Note 5 - Investment in Joint Venture

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Investment [Text Block]

5. INVESTMENT IN JOINT VENTURE

In December 2023, the Company entered into a joint venture agreement with a local developer to form a Hawai‘i limited liability company ("BRE2 LLC"). The Company's initial capital contribution to BRE2 LLC consisted approximately 30 acres of former pineapple lands in Hali‘imaile valued at $1.6 million. Net proceeds from the sales of improved agricultural lots will be distributed according to terms of the joint venture agreement. There were no proceeds from the transaction as the land was an equity contribution to the joint venture and was originally recognized as land development and sales operating revenues. However, after review, it was determined that the $1.6 million should have been presented as a gain on the derecognition of the land asset rather than operating revenues. This restatement in the treatment of the $1.6 million gain has been made in this Amended Report.