Financial Analysis

"Note 7 - Federal, State and Local Income Taxes: In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following: Fiscal Years Ended April 30, ($ in thousands) 2026 2025 2024 Current tax expense: Federal $ 5,097 $ 5,225 $ 4,847 State and local 1,548 1,347 1,232 Current tax expense 6,645 6,572 6,079 Deferred tax expense (benefit): Federal 566 274 86 State and local 588 9 6 Deferred tax expense: 1,154 283 92 Income tax provision $ 7,799 $ 6,855 $ 6,171 On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act (the ""Tax Act""), was enacted. The Tax Act lowered the U.S. federal income tax rate (""Federal Tax Rate"") from 35% to 21% effective January 1, 2018. Accordingly, the Company computes Federal income tax expense using the Federal Tax Rate of 21% in fiscal year 2019 and each year thereafter. The overall effective income tax rates, as a percentage of pre-tax ordinary income for the twelve months ended April 30, 2026, April 30, 2025 and April 30, 2024 were 26.50%, 24.89% and 24.50%, respectively. The increase in the effective tax rate during for the twelve months ended April 30, 2026 as compared to April 30, 2025, is primarily a result of an increase in the state and local tax rate from 4.09% to 5.73%, primarily in the state of Florida that has changed from a market based approach to a cost of production approach affecting EAM's allocation of taxable income for the combined compani …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 - Lease Commitments: On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (ABM or the Sublandlord) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (Building or Premises) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Companys favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Companys new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (23% initially) in the Companys annual rental expenditure taking into account free rent for the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements: In November 2023, the FASB issued Accounting Standards Update 2023-07, Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 18 to our Consolidated Financial Statements. In December 2023, the FASB issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures (ASU 2023-09), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid(net of refunds received) to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitativ …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 3 - Related Party Transactions: Investment Management (overview): The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and receives non-voting revenues and non-voting profits interests, as discussed below. Total assets in the Value Line Funds managed and/or distributed by EAM at April 30, 2026, were $3.72 billion, which is $0.96 billion, or 20.4%, below total assets of $4.68 billion in the Value Line Funds managed and/or distributed by EAM at April 30, 2025. The Companys non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAMs revenues (excluding distribution revenues) from EAMs mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAMs profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Lines percent share of EAMs revenues is calculated each fiscal quarter. The non-voting revenues and 90% of the Company's non-voting profits interests due from EAM to the Company are payable ea …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 18 - Business Segments: The Company allocates resources and assesses financial performance on a consolidated basis. It does so because significant costs, predominately including the Research Department, Information Technology Department, and Occupancy Overhead, are shared in common by all products. Therefore, the investment periodicals and related publications (such as digital equivalents), along with supplying the embedded Proprietary information and intellectual property rights, are treated as one segment, Publishing. The products and services offered by the Company generally fall into four categories: Comprehensive reference periodical publications Targeted, niche periodical newsletters Investment analysis software Current and historical financial databases The comprehensive research services (The Value Line Investment Survey, The Value Line Investment Survey Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus) provide both statistical and text coverage of a large number of investment securities, with an emphasis placed on Value Lines proprietary research, analysis and statistical ranks. The niche newsletters (Value Line Select , Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter) provide information on a less comprehensive basis for se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 8 - Federal, State and Local Income Taxes: In accordance with the requirements of the Income Tax Topic of the FASB's ASC, the Company's provision for income taxes includes the following: Three Months Ended October 31, Six Months Ended October 31, ($ in thousands) 2025 2024 2025 2024 Current tax expense: Federal $ 1,508 $ 1,339 $ 2,897 $ 2,622 State and local 285 354 677 666 Current tax expense 1,793 1,693 3,574 3,288 Deferred tax expense (benefit): Federal 366 182 751 486 State and local 7 - 17 11 Deferred tax expense (benefit): 373 182 768 497 Income tax provision $ 2,166 $ 1,875 $ 4,342 $ 3,785 On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act (the ""Tax Act""), was enacted. The Tax Act lowered the U.S. federal income tax rate (""Federal Tax Rate"") from 35% to 21% effective January 1, 2018. Accordingly, the Company computes Federal income tax expense using the Federal Tax Rate of 21% in fiscal year 2019 and each year thereafter. The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2025 and October 31, 2024 were 26.34% and 24.65%, respectively. The higher effective tax rate during six months ended October 31, 2025 as compared to October 31, 2024, is primarily a result of an increase in the state and local income tax rate to 5.54% from 3.86% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 - Lease Commitments: On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (ABM or the Sublandlord) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (Building or Premises) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Companys favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Companys new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements: In November 2023, the FASB issued Accounting Standards Update 2023-07, Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for annual reporting periods after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 16 to our Consolidated Financial Statements. In December 2023, the FASB issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures (ASU 2023-09), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Note 7 - Related Party Transactions: Investment Management (overview): The Company has substantial non-voting revenues and non-voting profits interests in EAM, the asset manager to the Value Line Mutual Funds. Accordingly, the Company does not report this operation as a separate business segment, although it maintains a significant interest in the cash flows generated by this business and receives non-voting revenues and non-voting profits interests, as discussed below. Total assets in the Value Line Funds managed and/or distributed by EAM at October 31, 2025, were $4.76 billion, slightly below total assets of $4.78 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2024. The Companys non-voting revenues and non-voting profits interests from EAM entitle it to receive quarterly distributions in a range of 41% to 55% of EAMs revenues (excluding distribution revenues) from EAMs mutual fund and separate account business and 50% of the residual profits of EAM (subject to temporary increase in certain limited circumstances). The Voting Profits Interest Holders will receive the other 50% of residual profits of EAM. Distribution is not less than 90% of EAMs profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Lines percent share of EAMs revenues is calculated each fiscal quarter. EAM Trust - VLI's non-voting revenues and non-voting profits interests: The Company holds non-voting revenues and non-voting profits inter …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 16 - Business Segments: The Company allocates resources and assesses financial performance on a consolidated basis. It does so because significant costs, predominately including the Research Department, Information Technology Department, and Occupancy Overhead, are shared in common by all products. Therefore, the investment periodicals and related publications (such as digital equivalents), along with supplying the embedded Proprietary information and intellectual property rights, are treated as one segment, Publishing. The products and services offered by the Company generally fall into four categories: Comprehensive reference periodical publications Targeted, niche periodical newsletters Investment analysis software Current and historical financial databases The comprehensive research services (The Value Line Investment Survey, The Value Line Investment Survey Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus) provide both statistical and text coverage of a large number of investment securities, with an emphasis placed on Value Lines proprietary research, analysis and statistical ranks. The niche newsletters (Value Line Select , Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter) provide information on a less comprehensive basis for se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing