| Mortgages Payable |
4. Mortgages Payable:
| Schedule of mortgages payable | |
| |
| |
| | | |
| | |
| |
Current
Annual
Interest
Rate | |
Final
Payment
Date | |
April 30,
2026 | | |
July 31,
2025 | |
| Fishkill, NY building (1) | |
3.98% | |
4/1/2040 | |
$ | – | | |
$ | 3,235,561 | |
| Circleville, OH building (2) | |
7.00% | |
4/1/2046 | |
| 6,200,000 | | |
| – | |
| Deferred financing costs | |
| |
| |
| (68,336 | ) | |
| – | |
| | |
| |
| |
$ | 6,131,664 | | |
$ | 3,235,561 | |
| (1) | In March 2020, the Company obtained a loan with a bank in the amount of $4,000,000 with a fixed rate of 3.98%, secured by the Fishkill,
New York land and building. This remaining loan balance of $3,126,576 was paid off effective March 27, 2026 from proceeds of the $6,200,000
loan from the same bank described in (2) below. |
| (2) | In March 2026, the Company obtained a loan with a bank in the amount of $6,200,000
with monthly payments of $48,069 starting from May 1, 2026,
amortized over a 20-year
period with an interest rate of 7.00%.
Effective any time after April 1, 2031 through April 1, 2046, the bank may demand a balloon payment for the full amount outstanding.
The Company is permitted to prepay any outstanding indebtedness; however, any prepayments of indebtedness are subject to a penalty
fee equal to (i) 3.0%
of the outstanding principal amount in the first year of the loan, (ii) 2.0%
of the outstanding principal amount in the second year of the loan and (iii) 1.0%
of the outstanding principal amount of the third year of the loan. The loan is secured by the Company’s Circleville, Ohio
property. The Company used $3,126,576
of the net proceeds from the loan to repay an existing secured loan with the same bank. The Company intends to use the remaining net
proceeds for maintenance, repairs and onboarding of new tenants on various properties. |
Maturities of long-term mortgages outstanding at April 30, 2026 based
on the contractual payment dates, are as follows:
| Schedule of maturities of long-term mortgages outstanding | |
| |
| Fiscal Year: | |
Amount | |
| For the remainder of 2026 | |
$ | 35,914 | |
| 2027 | |
| 150,091 | |
| 2028 | |
| 160,941 | |
| 2029 | |
| 172,576 | |
| 2030 | |
| 185,051 | |
| After 2030 | |
| 5,495,427 | |
| Total | |
$ | 6,200,000 | |
Expenditures for fixed assets additions and major renewals or improvements
are capitalized along with the associated interest cost during construction. Interest expense, net of capitalized interest follows:
| Schedule of interest expense, net of capitalized interest | |
| | | |
| | | |
| | | |
| | |
| |
Three Months Ended
April 30 | | |
Nine Months Ended
April 30 | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Interest expense | |
$ | (62,678 | ) | |
$ | (34,129 | ) | |
$ | (126,122 | ) | |
$ | (119,681 | ) |
| Capitalized interest | |
| 69,456 | | |
| 22,824 | | |
| 126,122 | | |
| 58,874 | |
| Interest expense, net of capitalized interest | |
$ | 6,778 | | |
$ | (11,305 | ) | |
$ | – | | |
$ | (60,807 | ) |
The debt issuance costs are being amortized using a period of 60 months.
The estimated amortization for the five years following April 30, 2026 is $13,667 each year. Amortization of $1,165 is presented as an
increase of interest expense as of April 30, 2026.
|