Investments

3 Months Ended

Jul. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Investments

Note 2: Investments

The Company has investments in publicly traded equity securities, corporate bonds, state and municipal debt securities, real estate investment trusts, and money markets. The investments in securities 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 July 31, 2017 and April 30, 2017, investments consisted of the following:

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair
July 31, 2017	Basis		Gains		Losses			Value
Municipal bonds	$	6,062,000	$	108,000	$	(186,000	)	$	5,984,000
Corporate bonds	$	129,000	$	1,000	$	-		$	130,000
REITs	$	63,000	$	-	$	(6,000	)	$	57,000
Equity securities	$	15,360,000	$	2,982,000	$	(227,000	)	$	18,115,000
Money markets and CDs	$	2,825,000	$	-	$	-		$	2,825,000
Total	$	24,439,000	$	3,091,000	$	(419,000	)	$	27,111,000

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair
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

The Company evaluates all marketable securities 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 an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, management did not need to record any impairment losses for the quarter ended July 31, 2017 while $13,000 was recorded as an impairment loss for the quarter ended July 31, 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 July 31, 2017 and April 30, 2017, respectively.

Unrealized Loss Breakdown by Investment Type at July 31, 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	$	968,000	$	(115,000	)	$	1,192,000	$	(71,000	)	$	2,160,000	$	(186,000	)
REITs	$	57,000	$	(6,000	)	$	-	$	-		$	57,000	$	(6,000	)
Equity securities	$	833,000	$	(86,000	)	$	1,164,000	$	(141,000	)	$	1,997,000	$	(227,000	)
Total	$	1,858,000	$	(207,000	)	$	2,356,000	$	(212,000	)	$	4,214,000	$	(419,000	)

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	)

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, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 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. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at July 31, 2017.