14.	COMMITMENTS AND CONTINGENCIES

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 facility was built in the

1960's

to serve approximately

200

single-family homes developed for workers in the Company's former agricultural operations. The facility is made up of

two

1.5

-acre wastewater stabilization ponds and surrounding disposal leach fields. The Order includes, among other requirements, payment of a

$230,000

administrative penalty and development of a new wastewater treatment plant, which become final and binding – unless a hearing is requested to contest the alleged violations and penalties.

The DOH 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. The construction of additional leach fields was completed in

December 2020.

The installation of a surface aerator, sludge removal system, and natural pond cover, using water plants, were also completed during the

three

months ended

March 31, 2021.

The DOH is currently reviewing the test results of these corrective action plan items. With these actions, the test results have been in compliance with applicable standards.

hearing date has been set since discussions with the DOH are ongoing.

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

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

Quarantine, travel restrictions and other public health measures to reduce the spread of COVID-

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. Notwithstanding the administration of vaccines to residents and visitors to Maui, the duration of the disruption on global, national, and local economies cannot be reasonably estimated at this time. The Company's future business operations, including the results of operations, cash flows and financial position will be significantly affected should the existence of the COVID-

pandemic continue for an extended period.