Quarterly Report for Quarter Ending July 31, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement Regarding Forward-Looking Information

In this report, "Value Line," "we," "us," "our" refers to Value Line, Inc. and "the Company" refers to Value Line and its subsidiaries unless the context otherwise requires.

This report contains statements that are predictive in nature, depend upon or refer to future events or conditions (including certain projections and business trends) accompanied by such phrases as "believe", "estimate", "expect", "anticipate", "will", "intend" and other similar or negative expressions, that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, as amended. Actual results for Value Line, Inc. ("Value Line" or "the Company") may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the following:

	●	maintaining revenue from subscriptions for the Company's digital and print published products;
	●	changes in investment trends and economic conditions, including global financial issues;
	●	changes in Federal Reserve policies affecting interest rates and liquidity along with resulting effects on equity markets;
	●	stability of the banking system, including the success of U.S. government policies and actions in regard to banks with liquidity or capital issues, along with the associated impact on equity markets;
	●	continuation of orderly markets for equities and corporate and governmental debt securities;
	●	problems protecting intellectual property rights in Company methods and trademarks;
	●	problems protecting confidential information including customer confidential or personal information that we may possess;
	●	dependence on non-voting revenues and non-voting profits interests in EULAV Asset Management ("EAM" or "EAM Trust"), and accordingly on its key management, investment management, and sales personnel. EAM Trust is a Delaware statutory trust, which serves as the investment advisor to the Value Line Funds and engages in related distribution, marketing and administrative services;
	●	fluctuations in EAM's and third-party copyright assets under management due to evaluations by outside rating agencies, broadly based changes in the values of equity and debt securities, market sector variations, redemptions by investors and other factors including continuation of employment by key members of its management, investment management, and sales leadership;
	●	possible changes in the valuation of EAM's intangible assets from time to time;
	●	possible changes in future revenues or collection of receivables from significant customers;
	●	dependence on key executive and specialist personnel of signification supplier and other firms;
	●	risks associated with the outsourcing of certain functions, technical facilities, and operations, including in some instances outside the U.S.;
	●	risks of increased tariffs and other restrictions affecting the cost and availability of materials, equipment, and other necessary inputs to the Company's operations;
	●	competition in the fields of publishing, copyright and investment management, along with associated effects on the level and structure of prices and fees, and the mix of services delivered;
	●	the impact of government regulation on the Company's and EAM's businesses;
	●	federal and/or state legislative changes that might affect Value Line's business;
	●	the availability of free or low cost investment information through discount brokers or generally over the internet;
	●	the economic and other impacts of global political and military conflicts, which could affect investor interest in stock market investing or cause assets under management in EAM to fall or to rise;
	●	continued availability of generally dependable energy supplies, transportation facilities, digital data and telephone transmission infrastructure in the geographic areas in which the company and certain suppliers operate;
	●	terrorist attacks, cyber attacks and natural disasters;
	●	the need for changes in our business plans because of unexpected events that occur;
	●	widespread illnesses which may drastically affect markets, employment, and other economic conditions, and may have additional unpredictable impacts on employees, suppliers, customers, and operations;
	●	changes in prices and availability of materials and other inputs and services, such as financial data, freight and postage, required by the Company;
	●	risk of short-term or long-term catastrophic computer problems associated with legacy software systems which could interrupt regular publication schedules;
	●	risk of inadequacy of our insurance coverage to compensate for potential losses;
	●	potential impact of vendors' consolidation;
	●	other risks and uncertainties, including but not limited to the risks described in Part I, Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended April 30, 2025 and in Part II, Item 1A of this Quarterly Report on Form 10-Q for the period ended July 31, 2025; and other risks and uncertainties arising from time to time.

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.

Executive Summary of the Business

The Company's core business is producing investment publications and their underlying research and making available certain Value Line copyrights, Value Line trademarks and Value Line Proprietary Ranks and other proprietary information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. Value Line markets under well-known brands including Value Line®, the Value Line logo®, The Value Line Investment Survey®, Smart Research, Smarter Investing™ and The Most Trusted Name in Investment Research®. The name "Value Line" as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company. EULAV Asset Management Trust ("EAM") was established to provide the investment management services to the Value Line Funds, institutional and individual accounts and provide distribution, marketing, and administrative services to the Value Line® Mutual Funds ("Value Line Funds") and to provide distribution, marketing, and administrative services to the Value Line Funds.

The Company's target audiences within the investment research field are individual investors, colleges, libraries, and investment management professionals. Individuals come to Value Line for complete research in one package. Institutional licensees consist of corporations, financial professionals, colleges, and municipal libraries. Libraries and universities offer the Company's detailed research to their patrons and students. Investment management professionals use the research and historical information in their day-to-day businesses. The Company has a dedicated department that solicits institutional subscriptions.

Payments received for new and renewal subscriptions and the value of receivables for amounts billed to retail and institutional customers are recorded as unearned revenue until the order is fulfilled. As the orders are fulfilled, the Company recognizes revenue in equal installments over the life of the particular subscription. Accordingly, the subscription fees to be earned by fulfilling subscriptions after the date of a particular balance sheet are shown on that balance sheet as unearned revenue within current and long-term liabilities.

The investment publications and related publications (retail and institutional) and Value Line copyrights and Value Line Proprietary Ranks and other proprietary information consolidate into one segment called Publishing. The Publishing segment constitutes the Company's only reportable business segment.

Asset Management and Mutual Fund Distribution Businesses

Pursuant to the EAM Declaration of Trust, the Company maintains an interest in revenues of EAM and a portion of the residual profits of EAM but has no voting authority with respect to the election or removal of the trustees of EAM or control of its business. Although the Company does not have control over the operating and financial policies of EAM, the Company has a contractual right to receive its share of EAM's revenues and profits

The business of EAM is managed by its five individual trustees each owning 20% of the voting interest in EAM and by its officers subject to the direction of the trustees. The Company is entitled to receive from EAM 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 Holders of the remaining profits interests 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.

Business Environment

The U.S. economy delivered an uneven performance during the first half of 2025. The nation's gross domestic product (GDP) contracted by an annualized rate of 0.5% in the first quarter, with a surge in imports ahead of the announcement of tariffs on April 2nd accounting for a large portion of the decline. (Imports detract from the GDP calculation.) The economy then rebounded sharply in the second quarter, with a reversal in the level of imports adding significantly to the recorded gain of 3.3%. A recovery in personal consumption also contributed to the GDP advance. Still, the U.S. economy did slow during the first half of the year, with an overall annualized growth rate of 1.4%. That pace was half the rate recorded in calendar 2024.

Meanwhile, the inflation situation remains unsettled. After easing during the first few months of the calendar year, the pace of price growth reaccelerated over the late spring and into the summer. The Trump Administration tariffs-and resultant global trade uncertainty-did not have a material impact on the price of goods during the second quarter, with most of the inflation seen on the services side of the economy. However, there are concerns that businesses and consumers will feel the true impact of the tariffs on imported goods in the fall months. The U.S. consumer sector has proven quite resilient amid the higher prices, but recent sentiment readings suggest that, in the months ahead, most shoppers will avoid big-ticket items that have seen large price increases.

On a 12-month basis, the Personal Consumption Expenditures (PCE) Price Index and the core PCE, which excludes the more-volatile food and energy components, rose 2.6% and 2.9%, respectively, in July. The PCE Price Index, the assessment of inflation most closely watched by the Federal Reserve, showed that the rate of prices increases is still running above the central bank's target of 2.0%. The stubborn inflation backdrop notwithstanding, the Federal Reserve appears poised to resume cutting the federal funds rate, which is the target interest rate at which U.S. commercial banks lend their excess reserve balances to each other overnight. A softening job market, which included a significant deceleration in hiring over the summer months, and slowing economy are the impetuses for the Fed reversing monetary course.

Corporate America effectively managed the global trade uncertainty and the negative impact of increased tariffs on its cost structure during the second quarter of calendar 2025. The major companies were able to absorb a good deal of the higher input prices, but the question remains as to how long they will be able to do so before having to pass the additional costs onto the consumer. If businesses do raise prices, it could further hamper the Fed's ability to effectively tame inflation.

In all, the business environment has held up well amid the global trade uncertainty, highlighted by double-digit profit growth for the S&P 500 companies in the first half of 2025. The strong earnings performance provided support for stocks. However, stock valuations are now quite rich compared to historical norms, which leaves many issues vulnerable to selling on any disappointing news. It also is worth noting that when the Federal Reserve cuts rates to provide support for a slowing economy and labor market, it often sparks a volatile reaction from the stock market.

Results of Operations for the Three Months Ended July 31, 2025 and 2024

The following table illustrates the Company's key components of revenues and expenses.

		Three Months Ended July 31,
($ in thousands, except earnings per share)		2025				2024				Change
Income from operations		$	1,496			$	1,847				-19.0	%
Non-voting revenues and non-voting profits interests from EAM Trust			5,121				4,241				20.7	%
Income from operations plus non-voting revenues and non-voting profits interests from EAM Trust		$	6,617			$	6,088				8.7	%
Operating expenses		$	7,110			$	7,037				1.0	%
Investment gains/(losses)		$	2,019			$	1,709				18.1	%
Income before income taxes		$	8,636			$	7,797				10.8	%
Net income		$	6,460			$	5,887				9.7	%
Earnings per share		$	0.69			$	0.62				9.8	%

During the three months ended July 31, 2025, the Company's net income of $6,460,000, or $0.69 per share, was 9.7% above net income of $5,887,000, or $0.62 per share, for the three months ended July 31, 2024. During the three months ended July 31, 2025, the Company's income from operations of $1,496,000 was 19.0% below income from operations of $1,847,000 during the three months ended July 31, 2024. For the three months ended July 31, 2025, operating expenses increased 1.0% above those during the three months ended July 31, 2024.

During the three months ended July 31, 2025, there were 9,414,605 average common shares outstanding as compared to 9,419,938 average common shares outstanding during the three months ended July 31, 2024.

Total operating revenues

		Three Months Ended July 31,
($ in thousands)		2025				2024				Change
Investment publications:
Print		$	2,214			$	2,233				-0.9	%
Digital			3,926				4,054				-3.2	%
Total investment publications			6,140				6,287				-2.3	%
Copyright fees			2,466				2,597				-5.0	%
Total publishing revenues		$	8,606			$	8,884				-3.1	%

Within investment periodicals and related publications, subscription sales orders are derived from print and digital products. The following chart illustrates the changes in the sales orders associated with print and digital subscriptions.

Sources of subscription sales

		Three Months Ended July 31,
		2025								2024
		Print				Digital				Print				Digital
New Sales			12.7	%			11.6	%			18.2	%			9.2	%
Renewal & Conversion Sales			87.3	%			88.4	%			81.8	%			90.8	%
Total Gross Sales			100.0	%			100.0	%			100.0	%			100.0	%

During the three months ended July 31, 2025, 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.

		As of July 31,				As of April 30,				As of July 31,				Change
($ in thousands)		2025				2025				2024				July-25 vs. Apr-25				July-25 vs. July-24
Unearned subscription revenue (current and long-term liabilities)		$	21,556			$	22,290			$	21,076				-3.3	%			2.3	%

Unearned subscription revenue as of July 31, 2025, is 3.3% below April 30, 2025 and 2.3% above July 31, 2024. 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.

Investment publications revenues

Investment publications revenues of $6,140,000 (excluding copyright fees) during the three months ended July 31, 2025 were 2.3% below publications revenues of $6,287,000 in the prior fiscal year. The Company continued and increased 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, 2025, was 1.8% below total product line circulation at July 31, 2024.

Total print circulation at July 31, 2025 was 3.3% below the total print circulation at July 31, 2024. During the three months ended July 31, 2025, print publication revenues of $2,214,000 slightly decreased below print publication revenues of $2,233,000 during the corresponding period of 2025 because we deferred advertising in light of negative sentiment among prospective individual customers in a challenging market environment. Total digital circulation at July 31, 2025 was comparable to total digital circulation at July 31, 2024. During the three months ended July 31, 2025, digital revenues of $3,926,000 was 3.2% below last fiscal year. These figures reflect weak investor sentiment, likely temporary, and the ongoing shift from our print services to digital counterparts. Further, publishing revenue is fairly steady, despite the dip in print circulation. Sales of our higher-price, higher-profit, publications have been stronger than sales of lower price "starter" products.

Value Line serves primarily individual and professional investors in stocks, and other securities, who pay mostly on annual or multi-year subscription plans, for basic services or as much as $100,000 or more annually for comprehensive premium quality research, not obtainable elsewhere.

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, 2025, the combined Ranking System "Rank 1 & 2" stocks' increase of 7.9% compared to the Russell 2000 Index's decrease of 1.9% during the comparable period.

Copyright fees

During the three months ended July 31, 2025, copyright fees of $2,466,000 were 5.0% below those during the corresponding period in the prior fiscal year.

Investment management fees and services -(unconsolidated)

The Company receives non-voting revenues interest and non-voting profits interest from EAM, the investment adviser to the Value Line Mutual Funds.

Total assets in the Value Line Funds managed and/or distributed by EAM at July 31, 2025, were $5.01 billion, which is $0.41 billion, or 8.8%, above total assets of $4.60 billion in the Value Line Funds managed and/or distributed by EAM at July 31, 2024.

Value Line Mutual Funds

		As of July 31,
($ in millions)		2025				2024				Change
Equity and hybrid funds		$	4,974			$	4,565				9.0	%
Fixed income funds			35				37				-6.2	%
Total EAM managed net assets		$	5,009			$	4,602				8.8	%

EAM Trust - Results of operations before distribution to interest holders

The gross fees and net income of EAM's investment management operations during the three months ended July 31, 2025, before interest holder distributions, included total investment management fees earned from the Value Line Funds of $8,302,000, 12b-1 fees and other fees of $1,509,000 and other net gains of $204,000. For the same period, total investment management fee waivers were $41,000 and 12b-1 fee waivers were $22,000. During the three months ended July 31, 2025, EAM's net income was $1,266,000 after giving effect to Value Line's non-voting revenues interest of $4,488,000, but before distributions to voting profits interest holders and to the Company in respect of its 50% non-voting profits interest.

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.

As of July 31, 2025, one of the Value Line Funds has 12b-1 fees waivers in place, and four funds have investment management fee waivers in place amounting in aggregate to less than 1% of all EAM management fee revenues.

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 July 31, 2025. At July 31, 2025, equity and hybrid AUM increased by 9.0% and fixed income AUM decreased by 6.2% as compared to last year at July 31, 2024.

EAM - The Company's non-voting revenues and non-voting profits interests

The Company receives non-voting revenues interest and non-voting profits interest from EAM. The Company receives from EAM in an amount ranging from 41% to 55% of EAM's investment management fee revenues from its mutual fund business.

The Company recorded income from its non-voting revenues interest and its non-voting profits interest from EAM as follows:

		Three Months Ended July 31,
($ in thousands)		2025				2024				Change
Non-voting revenues interest		$	4,488			$	3,680				22.0	%
Non-voting profits interest			633				561				12.8	%
		$	5,121			$	4,241				20.7	%

Operating expenses

		Three Months Ended July 31,
($ in thousands)		2025				2024				Change
Advertising and promotion		$	717			$	860				-16.6	%
Salaries and employee benefits			3,616				3,543				2.1	%
Production and distribution			1,631				1,489				9.5	%
Office and administration			1,146				1,145				0.1	%
Total expenses		$	7,110			$	7,037				1.0	%

Expenses within the Company are categorized into advertising and promotion, salaries and employee benefits, production and distribution, office and administration. Operating expenses of $7,110,000 during the three months ended July 31, 2025, were 1.0% above those during the three months ended July 31, 2024.

Advertising and promotion

During three months ended July 31, 2025, advertising and promotion expenses of $717,000 decreased 16.6% as compared to the prior fiscal year. During the three months ended July 31, 2025, decreases were primarily due to decreases in direct mail and other promotion costs.

Salaries and employee benefits

During the three months ended July 31, 2025, salaries and employee benefits of $3,616,000 increased 2.1% above the prior fiscal year.

Production and distribution

During the three months ended July 31, 2025, production and distribution expenses of $1,631,000 increased 9.5% 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 our internal VLDC operation at April 30, 2024.

Office and administration

During the three months ended July 31, 2025, office and administrative expenses of $1,146,000 was comparable to the prior fiscal year.

Concentration

During the three months ended July 31, 2025, 28.7% of total publishing revenues of $8,606,000 were derived from a single customer.

Investment gains / (losses)

		Three Months Ended July 31,
($ in thousands)		2025				2024				Change
Dividend income		$	161			$	147				9.5	%
Interest income			514				545				-5.7	%
Investment gains/(losses) recognized on sale of equity securities during the period			2				-				N/A
Unrealized gains/(losses) recognized on equity securities held at the end of the period			1,342				950				41.3	%
Other			-				67				100.0	%
Total investment gains/(losses)		$	2,019			$	1,709				18.1	%

During the three months ended July 31, 2025, the Company's total investment gains of $2,019,000 increased 18.1% 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, 2025 and July 31, 2024 were $215,000 and $90,000, respectively.

Effective income tax rate

The overall effective income tax rates, as a percentage of pre-tax ordinary income for the three months ended July 31, 2025 and July 31, 2024 were 25.20% and 24.50%, respectively. The higher effective tax rate during three months ended July 31, 2025 as compared to July 31, 2024, is primarily a result of an increase in the state and local income taxes from 3.69% to 4.39% 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.

Lease Commitments

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.

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.

Liquidity and Capital Resources

The Company had working capital, defined as current assets less current liabilities, of $59,748,000 as of July 31, 2025 and $56,230,000 as of April 30, 2025. These amounts include short-term unearned revenue of $15,553,000 and $16,558,000 reflected in total current liabilities at July 31, 2025 and April 30, 2025, respectively. Cash and short-term securities were $81,196,000 and $77,391,000 as of July 31, 2025 and April 30, 2025, respectively.

The Company's cash and cash equivalents include $33,430,000 and $33,615,000 at July 31, 2025 and April 30, 2025, 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.

Cash from operating activities

The Company had cash inflows from operating activities of $5,560,000 during the three months ended July 31, 2025, compared to cash inflows of $4,771,000 during the three months ended July 31, 2024. 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.

Cash from investing activities

The Company had cash outflows from investing activities of $2,811,000 during the three months ended July 31, 2025, compared to cash inflows from investing activities of $9,473,000 for the three months ended July 31, 2024, respectively. The significant cash outflows in investing activities for the three months ended July 31, 2025 was a result of the company's conscious decisions in the previous year, 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 compared to this year.

Cash from financing activities

During the three months ended July 31, 2025, the Company's cash outflows from financing activities were $3,118,000, compared to cash outflows from financing activities of $3,006,000 for the three months ended July 31, 2024. Quarterly dividend payments of $0.325 per share during fiscal year 2026 aggregated $3,059,000. Quarterly regular dividend payments of $0.30 per share during fiscal year 2025 aggregated $2,827,000.

At July 31, 2025 there were 9,414,605 common shares outstanding as compared to 9,419,938 common shares outstanding at July 31, 2024. The Company expects financing activities to continue to include use of cash for dividend payments for the foreseeable future.

Debt and Liquid Assets

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 from 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, 2025, retained earnings and liquid assets were $116,802,000 and $81,196,000, respectively. As of April 30, 2025, retained earnings and liquid assets were $113,400,000 and $77,391,000, respectively. There are no off-balance-sheet arrangements, so none affect the interpretations of reported assets, liquidity, and debt.

Seasonality

Our publishing revenues are comprised of subscriptions which are generally annual subscriptions. Our cash flows from operating activities are minimally seasonal in nature, primarily due to the timing of customer payments made for orders and subscription renewals.

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update 2023-07, "Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for annual reporting periods after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 with such disclosures included in Note 16 to our Consolidated Financial Statements.

In December 2023, the FASB issued Accounting Standards Update 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold. ASU 2023-09 may be adopted on a prospective or retrospective basis and is effective for annual reporting periods beginning after December 15, 2024 with early adoption permitted. We are evaluating the impact of ASU 2023-09 on disclosures in our Consolidated Financial Statements.

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement-Reporting Comprehensive Income- Expense Disaggregation Disclosures, requiring all public business entities to provide additional disclosure of the nature of expenses include in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis, with early adoption permitted. We are currently evaluating the impact on our financial statement disclosures.

Critical Accounting Estimates and Policies

The Company prepares its Consolidated Financial Statements in accordance with Generally Accepted Accounting Principles as in effect in the United States (U.S. "GAAP"). The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent, and the Company evaluates its estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.

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, 2025. 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, 2025.

Contractual Obligations

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 three fiscal years and thereafter are (in thousands): $1,099 in 2026; $1,493 in 2027 and $882 in 2028 totaling $3,474.