Investments

6 Months Ended

Oct. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments

Note 2 Investments

The Company has investments in publicly traded equity securities, state and municipal debt securities, real estate investment trusts, and money markets. The investments in debt securities, which include municipal bonds and bond funds, mature between August 2023 and September 2042. The Company uses the average cost method to determine the cost of equity securities sold with any unrealized gains or losses reported in the respective period’s earnings. Unrealized gains and losses on debt securities are excluded from earnings and reported separately as a component of stockholder’s equity. Dividend and interest income are reported as earned.

As of October 31, 2022 and April 30, 2022, investments consisted of the following:

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair
October 31, 2022	Basis		Gains		Losses			Value
Municipal bonds	$	5,515,000	$	35,000	$	(397,000	)	$	5,153,000
REITs		93,000		—		(15,000	)		78,000
Equity securities		18,107,000		6,178,000		(900,000	)		23,385,000
Money markets and CDs		992,000		—		—			992,000
Total	$	24,707,000	$	6,213,000	$	(1,312,000	)	$	29,608,000

			Gross		Gross
Investments at	Cost		Unrealized		Unrealized			Fair
April 30, 2022	Basis		Gains		Losses			Value
Municipal bonds	$	5,625,000	$	41,000	$	(229,000	)	$	5,437,000
REITs		131,000		16,000		(3,000	)		144,000
Equity securities		18,322,000		6,921,000		(473,000	)		24,770,000
Money markets and CDs		628,000		—		—			628,000
Total	$	24,706,000	$	6,978,000	$	(705,000	)	$	30,979,000

Marketable securities that are classified as equity securities are carried at fair value on the balance sheets with changes in fair value recorded as an unrealized gain or (loss) in the statements of income in the period of the change. Upon the disposition of a marketable security, the Company records a realized gain or (loss) on the Company’s statements of income.

The Company evaluates all marketable securities for other-than-temporary declines in fair value, which are defined as when the cost basis exceeds the fair value for approximately one year. The Company also evaluates the nature of the investment, cause of impairment and number of investments that are in an unrealized position. When an “other-than-temporary” decline is identified, the Company will decrease the cost of the marketable security to the new fair value and recognize a real loss. The investments are periodically evaluated to determine if impairment changes are required. As a result of this standard, there were no impairment losses recorded for either of the quarter or the six months ended October 31, 2022 and 2021.

The Company’s investments are actively traded in the stock and bond markets. Therefore, either a realized gain or loss is recorded when a sale happens. For the quarter ended October 31, 2022 the Company had sales of equity securities which yielded gross realized gains of $89,000 and gross realized losses of $187,000. For the same period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $12,000 were recorded. As for the six-months ended October 31, 2022 the Company had sales of equity securities which yielded gross realized gains of $285,000 and gross realized losses of $453,000. For the same six-month period, sales of debt securities did not yield any gross realized gains, but gross realized losses of $41,000 were recorded. During the quarter ending October 31, 2021, the Company recorded gross realized gains and losses on equity securities of $106,000 and $26,000, respectively, while sales of debt securities did not yield any gross realized gains or losses. During the six-months ending October 31, 2021, the Company recorded gross realized gains and losses on equity securities of $343,000 and $33,000, respectively, while sales of debt securities did not yield any gross realized gains, but gross realized losses of $10,000 were recorded. The gross realized loss numbers include the impaired figures listed in the previous paragraph.

The following table shows the investments with unrealized losses that are not deemed to be “other-than-temporarily impaired”, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at October 31, 2022 and April 30, 2022, respectively.

Unrealized Loss Breakdown by Investment Type at October 31, 2022

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	4,423,000	$	(305,000	)	$	458,000	$	(92,000	)	$	4,881,000	$	(397,000	)
REITs		53,000		(12,000	)		25,000		(3,000	)		78,000		(15,000	)
Equity securities		5,383,000		(813,000	)		345,000		(87,000	)		5,728,000		(900,000	)
Total	$	9,859,000	$	(1,130,000	)	$	828,000	$	(182,000	)	$	10,687,000	$	(1,312,000	)

Unrealized Loss Breakdown by Investment Type at April 30, 2022

	Less than 12 months					12 months or greater					Total
Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Municipal bonds	$	4,420,000	$	(142,000	)	$	539,000	$	(87,000	)	$	4,959,000	$	(229,000	)
REITs		18,000		(1,000	)		26,000		(2,000	)		44,000		(3,000	)
Equity securities		4,157,000		(424,000	)		274,000		(49,000	)		4,431,000		(473,000	)
Total	$	8,595,000	$	(567,000	)	$	839,000	$	(138,000	)	$	9,434,000	$	(705,000	)

Municipal Bonds

The unrealized losses on the Company’s investments in municipal bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company has the ability to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at October 31, 2022 and April 30, 2022

Marketable Equity Securities and REITs

The Company’s investments in marketable equity securities and REITs consist of a wide variety of companies. Investments in these companies include growth, growth income, and foreign investment objectives. The individual holdings have been evaluated, and due to management’s plan to hold on to these investments for an extended period, the Company does not consider these investments to be other-than-temporarily impaired at October 31, 2022 and April 30, 2022.