Investments

12 Months Ended

Apr. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

3. Investments

The Company has investments in publicly traded equity securities, state and municipal debt securities, REITs, and money markets and they are recorded at fair value. The investments in debt securities, which include municipal bonds and bond funds, mature between July 2024 and July 2041. The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported in the respective period’s earnings. Dividend and interest income are reported as earned.

As of April 30, 2024 and 2023, investments consisted of the following:

Schedule of Investments

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Reported
April 30, 2024	Basis		Gains		Losses			Value
Municipal bonds	$	7,057,000	$	28,000	$	(100,000	)	$	6,985,000
REITs	$	74,000	$	-	$	(8,000	)	$	66,000
Equity securities	$	17,408,000	$	9,303,000	$	(209,000	)	$	26,502,000
Money Markets and CDs	$	935,000	$	-	$	-		$	935,000
Total	$	25,474,000	$	9,331,000	$	(317,000	)	$	34,488,000

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Reported
April 30, 2023	Basis		Gains		Losses			Value
Municipal bonds	$	5,396,000	$	46,000	$	(230,000	)	$	5,212,000
REITs	$	93,000	$	-	$	(22,000	)	$	71,000
Equity securities	$	18,605,000	$	6,915,000	$	(501,000	)	$	25,019,000
Money Markets and CDs	$	1,060,000	$	1,000	$	-		$	1,061,000
Total	$	25,154,000	$	6,962,000	$	(753,000	)	$	31,363,000

Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of income.

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 $22,000 and $67,000 for the years ended April 30, 2024 and 2023, respectively.

The Company’s investments are actively traded in the stock and bond markets. Therefore, there is either a realized gain or loss that is recorded when a sale happens. For the fiscal year ended April 30, 2024, the Company had sales of equity securities which yielded gross realized gains of $789,000 and gross realized losses of $613,000. For the same period, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $28,000. Comparatively, the Company recorded gross realized gains on equity securities of $512,000 and gross realized losses of $740,000 for the fiscal year ending April 30, 2023. As for debt securities, there were not any sales of debt securities for gross realized gains, but sales of debt securities yielded gross realized losses of $63,000 for the fiscal year ending April 30, 2023. The gross realized loss numbers include the impaired figures listed in the previous paragraph. Additionally, proceeds from sales of securities available for sale were $527,000 and $25,000 for the years ended April 30, 2024 and 2023 respectively.

3. Investments, continued

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, as of April 30, 2024 and 2023.

Schedule of Unrealized Loss Breakdown by Investment Type

Unrealized Loss Breakdown by Investment Type as of April 30, 2024

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	5,897,000	$	(20,000	)	$	773,000	$	(80,000	)	$	6,670,000	$	(100,000	)
REITs	$	—	$	—		$	66,000	$	(8,000	)	$	66,000	$	(8,000	)
Equity securities	$	2,255,000	$	(72,000	)	$	766,000	$	(137,000	)	$	3,021,000	$	(209,000	)
Total	$	8,152,000	$	(92,000	)	$	1,605,000	$	(225,000	)	$	9,757,000	$	(317,000	)

Unrealized Loss Breakdown by Investment Type as of April 30, 2023

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	868,000	$	(6,000	)	$	3,769,000	$	(224,000	)	$	4,637,000	$	(230,000	)
REITs	$	36,000	$	(9,000	)	$	35,000	$	(13,000	)	$	71,000	$	(22,000	)
Equity securities	$	3,048,000	$	(140,000	)	$	2,209,000	$	(361,000	)	$	5,257,000	$	(501,000	)
Total	$	3,952,000	$	(155,000	)	$	6,013,000	$	(598,000	)	$	9,965,000	$	(753,000	)

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 as of April 30, 2024 and 2023.

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 as of April 30, 2024 and 2023.