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Investments:
 6 Months Ended
Oct. 31, 2011
Investments, Debt and Equity Securities [Abstract]  
Investments:
Note 2-Investments:
 
Securities Available-for-Sale:
Investments held by the Company and its subsidiaries are classified as securities available-for-sale in accordance with FASB’s ASC 320, Investments - Debt and Equity Securities. Securities available-for-sale with a maturity of twelve months or less are classified as short-term and investment securities with a maturity greater than twelve months are classified as long-term. As of October 31, 2011 and April 30, 2011, there were no long-term securities available-for-sale.
 
Equity Securities:
Equity securities classified as available-for-sale, consist of investments in common stocks and exchange traded funds (“ETFs”) that hold investments in certain equity index securities including preferred shares.
 
Fixed Income Securities:
Fixed income securities consist of government debt securities issued by the United States federal government.
 
The changes in the value of these investments are recorded in other comprehensive income in the Consolidated Condensed Financial Statements. Realized gains and losses are recorded in the Consolidated Condensed Statements of Income when securities are sold, mature or are redeemed. As of October 31, 2011 and April 30, 2011, there were unrealized gains net of deferred tax of $34,000 and $63,000, respectively. Comprehensive income for the six months ended October 31, 2011 and 2010 was $3,962,000 and $3,370,000, respectively.
 
The carrying value and fair value of securities available-for-sale at October 31, 2011 were as follows:
 
          Gross    
Gross
        
($ in thousands)
  
Amortized Cost
    
Unrealized
    
Unrealized
  
Fair Value
  
         
Gains
    
Losses
      
FDIC insured commercial paper
   $ 2,217     $ -     $ (16 )   $ 2,201  
Common stocks
     181       17       (1 )     197  
ETFs
     1,583       65       (13 )     1,635  
    $ 3,981     $ 82     $ (30 )   $ 4,033  
 
The carrying value and fair value of securities available-for-sale at April 30, 2011 were as follows:
 
         
Gross
    
Gross
        
($ in thousands)
  
Amortized Cost
    
Unrealized
    
Unrealized
    
Fair Value
  
         
Gains
    
Losses
        
FDIC insured commercial paper and U.S. Treasury securities
   $ 11,217     $ 4     $ (13 )   $ 11,208  
Common stocks
     181       9       -       190  
ETFs
     1,179       97       -       1,276  
    $ 12,577     $ 110     $ (13 )   $ 12,674  
 
Proceeds from sales of government debt securities classified as available-for-sale during the six months ended October 31, 2011 and October 31, 2010 were $8,995,000 and $9,705,000, respectively. During the six months ended October 31, 2011, losses on sales of fixed income securities of $5,000 were reclassified from Accumulated Other Comprehensive Income in the Consolidated Condensed Balance Sheet to the Consolidated Condensed Statement of Income. During the six months ended October 31, 2010 there were no realized gains or losses on fixed income securities.
 
The average yield on the FDIC insured and government debt securities classified as available-for-sale at October 31, 2011 and April 30, 2011  was 0.51% and 0.24%, respectively.
 
During the six months ended October 31, 2011 and 2010, income from securities transactions also included $27,000 and $1,000 of dividend income and $14,000 and $91,000 of interest income, respectively.
 
Investment in Unconsolidated Entities:
Equity Method Investment:
The Company recorded an asset, Investment in EAM Trust, on its Consolidated Condensed Balance Sheet with an initial valuation as of the Restructuring Date of $55,805,000 as a result of the deconsolidation of EAM LLC and ESI, the former asset management and mutual fund distribution subsidiaries. In accordance with the Consolidation Topic of the FASB’s ASC, the Company recognized a pre-tax gain in net income of $50,510,000 measured as the difference between the fair value of the consideration received, valued at $51,690,000, and the carrying value of the former subsidiaries’ assets and liabilities, which was comprised of $1,180,000 of working capital (cash), transferred pursuant to the Restructuring Transaction. The value of VLI’s investment in EAM at October 31, 2011 and April 30, 2011 reflects the fair value at the Restructuring Date of the Revenues Interest and Profits Interest received in the Restructuring Transaction, plus $5,820,000 of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI on the Restructuring Date, plus earnings from EAM less earnings distributed to VLI by EAM, during the period from the Restructuring Date through the balance sheets dates.
 
In accordance with the EAM Trust Agreement and as mentioned above, EAM received $7,000,000 in cash and liquid securities from VLI pursuant to the Restructuring Transaction which included $1,180,000 of working capital deemed needed for operations and $5,820,000 in excess of working capital needs. It is anticipated that EAM will have sufficient liquidity and earn enough profit to conduct its current and future operations so the management of EAM will not need additional funding. Although the distributor had historically received, from the Value Line Funds under the compensation plans it had in place with the Funds, amounts in excess of its actual expenditures, in more recent years the distributor has been spending amounts on promotion of the Value Line Funds in excess of the compensation received from the Funds. Over time, EAM anticipates that its total future expenditures on such promotion will equal or exceed its total future revenues under the Funds’ distribution plans. However, if that should not occur, EAM has no obligation to reimburse the Value Line Funds.
 
The Company monitors its Investment in EAM Trust for impairment to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. Impairment indicators include, but are not limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital requirements.  EAM did not record any impairment losses for its assets during the fiscal years 2012 or 2011.
 
The overall results of EAM’s investment management operations during the six months ended October 31, 2011, before interest holder distributions, include total investment management fees earned from the Value Line Funds of $6,258,000, 12b-1 fees of $1,750,000 and other income of $9,000. For the same period, total investment management fee waivers were $457,000 and 12b-1 fee waivers were $1,166,000. During the six months ended October 31, 2011, EAM’s net income was $188,000 including an estimate of $10,000 for the month of October 2011 and after giving effect to Value Line’s non-voting revenues interest of $2,821,000, but before distributions to voting profits interest holders and to the Company in respect of its non-voting profits interest. Operating expenses of EAM during the six months ended October 31, 2011, were $5,008,000 and EAM’s net income after reduction for Value Line’s non-voting revenues share of $2,821,000 was $188,000 available for distribution to profit interest holders. At October 31, 2011, EAM’s total assets were $57,493,000, total liabilities were $796,000 and total equity was $56,697,000.  During the six months ended October 31, 2011, the Company recorded revenues of $2,821,000 and profits of $94,000 from its non-voting revenues and its non-voting profits interests in EAM without incurring any directly related expenses.