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 October 31, 2016

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.)
485 Lexington Avenue, New York, New York	10017-2630
(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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]	Non-accelerated filer [X]	Smaller reporting company [  ]
		(Do not check if a smaller reporting company)

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 October 31, 2016
Common stock, $0.10 par value	9,715,128 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 October 31, 2016 and April 30, 2016	3
	Consolidated Condensed Statements of Income for the three and six months ended October 31, 2016 and October 31, 2015	4
	Consolidated Condensed Statements of Comprehensive Income for the three and six months ended October 31, 2016 and October 31, 2015	5
	Consolidated Condensed Statements of Cash Flows for the six months ended October 31, 2016 and October 31, 2015	6
	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the six months ended October 31, 2016	7
	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the six months ended October 31, 2015	8
	Notes to Consolidated Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	39
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
	Signatures	42

Part I - Financial Information

  Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Balance Sheets

(in thousands, except share amounts)

	October 31,			April 30,
	2016			2016
	(unaudited)
Assets
Current Assets:
Cash and cash equivalents (including short term investments of $5,321 and $12,037, respectively)	$	6,737		$	13,122
Securities available-for-sale		14,509			3,637
Accounts receivable, net of allowance for doubtful accounts of $17 and $22, respectively		1,734			1,254
Prepaid and refundable income taxes		58			126
Prepaid expenses and other current assets		1,445			1,381
Deferred income taxes		232			432
Total current assets		24,715			19,952
Long term assets:
Investment in EAM Trust		58,167			57,942
Restricted money market investment		469			-
Property and equipment, net		656			3,621
Capitalized software and other intangible assets, net		2,731			4,992
Total long term assets		62,023			66,555
Total assets	$	86,738		$	86,507
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities	$	1,481		$	2,669
Accrued salaries		1,146			1,066
Dividends payable		1,652			1,659
Accrued taxes on income		1,832			388
Unearned revenue		18,762			20,516
Total current liabilities		24,873			26,298
Long term liabilities:
Unearned revenue		4,035			4,926
Deferred income taxes		19,519			20,683
Total long term liabilities		23,554			25,609
Total liabilities		48,427			51,907
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		40,056			35,524
Treasury stock, at cost (284,872 and 243,411 shares, respectively)		(3,721	)		(3,040	)
Accumulated other comprehensive income, net of tax		(15	)		125
Total shareholders' equity		38,311			34,600
Total liabilities and shareholders' equity	$	86,738		$	86,507

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

3

Value Line, Inc.

Consolidated Condensed Statements of Income

(in thousands, except share & per share amounts)

(unaudited)

	For the Three Months Ended				For the Six Months Ended
	October 31,				October 31,
	2016		2015		2016		2015
Revenues:
Investment periodicals and related publications	$	7,629	$	8,039	$	15,279	$	16,223
Copyright data fees		1,021		598		1,892		1,246
Total publishing revenues		8,650		8,637		17,171		17,469
Gain on sale of operating facility		-		-		8,123		-
Total revenues		8,650		8,637		25,294		17,469
Expenses:
Advertising and promotion		620		748		1,528		1,732
Salaries and employee benefits		4,301		3,925		8,209		7,704
Production and distribution		2,350		2,065		4,824		4,030
Office and administration		1,356		1,073		2,573		2,218
Total expenses		8,627		7,811		17,134		15,684
Income from operations		23		826		8,160		1,785
Revenues and profits interests in EAM Trust		1,932		1,940		3,848		3,982
Income from securities transactions, net		61		31		94		82
Income before income taxes		2,016		2,797		12,102		5,849
Income tax provision		536		805		4,264		1,738
Net income	$	1,480	$	1,992	$	7,838	$	4,111
Earnings per share, basic & fully diluted	$	0.15	$	0.20	$	0.81	$	0.42
Weighted average number of common shares		9,718,650		9,787,610		9,729,002		9,795,672

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

4

Value Line, Inc.

Consolidated Condensed Statements of Comprehensive Income

(in thousands)

(unaudited)

	For the Three Months Ended					For the Six Months Ended
	October 31,					October 31,
	2016			2015		2016			2015
Net income	$	1,480		$	1,992	$	7,838		$	4,111
Other comprehensive income (loss), net of tax:
Change in unrealized gains on securities, net of taxes		(294	)		66		(140	)		(26	)
Other comprehensive income (loss)		(294	)		66		(140	)		(26	)
Comprehensive income	$	1,186		$	2,058	$	7,698		$	4,085

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

5

Value Line, Inc.

Consolidated Condensed Statements of Cash Flows

(in thousands)

(unaudited)

	For the Six Months Ended
	October 31,
	2016			2015
Cash flows from operating activities:
Net income	$	7,838		$	4,111
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		2,747			1,430
Non-voting revenues interest in EAM Trust		(3,586	)		(3,721	)
Non-voting profits interest in EAM Trust		(262	)		(261	)
Realized gain on sale of operating facility		(8,123	)		-
Realized losses on securities		-			15
Unrealized gains on securities		(30	)		(30	)
Deferred rent		(100	)		(100	)
Deferred income taxes		(650	)		(399	)
Changes in operating assets and liabilities:
Unearned revenue		(2,645	)		(2,000	)
Reserve for settlement		-			(5	)
Accounts payable & accrued expenses		(1,088	)		(157	)
Accrued salaries		80			(148	)
Accrued taxes on income		1,207			(19	)
Prepaid and refundable income taxes		68			11
Prepaid expenses and other current assets		(64	)		200
Accounts receivable		(480	)		238
Total adjustments		(12,926	)		(4,946	)
Net cash used in operating activities		(5,088	)		(835	)
Cash flows from investing activities:
Purchases of equity securities classified as available-for-sale		(4,954	)		(1,611	)
Purchases of fixed income securities classified as available-for-sale		(6,135	)		-
Proceeds from sales of securities available for sale		-			8,684
Distributions received from EAM Trust		3,653			3,989
Proceeds from sale of operating facility		11,555			-
Restricted money market investment		(469	)		-
Acquisition of property and equipment		(593	)		-
Expenditures for capitalized software		(360	)		(931	)
Net cash provided by investing activities		2,697			10,131
Cash flows from financing activities:
Purchase of treasury stock at cost		(681	)		(548	)
Dividends paid		(3,313	)		(3,039	)
Net cash used in financing activities		(3,994	)		(3,587	)
Net change in cash and cash equivalents		(6,385	)		5,709
Cash and cash equivalents at beginning of year		13,122			5,874
Cash and cash equivalents at end of period	$	6,737		$	11,583

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

6

Value Line, Inc.

Consolidated Condensed Statement of Changes in Shareholders' Equity

For the Six Months Ended October 31, 2016

(in thousands, except share amounts)

(unaudited)

	Common stock				Additional paid-in		Treasury Stock						Retained			Accumulated Other Comprehensive
	Shares		Amount		capital		Shares			Amount			earnings			income/(loss)			Total
Balance at April 30, 2016		10,000,000	$	1,000	$	991		(243,411	)	$	(3,040	)	$	35,524		$	125		$	34,600
Net income														7,838						7,838
Change in unrealized gains on securities, net of taxes																	(140	)		(140	)
Purchase of treasury stock								(41,461	)		(681	)								(681	)
Dividends declared														(3,306	)					(3,306	)
Balance at October 31, 2016		10,000,000	$	1,000	$	991		(284,872	)	$	(3,721	)	$	40,056		$	(15	)	$	38,311

Dividends declared per share were $0.17 for each of the three months ending July 31, 2016 and October 31, 2016.

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

7

Value Line, Inc.

Consolidated Condensed Statement of Changes in Shareholders' Equity

For the Six Months Ended October 31, 2015

(in thousands, except share amounts)

(unaudited)

	Common stock				Additional paid-in		Treasury Stock						Retained			Accumulated Other Comprehensive
	Shares		Amount		capital		Shares			Amount			earnings			income/(loss)			Total
Balance at April 30, 2015		10,000,000	$	1,000	$	991		(190,504	)	$	(2,244	)	$	34,587		$	105		$	34,439
Net income														4,111						4,111
Change in unrealized gains on securities, net of taxes																	(26	)		(26	)
Purchase of treasury stock								(37,335	)		(548	)								(548	)
Dividends declared														(3,131	)					(3,131	)
Balance at October 31, 2015		10,000,000	$	1,000	$	991		(227,839	)	$	(2,792	)	$	35,567		$	79		$	34,845

Dividends declared per share were $0.16 for each of the three months ending July 31, 2015 and October 31, 2015. 

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

8

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(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 non-voting revenues interest and a non-voting profits interests. EAM was established to provide investment management services to the Value Line Mutual Funds ("Value Line Funds" or the "Funds"). 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.

The Consolidated Condensed Balance Sheets as of October 31, 2016 and April 30, 2016, 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, 2016 filed with the SEC on July 15, 2016 (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).

9

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 deconsolidation of the investment management related affiliates (the "Restructuring Transaction") 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, subscriptions to Value Line periodicals and related publications are 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 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 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 ES's 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”). 100% of the Revenues Interest and not less than 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. The Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary ES. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting. 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.

10

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(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 equity securities including Exchange traded funds ("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. 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 Securities and Exchange Act.

The Fair Value Measurements Topic of FASB's ASC 820 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 October 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	5,321	$	-	$	-	$	5,321
Securities available-for-sale		14,509		-		-		14,509
	$	19,830	$	-	$	-	$	19,830

	As of April 30, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	12,037	$	-	$	-	$	12,037
Securities available-for-sale		3,637		-		-		3,637
	$	15,674	$	-	$	-	$	15,674

The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2016 and April 30, 2016, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities subject to fair value measurement.

11

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 Condensed 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 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 October 31, 2016, 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 October 31, 2016 and April 30, 2016, cash equivalents included $5,321,000 and $12,037,000, 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 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 are readily marketable and have a maturity of twelve months or less and are included 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.

12

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

As of October 31, 2016 and April 30, 2016, 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), PowerShares Financial Preferred ETF (PGF), XLU, TUSA, FVL and Proshares Trust S&P 500 Dividend (NOBL) was $8,399,000 and $3,445,000, and the fair value was $8,372,000 and $3,637,000, respectively.

There were no sales or proceeds from sales of equity securities during the six months ended October 31, 2016. During the six months ended October 31, 2015, the Company received $8,684,000 of proceeds from sales of equity securities and reclassified $15,000 of losses from these sales into Consolidated Condensed Statement of Income. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $218,000, net of deferred taxes of $77,000 was included in Shareholders' Equity at October 31, 2016. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $55,000, net of deferred taxes of $19,000 was included in Shareholders' Equity at October 31, 2015.

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 October 31, 2016, accumulated other comprehensive income included unrealized loss of $27,000, net of deferred taxes of $9,000. As of April 30, 2016, accumulated other comprehensive income included unrealized gains of $192,000, net of deferred taxes of $67,000.

The carrying value and fair value of securities available-for-sale at October 31, 2016 were as follows:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	8,399	$	56	$	(83	)	$	8,372

The carrying value and fair value of securities available-for-sale at April 30, 2016 were as follows:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	3,445	$	194	$	(2	)	$	3,637

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 October 31, 2016 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	$	3,395	$	1	$	-	$	3,396
Due 1 year through 5 years		2,740		1		-		2,741
Total investment in government debt securities	$	6,135	$	2	$	-	$	6,137

13

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

There were no fixed income securities at April 30, 2016.

The increase in gross unrealized gains of $2,000 on fixed income securities classified as available-for-sale net of deferred income tax of $1,000, was included in Accumulated Other Comprehensive Income on the Consolidated Condensed Balance Sheets as of October 31, 2016.

The average yield on the Government debt securities classified as available-for-sale at October 31, 2016 was 0.78%.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands)	2016		2015			2016		2015
Dividend income	$	49	$	38		$	73	$	80
Interest income		2		-			2		-
Capital loss		-		(15	)		-		(15	)
Other		10		8			19		17
Total income from securities transactions, net	$	61	$	31		$	94	$	82

Investment in Unconsolidated Entities:

Equity Method Investment:

As of October 31, 2016 and April 30, 2016, the Company's investment in EAM Trust, on the Consolidated Condensed Balance Sheets was $58,167,000 and $57,942,000, respectively.

The value of VLI’s investment in EAM at October 31, 2016 and April 30, 2016 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.

14

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(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 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 2017 or 2016.

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

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands) (unaudited)	2016		2015			2016		2015
Investment management fees earned from the Value Line Funds, net of fee waivers	$	3,680	$	3,653		$	7,317	$	7,491
12b-1 fees and other fees, net of fee waivers	$	1,476	$	1,442		$	2,919	$	2,838
Other income (loss)	$	16	$	(18	)	$	79	$	(27	)
Investment management fee waivers (1)	$	95	$	48		$	176	$	95
12b-1 fee waivers (1)	$	232	$	242		$	465	$	613
Value Line’s non-voting revenues interest	$	1,799	$	1,819		$	3,586	$	3,721
EAM's net income (2)	$	266	$	242		$	524	$	522

(1) During fiscal 2017 and 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds.

(2) 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.

	October 31,			April 30,
($ in thousands)	2016			2016
	(unaudited)
EAM's total assets	$	60,789		$	60,292
EAM's total liabilities (1)		(3,403	)		(3,021	)
EAM's total equity	$	57,386		$	57,271

(1) At October 31, 2016 and April 30, 2016, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,918,000 and $1,750,000, respectively.

15

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 October 31, 2016 (unaudited)	$	60,789	$	58,167	$	-	$	58,167
As of April 30, 2016	$	60,292	$	57,942	$	-	$	57,942

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

Note 4 - Supplementary Cash Flow Information:

	Six Months Ended October 31,
($ in thousands)	2016		2015
State and local income tax payments	$	422	$	153
Federal income tax payments to the Parent	$	3,218	$	1,990

16

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 six months ended October 31, 2016 and October 31, 2015, the estimated profit sharing plan contributions, which are included as expenses in salaries and employee benefits in the Consolidated Condensed Statements of Income, were $214,000 and 200,000, respectively. 

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.

Beginning in fiscal 2013, the Company adopted the provisions of Accounting Standards Update 2011-05 to reflect comprehensive income in two statements which include the components of net income and total net income in the first statement, immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income and a total for comprehensive income.

As of October 31, 2016 and October 31, 2015, 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 six months ended October 31, 2016 are as follows:

($ in thousands)	Amount Before Tax			Tax Benefit		Amount Net of Tax
Change in unrealized losses on securities	$	(216	)	$	76	$	(140	)
	$	(216	)	$	76	$	(140	)

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the six months ended October 31, 2015 are as follows:

($ in thousands)	Amount Before Tax			Tax Provision/(Benefit)			Amount Net of Tax
Change in unrealized gains on securities	$	(55	)	$	19		$	(36	)
Add: Losses realized in net income		15			(5	)		10
	$	(40	)	$	14		$	(26	)

17

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 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 October 31, 2016, were $2.24 billion, 2.3% below total assets of $2.29 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2015.

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. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 49.45% and 49.14% during the first and second quarters of fiscal 2017, respectively, and 50.05% and 50.16% during the first quarter and second quarters of fiscal 2016, respectively. 

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

	Three Months Ended October 31,				Six Months Ended October 31,
($ in thousands)	2016		2015		2016		2015
Non-voting revenues interest in EAM	$	1,799	$	1,819	$	3,586	$	3,721
Non-voting profits interest in EAM		133		121		262		261
	$	1,932	$	1,940	$	3,848	$	3,982

At October 31, 2016, the Company's investment in EAM includes a receivable of $1,918,000 representing the quarterly distribution of 100% of the non-voting revenues share and 90% of its non-voting profits share.

Transactions with Parent:

During the six months ended October 31, 2016 and October 31, 2015, the Company was reimbursed $185,000 and $65,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables from the Parent on the Consolidated Condensed Balance Sheets at October 31, 2016 and April 30, 2016.

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 made federal tax payments of $3,218,000 to the Parent during the six months ended October 31, 2016. The Company made federal tax payments of $1,990,000 to the Parent during the six months ended October 31, 2015.

From time to time, the Parent has purchased additional shares of common stock of the Company in the market when and as the Parent has determined it to be appropriate. The Parent may make additional purchases of common stock of the Company from time to time in the future. As of October 31, 2016, the Parent owned 88.87% of the outstanding shares of common stock of the Company.

18

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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 October 31,						Six Months Ended October 31,
($ in thousands)	2016			2015			2016			2015
Current tax expense:
Federal	$	996		$	986		$	4,573		$	2,010
State and local		15			55			340			127
Current tax expense		1,011			1,041			4,913			2,137
Deferred tax expense (benefit):
Federal		(399	)		(166	)		(588	)		(178	)
State and local		(77	)		(70	)		(62	)		(221	)
Deferred tax expense (benefit):		(476	)		(236	)		(650	)		(399	)
Income tax provision	$	535		$	805		$	4,263		$	1,738

Deferred income taxes 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 deferred tax asset and deferred tax liability are as follows:

	October 31,		April 30,
($ in thousands)	2016		2016
Federal tax benefit (liability):
Unrealized gains on securities available-for-sale	$	8	$	(68	)
Capital loss carryforward		-		86
Operating lease deferred obligation		23		58
Deferred professional fees		17		77
Deferred charges		162		250
Total federal tax benefit		210		403
State and local tax benefits:
Other		22		29
Total state and local tax benefits		22		29
Deferred tax asset, short term	$	232	$	432

19

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

	October 31,			April 30,
($ in thousands)	2016			2016
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	17,732		$	17,679
Deferred non-cash post-employment compensation		(619	)		(619	)
Depreciation and amortization		1,018			1,812
Other		(77	)		8
Total federal tax liability		18,054			18,880
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,434			1,704
Deferred non-cash post-employment compensation		(50	)		(60	)
Depreciation and amortization		82			174
Other		(1	)		(15	)
Total state and local tax liabilities		1,465			1,803
Deferred tax liability, long term	$	19,519		$	20,683

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 overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2016 and October 31, 2015 were 35.23% and 29.71%, respectively. The Company's annual effective tax rate will change due to a number of factors 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 tax laws, new interpretations of existing tax laws and rulings and settlements with tax authorities. The fluctuation in the effective income tax rate during fiscal 2017 is primarily attributable to the attribution of 100% of the gain on the sale of the Company's operating facility to one tax jurisdiction partially offset by the effect of the scheduled reduction in the allocation factors on the state and local current and deferred tax liability (primarily associated with the gain on deconsolidation of EAM), and the dividend received deduction.

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:

	Six months Ended October 31,
	2016			2015
U.S. statutory federal tax rate		35.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		1.15	%		-2.48	%
Effect of dividends received deductions		-0.15	%		-0.32	%
Domestic production tax credit		0.00	%		-0.62	%
Other, net		-0.77	%		-1.87	%
Effective income tax rate		35.23	%		29.71	%

20

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

The Company believes that, as of October 31, 2016, there were no material uncertain tax positions that would require disclosure to GAAP.

The Company is included in the consolidated federal income tax return of the Parent, and beginning with the fiscal year ended April 30, 2017, will file combined income tax returns with the Parent on a unitary basis in certain states as a result of changes in state tax regulations. The Company does not anticipate any significant tax implications from the change to unitary state tax filing.

The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended 2013 through 2016, are subject to examination by the tax authorities, generally for three years after they are filed with the tax authorities. The Company favorably concluded certain tax audits during the third quarter of fiscal 2016 that provided the recognition of tax benefits resulting from a favorable outcome. The Company is presently engaged in a federal tax audit for the fiscal year ended April 30, 2015 and a state tax audit for that period, but does not expect them to have a material effect on the financial statements.

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:

	October 31,			April 30,
($ in thousands)	2016			2016
Land	$	-		$	726
Building and leasehold improvements		388			5,190
Furniture and equipment		3,655			4,156
		4,043			10,072
Accumulated depreciation and amortization		(3,387	)		(6,451	)
Total property and equipment, net	$	656		$	3,621

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 obtaining software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.

The Company capitalized $360,000 and $931,000 related to the development of software for internal use for the six months ended October 31, 2016 and 2015, respectively. Capitalized software includes $215,000 and $675,000 of internal costs to develop software and $145,000 and $256,000 of third party programmers' costs for the six months ended October 31, 2016, and October 31, 2015, respectively. Such costs are capitalized and amortized over the expected useful life of the asset which is 3 to 5 years. Total amortization expenses for the six months ended October 31, 2016 and October 31, 2015, were $2,621,000 and $1,289,000, respectively. An increase of $1,332,000 was attributable to additional amortization of internally developed software costs related to the product production cycle that is expected to be upgraded during fiscal 2018.

21

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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, 2016 (1)(2)		243,411	$	3,040	$	12.49	$	1,350
Purchases effected in open market during the quarters ended:
July 31, 2016 (2)		32,714	$	535	$	12.95	$	815
October 31, 2016 (2)		8,747	$	146	$	16.68	$	669
Balance as of October 31, 2016		284,872	$	3,721	$	13.06	$	669

(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:

The Company leases 44,493 square feet of office space at 485 Lexington Avenue in New York, NY. Base rent under the Sublease is $1,468,269 per annum, subject to customary concessions in the Company’s favor and pass-through of certain increases in operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $489,423, which was partially returned over the course of the sublease term. The Company received $122,355 each year from Sublandlord as of March 2015 and March 2016. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The Company recorded a deferred charge on its Consolidated Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease due to free rent for the first six months of the sublease. The lease expires in February 2017.

On February 29, 2016, the Company’s subsidiary Value Line Distribution Center (“VLDC”) and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased approximately 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Building” or “Premises”) 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, in advance during fiscal 2017 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 Premises as well as utilities supplied to the Premises.

22

Value Line, Inc.

Notes to Consolidated Condensed Financial Statements

October 31, 2016

(Unaudited)

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. (“Value Line” or “Company”) and ABM Industries, Incorporated. Pursuant to the agreement Value Line will lease 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 will be $1,126,000 per annum during the first twelve months 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 ("LOC") in the amount of $469,000, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building will become 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 will provide for a significant decrease (23% initially) in the Company’s annual rental expenditure due to free rent for the first six months of the sublease. Sublandlord will provide Value Line an allowance of $417,000 which is expected to be applied against the Company’s costs and expenses related to the relocation to the new office facility or applied as additional free rent.

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 space, with remaining terms of one year or more, are as follows:

Fiscal Years Ended April 30,	($ in thousands)
2018		1,242
2019		1,366
2020		1,399
2021		1,432
2022 and thereafter		10,002
	$	15,441

For the six months ended October 31, 2016 and 2015, rental expenses were $730,000 and $634,000, respectively.

Note 13 - Restricted Cash and Deposits:

The Restricted Money Market Investment included in noncurrent assets on the Consolidated Condensed Balance Sheet, amounting to $469,000 at October 31, 2016, represents invested cash securing a letter of credit ("LOC") in the amount of $469,000 issued by a financial institution on behalf of Value Line, Inc. to the sublandlord as a security deposit for the Company's new leased corporate office facility.

Note 14 - Gain on Sale of Operating Facility:

On July 29, 2016, Value Line closed the sale of its 85,000 sq ft distribution, fulfillment and warehouse operating facility located at 125 East Union Avenue, East Rutherford, NJ, received net proceeds of $11,555,000 and reported an increment to net profits after tax during the first quarter of fiscal 2017 of approximately $5.28 million. The distribution, fulfillment and warehouse operations were relocated to an alternative 24,000 sq ft leased facility (See Note 12).

23

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;

● 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, 2016 and in Part II, Item 1A of this Quarterly Report on Form 10-Q for the period ended October 31, 2016; 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.

24

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. Since December 23, 2010, EULAV Asset Management Trust (“EAM”) provides the investment management services to the Value Line Funds, institutional and individual accounts and provides distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds"). Value Line holds substantial non-voting revenues and non-voting profits interests in EAM.

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. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 49.45% and 49.14% during the first and second quarters of fiscal 2017, respectively, and 50.05% and 50.16% during the first quarter and second quarters of fiscal 2016, respectively.

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 nation's economy turned in a mostly uninspiring performance during the first half of calendar year 2016, with the U.S. gross domestic product gaining just 0.8% and 1.4%, respectively, over the first two quarters. In all, softer levels of residential  fixed investment, weakness in state and local government spending, and a further drawdown in inventories combined to largely offset continued increases in spending by the U.S. consumer.

However, things changed abruptly after midyear, as a notable restocking of inventories after five consecutive quarters of drawdowns, a selective strengthening in government spending, and improving levels of consumer activity combined to give the nation's flagging business expansion an appreciable third-quarter lift. In all, GDP gained a reassuring 3.2% during the July-through-September period. Looking out over the remaining few weeks of 2016, we are seeing reasonably solid levels of job creation, a modest pickup in wage growth, and a stable labor force participation rate. Such gradual improvement in the employment situation, along with additional likely gains in consumer spending, and a possible further, but very modest, restocking of inventories could again combine to push the economy forward by better than 2% in the fourth calendar quarter.

Meanwhile, the global outlook remains unsettled. Heading the list of problems off shore are the uncertain growth prospects in China (where that nation's maturing economy will almost certainly lead to progressively slower rates of growth) and a poorly defined outlook in Europe, which continues to suffer the after effects of earlier weakness, especially along the southern tier of the Continent.  

Finally, there are questions on the home front, now that a new Administration with a somewhat different approach to infrastructure spending, tax, and regulatory policies will soon be in place. Already, we have seen a sharp jump in Treasury note and bond yields, a run-up that could well encourage the Federal Reserve to take a more pro-active approach to monetary tightening in the months to come.

Results of Operations for the Three and Six Months Ended October 31, 2016 and October 31, 2015

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

	Three Months Ended October 31,							Six Months Ended October 31,
($ in thousands, except earnings per share)	2016		2015		Change			2016		2015		Change
Income from operations	$	23	$	826		-97.2	%	$	8,160	$	1,785		357.1	%
Revenues and profits interests from EAM Trust	$	1,932	$	1,940		-0.4	%	$	3,848	$	3,982		-3.4	%
Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust	$	1,955	$	2,766		-29.3	%	$	12,008	$	5,767		108.2	%
Gain on sale of operating facility		-		-		n/a		$	8,123		-		n/a
Operating expenses	$	8,627	$	7,811		10.4	%	$	17,134	$	15,684		9.2	%
Income from securities transactions, net	$	61	$	31		96.8	%	$	94	$	82		14.6	%
Income before income taxes	$	2,016	$	2,797		-27.9	%	$	12,102	$	5,849		106.9	%
Net income	$	1,480	$	1,992		-25.7	%	$	7,838	$	4,111		90.7	%
Earnings per share	$	0.15	$	0.20		-25.0	%	$	0.81	$	0.42		92.9	%

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During the six months ended October 31, 2016, the Company’s net income of $7,838,000, or $0.81 per share, was $3,727,000 or 90.7% above net income of $4,111,000, or $0.42 per share, for the six months ended October 31, 2015. During the six months ended October 31, 2016 there were 9,729,002 average common shares outstanding as compared to 9,795,672 average common shares outstanding during the six months ended October 31, 2015. Income from operations of $8,160,000 for the six months ended October 31, 2016 which included additional depreciation and amortization expense of $1,317,000 was $6,375,000 above income from operations of $1,785,000 for the six months ended October 31, 2015. During the three months ended October 31, 2016, the Company’s net income of $1,480,000, or $0.15 per share, was $512,000 or 25.7% below net income of $1,992,000, or $0.20 per share, for the three months ended October 31, 2015. During the first half of fiscal 2017 both net income and income from operations included a pre-tax gain of $8,123,000 from the sale of the Company's operating facility for which it received proceeds of $11,555,000 on July 29, 2016. The fulfillment and mailing operations housed within the facility were relocated to a leased facility within close proximity.

Total operating revenues  

		Three Months Ended October 31,						Six Months Ended October 31,
($ in thousands)		2016		2015	Change			2016		2015	Change
Investment periodicals and related publications:
Print	$	3,553	$	3,925	-9.5	%	$	7,155	$	8,137	-12.1	%
Digital		4,076		4,114	-0.9	%		8,124		8,086	0.5	%
Total investment periodicals and related publications		7,629		8,039	-5.1	%		15,279		16,223	-5.8	%
Copyright data fees		1,021		598	70.7	%		1,892		1,246	51.8	%
Gain on sale of operating facility		-		-	n/a			8,123		-	n/a
Total operating revenues	$	8,650	$	8,637	0.2	%	$	25,294	$	17,469	44.8	%

During the six months ended October 31, 2016 total publishing revenues from investment periodicals and related publications excluding copyright data fees were $15,279,000, which is 5.8% below the total publishing revenues excluding copyright data fees of $16,223,000 during the six months ended October 31, 2015. During the six months ended October 31, 2016, the Company’s decrease in the publishing revenues was partially the result of 26 weeks of print revenues recorded in the first half of fiscal 2017 as compared to 27 weeks recorded in the first half of fiscal 2016. The remaining decrease in print publications revenue is primarily a result of a 10.5% decrease in print circulation at October 31, 2016.

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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 associated with print and digital subscriptions.        

Sources of subscription sales

	Three Months Ended October 31,												Six Months Ended October 31,
	2016						2015						2016						2015
	Print			Digital			Print			Digital			Print			Digital			Print			Digital
New Sales		14.9	%		17.3	%		11.0	%		28.4	%		14.9	%		17.7	%		11.0	%		28.5	%
Conversion and Renewal Sales		85.1	%		82.7	%		89.0	%		71.6	%		85.1	%		82.3	%		89.0	%		71.5	%
Total Gross Sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

During the six months ended October 31, 2016 new sales of print publications increased as a percent of the total gross print sales while conversion and renewal sales of print orders decreased from the prior fiscal year as a result of a slower decline in new print sales orders. New sales of digital publications decreased as a percent of the total gross digital sales as a result of less aggressive promotion to first-time customers at introductory prices. Conversion and renewal sales of digital orders increased over the prior fiscal year outpacing the decrease in new sales of digital orders as a result of increased efforts by our in-house Retail and Institutional Sales departments.

	As of October 31,		As of April 30,		As of October 31,		Change
($ in thousands)	2016		2016		2015		Oct-16 vs. Apr-16			Oct-16 vs. Oct-15
Unearned subscription revenue (current and long term liabilities)	$	22,797	$	25,442	$	24,047		-10.4	%		-5.2	%

Unearned subscription revenue as of October 31, 2016 is 5.2% below October 31, 2015 and is 10.4% below April 30, 2016. The decline from April 30, 2016, reflects both curtailed advertising for order generation and the fact that April 30^th is the usual annual peak. Further, 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.

Investment periodicals and related publications revenues

Investment periodicals and related publications revenues of $15,279,000 decreased $944,000, or 5.8%, for the six months ended October 31, 2016, 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 October 31, 2016 was 9.4% below total product line circulation at October 31, 2015. The Company has been successful in growing revenues from digitally-delivered investment periodicals within the institutional market. Institutional Sales generated total sales orders of $6,407,000 for the six months ended October 31, 2016 which were 6.7%, above comparable total sales orders of $6,006,000 for the six months ended October 31, 2015. This growth continues a positive trend for Institutional Sales. We have also benefited from “converting” some customers from retail to the more robust professional priced services.

Digital publications revenues of $8,124,000 during the six months ended October 31, 2016 were 1% above the prior fiscal year. Revenues from institutional digital publications increased 2.5% as compared to the prior fiscal year. Digital publications revenues from retail subscribers decreased 4.4% as compared to the prior fiscal year. Total digital circulation at October 31, 2016 was 8% below total digital circulation at October 31, 2015.      

Print publication revenues of $7,155,000 decreased $982,000 or 12.1% for the six months ended October 31, 2016 as compared to the prior fiscal year. Revenues from institutional print publications increased 6.4% while print publications revenues from retail subscribers decreased 14.8% for the six months ended October 31, 2016, as compared to the prior fiscal year. This includes the effect of 26 weeks of print revenues recorded in the first half of fiscal 2017 versus 27 weeks recorded in the first half of fiscal 2016. Total print circulation at October 31, 2016 was 10.5% below total print circulation at October 31, 2015.      

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The Company has relied more on its personnel selling efforts in both the institutional segment and retail retention and sales, as the ability to obtain orders profitably through traditional direct marketing plateaus. The majority of the Company’s subscribers have traditionally been individual investors who generally receive printed publications via U.S. Mail on a weekly basis. Individual investors interested in digitally-delivered investment information have access to both free and subscription equity research from many sources. Continuing factors that have contributed to the decline in the retail digital investment periodicals and related publications revenues include competition in the form of free or low cost investment research on the Internet and research provided by brokerage firms at no direct cost to their clients. Further, there appears to be a relative decline in individuals’ interest in holding specific stocks as compared with ETFs, mutual funds and participation in retirement plans. In order to address competition the Company has emphasized its lower-priced “starter” levels of service. Also many of the professional subscribers to the Company’s digital and print retail products have been successfully converted to a higher priced Institutional product, with the peak impact of such movement probably behind us. The Company offers quality publications on mutual funds, but they have achieved only modest market share. 

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 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

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 periods ended October 31, 2016, the combined Ranking System “Rank 1 & 2” stocks’ increase of 3.1% outperformed the S&P 500 Index’s increase of 2.9% during the comparable period. For the 2016 calendar year-to-date, the combined Ranking System “Rank 1 & 2” stocks increase of 12.3% outperformed the S&P 500 Index’s increase of 7.2% during the comparable period.

During the three and six months ended October 31, 2016, copyright data fees of $1,021,000 and $1,892,000, respectively, were 70.7% and 51.8% above the comparable periods of the prior fiscal year. As of October 31, 2016, total third party sponsored assets were attributable to three contracts for copyright data representing $2.6 billion in various products, as compared to four contracts for copyright data representing $1.3 billion in assets at October 31, 2015. 

The Company believes this part of the business is dependent upon the desire of third parties to use the Value Line trademarks and proprietary research for their products, on competition and on fluctuations in segments of the equity markets. Our quantitative specialists are seeking to develop and conform reliable models for additional copyright data products, including Ranking System-based concepts as well as other proprietary quantitative models.

Gain on sale of operating facility

On July 29, 2016, Value Line closed the sale of its 85,000 sq ft distribution, fulfillment and warehouse operating facility located at 125 East Union Avenue, East Rutherford, NJ, received proceeds of $11,555,000 and reported an increment to net profits after tax for the first quarter of fiscal 2017 of approximately $5.28 million. The distribution, fulfillment and warehouse operations were relocated to an alternative 24,000 sq ft leased facility.

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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. 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 October 31, 2016, were $2.24 billion, which is $52 million, or 2.3%, below total assets of $2.29 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2015, reflecting market appreciation offset by the redemptions in all but three of the Value Line Funds over the past twelve months ended October 31, 2016.

The largest decline of $32 million was in the Guardian channel. 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. The two funds consequently continue to experience net redemptions.

Value Line Mutual Funds

	As of October 31,
($ in millions)	2016		2015		Change
Variable annuity assets ("GIAC")	$	397	$	429		-7.5	%
All other open end equity and hybrid fund assets		1,705		1,714		-0.5	%
Total equity and hybrid funds		2,102		2,143		-1.9	%
Fixed income funds		135		146		-7.5	%
Total EAM managed net assets	$	2,237	$	2,289		-2.3	%

The Daily Income Fund managed by Reich & Tang Asset Management LLC was liquidated on July 29, 2015. In fiscal years 2017 and 2016 the Value Line Fund shareholders were provided a money market fund alternative investment managed by Federated Government Obligations Fund.

EAM has successfully broadened distribution, particularly within the Adviser/IBD channel. Over the past year, more than 500 financial advisers purchased Value Line Funds’ shares for their clients for the first time, with over 3,000 advisers’ clients now owning a Value Line Fund.

Starting fiscal 2016 the Core Bond Fund was modified to no longer waive 12b-1 fees, but to cap the overall fund’s expense ratio, 12b-1 fee waivers were removed on the Asset Allocation Fund, and also a portion of the 12b-1 waivers were removed on the SAM and Centurion Funds.

As of October 31, 2016, all six of the Value Line equity mutual funds, excluding SAM and Centurion, held an overall four or five star rating by Morningstar, Inc. The largest distribution channel for the Value Line Funds remains the fund supermarket platforms such as Charles Schwab & Co., Inc., Fidelity, Pershing and E-Trade. 

Additionally, as of October 31, 2016, three of the six equity and hybrid funds are in the top quartile of their respective peer groups for the one year period and five of the six funds are in the top quartile for the three year period according to Lipper. At this time last year, five of the six equity and hybrid funds were in the top quartile of their respective peer groups for one year and four of the six were in the top quartile for the three year period according to Lipper.

Overall, the Value Line equity funds continue to be recognized for both their strong long-run performance and lower-risk profile. The Value Line Small Cap Opportunities Fund is recognized on a select list at Lincoln Financial. As of June 30, 2015 Fidelity has added the Value Line Small Cap Opportunities Fund as a Fidelity Fund Pick. Since September 30, 2015 the Value Line Asset Allocation Fund and the Value Line Small Cap Opportunities Fund have been in the top quartile of their category for 1, 3, 5, and 10 year periods according to Lipper.

In November 2015 four funds: the Small Cap Opportunities Fund, the Larger Companies Focused Fund, the Asset Allocation Fund, and the Income and Growth Fund launched a new Institutional Class of shares. With the creation of institutional shares EAM has the opportunity to place the Value Line Mutual Funds on distribution platforms that offer exclusively those funds shares that have eliminated all 12b-1 fees from their fee structure. The Small Cap Opportunities Fund and the Mid Cap Focused Fund were named “Category Kings” in The Wall Street Journal in calendar 2016.

EAM Trust - Results of operations before distribution to interest holders

The overall results of EAM’s investment management operations during the six months ended October 31, 2016, before interest holder distributions, include total investment management fees earned from the Value Line Funds of $7,317,000, 12b-1 fees and other fees of $2,919,000 and other income of $79,000 which includes, dividend, interest and licensing fees income. For the same period, total investment management fee waivers were $176,000 and 12b-1 fee waivers for four Value Line Funds were $465,000. During the six months ended October 31, 2016, EAM's net income was $524,000 after giving effect to Value Line’s non-voting revenues interest of $3,586,000, 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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The overall results of EAM’s investment management operations during the six months ended October 31, 2015, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $7,491,000, 12b-1 fees and other fees of $2,838,000 and other loss of $27,000. For the same period, total investment management fee waivers were $95,000 and 12b-1 fee waivers for four Value Line Funds were $613,000. During the six months ended October 31, 2015, EAM's net income was $522,000 after giving effect to Value Line’s non-voting revenues interest of $3,721,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

As of October 31, 2016, four 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.

The Value Line equity and hybrid funds assets represent 76.3%, variable annuity funds issued by GIAC represent 17.7%, and fixed income fund assets represent 6.0%, respectively, of total fund assets under management (“AUM”) as of October 31, 2016. At October 31, 2016, equity, hybrid and GIAC variable annuities AUM decreased by 1.9% and fixed income AUM decreased by 7.5% 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.

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

	Three Months Ended October 31,							Six Months Ended October 31,
($ in thousands)	2016		2015		Change			2016		2015		Change
Non-voting revenues interest	$	1,799	$	1,819		-1.1	%	$	3,586	$	3,721		-3.6	%
Non-voting profits interest		133		121		9.9	%		262		261		0.4	%
	$	1,932	$	1,940		-0.4	%	$	3,848	$	3,982		-3.4	%

During the six months ended October 31, 2016 and October 31, 2015, the Company recorded revenues of $3,848,000 and $3,982,000, respectively, consisting of $3,586,000 and $3,721,000, from its non-voting revenues interest in EAM and $262,000 and $261,000, from its non-voting profits interest in EAM without incurring any directly related expenses. 

Operating expenses

	Three Months Ended October 31,							Six Months Ended October 31,
($ in thousands)	2016		2015		Change			2016		2015		Change
Advertising and promotion	$	620	$	748		-17.1	%	$	1,528	$	1,732		-11.8	%
Salaries and employee benefits		4,301		3,925		9.6	%		8,209		7,704		6.6	%
Production and distribution		2,350		2,065		13.8	%		4,824		4,030		19.7	%
Office and administration		1,356		1,073		26.4	%		2,573		2,218		16.0	%
Total expenses	$	8,627	$	7,811		10.4	%	$	17,134	$	15,684		9.2	%

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

Operating expenses of $17,134,000 for the six months ended October 31, 2016 increased $1,450,000, or 9.2%, as compared to the six months ended October 31, 2015 primarily due to additional accelerated depreciation and amortization expense of $1,317,000 in fiscal 2017. For the three months ended October 31, 2016 operating expenses increased $816,000 or 10.4% as compared to the three months ended October 31, 2015 as a result of additional amortization and depreciation of $573,000 during the second quarter of fiscal 2017.

Advertising and promotion

Advertising and promotion expenses of $620,000 during the three months ended October 31, 2016 decreased $128,000 or 17.1%, as compared to the second quarter of the prior fiscal year as a result of a decrease in direct mail campaigns expense during the second quarter of fiscal 2017.

Advertising and promotion expenses of $1,528,000 during the six months ended October 31, 2016 decreased $204,000 or 11.8%, as compared to the second quarter of the prior fiscal year. The decrease in direct mail expenses of $157,000 during the six months ended October 31, 2016, is mainly attributable to a reduction in the number of campaigns for The Value Line Investment Survey and The Value Line 600, as compared to fiscal 2016 partially offset by an increase in direct marketing for Value Line Select: Dividend Income & Growth in fiscal 2017. There were two direct mail campaigns for The Value Line Investment Survey and one for The Value Line 600 during the six months ended October 31, 2016 as compared to three direct mail campaigns for The Value Line Investment Survey and two for The Value Line 600 during the comparable period of the prior fiscal year. During the six months ended October 31, 2016 sales commissions decreased $57,000 as compared to fiscal 2016.

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Salaries and employee benefits

During the three and six months ended October 31, 2016 salaries and employee benefits of $4,301,000 and $8,209,000, respectively, increased 9.6% and 6.6% above the comparable periods in the prior fiscal year primarily as a result of a decrease in the capitalization of internal salaries and benefits expenses for digital project development of $240,000 and $460,000, respectively, during the three and six months ended October 31, 2016, as compared to the prior fiscal year. The increase in salaries and employee benefits was partially offset by a decrease in salaries and employee benefits in Human Resources and fulfillment and distribution departments at VLDC during the six months ended October 31, 2016.

Production and distribution

During the three and six months ended October 31, 2016 production and distribution expenses of $2,350,000 and $4,824,000, respectively, increased 13.8% and 19.7% above the comparable periods in the prior fiscal year. During the six months ended October 31, 2016, an increase of $1,332,000 was attributable to additional amortization of internally developed software costs related to the product production cycle that is expected to be upgraded during fiscal 2018. Increases in production costs include a $78,000 increase in production support of website, statistical reporting and framework upgrade costs and a $34,000 increase in outside data services due to modified delivery of financial product pricing services. Effective January 1, 2016, the Company transitioned to equity data provided by an alternative vendor which resulted in $300,000 annual savings. Distribution expenses decreased $110,000 in fiscal 2017 due to switching to United States Postal Service delivery from a private carrier and a 10.5% decline in print circulation during the six months ended October 31, 2016 as compared to the prior fiscal year.

Office and administration

During the three and six months ended October 31, 2016 office and administration expenses of $1,356,000 and $2,573,000, respectively, increased 26.4% and 16% above the comparable periods in the prior fiscal year primarily due to increases in professional fees, telephone communication and information system costs (primarily communication software used by the in-house retail sales), and space rental and moving costs (NJ facility).

Income from Securities Transactions, net

During the three and six months ended October 31, 2016 and October 31, 2015 the Company’s income from securities transactions, net, primarily derived from dividend income, was $61,000 and $94,000, respectively. There were no sales, or gains or losses from sales, of equity securities during the six months ended October 31, 2016. During the six months ended October 31, 2015 sales of equity securities resulted in a $15,000 loss.

Lease Commitments

The Company leases 44,493 square feet of office space at 485 Lexington Avenue in New York, NY. Base rent under the Sublease is $1,468,269 per annum, subject to customary concessions in the Company’s favor and pass-through of certain increases in operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $489,423, which was partially returned over the course of the sublease term. The Company received $122,355 each year from Sublandlord as of March 2015 and March 2016. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The Company recorded a deferred charge on its Consolidated Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease due to free rent for the first six months of the sublease. The lease expires in February 2017.

On February 29, 2016, the Company’s subsidiary Value Line Distribution Center (“VLDC”) and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased approximately 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Building” or “Premises”) 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, in advance during fiscal 2017 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 Premises as well as utilities supplied to the Premises.

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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. (“Value Line” or “Company”) and ABM Industries, Incorporated (the “ABM” or “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line will lease 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 will be $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, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building will become 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 will provide for a significant decrease (23% initially) in the Company’s annual rental expenditure due to free rent for the first six months of the sublease. Sublandlord will provide Value Line an allowance of $417,000 which is expected to be applied against the Company’s costs and expenses related to the relocation to the new office facility or applied as additional free rent.

Effective income tax rate

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2016 and October 31, 2015 were 35.23% and 29.71%, respectively. The Company's annual effective tax rate will change due to a number of factors 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 tax laws, new interpretations of existing tax laws and rulings and settlements with tax authorities. The fluctuation in the effective income tax rate during fiscal 2017 is primarily attributable to the attribution of 100% of the gain on the sale of the Company's operating facility to one tax jurisdiction and partially offset by the effect of the scheduled reduction in the allocation factors on the state and local current and deferred tax liability (primarily associated with the gain on deconsolidation of EAM), and the dividend received deduction.

Liquidity and Capital Resources

The Company had negative working capital, defined as current assets less current liabilities, of $158,000 as of October 31, 2016 and negative working capital $6,346,000 as of April 30, 2016. These amounts include short term unearned revenue of $18,762,000 and $20,516,000 reflected in total current liabilities at October 31, 2016 and April 30, 2016, respectively. Cash and short term securities were $21,246,000 and $16,759,000 as of October 31, 2016 and April 30, 2016, respectively.

The Company’s cash and cash equivalents include $5,321,000 and $12,037,000 at October 31, 2016 and April 30, 2016, 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.

Restricted Money Market Investment in the noncurrent assets on the Consolidated Condensed Balance Sheet, amounting to $469,000 at October 31, 2016, represents cash securing a letter of credit ("LOC") in the amount of $469,000 issued to the sublandlord as a security deposit for the Company's new leased corporate office facility.

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Cash from operating activities

The Company had cash outflows from operating activities of $5,088,000 during the six months ended October 31, 2016 compared to cash outflows from operations of $835,000 during the six months ended October 31, 2015. The increase in cash outflows of $4,253,000 from fiscal 2016 to fiscal 2017 resulted from the payment of additional income taxes of $1,497,000, primarily attributable to the sale of the Company’s VLDC operating facility, the timing of payments of invoices to vendors, the timing of receipts from copyright data sales and a decrease in unearned income from prepaid subscription orders.

Cash from investing activities

The Company’s cash inflows from investing activities of $2,697,000 during the six months ended October 31, 2016, compared to cash inflows from investing activities of $10,131,000 for the six months ended October 31, 2015. Cash inflows for the six months ended October 31, 2016, were lower primarily due to investing $11,089,000 in fixed income and equity securities of the proceeds of $11,555,000 received from the sale of the Company’s operating facility as compared to $1.6 million invested in equity securities from the $8.7 million of proceeds from sales of securities during fiscal 2016. Additionally, the Company invested $469,000 in a bank money market fund and pledged this investment to represent cash securing a Bank Letter of Credit issued to the sublandlord as a security deposit for the Company's new leased corporate office facility.

Cash from financing activities

During the six months ended October 31, 2016, the Company’s cash outflows from financing activities were $3,994,000 and compared to cash outflows from financing activities of $3,587,000 for the six months ended October 31, 2015. Cash outflows for financing activities included $681,000 and $548,000 for the repurchase of 41,461 and 37,335 shares of the Company’s common stock under the September 19, 2012 board of directors approved common stock repurchase program, during fiscal years 2017 and 2016, respectively. Quarterly dividend payments of $0.17 per share in the first half of fiscal 2017 aggregated $3,313,000 as compared to $3,039,000 aggregated quarterly dividend payments of $0.15 per share during the first quarter and $0.16 per share during the second quarter of the prior fiscal year.

On October 20, 2016, the Board of Directors of Value Line declared a quarterly dividend of $0.17 per share. At October 31, 2016 there were 9,715,128 common shares outstanding as compared to 9,772,259 common shares outstanding at October 31, 2015. The Company expects financing activities to continue to include use of cash for dividend payments 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 October 31, 2016, retained earnings and liquid assets were $40,056,000 and $21,246,000, 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 and a secured Letter of Credit (“LOC”) in the amount of $469,000 issued as a security deposit for the Company’s office facility entered into in the ordinary course of business. The LOC is secured by a restricted Money Market Investment of similar amount.

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Recent Accounting Pronouncements

None.

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’s Critical Accounting Estimates and Policies have not changed from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Form 10-K for the fiscal year ended April 30, 2016 filed with the SEC on July 15, 2016.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market Risk Disclosures

The Company’s Consolidated Condensed Balance Sheets include 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.

Fixed income securities consist of certificates of deposits and securities issued by federal, state, and local governments within the United States. As of October 31, 2016 the aggregate cost and fair value of fixed income securities classified as available-for-sale were $6,135,000 and $6,137,000, respectively. There were no fixed income securities at April 30, 2016.

       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)
.			1 yr.		1 yr.		1 yr.		1 yr.
	Fair		50bp		50bp		100bp		100bp
	Value		increase		decrease		increase		decrease
As of October 31, 2016
Investments in securities with fixed maturities	$	6,137	$	6,135	$	6,145	$	6,130	$	6,149

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.

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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.

As of October 31, 2016 and April 30, 2016, 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), PowerShares Financial Preferred ETF (PGF), XLU, TUSA, FVL and Proshares Trust S&P 500 Dividend (NOBL) was $8,399,000 and $3,445,000, and the fair value was $8,372,000 and $3,637,000, respectively.

Equity Securities					Estimated Fair Value after		Hypothetical Percentage
				Hypothetical	Hypothetical		Increase (Decrease) in
($ in thousands)		Fair Value		Price Change	Change in Prices		Shareholders’ Equity
As of October 31, 2016	Total Equity Securities	$	8,372	30% increase	$	10,884		4.26	%
				30% decrease	$	5,861		-4.26	%

Equity Securities					Estimated Fair Value after		Hypothetical Percentage
				Hypothetical	Hypothetical		Increase (Decrease) in
($ in thousands)		Fair Value		Price Change	Change in Prices		Shareholders’ Equity
As of April 30, 2016	Equity Securities and ETFs held for dividend yield	$	3,637	30% increase	$	4,728		2.05	%
				30% decrease	$	2,546		-2.05	%

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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.

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, 2016 filed with the SEC on July 15, 2016. The Company removed the risk of finding suitable corporate office space which has been satisfied with the sublease the Company entered into with ABM Industries, Incorporated on October 3, 2016 for which landlord gave consent to the terms of the sublease on November 30, 2016.

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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 second quarter ended October 31, 2016. 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
August 1 - 31, 2016		3,002	$	17.78		3,002	$	762,000
September 1 - 30, 2016		4,800	$	16.09		4,800	$	685,000
October 1 - 31, 2016		945	$	16.14		945	$	669,000
Total		8,747	$	16.68		8,747

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. As of October 31, 2016, $669,000 of the $3,000,000 authorization remains available.

Item 5. Other Information

None.

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Item 6. Exhibits

10.1	Agreement of Sublease, dated as of October 3, 2016, possession commencing December 1, 2016 for the Company’s premises at 551 Fifth Ave., New York, NY and Consent of Landlord dated November 30, 2016.
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	Joint Principal Executive Officer/Principal Financial Officer Certificate Required Under Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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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: December 13, 2016

EX-10.1

Exhibit 10.1

AGREEMENT OF SUBLEASE

AGREEMENT OF SUBLEASE, (hereinafter sometimes referred to as “Agreement" or "Sublease") made as of the _____ day of October, 2016, by and between AMERICAN BUILDING MAINTENANCE INC. (f/k/a American Building Maintenance Co.), a California corporation, having an office at 551 Fifth Avenue, Suite 220, New York, New York 10176 (“Sublandlord”), and VALUE LINE, INC., a New York corporation, having an office at 485 Lexington Avenue, 9th Floor, New York, New York 10017, which address will be changed to 551 Fifth Avenue, Suite 300, New York, New York 10176, after Commencement Date (“Subtenant”).

W I T N E S S E T H :

WHEREAS, by Agreement of Lease, dated January 27, 1998, by and between Metropolitan Life Insurance Company, as landlord ("Original Landlord") and Sublandlord, as tenant, as amended by Amendment to Lease dated as of November, 2012, between Jeffrey Management Corp., as Manager for French Partners, LLC, New York French Soundview LLC and New York 551 Fifth Avenue Co-Investors LLC, as tenants-in-common-and successors in interest to Original Landlord ("Landlord"), as landlord, and Sublandlord, as tenant (as so amended, the “Lease”), Landlord leased to Sublandlord a portion of the second and third floors, as more particularly set forth in the Lease, comprising the entire third (3rd) floor (the “Third Floor Premises”) and a portion of the second floor, known as Suite 220 (the “Second Floor Premises” and, collectively with the Third Floor Premises, the “Premises”) in the building known by the street address 551 Fifth Avenue, New York, NY 10176 (the “Building”), which Premises are more particularly described in the Lease, a redacted copy of which Lease is attached hereto as Exhibit A and made a part hereof. The Premises is depicted on Exhibit B attached hereto and made a part hereof; and

WHEREAS, Subtenant desires to sublease from Sublandlord and Sublandlord is willing to sublease to Subtenant all of the Premises (the “Subleased Premises”).

NOW, THEREFORE, in consideration of Ten Dollars ($10.00) in hand paid by Subtenant to Sublandlord, the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows (capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed thereto in the Lease):

1.     Subleasing of Subleased Premises; Condition of Subleased Premises.

(a)     Subject to Section 21 hereof, Sublandlord hereby subleases to Subtenant and Subtenant hereby hires from Sublandlord, the Subleased Premises, upon and subject to all of the terms, covenants, rentals and conditions hereinafter set forth.

(b)     Subject to subsections (c) and (d) immediately following, Subtenant shall accept the Subleased Premises in the condition and state of repair on the date hereof, “as is”, subject to ordinary wear and tear between the date hereof and the Commencement Date (as hereinafter defined), and Subtenant expressly acknowledges and agrees that Sublandlord has made no representations or warranties with respect to the Subleased Premises or the Building and is not obligated to make repairs of or to perform any work at, the Subleased Premises.

(c)     INTENTIONALLY DELETED.

(d)     On the Commencement Date, the Sublandlord shall deliver the Subleased Premises to the Subtenant in boom clean condition, except for the personal property set forth on Exhibit D annexed hereto, which may remain in the Subleased Premises pursuant to Paragraph 24 below, and with the plumbing, electrical, HVAC systems and fixtures and appurtenances therein in as-is condition. Sublandlord warrants that, to the best of its knowledge, same are in good order and condition.

2.     Term. The term of this Sublease shall commence on the later to occur of (a) the date which is one (1) business day following the date on which Landlord's written consent to this Sublease as required under Section 21 of this Agreement is delivered to the Subtenant, or (b) the date on which the Subleased Premises are delivered to Subtenant in the condition required under this Sublease (the “Commencement Date”) and shall expire at 11:59 P.M. on November 29, 2027 (the “Expiration Date”), unless sooner terminated or extended as hereinafter provided (the “Term”). Promptly after the Commencement Date, upon the request of Sublandlord, Sublandlord and Subtenant shall execute a letter agreement setting forth the Commencement Date and the Expiration Date, the form of which is attached hereto as Exhibit C. Failure of the parties to execute such agreement shall not defer the Commencement Date or otherwise invalidate this Sublease.

3.     Fixed Rent.

(a)     During the Term, Subtenant shall pay to Sublandlord a fixed rent (the “Fixed Rent”) as set forth on Schedule 1 annexed hereto and made a part hereof. Notwithstanding the foregoing, provided that Subtenant is not in monetary default hereunder, or otherwise in default of a material covenant herein, Subtenant shall not be required to pay Fixed Rent for the period from the Commencement Date through the date which is one day prior to the sixth (6^th) month anniversary of the Commencement Date.

(b)     The Fixed Rent shall be due and payable on the first (1st) day of each calendar month at the office of Sublandlord, or at such other place or places as Sublandlord may designate, at any time and from time to time, without any set-off or deduction of any kind whatsoever unless expressly permitted in this Agreement. Subtenant shall pay to Sublandlord the first monthly installment of Fixed Rent due under this Sublease, upon the execution of this Sublease.

(c)     If Subtenant shall fail to pay any installment or other payment of any Rent (as defined in Section 4(c) hereof) or other sums payable hereunder when due, interest shall accrue (and shall be paid to Sublandlord immediately upon demand) on such installment or payment as a late charge, from the date such installment or payment became due until the date paid, at the rate of interest set forth in Section 46A of the Lease.

(d)     All amounts due under this Sublease are to be paid to Sublandlord (or its designees) in lawful money of the United States by federal funds wire transfer or by good and sufficient check, subject to collection, drawn on a bank which is a member of the Federal Reserve System or a successor thereto.

4.     Additional Rent.

(a)     Subtenant shall pay to Landlord as and for Additional Rent (“Additional Rent”) Subtenant’s Proportionate Share (as hereinafter defined) of the increases in real estate taxes (as such term is defined in the Lease) over the real estate tax base year of July 1, 2016 through June 30, 2017 (the “Sublease Base Year”), such payment being referred to as the “Subtenant’s Tax Payment”, which shall be paid within ten (10) days of being invoiced thereof.  Within ten (10) business days of Sublandlord’s receipt of Landlord’s Statement under Section 35(a) of the Lease (as amended), Sublaandlord will provide to Tenant:  (i) a copy of such Statement; and (ii) an Additional Statement prepared by Sublandlord setting forth the calculation of Subtenant’s Tax Payment (“Subtenant’s Tax Statement”).  “Subtenant’s Proportionate Share” shall at all times equal Landlord’s proportionate share, as tenant under the Lease, which, for information purposes only, is 5.48%.  Notwithstanding the obligation of Subtenant to pay to Sublandlord the Subtenant’s Tax Payment hereunder, Sublandlord shall be responsible to timely pay to Landlord the amounts due Landlord under Section 35(a) of the Lease.

(b)     Subject to Section 16 hereof, Subtenant’s Tax Payment pursuant to this Section 4 shall be due and payable in installments in the same manner that the payments for Real Estate Taxes are due and payable by Sublandlord to Landlord pursuant to Article 35A of the Lease.

(c)     All amounts payable by Subtenant to Sublandlord pursuant to this Sublease, including, without limitation, Fixed Rent, Subtenant’s Tax Payment, any other sums whatsoever characterized as additional rent under the Lease and payable to Landlord as a result of Subtenant’s use and occupancy of the Sublease Premises, such as, by way of example, and not limitation, any charges for overtime services provided to Subtenant, and the Electric Payment (as defined in Section 25 hereof) (collectively, “Rent”), shall be deemed to be and shall constitute rent for all purposes hereunder and, in the event of any non-payment thereof, Sublandlord shall have all of the rights and remedies provided herein (including, without limitation, those rights and remedies set forth in Section 11 hereof), at law or in equity for non-payment of rent. Subject to any applicable statutory period of limitation, Subtenant’s liability for Rent due hereunder shall survive the Expiration Date or earlier termination of this Sublease.

(d)     Sublandlord's failure during the Term to timely prepare and deliver any statements or bills required to be delivered hereunder shall not in any way be deemed to be a waiver of, or cause Sublandlord to forfeit or surrender its right to collect any Rent which may have become due pursuant to this Section 4 during the Term and. Subtenant's liability for Rent due hereunder accruing during the Term shall survive the expiration or sooner termination of this Sublease. Notwithstanding the foregoing, with the exception of Fixed Rent, Subtenant’s obligation to pay any other Rent shall not be due until notice of such Rent is duly invoiced and delivered to Subtenant in accordance with this Agreement.

(e)     Subtenant shall notify Sublandlord within thirty (30) days of its receipt of the Sublandlord’s Tax Statement that it disputes the calculation of the Subtenant’s Tax Payment set forth in the Sublandlord’s Tax Statement, but pending the resolution of any such dispute, Subtenant shall be required to timely pay amounts billed by Sublandlord to Subtenant. If such dispute is ultimately determined in Subtenant’s favor, Sublandlord shall pay to Subtenant within thirty (30) days of such determination any amount so overpaid by Subtenant. If Subtenant does not dispute the calculation of Subtenant’s Tax Payment within such thirty (30) day period, same shall be conclusive and binding on Subtenant.

5.     Alterations; Work Allowance.

(a)     Subtenant may make no changes, alterations, installations, additions, improvements or decorations in, to or about the Subleased Premises without Landlord's and Sublandlord’s prior written consent. Notwithstanding the foregoing sentence, and unless prohibited by the terms of the Lease, no consent shall be required for any changes of a merely cosmetic nature, such as painting, carpeting and hanging pictures on the wall in such a manner that does not cause damage to the wall, and and Sublandlord agrees that in connection with any other alterations, Sublandlord’s consent shall not be unreasonably withheld, and, provided that Landlord consents thereto when Landlord’s consent is required under the terms of the Lease, Sublandlord’s consent shall be granted. In the event that each of Landlord and Sublandlord shall consent to the performance by Subtenant of any such change, alteration, installation, addition, improvement or decoration Subtenant shall perform same in accordance with the applicable provisions of the Lease. Subtenant shall restore the Subleased Premises to the extent required pursuant to the Lease unless specifically otherwise agreed to in writing by Landlord and Sublandlord, provided, however, that notwithstanding anything herein or in the Lease to the contrary, Subtenant shall have no obligation to remove and restore any leasehold improvements existing in the Subleased Premises on the Commencement Date. Any changes, alterations or improvements performed by the Subtenant in order to prepare the Subleased Premises for its initial occupancy are referred to herein as “Subtenant’s Work” and the plans for any such Subtenant’s Work, which are approved by Landlord and Sublandlord in accordance with the terms hereof and the Lease are referred to herein as the “Approved Plans”. Sublandlord agrees that if pursuant to the Approved Plans, Subtenant removes any walls, Subtenant shall not be required to restore such removed walls at the expiration or earlier termination of the Term.

(b)     Sublandlord shall provide Subtenant an allowance in the aggregate amount of $417,060.00 (the “Work Allowance”), which Work Allowance shall be applied solely against the hard and soft costs and expenses attributable to Subtenant’s Work (including, but not limited to, the sums due to the contractors, vendors, materialmen and suppliers performing or related to Subtenant’s Work). In the event that the cost and expense of Subtenant’s Work shall exceed the amount of the Work Allowance, Subtenant shall be entirely responsible for such excess. Provided that Subtenant is not then in default of its obligation to pay Rent hereunder, or otherwise in default of any of the material terms, provisions or conditions of this Sublease on Subtenant’s part to be performed following the expiration of any notice or cure period, the Work Allowance shall be payable to Subtenant within thirty (30) days of a Subtenant Requisition (as hereinafter defined) in installments as Subtenant’s Work progresses, but in no event more frequently than monthly. Prior to the payment of any such installment of the Work Allowance, Subtenant shall deliver to Sublandlord a written request for disbursement (each herein called a “Subtenant Requisition”), which shall be accompanied by: (1) paid invoices for the portion of Subtenant’s Work referenced in such Subtenant Requisition, (2) a certificate signed by Subtenant’s architect certifying that the portion of Subtenant’s Work referenced in said Subtenant Requisition and represented by the aforesaid invoices has been substantially completed in accordance with the Approved Plan, and (3) partial lien waivers (in recordable form and form reasonably satisfactory to Sublandlord) from contractors, subcontractors and all materialmen who shall have performed any such work releasing Sublandlord and Subtenant from liability for the same. Sublandlord shall be permitted to retain from each disbursement of the Work Allowance an amount equal to ten (10%) percent of the amount requested to be disbursed by Subtenant. The aggregate amount of the retainages shall be paid by Sublandlord to Subtenant upon completion of Subtenant’s Work and upon Sublandlord’s receipt from Subtenant of (i) a certificate signed by Subtenant’s architect certifying that Subtenant’s Work has been substantially completed in accordance with the Approved Plan, (ii) any documents requested by Landlord, if any, in connection with Subtenant’s Work, (iii) all required Building Department sign-offs and approvals, if any, and (iv) final release and lien waivers (in recordable form and form reasonably satisfactory to Sublandlord) from Subtenant’s general contractor and from all contractors, subcontractors and materialmen performing Subtenant’s Work (collectively, “Providers”); provided, however, that if Subtenant is in dispute with any Provider and such Provider refuses to deliver a final release and lien waiver, then, Subtenant shall send written notice to Sublandlord advising Sublandlord of the nature of the dispute, and provided that Subtenant delivers evidence reasonably satisfactory to Sublandlord, and Landlord, if required under the Lease, that Subtenant has discharged such lien by payment, bonding or otherwise as provided by applicable law, Subtenant shall be deemed to be in compliance with (iv) above.   If, after the final disbursement has been made there remains any unused portion of the Work Allowance, then, provided Subtenant is not in monetary or material default hereunder, Subtenant may apply such unused portion to the next installment or installments of Fixed Rent due hereunder. Subtenant agrees, at any time and from time to time, upon not less than five (5) days’ prior notice from Sublandlord, to execute and deliver to Sublandlord a written certification that Sublandlord has satisfied its obligations with respect to the Work Allowance pursuant to and in accordance with this Sublease (or specifying in what respect, if any, Sublandlord has not satisfied its obligations with respect to the Work Allowance), it being intended that any such statement delivered pursuant hereto shall be deemed a representation and warranty to be relied upon by Sublandlord and by others with whom Sublandlord may be dealing, regardless of independent investigation. 

6.    Care, Surrender and Restoration of the Premises. Upon the Expiration Date or earlier termination of the Term, Subtenant shall quit and surrender the Subleased Premises to Sublandlord, broom clean, in good order and condition, ordinary wear and tear excepted and Subtenant shall remove all of its property therefrom. If the Expiration Date, or earlier termination of the Term, falls on a Sunday, this Sublease shall expire at noon on the immediately preceding Saturday unless such Saturday is a legal holiday, in which case the Term shall expire at noon on the first business day immediately preceding such Saturday. Subtenant shall observe and perform each of the covenants contained in this Sublease and Subtenant’s obligations hereunder shall survive the Expiration Date or earlier termination of this Sublease.

7.    Use. Subtenant shall use and occupy the Subleased Premises as executive and general offices for Subtenant’s business and for no other purpose.

8.     Subordination to and Incorporation of Terms of the Lease.

(a)     This Sublease is in all respects subject and subordinate to all of the terms, provisions, covenants, stipulations, conditions and agreements of the Lease, and, except as otherwise expressly provided in this Sublease, all of the terms, provisions, covenants, stipulations, conditions, rights, obligations, remedies and agreements of the Lease are incorporated in this Sublease by reference and made a part hereof as if herein set forth at length, and shall, as between Sublandlord and Subtenant (as if they were the Landlord and Tenant, respectively, under the Lease, as if the word “Lease” were “Sublease”), constitute the terms of this Sublease, except for the following provisions which shall not be incorporated in this Sublease:

Preamble and Witnesseth clauses, , Rider 35A (but only the references to Tenant’s Proportionate Share and the Base Tax Year), Paragraph 38A, Paragraph 38B, Paragraph 39, Paragraph 41B, Paragraph 44B, Paragraph 48A (but only the references to deleted Article 47, it being the intention that the rest of Paragraph 48A is incorporated herein, and applicable to the Subtenant Work and any other changes, improvements or alterations proposed by Subtenant during the Term), Article 49, Article 50, Article 53, Article 55, Article 58, Exhibit A, Exhibit “SWS”, Amendment of Lease: Preamble and Witnesseth Clauses, Article II, Article III, Article IVA (but only the references to the installation of meters), Article VII B, C, D, E, F, Article VIII, Article IX, Article X, Article XI, Article XII, Article XIV, Article XVI, Article XVIII, all Exhibits. The following provisions are incorporated herein by reference and made a part hereof as if herein set forth at length, but references to Owner or Landlord in the Lease shall continue to refer to Landlord: Article 29 (Services), Paragraph 38A (except that the last sentence of Paragraph 38A is not incorporated herein), Article 51. The following provisions are incorporated herein by reference and made a part hereof as if herein set forth at length, but references to Owner or Landlord in the Lease shall refer to both Landlord and Sublandlord: Paragraph 13 (Access to Premises), Article 40, Article 42, Article 48 (except to the extent not incorporated as hereinabove provided).

In addition, any such other terms of the Lease as do not relate to the Subleased Premises or are inapplicable, inconsistent with, or specifically modified by, the terms of this Sublease are not incorporated herein. In furtherance of the foregoing, Subtenant shall not take any action or do or permit to be done anything which (i) is or may be prohibited to Sublandlord, as tenant under the Lease, (ii) might result in a violation of or default under any of the terms, covenants, conditions or provisions of the Lease or any other instrument to which this Sublease is subordinate, or (iii) would result in any additional cost or other liability to Sublandlord. This clause shall be self-operative and no further instrument of subordination shall be required, but Subtenant shall execute promptly any certificate confirming such subordination that Sublandlord may request. In the event of any inconsistency between this Sublease and the Lease, such inconsistency shall be resolved in favor of that obligation which is more onerous to Subtenant or that restriction which is more restrictive of Subtenant, as the case may be.

(b)     In the event that the Lease is cancelled or terminated for any reason whatsoever, or in the event of a surrender of the Lease whether voluntary, involuntary or by operation of law, prior the expiration date of this Sublease, Subtenant shall, at the option of Landlord, attorn to and recognize Landlord, as Sublandlord hereunder, and shall, promptly upon Landlord’s request, execute and deliver all instruments necessary or appropriate to confirm such attornment, in accordance with Article 52A(iii) of the Lease. Subtenant hereby waives all rights under any present or future law to elect, by reason of the termination of the Lease, to terminate this Sublease or surrender possession of the Subleased Premises.

9.     Subtenant’s Obligations.

(a)     Except as specifically set forth herein to the contrary, all acts to be performed by, and all of the terms, provisions, covenants, stipulations, conditions, obligations and agreements to be observed by, Sublandlord, as tenant under the Lease, shall, to the extent that the same relate to the Subleased Premises, be performed and observed by Subtenant, and Subtenant’s obligations in respect thereof shall run to Sublandlord or Landlord, as may be reasonably determined to be appropriate taking into consideration that this is a sublease of the entire premises leased by Sublandlord under the Lease, or as may be required by the respective interests of Sublandlord and Landlord.

(b)     Without limiting the obligations of Subtenant to maintain and repair the Subleased Premises in accordance with the terms of this Sublease (and the incorporation provisions hereof), Subtenant agrees, at its sole cost and expense, to maintain in good order and repair the supplemental HVAC unit servicing the IT room in the Subleased Premises.

10.    Sublandlord’s Obligations; Quiet Enjoyment.

(a)     Notwithstanding anything contained in this Sublease to the contrary, Sublandlord shall have no responsibility to Subtenant for, and shall not be required to provide, any of the services or make any of the repairs or restorations which Landlord has agreed to make or provide, or cause to be made or provided, under the Lease and Subtenant shall rely upon, and look solely to, Landlord for the provision of such services and the performance of such repairs and restorations. Subtenant shall not make any claim against Sublandlord for any damage which may result from, nor shall Subtenant’s obligations hereunder, including, without limitation, Subtenant’s obligation to pay all Fixed Rent and Additional Rent when due, be impaired by reason of, (a) the failure of Landlord to keep, observe or perform any of its obligations under the Lease, or (b) the acts or omissions of Landlord or any of its agents, contractors, servants, employees, invitees or licensees; provided however, if such Landlord failure gives rise to the right to an abatement of rent under the Lease, then Subtenant shall be entitled to a corresponding abatement hereunder. Notwithstanding any provision herein which may be construed to the contrary, the Landlord’s prevailing rates for overtime services shall apply to Subtenant.

(b)     Provided that Subtenant is not in default hereunder beyond the expiration of any applicable notice and grace period, Sublandlord shall (i) not modify the terms of the Lease in a manner which would have an adverse effect on Subtenant's rights or obligations under this Sublease, and (ii) not cancel or surrender the Lease insofar as it relates to the Subleased Premises unless (A) such cancellation or surrender is made pursuant to a right expressly set forth in the Lease or (B) Landlord in connection with any such cancellation or surrender agrees to enter into a direct lease with Subtenant on the same terms and conditions as those of this Sublease. Sublandlord agrees that prior to exercising such termination right under clause (A) it shall deliver notice thereof to Subtenant.

(c)     Sublandlord covenants that, subject to (i) the Lease and Landlord's performance thereunder, and (ii) all matters to which the Lease may be subject from time to time, Subtenant, on paying all amounts due hereunder and performing all its other obligations under this Sublease, shall and may quietly have, hold and enjoy the Subleased Premises for the Term aforesaid in accordance with the terms hereof.

(d)     Sublandlord shall use all reasonable efforts and due diligence to keep the Lease in full force and effect, without fault thereunder (including without limitation, payment of all rent, tax payment and/or other sums payable thereunder as and when due). Supplementing the foregoing, at Subtenant's written request, Sublandlord shall take reasonable steps to assist Subtenant at Subtenant’s sole cost and expense, and without liability or expense by Sublandlord, to exercise the rights and remedies Sublandlord has under the Lease, with respect to the Sublease Premises. In no event however shall Sublandlord be required to commence any litigation proceeding against Landlord or any agent, employee or affiliate thereof, unless (x) such proceeding relates solely to the Subleased Premises and (y) Subtenant demonstrates, to the reasonable satisfaction of Sublandlord that such proceeding could not be maintained for lack of privity except under Sublandlord’s name, in which event, Subtenant shall bear all expenses (including, without limitation, all counsel fees of Sublandlord) of such proceeding.     

11.    Covenants with respect to the Lease. In the event that Subtenant shall be in default of any term, provision, covenant, stipulation, condition, obligation or agreement of, or shall fail to honor any obligation under, this Sublease, Sublandlord, on giving the notice required by the Lease (as modified pursuant to Section 15 hereof) and subject to the right, if any, of Subtenant to cure any such default within any applicable grace period provided in the Lease (as modified pursuant to Section 15 hereof), shall have available to it all of the remedies available to Landlord under the Lease in the event of a like default or failure on the part of Sublandlord, as tenant thereunder. Such remedies shall be in addition to all other remedies available to Sublandlord at law or in equity.

12.    Broker. Subtenant and Sublandlord each represent and warrant to the other that CBRE acted as Subtenant's broker and JLL acted as Sublandlord's broker (CBRE and JLL are collectively referred to as "Broker") in regard to this Sublease and there is no other broker, finder, consultant or person entitled to a commission in connection with this Sublease. Sublandlord agrees to pay the commissions due CBRE and JLL and shall indemnify, defend and hold Subtenant harmless from and against any liability, loss, obligation, damage, class, cost and expenses (including without limitation attorney fees and other charges) arising out of the commission due and payable to CBRE and JLL and Subtenant and Sublandlord do hereby agree to indemnify and hold the other harmless from and against any and all liabilities, losses, obligations, damages, claims, costs and expenses (including, without limitation, attorneys’ fees and other charges) arising out of any claim, demand or proceeding for a real estate brokerage commission, finder’s fee or other compensation made by any person or entity other than Broker in connection with this Sublease claiming to have dealt with Subtenant or the Sublandlord, as the case may be. The provisions of this Section shall survive the Expiration Date or earlier termination of this Sublease.

13.    Indemnification.

(a)     Indemnification of Sublandlord. Subtenant agrees to indemnify, defend and hold Sublandlord harmless from and against, any and all liabilities, losses, obligations, damages, penalties, claims, costs and expenses (including, without limitation, reasonable attorneys’ fees and other charges) which are actually paid, suffered or incurred by Sublandlord as a result of (a) any personal injuries or property damage occurring in, on or about the Subleased Premises during the Term, (b) any work or thing done, or any condition created, by Subtenant in, on or about the Subleased Premises or the Building during the Term, (c) any act or omission of Subtenant or Subtenant’s agents, contractors, servants, employees, invitees or licensees during the Term of this Sublease, or (d) the nonperformance or nonobservance of any such terms, provisions, covenants, stipulations, conditions, obligations or agreements to be observed by Subtenant. Notwithstanding anything to the contrary in this Section 13(a), Sublandlord and its directors, officers, agents, employees and representatives shall not be indemnified or held harmless against claims to the extent such claims are the result of (x) the negligence or willful misconduct of Sublandlord or its their respective agents, contractors, employees or subtenants or licensees, or (y) from a breach of this Sublease by Sublandlord which is not caused by a breach of this Sublease by Subtenant. The indemnification contained in this paragraph shall survive the expiration or earlier termination of this Sublease.

(b)     Indemnification of Subtenant. Sublandlord agrees to indemnify, defend and hold Subtenant harmless from and against, any and all liabilities, losses, obligations, damages, penalties, claims, costs and expenses (including, without limitation, reasonable attorneys’ fees and other charges) which are paid, suffered or incurred by Subtenant to the extent resulting from any breach by Sublandlord of any of the terms, covenants and conditions of the Lease or this Sublease, except to the extent such breach or violation is caused by any act or omission of Subtenant. Notwithstanding anything to the contrary in this Section 13(b), Subtenant and its directors, officers, agents, employees and representatives shall not be indemnified or held harmless against claims to the extent such claims are the result of the negligence or willful misconduct of Subtenant or its their respective agents, contractors, employees or subtenants or a breach by Subtenant hereunder. The indemnification contained in this paragraph shall survive the expiration or earlier termination of this Sublease.

14.    Termination of the Lease. If the term of the Lease is terminated prior to the Expiration Date, then, subject to Section 8(b) hereof, this Sublease shall immediately terminate (and in which event Subtenant shall comply with Section 6 hereof) and Sublandlord shall not be liable to Subtenant by reason thereof.

15.    Approvals or Consents. In all provisions of the Lease requiring the approval or consent of Landlord, Subtenant shall be required to obtain the express written approval or consent of Sublandlord, which consent shall be subject to the approval or consent of Landlord, pursuant to the Lease. If Sublandlord shall give its consent to any request made by Subtenant then Sublandlord hereby agrees to furnish to Landlord copies of each such request for consent or approval received from Subtenant within five (5) business days of its receipt of Subtenant's request. If Landlord shall refuse to give its consent or approval to any request made by Subtenant then Sublandlord’s refusal to give its consent or approval to such request shall be deemed to be reasonable. In the event that Subtenant requests an approval which requires approval by Landlord, Sublandlord agrees that if the matter for which Subtenant is seeking Landlord’s consent or approval is of an emergency nature posing an imminent threat to the persons or property of Subtenant, then Subtenant may simultaneously request approval from Sublandlord and Landlord. In all other instances, if Sublandlord fails to forward such request to the Landlord within five (5) business days of its receipt of Subtenant's request, Subtenant may send a notice to Sublandlord, advising Sublandlord that if it fails to submit the request within three (3) business days of such notice, Subtenant shall have the right to forward such request directly to Landlord, in which event, if Sublandlord fails to timely forward such request, Subtenant shall have the right to forward such request directly to Landlord.

16.    Time Limits; Notices as to the Subleased Premises.

(a)     The parties agree that unless otherwise expressly modified herein, the time limits set forth in the Lease for the giving of notices, making demands, payment of any sum, the performance of any act, condition or covenant, or the exercise of any right, remedy or option, are modified for the purpose of this Sublease by shortening or lengthening the same in each instance by three (3) business days so that notices may be given, demands made, any act, condition or covenant performed and any right or remedy hereunder exercised, by Sublandlord or Subtenant, as the case may be, within the time limits relating thereto contained in the Lease. Sublandlord and Subtenant shall, promptly, after receipt thereof, furnish to each other a copy of each notice, demand or other communication received from Landlord with respect to the Subleased Premises.

(b)     Notwithstanding the foregoing, if the time limits set forth in the Lease for the giving of notices, making demands, payment of any sum, the performance of any act, condition or covenant, or the exercise of any right, remedy or option is five (5) days or less, then the parties agree that, unless otherwise expressly modified herein, the time limit applicable for the purpose of this Sublease will be shortened by two (2) business day, instead of three (3) business days.

17.    Assignment and Subletting. Notwithstanding anything to the contrary contained herein or in the Lease, Subtenant, for itself, its successors and assigns, expressly covenants that it shall not assign (whether by operation of law or otherwise), pledge or otherwise encumber this Sublease, or sublet all or any portion of the Subleased Premises, without obtaining, in each instance, the prior written consent of Landlord and the prior written consent of Sublandlord, which consent Sublandlord agrees shall not be unreasonably withheld if Landlord provides its consent thereto. Except as modified in this Article 17, the provisions of Article 52A are incorporated herein, with the word “Landlord” as used therein, being deemed to mean both Landlord and Sublandlord. Notwithstanding the foregoing, the provisions of Article 52A(xi) are deleted from the incorporation provision. In the event that Sublandlord consents to any further subleasing hereunder, Subtenant shall, in consideration therefor, pay to Sublandlord, as additional rent, fifty percent (50%) of the “Net Profits” (as hereinafter defined), which shall be paid to Sublandlord as and when payable by the sub-subtenant to Subtenant. As used herein, “Net Profits” shall mean the difference between (x) and (y), with (x) being any and all rents, additional charges or other consideration payable under such sublease to Subtenant by the sub-subtenant which is in excess of the rent and additional rent accruing under this Sublease during the Term (including, but not limited to, sums paid for the sale or rental of Subtenant’s fixtures, leasehold improvements, equipment, furniture or other personal property), and (y) being the sum of (i) Subtenant’s Costs (as hereinafter defined), which shall be amortized over the term of the sub-sublease, and (ii) any amounts that Sublandlord would be required to pay to Landlord pursuant to Paragraph 52(xi) of the Lease. As used herein, “Subtenant’s Costs” shall mean the commercially reasonable expenses incurred by Subtenant in effectuating such sub-sublease, including, commercially reasonable construction allowance, brokerage commissions and legal fees. Sublandlord reserves the right to transfer and assign its interest in and to this Sublease to any entity or person who shall succeed to Sublandlord’s interest in and to the Lease.

18.    End of Term; Holding Over.

(a)     Subtenant acknowledges that possession of the Subleased Premises must be surrendered to Sublandlord on the Expiration Date or earlier termination of this Sublease, in the same condition as set forth in Section 6 hereof, subject to normal wear and tear. Subtenant agrees to indemnify Sublandlord against and hold Sublandlord harmless from, any and all liabilities, losses, obligations, damages, penalties, claims, costs and expenses (including, without limitation, attorneys’ fees and other charges) which are paid, suffered or incurred by Sublandlord as a result of the failure of, or the delay by, Subtenant in so surrendering the Subleased Premises, including, without limitation, any claims made by Landlord or any succeeding tenant founded on such failure or delay.

(b)     In addition to all other rights and remedies Sublandlord has under this Sublease, at law or in equity, if Subtenant shall fail to surrender vacant possession of the Subleased Premises on or prior to the expiration or earlier termination of the Term of this Sublease in accordance with the provisions hereof, (i) Subtenant shall pay to Sublandlord (a) for each month or partial month during which Subtenant holds over in the Subleased Premises after the expiration (or after the earlier termination due to Subtenant's default hereunder) of the Term of this Sublease, as and for liquidated damages a sum equal to two hundred percent (200%) of the monthly rent that would be charged if the term of this Sublease had remained in effect, plus (b) for each month or partial month during which Subtenant holds over in the Subleased Premises after the expiration (or after the earlier termination for any cause) of the Term of this Sublease, a sum equal to 100% of all damages, costs, expenses or other sums of any kind Sublandlord is obligated to pay to Landlord or other party as a result of such holdover (such sums to be paid as and when due and payable by Sublandlord) and (ii) Subtenant shall indemnify and hold harmless Sublandlord for any and all loss, cost, damage, liability or expense (including, without limitation, losses caused by Sublandlord's inability to occupy the Subleased Premises following termination, reasonable attorneys' fees, court costs and disbursements incurred by Sublandlord arising from or by reason of Subtenant's failure to surrender vacant possession of the Subleased Premises upon the expiration or earlier termination of this Sublease.

19.     Destruction, Fire and other Casualty. If the whole or any part of the Subleased Premises shall be damaged by fire or other casualty, the provisions of Article 9 of the Lease shall be applicable, pursuant to the incorporation provisions set forth in Article 8 above, i.e., all repair obligations of Landlord or “Owner” therein shall remain with Landlord and all restoration obligations of “Tenant” thereunder shall become the obligations of “Subtenant”; provided, however, that notwithstanding any provision herein or in the Lease which may be construed to the contrary, Subtenant shall not be obligated to restore any leasehold improvements in the Subleased Premises as of the Commencement Date. If the Lease is terminated as provided in said Article 9, this Sublease shall automatically be terminated. If Sublandlord’s obligation to pay rent and additional rent are abated under the terms of Article 9, Subtenant shall be entitled to a corresponding abatement of Rent hereunder, as applicable to the Subleased Premises hereunder, which shall abate only proportionate to the extent that the Rent for the Subleased Premises shall abate under the terms of the Lease.

20.     Notices. Any notice, request or demand (each, a “Notice”) permitted or required to be given by the terms and provisions of this Sublease, or by any law or governmental regulation, shall be in writing. All Notices shall be sent to the Sublandlord or Subtenant by (i) hand delivery with acknowledgment receipt returned, (ii) reputable overnight delivery service (prepaid by sender), with acknowledgment receipt returned, (iii) registered or certified mail, return receipt requested (postage-prepaid) or (iv) by e mail followed by delivery of such notice to all of the persons set forth below pursuant to either (i), (ii) or (iii) above, and Sublandlord agrees to use commercially reasonable efforts to send email notices to Subtenant pursuant to this subparagraph (iv).:

(a)	if to Sublandlord:
	American Building Maintenance, Inc.
	One Liberty Plaza, 7th floor
	New York, NY 10006
	Attention: Nancy Ferris
	E mail: Nancy.Ferris@abm.com
with a simultaneous copy sent to:
	Bortstein Legal Group
	1500 Broadway
	New York, NY 10036
	Attention: Meredith L. Clair, Esq.
	E mail: mclair@blegalgroup.com
(b)	if to Subtenant:
	Value Line, Inc.
	485 Lexington Avenue, 9th Floor
	New York, NY 10017
	Attention: Howard Brecher, President
	E mail: howard.brecher@gmail.com
	sanastasio@valueline.com
	lkempe@valueline.com
	davidetkind@yahoo.com
with a simultaneous copy sent to:
(with respect to Notices relating to defaults only):
	Mandelbaum Salsburg P.C.
	3 Becker Farm Road - Suite 105
	Roseland, N.J. 07068
	Attention: Owen T. Hughes, Esq.
	E mail: ohughes@lawfirm.ms.

Either party hereto may designate a different address or facsimile number for Notices to such party by serving notice of such change in accordance with this Section 20. All notices may be given by counsel for the parties with the same force and effect as if given by the parties. Notices shall be deemed delivered when received (or, if receipt is refused, when refused).

21.    Sublease Conditional Upon Landlord’s Consent. Sublandlord and Subtenant each acknowledge and agree that this Sublease is subject to the unconditional consent of Landlord, as required by Article 52 of the Lease. Within five (5) business days after the execution and delivery of this Sublease, Sublandlord shall request and diligently pursue the aforesaid Landlord’s Consent. Sublandlord shall promptly provide a copy of its written request to Landlord to Subtenant and Sublandlord shall deliver Landlord's written consent of this Sublease to the Subtenant within three (3) business days of its receipt of same. Notwithstanding anything set forth in this Sublease to the contrary, Sublandlord shall not be obligated to expend any sums or bring any lawsuits or other legal proceedings, in order to obtain such consent. If the consent of the Landlord is not obtained within sixty (60) days from the date hereof, or if Landlord expressly refuses to grant its consent, then either Sublandlord or Subtenant shall have the right at any time thereafter (but prior to receipt of the consent of Landlord if Landlord has not theretofore expressly refused to grant its consent) to terminate this Sublease by giving written notice of termination to the other. Upon such termination, this Sublease shall be of no further force or effect except that Sublandlord shall refund to Tenant the Security Deposit held by it and any other sums paid by Subtenant to Sublandlord pursuant to Paragraph 3(b).

22.    Security Deposit.

(a)     Subtenant shall have deposited with Sublandlord simultaneously with the execution of this Sublease, the sum of Four Hundred Sixty Nine Thousand One Hundred Ninety-Six and 88/100 DOLLARS ($469,196.88) (the “Security Deposit”), by Letter of Credit (as hereinafter defined) in the form as Sublandlord shall approve in its sole and absolute discretion, as security for the faithful performance, observance and compliance with all of the terms, covenants and conditions of this Sublease on Subtenant's part to perform, observe or comply with. Subtenant agrees that, in the event that Subtenant defaults under any of the terms, covenants or conditions in this Sublease on Subtenant's part to observe, perform or comply with (including, without limitation, the payment of any installment of Fixed Rent or any amount of Additional Rent), which default continues after any notice and applicable grace periods required under this Sublease and the expiration of any applicable cure period, Sublandlord may notify the Issuing Bank (as hereinafter defined) and thereupon receive all of the monies represented by the said Letter of Credit and use, apply, or retain the whole or any part of such proceeds, or both, as the case may be, to the extent required for the payment of any Fixed Rent, Additional Rent, or any other sums as to which Subtenant is in default, or for any sum that Sublandlord may expend or may be required to expend by reason of any such default (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Sublandlord). In the event that Sublandlord applies or retains any portion or all of such Letter of Credit, the amount not so used, applied or retained shall continue to be treated as Subtenant's Security Deposit, and Subtenant shall restore the amount so applied or retained by delivering a substitute Letter of Credit to Sublandlord within three (3) days after Sublandlord's demand therefor, so that, at all times, the amount held by Sublandlord shall be the full amount of the Security Deposit. In the event that Subtenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Sublease, that portion, if any, of the Letter of Credit not used, applied or retained shall be returned to Subtenant no later than sixty (60) days after the later of (x) Expiration Date (or such earlier date upon which the Sublease may terminate) and (y) delivery of possession of the Sublease Premises to Sublandlord, in accordance with, and subject to, the applicable provisions of this Sublease.

(b)     The letter of credit (the “Letter of Credit”) to be delivered as the Security Deposit under this Article shall be a clean, irrevocable and unconditional letter of credit issued by and drawn upon a commercial bank (hereinafter referred to as the “Issuing Bank”) with offices for banking purposes in the City of New York having assets of not less than One Billion Dollars ($1,000,000,000.00), which Letter of Credit shall have a term of not less than one year, be automatically renewable, be in a form approved by Sublandlord, be for the account of Sublandlord and be in the amount of the Security Deposit. The Letter of Credit shall provide that:

(i)     The Issuing Bank shall pay to Sublandlord an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft in the amount to be drawn;

(ii)     The Letter of Credit shall be deemed to be automatically renewed, without amendment, for consecutive periods of one (1) year each during the Term of this Sublease, unless the Issuing Bank sends written notice (hereinafter called the “Non-Renewal Notice”) to Sublandlord by certified or registered mail, return receipt requested, not less than ninety (90) days prior to the then expiration date of the Letter of Credit with an ultimate expiration no earlier than one hundred twenty (120) days after the Expiration Date of the Sublease, that it elects not to have such Letter of Credit renewed; and

(iii)    The Letter of Credit shall be transferable by the beneficiary thereof, without charge, and any failure of Subtenant, or any of its successors or assigns as permitted under this Sublease, to pay the transfer charges shall not affect the beneficiary’s ability to transfer the Letter of Credit; the Letter of Credit may be transferred as aforesaid from time to time, by the then beneficiary under the Letter of Credit; to effectuate a transfer under the Letter of Credit, the beneficiary must notify the Issuing Bank in writing signed by an authorized signatory of beneficiary, of the name and address of the transferee and of the effective date of the transfer; and upon the Issuing Bank’s receipt of such writing, the Issuing Bank will issue an amendment to the Letter of Credit that changes the name and address of the beneficiary hereof and shall deliver the original of such amendment to the new beneficiary/transferee and a copy thereof to the prior beneficiary/transferor.

In the event that the Issuing Bank sends a Non-Renewal Notice, Subtenant shall have three (3) business days from the date of issuance thereof to provide Sublandlord with a substitute Letter of Credit which meets the requirements of this Article. In the event that Subtenant fails within such period to provide Sublandlord with a substitute Letter of Credit, Sublandlord shall have the right, exercisable in accordance with this Article and without any notice to Subtenant to draw down on the Letter of Credit, which moneys shall be held by Sublandlord as a cash deposit subject to Sublandlord’s right to use such cash funds, at Sublandlord’s sole option, for purposes of having issued, on Subtenant’s behalf, a substitute Letter of Credit. In the event of a transfer of Sublandlord's interest in the Sublease, Sublandlord shall have the right, at no cost or expense to Sublandlord, to transfer or assign such Letter of Credit to the vendee, transferee or lessee, and Sublandlord shall notify Subtenant, by certified mail, return receipt requested, of such sale, transfer or lease, together with the name and address of such vendee, transferee or lessee, and Sublandlord shall thereupon be released by Subtenant from all liability for the return of such Letter of Credit. In such event, and subject to the satisfaction of the foregoing requirements, Subtenant agrees to look solely to the new landlord for the return of said Letter of Credit. In connection with the foregoing, Subtenant shall reasonably cooperate with Sublandlord and such vendee, transferee or lessee in connection with the transfer or assignment of such Security Deposit including, without limitation, executing and delivering, within five (5) days after demand therefor, any and all instruments, certificates, agreements or other documents that Sublandlord, such vendee, transferee or lessee or the Issuing Bank may reasonably require.

(c)     Subtenant covenants that it will not assign or encumber, or attempt to assign or encumber, the Security Deposit, and that neither Sublandlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment, or attempted encumbrance.

(d)     In the event that at any time during the Term of this Sublease, the Issuing Bank files for protection under any chapter of the United States Bankruptcy Code or the bankruptcy code of the state or county of its formation or is seized by the appropriate regulatory authorities of the State of New York, the United States or the state or nation of its formation and as a result thereof is incapable of or unable to, or prohibited from honoring the then existing Letter of Credit (hereinafter referred to as the “Existing L/C”) then, upon the happening of the foregoing, Sublandlord may send written notice to Subtenant (hereinafter referred to as the “Replacement Notice”) requiring Subtenant replace the Existing L/C with a new letter of credit (hereinafter referred to as the “Replacement L/C”) from an Issuing Bank meeting the qualifications described in this Article, within thirty (30) days of the date of such notice. Upon receipt of a Replacement L/C meeting the qualifications of this Article, Sublandlord shall simultaneously return the Existing L/C to Subtenant. In the event that a Replacement L/C meeting the qualifications of this Article is not received by Sublandlord within the time specified, the Existing L/C may be presented for payment by Sublandlord and the proceeds thereof shall be held by Sublandlord in accordance with this Article.

(e)     Sublandlord agrees that on the fifth (5^th) anniversary of the Sublease Commencement Date (the “Burn Down Date”) the Security Deposit may be decreased to an amount equal to Three Hundred Five Thousand, Two Hundred Seventy-Five Dollars and 88/100 ($305,275.88) (the "Reduced Deposit Amount") on the following terms and conditions: (i) Subtenant is not in default hereunder on the Burn Down Date, and (ii) prior to the Burn Down Date, Subtenant has not been in monetary or material default hereunder. Subtenant shall bear any and all costs and expenses to amend the Existing L/C to reflect such burn down.

23.    No Waiver. No act or thing done by Sublandlord or Sublandlord’s agents during the Term shall be deemed an acceptance of a surrender of the Subleased Premises, and no agreement to accept such surrender shall be valid unless in writing signed by Sublandlord. The failure of Sublandlord to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of this Sublease shall not prevent a subsequent act, which would have originally constituted a violation of the provisions of this Sublease, from having all of the force and effect of an original violation of the provisions of this Sublease. The receipt by Sublandlord of Fixed Rent or any other payment with knowledge of the breach of any covenant of this Sublease shall not be deemed a waiver of such breach. No provision of this Sublease shall be deemed to have been waived by Sublandlord, unless such waiver be in writing signed by Sublandlord. No payment by Subtenant or receipt by Sublandlord of a lesser amount than the monthly Fixed Rent or other payment herein stipulated shall be deemed to be other than on account of the earliest stipulated Fixed Rent or other payment, or as Sublandlord may elect to apply same, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Fixed Rent or other payment be deemed an accord and satisfaction, and Sublandlord may accept such check or payment without prejudice to Sublandlord’s right to recover the balance of such Fixed Rent or other payment or to pursue any other remedy provided in this Sublease.

24.     Personal Property.     Subject to this Section 24, and for no separate consideration, all fixtures, equipment and other articles of personal property (the “Personal Property”) located in the Subleased Premises which are set forth on Exhibit D, attached hereto and made a part hereof, are included in this Sublease, except if Subtenant notifies Sublanldord prior to November 15, 2016, that Subtenant does not want any particular item of Personal Property listed on Exhibit D to remain in the Subleased Premises, in which event, Exhibit D shall be updated to be deemed to delete such items, without any further action of either party, and Sublandlord shall remove such items from the Subleased Premises within ten (10) days of its receipt of any such removal notice. Title to the Personal Property shall remain with Sublandlord, and Subtenant may not dispose of any item of Personal Property without the prior written consent of Sublandlord, which consent shall not be unreasonably withheld provided same is replaced with an item of comparable value. In the event that the item that Subtenant seeks to dispose of is not in good order and repair, Subtenant may offer to return same to Sublandlord, by written notice with reasonable backup, and if Sublandlord does not elect to accept the return of such item, Subtenant may dispose of same. Provided Subtenant is not in default hereunder as of the Expiration Date, Sublandlord agrees that same shall be conveyed to Subtenant pursuant to the Bill of Sale substantially in the form attached hereto and made a part hereof as Exhibit E. Subtenant agrees to pay any sales, use or other taxes that may be imposed in connection with Subtenant’s use, title or right to use the Personal Property pursuant to this Sublease. Subtenant shall accept the Personal Property in its “as-is” condition as of the Commencement Date with all faults, if any, and without warranty of any kind, express or implied. On the Expiration Date, Subtenant shall remove the Personal Property from the Subleased Premises at Subtenant’s sole cost and expense (other than fixtures that are permanently attached or affixed thereto), and shall promptly repair any damage to the Subleased Premises that may be caused by such removal.     

25.    Electricity, Air Conditioning.

(a)     In consideration of the electricity furnished to the Subleased Premises, Subtenant shall pay to Sublandlord Additional Rent equal to all amounts payable by Sublandlord to Landlord pursuant to the Lease in respect of such electricity (the “Electric Payment”). The Electric Payment shall be due within ten (10) days of Sublandlord's bills therefor. If Subtenant shall so request, Sublandlord shall provide Subtenant with a copy of any electricity bill provided by the utility company or Landlord. Notwithstanding the foregoing, if the Subleased Premises are directly metered by the utility company, Sublandlord may require Subtenant to obtain service from and to make payment when due directly to the utility company if Sublandlord is so required by Landlord.

(b)     Except to the extent caused by the negligence or willful misconduct of Sublandlord, Sublandlord shall not have any liability for any defect in, or any interruption or failure of, the electricity furnished to the Subleased Premises. In no event shall Subtenant draw more electricity than that which the feeders, risers, panels and other electricity supply equipment serving the Subleased Premises are capable of safely supplying.

26.    Sublandlord Representations.

(a)     Sublandlord represents to Subtenant that (i) the Lease is in full force and effect, and (iii) Subtenant has delivered to Subtenant a true and complete copy of the Lease, subject to redactions.

(b)     Sublandlord represents and warrants to Subtenant that (i) Sublandlord has the power, right and authority to make this Sublease and to perform its obligations hereunder, (ii) no petition in bankruptcy or similar proceeding under the United States Bankruptcy Code is pending or to Sublandlord's best knowledge, threatened against, or contemplated by Sublandlord.

27.    Miscellaneous.

(a)     The provisions of this Sublease shall be governed and interpreted in accordance with the laws of the State of New York.

(b)     This Sublease may not be modified, amended, extended, renewed, terminated or otherwise modified except by a written instrument signed by both of the parties hereto.

(c)     It is acknowledged and agreed that all understandings and agreements heretofore had between the parties hereto are merged in this Sublease, which alone fully and completely expresses their agreement with respect to the subject matter hereof. This Sublease has been executed and delivered after full investigation by each of the parties hereto, and neither party hereto has relied upon any statement, representation or warranty which is not specifically set forth in this Sublease. This Sublease shall be construed without regard to any presumption or other rule requiring construction against the party causing this Sublease to be drafted.

(d)     TIME SHALL BE OF THE ESSENCE with respect to ALL TIME LIMITS SET FORTH HEREIN.

(e)     The terms, covenants and conditions contained in this Sublease shall bind and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

(f)     Each of Sublandlord and Subtenant represents to the other that it has full power and authority to enter into this Sublease and to perform its obligations hereunder and the persons executing this Sublease on its behalf are duly authorized to do so.

(g)    The failure of Sublandlord or Subtenant to insist in any one or more instances upon the strict performance of any of the covenants, agreements, terms, provisions or conditions of this Sublease, or to exercise any election or option contained herein, shall not be construed as a waiver or relinquishment, for the future or in any other instance, of such covenant, agreement, term, provision, condition, election or option but the same shall continue and remain in full force and effect. No waiver of any covenant, agreement, term, provision or condition of this Sublease shall be deemed to have been made, unless expressed in writing and duly executed by the waiving party.

(h)     The parties hereto waive any right to trial by jury in any summary proceeding that may be instituted hereafter by Sublandlord against Subtenant in respect of the Subleased Premises, or in any action that may be brought to recover any rent, additional rent, or any other sum due under this Sublease or damages under this Sublease.

(i)     This Sublease may be executed in two or more counterparts and by facsimile, each of which shall be deemed an original, but all such counterparts together shall constitute one and the same instrument.

(j)     This Sublease does not constitute an offer to sublease the Subleased Premises to Subtenant and Subtenant shall have no rights with respect to the subleasing of the Subleased Premises unless and until Sublandlord, in its sole and absolute discretion, elects to be bound hereby by executing and unconditionally delivering to Subtenant an original counterpart hereof.

(k)     Confidentiality: Each party agrees to treat the following information as confidential and not to divulge, use or exploit the same except as expressly permitted under this Agreement: (a) the existence and terms of this Agreement and (b) all information received from the other party under or in connection with this Agreement designated as “confidential” at the time such information was transmitted.  The foregoing restrictions shall not apply to the extent the information: (a) ceases to be confidential and enters into the public domain other than due to a breach of this Agreement by the receiving party; (b) is acquired by the receiving party from a third party free of any obligation of confidence; (c) is required by law to be disclosed; of (d) is disclosed by such party to persons who "need to know" in connection with the operation of such party’s business, such as its officers, directors, employees, attorneys, accountants, lenders, partners, investors, bankers, and potential purchasers.

IN WITNESS WHEREOF, this Sublease has been duly executed as of the day and year first above written.

SUBLANDLORD:
AMERICAN BUILDING MAINTENANCE INC., a California corporation
By:
	Name:
	Title:
SUBTENANT:
VALUE LINE, INC., a New York corporation
By:
	Name:     Howard Brecher
	Title:      President

SCHEDULE A

FIXED RENT SCHEDULE

Year	Annual	Monthly
1	$       1,126,072.50	$     93,839.38
2	$       1,151,409.13	$     95,950.76
3	$       1,177,315.84	$     98,109.65
4	$       1,203,805.44	$   100,317.12
5	$       1,230,891.07	$   102,574.26
6	$       1,353,617.11	$   112,801.43
7	$       1,384,073.50	$   115,339.46
8	$       1,415,215.15	$   117,934.60
9	$       1,447,057.49	$   120,588.12
10	$       1,479,616.29	$   123,301.36
11	$       1,512,907.65	$   126,075.64
12	$       1,546,948.08	$   128,912.34

CONSENT TO SUBLEASE

This Consent to Sublease made as of this _____ day of November, 2016, by and between JEFFREY MANAGEMENT CORP. AS MANAGER FOR FRENCH PARTNERS, LLC, NEW YORK FRENCH SOUNDVIEW LLC AND NEW YORK 551 FIFTH AVENUE CO-INVESTORS LLC AS TENANTS IN COMMON ("Owner"), as Owner’s successor in interest under that certain Lease dated January 27, 1998 and Amendment of Lease dated December 31, 2012 (collectively the "Lease") by and between Owner’s predecessor in interest and AMERICAN BUILDING MAINTENANCE INC. ("Tenant"), subject to and specifically conditioned upon the following terms and conditions hereby grants its consent to the Sublease dated October 3, 2016 made by and between the Tenant, as sublessor (“Sublessor”)and VALUE LINE, INC. ("Sublessee"), as sublessee, a copy of which is attached hereto as Exhibit “A” (the "Sublease"), covering a portion of the second (2^nd) floor and the entire third (3^rd) floor (the "Premises") as more particularly described in the Sublease, in the building known as 551 Fifth Avenue, New York, New York 10176 (“Building”).

The capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Lease. This Consent to Sublease and the acknowledgment and acceptance of the conditions hereof may be executed in counterparts, each of which shall be considered an original but constituting one and the same document.

As conditions to the consent of Owner to the Sublease, it is understood and agrees as follows:

1.

No Release. This Consent to Sublease shall in no way release the Tenant or any person or entity claiming by, through or under Tenant, including Sublessee, from any of its covenants, agreements, liabilities and duties under the Lease (including, without limitation, all duties to cause and keep Owner and others named or referred to in the Lease fully insured and indemnified with respect to any acts or omissions of Sublessee or its agents, employees or invitees or other matters arising by reason of the Sublease or Sublessee's use or occupancy of the Premises), as the same may be amended from time to time, without respect to any provisions to the contrary in the Sublease.

2.

Specific Provisions of Lease and Sublease. This Consent to Sublease consenting to a sublease to Sublessee does not constitute approval by Owner of any of the provisions of the Sublease document or agreement thereto or therewith; nor shall the same be construed to amend the Lease in any respect, any purported modifications being solely for the purpose of setting forth the rights and obligations as between Tenant and Sublessee, but not binding Owner.

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3.	Amendment of Sublease. Tenant and Sublessee shall not amend in any respect the Sublease without the prior written approval of Owner. In no event shall any such amendment affect or modify or be deemed to affect or modify the Lease in any respect.
4.	Limited Consent. This Consent to Sublease does not and shall not be construed or implied to be a consent to any other matter for which Owner's consent is required under the Lease, including, without limitation, any alterations under Articles 3 and 48 of the Lease.
5.	Tenant's Continuing Liability. Tenant shall be liable to Owner for any default under the Lease, whether such default is caused by Tenant or Sublessee or anyone claiming by or through either Tenant or Sublessee, but the foregoing shall not be deemed to restrict or diminish any right which Owner may have against Sublessee pursuant to the Lease, in law or in equity for violation of the Lease by Sublessee.
6.	Acceptance by Tenant and Sublessee. Tenant and Sublessee understand and acknowledge that Owner has agreed to execute this Consent to Sublease based upon Tenant's and Sublessee's acknowledgment and acceptance of the terms and conditions hereof.
7.	Subordination. The Sublease is, in all respects, subject and subordinate to the Lease, as the same may be amended. Furthermore, in the case of any conflict between the provisions of this Consent to Sublease or the Lease and the provisions of the Sublease, the provisions of this Consent to Sublease or the Lease, as the case may be, shall prevail unaffected by the Sublease.
8.	Additional Rent. Notwithstanding anything to the contrary herein, Tenant acknowledges and agrees that Tenant will promptly pay to Owner throughout the Term of the Lease any Additional Rent, as defined in the Lease, owed to Owner as required under the Lease. Without limiting the generality of the foregoing, Tenant specifically agrees to pay all of Owner's reasonable costs, charges and expenses, including attorneys' fees, incurred in connection with the Sublease and this Consent to sublease upon submission of bills therefor, and that the failure to pay the same upon demand shall be default under the Lease.

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9.	Termination of Lease. If at any time prior to the expiration of the term of the Sublease the Lease shall terminate or be terminated for any reason (or Tenant's right to possession shall terminate without termination of the Lease), the Sublease shall simultaneously terminate. However, Sublessee agrees, at the election and upon written demand of Owner, and not otherwise, to attorn to Owner for the remainder of the term of the Sublease, such attornment to be upon all of the terms and conditions of the Lease, except that the Base Rent set forth in the Lease shall be substituted for the Base Rent set forth in the Sublease. The foregoing provisions of this paragraph shall apply notwithstanding that, as a matter of law, the Sublease may otherwise terminate upon the termination of the Lease and shall be self-operative upon such written demand of the Owner, and no further instrument shall be required to give effect to said provisions. Upon the demand of Owner, however, Sublessee agrees to execute, from time to time, documents in confirmation of the foregoing provisions of this paragraph satisfactory to Owner in which Sublessee shall acknowledge such attornment and shall set forth the terms and conditions of its tenancy. Nothing contained in this paragraph shall be construed to impair or modify any right otherwise exercisable by the Owner, whether under the Lease, any other agreement or in law.
10.	Services. Tenant hereby agrees that Owner may furnish to the Premises services requested by Sublessee other than or in addition to those to be provided under the Lease, and bill the Sublessee directly for such services for the convenience of and without notice to Tenant. Sublessee hereby agrees to pay Owner all amounts which may become due for such services on the due dates therefor.
11.	No Waiver; No Privity. Nothing herein contained shall be deemed a waiver of any of the Owner's rights under the Lease. In no event, however, shall Owner be deemed to be in privity of contract with Sublessee or owe any obligation or duty to Sublessee under the Lease or otherwise, any duties of Owner under the Lease being in favor of, for the benefit of and enforceable solely by Tenant.
12.	Notices. Sublessee agrees to promptly deliver a copy to Owner of all notices of default and all other notices sent to Tenant under the Sublease, and Tenant agrees to promptly deliver a copy to Owner of all such notices sent to Sublessee under the Sublease. All copies of any such notices shall be delivered personally or sent by the United States registered or certified mail, postage prepaid, return receipt requested to Owner or its agent.

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13.

Reservation of Rights.This Consent to Sublease shall be deemed limited solely to the Sublease, and Owner reserves the right to consent or to withhold consent and all other rights under the Lease with respect to any other matters including, without limitation, any proposed alterations and with respect to any further or additional subleases, assignments or transfers of the Lease or any interest therein or thereto including, without limitation, a sublease or any assignment of this Sublease.

14.

Tenant and Subtenant Bound. By executing this Consent to Sublease, Tenant and Sublessee acknowledge and agree to be bound by all of the terms and conditions of Owner's consent to the Sublease as set forth herein.

15. Real Estate Broker. Tenant and Sublessee acknowledge and agree that Owner shall have no obligation whatsoever to pay any brokerage commissions or brokerage fees in connection with this transaction. Tenant and Sublessee agree to indemnify, defend and hold Owner harmless (including attorneys' fees) from and against any and all claims for brokerage commissions made by any party claiming to act for or on behalf of Owner, Tenant or Sublessee concerning this transaction.

IN WITNESS WHEREOF the parties hereto have executed this instrument as of the day first above written.

JEFFREY MANAGEMENT CORP. AS MANAGER FOR FRENCH PARTNERS, LLC, NEW YORK FRENCH SOUNDVIEW LLC AND NEW YORK 551 FIFTH AVENUE CO-INVESTORS LLC AS TENANTS IN COMMON

By:

AMERICAN BUILDING MAINTENANCE INC.

By:

VALUE LINE, INC.

By:

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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 October 31, 2016;

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: December 13, 2016	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 October 31, 2016;

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: December 13, 2016	By:	/s/	Stephen R. Anastasio
			Stephen R. Anastasio
			Vice President & Treasurer
			(Principal Financial Officer)

EX-32

Exhibit 32

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 October 31, 2016 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: December 13, 2016

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Document And Entity Information	6 Months Ended
	Oct. 31, 2016 shares
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)	9,715,128
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false

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Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Current Assets:
Cash and cash equivalents (including short term investments of $5,321 and $12,037, respectively)	$ 6,737,000	$ 13,122,000
Securities available-for-sale	14,509,000	3,637,000
Accounts receivable, net of allowance for doubtful accounts of $17 and $22, respectively	1,734,000	1,254,000
Prepaid and refundable income taxes	58,000	126,000
Prepaid expenses and other current assets	1,445,000	1,381,000
Deferred income taxes	232,000	432,000
Total current assets	24,715,000	19,952,000
Long term assets:
Investment in EAM Trust	58,167,000	57,942,000
Restricted money market investment	469,000
Property and equipment, net	656,000	3,621,000
Capitalized software and other intangible assets, net	2,731,000	4,992,000
Total long term assets	62,023,000	66,555,000
Total assets	86,738,000	86,507,000
Current Liabilities:
Accounts payable and accrued liabilities	1,481,000	2,669,000
Accrued salaries	1,146,000	1,066,000
Dividends payable	1,652,000	1,659,000
Accrued taxes on income	1,832,000	388,000
Unearned revenue	18,762,000	20,516,000
Total current liabilities	24,873,000	26,298,000
Long term liabilities:
Unearned revenue	4,035,000	4,926,000
Deferred tax liability, long term	19,519,000	20,683,000
Total long term liabilities	23,554,000	25,609,000
Total liabilities	48,427,000	51,907,000
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	40,056,000	35,524,000
Treasury stock, at cost (284,872 and 243,411 shares, respectively)	(3,721,000)	(3,040,000)	[1],[2]
Accumulated other comprehensive income, net of tax	(15,000)	125,000
Total shareholders' equity	38,311,000	34,600,000
Total liabilities and shareholders' equity	$ 86,738,000	$ 86,507,000

[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.

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Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Oct. 31, 2016	Apr. 30, 2016
Short term investments	$ 5,321	$ 12,037
Allowance for doubtful accounts	$ 17	$ 22
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)	284,872	243,411	[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.

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Consolidated Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Revenues:
Investment periodicals and related publications	$ 7,629	$ 8,039	$ 15,279	$ 16,223
Copyright data fees	1,021	598	1,892	1,246
Total publishing revenues	8,650	8,637	17,171	17,469
Gain on sale of operating facility			8,123
Total revenues	8,650	8,637	25,294	17,469
Expenses:
Advertising and promotion	620	748	1,528	1,732
Salaries and employee benefits	4,301	3,925	8,209	7,704
Production and distribution	2,350	2,065	4,824	4,030
Office and administration	1,356	1,073	2,573	2,218
Total expenses	8,627	7,811	17,134	15,684
Income from operations	23	826	8,160	1,785
Revenues and profits interests in EAM Trust	1,932	1,940	3,848	3,982
Income from securities transactions, net	61	31	94	82
Income before income taxes	2,016	2,797	12,102	5,849
Income tax provision	535	805	4,263	1,738
Net income	$ 1,480	$ 1,992	$ 7,838	$ 4,111
Earnings per share, basic & fully diluted (in dollars per share)	$ 0.15	$ 0.20	$ 0.81	$ 0.42
Weighted average number of common shares (in shares)	9,718,650	9,787,610	9,729,002	9,795,672

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Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Net income	$ 1,480	$ 1,992	$ 7,838	$ 4,111
Other comprehensive income (loss), net of tax:
Other comprehensive income (loss), available-for-sale securities adjustment, net of tax	(294)	66	(140)	(26)
Other comprehensive income (loss)	(294)	66	(140)	(26)
Comprehensive income	$ 1,186	$ 2,058	$ 7,698	$ 4,085

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Consolidated Condensed Statements of Cash Flows (Unadited) - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities:
Net income	$ 7,838,000	$ 4,111,000
Purchases of equity securities classified as available-for-sale	(4,954,000)	(1,611,000)
Purchases of fixed income securities classified as available-for-sale	(6,135,000)
Proceeds from sales of securities available for sale	0	8,684,000
Distributions received from EAM Trust	3,653,000	3,989,000
Proceeds from sale of operating facility	11,555,000
Restricted money market investment	(469,000)
Acquisition of property and equipment	(593,000)
Expenditures for capitalized software	(360,000)	(931,000)
Net cash provided by investing activities	2,697,000	10,131,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,747,000	1,430,000
Non-voting revenues interest in EAM Trust	(3,586,000)	(3,721,000)
Non-voting profits interest in EAM Trust	(262,000)	(261,000)
Realized gain on sale of operating facility	(8,123,000)
Realized losses on securities		15,000
Unrealized gains on securities	(30,000)	(30,000)
Deferred rent	(100,000)	(100,000)
Deferred income taxes	(650,000)	(399,000)
Changes in operating assets and liabilities:
Unearned revenue	(2,645,000)	(2,000,000)
Reserve for settlement		(5,000)
Accounts payable & accrued expenses	(1,088,000)	(157,000)
Accrued salaries	80,000	(148,000)
Accrued taxes on income	1,207,000	(19,000)
Prepaid and refundable income taxes	68,000	11,000
Prepaid expenses and other current assets	(64,000)	200,000
Accounts receivable	(480,000)	238,000
Total adjustments	(12,926,000)	(4,946,000)
Net cash used in operating activities	(5,088,000)	(835,000)
Cash flows from financing activities:
Purchase of treasury stock at cost	(681,000)	(548,000)
Dividends paid	(3,313,000)	(3,039,000)
Net cash used in financing activities	(3,994,000)	(3,587,000)
Net change in cash and cash equivalents	(6,385,000)	5,709,000
Cash and cash equivalents at beginning of year	13,122,000	5,874,000
Cash and cash equivalents at end of period	$ 6,737,000	$ 11,583,000

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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, 2015	10,000,000		(190,504)
Balance at Apr. 30, 2015	$ 1,000	$ 991	$ (2,244)	$ 34,587	$ 105	$ 34,439
Net income				4,111		4,111
Other comprehensive income (loss), available-for-sale securities adjustment, net of tax					(26)	(26)
Purchase of treasury stock (in shares)			(37,335)
Purchase of treasury stock			$ (548)			(548)
Dividends declared				(3,131)		(3,131)
Balance (in shares) at Oct. 31, 2015	10,000,000		(227,839)
Balance at Oct. 31, 2015	$ 1,000	991	$ (2,792)	35,567	79	34,845
Balance (in shares) at Apr. 30, 2016	10,000,000		(243,411)
Balance at Apr. 30, 2016	$ 1,000	991	$ (3,040)	35,524	125	34,600
Net income				7,838		7,838
Other comprehensive income (loss), available-for-sale securities adjustment, net of tax					(140)	(140)
Purchase of treasury stock (in shares)			(41,461)
Purchase of treasury stock			$ (681)			(681)
Dividends declared				(3,306)		(3,306)
Balance (in shares) at Oct. 31, 2016	10,000,000		(284,872)
Balance at Oct. 31, 2016	$ 1,000	$ 991	$ (3,721)	$ 40,056	$ (15)	$ 38,311

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Consolidated Condensed Statement of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Oct. 31, 2016	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015
Retained Earnings [Member]
Dividends declared per share (in dollars per share)	$ 0.17	$ 0.17	$ 0.16	$ 0.16

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Note 1 - Organization and Summary of Significant Accounting Policies

6 Months Ended

Oct. 31, 2016

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 non-voting revenues interest and a non-voting profits interests. EAM was established to provide investment management services to the Value Line Mutual Funds ("Value Line Funds" or the "Funds"). 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.

The Consolidated Condensed Balance Sheets as of October 31, 2016 and April 30, 2016, 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, 2016 filed with the SEC on July 15, 2016 (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 deconsolidation of the investment management related affiliates (the "Restructuring Transaction") 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, subscriptions to Value Line periodicals and related publications are 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 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 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 ES's 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”). 100% of the Revenues Interest and not less than 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. The Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary ES. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting. 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.

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 equity securities including Exchange traded funds ("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. 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 Securities and Exchange Act.

The Fair Value Measurements Topic of FASB's ASC 820 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 October 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	5,321	$	-	$	-	$	5,321
Securities available-for-sale		14,509		-		-		14,509
	$	19,830	$	-	$	-	$	19,830

	As of April 30, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	12,037	$	-	$	-	$	12,037
Securities available-for-sale		3,637		-		-		3,637
	$	15,674	$	-	$	-	$	15,674

The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2016 and April 30, 2016, 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 Condensed 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 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 October 31, 2016, 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 October 31, 2016 and April 30, 2016, cash equivalents included $5,321,000 and $12,037,000, respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.

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Note 2 - Investments

6 Months Ended

Oct. 31, 2016

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 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 are readily marketable and have a maturity of twelve months or less and are included 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 October 31, 2016 and April 30, 2016, 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), PowerShares Financial Preferred ETF (PGF), XLU, TUSA, FVL and Proshares Trust S&P 500 Dividend (NOBL) was $8,399,000 and $3,445,000, and the fair value was $8,372,000 and $3,637,000, respectively.

There were no sales or proceeds from sales of equity securities during the six months ended October 31, 2016. During the six months ended October 31, 2015, the Company received $8,684,000 of proceeds from sales of equity securities and reclassified $15,000 of losses from these sales into Consolidated Condensed Statement of Income. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $218,000, net of deferred taxes of $77,000 was included in Shareholders' Equity at October 31, 2016. The decrease in gross unrealized gains on equity securities classified as available-for-sale of $55,000, net of deferred taxes of $19,000 was included in Shareholders' Equity at October 31, 2015.

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 October 31, 2016, accumulated other comprehensive income included unrealized loss of $27,000, net of deferred taxes of $9,000. As of April 30, 2016, accumulated other comprehensive income included unrealized gains of $192,000, net of deferred taxes of $67,000.

The carrying value and fair value of securities available-for-sale at October 31, 2016 were as follows:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	8,399	$	56	$	(83	)	$	8,372

The carrying value and fair value of securities available-for-sale at April 30, 2016 were as follows:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	3,445	$	194	$	(2	)	$	3,637

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 October 31, 2016 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	$	3,395	$	1	$	-	$	3,396
Due 1 year through 5 years		2,740		1		-		2,741
Total investment in government debt securities	$	6,135	$	2	$	-	$	6,137

There were no fixed income securities at April 30, 2016.

The increase in gross unrealized gains of $2,000 on fixed income securities classified as available-for-sale net of deferred income tax of $1,000, was included in Accumulated Other Comprehensive Income on the Consolidated Condensed Balance Sheets as of October 31, 2016.

The average yield on the Government debt securities classified as available-for-sale at October 31, 2016 was 0.78%.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands)	2016		2015			2016		2015
Dividend income	$	49	$	38		$	73	$	80
Interest income		2		-			2		-
Capital loss		-		(15	)		-		(15	)
Other		10		8			19		17
Total income from securities transactions, net	$	61	$	31		$	94	$	82

Investment in Unconsolidated Entities:

Equity Method Investment:

As of October 31, 2016 and April 30, 2016, the Company's investment in EAM Trust, on the Consolidated Condensed Balance Sheets was $58,167,000 and $57,942,000, respectively.

The value of VLI’s investment in EAM at October 31, 2016 and April 30, 2016 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 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 2017 or 2016.

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

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands) (unaudited)	2016		2015			2016		2015
Investment management fees earned from the Value Line Funds, net of fee waivers	$	3,680	$	3,653		$	7,317	$	7,491
12b-1 fees and other fees, net of fee waivers	$	1,476	$	1,442		$	2,919	$	2,838
Other income (loss)	$	16	$	(18	)	$	79	$	(27	)
Investment management fee waivers (1)	$	95	$	48		$	176	$	95
12b-1 fee waivers (1)	$	232	$	242		$	465	$	613
Value Line’s non-voting revenues interest	$	1,799	$	1,819		$	3,586	$	3,721
EAM's net income (2)	$	266	$	242		$	524	$	522

(1) During fiscal 2017 and 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds.

(2) 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.

	October 31,			April 30,
($ in thousands)	2016			2016
	(unaudited)
EAM's total assets	$	60,789		$	60,292
EAM's total liabilities (1)		(3,403	)		(3,021	)
EAM's total equity	$	57,386		$	57,271

(1) At October 31, 2016 and April 30, 2016, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,918,000 and $1,750,000, respectively.

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Note 3 - Variable Interest Entity

6 Months Ended

Oct. 31, 2016

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 October 31, 2016 (unaudited)	$	60,789	$	58,167	$	-	$	58,167
As of April 30, 2016	$	60,292	$	57,942	$	-	$	57,942

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

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Note 4 - Supplementary Cash Flow Information

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

Note 4 - Supplementary Cash Flow Information:

	Six Months Ended October 31,
($ in thousands)	2016		2015
State and local income tax payments	$	422	$	153
Federal income tax payments to the Parent	$	3,218	$	1,990

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Note 5 - Employees' Profit Sharing and Savings Plan

6 Months Ended

Oct. 31, 2016

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 six months ended October 31, 2016 and October 31, 2015, the estimated profit sharing plan contributions, which are included as expenses in salaries and employee benefits in the Consolidated Condensed Statements of Income, were $214,000 and 200,000, respectively.

 

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Note 6 - Comprehensive Income

6 Months Ended

Oct. 31, 2016

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.

Beginning in fiscal 2013, the Company adopted the provisions of Accounting Standards Update 2011-05 to reflect comprehensive income in two statements which include the components of net income and total net income in the first statement, immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income and a total for comprehensive income.

As of October 31, 2016 and October 31, 2015, 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 six months ended October 31, 2016 are as follows:

($ in thousands)	Amount Before Tax			Tax Benefit		Amount Net of Tax
Change in unrealized losses on securities	$	(216	)	$	76	$	(140	)
	$	(216	)	$	76	$	(140	)

The components of comprehensive income included in the Consolidated Condensed Statements of Income and Changes in Shareholders' Equity for the six months ended October 31, 2015 are as follows:

($ in thousands)	Amount Before Tax			Tax Provision/(Benefit)			Amount Net of Tax
Change in unrealized gains on securities	$	(55	)	$	19		$	(36	)
Add: Losses realized in net income		15			(5	)		10
	$	(40	)	$	14		$	(26	)

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Note 7 - Related Party Transactions

6 Months Ended

Oct. 31, 2016

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 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 October 31, 2016, were $2.24 billion, 2.3% below total assets of $2.29 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2015.

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. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was 49.45% and 49.14% during the first and second quarters of fiscal 2017, respectively, and 50.05% and 50.16% during the first quarter and second quarters of fiscal 2016, respectively.

 

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

	Three Months Ended October 31,				Six Months Ended October 31,
($ in thousands)	2016		2015		2016		2015
Non-voting revenues interest in EAM	$	1,799	$	1,819	$	3,586	$	3,721
Non-voting profits interest in EAM		133		121		262		261
	$	1,932	$	1,940	$	3,848	$	3,982

At October 31, 2016, the Company's investment in EAM includes a receivable of $1,918,000 representing the quarterly distribution of 100% of the non-voting revenues share and 90% of its non-voting profits share.

Transactions with Parent:

During the six months ended October 31, 2016 and October 31, 2015, the Company was reimbursed $185,000 and $65,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables from the Parent on the Consolidated Condensed Balance Sheets at October 31, 2016 and April 30, 2016.

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 made federal tax payments of $3,218,000 to the Parent during the six months ended October 31, 2016. The Company made federal tax payments of $1,990,000 to the Parent during the six months ended October 31, 2015.

From time to time, the Parent has purchased additional shares of common stock of the Company in the market when and as the Parent has determined it to be appropriate. The Parent may make additional purchases of common stock of the Company from time to time in the future. As of October 31, 2016, the Parent owned 88.87% of the outstanding shares of common stock of the Company.

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Note 8 - Federal, State and Local Income Taxes

6 Months Ended

Oct. 31, 2016

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 October 31,						Six Months Ended October 31,
($ in thousands)	2016			2015			2016			2015
Current tax expense:
Federal	$	996		$	986		$	4,573		$	2,010
State and local		15			55			340			127
Current tax expense		1,011			1,041			4,913			2,137
Deferred tax expense (benefit):
Federal		(399	)		(166	)		(588	)		(178	)
State and local		(77	)		(70	)		(62	)		(221	)
Deferred tax expense (benefit):		(476	)		(236	)		(650	)		(399	)
Income tax provision	$	535		$	805		$	4,263		$	1,738

Deferred income taxes 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 deferred tax asset and deferred tax liability are as follows:

	October 31,		April 30,
($ in thousands)	2016		2016
Federal tax benefit (liability):
Unrealized gains on securities available-for-sale	$	8	$	(68	)
Capital loss carryforward		-		86
Operating lease deferred obligation		23		58
Deferred professional fees		17		77
Deferred charges		162		250
Total federal tax benefit		210		403
State and local tax benefits:
Other		22		29
Total state and local tax benefits		22		29
Deferred tax asset, short term	$	232	$	432

	October 31,			April 30,
($ in thousands)	2016			2016
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	17,732		$	17,679
Deferred non-cash post-employment compensation		(619	)		(619	)
Depreciation and amortization		1,018			1,812
Other		(77	)		8
Total federal tax liability		18,054			18,880
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,434			1,704
Deferred non-cash post-employment compensation		(50	)		(60	)
Depreciation and amortization		82			174
Other		(1	)		(15	)
Total state and local tax liabilities		1,465			1,803
Deferred tax liability, long term	$	19,519		$	20,683

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 overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2016 and October 31, 2015 were 35.23% and 29.71%, respectively. The Company's annual effective tax rate will change due to a number of factors 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 tax laws, new interpretations of existing tax laws and rulings and settlements with tax authorities. The fluctuation in the effective income tax rate during fiscal 2017 is primarily attributable to the attribution of 100% of the gain on the sale of the Company's operating facility to one tax jurisdiction partially offset by the effect of the scheduled reduction in the allocation factors on the state and local current and deferred tax liability (primarily associated with the gain on deconsolidation of EAM), and the dividend received deduction.

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:

	Six months Ended October 31,
	2016			2015
U.S. statutory federal tax rate		35.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		1.15	%		-2.48	%
Effect of dividends received deductions		-0.15	%		-0.32	%
Domestic production tax credit		0.00	%		-0.62	%
Other, net		-0.77	%		-1.87	%
Effective income tax rate		35.23	%		29.71	%

The Company believes that, as of October 31, 2016, there were no material uncertain tax positions that would require disclosure to GAAP.

The Company is included in the consolidated federal income tax return of the Parent, and beginning with the fiscal year ended April 30, 2017, will file combined income tax returns with the Parent on a unitary basis in certain states as a result of changes in state tax regulations. The Company does not anticipate any significant tax implications from the change to unitary state tax filing.

The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended 2013 through 2016, are subject to examination by the tax authorities, generally for three years after they are filed with the tax authorities. The Company favorably concluded certain tax audits during the third quarter of fiscal 2016 that provided the recognition of tax benefits resulting from a favorable outcome. The Company is presently engaged in a federal tax audit for the fiscal year ended April 30, 2015 and a state tax audit for that period, but does not expect them to have a material effect on the financial statements.

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Note 9 - Property and Equipment

6 Months Ended

Oct. 31, 2016

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:

	October 31,			April 30,
($ in thousands)	2016			2016
Land	$	-		$	726
Building and leasehold improvements		388			5,190
Furniture and equipment		3,655			4,156
		4,043			10,072
Accumulated depreciation and amortization		(3,387	)		(6,451	)
Total property and equipment, net	$	656		$	3,621

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

6 Months Ended

Oct. 31, 2016

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 obtaining software for internal use and amortize those costs over the software's estimated useful life in a systematic and rational manner.

The Company capitalized $360,000 and $931,000 related to the development of software for internal use for the six months ended October 31, 2016 and 2015, respectively. Capitalized software includes $215,000 and $675,000 of internal costs to develop software and $145,000 and $256,000 of third party programmers' costs for the six months ended October 31, 2016, and October 31, 2015, respectively. Such costs are capitalized and amortized over the expected useful life of the asset which is 3 to 5 years. Total amortization expenses for the six months ended October 31, 2016 and October 31, 2015, were $2,621,000 and $1,289,000, respectively.

An increase of $1,332,000 was attributable to additional amortization of internally developed software costs related to the product production cycle that is expected to be upgraded during fiscal 2018.

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Note 11 - Treasury Stock and Repurchase Program

6 Months Ended

Oct. 31, 2016

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, 2016 (1)(2)		243,411	$	3,040	$	12.49	$	1,350
Purchases effected in open market during the quarters ended:
July 31, 2016 (2)		32,714	$	535	$	12.95	$	815
October 31, 2016 (2)		8,747	$	146	$	16.68	$	669
Balance as of October 31, 2016		284,872	$	3,721	$	13.06	$	669

(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

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

Commitments Disclosure [Text Block]

Note 12 - Lease Commitments:

The Company leases 44,493 square feet of office space at 485 Lexington Avenue in New York, NY. Base rent under the Sublease is $1,468,269 per annum, subject to customary concessions in the Company’s favor and pass-through of certain increases in operating costs and real estate taxes. The Company provided a security deposit in cash in the amount of $489,423, which was partially returned over the course of the sublease term. The Company received $122,355 each year from Sublandlord as of March 2015 and March 2016. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The Company recorded a deferred charge on its Consolidated Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease due to free rent for the first six months of the sublease. The lease expires in February 2017.

On February 29, 2016, the Company’s subsidiary Value Line Distribution Center (“VLDC”) and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC has leased approximately 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Building” or “Premises”) 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, in advance during fiscal 2017 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 Premises as well as utilities supplied to the Premises.

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. (“Value Line” or “Company”) and ABM Industries, Incorporated. Pursuant to the agreement Value Line will lease 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 will be $1,126,000 per annum during the first twelve months 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 ("LOC") in the amount of $469,000, which is scheduled to be reduced to $305,000 on September 30, 2021 and fully refunded after the sublease ends. This Building will become 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 will provide for a significant decrease (23% initially) in the Company’s annual rental expenditure due to free rent for the first six months of the sublease.

Sublandlord will provide Value Line an allowance of $417,000 which is expected to be applied against the Company’s costs and expenses related to the relocation to the new office facility or applied as additional free rent.

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 space, with remaining terms of one year or more, are as follows:

Fiscal Years Ended April 30,	($ in thousands)
2018		1,242
2019		1,366
2020		1,399
2021		1,432
2022 and thereafter		10,002
	$	15,441

For the six months ended October 31, 2016 and 2015, rental expenses were $730,000 and $634,000, respectively.

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Note 13 - Restricted Cash and Deposits

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

Restricted Assets Disclosure [Text Block]

Note 13 - Restricted Cash and Deposits:

The Restricted Money Market Investment included in noncurrent assets on the Consolidated Condensed Balance Sheet, amounting to $469,000 at October 31, 2016, represents invested cash securing a letter of credit ("LOC") in the amount of $469,000 issued by a financial institution on behalf of Value Line, Inc. to the sublandlord as a security deposit for the Company's new leased corporate office facility.

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Note 14 - Gain on Sale of Operating Facility

6 Months Ended

Oct. 31, 2016

Notes to Financial Statements

Gain on Sale of Operating Facility [Text Block]

Note 14 - Gain on Sale of Operating Facility:

On July 29, 2016, Value Line closed the sale of its 85,000 sq ft distribution, fulfillment and warehouse operating facility located at 125 East Union Avenue, East Rutherford, NJ, received net proceeds of $11,555,000 and reported an increment to net profits after tax during the first quarter of fiscal 2017 of approximately $5.28 million. The distribution, fulfillment and warehouse operations were relocated to an alternative 24,000 sq ft leased facility (See Note 12).

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Significant Accounting Policies (Policies)

6 Months Ended

Oct. 31, 2016

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 deconsolidation of the investment management related affiliates (the "Restructuring Transaction") 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, subscriptions to Value Line periodicals and related publications are 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 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 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 [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 ES's 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”). 100% of the Revenues Interest and not less than 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. The Company's Revenues Interest in EAM excludes participation in the service and distribution fees of EAM's subsidiary ES. The Company reflects its non-voting revenues and non-voting profits interests in EAM as non-operating income under the equity method of accounting. 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.

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 equity securities including Exchange traded funds ("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. 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 Securities and Exchange Act.

The Fair Value Measurements Topic of FASB's ASC 820 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 October 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	5,321	$	-	$	-	$	5,321
Securities available-for-sale		14,509		-		-		14,509
	$	19,830	$	-	$	-	$	19,830

	As of April 30, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	12,037	$	-	$	-	$	12,037
Securities available-for-sale		3,637		-		-		3,637
	$	15,674	$	-	$	-	$	15,674

The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2016 and April 30, 2016, 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 Condensed 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 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 October 31, 2016, 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 October 31, 2016 and April 30, 2016, cash equivalents included $5,321,000 and $12,037,000, respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.

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

6 Months Ended

Oct. 31, 2016

Notes Tables

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

	As of October 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	5,321	$	-	$	-	$	5,321
Securities available-for-sale		14,509		-		-		14,509
	$	19,830	$	-	$	-	$	19,830

	As of April 30, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	12,037	$	-	$	-	$	12,037
Securities available-for-sale		3,637		-		-		3,637
	$	15,674	$	-	$	-	$	15,674

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Note 2 - Investments (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

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

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	8,399	$	56	$	(83	)	$	8,372

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
ETFs - equities	$	3,445	$	194	$	(2	)	$	3,637

	Amortized		Gross Unrealized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Holding Losses		Fair Value
Maturity
Due within 1 year	$	3,395	$	1	$	-	$	3,396
Due 1 year through 5 years		2,740		1		-		2,741
Total investment in government debt securities	$	6,135	$	2	$	-	$	6,137

Investment Income [Table Text Block]

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands)	2016		2015			2016		2015
Dividend income	$	49	$	38		$	73	$	80
Interest income		2		-			2		-
Capital loss		-		(15	)		-		(15	)
Other		10		8			19		17
Total income from securities transactions, net	$	61	$	31		$	94	$	82

Investment Holdings, Other than Securities [Table Text Block]

	Three Months Ended October 31,					Six Months Ended October 31,
($ in thousands) (unaudited)	2016		2015			2016		2015
Investment management fees earned from the Value Line Funds, net of fee waivers	$	3,680	$	3,653		$	7,317	$	7,491
12b-1 fees and other fees, net of fee waivers	$	1,476	$	1,442		$	2,919	$	2,838
Other income (loss)	$	16	$	(18	)	$	79	$	(27	)
Investment management fee waivers (1)	$	95	$	48		$	176	$	95
12b-1 fee waivers (1)	$	232	$	242		$	465	$	613
Value Line’s non-voting revenues interest	$	1,799	$	1,819		$	3,586	$	3,721
EAM's net income (2)	$	266	$	242		$	524	$	522

Summary Investment Holdings [Table Text Block]

	October 31,			April 30,
($ in thousands)	2016			2016
	(unaudited)
EAM's total assets	$	60,789		$	60,292
EAM's total liabilities (1)		(3,403	)		(3,021	)
EAM's total equity	$	57,386		$	57,271

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Note 3 - Variable Interest Entity (Tables)

6 Months Ended

Oct. 31, 2016

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 October 31, 2016 (unaudited)	$	60,789	$	58,167	$	-	$	58,167
As of April 30, 2016	$	60,292	$	57,942	$	-	$	57,942

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Note 4 - Supplementary Cash Flow Information (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

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

	Six Months Ended October 31,
($ in thousands)	2016		2015
State and local income tax payments	$	422	$	153
Federal income tax payments to the Parent	$	3,218	$	1,990

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Note 6 - Comprehensive Income (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

Comprehensive Income (Loss) [Table Text Block]

($ in thousands)	Amount Before Tax			Tax Benefit		Amount Net of Tax
Change in unrealized losses on securities	$	(216	)	$	76	$	(140	)
	$	(216	)	$	76	$	(140	)

($ in thousands)	Amount Before Tax			Tax Provision/(Benefit)			Amount Net of Tax
Change in unrealized gains on securities	$	(55	)	$	19		$	(36	)
Add: Losses realized in net income		15			(5	)		10
	$	(40	)	$	14		$	(26	)

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Note 7 - Related Party Transactions (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

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

	Three Months Ended October 31,				Six Months Ended October 31,
($ in thousands)	2016		2015		2016		2015
Non-voting revenues interest in EAM	$	1,799	$	1,819	$	3,586	$	3,721
Non-voting profits interest in EAM		133		121		262		261
	$	1,932	$	1,940	$	3,848	$	3,982

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

6 Months Ended

Oct. 31, 2016

Notes Tables

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

	Three Months Ended October 31,						Six Months Ended October 31,
($ in thousands)	2016			2015			2016			2015
Current tax expense:
Federal	$	996		$	986		$	4,573		$	2,010
State and local		15			55			340			127
Current tax expense		1,011			1,041			4,913			2,137
Deferred tax expense (benefit):
Federal		(399	)		(166	)		(588	)		(178	)
State and local		(77	)		(70	)		(62	)		(221	)
Deferred tax expense (benefit):		(476	)		(236	)		(650	)		(399	)
Income tax provision	$	535		$	805		$	4,263		$	1,738

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

	October 31,		April 30,
($ in thousands)	2016		2016
Federal tax benefit (liability):
Unrealized gains on securities available-for-sale	$	8	$	(68	)
Capital loss carryforward		-		86
Operating lease deferred obligation		23		58
Deferred professional fees		17		77
Deferred charges		162		250
Total federal tax benefit		210		403
State and local tax benefits:
Other		22		29
Total state and local tax benefits		22		29
Deferred tax asset, short term	$	232	$	432

	October 31,			April 30,
($ in thousands)	2016			2016
Federal tax liability (benefit):
Deferred gain on deconsolidation of EAM	$	17,732		$	17,679
Deferred non-cash post-employment compensation		(619	)		(619	)
Depreciation and amortization		1,018			1,812
Other		(77	)		8
Total federal tax liability		18,054			18,880
State and local tax liabilities (benefits):
Deferred gain on deconsolidation of EAM		1,434			1,704
Deferred non-cash post-employment compensation		(50	)		(60	)
Depreciation and amortization		82			174
Other		(1	)		(15	)
Total state and local tax liabilities		1,465			1,803
Deferred tax liability, long term	$	19,519		$	20,683

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

	Six months Ended October 31,
	2016			2015
U.S. statutory federal tax rate		35.00	%		35.00	%
Increase (decrease) in tax rate from:
State and local income taxes, net of federal income tax benefit		1.15	%		-2.48	%
Effect of dividends received deductions		-0.15	%		-0.32	%
Domestic production tax credit		0.00	%		-0.62	%
Other, net		-0.77	%		-1.87	%
Effective income tax rate		35.23	%		29.71	%

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Note 9 - Property and Equipment (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

Property, Plant and Equipment [Table Text Block]

	October 31,			April 30,
($ in thousands)	2016			2016
Land	$	-		$	726
Building and leasehold improvements		388			5,190
Furniture and equipment		3,655			4,156
		4,043			10,072
Accumulated depreciation and amortization		(3,387	)		(6,451	)
Total property and equipment, net	$	656		$	3,621

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Note 11 - Treasury Stock and Repurchase Program (Tables)

6 Months Ended

Oct. 31, 2016

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, 2016 (1)(2)		243,411	$	3,040	$	12.49	$	1,350
Purchases effected in open market during the quarters ended:
July 31, 2016 (2)		32,714	$	535	$	12.95	$	815
October 31, 2016 (2)		8,747	$	146	$	16.68	$	669
Balance as of October 31, 2016		284,872	$	3,721	$	13.06	$	669

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Note 12 - Lease Commitments (Tables)

6 Months Ended

Oct. 31, 2016

Notes Tables

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

Fiscal Years Ended April 30,	($ in thousands)
2018		1,242
2019		1,366
2020		1,399
2021		1,432
2022 and thereafter		10,002
	$	15,441

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Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)	6 Months Ended
	Oct. 31, 2016	Apr. 30, 2016
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%
EAM Trust [Member]
Non Voting Profits Interest Percent	50.00%
Percent of Revenue Interest	100.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement	90.00%
Percent of Revenue Interest	100.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement	90.00%
Money Market Funds, at Carrying Value	$ 5,321,000	$ 12,037,000

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Note 1 - Organization and Summary of Significant Accounting Policies - Schedule of Fair Value Measurements of Investments (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Apr. 30, 2016
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash equivalents	$ 5,321	$ 12,037
Fair Value, Inputs, Level 1 [Member]
Securities available-for-sale	14,509	3,637
	19,830	15,674
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Cash equivalents
Fair Value, Inputs, Level 2 [Member]
Securities available-for-sale
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Cash equivalents
Fair Value, Inputs, Level 3 [Member]
Securities available-for-sale
Money Market Funds [Member]
Cash equivalents	5,321	12,037
Securities available-for-sale	14,509	3,637
	$ 19,830	$ 15,674

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Note 2 - Investments (Details Textual) - USD ($)		6 Months Ended
		Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016
EAM Trust [Member]
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 Investments	[1]	$ 58,167,000		57,942,000
Percentage of Non Voting Profit Interest		50.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement		90.00%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable				1,750,000
Loss From Sale of Equity Securities Reclassified into Consolidated Condensed Statement of Income [Member]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax			$ (15,000)
Equity Securities [Member]
Deferred Taxes on Unrealized Gains on Securities		$ 77,000	19,000
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax		2,000
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
AOCI Tax, Attributable to Parent		1,000
Proceeds from Sale of Available-for-sale Securities, Equity		0	8,684,000
Available-for-sale Securities, Debt Securities		6,137,000		0
Available-for-sale Securities, Amortized Cost Basis		8,399,000		3,445,000
Available-for-sale Securities, Equity Securities		8,372,000		3,637,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax			15,000
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent		(218,000)	(40,000)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax		(216,000)	$ (55,000)
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax		27,000		192,000
AOCI Tax, Attributable to Parent		$ 9,000		67,000
Available-for-sale Securities, Debt Securities, Average Yield		0.78%
Equity Method Investments		$ 58,167,000		$ 57,942,000
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement		90.00%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable		$ 1,918,000

[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 ($)	Oct. 31, 2016	Apr. 30, 2016
Exchange Traded Funds [Member]
Cost	$ 8,399,000	$ 3,445,000
Gross Unrealized Gains	56,000	194,000
Gross Unrealized Losses	(83,000)	(2,000)
Available-for-sale Securities, Equity Securities	8,372,000	3,637,000
Available-for-sale Securities, Equity Securities	8,372,000	3,637,000
Amortized Cost	3,395,000
Gross Unrealized Gains	1,000
Gross Unrealized Losses
Fair Value	3,396,000
Amortized Cost	2,740,000
Gross Unrealized Gains	1,000
Gross Unrealized Losses
Fair Value	2,741,000
Amortized Cost	6,135,000
Gross Unrealized Gains	2,000
Gross Unrealized Losses
Available-for-sale Securities, Debt Securities	$ 6,137,000	$ 0

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Note 2 - Investments - Schedule of Income from Securities Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Dividend income	$ 49	$ 38	$ 73	$ 80
Interest income	2		2
Capital loss		15		15
Other	10	8	19	17
Total income from securities transactions, net	$ 61	$ 31	$ 94	$ 82

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Note 2 - Investments - Schedule of Components of EAM's Investment Management Operations (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
EAM Trust [Member]
Investment management fees earned from the Value Line Funds, net of fee waivers		$ 3,680	$ 3,653	$ 7,317	$ 7,491
12b-1 fees and other fees, net of fee waivers		1,476	1,442	2,919	2,838
Other income (loss)		16	(18)	79	(27)
Investment management fee waivers (1)	[1]	95	48	176	95
12b-1 fee waivers (1)	[1]	232	242	465	613
Value Line’s non-voting revenues interest		1,799	1,819	3,586	3,721
EAM's net income (2)	[2]	266	242	524	522
Value Line’s non-voting revenues interest		1,799	1,819	3,586	3,721
EAM's net income (2)		$ 1,480	$ 1,992	$ 7,838	$ 4,111

[1] During fiscal 2017 and 2016 investment management fee waivers primarily related to the Value Line Core Bond Fund and the 12b-1 fee waivers related to four of the Value Line Mutual Funds.

[2] 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 - Schedule of Assets and Liabilities (Details) - EAM Trust [Member] - USD ($) $ in Thousands		Oct. 31, 2016	Apr. 30, 2016
EAM's total assets		$ 60,789	$ 60,292
EAM's total liabilities (1)	[1]	(3,403)	(3,021)
EAM's total equity		$ 57,386	$ 57,271

[1] At October 31, 2016 and April 30, 2016, EAM's total liabilities included a payable to VLI for its accrued non-voting revenues, interest and the 90% distributable share of its non-voting profits interest of $1,918,000 and $1,750,000, respectively.

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Note 3 - Variable Interest Entity (Details Textual)	6 Months Ended
	Oct. 31, 2016
EAM Trust [Member]
Non Voting Profits Interest Percent	50.00%

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Note 3 - Variable Interest Entity - Schedule of Total Assets, the Maximum Exposure to Loss, Value of the Assets and Liabilities in EAM (Details) - USD ($)		Oct. 31, 2016	Apr. 30, 2016
EAM Trust [Member]
VIE Assets		$ 60,789,000	$ 60,292,000
Equity Method Investments	[1]	58,167,000	57,942,000
Value Line Liabilities
Value Line Maximum Exposure to Loss		58,167,000	57,942,000
Equity Method Investments		$ 58,167,000	$ 57,942,000

[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 ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
State and local income tax payments	$ 422,000	$ 153,000
Federal income tax payments to the Parent	$ 3,218,000	$ 1,990,000

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Note 5 - Employees' Profit Sharing and Savings Plan (Details Textual) - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Deferred Compensation Arrangement with Individual, Employer Contribution	$ 214,000	$ 200,000

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Note 6 - Comprehensive Income - Components of Comprehensive Income That Are Included in Consolidated Statement of Changes in Shareholders' Equity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Change in unrealized gains on securities, before tax			$ (216,000)	$ (55,000)
Change in unrealized gains on securities, tax			76,000	19,000
Change in unrealized gains on securities, net of tax			(140,000)	(36,000)
Other comprehensive income (loss), available-for-sale securities adjustment, before tax			(218,000)	(40,000)
Other comprehensive income (loss), available-for-sale securities, tax (expense)/(benefit)			76,000	14,000
Other comprehensive income (loss), available-for-sale securities adjustment, net of tax	$ (294,000)	$ 66,000	$ (140,000)	(26,000)
Add: Losses realized in net income, before tax				15,000
Add: Losses realized in net income, tax				(5,000)
Add: Losses realized in net income, net of tax				$ 10,000

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Note 7 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended				6 Months Ended
	Oct. 31, 2016	Jul. 31, 2016	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016
Value Line Inc [Member]
Accounts Receivable, Related Parties	$ 0				$ 0		$ 0
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%
EAM Trust [Member]
Assets under Management, Carrying Amount	$ 2,240,000,000		$ 2,290,000,000		$ 2,240,000,000	$ 2,290,000,000
Percentage of Assets Increased (Decreased) in Unconsolidated Entities					2.30%
Non Voting Profits Interest Percent					50.00%
NonVotingProfitsInterest, Remaining Percentage					50.00%
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement					90.00%
Percentage of Non Voting Revenues Interest in Unconsolidated Entity	49.14%	49.45%	50.16%	50.05%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable							$ 1,750,000
Percent of Revenue Interest					100.00%
Value Line Inc [Member]
Reimbursement Revenue					$ 185,000	65,000
Percentage of Non Voting Profits Interests Due from Ex Subsidiary Payable to Parent under Agreement					90.00%
Accrued Non Voting Revenues and Non Voting Profits Interests Payable	$ 1,918,000				$ 1,918,000
Percent of Revenue Interest					100.00%
Federal Income Tax Payments to Parent					$ 3,218,000	$ 1,990,000
Ownership Percentage By Parent	88.87%				88.87%

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Note 7 - Related Party Transactions - Schedule of Non Voting Revenues Interest and Non Voting Profits Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Value Line’s non-voting revenues interest	$ 1,799	$ 1,819	$ 3,586	$ 3,721
Non-voting profits interest in EAM	133	121	262	261
	$ 1,932	$ 1,940	$ 3,848	$ 3,982

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Note 8 - Federal, State and Local Income Taxes (Details Textual)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Effective Income Tax Rate Reconciliation, Percent	35.23%	29.71%

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Note 8 - Federal, State and Local Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Current tax expense:
Federal	$ 996	$ 986	$ 4,573	$ 2,010
State and local	15	55	340	127
Current tax expense	1,011	1,041	4,913	2,137
Deferred tax expense (benefit):
Federal	(399)	(166)	(588)	(178)
State and local	(77)	(70)	(62)	(221)
Deferred tax expense (benefit):	(476)	(236)	(650)	(399)
Income tax provision	$ 535	$ 805	$ 4,263	$ 1,738

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Note 8 - Federal, State and Local Income Taxes - Schedule of Components of Deferred Tax Asset and Deferred Tax Liability (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Apr. 30, 2016
Domestic Tax Authority [Member]
Unrealized gains on securities available-for-sale	$ 8	$ (68)
Capital loss carryforward		86
Operating lease deferred obligation	23	58
Deferred professional fees	17	77
Deferred charges	162	250
Total federal tax benefit	210	403
Deferred gain on deconsolidation of EAM	17,732	17,679
Deferred non-cash post-employment compensation	(619)	(619)
Depreciation and amortization	1,018	1,812
Other	(77)	8
Total federal tax liability	18,054	18,880
Other	(77)	8
Deferred tax liability, long term	18,054	18,880
State and Local Jurisdiction [Member]
Total federal tax benefit	22	29
Other	22	29
Deferred gain on deconsolidation of EAM	1,434	1,704
Deferred non-cash post-employment compensation	(50)	(60)
Depreciation and amortization	82	174
Other	(1)	(15)
Total federal tax liability	1,465	1,803
Other	(1)	(15)
Deferred tax liability, long term	1,465	1,803
Total federal tax benefit	232	432
Total federal tax liability	19,519	20,683
Deferred tax liability, long term	$ 19,519	$ 20,683

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Note 8 - Federal, State and Local Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
U.S. statutory federal tax rate	35.00%	35.00%
State and local income taxes, net of federal income tax benefit	1.15%	(2.48%)
Effect of dividends received deductions	(0.15%)	(0.32%)
Domestic production tax credit	0.00%	(0.62%)
Other, net	(0.77%)	(1.87%)
Effective income tax rate	35.23%	29.71%

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Note 9 - Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Apr. 30, 2016
Land		$ 726
Building and leasehold improvements	388	5,190
Furniture and equipment	3,655	4,156
	4,043	10,072
Accumulated depreciation and amortization	(3,387)	(6,451)
Total property and equipment, net	$ 656	$ 3,621

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Note 10 - Accounting for the Costs of Computer Software Developed for Internal Use (Details Textual) - USD ($)	6 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Capitalized Computer Software, Additions	$ 360,000	$ 931,000
Internal Costs to Develop Software	215,000	675,000
Third Party Programmers Costs	145,000	256,000
Capitalized Computer Software, Amortization	2,621,000	$ 1,289,000
Capitalized Computer Software, Increase in Amortization	$ 1,332,000

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Note 11 - Treasury Stock and Repurchase Program (Details Textual) - USD ($)		1 Months Ended		3 Months Ended				6 Months Ended
		Jan. 30, 2012	Jan. 31, 2011	Oct. 31, 2016		Jul. 31, 2016		Oct. 31, 2016	Oct. 31, 2015	Sep. 19, 2012
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
Treasury Stock, Shares, Acquired	[1]			8,747		32,714
Treasury Stock, Value, Acquired, Cost Method				$ 146,000	[1]	$ 535,000	[1]	$ 681,000	$ 548,000

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

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Note 11 - Treasury Stock and Repurchase Program - Schedule of Treasury Stock, at Cost (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
		Oct. 31, 2016		Jul. 31, 2016		Oct. 31, 2016	Oct. 31, 2015	Apr. 30, 2016	[1]
Balance as of April 30, 2016 (1)(2) (in shares)	[1],[2]			243,411		243,411
Balance as of April 30, 2016 (1)(2)	[1],[2]			$ 3,040		$ 3,040
Balance as of April 30, 2016 (1)(2) (in dollars per share)	[1],[2]			$ 12.49		$ 12.49
Balance as of April 30, 2016 (1)(2)	[2]	$ 669		$ 815		$ 669		$ 1,350
Treasury Stock, Shares, Acquired	[2]	8,747		32,714
Treasury Stock, Value, Acquired, Cost Method		$ 146	[2]	$ 535	[2]	$ 681	$ 548
July 31, 2016 (2) (in dollars per share)		$ 16.68		$ 12.95	[2]
Balance as of October 31, 2016 (in shares)		284,872				284,872
Balance as of October 31, 2016		$ 3,721				$ 3,721
Balance as of October 31, 2016 (in dollars per share)		$ 13.06				$ 13.06

[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)			6 Months Ended
	Nov. 30, 2016 USD ($) ft²	Feb. 29, 2016 USD ($) ft²	Oct. 31, 2016 USD ($) ft²	Oct. 31, 2015 USD ($)	Sep. 30, 2021 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Aug. 16, 2013 USD ($)
Citibank, N.A. (The "Sublandlord") [Member]
Operating Lease Future Minimum Sublease Rental						$ 122,355	$ 122,355
Area of Real Estate Property | ft²			44,493
Operating Leases, Annual Base Rent			$ 1,468,269
Security Deposit								$ 489,423
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
Seagis Property Group LP (the "Landlord") [Member]
Area of Real Estate Property | ft²		24,000
Sublease to American Building Maintenance Industries, Incorporated [Member] | Subsequent Event [Member]
Area of Real Estate Property | ft²	24,726
Operating Leases, Annual Base Rent	$ 1,126,000
Security Deposit	$ 469,000
Base Rent Increase, Percent	2.25%
Annual Rental Expenditure, Initial, Decrease, Percentage	23.00%
Lessee Leasing Arrangements, Allowance	$ 417,000
Sublease to American Building Maintenance Industries, Incorporated [Member] | Scenario, Forecast [Member]
Security Deposit					$ 305,000
Operating Leases, Rent Expense			$ 730,000	$ 634,000

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Note 12 - Lease Commitments - Schedule of Future Minimum Payments (Details) $ in Thousands	Oct. 31, 2016 USD ($)
2018	$ 1,242
2019	1,366
2020	1,399
2021	1,432
2022 and thereafter	10,002
	$ 15,441

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Note 13 - Restricted Cash and Deposits (Details Textual) - USD ($)	Oct. 31, 2016	Apr. 30, 2016
Cash Securing a Letter of Credit Issued as Security Deposit [Member]
Security Deposit	$ 469,000
Restricted Investments, Noncurrent	$ 469,000

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Note 14 - Gain on Sale of Operating Facility (Details Textual)		3 Months Ended	6 Months Ended
	Jul. 29, 2016 USD ($) ft²	Jul. 31, 2016 USD ($)	Oct. 31, 2016 USD ($)	Oct. 31, 2015 USD ($)	Feb. 29, 2016 ft²
Fulfillment and Warehouse Facility [Member]
Area of Real Estate Property | ft²	85,000
Proceeds from Sale of Property, Plant, and Equipment	$ 11,555,000
Gain Loss on Disposition of Assets, Net of Tax		$ 5,280,000
Seagis Property Group LP (the "Landlord") [Member]
Area of Real Estate Property | ft²					24,000
Proceeds from Sale of Property, Plant, and Equipment			$ 11,555,000