On December 23, 2010, the Company deconsolidated its asset management and mutual fund distribution businesses and its interest in these businesses was restructured as a non-voting revenues and non-voting profits interests in EAM. Accordingly, the Company no longer reports this operation as a separate business segment, although it still maintains a significant interest in the cash flows generated by this business and will receive non-voting revenues and non-voting profits interests going forward, as discussed below.

Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2014, were $2.35 billion, which is $164 million or 7.5% above total assets of $2.19 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2013.

Total assets in the Value Line Funds managed by EAM at April 30, 2013, were $2.19 billion, 3.8% above total assets of $2.11 billion in the Value Line Funds managed by EAM at April 30, 2012. Overall assets in the Value Line Funds at April 30, 2013, increased $800 million since April 30, 2012, as a result of market appreciation within the Value Line Funds for the twelve months ended April 30, 2012.

During October 2012, the USGMMF merged into a third party fund, the Daily Income Fund, managed by Reich & Tang. EAM distributes the Daily Income Fund on behalf of Reich & Tang and maintains the shareholder accounts on behalf of the Value Line Funds’ shareholders who invest in the Daily Income Fund, but EAM is no longer subsidizing the expenses of the USGMMF resulting from the low interest rate economic environment. In addition, the merger of the USGMMF eliminated the cost of administration and fund accounting.

In December 2012, the Value Line Emerging Opportunities Fund changed its name to Value Line Small Cap Opportunities Fund. By changing the name, the Fund strategy and correct category is clearly defined for investors.

During December 2012, the Value Line Aggressive Income Trust changed its investment strategy and changed its name to the Value Line Core Bond Fund. In doing so, the Value Line Funds now have a core bond fund offering that still meets the fundamental investment objectives of the Aggressive Income Trust, which is maximization of current income with a secondary objective of capital appreciation, yet have broader appeal and a larger pool of investors to attract assets. Such assets may include existing shareholders of other Value Line Funds as shareholders redeem equities.

During March 2013, the Value Line U.S. Government Securities Fund merged into the Value Line Core Bond Fund. This created a core bond fund with $100 million in assets, a critical threshold for many institutional money managers.

The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAM’s revenues (excluding distribution revenues) from EAM’s mutual fund and separate account business and at least 90% of the Company’s 50% interest in the residual profits of EAM which are 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 46.66%, 47.27%, 47.91% and 48.66%, respectively, in the first, second, third and fourth quarters of fiscal 2014. Value Line’s percent share of EAM’s revenues was 46.20%, 45.87%, 46.15% and 46.47%, respectively, in the first, second, third and fourth quarters of fiscal 2013.

The non-voting revenues and 90% of the Company’s non-voting profits interests due from EAM to the Company are payable each fiscal quarter under the provisions of the EAM Trust Agreement. The distributable amounts earned through the balance sheet date, which is included in the Investment in EAM Trust on the Consolidated Balance Sheets, and not yet paid, were $1,887,000 and $1,621,000 at April 30, 2014 and April 30, 2013, respectively.

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 interests in EAM as follows:


	Fiscal Years Ended April 30,
($ in thousands)	2014		2013		2012
Non-voting revenues interest in EAM	$	6,767	$	5,781	$	5,684

Non-voting profits interest in EAM		732		479		206
	$	7,499	$	6,260	$	5,890

For the fiscal years ended April 30, 2014, 2013 and 2012, the Company was reimbursed $220,000, $220,000, and $268,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables due from the Parent at April 30, 2014 or April 30, 2013.

The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the two Companies between them. For the years ended April 30, 2014, 2013, and 2012, the Company made payments to the Parent for federal income tax amounting to $2,254,000, $1,877,000, and $845,000, respectively.

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 April 30, 2014, the Parent owned approximately 87.9% of the outstanding shares of common stock of the Company.