MAYS 10-K & 10-Q changes, risk factors and insider trading

The controlling shareholder group includes a corporation that owns a significant percentage of the Company’s common stock and which does business with the Company, as further described in the Notes to the Consolidated Financial Statements.Statements contained in the 2025 Annual Report to Shareholders. Certain conflicts of interest may be perceived by the relationship between the Company and its largest shareholder. Nevertheless, the Company and its largest shareholder have put in place some controls to reduce the effects of any perceived conflict of interest, including ensuring that the Board is composed of a majority of independent directors.

Since 2020, the demand for commercial real estate rental space has declined. As online retail operations continue to expand nationwide, retailers are facing increased competition which reduces the need for the leasing of properties. Remote work since the pandemic has resulted in tenants’ careful evaluation and reduction of office space needs and a decline in demand of commercial office space rentals from increasing competition. The Company emphasizes retention of tenants over a long period of time which helps in difficult economic conditions. The Company also aggressively markets available space to tenants including governmental agencies, medical, industrial, and educational institutions.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events risk factors or otherwise. You are advised, however, to consultreview any any additional disclosures we make in our annualpublic proxy statement, Quarterly Reports on Form 10-Q, Annual Reports on Form 10-Kfilings and Current Reportsperiodic on Form 8-K filedreports with the Securities and Exchange Commission.

Critical accounting policies are defined as those most important to the portrayal of a company’s financial condition and results and require the most difficult, subjective or complex judgments. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported amount of revenues, and expenses during the reporting period and related disclosure of contingent assets and liabilities. We believe the critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements. Estimates are based on historical experience, where applicable or other assumptions that management believes are reasonable under the circumstances. There have been no significant changes to our critical accounting policies and estimates during the sixnine - 1515 - -months months ended JanuaryApril 31,30, -1616-- 2026 from those disclosed in the “Management’s Discussion Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Annual Report to Shareholders incorporated by by reference into our Annual Report on Form 10-K for the fiscal year ended July 31, 2025.

Three months ended JanuaryApril 31,30, 2026 compared to the three months ended April January 31,30, 2025:

In the three months ended JanuaryApril 31,30, 2026, the Company reported net loss of $(508,960216,863), or $(.25.11) per share. In the comparable three months ended JanuaryApril 31,30, 2025, the Company reported net lossincome of $(157,681),$86,784, or or $(.08)$.04 per share. The increased loss in the 2026 three months was primarily due to an increase in administration expenses, combined with loss of tenants and rent concessions granted; partially offset by severalrent new leases.escalations.

Revenues in the current three months decreased to $5,211,482$5,314,751 from $5,632,151 $5,643,444 in the comparable three months ended JanuaryApril 31,30, 2025, primarily due to loss of tenants and rent concessions granted of $213,942$210,409; partially offset by severalrent new leases.escalations.

Real estate operating expenses in the current sixthree months increased to $8,204,797 $3,999,990 from $7,878,554$3,822,276 in the comparable sixthree months ended JanuaryApril 31,30, 2025, primarily due to an increaseincreases in real estate taxes, insurance, utilities, and maintenance expenses,cost, insurance cost, and acommission loss on fixed asset disposalexpense; partially offset by decreases in building payroll costs.cost and license and permits.

Administrative and general expenses decreased in the current six three months to $2,515,739 $1,164,625 from $2,544,628$1,239,480 in the comparable sixthree months ended JanuaryApril 31,30, 2025, primarily due to a decreasedecreases in professional fees, and pension expenses; partially offset by increases in other administrative cost.expenses.

Depreciation expense in the current sixthree months increasedof to$471,707 $942,939approximated $457,285 from $889,340 in the comparable sixthree months ended JanuaryApril 31,30, 2025 primarily due to tenant improvements placed in service at various buildings.2025.

Other income (expense) and interest expense improved in the current sixthree months to $5,592 $12,708 income compared to $(41,0753,326) loss in the comparable sixthree months ended JanuaryApril 31,30, 2025, primarily due to increased dividend and interest income, anddecreased a decrease in interest expense.

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Effective October 1, 2025 the Company leased approximately 9,500 square feet feet at the Company’s Fishkill, New York building for use as storage space for three months expiring December 31, 2025. Total rent was of $46,526 wasand prepaid at lease commencement. Brokeragebrokerage commissions were $2,187.

In October 2025, a tenant who occupies 31,438 square feet at the Company’s Company’s Jowein building in Brooklyn, New York extended their lease from May 2026 to October 2026, and was given a rent concession of $361,637 $375,165 effective November 2025 to October 2026. In May 2026, this tenant advised they are vacating the space 6/30/2026. Loss of rent is approximately $243,000.

The following table summarizes our cash flow activity for the six nine months ended JanuaryApril 31,30, 2026 and 2025:

Deferred Expenses: The Company incurred $87,842 $141,135 for brokerage commissions during the sixnine months ended JanuaryApril 31,30, 2026. Commissions due were for two new tenant leases at the Company’s Jowein property, one Joweintenant for the Brooklyn property and one tenant for the Massapequa premises.

Accounts Payable and Accrued Expenses: The Company recorded an accounts payable of $637,200$611,597 related to capital improvements during the sixnine months ended January 31,April 30, 2026.

During the sixnine months ended JanuaryApril 31,30, 2026, the Company had expenditures for tenant improvements of:

As of JanuaryApril 31,30, 2026, the Company anticipates incurring an additional $12 $7.8 million in capital expenditures over the next twelve months ending JanuaryApril 31,30, 2027. The Company’s primary source of liquidity is 1) cash provided by operations, and 2) borrowings (the company has received two loan commitments and are in the final stages of securing these loans to fund capital expenditures).borrowings. Total liquidity as of JanuaryApril 31, 30, 2026 consists of cash and cash equivalents of $434,420. $2,110,713. Total liquidity includes proceeds from fixed rate borrowings as of January 31,April 30, 2026.