Gyrodyne, LLC 10-Q

Item 1A. Risk Factors   For information regarding factors that could affect our business, results of operations, financial condition and liquidity, see the risk factors discussed under Part I, Item 1A of our 2021 Form 10-K filed with the Securities and Exchange Commission on March 30, 2022.   30     The following risk factors which appear in our 2021 Form 10-K are updated as follows:   Community opposition could adversely impact our efforts to obtain entitlements and enhance the value of our properties.   The process of seeking required entitlements, permits and approvals is sometimes delayed or prevented due to community opposition and adverse publicity from neighboring property owners, members of the general public or non-governmental organizations, or other third parties and other factors beyond our control. The Company’s efforts to seek entitlements, permits or other approvals have been the subject of protests by civic groups asserting environmental, traffic and congestion issues as well as adverse impact to the historic nature of the area. Such community opposition could lead to the denial of entitlements, permits or other approvals essential to our efforts to increase the value of our properties or to the imposition of restrictive conditions with which it is not practicable or feasible to comply and could impact our ability to enhance the value of our properties.   On March 30, 2022, the Town of Smithtown Planning Board (the “Planning Board”) unanimously granted Gyrodyne’s application for preliminary approval to divide the Flowerfield property into eight lots, subject to certain conditions (the “Flowerfield Subdivision Application”).   On April 26, 2022, the Incorporated Village of Head of the Harbor and certain other parties commenced a special proceeding (the “Article 78 Proceeding”) against the Town of Smithtown and certain other parties, including the Company, seeking to annul the Planning Board’s determination relating to the Company’s application for the preliminary subdivision approval with respect to our Flowerfield property.  The Article 78 Proceeding was commenced by the filing of a petition (the “Petition”) in the Supreme Court of the State of New York, Suffolk County, pursuant to Article 78 of New York’s Civil Practice Law and Rules (“Article 78”).  Specifically, the Petition seeks to annul the Planning Board’s (i) approval of a findings statement, pursuant to the State Environmental Quality Review Act (“SEQRA”), dated September 16, 2021, and adopted by the Planning Board on March 30, 2022, concerning the Company’s Flowerfield Subdivision Application, and (ii) preliminary approval on March 30, 2022 of the Flowerfield Subdivision Application. The arguments made in the Petition are substantially similar to those made by opponents of the Flowerfield Subdivision Application during the SEQRA and subdivision process. The Company and the Town of Smithtown will vigorously defend the Planning Board’s determinations against the Petition.    Challenging a government decision in an Article 78 proceeding can lead to delay in enforcement of the government action, whether or not the suit is successful, and the government sometimes agrees to delay implementation until legal challenges are resolved. Although Article 78 proceedings take place on an expedited timeline and generally without discovery, an Article 78 proceeding could take two years or more to run its course given the likelihood of appeal and the impact the ongoing pandemic has had on the court system. Consequently, the commencement of the Article 78 Proceeding could result in a further extension of the Company’s timeline for completing the process of securing entitlements, selling our properties and distributing net proceeds. Nevertheless, the Company remains confident that the process of negotiating purchase agreements, securing final subdivision approval and final unappealable site plan approval and consummating the sale of our properties will culminate by year-end 2024, although there can be no assurance that the Company and the Town of Smithtown will be successful in the defense of the Planning Board’s determinations against the Petition or that other factors beyond our control will necessitate an extension of the timeline generally.   Items 2 through 5 are not applicable to the Company in the three-months ended March 31, 2022.   Item 6. Exhibits.     3.1 Articles of Organization of Gyrodyne, LLC, dated as of October 3, 2013 (1)         3.2 Amended and Restated Limited Liability Company Agreement of Gyrodyne, LLC (2)     10.1 Amended and Restated Retention Bonus Plan (3)   31       10.2 Amendment No. 2 to the Retention Bonus Plan (4)         10.3 Amendment No. 3 to the Retention Bonus Plan (5)         10.4 Amendment No. 4 to the Retention Bonus Plan (6)     31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (6)         32.1 CEO and CFO Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (7)     101.INS Inline XBRL Instance (6)         101.SCH Inline XBRL Taxonomy Extension Schema (6)         101.CAL Inline XBRL Taxonomy Extension Calculation (6)         101.DEF Inline XBRL Taxonomy Extension Definition (6)         101.LAB Inline XBRL Taxonomy Extension Labels (6)         101.PRE Inline XBRL Taxonomy Extension Presentation (6)         104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)     (1) Incorporated herein by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-4 filed with the Securities and Exchange Commission on October 21, 2013.         (2) Incorporated herein by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 8-A12B filed with the Securities and Exchange Commission on September 1, 2015.         (3) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 26, 2016.         (4) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 31, 2018.         (5) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 2, 2018.         (6) Filed as part of this Report.         (7) Furnished herewith in accordance with Item 601(b)(32) of Regulation S-K. This Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certification will not be deemed incorporated by reference into any filings under the Securities Act, expect to the extent that the registrant specifically incorporates it by reference.   SIGNATURES   Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.     GYRODYNE, LLC                   Date: May 11, 2022   /s/  Gary Fitlin       By Gary Fitlin       President and Chief Executive Officer Chief Financial Officer and Treasurer     32     EXHIBIT INDEX     3.1 Articles of Organization of Gyrodyne, LLC, dated as of October 3, 2013 (1)         3.2 Amended and Restated Limited Liability Company Agreement of Gyrodyne, LLC (2)     10.1 Amended and Restated Retention Bonus Plan (3)         10.2 Amendment No. 2 to the Retention Bonus Plan (4)         10.3 Amendment No. 3 to the Retention Bonus Plan (5)         10.4 Amendment No. 4 to the Retention Bonus Plan (6)         31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (6)         32.1 CEO and CFO Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (7)     101.INS Inline XBRL Instance (6)         101.SCH Inline XBRL Taxonomy Extension Schema (6)         101.CAL Inline XBRL Taxonomy Extension Calculation (6)         101.DEF Inline XBRL Taxonomy Extension Definition (6)         101.LAB Inline XBRL Taxonomy Extension Labels (6)         101.PRE Inline XBRL Taxonomy Extension Presentation (6)         104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)     (1) Incorporated herein by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-4 filed with the Securities and Exchange Commission on October 21, 2013.         (2) Incorporated herein by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 8-A12B filed with the Securities and Exchange Commission on September 1, 2015.         (3) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 26, 2016.         (4) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 31, 2018.         (5) Incorporated herein by reference to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 2, 2018.         (6) Filed as part of this Report.         (7) Furnished herewith in accordance with Item 601(b)(32) of Regulation S-K. This Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certification will not be deemed incorporated by reference into any filings under the Securities Act, expect to the extent that the registrant specifically incorporates it by reference.   33