DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Sep. 09, 2019 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MAYS J W INC | ||
Entity Central Index Key | 0000054187 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 2,015,780 | ||
Entity Public Float | $ 15,934,662 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | NY | ||
Entity File Number | 11-1059070 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Property and Equipment-at cost (Notes 1, 3, 4, 14 and 15): | ||
Buildings and improvements | $ 86,461,353 | $ 82,728,826 |
Improvements to leased property | 1,478,012 | 1,478,012 |
Fixtures and equipment | 144,545 | 144,545 |
Land | 6,067,805 | 6,067,805 |
Other | 164,066 | 205,619 |
Construction in progress | 2,325,940 | 1,786,980 |
Property, Plant and Equipment, Gross | 96,641,721 | 92,411,787 |
Less accumulated depreciation | 43,512,418 | 41,618,803 |
Property and equipment-net | 53,129,303 | 50,792,984 |
Current Assets: | ||
Cash and cash equivalents (Notes 9 and 10) | 4,117,647 | 5,255,073 |
Receivables (Notes 1, 6 and 10) | 402,154 | 252,304 |
Income taxes refundable | 9,683 | 8,792 |
Restricted cash (Note 1) | 181,193 | 100,789 |
Prepaid expenses | 2,159,701 | 1,951,132 |
Total current assets | 6,870,378 | 7,568,090 |
Other Assets: | ||
Deferred charges (Notes 1 and 11) | 3,729,818 | 3,228,162 |
Less accumulated amortization (Notes 1 and 11) | 1,153,996 | 1,369,445 |
Net | 2,575,822 | 1,858,717 |
Restricted cash (Note 1) | 964,884 | 1,523,761 |
Unbilled receivables (Notes 1, 4, 6 and 10) | 1,668,461 | 1,677,093 |
Marketable securities (Notes 1, 2, 10 and 13) | 3,580,227 | 3,141,828 |
Total other assets | 8,789,394 | 8,201,399 |
TOTAL ASSETS | 68,789,075 | 66,562,473 |
Long-Term Liabilities: | ||
Mortgage payable, net (Notes 3 and 10) | 5,264,285 | |
Security deposits payable (Note 10) | 690,422 | 1,242,382 |
Payroll and other accrued liabilities (Notes 1, 5 and 7) | 448,939 | |
Deferred income taxes (Notes 1 and 4) | 5,096,000 | 4,506,000 |
Total long-term liabilities | 6,235,361 | 11,012,667 |
Current Liabilities: | ||
Accounts payable | 30,964 | 74,205 |
Payroll and other accrued liabilities (Notes 1, 5 and 7) | 2,426,535 | 2,104,359 |
Other taxes payable | 8,847 | 8,240 |
Current portion of mortgage payable (Notes 3 and 10) | 5,287,162 | 168,501 |
Current portion of security deposits payable (Note 10) | 192,193 | 101,289 |
Total current liabilities | 7,945,701 | 2,456,594 |
Total liabilities | 14,181,062 | 13,469,261 |
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 |
Unrealized gain on available-for-sale securities - net of deferred taxes of $313,000 at July 31, 2018 (Notes 1, 4, 10 and 13) | 487,136 | |
Retained earnings | 50,371,323 | 48,369,386 |
Stockholders' Equity before Treasury Stock | 55,895,865 | 54,381,064 |
Less common stock held in treasury, at cost - 162,517 shares at July 31, 2019 and July 31, 2018 (Note 12) | 1,287,852 | 1,287,852 |
Total shareholders' equity | 54,608,013 | 53,093,212 |
Commitments (Notes 5 and 6) and Contingencies (Notes 8 and 15) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 68,789,075 | $ 66,562,473 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
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 |
Treasury stock, shares | 162,517 | 162,517 |
Unrealized Gain on Available-for-sale Securities - Net of Deferred Taxes [Member] | ||
Unrealized gain (loss) on available-for-sale securities, deferred taxes (benefit) | $ 313,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Revenues | ||
Rental income (Notes 1 and 6) | $ 20,424,839 | $ 19,300,882 |
Recovery of real estate taxes | 53,341 | |
Total revenues | 20,478,180 | 19,300,882 |
Expenses | ||
Real estate operating expenses (Note 5) | 11,230,957 | 11,074,396 |
Administrative and general expenses | 5,468,489 | 4,598,144 |
Depreciation (Note 1) | 1,960,994 | 1,775,690 |
Total expenses | 18,660,440 | 17,448,230 |
Income from operations before investment income, interest expense and income taxes | 1,817,740 | 1,852,652 |
Investment income and interest expense | ||
Investment income (Notes 1 and 2) | 209,020 | 110,963 |
Change in fair value of marketable securities (Note 1) | 278,629 | |
Interest expense (Notes 3 and 9) | (200,588) | (233,474) |
Total investment income and interest expense: | 287,061 | (122,511) |
Income from operations before income taxes | 2,104,801 | 1,730,141 |
Income taxes provided (benefit) (Notes 1 and 4) | 590,000 | (1,244,000) |
Net income | 1,514,801 | 2,974,141 |
Retained earnings, beginning of year | 48,369,386 | 45,395,245 |
Reclassification of unrealized gain on investments to retained earnings (Note 1) | 487,136 | |
Retained earnings, end of year | $ 50,371,323 | $ 48,369,386 |
Income per common share (Note 1) | $ 0.75 | $ 1.48 |
Dividends per share | ||
Average common shares outstanding (Note 1) | 2,015,780 | 2,015,780 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,514,801 | $ 2,974,141 |
Unrealized gain on available-for-sale securities: | ||
Unrealized holding gains arising during the period, net of taxes of $130,963 for the fiscal year 2018 (Note 13) | 134,117 | |
Reclassification adjustment for net gains included in net income, net of taxes of $7,963 for the year ended July 31, 2018 (Note 13) | (15,457) | |
Unrealized gain on available-for-sale securities, net of taxes | 118,660 | |
Comprehensive income | $ 1,514,801 | $ 3,092,801 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains arising during the period, tax | $ 130,963 | |
Reclassification adjustment for net gains included in net income, tax | $ 7,963 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid In Capital [Member] | Unrealized Gain on Marketable securities [Member] | Retained Earnings [Member] | Common Stock Held in Treasury [Member] | Total |
Balance at Jul. 31, 2017 | $ 2,178,297 | $ 3,346,245 | $ 368,476 | $ 45,395,245 | $ (1,287,852) | $ 50,000,411 |
Increase in unrealized gains on marketable securities | 118,660 | 118,660 | ||||
Net income | 2,974,141 | 2,974,141 | ||||
Balance at Jul. 31, 2018 | 2,178,297 | 3,346,245 | 487,136 | 48,369,386 | (1,287,852) | 53,093,212 |
Reclassification of unrealized gains on marketable securities to retained earnings (Note 1) | (487,136) | 487,136 | ||||
Net income | 1,514,801 | 1,514,801 | ||||
Balance at Jul. 31, 2019 | $ 2,178,297 | $ 3,346,245 | $ 50,371,323 | $ (1,287,852) | $ 54,608,013 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,514,801 | $ 2,974,141 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for deferred income taxes | 590,000 | (1,254,000) |
Net Realized and unrealized (gain) loss on sale of marketable securities | (325,044) | 805 |
Depreciation | 1,960,994 | 1,775,690 |
Amortization of deferred charges | 295,926 | 296,298 |
Deferred finance costs included in interest expense | 22,877 | 22,877 |
Other assets - deferred charges | (1,013,031) | (74,095) |
- unbilled receivables | 8,632 | 266,555 |
Changes in: | ||
Receivables | (149,850) | (87,588) |
Prepaid expenses | (208,569) | (276,113) |
Income taxes refundable | (891) | (1,901) |
Accounts payable | (43,241) | (4,898) |
Payroll and other accrued liabilities | 771,115 | (411,257) |
Other taxes payable | 607 | 105 |
Net cash provided by operating activities | 3,424,326 | 3,226,619 |
Cash Flows From Investing Activities: | ||
Acquisition of property and equipment | (4,297,313) | (3,083,585) |
Marketable securities: | ||
Receipts from sales | 219,744 | 268,857 |
Payments for purchases | (333,099) | (354,103) |
Net cash (used) by investing activities | (4,410,668) | (3,168,831) |
Cash Flows From Financing Activities: | ||
Increase (decrease) - security deposits payable | (461,056) | 307,474 |
Payments - mortgage and other debt payments | (168,501) | (162,568) |
Net cash provided (used) by financing activities | (629,557) | 144,906 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,615,899) | 202,694 |
Cash, cash equivalents and restricted cash at beginning of year | 6,879,623 | 6,676,929 |
Cash, cash equivalents and restricted cash at end of year (Note 9) | $ 5,263,724 | $ 6,879,623 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2019 | |
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. 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. Accounting Records and 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, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities, revenue recognition and accrued expenses. 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. Rental Income and Receivables All of the real estate owned by the Company is held for leasing to tenants except for a small portion used for Company offices. Rent 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 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. Contingent rental income is recorded when earned and is not based on tenant revenue. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, is 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. 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. 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. Management has determined that no allowance for uncollected receivables is considered necessary. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectability become known. Collectability issues include 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. Due to the surrender of a portion of a tenant’s space, the Company reported a bad debt expense of $118,238 for the year ended July 31, 2019 and due to the early termination of a lease, the Company recorded a bad debt expense of $80,302 for the year ended July 31, 2018, both are included in administration and general expenses. 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 shorter of the life of the lease or the estimated useful life of the improvements. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-40 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. The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31, 2019 and 2018, there were no impairments 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 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. Income 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 2019 and 2018. Marketable Securities Prior to the adoption of ASU 2016-01, the Company categorized marketable securities as either trading, available-for-sale or held-to-maturity at the time of purchase. Trading securities were carried at fair value with unrealized gains and losses included in income. Available-for-sale securities were carried at fair value using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders’ equity. Held-to-maturity securities were carried at amortized cost. With the adoption of ASU 2016-01 effective August 1, 2018, equity securities with readily determinable fair values are reported at fair value as marketable securities in the other assets section of the balance sheet. Also, effective August 1, 2018, changes in fair value of marketable securities are recorded in the investment income and interest expense section of the statement of income and retained earnings. 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 Company did not classify any securities as trading or held to maturity during the year ended July 31, 2018. 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, 2019 and 2018. 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 using Description July 31, 2019 Level 1 Level 2 Level 3 July 31, 2018 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $ 3,580,227 $ 3,580,227 $– $– $ 3,141,828 $ 3,141,828 $– $– Recently issued accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” The additional ASU’s clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. We adopted these standards effective August 1, 2018 using the modified retrospective approach, which allowed us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, however there was no cumulative-effect required to be recognized in our retained earnings as the date of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, to address a specific consequence of the Tax Act by allowing a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act’s reduction of the U.S. federal corporate income tax rate. The standard is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company early adopted this ASU effective August 1, 2018 and applied this new guidance in the period of adoption. As a result, $92,000 of income taxes stranded in accumulated other comprehensive income (loss) was classified to retained earnings. The ASU also requires the Company to disclose its policy on accounting for income tax effects in accumulated other comprehensive income (loss). In general, the Company applies the individual item approach with respect to marketable securities. In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification, amending and expanding certain disclosure requirements. The rules require, among other things, that registrants include in their interim financial statements a reconciliation of changes in shareholders’ equity in the notes or as a separate statement that reconciles the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The Company applied the new SEC disclosure requirements to the Consolidated Statements of Changes in Shareholders’ Equity in the third quarter of fiscal 2019 on a retrospective basis. In July 2019, the FASB issued ASU No. 2019-07, “Codification Updates to SEC Sections -Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates,”. This guidance aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The ASU is effective upon issuance, during the Company’s fourth quarter of fiscal 2019. The adoption this standard did not have a material impact on our consolidated financial statements. Recently issued accounting standards not yet adopted: In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842”, which provides amendments and clarification to ASU 2016-12 based on the FASB’s interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements”, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors,” which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements”, which provides amendments for issues brought to the Board’s attention through its interactions with stakeholders. The issues identified are as follows. 1. Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, 2. Presentation on the statement of cash flows-sales-type and direct financing leases, 3. Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standards will be effective for the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company has elected the following practical expedients: ● The Company will apply the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption on August 1, 2019. The Company does not anticipate a significant adjustment to opening retained earnings. ● As lessee and lessor, the Company has elected not to reassess lease classification and all leases will continue to be classified as operating leases under the new standard. The Company’s lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Therefore, as of August 1, 2019, the Company does not anticipate significant changes in accounting for its lease revenue as lessor. The Company as lessee, upon adoption of Topic 842 on August 1, 2019, recorded on its balance sheet right-of-use assets and lease liabilities approximating $27.1 million and $17.9 million, respectively, based on the net present value of remaining minimum rental payments required by existing operating leases. Additionally, a lease which expires July 31, 2029 related to an affiliate principally owned by a director of the Company (“landlord”) is for a ground lease which required the Company to construct a building during the lease period. In accordance with the terms of this lease, upon lease termination in 2029, the building and all improvements are turned over to the landlord as property owner. As a result of the new standard, effective August 1, 2019, such building and improvements net of accumulated depreciation approximating $10.2 million are included in right-of-use asset, disclosed above. Until the lease agreement terminates in 2029, the Company remains solely entitled to tax depreciation and other tax deductions relating to the building, improvements and maintenance of the property included in this lease. The Company will continue to evaluate the impact of adopting Topic 842 on its consolidated balance sheets, statements of income and retained earnings. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | 2. MARKETABLE SECURITIES: As of July 31, 2019 and 2018, the Company’s marketable securities were classified as follows: July 31, 2019 July 31, 2018 Cost Gross Gross Fair Cost Gross Gross Fair Non-current: Available-for-sale: Mutual funds $ 845,306 $ 264,425 $ — $ 1,109,731 $ 774,602 $ 237,149 $ — $ 1,011,751 Corporate equity securities 1,656,156 814,340 — 2,470,496 1,567,089 562,988 — 2,130,077 $ 2,501,462 $ 1,078,765 $ — $ 3,580,227 $ 2,341,691 $ 800,137 $ — $ 3,141,828 Investment income for the years ended July 31, 2018, 2017 and 2016 consists of the following: 2019 2018 Interest income $ 56,918 $ 25,414 Dividend income 105,687 86,354 Gain (loss) on sale of marketable securities 46,415 (805 ) Total $ 209,020 $ 110,963 |
LONG-TERM DEBT - MORTGAGE
LONG-TERM DEBT - MORTGAGE | 12 Months Ended |
Jul. 31, 2019 | |
LONG-TERM DEBT - MORTGAGES AND TERM LOAN [Abstract] | |
LONG-TERM DEBT - MORTGAGE | 3. LONG-TERM DEBT—MORTGAGE: July 31, 2019 July 31, 2018 Current Final Due Due Due Due Mortgage: Bond St. building, Brooklyn, NY 3.54% 2/1/2020 $ 5,298,610 $ — $ 168,501 $ 5,298,610 Less: Deferred financing costs 11,448 — — 34,325 Total $ 5,287,162 $ — $ 168,501 $ 5,264,285 On January 9, 2015, the Company refinanced its loan with a bank for $6,000,000, which included the outstanding balance as of January 2015 in the amount of $5,347,726 and an additional borrowing of $652,274. The loan is for a period of five years with a payment based on a twenty-five year amortization period. The interest rate for this period is fixed at 3.54% per annum. The mortgage loan is secured by the Bond Street building in Brooklyn, New York. The Company is in the process of evaluating its options related to the repayment of the mortgage. Maturities of long-term mortgage and term loan payable outstanding at July 31, 2019 are as follows: Year ending July 31, 2020 (included in current liabilities): $5,298,610. The carrying value of the property collateralizing the above debt is $22,294,746 at July 31, 2019. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 4. INCOME TAXES: On December 22, 2017, the United States government (“U.S.”) enacted significant changes to the U.S. tax law following the passage and signing of H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Tax Act”) (previously known as “The Tax Cuts and Jobs Act”). The Tax Act included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 34% to 21%, a one-time repatriation tax on deferred foreign income, deductions, credits and business related exclusions. The permanent reduction to the U.S. federal corporate income tax rate from 34% to 21% was effective January 1, 2018 (the “Effective Date”). When a U.S. federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment. As a result of the Tax Act, the Company has calculated a U.S. federal statutory corporate income tax rate of 26.42% for the fiscal year ending July 31, 2018 and applied this rate in computing the income tax provision. The U.S. federal statutory corporate income tax rate of 26.42% is the weighted daily average rate between the pre-enactment U.S. federal statutory tax rate of 34%, applicable to the Company’s fiscal year ending July 31 2018 prior to the Effective Date, and the post-enactment U.S. federal statutory tax rate of 21% applicable thereafter. The Company applied the U.S. federal statutory rate of 21% for fiscal years beginning after July 31, 2018. As of July 31, 2017, the Company had net deferred federal tax liabilities totaling approximately $5.6 million. As a direct result of the permanent reduction in federal tax rates from 34% to 21%, the value of these net deferred tax liabilities was computed at the new, lower tax rate which results in a reduction in deferred tax liabilities and an income tax benefit in the period of enactment. Accordingly, the Company’s income tax provision for the fiscal year ended July 31, 2018 included a $2.4 million non-cash reduction to the value of net deferred tax liabilities to the revised value based on the new, lower tax rate. Income taxes provided for the years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Current: Federal $ — $ 10,000 Deferred taxes: Federal 456,000 (1,841,000 ) State 134,000 587,000 Total provision $ 590,000 $ (1,244,000 ) Taxes provided for the years ended July 31, 2019 and 2018 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: 2019 2018 Income before income taxes $ 2,104,801 $ 1,730,141 Other-net (17,397 ) 2,443 Adjusted pre-tax income $ 2,087,404 $ 1,732,584 Statutory rate 21.00 % 26.42 % Income tax provision at statutory rate $ 438,355 $ 457,749 Remeasurement of federal deferred income taxes — (2,390,000 ) State deferred income taxes 134,000 587,000 Other-net 17,645 101,251 Income tax provision $ 590,000 $ (1,244,000 ) The Company has a federal net operating loss carryforward approximating $4,001,000 and $4,078,000 as of July 31, 2019 and July 31, 2018, respectively, available to offset future taxable income. As of July 31, 2019 and 2018, the Company had unused state and city net operating loss carryforwards of approximately $10,182,000 and $10,107,000, respectively, for state and $8,274,000 for city, available to offset future state and city taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035. The Company’s federal tax returns have been audited through the year ended July 31, 2013 and the New York State and New York City tax returns have been audited through July 31, 2012. 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, 2019, 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, 2019 and 2018 are a result of temporary differences related to the items described as follows: 2019 2018 Deferred Deferred Deferred Deferred Rental income received in advance $ 214,793 $ — $ 174,975 $ — Federal net operating loss carryforward 840,122 — 851,175 — State net operating loss carryforward 670,997 — 665,934 — Unbilled receivables — 460,328 — 462,686 Property and equipment — 6,362,708 — 5,916,568 Unrealized gain on marketable securities — 297,964 — 220,746 Litigation deposit due from contractor — — 103,862 — Other 299,088 — 298,054 — $ 2,025,000 $ 7,121,000 $ 2,094,000 $ 6,600,000 Net deferred tax liability $ 5,096,000 $ 4,506,000 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, 2019. 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, 2016, changes in the law required the state capital-based tax will be phased out over a 7-year period. The Company anticipates New York State taxes will be based on income after the capital-based tax is phased out. During the quarter ended July 31, 2018, the Company recorded a state deferred tax asset, deferred tax liability and deferred taxes on unrealized gain on available-for-sale securities in the amounts of $790,000, $1,430,000 and $53,000, respectively, resulting in a state deferred tax expense of $587,000. 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 expense. 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. Components of the deferred tax provision (benefit) for the years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Tax depreciation exceeding book depreciation $ 446,551 $ (1,430,906 ) Federal net operating loss carryforward 11,053 1,000,360 State net operating loss carryforward (5,063 ) (665,934 ) Decrease (increase) of rental income received in advance (39,818 ) 65,999 (Decrease) in unbilled receivables (2,358 ) (198,154 ) Increase (decrease) in average rent payable (25,186 ) 81,230 Litigation deposit due from contractor 103,862 (8,930 ) Other 100,959 (97,665 ) $ 590,000 $ (1,254,000 ) |
LEASES
LEASES | 12 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
LEASES | 5. LEASES: The Company’s real estate operations encompass both owned and leased properties. The current leases on leased property, most of which have options to extend the terms, range from 3 years to 25 years. Certain of the leases provide for additional rentals under certain circumstances and obligate the Company for payments of real estate taxes and other expenses. Rental expense for leased real property for each of the fiscal years ended July 31, 2019 and July 31, 2018 was exceeded by sublease rental income, as follows: 2019 2018 Minimum rental expense $ 1,985,695 $ 1,750,859 Contingent rental expense 1,164,632 1,034,762 3,150,327 2,785,621 Sublease rental income 7,126,437 6,901,958 Excess of sublease income over expense $ 3,976,110 $ 4,116,337 Rent expense related to an affiliate principally owned by a director of the Company totaled $987,250 for fiscal years ended July 31, 2019 and 2018. The rent expense is derived from two leases which expire May 31, 2029 and April 30, 2031, respectively. Rent expense is recognized on a straight-line basis over the lives of the leases. The lease which expires May 31, 2029 is related to an affiliate principally owned by a director of the Company (“landlord”), is for a ground lease which required the Company to construct a building during the lease period. In accordance with the terms of the lease, upon lease termination in 2029, the building and all improvements are turned over to the landlord. Future minimum non-cancelable rental commitments for operating leases with initial or remaining terms of one year or more are payable as follows: Fiscal Year Operating 2020 $ 1,897,318 2021 1,941,494 2022 2,057,814 2023 2,072,000 2024 2,086,697 After 2024 11,701,293 Total required* $ 21,756,616 * Minimum payments have not been reduced by minimum sublease rentals of $37,501,850 under operating leases due in the future under non-cancelable leases. |
RENTAL INCOME
RENTAL INCOME | 12 Months Ended |
Jul. 31, 2019 | |
RENTAL INCOME [Abstract] | |
RENTAL INCOME | 6. RENTAL INCOME: Rental income for each of the fiscal years 2019 and 2018 is as follows: July 31, 2019 2018 Minimum rentals Company owned property $ 12,448,374 $ 11,652,482 Leased property 6,677,998 6,502,219 19,126,372 18,154,701 Contingent rentals Company owned property 850,226 746,442 Leased property 448,241 399,739 1,298,467 1,146,181 Total $ 20,424,839 $ 19,300,882 Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: Fiscal Year Company Leased Total 2020 $ 10,038,712 $ 6,120,283 $ 16,158,995 2021 9,521,380 5,009,044 14,530,424 2022 7,878,165 4,039,069 11,917,234 2023 7,399,288 3,270,666 10,669,954 2024 6,483,940 2,987,050 9,470,990 After 2024 52,632,826 14,842,540 67,475,366 Total $ 93,954,311 $ 36,268,652 $ 130,222,963 Rental income is recognized on a straight-line basis over the lives of the leases. |
PAYROLL AND OTHER ACCRUED LIABI
PAYROLL AND OTHER ACCRUED LIABILITIES | 12 Months Ended |
Jul. 31, 2019 | |
Payables and Accruals [Abstract] | |
PAYROLL AND OTHER ACCRUED LIABILITIES | 7. PAYROLL AND OTHER ACCRUED LIABILITIES: Payroll and other accrued liabilities for the fiscal years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Payroll $ 131,095 $ 259,149 Interest 16,152 16,666 Professional fees 155,600 140,000 Rents received in advance 783,678 644,728 Utilities 13,400 19,200 Brokers commissions 728,322 134,418 Construction costs 66,829 — Other 980,398 890,198 Total 2,875,474 2,104,359 Less current portion 2,426,535 2,104,359 Long term portion $ 448,939 $ — |
EMPLOYEES' RETIREMENT PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Jul. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEES' RETIREMENT PLANS | 8. EMPLOYEES’ RETIREMENT PLANS: The Company sponsors a non-contributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $427,420 and $413,256 as contributions to the Plan for fiscal years 2019 and 2018, 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, 2019 and 2018 were $61,588 and $62,425, respectively. Contributions and costs are determined in accordance with the provisions of negotiated labor contracts or terms of the plans. The Company also contributes to union sponsored health benefit plans. 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, 2017 Certified zone status: Critical and declining status Status determination date: January 1, 2018 Plan used extended amortization provisions in status calculation: Yes Minimum required contribution: Yes Employer contributing greater than 5% of Plan contributions for year Yes Rehabilitation plan implemented: Yes Employer subject to surcharge: Yes Contract expiration date: November 30, 2019 For the plan years 2017-2019, under the pension fund’s rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to 9.1% of the prior year total contribution rate. The Company has 29 employees and has a contract, expiring November 30, 2019, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 24% of its 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, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW INFORMATION | 9. 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, 2019 2018 Cash and cash equivalents $ 4,117,647 $ 5,255,073 Restricted cash, tenant security deposits 859,674 1,332,671 Restricted cash, escrow 258,563 258,399 Restricted cash, other 27,840 33,480 $ 5,263,724 $ 6,879,623 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 disclosures: July 31, 2019 2018 Interest paid, net of capitalized interest of $77,880 (2019), and $ 115,657 $ 211,092 Income taxes paid $ — $ 36,494 |
FINANCIAL INSTRUMENTS AND CREDI
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS | 10. 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, 2019 July 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 4,117,647 $ 4,117,647 $ 5,255,073 $ 5,255,073 Marketable securities $ 3,580,227 $ 3,580,227 $ 3,141,828 $ 3,141,828 Restricted cash $ 1,146,077 $ 1,146,077 $ 1,624,550 $ 1,624,550 Security deposits payable $ 882,615 $ 882,615 $ 1,343,671 $ 1,343,671 Mortgage $ 5,298,610 $ 5,298,610 $ 5,467,111 $ 4,939,149 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, and receivables 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. The Company derived rental income from approximately fifty tenants during the years ended July 31, 2019 and 2018. As of July 31, 2019, four tenants accounted for approximately 68.8% of receivables and four tenants accounted for 68.44% of unbilled receivables. As of July 31, 2018, four tenants accounted for 77.7% of receivables and three tenants accounted for 66.9% of unbilled receivables. During the year ended July 31, 2019, three tenants accounted for 44.4% of total rental revenue. During the year ended July 31, 2018 three tenants accounted for 44.6% of total rental revenue. |
DEFERRED CHARGES
DEFERRED CHARGES | 12 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEFERRED CHARGES | 11. DEFERRED CHARGES: Deferred charges for the fiscal years ended July 31, 2019 and 2018 consist of the following: July 31, 2019 July 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 3,578,114 $ 1,076,694 $ 3,035,040 $ 1,264,427 Professional fees for leasing 151,704 77,302 193,122 105,018 Total $ 3,729,818 $ 1,153,996 $ 3,228,162 $ 1,369,445 The aggregate amortization expense for the periods ended July 31, 2019 and July 31, 2018 were $295,926, and $296,298, respectively. The weighted average life of current year additions to deferred charges was twelve years. The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization 2020 $ 291,538 2021 $ 297,985 2022 $ 270,944 2023 $ 257,772 2024 $ 235,093 |
CAPITALIZATION
CAPITALIZATION | 12 Months Ended |
Jul. 31, 2019 | |
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, 2019 and at July 31, 2018. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Jul. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME: The only component of accumulated other comprehensive income is unrealized gains (losses) on available-for-sale securities. A summary of the changes in accumulated other comprehensive income for the fiscal years ended July 31, 2019, and 2018 are as follows: Years Ended July 31, 2019 2018 Beginning balance, net of tax effect $ 487,136 $ 368,476 Other comprehensive income, net of tax effect: Unrealized gains on available-for-sale securities — 265,080 Tax effect — (130,963 ) Unrealized gains on available-for-sale securities, net of tax effect — 134,117 Amounts reclassified from accumulated other comprehensive income, net of tax effect: Unrealized gain on marketable securities reclassified to retained earnings (800,136 ) (23,420 ) Tax effect 313,000 7,963 Amount reclassified, net of tax effect (487,136 ) (15,457 ) Ending balance, net of tax effect $ — $ 487,136 A summary of the line items in the Consolidated Statements of Income and Retained Earnings affected by the amounts reclassified from accumulated other comprehensive income is as follows: Details about accumulated other Affected line item in the statement comprehensive income components where net income is presented Other comprehensive income reclassified Investment income Tax effect Income taxes provided |
ENTRY INTO A MATERIAL DEFINITIV
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT | 12 Months Ended |
Jul. 31, 2019 | |
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT [Abstract] | |
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT | 14. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT: On June 16, 2014, the Company entered into a Second Amendment of Lease (the “Amendment”) with 33 Bond St. LLC (“Bond”), its landlord, for certain truck bays and approximately 1,000 square feet located at the cellar level within a garage at Livingston and Bond Street (“Premises”). Pursuant to the Amendment, (1) a lease option for the Premises was exercised extending the lease until December 8, 2043, (2) the Company, simultaneously with the execution of the Amendment, vacated the Premises so that Bond may demolish the building in which the Premises is located in order to develop and construct a new building at the location, and (3) Bond agreed to redeliver to the Company possession of the reconfigured Premises after construction. As consideration under the Amendment, Bond agreed to pay the Company a total of $3,500,000. Upon execution of the Amendment, the Company recorded $3,500,000 to deferred revenue to be amortized to revenue to temporarily vacate the premises over the expected vacate period of 36 months. Bond tendered $2,250,000 simultaneously with the execution of the Amendment, and the balance due of $1,250,000 on June 16, 2015 had been received by the Company. The Company re-occupied the premises in October 2017. In connection with the Amendment, the parties also agreed to settle a pending lawsuit in the Supreme Court of the State of New York, Kings County, Index No. 50796/13 (the “Action”), in which the Company sought, among other things, a declaratory judgment that it validly renewed the lease for the Premises, and Bond sought, among other things, a declaratory judgment that the lease expired by its terms on December 8, 2013. Pursuant to a stipulation of settlement, filed on June 16, 2014, the Action, including all claims and counterclaims, has been discontinued with prejudice, without costs or attorneys’ fees to any party as against the other. The stipulation of settlement also contains general releases by both parties of all claims. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 15. CONTINGENCIES: On November 2, 2018 the Company settled the lawsuit relating to defective workmanship and breach of contract to replace a roof and various other work on its Fishkill, New York building. The Company agreed to pay $635,000 to the Plaintiffs, D. Owens Electric, Inc., Mid-Hudson Structural Concrete, Inc. d/b/a Recycle Depot, and BSB Construction, Inc., in settlement of the claims made against the Company. This settlement resolves the actions and disputes referred to in the Decision and Order dated October 30, 2018 of the Supreme Court of the State of New York, County of Dutchess. The $635,000 was paid in full on November 6, 2018. 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, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 16. SUBSEQUENT EVENT: On September 18, 2019, the Company’s largest retail tenant occupying 128,196 square feet surrendered approximately 22,000 square feet at the Nine Bond street building in Brooklyn, New York. The effective date of the surrender was August 31, 2019 and was approximately 16% of the total square footage that this tenant leased from the Company prior to such surrender. The annual loss in rent will be approximately $965,000 until a new tenant is obtained to occupy the space. |
REAL ESTATE AND ACCUMULATED DEP
REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Jul. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III J.W. MAYS, INC. ESTATE AND ACCUMULATED DEPRECIATION July 31, 2019 Col. A Col. B Col. C Col. D Col. E Col. F Col. G Col. H Col. I Cost Capitalized Life on Which Subsequent to Gross Amount at Which Carried Depreciation in Initial Cost to Company Acquisition At Close of Period Latest Income Building & Carried Building & Accumulated Date of Date Statement is Description Encumbrances Land Improvements Improvements Cost Land Improvements Total Depreciation Construction Acquired Computed Office and Rental Buildings Brooklyn, New York $ 5,298,610 $ 3,901,349 $ 7,403,468 $ 24,705,476 $ — $ 3,901,349 $ 32,108,944 $ 36,010,293 $ 13,715,547 Various Various (1) (2) Jamaica, New York Jamaica Avenue at 169th Street — — 3,215,699 18,265,742 — — 21,481,441 21,481,441 11,494,356 1959 1959 (1) (2) Fishkill, New York Route 9 at Interstate — 594,723 7,212,116 7,975,313 — 594,723 15,187,429 15,782,152 9,200,826 10/74 11/72 (1 ) Brooklyn, New York Jowein Building Fulton Street — 1,324,957 728,327 16,284,188 — 1,324,957 17,012,515 18,337,472 5,982,747 1915 1950 (1) (2) Levittown, New York Hempstead Turnpike — 125,927 — — — 125,927 — 125,927 — 4/69 6/62 (1 ) Circleville, Ohio Tarlton Road — 120,849 4,388,456 86,520 — 120,849 4,474,976 4,595,825 2,916,794 9/92 12/92 (1 ) Total(A) $ 5,298,610 $ 6,067,805 $ 22,948,066 $ 67,317,239 $ — $ 6,067,805 $ 90,265,305 $ 96,333,110 $ 43,310,270 ____________________ (1) Building and improvements 18–40 years (2) Improvements to leased property 3–40 years (A) Does not include Office Furniture and Equipment and Transportation Equipment in the amount of $308,611 and Accumulated Depreciation thereon of $202,148 at July 31, 2019. Year Ended July 31, 2019 2018 Investment in Real Estate Balance at Beginning of Year $ 92,061,623 $ 89,016,227 Improvements 4,271,487 3,045,396 Retirements — — Balance at End of Year $ 96,333,110 $ 92,061,623 Accumulated Depreciation Balance at Beginning of Year $ 41,382,962 $ 39,648,642 Additions Charged to Costs and Expenses 1,927,308 1,734,320 Retirements — — Balance at End of Year $ 43,310,270 $ 41,382,962 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
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. |
Consolidation | 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. |
Accounting Records and Use of Estimates | Accounting Records and 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, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities, revenue recognition and accrued expenses. 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. |
Rental Income and Receivables | Rental Income and Receivables All of the real estate owned by the Company is held for leasing to tenants except for a small portion used for Company offices. Rent 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 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. Contingent rental income is recorded when earned and is not based on tenant revenue. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, is 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. 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. 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. Management has determined that no allowance for uncollected receivables is considered necessary. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectability become known. Collectability issues include 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. Due to the surrender of a portion of a tenant’s space, the Company reported a bad debt expense of $118,238 for the year ended July 31, 2019 and due to the early termination of a lease, the Company recorded a bad debt expense of $80,302 for the year ended July 31, 2018, both are included in administration and general expenses. |
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 shorter of the life of the lease or the estimated useful life of the improvements. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-40 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. The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At July 31, 2019 and 2018, there were no impairments 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 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed. |
Income Taxes | Income 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 2019 and 2018. |
Marketable Securities | Marketable Securities Prior to the adoption of ASU 2016-01, the Company categorized marketable securities as either trading, available-for-sale or held-to-maturity at the time of purchase. Trading securities were carried at fair value with unrealized gains and losses included in income. Available-for-sale securities were carried at fair value using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders’ equity. Held-to-maturity securities were carried at amortized cost. With the adoption of ASU 2016-01 effective August 1, 2018, equity securities with readily determinable fair values are reported at fair value as marketable securities in the other assets section of the balance sheet. Also, effective August 1, 2018, changes in fair value of marketable securities are recorded in the investment income and interest expense section of the statement of income and retained earnings. 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 Company did not classify any securities as trading or held to maturity during the year ended July 31, 2018. 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, 2019 and 2018. |
Equity securities | 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 | 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 using Description July 31, 2019 Level 1 Level 2 Level 3 July 31, 2018 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $ 3,580,227 $ 3,580,227 $– $– $ 3,141,828 $ 3,141,828 $– $– |
Recently issued accounting standards: | Recently issued accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.” The additional ASU’s clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. We adopted these standards effective August 1, 2018 using the modified retrospective approach, which allowed us to apply the new standard to all existing contracts not yet completed as of the effective date and record a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, however there was no cumulative-effect required to be recognized in our retained earnings as the date of adoption. The adoption of this standard did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, to address a specific consequence of the Tax Act by allowing a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Act’s reduction of the U.S. federal corporate income tax rate. The standard is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company early adopted this ASU effective August 1, 2018 and applied this new guidance in the period of adoption. As a result, $92,000 of income taxes stranded in accumulated other comprehensive income (loss) was classified to retained earnings. The ASU also requires the Company to disclose its policy on accounting for income tax effects in accumulated other comprehensive income (loss). In general, the Company applies the individual item approach with respect to marketable securities. In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification, amending and expanding certain disclosure requirements. The rules require, among other things, that registrants include in their interim financial statements a reconciliation of changes in shareholders’ equity in the notes or as a separate statement that reconciles the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The Company applied the new SEC disclosure requirements to the Consolidated Statements of Changes in Shareholders’ Equity in the third quarter of fiscal 2019 on a retrospective basis. In July 2019, the FASB issued ASU No. 2019-07, “Codification Updates to SEC Sections -Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates,”. This guidance aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The ASU is effective upon issuance, during the Company’s fourth quarter of fiscal 2019. The adoption this standard did not have a material impact on our consolidated financial statements. |
Recently issued accounting standards not yet adopted | Recently issued accounting standards not yet adopted: In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842”, which provides amendments and clarification to ASU 2016-12 based on the FASB’s interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements”, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors,” which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements”, which provides amendments for issues brought to the Board’s attention through its interactions with stakeholders. The issues identified are as follows. 1. Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, 2. Presentation on the statement of cash flows-sales-type and direct financing leases, 3. Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standards will be effective for the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company has elected the following practical expedients: ● The Company will apply the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption on August 1, 2019. The Company does not anticipate a significant adjustment to opening retained earnings. ● As lessee and lessor, the Company has elected not to reassess lease classification and all leases will continue to be classified as operating leases under the new standard. The Company’s lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Therefore, as of August 1, 2019, the Company does not anticipate significant changes in accounting for its lease revenue as lessor. The Company as lessee, upon adoption of Topic 842 on August 1, 2019, recorded on its balance sheet right-of-use assets and lease liabilities approximating $27.1 million and $17.9 million, respectively, based on the net present value of remaining minimum rental payments required by existing operating leases. Additionally, a lease which expires July 31, 2029 related to an affiliate principally owned by a director of the Company (“landlord”) is for a ground lease which required the Company to construct a building during the lease period. In accordance with the terms of this lease, upon lease termination in 2029, the building and all improvements are turned over to the landlord as property owner. As a result of the new standard, effective August 1, 2019, such building and improvements net of accumulated depreciation approximating $10.2 million are included in right-of-use asset, disclosed above. Until the lease agreement terminates in 2029, the Company remains solely entitled to tax depreciation and other tax deductions relating to the building, improvements and maintenance of the property included in this lease. The Company will continue to evaluate the impact of adopting Topic 842 on its consolidated balance sheets, statements of income and retained earnings. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment depreciation and amortization period | Amortization of improvements to leased property is calculated over the shorter of the life of the lease or the estimated useful life of the improvements. Lives used to determine depreciation and amortization are generally as follows: Buildings and improvements 18-40 years Improvements to leased property 3-40 years Fixtures and equipment 7-12 years Other 3-5 years |
Schedule of investments measured at fair value | 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 using Description July 31, 2019 Level 1 Level 2 Level 3 July 31, 2018 Level 1 Level 2 Level 3 Assets: Marketable securities - available-for-sale $ 3,580,227 $ 3,580,227 $– $– $ 3,141,828 $ 3,141,828 $– $– |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of classified marketable securities | As of July 31, 2019 and 2018, the Company’s marketable securities were classified as follows: July 31, 2019 July 31, 2018 Cost Gross Gross Fair Cost Gross Gross Fair Non-current: Available-for-sale: Mutual funds $ 845,306 $ 264,425 $ — $ 1,109,731 $ 774,602 $ 237,149 $ — $ 1,011,751 Corporate equity securities 1,656,156 814,340 — 2,470,496 1,567,089 562,988 — 2,130,077 $ 2,501,462 $ 1,078,765 $ — $ 3,580,227 $ 2,341,691 $ 800,137 $ — $ 3,141,828 |
Schedule of investment income | Investment income for the years ended July 31, 2018, 2017 and 2016 consists of the following: 2019 2018 Interest income $ 56,918 $ 25,414 Dividend income 105,687 86,354 Gain (loss) on sale of marketable securities 46,415 (805 ) Total $ 209,020 $ 110,963 |
LONG-TERM DEBT - MORTGAGE (Tabl
LONG-TERM DEBT - MORTGAGE (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
LONG-TERM DEBT - MORTGAGES AND TERM LOAN [Abstract] | |
Schedule of long-term debt | July 31, 2019 July 31, 2018 Current Final Due Due Due Due Mortgage: Bond St. building, Brooklyn, NY 3.54% 2/1/2020 $ 5,298,610 $ — $ 168,501 $ 5,298,610 Less: Deferred financing costs 11,448 — — 34,325 Total $ 5,287,162 $ — $ 168,501 $ 5,264,285 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Income taxes provided for the years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Current: Federal $ — $ 10,000 Deferred taxes: Federal 456,000 (1,841,000 ) State 134,000 587,000 Total provision $ 590,000 $ (1,244,000 |
Schedule of effective income tax rate reconciliation | Taxes provided for the years ended July 31, 2019 and 2018 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows: 2019 2018 Income before income taxes $ 2,104,801 $ 1,730,141 Other-net (17,397 ) 2,443 Adjusted pre-tax income $ 2,087,404 $ 1,732,584 Statutory rate 21.00 % 26.42 % Income tax provision at statutory rate $ 438,355 $ 457,749 Remeasurement of federal deferred income taxes — (2,390,000 ) State deferred income taxes 134,000 587,000 Other-net 17,645 101,251 Income tax provision $ 590,000 $ (1,244,000 ) |
Schedule of deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities as of July 31, 2019 and 2018 are a result of temporary differences related to the items described as follows: 2019 2018 Deferred Deferred Deferred Deferred Rental income received in advance $ 214,793 $ — $ 174,975 $ — Federal net operating loss carryforward 840,122 — 851,175 — State net operating loss carryforward 670,997 — 665,934 — Unbilled receivables — 460,328 — 462,686 Property and equipment — 6,362,708 — 5,916,568 Unrealized gain on marketable securities — 297,964 — 220,746 Litigation deposit due from contractor — — 103,862 — Other 299,088 — 298,054 — $ 2,025,000 $ 7,121,000 $ 2,094,000 $ 6,600,000 Net deferred tax liability $ 5,096,000 $ 4,506,000 |
Components of deferred tax provision (benefit) | Components of the deferred tax provision (benefit) for the years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Tax depreciation exceeding book depreciation $ 446,551 $ (1,430,906 ) Federal net operating loss carryforward 11,053 1,000,360 State net operating loss carryforward (5,063 ) (665,934 ) Decrease (increase) of rental income received in advance (39,818 ) 65,999 (Decrease) in unbilled receivables (2,358 ) (198,154 ) Increase (decrease) in average rent payable (25,186 ) 81,230 Litigation deposit due from contractor 103,862 (8,930 ) Other 100,959 (97,665 ) $ 590,000 $ (1,254,000 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Schedule of rental expense | Rental expense for leased real property for each of the fiscal years ended July 31, 2019 and July 31, 2018 was exceeded by sublease rental income, as follows: 2019 2018 Minimum rental expense $ 1,985,695 $ 1,750,859 Contingent rental expense 1,164,632 1,034,762 3,150,327 2,785,621 Sublease rental income 7,126,437 6,901,958 Excess of sublease income over expense $ 3,976,110 $ 4,116,337 |
Schedule of future minimum non-cancelable rental commitments | Future minimum non-cancelable rental commitments for operating leases with initial or remaining terms of one year or more are payable as follows: Fiscal Year Operating 2020 $ 1,897,318 2021 1,941,494 2022 2,057,814 2023 2,072,000 2024 2,086,697 After 2024 11,701,293 Total required* $ 21,756,616 * Minimum payments have not been reduced by minimum sublease rentals of $37,501,850 under operating leases due in the future under non-cancelable leases. |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
RENTAL INCOME [Abstract] | |
Schedule of rental income | Rental income for each of the fiscal years 2019 and 2018 is as follows: July 31, 2019 2018 Minimum rentals Company owned property $ 12,448,374 $ 11,652,482 Leased property 6,677,998 6,502,219 19,126,372 18,154,701 Contingent rentals Company owned property 850,226 746,442 Leased property 448,241 399,739 1,298,467 1,146,181 Total $ 20,424,839 $ 19,300,882 |
Schedule of future minimum non-cancelable rental income | Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows: Fiscal Year Company Leased Total 2020 $ 10,038,712 $ 6,120,283 $ 16,158,995 2021 9,521,380 5,009,044 14,530,424 2022 7,878,165 4,039,069 11,917,234 2023 7,399,288 3,270,666 10,669,954 2024 6,483,940 2,987,050 9,470,990 After 2024 52,632,826 14,842,540 67,475,366 Total $ 93,954,311 $ 36,268,652 $ 130,222,963 |
PAYROLL AND OTHER ACCRUED LIA_2
PAYROLL AND OTHER ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of payroll and other accrued liabilities | Payroll and other accrued liabilities for the fiscal years ended July 31, 2019 and 2018 consist of the following: 2019 2018 Payroll $ 131,095 $ 259,149 Interest 16,152 16,666 Professional fees 155,600 140,000 Rents received in advance 783,678 644,728 Utilities 13,400 19,200 Brokers commissions 728,322 134,418 Construction costs 66,829 — Other 980,398 890,198 Total 2,875,474 2,104,359 Less current portion 2,426,535 2,104,359 Long term portion $ 448,939 $ — |
CASH FLOW INFORMATION (Tables)
CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash and cash equivalents and restricted 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, 2019 2018 Cash and cash equivalents $ 4,117,647 $ 5,255,073 Restricted cash, tenant security deposits 859,674 1,332,671 Restricted cash, escrow 258,563 258,399 Restricted cash, other 27,840 33,480 $ 5,263,724 $ 6,879,623 |
Schedule of cash flow information | Supplemental disclosures: July 31, 2019 2018 Interest paid, net of capitalized interest of $77,880 (2019), and $ 115,657 $ 211,092 Income taxes paid $ — $ 36,494 |
FINANCIAL INSTRUMENTS AND CRE_2
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial instruments | July 31, 2019 July 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Cash and cash equivalents $ 4,117,647 $ 4,117,647 $ 5,255,073 $ 5,255,073 Marketable securities $ 3,580,227 $ 3,580,227 $ 3,141,828 $ 3,141,828 Restricted cash $ 1,146,077 $ 1,146,077 $ 1,624,550 $ 1,624,550 Security deposits payable $ 882,615 $ 882,615 $ 1,343,671 $ 1,343,671 Mortgage $ 5,298,610 $ 5,298,610 $ 5,467,111 $ 4,939,149 |
DEFERRED CHARGES (Tables)
DEFERRED CHARGES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of deferred charges | Deferred charges for the fiscal years ended July 31, 2019 and 2018 consist of the following: July 31, 2019 July 31, 2018 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Leasing brokerage commissions $ 3,578,114 $ 1,076,694 $ 3,035,040 $ 1,264,427 Professional fees for leasing 151,704 77,302 193,122 105,018 Total $ 3,729,818 $ 1,153,996 $ 3,228,162 $ 1,369,445 |
Schedule of estimated aggregate amortization expense | The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: Fiscal Year Amortization 2020 $ 291,538 2021 $ 297,985 2022 $ 270,944 2023 $ 257,772 2024 $ 235,093 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | A summary of the changes in accumulated other comprehensive income for the fiscal years ended July 31, 2019, and 2018 are as follows: Years Ended July 31, 2019 2018 Beginning balance, net of tax effect $ 487,136 $ 368,476 Other comprehensive income, net of tax effect: Unrealized gains on available-for-sale securities — 265,080 Tax effect — (130,963 ) Unrealized gains on available-for-sale securities, net of tax effect — 134,117 Amounts reclassified from accumulated other comprehensive income, net of tax effect: Unrealized gain on marketable securities reclassified to retained earnings (800,136 ) (23,420 ) Tax effect 313,000 7,963 Amount reclassified, net of tax effect (487,136 ) (15,457 ) Ending balance, net of tax effect $ — $ 487,136 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Bad debt expense | $ 118,238 | $ 80,302 |
Weighted average number of shares outstanding, basic (in shares) | 2,015,780 | 2,015,780 |
Unrealized gain on marketable securities reclassified to retained earnings, net of tax effect | $ 487,136 | |
Reclassification of income taxes stranded in accumulated other comprehensive income (loss) to retained earnings | 92,000 | |
Right-of-use asset | 27,100,000 | |
Lease liability | $ 17,900,000 | |
Additional Lease term | Jul. 31, 2029 | |
Building and improvements net of accumulated depreciation | $ 10,200,000 | |
Minimum [Member] | ||
Deferred charges amortization period | 1 year | |
Maximum [Member] | ||
Deferred charges amortization period | 21 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of property and equipment depreciation and amortization period) (Details) | 12 Months Ended |
Jul. 31, 2019 | |
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_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of financial assets measured at fair value on recurring basis) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | $ 3,580,227 | $ 3,141,828 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | 3,580,227 | 3,141,828 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - available-for-sale |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of classified marketable securities) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value | $ 3,580,227 | $ 3,141,828 |
Noncurrent [Member] | ||
Fair Value | 3,580,227 | 3,141,828 |
Gross Unrealized Gains | 1,078,765 | 800,137 |
Gross Unrealized Losses | ||
Cost | 2,501,462 | 2,341,691 |
Noncurrent [Member] | Mutual Fund [Member] | ||
Fair Value | 1,109,731 | 1,011,751 |
Gross Unrealized Gains | 264,425 | 237,149 |
Gross Unrealized Losses | ||
Cost | 845,306 | 774,602 |
Noncurrent [Member] | Corporate Equity Securities [Member] | ||
Fair Value | 2,470,496 | 2,130,077 |
Gross Unrealized Gains | 814,340 | 562,988 |
Gross Unrealized Losses | ||
Cost | $ 1,656,156 | $ 1,567,089 |
MARKETABLE SECURITIES (Schedu_2
MARKETABLE SECURITIES (Schedule of investment income) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest income | $ 56,918 | $ 25,414 |
Dividend income | 105,687 | 86,354 |
Gain (loss) on sale of marketable securities | 46,415 | (805) |
Total | $ 209,020 | $ 110,963 |
LONG-TERM DEBT - MORTGAGE (Sche
LONG-TERM DEBT - MORTGAGE (Schedule of long-term debt) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jan. 09, 2015 | |
Less: Deferred financing costs | |||
Due After One Year, Total | $ 5,264,285 | ||
Bond St. Building Brooklyn, NY Two [Member] | |||
Mortgage: | |||
Due Within One Year | 5,298,610 | 168,501 | |
Due After One Year | 5,298,610 | ||
Less: Deferred financing costs | |||
Due Within One Year | 11,448 | ||
Due After One Year | 34,325 | ||
Due Within One Year, Total | 5,287,162 | 168,501 | |
Due After One Year, Total | $ 5,264,285 | ||
Current Annual Interest Rate | 3.54% | 3.54% | 3.54% |
Final Payment Date | Feb. 1, 2020 |
LONG-TERM DEBT - MORTGAGE (Narr
LONG-TERM DEBT - MORTGAGE (Narrative) (Details) - USD ($) | Jan. 09, 2015 | Jul. 31, 2019 | Jul. 31, 2018 |
Debt maturing in 2020 | $ 5,298,610 | ||
Carrying value of properties collateralizing debt | $ 22,294,746 | ||
Bond St. Building Brooklyn, NY Two [Member] | |||
Closed bank liabilities | $ 6,000,000 | ||
Additional loans | 652,274 | ||
Amount outstanding | $ 5,347,726 | ||
Term of loan | 5 years | ||
Amortization period of loan | 25 years | ||
Interest rate, percent | 3.54% | 3.54% | 3.54% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Operating loss carryforwards | |||
Period over which state capital-based tax will be phased out | 7 years | ||
Deferred tax expense | $ 587,000 | ||
Deferred tax liabilities | $ 5,096,000 | $ 4,506,000 | |
State deferred tax asset | 790,000 | ||
Deferred tax liabilities | 1,430,000 | ||
Deferred taxes unrealized gain (loss) on available-for-sale securities | $ 53,000 | ||
U.S. federal corporate income tax rate | 21.00% | 26.42% | |
Weighted average federal corporate tax rate | 26.42% | ||
Non-cash reduction to the value of net deferred tax liabilities | $ 2,400,000 | ||
Minimum [Member] | |||
U.S. federal corporate income tax rate | 21.00% | ||
Maximum [Member] | |||
U.S. federal corporate income tax rate | 34.00% | ||
State and Local Jurisdiction [Member] | |||
Operating loss carryforwards | $ 10,182,000 | 10,107,000 | $ 8,274,000 |
Domestic Tax Authority [Member] | |||
Operating loss carryforwards | $ 4,001,000 | $ 4,078,000 |
INCOME TAXES (Schedule of incom
INCOME TAXES (Schedule of income tax expense) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Current: | ||
Federal | $ 10,000 | |
Deferred taxes: | ||
Federal | 456,000 | (1,841,000) |
State | 134,000 | 587,000 |
Income tax provision | $ 590,000 | $ (1,244,000) |
INCOME TAXES (Schedule of effec
INCOME TAXES (Schedule of effective income tax rate reconciliation) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 2,104,801 | $ 1,730,141 |
Other-net | (17,397) | 2,443 |
Adjusted pre-tax income | $ 2,087,404 | $ 1,732,584 |
Statutory rate | 21.00% | 26.42% |
Income tax provision at statutory rate | $ 438,355 | $ 457,749 |
Remeasurement of federal deferred income taxes | (2,390,000) | |
State deferred income taxes | 134,000 | 587,000 |
Other-net | 17,645 | 101,251 |
Income tax provision | $ 590,000 | $ (1,244,000) |
INCOME TAXES (Schedule of defer
INCOME TAXES (Schedule of deferred tax assets and liabilities) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Deferred Tax Assets | ||
Rental income received in advance | $ 214,793 | $ 174,975 |
Federal net operating loss carryforward | 840,122 | 851,175 |
State net operating loss carryforward | 670,997 | 665,934 |
Litigation deposit due from contractor | 103,862 | |
Other | 299,088 | 298,054 |
Total | 2,025,000 | 2,094,000 |
Deferred Tax Liabilities | ||
State net operating loss carryforward | ||
Unbilled receivables | 460,328 | 462,686 |
Property and equipment | 6,362,708 | 5,916,568 |
Unrealized gain on marketable securities | 297,964 | 220,746 |
Total | 7,121,000 | 6,600,000 |
Net deferred tax liability | $ 5,096,000 | $ 4,506,000 |
INCOME TAXES (Components of def
INCOME TAXES (Components of deferred tax provision (benefit)) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Deferred tax provision (benefit) | $ 590,000 | $ (1,254,000) |
Tax Depreciation Exceeding Book Depreciation [Member] | ||
Deferred tax provision (benefit) | 446,551 | (1,430,906) |
Federal Net Operating Loss Carryforward [Member] | ||
Deferred tax provision (benefit) | 11,053 | 1,000,360 |
State net operating loss carryforward [Member] | ||
Deferred tax provision (benefit) | (5,063) | (665,934) |
Decrease (Increase) of Rental Income Received in Advance [Member] | ||
Deferred tax provision (benefit) | (39,818) | 65,999 |
(Decrease) In Unbilled Receivables [Member] | ||
Deferred tax provision (benefit) | (2,358) | (198,154) |
Increase (decrease) in average rent payable [Member] | ||
Deferred tax provision (benefit) | (25,186) | 81,230 |
Litigation Deposit Due From Contractor [Member] | ||
Deferred tax provision (benefit) | 103,862 | (8,930) |
Other Deferred Income Tax Expense [Member] | ||
Deferred tax provision (benefit) | $ 100,959 | $ (97,665) |
LEASES (Schedule of rental expe
LEASES (Schedule of rental expense) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Leases [Abstract] | ||
Minimum rental expense | $ 1,985,695 | $ 1,750,859 |
Contingent rental expense | 1,164,632 | 1,034,762 |
Operating leases rent expense minimum and contingent rentals | 3,150,327 | 2,785,621 |
Sublease rental income | 7,126,437 | 6,901,958 |
Excess of sublease income over expense | $ 3,976,110 | $ 4,116,337 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Rent expense | $ 987,250 | $ 987,250 |
Minimum sublease rentals | $ 37,501,850 | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating leases extended period | 3 years | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating leases extended period | 25 years |
LEASES (Schedule of future mini
LEASES (Schedule of future minimum non-cancelable rental commitments) (Details) | Jul. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,897,318 |
2021 | 1,941,494 |
2022 | 2,057,814 |
2023 | 2,072,000 |
2024 | 2,086,697 |
After 2024 | 11,701,293 |
Total required | $ 21,756,616 |
RENTAL INCOME (Schedule of rent
RENTAL INCOME (Schedule of rental income) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Minimum rentals | $ 19,126,372 | $ 18,154,701 |
Contingent rentals | 1,298,467 | 1,146,181 |
Total | 20,424,839 | 19,300,882 |
Company Owned Property [Member] | ||
Minimum rentals | 12,448,374 | 11,652,482 |
Contingent rentals | 850,226 | 746,442 |
Leased Property [Member] | ||
Minimum rentals | 6,677,998 | 6,502,219 |
Contingent rentals | $ 448,241 | $ 399,739 |
RENTAL INCOME (Schedule of futu
RENTAL INCOME (Schedule of future minimum non-cancelable rental income) (Details) | Jul. 31, 2019USD ($) |
2020 | $ 16,158,995 |
2021 | 14,530,424 |
2022 | 11,917,234 |
2023 | 10,669,954 |
2024 | 9,470,990 |
After 2024 | 67,475,366 |
Total | 130,222,963 |
Company Owned Property [Member] | |
2020 | 10,038,712 |
2021 | 9,521,380 |
2022 | 7,878,165 |
2023 | 7,399,288 |
2024 | 6,483,940 |
After 2024 | 52,632,826 |
Total | 93,954,311 |
Leased Property [Member] | |
2020 | 6,120,283 |
2021 | 5,009,044 |
2022 | 4,039,069 |
2023 | 3,270,666 |
2024 | 2,987,050 |
After 2024 | 14,842,540 |
Total | $ 36,268,652 |
PAYROLL AND OTHER ACCRUED LIA_3
PAYROLL AND OTHER ACCRUED LIABILITIES (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Payables and Accruals [Abstract] | ||
Payroll | $ 131,095 | $ 259,149 |
Interest | 16,152 | 16,666 |
Professional fees | 155,600 | 140,000 |
Rents received in advance | 783,678 | 644,728 |
Utilities | 13,400 | 19,200 |
Brokers commissions | 728,322 | 134,418 |
Construction costs | 66,829 | |
Other | 980,398 | 890,198 |
Total | 2,875,474 | 2,104,359 |
Less current portion | 2,426,535 | 2,104,359 |
Long term portion | $ 448,939 |
EMPLOYEES' RETIREMENT PLANS (De
EMPLOYEES' RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Pension contributions | $ 427,420 | $ 413,256 |
Employer contributions | $ 61,588 | $ 62,425 |
Minimum contribution rate | 9.10% |
CASH FLOW INFORMATION (Schedule
CASH FLOW INFORMATION (Schedule of cash and cash equivalents and restricted cash) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | $ 4,117,647 | $ 5,255,073 | |
Restricted cash, tenant security deposits | 859,674 | 1,332,671 | |
Restricted cash, escrow | 258,563 | 258,399 | |
Restricted cash, other | 27,840 | 33,480 | |
Cash flow information | $ 5,263,724 | $ 6,879,623 | $ 6,676,929 |
CASH FLOW INFORMATION (Schedu_2
CASH FLOW INFORMATION (Schedule of supplemental disclosure) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of capitalized interest of $77,880 (2019), and $37,471 (2018) | $ 115,657 | $ 211,092 |
Income taxes paid | 36,494 | |
Capitalized interest | $ 77,880 | $ 37,471 |
FINANCIAL INSTRUMENTS AND CRE_3
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Schedule of fair value of financial instruments) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 3,580,227 | $ 3,141,828 |
Restricted cash | 964,884 | 1,523,761 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 4,117,647 | 5,255,073 |
Marketable securities | 3,580,227 | 3,141,828 |
Restricted cash | 1,146,077 | 1,624,550 |
Security deposits payable | 882,615 | 1,343,671 |
Mortgage | 5,298,610 | 5,467,111 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 4,117,647 | 5,255,073 |
Marketable securities | 3,580,227 | 3,141,828 |
Restricted cash | 1,146,077 | 1,624,550 |
Security deposits payable | 882,615 | 1,343,671 |
Mortgage | $ 5,298,610 | $ 4,939,149 |
FINANCIAL INSTRUMENTS AND CRE_4
FINANCIAL INSTRUMENTS AND CREDIT RISK CONCENTRATIONS (Narrative) (Details) - tenants | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Concentration Risk [Line Items] | ||
Number of tenants | 50 | 50 |
Four Customers [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 68.80% | 77.70% |
Four Customers [Member] | Unbilled Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 68.44% | |
Three Customers [Member] | Unbilled Receivables [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 66.90% | |
Three Customers [Member] | Rental Income [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk | 44.40% | 44.60% |
DEFERRED CHARGES (Schedule of d
DEFERRED CHARGES (Schedule of deferred charges) (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Leasing Charges | ||
Deferred charges | $ 3,729,818 | $ 3,228,162 |
Less accumulated amortization | 1,153,996 | 1,369,445 |
Leasing Brokerage Commissions [Member] | ||
Leasing Charges | ||
Deferred charges | 3,578,114 | 3,035,040 |
Less accumulated amortization | 1,076,694 | 1,264,427 |
Professional Fees For Leasing [Member] | ||
Leasing Charges | ||
Deferred charges | 151,704 | 193,122 |
Less accumulated amortization | $ 77,302 | $ 105,018 |
DEFERRED CHARGES (Schedule of e
DEFERRED CHARGES (Schedule of estimated aggregate amortization expense) (Details) | Jul. 31, 2019USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2020 | $ 291,538 |
2021 | 297,985 |
2022 | 270,944 |
2023 | 257,772 |
2024 | $ 235,093 |
DEFERRED CHARGES (Narrative) (D
DEFERRED CHARGES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of deferred charges | $ 295,926 | $ 296,298 |
Weighted average life of current year additions to deferred charges | 12 years |
CAPITALIZATION (Details)
CAPITALIZATION (Details) - shares | Jul. 31, 2019 | Jul. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Treasury stock, shares | 162,517 | 162,517 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | ||
Beginning balance, net of tax effect | $ 487,136 | $ 368,476 |
Other comprehensive income, net of tax effect: | ||
Unrealized gains on available-for-sale securities | 265,080 | |
Tax effect | (130,963) | |
Unrealized gains on available-for-sale securities, net of tax effect | 134,117 | |
Amounts reclassified from accumulated other comprehensive income, net of tax effect: | ||
Unrealized gain on marketable securities reclassified to retained earnings | (800,136) | (23,420) |
Tax effect | 313,000 | 7,963 |
Amounts reclassified, net of tax effect | (487,136) | (15,457) |
Ending balance, net of tax effect | $ 487,136 |
ENTRY INTO A MATERIAL DEFINIT_2
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT (Details) - Thirty Three Bond Street Llc [Member] | Jun. 16, 2015USD ($) |
Related Party Transaction [Line Items] | |
Deferred revenue | $ 3,500,000 |
Tendered amount with execution of the Amendment | 2,250,000 |
Balance due | $ 1,250,000 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Nov. 06, 2018USD ($) |
Settled Litigation [Member] | |
Payment of litigation settlement | $ 635,000 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event [Member] | 1 Months Ended |
Sep. 18, 2019USD ($)ft² | |
Subsequent Event [Line Items] | |
Occupied area | 128,196 |
Surrendered area | 22,000 |
Surrender date | Aug. 31, 2019 |
Percentage of lease prior to surrender | 16.00% |
Annual loss of rent | $ | $ 965,000 |
REAL ESTATE AND ACCUMULATED D_2
REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 5,298,610 | |||
Initial Cost to Company | ||||
Land | 6,067,805 | |||
Building & Improvements | 22,948,066 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 67,317,239 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 6,067,805 | |||
Building & Improvements | 90,265,305 | |||
Total | $ 92,061,623 | $ 89,016,227 | 96,333,110 | $ 92,061,623 |
Accumulated Depreciation | 41,382,962 | 39,648,642 | 43,310,270 | 41,382,962 |
Property and Equipment | 96,641,721 | 92,411,787 | ||
Accumulated depreciation | 43,512,418 | $ 41,618,803 | ||
Investment in Real Estate | ||||
Balance at Beginning of Year | 92,061,623 | 89,016,227 | ||
Improvements | 4,271,487 | 3,045,396 | ||
Retirements | ||||
Balance at End of Year | 96,333,110 | 92,061,623 | ||
Accumulated Depreciation | ||||
Balance at Beginning of Year | 41,382,962 | 39,648,642 | ||
Additions Charged to Costs and Expenses | 1,927,308 | 1,734,320 | ||
Retirements | ||||
Balance at End of Year | $ 43,310,270 | $ 41,382,962 | ||
Buildings and Improvements [Member] | Minimum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 18 years | |||
Buildings and Improvements [Member] | Maximum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 40 years | |||
Improvements to leased property [Member] | Minimum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 3 years | |||
Improvements to leased property [Member] | Maximum [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Life on Which Depreciation in Latest Income Statement is Computed | 40 years | |||
Office Furniture and Equipment and Transportation Equipment [Member] | ||||
Gross Amount at Which Carried At Close of Period | ||||
Property and Equipment | 308,611 | |||
Accumulated depreciation | 202,148 | |||
Bond St. Building Brooklyn, NY Two [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 5,298,610 | |||
Initial Cost to Company | ||||
Land | 3,901,349 | |||
Building & Improvements | 7,403,468 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 24,705,476 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 3,901,349 | |||
Building & Improvements | 32,108,944 | |||
Total | $ 36,010,293 | 36,010,293 | ||
Accumulated Depreciation | 13,715,547 | 13,715,547 | ||
Investment in Real Estate | ||||
Balance at End of Year | 36,010,293 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 13,715,547 | |||
Jamaica, New York [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | ||||
Building & Improvements | 3,215,699 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 18,265,742 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | ||||
Building & Improvements | 21,481,441 | |||
Total | 21,481,441 | 21,481,441 | ||
Accumulated Depreciation | 11,494,356 | 11,494,356 | ||
Investment in Real Estate | ||||
Balance at End of Year | 21,481,441 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 11,494,356 | |||
Fishkill, New York Property [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 594,723 | |||
Building & Improvements | 7,212,116 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 7,975,313 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 594,723 | |||
Building & Improvements | 15,187,429 | |||
Total | 15,782,152 | 15,782,152 | ||
Accumulated Depreciation | 9,200,826 | 9,200,826 | ||
Investment in Real Estate | ||||
Balance at End of Year | 15,782,152 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 9,200,826 | |||
Brooklyn, New York, Jowein Building, Fulton Street and Elm Place Property [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 1,324,957 | |||
Building & Improvements | 728,327 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 16,284,188 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 1,324,957 | |||
Building & Improvements | 17,012,515 | |||
Total | 18,337,472 | 18,337,472 | ||
Accumulated Depreciation | 5,982,747 | 5,982,747 | ||
Investment in Real Estate | ||||
Balance at End of Year | 18,337,472 | |||
Accumulated Depreciation | ||||
Balance at End of Year | 5,982,747 | |||
Levittown, New York, Hempstead Turnpike [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 125,927 | |||
Building & Improvements | ||||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | ||||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 125,927 | |||
Building & Improvements | ||||
Total | 125,927 | 125,927 | ||
Accumulated Depreciation | ||||
Investment in Real Estate | ||||
Balance at End of Year | 125,927 | |||
Accumulated Depreciation | ||||
Balance at End of Year | ||||
Circleville, Ohio, Tarlton Road [Member] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | ||||
Initial Cost to Company | ||||
Land | 120,849 | |||
Building & Improvements | 4,388,456 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 86,520 | |||
Carried Cost | ||||
Gross Amount at Which Carried At Close of Period | ||||
Land | 120,849 | |||
Building & Improvements | 4,474,976 | |||
Total | 4,595,825 | 4,595,825 | ||
Accumulated Depreciation | 2,916,794 | $ 2,916,794 | ||
Investment in Real Estate | ||||
Balance at End of Year | 4,595,825 | |||
Accumulated Depreciation | ||||
Balance at End of Year | $ 2,916,794 |