Note 5 - Consolidating Financial Information

6 Months Ended

Jun. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

5.    Consolidating Financial Information

Our consolidated assets at June 30, 2014 and December 31, 2013 include total assets of $33,841,213 and $33,730,130, respectively, of a variable interest entity (VIE) that can only be used to settle liabilities of that VIE. These assets, prior to reclassifying applicable items to discontinued operations, include real estate of $32,641,260 and $32,739,678, deferred rent of $281,293 and $215,709, rent receivable of $92,376 and $0, and prepaid and other assets of $826,284 and $774,743, respectively. Our consolidated liabilities at June 30, 2014 and December 31, 2013, prior to reclassifying applicable items to discontinued operations, include liabilities of a VIE consisting of $475,895 and $474,111, respectively of tenant security deposits, accounts payable of $170,228 and $0, and deferred rent liability of $64,084 and $93,922, respectively. The VIE also has mortgages payable, prior to reclassifying applicable items to discontinued operations, to a wholly-owned subsidiary of Gyrodyne of $13,369,800 and $13,840,889, respectively and an outstanding balance in a revolving debt facility of $2,482,852 and $254,740 at June 30, 2014 and December 31, 2013, respectively, that are eliminated in consolidation.

The tables below are the unaudited consolidating June 30, 2014 Balance Sheet and Statement of Operations reflects the operations of Gyrodyne Company of America, Inc. and subsidiaries and GSD.

	Gyrodyne Company of America, Inc. and Subsidiaries			GSD, LLC			Total			Eliminations			Consolidated
ASSETS
REAL ESTATE
Rental property:
Land	$	-		$	1,733,693		$	1,733,693		$	-		$	1,733,693
Building and improvements		-			11,175,728			11,175,728			-			11,175,728
Machinery and equipment		-			344,733			344,733			-			344,733
		-			13,254,154			13,254,154			-			13,254,154
Less accumulated depreciation		-			4,725,234			4,725,234			-			4,725,234
		-			8,528,920			8,528,920			-			8,528,920
Land held for development:
Land		-			558,466			558,466			-			558,466
Land development costs		-			1,895,046			1,895,046			-			1,895,046
		-			2,453,512			2,453,512			-			2,453,512
Total real estate, net		-			10,982,432			10,982,432			-			10,982,432
Assets held for sale		-			22,320,755			22,320,755			-			22,320,755
Cash and cash equivalents		6,346,983			-			6,346,983			-			6,346,983
Investment in marketable securities		4,703,470			-			4,703,470			-			4,703,470
Rent receivable, net of allowance for doubtful accounts of approximately $98,000		-			58,024			58,024			-			58,024
Deferred rent receivable		-			51,366			51,366			-			51,366
GSD Line of Credit		2,482,852			-			2,482,852			(2,482,852	)		-
Prepaid expenses and other assets		149,724			428,636			578,360			-			578,360
Prepaid pension costs		593,870			-			593,870			-			593,870
Mortgage receivable		13,369,800			-			13,369,800			(13,369,800	)		-
Total Assets	$	27,646,699		$	33,841,213		$	61,487,912		$	(15,852,652	)	$	45,635,260
LIABILITIES AND EQUITY
LIABILITIES:
Accounts payable	$	647,089		$	49,832		$	696,921		$	-		$	696,921
Accrued liabilities		281,664			-			281,664			-			281,664
Deferred rent liability		-			36,474			36,474			-			36,474
Tenant security deposits payable		-			268,790			268,790			-			268,790
Liabilities related to assets held for sale		-			9,788,425			9,788,425			(9,433,314	)		355,111
GSD Line of Credit		-			2,482,852			2,482,852			(2,482,852	)		-
Mortgage Payable		-			3,936,486			3,936,486			(3,936,486	)		-
Deferred income taxes		1,315,000			-			1,315,000			-			1,315,000
Note's payable		16,447,427			-			16,447,427			-			16,447,427
Total Liabilities		18,691,180			16,562,859			35,254,039			(15,852,652	)		19,401,387
Commitments and contingencies
EQUITY:
Common stock, $1 par value; authorized 4,000,000 shares; 1,723,888 shares issued; 1,482,680 shares outstanding		1,723,888			-			1,723,888			-			1,723,888
Additional paid-in capital		17,753,505			-			17,753,505			-			17,753,505
Accumulated other comprehensive income		177,107			-			177,107			-			177,107
Deficit		(9,161,284	)		(1,788,114	)		(10,949,398	)		1,788,114			(9,161,284	)
		10,493,216			(1,788,114	)		8,705,102			1,788,114			10,493,216
Less cost of shares of common stock held in treasury; 241,208		(1,537,697	)		-			(1,537,697	)		-			(1,537,697	)
Total Gyrodyne Stockholders’ Equity		8,955,519			(1,788,114	)		7,167,405			1,788,114			8,955,519
Non-controlling interest in GSD, LLC					19,066,468			19,066,468			(1,788,114	)		17,278,354
Total equity		8,955,519			17,278,354			26,233,873			-			26,233,873
Total Liabilities and Equity	$	27,646,699		$	33,841,213		$	61,487,912		$	(15,852,652	)	$	45,635,260

Consolidated Statement of Operations – Six Months Ending June 30, 2014

	Gyrodyne Company of America, Inc.			GSD, LLC			Total			Eliminations			Consolidated
Revenues
Rental income	$	-		$	1,184,742		$	1,184,742					$	1,184,742
Rental income - tenant reimbursements		-			178,862			178,862						178,862
Other income		2,656,033			-			2,656,033			(2,656,033	)		-
Total		2,656,033			1,363,604			4,019,637			(2,656,033	)		1,363,604
Expenses
Reimbursable expenses		766,122			-			766,122			(766,122	)		-
Rental expenses		-			790,061			790,061			(23,939	)		766,122
General and administrative expenses		1,150,366			1,061,271			2,211,637			(1,061,271	)		1,150,366
Strategic alternative expenses		872,541			804,701			1,677,242			(804,701	)		872,541
Depreciation		-			161,999			161,999						161,999
Impairment charges		-			200,000			200,000			-			200,000
Total		2,789,029			3,018,032			5,807,061			(2,656,033	)		3,151,028
Other Income (Expense):
Interest income		166,047			-			166,047			(120,123	)		45,924
Interest expense		(336,346	)		(120,123	)		(456,469	)		120,123			(336,346	)
Total		(170,299	)		(120,123	)		(290,422	)		-			(290,422	)
Net Loss from continued operations		(303,295	)		(1,774,551	)		(2,077,846	)		-			(2,077,846	)
Net Income from discontinued operations		261,482			(5,562	)		255,920			-			255,920
Net Loss	$	(41,813	)	$	(1,780,113	)	$	(1,821,926	)	$	-		$	(1,821,926	)

Consolidated Statement of Operations – Three Months Ending June 30, 2014

	Gyrodyne Company of America, Inc.			GSD, LLC			Total			Eliminations			Consolidated
Revenues
Rental income	$	-		$	572,783		$	572,783		$	-		$	572,783
Rental income – tenant reimbursements		-			62,216			62,216			-			62,216
Other income		1,384,710			-			1,384,710			(1,384,710	)		-
Total rental income		1,384,710			634,999			2,019,709			(1,384,710	)		634,999
Expenses
Reimbursable expenses		345,525			-			345,525			(345,525	)		-
Rental expenses		-			356,476			356,476			(10,951	)		345,525
General and administrative expenses		579,616			535,016			1,114,632			(535,016	)		579,616
Strategic alternative expenses		534,799			493,218			1,028,017			(493,218	)		534,799
Depreciation		-			80,787			80,787			-			80,787
Impairment charges		-			200,000			200,000			-			200,000
Total		1,459,940			1,665,497			3,125,437			(1,384,710	)		1,740,727
Other income (expense):
Interest income		92,671			-			92,671			(70,579	)		22,092
Interest expense		(201,808	)		(70,579	)		(272,387	)		70,579			(201,808	)
Total		(109,137	)		(70,579	)		(179,716	)		-			(179,716	)
Net loss from continued operations		(184,367	)		(1,101,077	)		(1,285,444	)		-			(1,285,444	)
Net income from discontinued operations		130,482			4,694			135,176			-			135,176
Net loss	$	(53,885	)	$	(1,096,383	)	$	(1,150,268	)	$	-		$	(1,150,268	)