MAYS J W INC

Previous wording

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 three

Current wording

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 six

Previous wording

In the three months ended October 31, 2025, the Company reported net loss of $(334,027), or $(.17) per share. In the comparable three months ended October 31, 2024, the Company reported net income of $26,657, or $.01 per share. The decrease in the 2025 three months was primarily due to increase in real estate operating expenses combined with loss of tenants and rent concessions granted; partially offset by several new leases.

Current wording

In the three months ended January 31, 2026, the Company reported net loss of $(508,960), or $(.25) per share. In the comparable three months ended January 31, 2025, the Company reported net loss of $(157,681), or $(.08) 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 several new leases.

Previous wording

Revenues in the current three months decreased to $5,251,414 from $5,539,129 in the comparable three months ended October 31, 2024, primarily due to loss of tenants and decrease in rents; partially offset by several new leases.

Current wording

Revenues in the current three months decreased to $5,211,482 from $5,643,444 in the comparable three months ended January 31, 2025, primarily due to loss of tenants and rent concessions granted of $213,942; partially offset by several new leases.

Previous wording

Depreciation expense in the current three months increased to $472,262 from $444,066 in the comparable three months ended October 31, 2024 primarily due to tenant improvements placed in service at various buildings.

Current wording

Depreciation expense in the current three months increased to $470,677 from $445,274 in the comparable three months ended January 31, 2025 primarily due to tenant improvements placed in service at various buildings.

Previous wording

Real estate operating expenses in the current three months increased to $4,077,513 from $3,750,139 in the comparable three months ended October 31, 2024, primarily due to an increase in real estate taxes, insurance and maintenance expenses, and a loss on fixed asset disposal; partially offset by decreases in building payroll costs.

Current wording

Real estate operating expenses in the current six months increased to $8,204,797 from $7,878,554 in the comparable six months ended January 31, 2025, primarily due to an increase in real estate taxes, insurance, utilities, and maintenance expenses, and a loss on fixed asset disposal; partially offset by decreases in building payroll costs.

Previous wording

Administrative and general expenses decreased in the current three months to $1,189,818 from $1,292,753 in the comparable three months ended October 31, 2024, primarily due to a decrease in legal and professional fees; partially offset by increases in other administrative cost.

Current wording

Administrative and general expenses decreased in the current six months to $2,515,739 from $2,544,628 in the comparable six months ended January 31, 2025, primarily due to a decrease in professional fees, and pension expenses; partially offset by increases in other administrative cost.

Previous wording

Other income and interest expense improved in the current three months to $9,152 compared to $(19,514) in the comparable three months ended October 31, 2024, primarily due to increased dividend and interest income, and a decrease in interest expense.

Current wording

Other income and interest expense improved in the current six months to $5,592 compared to $(41,075) in the comparable six months ended January 31, 2025, primarily due to increased dividend and interest income, and a decrease in interest expense.

Previous wording

In October 2025, a tenant who occupies 31,438 square feet at the Company’s Jowein building in Brooklyn, New York extended their lease from May 2026 to October 2026, and was given a rent concession effective November 2025 to October 2026.

Current wording

In October 2025, a tenant who occupies 31,438 square feet at the 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 effective November 2025 to October 2026.

Previous wording

The following table summarizes our cash flow activity for the three months ended October 31, 2025 and 2024:

Current wording

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

Previous wording

Deferred Expenses: The Company incurred $87,842 for brokerage commissions during the three months ended October 31, 2025. Commissions due were for two new tenant leases at the Company’s Jowein property and Massapequa premises.

Current wording

Deferred Expenses: The Company incurred $87,842 for brokerage commissions during the six months ended January 31, 2026. Commissions due were for two new tenant leases at the Company’s Jowein property and Massapequa premises.

Previous wording

During the three months ended October 31, 2025, the Company had expenditures for tenant improvements of:

Current wording

During the six months ended January 31, 2026, the Company had expenditures for tenant improvements of:

Previous wording

As of October 31, 2025, the Company anticipates incurring an additional $1.9 million in capital expenditures over the next twelve months ending October 31, 2026. The Company’s primary source of liquidity is 1) cash provided by operations, and 2) borrowings. Total liquidity as of October 31, 2025 consists of cash and cash equivalents of $2,188,982. Total liquidity includes proceeds from fixed rate borrowings as of October 31, 2025.

Current wording

As of January 31, 2026, the Company anticipates incurring an additional $12 million in capital expenditures over the next twelve months ending January 31, 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). Total liquidity as of January 31, 2026 consists of cash and cash equivalents of $434,420. Total liquidity includes proceeds from fixed rate borrowings as of January 31, 2026.

Previous wording

As of October 31, 2025, the Company’s only mortgage with a bank had outstanding debt of approximately $3.2 million. While the loan has a stated maturity of April 1, 2040, the mortgage agreement provides the lender with an unconditional right to demand repayment in full at any time through final payment date of April 1, 2040. This mortgage balloon payment demand provision has a significant impact on our financial ratios and the perception of our short-term liquidity. As of this date of filing, the bank has not communicated any intent to accelerate repayment. The Company maintains a positive relationship with the bank and remains in full compliance with terms of the loan provisions. Although the interest rate is currently favorable, the Company may choose to refinance the mortgage, however, the bank is under no obligation to refinance if or when a balloon payment comes due upon demand.

Current wording

As of January 31, 2026, the Company’s only mortgage with a bank had outstanding debt of approximately $3.15 million. While the loan has a stated maturity of April 1, 2040, the mortgage agreement provides the lender with an unconditional right to demand repayment in full at any time through final payment date of April 1, 2040. This mortgage balloon payment demand provision has a significant impact on our financial ratios and the perception of our short-term liquidity. As of this date of filing, the bank has not communicated any intent to accelerate repayment. The Company maintains a positive relationship with the bank and remains in full compliance with terms of the loan provisions. Although the interest rate is currently favorable, the Company may choose to refinance the mortgage, however, the bank is under no obligation to refinance if or when a balloon payment comes due upon demand.

Previous wording

The Company’s ability to increase cash flows from operations, and to obtain additional sources of borrowings is dependent on many factors such as the continuously evolving local and macroeconomic commercial real estate markets, the effects of the overall economy, fluctuating interest rates, inflation, trends of office versus remote work practices, city and state regulations, and increasing real estate tax assessments. Furthermore, the Company anticipates the need for additional financing in fiscal year 2026 for capital expenditures. There is no assurance the Company will be successful in securing additional sources of financing when needed.

Current wording

The Company’s ability to increase cash flows from operations, and to obtain additional sources of borrowings is dependent on many factors such as the continuously evolving local and macroeconomic commercial real estate markets, the effects of the overall economy, fluctuating interest rates, inflation, trends of office versus remote work practices, city and state regulations, and increasing real estate tax assessments. Furthermore, the Company anticipates the need for additional financing in fiscal year 2026 for capital expenditures. There is no assurance the Company will be successful in securing additional sources of financing when needed. In the event we are unable to secure additional sources of financing and our liquidity needs exceed our access to liquidity, we may need to sell or divest one or more of our properties or real estate assets to manage our liquidity needs, thus reducing our earnings and such property sale may be necessary at an inopportune time and on unfavorable terms. The determination of whether a particular property should be sold or otherwise disposed of will generally be made after consideration of relevant factors, including tax implications, prevailing economic conditions, other investment opportunities, and considerations specific to the condition, value, and financial performance of the property and the Company’s liquidity needs.