valu20230131

valu20230131_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________________ to _________________________

Commission File Number: 0-11306

VALUE LINE, INC.

(Exact name of registrant as specified in its charter)

New York	13-3139843
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

551 Fifth Avenue, New York, New York	10176-0001
(Address of principal executive offices)	(Zip Code)

(212) 907-1500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each Exchange on which registered
Common stock, $0.10 par value per share	VALU	The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Yes ☐ No ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at January 31, 2023
Common stock, $0.10 par value per share	9,438,862 share

VALUE LINE, INC.

TABLE OF CONTENTS

		Page No.
	PART I. FINANCIAL INFORMATION

Item 1.	Consolidated Condensed Financial Statements

	Consolidated Condensed Balance Sheets as of January 31, 2023 and April 30, 2022	3

	Consolidated Condensed Statements of Income for the three and nine months ended January 31, 2023 and January 31, 2022	4

	Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended January 31, 2023 and January 31, 2022	5

	Consolidated Condensed Statements of Cash Flows for the nine months ended January 31, 2023 and January 31, 2022	6

	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2022, October 31, 2022 and January 31, 2023	7

	Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three months ended July 31, 2021, October 31, 2021 and January 31, 2022	8

	Notes to Consolidated Condensed Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	36

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

Item 4.	Mine Safety Disclosures	37

Item 5.	Other Information	37

Item 6.	Exhibits	38

	Signatures	39

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Balance Sheets

(in thousands, except share amounts)

	January 31,			April 30,
	2023			2022
	(unaudited)
Assets
Current Assets:
Cash and cash equivalents (including short term investments of $11,233 and $28,965, respectively)	$	11,861		$	29,703
Equity securities		17,986			17,647
Available-for-sale fixed income securities		30,930			10,475
Accounts receivable, net of allowance for doubtful accounts of $36 and $31, respectively		1,779			1,677
Prepaid and refundable income taxes		310			588
Prepaid expenses and other current assets		1,186			1,248
Total current assets		64,052			61,338

Long term assets:
Investment in EAM Trust		58,827			59,971
Restricted money market investments		305			305
Property and equipment, net		6,111			7,058
Capitalized software and other intangible assets, net		35			71
Total long term assets		65,278			67,405

Total assets	$	129,330		$	128,743

Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accrued liabilities	$	1,119		$	1,314
Accrued salaries		1,117			1,137
Dividends payable		2,360			2,378
Accrued taxes on income		-			2
Operating lease obligation-short term		1,317			1,239
Unearned revenue		16,531			17,688
Total current liabilities		22,444			23,758

Long term liabilities:
Unearned revenue		6,232			6,085
Operating lease obligation-long term		5,131			6,129
Deferred income taxes		13,297			13,126
Total long term liabilities		24,660			25,340
Total liabilities		47,104			49,098

Shareholders' Equity:
Common stock, $0.10 par value; authorized 30,000,000 shares; issued 10,000,000 shares		1,000			1,000
Additional paid-in capital		991			991
Retained earnings		94,588			87,645
Treasury stock, at cost (561,138 shares and 490,157 shares, respectively)		(14,454	)		(9,967	)
Accumulated other comprehensive income, net of tax		101			(24	)
Total shareholders' equity		82,226			79,645

Total liabilities and shareholders' equity	$	129,330		$	128,743

The accompanying notes are an integral part of these consolidated condensed financial statements.

Part I - Financial Information

Item 1. Financial Statements

Value Line, Inc.

Consolidated Condensed Statements of Income

(in thousands, except share & per share amounts)

(unaudited)

	For the Three Months Ended				For the Nine Months Ended
	January 31,				January 31,
	2023		2022		2023		2022

Revenues:
Investment periodicals and related publications	$	6,592	$	6,779	$	19,795	$	20,361
Copyright fees		3,375		3,479		10,182		10,036
Total publishing revenues		9,967		10,258		29,977		30,397

Expenses:
Advertising and promotion		703		722		2,247		2,445
Salaries and employee benefits		3,758		4,285		11,574		13,245
Production and distribution		1,371		1,269		3,829		3,796
Office and administration		1,151		1,107		3,614		3,034
Total expenses		6,983		7,383		21,264		22,520
Income from operations		2,984		2,875		8,713		7,877

Gain on forgiveness of PPP loan (see note 16)		-

SEC Form 10-Q filed by Value Line Inc.