Note

- Investments:

Securities Available-for-Sale:

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

320,

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

twelve

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

Equity Securities:

Equity securities classified as available-for-sale on the Consolidated 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

April 30, 2019

and

April 30, 2018,

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

100

ETF (FVL), Proshares Trust S&P

500

Dividend Aristocrats ETF (NOBL) and Ishares Select Dividend ETF (DVY) was

$8,541,000

and

$8,385,000,

respectively, and the fair value was

$10,622,000

and

$9,379,000,

respectively.

Proceeds from sales of equity securities classified as available-for-sale were

and

$152,000

during the

twelve

months ended

April 30, 2019

and

April 30, 2018,

respectively. Capital gain distributions of

$152,000

were reclassified from Accumulated Other Comprehensive Income in the Consolidated Balance Sheet to the Consolidated Statement of Income during the

twelve

months ended

April 30, 2018.

There were

capital gain distributions in fiscal

2019.

There were

gains or losses on sales of equity securities classified as available-for-sale during fiscal

2019

or fiscal

2018.

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

$1,087,000,

net of deferred taxes of

$228,000

was included in Shareholders' Equity at

April 30, 2019.

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

$282,000,

net of deferred tax benefit of

$42,000

was included in Shareholders' Equity at

April 30, 2018.

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

April 30, 2019

were as follows:

($ in thousands)		Cost				Gross Unrealized Gains				Fair Value
ETFs - equities		$	8,541			$	2,081			$	10,622

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

April 30, 2018

were as follows:

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

Government Debt Securities (Fixed Income Securities):

Fixed income securities consist of certificates of deposits and securities issued by federal, state and local governments within the United States.

The aggregate cost and fair value at

April 30, 2019

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

	Amortized		Gross Unrealized
($ in thousands)	Historical Cost		Holding Gains		Fair Value
Maturity
Due within 1 year	$	6,913	$	33	$	6,946
Due 1 year through 5 years		4,250		10		4,260
Total investment in government debt securities	$	11,163	$	43	$	11,206

The increase in gross unrealized gains of

$46,000

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

$10,000,

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

April 30, 2019.

The aggregate cost and fair value at

April 30, 2018

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

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

The decrease in gross unrealized losses of

$2,500

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

$1,200,

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

April 30, 2018.

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

April 30, 2019

and

April 30, 2018

was

2.09%

and

1.24%,

respectively.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Fiscal Years Ended April 30,
($ in thousands)	2019		2018		2017
Dividend income	$	257	$	226	$	193
Interest income		201		103		33
Capital gain distributions from ETFs (1)		-		152		39
Other		46		59		47
Total income from securities transactions, net	$	504	$	540	$	312

(

) Capital gain distributions of

$152,000

and

$39,000

were reclassified from Accumulated Other Comprehensive Income in the Consolidated Balance Sheets to the Consolidated Statements of Income in fiscal

2018

and

2017,

respectively.

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

April 30, 2019,

the changes in gross unrealized gains of

$1,133,000,

net of deferred tax expense of

$238,000

were recorded in Accumulated Other Comprehensive Income in the Consolidated Balance Sheets. As of

April 30, 2018,

the changes in gross unrealized gains of

$285,000,

net of deferred tax benefit of

$40,000,

were recorded in Accumulated Other Comprehensive Income in the Consolidated Balance Sheets.

Investment in Unconsolidated Entities:

Equity Method Investment:

As of

April 30, 2019

and

April 30, 2018,

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

$58,625,000

and

$58,233,000,

respectively.

The value of VLI’s investment in EAM at

April 30, 2019

and

April 30, 2018

reflects the fair value of contributed capital of

$55,805,000

at inception, which included

$5,820,000

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

2019

2018.

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

	Fiscal Years Ended April 30,
($ in thousands)	2019		2018		2017
Investment management fees earned from the Value Line Funds, net of waivers shown below	$	16,715	$	15,988	$	14,701
12b-1 fees and other fees, net of waivers shown below	$	6,811	$	6,455	$	5,822
Other income	$	273	$	171	$	205
Investment management fee waivers and reimbursements	$	421	$	487	$	474
12b-1 fee waivers	$	654	$	754	$	923
Value Line’s non-voting revenues interest	$	8,260	$	8,040	$	7,195
EAM's net income (1)	$	2,098	$	1,492	$	1,038

(

) 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.

	Fiscal Years Ended April 30,
($ in thousands)	2019			2018
EAM's total assets	$	60,683		$	60,203
EAM's total liabilities (1)		(3,547	)		(3,128	)
EAM's total equity	$	57,136		$	57,075

(

) At

April 30, 2019

and

2018,

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

$2,420,000

and

$2,113,000,

respectively.