J.W. Mays(MAYS) - 2020 Q4 - Annual Report

Real Estate Operations - The Company operates several commercial real estate properties, with a total of approximately 1,500,000 square feet across various locations in New York and Ohio[33]. - As of July 31, 2020, the occupancy rate for the properties was 70.07%, with a total annual rent of $8,189,447[39]. - The Company experienced a loss in rental income of approximately $2,350,000 per annum due to a retail tenant surrendering 85,000 square feet[37]. - The occupancy rate for the property as of July 31, 2020, is 73.22%[43]. - Approximately 23,000 square feet of the building is available for lease, with plans to renovate the vacant space for office use[46]. - The occupancy rate for the Fishkill property is 21.48% as of July 31, 2020[54]. - The Company extended leases with three landlords until April 2044, indicating a strategy to secure long-term rental agreements[38]. - The Company aims to negotiate lease renewals as they come due, contingent on tenants maintaining adequate finances[38]. - The Company plans to negotiate renewals for expiring leases, contingent on tenants maintaining adequate finances[47]. Financial Information - The federal tax basis for the Brooklyn Fulton Street property is $22,559,989, with accumulated depreciation of $13,034,169, resulting in a net carrying value of $9,525,820[40]. - As of July 31, 2020, the federal tax basis for the property is $7,550,837 with accumulated depreciation of $4,678,841, resulting in a net carrying value of $2,871,996[43]. - The federal tax basis for another property is $13,863,981 with accumulated depreciation of $9,143,642, leading to a net carrying value of $4,720,339 as of July 31, 2020[49]. - The real estate taxes for the property amount to $699,984 per year, with an average rate of $11.161 per $100 of assessed valuation[44]. - The real estate taxes for this second property are $866,856 per year, with an average rate of $11.131 per $100 of assessed valuation[50]. - The real estate taxes for the Brooklyn property are $273,113 per year, with an average rate of $955.44 per $100 of assessed valuation[60]. Labor Relations - The Company has a contract with a union covering approximately 21% of its 29 employees, and considers labor relations to be good[19]. Risks and Challenges - The Company is subject to various risks, including economic downturns, environmental liabilities, and the ongoing effects of COVID-19[30]. - The Company has faced increased late payments and credit losses due to the impact of COVID-19, reflecting the pandemic's effect on tenant finances[26]. Corporate Governance - The Company has implemented controls to mitigate perceived conflicts of interest with its largest shareholder, who shares management personnel[24]. - The company assessed the effectiveness of its internal control over financial reporting as of July 31, 2020, and concluded that it is effective[84]. - There were no changes in the company's internal controls over financial reporting that materially affected their effectiveness during the last fiscal quarter[83]. - Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act were included in the filing[31][32]. Shareholder Information - As of September 7, 2020, the company had approximately 800 shareholders of record[73]. - The company's common stock began trading on The Nasdaq Capital Market under the symbol "Mays" on November 8, 1999[72]. - The company did not sell any unregistered securities during the year ended July 31, 2020[74]. - There were no repurchases of outstanding equity securities during the year ended July 31, 2020[75]. Audit and Fees - The audit fees for fiscal year 2020 were $165,000, a decrease from $171,500 in fiscal year 2019[100]. - Total fees paid to the independent registered public accounting firm for fiscal year 2020 amounted to $241,810, compared to $234,205 in fiscal year 2019[100]. Employment Agreements - The employment agreements for executive officers were extended on August 1, 2020, for three-year periods[103]. - Employment agreements for key executives were extended, with the latest extension dated August 1, 2020, set to end on July 31, 2023[10]. - No applicable plans for acquisition, reorganization, arrangement, liquidation, or succession were mentioned[16]. Reporting - The company filed two reports on Form 8-K during the three months ended July 31, 2020[86].