----

----

|                                                   | 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.) |

|   | 220 East 42nd Street, New York, New York |   | 10017-5891 |   |
|--------|------------------------------------------|--------|------------|--------|
|   | (Address of principal executive offices) |   | (Zip Code) |   |

|             | Common Stock, $.10 par value |                                        |   |   | The NASDAQ Stock MarketSM |   |
|------------------|------------------------------|---------------------------------------------|--------|--------|---------------------------|--------|
| (Title of class) |                         | (Name of each exchange on which registered) |

| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | o Yes x No |
|-------------------------------------------------------------------------------------------------------------------------|------------|

| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | o Yes x No |
|------------------------------------------------------------------------------------------------------------------------------|------------|

| 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.                                                                                                                                                                                                                                                                                                                                          | x Yes o No |

| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted 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 and post such files).                                                                                                                                                                                                                                                                                                  | o Yes o No |

| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| amendment to this Form 10-K.                                                                                                                                                                                                                                                                                                                    | x |

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | o Yes x No |
|------------------------------------------------------------------------------------------------------------------|------------|

----

|    |                                                                                                               |   |   |
|---------|--------------------------------------------------------------------------------------------------------------------|--------|--------|
|    | PART I                                                                                                             |   |   |
| Item 1  | Business                                                                                                           |   | 5      |
| Item 1A | Risk Factors                                                                                                       |   | 14     |
| Item 1B | Unresolved Staff Comments                                                                                          |   | 17     |
| Item 2  | Properties                                                                                                         |   | 17     |
| Item 3  | Legal Proceedings                                                                                                  |   | 17     |
| Item 4  | Removed and Reserved                                                                                               |   | 21     |
|    |                                                                                                               |   |   |
|    | PART II                                                                                                            |   |   |
| Item 5  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 21     |
| Item 6  | Selected Financial Data                                                                                            |   | 23     |
| Item 7  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |   | 24     |
| Item 7A | Quantitative and Qualitative Disclosures About Market Risk                                                         |   | 40     |
| Item 8  | Financial Statements and Supplementary Data                                                                        |   | 41     |
| Item 9  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   | 43     |
| Item 9A | Controls and Procedures                                                                                            |   | 43     |
| Item 9B | Other Information                                                                                                  |   | 44     |
|    |                                                                                                               |   |   |
|    | PART III                                                                                                           |   |   |
| Item 10 | Directors, Executive Officers, and Corporate Governance                                                            |   | 44     |
| Item 11 | Executive Compensation                                                                                             |   | 46     |
| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   | 46     |
| Item 13 | Certain Relationships and Related Transactions and Director Independence                                           |   | 47     |
| Item 14 | Principal Accounting Fees and Services                                                                             |   | 48     |
|    |                                                                                                               |   |   |
|    | PART IV                                                                                                            |   |   |
| Item 15 | Exhibits and Financial Statement Schedules                                                                         |   | 48     |

----

|   | ● | dependence on key personnel; |
|--------|---------|------------------------------|

|   | ● | maintaining revenue from subscriptions for the Company’s published products; |
|--------|---------|------------------------------------------------------------------------------------|

|   | ● | protection of intellectual property rights; |
|--------|---------|---------------------------------------------|

|   | ● | changes in market and economic conditions, including global financial issues; |
|--------|---------|-------------------------------------------------------------------------------|

|   | ● | dependence on revenue and profits from EULAV Asset Management Trust, a Delaware business trust (“EAM”), which provides investment management and distribution, marketing and administrative services to the Value Line branded mutual funds; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | fluctuations in EAM’s assets under management due to broadly based changes in the values of equity and debt securities, redemptions by investors and other factors; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | competition in the fields of publishing, copyright data and investment management; |
|--------|---------|------------------------------------------------------------------------------------|

|   | ● | the impact of government regulation on the Company’s and EAM’s business and the uncertainties of litigation and regulatory proceedings; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | availability of free or low cost investment data through discount brokers or generally over the internet; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | ● | the risk that, while the Company believes that the restructuring transaction that closed on December 23, 2010, achieved compliance with the requirements of the order issued by the Securities and Exchange Commission on November 4, 2009, the Company might be required to take additional steps which could adversely affect the Company’s results of operations or the Company’s financial condition; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | terrorist attacks and natural disasters; and                                                                                                                                        |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | other risks and uncertainties, including but not limited to the risks described in Item 1A, “Risk Factors” and other risks and uncertainties arising from time to time. |

----

----

Part I

Item 1. BUSINESS.

----

|   | ● | Comprehensive reference periodical publications |
|--------|---------|-------------------------------------------------|

|   | ● | Targeted, niche periodical newsletters |
|--------|---------|----------------------------------------|

|   | ● | Investment analysis software |
|--------|---------|------------------------------|

|   | ● | Current and historical financial databases |
|--------|---------|--------------------------------------------|

----

----

----

----

----

| Total net assets of the Value Line Funds at April 30, 2011, were: |   |           |      |
|-------------------------------------------------------------------|--------|----------------|-----------|
|                                                              |   |           |      |
|                                                              |   | (in thousands) |      |
|                                                              |   |           |      |
| Value Line Strategic Asset Management Trust                       |   | $              | 370,898   |   |
| Value Line Income and Growth Fund, Inc.                           |   |           | 341,346   |   |
| Value Line Premier Growth Fund, Inc.                              |   |           | 336,485   |   |
| Value Line Emerging Opportunities Fund, Inc.                      |   |           | 325,331   |   |
| Value Line Larger Companies Fund, Inc.                            |   |           | 214,877   |   |
| Value Line Centurion Fund, Inc.                                   |   |           | 149,840   |   |
| Value Line Fund, Inc.                                             |   |           | 115,813   |   |
| Value Line U.S. Government Money Market Fund, Inc.                |   |           | 89,356    |   |
| Value Line U.S. Government Securities Fund, Inc.                  |   |           | 81,349    |   |
| Value Line Tax Exempt Fund, Inc.                                  |   |           | 76,860    |   |
| Value Line Asset Allocation Fund, Inc.                            |   |           | 64,520    |   |
| Value Line Aggressive Income Trust                                |   |           | 34,604    |   |
| Value Line Convertible Fund, Inc.                                 |   |           | 27,401    |   |
| Value Line New York Tax Exempt Trust                              |   |           | 16,313    |   |
|                                                              |   | $              | 2,244,993 |   |

----

|   | 1. | VLP is the publishing unit for the investment related periodical publications and copyright data. |
|--------|----|---------------------------------------------------------------------------------------------------|

|   | 2. | VAA places advertising on behalf of the Company’s publications. |
|--------|----|-----------------------------------------------------------------------|

|   | 3. | CPWR provides subscription fulfillment services and subscriber relations services for VLP publications. |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | 4. | VLDC primarily handles all of the mailings of the publications to VLP’s subscribers.  Additionally, VLDC provides office space for Compupower’s subscriber relations and data processing departments, and provides a disaster recovery site for the New York operations. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                                                            |   | April 30, |   |
|--------|-----------------------------------------------------------------|--------|-----------|--------|
|   |                                                            |   |      |   |   |   |   |   |   |   |
|   |                                                            |   | 2011      |   |   | 2010 |   |   | 2009 |   |
|   |                                                            |   |      |   |   | (in thousands) |   |   |   |   |
|   |                                                            |   |      |   |   |   |   |   |   |   |
|   | Investment Periodicals, Related Publications and Copyright Data |   | $         | 11,827 |   |   | $ | 12,734 |   |   | $ | 11,867 |   |
|   |                                                            |   |      |   |   |   |   |   |   |   |   |   |   |
|   | Investment Management (1)                                       |   |      | -      |   |   |   | 9,397 |   |   |   | 22,914 |   |
|   |                                                            |   |      |   |   |   |   |   |   |   |   |   |   |
|   | Corporate Assets (2)                                            |   |      | 75,976 |   |   |   | 37,854 |   |   |   | 82,774 |   |
|   |                                                            |   | $         | 87,803 |   |   | $ | 59,985 |   |   | $ | 117,555 |   |

|   | (1) | Although, through its non-voting revenues and profits interests in EAM, the Company retains a substantial interest in the cash flows of the investment management business subsequent to the completion of the Restructuring Transaction on December 23, 2010, this business is no longer considered a reportable business segment. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Corporate assets at April 30, 2011 include Value Line’s non-voting interest in revenues and non-voting interest in profits in EAM valued under the equity method of accounting at $55,853,000. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                 |   | Age      |   | Principal Occupation or Employment                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------------------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |   |     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Howard A. Brecher    |   | 57       |   | Acting Chairman and Acting Chief Executive Officer since November 2009; Chief Legal Officer; Vice President; Secretary until January 2010; Vice President and Secretary of each of the Value Line Funds from June 2008 to December 2010; Secretary of  EAM LLC from February 2009 until December 2010; Director and General Counsel of AB&Co.  Mr. Brecher has been an officer of the Company for more than 18 years. |
|                 |   |     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| John A. McKay        |   | 52       |   | Chief Financial Officer since December 2010; Director of Accounting from October 2010 to December 2010.  Prior to joining Value Line, Mr. McKay was Senior Vice President and Chief Financial Officer of Mitsui Foods, Inc. from April 2007 to December 2009.  From March 2002 to March 2007 he was Executive Vice President and Chief Financial Officer of Langenscheidt Publishing Group.                               |
|                 |   |     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Stephen R. Anastasio |   |  52 |   | Vice President since December 2010; Director since February 2010; Treasurer since 2005; Treasurer of each of the Value Line Funds from September 2005 to August 2008. Mr. Anastasio has been an officer of the Company for more than 20 years.                                                                                                                                                                                                |

----

ITEM 1A.  RISK FACTORS

----

----

----

Item 1B. UNRESOLVED STAFF COMMENTS.

Item 2. PROPERTIES.

Item 3. LEGAL PROCEEDINGS.

----

----

----

|   | ● | Mr. A. Short, the first Chairman of the Trustees of EAM, is a former practicing attorney with an extensive background in the mutual funds industry and interests in private equity firms.  He served as (executive) Vice Chairman of W. P. Stewart & Co., Inc. and currently serves as an independent director and Audit Chair of an unrelated funds group. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. A. Aronovitz is an experienced accountant and financial executive and served as interim chief financial officer of Comverse Technologies, a public company, after being appointed to the position following a securities investigation. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. R. Berenger is a highly experienced compliance official, principally in the brokerage industry. |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | ● | Mr. R. Rice was a practicing attorney and is currently the Managing Partner of Tangent Capital and also serves on the boards of several private technology and media companies. Mr. Rice has succeeded Mr. Sirota as a Trustee of EAM (Mr. Sirota was one of the five initial individual Trustees of EAM and subsequently resigned).  Mr. Rice anticipates acquiring Mr. Sirota’s non-voting profits interest. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. M. Appel was the Chief Financial Officer of the Company from April 2008 to December 2010 and from September 2005 to November 2007; President of each of the Value Line Funds since June 2008;  Director of each of the Value Line Funds since December 2010;  President of EAM LLC and ESI from February 2009 until the completion of the Restructuring Transaction on December 23, 2010; Treasurer of Value Line from June to September 2005; and Chief Financial Officer, XTF Asset Management from November 2007 to April 2008. Mr. Appel served as a Director on the Company’s Board from February 2010 to December 2010. He earned his MBA from New York University. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 4. (Removed and Reserved)

Part II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

| Quarter Ended                |   |     High |   | Low    |   |  Dividend Declared Per Share |
|------------------------------|--------|------------------------------|--------|--------|--------|-----------------------------------|
|                         |   |                         |   |   |   |                              |
|   April 30, 2011   |   | $14.04                       |   | $13.87 |   | $0.20                             |
|   January 31, 2011 |   | $13.17                       |   | $12.95 |   | $0.20                             |
|   October 31, 2010 |   | $17.45                       |   | $16.46 |   | $2.00                             |
|   July 31, 2010    |   | $14.78                       |   | $13.80 |   | $0.20                             |
|                         |   |                         |   |   |   |                              |
|   April 30, 2010   |   | $27.25                       |   | $19.86 |   | $3.00                             |
|   January 31, 2010 |   | $28.48                       |   | $24.33 |   | $0.20                             |
|   October 31, 2009 |   | $32.85                       |   | $29.29 |   | $0.20                             |
|   July 31, 2009    |   | $36.52                       |   | $30.70 |   | $0.20                             |
|                         |   |                         |   |   |   |                              |

----

| ISSUER PURCHASES OF EQUITY SECURITIES                  |   |
|--------------------------------------------------------|--------|
| Period                                                 |   | (a) Total Number of Shares (or Units) Purchased |   |   | (b) Average Price Paid per Share (or Unit) |   |   | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |   |   | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |   |
|   February 1, 2011 through February 28, 2011 |   |   | 2,421 |   |   | $13.67 |   |   |   | 2,421 |   |   | $3,110,118 |   |
|   March 1, 2011 through March 31, 2011       |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|   April 1, 2011 through April 30, 2011       |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|   Total                                      |   |   | 2,421 |   |   | $13.67 |   |   |   | 2,421 |   |   | $3,110,118 |   |

|   | (1) | All shares represent shares repurchased pursuant to authorization of the Board of Directors.  In January 2011 the Company’s Board of Directors authorized the repurchase of shares of the Company’s common stock, at such times and prices as management determined to be advisable, up to an aggregate purchase price of $3,200,000.  The repurchase authorization extends through January 15, 2012 unless extended by the Board of Directors. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 6. SELECTED FINANCIAL DATA.

|                                                             |   |                                                          |      |
|------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|
|                                                             |   | Years ended April 30,                                         |      |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   | 2011                                                          |      |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                             |   | (1)                                                           |      |   | (1) |   |   |   |   |   |   |   |   |   |   |
|                                                             |   | (in thousands, except number of shares and per share amounts) |      |
|   Revenues:                                            |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment periodicals and related publications             |   | $                                                             | 34,406    |   |   | $ | 35,965 |   |   | $ | 39,935 |   |   | $ | 42,791 |   |   | $ | 45,619 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Copyright data fees                                              |   |                                                          | 3,568     |   |   |   | 3,243 |   |   |   | 4,333 |   |   |   | 7,066 |   |   |   | 6,861 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment management fees and services                          |   |                                                          | 10,693    |   |   |   | 18,932 |   |   |   | 24,973 |   |   |   | 32,821 |   |   |   | 31,155 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total revenues                                       |   | $                                                             | 48,667    |   |   | $ | 58,140 |   |   | $ | 69,241 |   |   | $ | 82,678 |   |   | $ | 83,635 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income/(loss) from operations                        |   | $                                                             | 8,533     |   |   | ($ | 32,190 | ) |   | $ | 24,223 |   |   | $ | 34,450 |   |   | $ | 35,635 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gain from deconsolidation of subsidiaries            |   | $                                                             | 50,510    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Revenues and profits interests in EAM Trust          |   | $                                                             | 2,355     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income from securities transactions, net             |   | $                                                             | 65        |   |   | $ | 837 |   |   | $ | 11,625 |   |   | $ | 6,294 |   |   | $ | 4,867 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net income/(loss)                                    |   | $                                                             | 37,782    |   |   | ($ | 23,188 | ) |   | $ | 22,953 |   |   | $ | 25,550 |   |   | $ | 24,607 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings/(loss) per share, basic and fully diluted   |   | $                                                             | 3.79      |   |   | ($ | 2.32 | ) |   | $ | 2.30 |   |   | $ | 2.56 |   |   | $ | 2.47 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total assets                                         |   | $                                                             | 87,803    |   |   | $ | 59,985 |   |   | $ | 117,555 |   |   | $ | 137,953 |   |   | $ | 128,963 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Weighted average number of common shares outstanding |   |                                                          | 9,980,000 |   |   |   | 9,981,600 |   |   |   | 9,981,600 |   |   |   | 9,981,600 |   |   |   | 9,981,600 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash dividends declared per share                    |   | $                                                             | 2.60      |   |   | $ | 3.60 |   |   | $ | 1.50 |   |   | $ | 1.20 |   |   | $ | 1.15 |   |
|                                                             |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (1) | See Item 1, “Restructuring of Asset Management and Mutual Fund Distribution Businesses”, Item 3, “Legal Proceedings” and Item 7, “Management Discussion and Analysis”. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

|   | ● | Executive Summary of the Business |
|--------|---------|-----------------------------------|

|   | ● | Results of Operations |
|--------|---------|-----------------------|

|   | ● | Liquidity and Capital Resources |
|--------|---------|---------------------------------|

|   | ● | Critical Accounting Estimates and Policies |
|--------|---------|--------------------------------------------|

----

----

|   Year Ended April 30,                             |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | Percentage Change |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------|--------|
|   (in thousands, except earnings/(loss) per share) |   |   |   |   |   |   |   |   |   |   | 11 vs. 10         |   | 10 vs. 09 |
|   Earnings/(loss) per share                        |   | $      | 3.79   |   |   | ($     | 2.32   | )      |   | $      | 2.30              |   |   |   | 263.4 | % |   |   | -200.9 | % |
|   Net income/(loss)                                |   | $      | 37,782 |   |   | ($     | 23,188 | )      |   | $      | 22,953            |   |   |   | 262.9 | % |   |   | -201.0 | % |
|   Operating income/(loss)                          |   | $      | 8,533  |   |   | ($     | 32,190 | )      |   | $      | 24,223            |   |   |   | 126.5 | % |   |   | -232.9 | % |
|   Operating expenses                               |   | $      | 40,134 |   |   | $      | 90,330 |   |   | $      | 45,018            |   |   |   | -55.6 | % |   |   | 100.7 | % |
|                                                    |   |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |
|   Gain from de-consolidation of subsidiaries       |   | $      | 50,510 |   |   |   | -      |   |   |   | -                 |   |   |   | n/a |   |   |   | n/a |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |
|   Revenues and profits interests from EAM          |   | $      | 2,355  |   |   |   | -      |   |   |   | -                 |   |   |   | n/a |   |   |   | n/a |   |
|   Income from securities transactions, net         |   | $      | 65     |   |   | $      | 837    |   |   | $      | 11,625            |   |   |   | -92.2 | % |   |   | -92.8 | % |

----

|                                            |   | Operating revenues and % of total by year |   |
|-------------------------------------------------|--------|-------------------------------------------|--------|
| Year Ended April 30,                            |   | 2011                                      |   |   | 2010 |   |   | 2009 |   |   | Percentage Change |   |
|                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (in thousands)                                  |   | $$                                        |   |   | % |   |   | $$ |   |   | % |   |   | $$ |   |   | % |   |   | 11 vs. 10 |   |        10 vs. 09 |   |
| Investment periodicals and related publications |   | $                                         | 34,406 |   |   |   | 70.7 | % |   | $ | 35,965 |   |   |   | 61.9 | % |   | $ | 39,935 |   |   |   | 57.7 | % |   |   | -4.3 | % |   |   |   | -9.9 | % |
| Copyright data fees                             |   | $                                         | 3,568  |   |   |   | 7.3 | % |   | $ | 3,243 |   |   |   | 5.6 | % |   | $ | 4,333 |   |   |   | 6.3 | % |   |   | 10.0 | % |   |   |   | -25.2 | % |
| Investment management fees and services         |   | $                                         | 10,693 |   |   |   | 22.0 | % |   | $ | 18,932 |   |   |   | 32.5 | % |   | $ | 24,973 |   |   |   | 36.0 | % |   |   | -43.5 | % |   |   |   | -24.2 | % |
| Total Operating Revenues                        |   | $                                         | 48,667 |   |   |   |   |   |   | $ | 58,140 |   |   |   |   |   |   | $ | 69,241 |   |   |   |   |   |   |   | -16.3 | % |   |   |   | -16.0 | % |

|                                                          |   |  Subscription Revenues |   |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|
|                                                          |   |                        |   |   |   |   |
| Year Ended April 30,                                          |   | 2011                        |   |   | 2010   |   |   | 2009 |   |   | Percentage Change |
| (in thousands)                                                |   |                        |   |   |   |   |   |   |   |   | 11 vs. 10 |   | 10 vs. 09 |
| Print publication revenues                                    |   | $                           | 21,625 |   |   | $      | 23,309 |   |   | $ | 27,089 |   |   |   | -7.2 | % |   |   | -14.0 | % |
| Electronic publication revenues                               |   |                        | 12,781 |   |   |   | 12,656 |   |   |   | 12,846 |   |   |   | 1.0 | % |   |   | -1.5 | % |
| Total investment periodicals and related publications revenue |   | $                           | 34,406 |   |   | $      | 35,965 |   |   | $ | 39,935 |   |   |   | -4.3 | % |   |   | -9.9 | % |

----

| Sources of Subscription Revenues |   |
|----------------------------------|--------|
|                             |   |   |   |   |   |   |   |   |   |
|                             |   | 2011 |   |   | 2010 |   |   | 2009 |   |
|                             |   | Print |   | Electronic |   | Print |   | Electronic |   | Print |   | Electronic |
| New Subscribers                  |   |   | 11.0 | % |   |   | 29.3 | % |   |   | 10.6 | % |   |   | 31.0 | % |   |   | 11.0 | % |   |   | 32.8 | % |
| Renewals                         |   |   | 89.0 | % |   |   | 70.7 | % |   |   | 89.4 | % |   |   | 69.0 | % |   |   | 89.0 | % |   |   | 67.2 | % |
| Total Subscribers                |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

| At April 30,                            |   | 2011   |    |   | 2010   |   |    | 2009   |   |   | Percentage Change |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-------------------|
| (in thousands)                          |   |   |    |   |   |   |    |   |   |   | 11 vs. 10         |   | 10 vs. 09 |
|                                    |   |   |    |   |   |   |    |   |   |   |              |   |   |   |   |   |   |   |   |   |
| Unearned revenues (short and long term) |   |   | $27,001 |   |   |   | $27,177 |   |   |   | $28,997           |   |   |   | -0.6 | % |   |   | -6.3 | % |

----

----

| Asset Flows                                                                |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |
|----------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------|---------------|--------|--------|--------------|--------|
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |
| For the Years Ended April 30,                                              |   | 2011   |          |   | 2010   |   |          | 2009   |   |   | 2011 vs.2010  |   |   | 2010 vs.2009 |   |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |
| Value Line equity fund assets (excludes variable annuity)— beginning |   | $      | 1,446,104,954 |   |   | $      | 1,445,168,855 |   |   | $      | 2,499,824,428 |   |   |         | 0.1    | % |   |   | -42.2 | % |
| Sales/inflows                                                              |   |   | 74,397,936    |   |   |   | 119,362,892   |   |   |   | 400,940,827   |   |   |         | -37.7  | % |   |   | -70.2 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Redemptions/outflows                                                       |   |   | (370,072,264  | )      |   |   | (516,461,559  | )      |   |   | (575,670,435  | )      |   |         | -28.3  | % |   |   | -10.3 | % |
| Dividend and Capital Gain Distributions                                    |   |   | (2,683,333    | )      |   |   | (6,832,954    | )      |   |   | (35,888,690   | )      |   |         | -60.7  | % |   |   | -81.0 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Market value change                                                        |   |   | 250,625,095   |   |   |   | 404,867,720   |   |   |   | (844,037,275  | )      |   |         | -38.1  | % |   |   | 148.0 | % |
| Value Line equity fund assets (non-variable annuity)— ending         |   |   | 1,398,372,388 |   |   |   | 1,446,104,954 |   |   |   | 1,445,168,855 |   |   |         | -3.3   | % |   |   | 0.1 | % |
| Variable annuity fund assets — beginning                             |   | $      | 495,004,319   |   |   | $      | 453,958,992   |   |   | $      | 808,054,829   |   |   |         | 9.0    | % |   |   | -43.8 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Sales/inflows                                                              |   |   | 15,170,774    |   |   |   | 42,428,972    |   |   |   | 127,997,022   |   |   |         | -64.2  | % |   |   | -66.9 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Redemptions/outflows                                                       |   |   | (78,046,318   | )      |   |   | (82,785,322   | )      |   |   | (113,787,522  | )      |   |         | -5.7   | % |   |   | -27.2 | % |
| Dividend and Capital Gain Distributions                                    |   |   | (3,815,539    | )      |   |   | (32,487,231   | )      |   |   | (112,587,503  | )      |   |         | -88.3  | % |   |   | -71.1 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Market value change                                                        |   |   | 92,425,046    |   |   |   | 113,888,908   |   |   |   | (255,717,834  | )      |   |         | -18.8  | % |   |   | 144.5 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Variable annuity fund assets — ending                                |   |   | 520,738,282   |   |   |   | 495,004,319   |   |   |   | 453,958,992   |   |   |         | 5.2    | % |   |   | 9.0 | % |
| Fixed income fund assets — beginning                                 |   | $      | 249,868,326   |   |   | $      | 248,927,635   |   |   | $      | 266,172,054   |   |   |         | 0.4    | % |   |   | -6.5 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Sales/inflows                                                              |   |   | 27,627,007    |   |   |   | 26,239,120    |   |   |   | 32,599,409    |   |   |         | 5.3    | % |   |   | -19.5 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Redemptions/outflows                                                       |   |   | (44,038,991   | )      |   |   | (36,388,184   | )      |   |   | (33,028,853   | )      |   |         | 21.0   | % |   |   | 10.2 | % |
| Dividend and Capital Gain Distributions                                    |   |   | (1,358,551    | )      |   |   | (8,277,052    | )      |   |   | (378,440      | )      |   |         | -83.6  | % |   |   | 2087.2 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Market value change                                                        |   |   | 4,428,430     |   |   |   | 19,366,807    |   |   |   | (16,436,535   | )      |   |         | -77.1  | % |   |   | 217.8 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Fixed income fund assets — ending                                    |   |   | 236,526,222   |   |   |   | 249,868,326   |   |   |   | 248,927,635   |   |   |         | -5.3   | % |   |   | 0.4 | % |
|                                                                       |   |   |          |   |   |   |          |   |   |   |          |   |   |         |   |   |   |   |   |   |
| Money market fund assets — ending                                    |   |   | 89,356,239    |   |   |   | 132,102,912   |   |   |   | 181,573,202   |   |   |         | -32.4  | % |   |   | -27.2 | % |
| Assets under management — ending                                     |   | $      | 2,244,993,131 |   |   | $      | 2,323,080,511 |   |   | $      | 2,329,628,685 |   |   |         | -3.4   | % |   |   | -0.3 | % |

----

| Fund Categories                                      |   | Aggregate AssetLevels |           |   | Percentage of Assetsin Category |   |   | ShareholderAccounts |   |   | Percentage of ShareholderAccounts in Category |   |
|------------------------------------------------------|--------|-----------------------|----------------|--------|---------------------------------|--------|--------|---------------------|--------|--------|-----------------------------------------------|--------|
| Guardian (SAM and Centurion Funds)                   |   |                  | $520,738,281   |   |                            |   | 23%    |                |   |   | 29,308                                        |   |   |   | 26% |   |
| Value Line Funds direct accounts & other dealers |   |                  | $860,924,868   |   |                            |   | 38%    |                |   |   | 40,514                                        |   |   |   | 37% |   |
|  Top five dealer platforms                      |   |                  | $863,329,982   |   |                            |   | 39%    |                |   |   | 41,109                                        |   |   |   | 37% |   |
|  Total                                          |   |                  | $2,244,993,131 |   |                            |   | 100%   |                |   |   | 110,931                                       |   |   |   | 100% |   |

----

----

| Year Ended April 30,      |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | Percentage Change |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------|--------|
| (in thousands)            |   |   |   |   |   |   |   |   |   |   | 11 vs. 10         |   |   | 10 vs. 09 |   |
| Advertising and promotion |   |   | $6,673 |   |   |   | $9,346 |   |   |   | $10,874           |   |   |   | -28.6% |   |   |   | -14.1% |   |

| Year Ended April 30,           |   | 2011   |    |   | 2010   |   |    | 2009   |   |   | Percentage Change |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-------------------|--------|
| (in thousands)                 |   |   |    |   |   |   |    |   |   |   | 11 vs. 10         |   |   | 10 vs. 09 |   |
| Salaries and employee benefits |   |   | $17,242 |   |   |   | $16,314 |   |   |   | $17,676           |   |   |   | 5.7% |   |   |   | -7.7% |   |

----

| Year Ended April 30,        |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | Percentage Change |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------|--------|
| (in thousands)              |   |   |   |   |   |   |   |   |   |   | 11 vs. 10         |   |   | 10 vs. 09 |   |
| Production and distribution |   |   | $4,718 |   |   |   | $5,244 |   |   |   | $5,868            |   |   |   | -10.0% |   |   |   | -10.6% |   |

| Year Ended April 30,      |   | 2011   |   |   | 2010   |   |    | 2009   |   |   | Percentage Change |   |
|---------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|-------------------|--------|
| (in thousands)            |   |   |   |   |   |   |    |   |   |   | 11 vs. 10         |   |   | 10 vs. 09 |   |
| Office and administration |   |   | $9,504 |   |   |   | $11,320 |   |   |   | $10,600           |   |   |   | -16.0% |   |   |   | 6.8% |   |

| Year Ended April 30,              |   | 2011   |   |   | 2010   |   |                                         | 2009   |   |   | Percentage Change                            |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|----------------------------------------------|--------|--------|--------|----------------------------------------------|--------|
| (in thousands)                    |   |   |   |   |   |   |                                         |   |   |   | 11 vs. 10                                    |   |   | 10 vs. 09 |   |
|                              |   |   |   |   |   |   |                                         |   |   |   |                                         |   |   |   |   |   |   |   |   |   |
| Expenses related to restructuring |   |   | $3,764 |   |   |   |         - |   |   |   |         - |   |   |   | n/a |   |   |   | n/a |   |

----

|                                     |   | Investment Periodicals, Publishing & Copyright Data |   |   | Investment Management         |   |
|------------------------------------------|--------|---------------------------------------------------------|--------|--------|-------------------------------|--------|
|                                     |   | Twelve Months Ended April 30,                           |   |   | Twelve Months Ended April 30, |   |
|                                     |   | 2011                                                    |   |   | 2010                          |   |   | 2009 |   |   | Percentage Change |   |   | 2011 |   |   | 2010 |   |   | 2009 |   |   | Percentage Change |   |
| (in thousands)                           |   |                                                    |   |   |                          |   |   |   |   |   | 11 vs. 10 |   |   | 10 vs. 09 |   |   |   |   |   |   |   |   |   |   |   | 11 vs. 10 |   |   | 10 vs. 09 |   |
| Segment revenues from external customers |   | $                                                       | 37,974 |   |                          | $      | 39,208 |   |   | $ | 44,268 |   |   |   | -3.1 | % |   |   | -11.4 | % |   | $ | 10,693 |   |   | $ | 18,932 |   |   | $ | 24,973 |   |   |   | -43.5 | % |   |   | -24.2 | % |
| Segment profit from operations           |   | $                                                       | 8,984  |   |                          | $      | 10,425 |   |   | $ | 16,237 |   |   |   | -13.8 | % |   |   | -35.8 | % |   | $ | (448 | ) |   | $ | (42,614 | ) |   | $ | 7,998 |   |   |   | 98.9 | % |   |   | -632.8 | % |
| Segment profit margin from operations    |   |                                                    | 23.7%  |   |                          |   | 26.6% |   |   |   | 36.7% |   |   |   | -11.0% |   |   |   | -27.5% |   |   |   | -4.2% |   |   |   | -225.1% |   |   |   | 32.0% |   |   |   | 98.1% |   |   |   | -802.8% |   |

|   | (1) | Period from May 1, 2010 through December 23, 2010. |
|--------|-----|----------------------------------------------------|

----

----

----

|   | ● | Revenue recognition |
|--------|---------|---------------------|

|   | ● | Income taxes |
|--------|---------|--------------|

|   | ● | Reserve for settlement expenses |
|--------|---------|---------------------------------|

----

|                              |   | Payments due by period |   |   |            |   |   |      |   |
|-----------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|-----------|--------|
| Contractual Obligations           |   | Total                  |   |   | Less than 1year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5years |   |
|  Long-Term Debt Obligations  |   |                   | -      |   |            |   | -      |      |   |   | - |   |   |   | - |   |   |   | - |   |
|  Capital Lease Obligations   |   |                   | -      |   |            |   | -      |      |   |   | - |   |   |   | - |   |   |   | - |   |
|  Operating Lease Obligations |   |                   | $6,142 |   |            |   | $2,948 |      |   |   | $3,194 |   |   |   | - |   |   |   | - |   |
|  Purchase Obligations        |   |                   | 1,714  |   |            |   | 1,714  |      |   |   | - |   |   |   | - |   |   |   | - |   |
|  TOTAL                       |   |                   | $7,856 |   |            |   | $4,662 |      |   |   | $3,194 |   |   |   | - |   |   |   | - |   |

----

Item 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

|                                            |   | Estimated Fair Value afterHypothetical Change in Interest Rates($ in thousands) |      |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------|-----------|
|                                            |   |                                                                            |      |
|                                            |   | (bp = basis points)                                                             |      |
|                                            |   |                                                                            |      |
| Fixed Income Securities                         |   | FairValue                                                                       |      |   | 6 mo.50bpincrease |   |   | 6 mo.50bpdecrease |   |   | 1 yr.100bpincrease |   |   | 1 yr.100bpdecrease |   |
|                                            |   |                                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |
| As of April 30, 2011                            |   |                                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments in securities with fixed maturities |   |                                                                            | $11,208.0 |   |   |   | $11,199.6 |   |   |   | $11,199.7 |   |   |   | $11,199.5 |   |   |   | $11,199.7 |   |
|                                            |   |                                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of April 30, 2010                            |   |                                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments in securities with fixed maturities |   |                                                                            | $23,532.0 |   |   |   | $23,468.0 |   |   |   | $23,470.0 |   |   |   | $23,463.0 |   |   |   | $23,463.0 |   |

----

| ($ in thousands)     |   |
|----------------------|--------|
| Equity Securities    |   | Fair Value |   | HypotheticalPrice Change |   | EstimatedFair Value afterHypotheticalChange in Prices |   |   | Hypothetical PercentageIncrease (Decrease) inShareholders’ Equity |   |
|                 |   |   |   |   |   |   |   |   |   |   |
| As of April 30, 2011 |   |   | $1,466 |   | 30% increase |   |   | $1,906 |   |   |   | 0.86% |   |
|                 |   |   |   |   | 30% decrease |   |   | $1,026 |   |   |   | (0.86)% |   |

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

|                                                                                                      | Page Number |
|-----------------------------------------------------------------------------------------------------------|-------------|
|                                                                                                      |        |
| Report of independent auditors                                                                            | 84          |
| Consolidated balance sheets--April 30, 2011 and 2010                                                      | 85          |
| Consolidated statements of income-years ended April 30, 2011, 2010 and 2009                               | 86          |
| Consolidated statements of cash flows-years ended April 30, 2011, 2010 and 2009                           | 87          |
| Consolidated statement of changes in shareholders’ equity-years ended April 30, 2011, 2010 and 2009 | 88          |
| Notes to the consolidated financial statements                                                            | 89          |

----

|                                         |   | NetRevenues |   |   | Income/ (Loss)fromOperations |   |   | Gain fromDeconsolidationof Subsidiaries |   |   | Revenues andProfitsInterests inEAM Trust |   |   | Income FromSecuritiesTrans., net |   |   | NetIncome/(Loss) |   |   | Earnings/(Loss)Per Share |   |
|----------------------------------------------|--------|-------------|--------|--------|------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------|--------|--------|----------------------------------|--------|--------|------------------|--------|--------|--------------------------|--------|
|                                         |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |
| 2011, by Quarter                             |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |
| First      (1) |   | $           | 13,609 |   |                         | $      | 3,546  |                                    |   |   | -                                        |   |   |                             | -      |   |             | $      | 37     |                     |   | $ | 2,317 |   |   | $ | 0.23 |   |
| Second  (1)                        |   |        | 13,498 |   |                         |   | 1,790  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 51     |                     |   |   | 1,087 |   |   |   | 0.11 |   |
| Third (1),(2)                                |   |        | 12,035 |   |                         |   | 524    |                                    |   |   | 50,510                                   |   |   |                             | 724    |   |             |   | (40    | )                        |   |   | 31,617 |   |   |   | 3.17 |   |
| Fourth   (3),(2)              |   |        | 9,525  |   |                         |   | 2,673  |                                    |   |   | -                                        |   |   |                             | 1,631  |   |             |   | 17     |                     |   |   | 2,761 |   |   |   | 0.28 |   |
| Total                                        |   | $           | 48,667 |   |                         | $      | 8,533  |                                    |   | $      | 50,510                                   |   |   | $                                | 2,355  |   |             | $      | 65     |                     |   | $ | 37,782 |   |   | $ | 3.79 |   |
|                                         |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |   |   |   |   |   |   |   |
| 2010, by Quarter                             |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |   |   |   |   |
| First      (4) |   | $           | 14,788 |   |                         | ($     | 42,786 | )                                       |   |   | -                                        |   |   |                             | -      |   |             | $      | 218    |                     |   | ($ | 31,580 | ) |   | ($ | 3.16 | ) |
| Second  (5)                        |   |        | 14,866 |   |                         |   | 3,435  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 151    |                     |   |   | 2,381 |   |   |   | 0.23 |   |
| Third                                        |   |        | 14,573 |   |                         |   | 4,583  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 185    |                     |   |   | 3,566 |   |   |   | 0.36 |   |
| Fourth (4),(5)                               |   |        | 13,913 |   |                         |   | 2,578  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 283    |                     |   |   | 2,445 |   |   |   | 0.25 |   |
| Total                                        |   | $           | 58,140 |   |                         | ($     | 32,190 | )                                       |   | $      | 0                                        |   |   | $                                | 0      |   |             | $      | 837    |                     |   | ($ | 23,188 | ) |   | ($ | 2.32 | ) |
|                                         |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |   |   |   |   |   |   |   |
| 2009, by Quarter                             |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |   |   |   |   |
| First                                        |   | $           | 20,213 |   |                         | $      | 7,465  |                                    |   |   | -                                        |   |   |                             | -      |   |             | $      | 632    |                     |   | $ | 5,062 |   |   | $ | 0.51 |   |
| Second                                       |   |        | 18,327 |   |                         |   | 6,266  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 10,084 |                     |   |   | 10,542 |   |   |   | 1.05 |   |
| Third                                        |   |        | 15,856 |   |                         |   | 4,620  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | 927    |                     |   |   | 3,732 |   |   |   | 0.38 |   |
| Fourth                                       |   |        | 14,845 |   |                         |   | 5,872  |                                    |   |   | -                                        |   |   |                             | -      |   |             |   | (18    | )                        |   |   | 3,617 |   |   |   | 0.36 |   |
| Total                                        |   | $           | 69,241 |   |                         | $      | 24,223 |                                    |   | $      | 0                                        |   |   | $                                | 0      |   |             | $      | 11,625 |                     |   | $ | 22,953 |   |   | $ | 2.30 |   |
|                                         |   |        |   |   |                         |   |   |                                    |   |   |                                     |   |   |                             |   |   |             |   |   |                     |   |   |   |   |   |   |   |   |

|   | (1) | During the first, second and third quarters of fiscal 2011, the Company recorded expenses related to the EAM Restructuring Transaction of $1,342,000, $1,120,000 and $1,302,000, respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The Company’s expenses include post-employment compensation of $1,475,000 during the third quarter and an additional $295,000 during the fourth quarter of fiscal 2011related to a grant of a voting profits interest in EAM to its former Chief Financial Officer, Mr. Appel. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The fourth quarter of fiscal 2011includes $914,000 related to the operating lease exit costs in connection with EAM’s exit from the Company’s office facility and the reversal of $1,767,000 of previously recorded expenses associated with the Provision for Settlement due to a change in estimated costs to administer the Fair Fund. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The first and fourth quarter of fiscal 2010 include expenses of $47,706,000 and $400,000, respectively, related to the Provision for the Settlement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The second quarter and fourth quarter of fiscal 2010 include expenses of $720,000 and $7,000, respectively, associated with the write-down of software development costs that resulted from a project no longer considered viable. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 9

Item 9A

|   | (a) | Evaluation of Disclosure Controls and Procedures. |
|--------|-----|---------------------------------------------------|

|   | (b) | Management’s Annual Report on Internal Control over Financial Reporting. |
|--------|-----|--------------------------------------------------------------------------------|

----

Item 9B.  OTHER INFORMATION.

Part III

Item 10.  DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.

|   |  (a)     Names of Directors, Age as of June 30, 2010 and Principal Occupation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | DirectorSince |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|
|   | Howard A. Brecher* (57). Acting Chairman and Acting CEO of the Company since November 2009; Chief Legal Officer; Vice President; Secretary of the Company from prior to 2005 until January 2010; Vice President and Secretary of the Value Line Funds from June 2008 until December 2010; Secretary of EAM LLC from February 2009 until December 2010; Director and General Counsel of AB&Co., Inc. since prior to 2005. Mr. Brecher has been an officer of the Company for more than 18 years. In addition to his current roles with the Company, he has also served as Secretary of the Company. Mr. Brecher is a graduate of Harvard College, Harvard Business School and Harvard Law School. He also holds a Master’s Degree in tax law from New York University.  |   |   | 1992          |
|   | Stephen Davis (59). Managing Member, Davis Investigative Group, LLC since 2001.  Mr. Davis served as a senior officer in the New York City Police Department and has successfully managed his own business servicing the financial services industry and other clients for more than 10 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 2010          |
|   | Alfred Fiore (55). Chief of Police, Westport CT.  Mr. Fiore currently serves as the senior official of a municipal department with both executive and budget responsibilities.  He has been Chief of Police, Westport CT for more than 6 years and has been with the Police Department for more than 31 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 2010          |
|   | William Reed (66). President, W.E. Reed.  Mr. Reed has successfully managed his own private business for over 40 years, providing a spectrum of services to real estate owners and managers regionally.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 2010          |
|   | Stephen R. Anastasio* (52). Vice President of the Company since December 2010; Treasurer since September 2005 and Director since February 2010; Treasurer of each of the Value Line Funds from September 2005 to August 2008.   Mr. Anastasio has been employed by Value Line, Inc. for more than 20 years:  In addition to his current roles with the Company, he has served as CFO, Treasurer, Chief Accounting Officer and Corporate Controller of the Company.  His relevant experience also includes being Treasurer of each of the Value Line Mutual Funds from 2005 to 2008. Mr. Anastasio is a graduate of Fairleigh Dickinson University and is a Certified Public Accountant.                                                            |   |   | 2010          |
|   | Mary Bernstein* (61). Director of Accounting of the Company since 2010; Accounting Manager of the Company from 2000 to 2010.  Mrs. Bernstein holds an MBA Degree in accounting from Baruch College, NYC and is a Certified Public Accountant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 2010          |

----

|   | (b) | The information pertaining to executive officers of the Company  is set forth in Part I, Item I, subsection J under the caption “Executive Officers of the Registrant” of this Form 10-K. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 11.  EXECUTIVE COMPENSATION.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

| Name and Addressof Beneficial Owner                                               |   | Number of SharesBeneficially Owned |      | Percentage of SharesBeneficially Owned1 |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------|-----------|-----------------------------------------|--------|
|                                                                              |   |                               |      |                                    |   |   |
| Arnold Bernhard & Co., Inc.1220 East 42nd StreetNew York, NY  10017 |   |                               | 8,633,733 |                                    |   |   | 86.6% |   |

| Name and Addressof Beneficial Owner                         |   | Number of SharesBeneficially Owned |   | Percentage of SharesBeneficially Owned |
|-------------------------------------------------------------|--------|------------------------------------|--------|----------------------------------------|
|  Howard A. Brecher                                     |   |                               | 200    |                                   |   |   | * |   |
| Stephen R. Anastasio                                        |   |                               | 100    |                                   |   |   | * |   |
| William Reed                                                |   |                               | 200    |                                   |   |   | * |   |
| Stephen Davis                                               |   |                               | 200    |                                   |   |   | * |   |
| Alfred Fiore                                                |   |                               | 0      |                                   |   |   | * |   |
| Mary Bernstein                                              |   |                               | 0      |                                   |   |   | * |   |
| John A. McKay                                               |   |                               | 0      |                                   |   |   | * |   |
|                                                        |   |                               |   |                                   |   |   |   |   |
| All directors and executive officers as a group (7 persons) |   |                               | 700    |                                   |   |   | * |   |

----

----

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.

----

Item 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES.

|               |   | 2011 |    |   | 2010   |   |
|--------------------|--------|------|---------|--------|--------|--------|
| Audit fees         |   | $    | 160,785 |   |   | $      | 157,800 |   |
| Audit-related fees |   | $    | 73,975  |   |   | $      | 15,970 |   |
| Tax fees           |   | $    | 63,390  |   |   | $      | 166,640 |   |
| All other fees     |   | $    | -       |   |   | $      | 4,020 |   |

Part IV

Item 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

|   | (a) | (1) | Financial Statements- See Part II Item 8. |
|--------|-----|-----|-------------------------------------------|

|         (b) |   | Exhibits |
|------------------------------------------------|--------|----------|

|   | 3.1 | Certificate of Incorporation of the Company, as amended through April 7, 1983, is incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 of Value Line, Inc. filed with the SEC on April 7, 1983. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Certificate of Amendment of Certificate of Incorporation dated October 24, 1989 is incorporated by reference to Exhibit 3.2 to the Amended Annual Report on Form 10-K/A for the year ended April 30, 2008 filed with the SEC on June 5, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3 | By-laws of the Company, as amended through January 18, 1996, are incorporated by reference to Exhibit 3.1 to the Amended Quarterly Report on Form 10-Q/A for the quarter ended January 31, 1996 filed with the SEC on March 19, 1996. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Form of tax allocation arrangement between the Company and AB&Co. is incorporated by reference to Exhibit 10.8 to the Registration Statement on Form S-1 of Value Line, Inc. filed with the SEC on April 7, 1983. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.2 | Form of Servicing and Reimbursement Agreement between the Company and AB&Co., dated as of November 1, 1982, is incorporated by reference to Exhibit 10.9 to the Registration Statement on Form S-1 of Value Line, Inc. filed with the SEC on April 7, 1983. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3(a) | Lease, dated as of June 4, 1993, for the Company’s premises at 220 East 42nd Street, New York, NY, is incorporated by reference to Exhibit 10.13 to the Annual Report on Form 10-K for the year ended April 30, 1994 filed with the SEC on June 17, 1994. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3(b) | Amendment to Lease, dated September 14, 2000, is incorporated by reference to Exhibit 10.14 to the Amended Annual Report on Form 10-K/A for the year ended April 30, 2001 filed with the SEC on August 17, 2001. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3(c) | Amendment to Lease, dated April 23, 2007, is incorporated by reference to Exhibit 10.14 to the Annual Report on Form 10-K for the year ended April 30, 2007 filed with the SEC on July 20, 2007. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Form of indemnification agreement, dated July 13, 2010, by and between the Company and each of Howard A. Brecher, Stephen Davis, Alfred Fiore, William E. Reed, Mitchell E. Appel, Stephen R. Anastasio and Thomas T. Sarkany is incorporated by reference to Exhibit 10.15 to the Annual Report on Form 10-K for the year ended April 30, 2010 filed with the SEC on July 16, 2010. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | EULAV Asset Management Declaration of Trust dated as of December 23, 2010 is incorporated by reference to Exhibit 10.16 to the Quarterly Report on Form   10-Q for the quarter ended January 31, 2011 filed with the SEC on March 24, 2011. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14.1 | Code of Business Conduct and Ethics is incorporated by reference to Exhibit 14.1 to the Quarterly Report on Form 10-Q for the quarter ended January 31, 2011 filed with the SEC on March 24, 2011. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | List of subsidiaries of Value Line, Inc. |
|--------|----|------------------------------------------|

|   | 31.1 | Certification of Acting Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|---------------------------------------------------------------------------------------------------------|

|   | 31.3 | Certification of Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of the Acting Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  This exhibit shall not be deemed “filed” as a part of this Annual Report on Form 10-K. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  This exhibit shall not be deemed “filed” as a part of this Annual Report on Form 10-K. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.3 | Certification of the Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  This exhibit shall not be deemed “filed” as a part of this Annual Report on Form 10-K. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | (1) | Separate financial statements of subsidiaries not consolidated and fifty percent or less owned persons |
|--------|-----|-----|--------------------------------------------------------------------------------------------------------|

|   |   | (a) | EULAV Asset Management Audited Consolidated Financial Statements as of April 30, 2011 |
|--------|--------|-----|---------------------------------------------------------------------------------------|

| (b) |           EULAV Asset Management, LLC and EULAV Securities, Inc. Combined Financial Statements |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   |   EULAV ASSET MANAGEMENTCONSOLIDATED FINANCIAL STATEMENTSAPRIL 30, 2011 |
|--------|------------------------------------------------------------------------------|
|   |                                                                         |

----

----

| ASSETS                                   |   |   |       |
|------------------------------------------|--------|--------|------------|
| Cash and cash equivalents                |   | $      | 3,916,420  |   |
| Investments, fair value                  |   |   | 3,007,845  |   |
| Receivable from affiliates               |   |   | 1,398,092  |   |
| Prepaid expenses and other assets        |   |   | 216,951    |   |
|                                     |   |   |       |   |
| Total current assets                     |   |   | 8,539,308  |   |
|                                     |   |   |       |   |
| Furniture and equipment, net             |   |   | 43,433     |   |
| Intangible asset - management contracts  |   |   | 49,197,117 |   |
|                                     |   |   |       |   |
|                                     |   | $      | 57,779,858 |   |
|                                     |   |   |       |   |
| LIABILITIES AND OWNERS' EQUITY           |   |   |       |   |
| Accounts payable and accrued liabilities |   | $      | 1,116,630  |   |
| Due to VLI                               |   |   | 513,673    |   |
|                                     |   |   |       |   |
| Total current liabilities                |   |   | 1,630,303  |   |
|                                     |   |   |       |   |
| Owners' equity                           |   |   | 56,149,555 |   |
|                                     |   |   |       |   |
|                                     |   | $      | 57,779,858 |   |

|  See notes to consolidated financial statements |  2 |
|------------------------------------------------------|---------|

----

| Revenues:                                    |   |   |      |
|----------------------------------------------|--------|--------|-----------|
| Investment management fees                   |   | $      | 4,591,974 |   |
| 12b-1 fees                                   |   |   | 1,292,765 |   |
| Dividends and interest                       |   |   | 3,091     |   |
|                                         |   |   |      |   |
| Total revenues                               |   |   | 5,887,830 |   |
|                                         |   |   |      |   |
| Expenses:                                    |   |   |      |   |
| Marketing and distribution                   |   |   | 1,491,758 |   |
| Compensation and benefits                    |   |   | 787,486   |   |
| Office and administration                    |   |   | 712,386   |   |
| Office and administration - VLI              |   |   | 188,774   |   |
| Professional fees                            |   |   | 169,896   |   |
|                                         |   |   |      |   |
| Total expenses                               |   |   | 3,350,300 |   |
|                                         |   |   |      |   |
| Net income before New York City income taxes |   |   | 2,537,530 |   |
| Provision for New York City income taxes     |   |   | 101,511   |   |
|                                         |   |   |      |   |
| Net income                                   |   | $      | 2,436,019 |   |
|                                         |   |   |      |   |

|  See notes to consolidated financial statements | 3 |
|------------------------------------------------------|---|

----

|                           |   | Capital      |   |   |          |   |       |   |   |   |          |   |   |   |       |
|--------------------------------|--------|--------------|--------|--------|---------------|--------|------------|--------|--------|--------|---------------|--------|--------|--------|------------|
|                           |   | Balance      |   |   |          |   |       |   |   |   |          |   |   |   |       |
|                           |   | December 23, |   |   | Capital       |   |       | Net    |   |   | Capital       |   |   |   |       |
|                           |   | 2010         |   |   | Contributions |   |       | Income |   |   | Distributions |   |   | Total  |       |
|                           |   |         |   |   |          |   |       |   |   |   |          |   |   |   |       |
| Non-voting profit interest     |   | $            | 0      |   |          | $      | 56,100,000 |   |   | $      | 2,267,782     |   |   | $      | (2,306,951 | ) |   | $ | 56,060,831 |   |
| Class A voting profit interest |   |         |   |   |          |   |       |   |   |   | 151,414       |   |   |   | (69,656    | ) |   |   | 81,758 |   |
| Class B voting profit interest |   |         |   |   |          |   |       |   |   |   | 16,823        |   |   |   | (9,857     | ) |   |   | 6,966 |   |
|                           |   |         |   |   |          |   |       |   |   |   |          |   |   |   |       |   |   |   |   |   |
|                           |   | $            | 0      |   |          | $      | 56,100,000 |   |   | $      | 2,436,019     |   |   | $      | (2,386,464 | ) |   | $ | 56,149,555 |   |
|                           |   |         |   |   |          |   |       |   |   |   |          |   |   |   |       |   |   |   |   |   |

|  See notes to consolidated financial statements | 4 |
|------------------------------------------------------|---|

----

| Cash flows from operating activities:                                       |   |   |       |
|-----------------------------------------------------------------------------|--------|--------|------------|
| Net income                                                                  |   | $      | 2,436,019  |   |
| Adjustments to reconcile net income to net cash provided by operations:     |   |   |       |   |
| Depreciation expense                                                        |   |   | 1,374      |   |
| Changes in:                                                                 |   |   |       |   |
| Increase in receivable from affiliates                                      |   |   | (1,097,671 | ) |
| Increase in prepaid expenses and other assets                               |   |   | (216,951   | ) |
| Increase in accounts payable and accrued expenses                           |   |   | 708,665    |   |
|                                                                        |   |   |       |   |
| Net cash provided by operating activities                                   |   |   | 1,831,436  |   |
|                                                                        |   |   |       |   |
| Cash flows from investing activities:                                       |   |   |       |   |
| Change in investments, net                                                  |   |   | (1,499,325 | ) |
| Purchase of furniture and equipment                                         |   |   | (27,301    | ) |
|                                                                        |   |   |       |   |
| Net cash used in investing activities                                       |   |   | (1,526,626 | ) |
|                                                                        |   |   |       |   |
| Cash flows from financing activities:                                       |   |   |       |   |
| Cash and cash equivalents received pursuant to restructuring transaction    |   |   | 5,484,401  |   |
| Capital accounts distributions                                              |   |   | (1,872,791 | ) |
|                                                                        |   |   |       |   |
| Net cash provided by financing activities                                   |   |   | 3,611,610  |   |
|                                                                        |   |   |       |   |
| Net increase in cash and cash equivalents                                   |   |   | 3,916,420  |   |
| Cash and cash equivalents - December 23, 2010 (commencement of operations)  |   |   | 0          |   |
|                                                                        |   |   |       |   |
| Cash and cash equivalents - April 30, 2011                                  |   | $      | 3,916,420  |   |
|                                                                        |   |   |       |   |
| Supplemental schedule of non-cash financing activities:                     |   |   |       |   |
| Receivables and other assets received pursuant to restructuring transaction |   | $      | 300,421    |   |
| Accrued expenses assumed pursuant to restructuring transaction              |   | $      | (407,965   | ) |
| Investments at fair value received pursuant to restructuring transaction    |   | $      | 1,508,520  |   |
| Furniture and equipment, net received pursuant to restructuring transaction |   | $      | 17,506     |   |
| Intangible assets received pursuant to restructuring transaction            |   | $      | 49,197,117 |   |
| Due to VLI                                                                  |   | $      | 513,673    |   |

|  See notes to consolidated financial statements | 5 |
|------------------------------------------------------|---|

----

| [1]   | Use of estimates: |
|-----------------|-------------------|

| [2]   | Cash and cash equivalents: |
|-----------------|----------------------------|

----

| [3]   | Consolidation: |
|-----------------|----------------|

| [4]   | Revenues: |
|-----------------|-----------|

| [5]   | Income taxes: |
|-----------------|---------------|

| [6]   | Fair value of financial instruments: |
|-----------------|--------------------------------------|

----

|   | Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities. |
|--------|---------------------|---------------------------------------------------------------------------------|

|   | Level 2 - | Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available.  Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from independent sources. |
|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 - | Unobservable inputs.  Unobservable inputs reflect the assumptions that the management develops based on available information about what market participants would use in valuing the asset or liability. |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |          |   |       |      | Fair Value |
|----------------------------------|---------------|--------|------------|-----------|------------|
|                             | Country       |   | Fair Value |      | Hierarchy  |
| Assets:                          |          |   |       |      |       |
| Money market funds               | United States |   | $          | 2,375,466 |       | Level 1 |
| United States Treasury Bills     | United States |   |       | 249,965   |       | Level 2 |
| Commercial paper                 | United States |   |       | 1,249,870 |       | Level 2 |
| Corporate note - FDIC guaranteed | United States |   |       | 1,508,010 |       | Level 2 |
|                             |          |   |       |      |       |   |
| Total                            |          |   | $          | 5,383,311 |       |   |

| [7]   | Intangible assets: |
|-----------------|--------------------|

----

| [7]   | Intangible assets:  (continued) |
|-----------------|-------------------------------------------|

----

|   | Furniture and equipment |   | $      | 49,523 |   |
|--------|-------------------------|--------|--------|--------|--------|
|   | Less: depreciation      |   |   | (6,090 | )      |
|   |                    |   |   |   |   |
|   |                    |   | $      | 43,433 |   |

----

----

|   |   | (b) | EULAV Asset Management, LLC and EULAV Securities, Inc. Combined Financial Statements |
|--------|--------|-----|--------------------------------------------------------------------------------------|

|   |   |   | (Balance Sheet as of April 30, 2010, Statements of Income, Changes in Shareholder and Member Equity, and Cash    Flows for the period ended December 23, 2010, and the years ended April 30, 2010 and 2009) |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC. |
|--------------------------------------------------------|
|  (Wholly owned subsidiaries of Value Line, Inc.)  |

----

| A member of the           | 275 Madison Avenue           |
|--------------------------------|-----------------------------------|
| AICPA Center for Audit Quality | New York, NY 10016           |
| New York State Society of CPAs | Telephone: (212) 532-3736    |
| PCAOB registered          | Facsimile: (212) 545-8997    |
|                           | E-mail: cpas@horowitz-ullmann.com |

----

|   EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC. |
|---------------------------------------------------------------|
|   (Wholly owned subsidiaries of Value Line, Inc.)        |
|   Combined Balance Sheet                                 |
|   April 30, 2010                                         |

|                                                                                            |   |           |      |
|-------------------------------------------------------------------------------------------------|--------|----------------|-----------|
|                                                                                            |   | April 30, 2010 |      |
| ASSETS:                                                                                         |   |           |      |
| Current assets:                                                                                 |   |           |      |
| Cash and cash equivalents                                                                       |   | $              | 5,010,849 |   |
| Securities available for sale                                                                   |   |           | 2,514,970 |   |
| Receivable from affiliates                                                                      |   |           | 1,515,563 |   |
| Other receivables                                                                               |   |           | 41,464    |   |
| Prepaid expenses and other current assets                                                       |   |           | 166,425   |   |
|      Total current assets                                              |   |           | 9,249,271 |   |
|                                                                                            |   |           |      |   |
| Long term assets:                                                                               |   |           |      |   |
| Property and equipment, net                                                                     |   |           | 8,958     |   |
| Other assets                                                                                    |   |           | 130,607   |   |
|                                                                                            |   |           |      |   |
|      Total long term assets                                            |   |           | 139,565   |   |
|                                                                                            |   |           |      |   |
|      Total assets                                                      |   | $              | 9,388,836 |   |
|                                                                                            |   |           |      |   |
| LIABILITIES AND SHAREHOLDER AND MEMBER EQUITY                                                   |   |           |      |   |
| Current liabilities:                                                                            |   |           |      |   |
| Accounts payable and accrued liabilities                                                        |   | $              | 1,275,179 |   |
| Accrued salaries                                                                                |   |           | 347,985   |   |
| Payable to affiliates                                                                           |   |           | 1,009,976 |   |
| Unearned revenue                                                                                |   |           | 34,953    |   |
|      Total current liabilities                                         |   |           | 2,668,093 |   |
|                                                                                            |   |           |      |   |
| Shareholder and Member Equity:                                                                  |   |           |      |   |
| Common stock, at stated value of $112 per share: 2,500                                          |   |           |      |   |
|   authorized, issued and outstanding                                                  |   |           | 280,000   |   |
| Additional paid-in capital                                                                      |   |           | 3,312,335 |   |
| Retained earnings and member equity                                                             |   |           | 3,131,390 |   |
| Accumulated other comprehensive income, net of tax                                              |   |           | (2,982    | ) |
|      Total shareholder and member equity                               |   |           | 6,720,743 |   |
|                                                                                            |   |           |      |   |
|      Total liabilities and shareholder and member equity               |   | $              | 9,388,836 |   |
|                                                                                            |   |           |      |   |
|                                                                                            |   |           |      |   |
| See independent auditor’s report and accompanying notes to combined financial statements. |   |
|                                                                                            |   |           |      |   |

----

|   EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC.                                                |
|--------------------------------------------------------------------------------------------------------------|
|   (Wholly owned subsidiaries of Value Line, Inc.)                                                       |
|   Combined Statements of Income                                                                         |
|   For the period from May 1, 2010 through December 23, 2010 and the years ended April 30, 2010 and 2009 |

|                                                                                            |   |                        |       |   |           |   |       |          |   |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|----------------|--------|------------|---------------|--------|
|                                                                                            |   | December 23, 2010 |       |   | April 30, 2010 |   |       | April 30 2009 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |
| Revenues:                                                                                       |   |                        |       |   |           |   |       |          |   |
| Investment management fees & services                                                       |   | $                           | 8,384,303  |   |           | $      | 14,808,830 |          |   | $ | 15,285,377 |   |
| 12-b-1 fees                                                                                     |   |                        | 2,308,234  |   |           |   | 4,123,461  |          |   |   | 5,373,100 |   |
| Gains/(losses) on securities transactions, net                                                  |   |                        | (1,804     | )      |           |   | (123,737   | )             |   |   | 359,622 |   |
| Dividends and interest                                                                          |   |                        | 8,135      |   |           |   | 283,721    |          |   |   | 409,462 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
|      Total revenues                                                    |   |                        | 10,698,868 |   |           |   | 19,092,275 |          |   |   | 21,427,561 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
| Expenses:                                                                                       |   |                        |       |   |           |   |       |          |   |   |   |   |
| Advertising and promotion                                                                       |   |                        | 2,230,674  |   |           |   | 5,219,093  |          |   |   | 6,999,869 |   |
| Salaries and employee benefits                                                                  |   |                        | 1,049,313  |   |           |   | 2,576,765  |          |   |   | 2,487,275 |   |
| Office and administration                                                                       |   |                        | 1,844,625  |   |           |   | 2,478,287  |          |   |   | 2,674,359 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
|      Total expenses                                                    |   |                        | 5,124,612  |   |           |   | 10,274,145 |          |   |   | 12,161,503 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
| Income before income taxes                                                                      |   |                        | 5,574,256  |   |           |   | 8,818,130  |          |   |   | 9,266,058 |   |
| Provision for income taxes                                                                      |   |                        | 2,155,429  |   |           |   | 3,190,641  |          |   |   | 3,363,496 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
| Net income                                                                                      |   | $                           | 3,418,827  |   |           | $      | 5,627,489  |          |   | $ | 5,902,562 |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |
| See independent auditor’s report and accompanying notes to combined financial statements. |   |
|                                                                                            |   |                        |       |   |           |   |       |          |   |   |   |   |

----

| EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC.                                                |
|-------------------------------------------------------------------------------------------------------|
| (Wholly owned subsidiaries of Value Line, Inc.)                                                       |
| Combined Statements of Cash Flows                                                                     |
| For the period from May 1, 2010 through December 23, 2010 and the years ended April 30, 2010 and 2009 |

|                                                                                            |   |                        |       |   |           |   |        |          |   |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|----------------|--------|-------------|---------------|--------|
|                                                                                            |   | December 23, 2010 |       |   | April 30, 2010 |   |        | April 30 2009 |   |
| Cash flows from operating activities                                                            |   |                        |       |   |           |   |        |          |   |
| Net income                                                                                      |   | $                           | 3,418,827  |   |           | $      | 5,627,489   |          |   | $ | 5,902,562 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Adjustments to reconcile net income to cash provided by operating activities:                   |   |                        |       |   |           |   |        |          |   |
| Depreciation and amortization                                                                   |   |                        | 1,916      |   |           |   | 8,777       |          |   |   | 14,489 |   |
| Amortization of bond premium                                                                    |   |                        | -          |   |           |   | 228,304     |          |   |   | 569,636 |   |
| Realized (gains)/losses on sales of securities                                                  |   |                        | 5          |   |           |   | (252,853    | )             |   |   | (104,721 | ) |
| Unrealized (gains)/losses on securities                                                         |   |                        | 1,799      |   |           |   | 376,590     |          |   |   | (254,901 | ) |
| Deferred income taxes                                                                           |   |                        | 1,410      |   |           |   | (24,698     | )             |   |   | 90,534 |   |
| Writedown of property and equipment                                                             |   |                        | 17,508     |   |           |   | -           |          |   |   | - |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Changes in assets and liabilities:                                                              |   |                        |       |   |           |   |        |          |   |   |   |   |
| Proceeds from sales of fixed income trading securities                                          |   |                        | -          |   |           |   | 16,851,279  |          |   |   | 9,026,956 |   |
| Purchase of fixed income trading securities                                                     |   |                        | -          |   |           |   | -           |          |   |   | (6,583,000 | ) |
| (Increase)/decrease in receivables from affiliates and other receivables                        |   |                        | 1,557,027  |   |           |   | 119,281     |          |   |   | (779,890 | ) |
| (Increase)/decrease in prepaid expenses and other current assets                                |   |                        | 166,425    |   |           |   | 270,689     |          |   |   | (415,108 | ) |
| (Increase)/decrease in other assets                                                             |   |                        | 130,607    |   |           |   | -           |          |   |   | - |   |
| Increase/(decrease) in payable to affiliates                                                    |   |                        | (1,009,976 | )      |           |   | (640,168    | )             |   |   | 2,614,256 |   |
| Increase/(decrease) in accounts payables and accrued liabilities                                |   |                        | (1,658,119 | )      |           |   | 264,790     |          |   |   | 38,216 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Total adjustments                                                                               |   |                        | (791,398   | )      |           |   | 17,201,991  |          |   |   | 4,216,467 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Net cash provided by operating activities                                                       |   |                        | 2,627,429  |   |           |   | 22,829,480  |          |   |   | 10,119,029 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Cash flows from investing activities:                                                           |   |                        |       |   |           |   |        |          |   |   |   |   |
| Proceeds from sales of fixed income securities                                                  |   |                        | 999,140    |   |           |   | -           |          |   |   | - |   |
| Purchase of fixed income securities                                                             |   |                        | -          |   |           |   | (2,516,270  | )             |   |   | - |   |
| Acquisition of property and equipment                                                           |   |                        | (10,466    | )      |           |   | -           |          |   |   | - |   |
| Acquisition of capitalized software                                                             |   |                        | -          |   |           |   | (8,281      | )             |   |   | - |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Net cash provided by/(used in) investing activities                                             |   |                        | 988,674    |   |           |   | (2,524,551  | )             |   |   | - |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Cash flows from financing activities:                                                           |   |                        |       |   |           |   |        |          |   |   |   |   |
| Return of capital paid to parent                                                                |   |                        | (1,110,000 | )      |           |   | (4,789,577  | )             |   |   | - |   |
| Contribution of assets to EAM Trust                                                             |   |                        | (5,484,400 | )      |           |   | -           |          |   |   | - |   |
| Member equity contribution                                                                      |   |                        | 2,201,369  |   |           |   | -           |          |   |   | 2,757,820 |   |
| Dividends paid to parent and distributions to member                                            |   |                        | (4,233,921 | )      |           |   | (14,079,638 | )             |   |   | (10,848,170 | ) |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Net cash used in financing activities                                                           |   |                        | (8,626,952 | )      |           |   | (18,869,215 | )             |   |   | (8,090,350 | ) |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Net increase/(decrease) in cash and cash equivalents                                            |   |                        | (5,010,849 | )      |           |   | 1,435,714   |          |   |   | 2,028,679 |   |
| Cash and cash equivalents at beginning of year                                                  |   |                        | 5,010,849  |   |           |   | 3,575,135   |          |   |   | 1,546,456 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| Cash and cash equivalents at end of year                                                        |   | $                           | -          |   |           | $      | 5,010,849   |          |   | $ | 3,575,135 |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |
| See independent auditor’s report and accompanying notes to combined financial statements. |   |                        |       |   |           |
|                                                                                            |   |                        |       |   |           |   |        |          |   |   |   |   |

----

| EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC.                                                |
|-------------------------------------------------------------------------------------------------------|
| (Wholly owned subsidiaries of Value Line, Inc.)                                                       |
|  Statements of Changes in Shareholder and Member Equity                                          |
| For the period from May 1, 2010 through December 23, 2010 and the years ended April 30, 2010 and 2009 |

|                                                                                            |   |   Common stock |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |
|-------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------|--------|----------|------------|--------|--------|---------------|-------------|--------|--------------|-----------|-----------|---------------------|------------|------------|-------------|
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   | Retained     |      |      | Accumulated         |       |       |        |   |
|                                                                                            |   | Number                   |   |   | Par    |   |     | Additional |   |   |          |        |   | earnings and |      |      | Other               |       |       |        |   |
|                                                                                            |   | of                       |   |   | Value  |   |     | paid-in    |   |   | Comprehensive |        |   | member       |      |      |  Comprehensive |       |       |        |
|                                                                                            |   | shares                   |   |   | Amount |   |     | capital    |   |   | income/(loss) |        |   | equity       |      |      | income/(loss)       |       |       | Total       |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |
| Balance at April 30, 2008                                                                       |   |                     | 2,500  |   |   | $      | 280,000  |       |   | $      | 8,101,912     |        |   |         |      |      | $                   | 13,616,777 |       |        | $ | - |   |   | $ | 21,998,689 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |
| Comprehensive income                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |
| Net income                                                                                      |   |                     |   |   |   |   |     |       |   |   |          |        |   | $            | 5,902,562 |      |                |       | 5,902,562  |        |   |   |   |   |   |   | 5,902,562 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   | $            | 5,902,562 |      |                |       |       |        |   |   |   |   |   |   |   |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Member equity contribution                                                                      |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      | 2,912,370 |                |       |       |        |   |   |   | 2,912,370 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Dividends to parent and distributions to member                                                 |   |                     |   |   |   |   |     |       |   |   |          | (10,848,170 | )      |         |      |      |                |       |       | (10,848,170 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Balance at April 30, 2009                                                                       |   |                     | 2,500  |   |   | $      | 280,000  |       |   | $      | 8,101,912     |        |   |         |      |      |                | $          | 11,583,539 |        |   | $ | - |   |   | $ | 19,965,451 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Net income                                                                                      |   |                     |   |   |   |   |     |       |   |   |          |        |   | $            | 5,627,489 |      |                |       | 5,627,489  |        |   |   |   |   |   |   | 5,627,489 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Other comprehensive income/(loss):                                                              |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |
| Change in unrealized losses on securities, net of    tax of $1,620                    |   |                     |   | (2,982 | )      |   |     |       |   |   |          | (2,982      | )      |         |      | (2,982    | )                   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Comprehensive incpme/(loss)                                                                     |   |                     |   |   |   |   |     |       |   |   | $             | 5,624,507   |   |         |      |      |                |       |       |        |   |   |   |   |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Return of capital to parent                                                                     |   |                     |   |   |   |   |     |       |   |   | (4,789,577    | )           |   |         |      |      |                |       |       |        |   |   |   |   |   |   | (4,789,577 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Dividends to parent and distributions to member                                                 |   |                     |   |   |   |   |     |       |   |   |          | (14,079,638 | )      |         |      |      |                |       |       | (14,079,638 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Balance at April 30, 2010                                                                       |   |                     | 2,500  |   |   | $      | 280,000  |       |   | $      | 3,312,335     |        |   |         |      |      |                | $          | 3,131,390  |        |   | $ | (2,982 | ) |   | $ | 6,720,743 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Net income                                                                                      |   |                     |   |   |   |   |     |       |   |   |          |        |   | $            | 3,418,827 |      |                |       | 3,418,827  |        |   |   |   |   |   |   | 3,418,827 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Other comprehensive income/(loss):                                                              |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |
| Change in unrealized losses on securities,    net of tax of $1,620                    |   |                     |   | 2,982  |   |   |     |       |   |   |          | 2,982       |   |         |      | 2,982     |                |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Comprehensive incpme/(loss)                                                                     |   |                     |   |   |   |   |     |       |   |   | $             | 3,421,809   |   |         |      |      |                |       |       |        |   |   |   |   |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Member equity contribution                                                                      |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      | 2,201,369 |                |       |       |        |   |   |   | 2,201,369 |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Return of capital to parent                                                                     |   |                     |   |   |   |   |     |       |   |   | (1,110,000    | )           |   |         |      |      |                |       |       |        |   |   |   |   |   |   | (1,110,000 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Distributions to member                                                                         |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       | (4,233,921 | )           |   |   |   |   |   |   | (4,233,921 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Contribution to EAM Trust                                                                       |   |                     | (2,500 | )      |   |   | (280,000 | )          |   |   | (2,202,335    | )           |   |         |      |      |                |       | (4,517,665 | )           |   |   | - |   |   |   | (7,000,000 | ) |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| Balance at December 23, 2010                                                                    |   |                     | -      |   |   | $      | -        |       |   | $      | -             |        |   |         |      |      |                | $          | -          |        |   | $ | - |   |   | $ | - |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |
| See independent auditor’s report and accompanying notes to combined financial statements. |   |                     |   |   |   |
|                                                                                            |   |                     |   |   |   |   |     |       |   |   |          |        |   |         |      |      |                |       |       |        |   |   |   |   |   |   |   |   |

----

| EULAV ASSET MANAGEMENT, LLC and EULAV SECURITIES, INC. |
|--------------------------------------------------------|
|                                                   |
| (Wholly owned subsidiaries of Value Line, Inc.)        |
|                                                   |
| NOTES TO COMBINED FINANCIAL STATEMENTS                 |
|                                                   |   |   |   |   |   |

----

----

|                                                     |   | Total Investments |      |   | Cash Equivalents |   |      | Investments in Trading Securities |   |   | Investments inSecuritiesAvailable for Sale |   |
|----------------------------------------------------------|--------|-------------------|-----------|--------|------------------|--------|-----------|-----------------------------------|--------|--------|------------------------------------------------------|--------|
| Level 1 – Quoted Prices                            |   | $                 | 7,505,310 |   |             | $      | 4,990,340 |                              |   | $      | -                                                    |   |   | $ | 2,514,970 |   |
| Level 2 – Other Significant Observable Inputs |   |              | -         |   |             |   | -         |                              |   |   | -                                                    |   |   |   | - |   |
| Level 3 – Significant Unobservable Inputs          |   |              | -         |   |             |   | -         |                              |   |   | -                                                    |   |   |   | - |   |
|     Total                            |   | $                 | 7,505,310 |   |             | $      | 4,990,340 |                              |   | $      | -                                                    |   |   | $ | 2,514,970 |   |
|                                                     |   |              |      |   |             |   |      |                              |   |   |                                                 |   |   |   |   |   |

----

----

----

----

|                                           |   |       |      |   |       |   |      | Gross          |   |
|------------------------------------------------|--------|------------|-----------|--------|------------|--------|-----------|----------------|--------|
|                                           |   |       |      |   |       |   |      | Unrealized     |   |
|                                           |   | Historical |      |   |       |   |      | Holding        |   |
|                                           |   | Cost       |      |   | Fair Value |   |      | Gains/(Losses) |   |
| Maturity                                       |   |       |      |   |       |   |      |           |   |
| Due within 1 year                              |   | $          | 2,519,570 |   |       | $      | 2,514,970 |           |   | $ | (4,600 | ) |
| Total investment in government debt securities |   | $          | 2,519,570 |   |       | $      | 2,514,970 |           |   | $ | (4,600 | ) |

----

|                 |   | Current |      |   | Deferred |   |   | Total  |   |
|----------------------|--------|---------|-----------|--------|----------|--------|--------|--------|--------|
|                 |   |    |      |   |     |   |   |   |   |
| Federal              |   | $       | 1,841,061 |   |     |   | -      |   |   | $ | 1,841,061 |   |
| State and local      |   |    | 314,368   |   |     |   |   |   |   |   | 314,368 |   |
|                 |   |    |      |   |     |   |   |   |   |   |   |   |
| Income tax provision |   | $       | 2,155,429 |   |     |   | -      |   |   | $ | 2,155,429 |   |
|                 |   |    |      |   |     |   |   |   |   |   |   |   |

|                           |
|--------------------------------|
|                           |   | Current |   |   | Deferred |   |   | Total |   |
|                           |   |   |   |   |   |   |   |   |   |
| Federal                        |   | $ | 2,903,313 |   |   | $ | (24,698 | ) |   | $ | 2,878,615 |   |
| State and local                |   |   | 312,026 |   |   |   | - |   |   |   | 312,026 |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision/(benefit) |   | $ | 3,215,339 |   |   | $ | (24,698 | ) |   | $ | 3,190,641 |   |

----

|                           |   | Current |      |   | Deferred |   |   | Total  |   |
|--------------------------------|--------|---------|-----------|--------|----------|--------|--------|--------|--------|
|                           |   |    |      |   |     |   |   |   |   |   |   |   |
| Federal                        |   | $       | 2,911,114 |   |     | $      | 88,936 |   |   | $ | 3,000,050 |   |
| State and local                |   |    | 361,848   |   |     |   | 1,598  |   |   |   | 363,446 |   |
|                           |   |    |      |   |     |   |   |   |   |   |   |   |
| Income tax provision/(benefit) |   | $       | 3,272,962 |   |     | $      | 90,534 |   |   | $ | 3,363,496 |   |

|                                               |   | Period Ended |      |   |                 |   |      |   |
|----------------------------------------------------|--------|--------------|-----------|--------|----------------------|--------|-----------|--------|
|                                               |   | December 23, |      |   | Year Ended April 30, |   |
|                                               |   | 2010         |      |   | 2010                 |   |      | 2009   |   |
| Tax provision at the US statutory rate of 35%      |   | $            | 1,950,990 |   |                 | $      | 3,086,345 |   |   | $ | 3,243,120 |   |
| Decrease in provision from:                        |   |         |      |   |                 |   |      |   |   |   |   |   |
| State and local income tax expense, net of federal |   |         |      |   |                 |   |      |   |   |   |   |   |
|     Income tax benefits        |   |         | 204,439   |   |                 |   | 202,817   |   |   |   | 236,240 |   |
| Tax exempt income                                  |   |         | -         |   |                 |   | (98,521   | )      |   |   | (115,864 | ) |
|                                               |   |         |      |   |                 |   |      |   |   |   |   |   |
| Income tax provision/(benefit)                     |   | $            | 2,155,429 |   |                 | $      | 3,190,641 |   |   | $ | 3,363,496 |   |

----

----

----

----

| ·      | Mr. A. Short, the first Chairman of the Trustees of EAM, is a former practicing attorney with an extensive background in the mutual funds industry and interests in private equity firms.  He served as (executive) Vice Chairman of W. P. Stewart & Co., Inc. and currently serves as an independent director and Audit Chair of an unrelated funds group. |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·      | Mr. A. Aronovitz is an experienced accountant and financial executive and served as interim chief financial officer of Comverse Technologies, a public company, after being appointed to the position following a securities investigation. |
|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·      | Mr. R. Berenger is a highly experienced compliance official, principally in the brokerage industry. |
|---------------------------------|-----------------------------------------------------------------------------------------------------|

|    ·      | Mr. R. Rice was a practicing attorney and is currently the Managing Partner of Tangent Capital and also serves on the boards of several private technology and media companies. Mr. Rice has succeeded Mr. Sirota as a Trustee of EAM (Mr. Sirota was one of the five initial individual Trustees of EAM and subsequently resigned).  Mr. Rice anticipates acquiring Mr. Sirota’s non-voting profits interest. |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·      | Mr. M. Appel was the Chief Financial Officer of Value Line from April 2008 to December 2010 and from September 2005 to November 2007; President of each of the Value Line Funds since June 2008;  Director of each of the Value Line Funds since December 2010;  President of EULAV Asset Management,  LLC and ESI from February 2009 until the completion of the Restructuring Transaction on December 23, 2010; Treasurer of Value Line from June to September 2005; and Chief Financial Officer, XTF Asset Management from November 2007 to April 2008. Mr. Appel served as a Director on Value Line's Board from February 2010 to December 2010. He earned his MBA from New York University. |
|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | VALUE LINE, INC.(Registrant)                                           |   |
|--------|--------|------------------------------------------------------------------------|--------|
|   |   |                                                                   |   |
|   | By:    | s/ Howard Brecher                                                      |   |   |
|   |   |    Howard Brecher                                       |   |
|   |   |    Acting Chairman & Acting Chief Executive Officer |
|   |   |     (Principal Executive Officer)                       |   |

|   | By:    | s/ Howard Brecher                                                                         |   |   |
|--------|--------|-------------------------------------------------------------------------------------------|--------|--------|
|   |   |    Howard Brecher                                                          |   |
|   |   |     Acting Chairman & Acting Chief Executive Officer and Director |
|   |   |     (Principal Executive Officer)                                          |   |

|   | By:    | s/ John A. McKay                                 |   |   |
|--------|--------|--------------------------------------------------|--------|--------|
|   |   |    John A. McKay                  |   |
|   |   |    Chief Financial Officer        |
|   |   |     (Principal Financial Officer) |   |

|   | By:    | s/ Stephen R. Anastasio                                     |   |   |
|--------|--------|-------------------------------------------------------------|--------|--------|
|   |   |    Stephen R. Anastasio                      |   |
|   |   |    Vice President and Treasurer and Director |
|   |   |     (Principal Accounting Officer)           |   |

----

| s/ William Reed   |   |
|-------------------|--------|
| William Reed      |   |
| Director          |   |
|              |   |
| s/ Stephen Davis  |   |
| Stephen Davis     |   |
| Director          |   |
|              |   |
| s/ Alfred Fiore   |   |
| Alfred Fiore      |   |
| Director          |   |
|              |   |
| s/ Mary Bernstein |   |
| Mary Bernstein    |   |
| Director          |   |

----

| A member of the           | 275 Madison Avenue           |
|--------------------------------|-----------------------------------|
| AICPA Center for Audit Quality | New York, NY 10016           |
| New York State Society of CPAs | Telephone: (212) 532-3736    |
| PCAOB registered          | Facsimile: (212) 545-8997    |
|                           | E-mail: cpas@horowitz-ullmann.com |

|   | Report of Independent Accountants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | To the Board of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   | and Shareholders of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   | Value Line, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | We have audited the accompanying consolidated balance sheets of Value Line, Inc. and Subsidiaries as of April 30, 2011 and 2010 and the related consolidated statements of income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended April 30, 2011.  Value Line’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion. |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Value Line, Inc. and Subsidiaries at April 30, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the three-year period ended April 30, 2011, in conformity with accounting principles generally accepted in the United States of America.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   | Our audits referred to above included audits of the financial statement schedules listed under item 15(c) (1) of the Form 10-K report of Value Line and Subsidiaries for the year ended April 30, 2011.  In our opinion, those financial statement schedules present fairly, in all material respects, in relation to the financial statements taken as a whole, the information required to be stated therein.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |

|   |          |   |
|--------|---------------|--------|
|   |          |   |
|   | New York, NY  |   |
|   | July 28, 2011 |   |

----

Consolidated Balance Sheets

|                                                                                             |   | April 30, |   |   | April 30, |   |
|--------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|
|                                                                                             |   | 2011      |   |   | 2010      |   |
| Assets                                                                                           |   |      |   |   |      |   |
| Current Assets:                                                                                  |   |      |   |   |      |   |
| Cash and cash equivalents (including short term investments of $6,158 and $15,946, respectively) |   | $         | 6,802  |   |      | $      | 16,435 |   |
| Securities available for sale                                                                    |   |      | 12,674 |   |      |   | 23,529 |   |
| Accounts receivable, net of allowance for doubtful accounts of $45 and $46, respectively         |   |      | 1,599  |   |      |   | 1,681 |   |
| Receivable from affiliates                                                                       |   |      | 552    |   |      |   | 1,520 |   |
| Prepaid and refundable income taxes                                                              |   |      | 59     |   |      |   | 2,086 |   |
| Prepaid expenses and other current assets                                                        |   |      | 1,028  |   |      |   | 995 |   |
| Deferred income taxes                                                                            |   |      | 3,022  |   |      |   | 8,690 |   |
| Total current assets                                                                             |   |      | 25,736 |   |      |   | 54,936 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Long term assets:                                                                                |   |      |   |   |      |   |   |   |
| Investment in EAM Trust                                                                          |   |      | 55,853 |   |      |   | - |   |
| Property and equipment, net                                                                      |   |      | 4,084  |   |      |   | 4,257 |   |
| Capitalized software and other intangible assets, net                                            |   |      | 2,130  |   |      |   | 792 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Total long term assets                                                                           |   |      | 62,067 |   |      |   | 5,049 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Total assets                                                                                     |   | $         | 87,803 |   |      | $      | 59,985 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Liabilities and Shareholders’ Equity                                                       |   |      |   |   |      |   |   |   |
| Current Liabilities:                                                                             |   |      |   |   |      |   |   |   |
| Accounts payable and accrued liabilities                                                         |   | $         | 4,266  |   |      | $      | 4,982 |   |
| Accrued salaries                                                                                 |   |      | 913    |   |      |   | 1,351 |   |
| Dividends payable                                                                                |   |      | 1,995  |   |      |   | - |   |
| Accrued taxes payable                                                                            |   |      | 336    |   |      |   | 780 |   |
| Reserve for settlement expenses                                                                  |   |      | 1,464  |   |      |   | 4,247 |   |
| Unearned revenue                                                                                 |   |      | 22,442 |   |      |   | 22,314 |   |
| Total current liabilities                                                                        |   |      | 31,416 |   |      |   | 33,674 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Long term liabilities:                                                                           |   |      |   |   |      |   |   |   |
| Unearned revenue                                                                                 |   |      | 4,559  |   |      |   | 4,863 |   |
| Deferred income taxes                                                                            |   |      | 18,574 |   |      |   | - |   |
| Total long term liabilities                                                                      |   |      | 23,133 |   |      |   | 4,863 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Shareholders’ Equity:                                                                      |   |      |   |   |      |   |   |   |
| Common stock, $.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                                                                                |   |      | 31,644 |   |      |   | 19,813 |   |
| Treasury stock, at cost (25,119 shares on 4/30/11 and 18,400 shares on 4/30/10)                  |   |      | (444   | )      |      |   | (354 | ) |
| Accumulated other comprehensive income, net of tax                                               |   |      | 63     |   |      |   | (2 | ) |
| Total shareholders’ equity                                                                 |   |      | 33,254 |   |      |   | 21,448 |   |
|                                                                                             |   |      |   |   |      |   |   |   |
| Total liabilities and shareholders’ equity                                                 |   | $         | 87,803 |   |      | $      | 59,985 |   |

----

Consolidated Statements of Income

|                                                 |   | Years ended April 30, |      |
|------------------------------------------------------|--------|-----------------------|-----------|
|                                                 |   |                  |      |   |   |   |   |   |   |
|                                                 |   | 2011                  |      |   | 2010 |   |   | 2009 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |
| Revenues:                                            |   |                  |      |   |   |   |   |   |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Investment periodicals and related publications      |   | $                     | 34,406    |   |   | $ | 35,965 |   |   | $ | 39,935 |   |
| Copyright data fees                                  |   |                  | 3,568     |   |   |   | 3,243 |   |   |   | 4,333 |   |
| Investment management fees & services            |   |                  | 10,693    |   |   |   | 18,932 |   |   |   | 24,973 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total revenues                                       |   |                  | 48,667    |   |   |   | 58,140 |   |   |   | 69,241 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Expenses:                                            |   |                  |      |   |   |   |   |   |   |   |   |   |
| Advertising and promotion                            |   |                  | 6,673     |   |   |   | 9,346 |   |   |   | 10,874 |   |
| Salaries and employee benefits                       |   |                  | 17,242    |   |   |   | 16,314 |   |   |   | 17,676 |   |
| Production and distribution                          |   |                  | 4,718     |   |   |   | 5,244 |   |   |   | 5,868 |   |
| Office and administration                            |   |                  | 9,504     |   |   |   | 11,320 |   |   |   | 10,600 |   |
| Expenses related to restructuring                    |   |                  | 3,764     |   |   |   | - |   |   |   | - |   |
| Provision for settlement                             |   |                  | (1,767    | ) |   |   | 48,106 |   |   |   | - |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total expenses                                       |   |                  | 40,134    |   |   |   | 90,330 |   |   |   | 45,018 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Income/(loss) from operations                        |   |                  | 8,533     |   |   |   | (32,190 | ) |   |   | 24,223 |   |
| Gain from deconsolidation of subsidiaries            |   |                  | 50,510    |   |   |   | - |   |   |   | - |   |
| Revenues and profits interests in EAM Trust          |   |                  | 2,355     |   |   |   | - |   |   |   | - |   |
| Income from securities transactions, net             |   |                  | 65        |   |   |   | 837 |   |   |   | 11,625 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Income/(loss) before income taxes/(benefit)          |   |                  | 61,463    |   |   |   | (31,353 | ) |   |   | 35,848 |   |
| Provision for income taxes/(benefit)                 |   |                  | 23,681    |   |   |   | (8,165 | ) |   |   | 12,895 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Net income/(loss)                                    |   | $                     | 37,782    |   |   | ($ | 23,188 | ) |   | $ | 22,953 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Earnings/(loss) per share, basic & fully diluted |   | $                     | 3.79      |   |   | ($ | 2.32 | ) |   | $ | 2.30 |   |
|                                                 |   |                  |      |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares             |   |                  | 9,980,000 |   |   |   | 9,981,600 |   |   |   | 9,981,600 |   |

----

Consolidated Statements of Cash Flows

|                                                                                               |   | Years ended April 30, |    |
|----------------------------------------------------------------------------------------------------|--------|-----------------------|---------|
|                                                                                               |   | 2011                  |    |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                                              |   |                  |    |   |   |   |   |   |   |
| Net income/(loss)                                                                                  |   | $                     | 37,782  |   |   | ($ | 23,188 | ) |   | $ | 22,953 |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: |   |                  |    |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                  | 593     |   |   |   | 726 |   |   |   | 1,140 |   |
| Amortization of bond premiums                                                                      |   |                  | 13      |   |   |   | 1,042 |   |   |   | 1,655 |   |
| Gain on deconsolidation of subsidiaries                                                            |   |                  | (50,510 | ) |   |   | - |   |   |   | - |   |
| Post-employment non-cash compensation                                                              |   |                  | 1,770   |   |   |   | - |   |   |   | - |   |
| Profits interest in EAM Trust                                                                      |   |                  | (168    | ) |   |   | - |   |   |   | - |   |
| Revenues interest in EAM Trust                                                                     |   |                  | (2,187  | ) |   |   | - |   |   |   | - |   |
| Realized losses/(gains) on sales of securities                                                     |   |                  | 68      |   |   |   | (419 | ) |   |   | (9,470 | ) |
| Unrealized (gains)/losses on securities                                                            |   |                  | (5      | ) |   |   | 377 |   |   |   | (318 | ) |
| Deferred income taxes                                                                              |   |                  | 23,681  |   |   |   | (8,165 | ) |   |   | 109 |   |
| Expenses for operating lease exit obligation                                                       |   |                  | 914     |   |   |   | - |   |   |   | - |   |
| Writedown of software                                                                              |   |                  | -       |   |   |   | 727 |   |   |   | - |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities:                                                                 |   |                  |    |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of trading securities                                                          |   |                  | -       |   |   |   | 16,840 |   |   |   | 9,027 |   |
| Purchases of trading securities                                                                    |   |                  | -       |   |   |   | - |   |   |   | (6,583 | ) |
| (Decrease) in unearned revenue                                                                     |   |                  | (176    | ) |   |   | (1,820 | ) |   |   | (3,533 | ) |
| Increase in deferred charges                                                                       |   |                  | -       |   |   |   | - |   |   |   | 110 |   |
| Increase/(decrease) in reserve for settlement                                                      |   |                  | (2,783  | ) |   |   | 4,247 |   |   |   | - |   |
| (Decrease)/increase in accounts payable & accrued expenses                                     |   |                  | (1,524  | ) |   |   | 2,117 |   |   |   | (2,380 | ) |
| (Decrease) in accrued salaries                                                                     |   |                  | (318    | ) |   |   | (87 | ) |   |   | (33 | ) |
| Increase in accrued taxes payable                                                                  |   |                  | 91      |   |   |   | 388 |   |   |   | 263 |   |
| (Increase)/decrease in prepaid expenses and current assets                                         |   |                  | (35     | ) |   |   | 179 |   |   |   | (81 | ) |
| (Increase)/decrease in prepaid and refundable income taxes                                         |   |                  | 2,027   |   |   |   | (2,086 | ) |   |   | - |   |
| Decrease in accounts receivable                                                                    |   |                  | 82      |   |   |   | 672 |   |   |   | 380 |   |
| (Increase)/decrease in receivable from affiliates                                                  |   |                  | 1,345   |   |   |   | (208 | ) |   |   | 1,133 |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Total adjustments                                                                                  |   |                  | (27,122 | ) |   |   | 14,530 |   |   |   | (8,581 | ) |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Net cash (used in)/provided by operating activities                                                |   |                  | 10,660  |   |   |   | (8,658 | ) |   |   | 14,372 |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                              |   |                  |    |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of equity securities                                                           |   |                  | -       |   |   |   | - |   |   |   | 37,760 |   |
| Purchase of equity securities                                                                      |   |                  | (1,360  | ) |   |   | - |   |   |   | (9 | ) |
| Proceeds from sales of fixed income securities                                                     |   |                  | 38,021  |   |   |   | 69,941 |   |   |   | 45,526 |   |
| Purchases of fixed income securities                                                               |   |                  | (27,310 | ) |   |   | (48,039 | ) |   |   | (47,510 | ) |
| Cash contributed to deconsolidated subsidiary capital                                              |   |                  | (5,484  | ) |   |   | - |   |   |   | - |   |
| Revenues and profits received from EAM Trust                                                       |   |                  | 1,793   |   |   |   | - |   |   |   | - |   |
| Acquisition of property and equipment                                                              |   |                  | (106    | ) |   |   | (81 | ) |   |   | (203 | ) |
| Expenditures for capitalized software                                                              |   |                  | (1,801  | ) |   |   | (736 | ) |   |   | (983 | ) |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Net cash provided by/(used in) investing activities                                                |   |                  | 3,753   |   |   |   | 21,085 |   |   |   | 34,581 |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                              |   |                  |    |   |   |   |   |   |   |   |   |   |
| Purchase of treasury stock at cost                                                                 |   |                  | (90     | ) |   |   | - |   |   |   | - |   |
| Dividends paid                                                                                     |   |                  | (23,956 | ) |   |   | (38,928 | ) |   |   | (14,972 | ) |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Net cash used in financing activities                                                              |   |                  | (24,046 | ) |   |   | (38,928 | ) |   |   | (14,972 | ) |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Net increase/(decrease) in cash and cash equivalents                                               |   |                  | (9,633  | ) |   |   | (26,501 | ) |   |   | 33,981 |   |
| Cash and cash equivalents at beginning of year                                                     |   |                  | 16,435  |   |   |   | 42,936 |   |   |   | 8,955 |   |
|                                                                                               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                           |   | $                     | 6,802   |   |   | $ | 16,435 |   |   | $ | 42,936 |   |

----

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

|                                                   |   | Common stock |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |
|--------------------------------------------------------|--------|--------------|-----------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|----------|--------|---------|---------------|--------|
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    | Accumulated   |   |   |   |   |
|                                                   |   | Number       |      |   | Par    |   |   | Additional |   |   |     |   |   |          |   |   |     |   |    | Other         |   |   |   |   |
|                                                   |   | of           |      |   | Value  |   |   | paid-in    |   |   | Treasury |   |   | Comprehensive |   |   | Retained |   |    | Comprehensive |   |   |   |   |
|                                                   |   | shares       |      |   | Amount |   |   | capital    |   |   | Stock    |   |   | income/(loss) |   |   | earnings |   |    | income/(loss) |   |   | Total |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |
| Balance at April 30, 2008                              |   |         | 9,981,600 |   |   | $      | 1,000  |       |   | $      | 991      |   |   | $             | (354   | )      |     |   |    |          | $      | 70,954 |   |   | $ | 15,263 |   |   | $ | 87,854 |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                             |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | 22,953  |          |   |   | 22,953 |   |   |   |   |   |   |   | 22,953 |   |
| Other comprehensive income/(loss), net of tax:         |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gains on securities, net of taxes |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   | (14,966 | )             |   |   |   |   |   |   | (14,966 | ) |   |   | (14,966 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | 7,987   |          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared                                     |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   | (14,972 | ) |   |   |   |   |   |   | (14,972 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at April 30, 2009                              |   |         | 9,981,600 |   |   | $      | 1,000  |       |   | $      | 991      |   |   | $             | (354   | )      |     |   |    |          |   | $ | 78,935 |   |   | $ | 297 |   |   | $ | 80,869 |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                             |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | (23,188 | )             |   |   | (23,188 | ) |   |   |   |   |   |   | (23,188 | ) |
| Other comprehensive income/(loss), net of tax:         |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gains on securities, net of taxes |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   | (299    | )             |   |   |   |   |   |   | (299 | ) |   |   | (299 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | (23,487 | )             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared                                     |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   | (35,934 | ) |   |   |   |   |   |   | (35,934 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at April 30, 2010                              |   |         | 9,981,600 |   |   | $      | 1,000  |       |   | $      | 991      |   |   | $             | (354   | )      |     |   |    |          |   | $ | 19,813 |   |   | $ | (2 | ) |   | $ | 21,448 |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income/(loss)                            |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                             |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | 37,782  |          |   |   | 37,782 |   |   |   |   |   |   |   | 37,782 |   |
| Other comprehensive income/(loss), net of tax:         |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gains on securities, net of taxes |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   | 65      |          |   |   |   |   |   |   | 65 |   |   |   | 65 |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income/(loss)                            |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     | $      | 37,847  |          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of treasury stock                             |   |         | (6,719    | )      |   |   |   |       |   |   |     |   |   | $             | (90    | )      |     |   |    |          |   |   |   |   |   |   |   |   |   |   | (90 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared                                     |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   | (25,951 | ) |   |   |   |   |   |   | (25,951 | ) |
|                                                   |   |         |      |   |   |   |   |       |   |   |     |   |   |          |   |   |     |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at April 30, 2011                              |   |         | 9,974,881 |   |   | $      | 1,000  |       |   | $      | 991      |   |   | $             | (444   | )      |     |   |    |          |   | $ | 31,644 |   |   | $ | 63 |   |   | $ | 33,254 |   |

----

Notes to Consolidated 

| Note 1-Organization and Summary of Significant Accounting Policies:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Value Line, Inc. (the “Company” or “VLI”) is incorporated in the State of New York.  The Company’s primary businesses are producing investment related periodical publications and making available copyright data including certain Value Line trademarks and Value Line proprietary ranking system information to third parties under written agreements for use in third party managed and marketed investment products.  Prior to December 23, 2010 (the “Restructuring Date”), VLI, through its direct subsidiary EULAV Asset Management LLC (“EAM LLC”), provided investment management services to the Value Line Mutual Funds (“Value Line Funds” or the “Funds”), institutions and individual accounts, and, through EAM LLC’s subsidiary EULAV Securities, Inc. (“ESI”), provided distribution, marketing, and administrative services to the Value Line Funds.  On December 23, 2010, the Company deconsolidated the asset management and mutual fund distribution subsidiaries and exchanged its controlling interest in these subsidiaries for a non-voting revenues interest and a non-voting profits interest in EULAV Asset Management, a Delaware business trust (“EAM”), the successor to EAM LLC and the sole member of EULAV Securities LLC (“ES”), the successor to ESI, (the “Restructuring Transaction”).  VLI also recorded as post-employment compensation expense the value of a voting profits interest in EAM granted to one of the Trustees of EAM, a former VLI employee.  Pursuant to the EAM Declaration of Trust dated as of December 23, 2010 (the “EAM Trust Agreement”), VLI granted EAM the right to use the Value Line name for all existing Value Line Funds and agreed to supply, without charge or expense, the Value Line Proprietary Ranking information to EAM for use in managing the Value Line Funds.  The name “Value Line” as used to describe the Company, its products, and its subsidiaries, is a registered trademark of the Company.  Additional rights of the Company under the agreement as discussed in Note 15 - Legal Proceedings and Restructuring.  |
| Principles of consolidation:  The Company follows the guidance in FASB Topic 810 “Consolidation” to determine if it should consolidate its investment in a variable interest entity (VIE). A VIE is a legal entity in which either (i) equity investors do not have sufficient equity investment at risk to enable the entity to finance its activities independently or  (ii) the equity holders at risk lack the obligation to absorb losses, the right to receive residual returns or the right to make decisions about the entity’s activities that most significantly affect the entity’s economic performance.  A holder of a variable interest in a VIE is required to consolidate the entity if it is determined that it has a controlling financial interest in the VIE and is therefore the primary beneficiary.  The determination of a controlling financial interest in a VIE is based on a qualitative assessment to indentify the variable interest holder, if any, that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) either the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE.  The accounting guidance requires the Company to perform an ongoing assessment of whether the Company is the primary beneficiary of a variable interest entity.  For fiscal 2011, the Company has determined it is not the primary beneficiary of a VIE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| In accordance with FASB’s Topic 810, the assets, liabilities, and results of operations of subsidiaries in which the Company has a controlling interest have been consolidated.  All significant intercompany accounts and transactions have been eliminated in consolidation.  On December 23, 2010, the Company completed the Restructuring Transaction and deconsolidated the related affiliates in accordance with FASB’s Topic 810.  As part of the Restructuring Transaction, the Company received a significant non-voting interest in the revenues (excluding distribution revenues) and a non-voting profits interest in the new entity, EAM.  The Company relied on the guidance in FASB’s ASC Topics 323 and 810 in its determination not to consolidate its investment in EAM and to account for such investment under the equity method of accounting. The Company reports the amount it receives for its non-voting revenues and non-voting profits interests as a separate line item below operating income in the Consolidated Statement of Income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Accounting Standards Codification:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |
| During fiscal year 2010, the Company adopted the Financial Accounting Standards Board’s (FASB’s) Accounting Standards Codification (ASC). The FASB’s ASC is the source of authoritative U.S. accounting and reporting standards for nongovernmental entities, in addition to guidance issued by the SEC.  The FASB’s ASC reorganized the thousands of U.S. GAAP pronouncements into roughly 90 accounting topics and displays all topics using a consistent structure. Although not the official source, it also includes relevant portions of authoritative SEC guidance that follows the same topical structure in separate sections in the Codification.  The financial statements of the Company have been updated to reflect the relevant references to the FASB’s ASC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Revenue Recognition:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
| Depending upon the product, subscription fulfillment for Value Line publications is available in print, via internet access  and CD-ROM.  The length of a subscription varies by product and offer received by the subscriber.  Generally, subscriptions are available as trial subscriptions, annual subscriptions and/or multi-year subscriptions.  Subscription revenues are recognized on a straight line basis over the life of the subscription.  Accordingly, the amount of subscription fees to be earned by fulfilling subscriptions after the date of the balance sheet is shown as unearned revenue within current and long-term liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Copyright data revenues are derived from providing certain Value Line trademarks and Value Line proprietary ranking system information to third parties under written agreements for use in selecting securities for third party marketed products, including unit investment trusts, annuities and exchange traded funds.  The Company earns asset-based copyright data fees as specified in the individual agreements.  Revenue is recognized monthly over the term of the agreement and, because it is asset-based, will fluctuate as the market value of the underlying portfolio increases or decreases in value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

Notes to Consolidated 

| Prior to the Restructuring Date, the Company earned investment management fees that consisted of management fees from the Value Line Funds and from asset management clients.  Investment management fees for the Funds were earned on a monthly basis as services were performed.  The fees were calculated based on average daily net assets of the Funds in accordance with each Fund’s advisory agreement (see Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The management fees and average daily net assets for the Value Line Funds are calculated by State Street Bank, which serves as the fund accountant, fund administrator, and custodian of the Value Line Funds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Value Line Funds are open-end management companies registered under the Investment Company Act of 1940.   Shareholder transactions for the Value Line Funds are processed each business day by the third party transfer agent of the Funds.  Shares can be redeemed without advance notice upon request of the shareowners each day that the New York Stock Exchange is open.  Prior to December 1, 2010, EAM LLC, in addition to managing the Value Line Funds, separately managed accounts of institutions and high net worth individuals for which it was paid an advisory fee.  EAM had no separately managed accounts as of April 30, 2011.  Assets within the separately managed accounts were held at third party custodians, were subject to the terms of the applicable advisory agreement and did not have any advance notice requirement for withdrawals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Also, prior to the Restructuring Date, service and distribution fees were received from the Value Line Funds in accordance with service and distribution plans under rule 12b-1 of the Investment Company Act of 1940.  These plans are compensation plans, which means that the distributor’s fees under the plans are payable without regard to actual expenses incurred by the distributor, and therefore the distributor may earn a profit under the plan.  Expenses incurred by ESI, the distributor of the Value Line Funds prior to the Restructuring Date, included payments to securities dealers, banks, financial institutions and other organizations that provided distribution, marketing, and administrative services with respect to the Value Line Funds.  Service and distribution fees are received by the distributor on a monthly basis and calculated based upon the average daily net assets of the respective Fund in accordance with each Fund prospectus (see Note 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
| Investment in Unconsolidated Entities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |
| The Company accounts for its investments in unconsolidated entities (EAM) using the equity method of accounting in accordance with FASB’s ASC 323.  The equity method is an appropriate means of recognizing increases or decreases measured by generally accepted accounting principles (“GAAP”) in the economic resources underlying the investments.  Under the equity method, an investor recognizes its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend or distribution. An investor adjusts the carrying amount of an investment for its share of the earnings or losses recognized by the investee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company’s “interests” in EAM,  the investment adviser to and the sole member of the distributor of the Value Line Funds, consist of a  “non-voting revenue interest” and a “non-voting profits interest” in EAM.  The non-voting revenue interest entitles the Company to receive a range of 41% to 55% (depending on the amount of revenues) of EAM’s adjusted gross revenues (excluding ES’ distribution revenues).  The non-voting profits interest entitles the Company to receive 50% (subject to certain limited adjustments) of the profits (as defined in the EAM Trust Agreement) of EAM.  The revenue interest and at least 90% of the profits interest are to be distributed each quarter to all interest holders of EAM, including Value Line.  Subsequent to December 23, 2010, the Company’s revenue interest in EAM excludes participation in the service and distribution fees of EAM’s subsidiary ES.   The Company reflects its non-voting revenue and non-voting profits interests in EAM as non-operating income under the equity method of accounting subsequent to the Restructuring Transaction.  Although the Company does not have control over the operating and financial policies of EAM, pursuant to the EAM Trust Agreement, it does have a contractual right to receive these revenues and profits.  On December 23, 2010, VLI agreed  to distribute a voting profits interest in EAM to one of the Trustees of EAM, Mr. Mitchell E. Appel, a former employee of VLI.  The Company has recorded post-employment compensation expense in its Consolidated  Statements of Income of $1,770,000, the value assigned to the voting profits interest granted to Mr. Appel. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Valuation of Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| The Company’s securities classified as cash equivalents and available-for-sale consist of shares of Money Market Funds that invest primarily in short-term U.S. Government securities, investments in exchange traded equity funds, shares of equity securities in various publicly traded companies, government debt securities, and FDIC insured commercial paper and are valued in accordance with the requirements of the Fair Value Measurements Topic of the FASB’s ASC 820.  The securities available-for-sale reflected in the Consolidated  Balance Sheets are valued at market  and unrealized gains and losses on securities classified as available-for-sale, net of applicable taxes, are reported as a separate component of Shareholders’ Equity. Realized gains and losses on sales of the securities classified as available-for-sale are recorded in earnings on trade date and are determined on the identified cost method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The Company classifies its securities available-for-sale as current assets. It does so to properly reflect its liquidity and to recognize the fact that it has liquid assets available-for-sale should the need arise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Market valuation of securities listed on a securities exchange is based on the closing sales prices on the last business day of each month. Valuation of exchange traded funds shares is based upon the publicly quoted price of the shares listed on a securities exchange. The market value of the Company’s fixed maturity government debt obligations is determined utilizing publicly quoted market prices.  Cash equivalents consist of investments in Money Market Funds that invest primarily in U.S. Government securities at $1 per share in accordance with rule 2a-7 under the Investment Company Act of 1940.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

Notes to Consolidated 

| The Fair Value Measurements Topic of FASB’s ASC defines fair value as the price that the Company would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The  Fair Value Measurements Topic established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the information that market participants would use in pricing the asset or liability, including assumptions about risk. Examples of risks include those inherent in a particular valuation technique used to measure fair value such as the risk inherent in the inputs to the valuation technique. Inputs are classified as observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 1 – quoted prices in active markets for identical investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The valuation techniques used by the Company to measure fair value for Level 1 securities consisted of quoted prices in active markets for identical assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The following is a summary of the inputs used as of April 30, 2011 in valuing the Company’s investments carried at fair value:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

|                                          |   | (in thousands)    |    |
|-----------------------------------------------|--------|-------------------|---------|
| Valuation Inputs                              |   | Total Investments |    |   | CashEquivalents |   |   | Investments inSecuritiesAvailable-for-Sale |   |
| Level 1 - quoted prices                       |   |              | $18,832 |   |   |   | $6,158 |   |   |   | $12,674 |   |
| Level 2 - other significant observable inputs |   |              | -       |   |   |   | - |   |   |   | - |   |
| Level 3 - significant unobservable inputs     |   |              | -       |   |   |   | - |   |   |   | - |   |
| Total                                         |   |              | $18,832 |   |   |   | $6,158 |   |   |   | $12,674 |   |
|                                          |   |              |    |   |   |   |   |   |   |   |   |   |

|                                          |   |              |    |   | (in thousands)  |   |    |                                       |   |
|-----------------------------------------------|--------|-------------------|---------|--------|-----------------|--------|---------|--------------------------------------------|--------|
| Valuation Inputs                              |   | Total Investments |    |   | CashEquivalents |   |    | Investments inSecuritiesAvailable-for-Sale |   |
| Level 1 - quoted prices                       |   |              | $39,472 |   |            |   | $15,943 |                                       |   |   | $23,529 |   |
| Level 2 - other significant observable inputs |   |              | -       |   |            |   | -       |                                       |   |   | - |   |
| Level 3 - significant unobservable inputs     |   |              | -       |   |            |   | -       |                                       |   |   | - |   |
| Total                                         |   |              | $39,472 |   |            |   | $15,943 |                                       |   |   | $23,529 |   |

| The Company had no other financial instruments including futures, forwards and swap contracts. For the periods ended April 30, 2011 and April 30, 2010, there were no Level 2 nor Level 3 investments. The Company does not have any liabilities subject to Fair Value Measurement.                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Advertising expenses:  The Company expenses advertising costs as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Reclassification:  Certain items in the prior year financial statements have been reclassified to conform to the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Income Taxes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| The Company computes its income tax provision in accordance with the Income Tax Topic of the FASB’s ASC.  Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book values and the tax bases of particular assets and liabilities, using tax rates currently in effect for the years in which the differences are expected to reverse. |

----

Notes to Consolidated 

| The Income Tax Topic of the FASB’s ASC establishes for all entities, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures.  As of April 30, 2011, management has reviewed the tax positions for the years still subject to tax audit under the statute of limitations, evaluated the implications, and determined that there is no material impact to the Company’s financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Earnings per share:  Earnings per share are based on the weighted average number of shares of common stock and common stock equivalents outstanding during each year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Cash and Cash Equivalents:  For purposes of the Consolidated Statements of Cash Flows, the Company considers all cash held at banks and short term liquid investments with an original maturity of less than three months to be cash and cash equivalents. As of April 30, 2011 and 2010, cash equivalents included $6,158,000 and $15,946,000, respectively, invested in mutual funds that invest in U.S. Government Securities and bank certificates of deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Expenses Associated with Restructuring:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |
| The Company expenses  all costs associated with the Restructuring Transaction as incurred (see Note 15 “Legal Proceedings and Restructuring”). In addition, as mentioned above, the Company recorded as post-employment compensation expense the value of the voting profits interest in EAM granted to a former employee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Note 2-Supplementary Cash Flow Information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Cash payments for income taxes were $363,000, $2,406,000, and $12,464,000 in fiscal 2011, 2010, and 2009, respectively. Interest payments of $2,000, $21,000, and $18,000 were made during fiscal 2011, 2010, and 2009, respectively.  The Company also received $1,598,000 of federal income tax refunds during the first quarter of fiscal 2011, which was included as prepaid and refundable income taxes as in the Consolidated Balance Sheet of April 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| On December 23, 2010, the Company completed the Restructuring Transaction which included the receipt of a non-voting revenues interest and a non-voting profits interest in EAM in exchange for VLI’s voting shares in EAM LLC and ESI. This investment, classified as Investment in EAM on the Consolidated  Balance Sheet, was valued at $55,805,000 as of December 23, 2010, which included $5,484,000 of cash and $1,516,000 of FDIC insured corporate notes, contributed by VLI to EAM as part of the Restructuring Transaction. The Company satisfied its post-employment compensation obligation, valued at $1,770,000, by granting a voting profits interest to a former employee in connection with the Transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Note 3-Related Party Transactions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Investment Management Segment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| As discussed in Note 1 above, prior to December 23, 2010, the Company’s former direct subsidiary EAM LLC was the investment adviser and manager for  the Value Line Funds, and EAM LLC’s subsidiary ESI was the distributor for the Funds.  EAM LLC earned investment management fees based upon the average daily net asset values of the respective Value Line Funds.  Service and distribution fees were received by ESI from the Value Line Funds in accordance with service and distribution plans under rule 12b-1 of the Investment Company Act of 1940.  These plans are compensation plans, which means that the distributor’s fees under the plans are payable without regard to actual expenses incurred by the distributor, and therefore the distributor may earn a profit under the plans.  Expenses incurred by ESI included payments to securities dealers, banks, financial institutions and other organizations which provided distribution, marketing, and administrative services (including payments by ESI to VLI for allocated compensation and administration expenses) with respect to the distribution of the Funds’ shares.  Service and distribution fees were received on a monthly basis and calculated based upon the average daily net assets of the respective Fund in accordance with each Fund’s prospectus. |
| For the period from May 1, 2010 through December 23, 2010, investment management fees and 12b-1 service and distribution fees amounted to $10,584,000 after giving effect to account fee waivers for certain of the Value Line Funds. These amounts included 12b-1 service and distribution fees of $2,308,000, earned by ESI for the  period from May 1, 2010 through December 23, 2010.  For the period from May 1, 2010 through December 23, 2010, total management fee waivers were $513,000 and 12b-1 fee waivers were $1,651,000.  With limited exceptions, the Company, EAM LLC and ESI, have no right to recoup the previously waived amounts of management fees and 12b-1 fees.  Any such recoupment is subject to the provisions of the applicable prospectus.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| For the twelve months ended April 30, 2010 and 2009, investment management fees and 12b-1 service and distribution fees amounted to $18,710,000 and $24,109,000, respectively, after giving effect to account fee waivers for certain of the Value Line Funds. These amounts included service and distribution fees of $4,123,000 and $5,373,000, earned by ESI in fiscal years 2010 and 2009, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| For the twelve months ended April 30, 2010 and 2009, total management fee waivers were $898,000 and $208,000, respectively, and service and distribution fee waivers were $2,642,000 and $2,889,000, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

Notes to Consolidated 

| For the period from May 1, 2010 through December 23, 2010 and twelve months ended April 30, 2010, separately managed account revenues including revenues from Arnold Bernhard and Company, Inc., the controlling stockholder of the Company (“Parent”), were $109,000 and $222,000, respectively.   The separately managed account agreements with the Parent were terminated effective December 1, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The Company held a related party receivable due from EAM of $514,000 at April 30, 2011 for the unpaid portion of Value Line’s non-voting revenues interest. The non-voting revenues interest due from EAM are payable quarterly under the provisions of the EAM Trust Agreement.  At April 30, 2010, the related party receivables included in Receivables from the Value Line Funds were $1,516,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| EAM Trust - VLI’s non-voting revenue and profits interests:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| As a result of the completion of the Restructuring Transaction on December 23, 2010, the Company no longer shares in distribution services revenues.  The Company receives quarterly payments from EAM in a range of 41% to 55% of EAM’s investment management fees, which it records as non-operating revenues on a monthly basis.  During the period from December 23, 2010 through April 30, 2011, the Company recorded non-voting revenues interest and non-voting profits interest from EAM $2,187,000 and $168,000, respectively, as non-operating income from its equity investment in EAM.  On a transitional basis EAM and ES occupied a portion of the premises that the Company leases from a third party.  The Company received $189,000 during the period from December 23, 2010 to April 30, 2011 for rental and certain accounting and other administrative support services provided to EAM on a transitional basis.  In accordance with the terms of the Restructuring Transaction and the EAM Trust Agreement, EAM vacated the Company’s premises before June 1, 2011.  |
| On March 11, 2010, VLI and the Boards of Trustees/Directors of the Value Line Funds entered into an agreement providing for VLI to reimburse the Funds in the aggregate amount of $917,302 for various past expenses incurred by the Funds in connection with the SEC Settlement described to in Note 15. The payable for this expense reimbursement was included in the reserve for settlement expenses on the Consolidated  Balance Sheet of the Company as at April 30, 2010 and the reimbursement was paid in full by VLI in October 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Transactions with Parent:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| For the years ended April 30, 2011, 2010 and 2009, the Company was reimbursed $356,000, $2,105,000, and $926,000, respectively, for payments it made on behalf of and services it provided to the Parent.  At April 30, 2011, and 2010, the Receivables from affiliates included  receivables from the Parent of $39,000 and $5,000, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|  The Company is a party to a tax-sharing arrangement with the Parent which allocates the tax liabilities of the two Companies between them.  For the years ended April 30, 2011, 2010, and 2009, the Company made  payments to the Parent for federal income tax amounting to $348,000, $1,875,000, and $10,958,000, respectively. At April 30, 2010, prepaid and refundable income taxes in the Consolidated Balance Sheet included $1,598,000 of prepaid federal income tax due from the Parent, which was paid to the Company during fiscal 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 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, although the Parent has suspended purchases of Value Line shares until Value Line’s share repurchase program is complete (see Note 14). As at April 30, 2011, the Parent owns approximately 86.6% of the issued and outstanding shares of common stock of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Note 4-Investments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |
| Securities Available-for-Sale:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Securities held by the Company and its subsidiaries are classified as available-for-sale securities in accordance with FASB’s ASC 320, Investments - Debt and Equity Securities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Equity Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |
| As of April 30, 2011, the aggregate cost of the equity securities classified as available-for-sale, which consist of investments in the First Trust Value Line Dividend, PGF PowerShares preferred stock and S&P Dividend ETFs, and certain shares of equity securities was $1,360,000 and the market value was $1,466,000. The Company did not hold any equity securities as of April 30, 2010 or 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The increase in gross unrealized gains on equity securities classified as available-for-sale due to changes in market conditions of $106,000, net of deferred  taxes of $37,000, was included in Shareholders’ Equity at April 30, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The proceeds from sales of equity securities classified as available-for-sale during the twelve months ended April 30, 2009 were $37,760,000 and the related capital gains, net of capital losses, were $9,539,000, which were reclassified to net income from Accumulated Other Comprehensive Income. The decreases in gross unrealized gains on equity securities classified as available-for-sale due to changes in market conditions of $14,356,000, net of deferred  taxes of $5,054,000, were included in Shareholders’ Equity at April 30, 2009.  There were no sales or proceeds from sales of equity securities during the fiscal years ended April 30, 2011, and 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

Notes to Consolidated 

|                                                  |   |   |   |   |   |   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Government Debt Securities (Fixed Income Securities): |   |   |   |   |

|                                           |   | (in thousands) |    |
|------------------------------------------------|--------|----------------|---------|
|                                           |   | Historical     |    |   |   |   |   | Gross Unrealized |   |
| Maturity                                       |   |           | Cost    |   |   | Fair Value |   |   | Holding Gains/(Losses) |
| Due within 1 year                              |   |           | $11,217 |   |   |   | $11,208 |   |   |   | ($9 | ) |
| Total investment in government debt securities |   |           | $11,217 |   |   |   | $11,208 |   |   |   | ($9 | ) |
|                                           |   |           |    |   |   |   |   |   |   |   |   |   |

|                                           |
|------------------------------------------------|
|                                           |   | (in thousands) |   |
|                                           |   | Historical |   |   |   |   |   | Gross Unrealized |
| Maturity                                       |   |   | Cost |   |   | Fair Value |   |   | Holding Gains/(Losses) |
| Due within 1 year                              |   |   | $22,012 |   |   |   | $22,014 |   |   |   | $2 |   |
| Due after 1 year through 5 years               |   |   | 1,520 |   |   |   | 1,515 |   |   |   | (5 | ) |
| Total investment in government debt securities |   |   | $23,532 |   |   |   | $23,529 |   |   |   | ($3 | ) |

| The increase in gross unrealized  losses of $74,000 and $285,000 on fixed income securities classified as available-for-sale net of deferred income tax of $26,000 and $100,000, respectively, were included in Accumulated Other Comprehensive Income on the Consolidated Balance Sheets as of April 30, 2011 and 2010, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Proceeds from sales of government debt securities classified as available-for-sale during fiscal years 2011, 2010, and 2009 were $38,021,000, $69,941,000, and $45,526,000, respectively. During fiscal 2011, losses on sales of fixed income securities of $68,000 were reclassified from Accumulated Other Comprehensive Income in the Balance Sheet to the Consolidated Statement of Income.  During fiscal 2010, capital gains net of capital losses on sales of fixed income securities of $176,000  were reclassified from Accumulated Other Comprehensive Income in the Balance Sheet to the Consolidated Statement of Income.  During fiscal 2009, gains on sales of fixed income securities of $242,000 and losses of $416,000  were reclassified from Accumulated Other Comprehensive Income in the Balance Sheet to the Consolidated Statement of Income.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  The average yield on the Government debt securities classified as available-for-sale at April  30, 2011 and April 30, 2010 was 0.24% and 0.54%, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| For the years ended April 30, 2011, 2010, and 2009, income from securities transactions also included $16,000, $3,000, and $239,000 of dividend income; $118,000, $856,000, and $1,228,000 of interest income, net of bond amortization of $14,000, $1,042,000 and $1,655,000 during fiscal years of 2011, 2010, and 2009, respectively. In fiscal years of 2011, 2010, and 2009 income from securities transactions also included $2,000, $21,000, and $18,000 of related interest expense, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |
| Investment in Unconsolidated Entities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |
| Equity Method Investment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| The Company has recorded an asset, Investment in EAM, on its consolidated  balance sheet with an initial valuation as of December 23, 2010, of $55,805,000 as a result of the deconsolidation of EAM LLC and ESI, the former asset management and mutual fund distribution subsidiaries.  In accordance with the Consolidation Topic of the FASB’s ASC, the Company recognized a pre-tax gain in net income of $50,510,000 measured as the difference between the fair value of the consideration received, including satisfaction of its post-employment compensation obligation of $1,770,000, less the carrying value of the former subsidiaries’ assets and liabilities. In addition, the Company incurred expenses of $3,764,000 associated with the divestiture. The value of VLI’s investment in EAM at April 30, 2011 reflects the fair value at December 23, 2010 of the non-voting revenues and profits interest received in the Restructuring Transaction, plus $5,700,000 of cash and liquid securities in excess of working capital requirements contributed to EAM’s capital account by VLI on December 23, 2010, and $168,000 of non-voting earnings from EAM less $120,000 of earnings distributed to VLI by EAM during the period from December 23, 2010 through April 30, 2011.  |
| The Company utilized the services of valuation consultants to determine the fair value of the EAM asset and the value of the voting profits interest granted to its former employee.  The valuation methodologies utilized by the third party valuation consultants included a discounted cash flow analysis and market method calculations to determine the fair value of VLI’s non-voting revenues and profits interest and the fair value of the voting profits interest granted to a former employee. Based upon the results of the valuations and cash and other assets transferred by VLI to EAM in the transaction, the Company recorded a fair value of $55,805,000 for VLI’s non-voting EAM Trust investment. The Company recorded $1,770,000 as post-employment compensation expense, the value of the voting profits interest granted to a former employee of the Company who is one of the Trustees of EAM and is presently the CEO of EAM.                                                                                                                                                                                                                                                                                                                                                                       |

----

Notes to Consolidated 

| The Company monitors this asset for impairment to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment.  Impairment indicators include, but are not limited to the following: (a) a significant deterioration in the earnings performance, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of the industry in which the investee operates, or (d) factors that raise significant concerns about the investee’s ability to continue as a going concern such as negative cash flows, working capital deficiencies, or noncompliance with statutory capital requirements.  EAM did not record any impairment losses for its assets during fiscal year 2011.                                                                                 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| EAM’s overall results before distributions to all interest holders, including Value Line for the period from December 23, 2010 through April 30, 2011 consist of  total management fees earned from the Value Line Funds of $4,592,000, service and distribution (12b-1) fees of $1,293,000 and other income of $2,000.  For the same period, total management fee waivers were $303,000 and 12b-1 fee waivers were $855,000.  The Company recorded income of $2,187,000 for its non-voting revenues interest in EAM for the period from December 23, 2010 to April 30, 2011. Operating expenses of EAM for the period from December 23, 2010 through April 30, 2011, were $3,364,000 which included payments to the Company for its non-voting revenues interest and EAM’s net income was $336,000 available for distribution to profit interest holders.   At April 30, 2011, EAM’s total assets were $57,780,000, total liabilities were $1,543,000 and total equity was $56,237,000. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Note 5: Variable Interest Entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| As discussed in Note 15, as part of the Restructuring Transaction, the Company retained a  non-voting revenues interest and a 50% non-voting profits interest in EAM, which was formed to carry on the asset management and mutual fund distribution businesses formerly conducted by Value Line and its subsidiaries.  EAM is considered to be a variable interest entity.  The Company makes its determination for consolidation of EAM as a variable interest entity based on a qualitative assessment of the purpose and design of EAM, the terms and characteristics of the variable interests in EAM, and the risks EAM is designed to originate and pass through to holders of variable interests.  Other than EAM, the Company does not have an interest in any other variable interest entities.                                                                                                                                                                                                       |
|  Value Line has determined that it does not have a controlling financial interest in EAM because it does not have the power to direct the activities of EAM that most significantly impact its economic performance.  Value Line does not hold any voting stock of EAM and it does not have any involvement in the day to day activity or operations of EAM.  Although the EAM Trust Agreement provides Value Line with certain consent rights and contains certain restrictive covenants related to the activities of EAM, these are considered to be protective rights and therefore Value Line does not maintain control over EAM.                                                                                                                                                                                                                                                                                                                                                                                          |
| In addition, although EAM is expected to be profitable, there is a risk that it could operate at a loss.   While all of the profit interest shareholders in EAM are subject to variability based on EAM’s operations risk, Value Line’s revenue interest in EAM is a preferred interest in the revenues of EAM, rather than a profits interest in EAM, and Value Line accordingly believes it is subject to proportionately less risk than other holders of the profits interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| The Company has not provided any explicit or implicit financial or other support to EAM other than what was contractually agreed to in the EAM Trust Agreement.  Value Line has no obligation to fund EAM in the future and as a result has no exposure to loss beyond its initial investment and any undistributed revenues and profits interests retained in EAM.  The following table presents permitted by the Trust Agreement to be the total assets of EAM, the maximum exposure to loss due to involvement with EAM, as well as the value of the assets and liabilities the Company has recorded for its interest in EAM as of April 30, 2011.                                                                                                                                                                                                                                                                                                                                                                               |

|      |   |           |   |   |        |   |   |       |   |   |       |   |   |        |   |
|-----------|--------|----------------|--------|--------|-------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|
|      |   | (In thousands) |   |
|      |   | VIE Assets     |   |   | Maximum     |   |   |       |   |   | Revenues   |   |   | Liabilities |   |
|      |   |           |   |   | Exposure to |   |   | Investment |   |   | Receivable |   |   |        |   |
|      |   |           |   |   | Loss        |   |   |       | (1)    |   |       |   | (2)    |        |   |   |   |
|      |   |           |   |   |        |   |   |       |   |   |       |   |   |        |   |   |   |
| EAM Trust |   | $              | 57,780 |   |        | $      | 56,367 |       |   | $      | 55,853     |   |   | $           | 514    |   |   | $ | - |   |

| (1)  Reported within Long Term Assets on Consolidated Balance Sheets.(2)  Reported within Current Assets on the Consolidated Balance Sheets.                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Note 6-Property and Equipment:                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Property and equipment are carried at cost.  Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the remaining terms of the leases.  For income tax purposes, depreciation of furniture and equipment is computed using accelerated methods and buildings and leasehold improvements are depreciated over prescribed extended tax lives. |

----

Notes to Consolidated 

| Property and equipment consist of the following: |   |           |    |   |   |   |
|--------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                             |   | April 30,      |    |
|                                             |   | 2011           |    |   | 2010   |   |
|                                             |   | (in thousands) |    |
|                                             |   |           |    |   |   |   |
| Land                                             |   | $              | 726     |   |   | $      | 726 |   |
| Building and leasehold improvements              |   |           | 7,283   |   |   |   | 7,283 |   |
| Furniture and equipment                          |   |           | 10,907  |   |   |   | 10,847 |   |
|                                             |   |           | 18,916  |   |   |   | 18,856 |   |
| Accumulated depreciation and amortization        |   |           | (14,832 | )      |   |   | (14,599 | ) |
|                                             |   | $              | 4,084   |   |   | $      | 4,257 |   |

| Note 7-Federal, State and Local Income Taxes:                                                                                      |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                               |   |   |   |   |   |   |   |
| The Company computes its income tax provision in accordance with the requirements of the Income Tax Topic of the FASB’s ASC. |
| The provision for income taxes includes the following:                                                                             |   |   |   |   |

|                                              |   | Year ended April 30, |   |
|---------------------------------------------------|--------|----------------------|--------|
|                                              |   | 2011                 |   |   | 2010 |   |   | 2009 |   |
|                                              |   | (in thousands)       |   |
| Current tax expense/(benefit):                    |   |                 |   |   |   |   |   |   |   |
|   Federal                               |   | $                    | 356    |   |   |   | - |   |   | $ | 11,410 |   |
|   State and local                       |   |                 | (413   | ) |   |   | - |   |   |   | 1,290 |   |
|                                              |   |                 | (57    | ) |   |   | - |   |   |   | 12,700 |   |
| Deferred tax expense/(benefit):                   |   |                 |   |   |   |   |   |   |   |   |   |   |
|   Federal                               |   |                 | 20,535 |   |   |   | (7,086 | ) |   |   | 212 |   |
|   State and local                       |   |                 | 3,203  |   |   |   | (1,079 | ) |   |   | (17 | ) |
|                                              |   |                 | 23,738 |   |   |   | (8,165 | ) |   |   | 195 |   |
|   Provision for income taxes/(benefit): |   | $                    | 23,681 |   |   | ($ | 8,165 | ) |   | $ | 12,895 |   |

| Deferred income taxes are provided for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities.  The tax effect of temporary differences giving rise to the Company’s deferred tax assets/(liability) are as follows: |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Year ended April 30, |   |
|--------------------------------------------------------------|--------|----------------------|--------|
| Short term deferred tax assets                               |   | 2011                 |   |   | 2010 |   |
|                                                         |   | (in thousands)       |   |
|                                                         |   |                 |   |   |   |   |
| Federal tax benefit from net operating loss                  |   | $                    | 2,226  |   |   | $ | 6,766 |   |
| State and city tax benefit from net operating loss           |   |                 | 268    |   |   |   | 1,081 |   |
| Unrealized gains on securities held for sale                 |   |                 | (34    | ) |   |   | (1 | ) |
| Depreciation and amortization                                |   |                 | -      |   |   |   | 343 |   |
| Tax benefit on operating lease exit obligation               |   |                 | 211    |   |   |   | - |   |
| Deferred professional fees                                   |   |                 | 109    |   |   |   | 156 |   |
| Deferred charges                                             |   |                 | 192    |   |   |   | 329 |   |
| Other, net                                                   |   |                 | 50     |   |   |   | 16 |   |
| Deferred tax asset                                           |   | $                    | 3,022  |   |   | $ | 8,690 |   |
|                                                         |   |                 |   |   |   |   |   |   |
| Long term deferred tax liability                             |   | Year ended April 30, |   |
|                                                         |   |                 | 2011   |   |   |   | 2010 |   |
|                                                         |   | (in thousands)       |   |
|                                                         |   |                 |   |   |   |   |   |   |
| Federal tax liability for deferred gain on EAM               |   | $                    | 17,679 |   |   | $ | 0 |   |
| Federal tax benefit deferred non-cash compensation           |   |                 | (619   | ) |   |   | - |   |
| Federal tax benefit on lease exit obligation                 |   |                 | (108   | ) |   |   | - |   |
| Federal tax benefit on depreciation and amortization         |   |                 | (364   | ) |   |   | - |   |
| State and local tax liability for deferred gain on EAM       |   |                 | 2,132  |   |   |   | - |   |
| State and local tax benefit deferred non-cash compensation   |   |                 | (62    | ) |   |   | - |   |
| State and local tax benefit on lease exit obligation         |   |                 | (25    | ) |   |   | - |   |
| State and local tax benefit on depreciation and amortization |   |                 | (45    | ) |   |   | - |   |
| State and local tax benefit on deferred professional fees    |   |                 | (14    | ) |   |   | - |   |
| Deferred tax liability                                       |   | $                    | 18,574 |   |   | $ | 0 |   |

----

Notes to Consolidated 

| The Company’s net operating loss carryforward of approximately $6,361,000 is expected to be fully utilized during the fiscal year ending April 30, 2012.  The tax effect of temporary differences giving rise to the Company’s long term deferred tax liability of $18,574,000 is primarily a result of the federal, state, and local taxes related to the $50,510,000 gain from deconsolidation of the Company’s asset management and mutual fund distribution subsidiaries partially offset by the long-term tax benefit related to the non-cash post-employment compensation of $1,770,000 granted to VLI’s former employee and the benefit related to the Company’s exit lease obligation of $914,000. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The Company uses its effective income tax rate to provide for income taxes and reflect the tax effect of any tax law changes and certain other discrete events in the year in which they occur.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| The annual effective tax rate during fiscal 2011 changes due to a number of factors including but not limited to an increase or decrease in the ratio of income or loss to pre-tax income for items that do not have tax consequences, the Company’s geographic profit mix between tax jurisdictions, new tax laws, new interpretations of existing tax law and rulings by and settlements with tax authorities.                                                                                                                                                                                                                                                                                                                        |
| The overall effective income tax rate, as a percentage of pre-tax income, for the fiscal years ended April 30, 2011, 2010 and 2009 were 38.53%, 26.04% and 35.97%, respectively. The non-deductible portion of the provision for the SEC settlement described in Note 15 included in fiscal 2010 and the change in the amount of the Company’s non-taxable investment income, events that do not have tax consequences, significantly contributed to the increase in the fiscal 2011 versus fiscal 2010 tax rate.  The fluctuation in the effective income tax rate is also attributable to the alternative minimum tax on the Company’s net operating loss carry forward in fiscal 2011.                               |
| The Company believes that, as at April 30, 2011, there were no material uncertain tax positions that would require disclosure under GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pretax income as a result of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|                                                                         |   | Year ended April 30, |   |
|------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                         |   | 2011                 |   |   | 2010 |   |   | 2009 |   |
|                                                                         |   |                 |   |   |   |   |   |   |   |
| U.S. statutory federal rate                                                  |   |                 | 35.00  | % |   |   | 35.00 | % |   |   | 35.00 | % |
| Increase/(decrease) in tax rate from:                                        |   |                 |   |   |   |   |   |   |   |   |   |   |
|   Tax effect of non-deductible portion of provision for settlement |   |                 | -      |   |   |   | -11.16 | % |   |   | - |   |
|   State and local income taxes, net of federal income tax benefit  |   |                 | 2.95   | % |   |   | 2.24 | % |   |   | 2.31 | % |
|   Alternative minimum tax                                          |   |                 | 0.58   | % |   |   | - |   |   |   | - |   |
|   Effect of tax exempt income and dividend deductions              |   |                 | -      |   |   |   | 0.33 | % |   |   | -0.67 | % |
|   Other, net                                                       |   |                 | -      |   |   |   | -0.37 | % |   |   | -0.67 | % |
| Effective income tax rate                                                    |   |                 | 38.53  | % |   |   | 26.04 | % |   |   | 35.97 | % |

| The Company is included in the consolidated federal income tax return of the Parent.  The Company has a tax sharing agreement which requires it to make tax payments to the Parent equal to the Company’s liability/(benefit) as if it filed a separate return.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The Company’s federal income tax returns (included in the Parent’s consolidated returns) and state and city tax returns for fiscal years ended April 30, 2008, 2009, and 2010 are subject to examination by the tax authorities, generally for three years after they were filed.  The IRS and New York State tax authorities have recently concluded an examination for the years ended through April 30, 2008. The examinations by the IRS and NYS resulted in no changes that had any adverse effect on the Company’s financial statements.  During fiscal 2011, the Company received refunds from NYS in the amount of $264,546 for the years under audit.  More recently, the IRS commenced an audit of the fiscal year 2010. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |
| Note 8-Employees’ Profit Sharing and Savings Plan:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |
| Substantially all employees of the Company and its subsidiaries are members of the Value Line, Inc. Profit Sharing and Savings Plan (the “Plan”).  In general, this is a qualified, contributory plan which provides for a discretionary annual Company contribution which is determined by a formula based on the salaries of eligible employees and the amount of consolidated net operating income as defined in the Plan.  For the fiscal year ended April 30, 2011 the Company contributed $507,000 to the Plan. There was no profit sharing contribution made by the Company in fiscal 2010 or 2009.                                                                                                                                         |

----

Notes to Consolidated 

| Note 9-Lease Commitments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |
| On June 4, 1993, the Company entered into a 15 year lease agreement to provide primary office space. The lease includes free rental periods as well as scheduled base rent escalations over the term of the lease. The lease was scheduled to expire in May 2008 subject to an option granted to the Company to extend the term for 5 additional years at a market rental rate. The total amount of the base rent payments is being charged to expense on the straight-line method over the term of the lease. The Company recorded a deferred charge on its Consolidated Balance Sheets to reflect the excess of annual rental expense over cash payments since inception of the lease. On April 23, 2007, the Company signed a lease amendment that extended the primary office space lease to May 2013, which increased the Company’s future minimum lease payments. Future minimum payments, exclusive of forecasted increases in real estate taxes and wage escalations, under operating leases for equipment and office space, with remaining terms of one year or more, are as follows: |

|   | Year ended April 30, |   | (in thousands) |   |
|--------|----------------------|--------|----------------|--------|
|   |                 |   |           |   |   |
|   | 2012                 |   |           | $      | 2,948 |   |
|   | 2013                 |   |           |   | 2,948 |   |
|   | Thereafter           |   |           |   | 246 |   |
|   |                 |   |           | $      | 6,142 |   |

| Rental expense for the years ended April 30, 2011, 2010, and 2009 under operating leases covering office space was $3,862,000, $2,948,000, and $2,930,000, respectively.  The increase in fiscal 2011 rent expenses was a result of an accrual of $914,000 for operating lease exit costs related to the disassociation of EAM from the operating facility of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Note 10-Business Segments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |
| Prior to December 23, 2010, the Company operated two reportable business segments: (1) Investment Periodicals, Publishing & Copyright Data and (2) Investment Management. The Investment Periodicals, Publishing & Copyright Data segment produces investment related periodical publications (retail and institutional) in both print and electronic form, and includes copyright data fees for Value Line proprietary ranking system information and other proprietary information. Prior to December 23, 2010, the Investment Management segment provided advisory services to the Value Line Funds, as well as institutional and individual accounts. The segments are differentiated by the products and services they offer. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. For fiscal 2011, the Company allocates all revenues and expenses, except for cash dividend from its non-voting revenues and non-voting profits interests in EAM (which is accounted for under the equity method) and depreciation and income from securities transactions related to corporate assets, between the two reportable segments. |
|  As more fully described in Note 1, the Company deconsolidated its investment management business on December 23, 2010 and therefore no longer reports the investment management operation as a separate business unit.  Although VLI will continue to receive significant cash flows from these operations through its non-controlling investment in EAM, it no longer considers this to be a reportable business segment due to its lack of control over the operating and financial policies of EAM.  Accordingly, the investment management segment reflects activity only through the date of the Restructuring Transaction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|                                       |   | April 30, 2011   |   |
|--------------------------------------------|--------|------------------|--------|
|                                       |   | Investment       |   |   |   |   |   |   |   |
|                                       |   | Periodicals,     |   |   | Investment |   |   | Total |   |
|                                       |   | Publishing & |   |   | Management |   |   |   |   |
|                                       |   | Copyright Data   |   |   |   |   |   |   |   |
|                                       |   |             |   |   |   |   |   |   |   |
| Revenues from external customers           |   | $                | 37,974 |   |   | $ | 10,693 |   |   | $ | 48,667 |   |
| Intersegment revenues                      |   |             | 7      |   |   |   | - |   |   |   | 7 |   |
| Income/(loss) from securities transactions |   |             | -      |   |   |   | 6 |   |   |   | 6 |   |
| Gain from deconsolidation of subsidiaries* |   |             | -      |   |   |   | 50,510 |   |   |   | 50,510 |   |
| Depreciation and amortization              |   |             | 576    |   |   |   | 14 |   |   |   | 590 |   |
| Segment profit/(loss) from operations*     |   |             | 8,984  |   |   |   | (448 | ) |   |   | 8,536 |   |
| Segment assets                             |   |             | 11,827 |   |   |   | - |   |   |   | 11,827 |   |
| Expenditures for segment assets            |   |             | 1,897  |   |   |   | 10 |   |   |   | 1,907 |   |

----

Notes to Consolidated 

|                                       |   | April 30, 2010   |   |
|--------------------------------------------|--------|------------------|--------|
|                                       |   | Investment       |   |   |   |   |   |   |   |   |   |
|                                       |   | Periodicals,     |   |   | Investment |   |   | Total |   |
|                                       |   | Publishing & |   |   | Management |   |   |   |   |   |
|                                       |   | Copyright Data   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers           |   | $                | 39,208 |   |   | $ | 18,932 |   |   | $ | 58,140 |   |
| Intersegment revenues                      |   |             | 20     |   |   |   | - |   |   |   | 20 |   |
| Income/(loss) from securities transactions |   |             | (62    | ) |   |   | 160 |   |   |   | 98 |   |
| Depreciation and amortization              |   |             | 686    |   |   |   | 39 |   |   |   | 725 |   |
| Segment profit/(loss) from operations*     |   |             | 10,425 |   |   |   | (42,614 | ) |   |   | (32,189 | ) |
| Segment assets                             |   |             | 12,734 |   |   |   | 9,397 |   |   |   | 22,131 |   |
| Expenditures for segment assets            |   |             | 809    |   |   |   | 8 |   |   |   | 817 |   |

|                                       |   | April 30, 2009   |   |
|--------------------------------------------|--------|------------------|--------|
|                                       |   | Investment       |   |   |   |   |   |   |   |   |   |
|                                       |   | Periodicals,     |   |   | Investment |   |   | Total |   |
|                                       |   | Publishing & |   |   | Management |   |   |   |   |   |
|                                       |   | Copyright Data   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers           |   | $                | 44,268 |   |   | $ | 24,973 |   |   | $ | 69,241 |   |
| Intersegment revenues                      |   |             | 37     |   |   |   | - |   |   |   | 37 |   |
| Income/(loss) from securities transactions |   |             | (87    | ) |   |   | 10,308 |   |   |   | 10,221 |   |
| Depreciation and amortization              |   |             | 1,075  |   |   |   | 53 |   |   |   | 1,128 |   |
| Segment profit from operations             |   |             | 16,237 |   |   |   | 7,998 |   |   |   | 24,235 |   |
| Segment assets                             |   |             | 11,867 |   |   |   | 22,914 |   |   |   | 34,781 |   |
| Expenditures for segment assets            |   |             | 1,186  |   |   |   | - |   |   |   | 1,186 |   |

| Reconciliation of Reportable Segment Revenues, Operating Profit/(Loss) and Assets |
|-----------------------------------------------------------------------------------|

| (in thousands)                                                                  |   |
|---------------------------------------------------------------------------------|--------|
|                                                                            |   | 2011 |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                        |   |   |   |   |   |   |   |   |   |
| Total revenues for reportable segments                                          |   | $ | 48,674 |   |   | $ | 58,160 |   |   | $ | 69,278 |   |
| Elimination of intersegment revenues                                            |   |   | (7 | ) |   |   | (20 | ) |   |   | (37 | ) |
|   Total consolidated revenues                                         |   | $ | 48,667 |   |   | $ | 58,140 |   |   | $ | 69,241 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit/(loss) before income taxes *                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Total profit/(loss) for reportable segments                                     |   | $ | 59,052 |   |   | ($ | 32,091 | ) |   | $ | 34,456 |   |
| Add:  Revenues and profits interest from EAM Trust                    |   |   | 2,355 |   |   |   | - |   |   |   | - |   |
| Add:  Income from securities transactions related to corporate assets |   |   | 59 |   |   |   | 739 |   |   |   | 1,404 |   |
| Less: Depreciation related to corporate assets                                  |   |   | (3 | ) |   |   | (1 | ) |   |   | (12 | ) |
|   Profit/(loss) before income taxes                                   |   | $ | 61,463 |   |   | ($ | 31,353 | ) |   | $ | 35,848 |   |
|                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets for reportable segments                                            |   | $ | 11,827 |   |   | $ | 22,131 |   |   | $ | 34,781 |   |
| Corporate assets                                                                |   |   | 75,976 |   |   |   | 37,854 |   |   |   | 82,774 |   |
|   Consolidated total assets                                           |   | $ | 87,803 |   |   | $ | 59,985 |   |   | $ | 117,555 |   |

| *  Included in the Investment Management segment in fiscal 2011 is the gain of $50,510,000 from deconsolidation of the asset management and mutual fund distribution subsidiaries, expenses of $3,764,000 associated with the Company’s restructuring of its asset management business segment, $914,000 of expenses related to its exit lease obligation for the office space previously occupied by EAM, and post-employment  compensation expense of $1,770,000  related to the value of the voting profits interest in EAM granted by VLI to a former employee of the Company who is one of the Trustees of EAM and is presently the CEO of EAM.  Fiscal 2011 Investment Management segment expenses include a reduction of $1,767,000 to the provision for settlement resulting from a change in the estimated cost to administer the Fair Fund.  Fiscal 2010 includes a charge of $727,000 related to the write-down of development software in the Investment Periodicals, Publishing and Copyright Data segment and a provision for settlement of approximately $48.1 million included  in the Investment Management segment. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Note 11-Disclosure of Credit Risk of Financial Instruments with Off Balance Sheet Risk:                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Other than EAM and the Value Line Funds as explained in Note 3, no single customer accounted for a significant portion of the Company’s sales in fiscal 2011, 2010 or 2009, nor its accounts receivable as of April 30, 2011 or 2010.                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Note 12-Comprehensive Income:                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| The FASB’s ASC Comprehensive Income topic requires the reporting of comprehensive income in addition to net income from operations.  Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that otherwise would not be recognized in the calculation of net income. |

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Notes to Consolidated 

| At April 30, 2011 and 2010, the Company held both equity and U.S. Government debt securities that are classified as available-for-sale on the Consolidated Balance Sheets.  The change in valuation of these securities, net of deferred income taxes, has been recorded in Accumulated Other Comprehensive Income in the Company’s Consolidated Balance Sheets. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The components of comprehensive income that are included in the Statement of Changes in Shareholders’ Equity are as follows:                                                                                                                                                                                                                                               |

|                                                                           |   |   |   |   | (in thousands) |   |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|
|                                                                           |   | Before |   |   | Tax            |   |   | Net of |   |
|                                                                           |   | Tax    |   |   | (Expense)      |   |   | Tax    |   |
|                                                                           |   | Amount |   |   | or Benefit     |   |   | Amount |   |
| Year ended April 30, 2011                                                      |   |   |   |   |           |   |   |   |   |
| Unrealized gains/(losses) on securities:                                       |   |   |   |   |           |   |   |   |   |
| Unrealized holding gains/(losses) arising during the period                    |   | $      | 32     |   |           | ($     | 11     | )      |   | $ | 21 |   |
| Add: Reclassification adjustments for losses realized in net income            |   |   | 68     |   |           |   | (24    | )      |   |   | 44 |   |
| Other comprehensive income                                                     |   | $      | 100    |   |           | ($     | 35     | )      |   | $ | 65 |   |
|                                                                           |   |   |   |   |           |   |   |   |   |   |   |   |
| Year ended April 30, 2010                                                      |   |   |   |   |           |   |   |   |   |   |   |   |
| Unrealized gains/(losses) on securities:                                       |   |   |   |   |           |   |   |   |   |   |   |   |
| Unrealized holding gains/(losses) arising during the period                    |   | ($     | 285    | )      |           | $      | 100    |   |   | ($ | 185 | ) |
| Less: Reclassification adjustments for gains realized in net income            |   |   | (176   | )      |           |   | 62     |   |   |   | (114 | ) |
| Other comprehensive income                                                     |   | ($     | 461    | )      |           | $      | 162    |   |   | ($ | 299 | ) |
|                                                                           |   |   |   |   |           |   |   |   |   |   |   |   |
| Year ended April 30, 2009                                                      |   |   |   |   |           |   |   |   |   |   |   |   |
| Unrealized gains/(losses) on securities:                                       |   |   |   |   |           |   |   |   |   |   |   |   |
| Unrealized holding gains/(losses) arising during the period               |   | ($     | 13,731 | )      |           | $      | 4,834  |   |   | ($ | 8,897 | ) |
| Add:  Reclassification adjustments for losses realized in net income |   |   | 416    |   |           |   | (146   | )      |   |   | 270 |   |
| Less: Reclassification adjustments for gains realized in net income            |   |   | (9,781 | )      |           |   | 3,442  |   |   |   | (6,339 | ) |
| Other comprehensive income                                                     |   | ($     | 23,096 | )      |           | $      | 8,130  |   |   | ($ | 14,966 | ) |

| Note 13-Accounting for the Costs of Computer Software Developed for Internal Use:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| The Company has adopted the provisions of the Statement of Position 98-1 (SOP 98-1), “Accounting for the Costs of Computer Software Developed for Internal Use”. SOP 98-1 requires companies to capitalize as long-lived assets many of the costs associated with developing or obtaining software for internal use and amortize those costs over the software’s estimated useful life in a systematic and rational manner.                                                                                                                                                                                                                                                                         |
| At April 30, 2011 and 2010, the Company capitalized  $1,801,000 and $262,000 of costs related to the development of software for internal use.  Such costs are capitalized and amortized over the expected useful life of the asset which is approximately from 3 to 5 years.  Amortization expense for the years ended April 30, 2011, 2010, and 2009 was $219,000, $285,000, and $335,000, respectively.  During fiscal year 2010, the Company expensed $727,000 of capitalized development costs related to a production software  project that was determined to be no longer viable.                                                                           |
|  Note 14 - Treasury Stock and Repurchase Program:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| On January 20, 2011,  the Company’s Board of Directors approved the repurchase of shares of the Company’s common stock, at such times and prices as management determined to be advisable up to an aggregate purchase price of $3,200,000.  During fiscal 2011, the Company repurchased an aggregate of 6,719 shares of the Company’s common stock for $89,882, at an average price of $13.39 per share.  Under the January 20, 2011 authorization, $3,110,118 remains available for additional share repurchases.  The repurchase authorization extends through January 15, 2012, unless further extended or earlier terminated by the Board of Directors. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

| (in thousands except for shares and cost per share) |   | Shares |   |   | Total Average Cost Assigned |   |   | Average Costper Share |   |
|-----------------------------------------------------|--------|--------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|
| Balance April 30, 2010                              |   |   | 18,400 |   |                        | $      | 354    |                  |   |   |   |
| Purchases effected in open market                   |   |   | 6,719  |   |                        |   | 90     |                  |   | $ | 13.39 |   |
| Balance April 30, 2011                              |   |   | 25,119 |   |                        | $      | 444    |                  |   |   |   |   |

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|   | ● | Mr. A. Short, the first Chairman of the Trustees of EAM, is a former practicing attorney with an extensive background in the mutual funds industry and interests in private equity firms.  He served as (executive) Vice Chairman of W. P. Stewart & Co., Inc. and currently serves as an independent director and Audit Chair of an unrelated funds group. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. A. Aronovitz is an experienced accountant and financial executive and served as interim chief financial officer of Comverse Technologies, a public company, after being appointed to the position following a securities investigation. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. R. Berenger is a highly experienced compliance official, principally in the brokerage industry. |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | ● | Mr. R. Rice was a practicing attorney and is currently the Managing Partner of Tangent Capital and also serves on the boards of several private technology and media companies. Mr. Rice has succeeded Mr. Sirota as a Trustee of EAM (Mr. Sirota was one of the five initial individual Trustees of EAM and subsequently resigned).  Mr. Rice anticipates acquiring Mr. Sirota’s non-voting profits interest. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Mr. M. Appel was the Chief Financial Officer of the Company from April 2008 to December 2010 and from September 2005 to November 2007; President of each of the Value Line Funds since June 2008;  Director of each of the Value Line Funds since December 2010;  President of EAM LLC and ESI from February 2009 until the completion of the Restructuring Transaction on December 23, 2010; Treasurer of Value Line from June to September 2005; and Chief Financial Officer, XTF Asset Management from November 2007 to April 2008. Mr. Appel served as a Director on the Company’s Board from February 2010 to December 2010. He earned his MBA from New York University. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|