Investments

12 Months Ended

Apr. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investments

3. Investments

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, money markets, certificates of deposits and hedge funds. The investments in securities, which include all investments except for the hedge funds, are classified as available-for-sale securities, and are reported at fair value. Available-for-sale investments in debt securities mature between September 2017 and November 2048. The Company uses the average cost method to determine the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. Unrealized gains and losses are excluded from earnings and reported separately as a component of stockholders’ equity. Dividend and interest income are reported as earned.

As of April 30, 2017 and 2016, investments consisted of the following:

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Reported
April 30, 2017	Basis		Gains		Losses			Value
Municipal bonds	$	6,045,000	$	90,000	$	(97,000	)	$	6,038,000
Corporate bonds	$	129,000	$	1,000	$	-		$	130,000
REITs	$	64,000	$	13,000	$	(1,000	)	$	76,000
Equity securities	$	15,259,000	$	2,441,000	$	(319,000	)	$	17,381,000
Money Markets and CDs	$	2,757,000	$	-	$	-		$	2,757,000
Total	$	24,254,000	$	2,545,000	$	(417,000	)	$	26,382,000

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Reported
April 30, 2016	Basis		Gains		Losses			Value
Municipal bonds	$	6,489,000	$	133,000	$	(239,000	)	$	6,383,000
Corporate bonds	$	130,000	$	-	$	(4,000	)	$	126,000
REITs	$	42,000	$	4,000	$	(2,000	)	$	44,000
Equity securities	$	14,796,000	$	1,187,000	$	(484,000	)	$	15,499,000
Money Markets and CDs	$	2,478,000	$	-	$	-		$	2,478,000
Total	$	23,935,000	$	1,324,000	$	(729,000	)	$	24,530,000

The Company evaluates all investments for other-than temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When other than a temporary decline is identified, the Company will decrease the cost of the investment to the new fair value and recognize a loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management recorded impairment losses of $220,000 for the year ended April 30, 2017 and $69,000 for the year ended April 30, 2016.

The following table shows the investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at April 30, 2017 and 2016.

Unrealized Loss Breakdown by Investment Type at April 30, 2017

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	1,420,000	$	(19,000	)	$	1,292,000	$	(78,000	)	$	2,712,000	$	(97,000	)
REITs	$	—	$	—		$	27,000	$	(1,000	)	$	27,000	$	(1,000	)
Equity securities	$	983,000	$	(92,000	)	$	1,689,000	$	(227,000	)	$	2,672,000	$	(319,000	)
Total	$	2,403,000	$	(111,000	)	$	3,008,000	$	(306,000	)	$	5,411,000	$	(417,000	)

 Unrealized Loss Breakdown by Investment Type at April 30, 2016

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	3,129,000	$	(215,000	)	$	609,000	$	(24,000	)	$	3,738,000	$	(239,000	)
Corporate bonds	$	—	$	—		$	27,000	$	(4,000	)	$	27,000	$	(4,000	)
REITs	$	27,000	$	(2,000	)	$	—	$	—		$	27,000	$	(2,000	)
Equity securities	$	5,018,000	$	(323,000	)	$	1,171,000	$	(161,000	)	$	6,189,000	$	(484,000	)
Total	$	8,174,000	$	(540,000	)	$	1,807,000	$	(189,000	)	$	9,981,000	$	(729,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value occurs, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at April 30, 2017.

Corporate Bonds

The Company’s unrealized loss on investments in corporate bonds relates to one bond. The contractual term of this investment does not permit the issuer to settle the security at a price less than the amortized cost of the investment. Because the Company has the ability to hold this investment until a recovery of fair value, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at April 30, 2017.

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. Management has evaluated the individual holdings, and does not consider these investments to be other-than-temporarily impaired at April 30, 2017.