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DOCUMENT AND ENTITY INFORMATION
6 Months Ended
Jan. 31, 2020
Mar. 05, 2020
Document And Entity Information [Abstract]
Entity Registrant Name MAYS J W INC
Entity Central Index Key 0000054187
Document Type 10-Q
Document Period End Date Jan 31, 2020
Document Fiscal Period Focus Q2
Amendment Flag false
Current Fiscal Year End Date --07-31
Entity Filer Category Non-accelerated Filer
Entity Small Business true
Entity Emerging Growth Company false
Document Fiscal Year Focus 2020
Entity Common Stock, Shares Outstanding 2,015,780
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Shell Company false
Entity Incorporation State Country Code NY
Entity File Number 11-1059070
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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Jan. 31, 2020
Jul. 31, 2019
ASSETS
Property and Equipment - Net (Notes 5 and 6) $ 45,522,450 $ 53,129,303
Current Assets:
Cash and cash equivalents (Notes 4 and 10) 3,146,214 4,117,647
Receivables (Note 4) 363,562 402,154
Income taxes refundable    9,683
Restricted cash 145,642 181,193
Prepaid expenses 2,063,854 2,159,701
Total current assets 5,719,272 6,870,378
Other Assets:
Deferred charges 3,776,403 3,729,818
Accumulated amortization (1,293,596) (1,153,996)
Net 2,482,807 2,575,822
Operating lease right-of-use assets (Notes 1, 5, 7 and 10) 28,220,710   
Restricted cash 762,464 964,884
Unbilled receivables (Notes 4 and 8) 1,625,758 1,668,461
Marketable securities (Notes 3 and 4) 3,770,270 3,580,227
Total other assets 36,862,009 8,789,394
TOTAL ASSETS 88,103,731 68,789,075
Long-Term Liabilities:
Mortgage payable (Note 6) 4,215,436   
Security deposits payable 667,521 690,422
Payroll and other accrued liabilities 149,647 448,939
Operating lease liabilities (Notes 1, 7 and 10) 18,317,271   
Deferred income taxes (Note 1) 5,123,000 5,096,000
Total long-term liabilities 28,472,875 6,235,361
Current Liabilities:
Accounts payable 106,200 30,964
Income taxes payable 8,912   
Payroll and other accrued liabilities 2,464,204 2,426,535
Other taxes payable 4,600 8,847
Operating lease liabilities (Notes 1, 7 and 10) 1,221,258   
Current portion of mortgage payable (Note 6) 989,764 5,287,162
Current portion of security deposits payable 156,642 192,193
Total current liabilities 4,951,580 7,945,701
TOTAL LIABILITIES 33,424,455 14,181,062
Shareholders' Equity:
Common stock, par value $1 each share (shares - 5,000,000 authorized; 2,178,297 issued) 2,178,297 2,178,297
Additional paid in capital 3,346,245 3,346,245
Retained earnings 50,442,586 50,371,323
Stockholders' Equity before Treasury Stock 55,967,128 55,895,865
Common stock held in treasury, at cost - 162,517 shares at January 31, 2020 and at July 31, 2019 (Notes 2 and 11) (1,287,852) (1,287,852)
Total shareholders' equity 54,679,276 54,608,013
Contingencies (Note 12)      
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 88,103,731 $ 68,789,075
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jan. 31, 2020
Jul. 31, 2019
Common stock, par value $ 1 $ 1
Common stock, shares authorized 5,000,000 5,000,000
Common stock, shares issued 2,178,297 2,178,297
Treasury stock, shares 162,517 162,517
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Revenues
Rental income (Notes 1, 4 and 8) $ 5,039,060 $ 5,276,699 $ 10,074,975 $ 10,437,871
Recovery of real estate taxes    45,026    45,026
Total revenues 5,039,060 5,321,725 10,074,975 10,482,897
Expenses
Real estate operating expenses 3,514,631 3,116,962 6,763,225 6,093,606
Administrative and general expenses 1,311,011 1,305,871 2,526,646 3,048,807
Depreciation (Note 5) 394,977 472,987 782,387 939,284
Loss on disposition of property and equipment 54,121    54,121   
Total expenses 5,274,740 4,895,820 10,126,379 10,081,697
Income (loss) from operations before investment income, interest expense and income taxes (235,680) 425,905 (51,404) 401,200
Investment income and interest expense:
Investment income (Note 3) 75,915 134,676 140,918 157,111
Change in fair value of marketable securities (Notes 1 and 3) 82,536 (108,158) 63,250 (142,217)
Interest expense (Notes 6 and 10) (27,052) (49,463) (54,501) (89,328)
Total investment income and interest expense 131,399 (22,945) 149,667 (74,434)
Income (loss) from operations before income taxes (104,281) 402,960 98,263 326,766
Income taxes provided (benefit) (47,000) 109,000 27,000 112,000
Net income (loss) (57,281) 293,960 71,263 214,766
Retained earnings, beginning of period 50,499,867 48,777,328 50,371,323 48,369,386
Reclassification of unrealized gain on investments to retained earnings (Note 1)          487,136
Retained earnings, end of period $ 50,442,586 $ 49,071,288 $ 50,442,586 $ 49,071,288
Income (loss) per common share (Note 2) $ (0.02) $ 0.15 $ 0.04 $ 0.11
Dividends per share            
Average common shares outstanding 2,015,780 2,015,780 2,015,780 2,015,780
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $)
Common Stock
Additional Paid In Capital
Unrealized Gain on Marketable securities [Member]
Retained Earnings
Common Stock Held in Treasury
Total
Balance at Jul. 31, 2018 $ 2,178,297 $ 3,346,245 $ 487,136 $ 48,369,386 $ (1,287,852) $ 53,093,212
Reclassification of unrealized gains on marketable securities to retained earnings (Note 1)       (487,136) 487,136      
Net income (loss)          214,766    214,766
Balance at Jan. 31, 2019 2,178,297 3,346,245    49,071,288 (1,287,852) 53,307,978
Balance at Oct. 31, 2018 2,178,297 3,346,245    48,777,328 (1,287,852) 53,014,018
Net income (loss)          293,960    293,960
Balance at Jan. 31, 2019 2,178,297 3,346,245    49,071,288 (1,287,852) 53,307,978
Balance at Jul. 31, 2019 2,178,297 3,346,245    50,371,323 (1,287,852) 54,608,013
Net income (loss)          71,263    71,263
Balance at Jan. 31, 2020 2,178,297 3,346,245    50,442,586 (1,287,852) 54,679,276
Balance at Oct. 31, 2019 2,178,297 3,346,245    50,499,867 (1,287,852) 54,736,557
Net income (loss)          (57,281)    (57,281)
Balance at Jan. 31, 2020 $ 2,178,297 $ 3,346,245    $ 50,442,586 $ (1,287,852) $ 54,679,276
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Cash Flows From Operating Activities:
Net income $ 71,263 $ 214,766
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 782,387 939,284
Loss on disposition of property and equipment 54,121   
Amortization of deferred charges 139,600 163,280
Operating lease expense in excess of cash payments 559,248   
Deferred finance costs included in interest expense 15,401 11,438
Net realized and unrealized (gain) loss on sale of marketable securities (110,231) 95,802
Other assets - unbilled receivables 42,703 (69,091)
Other assets - deferred charges (46,585) (553,137)
Deferred income taxes 27,000 112,000
Changes in:
Receivables 38,592 (126,680)
Real estate taxes refundable    (45,025)
Income taxes refundable 9,683 3,028
Prepaid expenses 95,847 129,065
Accounts payable 75,236 (28,105)
Payroll and other accrued liabilities (Notes 1 and 10) 687,282 231,108
Income taxes payable 8,912   
Other taxes payable (4,247) (4,520)
Cash provided by operating activities 2,446,212 1,073,213
Cash Flows From Investing Activities:
Acquisition of property and equipment (3,419,989) (1,699,924)
Marketable securities:
Receipts from sales 447,236 219,744
Payments for purchases (527,048) (296,660)
Cash (used) by investing activities (3,499,801) (1,776,840)
Cash Flows From Financing Activities:
Borrowing - Mortgage debt 144,080   
Increase (decrease) - security deposits payable (58,452) 9,453
Mortgage and other debt payments (122,872) (82,698)
Mortgage financing costs paid (118,571)   
Cash (used) by financing activities (155,815) (73,245)
Decrease in cash, cash equivalents and restricted cash (1,209,404) (776,872)
Cash, cash equivalents and restricted cash at beginning of period 5,263,724 6,879,623
Cash, cash equivalents and restricted cash at end of period (Note 10) $ 4,054,320 $ 6,102,751
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Accounting Records and Use of Estimates
6 Months Ended
Jan. 31, 2020
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, incremental borrowing rates and recognition of renewal options for operating lease right-of-use assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. The estimates that we make include allowance for doubtful accounts, depreciation, income tax assets and liabilities, fair value of marketable securities and revenue recognition. Estimates are based on historical experience where applicable or other assumptions that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from those estimates under different assumptions or conditions.

The interim financial statements are prepared pursuant to the requirements for reporting on Form 10-Q. The July 31, 2019 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, 2019. 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, 2020.

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 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.

Property and Equipment

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

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

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

The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At January 31, 2020 and July 31, 2019, there were no impairments of its property and equipment.


              

Deferred Charges

Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed.

Leases - Lessor Revenue

Property held for leasing in the Company’s real estate rental operations is disclosed in Note 5. Rent is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, is recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned.

Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. Management has determined that no allowance for uncollected receivables is considered necessary. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectability become known. Collectability issues include circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Due to the surrender of a portion of a tenant’s space, the Company reported a bad debt expense of $118,238 for the year ended July 31, 2019. Bad debt expense was $40,292 for the six months ended January 31, 2020 as a result of an early lease termination.

Leases - Lessee

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

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

Taxes

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

The Company had a federal net operating loss carryforward approximating $4,002,346 as of July 31, 2019 available to offset future taxable income. As of July 31, 2019, the Company had unused state and city net operating loss carryforwards of approximately $10,170,071 for state and $8,274,000 for city, available to offset future state and city taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035.


              

New York State and New York City taxes are calculated using the higher of taxes based on income or the respective capital- based franchise taxes. Beginning with the Company’s tax year ended July 31, 2016, changes in the law required the state capital-based tax will be phased out over a 7-year period. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes.

Reclassification:

The condensed consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the six months ended January 31, 2020. These reclassifications have no effect on net income or loss as previously reported

Recently adopted accounting standards:

In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities.

In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.

In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842”, which provides amendments and clarification to ASU 2016-12 based on the FASB’s interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements”, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors,” which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements”, which provides amendments for issues brought to the Board’s attention through its interactions with stakeholders. The issues identified are as follows. 1. Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, 2. Presentation on the statement of cash flows-sales-type and direct financing leases, 3. Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.


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

          

1.

The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings.

                  

2.

As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard.

          

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

             
Operating lease right-of-use assets of $27.1 million.
     
Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Company’s incremental borrowing rate of 3.88%.
     
The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). Upon lease termination in 2029, the building and all improvements will be turned over to the landlord as property owner.
     
The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million.

 

The Company’s lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Company’s lease revenue as lessor were not significant.

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Income Per Share of Common Stock
6 Months Ended
Jan. 31, 2020
Earnings Per Share [Abstract]
Income Per Share of Common Stock

2.

Income Per Share of Common Stock:

Income per share has been computed by dividing the net income for the periods by the weighted average number of shares of common stock outstanding during the periods, adjusted for the purchase of treasury stock. Shares used in computing income per share were 2,015,780 for the six months ended January 31, 2020 and January 31, 2019.

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Marketable Securities
6 Months Ended
Jan. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Marketable Securities

3.

Marketable Securities:

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

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

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

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


          

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

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at January 31, 2020 and July 31, 2019.

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

Total Total
January 31, July 31,
           Description     2020     Level 1     Level 2     Level 3     2019     Level 1     Level 2     Level 3
Assets:    
Marketable securities $ 3,770,270 $   3,770,270 $ $ $   3,580,227 $   3,580,227 $ $
          

As of January 31, 2020 and July 31, 2019, the Company's marketable securities were classified as follows:

 
January 31, 2020 July 31, 2019
Gross Gross Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Fair
              Cost    Gains    Losses    Value    Cost    Gains    Losses    Value
Noncurrent:
Mutual funds 914,417 253,357 $ 1,167,774 845,306 264,425 $ 1,109,731
Equity securities 1,713,839 888,657 2,602,496 1,656,156 814,340 2,470,496
$ 2,628,256 $ 1,142,014 $ $ 3,770,270 $ 2,501,462 $ 1,078,765 $ $ 3,580,227
          

Investment income consists of the following:

 
Three Months Ended Six Months Ended
January 31 January 31
                 2020       2019       2020       2019
Gain on sale of marketable securities $      $      46,415 $      46,981 $      46,415
Interest income 2,772 13,880 13,050 27,441
Dividend income 73,143 74,381 80,887 83,255
Total $ 75,915 $ 134,676 $ 140,918 $ 157,111
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Financial Instruments and Credit Risk Concentrations
6 Months Ended
Jan. 31, 2020
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 15.80%, another tenant accounted for 14.90% and a third tenant accounted for 12.29% of rental income during the six months ended January 31, 2020. The six months ended January 31, 2019 had one tenant account for 18.27%, another tenant account for 14.25% and a third tenant account for 11.69% of rental income. No other tenant accounted for more than 10% of rental income during the same periods.

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Property and Equipment
6 Months Ended
Jan. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment

5.

Property and Equipment:

All buildings owned by the Company are held for leasing except for a small portion used for Company offices.

          
January 31 July 31
                 2020       2019
Land $      6,067,805   $      6,067,805  
     
Buildings held for leasing    
Buildings and improvements 66,906,987   86,461,353  
Improvements to leased property   1,478,012  
Construction in progress 4,370,985   2,325,940  
71,277,972   90,265,305  
Accumulated depreciation (31,943,384 ) (43,310,270 )
Buildings - net 39,334,588   46,955,035  
     
Fixtures and equipment and other:    
Fixtures and equipment 144,545   144,545  
Other fixed assets 162,010   164,066  
306,555   308,611  
Accumulated depreciation (186,498 ) (202,148 )
Fixtures and equipment and other - net 120,057   106,463  
     
Property and equipment - net $ 45,522,450   $ 53,129,303  
     
Construction in progress includes:    
                   
January 31   July 31  
2020   2019  
Building improvements at 9 Bond Street in Brooklyn, NY $   $ 29,132  
Building improvements at 25 Elm Place in Brooklyn, NY 426,533   426,533  
Improvements to leased property   303,975  
Building improvements at Fishkill, NY building 3,944,452   1,566,300  
$ 4,370,985   $ 2,325,940  
          

Leased property included in the Company’s real estate rental operations consists of the following:

 
                 Estimated Useful Life       January 31, 2020
Operating lease right-of-use-assets Lease Terms – 7 to 54 years $         29,384,531
Accumulated Amortization (1,163,821 )
Operating lease right-of-use-assets $ 28,220,710
          

The initial recording of operating lease right-of-use assets on August 1, 2019 includes adjustments of $10,190,334, net of accumulated amortization, primarily relating to building and improvements included in a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). The ground lease required the Company to construct a building during the lease period. Upon lease termination in 2029, the building and all improvements will be turned over to the landlord as property owner.

Until this lease agreement with the landlord terminates in 2029, the Company remains solely responsible for the building, improvements and maintenance of the property included in this lease and is solely entitled to tax depreciation and other tax deductions.

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Long-Term Debt - Mortgage
6 Months Ended
Jan. 31, 2020
Debt Disclosure [Abstract]
Long-Term Debt - Mortgage

6.

Long-Term Debt – Mortgage:

          
January 31, 2020   July 31, 2019
Current    
Annual Final Due Due Due Due
Interest Payment Within After Within After
                 Rate       Date       One Year       One Year       One Year       One Year
Bond St. building, Brooklyn, NY 4.375% 12/1/2024 $      989,764 $      4,330,054   $      5,298,610   $     
Deferred financing costs (114,618 ) (11,448 )
Total $ 989,764 $ 4,215,436   $ 5,287,162   $

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

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Operating Leases
6 Months Ended
Jan. 31, 2020
Leases [Abstract]
Operating Leases

7.

Operating Leases

Lessor

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

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


           Three Months Ended       Six Months Ended
January 31 January 31
2020       2019 2020       2019
Base rent - fixed $      4,515,930 $      4,776,605 $      9,052,029 $      9,475,490
Reimbursements of common area costs 163,775 199,485 313,435 364,073
Non-lease components (real estate taxes) 359,355 300,609 709,511 598,308
Rental income $      5,039,060 $      5,276,699 $      10,074,975 $      10,437,871

Future minimum non-cancelable rental income for leases with initial or remainint terms of one year or more is as follows:

          
Under ASC 842
As of January 31, 2020
Company
Owned Leased
           Fiscal Year       Property       Property       Total
For the remainder of 2020 $      5,019,356 $      3,060,142 $      8,079,498
2021 9,521,380 5,009,044 14,530,424
2022 7,878,165 4,039,069 11,917,234
2023 7,399,288 3,270,666 10,669,954
2024 6,483,940 2,987,050 9,470,990
2025 7,727,830 2,409,346 10,137,176
After 2025 44,904,996 12,433,194 57,338,190
Total $ 88,934,955 $ 33,208,511 $ 122,143,466
 
Under ASC 840
As of July 31, 2019
Company
Owned Leased
Fiscal Year Property Property Total
2020 $ 10,038,712 $ 6,120,283 $ 16,158,995
2021 9,521,380 5,009,044 14,530,424
2022 7,878,165 4,039,069 11,917,234
2023 7,399,288 3,270,666 10,669,954
2024 6,483,940 2,987,050 9,470,990
After 2024 52,632,826 14,842,540 67,475,366
Total $ 93,954,311 $ 36,268,652 $ 130,222,963

Lessee

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

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

          
                 Three Months Ended       Six Months Ended
January 31, 2020 January 31, 2020
Sublease income $                       1,766,609 $             3,521,861
Operating lease cost (760,191 ) (1,510,057 )
Excess of sublease income over lease cost $             1,006,418 $             2,011,804
 

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of January 31, 2020:

          
           January 31, 2020       $        1,954,899
January 31, 2021 2,066,205
January 31, 2022 2,100,129
January 31, 2023 2,116,031
January 31, 2024 2,134,695
Thereafter 14,420,464
Total undiscounted cash flows 24,792,423
Less: present value discount (5,253,894 )
Total Lease Liabilities $ 19,538,529
 
Other information:
Operating cash flows from operating leases $ 950,809
Weighted-average remaining lease term - operating leases 12.16 years
Weighted-average discount rate - operating leases 3.90 %
 

The following table represents future minimum lease payments under non-cancelable operating leases at July 31, 2019 as presented in the Company's Annual Report on Form 10-K:

          
           Operating
Fiscal Year       Leases
2020 $      1,897,318
2021 1,941,494
2022 2,057,814
2023 2,072,000
2024 2,086,697
After 2024 11,701,293
Total required* $ 21,756,616
          

* Minimum payments have not been reduced by minimum sublease rentals of $36,268,652 under operating leases due in the future under non-cancelable leases.


Rent payments related to an affiliate principally owned by a director of the Company totaled $246,812 and $493,624 for the three and six months, respectively, for each of the periods ending January 31, 2020 and 2019. The rental payments are for two leases which expire May 31, 2029 and April 30, 2031, respectively.

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Unbilled Receivables and Rental Income
6 Months Ended
Jan. 31, 2020
Unbilled Receivables And Rental Income
Unbilled Receivables and Rental Income

8.

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
6 Months Ended
Jan. 31, 2020
Retirement Benefits [Abstract]
Employees' Retirement Plan

9.

Employees' Retirement Plan:

The Company sponsors a noncontributory Money Purchase Plan covering substantially all of its non-union employees. Operations were charged $146,183 and $247,586 as contributions to the Plan for the three and six months ended January 31, 2020, respectively, and $146,314 and $252,773 as contributions to the plan for the three and six months ended January 31, 2019, 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 $14,807 and $31,820 for the three and six months ended January 31, 2020, respectively, and $15,514 and $29,459 as contributions to the plan for the three and six months ended January 31, 2019, 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, 2018
Certified zone status: Critical and declining status
Status determination date: January 1, 2018
Plan used extended amortization provisions in status calculation: Yes
Minimum required contribution: Yes
Employer contributing greater than 5% of Plan contributions for year ended December 31, 2017: Yes
Rehabilitation plan implemented: Yes
Employer subject to surcharge: Yes
Contract expiration date: November 30, 2022
          

For the plan years 2019-2022, under the pension fund’s rehabilitation plan, the Company agreed to pay a minimum contribution rate equal to 9.1% of the prior year total contribution rate. The Company has 29 employees and has a contract, expiring November 30, 2022, with a union covering rates of pay, hours of employment and other conditions of employment for approximately 21% of its employees. The Company considers that its labor relations with its employees and union are good.

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Cash Flow Information
6 Months Ended
Jan. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Cash Flow Information

10.

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. The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented on the consolidated statement of cash flows:

          
January 31
                 2020       2019
Cash and cash equivalents $      3,146,214 $      4,469,048
Restricted cash, tenant security deposits 808,663 1,341,824
Restricted cash, escrow 71,603 258,399
Restricted cash, other 27,840 33,480
$ 4,054,320 $ 6,102,751
 

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

          
           Supplemental disclosure: Six Months Ended
January 31
      2020       2019
Cash Flow Information
Interest paid, net of capitalized interest of $64,759 (2020) and $20,155 (2019) $      35,210 $      78,146
Income taxes paid (refunded)   (23,041 )
 
Non-cash information
Recognition of operating lease right-of-use assets $ 29,384,531
Recognition of operating lease liabilities 20,143,101
  Mortgage refinance   5,255,920        
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Common Stock
6 Months Ended
Jan. 31, 2020
Stockholders' Equity Note [Abstract]
Common Stock

11.

Common Stock:

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

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Contingencies
6 Months Ended
Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies

12.

Contingencies:

On November 2, 2018 the Company settled the lawsuit relating to defective workmanship and breach of contract to replace a roof and various other work on its Fishkill, New York building. The Company agreed to pay $635,000 to the Plaintiffs, D. Owens Electric, Inc., Mid-Hudson Structural Concrete, Inc. d/b/a Recycle Depot, and BSB Construction, Inc., in settlement of the claims made against the Company. This settlement resolves the actions and disputes referred to in the Decision and Order dated October 30, 2018 of the Supreme Court of the State of New York, County of Dutchess. The $635,000 was paid in full on November 6, 2018.

There are various other lawsuits and claims pending against the Company. It is the opinion of management that the resolution of these matters will not have a material adverse effect on the Company’s Consolidated Financial Statements.

If the Company sells, transfers, disposes of or demolishes 25 Elm Place, Brooklyn, New York, then the Company may be liable to create a condominium unit for the loading dock. The necessity of creating the condominium unit and the cost of such condominium unit cannot be determined at this time.

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Accounting Records and Use of Estimates (Policies)
6 Months Ended
Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounting Records and Use of Estimates

Accounting Records and Use of Estimates:

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

The interim financial statements are prepared pursuant to the requirements for reporting on Form 10-Q. The July 31, 2019 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, 2019. 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, 2020.

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 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.

Property and Equipment

Property and Equipment

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

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

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

The Company reviews long-lived assets for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. At January 31, 2020 and July 31, 2019, there were no impairments of its property and equipment.

Deferred Charges

Deferred Charges

Deferred charges consist principally of costs incurred in connection with the leasing of property to tenants. Such costs are amortized over the related lease periods, ranging from 1 to 21 years, using the straight-line method. If a lease is terminated early, such costs are expensed.

Leases - Lessor Revenue

Leases - Lessor Revenue

Property held for leasing in the Company’s real estate rental operations is disclosed in Note 5. Rent is recognized from tenants under executed leases no later than on an established date or on an earlier date if the tenant should commence conducting business. Unbilled receivables represent the excess of scheduled rental income recognized on a straight-line basis over rental income as it becomes receivable according to the provisions of the lease. The effect of lease modifications that result in rent relief or other credits to tenants, including any retroactive effects relating to prior periods, is recognized in the period when the lease modification is signed. At the time of the lease modification, we assess the realizability of any accrued but unpaid rent and amounts that had been recognized as revenue in prior periods. As lessor, we have elected to combine the lease components (base rent), non-lease components (reimbursements of common area maintenance expenses) and reimbursements of real estate taxes and account for the components as a single lease component in accordance with ASC 842. If the amounts are not determined to be realizable, the accrued but unpaid rent is written off. Accounts receivable are recognized in accordance with lease agreements at its net realizable value. Rental payments received in advance are deferred until earned.

Based upon its periodic assessment of the quality of the receivables, management uses its historical knowledge of the tenants and industry experience to determine whether a reserve or write-off is required. Management has determined that no allowance for uncollected receivables is considered necessary. The Company uses specific identification to write-off receivables to bad debt expense in the period when issues of collectability become known. Collectability issues include circumstances when a tenant indicates their intention to vacate the property without paying, or when tenant litigation or bankruptcy proceedings are not expected to result in full payment. Due to the surrender of a portion of a tenant’s space, the Company reported a bad debt expense of $118,238 for the year ended July 31, 2019. Bad debt expense was $40,292 for the six months ended January 31, 2020 as a result of an early lease termination.

Leases - Lessee

Leases - Lessee

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

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

Taxes

Taxes

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

The Company had a federal net operating loss carryforward approximating $4,002,346 as of July 31, 2019 available to offset future taxable income. As of July 31, 2019, the Company had unused state and city net operating loss carryforwards of approximately $10,170,071 for state and $8,274,000 for city, available to offset future state and city taxable income. The net operating loss carryforwards will begin to expire, if not used, in 2035.


              

New York State and New York City taxes are calculated using the higher of taxes based on income or the respective capital- based franchise taxes. Beginning with the Company’s tax year ended July 31, 2016, changes in the law required the state capital-based tax will be phased out over a 7-year period. New York City taxes will be based on capital for the foreseeable future. Capital-based franchise taxes are recorded to administrative and general expense. State tax amounts in excess of the capital-based franchise taxes are recorded to income tax expenses. Due to both the application of the capital-based tax and due to the possible absence of city taxable income, the Company does not record city deferred taxes.

Reclassification

Reclassification:

The condensed consolidated financial statements for prior years reflect certain reclassifications to conform with classifications adopted in the six months ended January 31, 2020. These reclassifications have no effect on net income or loss as previously reported

Recently adopted accounting standards

Recently adopted accounting standards:

In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. ASU No. 2016-01 is effective for interim and annual periods beginning after December 15, 2017. We adopted this standard effective August 1, 2018 and recorded a cumulative effect adjustment to increase opening retained earnings at August 1, 2018 by $487,136 as required for equity investments recorded at fair value, formerly available-for-sale securities.

In November 2016, the FASB issued ASU 2016-18, “Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. ASU 2016-18 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this standard effective August 1, 2018 with retrospective application to our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 is intended to increase transparency and comparability among organizations in accounting for leasing arrangements. This guidance establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.

In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842”, which provides amendments and clarification to ASU 2016-12 based on the FASB’s interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11 “Leases (Topic 842): Targeted Improvements”, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors,” which clarifies how to apply the leases standard when accounting for sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements”, which provides amendments for issues brought to the Board’s attention through its interactions with stakeholders. The issues identified are as follows. 1. Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, 2. Presentation on the statement of cash flows-sales-type and direct financing leases, 3. Transition disclosures related to Topic 250, Accounting Changes and Error Corrections. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.

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

          

1.

The Company applied the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the initial period of adoption. Upon adoption on August 1, 2019, the Company did not have an adjustment to opening retained earnings.

                  

2.

As lessee and lessor, the Company has elected not to reassess lease classifications and all leases will continue to be classified as operating leases under the new standard.

          

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

             
Operating lease right-of-use assets of $27.1 million.
     
Operating lease liabilities of approximately $17.9 million, based on the net present value of remaining minimum rental payments, discounted using the Company’s incremental borrowing rate of 3.88%.
     
The initial recording of operating lease right-of-use assets of $27.1 million includes adjustments of approximately $10.2 million primarily relating to building and improvements, net of accumulated depreciation, required pursuant to a ground lease with an affiliate, principally owned by a director of the Company (“landlord”). Upon lease termination in 2029, the building and all improvements will be turned over to the landlord as property owner.
     
The initial operating lease liability of $17.9 million includes an adjustment of remaining accrued rent of approximately $.95 million.

 

The Company’s lessor accounting remains similar under Topic 842 but updated to align with certain changes to the lessee model and the new revenue recognition standard (ASU 2014-09). Upon adoption of the lease standards on August 1, 2019, changes in accounting for the Company’s lease revenue as lessor were not significant.

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Accounting Records and Use of Estimates (Tables)
6 Months Ended
Jan. 31, 2020
Accounting Policies [Abstract]
Schedule of property and equipment depreciation and amortization period

Lives used to determine depreciation and amortization are generally as follows:

       
               Buildings and improvements       18-40 years
    Improvements to leased property 3-10 years
    Fixtures and equipment 7-12 years
    Other 3-5 years
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Marketable Securities (Tables)
6 Months Ended
Jan. 31, 2020
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

Total Total
January 31, July 31,
           Description     2020     Level 1     Level 2     Level 3     2019     Level 1     Level 2     Level 3
Assets:    
Marketable securities $ 3,770,270 $   3,770,270 $ $ $   3,580,227 $   3,580,227 $ $
Schedule of classified marketable securities

As of January 31, 2020 and July 31, 2019, the Company's marketable securities were classified as follows:

 
January 31, 2020 July 31, 2019
Gross Gross Gross Gross
Unrealized Unrealized Fair Unrealized Unrealized Fair
              Cost    Gains    Losses    Value    Cost    Gains    Losses    Value
Noncurrent:
Mutual funds 914,417 253,357 $ 1,167,774 845,306 264,425 $ 1,109,731
Equity securities 1,713,839 888,657 2,602,496 1,656,156 814,340 2,470,496
$ 2,628,256 $ 1,142,014 $ $ 3,770,270 $ 2,501,462 $ 1,078,765 $ $ 3,580,227
Schedule of investment income

Investment income consists of the following:

 
Three Months Ended Six Months Ended
January 31 January 31
                 2020       2019       2020       2019
Gain on sale of marketable securities $      $      46,415 $      46,981 $      46,415
Interest income 2,772 13,880 13,050 27,441
Dividend income 73,143 74,381 80,887 83,255
Total $ 75,915 $ 134,676 $ 140,918 $ 157,111
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Property and Equipment (Tables)
6 Months Ended
Jan. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment

All buildings owned by the Company are held for leasing except for a small portion used for Company offices.

          
January 31 July 31
                 2020       2019
Land $      6,067,805   $      6,067,805  
     
Buildings held for leasing    
Buildings and improvements 66,906,987   86,461,353  
Improvements to leased property   1,478,012  
Construction in progress 4,370,985   2,325,940  
71,277,972   90,265,305  
Accumulated depreciation (31,943,384 ) (43,310,270 )
Buildings - net 39,334,588   46,955,035  
     
Fixtures and equipment and other:    
Fixtures and equipment 144,545   144,545  
Other fixed assets 162,010   164,066  
306,555   308,611  
Accumulated depreciation (186,498 ) (202,148 )
Fixtures and equipment and other - net 120,057   106,463  
     
Property and equipment - net $ 45,522,450   $ 53,129,303
Schedule of property and equipment construction in progress
Construction in progress includes:    
                   
January 31   July 31  
2020   2019  
Building improvements at 9 Bond Street in Brooklyn, NY $   $ 29,132  
Building improvements at 25 Elm Place in Brooklyn, NY 426,533   426,533  
Improvements to leased property   303,975  
Building improvements at Fishkill, NY building 3,944,452   1,566,300  
$ 4,370,985   $ 2,325,940
Schedule of Leased Property real estate Rental Operations Consists

Leased property included in the Company’s real estate rental operations consists of the following:

 
                 Estimated Useful Life       January 31, 2020
Operating lease right-of-use-assets Lease Terms – 7 to 54 years $         29,384,531
Accumulated Amortization (1,163,821 )
Operating lease right-of-use-assets $ 28,220,710
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Long-Term Debt - Mortgage (Tables)
6 Months Ended
Jan. 31, 2020
Debt Disclosure [Abstract]
Schedule of long-term debt
January 31, 2020   July 31, 2019
Current    
Annual Final Due Due Due Due
Interest Payment Within After Within After
                 Rate       Date       One Year       One Year       One Year       One Year
Bond St. building, Brooklyn, NY 4.375% 12/1/2024 $      989,764 $      4,330,054   $      5,298,610   $     
Deferred financing costs (114,618 ) (11,448 )
Total $ 989,764 $ 4,215,436   $ 5,287,162   $
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Operating Leases (Tables)
6 Months Ended
Jan. 31, 2020
Leases [Abstract]
Schedule of Revenues by Lease and non-lease components

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


           Three Months Ended       Six Months Ended
January 31 January 31
2020       2019 2020       2019
Base rent - fixed $      4,515,930 $      4,776,605 $      9,052,029 $      9,475,490
Reimbursements of common area costs 163,775 199,485 313,435 364,073
Non-lease components (real estate taxes) 359,355 300,609 709,511 598,308
Rental income $      5,039,060 $      5,276,699 $      10,074,975 $      10,437,871
Schedule of Future Minimum Non-Cancelable Rental Income

Future minimum non-cancelable rental income for leases with initial or remainint terms of one year or more is as follows:

          
Under ASC 842
As of January 31, 2020
Company
Owned Leased
           Fiscal Year       Property       Property       Total
For the remainder of 2020 $      5,019,356 $      3,060,142 $      8,079,498
2021 9,521,380 5,009,044 14,530,424
2022 7,878,165 4,039,069 11,917,234
2023 7,399,288 3,270,666 10,669,954
2024 6,483,940 2,987,050 9,470,990
2025 7,727,830 2,409,346 10,137,176
After 2025 44,904,996 12,433,194 57,338,190
Total $ 88,934,955 $ 33,208,511 $ 122,143,466
 
Under ASC 840
As of July 31, 2019
Company
Owned Leased
Fiscal Year Property Property Total
2020 $ 10,038,712 $ 6,120,283 $ 16,158,995
2021 9,521,380 5,009,044 14,530,424
2022 7,878,165 4,039,069 11,917,234
2023 7,399,288 3,270,666 10,669,954
2024 6,483,940 2,987,050 9,470,990
After 2024 52,632,826 14,842,540 67,475,366
Total $ 93,954,311 $ 36,268,652 $ 130,222,963
Schedule of rental expense

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

          
                 Three Months Ended       Six Months Ended
January 31, 2020 January 31, 2020
Sublease income $                       1,766,609 $             3,521,861
Operating lease cost (760,191 ) (1,510,057 )
Excess of sublease income over lease cost $             1,006,418 $             2,011,804
Schedule of annual undiscounted cash flows of the operating lease liabilities

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of January 31, 2020:

          
           January 31, 2020       $        1,954,899
January 31, 2021 2,066,205
January 31, 2022 2,100,129
January 31, 2023 2,116,031
January 31, 2024 2,134,695
Thereafter 14,420,464
Total undiscounted cash flows 24,792,423
Less: present value discount (5,253,894 )
Total Lease Liabilities $ 19,538,529
 
Schedule of Additional Information Related to Leases
Other information:
Operating cash flows from operating leases $ 950,809
Weighted-average remaining lease term - operating leases 12.16 years
Weighted-average discount rate - operating leases 3.90 %
Schedule of future minimum non-cancelable rental commitments

The following table represents future minimum lease payments under non-cancelable operating leases at July 31, 2019 as presented in the Company's Annual Report on Form 10-K:

          
           Operating
Fiscal Year       Leases
2020 $      1,897,318
2021 1,941,494
2022 2,057,814
2023 2,072,000
2024 2,086,697
After 2024 11,701,293
Total required* $ 21,756,616
          

* Minimum payments have not been reduced by minimum sublease rentals of $36,268,652 under operating leases due in the future under non-cancelable leases.

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Cash Flow Information (Tables)
6 Months Ended
Jan. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Schedule of cash and cash equivalents and restricted cash

The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented on the consolidated statement of cash flows:

          
January 31
                 2020       2019
Cash and cash equivalents $      3,146,214 $      4,469,048
Restricted cash, tenant security deposits 808,663 1,341,824
Restricted cash, escrow 71,603 258,399
Restricted cash, other 27,840 33,480
$ 4,054,320 $ 6,102,751
Schedule of supplemental disclosure

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

          
           Supplemental disclosure: Six Months Ended
January 31
      2020       2019
Cash Flow Information
Interest paid, net of capitalized interest of $64,759 (2020) and $20,155 (2019) $      35,210 $      78,146
Income taxes paid (refunded)   (23,041 )
 
Non-cash information
Recognition of operating lease right-of-use assets $ 29,384,531
Recognition of operating lease liabilities 20,143,101
  Mortgage refinance   5,255,920
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Accounting Records and Use of Estimates (Narrative) (Details) (USD $)
6 Months Ended 12 Months Ended
Jan. 31, 2020
Jul. 31, 2019
Jul. 31, 2018
Operating Loss Carryforwards [Line Items]
Period over which state capital-based tax will be phased out 7 years
Unrealized gain on marketable securities reclassified to retained earnings, net of tax effect $ 487,136
Operating lease right-of-use assets 29,384,531
Operating lease liabilities 20,143,101
Incremental borrowing rate 3.88%
Building and improvements net of accumulated depreciation 10,200,000
Accrued rent 950,000
Lease termination term Jan 31, 2029
Bad debt expense 40,292 118,238
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards 4,002,346
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards 10,170,071
City Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards $ 8,274,000
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Deferred charges amortization period 1 year
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Deferred charges amortization period 21 years
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Accounting Records and Use of Estimates (Schedule of property and equipment depreciation and amortization period) (Details)
6 Months Ended
Jan. 31, 2020
Buildings and improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life 18 years
Buildings and improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life 40 years
Improvements to leased property [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life 3 years
Improvements to leased property [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life 10 years
Fixtures and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life 7 years
Fixtures and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life 12 years
Other [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life 3 years
Other [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life 5 years
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Income Per Share of Common Stock (Details)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Leases [Abstract]
Average common shares outstanding 2,015,780 2,015,780 2,015,780 2,015,780
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Marketable Securities (Schedule of financial assets measured at fair value on recurring basis) (Details) (USD $)
Jan. 31, 2020
Jul. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities $ 3,770,270 $ 3,580,227
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities 3,770,270 3,580,227
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities      
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities      
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Marketable Securities (Schedule of classified marketable securities) (Details) (USD $)
Jan. 31, 2020
Jul. 31, 2019
Marketable Securities [Line Items]
Fair Value $ 3,770,270 $ 3,580,227
Noncurrent [Member]
Marketable Securities [Line Items]
Fair Value 2,628,256 2,501,462
Gross Unrealized Gains 1,142,014 1,078,765
Gross Unrealized Losses      
Cost 3,770,270 3,580,227
Noncurrent [Member] | Mutual Funds [Member]
Marketable Securities [Line Items]
Fair Value 914,417 845,306
Gross Unrealized Gains 253,357 264,425
Gross Unrealized Losses      
Cost 1,167,774 1,109,731
Noncurrent [Member] | Corporate Equity Securities [Member]
Marketable Securities [Line Items]
Fair Value 1,713,839 1,656,156
Gross Unrealized Gains 888,657 814,340
Gross Unrealized Losses      
Cost $ 2,602,496 $ 2,470,496
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Marketable Securities (Schedule of investment income) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gain on sale of marketable securities    $ 46,415 $ 46,981 $ 46,415
Interest income 2,772 13,880 13,050 27,441
Dividend income 73,143 74,381 80,887 83,255
Total $ 75,915 $ 134,676 $ 140,918 $ 157,111
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Financial Instruments and Credit Risk Concentrations (Details)
6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Concentration Risk [Line Items]
Number of tenants 50
Customer One [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk 15.80% 18.27%
Customer Two [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk 14.90% 14.25%
Customer Three [Member] | Rental Income [Member]
Concentration Risk [Line Items]
Concentration risk 12.29% 11.69%
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Property and Equipment (Details) (USD $)
6 Months Ended
Jan. 31, 2020
Aug. 02, 2019
Jul. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment - net $ 45,522,450 $ 53,129,303
Construction in progress 4,370,985 2,325,940
Building and improvements net of accumulated depreciation 10,200,000
Lease termination term Jan 31, 2029
Operating lease right-of-use assets 28,220,710 10,190,334   
Building Improvements at 9 Bond Street in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress    29,132
Building improvements at 25 Elm Place in Brooklyn, NY [Member]
Property, Plant and Equipment [Line Items]
Construction in progress 426,533 426,533
Improvements to leased property [Member]
Property, Plant and Equipment [Line Items]
Construction in progress    303,975
Building improvements at Fishkill, NY building [Member]
Property, Plant and Equipment [Line Items]
Construction in progress 3,944,452 1,566,300
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment 6,067,805 6,067,805
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment 66,906,987 86,461,353
Improvements to Leased Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment    1,478,012
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment 4,370,985 2,325,940
Property [Member]
Property, Plant and Equipment [Line Items]
Property and equipment 71,277,972 90,265,305
Accumulated depreciation (31,943,384) (43,310,270)
Property and equipment - net 39,334,588 46,955,035
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 162,010 164,066
Fixtures and equipment and other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment 306,555 308,611
Accumulated depreciation (186,498) (202,148)
Property and equipment - net $ 120,057 $ 106,463
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Property and Equipment (Schedule of Leased Property real estate Rental Operations Consists) (Details) (USD $)
Jan. 31, 2020
Aug. 02, 2019
Jul. 31, 2019
Property, Plant and Equipment [Line Items]
Operating lease right-of-use-assets $ 29,384,531
Accumulated Amortization (1,163,821)
Operating lease right-of-use-assets $ 28,220,710 $ 10,190,334   
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life lease terms 7 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life lease terms 54 years
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Long-Term Debt - Mortgage (Schedule of long-term debt) (Details) (USD $)
6 Months Ended
Jan. 31, 2020
Nov. 30, 2019
Jul. 31, 2019
Deferred financing costs
Due After One Year, Total $ 4,215,436   
Bond St. Building Brooklyn NY Two [Member]
Mortgage:
Due Within One Year 989,764 5,298,610
Due After One Year 4,330,054   
Deferred financing costs
Due Within One Year    (11,448)
Due After One Year (114,618)   
Due Within One Year, Total 989,764 5,287,162
Due After One Year, Total $ 4,215,436   
Current Annual Interest Rate 4.38% 4.38%
Final Payment Date Dec 1, 2024
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Long-Term Debt - Mortgage (Narrative) (Details) (USD $)
1 Months Ended
Nov. 30, 2019
Jan. 31, 2020
Debt Instrument [Line Items]
Closed bank liabilities 5,255,920
Bond St. Building Brooklyn NY Two [Member]
Debt Instrument [Line Items]
Closed bank liabilities 5,255,920
Additional loans 144,080
Amount outstanding 5,400,000
Term of loan 5 years
Interest rate, percent 4.38% 4.38%
Bond St. Building Brooklyn NY Two [Member] | Another Bank [Member]
Debt Instrument [Line Items]
Closed bank liabilities $ 6,000,000
Interest rate, percent 3.54%
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Operating Leases (Narraive) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Lessor, Lease, Description [Line Items]
Minimum sublease rentals $ 36,268,652 $ 36,268,652
Rent payments related to an affiliate principally owned by director $ 246,812 $ 246,812 $ 493,624 $ 493,624
Lease termination term Jan 31, 2029
Leasee One [Member]
Lessor, Lease, Description [Line Items]
Lease termination term May 31, 2029
Leasee Two [Member]
Lessor, Lease, Description [Line Items]
Lease termination term Apr 30, 2031
Minimum [Member]
Lessor, Lease, Description [Line Items]
Operating leases extended period 5 years 5 years
Maximum [Member]
Lessor, Lease, Description [Line Items]
Operating leases extended period 49 years 49 years
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Operating Leases (Schedule of Revenues by Lease and Non-Lease Components) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Leases [Abstract]
Base rent - fixed $ 4,515,930 $ 4,776,605 $ 9,052,029 $ 9,475,490
Reimbursements of common area costs 163,775 199,485 313,435 364,073
Non-lease components (real estate taxes) 359,355 300,609 709,511 598,308
Rental income $ 5,039,060 $ 5,276,699 $ 10,074,975 $ 10,437,871
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Operating Leases (Schedule of Future Minimum Non-Cancelable Rental Income) (Details) (USD $)
Jan. 31, 2020
Jan. 31, 2019
Lessor, Lease, Description [Line Items]
2020 $ 8,079,498 $ 16,158,995
2021 14,530,424 14,530,424
2022 11,917,234 11,917,234
2023 10,669,954 10,669,954
2024 9,470,990 9,470,990
2025 10,137,176
After 2024 and 2025 57,338,190 67,475,366
Total 122,143,466 130,222,963
Company Owned Property [Member]
Lessor, Lease, Description [Line Items]
2020 5,019,356 10,038,712
2021 9,521,380 9,521,380
2022 7,878,165 7,878,165
2023 7,399,288 7,399,288
2024 6,483,940 6,483,940
2025 7,727,830
After 2024 and 2025 44,904,996 52,632,826
Total 88,934,955 93,954,311
Leased Property [Member]
Lessor, Lease, Description [Line Items]
2020 3,060,142 6,120,283
2021 5,009,044 5,009,044
2022 4,039,069 4,039,069
2023 3,270,666 3,270,666
2024 2,987,050 2,987,050
2025 2,409,346
After 2024 and 2025 12,433,194 14,842,540
Total $ 33,208,511 $ 36,268,652
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Operating Leases (Schedule of rental expense) (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2020
Leases [Abstract]
Sublease income $ 1,766,609 $ 3,521,861
Operating lease cost (760,191) (1,510,057)
Excess of sublease income over lease cost $ 1,006,418 $ 2,011,804
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Operating Leases (Schedule of Undiscounted Cash Flows Operating Lease Liabilities) (Details) (USD $)
Jan. 31, 2020
Leases [Abstract]
January 31, 2020 $ 1,954,899
January 31, 2021 2,066,205
January 31, 2022 2,100,129
January 31, 2023 2,116,031
January 31, 2024 2,134,695
Thereafter 14,420,464
Total undiscounted cash flows 24,792,423
Less: present value discount (5,253,894)
Total Lease Liabilities $ 19,538,529
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Operating Leases (Schedule of Additional Information Related to Leases) (Details) (USD $)
6 Months Ended
Jan. 31, 2020
Other information:
Operating cash flows from operating leases $ 950,809
Weighted-average remaining lease term - operating leases 12 years 1 month 27 days
Weighted-average discount rate - operating leases 3.90%
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Operating Leases (Schedule of future minimum non-cancelable rental commitments) (Details) (USD $)
Jul. 31, 2019
Leases [Abstract]
2020 $ 1,897,318
2021 1,941,494
2022 2,057,814
2023 2,072,000
2024 2,086,697
After 2024 11,701,293
Total required $ 21,756,616 [1]
[1] Minimum payments have not been reduced by minimum sublease rentals of $36,268,652 under operating leases due in the future under non-cancelable leases.
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Employees' Retirement Plan (Details) (USD $)
3 Months Ended 6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Jan. 31, 2020
Jan. 31, 2019
Retirement Benefits [Abstract]
Pension contributions $ 146,183 $ 146,314 $ 247,586 $ 252,773
Employer contributions $ 14,807 $ 15,514 $ 31,820 $ 29,459
Minimum contribution rate 9.10%
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Cash Flow Information (Schedule of cash and cash equivalents and restricted cash) (Details) (USD $)
Jan. 31, 2020
Jul. 31, 2019
Jan. 31, 2019
Jul. 31, 2018
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents $ 3,146,214 $ 4,117,647 $ 4,469,048
Restricted cash, tenant security deposits 808,663 1,341,824
Restricted cash, escrow 71,603 258,399
Restricted cash, other 27,840 33,480
Cash flow information $ 4,054,320 $ 5,263,724 $ 6,102,751 $ 6,879,623
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Cash Flow Information (Schedule of supplemental disclosure) (Details) (USD $)
6 Months Ended
Jan. 31, 2020
Jan. 31, 2019
Cash Flow Information
Interest paid, net of capitalized interest of $64,759 (2020) and $20,155 (2019) $ 35,210 $ 78,146
Income taxes paid (refunded) (23,041)   
Capitalized interest 64,759 20,155
Non-cash information
Recognition of operating lease right-of-use assets 29,384,531
Recognition of operating lease liabilities 20,143,101
Mortgage refinance $ 5,255,920
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Contingencies (Details) (Settled Litigation [Member], USD $)
0 Months Ended
Nov. 06, 2018
Settled Litigation [Member]
Loss Contingencies [Line Items]
Payment of litigation settlement $ 635,000
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