CORRECTION TO PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2011

CORRECTION TO PREVIOUSLY ISSUED FINANCIAL STATEMENTS

CORRECTION TO PREVIOUSLY ISSUED FINANCIAL STATEMENTS

15.   CORRECTION TO PREVIOUSLY ISSUED FINANCIAL STATEMENTS

        Subsequent to the issuance of the Company's consolidated financial statements for the years ended December 31, 2010 and 2009, the Company concluded that its liability for refundable deposits due to its Kapalua Club members was understated by approximately $1,506,000 as of December 31, 2010 and 2009. This understatement originated from initiation dues received for memberships issued in years prior to 2009 for which the refundable portion was not recorded as a liability. In addition, the Company concluded that the estimated interest on uncertain tax positions was overstated by approximately $571,000 as of December 31, 2010 and 2009 because of net operating losses available to be carried back from 2008 and 2009 to earlier years. As a result, the accompanying consolidated statement of stockholders' deficiency for the year ended December 31, 2010 and the accompanying consolidated balance sheet as of December 31, 2010 have been corrected as follows:

	As Previously Reported			Adjustments			As Corrected
	(in thousands)
Consolidated Statement of Stockholders' Deficiency
Accumulated Deficit, January 1, 2010	$	(116,723	)	$	(935	)	$	(117,658	)
Consolidated Balance Sheet, December 31, 2010
Income taxes payable	$	4,016		$	(571	)	$	3,445
Total Current Liabilities		44,143			(571	)		43,572
Other noncurrent liabilities		2,758			1,506			4,264
Total Long-Term Liabilities		70,507			1,506			72,013
Accumulated deficit		(91,971	)		(935	)		(92,906	)
Stockholders' Deficiency		(24,245	)		(935	)		(25,180	)

        Management does not consider the foregoing corrections to be material.