Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2022 | Sep. 06, 2022 | Jan. 31, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | MAYS J W INC | ||
Trading Symbol | MAYS | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Common Stock, Shares Outstanding | 2,015,780 | ||
Entity Public Float | $ 14,549,440 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000054187 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Jul. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Auditor Name | Prager Metis CPAs, LLC | ||
Auditor Firm ID | 273 | ||
Auditor Location | Hackensack, NJ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-3647 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-1059070 | ||
Entity Address, Address Line One | 9 Bond Street | ||
Entity Address, City or Town | Brooklyn | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11201 | ||
City Area Code | 718 | ||
Local Phone Number | 624-7400 | ||
Title of 12(b) Security | Common Stock, $1 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Property and Equipment-at cost: | ||
Land | $ 6,067,805 | $ 6,067,805 |
Buildings held for leasing: | ||
Buildings, improvements and fixtures | 75,794,089 | 74,547,096 |
Construction in progress | 2,653,212 | 2,244,959 |
Property, Plant and Equipment, Gross | 78,447,301 | 76,792,055 |
Accumulated depreciation | (36,457,448) | (34,793,458) |
Buildings - net | 41,989,853 | 41,998,597 |
Property and equipment-net | 48,057,658 | 48,066,402 |
Cash and cash equivalents | 1,020,585 | 1,552,389 |
Restricted cash | 1,049,312 | 882,330 |
Receivables, net | 2,771,121 | 2,416,769 |
Marketable securities | 2,761,069 | 3,901,093 |
Prepaids and other assets | 2,628,570 | 2,384,727 |
Deferred charges, net | 3,614,640 | 3,739,243 |
Operating lease right-of-use assets | 32,108,363 | 34,566,169 |
TOTAL ASSETS | 94,011,318 | 97,509,122 |
Liabilities: | ||
Mortgages payable | 6,358,289 | 7,518,777 |
Accounts payable and accrued expenses | 2,321,764 | 2,632,905 |
Security deposits payable | 1,051,428 | 834,470 |
Operating lease liabilities | 26,600,168 | 27,840,930 |
Deferred income taxes | 4,292,000 | 4,582,000 |
Total liabilities | 40,623,649 | 43,409,082 |
Shareholders’ Equity: | ||
Common stock, par value $1 each share (shares-5,000,000 authorized; 2,178,297 issued) | 2,178,297 | 2,178,297 |
Additional paid in capital | 3,346,245 | 3,346,245 |
Retained earnings | 49,150,979 | 49,863,350 |
Stockholders' Equity before Treasury Stock | 54,675,521 | 55,387,892 |
Common stock held in treasury, at cost - 162,517 shares at July 31, 2022 and July 31, 2021 | (1,287,852) | (1,287,852) |
Total shareholders’ equity | 53,387,669 | 54,100,040 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 94,011,318 | $ 97,509,122 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jul. 31, 2022 | Jul. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,178,297 | 2,178,297 |
Treasury stock, shares | 162,517 | 162,517 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Revenues | ||
Rental income | $ 21,396,035 | $ 20,212,879 |
Total revenues | 21,396,035 | 20,212,879 |
Expenses | ||
Real estate operating expenses | 14,662,851 | 14,306,967 |
Administrative and general expenses | 5,647,733 | 4,958,227 |
Depreciation | 1,742,458 | 1,785,468 |
Total expenses | 22,053,042 | 21,050,662 |
Loss from operations | (657,007) | (837,783) |
Other income and interest expense | ||
Investment income | 300,377 | 173,548 |
Change in fair value of marketable securities | (393,763) | 446,126 |
Interest expense | (251,978) | (265,585) |
Extinguishment of debt | 722,726 | |
Total investment income and interest expense | (345,364) | 1,076,815 |
Income (loss) before income tax | (1,002,371) | 239,032 |
Income tax provision (benefit) | (290,000) | (159,000) |
Net loss | $ (712,371) | $ 398,032 |
Income (loss) per common share, basic and diluted (in Dollars per share) | $ (0.35) | $ 0.20 |
Dividends per share (in Dollars per share) | ||
Average common shares outstanding, basic and diluted (in Shares) | 2,015,780 | 2,015,780 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Common Stock | Additional Paid In Capital | Retained Earnings | Common Stock Held in Treasury | Total |
Balance at at Jul. 31, 2020 | $ 2,178,297 | $ 3,346,245 | $ 49,465,318 | $ (1,287,852) | $ 53,702,008 |
Net income (loss) | 398,032 | 398,032 | |||
Balance at at Jul. 31, 2021 | 2,178,297 | 3,346,245 | 49,863,350 | (1,287,852) | 54,100,040 |
Net income (loss) | (712,371) | (712,371) | |||
Balance at at Jul. 31, 2022 | $ 2,178,297 | $ 3,346,245 | $ 49,150,979 | $ (1,287,852) | $ 53,387,669 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (712,371) | $ 398,032 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Bad debt expense | 352,920 | 236,000 |
Provision (Benefit) for deferred income tax | (290,000) | (159,000) |
Net realized (gain) on sale of marketable securities | (131,786) | (73,783) |
Net unrealized (gain) loss on marketable securities | 393,763 | (446,126) |
Depreciation | 1,742,458 | 1,785,468 |
Amortization of deferred charges | 507,564 | 385,967 |
Operating lease expense in excess of cash payments | 1,217,044 | 1,306,833 |
Deferred finance costs included in interest expense | 38,112 | 38,112 |
Extinguishment of debt | (722,726) | |
Deferred charges | (382,961) | (1,138,562) |
Receivables | (707,272) | (432,823) |
Prepaids and other assets | (243,843) | 4,855 |
Accounts payable and accrued expenses | (311,141) | (138,635) |
Security deposits payable | 216,958 | 24,818 |
Net cash provided by operating activities | 1,689,445 | 1,068,430 |
Cash Flows From Investing Activities: | ||
Acquisition of property and equipment | (1,733,714) | (2,253,933) |
Marketable securities: | ||
Receipts from sales | 1,001,854 | 960,597 |
Payments for purchases | (123,807) | (596,876) |
Net cash (used) in investing activities | (855,667) | (1,890,212) |
Cash Flows From Financing Activities: | ||
Payments - mortgages | (1,198,600) | (1,147,300) |
Net cash (used) by financing activities | (1,198,600) | (1,147,300) |
Net decrease in cash, cash equivalents and restricted cash | (364,822) | (1,969,082) |
Cash, cash equivalents and restricted cash at beginning of year | 2,434,719 | 4,403,801 |
Cash, cash equivalents and restricted cash at end of year | $ 2,069,897 | $ 2,434,719 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization J.W. Mays, Inc. (the “Company” or “Registrant”) with executive offices at 9 Bond Street, Brooklyn, New York 11201, operates a number of commercial real estate properties in New York and one building in Ohio. The Company’s business was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927. Principles of Consolidation The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries (J. W. M. Realty Corp. and Dutchess Mall Sewage Plant, Inc.), which are wholly-owned. Material intercompany items have been eliminated in consolidation. The Impact of COVID-19 on Our Results and Operations Beginning March 2020 and continuing through July 2022, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from ongoing government mandated business regulations. The effects of COVID-19 on our tenants have been reflected in our allowance for credit losses for accounts receivable. In limited circumstances, we have agreed to rent deferrals for certain tenants. We also continue to experience volatility in the valuation of our equity investments through July 31, 2022. Looking ahead, the full impact of COVID-19 and continuing government regulation on our business is unknown and highly unpredictable. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the post pandemic effects continue to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; distribution of vaccines; and the macroeconomic impact of government measures to contain the spread of the virus and related government regulations. Use of Estimates The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, impairment analysis of long-lived assets, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions. As of July 31, 2022, the impact of COVID-19 continues to evolve. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As additional information becomes available, our estimates may change materially in future periods. Restricted Cash Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements. Marketable Securities The Company’s marketable securities consist of investments in equity securities. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The changes in the fair value of these securities are recognized in current period earnings in accordance with Accounting Standards Codification (“ASC”) 825. The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority: Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange). Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active). Level 3 valuation inputs are unobservable (e.g., an entity’s own data) and should be used to measure fair value to the extent that observable inputs are not available. Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at July 31, 2022 and 2021. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to. Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. In accordance with the provisions of Fair Value Measurements, the following are the Company’s financial assets measured on a recurring basis presented at fair value. Fair value measurements at reporting date Description July 31, 2022 Level 1 Level 2 Level 3 July 31, 2021 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,761,069 $ 2,761,069 $ – $ – $ 3,901,093 $ 3,901,093 $ – $ – Accounts Receivable Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers past due status and a tenant’s payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment considers business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods. Primarily because of the ongoing effects of COVID-19, the Company recorded an allowance for uncollectible receivables as of July 31, 2022 and 2021 in the amount of $393,000 and $318,000, respectively, as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Accounts Receivable Bad Debt Expense Period Ended July 31 Period Ended July 31 2022 2021 2022 2021 Beginning balance $ 318,000 $ 82,000 $ – $ – Charge-offs – – 277,920 – Reserve adjustments 75,000 236,000 75,000 236,000 Ending Balance $ 393,000 $ 318,000 $ 352,920 $ 236,000 Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years Maintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Impairment The Company reviews property and equipment and related lease intangibles for possible impairment when certain events or changes in circumstances indicate the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. As of July 31, 2022 and 2021, the Company has determined there was no impairment of its property and equipment. Deferred Charges Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 4 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. Leases – Lessor Revenue The Company accounts for revenue in accordance with Accounting Standards Update (ASU) 2014-09 (Topic 606) Revenue from Contracts with Customers. Rental income is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, are recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned. In April 2020, the Financial Accounting Standards Board issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (“ASC 842”). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy during the year ended July 31, 2020. Rent deferrals included in receivables were $250,000 and $245,000 as of July 31, 2022 and 2021, respectively. Leases – Lessee The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Company’s balance sheet. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred tax assets result principally from the recording of certain accruals, reserves and net operating loss carry forwards which currently are not deductible for tax purposes. Deferred tax liabilities result principally from temporary differences in the recognition of unrealized gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation. Deferred tax assets and liabilities are offset for each jurisdiction and are presented net on the balance sheet. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Actual income taxes could vary from these estimates due to future changes in income tax law or results from the final review of tax returns by federal, state or city tax authorities. Financial statement effects on tax positions are recognized in the period in which it is more likely than not that the position will be sustained upon examination, the position is effectively settled or when the statute of limitations to challenge the position has expired. Interest and penalties, if any, related to unrecognized tax benefits are recorded as interest expense and administrative and general expenses, respectively. Income Per Share of Common Stock Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 in fiscal years 2022 and 2021. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Jul. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities: | 2. MARKETABLE SECURITIES: As of July 31, 2022 and 2021, the Company’s marketable securities were classified as follows: July 31, 2022 July 31, 2021 Gross Gross Gross Gross Unrealized Unrealized Fair Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Available-for-sale: Mutual funds $ 528,976 $ 269,400 $ — $ 798,376 $ 984,869 $ 619,972 $ — $ 1,604,841 Corporate equity securities 1,065,593 897,100 — 1,962,693 1,355,961 940,291 — 2,296,252 $ 1,594,569 $ 1,166,500 $ — $ 2,761,069 $ 2,340,830 $ 1,560,263 $ — $ 3,901,093 Investment income for the years ended July 31, 2022 and 2021 consists of the following: 2022 2021 Interest income $ 222 $ 850 Dividend income 168,369 98,915 Gain on sale of marketable securities 131,786 73,783 Total $ 300,377 $ 173,548 |
Long-term debt _ mortgages
Long-term debt – mortgages | 12 Months Ended |
Jul. 31, 2022 | |
Long-term Debt [Abstract] | |
Long-Term Debt – Mortgages | 3. LONG-TERM DEBT—MORTGAGES: Years Ended July 31, Current Annual Final Interest Payment Rate Date 2022 2021 Mortgage: Bond St. land and building, Brooklyn, NY (1) 4.375% 12/1/2024 $ 2,759,236 $ 3,817,450 Fishkill land and building (2) 3.980% 4/1/2025 3,691,796 3,832,182 Deferred financing costs (92,743 ) (130,855 ) Total $ 6,358,289 $ 7,518,777 (1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street land and building in Brooklyn, New York. (2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York land and building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. Maturities of long-term mortgages outstanding at July 31, 2022 are as follows: Year Ended July 31: Amount 2023 $ 1,252,197 2024 1,308,071 2025 3,890,764 Subtotal 6,451,032 Deferred financing costs (92,743 ) Total $ 6,358,289 The carrying value of the property collateralizing the above debt is $33,950,082 at July 31, 2022. |
Note Payable
Note Payable | 12 Months Ended |
Jul. 31, 2022 | |
Note Payable [Abstract] | |
NOTE PAYABLE | 4. NOTE PAYABLE: In April 2020, the Company obtained a $722,726 loan, with an interest rate of .98% per annum, issued by a bank through the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) under Division A. Title I of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act’’). On May 26, 2021, the SBA authorized full forgiveness of the Company’s PPP loan in the amount of $722,726, plus accrued interest. Such proceeds were recorded as a full reduction of the note payable and extinguishment of debt income in the year ending July 31, 2021. |
Operating Leases
Operating Leases | 12 Months Ended |
Jul. 31, 2022 | |
Deferred Charges [Abstract] | |
Operating Leases | 5. OPERATING LEASES: Lessor The Company leases office and retail space to tenants under operating leases in commercial buildings. The rental terms range from approximately 5 to 49 years. The leases provide for the payment of fixed base rent payable monthly in advance as well as reimbursements of real estate taxes and common area costs. The Company has elected to account for lease revenues and the reimbursements of common area costs as a single component included as rental income in our consolidated statements of operations. The following table disaggregates the Company’s revenues by lease and non-lease components: Years Ended July 31, 2022 2021 Base rent - fixed $ 19,534,802 $ 18,355,925 Reimbursements of common area costs (cam) 839,950 751,618 Non-lease components (real estate taxes) 1,021,283 1,105,336 Rental income $ 21,396,035 $ 20,212,879 Years Ended July 31, 2022 2021 Base rent - fixed Company owned property $ 12,893,208 $ 11,798,456 Leased property 6,641,594 6,557,469 19,534,802 18,355,925 Reimbursements of common area costs & Non-lease components (real estate taxes) Company owned property 1,234,537 1,237,614 Leased property 626,696 619,340 1,861,233 1,856,954 Total $ 21,396,035 $ 20,212,879 Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: Company Owned Leased Year Ended July 31, Property Property Total 2023 $ 11,302,148 $ 4,196,714 $ 15,498,862 2024 8,329,055 3,072,220 11,401,275 2025 7,979,794 2,689,008 10,668,802 2026 7,130,748 2,554,525 9,685,273 2027 6,419,818 2,411,741 8,831,559 After 2027 31,768,645 5,456,013 37,224,658 Total $ 72,930,208 $ 20,380,221 $ 93,310,429 Lessee The Company’s real estate operations include leased properties under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2073, including options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. In July 2022, the Company entered into lease agreements with its landlord for two of its properties as follows: (1) Jamaica Avenue at 169 th (2) 504-506 Fulton Street, Brooklyn, New York – Modification of the lease agreement to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through April 30, 2031. The landlord is Weinstein Enterprises, Inc., an affiliated company principally owned by the Chairman of the Board of Directors who also principally owns the Company. The effect of the lease modification for 504-506 Fulton Street, Brooklyn, NY on the measurement of operating lease right-of-use assets, liabilities and rent expense follows: Operating Operating Monthly Lease Right- Lease Rent of-Use-Asset Liability Expense Increase resulting from July 2022 lease modification $ 94,412 $ 94,412 $ 2,563 Operating lease costs for leased real property was exceeded by sublease rental income from the Company’s real estate operations as follows: Years Ended July 31, 2022 2021 Sublease income $ 7,268,290 $ 7,176,809 Operating lease cost (3,333,406 ) (3,330,843 ) Excess of sublease income over lease cost $ 3,934,884 $ 3,845,966 As of July 31, 2022, our operating leases had a weighted average remaining lease term of 16.68 years and a weighted average discount rate of 2.96%. Years Ended July 31, 2022 2021 Other information: Operating cash flows from operating leases $ 2,116,363 $ 2,024,246 The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of July 31, 2022: Operating Year ended July 31 Leases 2023 $ 2,132,945 2024 2,150,129 2025 2,167,284 2026 2,237,257 2027 2,328,731 Thereafter 23,257,001 Total undiscounted cash flows 34,273,347 Less: present value discount (7,673,179 ) Total Lease Liabilities $ 26,600,168 |
Income Tax
Income Tax | 12 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 6. INCOME TAX: Income taxes provided for the years ended July 31, 2022 and 2021 consist of the following: 2022 2021 Current: Federal $ — $ — Deferred taxes (benefit): Federal (220,000 ) (108,000 ) State (70,000 ) (51,000 ) Income tax provision (benefit) $ (290,000 ) $ (159,000 ) Taxes provided for the years ended July 31, 2022 and 2021 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: 2022 2021 Income (loss) before income taxes $ (1,002,371 ) $ 239,032 Paycheck Protection Program Loan Forgiveness — (722,726 ) Other-net (48,211 ) (21,690 ) Adjusted pre-tax income (loss) $ (1,050,582 ) $ (505,384 ) Statutory rate 21.00 % 21.00 % Income tax provision (benefit) at statutory rate $ (220,622 ) $ (106,131 ) State deferred income taxes (benefit) (70,000 ) (51,000 ) Other-net 622 (1,869 ) Income tax provision (benefit) $ (290,000 ) $ (159,000 ) The Company has a federal net operating loss carryforward approximating $10,093,000 and $10,341,000 as of July 31, 2022 and July 31, 2021, respectively, available to offset future taxable income. As of July 31, 2022 and 2021, the Company had unused state and city net operating loss carryforwards of approximately $12,308,000 and $12,293,000, for state, respectively, and $8,274,000 for city, available to offset future taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035. New York State and New York City taxes are calculated using the higher of taxes based on income or the respective capital-based franchise taxes. Beginning with the Company’s tax year ended July 31, 2025, changes in the law required the state capital-based tax will be phased out. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes. Generally, tax returns filed are subject to audit for three years by the appropriate taxing jurisdictions. The statute of limitations in each of the state jurisdictions in which the Company operates remain open until the years are settled for federal income tax purposes, at which time amended state income tax returns reflecting all federal income tax adjustments are filed. As of July 31, 2022, there were no income tax audits in progress that would have a material impact on the consolidated financial statements. Significant components of the Company’s deferred tax assets and liabilities as of July 31, 2022 and 2021 are a result of temporary differences related to the items described as follows: 2022 2021 Deferred Deferred Deferred Deferred Tax Assets Tax Liabilities Tax Assets Tax Liabilities Rental income received in advance $ 164,992 $ — $ 148,033 $ — Operating lease liabilities 7,338,986 — 7,680,923 — Federal net operating loss carryforward 2,119,555 — 2,171,510 — State net operating loss carryforward 811,117 — 809,951 — Unbilled receivables — 623,249 — 569,029 Property and equipment — 5,052,217 — 4,963,194 Unrealized gain on marketable securities — 321,837 — 430,455 Operating lease right-of-use assets — 8,858,697 — 9,536,322 Other 129,350 — 106,583 — $ 10,564,000 $ 14,856,000 $ 10,917,000 $ 15,499,000 Net deferred tax liability $ 4,292,000 $ 4,582,000 Management periodically assesses the realization of its net deferred tax assets by evaluating all available evidence, both positive and negative, associated with the Company and determining whether, based on the weight of that associated evidence, a valuation allowance for the deferred tax assets is needed. Based on this analysis, management has determined that it is more likely than not that future taxable income will be sufficient to fully utilize the federal and state deferred tax assets at July 31, 2022. Components of the deferred tax provision (benefit) for the years ended July 31, 2022 and 2021 consist of the following: 2022 2021 Book depreciation exceeding tax depreciation $ 88,196 $ 291,723 Reserve for bad debts (20,697 ) (65,109 ) Lease expense per book in excess of cash paid (335,688 ) (360,537 ) Federal net operating loss carryforward 51,956 (406,742 ) State net operating loss carryforward (1,166 ) (116,410 ) Rental income received in advance (16,958 ) 27,111 Anticipated PPP loan expenses to be forgiven — 199,390 Unbilled receivables 54,220 156,686 Other (109,863 ) 114,888 $ (290,000 ) $ (159,000 ) |
Employees' Retirement Plan
Employees' Retirement Plan | 12 Months Ended |
Jul. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEES’ RETIREMENT PLANS | 7. EMPLOYEES’ RETIREMENT PLANS: The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $469,202 and $441,512 as contributions to the Plan for fiscal years 2022 and 2021, respectively. MULTI-EMPLOYER PLAN: The Company contributes to a union sponsored multi-employer pension plan covering its union employees. The Company contributions to the pension plan for the years ended July 31, 2022 and 2021 were $94,857 and $64,771, respectively. Contributions and costs are determined in accordance with the provisions of negotiated labor contracts or terms of the plan. The Company also contributes to a union sponsored health benefit plan. CONTINGENT LIABILITY FOR PENSION PLANS: Information as to the Company’s portion of accumulated plan benefits and plan assets is not reported separately by the pension plan. Under the Employee Retirement Income Security Act, upon withdrawal from a multi-employer benefit plan, an employer is required to continue to pay its proportionate share of the plan’s unfunded vested benefits, if any. Any liability under this provision cannot be determined: however, the Company has not made a decision to withdraw from the plan. Information for contributing employer’s participation in the multi-employer plan: Legal name of Plan: United Food and Commercial Workers Local 888 Pension Fund Employer identification number: 13-6367793 Plan number: 001 Date of most recent Form 5500: December 31, 2020 Certified zone status: Critical and declining status Status determination date: January 1, 2020 Plan used extended amortization provisions in status calculation: Yes Minimum required contribution: Yes Employer contributing greater than 5% of Plan contributions for year ended December 31, 2020: Yes Rehabilitation plan implemented: Yes Employer subject to surcharge: Yes Contract expiration date: November 30, 2022 For the plan years 2019 through November 30, 2021, under the pension fund’s rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to a 9% increase over the prior year total contribution rate. Effective December 1, 2021 through the contract expiration date of November 30, 2022, the Company’s contribution rate is 19.66% of each covered employee’s pay. The contract with a union covers rates of pay, hours of employment and other conditions of employment for approximately 27% of the Company’s 31 employees. The Company considers that its labor relations with its employees and union are good. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Jul. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information: | 8. CASH FLOW INFORMATION: For purposes of reporting cash flows, the Company considers cash equivalents to consist of short-term highly liquid investments with maturities of three months or less, which are readily convertible into cash. The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented on the consolidated statement of cash flows: July 31 2022 2021 Cash and cash equivalents $ 1,020,585 $ 1,552,389 Restricted cash, tenant security deposits 950,430 783,470 Restricted cash, escrow 71,742 71,720 Restricted cash, other 27,140 27,140 $ 2,069,897 $ 2,434,719 Amounts in restricted cash primarily consist of cash held in bank accounts for tenant security deposits, amounts set aside in accordance with certain loan agreements, and security deposits with landlords and utility companies. Supplemental disclosure: July 31, 2022 2021 Cash Flow Information Interest paid, net of capitalized interest of $76,642 (2022), and $115,415 (2021) $ 256,431 $ 272,070 Income tax (refunded) — (23,040 ) Non-cash information Recognition of operating lease right-of-use assets $ 94,412 $ — Recognition of operating lease liabilities 94,412 — |
Financial instruments and credi
Financial instruments and credit risk concentrations | 12 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 9. FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS: The following disclosure of estimated fair value was determined by the Company using available market information and appropriate valuation methods. Considerable judgment is necessary to develop estimates of fair value. The estimates presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The Company estimates the fair value of its financial instruments using the following methods and assumptions: (i) quoted market prices, when available, are used to estimate the fair value of investments in marketable debt and equity securities; (ii) discounted cash flow analyses are used to estimate the fair value of long-term debt, using the Company’s estimate of current interest rates for similar debt; and (iii) carrying amounts in the balance sheet approximate fair value for cash and cash equivalents, restricted cash, and tenant security deposits due to their high liquidity. July 31, 2022 July 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 1,020,585 $ 1,020,585 $ 1,552,389 $ 1,552,389 Restricted cash $ 1,049,312 $ 1,049,312 $ 882,330 $ 882,330 Marketable securities $ 2,761,069 $ 2,761,069 $ 3,901,093 $ 3,901,093 Security deposit payable $ 1,051,428 $ 1,051,428 $ 834,470 $ 834,470 Mortgages payable $ 6,451,032 $ 6,097,808 $ 7,649,632 $ 8,088,201 Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, restricted cash, cash and cash equivalents, and receivables. Marketable securities, restricted cash, cash and cash equivalents are placed with multiple financial institutions and instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. As of July 31, 2022, five tenants accounted for approximately 68.90% and in 2021, five tenants accounted for approximately 65.70% of receivables. During the year ended July 31, 2022, two tenants accounted for 31.12% and in 2021, two tenants accounted for 29.91% of total rental revenue. |
Deferred Charges
Deferred Charges | 12 Months Ended |
Jul. 31, 2022 | |
Deferred Charges [Abstract] | |
DEFERRED CHARGES | 10. DEFERRED CHARGES: Deferred charges for the fiscal years ended July 31, 2022 and 2021 consist of the following: July 31, 2022 July 31, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 5,649,633 $ 2,077,445 $ 5,266,672 $ 1,579,460 Professional fees for leasing 127,810 85,358 127,810 75,779 Total $ 5,777,443 $ 2,162,803 $ 5,394,482 $ 1,655,239 The aggregate amortization expense for the periods ended July 31, 2022 and July 31, 2021 were $507,564, and $385,967, respectively. The weighted average life of current year additions to deferred charges was ten years. The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Year Ended July 31 Amortization 2023 $ 447,803 2024 $ 421,307 2025 $ 380,093 2026 $ 357,601 2027 $ 323,830 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS: The Company has two operating leases with Weinstein Enterprises, Inc. (“Landlord”), an affiliated company, principally owned by the Chairman of the Board of Directors of both the Company and Landlord. One lease is for building, improvements, and land (Premises”) located at Jamaica Avenue at 169 th In July 2022, the Company entered into lease agreements with Landlord as follows: (1) Jamaica Avenue at 169 th (2) 504-506 Fulton Street, Brooklyn, New York – Modification of the lease agreement to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through April 30, 2031. Rent payments and expense relating to these two operating leases with Landlord follow: Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2022 2021 2022 2021 Jamaica Avenue at 169 th $ 624,994 $ 624,994 $ 1,517,437 $ 1,517,437 504-506 Fulton Street 362,256 362,256 353,001 350,438 Total $ 987,250 $ 987,250 $ 1,870,438 $ 1,867,875 The following summarizes assets and liabilities related to these two leases: Right-Of-Use Assets Liabilities July 31 July 31 Property 2022 2021 2022 2021 Expiration Date Jamaica Avenue at 169 th $ 11,442,093 $ 12,842,642 $ 4,451,338 $ 4,959,450 May 31, 2030 504-506 Fulton Street 2,683,787 2,831,134 2,789,709 2,946,306 April 30, 2031 Total $ 14,125,880 $ 15,673,776 $ 7,241,047 $ 7,905,756 Upon termination of the Jamaica, New York lease, currently in 2030, all premises included in operating lease right-of-use assets plus leasehold improvements will be turned over to the Landlord. |
Capitalization
Capitalization | 12 Months Ended |
Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
CAPITALIZATION | 12. CAPITALIZATION: The Company is capitalized entirely through common stock with identical voting rights and rights to liquidation. Treasury stock is recorded at cost and consists of 162,517 shares at July 31, 2022 and at July 31, 2021. |
Contingencies
Contingencies | 12 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 13. CONTINGENCIES: There are various other lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Company’s Consolidated Financial Statements. If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jul. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT: Subsequent to July 31, 2022, a new tenant leased 58,832 square feet at the Company’s Fiskill, New York building for use as storage space for six months expiring February 2023. Total rent of $576,259 for the entire term of the lease was paid at the rent commencement date in August 2022. Brokerage commissions were $27,084. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization J.W. Mays, Inc. (the “Company” or “Registrant”) with executive offices at 9 Bond Street, Brooklyn, New York 11201, operates a number of commercial real estate properties in New York and one building in Ohio. The Company’s business was founded in 1924 and incorporated under the laws of the State of New York on July 6, 1927. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, a New York corporation and its subsidiaries (J. W. M. Realty Corp. and Dutchess Mall Sewage Plant, Inc.), which are wholly-owned. Material intercompany items have been eliminated in consolidation. |
The Impact of COVID-19 on Our Results and Operations | The Impact of COVID-19 on Our Results and Operations Beginning March 2020 and continuing through July 2022, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from ongoing government mandated business regulations. The effects of COVID-19 on our tenants have been reflected in our allowance for credit losses for accounts receivable. In limited circumstances, we have agreed to rent deferrals for certain tenants. We also continue to experience volatility in the valuation of our equity investments through July 31, 2022. Looking ahead, the full impact of COVID-19 and continuing government regulation on our business is unknown and highly unpredictable. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the post pandemic effects continue to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; distribution of vaccines; and the macroeconomic impact of government measures to contain the spread of the virus and related government regulations. |
Use of Estimates | Use of Estimates The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, impairment analysis of long-lived assets, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions. As of July 31, 2022, the impact of COVID-19 continues to evolve. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As additional information becomes available, our estimates may change materially in future periods. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements. |
Marketable Securities | Marketable Securities The Company’s marketable securities consist of investments in equity securities. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The changes in the fair value of these securities are recognized in current period earnings in accordance with Accounting Standards Codification (“ASC”) 825. The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority: Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange). Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active). Level 3 valuation inputs are unobservable (e.g., an entity’s own data) and should be used to measure fair value to the extent that observable inputs are not available. Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at July 31, 2022 and 2021. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to. Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. In accordance with the provisions of Fair Value Measurements, the following are the Company’s financial assets measured on a recurring basis presented at fair value. Fair value measurements at reporting date Description July 31, 2022 Level 1 Level 2 Level 3 July 31, 2021 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,761,069 $ 2,761,069 $ – $ – $ 3,901,093 $ 3,901,093 $ – $ – |
Accounts Receivable | Accounts Receivable Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers past due status and a tenant’s payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment considers business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods. Primarily because of the ongoing effects of COVID-19, the Company recorded an allowance for uncollectible receivables as of July 31, 2022 and 2021 in the amount of $393,000 and $318,000, respectively, as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Accounts Receivable Bad Debt Expense Period Ended July 31 Period Ended July 31 2022 2021 2022 2021 Beginning balance $ 318,000 $ 82,000 $ – $ – Charge-offs – – 277,920 – Reserve adjustments 75,000 236,000 75,000 236,000 Ending Balance $ 393,000 $ 318,000 $ 352,920 $ 236,000 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years Maintenance, repairs, renewals and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. |
Impairment | Impairment The Company reviews property and equipment and related lease intangibles for possible impairment when certain events or changes in circumstances indicate the carrying amount of the asset may not be recoverable though operations plus estimated disposition proceeds. Events or changes in circumstances that may occur include, but are not limited to, significant changes in real estate market conditions, estimated residual values, and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. As of July 31, 2022 and 2021, the Company has determined there was no impairment of its property and equipment. |
Deferred Charges | Deferred Charges Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 4 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. |
Leases – Lessor Revenue | Leases – Lessor Revenue The Company accounts for revenue in accordance with Accounting Standards Update (ASU) 2014-09 (Topic 606) Revenue from Contracts with Customers. Rental income is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, are recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned. In April 2020, the Financial Accounting Standards Board issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (“ASC 842”). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy during the year ended July 31, 2020. Rent deferrals included in receivables were $250,000 and $245,000 as of July 31, 2022 and 2021, respectively. |
Leases – Lessee | Leases – Lessee The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets and operating lease liabilities on the Company’s balance sheet. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Taxes | Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred tax assets result principally from the recording of certain accruals, reserves and net operating loss carry forwards which currently are not deductible for tax purposes. Deferred tax liabilities result principally from temporary differences in the recognition of unrealized gains and losses from certain investments and from the use, for tax purposes, of accelerated depreciation. Deferred tax assets and liabilities are offset for each jurisdiction and are presented net on the balance sheet. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Actual income taxes could vary from these estimates due to future changes in income tax law or results from the final review of tax returns by federal, state or city tax authorities. Financial statement effects on tax positions are recognized in the period in which it is more likely than not that the position will be sustained upon examination, the position is effectively settled or when the statute of limitations to challenge the position has expired. Interest and penalties, if any, related to unrecognized tax benefits are recorded as interest expense and administrative and general expenses, respectively. |
Income Per Share of Common Stock | Income Per Share of Common Stock Income per share has been computed by dividing net income for the year by the weighted average number of shares of common stock outstanding during the year, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 in fiscal years 2022 and 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of financial assets measured on a recurring basis presented at fair value | Fair value measurements at reporting date Description July 31, 2022 Level 1 Level 2 Level 3 July 31, 2021 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,761,069 $ 2,761,069 $ – $ – $ 3,901,093 $ 3,901,093 $ – $ – |
Schedule of allowance for uncollectible receivables | Allowance for Uncollectible Accounts Receivable Bad Debt Expense Period Ended July 31 Period Ended July 31 2022 2021 2022 2021 Beginning balance $ 318,000 $ 82,000 $ – $ – Charge-offs – – 277,920 – Reserve adjustments 75,000 236,000 75,000 236,000 Ending Balance $ 393,000 $ 318,000 $ 352,920 $ 236,000 |
Schedule of property and equipment depreciation and amortization period | Buildings and improvements 18-40 years Improvements to leased property 3-10 years Fixtures and equipment 7-12 years Other 3-5 years |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of classified marketable securities | July 31, 2022 July 31, 2021 Gross Gross Gross Gross Unrealized Unrealized Fair Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Available-for-sale: Mutual funds $ 528,976 $ 269,400 $ — $ 798,376 $ 984,869 $ 619,972 $ — $ 1,604,841 Corporate equity securities 1,065,593 897,100 — 1,962,693 1,355,961 940,291 — 2,296,252 $ 1,594,569 $ 1,166,500 $ — $ 2,761,069 $ 2,340,830 $ 1,560,263 $ — $ 3,901,093 |
Schedule of investment income | 2022 2021 Interest income $ 222 $ 850 Dividend income 168,369 98,915 Gain on sale of marketable securities 131,786 73,783 Total $ 300,377 $ 173,548 |
Long-term debt _ mortgages (Tab
Long-term debt – mortgages (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Long-term Debt [Abstract] | |
Schedule of long-term debt | Years Ended July 31, Current Annual Final Interest Payment Rate Date 2022 2021 Mortgage: Bond St. land and building, Brooklyn, NY (1) 4.375% 12/1/2024 $ 2,759,236 $ 3,817,450 Fishkill land and building (2) 3.980% 4/1/2025 3,691,796 3,832,182 Deferred financing costs (92,743 ) (130,855 ) Total $ 6,358,289 $ 7,518,777 (1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street land and building in Brooklyn, New York. (2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York land and building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. |
Schedule of long-term mortgages outstanding | Year Ended July 31: Amount 2023 $ 1,252,197 2024 1,308,071 2025 3,890,764 Subtotal 6,451,032 Deferred financing costs (92,743 ) Total $ 6,358,289 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Deferred Charges [Abstract] | |
Schedule of revenues by lease and non-lease components | Years Ended July 31, 2022 2021 Base rent - fixed $ 19,534,802 $ 18,355,925 Reimbursements of common area costs (cam) 839,950 751,618 Non-lease components (real estate taxes) 1,021,283 1,105,336 Rental income $ 21,396,035 $ 20,212,879 Years Ended July 31, 2022 2021 Base rent - fixed Company owned property $ 12,893,208 $ 11,798,456 Leased property 6,641,594 6,557,469 19,534,802 18,355,925 Reimbursements of common area costs & Non-lease components (real estate taxes) Company owned property 1,234,537 1,237,614 Leased property 626,696 619,340 1,861,233 1,856,954 Total $ 21,396,035 $ 20,212,879 |
Schedule of future minimum non-cancelable rental income | Company Owned Leased Year Ended July 31, Property Property Total 2023 $ 11,302,148 $ 4,196,714 $ 15,498,862 2024 8,329,055 3,072,220 11,401,275 2025 7,979,794 2,689,008 10,668,802 2026 7,130,748 2,554,525 9,685,273 2027 6,419,818 2,411,741 8,831,559 After 2027 31,768,645 5,456,013 37,224,658 Total $ 72,930,208 $ 20,380,221 $ 93,310,429 |
Schedule of operating lease right-of-use assets, liabilities and rent expense | Operating Operating Monthly Lease Right- Lease Rent of-Use-Asset Liability Expense Increase resulting from July 2022 lease modification $ 94,412 $ 94,412 $ 2,563 |
Schedule of rental expense | Years Ended July 31, 2022 2021 Sublease income $ 7,268,290 $ 7,176,809 Operating lease cost (3,333,406 ) (3,330,843 ) Excess of sublease income over lease cost $ 3,934,884 $ 3,845,966 |
Schedule of additional information related to leases | Years Ended July 31, 2022 2021 Other information: Operating cash flows from operating leases $ 2,116,363 $ 2,024,246 |
Schedule of annual undiscounted cash flows of the operating lease liabilities | Operating Year ended July 31 Leases 2023 $ 2,132,945 2024 2,150,129 2025 2,167,284 2026 2,237,257 2027 2,328,731 Thereafter 23,257,001 Total undiscounted cash flows 34,273,347 Less: present value discount (7,673,179 ) Total Lease Liabilities $ 26,600,168 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | 2022 2021 Current: Federal $ — $ — Deferred taxes (benefit): Federal (220,000 ) (108,000 ) State (70,000 ) (51,000 ) Income tax provision (benefit) $ (290,000 ) $ (159,000 ) |
Schedule of federal statutory tax rate to pre-tax income | 2022 2021 Income (loss) before income taxes $ (1,002,371 ) $ 239,032 Paycheck Protection Program Loan Forgiveness — (722,726 ) Other-net (48,211 ) (21,690 ) Adjusted pre-tax income (loss) $ (1,050,582 ) $ (505,384 ) Statutory rate 21.00 % 21.00 % Income tax provision (benefit) at statutory rate $ (220,622 ) $ (106,131 ) State deferred income taxes (benefit) (70,000 ) (51,000 ) Other-net 622 (1,869 ) Income tax provision (benefit) $ (290,000 ) $ (159,000 ) |
Schedule of deferred tax assets and liabilities | 2022 2021 Deferred Deferred Deferred Deferred Tax Assets Tax Liabilities Tax Assets Tax Liabilities Rental income received in advance $ 164,992 $ — $ 148,033 $ — Operating lease liabilities 7,338,986 — 7,680,923 — Federal net operating loss carryforward 2,119,555 — 2,171,510 — State net operating loss carryforward 811,117 — 809,951 — Unbilled receivables — 623,249 — 569,029 Property and equipment — 5,052,217 — 4,963,194 Unrealized gain on marketable securities — 321,837 — 430,455 Operating lease right-of-use assets — 8,858,697 — 9,536,322 Other 129,350 — 106,583 — $ 10,564,000 $ 14,856,000 $ 10,917,000 $ 15,499,000 Net deferred tax liability $ 4,292,000 $ 4,582,000 |
Schedule of components of the deferred tax provision (benefit) | 2022 2021 Book depreciation exceeding tax depreciation $ 88,196 $ 291,723 Reserve for bad debts (20,697 ) (65,109 ) Lease expense per book in excess of cash paid (335,688 ) (360,537 ) Federal net operating loss carryforward 51,956 (406,742 ) State net operating loss carryforward (1,166 ) (116,410 ) Rental income received in advance (16,958 ) 27,111 Anticipated PPP loan expenses to be forgiven — 199,390 Unbilled receivables 54,220 156,686 Other (109,863 ) 114,888 $ (290,000 ) $ (159,000 ) |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash and cash equivalents and restricted cash | July 31 2022 2021 Cash and cash equivalents $ 1,020,585 $ 1,552,389 Restricted cash, tenant security deposits 950,430 783,470 Restricted cash, escrow 71,742 71,720 Restricted cash, other 27,140 27,140 $ 2,069,897 $ 2,434,719 |
Schedule of supplemental disclosure | July 31, 2022 2021 Cash Flow Information Interest paid, net of capitalized interest of $76,642 (2022), and $115,415 (2021) $ 256,431 $ 272,070 Income tax (refunded) — (23,040 ) Non-cash information Recognition of operating lease right-of-use assets $ 94,412 $ — Recognition of operating lease liabilities 94,412 — |
Financial instruments and cre_2
Financial instruments and credit risk concentrations (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | July 31, 2022 July 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 1,020,585 $ 1,020,585 $ 1,552,389 $ 1,552,389 Restricted cash $ 1,049,312 $ 1,049,312 $ 882,330 $ 882,330 Marketable securities $ 2,761,069 $ 2,761,069 $ 3,901,093 $ 3,901,093 Security deposit payable $ 1,051,428 $ 1,051,428 $ 834,470 $ 834,470 Mortgages payable $ 6,451,032 $ 6,097,808 $ 7,649,632 $ 8,088,201 |
Deferred Charges (Tables)
Deferred Charges (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Deferred Charges [Abstract] | |
Schedule of deferred charges | July 31, 2022 July 31, 2021 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 5,649,633 $ 2,077,445 $ 5,266,672 $ 1,579,460 Professional fees for leasing 127,810 85,358 127,810 75,779 Total $ 5,777,443 $ 2,162,803 $ 5,394,482 $ 1,655,239 |
Schedule of estimated aggregate amortization expense | Year Ended July 31 Amortization 2023 $ 447,803 2024 $ 421,307 2025 $ 380,093 2026 $ 357,601 2027 $ 323,830 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of rent payments expenses | Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2022 2021 2022 2021 Jamaica Avenue at 169 th $ 624,994 $ 624,994 $ 1,517,437 $ 1,517,437 504-506 Fulton Street 362,256 362,256 353,001 350,438 Total $ 987,250 $ 987,250 $ 1,870,438 $ 1,867,875 |
Schedule of assets and liabilities | Right-Of-Use Assets Liabilities July 31 July 31 Property 2022 2021 2022 2021 Expiration Date Jamaica Avenue at 169 th $ 11,442,093 $ 12,842,642 $ 4,451,338 $ 4,959,450 May 31, 2030 504-506 Fulton Street 2,683,787 2,831,134 2,789,709 2,946,306 April 30, 2031 Total $ 14,125,880 $ 15,673,776 $ 7,241,047 $ 7,905,756 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Allowance for Expected uncollectible receivables | $ 393,000 | $ 318,000 |
Rent deferrals | $ 250,000 | $ 245,000 |
Weighted Average Number of Shares Outstanding, Basic (in Shares) | 2,015,780 | 2,015,780 |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Deferred charges amortization period | 4 years | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Deferred charges amortization period | 21 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of financial assets measured on a recurring basis presented at fair value - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Assets: | ||
Marketable securities | $ 2,761,069 | $ 3,901,093 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Marketable securities | 2,761,069 | 3,901,093 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Marketable securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Marketable securities |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of allowance for uncollectible receivables - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Allowance for Uncollectible Accounts Receivable [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of allowance for uncollectible receivables [Line Items] | ||
Beginning balance | $ 318,000 | $ 82,000 |
Charge-offs | ||
Reserve adjustments | 75,000 | 236,000 |
Ending Balance | 393,000 | 318,000 |
Bad Debt Expense [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of allowance for uncollectible receivables [Line Items] | ||
Beginning balance | ||
Charge-offs | 277,920 | |
Reserve adjustments | 75,000 | 236,000 |
Ending Balance | $ 352,920 | $ 236,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment depreciation and amortization period | 12 Months Ended |
Jul. 31, 2022 | |
Buildings and improvements [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 18 years |
Buildings and improvements [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 40 years |
Improvements to leased property [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 3 years |
Improvements to leased property [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 10 years |
Fixtures and equipment [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 7 years |
Fixtures and equipment [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 12 years |
Other [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 3 years |
Other [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Useful life | 5 years |
Marketable Securities (Details)
Marketable Securities (Details) - Schedule of classified marketable securities - Noncurrent [Member] - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Available-for-sale: | ||
Cost | $ 1,594,569 | $ 2,340,830 |
Gross Unrealized Gains | 1,166,500 | 1,560,263 |
Gross Unrealized Losses | ||
Fair Value | 2,761,069 | 3,901,093 |
Mutual funds [Member] | ||
Available-for-sale: | ||
Cost | 528,976 | 984,869 |
Gross Unrealized Gains | 269,400 | 619,972 |
Gross Unrealized Losses | ||
Fair Value | 798,376 | 1,604,841 |
Corporate equity securities [Member] | ||
Available-for-sale: | ||
Cost | 1,065,593 | 1,355,961 |
Gross Unrealized Gains | 897,100 | 940,291 |
Gross Unrealized Losses | ||
Fair Value | $ 1,962,693 | $ 2,296,252 |
Marketable Securities (Detail_2
Marketable Securities (Details) - Schedule of investment income - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Investment Income Abstract | ||
Interest income | $ 222 | $ 850 |
Dividend income | 168,369 | 98,915 |
Gain on sale of marketable securities | 131,786 | 73,783 |
Total | $ 300,377 | $ 173,548 |
Long-term debt _ mortgages (Det
Long-term debt – mortgages (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2020 | Nov. 30, 2019 | Jul. 31, 2022 | |
Long-term debt – mortgages (Details) [Line Items] | |||
Debt instrument face amount | $ 5,255,920 | ||
Carrying value of property | $ 33,950,082 | ||
Bond St. building, Brooklyn, NY [Member] | |||
Long-term debt – mortgages (Details) [Line Items] | |||
Debt instrument face amount | $ 6,000,000 | ||
Interest rate, percent | 3.54% | ||
Additional loans | $ 144,080 | ||
Amount outstanding | $ 5,400,000 | ||
Term of loan | 5 years | ||
Bond St. building, Brooklyn, NY One [Member] | |||
Long-term debt – mortgages (Details) [Line Items] | |||
Interest rate, percent | 4.375% | ||
Fishkill building [Member] | |||
Long-term debt – mortgages (Details) [Line Items] | |||
Debt instrument face amount | $ 4,000,000 | ||
Interest rate, percent | 3.98% | ||
Term of loan | 20 years | ||
Maturity period of loan | 5 years |
Long-term debt _ mortgages (D_2
Long-term debt – mortgages (Details) - Schedule of long-term debt - USD ($) | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | ||
Mortgage: | |||
Deferred financing costs | $ (92,743) | $ (130,855) | |
Total | $ 6,358,289 | 7,518,777 | |
Bond St. land and building, Brooklyn, NY [Member] | |||
Mortgage: | |||
Current Annual Interest Rate | [1] | 4.375% | |
Final Payment Date | [1] | Dec. 01, 2024 | |
Long term loan | [1] | $ 2,759,236 | 3,817,450 |
Fishkill land and building [Member] | |||
Mortgage: | |||
Current Annual Interest Rate | [2] | 3.98% | |
Final Payment Date | [2] | Apr. 01, 2025 | |
Long term loan | [2] | $ 3,691,796 | $ 3,832,182 |
[1] In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street land and building in Brooklyn, New York. In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York land and building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years. |
Long-term debt _ mortgages (D_3
Long-term debt – mortgages (Details) - Schedule of long-term mortgages outstanding | Jul. 31, 2022 USD ($) |
Schedule Of Long Term Mortgages Outstanding Abstract | |
2023 | $ 1,252,197 |
2024 | 1,308,071 |
2025 | 3,890,764 |
Subtotal | 6,451,032 |
Deferred financing costs | (92,743) |
Total | $ 6,358,289 |
Note Payable (Details)
Note Payable (Details) - SBA Loan [Member] - USD ($) | 1 Months Ended | 12 Months Ended | |
May 26, 2021 | Jul. 31, 2022 | Apr. 30, 2020 | |
Note Payable (Details) [Line Items] | |||
Obtained loan | $ 722,726 | ||
Interest rate | 98% | ||
Extinguishment of debt income | $ 722,726 | ||
Extinguishment of debt income maturity date | Jul. 31, 2021 |
Operating Leases (Details)
Operating Leases (Details) | 12 Months Ended |
Jul. 31, 2022 USD ($) | |
Operating Leases (Details) [Line Items] | |
Weighted average remaining lease term | 16 years 8 months 4 days |
Weighted average discount rate | 2.96% |
Minimum [Member] | |
Operating Leases (Details) [Line Items] | |
Operating leases extended period | 5 years |
Lease payments (in Dollars) | $ 30,188 |
Maximum [Member] | |
Operating Leases (Details) [Line Items] | |
Operating leases extended period | 49 years |
Lease payments (in Dollars) | $ 34,716 |
Operating Leases (Details) - Sc
Operating Leases (Details) - Schedule of revenues by lease and non-lease components - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Revenues By Lease And Non Lease Components Abstract | ||
Base rent - fixed | $ 19,534,802 | $ 18,355,925 |
Reimbursements of common area costs (cam) | 839,950 | 751,618 |
Non-lease components (real estate taxes) | 1,021,283 | 1,105,336 |
Rental income, Total | 21,396,035 | 20,212,879 |
Base rent - fixed | ||
Company owned property | 12,893,208 | 11,798,456 |
Leased property | 6,641,594 | 6,557,469 |
Non-lease components (real estate taxes) | ||
Company owned property | 1,234,537 | 1,237,614 |
Leased property | 626,696 | 619,340 |
Property, Total | $ 1,861,233 | $ 1,856,954 |
Operating Leases (Details) - _2
Operating Leases (Details) - Schedule of future minimum non-cancelable rental income | Jul. 31, 2022 USD ($) |
Operating Leases (Details) - Schedule of future minimum non-cancelable rental income [Line Items] | |
2023 | $ 15,498,862 |
2024 | 11,401,275 |
2025 | 10,668,802 |
2026 | 9,685,273 |
2027 | 8,831,559 |
After 2027 | 37,224,658 |
Total | 93,310,429 |
Company Owned Property [Member] | |
Operating Leases (Details) - Schedule of future minimum non-cancelable rental income [Line Items] | |
2023 | 11,302,148 |
2024 | 8,329,055 |
2025 | 7,979,794 |
2026 | 7,130,748 |
2027 | 6,419,818 |
After 2027 | 31,768,645 |
Total | 72,930,208 |
Leased Property [Member] | |
Operating Leases (Details) - Schedule of future minimum non-cancelable rental income [Line Items] | |
2023 | 4,196,714 |
2024 | 3,072,220 |
2025 | 2,689,008 |
2026 | 2,554,525 |
2027 | 2,411,741 |
After 2027 | 5,456,013 |
Total | $ 20,380,221 |
Operating Leases (Details) - _3
Operating Leases (Details) - Schedule of operating lease right-of-use assets, liabilities and rent expense - July 2022 lease [Member] | 12 Months Ended |
Jul. 31, 2022 USD ($) | |
Operating Leases (Details) - Schedule of operating lease right-of-use assets, liabilities and rent expense [Line Items] | |
Operating Lease Right-of-Use-Asset | $ 94,412 |
Operating Lease Liability | 94,412 |
Monthly Rent Expense | $ 2,563 |
Operating Leases (Details) - _4
Operating Leases (Details) - Schedule of rental expense - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Rental Expense Abstract | ||
Sublease income | $ 7,268,290 | $ 7,176,809 |
Operating lease cost | (3,333,406) | (3,330,843) |
Excess of sublease income over lease cost | $ 3,934,884 | $ 3,845,966 |
Operating Leases (Details) - _5
Operating Leases (Details) - Schedule of additional information related to leases - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Additional Information Related To Leases Abstract | ||
Operating cash flows from operating leases | $ 2,116,363 | $ 2,024,246 |
Operating Leases (Details) - _6
Operating Leases (Details) - Schedule of annual undiscounted cash flows of the operating lease liabilities - Operating Lease [Member] | Jul. 31, 2022 USD ($) |
Operating Leases (Details) - Schedule of annual undiscounted cash flows of the operating lease liabilities [Line Items] | |
2023 | $ 2,132,945 |
2024 | 2,150,129 |
2025 | 2,167,284 |
2026 | 2,237,257 |
2027 | 2,328,731 |
Thereafter | 23,257,001 |
Total undiscounted cash flows | 34,273,347 |
Less: present value discount | (7,673,179) |
Total Lease Liabilities | $ 26,600,168 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax (Details) [Line Items] | ||
Future taxable income | $ 8,274,000 | |
Domestic Tax Authority [Member] | ||
Income Tax (Details) [Line Items] | ||
Net operating loss carryforwards | 10,093,000 | $ 10,341,000 |
State and City [Member] | ||
Income Tax (Details) [Line Items] | ||
Net operating loss carryforwards | $ 12,308,000 | $ 12,293,000 |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of income tax expense - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Current: | ||
Federal | ||
Deferred taxes (benefit): | ||
Federal | (220,000) | (108,000) |
State | (70,000) | (51,000) |
Income tax provision (benefit) | $ (290,000) | $ (159,000) |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of federal statutory tax rate to pre-tax income - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Federal Statutory Tax Rate To Pre Tax Income Abstract | ||
Income (loss) before income taxes | $ (1,002,371) | $ 239,032 |
Paycheck Protection Program Loan Forgiveness | (722,726) | |
Other-net | (48,211) | (21,690) |
Adjusted pre-tax income (loss) | $ (1,050,582) | $ (505,384) |
Statutory rate | 21% | 21% |
Income tax provision (benefit) at statutory rate | $ (220,622) | $ (106,131) |
State deferred income taxes (benefit) | (70,000) | (51,000) |
Other-net | 622 | (1,869) |
Income tax provision (benefit) | $ (290,000) | $ (159,000) |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Deferred Tax Assets [Member] | ||
Income Tax (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Rental income received in advance | $ 164,992 | $ 148,033 |
Operating lease liabilities | 7,338,986 | 7,680,923 |
Federal net operating loss carryforward | 2,119,555 | 2,171,510 |
State net operating loss carryforward | 811,117 | 809,951 |
Unbilled receivables | ||
Property and equipment | ||
Unrealized gain on marketable securities | ||
Operating lease right-of-use assets | ||
Other | 129,350 | 106,583 |
Total | 10,564,000 | 10,917,000 |
Deferred Tax Liabilities [Member] | ||
Income Tax (Details) - Schedule of deferred tax assets and liabilities [Line Items] | ||
Rental income received in advance | ||
Operating lease liabilities | ||
Federal net operating loss carryforward | ||
State net operating loss carryforward | ||
Unbilled receivables | 623,249 | 569,029 |
Property and equipment | 5,052,217 | 4,963,194 |
Unrealized gain on marketable securities | 321,837 | 430,455 |
Operating lease right-of-use assets | 8,858,697 | 9,536,322 |
Other | ||
Total | 14,856,000 | 15,499,000 |
Net deferred tax liability | $ 4,292,000 | $ 4,582,000 |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | $ (290,000) | $ (159,000) |
Book depreciation exceeding tax depreciation [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | 88,196 | 291,723 |
Reserve for bad debts [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | (20,697) | (65,109) |
Lease expense per book in excess of cash paid [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | (335,688) | (360,537) |
Federal net operating loss carryforward [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | 51,956 | (406,742) |
State net operating loss carryforward [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | (1,166) | (116,410) |
Rental income received in advance [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | (16,958) | 27,111 |
Anticipated PPP loan expenses to be forgiven [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | 199,390 | |
Unbilled receivables [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | 54,220 | 156,686 |
Other [Member] | ||
Income Tax (Details) - Schedule of components of the deferred tax provision (benefit) [Line Items] | ||
Deferred tax provision (benefit) | $ (109,863) | $ 114,888 |
Employees' Retirement Plan (Det
Employees' Retirement Plan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employer contributions | $ 469,202 | $ 441,512 | |
Pension contributions | $ 94,857 | $ 64,771 | |
Minimum contribution rate | 19.66% | 9% | |
Percentage of other condition of employment | 27% |
Cash Flow Information (Details)
Cash Flow Information (Details) - Schedule of cash and cash equivalents and restricted cash - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Schedule Of Cash And Cash Equivalents And Restricted Cash Abstract | ||
Cash and cash equivalents | $ 1,020,585 | $ 1,552,389 |
Restricted cash, tenant security deposits | 950,430 | 783,470 |
Restricted cash, escrow | 71,742 | 71,720 |
Restricted cash, other | 27,140 | 27,140 |
Cash flow information | $ 2,069,897 | $ 2,434,719 |
Cash Flow Information (Detail_2
Cash Flow Information (Details) - Schedule of supplemental disclosure - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash Flow Information | ||
Interest paid, net of capitalized interest of $76,642 (2022), and $115,415 (2021) | $ 256,431 | $ 272,070 |
Income tax (refunded) | (23,040) | |
Non-cash information | ||
Recognition of operating lease right-of-use assets | 94,412 | |
Recognition of operating lease liabilities | $ 94,412 |
Financial instruments and cre_3
Financial instruments and credit risk concentrations (Details) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Five Tenants [Member] | Receivables [Member] | ||
Financial instruments and credit risk concentrations (Details) [Line Items] | ||
Concentration risk, percentage | 68.90% | 65.70% |
Two Tenants [Member] | Revenue [Member] | ||
Financial instruments and credit risk concentrations (Details) [Line Items] | ||
Concentration risk, percentage | 31.12% | 29.91% |
Financial instruments and cre_4
Financial instruments and credit risk concentrations (Details) - Schedule of Fair Value of Financial Instruments - USD ($) | Jul. 31, 2022 | Jul. 31, 2021 |
Carrying Value [Member] | ||
Financial instruments and credit risk concentrations (Details) - Schedule of Fair Value of Financial Instruments [Line Items] | ||
Cash and cash equivalents | $ 1,020,585 | $ 1,552,389 |
Restricted cash | 1,049,312 | 882,330 |
Marketable securities | 2,761,069 | 3,901,093 |
Security deposit payable | 1,051,428 | 834,470 |
Mortgages payable | 6,451,032 | 7,649,632 |
Fair Value [Member] | ||
Financial instruments and credit risk concentrations (Details) - Schedule of Fair Value of Financial Instruments [Line Items] | ||
Cash and cash equivalents | 1,020,585 | 1,552,389 |
Restricted cash | 1,049,312 | 882,330 |
Marketable securities | 2,761,069 | 3,901,093 |
Security deposit payable | 1,051,428 | 834,470 |
Mortgages payable | $ 6,097,808 | $ 8,088,201 |
Deferred Charges (Details)
Deferred Charges (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Deferred Charges [Abstract] | ||
Aggregate amortization expense | $ 507,564 | $ 385,967 |
Weighted average life | 10 years |
Deferred Charges (Details) - Sc
Deferred Charges (Details) - Schedule of deferred charges - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Gross Carrying Amount [Member] | ||
Deferred Charges (Details) - Schedule of deferred charges [Line Items] | ||
Leasing brokerage commissions | $ 5,649,633 | $ 5,266,672 |
Professional fees for leasing | 127,810 | 127,810 |
Total | 5,777,443 | 5,394,482 |
Accumulated Amortization [Member] | ||
Deferred Charges (Details) - Schedule of deferred charges [Line Items] | ||
Leasing brokerage commissions | 2,077,445 | 1,579,460 |
Professional fees for leasing | 85,358 | 75,779 |
Total | $ 2,162,803 | $ 1,655,239 |
Deferred Charges (Details) - _2
Deferred Charges (Details) - Schedule of estimated aggregate amortization expense | Jul. 31, 2022 USD ($) |
Schedule Of Estimated Aggregate Amortization Expense Abstract | |
2023 | $ 447,803 |
2024 | 421,307 |
2025 | 380,093 |
2026 | 357,601 |
2027 | $ 323,830 |
Related Party Transactions (Det
Related Party Transactions (Details) | 14 Months Ended |
Jul. 31, 2022 | |
Related Party Transactions [Abstract] | |
Lease payments description | 504-506 Fulton Street, Brooklyn, New York – Modification of the lease agreement to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through April 30, 2031. |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of rent payments expenses - Board of Directors Chairman [Member] - USD ($) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Related Party Transactions (Details) - Schedule of rent payments expenses [Line Items] | ||
Rent Payments | $ 987,250 | $ 987,250 |
Rent Expense | 1,870,438 | 1,867,875 |
Jamaica Avenue at 169th Street [Member] | ||
Related Party Transactions (Details) - Schedule of rent payments expenses [Line Items] | ||
Rent Payments | 624,994 | 624,994 |
Rent Expense | 1,517,437 | 1,517,437 |
504-506 Fulton Street [Member] | ||
Related Party Transactions (Details) - Schedule of rent payments expenses [Line Items] | ||
Rent Payments | 362,256 | 362,256 |
Rent Expense | $ 353,001 | $ 350,438 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of assets and liabilities - USD ($) | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | $ 34,566,169 | $ 32,108,363 |
Liabilities | 27,840,930 | 26,600,168 |
Right-Of-Use Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | 15,673,776 | 14,125,880 |
Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 7,905,756 | 7,241,047 |
Jamaica Avenue at 169th Street [Member] | ||
Related Party Transaction [Line Items] | ||
Expiration Date | May 31, 2030 | |
Jamaica Avenue at 169th Street [Member] | Right-Of-Use Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | $ 12,842,642 | 11,442,093 |
Jamaica Avenue at 169th Street [Member] | Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 4,959,450 | 4,451,338 |
504-506 Fulton Street [Member] | ||
Related Party Transaction [Line Items] | ||
Expiration Date | Apr. 30, 2031 | |
504-506 Fulton Street [Member] | Right-Of-Use Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | $ 2,831,134 | 2,683,787 |
504-506 Fulton Street [Member] | Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 2,946,306 | $ 2,789,709 |
Capitalization (Details)
Capitalization (Details) - shares | Jul. 31, 2022 | Jul. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Treasury stock, shares | 162,517 | 162,517 |
Subsequent Event (Details)
Subsequent Event (Details) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) | |
Subsequent Events [Abstract] | ||
Leases square feet | 58,832 | |
Expiry year | February 2023 | |
Total rent | $ 576,259 | |
Brokage commission | $ 27,084 |