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DOCUMENT AND ENTITY INFORMATION
6 Months Ended
Jan. 31, 2021
Mar. 04, 2021
Document And Entity Information [Abstract]
Entity Registrant Name MAYS J W INC
Entity Central Index Key 0000054187
Document Type 10-Q
Document Period End Date Jan 31, 2021
Document Fiscal Period Focus Q2
Amendment Flag false
Current Fiscal Year End Date --07-31
Entity Filer Category Non-accelerated Filer
Entity Small Business true
Entity Emerging Growth Company false
Document Fiscal Year Focus 2021
Entity Common Stock, Shares Outstanding 2,015,780
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Shell Company false
Entity Incorporation State Country Code NY
Entity File Number 11-1059070
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Property and Equipment-at cost:
Land $ 6,067,805 $ 6,067,805
Buildings held for leasing:
Buildings, improvements and fixtures 74,407,667 73,271,398
Construction in progress 1,624,601 1,266,723
Property, Plant and Equipment, Gross 76,032,268 74,538,121
Accumulated depreciation (33,897,432) (33,007,989)
Buildings - net 42,134,836 41,530,132
Property and equipment-net 48,202,641 47,597,937
Cash and cash equivalents 1,493,124 3,260,135
Restricted cash 912,966 1,143,666
Receivables, net 2,671,780 2,219,946
Marketable securities 3,924,076 3,744,905
Prepaids and other assets 2,247,474 2,389,582
Deferred charges, net 3,932,010 2,986,648
Operating lease right-of-use assets 35,826,496 37,077,038
TOTAL ASSETS 99,210,567 100,419,857
Liabilities:
Mortgages payable, net 8,080,454 8,627,965
Note payable 722,726 722,726
Accounts payable and accrued expenses 3,291,026 2,771,540
Security deposits payable 869,652 809,652
Operating lease liabilities 28,470,232 29,044,966
Deferred income taxes 4,544,000 4,741,000
Total liabilities 45,978,090 46,717,849
Common stock, par value $1 each share (shares-5,000,000 authorized; 2,178,297 issued) 2,178,297 2,178,297
Additional paid in capital 3,346,245 3,346,245
Retained earnings 48,995,787 49,465,318
Stockholders' Equity before Treasury Stock 54,520,329 54,989,860
Shareholders' Equity:
Common stock held in treasury, at cost - 162,517 shares at January 31, 2021 and July 31, 2020 (1,287,852) (1,287,852)
Total shareholders' equity 53,232,477 53,702,008
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 99,210,567 $ 100,419,857
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value $ 1 $ 1
Common stock, shares authorized 5,000,000 5,000,000
Common stock, shares issued 2,178,297 2,178,297
Treasury stock, shares 162,517 162,517
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Revenues
Rental income $ 5,046,867 $ 5,039,060 $ 9,881,861 $ 10,074,975
Total revenues 5,046,867 5,039,060 9,881,861 10,074,975
Expenses
Real estate operating expenses 3,585,546 3,568,752 7,168,163 6,817,346
Administrative and general expenses 1,343,669 1,311,011 2,513,192 2,526,646
Depreciation 445,504 394,977 889,443 782,387
Total expenses 5,374,719 5,274,740 10,570,798 10,126,379
Loss from operations (327,852) (235,680) (688,937) (51,404)
Investment income and interest expense:
Investment income 76,935 75,915 166,161 140,918
Change in fair value of marketable securities 238,969 82,536 24,015 63,250
Interest expense (82,159) (27,052) (167,770) (54,501)
Total investment income and interest expense 233,745 131,399 22,406 149,667
Income (loss) before income taxes (94,107) (104,281) (666,531) 98,263
Income taxes (benefit) (40,000) (47,000) (197,000) 27,000
Net income (loss) $ (54,107) $ (57,281) $ (469,531) $ 71,263
Income (loss) per common share, basic and diluted $ (0.02) $ (0.02) $ (0.23) $ 0.04
Average common shares outstanding, basic and diluted 2,015,780 2,015,780 2,015,780 2,015,780
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (USD $)
Common Stock
Additional Paid In Capital
Retained Earnings
Common Stock Held in Treasury
Total
Balance at Jul. 31, 2019 $ 2,178,297 $ 3,346,245 $ 50,371,323 $ (1,287,852) $ 54,608,013
Net income (loss)       71,263    71,263
Balance at Jan. 31, 2020 2,178,297 3,346,245 50,442,586 (1,287,852) 54,679,276
Balance at Oct. 31, 2019 2,178,297 3,346,245 50,499,867 (1,287,852) 54,736,557
Net income (loss)       (57,281)    (57,281)
Balance at Jan. 31, 2020 2,178,297 3,346,245 50,442,586 (1,287,852) 54,679,276
Balance at Jul. 31, 2020 2,178,297 3,346,245 49,465,318 (1,287,852) 53,702,008
Net income (loss)       (469,531)    (469,531)
Balance at Jan. 31, 2021 2,178,297 3,346,245 48,995,787 (1,287,852) 53,232,477
Balance at Oct. 31, 2020 2,178,297 3,346,245 49,049,894 (1,287,852) 53,286,584
Net income (loss)       (54,107)    (54,107)
Balance at Jan. 31, 2021 $ 2,178,297 $ 3,346,245 $ 48,995,787 $ (1,287,852) $ 53,232,477
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Cash Flows From Operating Activities:
Net income (loss) $ (469,531) $ 71,263
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Bad debt expense 74,000 40,292
Provision (Benefit) for deferred income taxes (197,000) 27,000
Disposition of property and equipment    54,121
Depreciation 889,443 782,387
Amortization of deferred charges 193,200 139,600
Operating lease expense in excess of cash payments 675,808 559,248
Deferred finance costs included in interest expense 19,056 15,401
Deferred Charges (1,138,562)   
Net realized and unrealized (gain) on marketable securities (107,190) (110,231)
Changes in:
Receivables (525,834) 41,003
Prepaid expenses and other assets 142,108 58,945
Accounts payable and accrued expenses 519,486 767,183
Security deposits payable 60,000 (58,452)
Cash provided by operating activities 134,984 2,387,760
Cash Flows From Investing Activities:
Property and equipment costs (1,494,147) (3,419,989)
Marketable securities:
Receipts from sales 494,990 447,236
Payments for purchases (566,971) (527,048)
Cash used in investing activities (1,566,128) (3,499,801)
Cash Flows From Financing Activities:
Proceeds from borrowing - mortgage    144,080
Payments - mortgage and other debt (566,567) (122,872)
Mortgage financing cost paid    (118,571)
Cash used in financing activities (566,567) (97,363)
Decrease in cash, cash equivalents and restricted cash (1,997,711) (1,209,404)
Cash, cash equivalents and restricted cash at beginning of period 4,403,801 5,263,724
Cash, cash equivalents and restricted cash at end of period $ 2,406,090 $ 4,054,320
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The Impact of COVID-19 on our Results and Operations
6 Months Ended
Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Impact of COVID-19 on our Results and Operations
1. The Impact of COVID-19 on our Results and Operations:
          

In late 2019, an outbreak of COVID-19 emerged and by March 11, 2020 was declared a global pandemic by The World Health Organization. Throughout the United States and locally, governments and municipalities instituted measures to control the spread of COVID-19, including quarantines, shelter-in-place orders, school closings, travel restrictions and the closure of non-essential businesses. By the end of March 2020, the economic impacts became significant for the remainder of the year ended July 31, 2020.

Beginning in March and continuing through January 2021, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from government mandated business disruptions and shelter -in-place orders. The effects of COVID-19 on our tenants have been reflected in our allowance for credit losses for accounts receivable. We continue to experience volatility in the valuation of our equity investments through January 31, 2021.

Looking ahead, the full impact of COVID-19 on our business is unknown and highly unpredictable. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the pandemic continues to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; treatment and prevention; and the macroeconomic impact of government measures to contain the spread of the virus and related government stimulus measures.

Basis of Presentation

The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions.

The interim financial statements are prepared pursuant to the instructions for reporting on Form 10-Q and Article 8 of Regulations S-X of the SEC Rules and Regulations. The July 31, 2020 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes included in the Company's latest Form 10-KA Annual Report for the fiscal year ended July 31, 2020. In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. The results of operations for the current period are not necessarily indicative of the results for the entire fiscal year ending July 31, 2021 or any other period.

As of January 31, 2021, the impact of COVID-19 continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and as additional information becomes available, our estimates may change materially in future periods.

Restricted Cash

Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements.

Accounts Receivable

Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers past due status and a tenant’s payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment as of January 31, 2021 considered business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods.

As of January 31, 2021 and July 31, 2020, and primarily because of the effects of COVID-19, the Company recorded an allowance for uncollectible receivables in the amount of $156,000 and $82,000, respectively, as an offset to receivables.

Activity in the allowance for uncollectible receivables for each period follows:

Allowance for
Uncollectible
           Accounts Receivable Bad Debt Expense
Period Ended Three Months Ended Six Months Ended
   January 31    July 31    January 31 January 31
2021 2020 2021    2020    2021    2020
Beginning balance $ 82,000 $ $ $ $ $
Charge-offs 92,000 423,232 92,000   40,292 92,000    40,292
Recoveries (18,000 ) (91,840 )   (18,000 )
Rent Abatements reclassified to reduce rental income    (249,392 )
Ending Balance $ 156,000   $ 82,000 $ 92,000 $ 40,292 $ 74,000 $ 40,292

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows:

           Buildings and improvements         18-40 years
  Improvements to leased property 3-10 years
  Fixtures and equipment 7-12 years
  Other 3-5 years

Maintenance, repairs, renewals, and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life.

Company renovations at its Fishkill, NY building aggregated $823,234 and $2,397,216 for the six months ended January 31, 2021 and 2020, respectively, primarily related to tenant improvements for space leased to a community college, new elevators, lobbies, and a façade.

New tenant improvements for the six months ended January 31, 2021 were $358,042 at the Company's Jowein building in Brooklyn, NY. New tenant improvements for the six months ended January 31, 2020 at the Company's Jamaica building were $291,545.

Stairwell and sidewalk upgrades at the Company's Jamaica, NY building aggregated $290,976 for the six months ended January 31, 2021. Elevator upgrades aggregated $289,699 for the six months ended January 31, 2020 at the Company's 9 Bond building in Brooklyn, NY.

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 January 31, 2021 and July 31, 2020, 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 4 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed.

Leases - Lessor Revenue Recognition

Property held for leasing in the Company’s real estate rental operations is disclosed in the condensed consolidated balance sheets. 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 are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, 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. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned.

Leases - Lessee

The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets, and operating lease liabilities on the Company’s balance sheet.

Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Taxes

The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected operating income for the year and future periods, projections of the proportion of income (or loss), and permanent and temporary differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, or as additional information is obtained. The evolving facts and circumstances surrounding COVID-19 could result in the application of different provisions of tax laws and cause our estimated annual effective tax rate to change significantly through the remainder of the year. To the extent the estimated annual effective tax rate changes during a quarter, the effect of the change on prior quarters is included in tax expense for the current quarter.

The Company had a federal net operating loss carryforward approximating $8,409,803 as of July 31, 2020 available to offset future taxable income. As of July 31, 2020, the Company had unused state and city net operating loss carryforwards of approximately $10,463,612 for state and $8,428,574 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.

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. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes.

Reclassification:

The condensed consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the six months ended January 31, 2021. These reclassifications have no effect on net income or loss as previously reported. As of July 31, 2020, the Company changed its balance sheet presentation from classified to unclassified to more generally conform with norms in the real estate industry. Many of the prior year reclassifications relate to this change in presentation.

Recently adopted accounting standards:

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, and (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 were adopted by the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company elected the following practical expedients:

1. The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings.
2. As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard.

As a result of the adoption of the new lease accounting guidance, the Company recognized on August 1, 2019:

Operating lease right-of-use assets of $27.1 million.
Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Company’s incremental borrowing rate of 3.88%.
The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). Upon lease termination in 2030, the building and all improvements will be turned over to the landlord as property owner.
The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million.
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). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Company’s lease revenue as lessor were not significant.

In April 2020, the FASB issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (“ASC 842”). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent abatements would be recognized as reductions to revenue during the period in which they were granted. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy for the year ended July 31, 2020. Rent abatements and deferrals resulting from COVID-19 aggregated $433,517 and $459,429, respectively, for the year ended July 31, 2020. Rent abatements during the three and six months ended January 31, 2021 were $9,487. Deferrals of $125,000 resulted from COVID-19 during the three and six months ended January 31, 2021.

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Income Per Share of Common Stock
6 Months Ended
Jan. 31, 2021
Earnings Per Share [Abstract]
Income Per Share of Common Stock
2. Income Per Share of Common Stock:
          

Income per share has been computed by dividing the net income for the periods by the weighted average number of shares of common stock outstanding during the periods, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 for the six and three months ended January 31, 2021 and January 31, 2020.

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Marketable Securities
6 Months Ended
Jan. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Marketable Securities
3. Marketable Securities:
            

The Company’s marketable securities consist of investments in equity securities. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The changes in the fair value of these securities are recognized in current period earnings in accordance with ASC 825.

The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority:

Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange).

Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active).

Level 3 valuation inputs are unobservable (e.g., an entity’s own data) and should be used to measure fair value to the extent that observable inputs are not available.

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at January 31, 2021 and July 31, 2020.

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 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.

Fair value measurements at reporting date

Total Total
January 31, July 31,
Description     2021     Level 1     Level 2     Level 3     2020     Level 1     Level 2     Level 3
Assets:
Marketable securities $   3,924,076 $   3,924,076 $      – $      – $   3,744,905 $   3,744,905 $      – $      –

As of January 31, 2021 and July 31, 2020, the Company's marketable securities were classified as follows:

January 31, 2021 July 31, 2020
Gross Gross Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Fair
      Cost       Gains       Losses       Value       Cost       Gains       Losses       Value
Noncurrent:
Mutual funds $ 1,457,778 $ 403,275 $ 4,696 $      1,856,357 $ 1,077,493 $ 297,064 $      – $      1,374,557
Equity securities 1,328,147 739,572 2,067,719 1,553,275 823,010 5,937 2,370,348
$      2,785,925 $    1,142,847 $      4,696 $ 3,924,076 $      2,630,768 $      1,120,074 $ 5,937 $ 3,744,905

Investment income consists of the following:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Interest income $      67 $      2,772 294 13,050
Dividend income       76,868       73,143       82,691       80,887
Gain on sale of marketable securities 83,176 46,981
Total $      76,935 $      75,915 $    166,161 $      140,918
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Financial Instruments and Credit Risk Concentrations
6 Months Ended
Jan. 31, 2021
Fair Value Disclosures [Abstract]
Financial Instruments and Credit Risk Concentrations
4. Financial Instruments and Credit Risk Concentrations:
          
Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, restricted cash, cash and cash equivalents, and receivables. Marketable securities, restricted cash, cash, and cash equivalents are placed with multiple financial institutions and instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk.

As of January 31, 2021, seven tenants accounted for approximately 61% of receivables. As of July 31, 2020, four tenants accounted for approximately 55% of receivables. During the six months ended January 31, 2021, two tenants accounted for 30% of total rental revenue. During the six months ended January 31, 2020, three tenants accounted for 43% of total rental revenue.

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Long-Term Debt - Mortgages
6 Months Ended
Jan. 31, 2021
Debt Disclosure [Abstract]
Long-Term Debt - Mortgages
5. Long-Term Debt – Mortgages:
          
           Current
Annual Final
Interest Payment January 31, July 31,
      Rate       Date       2021       2020
(1) Bond St. building, Brooklyn, NY 4.375% 12/1/2024 $ 4,330,054 $ 4,829,832
(2) Fishkill building 3.980% 4/1/2025 3,900,311 3,967,100
Deferred financing costs (149,911 ) (168,967 )
Net $          8,080,454 $      8,627,965  
   

(1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York.

(2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years.

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Note Payable
6 Months Ended
Jan. 31, 2021
Debt Disclosure [Abstract]
Note Payable
6.

Note Payable:

 

In April 2020, the Company obtained a $722,726 loan, with an interest rate of .98% per annum, issued by a bank through the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) under Division A. Title I of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). PPP provides forgiveness of loan proceeds used for qualified and documented payroll costs, mortgage interest payments, rent payments and utilities, if less than 40% of such proceeds are used for non-payroll costs. PPP loan payments are deferred until the SBA remits the Company’s loan forgiveness to the lender.

The Company applied for 100% loan forgiveness as soon as lender application forms became available in January, 2021. After the SBA remits the Company’s loan forgiveness to the lender, such proceeds aggregating $722,726 expected in the year ending July 31, 2021 will be recorded as a reduction of the note payable and extinguishment of debt income.

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Operating Leases
6 Months Ended
Jan. 31, 2021
Leases [Abstract]
Operating Leases
7.

Operating Leases:

            

Lessor

The Company leases office and retail space to tenants under operating leases in commercial buildings. The rental terms range from approximately 5 to 49 years. The leases provide for the payment of fixed base rent payable monthly in advance as well as reimbursements of real estate taxes and common area costs. The Company has elected to account for lease revenues and the reimbursements of common area costs as a single component included as rental income in our condensed consolidated statements of operations.

The following table disaggregates the Company's revenues by lease and non-lease components:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Base rent - fixed $      4,629,553 $      4,515,930 $      9,062,131 $      9,052,029
Reimbursements of common area costs       152,164       163,775       306,695       313,435
Non-lease components (real estate taxes) 265,150 359,355 513,035 709,511
Rental income $      5,046,867 $      5,039,060 $ 9,881,861 $      10,074,975
 
Future minimum non-cancelable rental income for leases with initial or remaining terms of one year or more is as follows:
            
As of January 31, 2021
Company
Owned
Leased
Fiscal Year       Property       Property       Total
For the remainder of 2021 $ 5,358,155 $ 2,768,597 $ 8,126,752
2022 10,111,752 3,998,024 14,109,776
2023 9,349,055 3,229,623 12,578,678
2024 7,537,962 2,946,006 10,483,968
2025 7,169,666 2,560,604 9,730,270
2026 5,152,745 1,932,534 7,085,279
After 2026 33,156,557 7,738,817 40,895,374
Total $      77,835,892 $      25,174,205 $      103,010,097

 

Lessee

The Company’s real estate operations include leased properties under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2073, including options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements.

Effective April 1, 2020, four of the Company’s property leases were extended. The effect of these lease extensions on the measurement of operating lease right-of-use assets, liabilities and rent expense follows:

 
                 Operating Lease       Operating       Monthly Rent
Right-of-Use-Asset Lease Liability Expense
Upon initial adoption, August 1, 2019 $ 27,104,937 $ 16,728,284 $ 235,350
After various lease extensions through April 30, 2020 $ 37,698,819 $ 29,326,365 $ 277,570

Operating lease costs for leased real property was exceeded by sublease rental income from the Company’s real estate operations as follows:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Sublease income $     1,740,248 $      1,766,609 $      3,468,281 $      3,521,861
Operating lease cost       (832,707 )       (760,191 )       (1,665,420 )       (1,510,057 )
Excess of sublease income over lease cost $ 907,541 $      1,006,418 $      1,802,861 $      2,011,804

As of January 31, 2021, our operating leases had a weighted average remaining lease term of 17.71 years and a weighted average discount rate of 2.88%.

Three Months Ended Six Months Ended
    January 31   January 31
Other information:       2021       2020       2021       2020
Operating cash flows from operating leases $     497,281 $      492,332 $      989,613 $      950,809

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of January 31, 2021:
            
January 31, 2022 $ 2,089,683
January 31, 2023 2,124,546
January 31, 2024 2,141,424
January 31, 2025 2,158,823
January 31, 2026 2,181,170
Thereafter 26,456,772
Total undiscounted cash flows 37,152,418
Less: present value discount (8,682,186 )
Total Lease Liabilities $ 28,470,232
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Employees' Retirement Plan
6 Months Ended
Jan. 31, 2021
Retirement Benefits [Abstract]
Employees' Retirement Plan
8. Employees' Retirement Plan:

 

The Company sponsors a noncontributory Money Purchase Plan covering substantially all its non-union employees. Operations were charged $109,915 and $219,983 as contributions to the Plan for the three and six months ended January 31, 2021, respectively, and $146,183 and $247,586 as contributions to the plan for the three and six months ended January 31, 2020, 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 were $16,875 and $30,573 for the three and six months ended January 31, 2021, respectively, and $14,807 and $31,820 for the three and six months ended January 31, 2020, 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 Plan:

Information as to the Company’s portion of accumulated plan benefits and plan assets is not reported separately by the pension plan. Under the Employee Retirement Income Security Act, upon withdrawal from a multi-employer benefit plan, an employer is required to continue to pay its proportionate share of the plan’s unfunded vested benefits, if any. Any liability under this provision cannot be determined: however, the Company has not made a decision to withdraw from the plan.

           Information for contributing employer’s participation in the multi-employer plan:

                 Legal name of Plan:       United Food and Commercial
Workers Local 888 Pension Fund
Employer identification number: 13-6367793
Plan number: 001
Date of most recent Form 5500: December 31, 2019
Certified zone status: Critical and declining status
Status determination date: January 1, 2019
Plan used extended amortization provisions in status
calculation:
Yes
Minimum required contribution: Yes
Employer contributing greater than 5% of Plan
contributions for year ended December 31, 2019:
Yes
Rehabilitation plan implemented: Yes
Employer subject to surcharge: Yes
Contract expiration date: November 30, 2022

For the plan years 2019-2022, 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, 2022, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 21% of its employees. The Company considers that its labor relations with its employees and union are good.
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Cash Flow Information
6 Months Ended
Jan. 31, 2021
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:


           January 31
      2021       2020
Cash and cash equivalents $ 1,493,124 $ 3,146,214
Restricted cash, tenant security deposits 814,152 808,663
Restricted cash, escrow 71,674 71,603
Restricted cash, other 27,140 27,840
$      2,406,090 $      4,054,320


           Amounts in restricted cash primarily consist of cash held in bank accounts for tenant security deposits, amounts set aside in accordance with certain loan agreements, and security deposits with landlords and utility companies.

           Supplemental disclosure:       Six Months Ended
January 31
2021       2020
Cash Flow Information
Interest paid, net of capitalized interest of $34,390 (2021) and $64,759 (2020) $      147,196 $ 35,210
Income taxes (refunded) (23,040) (23,041)
               
Non-cash information
Recognition of operating lease right-of-use assets $      29,384,531
Recognition of operating lease liabilities 20,143,101
  Mortgage refinance           5,255,920
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Capitalization
6 Months Ended
Jan. 31, 2021
Stockholders' Equity Note [Abstract]
Capitalization
10.

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 January 31, 2021 and at July 31, 2020.

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Related Party Transactions
6 Months Ended
Jan. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions
11.

Related Party Transactions:

The Company has two operating leases with Weinstein Enterprises, Inc. (“Landlord”), an affiliated company, principally owned by the Chairman of the Board of Directors of both the Company and Landlord. One lease is for building, improvements, and land (“Premises”) located at Jamaica Avenue at 169th Street, Jamaica, New York. Another lease is for Premises located at 504-506 Fulton Street, Brooklyn, New York.

Rent payments and expense relating to these two operating leases with Landlord follow:


               Rent Payments Rent Payments Rent Expense Rent Expense
Three Months Ended Six Months Ended Three Months Ended Six Months Ended
January 31 January 31 January 31 January 31
Property 2021     2020     2021     2020     2021 2020 2021 2020
Jamaica Avenue at 169th Street $    156,250 $    156,250 $    312,500 $    312,500 $    379,359     $    403,698     $    758,719     $    807,397
504-506 Fulton Street 90,564 90,564 181,128 181,128 87,609 87,609 175,219 175,219
Total $ 246,814 $ 246,814 $    493,628 $    493,628 $    466,968 $    491,307 $    933,938 $    982,616
 
The following summarizes assets and liabilities related to these two operating leases:
                                    
Right-Of-Use
Assets Liabilities
January 31 July 31 January 31 July 31
Property 2021       2020 2021 2020 Expiration Date
Jamaica Avenue at 169th Street $ 13,884,813 $ 14,230,659 $ 5,332,291 $ 5,455,029 May 31, 2030
504-506 Fulton Street 3,006,118 3,063,268 3,130,149 3,190,253 April 30, 2031
Total $      16,890,931 $      17,293,927 $      8,462,440 $      8,645,282

           Upon termination of the Jamaica, New York lease in 2030, all premises included in operating lease right-of-use assets plus leasehold improvements will be turned over to the Landlord.
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Contingencies
6 Months Ended
Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies
12. Contingencies:
          

There are various 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 has not been determined at this time.

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The Impact of COVID-19 on our Results and Operations (Policies)
6 Months Ended
Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Impact of COVID-19 on our Results and Operations
The Impact of COVID-19 on our Results and Operations:
          

In late 2019, an outbreak of COVID-19 emerged and by March 11, 2020 was declared a global pandemic by The World Health Organization. Throughout the United States and locally, governments and municipalities instituted measures to control the spread of COVID-19, including quarantines, shelter-in-place orders, school closings, travel restrictions and the closure of non-essential businesses. By the end of March 2020, the economic impacts became significant for the remainder of the year ended July 31, 2020.

Beginning in March and continuing through January 2021, we experienced an increase in late payments due to the impact of COVID-19 and the related reductions in economic activity from government mandated business disruptions and shelter -in-place orders. The effects of COVID-19 on our tenants have been reflected in our allowance for credit losses for accounts receivable. We continue to experience volatility in the valuation of our equity investments through January 31, 2021.

Looking ahead, the full impact of COVID-19 on our business is unknown and highly unpredictable. Our past results may not be indicative of our future performance and historical trends in revenues, income from operations, net income, earnings per share, cash provided by operating activities, among others, may differ materially. For example, to the extent the pandemic continues to disrupt economic activity nationally and in New York, NY, like other businesses, it could adversely affect our business operations and financial results through prolonged decreases in revenue, credit deterioration of our tenants, depressed economic activity, or declines in capital markets. In addition, many of our expenses are less variable in nature and may not correlate to changes in revenues. The extent of the impact will depend on a number of factors, including the duration and severity of the pandemic; treatment and prevention; and the macroeconomic impact of government measures to contain the spread of the virus and related government stimulus measures.

Basis of Presentation

Basis of Presentation

The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions.

The interim financial statements are prepared pursuant to the instructions for reporting on Form 10-Q and Article 8 of Regulations S-X of the SEC Rules and Regulations. The July 31, 2020 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. The interim financial statements and notes thereto should be read in conjunction with the financial statements and notes included in the Company's latest Form 10-KA Annual Report for the fiscal year ended July 31, 2020. In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. The results of operations for the current period are not necessarily indicative of the results for the entire fiscal year ending July 31, 2021 or any other period.

As of January 31, 2021, the impact of COVID-19 continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and as additional information becomes available, our estimates may change materially in future periods.

Restricted Cash

Restricted Cash

Restricted cash primarily consists of cash held in bank accounts for tenant security deposits and other amounts required under certain loan agreements.

Accounts Receivable

Accounts Receivable

Generally, rent is due from tenants at the beginning of the month in accordance with terms of each lease. Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectibility become known. Collectibility issues include late rent payments, circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Management also assesses collectibility by reviewing accounts receivable on an aggregate basis where similar characteristics exist. In determining the amount of the allowance for credit losses, the Company considers past due status and a tenant’s payment history. We also consider current market conditions and reasonable and supportable forecasts of future economic conditions. Our assessment as of January 31, 2021 considered business and market disruptions caused by COVID-19. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for uncollectible accounts receivables in future periods.

As of January 31, 2021 and July 31, 2020, and primarily because of the effects of COVID-19, the Company recorded an allowance for uncollectible receivables in the amount of $156,000 and $82,000, respectively, as an offset to receivables.

Activity in the allowance for uncollectible receivables for each period follows:

Allowance for
Uncollectible
           Accounts Receivable Bad Debt Expense
Period Ended Three Months Ended Six Months Ended
   January 31    July 31    January 31 January 31
2021 2020 2021    2020    2021    2020
Beginning balance $ 82,000 $ $ $ $ $
Charge-offs 92,000 423,232 92,000   40,292 92,000    40,292
Recoveries (18,000 ) (91,840 )   (18,000 )
Rent Abatements reclassified to reduce rental income    (249,392 )
Ending Balance $ 156,000   $ 82,000 $ 92,000 $ 40,292 $ 74,000 $ 40,292
Property and Equipment

Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows:

           Buildings and improvements         18-40 years
  Improvements to leased property 3-10 years
  Fixtures and equipment 7-12 years
  Other 3-5 years

Maintenance, repairs, renewals, and improvements of a non-permanent nature are charged to expense when incurred. Expenditures for additions and major renewals or improvements are capitalized along with the associated interest cost during construction. The cost of assets sold or retired, and the accumulated depreciation or amortization thereon are eliminated from the respective accounts in the year of disposal, and the resulting gain or loss is credited or charged to income. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life.

Company renovations at its Fishkill, NY building aggregated $823,234 and $2,397,216 for the six months ended January 31, 2021 and 2020, respectively, primarily related to tenant improvements for space leased to a community college, new elevators, lobbies, and a façade.

New tenant improvements for the six months ended January 31, 2021 were $358,042 at the Company's Jowein building in Brooklyn, NY. New tenant improvements for the six months ended January 31, 2020 at the Company's Jamaica building were $291,545.

Stairwell and sidewalk upgrades at the Company's Jamaica, NY building aggregated $290,976 for the six months ended January 31, 2021. Elevator upgrades aggregated $289,699 for the six months ended January 31, 2020 at the Company's 9 Bond building in Brooklyn, NY.

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 January 31, 2021 and July 31, 2020, 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 4 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed.

Leases - Lessor Revenue Recognition

Leases - Lessor Revenue Recognition

Property held for leasing in the Company’s real estate rental operations is disclosed in the condensed consolidated balance sheets. 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 are included in accounts receivable and represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, 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. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned.

Leases - Lessee

Leases - Lessee

The Company determines if an arrangement is a lease at inception. With the adoption of ASC 842, operating leases are included in operating lease right-of-use assets, and operating lease liabilities on the Company’s balance sheet.

Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Taxes

Taxes

The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected operating income for the year and future periods, projections of the proportion of income (or loss), and permanent and temporary differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, or as additional information is obtained. The evolving facts and circumstances surrounding COVID-19 could result in the application of different provisions of tax laws and cause our estimated annual effective tax rate to change significantly through the remainder of the year. To the extent the estimated annual effective tax rate changes during a quarter, the effect of the change on prior quarters is included in tax expense for the current quarter.

The Company had a federal net operating loss carryforward approximating $8,409,803 as of July 31, 2020 available to offset future taxable income. As of July 31, 2020, the Company had unused state and city net operating loss carryforwards of approximately $10,463,612 for state and $8,428,574 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.

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. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes.

Reclassification

Reclassification:

The condensed consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the six months ended January 31, 2021. These reclassifications have no effect on net income or loss as previously reported. As of July 31, 2020, the Company changed its balance sheet presentation from classified to unclassified to more generally conform with norms in the real estate industry. Many of the prior year reclassifications relate to this change in presentation.

Recently adopted accounting standards

Recently adopted accounting standards:

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, and (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 were adopted by the Company for the fiscal year beginning August 1, 2019. Upon adoption of Topic 842, the Company elected the following practical expedients:

1. The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings.
2. As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard.

As a result of the adoption of the new lease accounting guidance, the Company recognized on August 1, 2019:

Operating lease right-of-use assets of $27.1 million.
Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Company’s incremental borrowing rate of 3.88%.
The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). Upon lease termination in 2030, the building and all improvements will be turned over to the landlord as property owner.
The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million.
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). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Company’s lease revenue as lessor were not significant.

In April 2020, the FASB issued a Staff Q&A on accounting for leases during the COVID-19 pandemic, focused on the application of lease guidance in ASC Topic 842, Leases (“ASC 842”). The Q&A states that it would be acceptable to make a policy election regarding rent concessions resulting from COVID-19, which would not require entities to account for these rent concessions as lease modifications under certain conditions. Entities making the election will continue to recognize rental revenue on a straight-line basis for qualifying concessions. Rent abatements would be recognized as reductions to revenue during the period in which they were granted. Rent deferrals would result in an increase to accounts receivable during the deferral period with no impact on rental revenue recognition. The Company elected this policy for the year ended July 31, 2020. Rent abatements and deferrals resulting from COVID-19 aggregated $433,517 and $459,429, respectively, for the year ended July 31, 2020. Rent abatements during the three and six months ended January 31, 2021 were $9,487. Deferrals of $125,000 resulted from COVID-19 during the three and six months ended January 31, 2021.

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The Impact of COVID-19 on our Results and Operations (Tables)
6 Months Ended
Jan. 31, 2021
Accounting Policies [Abstract]
Schedule of Allowance for Uncollectible Receivables

Activity in the allowance for uncollectible receivables for each period follows:

Allowance for
Uncollectible
           Accounts Receivable Bad Debt Expense
Period Ended Three Months Ended Six Months Ended
   January 31    July 31    January 31 January 31
2021 2020 2021    2020    2021    2020
Beginning balance $ 82,000 $ $ $ $ $
Charge-offs 92,000 423,232 92,000   40,292 92,000    40,292
Recoveries (18,000 ) (91,840 )   (18,000 )
Rent Abatements reclassified to reduce rental income    (249,392 )
Ending Balance $ 156,000   $ 82,000 $ 92,000 $ 40,292 $ 74,000 $ 40,292
Schedule of property and equipment depreciation and amortization period

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method and the declining-balance method. Amortization of improvements to leased property is calculated over the life of the lease. Lives used to determine depreciation and amortization are generally as follows:

           Buildings and improvements         18-40 years
  Improvements to leased property 3-10 years
  Fixtures and equipment 7-12 years
  Other 3-5 years
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Marketable Securities (Tables)
6 Months Ended
Jan. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Schedule of financial assets measured at fair value on recurring basis

Fair value measurements at reporting date

Total Total
January 31, July 31,
Description     2021     Level 1     Level 2     Level 3     2020     Level 1     Level 2     Level 3
Assets:
Marketable securities $   3,924,076 $   3,924,076 $      – $      – $   3,744,905 $   3,744,905 $      – $      –
Schedule of classified marketable securities

As of January 31, 2021 and July 31, 2020, the Company's marketable securities were classified as follows:

January 31, 2021 July 31, 2020
Gross Gross Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Fair
      Cost       Gains       Losses       Value       Cost       Gains       Losses       Value
Noncurrent:
Mutual funds $ 1,457,778 $ 403,275 $ 4,696 $      1,856,357 $ 1,077,493 $ 297,064 $      – $      1,374,557
Equity securities 1,328,147 739,572 2,067,719 1,553,275 823,010 5,937 2,370,348
$      2,785,925 $    1,142,847 $      4,696 $ 3,924,076 $      2,630,768 $      1,120,074 $ 5,937 $ 3,744,905
Schedule of investment income

Investment income consists of the following:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Interest income $      67 $      2,772 294 13,050
Dividend income       76,868       73,143       82,691       80,887
Gain on sale of marketable securities 83,176 46,981
Total $      76,935 $      75,915 $    166,161 $      140,918
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Long-Term Debt - Mortgages (Tables)
6 Months Ended
Jan. 31, 2021
Debt Disclosure [Abstract]
Schedule of long-term debt
           Current
Annual Final
Interest Payment January 31, July 31,
      Rate       Date       2021       2020
(1) Bond St. building, Brooklyn, NY 4.375% 12/1/2024 $ 4,330,054 $ 4,829,832
(2) Fishkill building 3.980% 4/1/2025 3,900,311 3,967,100
Deferred financing costs (149,911 ) (168,967 )
Net $          8,080,454 $      8,627,965  
   

(1) In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York.

(2) In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years.

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Operating Leases (Tables)
6 Months Ended
Jan. 31, 2021
Leases [Abstract]
Schedule of Revenues by Lease and non-lease components

The following table disaggregates the Company's revenues by lease and non-lease components:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Base rent - fixed $      4,629,553 $      4,515,930 $      9,062,131 $      9,052,029
Reimbursements of common area costs       152,164       163,775       306,695       313,435
Non-lease components (real estate taxes) 265,150 359,355 513,035 709,511
Rental income $      5,046,867 $      5,039,060 $ 9,881,861 $      10,074,975
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:
            
As of January 31, 2021
Company
Owned
Leased
Fiscal Year       Property       Property       Total
For the remainder of 2021 $ 5,358,155 $ 2,768,597 $ 8,126,752
2022 10,111,752 3,998,024 14,109,776
2023 9,349,055 3,229,623 12,578,678
2024 7,537,962 2,946,006 10,483,968
2025 7,169,666 2,560,604 9,730,270
2026 5,152,745 1,932,534 7,085,279
After 2026 33,156,557 7,738,817 40,895,374
Total $      77,835,892 $      25,174,205 $      103,010,097
Schedule of Effect on Operating Lease Right-of-Use Assets, Liabilities and Rent Expense

The effect of these lease extensions on the measurement of operating lease right-of-use assets, liabilities and rent expense follows:

 
                 Operating Lease       Operating       Monthly Rent
Right-of-Use-Asset Lease Liability Expense
Upon initial adoption, August 1, 2019 $ 27,104,937 $ 16,728,284 $ 235,350
After various lease extensions through April 30, 2020 $ 37,698,819 $ 29,326,365 $ 277,570
Schedule of rental expense

Operating lease costs for leased real property was exceeded by sublease rental income from the Company’s real estate operations as follows:

Three Months Ended Six Months Ended
    January 31   January 31
2021 2020 2021 2020
Sublease income $     1,740,248 $      1,766,609 $      3,468,281 $      3,521,861
Operating lease cost       (832,707 )       (760,191 )       (1,665,420 )       (1,510,057 )
Excess of sublease income over lease cost $ 907,541 $      1,006,418 $      1,802,861 $      2,011,804
Schedule of annual undiscounted cash flows of the operating lease liabilities
Three Months Ended Six Months Ended
    January 31   January 31
Other information:       2021       2020       2021       2020
Operating cash flows from operating leases $     497,281 $      492,332 $      989,613 $      950,809

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of January 31, 2021:
            
January 31, 2022 $ 2,089,683
January 31, 2023 2,124,546
January 31, 2024 2,141,424
January 31, 2025 2,158,823
January 31, 2026 2,181,170
Thereafter 26,456,772
Total undiscounted cash flows 37,152,418
Less: present value discount (8,682,186 )
Total Lease Liabilities $ 28,470,232
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Cash Flow Information (Tables)
6 Months Ended
Jan. 31, 2021
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:


           January 31
      2021       2020
Cash and cash equivalents $ 1,493,124 $ 3,146,214
Restricted cash, tenant security deposits 814,152 808,663
Restricted cash, escrow 71,674 71,603
Restricted cash, other 27,140 27,840
$      2,406,090 $      4,054,320
Schedule of supplemental disclosure
Amounts in restricted cash primarily consist of cash held in bank accounts for tenant security deposits, amounts set aside in accordance with certain loan agreements, and security deposits with landlords and utility companies.

           Supplemental disclosure:       Six Months Ended
January 31
2021       2020
Cash Flow Information
Interest paid, net of capitalized interest of $34,390 (2021) and $64,759 (2020) $      147,196 $ 35,210
Income taxes (refunded) (23,040) (23,041)
               
Non-cash information
Recognition of operating lease right-of-use assets $      29,384,531
Recognition of operating lease liabilities 20,143,101
  Mortgage refinance           5,255,920
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Related Party Transactions (Tables)
6 Months Ended
Jan. 31, 2021
Related Party Transactions [Abstract]
Schedule of Rent Payments Expenses

Rent payments and expense relating to these two operating leases with Landlord follow:


               Rent Payments Rent Payments Rent Expense Rent Expense
Three Months Ended Six Months Ended Three Months Ended Six Months Ended
January 31 January 31 January 31 January 31
Property 2021     2020     2021     2020     2021 2020 2021 2020
Jamaica Avenue at 169th Street $    156,250 $    156,250 $    312,500 $    312,500 $    379,359     $    403,698     $    758,719     $    807,397
504-506 Fulton Street 90,564 90,564 181,128 181,128 87,609 87,609 175,219 175,219
Total $ 246,814 $ 246,814 $    493,628 $    493,628 $    466,968 $    491,307 $    933,938 $    982,616
Schedule of Summarizes Assets and Liabilities Related
The following summarizes assets and liabilities related to these two operating leases:
                                    
Right-Of-Use
Assets Liabilities
January 31 July 31 January 31 July 31
Property 2021       2020 2021 2020 Expiration Date
Jamaica Avenue at 169th Street $ 13,884,813 $ 14,230,659 $ 5,332,291 $ 5,455,029 May 31, 2030
504-506 Fulton Street 3,006,118 3,063,268 3,130,149 3,190,253 April 30, 2031
Total $      16,890,931 $      17,293,927 $      8,462,440 $      8,645,282
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The Impact of COVID-19 on our Results and Operations (Narrative) (Details) (USD $)
6 Months Ended 12 Months Ended 6 Months Ended 6 Months Ended
Jan. 31, 2021
Jul. 31, 2019
Jul. 31, 2020
Jan. 31, 2020
Jan. 31, 2021
Fishkill, NY building [Member]
Jan. 31, 2020
Fishkill, NY building [Member]
Jan. 31, 2021
Jowein building in Brooklyn, NY [Member]
Jan. 31, 2020
Jamaica building [Member]
Jan. 31, 2021
Jamaica, NY building [Member]
Jan. 31, 2020
9 Bond building in Brooklyn, NY [Member]
Jul. 31, 2020
Domestic Tax Authority [Member]
Jul. 31, 2020
State and Local Jurisdiction [Member]
Jul. 31, 2020
City Jurisdiction [Member]
Jan. 31, 2021
Minimum [Member]
Jan. 31, 2021
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Allowance for Expected uncolllectible receivables $ 156,000 $ 82,000
Renovations and improvements expense 823,234 2,397,216 358,042 291,545 290,976 289,699
Operating loss carryforwards 8,409,803 10,463,612 8,428,574
Period over which state capital-based tax will be phased out 7 years
Operating lease right-of-use assets 27,100,000 29,384,531
Operating lease liabilities 17,900,000 20,143,101
Incremental borrowing rate 3.88%
Building and improvements net of accumulated depreciation 10,200,000
Accrued rent 950,000
Lease termination term Jul 31, 2030
Deferred charges amortization period 4 years 21 years
Rent abatements 9,487 433,517
Amount of Deferrals $ 125,000 $ 459,429
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The Impact of COVID-19 on our Results and Operations (Schedule of Allowance For Uncollectible Receivables) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Jan. 31, 2021
Allowance for Uncollectible Accounts Receivable [Member]
Jul. 31, 2020
Allowance for Uncollectible Accounts Receivable [Member]
Jan. 31, 2021
Bad Debt Expense [Member]
Jan. 31, 2020
Bad Debt Expense [Member]
Jan. 31, 2021
Bad Debt Expense [Member]
Jan. 31, 2020
Bad Debt Expense [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance $ 156,000 $ 82,000 $ 82,000               
Charge-offs 92,000 423,232 92,000 40,292 92,000 40,292
Recoveries (18,000) (91,840)       (18,000)   
Rent abatements reclassified to reduce rental income    (249,392)            
Ending Balance $ 156,000 $ 82,000 $ 156,000 $ 82,000 $ 92,000 $ 40,292 $ 92,000 $ 40,292
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The Impact of COVID-19 on our Results and Operations (Property and equipment depreciation and amortization period) (Details)
6 Months Ended
Jan. 31, 2021
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 10 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
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Income Per Share of Common Stock (Details)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Leases [Abstract]
Average common shares outstanding 2,015,780 2,015,780 2,015,780 2,015,780
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Marketable Securities (Schedule of financial assets measured at fair value on recurring basis) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities $ 3,924,076 $ 3,744,905
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities 3,924,076 3,744,905
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities      
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities      
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Marketable Securities (Schedule of classified marketable securities) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Marketable Securities [Line Items]
Fair Value $ 3,924,076 $ 3,744,905
Noncurrent [Member]
Marketable Securities [Line Items]
Fair Value 3,924,076 3,744,905
Gross Unrealized Gains 1,142,847 1,120,074
Gross Unrealized Losses 4,696 5,937
Cost 2,785,925 2,630,768
Noncurrent [Member] | Mutual Funds [Member]
Marketable Securities [Line Items]
Fair Value 1,856,357 1,374,557
Gross Unrealized Gains 403,275 297,064
Gross Unrealized Losses 4,696   
Cost 1,457,778 1,077,493
Noncurrent [Member] | Corporate Equity Securities [Member]
Marketable Securities [Line Items]
Fair Value 2,067,719 2,370,348
Gross Unrealized Gains 739,572 823,010
Gross Unrealized Losses    5,937
Cost $ 1,328,147 $ 1,553,275
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Marketable Securities (Schedule of investment income) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Interest income $ 67 $ 2,772 $ 294 $ 13,050
Dividend income 76,868 73,143 82,691 80,887
Gain on sale of marketable securities       83,176 46,981
Total $ 76,935 $ 75,915 $ 166,161 $ 140,918
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Financial Instruments and Credit Risk Concentrations (Details)
6 Months Ended 12 Months Ended 6 Months Ended
Jan. 31, 2021
Allowance for Uncollectible Accounts Receivable [Member]
tenants
Jul. 31, 2020
Allowance for Uncollectible Accounts Receivable [Member]
tenants
Jan. 31, 2021
Customer One [Member]
Rental Income [Member]
tenants
Jan. 31, 2020
Customer One [Member]
Rental Income [Member]
tenants
Concentration Risk [Line Items]
Concentration risk 61.00% 55.00% 30.00% 43.00%
Number of tenants 7 4 2 3
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Long-Term Debt - Mortgages (Narrative) (Details) (USD $)
1 Months Ended 1 Months Ended
Nov. 30, 2019
Bond St. Building Brooklyn NY Two [Member]
Jan. 31, 2021
Bond St. Building Brooklyn NY Two [Member]
Nov. 30, 2019
Bond St. Building Brooklyn NY Two [Member]
Another Bank [Member]
Mar. 31, 2020
Fishkill, New York Property [Member]
Jan. 31, 2021
Fishkill, New York Property [Member]
Debt Instrument [Line Items]
Debt instrument face amount $ 5,255,920 $ 6,000,000 $ 4,000,000
Additional loans 144,080
Amount outstanding $ 5,400,000
Term of loan 5 years 20 years
Maturity period of loan 5 years
Interest rate, percent 4.38% 4.38% [1] 3.54% 3.98% 3.98% [2]
[1] In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York.
[2] In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years.
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Long-Term Debt - Mortgages (Schedule of Long-term Debt) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Jan. 31, 2021
Bond St. Building Brooklyn NY Two [Member]
Jul. 31, 2020
Bond St. Building Brooklyn NY Two [Member]
Nov. 30, 2019
Bond St. Building Brooklyn NY Two [Member]
Jan. 31, 2021
Fishkill, New York Property [Member]
Jul. 31, 2020
Fishkill, New York Property [Member]
Mar. 31, 2020
Fishkill, New York Property [Member]
Mortgage:
Current Annual Interest Rate 4.38% [1] 4.38% 3.98% [2] 3.98%
Final Payment Date Dec 1, 2024 [1] Apr 1, 2025 [2]
Long term loan $ 4,330,054 [1] $ 4,829,832 [1] $ 3,900,311 [2] $ 3,967,100 [2]
Deferred financing costs (149,911) (168,967)
Net $ 8,080,454 $ 8,627,965
[1] In November 2019, the Company refinanced the remaining balance of a $6,000,000, 3.54% interest rate loan with another bank for $5,255,920 plus an additional $144,080 for a total of $5,400,000. The interest rate on the new loan is fixed at 4.375%. The loan is self-liquidating over a period of five years and secured by the Nine Bond Street building in Brooklyn, New York.
[2] In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 to finance renovations and brokerage commissions relating to space leased to a community college at the Fishkill, New York building. The loan is secured by the Fishkill, New York building; amortized over a 20-year period with an interest rate of 3.98% and is due in five years.
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Note Payable (Details) (SBA Loan [Member], USD $)
6 Months Ended 12 Months Ended
Jan. 31, 2021
Apr. 30, 2020
Jul. 31, 2021
Subsequent Event [Member]
Debt instrument face amount $ 722,726
Current Annual Interest Rate 0.98%
Final Payment Date Jul 31, 2021
Percentage of loan forgiveness 100.00%
Extinguishment of debt income $ 722,726
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Operating Leases (Narrative) (Details)
Jan. 31, 2021
Lessor, Lease, Description [Line Items]
Weighted-average remaining lease term - operating leases 17 years 8 months 16 days
Weighted-average discount rate - operating leases 2.88%
Minimum [Member]
Lessor, Lease, Description [Line Items]
Operating leases extended period 5 years
Maximum [Member]
Lessor, Lease, Description [Line Items]
Operating leases extended period 49 years
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Operating Leases (Schedule of Revenues by Lease and Non-Lease Components) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Leases [Abstract]
Base rent - fixed $ 4,629,553 $ 4,515,930 $ 9,062,131 $ 9,052,029
Reimbursements of common area costs 152,164 163,775 306,695 313,435
Non-lease components (real estate taxes) 265,150 359,355 513,035 709,511
Rental income $ 5,046,867 $ 5,039,060 $ 9,881,861 $ 10,074,975
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Operating Leases (Schedule of Future Minimum Non-Cancelable Rental Income) (Details) (USD $)
Jan. 31, 2021
Lessor, Lease, Description [Line Items]
For the remainder of 2021 $ 8,126,752
2022 14,109,776
2023 12,578,678
2024 10,483,968
2025 9,730,270
2026 7,085,279
After 2026 40,895,374
Total 103,010,097
Company Owned Property [Member]
Lessor, Lease, Description [Line Items]
For the remainder of 2021 5,358,155
2022 10,111,752
2023 9,349,055
2024 7,537,962
2025 7,169,666
2026 5,152,745
After 2026 33,156,557
Total 77,835,892
Leased Property [Member]
Lessor, Lease, Description [Line Items]
For the remainder of 2021 2,768,597
2022 3,998,024
2023 3,229,623
2024 2,946,006
2025 2,560,604
2026 1,932,534
After 2026 7,738,817
Total $ 25,174,205
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Operating Leases (Schedule of Effect of Operating Lease Right-of-Use Assets, Liabilities and Rent Expense) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Leases [Abstract]
Operating Lease Right-of-Use-Asset $ 35,826,496 $ 37,077,038
Operating Lease Liability 28,470,232 29,044,966
Monthly Rent Expense $ 235,350 $ 277,570
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Operating Leases (Schedule of rental expense) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Leases [Abstract]
Sublease income $ 1,740,248 $ 1,766,609 $ 3,468,281 $ 3,521,861
Operating lease cost (832,707) (760,191) (1,665,420) (1,510,057)
Excess of sublease income over lease cost $ 907,541 $ 1,006,418 $ 1,802,861 $ 2,011,804
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Operating Leases (Schedule of Additional Information Related to Leases) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Other information:
Operating cash flows from operating leases $ 497,281 $ 492,332 $ 989,613 $ 950,809
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Operating Leases (Schedule of Undiscounted Cash Flows Operating Lease Liabilities) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Leases [Abstract]
January 31, 2022 $ 2,089,683
January 31, 2023 2,124,546
January 31, 2024 2,141,424
January 31, 2025 2,158,823
January 31, 2026 2,181,170
Thereafter 26,456,772
Total undiscounted cash flows 37,152,418
Less: present value discount (8,682,186)
Total Lease Liabilities $ 28,470,232 $ 29,044,966
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Employees' Retirement Plan (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Retirement Benefits [Abstract]
Pension contributions $ 109,915 $ 146,183 $ 219,983 $ 247,586
Employer contributions $ 16,875 $ 14,807 $ 30,573 $ 31,820
Minimum contribution rate 9.10%
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Cash Flow Information (Schedule of cash and cash equivalents and restricted cash) (Details) (USD $)
Jan. 31, 2021
Jul. 31, 2020
Jan. 31, 2020
Jul. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents $ 1,493,124 $ 3,260,135 $ 3,146,214
Restricted cash, tenant security deposits 814,152 808,663
Restricted cash, escrow 71,674 71,603
Restricted cash, other 27,140 27,840
Cash flow information $ 2,406,090 $ 4,403,801 $ 4,054,320 $ 5,263,724
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Cash Flow Information (Schedule of supplemental disclosure) (Details) (USD $)
6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jul. 31, 2019
Cash Flow Information
Interest paid, net of capitalized interest of $34,390 (2021) and $64,759 (2020) $ 147,196 $ 35,210
Income taxes (refunded) (23,040) (23,041)
Capitalized interest 34,390 64,759
Non-cash information
Recognition of operating lease right-of-use assets 29,384,531 27,100,000
Recognition of operating lease liabilities 20,143,101 17,900,000
Mortgage refinance $ 5,255,920
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Capitalization (Details)
Jan. 31, 2021
Jul. 31, 2020
Stockholders' Equity Note [Abstract]
Treasury stock, shares 162,517 162,517
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Related Party Transactions (Schedule of Rent Payments Expenses) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2021
Jan. 31, 2020
Jan. 31, 2021
Jan. 31, 2020
Rent Payments $ 246,814 $ 246,814 $ 493,628 $ 493,628
Rent Expense 466,968 491,307 933,938 982,616
Jamaica Avenue at 169th Street [Member]
Rent Payments 156,250 156,250 312,500 312,500
Rent Expense 379,359 403,698 758,719 807,397
504-506 Fulton Street [Member]
Rent Payments 90,564 90,564 181,128 181,128
Rent Expense $ 87,609 $ 87,609 $ 175,219 $ 175,219
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Related Party Transactions (Schedule of Summarizes Assets and Liabilities) (Details) (USD $)
12 Months Ended 6 Months Ended 6 Months Ended
Jul. 31, 2019
Jan. 31, 2021
Jul. 31, 2020
Jan. 31, 2021
Jamaica Avenue at 169th Street [Member]
Jul. 31, 2020
Jamaica Avenue at 169th Street [Member]
Jan. 31, 2021
504-506 Fulton Street [Member]
Jul. 31, 2020
504-506 Fulton Street [Member]
Operating Lease Right-Of-Use Assets $ 35,826,496 $ 37,077,038 $ 13,884,813 $ 14,230,659 $ 3,006,118 $ 3,063,268
Operating lease liabilities $ 28,470,232 $ 29,044,966 $ 5,332,291 $ 5,455,029 $ 3,130,149 $ 3,190,253
Expiration Date Jul 31, 2030 May 31, 2030 Apr 30, 2031
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