VALUE LINE INC

Previous wording

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors which may involve external factors over which we may have no control or changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at our discretion, could also have material adverse effects on future results. Except as otherwise required to be disclosed in periodic reports required to be filed by public companies with the SEC pursuant to the SEC's rules, we have no duty to update these statements, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, current plans, anticipated actions, and future financial conditions and results may differ from those expressed in any forward-looking information contained herein.

Current wording

These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors which may involve external factors over which we may have no control could also have material adverse effects on future results. Likewise, changes we make in our plans, objectives, strategies, or intentions, which may occur at any time in our discretion, could also have material favorable or adverse effects on our future results. Except as otherwise required to be disclosed in periodic reports required to be filed by public companies with the SEC pursuant to the SEC's rules, we have no duty to update these statements, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, current plans, anticipated actions, and future financial conditions and results may differ from those expressed in any forward-looking information contained herein.

Previous wording

The U.S. economy, after showing signs of slowing down during the first three months of calendar 2024, reaccelerated in the second quarter. The nation’s gross domestic product expanded by an estimated 3.0% in the June quarter, more than double the 1.4% gain recorded in the March period. The advance was fueled by a 2.9% increase in personal consumption expenditures, which was nearly twice the pace logged in the initial quarter. The consumer sector, which accounts for two-thirds of the nation’s output, has proven resilient amid higher inflation and elevated lending rates the last few years. But these gains may have come at a price, as consumer credit card debt rose to a record $1.14 trillion in the second stanza and loan delinquencies are on the rise.

Current wording

The U.S. economy, after showing signs of slowing down during the first three months of calendar 2024, reaccelerated in the second and third quarters. The nation’s gross domestic product expanded by an estimated 2.8% in the September period, building on the 3.0% advance recorded in the June quarter. The growth was fueled by a hearty 3.5% increase in personal consumption expenditures. The consumer sector, which accounts for two-thirds of the nation’s output, has proven resilient amid higher inflation and elevated lending rates the last few years.

Previous wording

The economic advance comes as the Federal Reserve appears poised to start winding down its most restrictive monetary policy course in four decades in an effort to rein in inflation. The Fed looks close to achieving its goal, as the pace of both consumer and producer (wholesale) price growth eased further over the summer months and moved closer to the central bank’s target growth rate of 2%. This has likely given the lead bank the confidence to begin reducing the federal funds rate after holding it steady, in a range of 5.25% to 5.50%, for eight-consecutive Federal Open Market Committee (FOMC) meetings through July of this year.

Current wording

The economic advance came as the Federal Reserve began to reverse course from its most restrictive monetary policy stretch in four decades in an effort to rein in inflation. The Fed looks close to achieving its goal, as the pace of both consumer and producer (wholesale) price growth eased further over the summer and, to a lesser extent, fall months and moved closer to the central bank’s target growth rate of 2%. This gave the lead bank the confidence to reduce the federal funds rate by three quarters of a percentage point, to a range of 4.50% to 4.75%, through the November Federal Open Market Committee (FOMC) meeting.

Previous wording

The central bank also is keeping a close eye on the labor market, which is the other part of its dual mandate. Initial weekly unemployment claims in July and August were running at a level indicative of a tight labor market, but other metrics suggest that overall labor conditions are softening. These included a series of sharp downward revision to earlier job creation totals, a steady upward move in the nation’s unemployment rate ( from 3.7% in January to 4.3% at the end of July), and the Labor Department’s report stating that monthly payroll figures overstated job growth by roughly 818,000 in the 12 months that ended in March, 2024. Our sense is that the state of the job market going forward will play a big role in deciding just how aggressively the Federal Reserve will reduce the benchmark short-term interest rate over the remaining months of calendar 2024.

Current wording

The central bank also is keeping a watchful eye on the labor market, which is the other part of its dual mandate. Initial weekly unemployment claims were running at a level indicative of a tight labor market this fall, but other metrics suggest that overall conditions are softening a bit. Our sense is that the state of the job market going forward will play a big role in how much the Federal Reserve reduces the benchmark short-term interest rate in 2025. An interest-rate pause may also be in the cards during the early part of next year, if the economy continues to expand and the incoming Trump Administration’s pro-growth agenda—including tax cuts and regulation rollbacks—sparks a reacceleration in demand for goods and ultimately the pace of price growth.

Previous wording

In conclusion, the Federal Reserve appears to be inching closer to achieving its goal of taming inflation, which jumped to a 40-year high in June, 2022, without leading to a sharp deterioration in the U.S. labor market and pushing the economy into recession. This has provided a supportive backdrop for Corporate America and the U.S. stock market. In all, the business environment has held up well, with profit growth for S&P 500 companies averaging nearly 11% in the second quarter. This represented the highest year-over-year earnings growth for S&P 500 companies since the final quarter of 2021, and was likely needed to justify the Index’s high price-to-earnings multiple, which at the end of the second calendar quarter was above both its five- and 10-year averages.

Current wording

In all, the business environment held up very well during calendar 2024, with profit growth for S&P 500 companies averaging around 6% in the third quarter after rising by a low double-digit rate in the June period. This earnings growth was likely needed to justify the Index’s high price-to-earnings multiple, which at the end of November was above both its five- and 10-year averages.

Previous wording

Results of Operations for the Three Months Ended July 31, 2024 and 2023

Current wording

Results of Operations for the Three and Six Months Ended October 31, 2024 and 2023

Previous wording

During the three months ended July 31, 2024, the Company’s net income of $5,887,000, or $0.62 per share, was 21.2% above net income of $4,859,000, or $0.52 per share, for the three months ended July 31, 2023. For the three months ended July 31, 2024, operating expenses increased slightly above those during the three months ended July 31, 2023.

Current wording

During the three months ended October 31, 2024, the Company’s net income of $5,685,000, or $0.60 per share, was 63.0% above net income of $3,488,000, or $0.37 per share, for the three months ended October 31, 2023. During the three months ended October 31, 2024, the Company’s income from operations of $1,744,000 was 34.8% below income from operations of $2,674,000 during the three months ended October 31, 2023. For the three months ended October 31, 2024, operating expenses increased 2.3% above those during the three months ended October 31, 2023.

Previous wording

During the three months ended July 31, 2024, there were 9,419,938 average common shares outstanding as compared to 9,432,573 average common shares outstanding during the three months ended July 31, 2023.

Current wording

During the six months ended October 31, 2024, there were 9,419,006 average common shares outstanding as compared to 9,430,871 average common shares outstanding during the six months ended October 31, 2023.

Previous wording

During the three months ended July 31, 2024, new sales of print publications increased as a percent of the total gross sales as a result of an increase in new sales orders while conversion and renewal sales orders decreased from the prior fiscal year.

Current wording

During the six months ended October 31, 2024, new sales of print publications increased as a percent of the total gross sales as a result of an increase in new sales orders while conversion and renewal sales orders decreased from the prior fiscal year.

Previous wording

Unearned subscription revenue as of July 31, 2024 is 5.4% below April 30, 2024 and 2.5% below last fiscal year. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, direct mail campaigns and large Institutional Sales orders.

Current wording

Unearned subscription revenue as of October 31, 2024, is 6.4% below April 30, 2024 and 5.0% below October 31, 2023. A certain amount of variation is to be expected due to the volume of new orders and timing of long-term renewal contracts, direct mail campaigns and large Institutional Sales orders.

Previous wording

Investment periodicals and related publications revenues of $6,287,000 (excluding copyright fees) during the three months ended July 31, 2024 were 2.6% below publications revenues of $6,457,000 in the prior fiscal year. The Company continued actions to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. As fewer individual investors manage their own portfolios, particularly in volatile markets, total product line circulation at July 31, 2024, was 2.6% below total product line circulation at July 31, 2023.

Current wording

Investment periodicals and related publications revenues of $12,469,000 (excluding copyright fees) during the six months ended October 31, 2024 were 3.0% below publications revenues of $12,855,000 in the prior fiscal year. The Company continued actions to attract new subscribers through various marketing channels, primarily direct mail, e-mail, and by the efforts of our sales personnel. As fewer individual investors manage their own portfolios, particularly in volatile markets, total product line circulation at October 31, 2024, was 2.3% below total product line circulation at October 31, 2023.

Previous wording

Circulation also reflected management’s decision to reduce marketing efforts temporarily while the challenging stock market environment persisted during the fiscal year ended April 30, 2024. Total print circulation at July 31, 2024 was 2.2% below the total print circulation at July 31, 2023. During the three months ended July 31, 2024, print publication revenues of $2,233,000 decreased 6.3%, below print publication revenues of $2,382,000 during the corresponding period of 2024 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at July 31, 2024 was 3.1% below total digital circulation at July 31, 2023. During the three months ended July 31, 2024, digital revenues of $4,054,000 were slightly lower when compared to the prior fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.

Current wording

Circulation also reflected management’s decision to reduce marketing efforts temporarily while the challenging stock market environment persisted during the fiscal year ended April 30, 2024. Total print circulation at October 31, 2024 was 2.6% below the total print circulation at October 31, 2023. During the six months ended October 31, 2024, print publication revenues of $4,414,000 decreased 6.3%, below print publication revenues of $4,709,000 during the corresponding period of 2024 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at October 31, 2024 was 1.8% below total digital circulation at October 31, 2023. During the six months ended October 31, 2024, digital revenues of $8,055,000 were slightly lower when compared to the prior fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price “starter” products.

Previous wording

The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product,The Value Line Investment Survey, are also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the twelve month period ended July 31, 2024, the combined Ranking System “Rank 1 & 2” stocks’ increase of 18.4% compared favorably to the Russell 2000 Index’s increase of 12.5% during the comparable period.

Current wording

The Value Line Proprietary Ranks (the “Ranking System”), a component of the Company’s flagship product,The Value Line Investment Survey, are also utilized in the Company’s copyright business. The Ranking System is made available to EAM for specific uses without charge. During the twelve month period ended October 31, 2024, the combined Ranking System “Rank 1 & 2” stocks’ increase of 35.2% compared to the Russell 2000 Index’s increase of 31.6% during the comparable period.

Previous wording

During the three months ended July 31, 2024, copyright fees of $2,597,000 were 21.0% below those during the corresponding period in the prior fiscal year. These fees depend on the assets under management in financial products with contractual arrangements to use the Ranks and other Value Line proprietary information.

Current wording

During the six months ended October 31, 2024, copyright fees of $5,256,000 were 19.1% below those during the corresponding period in the prior fiscal year. These fees depend on the assets under management in financial products with contractual arrangements to use the Ranks and other Value Line proprietary information.

Previous wording

Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2024, were $4.60 billion, which is $1.13 billion, or 32.6%, above total assets of $3.47 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2023.

Current wording

Total assets in the Value Line Funds managed and/or distributed by EAM at October 31, 2024, were $4.78 billion, which is $1.47 billion, or 44.6%, above total assets of $3.31 billion in the Value Line Funds managed and/or distributed by EAM at October 31, 2023.

Previous wording

The gross fees and net income of EAM’s investment management operations during the three months ended July 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $7,376,000, 12b-1 fees and other fees of $1,942,000 and other net gains of $156,000. For the same period, total investment management fee waivers were $47,000 and 12b-1 fee waivers were $23,000. During the three months ended July 31, 2024, EAM's net income was $1,122,000 after giving effect to Value Line’s non-voting revenues interest of $3,680,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

Current wording

The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2024, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $15,342,000, 12b-1 fees and other fees of $3,952,000 and other net gains of $316,000. For the same period, total investment management fee waivers were $87,000 and 12b-1 fee waivers were $46,000. During the six months ended October 31, 2024, EAM's net income was $2,290,000 after giving effect to Value Line’s non-voting revenues interest of $7,726,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

Previous wording

The gross fees and net income of EAM’s investment management operations during the three months ended July 31, 2023, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $5,428,000, 12b-1 fees and other fees of $1,579,000 and other net gains of $117,000. For the same period, total investment management fee waivers were $48,000 and 12b-1 fee waivers were $25,000. During the three months ended July 31, 2023, EAM's net income was $482,000 after giving effect to Value Line’s non-voting revenues interest of $2,616,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

Current wording

The gross fees and net income of EAM’s investment management operations during the six months ended October 31, 2023, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $11,068,000, 12b-1 fees and other fees of $3,179,000 and other net gains of $103,000. For the same period, total investment management fee waivers were $162,000 and 12b-1 fee waivers were $48,000. During the six months ended October 31, 2023, EAM's net income was $1,030,000 after giving effect to Value Line’s non-voting revenues interest of $5,337,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

Previous wording

The Value Line equity and hybrid funds’ assets represent 99.2% and fixed income fund assets represent 0.8%, respectively, of total fund assets under management (“AUM”) as of July 31, 2024. At July 31, 2024, equity and hybrid AUM increased by 33.0% and fixed income AUM decreased by 5.1% as compared to last year at July 31, 2023.

Current wording

The Value Line equity and hybrid funds’ assets represent 99.3% and fixed income fund assets represent 0.7%, respectively, of total fund assets under management (“AUM”) as of October 31, 2024. At October 31, 2024, equity and hybrid AUM increased by 45.1% and fixed income AUM remained the same as last year at October 31, 2023.

Previous wording

Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $7,037,000 during the three months ended July 31, 2024, were slightly above those during the three months ended July 31, 2023.

Current wording

Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $14,134,000 during the six months ended October 31, 2024, were 1.4% above those during the six months ended October 31, 2023.

Previous wording

During the three months ended July 31, 2024, advertising and promotion expenses of $860,000 increased 11.4% as compared to the prior fiscal year. During the three months ended July 31, 2024, increases were primarily due to increases in third-party telemarketing & sales consulting.

Current wording

During six months ended October 31, 2024, advertising and promotion expenses of $1,722,000 increased 26.9% as compared to the prior fiscal year. During the six months ended October 31, 2024, increases were primarily due to increases in direct mail and third-party telemarketing & sales consulting.

Previous wording

During the three months ended July 31, 2024, salaries and employee benefits of $3,543,000 decreased 5.3% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from reduced employee headcount during fiscal years 2024 and 2025.

Current wording

During the six months ended October 31, 2024, salaries and employee benefits of $7,118,000 decreased 4.3% below the prior fiscal year, primarily due to decreases in salaries and employee benefits resulting from reduced employee headcount during fiscal years 2024 and 2025.

Previous wording

During the three months ended July 31, 2024, production and distribution expenses of $1,489,000 increased 6.7% above prior fiscal year primarily due to increases in third-party distribution and mailing expenses that resulted from outsourcing our internal distribution operations during the latter part of fiscal year 2024 and additional costs in third-party fulfillment software expenses. This increase was partially offset by decreases in production expenses to support the Company’s website and maintenance of the Company’s publishing application software and operating systems.

Current wording

During the six months ended October 31, 2024, production and distribution expenses of $2,938,000 increased 2.2% above prior fiscal year primarily due to increases in third-party distribution and mailing expenses that resulted from outsourcing our internal distribution operations in early May 2024, while ending VLDC activity at April 30, 2024.

Previous wording

During the three months ended July 31, 2024, office and administrative expenses of $1,145,000 increased 5.1% above the prior fiscal year, due to an increases that resulted from a software upgrade project to replace outdated software and costs of outsourced product billing functions that were previously handled internally by employees.

Current wording

During the six months ended October 31, 2024, office and administrative expenses of $2,356,000 increased 4.1% above the prior fiscal year, due to an increases that resulted from software upgrade and modernization project to replace outdated software, and the costs of product billing and other outsourced fulfillment functions outsourced, replacing an in-house group based at VLDC previously handled internally by employees.

Previous wording

During the three months ended July 31, 2024, 29.2% of total publishing revenues of $6,287,000 were derived from a single customer.

Current wording

During the six months ended October 31, 2024, 29.7% of total publishing revenues of $17,725,000 were derived from a single customer.

Previous wording

During the three months ended July 31, 2024, the Company’s total investment gains of $1,709,000 increased 126.4% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the three months ended July 31, 2024 and July 31, 2023 were $90,000 and $516,000, respectively.

Current wording

During the six months ended October 31, 2024, the Company’s total investment gains of $2,895,000 increased 993.5% above prior fiscal year, primarily derived from unrealized gains on equity securities and increases in the interest income. Proceeds from the sales of equity securities during the six months ended October 31, 2024 and October 31, 2023 were $3,075,000 and $999,000, respectively.

Previous wording

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2024 and July 31, 2023 were 24.50% and 23.87%, respectively. The higher effective tax rate during three months ended July 31, 2024 as compared to July 31, 2023, is primarily a result of an increase in the state and local income taxes from 3.10% to 3.69% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix among tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

Current wording

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the six months ended October 31, 2024 and October 31, 2023 were 24.65% and 23.76%, respectively. The higher effective tax rate during six months ended October 31, 2024 as compared to October 31, 2023, is primarily a result of an increase in the state and local income taxes from 3.03% to 3.86% due to changes in state and local income tax allocations. The Company's annualized overall effective tax rate fluctuates due to a number of factors, in addition to changes in tax law, including but not limited to an increase or decrease in the ratio of items that do not have tax consequences to pre-tax income, the Company's geographic profit mix among tax jurisdictions, taxation method adopted by each locality, new interpretations of existing tax laws and rulings and settlements with tax authorities.

Previous wording

On November 30, 2016, Value Line, Inc. received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. The sublease terms provide for a significant decrease (23% initially) in the Company’s annual rental expenditure taking into account free rent for the first six months of the sublease. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters, delaying the actual rent payments until November 2017.

Current wording

On November 30, 2016, Value Line, Inc., received consent from the landlord at 551 Fifth Avenue, New York, NY to the terms of a new sublease agreement between Value Line, Inc. and ABM Industries, Incorporated (“ABM” or the “Sublandlord”) commencing on December 1, 2016. Pursuant to the agreement Value Line leased from ABM 24,726 square feet of office space located on the second and third floors at 551 Fifth Avenue, New York, NY (“Building” or “Premises”) beginning on December 1, 2016 and ending on November 29, 2027. Base rent under the sublease agreement is $1,126,000 per annum during the first year with an annual increase in base rent of 2.25% scheduled for each subsequent year, payable in equal monthly installments on the first day of each month, subject to customary concessions in the Company’s favor and pass-through of certain increases in utility costs and real estate taxes over the base year. The Company provided a security deposit represented by a letter of credit in the amount of $469,000 in October 2016, which was reduced to $305,000 on October 3, 2021 and is to be fully refunded after the sublease ends. This Building became the Company’s new corporate office facility. The Company is required to pay for certain operating expenses associated with the Premises as well as utilities supplied to the Premises. Sublandlord provided Value Line a work allowance of $417,000 which accompanied with the six months free rent worth $563,000 was applied against the Company’s obligation to pay rent at our NYC headquarters.

Previous wording

On February 29, 2016, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC leased 24,110 square feet of warehouse and appurtenant office space located at 205 Chubb Ave., Lyndhurst, NJ (“Warehouse”) beginning on May 1, 2016 and ending on April 30, 2024 (“Lease”). Base rent under the Lease was $237,218 per annum. The Company provided a security deposit in cash in the amount of $32,146, which has been fully refunded. VLDC distributed Value Line’s print publications. The Company has outsourced to a U.S. facility the functions formerly performed at the Warehouse.

Current wording

From 2016 to 2024, the Company’s subsidiary VLDC and Seagis Property Group LP (the “Landlord”) entered into a lease agreement, pursuant to which VLDC leased 24,110 square feet of warehouse and appurtenant office space located at Lyndhurst, NJ (“Warehouse”). Base rent under the Lease was $237,218 per annum. The Company provided a security deposit in cash in the amount of $32,146, which has been fully refunded after the Company vacated the premises. VLDC distributed Value Line’s print publications from the Warehouse. The Company has outsourced to U.S. contractors the functions formerly performed at the Warehouse.

Previous wording

The Company had working capital, defined as current assets less current liabilities, of $50,381,000 as of July 31, 2024 and $48,770,000 as of April 30, 2024. These amounts include short-term unearned revenue of $15,991,000 and $15,764,000 reflected in total current liabilities at July 31, 2024 and April 30, 2024, respectively. Cash and short-term securities were $71,280,000 and $68,345,000 as of July 31, 2024 and April 30, 2024, respectively.

Current wording

The Company had working capital, defined as current assets less current liabilities, of $52,961,000 as of October 31, 2024 and $48,770,000 as of April 30, 2024. These amounts include short-term unearned revenue of $15,856,000 and $15,764,000 reflected in total current liabilities at October 31, 2024 and April 30, 2024, respectively. Cash and short-term securities were $72,045,000 and $68,345,000 as of October 31, 2024 and April 30, 2024, respectively.

Previous wording

The Company’s cash and cash equivalents include $15,248,000 and $4,136,000 at July 31, 2024 and April 30, 2024, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.

Current wording

The Company’s cash and cash equivalents include $10,985,000 and $4,136,000 at October 31, 2024 and April 30, 2024, respectively, invested primarily in commercial banks and in Money Market Funds at brokers, which operate under Rule 2a-7 of the 1940 Act and invest primarily in short-term U.S. government securities.

Previous wording

The Company had cash inflows from operating activities of $4,771,000 during the three months ended July 31, 2024, compared to cash inflows of $5,058,000 during the three months ended July 31, 2023. The change in cash inflows was a result of an increase in unrealized gains on equity securities and a decrease in accounts receivable from customers, offset by a smaller decline of unearned revenue from the same period last year.

Current wording

The Company had cash inflows from operating activities of $7,844,000 during the six months ended October 31, 2024, compared to cash inflows of $5,763,000 during the six months ended October 31, 2023. The change in cash inflows was a result of an increase in unrealized gains on equity securities and a decrease in accounts receivable from customers, offset by a smaller decline of unearned revenue from the same period last year.

Previous wording

The Company had cash inflows from investing activities of $9,473,000 during the three months ended July 31, 2024, compared to cash outflows from investing activities of $267,000 for the three months ended July 31, 2023, respectively. The significant cash inflows in investing activities for the three months ended July 31, 2024 was a result of the company’s conscious decisions to invest the proceeds from maturities of fixed income short-term securities in the company’s short-term U.S. Government money market funds at higher yields than U.S Treasury Bills.

Current wording

The Company had cash inflows from investing activities of $4,889,000 during the six months ended October 31, 2024, compared to cash outflows from investing activities of $3,808,000 for the six months ended October 31, 2023, respectively. The significant cash inflows in investing activities for the six months ended October 31, 2024 was a result of the company’s conscious decisions to invest the proceeds from maturities of fixed income short-term securities in the company’s short-term U.S. Government money market funds at higher yields than U.S Treasury Bills.

Previous wording

During the three months ended July 31, 2024, the Company’s cash outflows from financing activities were $3,006,000, compared to cash outflows from financing activities of $2,830,000 for the three months ended July 31, 2023. Quarterly dividend payments of $0.30 per share during fiscal year 2025 aggregated $2,827,000. Quarterly regular dividend payments of $0.28 per share during fiscal year 2024 aggregated $2,642,000.

Current wording

During the six months ended October 31, 2024, the Company’s cash outflows from financing activities were $5,830,000, compared to cash outflows from financing activities of $5,621,000 for the six months ended October 31, 2023. Quarterly dividend payments of $0.30 per share during fiscal year 2025 aggregated $5,652,000. Quarterly regular dividend payments of $0.28 per share during fiscal year 2024 aggregated $5,283,000.

Previous wording

At July 31, 2024 there were 9,418,074 common shares outstanding as compared to 9,430,529 common shares outstanding at July 31, 2023. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.

Current wording

At October 31, 2024 there were 9,418,074 common shares outstanding as compared to 9,426,983 common shares outstanding at October 31, 2023. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.

Previous wording

Management believes that the Company’s cash and other liquid asset resources used in its business together with future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months and beyond. Management does not anticipate making any borrowings during the next twelve months. As of July 31, 2024, retained earnings and liquid assets were $107,311,000 and $71,280,000, respectively. As of April 30, 2024, retained earnings and liquid assets were $104,249,000 and $68,345,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.

Current wording

Management believes that the Company’s cash and other liquid asset resources used in its business together with future cash flows from operations and from the Company’s non-voting revenues and non-voting profits interests in EAM will be sufficient to finance current and forecasted liquidity needs for the next twelve months and beyond. Management does not anticipate making any borrowings during the next twelve months. As of October 31, 2024, retained earnings and liquid assets were $110,170,000 and $72,045,000, respectively. As of April 30, 2024, retained earnings and liquid assets were $104,249,000 and $68,345,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.

Previous wording

The Company’s critical accounting policy relates to the valuation of EAM. There have been no material changes in our critical accounting policies during the three months ended July 31, 2024. For a complete discussion of our critical accounting policies, refer to “Critical Accounting Policies and Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2024.

Current wording

The Company’s critical accounting policy relates to the valuation of EAM. There have been no material changes in our critical accounting policies during the six months ended October 31, 2024. For a complete discussion of our critical accounting policies, refer to “Critical Accounting Policies and Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for fiscal year ended April 30, 2024.

Previous wording

We are a party to a lease contract which will result in cash payments to a lessor in future periods. Operating lease liabilities are included in our Consolidated Balance Sheets. Estimated payments of these liabilities in each of the next four fiscal years and thereafter are (in thousands): $1,075 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 in 2028 totaling $4,911.

Current wording

We are a party to a lease contract which will result in cash payments to a lessor in future periods. Operating lease liabilities are included in our Consolidated Balance Sheets. Estimated payments of these liabilities in each of the next four fiscal years and thereafter are (in thousands): $721 in 2025; $1,461 in 2026; $1,493 in 2027 and $882 in 2028 totaling $4,557.