Note 14 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

1 4 . COMMITMENTS AND CONTINGENCIES

On

December 31, 2018,

the State of Hawaii Department of Health (DOH) issued a Notice and Finding of Violation and Order (Order) for alleged wastewater effluent violations related to the Company's Upcountry Maui wastewater treatment facility. The DOH has agreed to defer the Order without a hearing date while the Company continues working on a previously approved corrective action plan to resolve and remediate the facility's wastewater effluent issues. A new design plan for additional disposal leach fields has been approved by the DOH. Construction of the additional leach fields is expected to be completed by

December 31, 2020.

The Company is presently unable to estimate the amount, or range of amounts, of any probable liability, if any, related to the Order and

no

provision has been made in the accompanying interim unaudited condensed consolidated financial statements.

There are various other claims and legal actions pending against the Company. The resolution of these other matters is

not

expected to have a material adverse effect on the Company's consolidated financial position or results of operations after consultation with legal counsel.

In

March 2020,

the World Health Organization declared the outbreak of a novel coronavirus (COVID-

19

) as a pandemic. As a result, public health measures were taken to minimize exposure to the virus. Quarantine, travel restrictions, and other governmental restrictions and guidelines to reduce the spread of COVID-

19

has caused and is likely to continue to have an adverse impact on economic activity, including business closures, increased unemployment, financial market instability, and reduced tourism to Maui. The duration of the disruption on global, national, and local economies cannot be reasonably estimated at this time. However, should the existence of the COVID-

19

pandemic continue for an extended period, the Company's future business operations, including the results of operations, cash flows and financial position will be significantly affected.