Note 7 - Related Party Transactions

9 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

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

reports 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

January 31, 2021,

were

$4.90

billion,

30.7%

above total assets of

$3.75

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

January 31, 2020.

The Company's non-voting revenues and non-voting profits interests in EAM entitle it to receive quarterly distributions in a range of

41%

to

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 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 is calculated each fiscal quarter. The applicable recent non-voting revenues interest percentage for the

third

quarter of fiscal

2021

was

52.48%.

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%

to

55%

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

no

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

	Three Months Ended January 31,				Nine Months Ended January 31,
($ in thousands)	2021		2020		2021		2020
Non-voting revenues interest in EAM	$	4,104	$	3,033	$	11,113	$	8,389
Non-voting profits interest in EAM		630		422		1,479		995
	$	4,734	$	3,455	$	12,592	$	9,384

At

January 31, 2021,

the Company's investment in EAM includes a receivable of

$4,671,000

representing the quarterly distribution of the non-voting revenues share and non-voting profits share. That sum was subsequently paid to the Company.

Transactions with Parent:

During the

nine

months ended

January 31, 2021

and

January 31, 2020,

the Company was reimbursed

$272,000

and

$259,000,

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

no

receivables from the Parent on the Consolidated Condensed Balance Sheets at

January 31, 2021

and

April 30, 2020.

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

$5,210,000

and

$3.325,000

to the Parent during the

nine

months ended

January 31, 2021

and

January 31, 2020,

respectively.

As of

January 31, 2021,

the Parent owned

90.13%

of the outstanding shares of common stock of the Company.