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 Condensed Balance Sheets.

Equity Securities:

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

As of

July 31, 2020

and

April 30, 2020,

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

100

ETF (FVL), ProShares Trust S&P

500

Dividend Aristocrats ETF (NOBL), SPDR S&P

500

ETF (SPY), iShares Select Dividend ETF (DVY), iShares Trust Ishares Preferred & Income Secs ETF (PFF) and First Trust Exchange-Traded Fund III PFD Secs & Income ETF (FPE) was

$15,150,000

and

$12,877,000,

respectively, and the fair value was

$16,611,000

and

$14,125,000,

respectively.

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

three

months ended

July 31, 2020

were

$4,637,000

and the related capital gains of

$783,000

were reclassified from Accumulated Other Comprehensive Income in the Consolidated Condensed Balance Sheet to the Consolidated Condensed Statement of Income. The increase in gross unrealized gains on equity securities classified as available-for-sale of

$212,000,

net of deferred taxes of

$55,000

was included in Shareholders' Equity at

July 31, 2020.

There were

sales or proceeds from sales of equity securities during the

three

months ended

July 31, 2019.

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

$90,000,

net of deferred taxes of

$19,000

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

July 31, 2019.

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

July 31, 2020

and

April 30, 2020,

accumulated other comprehensive income included unrealized gains of

$1,461,000

and

$1,248,000,

net of deferred taxes of

$380,000

and

$324,000,

respectively.

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

July 31, 2020

were as follows:

			Gross Unrealized
($ in thousands)	Cost		Holding Gains		Fair Value
ETFs - equities	$	15,150	$	1,461	$	16,611

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

April 30, 2020

were as follows:

($ in thousands)		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
ETFs - equities		$	12,877			$	1,317			$	(69	)		$	14,125

Government Debt Securities (Fixed Income Securities):

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

July 31, 2020

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	$	13,935	$	127	$	14,062

Total investment in government debt securities	$	13,935	$	127	$	14,062

The aggregate cost and fair value at

April 30, 2020

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	$	14,652	$	177	$	14,829
Due 1 year through 5 years		250		-		250
Total investment in government debt securities	$	14,902	$	177	$	15,079

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

three

months ended

July 31, 2020

and

July 31, 2019,

were

$3,464,000

and

$2,973,000,

respectively. The decrease in gross unrealized gains of

$49,000

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

$12,000,

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

July 31, 2020.

The increase in gross unrealized gains of

$19,000

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

$4,000,

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

July 31, 2019.

As of

July 31, 2020

and

April 30, 2020,

accumulated other comprehensive income included unrealized gains of

$127,000

and

$177,000,

net of deferred taxes of

$34,000

and

$46,000,

respectively.

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

July 31, 2020

and

April 30, 2020

was

2.33%

and

2.27%,

respectively.

Income from Securities Transactions:

Income from securities transactions was comprised of the following:

	Three Months Ended July 31,
($ in thousands)	2020			2019
Dividend income	$	121		$	70
Interest income		56			71
Realized gain on sale of securities		783			-
Other		(2	)		-
Total income from securities transactions, net	$	958		$	141

Investment in Unconsolidated Entities:

Equity Method Investment:

As of

July 31, 2020

and

April 30, 2020,

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

$59,744,000

and

$59,165,000,

respectively.

The value of VLI's investment in EAM at

July 31, 2020

and

April 30, 2020

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

2021

2020.

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

	Three Months Ended July 31,
($ in thousands) (unaudited)	2020		2019
Investment management fees earned from the Value Line Funds, net of waivers shown below	$	6,310	$	5,147
12b-1 fees and other fees, net of waivers shown below	$	2,301	$	1,979
Other income	$	110	$	53
Investment management fee waivers and reimbursements	$	43	$	109
12b-1 fee waivers	$	157	$	173
Value Line's non-voting revenues interest	$	3,280	$	2,588
EAM's net income (1)	$	728	$	566

(

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

50%

non-voting profits interest.

	July 31,			April 30,
($ in thousands)	2020			2020
	(unaudited)
EAM's total assets	$	62,563		$	61,335
EAM's total liabilities (1)		(5,672	)		(4,192	)
EAM's total equity	$	56,891		$	57,143

(

) At

July 31, 2020

and

April 30, 2020,

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

$3,607,000

and

$2,949,000,

respectively.