10-Q

FORM 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  October 31, 2017

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number 1-3647

J.W. Mays, Inc.(Exact name of registrant as specified in its charter)

New York	11-1059070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 Bond Street, Brooklyn, New York	11201-5805
(Address of principal executive offices)	(Zip Code)

(Registrant's telephone number, including area code) 718-624-7400

Not Applicable(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   
Yes     X      No          .

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   
Yes     X      No          .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Emerging growth company ☐
Non-accelerated filer ☐	Smaller reporting Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate the number of shares outstanding of the issuer's common stock, as of the latest practicable date.

Class	Outstanding at December 7, 2017
Common Stock, $1 par value	2,015,780 shares
	This report contains 25 pages.

J. W. MAYS, INC.

INDEX

	Page No.
Part I - Financial Information:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets – October 31, 2017 (unaudited) and July 31, 2017	3
Condensed Consolidated Statements of Operations and Retained Earnings – Three months ended October 31, 2017 and 2016 (unaudited)	4
Condensed Consolidated Statements of Comprehensive Income – Three months ended October 31, 2017 and 2016 (unaudited)	5
Condensed Consolidated Statements of Cash Flows – Three months ended October 31, 2017 and 2016 (unaudited)	6
Notes to Condensed Consolidated Financial Statements	7 - 15
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	16 - 18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	18
Item 4. Controls and Procedures	19
Part II - Other Information:
Item 1. Legal Proceedings	20
Item 1A. Risk Factors	20
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3. Defaults Upon Senior Securities	20
Item 4. Mine Safety Disclosures	20
Item 5. Other Information	20
Item 6. Exhibits and Reports on Form 8-K	20 - 21
Signatures	22
Exhibit 31 Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.1 - Chief Executive Officer	23
31.2 - Chief Financial Officer	24
Exhibit 32 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350	25

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Part 1 - Financial Information
       Item 1 - Financial Statements

J. W. MAYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS	October 31 2017		July 31 2017
	(Unaudited)		(Audited)
Property and Equipment - Net (Notes 5 and 6)	$	50,078,177	$	49,485,089
Current Assets:
Cash and cash equivalents (Note 4)		5,707,685		5,381,195
Receivables (Note 4)		182,128		164,716
Income taxes refundable		31,081		6,891
Restricted cash		15,126		15,905
Prepaid expenses		1,006,410		1,675,019
Total current assets		6,942,430		7,243,726
Other Assets:
Deferred charges		3,465,062		3,465,062
Less: accumulated amortization		1,458,342		1,384,142
Net		2,006,720		2,080,920
Restricted cash		1,283,496		1,279,829
Unbilled receivables (Notes 4 and 7)		1,871,214		1,943,648
Marketable securities (Notes 3 and 4)		2,935,306		2,815,727
Total other assets		8,096,736		8,120,124
TOTAL ASSETS	$	65,117,343	$	64,848,939
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-Term Liabilities:
Mortgage payable (Note 5)	$	5,374,466	$	5,409,908
Security deposits payable		1,061,924		1,020,292
Deferred income taxes (Note 1)		5,877,000		5,637,000
Total long-term liabilities		12,313,390		12,067,200
Current Liabilities:
Accounts payable		52,634		79,103
Payroll and other accrued liabilities		2,102,635		2,515,616
Other taxes payable		5,100		8,135
Current portion of mortgage payable (Note 5)		164,044		162,569
Current portion of security deposits Payable		15,126		15,905
Total current liabilities		2,339,539		2,781,328
TOTAL LIABILITIES		14,652,929		14,848,528
Shareholders' Equity:
Common stock, par value $1 each share (shares - 5,000,000 authorized; 2,178,297 issued)		2,178,297		2,178,297
Additional paid in capital		3,346,245		3,346,245
Unrealized gain on available-for-sale securities - net of deferred taxes of $225,000 at October 31, 2017 and $190,000 at July 31, 2017		437,084		368,476
Retained earnings		45,790,640		45,395,245
		51,752,266		51,288,263
Less common stock held in treasury, at cost - 162,517 shares at October 31, 2017 and at July 31, 2017 (Note 10)		1,287,852		1,287,852
Total shareholders' equity		50,464,414		50,000,411
Contingencies (Notes 13)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	65,117,343	$	64,848,939

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS

	Three Months Ended
	October 31
	2017			2016
	(Unaudited)			(Unaudited)
Revenues
Rental income (Notes 4 and 7)	$	4,785,026		$	4,480,288
Recovery of real estate taxes		–			10,952
Revenue to temporarily vacate lease (Note 12)		–			291,667
Total revenues		4,785,026			4,782,907
Expenses
Real estate operating expenses		2,537,875			2,527,935
Administrative and general expenses		1,129,966			1,090,603
Depreciation (Note 6)		432,141			412,627
Total expenses		4,099,982			4,031,165
Income from operations before investment income, interest expense and income taxes		685,044			751,742
Investment income and interest expense:
Investment income (Note 3)		13,329			3,161
Interest expense (Notes 5, 9 and 13)		(92,978	)		(61,878	)
		(79,649	)		(58,717	)
Income from operations before income taxes		605,395			693,025
Income taxes provided		210,000			231,000
Net income		395,395			462,025
Retained earnings, beginning of period		45,395,245			43,469,706
Retained earnings, end of period	$	45,790,640		$	43,931,731
Income per common share (Note 2)	$	.20		$	.23
Dividends per share	$	–		$	–
Average common shares outstanding		2,015,780			2,015,780

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Three Months Ended
	October 31
	2017		2016
	(Unaudited)		(Unaudited)
Net income	$	395,395	$	462,025
Unrealized gain (loss) on available-for-sale securities:
Unrealized gains (losses) arising during the period, net of taxes (benefit) of $35,000 and ($23,000) for the three months ended October 31, 2017 and 2016, respectively.		68,608		(43,990	)
Comprehensive income	$	464,003	$	418,035

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	October 31
	2017			2016
	(Unaudited)			(Unaudited)
Cash Flows From Operating Activities:
Net income	$	395,395		$	462,025
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		432,141			412,627
Amortization of deferred charges		74,200			64,600
Deferred finance costs included in interest expense		5,718			5,718
Realized loss on sale of marketable securities		6			7,421
Other assets - unbilled receivables		72,434			95,032
Deferred income taxes		205,000			231,000
Deferred revenue		-			(291,667	)
Changes in:
Receivables		(17,412	)		(288,093	)
Income taxes refundable		(24,190	)		3,107
Prepaid expenses		668,609			627,144
Accounts payable		(26,469	)		4,588
Payroll and other accrued liabilities		(412,981	)		24,094
Other taxes payable		(3,035	)		(2,760	)
Cash provided by operating activities		1,369,416			1,354,836
Cash Flows From Investing Activities:
Acquisition of property and equipment		(1,025,229	)		(516,320	)
Restricted cash		(2,888	)		(2,147	)
Marketable securities:
Receipts from sales		62			115,173
Payments for purchases		(16,039	)		(130,197	)
Cash (used) by investing activities		(1,044,094	)		(533,491	)
Cash Flows From Financing Activities:
Increase - security deposits payable		40,853			4,152
Mortgage and other debt payments		(39,685	)		(38,262	)
Cash provided (used) by financing activities		1,168			(34,110	)
Increase in cash and cash equivalents		326,490			787,235
Cash and cash equivalents at beginning of period		5,381,195			5,228,826
Cash and cash equivalents at end of period	$	5,707,685		$	6,016,061

See Notes to Condensed Consolidated Financial Statements.

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J. W. MAYS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.

Accounting Records and Use of Estimates:

The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation and amortization, 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 requirements for reporting on Form 10-Q. The July 31, 2017 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-K Annual Report for the fiscal year ended July 31, 2017. 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, 2018. 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. To the extent that 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. As of July 31, 2017, the Company had a federal net operating loss carryforward approximating $5,366,000 which is available to offset future taxable income. In addition, as of July 31, 2017, the Company had state and city net operating loss carryforwards of approximately $10,107,000 and $8,274,000, respectively, 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. In April 2014, the New York State governor signed into law legislation overhauling the New York State franchise tax on corporations. The changes in the law were effective for the Company’s year ended July 31, 2016. The state capital-based tax will be phased out over a 7-year period. The Company anticipates New York State taxes will be based on capital through 2021, and New York City taxes will be based on capital for the foreseeable future. Capital based franchise taxes are recorded to administrative and general expense. Due to the application of the capital-based tax while the net operating loss still applies, or due to the possible absence of State taxable income in the years beyond 2021 to which the State loss can be carried, the Company has not recorded the tax benefit of its New York State and New York City net operating loss carryforwards.

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Recently issued accounting standards not yet adopted:

In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. The adoption of this ASU on August 1, 2018 is not expected to have a significant impact on our consolidated financial statements.

Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers." The additional ASU's clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. The adoption of these updates on August 1, 2018 is not expected to have significant impact on our consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 will be effective for interim and annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a significant impact on our balance sheet and statement of operations.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations of 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. Lessor accounting remains similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. 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. Entities will be required to recognize and measure leases as of the earliest period presented using a modified retrospective approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standard will be effective for the Company for the fiscal year beginning August 1, 2019. Early adoption is permitted. The adoption of this guidance is expected to result in an increase in assets and liabilities on the Company’s balance sheet, with no material impact on the statement of operations. However, the ultimate impact of adopting this ASU will depend on the Company’s lease portfolio as of the adoption date.

In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted.

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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 three months ended October 31, 2017 and October 31, 2016.
3.	Marketable Securities:
	The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value measurements using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders' equity. Held-to-maturity securities are carried at amortized cost. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any securities as trading or held to maturity during the three months ended October 31, 2017 and year ended July 31, 2017. 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 October 31, 2017 and July 31, 2017. 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.

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In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

Fair value measurements at reporting date

Description	Total October 31, 2017		Level 1		Level 2		Level 3		Total July 31, 2017		Level 1		Level 2		Level 3
Assets:
Marketable securities - available-for-sale	$	2,935,306	$	2,935,306	$	–	$	–	$	2,815,727	$	2,815,727	$	–	$	–

As of October 31, 2017 and July 31, 2017, the Company's marketable securities were classified as follows:

	October 31, 2017								July 31, 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Noncurrent:
Available-for-sale:
Mutual funds	$	718,371	$	221,885	$	–	$	940,256	$	716,463	$	193,932	$	–	$	910,395
Equity securities		1,554,851		440,487		288		1,995,050		1,540,788		364,544		–		1,905,332
	$	2,273,222	$	662,372	$	288	$	2,935,306	$	2,257,251	$	558,476	$	–	$	2,815,727

The Company's equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2017				July 31, 2017
	Fair Value		Less Than 12 Months		Fair Value		Less Than 12 Months
Corporate equity securities	$	14,177	$	288	$	–	$	–

Investment income consists of the following:

	Three Months Ended
	October 31
	2017			2016
Loss on sale of marketable securities	$	(6	)	$	(7,421	)
Interest income		3,726			3,304
Dividend income		9,609			7,278
Total	$	13,329		$	3,161

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4.	Financial Instruments and Credit Risk Concentrations:
	Financial instruments that are potentially subject to concentrations of credit risk consist principally of marketable securities, cash and cash equivalents and receivables. Marketable securities and cash and cash equivalents are placed with multiple financial institutions and multiple instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. The Company derives rental income from approximately fifty tenants, of which one tenant accounted for 17.78%, another tenant accounted for 14.61% and a third tenant accounted for 12.99% of rental income during the three months ended October 31, 2017. The three months ended October 31, 2016 had one tenant account for 18.66%, another tenant account for 15.10% and a third tenant accounted for 10.52% of rental income. No other tenant accounted for more than 10% of rental income during the same periods. The Company has one irrevocable Letter of Credit totaling $230,000 at October 31, 2017 and July 31, 2017 provided by a tenant as a security deposit.
5.	Long-Term Debt – Mortgage:

			October 31, 2017				July 31, 2017
	Current Annual Interest Rate	Final Payment Date	Due Within One Year		Due After One Year		Due Within One Year		Due After One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	164,044	$	5,425,950	$	162,569	$	5,467,110
Less: Deferred financing costs				–		51,484		–		57,202
Total			$	164,044	$	5,374,466	$	162,569	$	5,409,908

On January 9, 2015, the Company refinanced its loan with a bank for $6,000,000, which included the outstanding balance as of January 2015 in the amount of $5,347,726 and an additional borrowing of $652,274. The loan is for a period of five years with a payment based on a twenty-five year amortization period. The interest rate for this period is fixed at 3.54% per annum. The mortgage loan is secured by the Bond Street building in Brooklyn, New York.

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6. Property and Equipment – at cost:

	October 31		July 31
	2017		2017
Property:
Buildings and improvements	$	81,935,951	$	80,825,601
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		559,687		644,809
		90,041,455		89,016,227
Less accumulated depreciation		40,069,683		39,648,642
Property - net		49,971,772		49,367,585
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		193,015		193,015
		337,560		337,560
Less accumulated depreciation		231,155		220,056
Fixtures and equipment and other - net		106,405		117,504
Property and equipment - net	$	50,078,177	$	49,485,089
Construction in progress includes:
	October 31		July 31
	2017		2017
Building improvements at 9 Bond Street in Brooklyn, NY	$	46,523	$	644,809
Building improvements at 25 Elm Place in Brooklyn, NY		30,266		–
Building improvements at Jamaica, NY building		422,874		–
Building improvements at Fishkill, NY building		60,024		–
	$	559,687	$	644,809

7.	Unbilled Receivables and Rental Income:
	Unbilled receivables represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of each lease.

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8.

Employees' Retirement Plan:

The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $104,432 and $102,509 as contributions to the Plan for the three months ended October 31, 2017 and 2016, 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 $15,599 and $12,611 for the three months ended October 31, 2017 and 2016, 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, 2016
Certified zone status:	Critical status
Status determination date:	January 1, 2017
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, 2016:	Yes
Rehabilitation plan implemented:	Yes
Employer subject to surcharge:	Yes
Contract expiration date:	November 30, 2019

For the plan years 2017-2019, under the pension fund’s rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to 9.1% of the prior year total contribution rate. The Company has 30 employees and has a contract, expiring November 30, 2019, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 23% of its employees. The Company considers that its labor relations with its employees and union are good.

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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 (3) months or less, which are readily convertible into cash.

Supplemental disclosure:	Three Months Ended
	October 31
	2017		2016
Interest paid, net of capitalized interest of $11,549 (2017) and $2,742 (2016)	$	87,381	$	61,994
Income taxes paid	$	78,867	$	50,946

10.	Common Stock:
	The Company has one class of common stock with identical voting rights and rights to liquidation.
11.	Accumulated Other Comprehensive Income:
	The only component of accumulated other comprehensive income is unrealized gain (loss) on available-for-sale securities. A summary of the changes in accumulated other comprehensive income for the three months ended October 31, 2017 and 2016 is as follows:

	Three Months Ended
	October 31
	2017			2016
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	368,476		$	264,541
Other comprehensive income, net of tax effect:
Unrealized gain (loss) on available-for-sale securities		103,608			(65,636	)
Tax effect		(35,000	)		22,500
Unrealized gain (loss) on available-for-sale securities, net of tax effect		68,608			(43,136	)
Amounts reclassified from accumulated other comprehensive income, net of tax effect:
Unrealized gain on available-for-sale securities reclassified		-			(1,354	)
Tax effect		-			500
Amount reclassified, net of tax effect		-			(854	)
Ending balance, net of tax effect	$	437,084		$	220,551

A summary of the line items in the Condensed Consolidated Statements of Income and Retained Earnings affected by the amounts reclassified from accumulated other comprehensive income is as follows:

Details about accumulated other comprehensive income components	Affected line item in the statement where net income is presented
----------------------------------------------------	---------------------------------------------
Other comprehensive income reclassified tax effect	Investment income Income taxes provided

-14-

12.	Entry into a Material Definitive Agreement:
	On June 16, 2014, the Company entered into a Second Amendment of Lease (the "Amendment") with 33 Bond St. LLC ("Bond"), its landlord, for certain truck bays and approximately 1,000 square feet located at the cellar level within a garage at Livingston and Bond Street ("Premises"). Pursuant to the Amendment, (1) a lease option for the Premises was exercised extending the lease until December 8, 2043, (2) the Company, simultaneously with the execution of the Amendment, vacated the Premises so that Bond may demolish the building in which the Premises is located in order to develop and construct a new building at the location, and (3) Bond agreed to redeliver to the Company possession of the reconfigured Premises after construction. As consideration under the Amendment, Bond agreed to pay the Company a total of $3,500,000. Upon execution of the Amendment, the Company recorded $3,500,000 to deferred revenue to be amortized to revenue to temporarily vacate the premises over the expected vacate period of 36 months. Bond tendered $2,250,000 simultaneously with the execution of the Amendment, and the balance due of $1,250,000 on June 16, 2015 had been received by the Company. The Company re-occupied the premises in October 2017. In connection with the Amendment, the parties also agreed to settle a pending lawsuit in the Supreme Court of the State of New York, Kings County, Index No. 50796/13 (the "Action"), in which the Company sought, among other things, a declaratory judgment that it validly renewed the lease for the Premises, and Bond sought, among other things, a declaratory judgment that the lease expired by its terms on December 8, 2013. Pursuant to a stipulation of settlement, filed on June 16, 2014, the Action, including all claims and counterclaims, has been discontinued with prejudice, without costs or attorneys' fees to any party as against the other. The stipulation of settlement also contains general releases by both parties of all claims.
13.	Contingencies:
	Due to defective workmanship and breach of contract, the Company continues to pursue damages and return in full of a $376,467 deposit paid a contractor when construction commenced to replace a roof and various other work on the Fishkill, New York building. Both the contractor and subcontractors have claimed the Company tortuously interfered with the construction contracts arguing for fees and costs which approximate $700,000. While the Company strongly disputes the claims, it is possible that the court may rule against the Company and may assess damages in amounts up to approximately $700,000. It is also possible that the court may rule in favor of the Company and that no damages would be awarded against the Company and the Company could obtain an order for the return of all or a portion of amounts previously paid. A charge to real estate operating expenses in the amount of $279,213 was recorded for the fiscal year ended July 31, 2016. Following initial court decisions, another $141,132 was charged to operating expenses on October 31, 2016 and this amount was ordered by the Court to be paid, plus interest in the amount of $48,116, in a judgement dated September 14, 2017. This amount of $189,248 was paid in October 2017. The testimony phase of the trial has been completed and the parties await further decisions and orders of the court. There are various other lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Company’s Consolidated Financial Statements. If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time.

-15-

Item 2.

J. W. MAYS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our financial statements and related notes thereto contained in this report. In this discussion, the words “Company”, “we”, “our” and “us” refer to J.W. Mays, Inc. and subsidiaries.

Forward Looking Statements:

The following can be interpreted as including forward looking statements under the Private Securities Litigation Reform Act of 1995. The words “outlook”, “intend”, “plans”, “efforts”, “anticipates”, “believes”, “expects” or words of similar import typically identify such statements. Various important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are identified under the heading “Cautionary Statement Regarding Forward-Looking Statements” below. Our actual results may vary significantly from the results contemplated by these forward-looking statements based on a number of factors including, but not limited to, availability of labor, marketing success, competitive conditions and the change in economic conditions of the various markets we serve.

Critical Accounting Policies and Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. We believe the critical accounting policies in Note 1 to the Condensed Consolidated Financial Statements disclose our more significant judgments and estimates used in the preparation of our financial statements. Actual results may differ from these estimates under different assumptions and conditions. (See Note 1 on pages 7 and 8 to the Condensed Consolidated Financial Statements herein and Note 1 on pages 9 through 12 to the Consolidated Financial Statements in the Annual Report to Shareholders for the fiscal year ended July 31, 2017).

Results of Operations:

Three months ended October 31, 2017 compared to the three months ended October 31, 2016:

In the three months ended October 31, 2017, the Company reported net income of $395,395, or $.20 per share. In the comparable three months ended October 31, 2016, the Company reported net income of $462,025, or $.23 per share.

Revenues in the current three months increased to $4,785,026 from $4,782,907 in the comparable 2016 three months primarily due to increased rental income from existing tenants, partially offset by revenue to temporarily vacate a lease in the 2016 three months.

The recovery of real estate taxes in the 2016 three months in the amount of $10,952, net of legal expenses, represents recovery of prior years’ real estate taxes from one of the Company’s properties. The comparable 2017 three months did not have a recovery of real estate taxes.

Real estate operating expenses in the current three months increased to $2,537,875 from $2,527,935 in the comparable 2016 three months primarily due to increases in real estate taxes, utilities and maintenance costs, partially offset by a charge for litigation against a contractor in the amount of $141,132 (see Note 13) in the 2016 three months.

Administrative and general expenses in the current three months increased to $1,129,966 from $1,090,603 in the comparable 2016 three months primarily due to increases in medical costs, directors fees and legal and professional costs.

-16-

Depreciation and amortization expense in the current three months increased to $432,141 from $412,627 in the comparable 2016 three months primarily due to improvements in the Jowein building in Brooklyn, New York.

Interest expense exceeded investment income in the current three months by $79,649 and by $58,717 in the comparable 2016 three months primarily due to interest on litigation (see Note 13), partially offset by scheduled repayment of debt.

Liquidity and Capital Resources:

Management considers current working capital and borrowing capabilities adequate to cover the Company’s planned operating and capital requirements. The Company’s cash and cash equivalents amounted to $5,707,685 at October 31, 2017.

In March 2017, the Company leased 7,700 square feet to a medical facility at its Nine Bond Street, Brooklyn, New York building, for a term of ten years with two five year option periods. To accommodate this tenant, an existing tenant surrendered 400 square feet of retail space. The cost of renovations for this tenant will be approximately $400,000 and brokerage commissions were $216,052. The tenant is anticipated to take occupancy and commence payment of rent in the Spring of 2018.

In August, 2017, the Company leased 1,423 square feet of retail space to an existing tenant for a period of 18.5 years at the Company’s Nine Bond Street, Brooklyn, New York building. Rent and occupancy is anticipated to occur in the Spring of 2018.

In September, 2017, an office tenant who occupies 2,000 square feet at the Company’s Jamaica, New York building vacated the space. The loss in annual rent will be $58,000.

In September, 2017, the Company leased 5,167 square feet of retail space to a tenant at the Company’s Nine Bond Street, Brooklyn, New York building for a period of ten years, effective January, 2018. The tenant is currently occupying the premises on a month-to-month basis effective August 1, 2017.

In November, 2017, the Company extended a lease with the existing dental office tenant at its Nine Bond Street, Brooklyn, New York building for an additional ten years, expiring January 15, 2028.

Cash Flows From Operating Activities:

Payroll and Other Accrued Liabilities: The Company had a balance due at October 31, 2017 for brokerage commissions of $310,157. Brokerage commissions in the amount of $99,541 were paid in the three months ended October 31, 2017.

Cash Flows From Investing Activities:

The Company had expenditures for elevator upgrade work in the amount of $227,672 for the three months ended October 31, 2017, at the Company’s Nine Bond Street, Brooklyn, New York building. The total cost of the project was $627,333, and it was completed in October, 2017. The Company had expenditures of $45,006 for a new tenant. The cost of the project will be approximately $400,000 of which $290,154 has been paid, and will be completed in the Spring of 2018. The Company also had expenditures of $221,307 for various other construction projects.

The Company had expenditures for electrical work in the amount of $30,266 for the three months ended October 31, 2017, at its Jowein, Brooklyn, New York building.

The Company had expenditures for elevator upgrade work in the amount of $262,690 for the three months ended October 31, 2017, at the Company’s Jamaica, New York building. The total cost of the project will be approximately $800,000, and is anticipated to be completed in June, 2018. The Company had expenditures of $160,184 for renovation work for two existing tenants. The total cost of the project was $280,000, and was completed in November, 2017. The Company also had expenditures of $18,080 for various other construction projects.

The Company had expenditures for various construction projects in the amount of $60,024 for the three months ended October 31, 2017, at its Fishkill, New York property.

-17-

Cautionary Statement Regarding Forward-Looking Statements:

This section, Management’s Discussion and Analysis of Financial Condition and Results of Operations, other sections of this Report on Form 10-Q and other reports and verbal statements made by our representatives from time to time may contain forward-looking statements that are based on our assumptions, expectations and projections about us and the real estate industry. These include statements regarding our expectations about revenues, our liquidity, our expenses and our continued growth, among others. Such forward-looking statements by their nature involve a degree of risk and uncertainty. We caution that a variety of factors, including but not limited to the factors listed below, could cause business conditions and our results to differ materially from what is contained in forward-looking statements: 

● changes in the rate of economic growth in the United States;

● the ability to obtain credit from financial institutions and the related costs;

● changes in the financial condition of our customers;

● changes in regulatory environment;

● lease cancellations;

● changes in our estimates of costs;

● war and/or terrorist attacks on facilities where services are or may be provided;

● outcomes of pending and future litigation;

● increasing competition by other companies;

● compliance with our loan covenants;

● recoverability of claims against our customers and others by us and claims by third parties against us; and

● changes in estimates used in our critical accounting policies.

Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by us.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to review any additional disclosures we make in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and any Form 8-K reports filed with the United States Securities and Exchange Commission.

Item 3. Quantitative and Qualitative Disclosures About Market Risk:

The Company uses fixed-rate debt to finance its capital requirements. These transactions do not expose the Company to market risk related to changes in interest rates. The Company does not use derivative financial instruments. At October 31, 2017, the Company had fixed-rate debt of $5,589,994.

-18-

Item 4. Controls and Procedures:

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of the end of the period covered by this quarterly report, our disclosure controls and procedures were effective and provide reasonable assurance that the information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported accurately and within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are likely to materially affect, our internal control over financial reporting.

-19-

Part II - Other Information

Item 1. Legal Proceedings

From time to time we are involved in legal actions arising in the ordinary course of business. In our opinion, the outcome of such matters in the aggregate will not have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

There have been no changes to our risk factors from those disclosed in our Annual Report on Form 10-K for our fiscal year ended July 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

(a) List of Exhibits:

			Sequentially
Exhibit			Numbered
Number		Exhibit	Page
	(3)	Articles of Incorporation and Bylaws	Incorporated by reference
	(10)	Material contracts	Incorporated by reference
	(11)	Statement re computation of per share earnings	N/A
	(12)	Statement re computation of ratios	N/A
	(14)	Code of ethics	N/A
	(15)	Letter re unaudited interim financial information	N/A
	(18)	Letter re change in accounting principles	N/A
	(19)	Report furnished to security holders	N/A
	(31)	Additional exhibits - Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
		(31.1) Chief Executive Officer	23
		(31.2) Chief Financial Officer	24
	(32)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350	25
	(95)	Mine safety disclosure	N/A

-20-

EX-101.INS	XBRL Instance Document
EX-101.SCH	XBRL Taxonomy Extension Schema
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase
EX-101.LAB	XBRL Taxonomy Extension Label Linkbase
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase

(b) Reports on Form 8-K – One report on Form 8-K was filed by the registrant during the three months ended October 31, 2017.

Items reported:

The Company reported its financial results for the three months and year ended July 31, 2017. Date of report filed - October 5, 2017.

-21-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		J.W. MAYS, Inc.
		(Registrant)
Date:	December 7, 2017	Lloyd J. Shulman
		Lloyd J. Shulman
		President
		Chief Executive Officer
Date:	December 7, 2017	Mark S. Greenblatt
		Mark S. Greenblatt
		Vice President
		Chief Financial Officer

-22-

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Lloyd J. Shulman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of J.W. Mays, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 7, 2017
		/s/ Lloyd J. Shulman
		Lloyd J. Shulman
		President
		Chief Executive Officer

-23-

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Mark S. Greenblatt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of J.W. Mays, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	December 7, 2017
		/s/ Mark S. Greenblatt
		Mark S. Greenblatt
		Vice President
		Chief Financial Officer

-24-

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of J.W. Mays, Inc. (the "Company") on Form 10-Q for the period ended October 31, 2017 as filed with the United States Securities and Exchange Commission (the "Report"), we, Lloyd J. Shulman and Mark S. Greenblatt, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	December 7, 2017
		/s/ Lloyd J. Shulman
		Lloyd J. Shulman
		Chief Executive Officer
		/s/ Mark S. Greenblatt
		Mark S. Greenblatt
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to J.W. Mays, Inc. and will be retained by J.W. Mays, Inc. and furnished to the United States Securities and Exchange Commission or its staff upon request.

-25-

XML

DOCUMENT AND ENTITY INFORMATION - shares	3 Months Ended
	Oct. 31, 2017	Dec. 07, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	MAYS J W INC
Entity Central Index Key	0000054187
Current Fiscal Year End Date	--07-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	mays
Entity Common Stock, Shares Outstanding		2,015,780
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2018
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2017	Jul. 31, 2017
ASSETS
Property and Equipment - Net (Notes 5 and 6)	$ 50,078,177	$ 49,485,089
Current Assets:
Cash and cash equivalents (Note 4)	5,707,685	5,381,195
Receivables (Note 4)	182,128	164,716
Income taxes refundable	31,081	6,891
Restricted cash	15,126	15,905
Prepaid expenses	1,006,410	1,675,019
Total current assets	6,942,430	7,243,726
Other Assets:
Deferred charges	3,465,062	3,465,062
Less: accumulated amortization	1,458,342	1,384,142
Net	2,006,720	2,080,920
Restricted cash	1,283,496	1,279,829
Unbilled receivables (Notes 4 and 7)	1,871,214	1,943,648
Marketable securities (Notes 3 and 4)	2,935,306	2,815,727
Total other assets	8,096,736	8,120,124
TOTAL ASSETS	65,117,343	64,848,939
Long-Term Liabilities:
Mortgage payable (Note 5)	5,374,466	5,409,908
Security deposits payable	1,061,924	1,020,292
Deferred Income Taxes (Note 1)	5,877,000	5,637,000
Total long-term liabilities	12,313,390	12,067,200
Current Liabilities:
Accounts payable	52,634	79,103
Payroll and other accrued liabilities	2,102,635	2,515,616
Other taxes payable	5,100	8,135
Current portion of mortgage payable (Note 5)	164,044	162,569
Current portion of security deposits Payable	15,126	15,905
Total current liabilities	2,339,539	2,781,328
TOTAL LIABILITIES	14,652,929	14,848,528
Shareholders' Equity:
Common stock, par value $1 each share (shares - 5,000,000 authorized; 2,178,297 issued)	2,178,297	2,178,297
Additional paid in capital	3,346,245	3,346,245
Unrealized gain on available-for-sale securities - net of deferred taxes of $225,000 at October 31, 2017 and $190,000 at July 31, 2017	437,084	368,476
Retained earnings	45,790,640	45,395,245
Stockholders' Equity before Treasury Stock	51,752,266	51,288,263
Less common stock held in treasury, at cost - 162,517 shares at October 31, 2017 and at July 31, 2017 (Note 10)	1,287,852	1,287,852
Total shareholders' equity	50,464,414	50,000,411
Contingencies (Notes 13)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 65,117,343	$ 64,848,939

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Oct. 31, 2017	Jul. 31, 2017
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	2,178,297	2,178,297
Treasury stock, shares	162,517	162,517
Unrealized Gain on Available-for-sale Securities - Net of Deferred Taxes [Member]
Unrealized gain (loss) on available-for-sale securities, deferred taxes (benefit)	$ 225,000	$ 190,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Revenues
Rental income (Notes 4 and 7)	$ 4,785,026	$ 4,480,288
Recovery of real estate taxes		10,952
Revenue to temporarily vacate lease (Note 12)		291,667
Total revenues	4,785,026	4,782,907
Expenses
Real estate operating expenses	2,537,875	2,527,935
Administrative and general expenses	1,129,966	1,090,603
Depreciation (Note 6)	432,141	412,627
Total expenses	4,099,982	4,031,165
Income from operations before investment income, interest expense and income taxes	685,044	751,742
Investment income and interest expense:
Investment income (Note 3)	13,329	3,161
Interest expense (Notes 5, 9 and 13)	(92,978)	(61,878)
Total investment income and interest expense	(79,649)	(58,717)
Income from operations before income taxes	605,395	693,025
Income taxes provided	210,000	231,000
Net income	395,395	462,025
Retained earnings, beginning of period	45,395,245	43,469,706
Retained earnings, end of period	$ 45,790,640	$ 43,931,731
Income per common share (Note 2)	$ 0.2	$ 0.23
Dividends per share
Average common shares outstanding	2,015,780	2,015,780

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 395,395	$ 462,025
Unrealized gain (loss) on available-for-sale securities:
Unrealized gains (losses) arising during the period, net of taxes (benefit) of $35,000 and ($23,000) for the three months ended October 31, 2017 and 2016, respectively.	68,608	(43,990)
Comprehensive income	$ 464,003	$ 418,035

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized holding gains arising during the period, tax	$ 35,000	$ (23,000)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash Flows From Operating Activities:
Net income	$ 395,395	$ 462,025
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	432,141	412,627
Amortization of deferred charges	74,200	64,600
Deferred finance costs included in interest expense	5,718	5,718
Realized loss on sale of marketable securities	6	7,421
Other assets - unbilled receivables	72,434	95,032
Deferred income taxes	205,000	231,000
Deferred revenue		(291,667)
Changes in:
Receivables	(17,412)	(288,093)
Income taxes refundable	(24,190)	3,107
Prepaid expenses	668,609	627,144
Accounts payable	(26,469)	4,588
Payroll and other accrued liabilities	(412,981)	24,094
Other taxes payable	(3,035)	(2,760)
Cash provided by operating activities	1,369,416	1,354,836
Cash Flows From Investing Activities:
Acquisition of property and equipment	(1,025,229)	(516,320)
Restricted cash	(2,888)	(2,147)
Marketable securities:
Receipts from sales	62	115,173
Payments for purchases	(16,039)	(130,197)
Cash (used) by investing activities	(1,044,094)	(533,491)
Cash Flows From Financing Activities:
Increase - security deposits payable	40,853	4,152
Mortgage and other debt payments	(39,685)	(38,262)
Cash provided (used) by financing activities	1,168	(34,110)
Increase in cash and cash equivalents	326,490	787,235
Cash and cash equivalents at beginning of period	5,381,195	5,228,826
Cash and cash equivalents at end of period	$ 5,707,685	$ 6,016,061

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Accounting Records and Use of Estimates

3 Months Ended

Oct. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounting Records and Use of Estimates

1.	Accounting Records and Use of Estimates:
	The accounting records are maintained in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the Company’s financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation and amortization, 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 requirements for reporting on Form 10-Q. The July 31, 2017 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-K Annual Report for the fiscal year ended July 31, 2017. 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, 2018. 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. To the extent that 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. As of July 31, 2017, the Company had a federal net operating loss carryforward approximating $5,366,000 which is available to offset future taxable income. In addition, as of July 31, 2017, the Company had state and city net operating loss carryforwards of approximately $10,107,000 and $8,274,000, respectively, 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. In April 2014, the New York State governor signed into law legislation overhauling the New York State franchise tax on corporations. The changes in the law were effective for the Company’s year ended July 31, 2016. The state capital-based tax will be phased out over a 7-year period. The Company anticipates New York State taxes will be based on capital through 2021, and New York City taxes will be based on capital for the foreseeable future. Capital based franchise taxes are recorded to administrative and general expense. Due to the application of the capital-based tax while the net operating loss still applies, or due to the possible absence of State taxable income in the years beyond 2021 to which the State loss can be carried, the Company has not recorded the tax benefit of its New York State and New York City net operating loss carryforwards.
	Recently issued accounting standards not yet adopted: In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) establishing ASC Topic 606 Revenue from Contracts with Customers. ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. ASU 2014-09 is effective for interim and annual reporting in fiscal years that begin after December 15, 2016. ASU 2015-14 extended the implementation date for fiscal years beginning after December 31, 2017. The adoption of this ASU on August 1, 2018 is not expected to have a significant impact on our consolidated financial statements. Subsequent to the issuance of ASU 2014-09, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, and ASU No. 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers." The additional ASU's clarified certain provisions of ASU 2014-09 in response to recommendations from the Transition Resource Group established by the FASB and have the same effective date and transition requirements as ASU 2014-09. The adoption of these updates on August 1, 2018 is not expected to have significant impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 will be effective for interim and annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a significant impact on our balance sheet and statement of operations. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations of 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. Lessor accounting remains similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. 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. Entities will be required to recognize and measure leases as of the earliest period presented using a modified retrospective approach. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new standard will be effective for the Company for the fiscal year beginning August 1, 2019. Early adoption is permitted. The adoption of this guidance is expected to result in an increase in assets and liabilities on the Company’s balance sheet, with no material impact on the statement of operations. However, the ultimate impact of adopting this ASU will depend on the Company’s lease portfolio as of the adoption date. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017, with early adoption permitted.

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Income Per Share of Common Stock

3 Months Ended

Oct. 31, 2017

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 three months ended October 31, 2017 and October 31, 2016.

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Marketable Securities

3 Months Ended

Oct. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

3.

Marketable Securities:

The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value measurements using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders' equity. Held-to-maturity securities are carried at amortized cost. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any securities as trading or held to maturity during the three months ended October 31, 2017 and year ended July 31, 2017. 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 October 31, 2017 and July 31, 2017. 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.

In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

Fair value measurements at reporting date

Description	Total October 31, 2017		Level 1		Level 2		Level 3		Total July 31, 2017		Level 1		Level 2		Level 3
Assets:
Marketable securities - available-for-sale	$	2,935,306	$	2,935,306	$	–	$	–	$	2,815,727	$	2,815,727	$	–	$	–

As of October 31, 2017 and July 31, 2017, the Company's marketable securities were classified as follows:

	October 31, 2017								July 31, 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Noncurrent:
Available-for-sale:
Mutual funds	$	718,371	$	221,885	$	–	$	940,256	$	716,463	$	193,932	$	–	$	910,395
Equity securities		1,554,851		440,487		288		1,995,050		1,540,788		364,544		–		1,905,332
	$	2,273,222	$	662,372	$	288	$	2,935,306	$	2,257,251	$	558,476	$	–	$	2,815,727

The Company's equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2017				July 31, 2017
	Fair Value		Less Than 12 Months		Fair Value		Less Than 12 Months
Corporate equity securities	$	14,177	$	288	$	–	$	–

Investment income consists of the following:

	Three Months Ended
	October 31
	2017			2016
Loss on sale of marketable securities	$	(6	)	$	(7,421	)
Interest income		3,726			3,304
Dividend income		9,609			7,278
Total	$	13,329		$	3,161

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Financial Instruments and Credit Risk Concentrations

3 Months Ended

Oct. 31, 2017

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, cash and cash equivalents and receivables. Marketable securities and cash and cash equivalents are placed with multiple financial institutions and multiple instruments to minimize risk. No assurance can be made that such financial institutions and instruments will minimize all such risk. The Company derives rental income from approximately fifty tenants, of which one tenant accounted for 17.78%, another tenant accounted for 14.61% and a third tenant accounted for 12.99% of rental income during the three months ended October 31, 2017. The three months ended October 31, 2016 had one tenant account for 18.66%, another tenant account for 15.10% and a third tenant accounted for 10.52% of rental income. No other tenant accounted for more than 10% of rental income during the same periods. The Company has one irrevocable Letter of Credit totaling $230,000 at October 31, 2017 and July 31, 2017 provided by a tenant as a security deposit.

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Long-Term Debt - Mortgage

3 Months Ended

Oct. 31, 2017

Long-Term Debt – Mortgage [Abstract]

Long-Term Debt - Mortgage

5. Long-Term Debt – Mortgage:

			October 31, 2017				July 31, 2017
	Current Annual Interest Rate	Final Payment Date	Due Within One Year		Due After One Year		Due Within One Year		Due After One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	164,044	$	5,425,950	$	162,569	$	5,467,110
Less: Deferred financing costs				–		51,484		–		57,202
Total			$	164,044	$	5,374,466	$	162,569	$	5,409,908

On January 9, 2015, the Company refinanced its loan with a bank for $6,000,000, which included the outstanding balance as of January 2015 in the amount of $5,347,726 and an additional borrowing of $652,274. The loan is for a period of five years with a payment based on a twenty-five year amortization period. The interest rate for this period is fixed at 3.54% per annum. The mortgage loan is secured by the Bond Street building in Brooklyn, New York.

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Property and Equipment - at cost

3 Months Ended

Oct. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment - at cost

6. Property and Equipment – at cost:

	October 31		July 31
	2017		2017
Property:
Buildings and improvements	$	81,935,951	$	80,825,601
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		559,687		644,809
		90,041,455		89,016,227
Less accumulated depreciation		40,069,683		39,648,642
Property - net		49,971,772		49,367,585
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		193,015		193,015
		337,560		337,560
Less accumulated depreciation		231,155		220,056
Fixtures and equipment and other - net		106,405		117,504
Property and equipment - net	$	50,078,177	$	49,485,089
Construction in progress includes:
	October 31		July 31
	2017		2017
Building improvements at 9 Bond Street in Brooklyn, NY	$	46,523	$	644,809
Building improvements at 25 Elm Place in Brooklyn, NY		30,266		–
Building improvements at Jamaica, NY building		422,874		–
Building improvements at Fishkill, NY building		60,024		–
	$	559,687	$	644,809

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Unbilled Receivables and Rental Income

3 Months Ended

Oct. 31, 2017

Unbilled Receivables And Rental Income

Unbilled Receivables and Rental Income

7.	Unbilled Receivables and Rental Income:
	Unbilled receivables represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of each lease.

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Employees' Retirement Plan

3 Months Ended

Oct. 31, 2017

Retirement Benefits [Abstract]

Employees' Retirement Plan

8.

Employees' Retirement Plan:

The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $104,432 and $102,509 as contributions to the Plan for the three months ended October 31, 2017 and 2016, 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 $15,599 and $12,611 for the three months ended October 31, 2017 and 2016, 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, 2016
Certified zone status:	Critical status
Status determination date:	January 1, 2017
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, 2016:	Yes
Rehabilitation plan implemented:	Yes
Employer subject to surcharge:	Yes
Contract expiration date:	November 30, 2019

For the plan years 2017-2019, under the pension fund’s rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to 9.1% of the prior year total contribution rate. The Company has 30 employees and has a contract, expiring November 30, 2019, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 23% of its employees. The Company considers that its labor relations with its employees and union are good.

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Cash Flow Information

3 Months Ended

Oct. 31, 2017

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 (3) months or less, which are readily convertible into cash.

Supplemental disclosure:	Three Months Ended
	October 31
	2017		2016
Interest paid, net of capitalized interest of $11,549 (2017) and $2,742 (2016)	$	87,381	$	61,994
Income taxes paid	$	78,867	$	50,946

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Common Stock

3 Months Ended

Oct. 31, 2017

Stockholders' Equity Note [Abstract]

Common Stock

10.	Common Stock:
	The Company has one class of common stock with identical voting rights and rights to liquidation.

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Accumulated Other Comprehensive Income

3 Months Ended

Oct. 31, 2017

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

11.	Accumulated Other Comprehensive Income:
	The only component of accumulated other comprehensive income is unrealized gain (loss) on available-for-sale securities. A summary of the changes in accumulated other comprehensive income for the three months ended October 31, 2017 and 2016 is as follows:

	Three Months Ended
	October 31
	2017			2016
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	368,476		$	264,541
Other comprehensive income, net of tax effect:
Unrealized gain (loss) on available-for-sale securities		103,608			(65,636	)
Tax effect		(35,000	)		22,500
Unrealized gain (loss) on available-for-sale securities, net of tax effect		68,608			(43,136	)
Amounts reclassified from accumulated other comprehensive income, net of tax effect:
Unrealized gain on available-for-sale securities reclassified		-			(1,354	)
Tax effect		-			500
Amount reclassified, net of tax effect		-			(854	)
Ending balance, net of tax effect	$	437,084		$	220,551

A summary of the line items in the Condensed Consolidated Statements of Income and Retained Earnings affected by the amounts reclassified from accumulated other comprehensive income is as follows:

Details about accumulated other comprehensive income components	Affected line item in the statement where net income is presented
----------------------------------------------------	---------------------------------------------
Other comprehensive income reclassified tax effect	Investment income Income taxes provided

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Entry into a Material Definitive Agreement

3 Months Ended

Oct. 31, 2017

Entry into a Material Definitive Agreement [Abstract]

Entry into a Material Definitive Agreement

12.

Entry into a Material Definitive Agreement:

On June 16, 2014, the Company entered into a Second Amendment of Lease (the "Amendment") with 33 Bond St. LLC ("Bond"), its landlord, for certain truck bays and approximately 1,000 square feet located at the cellar level within a garage at Livingston and Bond Street ("Premises"). Pursuant to the Amendment, (1) a lease option for the Premises was exercised extending the lease until December 8, 2043, (2) the Company, simultaneously with the execution of the Amendment, vacated the Premises so that Bond may demolish the building in which the Premises is located in order to develop and construct a new building at the location, and (3) Bond agreed to redeliver to the Company possession of the reconfigured Premises after construction. As consideration under the Amendment, Bond agreed to pay the Company a total of $3,500,000. Upon execution of the Amendment, the Company recorded $3,500,000 to deferred revenue to be amortized to revenue to temporarily vacate the premises over the expected vacate period of 36 months. Bond tendered $2,250,000 simultaneously with the execution of the Amendment, and the balance due of $1,250,000 on June 16, 2015 had been received by the Company. The Company re-occupied the premises in October 2017. In connection with the Amendment, the parties also agreed to settle a pending lawsuit in the Supreme Court of the State of New York, Kings County, Index No. 50796/13 (the "Action"), in which the Company sought, among other things, a declaratory judgment that it validly renewed the lease for the Premises, and Bond sought, among other things, a declaratory judgment that the lease expired by its terms on December 8, 2013. Pursuant to a stipulation of settlement, filed on June 16, 2014, the Action, including all claims and counterclaims, has been discontinued with prejudice, without costs or attorneys' fees to any party as against the other. The stipulation of settlement also contains general releases by both parties of all claims.

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Contingencies

3 Months Ended

Oct. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingencies

13.

Contingencies:

Due to defective workmanship and breach of contract, the Company continues to pursue damages and return in full of a $376,467 deposit paid a contractor when construction commenced to replace a roof and various other work on the Fishkill, New York building. Both the contractor and subcontractors have claimed the Company tortuously interfered with the construction contracts arguing for fees and costs which approximate $700,000. While the Company strongly disputes the claims, it is possible that the court may rule against the Company and may assess damages in amounts up to approximately $700,000. It is also possible that the court may rule in favor of the Company and that no damages would be awarded against the Company and the Company could obtain an order for the return of all or a portion of amounts previously paid. A charge to real estate operating expenses in the amount of $279,213 was recorded for the fiscal year ended July 31, 2016. Following initial court decisions, another $141,132 was charged to operating expenses on October 31, 2016 and this amount was ordered by the Court to be paid, plus interest in the amount of $48,116, in a judgement dated September 14, 2017. This amount of $189,248 was paid in October 2017. The testimony phase of the trial has been completed and the parties await further decisions and orders of the court. There are various other lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Company’s Consolidated Financial Statements. If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time.

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Marketable Securities (Tables)

3 Months Ended

Oct. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of financial assets measured at fair value on recurring basis

In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

Fair value measurements at reporting date

Description	Total October 31, 2017		Level 1		Level 2		Level 3		Total July 31, 2017		Level 1		Level 2		Level 3
Assets:
Marketable securities - available-for-sale	$	2,935,306	$	2,935,306	$	–	$	–	$	2,815,727	$	2,815,727	$	–	$	–

Schedule of classified marketable securities

As of October 31, 2017 and July 31, 2017, the Company's marketable securities were classified as follows:

	October 31, 2017								July 31, 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Noncurrent:
Available-for-sale:
Mutual funds	$	718,371	$	221,885	$	–	$	940,256	$	716,463	$	193,932	$	–	$	910,395
Equity securities		1,554,851		440,487		288		1,995,050		1,540,788		364,544		–		1,905,332
	$	2,273,222	$	662,372	$	288	$	2,935,306	$	2,257,251	$	558,476	$	–	$	2,815,727

Schedule of debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position

The Company's equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2017				July 31, 2017
	Fair Value		Less Than 12 Months		Fair Value		Less Than 12 Months
Corporate equity securities	$	14,177	$	288	$	–	$	–

Schedule of investment income

Investment income consists of the following:

	Three Months Ended
	October 31
	2017			2016
Loss on sale of marketable securities	$	(6	)	$	(7,421	)
Interest income		3,726			3,304
Dividend income		9,609			7,278
Total	$	13,329		$	3,161

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Long-Term Debt - Mortgage (Tables)

3 Months Ended

Oct. 31, 2017

Long-Term Debt – Mortgage [Abstract]

Schedule of long-term debt

			October 31, 2017				July 31, 2017
	Current Annual Interest Rate	Final Payment Date	Due Within One Year		Due After One Year		Due Within One Year		Due After One Year
Bond St. building, Brooklyn, NY	3.54%	2/1/2020	$	164,044	$	5,425,950	$	162,569	$	5,467,110
Less: Deferred financing costs				–		51,484		–		57,202
Total			$	164,044	$	5,374,466	$	162,569	$	5,409,908

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Property and Equipment - at cost (Tables)

3 Months Ended

Oct. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	October 31		July 31
	2017		2017
Property:
Buildings and improvements	$	81,935,951	$	80,825,601
Improvements to leased property		1,478,012		1,478,012
Land		6,067,805		6,067,805
Construction in progress		559,687		644,809
		90,041,455		89,016,227
Less accumulated depreciation		40,069,683		39,648,642
Property - net		49,971,772		49,367,585
Fixtures and equipment and other:
Fixtures and equipment		144,545		144,545
Other fixed assets		193,015		193,015
		337,560		337,560
Less accumulated depreciation		231,155		220,056
Fixtures and equipment and other - net		106,405		117,504
Property and equipment - net	$	50,078,177	$	49,485,089

Schedule of property and equipment construction in progress

Construction in progress includes:
	October 31		July 31
	2017		2017
Building improvements at 9 Bond Street in Brooklyn, NY	$	46,523	$	644,809
Building improvements at 25 Elm Place in Brooklyn, NY		30,266		–
Building improvements at Jamaica, NY building		422,874		–
Building improvements at Fishkill, NY building		60,024		–
	$	559,687	$	644,809

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Cash Flow Information (Tables)

3 Months Ended

Oct. 31, 2017

Supplemental Cash Flow Elements [Abstract]

Schedule of cash flow information

Supplemental disclosure:	Three Months Ended
	October 31
	2017		2016
Interest paid, net of capitalized interest of $11,549 (2017) and $2,742 (2016)	$	87,381	$	61,994
Income taxes paid	$	78,867	$	50,946

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Oct. 31, 2017

Accumulated Other Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income

A summary of the changes in accumulated other comprehensive income for the three months ended October 31, 2017 and 2016 is as follows:

	Three Months Ended
	October 31
	2017			2016
	(Unaudited)			(Unaudited)
Beginning balance, net of tax effect	$	368,476		$	264,541
Other comprehensive income, net of tax effect:
Unrealized gain (loss) on available-for-sale securities		103,608			(65,636	)
Tax effect		(35,000	)		22,500
Unrealized gain (loss) on available-for-sale securities, net of tax effect		68,608			(43,136	)
Amounts reclassified from accumulated other comprehensive income, net of tax effect:
Unrealized gain on available-for-sale securities reclassified		-			(1,354	)
Tax effect		-			500
Amount reclassified, net of tax effect		-			(854	)
Ending balance, net of tax effect	$	437,084		$	220,551

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Accounting Records and Use of Estimates (Narrative) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Jul. 31, 2017
Operating Loss Carryforwards [Line Items]
Period over which state capital-based tax will be phased out	7 years
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards		$ 5,366,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards		10,107,000
City Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards		$ 8,274,000

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Income Per Share of Common Stock (Details) - shares	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Leases [Abstract]
Average common shares outstanding	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 ($)	Oct. 31, 2017	Jul. 31, 2017
Marketable securities -
available-for-sale	$ 2,935,306	$ 2,815,727
Fair Value, Inputs, Level 1 [Member]
Marketable securities -
available-for-sale	2,935,306	2,815,727
Fair Value, Inputs, Level 2 [Member]
Marketable securities -
available-for-sale
Fair Value, Inputs, Level 3 [Member]
Marketable securities -
available-for-sale

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Marketable Securities (Schedule of classified marketable securities) (Details) - USD ($)	Oct. 31, 2017	Jul. 31, 2017
Fair Value	$ 2,935,306	$ 2,815,727
Noncurrent [Member]
Cost	2,273,222	2,257,251
Gross Unrealized Gains	662,372	558,476
Gross Unrealized Losses	288
Fair Value	2,935,306	2,815,727
Noncurrent [Member] | Mutual Funds [Member]
Cost	718,371	716,463
Gross Unrealized Gains	221,885	193,932
Gross Unrealized Losses
Fair Value	940,256	910,395
Noncurrent [Member] | Corporate Equity Securities [Member]
Cost	1,554,851	1,540,788
Gross Unrealized Gains	440,487	364,544
Gross Unrealized Losses	288
Fair Value	$ 1,995,050	$ 1,905,332

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Marketable Securities (Schedule of Investment Securities In Continuous Unrealized Loss Position) (Details) - Corporate Equity Securities [Member] - USD ($)	Oct. 31, 2017	Jul. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Investment securities, continuous unrealized loss position, Fair Value	$ 14,177
Investment securities, continuous unrealized loss position, Less Than 12 Months	$ 288

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Marketable Securities (Schedule of investment income) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Loss on sale of marketable securities	$ (6)	$ (7,421)
Interest income	3,726	3,304
Dividend income	9,609	7,278
Total	$ 13,329	$ 3,161

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Financial Instruments and Credit Risk Concentrations (Details)	3 Months Ended		12 Months Ended
	Oct. 31, 2017 USD ($) tenants	Oct. 31, 2016	Jul. 31, 2017 USD ($)
Concentration Risk [Line Items]
Irrevocable letter of credit | $	$ 230,000		$ 230,000
Number of tenants | tenants	50
Customer One [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	17.78%	18.66%
Customer Two [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	14.61%	15.10%
Customer Three [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk	12.99%	10.52%

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Long-Term Debt - Mortgage (Schedule of long-term debt) (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Jan. 09, 2015
Less: Deferred financing costs
Due After One Year, Total	$ 5,374,466	$ 5,409,908
Bond St.Building Brooklyn NY Two [Member]
Mortgage:
Due Within One Year	164,044	162,569
Due After One Year	5,425,950	5,467,110
Less: Deferred financing costs
Due Within One Year
Due After One Year	51,484	57,202
Due Within One Year, Total	164,044	162,569
Due After One Year, Total	$ 5,374,466	$ 5,409,908
Current Annual Interest Rate	3.54%	3.54%	3.54%
Final Payment Date	Feb. 01, 2020

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Long-Term Debt - Mortgage (Narrative) (Details) - Bond St.Building Brooklyn NY Two [Member] - USD ($)	Jan. 09, 2015	Oct. 31, 2017	Jul. 31, 2017
Closed bank liabilities	$ 6,000,000
Additional loans	652,274
Amount outstanding	$ 5,347,726
Term of loan	5 years
Amortization period of loan	25 years
Interest rate, percent	3.54%	3.54%	3.54%

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Property and Equipment - at cost (Details) - USD ($)	Oct. 31, 2017	Jul. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment - net	$ 50,078,177	$ 49,485,089
Construction in progress	559,687	644,809
Building Improvements at 9 Bond Street in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	46,523	644,809
Building improvements at 25 Elm Place in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	30,266
Building improvements at Jamaica, NY building [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	422,874
Building improvements at Fishkill, NY building [Member]
Property, Plant and Equipment [Line Items]
Construction in progress	60,024
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	81,935,951	80,825,601
Improvements to Leased Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,478,012	1,478,012
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	6,067,805	6,067,805
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	559,687	644,809
Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	90,041,455	89,016,227
Less accumulated depreciation	40,069,683	39,648,642
Property and equipment - net	49,971,772	49,367,585
Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	144,545	144,545
Other Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	193,015	193,015
Fixtures and equipment and other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	337,560	337,560
Less accumulated depreciation	231,155	220,056
Property and equipment - net	$ 106,405	$ 117,504

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Employees' Retirement Plan (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Retirement Benefits [Abstract]
Pension contributions	$ 104,432	$ 102,509
Employer contributions	$ 15,599	$ 12,611
Minimum contribution rate	9.10%

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Cash Flow Information (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Interest paid, net of capitalized interest of $11,549 (2017) and $2,742 (2016)	$ 87,381	$ 61,994
Income taxes paid	78,867	50,946
Capitalized interest	$ 11,549	$ 2,742

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Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Accumulated Other Comprehensive Income [Abstract]
Beginning balance, net of tax effect	$ 368,476	$ 264,541
Other comprehensive income, net of tax effect:
Unrealized gain (loss) on available-for-sale securities	103,608	(65,636)
Tax effect	(35,000)	22,500
Unrealized gain (loss) on available-for-sale securities, net of tax effect	68,608	(43,136)
Amounts reclassified from accumulated other comprehensive income, net of tax effect:
Unrealized gain on available-for-sale securities reclassified		(1,354)
Tax effect		500
Amount reclassified, net of tax effect		(854)
Ending balance, net of tax effect	$ 437,084	$ 220,551

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Entry into a Material Definitive Agreement (Details) - Thirty Three Bond Street Llc [Member]	Jun. 16, 2015 USD ($)
Related Party Transaction [Line Items]
Deferred revenue	$ 3,500,000
Tendered amount with execution of the Amendment	2,250,000
Balance due	$ 1,250,000

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Contingencies (Details) - Fishkill, New York Property [Member] - USD ($)		1 Months Ended	3 Months Ended		12 Months Ended
	Sep. 14, 2017	Oct. 31, 2017	Oct. 31, 2017	Oct. 31, 2016	Jul. 31, 2016
Damages filed			$ 376,467
Commitment to replace roof		$ 700,000	$ 700,000
Charge to operations				$ 141,132	$ 279,213
Interest paid	$ 48,116
Amount paid total		$ 189,248