net of deferred income tax of

$1,000,

was included in in Shareholders' Equity on the Consolidated Condensed Balance Sheet as of

July 31, 2018.

The increase in gross unrealized losses of

$10,000

on fixed income securities classified as available-for-sale net of deferred income tax of

$4,000,

was included in Shareholders' Equity on the Consolidated Condensed Balance Sheet as of

July 31, 2017.

As of

July 31, 2018

and

April 30, 2018,

accumulated other comprehensive income included unrealized losses of

$1,000

and

$3,000,

net of deferred tax benefits of

$200

and

$600,

respectively.

The average yield on the Government debt securities classified as available-for-sale at

July 31, 2018

and

April 30, 2018

was

1.7%

and

1.24%,

respectively.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended July 31,
($ in thousands)	2018		2017
Dividend income	$	67	$	52
Interest income		35		25
Other		12		19
Total income from securities transactions, net	$	114	$	96

Investment in Unconsolidated Entities:

Equity Method Investment:

As of

July 31, 2018

and

April 30, 2018,

the Company's investment in EAM Trust, on the Consolidated Condensed Balance Sheets was

$58,331,000

and

$58,233,000,

respectively.

The value of VLI’s investment in EAM at

July 31, 2018

and

April 30, 2018

reflects the fair value of contributed capital of

$55,805,000

at inception which included

$5,820,000

of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI, plus VLI's share of non-voting revenues and non-voting profits from EAM less distributions, made quarterly to VLI by EAM, during the period subsequent to its initial investment through the dates of the Consolidated Condensed Balance Sheets.

It is anticipated that EAM will have sufficient liquidity and earn enough profit to conduct its current and future operations so the management of EAM will

not

need additional funding.

The Company monitors its Investment in EAM Trust for impairment to determine whether an event or change in circumstances has occurred that

may

have a significant adverse effect on the fair value of the investment. Impairment indicators of an impairment could include, but are

not

limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital and regulatory requirements. EAM did

not

record any impairment losses for its assets during the fiscal years

2019

or

2018.

The components of EAM’s investment management operations, provided to the Company by EAM, were as follows:

	Three Months Ended July 31,
($ in thousands) (unaudited)	2018		2017
Investment management fees earned from the Value Line Funds, net of fee waivers	$	4,109	$	3,958
12b-1 fees and other fees, net of fee waivers	$	1,704	$	1,549
Other income	$	71	$	55
Investment management fee waivers	$	111	$	154
12b-1 fee waivers	$	159	$	235
Value Line’s non-voting revenues interest	$	1,968	$	1,978
EAM's net income (1)	$	606	$	316

(

1

) Represents EAM's net income, after giving effect to Value Line’s non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its

50%

non-voting profits interest.

	July 31,			April 30,
($ in thousands)	2018			2018
	(unaudited)
EAM's total assets	$	60,278		$	60,203
EAM's total liabilities (1)		(3,378	)		(3,128	)
EAM's total equity	$	56,900		$	57,075

(

1

) At

July 31, 2018

and

April 30, 2018,

EAM's total liabilities included a payable to VLI for its accrued non-voting revenues interest and non-voting profits interest of

$2,279,000

and

$2,113,000,

respectively.

XML

Note 3 - Variable Interest Entity

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Variable Interest Entity [Text Block]

Note 

3

- Variable Interest Entity

The Company retained a non-voting revenues interest and a

50%

non-voting profits interest in EAM, which was formed, as a result of the Restructuring Transaction on

December 23, 2010,

to carry on the asset management and mutual fund distribution businesses formerly conducted by the Company. EAM is considered to be a VIE. The Company makes its determination for consolidation of EAM as a VIE based on a qualitative assessment of the purpose and design of EAM, the terms and characteristics of the variable interests in EAM, and the risks EAM is designed to originate and pass through to holders of variable interests. Other than EAM, the Company does

not

have an interest in any other VIEs.

The Company has determined that it does

not

have a controlling financial interest in EAM because it does

not

have the power to direct the activities of EAM that most significantly impact its economic performance. Value Line does

not

hold any voting stock of EAM and it does

not

have any involvement in the day-to-day activities or operations of EAM. Although the EAM Trust Agreement provides Value Line with certain consent rights and contains certain restrictive covenants related to the activities of EAM, these are considered to be protective rights and therefore Value Line does

not

maintain control over EAM.

In addition, although EAM is expected to be profitable, there is a risk that it could operate at a loss. While all of the profit interest shareholders in EAM are subject to variability based on EAM’s operations risk, Value Line’s non-voting revenues interest in EAM is a preferred interest in the revenues of EAM, rather than a profits interest in EAM, and Value Line accordingly believes it is subject to proportionately less risk than other holders of the profits interests.

The Company has

not

provided any explicit or implicit financial or other support to EAM other than what was contractually agreed to in the EAM Trust Agreement. Value Line has

no

obligation to fund EAM in the future and, as a result, has

no

exposure to loss beyond its initial investment and any undistributed revenues and profits interests retained in EAM. The following table presents the total assets of EAM, the maximum exposure to loss due to involvement with EAM, as well as the value of the assets and liabilities the Company has recorded on its Consolidated Condensed Balance Sheets for its interest in EAM.

			Value Line
($ in thousands)	VIE Assets		Investment in EAM Trust (1)		Liabilities		Maximum Exposure to Loss
As of July 31, 2018 (unaudited)	$	60,278	$	58,331	$	-	$	58,331
As of April 30, 2018	$	60,203	$	58,233	$	-	$	58,233

(

1

) Reported within Long Term Assets on the Consolidated Condensed Balance Sheets.

XML

Note 4 - Supplementary Cash Flow Information

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

Note

4

- Supplementary Cash Flows Information:

Reconciliation of Cash, Cash Equivalents, and Restricted Cash:

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Condensed Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Condensed Statement of Cash Flows.

	Three months ended July 31,
($ in thousands)	2018		2017
Cash and cash equivalents	$	4,992	$	6,309
Restricted cash		469		469
Total cash, cash equivalents, and restricted cash shown in the Consolidated Condensed Statement of Cash Flows	$	5,461	$	6,778

Income Tax Payments:

The Company made income tax payments as follows:

	Three months ended July 31,
($ in thousands)	2018		2017
State and local income tax payments	$	102	$	27
Federal income tax payments to the Parent	$	-	$	-

XML

Note 5 - Employees' Profit Sharing and Savings Plan

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Compensation Related Costs, General [Text Block]

Note

5

- Employees' Profit Sharing and Savings Plan:

Substantially all employees of the Company and its subsidiaries are members of the Value Line, Inc. Profit Sharing and Savings Plan (the "Plan"). In general, this is a qualified, contributory plan which provides for a discretionary annual Company contribution which is determined by a formula based on the salaries of eligible employees and the amount of consolidated net operating income as defined in the Plan. For the

three

months ended

July 31, 2018

and

July 31, 2017,

the estimated profit sharing plan contributions, which are included as expenses in salaries and employee benefits in the Consolidated Condensed Statements of Income, were

$107,000

in both years.

XML

Note 6 - Comprehensive Income

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

Note

6

- Comprehensive Income:

The FASB's ASC Comprehensive Income topic requires the reporting of comprehensive income in addition to net income from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that otherwise would

not

be recognized in the calculation of net income.

As of

July 31, 2018

and

July 31, 2017,

the Company held equity securities consisting primarily of ETFs with high relative dividend yields that are classified as securities available-for-sale on the Consolidated Condensed Balance Sheets. The change in valuation of these securities, net of deferred income taxes, has been recorded in accumulated other comprehensive income in the Company's Consolidated Condensed Balance Sheets.

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the

three

months ended

July 31, 2018

are as follows:

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	539	$	(113	)	$	426
	$	539	$	(113	)	$	426

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the

three

months ended

July 31, 2017

are as follows:

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	142	$	(50	)	$	92
	$	142	$	(50	)	$	92

XML

Note 7 - Related Party Transactions

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note

7

- Related Party Transactions:

Investment Management (overview):

The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company

no

longer reports this operation as a separate business segment, although it still maintains a significant interest in the cash flows generated by this business and will receive non-voting revenues and non-voting profits interests forward, as discussed below.

Total assets in the Value Line Funds managed and/or distributed by EAM at

July 31, 2018,

were

$2.66

billion,

7%

above total assets of

$2.49

billion in the Value Line Funds managed and/or distributed by EAM at

July 31, 2017.

The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of

41%

to

55%

of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and

50%

of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other

50%

of residual profits of EAM. Distribution is

not

less than

90%

of EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues is calculated each fiscal quarter. The applicable recent non-voting revenues interest percentage for the

first

quarter of fiscal

2019

was

50.3%.

EAM Trust - VLI's non-voting revenues and non-voting profits interests:

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from

41%

to

55%

of EAM's investment management fee revenues from its mutual fund and separate accounts business. EAM currently has

no

separately managed account fees. The Company recorded income from its non-voting revenues interest and its non-voting profits interests in EAM as follows:

	Three Months Ended July 31,
($ in thousands)	2018		2017
Non-voting revenues interest in EAM	$	1,968	$	1,978
Non-voting profits interest in EAM		303		158
	$	2,271	$	2,136

At

July 31, 2018,

the Company's investment in EAM includes a receivable of

$2,279,000

representing the quarterly distribution of the non-voting revenues share and non-voting profits share.

Transactions with Parent:

During the

three

months ended

July 31, 2018

and

July 31, 2017,

the Company was reimbursed

$73,000

and

$70,000,

respectively, for payments it made on behalf of and for services the Company provided to the Parent Company, Arnold Bernhard and Co., Inc. ("Parent"). There were

no

receivables from the Parent on the Consolidated Condensed Balance Sheets at

July 31, 2018

and

April 30, 2018.

The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the

two

Companies between them. The Company didn't make any federal tax payments to the Parent during the

three

months ended

July 31, 2018

or

July 31, 2017.

As of

July 31, 2018,

the Parent owned

89.11%

of the outstanding shares of common stock of the Company.

XML

Note 8 - Federal, State and Local Income Taxes

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

8

- Federal, State and Local Income Taxes:

In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following:

	Three Months Ended July 31,
($ in thousands)	2018			2017
Current tax expense:
Federal	$	734		$	1,319
State and local		88			79
Current tax expense		822			1,398
Deferred tax expense (benefit):
Federal		-			(186	)
State and local		(271	)		(30	)
Deferred tax expense (benefit):		(271	)		(216	)
Income tax provision	$	551		$	1,182

On

December 22, 2017

H.R.

1,

originally known as the Tax Cuts and Jobs Act, (the "Tax Act") was enacted. The Tax Act lowers the U.S. federal income tax rate ("Federal Tax Rate") from

35%

to

21%

effective

January 1, 2018.

Accordingly, the Company computed Federal income tax expense for the fiscal quarter ended

July 31, 2018

using the Federal Tax Rate of

21%.

The

21%

Federal Tax Rate applies to the fiscal year ending

April 30, 2019

and each year thereafter.

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the

three

months ended

July 31, 2018

and

July 31, 2017

were

15.07%

and

34.80%,

respectively. The decline in the overall effective tax rate during the quarter ended

July 31, 2018

is primarily a result of a decline in Federal Tax Rate and a decrease in the state and local allocation factors on the deferred tax on the unrealized gain from deconsolidation of EAM. In fiscal

2018

the U.S. statutory federal corporate income tax rate was reduced from

35%

to

21%

on the Company’s long-term deferred tax liabilities, resulting in a tax benefit of

54.51%

of pre-tax income for the

twelve

months ended

April 30, 2018,

primarily attributable to the effect on the long-term deferred tax liability. The Company re-calculated its net deferred tax assets and liabilities using the Federal Tax Rate under the Tax Act. The effect of the re-calculation was reflected entirely in the

third

quarter ended

January 31, 2018 (

the period that included the enactment date) and was allocated directly to both current and deferred income tax expenses from continuing operations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to the new tax law, including but

not

limited to an increase or decrease in the ratio of items that do

not

have tax consequences to pre-tax income, the Company's geographic profit mix between tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

Deferred income taxes, a liability, are provided for temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effect of temporary differences giving rise to the Company's long-term deferred tax liability are as follows:

	July 31,			April 30,
($ in thousands)	2018			2018
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	10,660		$	10,658
Deferred non-cash post-employment compensation		(372	)		(372	)
Depreciation and amortization		108			119
Unrealized loss (gain) on securities held for sale		321			208
Deferred charges		(182	)		(331	)
Other		72			210
Total federal tax liability		10,607			10,492
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,027			1,299
Deferred non-cash post-employment compensation		36			(45	)
Depreciation and amortization		10			15
Other		(107	)		(47	)
Total state and local tax liabilities		966			1,222
Deferred tax liability, long-term	$	11,573		$	11,714

At the end of each interim reporting period, the Company estimates the effective income tax rate to apply for the full fiscal year. The Company uses the effective income tax rate determined to provide for income taxes on a year-to-date basis and reflects the tax effect of any tax law changes and certain other discrete events in the period in which they occur.

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following:

	Three Months Ended July 31,
	2018			2017
U.S. statutory federal tax rate		21.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		-5.70	%		0.73	%
Effect of dividends received deductions		-0.27	%		-0.37	%
Domestic production tax credit		-			-0.65	%
Other, net		0.04	%		0.09	%
Effective income tax rate		15.07	%		34.80	%

The Company believes that, as of

July 31, 2018,

there were

no

material uncertain tax positions that would require disclosure under GAAP.

The Company is included in the consolidated federal income tax return of the Parent, and files combined income tax returns with the Parent on a unitary basis in certain states.  The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company's liability/(benefit) as if it filed a separate return. 

The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended

2014

through

2017,

are subject to examination by the tax authorities, generally for

three

years after they are filed with the tax authorities. The Company is presently engaged in a federal tax audit for the fiscal year ended

April 30, 2015

and does

not

expect it to have a material effect on the financial statements.

XML

Note 9 - Property and Equipment

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

9

- Property and Equipment:

Property and equipment are carried at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the remaining terms of the leases. For income tax purposes, depreciation of furniture and equipment is computed using accelerated methods and buildings and leasehold improvements are depreciated over prescribed extended tax lives. Property and equipment, net, on the Consolidated Condensed Balance Sheets was comprised of the following:

	July 31,			April 30,
($ in thousands)	2018			2018
Building and leasehold improvements	$	1,013		$	1,013
Furniture and equipment		4,036			4,031
		5,049			5,044
Accumulated depreciation and amortization		(3,737	)		(3,673	)
Total property and equipment, net	$	1,312		$	1,371

XML

Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Internal Use Software Disclosure [Text Block]

Note

10

- Accounting for the Costs of Computer Software Developed for Internal Use:

The Company has adopted the provisions of the Statement of Position

98

-

1

(SOP

98

-

1

), "Accounting for the Costs of Computer Software Developed for Internal Use". SOP

98

-

1

requires companies to capitalize as long-lived assets many of the costs associated with developing or purchasing software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.

The Company did

not

incur and did

not

capitalize expenditures related to the development of software for internal use during the

three

months ended

July 31, 2018

or

July 31, 2017.

Total amortization expenses during the

three

months ended

July 31, 2018

and

July 31, 2017,

were

$44,000

and

$165,000,

respectively.

XML

Note 11 - Treasury Stock and Repurchase Program

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Treasury Stock [Text Block]

Note

11

- Treasury Stock and Repurchase Program:

On

September 19, 2012,

the Company's Board of Directors approved a share repurchase program authorizing the repurchase of shares of the Company’s common stock up to an aggregate purchase price of

$3,000,000.

The repurchases

may

be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block purchases or otherwise. The repurchase program

may

be suspended or discontinued at any time at the Company’s discretion and has

no

set expiration date.

Treasury stock, at cost, consists of the following:

(in thousands except for shares and cost per share)	Shares		Total Average Cost Assigned		Average Cost per Share		Aggregate Purchase Price Remaining Under the Program
Balance as of April 30, 2018 (1)(2)		308,380	$	4,135	$	13.41	$	255
Purchases effected in open market during the months ended (2):
May 31, 2018		2,286		46		20.26		209
June 30, 2018		-		-		-		-
July 31, 2018		-		-		-		-
Balance as of July 31, 2018		310,666	$	4,181	$	13.46	$	209

(

1

) Includes

85,219

shares with a total average cost of

$1,036,000

that were acquired during the former repurchase program, which was authorized in

January 2011

and expired in

January 2012;

18,400

shares were acquired prior to

January 2011.

(

2

) Were acquired during the

$3

million repurchase program authorized in

September 2012.

XML

Note 12 - Lease Commitments

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note

12

- Lease Commitments:

On

November 30, 2016,

Value Line, Inc., received consent from the landlord at

551

Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on

December 1, 2016.

Pursuant to the agreement Value Line leased from ABM

24,726

square feet of office space located on the

second

and

third

floors at

551

Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on

December 1, 2016

and ending on

November 29, 2027.

Base rent under the sublease agreement is

$1,126,000

per annum during the

first

year with an annual increase in base rent of

2.25%

scheduled for each subsequent year, payable in equal monthly installments on the

first

day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of

$469,000

in

October 2016,

which is scheduled to be reduced to

$305,000

on

September 30, 2021

and fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (

23%

initially) in the Company’s annual rental expenditure taking into account free rent for the

first

six

months of the sublease. Sublandlord provided Value Line a work allowance of

$417,000

which accompanied with the

six

months free rent worth

$563,000

was applied against the Company’s obligation to pay rent at our NYC headquarters, delaying the actual rent payments until

November 2017.

On

February

29,

2016,

the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased

24,110

square feet of warehouse and appurtenant office space located at

205

Chubb Ave., Lyndhurst, NJ (“Warehouse”) beginning on

May 1, 2016

and ending on

April 30, 2024 (

“Lease”). Base rent under the Lease is

$192,880

per annum payable in equal monthly installments on the

first

day of each month and will gradually increase to

$237,218

in fiscal

2024,

subject to customary increases based on operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of

$32,146,

which will be fully refunded after the lease term expires. The lease is a net lease requiring the Company to pay for certain operating expenses associated with the Warehouse as well as utilities supplied to the Warehouse.

The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease.

Future minimum payments, exclusive of potential increases in real estate taxes and operating cost escalations, under operating leases for office space, with remaining terms of

one

year or more, are as follows:

Fiscal Years Ended April 30,	($ in thousands)
2020		1,399
2021		1,432
2022		1,506
2023		1,833
2024 and thereafter		6,663
	$	12,833

For the

three

months ended

July 31, 2018

and

2017,

rental expenses were

$317,000

and

$309,000,

respectively.

XML

Note 13 - Copyright Data Fees

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Copyright Data Fees [Text Block]

Note

13

- Copyright Data Fees:

During the

three

months ended

July 31, 2018,

copyright data fees of

$1,679,000

were

13.9%

above fiscal

2018.

As of

July 31, 2018,

total

third

party sponsored assets were attributable to

three

contracts for copyright data representing

$4.4

billion in various products, as compared to

three

contracts for copyright data representing

$3.9

billion in assets at

July 31, 2017.

XML

Note 14 - Restricted Cash and Deposits

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Restricted Assets Disclosure [Text Block]

Note

14

- Restricted Cash and Deposits:

Restricted Money Market Investment in the noncurrent assets on the Consolidated Condensed Balance Sheet at

July 31, 2018,

includes

$469,000,

which represents cash invested in a bank money market fund securing a letter of credit ("LOC") in the amount of

$469,000

issued to the sublandlord as a security deposit for the Company's NYC leased corporate office facility.

XML

Note 15 - Concentration

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

15

- Concentration:

During the

three

months ended

July 31, 2018,

18.7%

of total publishing revenues of

$8,971,000

were derived from a single customer.

XML

Note 16 - Concentration of Credit Risk

3 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Concentration of Credit Risk [Text Block]

Note

16

- Concentration of Credit Risk:

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to

$250,000.

As of

July 31, 2018

and

July 31, 2017,

the Company had

$899,000

and

$4,670,000,

respectively, in excess of the FDIC insured limit.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Jul. 31, 2018

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates:

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results

may

differ from those estimates.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation:

The Company follows the guidance in the Financial Accounting Standards Board's ("FASB") Topic

810

“Consolidation” to determine if it should consolidate its investment in a variable interest entity ("VIE"). A VIE is a legal entity in which either (i) equity investors do

not

have sufficient equity investment at risk to enable the entity to finance its activities independently or (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity's economic performance. A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary. The determination of a controlling financial interest in a VIE is based on a qualitative assessment to identify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a VIE and the Company has determined it is

not

the primary beneficiary of a VIE (see Note

3

).

 

In accordance with FASB's Topic

810,

the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. On

December 23, 2010,

the Company completed the Restructuring Transaction and deconsolidated the related affiliates in accordance with FASB's Topic

810.

As part of the Restructuring Transaction, the Company received a significant non-voting revenues interest (excluding distribution revenues) and a significant non-voting profits interest in the new entity, EULAV Asset Management, a Delaware statutory trust (“EAM” or “EAM Trust”). The Company relied on the guidance in FASB's ASC Topics

323

and

810

in its determination

not

to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Condensed Statements of Income.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition:

Depending upon the product, subscription fulfillment for Value Line periodicals and related publications is available in print or digitally, via internet access. The length of a subscription varies by product and offer received by the subscriber. Generally, subscriptions are offered as annual subscriptions. Subscription revenues, net of discounts, are recognized ratably on a straight line basis when the product is served to the client over the life of the subscription. Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheets are shown as unearned revenue within current and long-term liabilities.

 

Copyright data revenues are derived from providing certain Value Line trademarks and the Value Line Proprietary Ranking System information to

third

parties under written agreements for use in selecting securities for

third

party marketed products, including unit investment trusts, annuities and exchange traded funds ("ETFs"). The Company earns asset-based copyright data fees as specified in the individual agreements. Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value.

Equity Method Investments [Policy Text Block]

Investment in Unconsolidated Entities:

The Company accounts for its investment in its unconsolidated entity, EAM, using the equity method of accounting in accordance with FASB’s ASC

323.

The equity method is an appropriate means of recognizing increases or decreases measured by GAAP in the economic resources underlying the investments. Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee.

The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a "non-voting revenues interest" and a "non-voting profits interest" in EAM as defined in the EAM Trust Agreement. The non-voting revenues interest entitles the Company to receive a range of

41%

to

55%,

based on the amount of EAM’s adjusted gross revenues, excluding EULAV Securities' distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive

50%

of EAM's profits, subject to certain limited adjustments as defined in the EAM Trust Agreement (“Profits Interest”). The Revenues Interest and at least

90%

of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. Subsequent to the Restructuring Date, the Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary EULAV Securities. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction. Although the Company does

not

have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, the Company has a contractual right to receive its share of EAM's revenues and profits.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements:

In

February 2016,

the FASB issued ASU

2016

-

02,

Leases (Topic

842

) (“ASU

2016

-

02"

).  The core principle of Topic

842

requires that a lessee should recognize the assets and liabilities on the balance sheet and disclose key information about leasing arrangements.  The amendments in ASU

2016

-

2

are effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years.  The guidance is required to be adopted at the earliest period presented using a modified retrospective approach.  The adoption of ASU

2016

-

02

will

not

have a material impact on our consolidated condensed financial statements and related disclosures.

In

August 2016,

the FASB issued Accounting Standards Update

No.

2016

-

15,

Classification of Certain Cash Receipts and Cash Payments     (a consensus of the Emerging Issues Task Force) (“ASU

2016

-

15”

). The amendments in ASU

2016

-

15

address

eight

specific cash flow issues and apply to all entities that are required to present a statement of cash flows under ASC Topic

230,

Statement of Cash Flows. The amendments in ASU

2016

-

15

are effective for public business entities for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. The Company has adopted ASU

2016

-

15

in the

first

quarter of fiscal

2019.

  As a result, it has reclassified, within the Consolidated Condensed Statement of Cash Flows,

$2.3

million and

$2.1

million, for the

three

months ended

July 31, 2018

and

July 31, 2017,

respectively, of EAM non-voting revenues interest and profits interest, from operating activities to investing activities.

In

May 2014,

the FASB issued ASU

No.

2014

-

09,

“Revenue from Contracts with Customers (Topic

606

)”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. In addition, ASU

No.

2014

-

09

requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU

No.

2014

-

09

supersedes most existing U.S. GAAP revenue recognition principles, and it permits the use of either the retrospective or cumulative effect transition method. ASU

No.

2014

-

09

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those annual periods.  The Company has adopted ASU

No.

2014

-

09

in the

first

quarter of fiscal

2019,

which does

not

have a material impact on the Company's consolidated condensed financial statements and related disclosures.

In

November 2016,

the FASB issued ASU

No.

2016

-

18,

"Statement of Cash Flows (Topic

230

):  Restricted Cash (a consensus of the FASB Emerging Issues Task Force)".  This ASU requires that the reconciliation of the beginning-of-period and end-of-period amounts shown in the statement of cash flows include cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents.   ASU

No.

2016

-

18

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within those annual periods.  The Company has adopted ASU

No.

2016

-

18

in the

first

quarter of fiscal

2019,

which does

not

have a material impact on the Company's consolidated condensed financial statements and related disclosures.  

On

June 21, 2018,

the United States Supreme Court reversed the

1992

ruling in

Quill

, which protected firms mailing items by common carrier into a state where it had

no

physical presence from having to collect sales tax in such state.  The Company is evaluating the impact of the

2018

ruling (

South Dakota vs. Wayfair

) on its operations.

Fair Value Measurement, Policy [Policy Text Block]

Valuation of Securities:

The Company's securities classified as cash equivalents and available-for-sale consist of shares of money market funds that invest primarily in short-term U.S. Government securities and investments in equities including ETFs and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB's ASC

820.

The securities classified as available-for-sale reflected in the Consolidated Condensed Balance Sheets are valued at market and unrealized gains and losses, net of applicable taxes, are reported as a separate component of shareholders' equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings as of the trade date and are determined on the identified cost method.

The Company classifies its securities available-for-sale as current assets to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise.

Market valuations of securities listed on a securities exchange and ETF shares are based on the closing sales prices on the last business day of each month. The market value of the Company's fixed maturity U.S. Government debt securities is determined utilizing publicly quoted market prices. Cash equivalents consist of investments in money market funds that invest primarily in U.S. Government securities valued in accordance with rule

2a

-

7

under the

1940

Act.

The Fair Value Measurements Topic of FASB's ASC defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fair Value Measurements Topic established a

three

-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The

three

-tier hierarchy of inputs is summarized in the

three

broad levels listed below.

Level

1

– quoted prices in active markets for identical investments

Level

2

– other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level

3

– significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)

The following summarizes the levels of fair value measurements of the Company’s investments:

	As of July 31, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,084	$	-	$	-	$	4,084
Securities available-for-sale		18,870		-		-		18,870
	$	22,954	$	-	$	-	$	22,954

	As of April 30, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,982	$	-	$	-	$	4,982
Securities available-for-sale		17,844		-		-		17,844
	$	22,826	$	-	$	-	$	22,826

The Company had

no

other financial instruments such as futures, forwards and swap contracts. For the periods ended

July 31, 2018

and

April 30, 2018,

there were

no

Level

2

nor Level

3

investments. The Company does

not

have any liabilities subject to fair value measurement.

Advertising Costs, Policy [Policy Text Block]

Advertising expenses:

The Company expenses advertising costs as incurred.

Income Tax, Policy [Policy Text Block]

Income Taxes:

The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB's ASC. Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. The Company adopted the provisions of ASU

2015

-

17,

Income taxes (Topic

740

) during the

first

quarter of fiscal

2018

and continues to classify all deferred taxes as long-term liabilities on the Consolidated Condensed Balance Sheets.

The Income Tax Topic of the FASB's ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. As of

July 31, 2018,

management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is

no

material impact to the Company's financial statements.

Earnings Per Share, Policy [Policy Text Block]

Earnings per share:

Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each period. Any shares that are reacquired during the period are weighted for the portion of the period that they are outstanding. The Company does

not

have any potentially dilutive common shares from outstanding stock options, warrants, restricted stock, or restricted stock units.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents:

For purposes of the Consolidated Condensed Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than

three

months to be cash and cash equivalents. As of

July 31, 2018

and

April 30, 2018,

cash equivalents included

$4,084,000

and

$4,982,000,

respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.

XML

Note 1 - Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

	As of July 31, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,084	$	-	$	-	$	4,084
Securities available-for-sale		18,870		-		-		18,870
	$	22,954	$	-	$	-	$	22,954

	As of April 30, 2018
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	4,982	$	-	$	-	$	4,982
Securities available-for-sale		17,844		-		-		17,844
	$	22,826	$	-	$	-	$	22,826

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Note 2 - Investments (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	1,532	$	-	$	9,917

			Gross Unrealized		Gross Unrealized
($ in thousands)	Cost		Holding Gains		Holding Losses		Fair Value
ETFs - equities	$	8,385	$	994	$	-	$	9,379

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	8,705	$	6	$	(7	)	$	8,704
Due 1 year through 5 years		250		-		(1	)		249
Total investment in government debt securities	$	8,955	$	6	$	(8	)	$	8,953

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses			Fair Value
Maturity
Due within 1 year	$	7,868	$	10	$	(12	)	$	7,866
Due 1 year through 5 years		600		-		(1	)		599
Total investment in government debt securities	$	8,468	$	10	$	(13	)	$	8,465

Investment Income [Table Text Block]

	Three Months Ended July 31,
($ in thousands)	2018		2017
Dividend income	$	67	$	52
Interest income		35		25
Other		12		19
Total income from securities transactions, net	$	114	$	96

Investment Holdings, Other than Securities [Table Text Block]

	Three Months Ended July 31,
($ in thousands) (unaudited)	2018		2017
Investment management fees earned from the Value Line Funds, net of fee waivers	$	4,109	$	3,958
12b-1 fees and other fees, net of fee waivers	$	1,704	$	1,549
Other income	$	71	$	55
Investment management fee waivers	$	111	$	154
12b-1 fee waivers	$	159	$	235
Value Line’s non-voting revenues interest	$	1,968	$	1,978
EAM's net income (1)	$	606	$	316

Summary Investment Holdings [Table Text Block]

	July 31,			April 30,
($ in thousands)	2018			2018
	(unaudited)
EAM's total assets	$	60,278		$	60,203
EAM's total liabilities (1)		(3,378	)		(3,128	)
EAM's total equity	$	56,900		$	57,075

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Note 3 - Variable Interest Entity (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Variable Interest Entities [Table Text Block]

			Value Line
($ in thousands)	VIE Assets		Investment in EAM Trust (1)		Liabilities		Maximum Exposure to Loss
As of July 31, 2018 (unaudited)	$	60,278	$	58,331	$	-	$	58,331
As of April 30, 2018	$	60,203	$	58,233	$	-	$	58,233

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Note 4 - Supplementary Cash Flow Information (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Three months ended July 31,
($ in thousands)	2018		2017
Cash and cash equivalents	$	4,992	$	6,309
Restricted cash		469		469
Total cash, cash equivalents, and restricted cash shown in the Consolidated Condensed Statement of Cash Flows	$	5,461	$	6,778

	Three months ended July 31,
($ in thousands)	2018		2017
State and local income tax payments	$	102	$	27
Federal income tax payments to the Parent	$	-	$	-

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Note 6 - Comprehensive Income (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Comprehensive Income (Loss) [Table Text Block]

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	539	$	(113	)	$	426
	$	539	$	(113	)	$	426

($ in thousands)	Amount Before Tax		Tax Expense			Amount Net of Tax
Change in unrealized gains on securities	$	142	$	(50	)	$	92
	$	142	$	(50	)	$	92

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Note 7 - Related Party Transactions (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Non Voting Revenues Interest and Non Voting Profits Interests [Table Text Block]

	Three Months Ended July 31,
($ in thousands)	2018		2017
Non-voting revenues interest in EAM	$	1,968	$	1,978
Non-voting profits interest in EAM		303		158
	$	2,271	$	2,136

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Note 8 - Federal, State and Local Income Taxes (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Three Months Ended July 31,
($ in thousands)	2018			2017
Current tax expense:
Federal	$	734		$	1,319
State and local		88			79
Current tax expense		822			1,398
Deferred tax expense (benefit):
Federal		-			(186	)
State and local		(271	)		(30	)
Deferred tax expense (benefit):		(271	)		(216	)
Income tax provision	$	551		$	1,182

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	July 31,			April 30,
($ in thousands)	2018			2018
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	10,660		$	10,658
Deferred non-cash post-employment compensation		(372	)		(372	)
Depreciation and amortization		108			119
Unrealized loss (gain) on securities held for sale		321			208
Deferred charges		(182	)		(331	)
Other		72			210
Total federal tax liability		10,607			10,492
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,027			1,299
Deferred non-cash post-employment compensation		36			(45	)
Depreciation and amortization		10			15
Other		(107	)		(47	)
Total state and local tax liabilities		966			1,222
Deferred tax liability, long-term	$	11,573		$	11,714

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Three Months Ended July 31,
	2018			2017
U.S. statutory federal tax rate		21.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		-5.70	%		0.73	%
Effect of dividends received deductions		-0.27	%		-0.37	%
Domestic production tax credit		-			-0.65	%
Other, net		0.04	%		0.09	%
Effective income tax rate		15.07	%		34.80	%

XML

Note 9 - Property and Equipment (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Property, Plant and Equipment [Table Text Block]

	July 31,			April 30,
($ in thousands)	2018			2018
Building and leasehold improvements	$	1,013		$	1,013
Furniture and equipment		4,036			4,031
		5,049			5,044
Accumulated depreciation and amortization		(3,737	)		(3,673	)
Total property and equipment, net	$	1,312		$	1,371

XML

Note 11 - Treasury Stock and Repurchase Program (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Class of Treasury Stock [Table Text Block]

(in thousands except for shares and cost per share)	Shares		Total Average Cost Assigned		Average Cost per Share		Aggregate Purchase Price Remaining Under the Program
Balance as of April 30, 2018 (1)(2)		308,380	$	4,135	$	13.41	$	255
Purchases effected in open market during the months ended (2):
May 31, 2018		2,286		46		20.26		209
June 30, 2018		-		-		-		-
July 31, 2018		-		-		-		-
Balance as of July 31, 2018		310,666	$	4,181	$	13.46	$	209

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Note 12 - Lease Commitments (Tables)

3 Months Ended

Jul. 31, 2018

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Fiscal Years Ended April 30,	($ in thousands)
2020		1,399
2021		1,432
2022		1,506
2023		1,833
2024 and thereafter		6,663
	$	12,833

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Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Net Cash Provided by (Used in) Operating Activities, Total	$ 1,512,000	$ 2,978,000
Money Market Funds, at Carrying Value	4,084,000		$ 4,982,000
Net Cash Provided by (Used in) Investing Activities, Total	(574,000)	(1,438,000)
Accounting Standards Update 2016-15 [Member]
Net Cash Provided by (Used in) Operating Activities, Total	2,300,000	$ 2,100,000
Net Cash Provided by (Used in) Investing Activities, Total	$ (2,300,000)
EAM Trust [Member]
Non Voting Profits Interest Percent	50.00%
EAM Trust [Member] | Minimum [Member]
Non Voting Revenues Interest Percent	41.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement	90.00%
EAM Trust [Member] | Maximum [Member]
Non Voting Revenues Interest Percent	55.00%

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Note 1 - Organization and Summary of Significant Accounting Policies - Schedule of Fair Value Measurements of Investments (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Securities available-for-sale	$ 18,870	$ 17,844
	22,954	22,826
Money Market Funds [Member]
Cash equivalents	4,084	4,982
Fair Value, Inputs, Level 1 [Member]
Securities available-for-sale	18,870	17,844
	22,954	22,826
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash equivalents	4,084	4,982
Fair Value, Inputs, Level 2 [Member]
Securities available-for-sale
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member]
Securities available-for-sale
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Cash equivalents

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Note 2 - Investments (Details Textual) - USD ($)		3 Months Ended		12 Months Ended
		Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Available-for-sale Equity Securities, Amortized Cost Basis, Total		$ 8,385,000		$ 8,385,000
Available-for-sale Securities, Equity Securities		9,917,000		$ 9,379,000
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent, Total		539,000	$ 142,000
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax		$ 113,000	50,000
Available-for-sale Securities, Debt Securities, Average Yield		1.70%		1.24%
Equity Method Investments		$ 58,331,000		$ 58,233,000
EAM Trust [Member]
Equity Method Investments	[1]	58,331,000		58,233,000
Fair Value of Contributed Capital at Inception		55,805,000		55,805,000
Cash and Liquid Securities in Excess of Working Capital Requirements Contributed to CapitalAccount		5,820,000		5,820,000
Equity Method Investment, Other than Temporary Impairment		$ 0		0
Percentage of Non Voting Profit Interest		50.00%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable		$ 2,279,000		2,113,000
Equity Securities [Member]
Available-for-sale Securities, Gross Realized Gain (Loss), Total		0	0
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent, Total		538,000	152,000
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax		113,000	54,000
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax, Ending Balance		1,532,000	994,000
AOCI Tax, Attributable to Parent		322,000	209,000
Debt Securities [Member]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent, Total		(2,000)	10,000
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax		(1,000)	4,000
Accumulated Other Comprehensive Income (Loss), Debt Securities, Available-for-sale, Adjustment, after Tax, Ending Balance		(1,000)		(3,000)
AOCI Tax, Attributable to Parent		(200)		$ (600)
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale, Total		$ 1,637,000	$ 1,394,000

[1] Reported within Long Term Assets on the Consolidated Condensed Balance Sheets.

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Note 2 - Investments - Schedule of Carrying Value and Fair Value of Securities Available-for-sale (Details) - USD ($)	Jul. 31, 2018	Apr. 30, 2018
Cost	$ 8,385,000	$ 8,385,000
Fair value	9,917,000	9,379,000
Due within 1 year, amortized cost	8,705,000	7,868,000
Due within 1 year, gross unrealized gains	6,000	10,000
Due within 1 year, gross unrealized losses	(7,000)	(12,000)
Due within 1 year, fair value	8,704,000	7,866,000
Due 1 year through 5 years, amortized cost	250,000	600,000
Due 1 year through 5 years, gross unrealized gains
Due 1 year through 5 years, gross unrealized losses	(1,000)	(1,000)
Due 1 year through 5 years, fair value	249,000	599,000
Amortized cost	8,955,000	8,468,000
Gross unrealized gains	6,000	10,000
Gross unrealized losses	(8,000)	(13,000)
Fair value	8,953,000	8,465,000
Exchange Traded Funds [Member]
Cost	8,385,000	8,385,000
Gross unrealized gains	1,532,000	994,000
Gross Unrealized Losses
Fair value	$ 9,917,000	$ 9,379,000

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Note 2 - Investments - Income From Securities Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Dividend income	$ 67	$ 52
Interest income	35	25
Other	12	19
Total income from securities transactions, net	$ 114	$ 96

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Note 2 - Investments - Components of EAM's Investment Management Operations (Details) - USD ($) $ in Thousands		3 Months Ended
		Jul. 31, 2018	Jul. 31, 2017
Revenues		$ 8,971	$ 8,914
Value Line’s non-voting revenues interest		1,968	1,978
EAM's net income (1)		3,104	2,215
EAM Trust [Member]
Other income		71	55
Investment management fee waivers		111	154
12b-1 fee waivers		159	235
Value Line’s non-voting revenues interest		1,968	1,978
EAM's net income (1)	[1]	606	316
EAM Trust [Member] | Investment Advice [Member]
Revenues		4,109	3,958
EAM Trust [Member] | Distribution and Shareholder Service [Member]
Revenues		$ 1,704	$ 1,549

[1] Represents EAM's net income, after giving effect to Value Line's non-voting revenues interest, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

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Note 2 - Investments - Assets and Liabilities (Details) - EAM Trust [Member] - USD ($) $ in Thousands		Apr. 30, 2018	Apr. 30, 2017
EAM's total assets		$ 60,278	$ 60,203
EAM's total liabilities (1)	[1]	(3,378)	(3,128)
EAM's total equity		$ 56,900	$ 57,075

[1] At July 31, 2018 and April 30, 2018, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues interest and non-voting profits interest of $2,279,000 and $2,113,000, respectively.

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Note 3 - Variable Interest Entity (Details Textual)	3 Months Ended
	Jul. 31, 2018
EAM Trust [Member]
Non Voting Profits Interest Percent	50.00%

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Note 3 - Variable Interest Entity - Total Assets, the Maximum Exposure to Loss, and Value of the Assets and Liabilities in EAM (Details) - USD ($)		Jul. 31, 2018	Apr. 30, 2018
Equity Method Investments		$ 58,331,000	$ 58,233,000
EAM Trust [Member]
VIE Assets		60,278,000	60,203,000
Equity Method Investments	[1]	58,331,000	58,233,000
Value Line Liabilities
Value Line Liabilities		$ 58,331,000	$ 58,233,000

[1] Reported within Long Term Assets on the Consolidated Condensed Balance Sheets.

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Note 4 - Supplementary Cash Flow Information - Supplementary Cash Flow Elements (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018	Apr. 30, 2017
Cash and cash equivalents	$ 4,992	$ 6,309	$ 5,941
Restricted cash	469	469
Total cash, cash equivalents, and restricted cash shown in the Consolidated Condensed Statement of Cash Flows	5,461	6,778	$ 6,410	$ 7,026
State and local income tax payments	102	27
Federal income tax payments to the Parent

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Note 5 - Employees' Profit Sharing and Savings Plan (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Deferred Compensation Arrangement with Individual, Contributions by Employer	$ 107,000	$ 107,000

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Note 6 - Comprehensive Income - Components of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Change in unrealized gains (losses) on securities, amount before tax	$ 539	$ 142
Change in unrealized gains (losses) on securities, tax expense	(113)	(50)
Change in unrealized gains (losses) on securities, amount net of tax	426	92
Other comprehensive income (loss), available-for-sale securities adjustment, amount before tax	539	142
Other comprehensive income (loss), available-for-sale securities, tax expense	(113)	(50)
Other comprehensive income (loss), available-for-sale securities adjustment, amount net of tax	$ 426	$ 92

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Note 7 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018
Ownership Percentage By Parent	89.11%
Value Line Inc [Member]
Revenue from Related Parties	$ 73,000	$ 70,000
Accounts Receivable, Related Parties	0		$ 0
EAM Trust [Member]
Assets under Management, Carrying Amount	$ 2,660,000,000	$ 2,490,000,000
Percentage of Assets Increased (Decreased) in Unconsolidated Entities	7.00%
Non Voting Profits Interest Percent	50.00%
Percentage of Non Voting Revenues Interest in Unconsolidated Entity	50.30%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable	$ 2,279,000		$ 2,113,000
EAM Trust [Member] | Minimum [Member]
Non Voting Revenues Interest Percent	41.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement	90.00%
EAM Trust [Member] | Maximum [Member]
Non Voting Revenues Interest Percent	55.00%

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Note 7 - Related Party Transactions - Non Voting Revenues Interest and Non Voting Profits Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Value Line’s non-voting revenues interest	$ 1,968	$ 1,978
Non-voting profits interest in EAM	303	158
	$ 2,271	$ 2,136

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Note 8 - Federal, State and Local Income Taxes (Details Textual)	3 Months Ended		12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2017
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%			35.00%
Effective Income Tax Rate Reconciliation, Percent, Total	15.07%	34.80%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent				(54.51%)
Earliest Tax Year [Member]
Open Tax Year	2014
Latest Tax Year [Member]
Open Tax Year	2017
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

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Note 8 - Federal, State and Local Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Current tax expense:
Federal	$ 734	$ 1,319
State and local	88	79
Current tax expense	822	1,398
Deferred tax expense (benefit):
Federal		(186)
State and local	(271)	(30)
Deferred tax expense (benefit):	(271)	(216)
Income tax provision	$ 551	$ 1,182

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Note 8 - Federal, State and Local Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Deferred tax liability	$ 11,573	$ 11,714
Deferred tax liability	11,573	11,714
Domestic Tax Authority [Member]
Deferred gain on deconsolidation of EAM	10,660	10,658
Deferred non-cash post-employment compensation	(372)	(372)
Depreciation and amortization	108	119
Unrealized loss (gain) on securities held for sale	321	208
Deferred charges	(182)	(331)
Other, asset	(72)
Other, liability		210
Deferred tax liability	10,607	10,492
Deferred tax liability	10,607	10,492
State and Local Jurisdiction [Member]
Deferred gain on deconsolidation of EAM	1,027	1,299
Deferred non-cash post-employment compensation	36	(45)
Depreciation and amortization	10	15
Other, liability	(107)	(47)
Deferred tax liability	966	1,222
Deferred tax liability	$ 966	$ 1,222

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Note 8 - Federal, State and Local Income Taxes - Effective Income Tax Rate Reconciliation (Details)	3 Months Ended		12 Months Ended
	Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2017
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%	35.00%
State and local income taxes, net of federal income tax benefit	(5.70%)	0.73%
Effect of dividends received deductions	(0.27%)	(0.37%)
Domestic production tax credit		0.65%
Other, net	0.04%	0.09%
Effective income tax rate	15.07%	34.80%

XML

Note 9 - Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Apr. 30, 2018
Building and leasehold improvements	$ 1,013	$ 1,013
Furniture and equipment	4,036	4,031
	5,049	5,044
Accumulated depreciation and amortization	(3,737)	(3,673)
Total property and equipment, net	$ 1,312	$ 1,371

XML

Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Capitalized Computer Software, Additions	$ 0	$ 0
Capitalized Computer Software, Amortization	$ 44,000	$ 165,000

XML

Note 11 - Treasury Stock and Repurchase Program (Details Textual) - USD ($)	1 Months Ended						3 Months Ended
	Jul. 31, 2018	Jun. 30, 2018	May 31, 2018	[1]	Jan. 30, 2012	Jan. 31, 2011	Jul. 31, 2018	Jul. 31, 2017	Sep. 19, 2012
Treasury Stock, Shares, Acquired			2,286
Treasury Stock, Value, Acquired, Cost Method			$ 46,000				$ 46,000	$ 40,000
September 2012 Share Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount									$ 3,000,000
Former Repurchase Program [Member]
Treasury Stock, Shares, Acquired					85,219
Treasury Stock, Value, Acquired, Cost Method					$ 1,036,000
January 2011 Share Repurchase Program [Member]
Treasury Stock, Shares, Acquired						18,400

[1] Were acquired during the $3 million repurchase program authorized in September 2012.

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Note 11 - Treasury Stock and Repurchase Program - Treasury Stock at Cost (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended				3 Months Ended
		Jul. 31, 2018	Jun. 30, 2018	May 31, 2018		Jul. 31, 2018	Jul. 31, 2017	Apr. 30, 2018	[1],[2]
Balance, shares (in shares)	[1],[2]			308,380		308,380
Balance, total average cost assigned	[1],[2]			$ 4,135		$ 4,135
Balance, average cost per share (in dollars per share)	[1],[2]			$ 13.41		$ 13.41
Balance, aggregate purchase price remaining under the program		$ 209		$ 209	[2]	$ 209		$ 255
Purchases effected in open market (in shares)				2,286	[2]
Purchases effected in open market, average cost assigned				$ 46	[2]	$ 46	$ 40
Purchases effected in open market, average cost per share (in dollars per share)				$ 20.26	[2]
Balance, shares (in shares)		310,666				310,666
Balance, total average cost assigned		$ 4,181				$ 4,181
Balance, average cost per share (in dollars per share)		$ 13.46				$ 13.46

[1] Includes 85,219 shares with a total average cost of $1,036,000 that were acquired during the former repurchase program, which was authorized in January 2011 and expired in January 2012; 18,400 shares were acquired prior to January 2011.

[2] Were acquired during the $3 million repurchase program authorized in September 2012.

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Note 12 - Lease Commitments (Details Textual)			3 Months Ended
	Nov. 30, 2016 USD ($) ft²	Feb. 29, 2016 USD ($) ft²	Jul. 31, 2018 USD ($)	Jul. 31, 2017 USD ($)	Sep. 30, 2021 USD ($)	Oct. 31, 2016 USD ($)
Operating Leases, Rent Expense, Total			$ 317,000	$ 309,000
Sublease to American Building Maintenance Industries, Incorporated [Member]
Area of Real Estate Property | ft²	24,726
Operating Leases, Annual Base Rent	$ 1,126,000
Base Rent Increase, Percent	2.25%
Security Deposit						$ 469,000
Annual Rental Expenditure, Initial, Decrease, Percentage	23.00%
Lessee Leasing Arrangements, Allowance	$ 417,000
Lessee Leasing Arrangements, Allowance, Six Months of Free Rent Payment	$ 563,000
Sublease to American Building Maintenance Industries, Incorporated [Member] | Scenario, Forecast [Member]
Security Deposit					$ 305,000
Seagis Property Group LP (the "Landlord") [Member] | Value Line Distribution Center ("VLDC") [Member]
Area of Real Estate Property | ft²		24,110
Operating Leases, Annual Base Rent		$ 192,880
Security Deposit		32,146
Base Rent Increase Amount		$ 237,218

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Note 12 - Lease Commitments - Future Minimum Payments (Details) $ in Thousands	Jul. 31, 2018 USD ($)
2020	$ 1,399
2021	1,432
2022	1,506
2023	1,833
2024 and thereafter	6,663
	$ 12,833

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Note 13 - Copyright Data Fees (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax	$ 8,971,000	$ 8,914,000
Percentage of Copyright Data Fees	13.90%
Third Party Sponsored Assets for Copyright Data	$ 4,400,000,000	3,900,000,000
License [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 1,679,000	$ 1,474,000

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Note 14 - Restricted Cash and Deposits (Details Textual) - USD ($)	Jul. 31, 2018	Apr. 30, 2018
Restricted Investments, Noncurrent	$ 469,000	$ 469,000
Cash Securing a Letter of Credit Issued as Security Deposit [Member]
Security Deposit	$ 469,000

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Note 15 - Concentration (Details Textual) - USD ($)	3 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax	$ 8,971,000	$ 8,914,000
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | One Single Customer [Member]
Concentration Risk, Percentage	18.70%
Revenue from Contract with Customer, Including Assessed Tax	$ 8,971,000

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Note 16 - Concentration of Credit Risk (Details Textual) - USD ($)	Jul. 31, 2018	Jul. 31, 2017
Cash, Uninsured Amount	$ 899,000	$ 4,670,000