Cover
Cover - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Sep. 05, 2023 | Jan. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jul. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity File Number | 1-3647 | ||
Entity Registrant Name | MAYS J W INC | ||
Entity Central Index Key | 0000054187 | ||
Entity Tax Identification Number | 11-1059070 | ||
Entity Incorporation, State or Country Code | NY | ||
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 | ||
Trading Symbol | MAYS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 17,318,716 | ||
Entity Common Stock, Shares Outstanding | 2,015,780 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | Prager Metis CPAs, LLC | ||
Auditor Firm ID | 273 | ||
Auditor Location | Hackensack, NJ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Property and Equipment-at cost: | ||
Land | $ 6,067,805 | $ 6,067,805 |
Buildings held for leasing: | ||
Buildings, improvements and fixtures | 77,703,358 | 75,794,089 |
Construction in progress | 1,767,444 | 2,653,212 |
Property, Plant and Equipment, Gross | 79,470,802 | 78,447,301 |
Accumulated depreciation | (38,123,199) | (36,457,448) |
Buildings – net | 41,347,603 | 41,989,853 |
Property and equipment-net | 47,415,408 | 48,057,658 |
Cash and cash equivalents | 1,215,921 | 1,020,585 |
Restricted cash | 1,001,814 | 1,049,312 |
Receivables, net | 3,044,190 | 2,771,121 |
Marketable securities | 2,300,441 | 2,761,069 |
Prepaids and other assets | 2,773,004 | 2,628,570 |
Deferred charges, net | 3,250,700 | 3,614,640 |
Operating lease right-of-use assets | 30,913,904 | 32,108,363 |
TOTAL ASSETS | 91,915,382 | 94,011,318 |
Liabilities: | ||
Mortgages payable | 5,144,205 | 6,358,289 |
Accounts payable and accrued expenses | 1,718,435 | 2,321,764 |
Security deposits payable | 1,005,925 | 1,051,428 |
Operating lease liabilities | 26,512,112 | 26,600,168 |
Deferred income taxes | 4,230,000 | 4,292,000 |
Total liabilities | 38,610,677 | 40,623,649 |
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 | 49,068,015 | 49,150,979 |
Stockholders' Equity before Treasury Stock | 54,592,557 | 54,675,521 |
Common stock held in treasury, at cost - 162,517 shares at July 31, 2023 and July 31, 2022 | (1,287,852) | (1,287,852) |
Total Shareholders’ Equity | 53,304,705 | 53,387,669 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 91,915,382 | $ 94,011,318 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2023 | Jul. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,178,297 | 2,178,297 |
Common stock held in treasury, at cost | 162,517 | 162,517 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Revenues | ||
Rental income | $ 22,576,455 | $ 21,396,035 |
Total revenues | 22,576,455 | 21,396,035 |
Expenses | ||
Real estate operating expenses | 15,383,378 | 14,662,851 |
Administrative and general expenses | 5,280,853 | 5,647,733 |
Depreciation | 1,688,557 | 1,742,458 |
Total expenses | 22,352,788 | 22,053,042 |
Income (loss) from operations | 223,667 | (657,007) |
Other income (loss) and interest expense | ||
Investment income | 228,344 | 300,377 |
Change in fair value of marketable securities | (366,206) | (393,763) |
Interest expense | (230,769) | (251,978) |
Total investment income and interest expense | (368,631) | (345,364) |
Loss before income tax | (144,964) | (1,002,371) |
Income tax provision (benefit) | (62,000) | (290,000) |
Net loss | $ (82,964) | $ (712,371) |
Loss per common share, basic | $ (0.04) | $ (0.35) |
Dividends per share | ||
Weighted Average Number of Shares Outstanding, Basic | 2,015,780 | 2,015,780 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - $ / shares | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||
Loss per common share, diluted | $ (0.04) | $ (0.35) |
Average common shares outstanding, diluted | 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 |
Beginning balance, value at Jul. 31, 2021 | $ 2,178,297 | $ 3,346,245 | $ 49,863,350 | $ (1,287,852) | $ 54,100,040 |
Net loss | (712,371) | (712,371) | |||
Ending balance, value at Jul. 31, 2022 | 2,178,297 | 3,346,245 | 49,150,979 | (1,287,852) | 53,387,669 |
Net loss | (82,964) | (82,964) | |||
Ending balance, value at Jul. 31, 2023 | $ 2,178,297 | $ 3,346,245 | $ 49,068,015 | $ (1,287,852) | $ 53,304,705 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (82,964) | $ (712,371) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Bad debt expense (recovery) | (85,410) | 352,920 |
Provision (benefit) for deferred income tax | (62,000) | (290,000) |
Net realized (gain) on sale of marketable securities | (130,009) | (131,786) |
Net unrealized loss on marketable securities | 366,206 | 393,763 |
Depreciation | 1,688,557 | 1,742,458 |
Amortization of deferred charges | 452,781 | 507,564 |
Operating lease expense in excess of cash payments | 1,106,403 | 1,217,044 |
Deferred finance costs included in interest expense | 38,112 | 38,112 |
Deferred charges | (88,841) | (382,961) |
Changes in Operating Assets and Liabilities: | ||
Receivables | (187,659) | (707,272) |
Prepaids and other assets | (144,434) | (243,843) |
Accounts payable and accrued expenses | (603,329) | (311,141) |
Security deposits payable | (45,503) | 216,958 |
Net cash provided by operating activities | 2,221,910 | 1,689,445 |
Cash Flows From Investing Activities: | ||
Acquisition of property and equipment | (1,046,307) | (1,733,714) |
Marketable securities: | ||
Receipts from sales | 287,291 | 1,001,854 |
Payments for purchases | (62,860) | (123,807) |
Net cash (used) in investing activities | (821,876) | (855,667) |
Cash Flows From Financing Activities: | ||
Payments – mortgages | (1,252,196) | (1,198,600) |
Net cash (used) by financing activities | (1,252,196) | (1,198,600) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 147,838 | (364,822) |
Cash, cash equivalents and restricted cash at beginning of year | 2,069,897 | 2,434,719 |
Cash, cash equivalents and restricted cash at end of year | $ 2,217,735 | $ 2,069,897 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2023 | |
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. 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 consolidated 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 consolidated 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. Restricted Cash Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements. 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 reserve for uncollectible accounts receivable 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 volatility in market conditions and evolving shifts in credit trends that may have a material impact on our allowance for uncollectible accounts receivables in future periods. The Company’s allowance for uncollectible receivables is recorded as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Schedule of allowance for uncollectible receivables Allowance for Bad Debt Expense Period Ended July 31 Period Ended July 31 2023 2022 2023 2022 Beginning balance $ 393,000 $ 318,000 $ — $ — Charge-offs (149,337 ) — 43,253 277,920 Reserve Adjustments (128,663 ) 75,000 (128,663 ) 75,000 Ending Balance $ 115,000 $ 393,000 $ (85,410 ) $ 352,920 Marketable Securities The Company’s marketable securities consist of investments in equity securities and mutual funds. 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 Level 2 valuation Level 3 valuation 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, 2023 and 2022. Equity securities Mutual funds 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. Schedule of financial assets measured on a recurring basis at fair value Fair value measurements at reporting date Description July 31, 2023 Level 1 Level 2 Level 3 July 31, 2022 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,300,441 $ 2,300,441 $ — $ — $ 2,761,069 $ 2,761,069 $ — $ — 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: Schedule of property and equipment depreciation and amortization period Buildings and improvements 18 40 Improvements to leased property Improvements to leased property [Member] 3 40 Fixtures and equipment Fixtures and equipment [Member] 7 12 Other Other [Member] 3 5 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, 2023 and 2022, the Company has determined there was no impairment of its property and equipment and related lease intangibles. 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 5 21 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 $ 50,000 250,000 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 consolidated balance sheets. 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 consolidated balance sheets. 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 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jul. 31, 2023 | |
Marketable securities: | |
MARKETABLE SECURITIES | 2. MARKETABLE SECURITIES As of July 31, 2023 and 2022, the Company’s marketable securities were classified as follows: Schedule of classified marketable securities July 31, 2023 July 31, 2022 Cost Gross Gross Fair Cost Gross Gross Fair Available-for-sale: Mutual funds $ 595,166 $301,007 $ — $ 896,173 $ 528,976 $ 269,400 $ — $ 798,376 Corporate equity securities Corporate equity securities [Member] 904,981 499,287 — 1,404,268 1,065,593 897,100 — 1,962,693 $ 1,500,147 $800,294 $ — $ 2,300,441 $ 1,594,569 $ 1,166,500 $ — $ 2,761,069 Investment income for the years ended July 31, 2023 and 2022 consists of the following: Schedule of investment income 2023 2022 Dividend and interest income $ 98,335 $ 168,591 Gain on sale of marketable securities 130,009 131,786 Total $ 228,344 $ 300,377 |
LONG-TERM DEBT-MORTGAGES
LONG-TERM DEBT-MORTGAGES | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT-MORTGAGES | 3. LONG-TERM DEBT—MORTGAGES LONG-TERM DEBT-MORTGAGES Schedule of long-term debt Years Ended July 31, Current Final 2023 2022 Mortgage: Bond St. land and building, Brooklyn, NY (1) 4.375 12/1/2024 $ 1,653,117 $ 2,759,236 Fishkill land and building (2) 3.980 4/1/2025 3,545,719 3,691,796 Deferred financing costs (54,631 ) (92,743 ) Total $ 5,144,205 $ 6,358,289 (1) In November 2019, the Company refinanced the remaining balance of a $ 6,000,000 3.54 5,255,920 144,080 5,400,000 4.375 five years (2) In March 2020, the Company obtained a loan with a bank in the amount of $ 4,000,000 20 3.98 five years Maturities of long-term mortgages outstanding at July 31, 2023 are as follows: Schedule of long-term mortgages outstanding Year Ended July 31: Amount 2024 $ 1,308,071 2025 3,890,765 Subtotal 5,198,836 Deferred financing costs (54,631 ) Total $ 5,144,205 The carrying value of the property collateralizing the above debt is $ 33,869,301 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Jul. 31, 2023 | |
Operating Leases | |
OPERATING LEASES | 4. 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 49 The following table disaggregates the Company’s revenues by lease and non-lease components: Schedule of revenues by lease and non-lease components Years Ended July 31, 2023 2022 Base rent – fixed $ 20,541,387 $ 19,534,802 Reimbursements of common area costs 936,438 839,950 Non-lease components (real estate taxes) 1,098,630 1,021,283 Rental income $ 22,576,455 $ 21,396,035 Years Ended July 31, 2023 2022 Base rent – fixed Company owned property $ 13,856,697 $ 12,893,208 Leased property 6,684,690 6,641,594 20,541,387 19,534,802 Reimbursements of common area costs & Company owned property 1,322,923 1,234,537 Leased property 712,145 626,696 2,035,068 1,861,233 Total $ 22,576,455 $ 21,396,035 Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: Schedule of future minimum non-cancelable rental income Year Ended July 31, Company Leased Total 2024 $ 10,442,346 $ 4,076,156 $ 14,518,502 2025 8,960,152 3,137,292 12,097,444 2026 8,028,846 3,002,809 11,031,655 2027 6,906,617 2,860,024 9,766,641 2028 6,069,044 2,814,151 8,883,195 After 2028 25,835,446 5,617,784 31,453,230 Total $ 66,242,451 $ 21,508,216 $ 87,750,667 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 169th Street, Jamaica, New York - Giving the Company four five-year option periods to extend its lease beyond May 31, 2030 for a total of twenty years through May 31, 2050. In April 2023, the Company exercised the first five-year option period, extending the lease expiration date to May 31, 2035 Schedule of operating lease right-of-use assets, liabilities and rent expense Jamaica Avenue at 169th Street Increase in Increase in Decrease in Remeasurement change resulting from April 2023 lease extension $1,201,952 $1,201,952 $(30,563 ) As of July 31, 2023, it is not reasonably certain the remaining three options to extend the lease will be exercised by the Company. (2) 504-506 Fulton Street, Brooklyn, New York – In July, 2022 the lease agreement was modified to increase monthly lease payments from $ 30,188 34,716 April 30, 2031 Schedule of operating lease right-of-use assets, liabilities and rent expense 504-506 Fulton Street Increase in Increase in Increase in Remeasurement change resulting from July 2022 lease modification $94,412 $94,412 $2,563 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. Operating lease costs for leased real property was exceeded by sublease rental income from the Company’s real estate operations as follows: Schedule of rental expense Years Ended July 31, 2023 2022 Sublease income $ 7,396,835 $ 7,268,290 Operating lease cost (3,239,348 ) (3,333,406 ) Excess of sublease income over lease cost $ 4,157,487 $ 3,934,884 Schedule of additional information related to leases Years Ended July 31, 2023 2022 Other information: Operating cash flows from operating leases $ 2,132,945 $ 2,116,363 The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of July 31, 2023: Schedule of annual undiscounted cash flows of the operating lease liabilities Year ended July 31 Operating 2024 $ 2,150,129 2025 2,167,284 2026 2,237,257 2027 2,328,731 2028 2,349,076 Thereafter 24,032,926 Total undiscounted cash flows 35,265,403 Less: present value discount (8,753,291 ) Total Lease Liabilities $ 26,512,112 As of July 31, 2023, our operating leases had a weighted average remaining lease term of 16.59 3.72 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | 5. INCOME TAX Income taxes provided for the years ended July 31, 2023 and 2022 consist of the following: Schedule of income tax expense 2023 2022 Current: Federal $ — $ — Deferred taxes (benefit): Federal (33,000 ) (220,000 ) State (29,000 ) (70,000 ) Income tax provision (benefit) $ (62,000 ) $ (290,000 ) Taxes provided for the years ended July 31, 2023 and 2022 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: State and City [Member] Schedule of federal statutory tax rate to pre-tax income 2023 2022 Loss before income taxes $ (144,964 ) $ (1,002,371 ) Other-net (26,852 ) (48,211 ) Adjusted pre-tax loss $ (171,816 ) $ (1,050,582 ) Statutory rate 21.00 % 21.00 % Income tax provision (benefit) at statutory rate $ (36,081 ) $ (220,622 ) State deferred income taxes (benefit) (29,000 ) (70,000 ) Other-net 3,081 622 Income tax provision (benefit) $ (62,000 ) $ (290,000 ) The Company has a federal net operating loss carryforward approximating $ 9,172,000 10,096,000 12,420,000 10,218,000 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, 2023, 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, 2023 and 2022 are a result of temporary differences related to the items described as follows: Schedule of deferred tax assets and liabilities 2023 2022 Deferred Deferred Deferred Deferred Rental income received in advance $ 150,864 $ — $ 164,992 $ — Operating lease liabilities 7,338,553 — 7,338,986 — Federal net operating loss carryforward 1,929,890 — 2,119,555 — State net operating loss carryforward 829,669 — 811,117 — Unbilled receivables — 729,375 — 623,249 Property and equipment — 5,065,135 — 5,052,217 Unrealized gain on marketable securities — 221,521 — 321,837 Operating lease right-of-use assets — 8,556,969 — 8,858,697 Other 94,024 — 129,350 — $ 10,343,000 $ 14,573,000 $ 10,564,000 $ 14,856,000 Net deferred tax liability $ 4,230,000 $ 4,292,000 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, 2023. Components of the deferred tax provision (benefit) for the years ended July 31, 2023 and 2022 consist of the following: Schedule of components of the deferred tax provision (benefit) 2023 2022 Book depreciation exceeding tax depreciation $ 14,000 $ 88,196 Reserve for bad debts 35,255 (20,697 ) Lease expense per book in excess of cash paid (301,218 ) (335,688 ) Federal net operating loss carryforward 189,665 51,956 State net operating loss carryforward (18,725 ) (1,166 ) Rental income received in advance 14,120 (16,958 ) Unbilled receivables 106,158 54,220 Other (101,255 ) (109,863 ) $ (62,000 ) $ (290,000 ) |
EMPLOYEES' RETIREMENT PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEES' RETIREMENT PLANS | 6. EMPLOYEES’ RETIREMENT PLANS: EMPLOYEES' RETIREMENT PLANS The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $ 471,087 469,202 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, 2023 and 2022 were $ 117,494 94,857 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 Employer identification number: 13-6367793 Plan number: 001 Date of most recent Form 5500: December 31, 2021 Certified zone status: Critical and declining status Status determination date: January 1, 2021 Plan used extended amortization provisions in status calculation: Yes Minimum required contribution: Yes Employer contributing greater than 5% Yes Rehabilitation plan implemented: Yes Employer subject to surcharge: Yes Contract expiration date: November 30, 2025 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% November 30, 2025 20.16% 27% 30 |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 12 Months Ended |
Jul. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW INFORMATION | 7. 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 statements of cash flows: Schedule of cash and cash equivalents and restricted cash July 31 2023 2022 Cash and cash equivalents $ 1,215,921 $ 1,020,585 Restricted cash, tenant security deposits 898,791 950,430 Restricted cash, escrow 71,763 71,742 Restricted cash, other 31,260 27,140 $ 2,217,735 $ 2,069,897 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: Schedule of supplemental disclosure July 31, 2023 2022 Cash Flow Information Interest paid, net of capitalized interest of $47,472 $76,642 $ 234,596 $ 256,431 Income tax (refunded) — — Non-cash information Recognition of operating lease right-of-use assets $ 1,201,952 $ 94,412 Recognition of operating lease liabilities 1,201,952 94,412 |
FINANCIAL INSTRUMENTS AND CREDI
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 8. 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 consolidated balance sheet approximate fair value for cash and cash equivalents, restricted cash, and tenant security deposits due to their high liquidity. Schedule of fair value of financial instruments July 31, 2023 July 31, 2022 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,215,921 $ 1,215,921 $ 1,020,585 $ 1,020,585 Restricted cash $ 1,001,814 $ 1,001,814 $ 1,049,312 $ 1,049,312 Marketable securities $ 2,300,441 $ 2,300,441 $ 2,761,069 $ 2,761,069 Security deposit payable $ 1,005,925 $ 1,005,925 $ 1,051,428 $ 1,051,428 Mortgages payable $ 5,198,836 $ 4,558,652 $ 6,451,032 $ 6,097,808 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, 2023, four tenants accounted for approximately 60.61 68.90 29.43 31.12 |
DEFERRED CHARGES
DEFERRED CHARGES | 12 Months Ended |
Jul. 31, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED CHARGES | 9. DEFERRED CHARGES Deferred charges for the fiscal years ended July 31, 2023 and 2022 consist of the following: Schedule of deferred charges July 31, 2023 July 31, 2022 Gross Accumulated Gross Accumulated Leasing brokerage commissions $ 5,471,610 $ 2,253,786 $ 5,649,633 $ 2,077,445 Professional fees for leasing 127,810 94,934 127,810 85,358 Total $ 5,599,420 $ 2,348,720 $ 5,777,443 $ 2,162,803 The aggregate amortization expense for the periods ended July 31, 2023 and July 31, 2022 were $ 452,781 507,564 The weighted average life of current year additions to deferred charges was three years The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Schedule of estimated aggregate amortization expense Year Ended July 31 Amortization 2024 $450,921 2025 $409,707 2026 $382,234 2027 $323,830 2028 $315,434 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. 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 169th Street, Jamaica, New York - Giving the Company four five-year option periods to extend its lease beyond May 31, 2030 for a total of twenty years through May 31, 2050. In April 2023, the Company exercised the first five-year option period, extending the lease expiration date to May 31, 2035. As of July 31, 2023, it is not reasonably certain the remaining three options to extend the lease will be exercised by the Company. (2) 504-506 Fulton Street, Brooklyn, New York – In July 2022 the lease agreement was modified 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: Schedule of rent payments expenses Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2023 2022 2023 2022 Jamaica Avenue at 169 th $ 625,000 $ 625,000 $ 1,395,185 $ 1,517,437 504-506 Fulton Street 362,250 362,250 381,195 353,001 Total $ 987,250 $ 987,250 $ 1,776,380 $ 1,870,438 The following summarizes assets and liabilities related to these two leases: Schedule of assets and liabilities Right-Of-Use Assets Liabilities Liabilities [Member] July 31 July 31 Property 2023 2022 2023 2022 Expiration Date Jamaica Avenue at 169 th $ 11,430,657 $ 11,442,093 $ 5,210,087 $ 4,451,338 May 31, 2035 504-506 Fulton Street 2,431,554 2,683,787 2,556,421 2,789,709 April 30, 2031 Total $ 13,862,211 $ 14,125,880 $ 7,766,508 $ 7,241,047 Upon termination of the Jamaica, New York lease, currently in 2035, 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, 2023 | |
Equity [Abstract] | |
CAPITALIZATION | 11. 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 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jul. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 12. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2023 | |
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. |
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 consolidated 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 consolidated 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. |
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. |
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 reserve for uncollectible accounts receivable 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 volatility in market conditions and evolving shifts in credit trends that may have a material impact on our allowance for uncollectible accounts receivables in future periods. The Company’s allowance for uncollectible receivables is recorded as an offset to receivables. Activity in the allowance for uncollectible receivables for each period follows: Allowance for Uncollectible Schedule of allowance for uncollectible receivables Allowance for Bad Debt Expense Period Ended July 31 Period Ended July 31 2023 2022 2023 2022 Beginning balance $ 393,000 $ 318,000 $ — $ — Charge-offs (149,337 ) — 43,253 277,920 Reserve Adjustments (128,663 ) 75,000 (128,663 ) 75,000 Ending Balance $ 115,000 $ 393,000 $ (85,410 ) $ 352,920 |
Marketable Securities | Marketable Securities The Company’s marketable securities consist of investments in equity securities and mutual funds. 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 Level 2 valuation Level 3 valuation 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, 2023 and 2022. Equity securities Mutual funds 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. Schedule of financial assets measured on a recurring basis at fair value Fair value measurements at reporting date Description July 31, 2023 Level 1 Level 2 Level 3 July 31, 2022 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,300,441 $ 2,300,441 $ — $ — $ 2,761,069 $ 2,761,069 $ — $ — |
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: Schedule of property and equipment depreciation and amortization period Buildings and improvements 18 40 Improvements to leased property Improvements to leased property [Member] 3 40 Fixtures and equipment Fixtures and equipment [Member] 7 12 Other Other [Member] 3 5 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, 2023 and 2022, the Company has determined there was no impairment of its property and equipment and related lease intangibles. |
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 5 21 |
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 $ 50,000 250,000 |
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 consolidated balance sheets. 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 consolidated balance sheets. 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 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of allowance for uncollectible receivables | Schedule of allowance for uncollectible receivables Allowance for Bad Debt Expense Period Ended July 31 Period Ended July 31 2023 2022 2023 2022 Beginning balance $ 393,000 $ 318,000 $ — $ — Charge-offs (149,337 ) — 43,253 277,920 Reserve Adjustments (128,663 ) 75,000 (128,663 ) 75,000 Ending Balance $ 115,000 $ 393,000 $ (85,410 ) $ 352,920 |
Schedule of financial assets measured on a recurring basis at fair value | Schedule of financial assets measured on a recurring basis at fair value Fair value measurements at reporting date Description July 31, 2023 Level 1 Level 2 Level 3 July 31, 2022 Level 1 Level 2 Level 3 Assets: Marketable securities $ 2,300,441 $ 2,300,441 $ — $ — $ 2,761,069 $ 2,761,069 $ — $ — |
Schedule of property and equipment depreciation and amortization period | Schedule of property and equipment depreciation and amortization period Buildings and improvements 18 40 Improvements to leased property Improvements to leased property [Member] 3 40 Fixtures and equipment Fixtures and equipment [Member] 7 12 Other Other [Member] 3 5 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Marketable securities: | |
Schedule of classified marketable securities | Schedule of classified marketable securities July 31, 2023 July 31, 2022 Cost Gross Gross Fair Cost Gross Gross Fair Available-for-sale: Mutual funds $ 595,166 $301,007 $ — $ 896,173 $ 528,976 $ 269,400 $ — $ 798,376 Corporate equity securities Corporate equity securities [Member] 904,981 499,287 — 1,404,268 1,065,593 897,100 — 1,962,693 $ 1,500,147 $800,294 $ — $ 2,300,441 $ 1,594,569 $ 1,166,500 $ — $ 2,761,069 |
Schedule of investment income | Schedule of investment income 2023 2022 Dividend and interest income $ 98,335 $ 168,591 Gain on sale of marketable securities 130,009 131,786 Total $ 228,344 $ 300,377 |
LONG-TERM DEBT-MORTGAGES (Table
LONG-TERM DEBT-MORTGAGES (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Schedule of long-term debt Years Ended July 31, Current Final 2023 2022 Mortgage: Bond St. land and building, Brooklyn, NY (1) 4.375 12/1/2024 $ 1,653,117 $ 2,759,236 Fishkill land and building (2) 3.980 4/1/2025 3,545,719 3,691,796 Deferred financing costs (54,631 ) (92,743 ) Total $ 5,144,205 $ 6,358,289 (1) In November 2019, the Company refinanced the remaining balance of a $ 6,000,000 3.54 5,255,920 144,080 5,400,000 4.375 five years (2) In March 2020, the Company obtained a loan with a bank in the amount of $ 4,000,000 20 3.98 five years |
Schedule of long-term mortgages outstanding | Schedule of long-term mortgages outstanding Year Ended July 31: Amount 2024 $ 1,308,071 2025 3,890,765 Subtotal 5,198,836 Deferred financing costs (54,631 ) Total $ 5,144,205 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Schedule of revenues by lease and non-lease components | Schedule of revenues by lease and non-lease components Years Ended July 31, 2023 2022 Base rent – fixed $ 20,541,387 $ 19,534,802 Reimbursements of common area costs 936,438 839,950 Non-lease components (real estate taxes) 1,098,630 1,021,283 Rental income $ 22,576,455 $ 21,396,035 Years Ended July 31, 2023 2022 Base rent – fixed Company owned property $ 13,856,697 $ 12,893,208 Leased property 6,684,690 6,641,594 20,541,387 19,534,802 Reimbursements of common area costs & Company owned property 1,322,923 1,234,537 Leased property 712,145 626,696 2,035,068 1,861,233 Total $ 22,576,455 $ 21,396,035 |
Schedule of future minimum non-cancelable rental income | Schedule of future minimum non-cancelable rental income Year Ended July 31, Company Leased Total 2024 $ 10,442,346 $ 4,076,156 $ 14,518,502 2025 8,960,152 3,137,292 12,097,444 2026 8,028,846 3,002,809 11,031,655 2027 6,906,617 2,860,024 9,766,641 2028 6,069,044 2,814,151 8,883,195 After 2028 25,835,446 5,617,784 31,453,230 Total $ 66,242,451 $ 21,508,216 $ 87,750,667 |
Schedule of rental expense | Schedule of rental expense Years Ended July 31, 2023 2022 Sublease income $ 7,396,835 $ 7,268,290 Operating lease cost (3,239,348 ) (3,333,406 ) Excess of sublease income over lease cost $ 4,157,487 $ 3,934,884 |
Schedule of additional information related to leases | Schedule of additional information related to leases Years Ended July 31, 2023 2022 Other information: Operating cash flows from operating leases $ 2,132,945 $ 2,116,363 |
Schedule of annual undiscounted cash flows of the operating lease liabilities | Schedule of annual undiscounted cash flows of the operating lease liabilities Year ended July 31 Operating 2024 $ 2,150,129 2025 2,167,284 2026 2,237,257 2027 2,328,731 2028 2,349,076 Thereafter 24,032,926 Total undiscounted cash flows 35,265,403 Less: present value discount (8,753,291 ) Total Lease Liabilities $ 26,512,112 |
April 2023 [Member] | |
Lessee, Lease, Description [Line Items] | |
Schedule of operating lease right-of-use assets, liabilities and rent expense | Schedule of operating lease right-of-use assets, liabilities and rent expense Jamaica Avenue at 169th Street Increase in Increase in Decrease in Remeasurement change resulting from April 2023 lease extension $1,201,952 $1,201,952 $(30,563 ) |
July 2022 [Member] | |
Lessee, Lease, Description [Line Items] | |
Schedule of operating lease right-of-use assets, liabilities and rent expense | Schedule of operating lease right-of-use assets, liabilities and rent expense 504-506 Fulton Street Increase in Increase in Increase in Remeasurement change resulting from July 2022 lease modification $94,412 $94,412 $2,563 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Schedule of income tax expense 2023 2022 Current: Federal $ — $ — Deferred taxes (benefit): Federal (33,000 ) (220,000 ) State (29,000 ) (70,000 ) Income tax provision (benefit) $ (62,000 ) $ (290,000 ) |
Schedule of federal statutory tax rate to pre-tax income | Schedule of federal statutory tax rate to pre-tax income 2023 2022 Loss before income taxes $ (144,964 ) $ (1,002,371 ) Other-net (26,852 ) (48,211 ) Adjusted pre-tax loss $ (171,816 ) $ (1,050,582 ) Statutory rate 21.00 % 21.00 % Income tax provision (benefit) at statutory rate $ (36,081 ) $ (220,622 ) State deferred income taxes (benefit) (29,000 ) (70,000 ) Other-net 3,081 622 Income tax provision (benefit) $ (62,000 ) $ (290,000 ) |
Schedule of deferred tax assets and liabilities | Schedule of deferred tax assets and liabilities 2023 2022 Deferred Deferred Deferred Deferred Rental income received in advance $ 150,864 $ — $ 164,992 $ — Operating lease liabilities 7,338,553 — 7,338,986 — Federal net operating loss carryforward 1,929,890 — 2,119,555 — State net operating loss carryforward 829,669 — 811,117 — Unbilled receivables — 729,375 — 623,249 Property and equipment — 5,065,135 — 5,052,217 Unrealized gain on marketable securities — 221,521 — 321,837 Operating lease right-of-use assets — 8,556,969 — 8,858,697 Other 94,024 — 129,350 — $ 10,343,000 $ 14,573,000 $ 10,564,000 $ 14,856,000 Net deferred tax liability $ 4,230,000 $ 4,292,000 |
Schedule of components of the deferred tax provision (benefit) | Schedule of components of the deferred tax provision (benefit) 2023 2022 Book depreciation exceeding tax depreciation $ 14,000 $ 88,196 Reserve for bad debts 35,255 (20,697 ) Lease expense per book in excess of cash paid (301,218 ) (335,688 ) Federal net operating loss carryforward 189,665 51,956 State net operating loss carryforward (18,725 ) (1,166 ) Rental income received in advance 14,120 (16,958 ) Unbilled receivables 106,158 54,220 Other (101,255 ) (109,863 ) $ (62,000 ) $ (290,000 ) |
CASH FLOW INFORMATION (Tables)
CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash and cash equivalents and restricted cash | Schedule of cash and cash equivalents and restricted cash July 31 2023 2022 Cash and cash equivalents $ 1,215,921 $ 1,020,585 Restricted cash, tenant security deposits 898,791 950,430 Restricted cash, escrow 71,763 71,742 Restricted cash, other 31,260 27,140 $ 2,217,735 $ 2,069,897 |
Schedule of supplemental disclosure | Schedule of supplemental disclosure July 31, 2023 2022 Cash Flow Information Interest paid, net of capitalized interest of $47,472 $76,642 $ 234,596 $ 256,431 Income tax (refunded) — — Non-cash information Recognition of operating lease right-of-use assets $ 1,201,952 $ 94,412 Recognition of operating lease liabilities 1,201,952 94,412 |
FINANCIAL INSTRUMENTS AND CRE_2
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial instruments | Schedule of fair value of financial instruments July 31, 2023 July 31, 2022 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,215,921 $ 1,215,921 $ 1,020,585 $ 1,020,585 Restricted cash $ 1,001,814 $ 1,001,814 $ 1,049,312 $ 1,049,312 Marketable securities $ 2,300,441 $ 2,300,441 $ 2,761,069 $ 2,761,069 Security deposit payable $ 1,005,925 $ 1,005,925 $ 1,051,428 $ 1,051,428 Mortgages payable $ 5,198,836 $ 4,558,652 $ 6,451,032 $ 6,097,808 |
DEFERRED CHARGES (Tables)
DEFERRED CHARGES (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of deferred charges | Schedule of deferred charges July 31, 2023 July 31, 2022 Gross Accumulated Gross Accumulated Leasing brokerage commissions $ 5,471,610 $ 2,253,786 $ 5,649,633 $ 2,077,445 Professional fees for leasing 127,810 94,934 127,810 85,358 Total $ 5,599,420 $ 2,348,720 $ 5,777,443 $ 2,162,803 |
Schedule of estimated aggregate amortization expense | Schedule of estimated aggregate amortization expense Year Ended July 31 Amortization 2024 $450,921 2025 $409,707 2026 $382,234 2027 $323,830 2028 $315,434 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of rent payments expenses | Schedule of rent payments expenses Rent Payments Rent Expense Year Ended July 31 Year Ended July 31 Property 2023 2022 2023 2022 Jamaica Avenue at 169 th $ 625,000 $ 625,000 $ 1,395,185 $ 1,517,437 504-506 Fulton Street 362,250 362,250 381,195 353,001 Total $ 987,250 $ 987,250 $ 1,776,380 $ 1,870,438 |
Schedule of assets and liabilities | Schedule of assets and liabilities Right-Of-Use Assets Liabilities Liabilities [Member] July 31 July 31 Property 2023 2022 2023 2022 Expiration Date Jamaica Avenue at 169 th $ 11,430,657 $ 11,442,093 $ 5,210,087 $ 4,451,338 May 31, 2035 504-506 Fulton Street 2,431,554 2,683,787 2,556,421 2,789,709 April 30, 2031 Total $ 13,862,211 $ 14,125,880 $ 7,766,508 $ 7,241,047 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of allowance for uncollectible receivables - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Allowance for Uncollectible Accounts Receivable [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 393,000 | $ 318,000 |
Charge-offs | (149,337) | |
Reserve Adjustments | (128,663) | 75,000 |
Ending balance | 115,000 | 393,000 |
Bad Debt Expense [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Charge-offs | 43,253 | 277,920 |
Reserve Adjustments | (128,663) | 75,000 |
Ending balance | $ (85,410) | $ 352,920 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of financial assets measured on a recurring basis presented at fair value - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Platform Operator, Crypto-Asset [Line Items] | ||
Marketable Securities | $ 2,300,441 | $ 2,761,069 |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Marketable Securities | 2,300,441 | 2,761,069 |
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Marketable Securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Marketable Securities |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of property and equipment depreciation and amortization period | Jul. 31, 2023 |
Buildings and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 18 years |
Buildings and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Improvements to leased property [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Improvements to leased property [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
Other [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Other [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Rent deferrals | $ 50,000 | $ 250,000 |
Average common shares outstanding | 2,015,780 | 2,015,780 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred charges amortization period | 5 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred charges amortization period | 21 years |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - Schedule of classified marketable securities - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Marketable Securities [Line Items] | ||
Cost | $ 1,500,147 | $ 1,594,569 |
Gross Unrealized Gains | 800,294 | 1,166,500 |
Gross Unrealized Losses | ||
Fair Value | 2,300,441 | 2,761,069 |
Mutual funds [Member] | ||
Marketable Securities [Line Items] | ||
Cost | 595,166 | 528,976 |
Gross Unrealized Gains | 301,007 | 269,400 |
Gross Unrealized Losses | ||
Fair Value | 896,173 | 798,376 |
Corporate equity securities [Member] | ||
Marketable Securities [Line Items] | ||
Cost | 904,981 | 1,065,593 |
Gross Unrealized Gains | 499,287 | 897,100 |
Gross Unrealized Losses | ||
Fair Value | $ 1,404,268 | $ 1,962,693 |
MARKETABLE SECURITIES (Detail_2
MARKETABLE SECURITIES (Details) - Schedule of investment income - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Marketable securities: | ||
Dividend and interest income | $ 98,335 | $ 168,591 |
Gain on sale of marketable securities | 130,009 | 131,786 |
Total | $ 228,344 | $ 300,377 |
LONG-TERM DEBT-MORTGAGES (Detai
LONG-TERM DEBT-MORTGAGES (Details) - Schedule of long-term debt - USD ($) | 12 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | ||
Extinguishment of Debt [Line Items] | |||
Deferred financing costs | $ (54,631) | $ (92,743) | |
Total | $ 5,144,205 | 6,358,289 | |
Long-Term Debt [Member] | Bond St. land and building, Brooklyn, NY [Member] | |||
Extinguishment of Debt [Line Items] | |||
Current Annual Interest Rate | [1] | 4.375% | |
Final Payment Date | [1] | Dec. 01, 2024 | |
Long term loan | [1] | $ 1,653,117 | 2,759,236 |
Long-Term Debt [Member] | Fishkill land and building [Member] | |||
Extinguishment of Debt [Line Items] | |||
Current Annual Interest Rate | [2] | 3.98% | |
Final Payment Date | [2] | Apr. 01, 2025 | |
Long term loan | [2] | $ 3,545,719 | $ 3,691,796 |
[1]In November 2019, the Company refinanced the remaining balance of a $ 6,000,000 3.54 5,255,920 144,080 5,400,000 4.375 five years 4,000,000 20 3.98 five years |
LONG-TERM DEBT-MORTGAGES (Det_2
LONG-TERM DEBT-MORTGAGES (Details) - Schedule of long-term mortgages outstanding | Jul. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 1,308,071 |
2025 | 3,890,765 |
Subtotal | 5,198,836 |
Deferred financing costs | (54,631) |
Total | $ 5,144,205 |
LONG-TERM DEBT-MORTGAGES (Det_3
LONG-TERM DEBT-MORTGAGES (Details Narrative) - USD ($) | 1 Months Ended | ||
Mar. 31, 2020 | Nov. 30, 2019 | Jul. 31, 2023 | |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 5,255,920 | ||
Carrying value of property | $ 33,869,301 | ||
Bond St. land and building, Brooklyn, NY [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 6,000,000 | ||
Additional loans | 144,080 | ||
Amount outstanding | $ 5,400,000 | ||
Term of loan | 5 years | ||
Bond St. land and building, Brooklyn, NY [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percent | 3.54% | ||
Bond St. land and building, Brooklyn, NY [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate, percent | 4.375% | ||
Fishkill Buildings [Member] | |||
Debt Instrument [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 |
OPERATING LEASES (Details) - Sc
OPERATING LEASES (Details) - Schedule of revenues by lease and non-lease components - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Operating Leases | ||
Base rent – fixed | $ 20,541,387 | $ 19,534,802 |
Reimbursements of common area costs | 936,438 | 839,950 |
Non-lease components (real estate taxes) | 1,098,630 | 1,021,283 |
Total | 22,576,455 | 21,396,035 |
Base rent – fixed | ||
Company owned property | 13,856,697 | 12,893,208 |
Leased property | 6,684,690 | 6,641,594 |
Reimbursements of common area costs & Non lease components (real estate taxes) | ||
Company owned property | 1,322,923 | 1,234,537 |
Leased property | 712,145 | 626,696 |
Property, Total | $ 2,035,068 | $ 1,861,233 |
OPERATING LEASES (Details) - _2
OPERATING LEASES (Details) - Schedule of future minimum non-cancelable rental income | Jul. 31, 2023 USD ($) |
Property, Plant and Equipment [Line Items] | |
2024 | $ 14,518,502 |
2025 | 12,097,444 |
2026 | 11,031,655 |
2027 | 9,766,641 |
2028 | 8,883,195 |
After 2028 | 31,453,230 |
Total | 87,750,667 |
Company Owned Property [Member] | |
Property, Plant and Equipment [Line Items] | |
2024 | 10,442,346 |
2025 | 8,960,152 |
2026 | 8,028,846 |
2027 | 6,906,617 |
2028 | 6,069,044 |
After 2028 | 25,835,446 |
Total | 66,242,451 |
Leased Property [Member] | |
Property, Plant and Equipment [Line Items] | |
2024 | 4,076,156 |
2025 | 3,137,292 |
2026 | 3,002,809 |
2027 | 2,860,024 |
2028 | 2,814,151 |
After 2028 | 5,617,784 |
Total | $ 21,508,216 |
OPERATING LEASES (Details) - _3
OPERATING LEASES (Details) - Schedule of operating lease right-of-use assets, liabilities and rent expense - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Increase in Operating Lease Right-of-Use-Asset | $ 30,913,904 | $ 32,108,363 |
Increase in Operating Lease Liability | 26,512,112 | $ 26,600,168 |
April 2023 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Increase in Operating Lease Right-of-Use-Asset | 1,201,952 | |
Increase in Operating Lease Liability | 1,201,952 | |
Increase (Decrease) in Monthly Rent Expense | (30,563) | |
July 2022 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Increase in Operating Lease Right-of-Use-Asset | 94,412 | |
Increase in Operating Lease Liability | 94,412 | |
Increase (Decrease) in Monthly Rent Expense | $ 2,563 |
OPERATING LEASES (Details) - _4
OPERATING LEASES (Details) - Schedule of rental expense - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Operating Leases | ||
Sublease income | $ 7,396,835 | $ 7,268,290 |
Operating lease cost | (3,239,348) | (3,333,406) |
Excess of sublease income over lease cost | $ 4,157,487 | $ 3,934,884 |
OPERATING LEASES (Details) - _5
OPERATING LEASES (Details) - Schedule of additional information related to leases - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Operating Leases | ||
Operating cash flows from operating leases | $ 2,132,945 | $ 2,116,363 |
OPERATING LEASES (Details) - _6
OPERATING LEASES (Details) - Schedule of annual undiscounted cash flows of the operating lease liabilities - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Lease Liabilities | $ 26,512,112 | $ 26,600,168 |
Operating Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2024 | 2,150,129 | |
2025 | 2,167,284 | |
2026 | 2,237,257 | |
2027 | 2,328,731 | |
2028 | 2,349,076 | |
Thereafter | 24,032,926 | |
Total undiscounted cash flows | 35,265,403 | |
Less: present value discount | (8,753,291) | |
Total Lease Liabilities | $ 26,512,112 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | |
Weighted average remaining lease term | 16 years 7 months 2 days | ||
Weighted average discount rate | 3.72% | ||
Jamaica Avenue at 169th Street [Member] | |||
Lease expiration date | May 31, 2035 | ||
504-506 Fulton Street [Member] | |||
Lease expiration date | Apr. 30, 2031 | ||
Minimum [Member] | |||
Operating leases extended period | 5 years | ||
Lease payments | $ 30,188 | ||
Maximum [Member] | |||
Operating leases extended period | 49 years | ||
Lease payments | $ 34,716 |
INCOME TAX (Details) - Schedule
INCOME TAX (Details) - Schedule of income tax expense - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Current: | ||
Federal | ||
Deferred taxes (benefit): | ||
Federal | (33,000) | (220,000) |
State | (29,000) | (70,000) |
Income tax provision (benefit) | $ (62,000) | $ (290,000) |
INCOME TAX (Details) - Schedu_2
INCOME TAX (Details) - Schedule of federal statutory tax rate to pre-tax income - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (144,964) | $ (1,002,371) |
Other-net | (26,852) | (48,211) |
Adjusted pre-tax loss | $ (171,816) | $ (1,050,582) |
Statutory rate | 21% | 21% |
Income tax provision (benefit) at statutory rate | $ (36,081) | $ (220,622) |
State deferred income taxes (benefit) | (29,000) | (70,000) |
Other-net | 3,081 | 622 |
Income tax provision (benefit) | $ (62,000) | $ (290,000) |
INCOME TAX (Details) - Schedu_3
INCOME TAX (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Deferred Tax Assets [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Rental income received in advance | $ 150,864 | $ 164,992 |
Operating lease liabilities | 7,338,553 | 7,338,986 |
Federal net operating loss carryforward | 1,929,890 | 2,119,555 |
State net operating loss carryforward | 829,669 | 811,117 |
Unbilled receivables | ||
Property and equipment | ||
Unrealized gain on marketable securities | ||
Operating lease right-of-use assets | ||
Other | 94,024 | 129,350 |
Total | 10,343,000 | 10,564,000 |
Deferred Tax Liabilities [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Rental income received in advance | ||
Operating lease liabilities | ||
Federal net operating loss carryforward | ||
State net operating loss carryforward | ||
Unbilled receivables | 729,375 | 623,249 |
Property and equipment | 5,065,135 | 5,052,217 |
Unrealized gain on marketable securities | 221,521 | 321,837 |
Operating lease right-of-use assets | 8,556,969 | 8,858,697 |
Other | ||
Total | 14,573,000 | 14,856,000 |
Net deferred tax liability | $ 4,230,000 | $ 4,292,000 |
INCOME TAX (Details) - Schedu_4
INCOME TAX (Details) - Schedule of components of the deferred tax provision (benefit) - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | $ (62,000) | $ (290,000) |
Book depreciation exceeding tax depreciation [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | 14,000 | 88,196 |
Reserve for bad debts [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | 35,255 | (20,697) |
Lease expense per book in excess of cash paid [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | (301,218) | (335,688) |
Federal net operating loss carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | 189,665 | 51,956 |
State net operating loss carryforward [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | (18,725) | (1,166) |
Rental income received in advance [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | 14,120 | (16,958) |
Unbilled receivables [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | 106,158 | 54,220 |
Other [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax provision (benefit) | $ (101,255) | $ (109,863) |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 9,172,000 | $ 10,096,000 |
State and City [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 12,420,000 | $ 10,218,000 |
EMPLOYEES' RETIREMENT PLANS (De
EMPLOYEES' RETIREMENT PLANS (Details Narrative) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021 | Jul. 31, 2023 USD ($) Integer | Jul. 31, 2022 USD ($) | |
Retirement Benefits [Abstract] | |||
Employer contributions | $ 471,087 | $ 469,202 | |
Pension contributions | $ 117,494 | $ 94,857 | |
Employer contributing, percentage | 5% | ||
Contribution rate, percentage | 9% | 20.16% | |
Expire date | Nov. 30, 2025 | ||
Percentage of other condition of employment | 27% | ||
Number of employees | Integer | 30 |
CASH FLOW INFORMATION (Details)
CASH FLOW INFORMATION (Details) - Schedule of cash and cash equivalents and restricted cash - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | $ 1,215,921 | $ 1,020,585 |
Restricted cash, tenant security deposits | 898,791 | 950,430 |
Restricted cash, escrow | 71,763 | 71,742 |
Restricted cash, other | 31,260 | 27,140 |
Cash flow information | $ 2,217,735 | $ 2,069,897 |
CASH FLOW INFORMATION (Detail_2
CASH FLOW INFORMATION (Details) - Schedule of supplemental disclosure - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash Flow Information | ||
Interest paid, net of capitalized interest of $47,472 (2023), and $76,642 (2022) | $ 234,596 | $ 256,431 |
Income tax (refunded) | ||
Non-cash information | ||
Recognition of operating lease right-of-use assets | 1,201,952 | 94,412 |
Recognition of operating lease liabilities | $ 1,201,952 | $ 94,412 |
CASH FLOW INFORMATION (Detail_3
CASH FLOW INFORMATION (Details) - Schedule of supplemental disclosure (Parenthetical) - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of capitalized interest | $ 47,472 | $ 76,642 |
FINANCIAL INSTRUMENTS AND CRE_3
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Details) - Schedule of Fair Value of Financial Instruments - USD ($) | Jul. 31, 2023 | Jul. 31, 2022 |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Restricted cash | $ 1,001,814 | $ 1,049,312 |
Marketable securities | 2,300,441 | 2,761,069 |
Carrying Value [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Cash and cash equivalents | 1,215,921 | 1,020,585 |
Restricted cash | 1,001,814 | 1,049,312 |
Marketable securities | 2,300,441 | 2,761,069 |
Security deposit payable | 1,005,925 | 1,051,428 |
Mortgages payable | 5,198,836 | 6,451,032 |
Fair Value [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Cash and cash equivalents | 1,215,921 | 1,020,585 |
Restricted cash | 1,001,814 | 1,049,312 |
Marketable securities | 2,300,441 | 2,761,069 |
Security deposit payable | 1,005,925 | 1,051,428 |
Mortgages payable | $ 4,558,652 | $ 6,097,808 |
FINANCIAL INSTRUMENTS AND CRE_4
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Details Narrative) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Revenue [Member] | Two Tenants [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 29.43% | 31.12% |
Receivables [Member] | Four Tenants [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 60.61% | |
Receivables [Member] | Five Tenants [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 68.90% |
DEFERRED CHARGES (Details) - Sc
DEFERRED CHARGES (Details) - Schedule of deferred charges - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Gross Carrying Amount [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Leasing brokerage commissions | $ 5,471,610 | $ 5,649,633 |
Professional fees for leasing | 127,810 | 127,810 |
Total | 5,599,420 | 5,777,443 |
Accumulated Amortization [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Leasing brokerage commissions | 2,253,786 | 2,077,445 |
Professional fees for leasing | 94,934 | 85,358 |
Total | $ 2,348,720 | $ 2,162,803 |
DEFERRED CHARGES (Details) - _2
DEFERRED CHARGES (Details) - Schedule of estimated aggregate amortization expense | Jul. 31, 2023 USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
2024 | $ 450,921 |
2025 | 409,707 |
2026 | 382,234 |
2027 | 323,830 |
2028 | $ 315,434 |
DEFERRED CHARGES (Details Narra
DEFERRED CHARGES (Details Narrative) - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Aggregate amortization expense | $ 452,781 | $ 507,564 |
Weighted average life | 3 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Schedule of rent payments expenses - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Rent Payments | $ 987,250 | $ 987,250 |
Rent Expense | 1,776,380 | 1,870,438 |
Jamaica Avenue At 169th Street [Member] | ||
Related Party Transaction [Line Items] | ||
Rent Payments | 625,000 | 625,000 |
Rent Expense | 1,395,185 | 1,517,437 |
504-506 Fulton Street [Member] | ||
Related Party Transaction [Line Items] | ||
Rent Payments | 362,250 | 362,250 |
Rent Expense | $ 381,195 | $ 353,001 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) - Schedule of assets and liabilities - USD ($) | 12 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Right-Of-Use Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | $ 13,862,211 | $ 14,125,880 |
Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 7,766,508 | 7,241,047 |
Jamaica Avenue At 169th Street [Member] | ||
Related Party Transaction [Line Items] | ||
Expiration Date | May 31, 2035 | |
Jamaica Avenue At 169th Street [Member] | Right-Of-Use Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Right-Of-Use Assets | $ 11,430,657 | 11,442,093 |
Jamaica Avenue At 169th Street [Member] | Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 5,210,087 | 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 | $ 2,431,554 | 2,683,787 |
504-506 Fulton Street [Member] | Liabilities [Member] | ||
Related Party Transaction [Line Items] | ||
Liabilities | $ 2,556,421 | $ 2,789,709 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details Narrative) | 12 Months Ended |
Jul. 31, 2023 | |
Related Party Transactions [Abstract] | |
Lease payments description | 504-506 Fulton Street, Brooklyn, New York – In July 2022 the lease agreement was modified to increase monthly lease payments from $30,188 per month to $34,716 per month commencing on May 1, 2026 through April 30, 2031. |
CAPITALIZATION (Details Narrati
CAPITALIZATION (Details Narrative) - shares | Jul. 31, 2023 | Jul. 31, 2022 |
Equity [Abstract] | ||
Shares of treasury stock | 162,517 | 162,517 |