Tenant Retention and Leasing - The Company emphasizes tenant retention during difficult economic conditions, focusing on long-term leases to mitigate risks associated with economic downturns [10]. - The Company has leased approximately 1,600 square feet to a restaurant for ten years starting December 1, 2024, with brokerage commissions amounting to $95,760 [17]. - The Company has extended leases for approximately 8,000 square feet of office space for five years expiring June 30, 2028, and 500 square feet for restaurant space for two years expiring October 31, 2028 [21]. - The Company aims to negotiate lease renewals as they come due, contingent on tenants maintaining adequate financial stability [21]. - The occupancy rate for the property as of July 31, 2023, was 59.51%, with a total of 25 leases generating an annual rent of $7,322,535 [18]. - The occupancy rate for the Jamaica Property increased to 83.46% as of July 31, 2023, compared to 72.54% in 2021 [22]. - The occupancy rate for the Levittown property is currently 100% with an annual rent of $456,648, which is 2.115% of gross annual rent [27]. Financial Position and Tax Basis - As of July 31, 2024, the federal tax basis for the Brooklyn Fulton Street property is $22,607,989, with accumulated depreciation of $14,864,569, resulting in a net carrying value of $7,743,420 [19]. - As of July 31, 2024, the federal tax basis for the Jamaica Property is $7,550,837 with accumulated depreciation of $5,324,884, resulting in a net carrying value of $2,225,953 [22]. - The federal tax basis for the Fishkill property is $13,863,981 with accumulated depreciation of $10,115,395, leading to a net carrying value of $3,748,586 as of July 31, 2024 [24]. - As of July 31, 2024, the federal tax basis for the Circleville property is $4,493,846 with accumulated depreciation of $4,325,910, resulting in a net carrying value of $167,936 [30]. - The Company has a total of 15 leases with an annual rent of $5,031,744, representing a rent percentage of 23.302% of gross annual rent as of July 31, 2024 [22]. Risks and Economic Conditions - The Company is subject to various risks, including changes in economic growth rates, interest rates, and the financial condition of customers, which could impact operations [10]. - The Company operates properties with a total approximate square footage of 1,500,000 across various locations, including Brooklyn and Fishkill, New York [16]. Dividends and Earnings - The Company has not declared any cash dividends on its common stock during the year ended July 31, 2024, and does not anticipate paying any dividends in the foreseeable future [32]. - The Company plans to retain future earnings for use in its business, with decisions on future dividend payments dependent on earnings and financial position [32]. Audit and Internal Controls - The audit fees for fiscal year 2024 were $180,000, an increase from $175,000 in fiscal year 2023, while audit-related fees rose to $12,800 from $12,500 [45]. - Total fees for the independent registered public accounting firm amounted to $237,800 in fiscal year 2024, compared to $232,500 in fiscal year 2023, reflecting a 2.0% increase [45]. - The company's management assessed the effectiveness of internal control over financial reporting as of July 31, 2024, concluding that it is effective based on established criteria [36]. - There were no changes in the company's internal controls over financial reporting during the last fiscal quarter that materially affected their effectiveness [35]. - The company has not noted any significant deficiencies or material weaknesses in its internal controls [35]. - The evaluation of disclosure controls and procedures was conducted under the supervision of the CEO and CFO, confirming their effectiveness in timely alerting management to material information [34]. Corporate Governance - The company has adopted a clawback policy effective January 1, 2024, allowing recovery of erroneously awarded compensation due to accounting restatements [41]. - The company reported no disagreements with accountants regarding accounting or financial disclosures [34]. - The management's report on internal control over financial reporting was not subject to attestation by the independent registered public accounting firm due to the exemption for non-accelerated filers [37]. - No director or officer adopted or terminated a trading arrangement during the three months ended July 31, 2024 [38]. - J.W. Mays, Inc. operates primarily as an operating company with wholly-owned subsidiaries, leading to the omission of separate financial statements and schedules [52].
J.W. Mays(MAYS) - 2024 Q4 - Annual Report