10. Hurricane Helen and Milton and Insurance Recovery

In the last week of September and the second week of October 2024, Hurricanes Helene and Milton made landfall on the central west coast of Florida, causing widespread damage across the greater Tampa Bay area. The impacts included property damage to the Resort, the closing and disruption of the Company’s operations, and damage to the community infrastructure. As a result of the hurricanes, we incurred approximately $816,000 of repairs and maintenance costs arising from damage to our golf courses and other property. During 2025, we settled with our insurance company for a total of $1,561,000. The final settlement represents recovery for approximately $1,039,000 of casualty losses and $522,000 of lost business and profits. The company recorded a gain on insurance recovery in the Statement of Operations of $745,000 which represents the total insurance claim amount reduced by the insurance policy deductible and costs incurred by the Company.