Note

- 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

January

31,

2017

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), Select Utilities Select Sector SPDR ETF (XLU), First Trust Value Line

100

ETF (FVL) and Proshares Trust S&P

500

Dividend (NOBL) was

$8,385,000

and

$3,445,000,

and the fair value was

$8,816,000

and

$3,637,000,

respectively.

During the

nine

months ended

January

31,

2017,

the Company received

$14,000

of proceeds from sales of equity securities with no gain or loss on these sales. During the

nine

months ended

January

31,

2016,

the Company received

$8,789,000

of proceeds from sales of equity securities and reclassified

$15,000

of losses from these sales into Consolidated Condensed Statement of Income. The increase in gross unrealized gains on equity securities classified as available-for-sale of

$238,000,

net of deferred taxes of

$84,000

was included in Shareholders' Equity at

January

31,

2017.

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

$237,000,

net of deferred taxes of

$84,000

was included in Shareholders' Equity at

January

31,

2016.

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

January

31,

2017,

accumulated other comprehensive income included unrealized gain of

$431,000,

net of deferred taxes of

$152,000.

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

January

31,

2017

were as follows:

($ in thousands)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

ETFs - equities	$	8,385	$	431	$	-	$	8,816

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

January

31,

2017

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	$	3,635	$	2	$	-		$	3,637
Due 1 year through 5 years		2,500		-		(8	)		2,492
Total investment in government debt securities	$	6,135	$	2	$	(8	)	$	6,129

There were no fixed income securities at

April

30,

2016.

The increase in gross unrealized losses of

$6,000

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

$2,000,

was included in Accumulated Other Comprehensive Income on the Consolidated Condensed Balance Sheet as of

January

31,

2017.

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

January

31,

2017

was

0.69%.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended January 31,					Nine months ended January 31,
($ in thousands)	2017		2016			2017		2016
Dividend income	$	74	$	31		$	147	$	111
Interest income		4		-			6		-
Capital gain distributions		39		105			39		105
Capital loss		-		-			-		(15	)
Other		15		(3	)		34		14
Total income from securities transactions, net	$	132	$	133		$	226	$	215

Investment in Unconsolidated Entities:

Equity Method Investment:

As of

January

31,

2017

and

April

30,

2016,

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

$58,197,000

and

$57,942,000,

respectively.

The value of VLI’s investment in EAM at

January

31,

2017

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

2016.

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

	Three Months Ended January 31,					Nine months ended January 31,
($ in thousands) (unaudited)	2017		2016			2017		2016
Investment management fees earned from the Value Line Funds, net of fee waivers	$	3,674	$	3,656		$	10,991	$	11,147
12b-1 fees and other fees, net of fee waivers	$	1,438	$	1,440		$	4,357	$	4,278
Other income (loss)	$	57	$	(57	)	$	136	$	(84	)
Investment management fee waivers (1)	$	132	$	48		$	308	$	143
12b-1 fee waivers (1)	$	235	$	235		$	700	$	848
Value Line’s non-voting revenues interest	$	1,803	$	1,825		$	5,389	$	5,546
EAM's net income (2)	$	262	$	188		$	786	$	710

(1)

During fiscal

2017

and

2016

investment management fee waivers primarily related to the Value Line Core Bond Fund and the

12b

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.

	January 31,			April 30,
($ in thousands)	2017			2016
	(unaudited)
EAM's total assets	$	60,354		$	60,292
EAM's total liabilities (1)		(2,910	)		(3,021	)
EAM's total equity	$	57,444		$	57,271

(1)

January

31,

2017

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

$1,921,000

and

$1,750,000,

respectively.