Note

- 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 will receive ongoing payments in respect of its non-voting revenues and non-voting profits interests.

Total assets in the Value Line Funds managed and/or distributed by EAM at

October 31, 2017,

were

$2.5

billion,

13.6%

above total assets of

$2.2

billion in the Value Line Funds managed and/or distributed by EAM at

October 31, 2016.

The Company

’s non-voting revenues and non-voting profits interests in EAM entitle it to receive a range of

41%

55%

of EAM’s revenues (excluding distribution revenues) from EAM’s 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 EAM’s profits payable each fiscal quarter under the provisions of the EAM Trust Agreement. Value Line’s percent share of EAM’s revenues calculated each fiscal quarter was

49.73%

and

50.28%

during the

first

and

second

quarters of fiscal

2018,

respectively, and

49.45%

and

49.14%

during the

first

and

second

quarters of fiscal

2017,

respectively.

EAM Trust - VLI's non-voting revenues and non-voting profits interests:

The Company holds non-voting revenues and non-voting profits interests in EAM which entitle the Company to receive from EAM an amount ranging from

41%

55%

of EAM's investment management fee revenues from its mutual fund and separate accounts business. EAM currently has

separately managed account clients. The Company recorded income from its non-voting revenues interest and its non-voting profits interest in EAM as follows:

	Three Months Ended October 31,				Six Months Ended October 31,
($ in thousands)	2017		2016		2017		2016
Non-voting revenues interest in EAM	$	2,039	$	1,799	$	4,017	$	3,586
Non-voting profits interest in EAM		198		133		356		262
	$	2,237	$	1,932	$	4,373	$	3,848

October 31, 2017,

the Company's investment in EAM includes a receivable of

$2,218,000

representing the quarterly distribution of

100%

of the non-voting revenues share and

90%

of its non-voting profits share.

Such amount was timely paid subsequent to

October 31, 2017.

Transactions with Parent:

During the

six

months ended

October 31, 2017

and

October 31, 2016,

the Company was reimbursed

$179,000

and

$185,000,

respectively, for payments it made on behalf of and for services the Company provided to the Parent Company, Arnold Bernhard and Co., Inc. ("Parent"). There were

receivables from the Parent on the Consolidated Condensed Balance Sheets at

October 31, 2017

and

April 30, 2017.

The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the

two

Companies between them. The Company made federal tax payments of

$2,200,000

and

$3,218,000

to the Parent during the

six

months ended

October 31, 2017

and

October 31, 2016,

respectively.

From time to time, the Parent has purchased additional shares of common stock of the Company in the market when and as the Parent has determined it to be appropriate. The Parent

may

make additional purchases of common stock of the Company from time to time in the future. As of

October 31, 2017,

the Parent owned

88.98%

of the outstanding shares of common stock of the Company.