Significant Accounting Policies (Policies)

6 Months Ended

Oct. 31, 2022

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. The Company holds a significant non-voting revenues interest (excluding distribution revenues) and a significant non- voting profits interest in 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 [Policy Text Block]

Revenue Recognition:

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

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

Equity Method Investments [Policy Text Block]

Investment in Unconsolidated Entities:

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

The Company’s “interests” in EAM, the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a "non-voting  revenues interest" and a "non-voting  profits  interest" in  EAM as defined  in  the EAM Trust Agreement. The non- voting  revenues interest  entitles  the Company to  receive  a range of 41%  to  55%  of EAM’s  adjusted  gross revenues, excluding EULAV Securities' distribution revenues (“Revenues Interest”). The non-voting profits interest entitles the Company to receive 50% of EAM's  profits, subject to certain limited  adjustments as defined in  the EAM Trust Agreement (“Profits Interest”).   The Revenues Interest and at least 90% of the Profits Interest are to be distributed each quarter to all interest holders of EAM, including Value Line. The Company's Revenues Interest  in  EAM excludes participation  in  the service  and distribution  fees  of EAM's  subsidiary EULAV Securities.   The Company reflects  its  non-voting revenues and non-voting  profits interests  in EAM as non-operating  income under the equity method of accounting.   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, equity securities and available-for-sale fixed income securities consist of shares of money market funds that invest primarily in short-term U.S. Government securities  and investments in  equities  including ETFs and are valued  in  accordance with  the requirements  of the Fair  Value  Measurements Topic  of the FASB's ASC  820.   The securities classified  as equity  securities  reflected  in  the Consolidated  Condensed  Balance  Sheets are valued  at  market and unrealized gains  and losses are recorded in the Consolidated  Condensed Statements of Income  per FASB  Accounting Standards Update No. 2016-01 ("ASU 2016-01"). The securities classified as available-for-sale  fixed income securities 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. Investment  gains  and losses  on  sales  of the equity  securities are the difference between proceeds from sales and the fair value of the equity securities sold at the beginning of the period or the purchase date, if  later.   Investment  gains  and losses  on  sales  of the available-for-sale  fixed  income  securities  are the difference  between proceeds from sales and the cost of the securities. Investment gains and losses on sales of the securities are recorded in earnings as of the trade date and are determined on the identified cost method.

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

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

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

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

Level 1 – quoted prices in active markets for identical investments

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

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

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

		As of October 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	12,066	$	-	$	-	$	12,066
Equity securities		17,122		-		-		17,122
Available-for-sale fixed income securities		27,954		-		-		27,954
	$	57,142	$	-	$	-	$	57,142

		As of April 30, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents	$	28,965	$	-	$	-	$	28,965
Equity securities		17,647		-		-		17,647
Available-for-sale fixed income securities		10,475		-		-		10,475
	$	57,087	$	-	$	-	$	57,087

The Company had no other financial instruments such as futures, forwards and swap contracts. For the periods ended October 31, 2022 and April 30, 2022, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities that are subject to fair value measurement.

Advertising Cost [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 Company adopted the provisions of ASU 2015-17, Income taxes (Topic 740) and classifies all deferred taxes as long-term liabilities on the Consolidated Condensed Balance Sheets.

The Income Tax Topic of the FASB's ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures.  As of October 31, 2022, 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, 2022 and April 30, 2022, cash equivalents included $12,066,000 and $28,965,000, respectively, for amounts invested in money market mutual funds that invest in short term U.S. government securities.