It appears based on the facts presented you've met the burden regarding the late filing requirement and CIS has extended your LPR status for one year while they decide if they conditions on your status should be removed. You should get your biometrics notice within a few weeks and unless they want more evidence or an interview, the next time you'll hear from CIS will be a decision on your case.
You appear to have cleared the 'first' hoop. But, that doesn't mean that you will be approved.
You would be wise to have an immigration attorney review your papers.
PROFESSOR OF IMMIGRATION LAW for over 10 years -- This blog posting is offered for informational purposes only. It does not constitute an attorney-client relationship. Also, keep in mind that this is an INTERNET BLOG. You should not rely on anything you read here to make decisions which impact on your life. Meet with an attorney, via Skype, or in person, to obtain competent personal and professional guidance.
It is good news in that your case will be reviewed despite being filed late. Given the volume of cases in our area (Los Angeles) it could well take a year for your case to be decided. Having an attorney will facilitate communications with USCIS.