Related Party Transactions

9 Months Ended

Jan. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

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 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 January 31, 2016, were $2.14 billion, 6.6% below total assets of $2.30 billion in the Value Line Funds managed and/or distributed by EAM at January 31, 2015.

The Company’s non-voting revenues and non-voting profits interests in EAM entitle it to receive 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 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 50.05%, 50.16% and 50.14% during the first, second and third quarters of fiscal 2016, respectively, and 49.18%, 49.63% and 49.80% during the first, second and third quarters of fiscal 2015, 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% to 55% of EAM's investment management fee revenues from its mutual fund and separate accounts business. EAM currently has no 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 January 31,				Nine Months Ended January 31,
($ in thousands)	2016		2015		2016		2015
Non-voting revenues interest in EAM	$	1,825	$	1,862	$	5,546	$	5,498
Non-voting profits interest in EAM		94		162		355		497
	$	1,919	$	2,024	$	5,901	$	5,995

Transactions with Parent:

During the nine months ended January 31, 2016 and January 31, 2015, the Company was reimbursed $96,000 and $104,000, respectively, for payments it made on behalf of and for services the Company provided to the Parent. There were no receivables from affiliates including receivables from the Parent on the Consolidated Condensed Balance Sheets at January 31, 2016 and April 30, 2015.

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 $2,695,000 and $2,560,000 to the Parent during the nine months ended January 31, 2016 and January 31, 2015, 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 January 31, 2016, the Parent owned 88.39% of the outstanding shares of common stock of the Company.