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 UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

 [ X ]

 Annual Report Pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934

 for the fiscal year ended December 31, 2023

 or

 [ ]

 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 For the transition period from _____ to _____

 Commission file number: 0-50273

 (Exact name of registrant as specified in its
charter)

 Delaware

 (State or other jurisdiction

 of incorporation or organization)

 01-0731997

 (I.R.S. Employer Identification No.)

 900 N. Michigan Ave., Chicago, Illinois

 (Address of principal executive offices)

 60611

 (Zip Code)

 Registrant's telephone number, including area
code 312 - 915-1987

 Securities registered pursuant to Section 12(b)
of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on

 which registered

 N/A

 N/A

 N/A

 Securities registered pursuant to Section 12(g)
of the Act:

 Limited Liability Company Interests (Class
A Shares)

 (Title of Class)

 Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [ X ]

 Indicate by check mark if the registrant is not
required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [ X ]

 Indicate by check mark whether the registrant (1)
has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes [ X ] No [ ]

 Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
[ X ] No [ ]

 Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See definition of "large accelerated filer," "accelerated filer,""smaller reporting company," and "emerging
growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 [ ]

 Accelerated filer

 [ ]

 Non-accelerated filer

 [ X ]

 Smaller reporting company

 [ X ]

 Emerging growth company

 [ ]

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. Yes [ ] No [ ]

 Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report. [ ]

 If securities are registered pursuant to Section 12(b)
of the Act, indicate by checkmark whether the financial statements of the registrant included in the filing reflect the correction of
an error to previously issued financial statements. [ ]

 Indicate by check
mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received
by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).
[ ]

 Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [ X ]

 State the aggregate market value of the voting
and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the
average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal
quarter. Not applicable.

 As of March 27, 2024, the registrant had 1,792,613
Common Shares and 52,000 Class C Shares outstanding.

 Documents incorporated by reference: None

 Page

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities

 Item 6.

 [ Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections `

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial
 Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibit and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 Signatures

 Item 1. Business

("Kaanapali Land" or the "Company"), a Delaware limited liability company, is the reorganized entity resulting
from the Joint Plan of Reorganization of Amfac Hawaii, LLC (now known as KLC Land Company, LLC ("KLC Land")), certain of
its subsidiaries (together with KLC Land, the "KLC Debtors") and FHT Corporation ("FHTC" and, together with
the KLC Debtors, the "Debtors") under Chapter 11 of the Bankruptcy Code, dated June 11, 2002 (as amended, the
"Plan"). The Plan was filed jointly by all Debtors to consolidate each case for joint administration in the Bankruptcy
Court in order to (a) permit the petitioners to present a joint reorganization plan that recognized, among other things, the common
indebtedness of the debtors (i.e. the Certificate of Land Appreciation Notes ("COLAs") and Senior Indebtedness (as
defined in the Plan)) and (b) facilitate the overall administration of the bankruptcy proceedings. As indicated in the Plan, Kaanapali
Land has elected to be taxable as a corporation.

 The Plan was confirmed by
the Bankruptcy Court by orders dated July 29, 2002 and October 30, 2002 (collectively, the "Order") and became effective
November 13, 2002 (the "Plan Effective Date"). During August 2005, pursuant to a motion for entry of final decree, the
bankruptcy cases were closed.

 The Company operates in two
primary business segments: (i) Property and (ii) Agriculture. The Company operates through a number of subsidiaries, each of which is
owned directly or indirectly by Kaanapali Land.

 KLC Land is the direct subsidiary
of Kaanapali Land through which the Company conducts substantially all of its remaining operations. KLC Land conducts substantially all
of its business through various subsidiaries. Those subsidiaries with remaining assets of significant net value include KLC Holding Corp.
("KLC"), Pioneer Mill Company, LLC ("PMCo"), Kaanapali Land Management Corp. ("KLMC" formerly known as Kaanapali
Development Corp.) and PM Land Company, LLC. In 2013, the Kaanapali Coffee Farms Lot Owners' Association ("KCF LOA")
was consolidated with the interests of third-party owners reflected as non-controlling interests. The KCF LOA was deconsolidated in the
third quarter of 2022 as a result of the turnover of control of the KCF LOA board of directors to the third-party owners of the lots in
the subdivision.

 All dollar amounts are in
thousands of dollars unless otherwise noted.

 Project Planning and Development.
The Company's real estate development approach, for land that it holds for development rather than investment, is designed to enhance
the value of its properties in phases. In most instances, the process begins with the preparation of market and feasibility studies that
consider potential uses for the property, as well as costs associated with those uses. The studies consider factors such as location,
physical characteristics, demographic patterns, anticipated absorption rates, transportation, infrastructure costs, both onsite and offsite,
and regulatory and environmental requirements.

 For any property
targeted for development, the Company will generally prepare a land plan that is consistent with the findings of the studies and
then commence the process of applying for the entitlements necessary to permit the use of the property in accordance with the land
plan. The length and difficulty of obtaining the requisite entitlements by government agencies, as well as the cost of complying
with any conditions attached to the entitlements, are significant factors in determining the viability of the Company's projects.
Applications for entitlements may include, among other things, applications for state land use reclassification, Maui County (the
"County") community plan amendments, changes in zoning, and if applicable, subdivision.

 Pioneer Mill
Site. The Company owns approximately 19 acres in Lahaina, known as the Pioneer Mill Site, which is zoned primarily industrial.
This is the former site of PMCo's sugar mill on Maui and was the site of the coffee mill operation. In addition, portions of
this parcel were subject to various short-term license agreements with third parties that generated income for the Company. Plans are
in process for future potential development of the site. As discussed below, the site was negatively impacted by the Lahaina
wildfire.

 Lahaina Wildfire. Beginning
on August 8, 2023, a wildfire occurred due east of historic Lahaina town in Maui. The fire spread rapidly due to extreme wind conditions
caused in part by Hurricane Dora which traveled 800 miles offshore west of Maui. The fires caused multiple fatalities, widespread damage
to Lahaina town and the surrounding area including the Company's 19-acre Pioneer Mill site. The Company's offices and coffee
mill were located on the site as well as various other structures and a building which is leased to an unrelated third party and used
to operate a coffee store. The Company also utilized portions of the property for short term license agreements with third parties that
generated income for the Company. Although no employees were injured in the fire, the Company's offices and coffee store building
were destroyed. Additionally, it appears that most of the personal property of the licensees and the coffee mill was destroyed. The widespread
destruction is likely to cause disruptions in the Company's development plans. The damage to the coffee mill has disrupted operations
and prevented the Company from processing and selling the current year coffee crop. It is also likely that the fires and devastation
caused thereby will adversely affect the Maui economy and businesses operated on Maui. Clean up of Lahaina, including the Pioneer Mill
site, has commenced by U.S. Army Corps of Engineers ("USACE") contractors. Access to the property remains restricted, and
such restrictions are expected to continue while the clean-up of Lahaina town continues, estimated by USACE to be completed in approximately
18 months. The Company has initiated claims with its insurance carriers and in October 2023, the Company received an initial, unallocated
advance payment of $1 million from its insurance carrier. Notwithstanding the advance, there can be no assurance that the Company's
insurance coverage will fully compensate the Company for its losses incurred in connection with the fire and related devastation, including
the costs of its structures and equipment lost in the fire, the loss in revenue from the lack of coffee sales, or the loss of income
from the licensees. The Company could experience losses in excess of our insured limits, and further claims for certain losses could
be denied or subject to deductibles or exclusions under our insurance policies. The Company has relocated its offices to temporary office
facilities located on its lands in Kaanapali and is in the planning stages of relocating its coffee mill to its farm in Kaanapali. Additionally,
the Company was able to recover its electronic files which were stored on its servers destroyed in the fire from back up files existing
at an offsite location. Recovery efforts continue.

 Kaanapali 2020
Development Plan. The Company's developable lands are located on the west side of the Island of Maui in the State of Hawaii. The
majority of the developable lands are located near to the Kaanapali resort area. The Kaanapali development lands have been the
subject of a community-based planning process that commenced in 1999 for the Kaanapali 2020 Development Plan. The Kaanapali 2020
Development Plan includes a mix of residential (including workforce affordable housing), commercial, quasi-public facilities,
recreation, agriculture, rural, and open space. Any development plan for any of the Company's land, including the Kaanapali 2020
Development Plan, will be subject to approval and regulation by various state and County agencies and governing entities, especially
insofar as the nature and extent of zoning, and improvements necessary for site infrastructure, building, transportation, water
management, environmental and health are concerned. A substantial portion of the Company's Kaanapali 2020 Development Plan
land will require state district boundary amendments and county general plan and community plan amendments, as well as rezoning
approvals. In Hawaii, the governmental entities may impose limits or controls on growth in their communities during the review and
consideration of the various entitlement processes mainly through restrictive conditions, including limitations on density, impact
fees, infrastructure contribution, among others, all of which may materially affect utilization of the land and the costs associated
with developing the land. In addition, the County currently requires certain percentages and levels of affordability to be
included in

 proposed residential developments or
subdivisions of land, thereby affecting the feasibility of these projects. There can be no assurance that the Company will be
successful in obtaining the necessary zoning and related entitlements for development of any currently unentitled Maui lands. At
this time, the only Kaanapali 2020 Development Plan land that has sufficient entitlements to commence development is the Puukolii
Village Mauka development, as described below.

 The current regulatory approval
process for a development project takes a number of years or more and involves substantial expense. The applications generally require
the submission of comprehensive plans that involve the use of consultants and other professionals. A substantial portion of the Company's
Kaanapali 2020 Development Plan land will require state district boundary amendments and county general plan and community plan amendments,
as well as rezoning approvals. There is no assurance that all necessary approvals and permits will be obtained with respect to the current
projects or future projects of the Company. Generally, entitlements are extremely difficult to obtain in Hawaii. There is often significant
opposition to proposed developments from numerous local groups, environmental organizations, various community and civic groups, condominium
associations and politicians advocating no-growth policies, among others. Any such group with standing can challenge submitted applications,
which may substantially delay the process. Generally, once the applications are deemed acceptable, the various governing agencies involved
in the entitlement process commence consideration of the requested entitlements. The applicable agencies often impose conditions, which
may be costly and time consuming, on any approvals of the entitlements. The substantial time and expense of obtaining entitlements and
the uncertainty of success in obtaining the entitlements could have a material adverse effect on the Company's success.

 At the state level, all land
in Hawaii is divided into four land use classifications: urban, rural, agricultural and conservation. The majority of the Kaanapali 2020
Development Plan land is currently classified as either agricultural or conservation.

 A relatively small portion
(approximately 300 acres) of the Kaanapali 2020 Development Planning area owned by the Company, known as Puukolii Village Mauka, comprised
of two parcels known as Puukolii Village Mauka and another parcel adjacent to Puukolii Village Mauka, received entitlements in 1993 under
the terms of a superseded law that fast tracked entitlements for planned mixed use developments that contained the requisite percentage
of affordable housing units. The requirements imposed on the Company relative to these entitlements proved uneconomic and thus the developments
were not pursued. The Company proposed revisions to certain entitlement conditions as well as the development agreement with the applicable
state agencies and is continuing to plan for the development of the Puukolii Village Mauka area, which will, if ultimately developed,
include certain affordable and market housing units, a small commercial area, a school, a park and associated improvements. From 2007
through 2009, the Company received various approvals of its proposed revisions of entitlement conditions and of the development agreement
including the addition of the County housing department as a party to the development agreement.

 Despite the hurdles mentioned
above, the Company remains hopeful that it will generally be able to develop that portion of its land for which it can obtain classification
as an urban district from the State Land Use Commission. However, it is uncertain whether the Company will be able to obtain all necessary
entitlements or, if so, how long it will take, and it cannot be predicted what the market will be for such land (or the associated development
costs) at such time. Conservation land is land that has been considered by the state as necessary for preserving natural conditions as
well as to protect water resources and cannot be developed. Lands within agricultural and rural districts have limited development potential,
especially as it relates to density and use. Pursuant to the Kaanapali 2020 Development Plan, the Company intends to apply to the State
Land Use Commission for reclassification of a portion of the agricultural lands to urban, and perhaps some rural, but does not intend
to apply for reclassification of the conservation lands.

 During 2012, the County
updated its General Plan which projects general growth of the County over the next few decades. This update included a new component
with maps which show directed growth areas. The County recognized the Kaanapali 2020 Development Plan to be within the urban
growth limits identified in these directed growth maps. Development of the Kaanapali 2020 Development Plan lands in accordance with
the Kaanapali 2020 Development Plan will require, in addition to state land use reclassification of some of the land from
agriculture to urban, appropriate designation under the County community plan, and the appropriate County zoning designation
included in the Maui County General Plan noting it as an urban growth area. In December 2021, the West Maui Community Plan
("WMCP"),which consists of a vision statement, goals, policies, and actions to guide growth and preservation in West
Maui, was updated and became part of the General Plan. The Company is evaluating the effect, if any, the changes to the WMCP will
have on its development plans. Obtaining any and all of these approvals can involve a substantial amount of time and expense, and
approvals may need to be resubmitted if there is any subsequent, material deviation in current approved plans or significant
objections by the responsible government agencies. There are no assurances that the Company can obtain approvals or deviations.

 In connection with any successful
petition to change any of the various land use classifications (state land use district, county community plan, county zoning) of the
Kaanapali 2020 Development Plan, the Company may be required to make significant improvements in public facilities (such as roads), to
dedicate property for public use, to provide employee/workforce housing units and to make other concessions, monetary or otherwise. The
ability of the Company to perform its development activities may also be adversely affected by restrictions that may be imposed by government
agencies and the surrounding communities because of inadequate public facilities, such as roads, water management areas and sewer facilities,
and by local opposition to continued growth. The Lahaina wildfires may also cause further delays in the Company's planned developments.
However, as part of the Kaanapali 2020 Development Plan, the Company has included a number of community members and local government officials
in the development planning process and has earned significant community support for its preliminary Kaanapali 2020 Development Plan.
It also believes that it enjoys general local community support for its new Puukolii Village Mauka concept. The Company hopes that carrying
on with this process will continue to generate substantial support from local government and the community for the Company's development
plans.

 There can be no assurance
that all necessary approvals will be obtained, that modifications to those plans will not require additional approvals, or that such additional
approvals will be obtained, nor can there be any assurance as to the timing of such events.

 In September 2014, KLMC,
pursuant to a property and option purchase agreement ("Purchase Agreement") sold an approximately 14.9 acre parcel in
West Maui. The Purchase Agreement (as subsequently amended) commits KLMC to fund up to $0.6 million, depending on various factors,
for off-site roadway, sewer and electrical improvements that will also provide service to other KLMC properties. KLMC may, at its
discretion, design, construct, install, and complete all or portions of the off-site road, sewer and/or electrical improvements, in
which case the developer shall pay to KLMC the total costs thereof, less the KLMC committed amount. In relation to such sewer line
improvement, KLMC has entered into a contract for $1.1 million to install the sewer line. KLMC has paid $1.1 million on the contract
which has been recorded as a receivable, less KLMC's sewer line commitment of $0.2 million. In accordance with the Purchase
Agreement, the receivable accrues interest of 6.5% and is secured by the 14.9 acre property. The developer has begun certain other
offsite construction has begun at the site. In conjunction with the Purchase Agreement, the Company retains certain approval rights
relating to the uses and designs of the site to ensure the uses and designs are aligned with the Company's planned master
development. If such uses result in a dispute with the developer of the site, such dispute could delay the development of the site.
The 14.9 acre site is intended to be used for a critical access hospital, skilled nursing facility, assisted living facility, and
independent living facility.

 The Company is in the planning
stages for the development of a 295-acre parcel in the region mauka of the Kaanapali Coffee Farms ("KCF Mauka"). The parcel
is to be comprised of 61 agricultural lots that will be offered to individual buyers. The Company expects to develop the parcel in phases
and all phases have been submitted to the County for subdivision approval. The Company continues to
work with the County to resolve certain of the County's comments relating to the subdivision. The Company's understanding
is that all outstanding comments from the County have been resolved verbally with County staff. The final approval letter has been pending
and additional efforts are being made to secure the approval. Upon final subdivision approval of all phases and receipt of final plat
of the first phase from the County, which requires a bond in the amount of the cost to develop the first phase, the Company can pre-sell
the undeveloped lots in the first phase. The Company expects to market the lots in the first phase upon receiving final approvals from
the County, subject to various contingencies, including, but not limited to, governmental and market factors and the availability of a
bond to secure the first phase of the development. At this time, the Company is assessing whether the fires and resulting devastation
may negatively impact the near term marketability of the lots in the first phase of the development. Therefore, there can be no assurance
the Company will be able to meet such timetable, that the subdivision will ultimately be approved or that the lots will sell for prices
deemed advantageous by the Company.

 The Company is in the planning
stages for the development of a 241-acre residential development site in the region south of Kaanapali Coffee Farms known as Puukolii
Village. The conceptual master plan is comprised of 20 developable parcels planned for 940 units including a mix of affordable and market
priced homes, both single and multi-family, mixed use commercial, parks, school, and community facilities. Puukolii Village is fully entitled.
At this time, the Company is uncertain whether the fires and resulting devastation might delay approvals from the County. In conjunction
with the potential development of Puukolii Village and in coordination with the possible development by an unrelated third party of the
14.9 acre site to be used for a critical access hospital, as noted above, the Company entered into a contract to install a sewer line
from the Puukolii Village site to the critical care hospital site. The developer of the critical access hospital site is obligated to
share in the sewer line cost for the portion of the sewer line fronting the critical care hospital site. (See discussion above).

 KLMC is a party to an
agreement with the State of Hawaii for the development of the Lahaina Bypass Highway. Approximately 2.4 miles of this two
lane state highway have been completed. Construction to extend the southern terminus was completed mid-2018. The northern portion of
the Bypass Highway, which extends to KLMC's lands, is in the early stage of planning. Under certain circumstances, which have
not yet occurred, KLMC remains committed for approximately $1.1 million of various future costs relating to the planning and design
of the uncompleted portion of the Bypass Highway. Under certain conditions, which have not yet been met, KLMC has agreed to
contribute an amount not exceeding $6.7 million toward construction costs. Any such amount contributed would be reduced by the value
of KLMC's land actually contributed to the State for the Bypass Highway.

 These potential commitments have
not been reflected in the accompanying consolidated financial statements. While the completion of the Bypass Highway would add value to
KLMC's lands north of the town of Lahaina, there can be no assurance that it will be completed or when any future phases will be
undertaken.

 Current
Operations. Agricultural operations consist primarily of cultivation, milling and sale of coffee. The coffee farming operation
includes manpower and equipment required to fertilize, prune and maintain the coffee plantations as well as equipment required to
harvest and haul coffee cherry to the Company's former processing plant (the "Mill") located on the former sugar
mill site in Lahaina, Hawaii. As discussed above, the coffee mill was destroyed in the Lahaina wildfire. The Company is in the
planning stages of building a new mill at its farm in Kaanapali, which is not expected to be completed in time
for the next coffee harvest. The coffee fields were not destroyed in the fire. The Company also maintains and operates a system of
irrigation infrastructure including development tunnels, ditches, tunnels, siphons, flumes and reservoirs required to irrigate the
Company's agricultural operations and future planned developments with non-potable water.

 The Company sells
milled green coffee under the brand name Mauigrown Coffee mainly to interisland Hawaii customers, generally roasters who have
retail coffee shops, and also sell to grocery stores and online. Based on availability, green coffee is also shipped and sold to
mainland and international customers, including roasters, dealers, and traders. Portions of the coffee farms are operated as part of
the 336-acre Kaanapali Coffee Farms agricultural subdivision, in which a portion of each lot owned by the lot owner is used for
their single-family dwelling, while the remainder of the lot containing coffee trees is farmed by the Company. The Company has
entered into certain agreements with the Kaanapali Coffee Farms Lot Owners Association in this regard. The planned 295-acre, second
phase of KCF Mauka will be within the coffee farming area as well. The Company continues to plant additional acreage of coffee on
its agricultural land not currently included in the developable lands of Kaanapali 2020 Development Plan.

 Coffee production and yields
are subject to many factors, particularity weather related factors, including rainfall and the availability of sufficient irrigation water
flowing through its irrigation system. Yields may be reduced in years of drought when irrigation water and rainfall is insufficient. Reference
is made to Item 1A. Risk Factors for risks relating to agriculture. The Company purchases crop insurance annually which reduces certain
coffee crop production risks. The Company received crop insurance proceeds in 2023 related to losses sustained to the 2022 coffee crop
due to an insured event. Additionally, acreage under production is reduced annually by required tree pruning of approximately one quarter
to one third of total coffee acreage in production.

 The coffee is sold as Maui
origin "specialty coffee" (as defined by the Specialty Coffee Association) as is most coffee produced in Hawaii. Hawaiian
coffees generally command a higher price per pound green than many other specialty coffees produced around the world but there can be
no assurance such prices will continue or that coffee prices or yields will be sufficient to cover all costs of production and sales.

 In addition to the Company's
commercial coffee farming operations, the Company grows bananas, citrus, and alfalfa. The Company also has approximately 660 acres of
fenced pasture for cattle grazing as well as approximately 40 acres of fenced pasture for goat grazing. The Company's banana operation
currently consists of approximately 14 acres. The bananas are sold by the Company to certain customers for distribution on Maui. KLMC
also grows and sells various citrus including grapefruit and lemons. These are sold to various local venders to be sold at farmer's
markets on Maui. Although the Company realizes minor amounts of revenue relating to these agricultural operations there are certain property
tax advantages with land engaged in active agriculture.

 For a description of
financial information by segment, please read Note 8 to the attached consolidated financial statements included in Item 8, which
information is incorporated herein by reference.

 Employees

 At March 1, 2024, Kaanapali
Land and its subsidiaries employed a total of 23 employees. Certain corporate services are provided by Pacific Trail Holdings, LLC ("Pacific
Trail") and its affiliates. Pacific Trail owns in excess of 80% of the Common Shares of Kaanapali Land. Kaanapali Land reimburses
Pacific Trail and its affiliates for these services and related overhead at cost.

 Trademarks and Service
Marks

 The Company maintains a variety
of trademarks and service marks that support each of its business segments. These marks are filed in various jurisdictions, including
the United States Patent and Trademark Office, the State of Hawaii Department of Commerce and Consumer Affairs and foreign trademark offices.
The trademarks and service marks protect, among other things, the use of the term "Kaanapali" and related names in connection
with the developments in the vicinity of the Kaanapali Resort area on Maui and the various trade names and service marks obtained in connection
with the Company's coffee operations. Certain trademarks, trade names and service marks have also been registered in connection with the
Kaanapali Coffee Farms development. Also protected are certain designs and logos associated with the names protected. Certain marks owned
by the Company have been licensed to third parties, however, the income there from is not material to the Company's financial results.
To the extent deemed advantageous in connection with the Company's ongoing businesses, to satisfy contractual commitments with respect
to certain marks or where the Company believes that there are future licensing opportunities with respect to specific marks, the Company
intends to maintain such marks to the extent necessary to protect their use relative thereto. The Company also intends to develop and
protect appropriate marks in connection with its future land development and agricultural activities.

 Market Conditions and
Competition

 There are a number of
factors that historically have negatively impacted Kaanapali Land's property activities, including market conditions, the difficulty
in obtaining regulatory approvals, the high cost of required infrastructure and the Company's ability to maintain operating surplus
in its other business segment. In addition, the Lahaina wildfire could eventually cause a weakening of the west Maui real estate
market, which could negatively ipact the Company. As a result, the planned use of many of the Company's land holdings and the
ability to generate cash flow from these land holdings have become long-term in nature, and the Company has found it necessary to
sell certain parcels in order to raise cash rather than realize their full economic potential through the entitlement process.

 There are several developers,
operators, real estate companies and other owners of real estate that compete with the Company in its property business on Maui, many
of which have greater resources. The number of competitive properties in a particular market could have a material adverse effect on
the Company's success. In addition, many properties previously purchased from the Company by retail buyers are listed for resale and
could provide additional competition to the Company in future years.

 Government Regulations
and Approvals

 The current regulatory approval
process for a project can take many years and involves substantial expense. There is no assurance that all necessary approvals and permits
will be obtained with respect to the Company's current and future projects. Generally, entitlements are extremely difficult to obtain
in Hawaii. Many different agencies at the state and County level are involved in the entitlement process. There is often significant opposition
from numerous local groups - including environmental organizations, various community and civic groups, condominium associations and politicians
advocating no-growth policies, among others. Certain ordinances adopted by the County of Maui have placed additional requirements on developers,
some of which may be difficult or expensive to satisfy. Other proposed ordinances that have not yet passed may place moratoria on new
development. It is currently unknown to what extent new legislative initiatives will impact the cost or timing of the Company's planned
developments.

 By letters dated October 28, 2022,
the State of Hawaii Commission on Water Resource Management ("CWRM") officially designated all six Aquifer System Areas of
the Lahaina Aquifer Sector, Maui, as Ground Water Management Areas, as of August 6, 2022. CWRM notified the Company that by August 5,
2023, the Company would need to apply for ground and surface water use permits to continue the Company's use of certain wells that are
integral to the Company's entire operations. The Company has submitted such applications for permits. The permits, when or if granted
and subject to various conditions, would preserve the Company's existing water uses as of August 6, 2022. The Company has submitted such
applications for permits. The Company cannot provide any assurances that CWRM will approve such permit applications for the amounts of
water the Company seeks or impose conditions on such use that might affect the Company's operations. If CWRM should fail to approve
the Company's water requests or impose onerous conditions on its use, CWRM's actions could delay the Company's development
in substantial and material respects and affect the Company's operations and finances. Further,
i n the event permits adequate to the Company's plans are not received timely or at all, there could be negative impacts on the
west Maui real estate market as a whole and the development and sale of the Company's lands on the Island of Maui, thereby materially
and adversely affecting the Company's operations, land sales, land values, results, and financial position.

 By
letter dated March 13, 2023, CWRM provided the Company a notice of alleged water violation covering the metering and monitoring of certain
designated areas with the Honokowai aquifer and hydrologic unit, as well as certain waste conditions CWRM allegedly observed on prior
investigations of those certain areas. The Company has engaged with CWRM to address the alleged violations and to seek clarification of
the issues. While the Company does not believe that such issues, when and if addressed by the Company, will prove material in cost, there
are no assurances of same.

 Kaanapali Land continues
to work toward the necessary entitlements for the Kaanapali 2020 Development Plan. While some of these lands have some form of entitlements,
it is anticipated that at least a substantial portion of the land will require state district boundary amendments and Community Plan amendments,
as well as rezoning approvals. In January 2009 the Company received approval of revisions to its development plans for the Puukolii Village
Mauka parcels. The Kaanapali 2020 Development Plan is recognized within the urban growth areas identified in the growth maps of the Maui
County General Plan. Approximately 1,500 acres of the Company's Maui land which is contiguous to Kaanapali 2020 Development Plan land
is located toward the top of mountain ridges and in gulches is classified as conservation, which precludes most other use. This conservation
land, and other land that will be designated as open space, is an important component of the overall project, allowing for the protection
of water and other natural resources, and its existence is expected to influence obtaining the entitlements for the remaining land.

 Environmental Matters

 The Company is subject to
environmental and health safety laws and regulations related to the ownership, operation, development and acquisition of real
estate, the destruction that occurred at the Pioneer Mill Site as a result of the Lahaina wildfire, or the operation of former
business units. Under those laws and regulations, the Company may be liable for, among other things, the costs of removal or
remediation of certain hazardous substances. In addition, the Company may find itself having to defend against personal injury
lawsuits based on exposure to substances including asbestos related liabilities. Regarding asbestos related liabilities, Kaanapali
Land, as successor to other entities and D/C Distribution Corporation ("D/C") have been named as defendants in personal
injury actions allegedly based on exposure to asbestos. Those laws and regulations often impose liability without regard to fault.
With regard to other environmental matters as generally described in the risk factors set forth below, no assurance can be given
that those matters will not have a material adverse effect on the Company's consolidated financial position or results of
operations. Reference is made to Item 1A. Risk Factors and Note 7 of the consolidated financial statements included in
Item 8 for a description of certain legal proceedings related to environmental conditions.

 Item 1A. Risk Factors

 The Company faces numerous
risks and uncertainties, including those set forth below. The risks described below are not the only risks that the Company faces. New
risk factors emerge from time to time and it is not possible to predict all such risk factors. Risk factors include a number of factors
that could negatively impact Kaanapali Land's property activities. Any of the risks described below and potential new risks not yet identified
may have a material adverse effect on the Company's business, consolidated financial position or results of operations.

 Reference is made to
Item 1. Business and Item 3. Legal Proceedings for further discussion of some of the risk factors facing
Kaanapali Land, LLC.

 Risks Related to Hawaiian Real Estate and
Development Markets

 The Kaanapali 2020
Development Plan (including, without limitation, Kaanapali Coffee Farms and Puukolii Village Mauka), as well as the Company's other
development activities, are, apart from the risks associated with the entitlement process described above, subject to the risks
generally incident to the ownership and development of real property. These include the possibility that cash generated from sales
will not be sufficient to meet the Company's continuing obligations. This could result from inadequate pricing or declines on asset
values or pace of sales of properties or disruptions and delays in the supply of construction material or changes in costs of
construction or development; increased and continuing government mandates; adverse changes in Hawaiian economic conditions, such as
increased costs resulting from continuing high rates of inflation, and availability of labor, increased costs of marketing and
production, restricted availability of financing; adverse changes in local, national and/or international economic conditions
(including adverse changes in exchange rates of foreign currencies for U.S. dollars); adverse effects of international political
events, such as geopolitical events in Europe, the Middle East, Asia, and Russia's invasion of Ukraine, additional terrorist
activity in the U.S. or abroad that lessen travel, tourism and investment in Hawaii; substantial increase in cost of travel to
Hawaii due to the increase in fuel costs or other events in the airline industry that could lessen travel and tourism in Hawaii; the
spread of contagious viruses or diseases that could negatively impact commerce generally and travel to Hawaii; the need for
unanticipated improvements or unanticipated expenditures in connection with environmental matters; increase in real estate tax rates
and other expenses; delays in obtaining permits or approvals for construction or development and adverse changes in laws,
governmental rules and fiscal policies; acts of God, including wildfires, earthquakes, volcanic eruptions, floods, droughts, fires,
tsunamis, unusually heavy or prolonged rains, and hurricanes; and other factors which are beyond the control of the Company. Because
of these risks and others, real estate ownership and development is subject to unexpected increases in costs.

 During 2012, the County
updated its General Plan which projects general growth of the County over the next few decades. This update included a new component
with maps which show directed growth areas. The County recognized the Kaanapali 2020 Development Plan to be within the urban
growth limits identified in these directed growth maps. Development of the Kaanapali 2020 lands in accordance with the Kaanapali
2020 Development Plan will require, in addition to state land use reclassification of some of the land from agriculture to urban,
appropriate designation under the County community plan, and the appropriate County zoning designation included in the Maui County
General Plan noting it as an urban growth area. In December 2021, the WMCP was updated and became part of
the General Plan. The Company is evaluating the effect, if any, the changes to the WMCP will have on its development plans.
Obtaining any and all of these approvals can involve a substantial amount of time and expense, and approvals may need to be
resubmitted if there is any subsequent, material deviation in current approved plans or significant objections by the responsible
government agencies. There are no assurances that the Company can obtain approvals or deviations.

 By letters dated October 28, 2022, CWRM officially designated all six Aquifer System Areas of the
Lahaina Aquifer Sector, Maui, as Ground Water Management Areas, as of August 6, 2022. CWRM notified the Company that by August 5, 2023,
the Company would need to apply for ground and surface water use permits to continue the Company's use of certain wells that are integral
to the Company's entire operations. The Company has submitted such applications for permits. The permits, when or if granted and subject
to various conditions, would preserve the Company's existing water uses as of August 6, 2022. The Company cannot provide any assurances
that CWRM will approve such permit applications for the amounts of water the Company seeks or impose conditions on such use that might
affect the Company's operations. If CWRM should fail to approve the Company's water requests or impose onerous conditions
on its use, CWRM's actions could delay the Company's development in substantial and material respects and affect the Company's
operations and finances. Further, i n the event permits adequate to the Company's plans are not
received timely or at all, there could be negative impacts on the west Maui real estate market as a whole and the development and sale
of the Company's lands on the Island of Maui, thereby materially and adversely affecting the Company's operations, land sales, land values,
results, and financial position.

 By
letter dated March 13, 2023, CWRM provided the Company a notice of alleged water violation covering the metering and monitoring of certain
designated areas with the Honokowai aquifer and hydrologic unit, as well as certain waste conditions CWRM allegedly observed on prior
investigations of those certain areas. The Company has engaged with CWRM to address the alleged violations and to seek clarification of
the issues. While the Company does not believe that such issues, when and if addressed by the Company will prove material in cost, there
are no assurances of same.

 The Company may, from time
to time and to the extent economically advantageous, sell rezoned, undeveloped or partially developed parcels, such as portions of the
Kaanapali 2020 Development Plan lands and/or the former Pioneer Mill site. The Company currently intends to develop the balance of its
lands for residential, resort, affordable housing, limited commercial and recreational purposes. There can be no assurances that the Company
will be successful in such efforts.

 Additional increases in interest
rates or downturn in the international, national or Hawaiian economy could affect the value of Company's properties and its profitability
and sales. A downturn of the economy could have a profound negative effect on the Hawaiian real estate market. However, the Kaanapali
resort area has historically enjoyed a significant mainland tourist market in the United States and Canada. A weakening of the Maui real
estate market has in the past negatively impacted, and would in the future negatively impact the Company.

 The Company's real estate
activities may be adversely affected by possible changes in tax laws, including changes which may have an adverse effect on resort
and residential real estate development. High rates of inflation adversely affect real estate development generally because of their impact
on interest rates. High interest rates not only increase the cost of borrowed funds to the Company, but also have a significant effect
on the affordability of permanent mortgage financing to prospective purchasers. However, high rates of inflation may permit the Company
to increase the prices that it charges in connection with land sales, subject to a slowdown in sales and increase in home construction
costs and to general economic conditions affecting the real estate industry and local market factors. There can be no assurance that Hawaiian
real estate values will rise, or that, if such values do rise, the Company's properties will benefit.

 Risks Relating to Natural Events

 The Company's development lands
are located in an area that is susceptible to hurricanes and seismic activity. In addition, during certain times of year, heavy rainfall
is not uncommon. These events may adversely impact the Company's development activities and infrastructure assets, such as roadways, reservoirs,
water courses and drainage ways. Significant events may cause the Company to incur substantial expenditures for investigation and restoration
of damaged structures and facilities. Climate change, flooding, drought, fires, wind, prolonged heavy rains, and other natural perils
can adversely impact agricultural production and water transmission and storage resources on lands owned or used by the Company.

 Beginning on August 8, 2023,
a wildfire occurred due east of historic Lahaina town in Maui. The fire spread rapidly due to extreme wind conditions caused in part
by Hurricane Dora which traveled 800 miles offshore west of Maui. The fires caused multiple fatalities, widespread damage to Lahaina
town and the surrounding area including the Company's 19-acre Pioneer Mill Site. The Company's offices and coffee mill were
located on the site as well as various other structures and a building which is leased to an unrelated third party and used to operate
a coffee store. The Company also utilized portions of the property for short term license agreements with third parties that generated
income for the Company. Although no employees were injured in the fire, the Company's offices and coffee store building were destroyed.
Additionally, most of the personal property of the licensees and the coffee mill was destroyed. The widespread destruction
is likely to cause disruptions in the Company's development plans. The damage to the coffee mill has disrupted operations and prevented
the Company from processing and selling the current year coffee crop. It is also likely that the fires and devastation caused thereby
will adversely affect the Maui economy and businesses operated on Maui. Clean up of Lahaina, including the Pioneer Mill site, has commenced
by U.S. Army Corps of Engineers ("USACE") contractors. Access to the property remains restricted, and such restrictions are
expected to continue while the clean-up of Lahaina town continues, estimated by USACE to be completed in approximately 18 months. The
Company has initiated claims with its insurance carriers and in October 2023, the Company received an initial, unallocated advance payment
of $1 million from its insurance carrier. Notwithstanding the advance, there can be no assurance that the Company's insurance coverage
will fully compensate the Company for its losses incurred in connection with the fire and related devastation, including the costs of
its structures and equipment lost in the fire, the loss in revenue from the lack of coffee sales, or the loss of income from the licensees.
The Company could experience losses in excess of our insured limits, and further claims for certain losses could be denied or subject
to deductibles or exclusions under our insurance policies. The Company has relocated its offices to temporary office facilities located
on its lands in Kaanapali and is in the planning stages of relocating its coffee mill to its farm in Kaanapali. Additionally, the Company
was able to recover its electronic files which were stored on its servers destroyed in the fire from back up files existing at an offsite
location. Recovery efforts continue.

 In addition, similar events
elsewhere in Hawaii may cause regulatory responses that impact all landowners. For example, as described in Note 7 to the
consolidated financial statements included in Item 8, the Company received notice from the Hawaii Department of Land and Natural
Resources ("DLNR") that DLNR on a periodic basis would inspect all significant dams and reservoirs in Hawaii, including
those maintained by the Company on Maui in connection with its agricultural operations. A series of such inspections have taken
place over the period from 2006 through the most recent inspections that occurred in April 2022. To date, the DLNR has cited certain
deficiencies concerning two of the Company's reservoirs relating to dam and reservoir safety standards established by the
State of Hawaii. These deficiencies include, among other things, vegetative overgrowth, erosion of slopes, uncertainty of inflow
control, spillway capacity, and freeboard, and uncertainty of structural stability under certain loading and seismic conditions. The
Company has taken certain corrective actions, including lowering the reservoir operating level; as well as updating important plans
to address emergency events and basic operations and maintenance. Remediation of all cited deficiencies could result in significant
and costly improvements which may be material to the Company.

 The DLNR categorizes the
reservoirs as "high hazard" under State of Hawaii Administrative Rules and State Statutes concerning dam and reservoir safety.
This classification, which bears upon government oversight and reporting requirements, may increase the cost of managing and maintaining
these reservoirs in a material manner.

 Risks Relating to Agriculture

 The Company remains engaged
in farming, harvesting, and milling operations relating to coffee orchards. The Company incurs significant risks relating to the cost
of growing and maintaining the coffee trees and producing and selling the coffee. As discussed above, the coffee mill was destroyed in
the Lahaina wildfire. The Company is in planning stages of building a new mill at its farm in Kaanapali, which is not expected to be completed
in time for the next coffee harvest. The coffee fields were not damaged in the fire. The Company is experiencing rising costs in its farming
operations as a result of certain supply chain disruptions, local labor shortages and the recent rise in inflation. Such cost increases
may negatively impact the Company's results of operations in the future and may cause disruptions in the Company's development
plans. The Company also incurs the risk that coffee farming could be materially affected because of the adverse effects on coffee yields
caused by coffee berry borer ("CBB"), coffee leaf rust ("CLR") or through regulatory risk, as described below.
The Company relies on water sourced from its irrigation systems, which divert water from streams and development tunnels into a network
of ditches, tunnels, flumes, siphons and reservoirs. In the event CWRM or any other regulatory body limits the Company's ability
to divert stream waters to its irrigation systems, the result could have a negative impact on the Company's ability to continue
with its agricultural operations and development plans.

 Several years ago, CBB, a
beetle native to Central Africa and that has existed for some time in Central and South America, was discovered on the islands of Hawaii
and Oahu. In 2017 the CBB appeared on the island of Maui. Effective May 1, 2017, the Hawaii Department of Agriculture ("HDOA")
began restricting the shipping of coffee grown on Maui to other Hawaiian Islands due to the discovery of the CBB on the island. The restriction
requires specific treatment and inspection by HDOA Plant Quarantine inspectors before shipping to other islands.

 In September 2020, the Company
discovered the CBB on its land. The Company has been aware of the possible spread to its crops and has maintained sound management practices.
The Company has developed an integrated management program designed to manage all aspects for cultural control of the CBB. Such program
has resulted in an increase in the costs of farming the coffee and the CBB may lower the quantity and quality of salable coffee.

 The overall effect of the
CBB is to reduce the yield and quality of the coffee bean. Farming methods have been developed to reduce the effect on the islands of
Hawaii and Oahu, and the Company has incorporated many of these practices into its integrated management program. While the Company intends
to continue to utilize the best practices available, there can be no assurance that the action by the HDOA or the spread of the CBB to
its crops will not have a material effect on its coffee operations.

 In October 2020, agriculture
officials with HDOA confirmed the presence of CLR on Maui. HDOA also
confirmed the presence of CLR on the island of Hawaii in November 2020. The Company found evidence of CLR on its farm in January 2021,
which was subsequently confirmed by HDOA. CLR is one of the most devastating diseases of coffee plants. It is established in all of the
other major coffee-growing areas of the world but had not previously been found in Hawaii. The HDOA has since discovered CLR in all of
the coffee-growing regions of Hawaii.

 CLR can cause severe defoliation.
Infected leaves drop prematurely, greatly reducing the plant's photosynthetic capacity and reducing berry growth. Long-term effects
of CLR can have a stronger impact by causing dieback, which reduces the number of productive nodes on branches, significantly impacting
the following year's yield.

 The Company has implemented
an integrated past management program designed to manage all aspects for cultural control of CLR. As with the CBB, such program may result
in an increase in the costs of farming the coffee and lower the quantity and quality of salable coffee, and there can be no assurance
that CLR will not have a material adverse effect on the Company's coffee operations.

 Risks Relating to Hawaiian, U.S. and World
Economies Generally

 The Company's businesses
will be subject to risks generally confronting the Hawaiian, U.S. and world economies. All of the Company's tangible property is located
in Hawaii. As a result, the Company's revenues will be exposed to the risks of investment in Hawaii and to the economic conditions prevalent
in the Hawaiian real estate market. While the Hawaiian real estate market is subject to economic cycles that impact tourism and investment
(particularly in the United States, Japan and other Pacific Rim countries), it is also influenced by the level of economic development
in Hawaii generally and by external and internal political forces.

 Adverse macroeconomic
conditions continue to cause economic uncertainty and market volatility. Continued high levels of inflation, slower growth or
recession, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, ongoing challenges in the supply
chain and other adverse macroeconomic conditions, may continue. Such uncertainty and risk may negatively impact the Company's
performance and financial results, including any potential negative impact on the values of its property holdings on Maui and future
planned development and sales of parcels of such development, changes in law and/or regulation, and uncertainty regarding government
and regulatory policy.

 Various factors impact
the desire of people to travel, particularly by air. Discretionary income and unemployment throughout the world also impact travel
to Hawaii and the market for real estate. Thus, Hawaii is subject to higher risks than other portions of the United States due to
its disproportionate reliance on air travel and tourism. The visitor industry is Hawaii's most important source of economic
activity, accounting for a significant portion of Gross State Product. For example, the outbreak of the COVID-19 coronavirus
materially impacted and limited the travel and tourism industry and a similar event could again trigger a prolonged adverse effect
on such economic activity.

 Because of the foregoing
considerations, the risks associated with the large reliance by Hawaii on a visitor base, both from foreign countries and the United States
mainland, will disproportionately impact the Company in future years, as market and visitation cycles play out.

 Environmental Risks and Environmental Regulations

 The Company is subject to environmental
and health safety laws and regulations related to the ownership, operation, development and acquisition of real estate, or the operation
of former business units. Under various federal, state and local laws, ordinances and regulations, a current or previous owner, developer
or operator of real estate may be liable for the costs of removal or remediation of certain hazardous toxic substances at, on, under or
in its property. The costs of such removal or remediation of such substances could be substantial. Such laws often impose liability without
regard to whether the owner or operator knew of, or was responsible for, the actual release or presence of such hazardous or toxic substances.
The presence of such substances may adversely affect the owner's ability to sell or rent such real estate or to borrow using such real
estate as collateral. Persons who arrange for the disposal or treatment of hazardous or toxic substances also may be liable for the costs
of removal or remediation of such substances at the disposal or treatment facility, whether or not such facility is owned or operated
by such person. Certain environmental laws impose liability for the release of asbestos containing material into the air, pursuant to
which third parties may seek recovery from owners or operators of real properties for personal injuries associated with such materials,
and prescribe specific methods for the removal and disposal of such materials. The cost of legal counsel and consultants to investigate
and defend against these claims is often high and can significantly impact the Company's operating results, even if no liability is ultimately
shown. No assurance can be given that the Company will not incur liability in the future for known or unknown conditions and any significant
claims may have a material adverse impact on the Company.

 Kaanapali Land, as successor by
merger to other entities, and D/C have been named as defendants in personal injury actions allegedly based on exposure to asbestos. While
there are relatively few cases that name Kaanapali Land, there were a substantial number of cases that were pending against D/C on the
U.S. mainland (primarily in California). Cases against Kaanapali Land (hereafter, "Kaanapali Land asbestos cases") are allegedly
based on its prior business operations in Hawaii and cases against D/C were allegedly based on sale of asbestos-containing products by
D/C's prior distribution business operations primarily in California. Certain asbestos-related proofs of claims in the bankruptcy case
have been withdrawn in connection with closing the bankruptcy. Each entity defending these cases believes that it has meritorious defenses
against these actions, but can give no assurances as to the ultimate outcome of these cases. The defense of these cases had a material
adverse effect on the financial condition of D/C as it was forced to file a voluntary petition for liquidation. Such bankruptcy case was
closed on June 14, 2023. Kaanapali Land does not presently believe that the cases in which it is named will result in any material
liability to Kaanapali Land; however, there can be no assurance in that regard. Reference is made to Note 7 to the Company's consolidated
financial statements included in Item 8 for additional discussion.

 Risks Relating to the Company's Shares

 The Company's shares are
not listed on a major exchange in the United States and are instead traded via the over-the-counter broker-dealer network. Therefore,
there may be additional steps and fees when trading the Company's shares. The Company's shares have less liquidity, low trading
volume, price volatility, and may experience larger spreads between bid price and ask price.

 Item 1B. Unresolved Staff Comments

 Not applicable.

 Item 1C. Cybersecurity

 The Company utilizes an affiliated
company of Pacific Trail ("IT Provider"), which is a provider of financial services to numerous affiliates of Pacific Trail,
which operate in the real estate and financial services industries for its accounting, accounts payable, treasury and related Information
Technology ("IT") and data processing functions. The Company's financial systems and related controls, procedures, risk
management, and including IT systems is integrated with that of the affiliated companies (together the "Affiliated Group").

 Cybersecurity and cybersecurity
risk management are important aspects of operations and a focus area for the Affiliated Group. Cybersecurity risks are evaluated on an
ongoing basis by the Affiliated Group and its IT Provider, both internally and with the assistance of external firms.

 The Company engages a
national technology firm in an effort to maintain and continually update its cybersecurity posture and keep current with evolving
cybersecurity risks. The IT Provider's cybersecurity program is examined on a regular basis, and new procedures and tools are
adopted on an ongoing basis to address the changing cybersecurity landscape. The IT Provider's technology team tests the
effectiveness of its tools with periodic exercises, including Penetration (PEN) tests. Risk is assessed to identify and manage risks
that could affect its ability to provide reliable processing to the Affiliated Group. This process requires IT Provider to identify
significant risks based upon the following: (a) management's internal knowledge of and perceived risks to the IT environment,
(b) significant changes to the internal and the third-party vendor IT environments, (c) input received annually from its consultants
and external auditors based on its auditor's review of the IT operating environment, (d) management's review of Service
Organization Controls (SOC) reports received from vendors housing critical applications, (e) regulatory requirements or operating
standards that may directly impact the IT environment, and (f) identification of threats and the evaluation of the probability and
likelihood of threats. For any significant risks identified, IT Provider's management is responsible for implementing
appropriate measures to monitor and manage these risks, including implementing or revising control procedures, conducting specific
consulting projects, and updating systems and processes to ensure compliance,.

 As many security threats
involve email and social engineering, the IT Provider has a multifaceted security training program for Affiliated Group employees. Cybersecurity
training classes are administered at least annually. Testing and assessment of employees' ability to thwart attacks are performed
throughout the year, with training being targeted at areas of users' weakness.

 The Company does not believe
that any risks from cybersecurity threats to date, including as a result of any previous cybersecurity incidents of which the Company
is aware, have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results
of operations, or financial conditions, however, there can be no assurance in that regard.

 The management of IT
Provider is responsible for directing and controlling operations and for establishing, communicating, and monitoring policies and
procedures. The key members of management are the President, (who has over 20 years' experience in his current position) and
is responsible for overseeing delivery of the services, and the Chief Information Officer ("CIO") (who has over 10
years' experience in his current position) and is responsible for overseeing the IT environment that supports the
services. Importance is placed on maintaining sound internal controls and promoting integrity and the ethical values of the
Affiliated Group in all personnel. Organizational values and behavioral standards are communicated to all personnel through policy
statements and the Employee Handbook. Additionally, the President and CIO are in daily contact with personnel at all levels and
reinforce the Affiliated Group's policies, procedures, and organizational values.

 The IT Provider reports
to the President and upper level management of the Affiliated Group as part of the risk management process in which IT Provider
management identifies significant risks through discussions with Affiliated Group management and develops responses and mitigating
actions to address such risks.

 Item 2. Properties

 Land Holdings

 The major real properties
owned by the Company are described under Item 1. Business.

 Item 3. Legal Proceedings

 The information set
forth under the "Commitments and Contingencies" section in Note 7 to the consolidated financial statements,
included in Part II, Item 8 of this report, is incorporated herein by reference.

 Item 4. Mine Safety Disclosures

 None.

 Item 5. Market for Registrant's
Common Equity, Related Stockholder Matters

 and
Issuer Purchases of Equity Securities

 As of March 1, 2024,
there were approximately 628 holders of record of the Company's 1,792,613 Common Shares and 52,000 Class C Shares. The Company has
no outstanding options, warrants to purchase or securities convertible into, common equity of the Company. There is no established
public trading market for the Company's shares. The Company has elected to be treated as a corporation for federal and state income
tax purposes. As a consequence, under current law, holders of shares in the Company will not receive direct
allocations of profits or losses relating to the financial results of the Company as they would for the typical limited liability
company that elects to be treated as a partnership for tax purposes. In addition, any distributions that may be made by the Company
will be treated as dividends. However, no dividends were paid by the Company in 2023 and the Company does not anticipate making any
distributions for the foreseeable future.

 Item 6. [Reserved]

 Item 7. Management's Discussion
and Analysis of Financial Condition and

 Results
of Operations

 All references to "Notes"
herein are to Notes to Consolidated Financial Statements contained in this report. Information is not presented on a reportable segment
basis in this section because in the Company's judgment such discussion is not material to an understanding of the Company's business.

 In addition to
historical information, this Report contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's current expectations about its businesses and the markets in which
the Company operates. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks,
uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual operating
results may be affected by various factors including, without limitation, natural events, including the Lahaina wildfire discussed
below, the effect of geopolitical, economic and market conditions in Hawaii and globally, including continued increases in the rate
of inflation, changes to fiscal and monetary policy, heightened interest rates and currency fluctuations, pressure on the
global banking system, competitive market conditions, uncertainties and costs related to the imposition of conditions on receipt of
governmental approvals and costs of material and labor, and actual versus projected timing of events all of which may cause such
actual results to differ materially from what is expressed or forecast in this report.

 Lahaina Wildfire

 Beginning on August 8, 2023, a wildfire occurred due
east of historic Lahaina town in Maui. The fire spread rapidly due to extreme wind conditions caused in part by Hurricane Dora which traveled
800 miles offshore west of Maui. The fires caused multiple fatalities, widespread damage to Lahaina town and the surrounding area including
the Company's 19-acre Pioneer Mill Site. The Company's offices and coffee mill were located on the site as well as various
other structures and a building which is leased to an unrelated third party and used to operate a coffee store. The Company also utilized
portions of the property for short term license agreements with third parties that generated income for the Company. Although no employees
were injured in the fire, the Company's offices and coffee store building were destroyed. Additionally, it appears that most of
the personal property of the licensees and the coffee mill was destroyed. The widespread destruction is likely to cause disruptions in
the Company's development plans. The damage to the coffee mill has disrupted operations and prevented the Company from processing
and selling the current year coffee crop. It is also likely that the fires and devastation caused thereby will adversely affect the Maui
economy and businesses operated on Maui. Clean up of Lahaina, including the Pioneer Mill Site, has commenced by USACE contractors. Access to the property remains restricted, and such restrictions are expected to continue while the
clean-up of Lahaina town continues, estimated by USACE to be completed in approximately 18 months. The Company has initiated claims with
its insurance carriers and in October 2023, the Company received an initial, unallocated advance payment of $1 million from its insurance
carrier. Notwithstanding the advance, there can be no assurance that the Company's insurance coverage will fully compensate the
Company for its losses incurred in connection with the fire and related devastation, including the costs of its structures and equipment
lost in the fire, the loss in revenue from the lack of coffee sales, or the loss of income from the licensees. The Company could experience
losses

 in excess of our insured limits, and further
claims for certain losses could be denied or subject to deductibles or exclusions under our insurance policies. The Company has relocated
its offices to temporary office facilities located on its lands in Kaanapali and is in the planning stages of relocating its coffee mill
to its farm in Kaanapali. Additionally, the Company was able to recover its electronic files which were stored on its servers destroyed
in the fire from back up files existing at an offsite location. Recovery efforts continue.

 Liquidity and Capital Resources

 Certain subsidiaries of Kaanapali
Land are jointly indebted to Kaanapali Land pursuant to a certain Secured Promissory Note in the principal amount of $70 million dated
November 14, 2002, and due September 30, 2029, as extended. Such note had an outstanding balance of principal and accrued interest
as of December 31, 2023 and 2022 of approximately $91 million and $90 million, respectively. The interest rate currently is 0.39%
per annum and compounds semi-annually. The note, which is prepayable, is secured by substantially all of the remaining real property owned
by such subsidiaries, pursuant to a certain Mortgage, Security Agreement and Financing Statement, dated as of November 14, 2002 and
placed on record in December 2002. The note has been eliminated in the consolidated financial statements because the obligors are consolidated
subsidiaries of Kaanapali Land.

 In addition to such Secured
Promissory Note, certain other subsidiaries of Kaanapali Land continue to be liable to Kaanapali Land under certain guarantees (the "Guarantees")
that they had previously provided to support certain Senior Indebtedness (as defined in the Plan) and the Certificate of Land Appreciation
Notes ("COLA Notes") formerly issued by Amfac/JMB Hawaii, Inc. (as predecessor to KLC Land). Although such Senior Indebtedness
and COLA Notes were discharged under the Plan, the Guarantees of the Non-Debtor KLC Subsidiaries were not. Thus, to the extent that the
holders of the Senior Indebtedness and COLA Notes did not receive payment on the outstanding balance thereof from distributions made under
the Plan, the remaining amounts due there under remain obligations of the Non-Debtor KLC Subsidiaries under the Guarantees. Under the
Plan, the obligations of the Non-Debtor KLC Subsidiaries under such Guarantees were assigned by the holders of the Senior Indebtedness
and COLA Notes to Kaanapali Land on the Plan Effective Date. Kaanapali Land has notified each of the Non-Debtor KLC Subsidiaries that
are liable under such Guarantees that their respective guarantee obligations are due and owing and that Kaanapali Land reserves all of
its rights and remedies in such regard. Given the financial condition of such Non-Debtor Subsidiaries, however, it is unlikely that Kaanapali
Land will realize payments on such Guarantees that are more than a small percentage of the total amounts outstanding there under or that
in the aggregate will generate any material proceeds to the Company. These Guarantee obligations have been eliminated in the consolidated
financial statements because the obligors are consolidated subsidiaries of Kaanapali Land, which is now the sole obligee there under.

 Those persons and entities
that were not affiliated with a predecessor of the Company and were holders of COLAs on the date that the Plan was confirmed by the Bankruptcy
Court, and their successors in interest, represent approximately 9.0% of the ownership of the Company.

 The Company had cash and
cash equivalents of approximately $26 million as of December 31, 2023, which is available for, among other things, working capital
requirements, including future operating expenses, and the Company's obligations for engineering, planning, regulatory and development
costs, drainage and utilities, environmental remediation costs on existing and former properties, potential liabilities resulting from
tax audits, and existing and possible future litigation. The Company does not anticipate making any distributions for the foreseeable
future.

 The primary business of
Kaanapali Land is the investment in and development of the Company's assets on the Island of Maui. The various development plans
will take many years at significant expense to fully implement. Reference is made to Item 1 - Business, Note 7 to the
consolidated financial statements and other footnotes to the consolidated financial statements included in Item 8. Proceeds from land
sales are the Company's only source of significant cash proceeds and the Company's ability to meet its liquidity needs is dependent
on the timing and amount of such proceeds.

 The Company's operations
have in recent periods been primarily reliant upon the net proceeds of sales of developed and undeveloped land parcels.

 In September 2014, KLMC sold an
approximate 14.9 acre parcel in West Maui. The Purchase Agreement commits KLMC to fund up to $0.6 million, depending
on various factors, for off-site roadway, sewer and electrical improvements that will also provide service to other KLMC properties. KLMC
may, at its discretion, design, construct, install, and complete all or portions of the offsite road, sewer and or electrical improvements,
in which case, the developer shall pay to KLMC the total costs thereof, less the KLMC committed amount. In relation to the sewer line
improvement, KLMC has entered into a contract for $1.1 million to install the sewer line. KLMC has paid $1.1 million on the contract which
has been recorded as a receivable, less KLMC's sewer line commitment of $0.2 million. In accordance with the Purchase Agreement,
the receivable accrues interest of 6.5% and is secured by the 14.9 acre property. The development has begun certain other offsite construction
has begun at the site. In conjunction with the Purchase Agreement, the Company retains certain approval rights relating to the uses and
designs of the site to ensure the uses and designs are aligned with the Company's planned master development. If such uses result in a
dispute with the developer of the site, such dispute could delay the development of the site. The 14.9 acre site is intended to be used
for a critical access hospital, skilled nursing facility, assisted living facility, and independent living facility.

 During the first quarter of 2006,
the Company received final subdivision approval on an approximate 336 acre parcel in the region "mauka" (toward the mountains)
from the main highway serving the area. This project, called Kaanapali Coffee Farms, originally consisted of 51 agricultural lots, offered
to individual buyers. During the second quarter of 2021, the Company converted an approximate 55 acre cultural resources lot to an agricultural
lot. The Company closed on the sale of this lot on March 22, 2022. The purchase price was $5 million, paid in cash at closing. The
Company has sold all the lots at Kaanapali Coffee Farms.

 The Company is in the planning
stages for the development of a 295-acre parcel in KCF Mauka. The parcel is to be comprised of 61 agricultural lots that will be offered
to individual buyers. The Company expects to develop the parcel in phases and all phases have been submitted to the County for subdivision
approval. The Company has been working with the County to resolve certain of the County's comments relating to the subdivision.
The Company's understanding is that all outstanding comments from the County have been resolved verbally with County staff. The
final approval letter has been pending and additional efforts are being made to secure the approval. Upon final subdivision approval of
all phases and receipt of final plat of the first phase from the County, which requires a bond in the amount of the cost to develop the
first phase, the Company can pre-sell the undeveloped lots in the first phase. The Company expects to market the lots in the first phase
upon receiving final approvals from the County, subject to various contingencies, including, but not limited to, governmental and market
factors and the availability of a bond to secure the first phase of the development. At this time, the Company is assessing whether the
fires and resulting devastation may negatively impact the marketability of the lots in the first phase of the development. Therefore,
there can be no assurance the Company will be able to meet such timetable, that the subdivision will ultimately be approved or that the
lots will sell for prices deemed advantageous by the Company.

 The Company is in the planning
stages for the development of a 241-acre residential development site in the region south of Kaanapali Coffee Farms known as Puukolii
Village. The conceptual master plan is comprised of 20 developable parcels planned for 940 units including a mix of affordable and market
priced homes, both single and multi-family, mixed use commercial, parks, school, and community facilities. Puukolii Village is fully entitled.
At this time, the Company is uncertain whether the fires and resulting devastation might delay approvals from the County. In conjunction
with the potential development of Puukolii Village and in coordination with the possible development by an unrelated third party of the
14.9 acre site to be used for a critical access hospital, as noted above, the Company entered into a contract to install a sewer line
from the Puukolii Village site to the critical care hospital site. The developer of the critical access hospital site is obligated to
share in the sewer line cost for the portion of the sewer line fronting the critical care hospital site (see discussion above).

 By letters dated October 28, 2022, CWRM officially designated all six Aquifer System Areas of
the Lahaina Aquifer Sector, Maui, as Ground Water Management Areas, as of August 6, 2022. CWRM notified the Company that by August 5,
2023, the Company would need to apply for ground and surface water use permits to continue the Company's use of certain wells that are
integral to the Company's entire operations. The Company has submitted such applications for permits. The permits, when or if granted
and subject to various conditions, would preserve the Company's existing water uses as of August 6, 2022. The Company cannot provide any
assurances that CWRM will approve such permit applications for the amounts of water the Company seeks or impose conditions on such use
that might affect the Company's operations. If CWRM should fail to approve the Company's water requests or impose onerous
conditions on its use, CWRM's actions could delay the Company's development in substantial and material respects and affect
the Company's operations and finances. Further, in the event permits adequate to the Company's plans are not received timely or
at all, there could be negative impacts on the west Maui real estate market as a whole and the development and sale of the Company's lands
on the Island of Maui, thereby materially and adversely affecting the Company's operations, land sales, land values, results, and financial
position.

 By letter dated March 13, 2023,
CWRM provided the Company a notice of alleged water violation covering the metering and monitoring of certain designated areas with the
Honokowai aquifer and hydrologic unit, as well as certain waste conditions CWRM allegedly observed on prior investigations of those certain
areas. The Company has engaged with CWRM to address the alledged violations and to seek clarification of the issues while the Company
does not believe that such issues, when and if addressed by the Company will prove material in cost, there are no assurances of same.

 On January 15, 2022,
Pacific Trail Holdings LLC, the manager of the Company, adopted a plan to freeze the benefit accruals under and close participation
in the Company's former Pension Plan (the "Pension Plan") and terminated the Pension Plan on or about June 1, 2022. The Company paid lump sum benefits totaling approximately $0.42 million
to Pension Plan participants during October 2022, thereby settling all Pension Plan liabilities.

 The Company transferred $5 million,
which was approximately 25% of the Pension Plan assets to a qualified replacement plan ("QRP"). Such assets are maintained
in a suspense account within the QRP pending allocation to plan participants. The assets will be allocated to the participants in the
QRP who were participants in the terminated Pension Plan and the employees of certain affiliates of the Company. Such allocations are
planned to be allocated ratably over a period not to exceed seven years to comply with regulatory requirements. The remaining assets of
the terminated Pension Plan of approximately $14.5 million reverted to the Company on September 15, 2023.

 The Company was subject to a 20%
excise tax of approximately $2.9 million, which was paid in October 2023. The funds freed up cash to better prepare the Company for tightening
credit markets and are available for, among other things, working capital requirements, including future operating expenses, the Company's
obligations for engineering, planning, regulatory and development costs, drainage and utilities, and potential environmental remediation
costs on existing properties.

 Although the Company
believes that it has sufficient liquidity to fund its operations and capital needs over the next 12 months and beyond, should
the Company be unable to satisfy its liquidity requirements from its existing resources and future property sales, it will likely
pursue alternate financing arrangements. However it cannot be determined at this time what, if any, financing alternatives may be
available and at what cost.

 Results of Operations

 Reference is made to
the footnotes to the financial statements included in Item 8, for additional discussion of items addressing comparability
between years.

 2023 Compared to 2022

 The decrease in investments at
December 31, 2023 as compared to December 31, 2022 is primarily due to the remaining assets of the terminated Pension Plan that were reverted
to the Company on September 15, 2023.

 The increase in pension plan investments
at December 31, 2023 as compared to December 31, 2022 is due to terminated Pension Plan assets of $5 million transferred to a qualified
replacement plan pending allocation to plan participants.

 The decrease in deferred income
taxes at December 31, 2023 as compared to December 31, 2022 is primarily due to the reversal of the reserve of the Company's net
operating loss carry forward included as a deferred tax asset related to the remaining assets of the terminated Pension Plan that were
reverted to the Company.

 The decrease in other liabilities
at December 31, 2023 as compared to December 31, 2022 is primarily due to the derecognition of a contingent liability related to the D/C
bankruptcy case.

 The decrease in sales and the
related decrease in costs of sales for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is primarily due
to the sale of a lot for $5 million during the first quarter 2022, as well as, the reduction of coffee sales as a result of the Lahaina
wildfire.

 The increase in interest and other
income for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is primarily due to an increase in cash available
for investment and market value adjustments related to investments.

 The decrease in selling, general
and administrative expenses for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is primarily due to the
derecognition of a contingent liability related to the D/C bankruptcy case during second quarter 2023.

 The increase in excise tax expense
for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is due to the excise tax that was paid in October
2023 related to the terminated Pension Plan.

 2022 Compared to 2021

 The increase in sales and the
related increase in costs of sales for the year ended December 31, 2022 as compared to the year ended December 31, 2021 is primarily
due to the sale of the 55 acre agricultural lot during the first quarter 2022.

 The increase in selling, general
and administrative expenses for the year ended December 31, 2022 as compared to the year ended December 31, 2021 is due to the insurance
recoveries related to asbestos claims offset by the adjustment of the loss contingency during first quarter 2021.

 Critical Estimates and Significant Accounting
Policies

 The discussion and analysis
of the Company's financial condition and results of operations are based upon the Company's consolidated financial statements, which have
been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements
requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosures of contingent assets and liabilities. These estimates are based on historical experience and on various
other assumptions that management believes are reasonable under the circumstances; additionally management evaluates these results on
an on-going basis. Management's estimates form the basis for making judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources. Different estimates could be made under different assumptions or conditions, and in any event,
actual results may differ from the estimates. The impact of a change in these estimates, assumptions, and judgments could materially affect
the amounts reported in the Company's consolidated financial statements.

 The Company reviews its property
for impairment of value if events or circumstances indicate that the carrying amount of its property may not be recoverable. Such reviews
contain uncertainties due to assumptions and judgments considering certain indicators of impairment such as significant changes in asset
usage, significant deterioration in the surrounding economy or environmental problems. If such indications are present and the undiscounted
cash flows estimated to be generated by those assets are less than the assets' carrying value, the Company will adjust the carrying value
down to its estimated fair value. Fair value is based on management's estimate of the property's fair value based on discounted projected
cash flows. If significant changes occur in future periods, future operating results could be materially impacted.

 Prior to the
termination of the Pension Plan and settlement of the Pension Plan benefit obligations, pension assumptions were significant inputs
to the actuarial models that measured pension benefit obligations and related effects on operations. Two assumptions - discount rate
and expected return on assets –were important elements of plan expense and asset/liability measurement. The Company evaluated
these critical assumptions at least annually. The Company periodically evaluated other assumptions involving demographic factors
such as mortality, and updated the assumptions to reflect experience and expectations for the future. Such assumptions required
significant judgment by the Company and its actuaries and therefore actual results in any given year may have differed from
actuarial assumptions because of economic and other factors. Reference is made to Note 4 to the consolidated financial
statements included in Item 8 for further discussion.

 Deferred income taxes are
accounted for in accordance with FASB ASC Topic 740 – Income Taxes. Deferred income taxes reflect the net tax effects of
temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for income tax purposes. Topic 740 requires that deferred tax assets be reduced by a valuation allowance if it is more likely than
not that some portion of the deferred income tax asset will not be realized. The Company has a deferred tax asset related to federal
net operating losses (NOLs) of $7,700, of which $4,063 has been subject to a valuation allowance. Such allowance is subject to
assumptions and judgment. If the Company generates taxable income in future years and the Company determines that the valuation
allowance is no longer required, the tax benefit for the remaining deferred tax asset will be recognized at that time. Reference is
made to Note 5 to the consolidated financial statements included in Item 8 for further discussion.

 Material legal proceedings of
the Company include Kaanapali Land, as successor by merger to other entities, and D/C having been named as defendants in personal injury
actions allegedly based on exposure to asbestos. Cases against Kaanapali Land are allegedly based on its prior business operations in
Hawaii and cases against D/C are allegedly based on sale of asbestos-containing products by D/C's prior distribution business operations
primarily in California. Predicting the outcome of such claims and estimating the costs and exposure requires the Company to make estimates,
assumptions, and judgments that could result in actual costs to be materially different from such estimates. Reference is made to Note
7 to the consolidated financial statements included in Item 8 for further discussion.

 Item 7A. Quantitative and Qualitative Disclosures
About Market Risk

 The Company's future earnings,
cash flows and fair values relevant to financial instruments are dependent upon prevailing market rates. Market risk is the risk of loss
from adverse changes in market prices and interest rates. The Company manages its market risk by matching projected cash inflows from
operating properties, financing activities, and investing activities with projected cash outflows to fund capital expenditures and other
cash requirements. The Company does not enter into financial instruments for trading purposes.

 Item 8. Financial Statements and Supplementary
Data

 Report of Independent Registered Public Accounting
Firm (PCAOB ID Number 248)

 Consolidated Balance Sheets, December 31, 2023
and 2022

 Consolidated Statements of Operations for the
years ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Comprehensive Income
(Loss) for the years ended December 31, 2023,

 2022 and 2021

 Consolidated Statements of Equity for the years
ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Cash Flows for the
years ended December 31, 2023, 2022 and 2021

 Notes to Consolidated Financial Statements

 Schedules not filed:

 All schedules have been omitted
as the required information is inapplicable or the information is presented in the financial statements or related notes.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 The Managing Member and Stockholders

 Opinion on the financial statements

 We have audited the accompanying consolidated balance sheets of Kaanapali
Land, LLC (a Delaware limited liability company) and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related
consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the three years in the period ended
December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results
of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting
principles generally accepted in the United States of America.

 Basis for opinion

 These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit
of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical audit matter

 The critical audit matter communicated below is a matter arising from the
current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective,
or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter
or on the accounts or disclosures to which it relates.

 Impairment of Land

 At December 31, 2023, the Company's Land balance, included within
Property, net, totaled $59.9 million. During 2023, the Company did not recognize impairment relating to Land. As described further in
Note 1 to the consolidated financial statements, the Company reviews its Property for impairment of value if events or circumstances indicate
that the carrying amount of its Property may not be recoverable. As a result of the August 2023 wildfires in the historic Lahaina town
in Maui, the Company performed an impairment evaluation of Land to determine if provisions for impairment losses should be recognized.

 The principal considerations for our determination that the impairment
of Land is a critical audit matter is that it involves a high degree of subjectivity in evaluating management's judgments not
only regarding impairment triggers but also regarding estimates and assumptions utilized in its assessment of fair value.

 Our audit procedures related to the evaluation of impairment of Land included
the following, among others.

 We obtained an understanding and evaluated the design and implementation
of relevant controls over the evaluation of potential impairments of Land

 We evaluated the appropriateness of management's qualitative impairment
indicator analysis, including triggering factors.

 We evaluated the level of knowledge, skill, and ability of management's
specialists and their relationship to the Company. With the assistance of internal valuation specialists, we evaluated the reasonableness
of the methods and significant inputs and assumptions used in the fair value analyses of Land, which included the assessing reasonableness
of sale comparison approach and adequacy of comparable properties used in the analyses. We evaluated these inputs and assumptions by reviewing
supporting data provided by management's specialists and comparing them to observable market data.

 /s/ GRANT THORNTON LLP

 We have served as the Company's
auditor since 2015.

 Dallas,
Texas

 March 27, 2024

 Consolidated Balance Sheets

 December 31, 2023 and 2022

 (Dollars in Thousands, except share data)

 2023

 2022

 Assets

 Cash and cash equivalents

 $

 26,260

 $

 19,815

 Property, net

 60,200

 58,988

 Investments

 --

 19,115

 Retirement plan investments

 5,067

 --

 Other assets

 1,492

 Total assets

 $

 93,019

 $

 98,514

 Liabilities

 Accounts payable and accrued expenses

 $

 $

 Deposits and deferred gains

 1,433

 1,371

 Deferred income taxes

 5,979

 9,322

 Other liabilities

 1,550

 7,174

 Total liabilities

 9,308

 18,510

 Commitments and contingencies (Note 7)

 Equity

 Common equity, at 12/31/2023 and 12/31/2022

 Shares authorized – unlimited, Class C shares

 52,000;
 Common shares issued and outstanding 1,792,613

 at 12/31/2023 and
 12/31/2022, Class C shares issued and

 outstanding
 52,000 in 12/31/2023 and 12/31/2022

 --

 --

 Additional paid-in capital

 5,471

 5,471

 Accumulated earnings

 78,240

 74,533

 Total shareholders' equity

 83,711

 80,004

 Total liabilities and shareholders' equity

 $

 93,019

 $

 98,514

 Consolidated Statements of Operations

 Years ended December 31, 2023, 2022 and 2021

 (Dollars in Thousands except Per Share Amounts)

 2023

 2022

 2021

 Revenues:

 Sales

 $

 2,990

 $

 9,063

 $

 4,576

 Interest and other income

 1,726

 Crop insurance proceeds

 --

 --

 5,254

 9,224

 4,753

 Cost and expenses:

 Cost of sales

 2,858

 6,840

 5,217

 Selling, general and administrative

 ( 804)

 1,626

 ( 777)

 Excise tax expense

 2,952

 --

 --

 Depreciation and amortization

 5,204

 8,709

 4,709

 Operating income before other income

 and income taxes

 Other income:

 Casualty loss insurance proceeds

 --

 --

 Settlement gain on pension plan assets

 (before taxes)

 --

 2,479

 --

 2,479

 --

 Income before income taxes

 2,994

 Income tax benefit (expense)

 3,343

 ( 202)

 ( 350)

 3,707

 2,792

 Less: Net loss attributable to

 non-controlling interests

 --

 ( 58)

 ( 551)

 Net income attributable to shareholders

 $

 3,707

 $

 2,850

 $

 Net income per share – basic and diluted

 $

 2.01

 $

 1.55

 $

 0.13

 Consolidated Statements of Comprehensive Income
(Loss)

 Years ended December 31, 2023, 2022 and 2021

 (Dollars in Thousands)

 2023

 2022

 2021

 Net income

 $

 3,707

 $

 2,792

 $

 Other comprehensive income (loss):

 Net realized gains on pension plan assets

 --

 ( 3,106)

 1,827

 Income tax expense related to

 items of other comprehensive income

 --

 ( 475)

 Other comprehensive income (loss), net of tax

 --

 ( 2,298)

 1,352

 Comprehensive income (loss)

 --

 1,046

 Comprehensive loss attributable to

 non-controlling interests

 --

 ( 58)

 ( 551)

 Comprehensive income attributable

 to shareholders

 $

 3,707

 $

 $

 1,597

 Consolidated Statements of Equity

 Years ended December 31, 2023, 2022 and 2021

 (Dollars in Thousands)

 Common

 Stock

 Additional

 Paid-In

 Capital

 Accumu-

 lated

 (Deficit)

 Earnings

 Accumu-

 lated

 Other

 Compre-

 hensive

 Income/

 (Loss)

 Total

 Stock-

 holders'

 Equity

 Non

 Controlling

 Interests

 Total

 Equity

 Balance December 31, 2020

 --

 $

 5,471

 $

 71,440

 $

 $

 77,857

 $

 $

 78,519

 Effect of consolidat-

 ing Kaanapali

 Coffee Farms

 Lot Owners'

 Association

 --

 --

 --

 Other comprehensive

 income, net of tax

 --

 --

 --

 1,352

 1,352

 --

 1,352

 --

 --

 --

 ( 551)

 Balance December 31, 2021

 --

 5,471

 71,698

 2,298

 79,467

 80,209

 Effect of deconsolidat-

 ing Kaanapali

 Coffee Farms

 Lot Owners'

 Association

 --

 --

 ( 15)

 --

 ( 15)

 ( 684)

 ( 699)

 Other comprehensive

 loss, net of tax

 --

 --

 --

 ( 2,298)

 ( 2,298)

 --

 ( 2,298)

 --

 --

 2,850

 --

 2,850

 ( 58)

 2,792

 Balance December 31 2022

 --

 5,471

 74,533

 --

 80,004

 --

 80,004

 Net income

 --

 --

 3,707

 --

 3,707

 --

 3,707

 Balance December 31, 2023

 $

 --

 $

 5,471

 $

 78,240

 $

 --

 $

 83,711

 $

 --

 $

 83,711

 Consolidated Statements of Cash Flows

 Years ended December 31, 2023, 2022 and 2021

 (Dollars in Thousands)

 2023

 2022

 2021

 Cash flows from operating activities:

 $

 3,707

 $

 2,792

 $

 Adjustments to reconcile net income (loss) to net
 cash

 provided by (used in) operating activities:

 Proceeds from property sales

 --

 4,750

 1,040

 Gain on property sales

 --

 ( 1,705)

 ( 303)

 Net periodic pension cost (credit)

 --

 ( 2,275)

 ( 588)

 Depreciation and amortization

 Deferred income taxes

 ( 3,343)

 Effect of deconsolidating the Kaanapali
 Coffee

 Farms Lot
 Owners' Association

 --

 --

 Changes in operating assets and liabilities:

 Investments

 19,115

 --

 --

 Retirement plan investments

 ( 5,067)

 --

 --

 Other assets

 ( 598)

 6,727

 ( 3,982)

 Accounts payable, accrued expenses, deposits,

 deferred
 gains and other

 ( 5,859)

 ( 7,872)

 2,532

 Net cash provided by (used in) operating activities

 8,153

 2,955

 ( 988)

 Cash flows from investing activities:

 Property additions

 ( 1,823)

 ( 332)

 ( 436)

 Receivable due to sewer line installation

 ( 885)

 --

 --

 Proceeds from casualty loss insurance

 1,000

 --

 --

 Relinquishment of property as a result of

 deconsolidating the Kaanapali Coffee Farms

 Lot Owners' Association

 --

 --

 Relinquishment of cash as a result of

 deconsolidating the Kaanapali Coffee Farms

 Lot Owners' Association

 --

 ( 1,177)

 --

 Net cash used in investing activities

 ( 1,708)

 ( 1,362)

 ( 436)

 Cash flows from financing activities:

 Contributions

 --

 Net cash provided by financing activities

 --

 Net increase (decrease) in cash and cash equivalents

 6,445

 1,978

 ( 780)

 Cash
and cash equivalents at beginning of year

 19,815

 17,837

 18,617

 Cash
and cash equivalents at end of year

 $

 26,260

 $

 19,815

 $

 17,837

 Notes to Consolidated Financial Statements

 (Dollars in Thousands)

 (1) Summary of Significant Accounting Policies

 Organization and Basis
of Accounting

("Kaanapali Land"), a Delaware limited liability company is the reorganized entity resulting from the Joint Plan of
Reorganization of Amfac Hawaii, LLC (now known as KLC Land Company, LLC ("KLC Land")), certain of its subsidiaries (together
with KLC Land, the "KLC Debtors") and FHT Corporation ("FHTC" and, together with the KLC Debtors, the
"Debtors") under Chapter 11 of the Bankruptcy Code, dated June 11, 2002 (as amended, the "Plan"). The Plan
was filed jointly by all Debtors to consolidate each case for joint administration in the Bankruptcy Court in order to (a) permit
the petitioners to present a joint reorganization plan that recognized, among other things, the common indebtedness of the debtors
(i.e. the Certificate of Land Appreciation Notes ("COLAs") and Senior Indebtedness (as defined in the Plan)) and (b)
facilitate the overall administration of the bankruptcy proceedings. As indicated in the Plan, Kaanapali Land has elected to be
taxable as a corporation.

 The Plan was confirmed by
the Bankruptcy Court by orders dated July 29, 2002 and October 30, 2002 (collectively, the "Order") and became effective
November 13, 2002 (the "Plan Effective Date"). During August 2005, pursuant to a motion for entry of final decree, the bankruptcy
cases were closed.

 There are 1,792,613 Common
Shares and 52,000 Class C Shares issued, all of which are outstanding at December 31, 2023.

 The accompanying consolidated
financial statements include the accounts of Kaanapali Land and all of its subsidiaries and its predecessor (collectively, the "Company"),
which include KLC Land and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated
in consolidation. Prior to July 1, 2022, the Kaanapali Coffee Farms Lot Owners' Association ("LOA") was consolidated
into the Company's consolidated financial statements and the interests of third-party owners of the lots in the Kaanapali Coffee
Farms subdivision were reflected as equity including non-controlling interests. The Company sold its last owned lot in the Kaanapali Coffee
Farms subdivision in early 2022 and as a consequence, the Company elected to turnover control of the LOA board of directors to the third-party
owners of the lots in the subdivision. An election for a new board of directors, comprised entirely of third-party lot owners, was held
during June 2022 and the results of the election were announced July 1, 2022. Therefore, effective July 1, 2022, the Company deconsolidated
the LOA due to the loss of control over the LOA and derecognized the assets, liabilities, equity (including the non-controlling interests)
and results of operations in its financial statements. The Company does not have any direct or indirect retained interest in the LOA.
The Company currently has agreements with the LOA to farm coffee, perform common area maintenance services and provide non-potable water.

 The Company's continuing
operations are in two business segments - Agriculture and Property. The Agriculture segment primarily engages in farming, harvesting and
milling operations relating to coffee orchards pursuant to farming agreements with the LOA and a related entity. The Company also cultivates,
harvests and sells bananas and citrus fruits and engages in certain ranching operations. The Property segment primarily develops land
for sale and negotiates bulk sales of undeveloped land. The Property and Agriculture segments operate exclusively in the State of Hawaii.
For further information on the Company's business segments see Note 8.

 Cash and Cash Equivalents

 The Company considers as
cash equivalents all investments with maturities of three months or less when purchased. Included in this balance as of December 31,
2023 is a money market fund for $ 23,750 that is considered to be a fair value hierarchy Level 1 investment. The Company's cash
balances are maintained primarily in two financial institutions. Such balances significantly exceed the Federal Deposit Insurance Corporation
insurance limits. Management does not believe the Company is exposed to significant risk of loss on cash and cash equivalents.

 Subsequent Events

 The Company has performed
an evaluation of subsequent events from the date of the financial statements included in this annual report through the date of its filing
with the Securities and Exchange Commission. For further information on the Company's subsequent events See Note 10.

 Revenue Recognition

 Revenue from real property
sales is recognized at the time of closing when control of the property transfers to the customer. After closing of the sale transaction,
the Company has no remaining performance obligation.

 Other revenues are recognized
when control of goods or services transfers to the customers, in the amount that the Company expects to receive for the transfer of goods
or provision of services.

 Revenue recognition standards
require entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled to receive in exchange. The revenue recognition standards have implications for
all revenues, excluding those that are under the specific scope of other accounting standards.

 The Company's revenues
that were subject to revenue recognition standards for the years ended December 31, 2023, 2022 and 2021, were as follows (in thousands):

 Years ended December 31,

 2023

 2022

 2021

 Sales of real estate

 $

 $

 4,750

 $

 1,040

 Coffee and other sales

 2,283

 2,909

 2,557

 Total

 $

 2,283

 $

 7,659

 $

 3,597

 The revenue recognition standards
require the use of a five-step model to recognize revenue from customer contracts. The five-step model requires that the Company
(i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction
price, including variable consideration to the extent that it is probable that a significant future reversal will not occur,
(iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as)
the Company satisfies the performance obligation.

 Lease Accounting

 The Company's lease
arrangements, both as lessor and as lessee, are short-term leases. The Company leases land to tenants under operating leases, and the
Company leases property, primarily office and storage space, from lessors under operating leases. During the years ended December 31,
2023, 2022 and 2021, the Company recognized $ 707, $ 1,101 and $ 835, respectively, of lease income, substantially comprised of non-variable
lease payments. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $ 106, $ 75 and $ 57, respectively,
of lease expense, substantially comprised of non-variable lease payments. The majority of the Company's leases to tenants were terminated
due to the Lahaina wildfire.

 Recently Issued Accounting Pronouncements

 In December 2022, the FASB
issued ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848". The amendments in
this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be
permitted to apply the relief in Topic 848. The amendments in this Update are effective for all entities upon issuance of this
Update. The adoption of ASU No. 2022-06 did not have a material impact on the Company's consolidated financial statements.

 In October 2023, the FASB issued
ASU No. 2023-06 ("ASU 2023-06"), Disclosure Improvements - Codification Amendment in Response to the SEC's Disclosure
Update and Simplification Initiative. This ASU modified the disclosure and presentation requirements of a variety of codification topics
by aligning them with the SEC's regulations. The amendments to the various topics should be applied prospectively, and the effective
date will be determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure.
If the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K by June 30, 2027, then this ASU will not
become effective. Early adoption is prohibited. While the Company is currently evaluating the effect that implementation of this update
will have on its consolidated financial statements, no significant impact is anticipated.

 In November 2023, the FASB issued
ASU No. 2023-07 ("ASU 2023-07"), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to
improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition,
the amendments in the ASU enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment
measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other
disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal
years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements.
Early adoption is permitted. While the Company is currently evaluating the effect that implementation of this update will have on its
consolidated financial statements, no significant impact is anticipated.

 In December 2023, the FASB issued
ASU No. 2023-09 ("ASU 2023-09"), Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the
transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.
ASU 2023-09 is effective for annual periods beginning after December 15, 2024, on a prospective basis. Early adoption is permitted. While
the Company is currently evaluating the effect that implementation of this update will have on its consolidated financial statements,
no significant impact is anticipated.

 Land Development

 During the first quarter of 2006,
the Company received final subdivision approval on an approximate 336 acre parcel in the region "mauka" (toward the mountains)
from the main highway serving the area. This project, called Kaanapali Coffee Farms, originally consisted of 51 agricultural lots, offered
to individual buyers. During the second quarter of 2021, the Company converted an approximate 55 acre cultural resources lot to an agricultural
lot. The Company closed on the sale of this lot on March 22, 2022. The purchase price was $ 5,000, paid in cash at closing. The Company
has sold all lots at Kaanapali Coffee Farms.

 In September 2014, Kaanapali
Land Management Corp. ("KLMC"), pursuant to a property and option purchase agreement ("Purchase Agreement")
with an unrelated third party, sold an approximately 14.9
acre parcel in West Maui. The Purchase Agreement (as subsequently amended) commits KLMC to fund up to $ 583,
depending on various factors, for off-site roadway, sewer and electrical improvements that will also provide service to other KLMC
properties. KLMC may, at its discretion, design, construct, install, and complete all or portions of the off-site road, sewer and/or
electrical improvements, in which case the developer shall pay to KLMC the total costs thereof, less the KLMC committed amount. In
relation to such sewer line improvement, KLMC has entered into a contract for $ 1,070
to install the sewer line. KLMC has paid $ 1,068
on the contract which has been recorded as a receivable, less KLMC's sewer line commitment of $ 208.
In accordance with the Purchase Agreement, the receivable accrues interest of 6.5 %
and is secured by the 14.9 acre property. The developer has begun certain other off-site construction at the site. In conjunction
with the Purchase Agreement, the Company retains certain approval rights relating to the uses and designs of the site to ensure the
uses and designs are aligned with the Company's planned master development. If such uses result in a dispute with the
developer of the site, such dispute could delay the development of the site. The 14.9 acre site is intended to be used for a
critical access hospital, skilled nursing facility, assisted living facility, and independent living facility.

 Project costs associated
with the development and construction of real estate projects are capitalized and classified as Property, net. Such capitalized costs
are not in excess of the projects' estimated fair value as reviewed periodically or as considered necessary. In addition, interest, insurance
and property tax are capitalized to qualifying assets during the period that such assets are undergoing activities necessary to prepare
them for their intended use.

 For development projects,
capitalized costs are allocated using the direct method for expenditures that are specifically associated with the lot being sold and
the relative-sales-value method for expenditures that benefit the entire project.

 Recognition of Profit
From Real Property Sales

 In accordance with the core
principle of ASC 606, revenue from real property sales is recognized at the time of closing when control of the property transfers to
the customer. After closing of the sale transaction, the Company has no remaining performance obligation. When the sale does not meet
the requirements for full profit recognition, all or a portion of the profit is deferred until such requirements are met.

 Other revenues in the scope
of ASC 606 are recognized when control of goods or services transfers to the customers, in the amount that the Company expects to receive
for the transfer of goods or provision of services.

 Property is stated at cost.
Depreciation is based on the straight-line method over the estimated economic lives of 15 - 40 years for the Company's depreciable land
improvements, 3 - 18 years for machinery and equipment. Maintenance and repairs are charged to operations as incurred. Significant betterments
and improvements are capitalized and depreciated over their estimated useful lives.

 2023

 2022

 Property, net:

 Land

 $

 59,874

 $

 58,381

 Buildings

 1,234

 Machinery and equipment

 4,330

 5,239

 65,162

 64,854

 Accumulated depreciation

 ( 4,962)

 ( 5,866)

 Property, net

 $

 60,200

 $

 58,988

 The Company's significant
property holdings are on the island of Maui consisting of approximately 3,900 acres, of which approximately 1,500 acres is classified
as conservation land which precludes development. The Company has determined, based on its current projections for the development and/or
disposition of its property holdings, that the property holdings are not currently recorded in an amount in excess of proceeds that the
Company expects that it will ultimately obtain from the operation and disposition thereof.

 Inventory of land held
for sale, if any, is carried at the lower of cost or fair market value, less costs to sell, which is based on current and
foreseeable market conditions, discussions with real estate brokers and review of historical land sale activity (Level 2 and 3).
Land is currently utilized for commercial specialty coffee farming operations which also support the Company's land
development program, as well as, farming bananas, citrus and other farm products, and ranching operations. Additionally,
miscellaneous parcels of land have been leased or licensed to third parties on a short term basis prior to the Lahaina wildfire.

 Beginning on August 8, 2023, a wildfire occurred due
east of historic Lahaina town in Maui. The fire spread rapidly due to extreme wind conditions caused in part by Hurricane Dora which traveled
800 miles offshore west of Maui. The fires caused multiple fatalities, widespread damage to Lahaina town and the surrounding area including
the Company's 19-acre Pioneer Mill Site. The Company's offices and coffee mill were located on the site as well as various
other structures and a building which is leased to an unrelated third party and used to operate a coffee store. The Company also utilized
portions of the property for short term license agreements with third parties that generated income for the Company. Although no employees
were injured in the fire, the Company's offices and coffee store building were destroyed. Additionally, it appears that most of
the personal property of the licensees and the coffee mill was destroyed. The widespread destruction is likely to cause disruptions in
the Company's development plans. The damage to the coffee mill has disrupted operations and prevented the Company from processing
and selling the current year coffee crop. It is also likely that the fires and devastation caused thereby will adversely affect the Maui
economy and businesses operated on Maui. Clean up of Lahaina, including the Pioneer Mill Site, has commenced by U.S. Army Corps of Engineers
("USACE") contractors. Access to the property remains restricted, and such restrictions are expected to continue while the
clean-up of Lahaina town continues, estimated by USACE to be completed in approximately 18 months. The Company has initiated claims with
its insurance carriers and in October 2023, the Company received an initial, unallocated advance payment of $1,000 from its insurance
carrier. Notwithstanding the advance, there can be no assurance that the Company's insurance coverage

 will fully compensate the
Company for its losses incurred in connection with the fire and related devastation, including the costs of its structures and equipment
lost in the fire, the loss in revenue from the lack of coffee sales, or the loss of income from the licensees. The Company could experience
losses in excess of our insured limits, and further claims for certain losses could be denied or subject to deductibles or exclusions
under our insurance policies. The Company has relocated its offices to temporary office facilities located on its lands in Kaanapali and
is in the planning stages of relocating its coffee mill to its farm in Kaanapali. Additionally, the Company was able to recover its electronic
files which were stored on its servers destroyed in the fire from back up files existing at an offsite location. Recovery efforts continue.

 Provisions for impairment losses
related to long-lived assets, if any, are recognized when expected future cash flows are less than the carrying values of the assets.
If indicators of impairment are present, the Company evaluates the carrying value of the related long-lived assets in relationship to
the future undiscounted cash flows of the underlying operations or anticipated sales proceeds. The Company adjusts the net book value
of property to fair value if the sum of the expected undiscounted future cash flow or sales proceeds is less than book value. Assets held
for sale are recorded at the lower of the carrying value of the asset or fair value less costs to sell.

 The Company reviews its property
for impairment of value if events or circumstances indicate that the carrying amount of its property may not be recoverable. Such reviews
contain uncertainties due to assumptions and judgments considering certain indicators of impairment such as significant changes in asset
usage, significant deterioration in the surrounding economy or environmental problems.

 As a result of the fires, the
Company performed an impairment evaluation of its asset groups to determine if provisions for impairment losses should be recognized.
The Company concluded a provision for impairment should not be recognized for the current period. The Company will continue to monitor
and evaluate the indicators for evidence of impairment in future periods. There can be no assurance that future impairment testing will
not indicate that impairment has occurred and that a provision for impairment will be required.

 While most of the personal
property destroyed in the fire was fully depreciated the Company wrote off the net carrying value of destroyed property and
equipment totaling approximately $ 413,
which was offset against a portion of the insurance advance included in other liabilities on the Company's consolidated
financial statements at December 31, 2023.

 Other Liabilities

 Other liabilities are comprised
of estimated liabilities for losses, commitments and contingencies related to various divested assets or operations. These estimated liabilities
include the estimated effects of certain asbestos related claims, obligations related to former officers and employees such as pension,
post-retirement benefits and workmen's compensation. Management's estimates are based, as applicable, on taking into consideration claim
amounts filed by third parties, life expectancy of beneficiaries, advice of consultants, negotiations with claimants, historical settlement
experience, the number of new cases expected to be filed and the likelihood of liability in specific situations. Management periodically
reviews the adequacy of each of its loss contingency amounts and adjusts such as it determines the appropriate loss contingency amount
to reflect current information. Reference is made to Note 7, Commitments and Contingencies.

 Use of Estimates

 The preparation of
financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management
to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.

 Short-Term Investments

 It is the Company's policy
to classify all of its investments in U.S. Government obligations with original maturities greater than three months as held to maturity,
as the Company has the ability and intent to hold these investments until their maturity, and are recorded at amortized cost, which approximates
fair value.

 Income Taxes

 Income taxes are accounted
for under the asset and liability approach which requires recognition of deferred tax assets and liabilities for the differences between
the financial reporting and tax basis of assets and liabilities. A valuation allowance reduces deferred tax assets when it is more likely
than not some portion or all of the deferred tax assets will not be realized. As of December 31, 2023 and 2022, there were no uncertain
tax positions that had a material impact on the Company's consolidated financial statements.

 (2) Mortgage Note Payable

 Certain subsidiaries of Kaanapali
Land are jointly indebted to Kaanapali Land pursuant to a certain Secured Promissory Note in the principal amount of $ 70,000 dated November
14, 2002, and due September 30, 2029, as extended. Such note had an outstanding balance of principal and accrued interest as of December
31, 2023 and 2022 of approximately $ 90,555 and $ 90,203, respectively. The interest rate currently is 0.39 % per annum and compounds semi-annually.
The note, which is prepayable, is secured by substantially all of the remaining real property owned by such subsidiaries, pursuant to
a certain Mortgage, Security Agreement and Financing Statement, dated as of November 14, 2002 and placed on record in December 2002.
The note has been eliminated in the consolidated financial statements because the obligors are consolidated subsidiaries of Kaanapali
Land.

 (3) Rental Arrangements

 During 2023, 2022 and
2021, the Company leased various office spaces with average annual rental of approximately $ 26,
$ 17
and $ 19
per year, respectively. In addition,the Company is a party to certain other immaterial leasing arrangements.

 (4) Employee Benefit Plans and Investments

 Prior to June 1, 2022, the Company
participated in a defined benefit pension plan (the "Pension Plan") that covered substantially all its eligible employees.
The Pension Plan was sponsored and maintained by Kaanapali Land in conjunction with other plans providing benefits to employees of Kaanapali
Land and its affiliates.

 Pacific Trail Holdings LLC, the
manager of the Company, adopted a plan to freeze the benefit accruals under and close participation in the Pension Plan and terminate
the Pension Plan on June 1, 2022. Effective February 7, 2022, the fair value hierarchy Level 1 and Level 2 plan asset investments were
reallocated to a money market fund. Benefit accruals were frozen on March 31, 2022. The Company paid lump sum benefits totaling approximately
 $ 420 to Pension Plan participants during October 2022, thereby settling all benefit Pension Plan liabilities.

 On September 8, 2023, the
Company transferred $ 5,000
which was approximately 25 %
of the Pension Plan assets to a qualified replacement plan ("QRP"). Such assets are considered to be a fair value
hierarchy Level 1 investment, and are maintained in a suspense account within the QRP pending allocation to plan participants. The
assets will be allocated to the participants in the QRP who were participants in the terminated Pension Plan and the employees of
certain affiliates of the Company. Such allocations are planned to be allocated ratably over a period not to exceed seven years to
comply with regulatory requirements. In accordance with GAAP, the amount transferred to the QRP is reflected as retirement plan
investments on the Company's condensed consolidated balance sheet at December 31, 2023. The remaining assets of the
terminated Pension Plan of approximately $ 14,547
reverted to the Company on September 15, 2023.

 The Company was subject to a 20%
excise tax of approximately $ 2,900, which was paid in October 2023. The funds freed up cash to better prepare the Company for tightening
credit markets and are available for, among other things, working capital requirements, including future operating expenses, the Company's
obligations for engineering, planning, regulatory and development costs, drainage and utilities, and potential environmental remediation
costs on existing properties.

 FASB ASC Topic 820, Fair
Value Measurements and Disclosures, establishes a framework for measuring fair value. That framework provides a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs
(level 3 measurements). The three levels of the fair value hierarchy are described as follows:

 Level 1 -

 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

 Level 2 -

 Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in inactive markets; or other inputs that are observable for the asset or liability.

 Level 3 -

 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 The asset or liability's
fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize unobservable inputs.

 Following is a description
of the valuation methodologies used for Pension Plan assets measured at fair value.

 --

 Private Equity Investments: Valued at net asset value ("NAV") of shares/ownership units held by the Pension Plan at year-end. NAV represents the Pension Plan's interests in the net assets of these investments which consisted primarily of equity and debt securities, some of which are exchange-traded or valued using independent pricing feeds (i.e. Bloomberg or Reuters) or independent broker quotes. In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table below are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

 The following table sets
forth by level, within the fair value hierarchy, the Pension Plan's assets at fair value as of December 31, 2022:

 Level 1

 Level 2

 Level 3

 Total

 Cash and cash equivalents

 $

 19,000

 $

 $

 $

 19,000

 $

 19,000

 $

 $

 19,000

 Investments in private equity funds

 Total
 Pension Plan assets

 at
 fair value

 $

 19,200

 Changes in Level 3 Investments and Investments
Measured at Net Asset Value

 The following table
sets forth a summary of changes in fair value of the Pension Plan's assets measured at net asset value "NAV" for the
year ended December 31, 2022:

 Measured

 at NAV

 Investment

 in Private

 Equity

 Funds

 Total

 Balance, beginning of year

 $

 1,000

 $

 1,000

 Net earned interest and realized/unrealized gains (losses)

 ( 200)

 ( 200)

 Purchases, sales, issuance and settlements

 ( 600)

 ( 600)

 Balance, end of year

 $

 $

 The following tables
summarize the components of the change in pension benefit obligations, plan assets and funded status of the Pension Plan at December 31, 2022 and 2021.

 2022

 2021

 Benefit obligation at beginning of year

 $

 $

 Service cost

 Interest cost

 Actuarial gain

 ( 366)

 ( 232)

 Benefits paid

 --

 ( 13)

 Lump sum payments

 `

 ( 474)

 --

 Curtailment gain

 ( 12)

 --

 Accumulated and projected benefit obligation at end of year

 --

 Fair value of plan assets at beginning of year

 20,383

 17,924

 Actual return on plan assets

 ( 794)

 2,472

 Benefits paid

 --

 ( 13)

 Settlement

 ( 474)

 --

 Fair value of plan assets at end of year

 19,115

 20,383

 Funded status

 --

 19,946

 Unrecognized net actuarial (gain) loss

 --

 ( 3,106)

 Prepaid pension cost

 $

 --

 $

 16,840

 The components of the net
periodic pension credit for the years ended December 31, 2022 and 2021 (which are reflected as selling, general and administrative in
the consolidated statements of operations) are as follows:

 2022

 2021

 Service costs

 $

 $

 Interest cost

 Expected return on plan assets

 ( 185)

 ( 916)

 Recognized net actuarial (gain) loss

 ( 14)

 Amortization of prior service cost

 --

 --

 Curtailment gain

 ( 12)

 --

 Settlement gain

 ( 2,479)

 --

 Net periodic pension cost (credit)

 $

 ( 2,275)

 $

 ( 588)

 The principal weighted average
assumptions used to determine the net periodic pension benefit (credit) and the actuarial value of the accumulated benefit obligation
were as follows:

 2022

 2021

 As of January 1,

 Discount rate

 0.66 %

 1.95 %

 Rates of compensation increase

 3 %

 3 %

 Expected long-term rate of return on assets

 1.40 %

 6 %

 As of December 31,

 Discount rate – net periodic pension credit

 1.16 %

 1.95 %

 Discount rate – accumulated benefit obligation

 N/A

 0.66 %

 Rates of compensation increase

 N/A

 3 %

 Expected long-term rate of return on assets

 1.40 %

 6 %

 The above long-term rates
of return were selected based on historical asset returns and expectations of future returns.

 The Company amortized experience
gains and losses as well as effects of changes in actuarial assumptions and plan provisions over a period no longer than the average expected
mortality of participants in the pension plan.

 The measurement date is October
5, 2022, the date on which all Pension Plan liabilities were settled through lump sum payments.

 The Company's target asset
allocations reflect the Company's investment strategy of minimizing risk and maintaining the current balance of plan assets prior to the
termination of the Pension Plan in 2023.

 The Company maintains a nonqualified
deferred compensation arrangement (the "Rabbi Trust") which provides certain former directors of Amfac and their spouses with
pension benefits. The Rabbi Trust invests in marketable securities and cash equivalents (Level 1). The deferred compensation liability
of $ 244 and $ 329, included in Other liabilities, represented in the Rabbi Trust and assets funding such deferred compensation liability
of $ 13 and $ 8, included in Other assets, are consolidated in the Company's consolidated balance sheet as of December 31, 2023 and
2022, respectively.

 (5) Income
Taxes

 Income tax expense/(benefit)
attributable to income from continuing operations for the years ended December 31, 2023, 2022 and 2021 consist of:

 Current

 Deferred

 Total

 Year ended December 31, 2023:

 U.S. federal

 $

 --

 $

 ( 2,674)

 $

 ( 2,674)

 State

 --

 ( 669)

 ( 669)

 $

 --

 $

 ( 3,343)

 $

 ( 3,343)

 Year ended December 31, 2022:

 U.S. federal

 $

 --

 $

 $

 State

 --

 $

 --

 $

 $

 Year ended December 31, 2021:

 U.S. federal

 $

 --

 $

 $

 State

 --

 $

 --

 $

 $

 The Tax Cuts and Jobs Act
(the Act) repealed the corporate alternative minimum tax and provided that prior alternative minimum tax credits (AMT credits) would be
refundable. Any remaining AMT credits became refundable incrementally from 2018 through 2021. The Coronavirus Aid, Relief, and Economic
Security Act ("CARES") accelerated the refund schedule, enabling the Company to claim the refund in full. In February and
July 2021, the Company received $ 1,483 and $ 1,486, respectively, including interest, of the refundable tax credit from the Internal Revenue
Services ("IRS").

 The Act is a
comprehensive tax reform bill containing a number of other provisions that either currently or in the future could impact the
Company, particularly the effect of certain limitations effective for the tax year 2018 and forward (prior losses remain subject to
the prior 20 year carryover period) on the use of federal net operating loss ("NOLs") carryforwards which will
generally be limited to being used to offset 80% of future annual taxable income.

 Income
tax expense/(benefit) attributable to income from continuing operations differs from the amounts computed by applying the U.S. federal
income tax rate of 21
 percent effective for 2023, 2022 and 2021 and prior years to pretax income from operations
as a result of the following:

 2023

 2022

 2021

 Federal provision
 at 21%

 $

 $

 $

 State provision at 5 %

 Federal NOLs utilized

 ( 2,395)

 ( 495)

 --

 Federal NOLs generated

 --

 --

 --

 State NOLs utilized

 ( 950)

 ( 118)

 --

 State NOLs generated

 --

 --

 Other

 ( 93)

 Total

 $

 ( 3,343)

 $

 $

 Deferred
income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. The deferred tax effects of temporary differences at December 31,
2023, 2022 and 2021 are as follows:

 December 31,

 2023

 2022

 2021

 Deferred tax assets:

 Loss contingencies related primarily

 to losses on divestitures,
 less

 recognized insurance
 recovery

 $

 $

 2,015

 $

 2,264

 Loss carryforwards

 10,057

 13,402

 14,015

 Other, net

 Total deferred tax assets

 10,729

 15,654

 16,534

 Less – valuation allowance

 6,422

 9,766

 10,379

 Total deferred tax assets

 4,307

 5,888

 6,155

 Deferred tax liabilities:

 Property, plant and equipment, principally

 due to purchase accounting
 adjustments,

 net of impairment charges

 10,286

 10,311

 10,322

 Prepaid pension costs

 --

 4,899

 5,760

 Total deferred tax liabilities

 10,286

 15,210

 16,082

 Net deferred tax liability

 $

 5,979

 $

 9,322

 $

 9,927

 As of December 31, 2023, the
Company has a deferred tax asset related to federal NOLs of $ 7,700,
of which $ 4,063
has been subject to a valuation allowance. As of December 31, 2022, the Company has a deferred tax asset related to federal NOLs of $ 10,095,
of which $ 6,458
has been subject to a valuation allowance. The NOLs originated in 2006 through 2017 will expire over 20 years. The NOLs originated
in 2018 and later years will not expire. As of December 31, 2023, the Company has a deferred tax asset related to state NOLs of $ 2,358,
all of which has been subject to a valuation allowance. The state NOLs expire in various years through 2037.

 The statutes of limitations
with respect to the Company's taxes for 2020 and more recent years remain open to examinations by tax authorities, subject to possible
utilization of loss carryforwards from earlier years. Notwithstanding the foregoing, all NOLs generated and not yet utilized are subject
to adjustment by the IRS. The Company believes adequate provisions for income tax have been recorded for all years, although there can
be no assurance that such provisions will be adequate. To the extent that there is a shortfall, any such shortfall for which the Company
is liable, the Company's results of operations may be affected adversely and materially.

 (6) Transactions
with Affiliates

 An affiliated insurance agency,
JMB Insurance Agency, Inc., which has some degree of common ownership with the Company, earns insurance brokerage commissions in connection
with providing the placement of insurance coverage for certain of the properties and operations of the Company. The total of such commissions
for the years ended December 31, 2023, 2022 and 2021 was approximately $ 51, $ 41 and $ 49, respectively.

 The Company reimburses
affiliates of Pacific Trail Holdings, LLC, the owner of approximately 81.8% of the Company's Common Shares, for general
overhead expense and for direct expenses incurred on its behalf, including salaries and salary-related expenses incurred in
connection with the management of the Company's operations. Generally, the entity that employs the person providing the services
receives the reimbursement. Substantially all of such reimbursable amounts were incurred by JMB Realty Corporation or its
affiliates, 900FMS, LLC, 900Work, LLC, and JMB Financial Advisors, LLC, all of which have some degree of common ownership with the
Company. The total costs recorded in cost of sales and selling, general and administrative expenses in the consolidated statement of
operations for the years ended 2023, 2022 and 2021 were $ 1,158, $ 1,136
and $ 1,464,
respectively, all of which was paid as of December 31, 2023.

 The Company had derived revenue
from farming and common area maintenance services and for providing non-potable water to the Kaanapali Coffee Farms Lot Owners Association
("LOA"). The LOA is the association of the lot owners of the Kaanapali Coffee Farms. Effective July 1, 2022, the LOA
is no longer an affiliate of the Company due to relinquishment of control over the LOA. The revenues were $ 616 and $ 1,315 for the years
ended December 31, 2022 and 2021, respectively. Such revenue is recognized in the Agriculture Segment as disclosed in Note 8 Business
Segment Information. Through June 30, 2022, the revenue amounts have been eliminated in consolidated financial statements.

 (7) Commitments
and Contingencies

 Material legal proceedings
of the Company are described below. Unless otherwise noted, the parties adverse to the Company in the legal proceedings described below
have not made a claim for damages in a liquidated amount and/or the Company believes that it would be speculative to attempt to determine
the Company's exposure relative thereto, and as a consequence believes that an estimate of the range of potential loss cannot be made.

 Under an insurance settlement
the Company reached with Fireman's Fund as a result of a complaint the Company filed against Fireman's Fund in 2015, Fireman's
Fund paid $ 6,800 into an escrow during the first quarter of 2022 that was used to fund a settlement amount pursuant to a Consent Decree
(described below) which was entered into with various federal agencies. That Consent Decree, entered by United States District Court for
the District of Hawaii (the "Court"), and as more fully described below, resolved certain environmental claims against the
Company with respect to the former mixing site on Waipio Peninsula on Oahu in Hawaii (the "Mixing Site"). After the Consent
Decree was entered and finally approved by the Court in the form initially submitted by the Company and the federal government, the escrowed
funds plus interest were paid to the Environmental Protection Agency on March 3, 2022 to fund the settlement that is the subject of the
Consent Decree.

 On April 16, 2021, the U.S. Department
of Justice and the U.S. Environmental Protection Agency, on behalf of various federal agencies of the United States of America, executed
a Consent Decree with Kaanapali Land, LLC, a Delaware limited liability company (the "Company") that, if entered by the U.S.
District Court sitting in the District of Hawaii, United States of America v. Kaanapali Land, and Oahu Sugar Company, LLC Case No. 1:21-CV-00190,
resolved the U.S. federal government's current environmental claims against the Company with respect to contamination at the former
mixing site on Waipio Peninsula on Oahu in Hawaii that had been leased by Oahu Sugar Company LLC, a former subsidiary of the Company.
In return for payments by the Company totaling $ 7,500, the Consent Decree resolved liability asserted by the U.S. government against the
Company under the Comprehensive Environmental Response Compensation and Liability Act ("CERCLA") as well as under the Clean
Water Act, both for response costs (those costs expended for investigation and cleanup) and for natural resource damages. The U.S. District
Court in Hawaii entered an Order approving the Consent Decree on February 11, 2022 and payment of the settlement amount was received by
the government on March 3, 2022.

 A subsidiary of the Company, D/C
Distribution Corporation ("D/C"), filed a petition for liquidation under Chapter 7 of the Bankruptcy Code in July 2007. During
the pendency of the bankruptcy case, D/C was not under control of the Company.

 At the time of the filing of the
bankruptcy petition, Kaanapali Land, as successor by merger to other entities, and D/C had been named as defendants in personal injury
actions allegedly based on exposure to asbestos. While there were relatively few cases that name Kaanapali Land, there were a substantial
number of cases that were pending against D/C on the U.S. mainland (primarily in California). Cases against Kaanapali Land (hereafter,
"Kaanapali Land asbestos cases") were allegedly based on its prior business operations in Hawaii and cases against D/C were
allegedly based on sale of asbestos-containing products by D/C's prior distribution business operations primarily in California.
Each entity defending these cases believes that it has meritorious defenses against these actions, but can give no assurances as to the
ultimate outcome of these cases. The defense of these cases had a material adverse effect on the financial condition of D/C as it was
forced to file a voluntary petition for liquidation as discussed below. Kaanapali Land did not have liability, directly or indirectly,
for D/C's obligations in those cases. Kaanapali Land does not presently believe that the cases in which it is named will result
in any material liability to Kaanapali Land; however, there can be no assurance in that regard.

 On February 12,
2014, counsel for Fireman's Fund, the carrier that has been paying defense costs and settlements for the Kaanapali Land asbestos
cases, stated that it would no longer pay settlements or judgments in the Kaanapali Land asbestos cases due to then pending D/C and Oahu
Sugar bankruptcies. In its communications with Kaanapali Land, Fireman's fund expressed its view that the automatic stay in effect
in the D/C bankruptcy case barred Fireman's Fund from making any payments to resolve the Kaanapali Land asbestos claims because
D/C Distribution was also alleging a right to coverage under those policies for asbestos claims against it. However, in the interim, Fireman's
Fund advised that it intended to continue to pay defense costs for those cases, subject to whatever reservations of rights that might
be in effect and subject further to the policy terms. Fireman's Fund also indicated that to the extent that Kaanapali Land cooperated
with Fireman's Fund in addressing settlement of the Kaanapali Land asbestos cases through coordination with its adjusters, it was
Fireman's Fund's intention to reimburse any such payments by Kaanapali Land, subject, among other things, to the terms of
any lift-stay order, the limits and other terms and conditions of the policies, and prior approval of the settlements. Kaanapali Land
and Fireman's Fund entered into a settlement agreement on or about November 24, 2021 whereby Fireman's Fund paid $ 2,441
for certain listed Kaanapali Land asbestos cases upon a Final Order of the D/C bankruptcy court lifting the automatic stay to allow the
payments. The D/C court issued the lift-stay order on March 1, 2022. On April 12, 2022, the Company received $ 2,441 as reimbursement
for the various settlements Kaanapali made that were subject to the lift-stay order as of March 1, 2022. The $2,441 was included as a
reduction of Selling, general and administrative expenses on the Company's consolidated statement of operations for the year ended
December 31, 2022.

 Because D/C was substantially
without assets and was unable to obtain additional sources of capital to satisfy its liabilities, D/C filed with the United States Bankruptcy
Court, Northern District of Illinois, its voluntary petition for liquidation under Chapter 7 of Title 11, United States Bankruptcy Code
during July 2007, Case No. 07-12776. Such filing was not expected to have a material adverse effect on the Company as D/C was substantially
without assets at the time of the filing.

 Kaanapali Land filed claims in
the D/C bankruptcy that aggregated approximately $ 26,800, relating to both secured and unsecured intercompany debts owed by D/C to Kaanapali
Land. In addition, a personal injury law firm based in San Francisco that represents clients with asbestos-related claims filed proofs
of claim on behalf of approximately two thousand claimants. On January 21, 2020, certain asbestos claimants filed a Stay Relief Motion
in the Bankruptcy Court for the Northern District of Illinois, Eastern Division, Case No. 07-12776 ("motion to lift stay")
in connection with the D/C proceeding. The motion sought the entry of an order, among other things, modifying the automatic stay in the
D/C bankruptcy to permit those claimants to prosecute various lawsuits in state courts against D/C and to recover on any judgment or settlement
solely from any available insurance coverage. Various oppositions to the motion to lift stay were filed, and the matter was heard and
taken under advisement in April 2020. On July 21, 2020, the bankruptcy court issued an order granting the motion to lift stay to permit
the movants to pursue their claims and to recover any judgment or settlement from and to the extent of any available insurance coverage
of D/C only.

 Certain asbestos-related proofs
claims in the bankruptcy case have been withdrawn in connection with closing. A court hearing was held on March 29, 2023 in which the
court awarded the trustee's compensation and expenses and therefore D/C no longer has any assets. On June 6, 2023, the bankruptcy
trustee filed a final account and application to close the D/C bankruptcy and on June 14, 2023, the D/C bankruptcy court closed the case
and the trustee was discharged. Due to the closing of the case, the Company derecognized a related contingent liability. The derecognition
of the contingent liability is included as a reduction of Selling, general and administrative expenses and resulted in a credit in expenses
on the Company's consolidated statement of operations for the year ended December 31, 2023. However, personal injury claimants have
asserted, and may in the future assert, asbestos-related claims against D/C.

 The Company has received
notice from Hawaii's Department of Land and Natural Resources ("DLNR") that DLNR on a periodic basis would inspect all
significant dams and reservoirs in Hawaii, including those maintained by the Company on Maui in connection with its agricultural operations.
A series of such inspections have taken place over the period from 2006 through the most recent inspections that occurred in April 2022.
To date, the DLNR cited certain deficiencies concerning two of the Company's reservoirs relating to dam and reservoir safety standards
established by the State of Hawaii. These deficiencies include, among other things, vegetative overgrowth, erosion of slopes, uncertainty
of inflow control, spillway capacity, and freeboard, and uncertainty of structural stability under certain loading and seismic conditions.
The Company has taken certain corrective actions, including lowering the reservoir operating level; as well as updating important plans
to address emergency events and basic operations and maintenance. In 2018, the Company contracted with an engineering firm to develop
plans to address certain DLNR cited deficiencies on one of the Company's reservoirs. Remediation plans for addressing all deficiencies
have been submitted to DLNR. In 2012, the State of Hawaii issued new Hawaii Administrative Rules for Dams and Reservoirs which require
dam owners to obtain from DLNR Certificates of Impoundment ("permits") to operate and maintain dams or reservoirs. Obtaining
such permits requires owners to completely resolve all cited deficiencies. Therefore, the process may involve further analysis of dam
and reservoir safety requirements, which will involve continuing engagement with specialized engineering consultants, and ultimately could
result in significant and costly improvements which may be material to the Company.

 The DLNR categorizes the
reservoirs as "high hazard" under State of Hawaii Administrative Rules and State Statutes concerning dam and reservoir safety.
This classification, which bears upon government oversight and reporting requirements, may increase the cost of managing and maintaining
these reservoirs in a material manner. The Company does not believe that this classification is warranted for either of these reservoirs
and has initiated a dialogue with DLNR in that regard. In April 2008, the Company received further correspondence from DLNR that included
the assessment by their consultants of the potential losses that result from the failure of these reservoirs. In April 2009, the Company
filed a written response to DLNR to correct certain factual errors in its report and to request further analysis on whether such "high
hazard" classifications are warranted. It is unlikely that the "high hazard" designation will be changed.

 Other than as described above,
the Company is not involved in any material pending legal proceedings, other than ordinary routine litigation incidental to its business.
The Company and/or certain of its affiliates have been named as defendants in several pending lawsuits. While it is impossible to predict
the outcome of such routine litigation that is now pending (or threatened) and for which the potential liability is not covered by insurance,
the Company is of the opinion that the ultimate liability from any of this litigation will not materially adversely affect the Company's
consolidated results of operations or its financial condition.

 The Company often seeks insurance
recoveries under its policies for costs incurred or expected to be incurred for losses or claims under which the policies might apply.
During third quarter 2023, the Company received $ 538 in insurance proceeds related to an insured event that occurred during the 2022 crop
year. This amount has been reflected in crop insurance proceeds in the Company's consolidated financial statements. Additionally,
as a result of the Lahaina wildfire, the Company received an intial, unallocated advance payment of $ 1,000 from its insurance carrier.
Reference is made to Note 1, Property, for further discussion regarding the Lahaina wildfire.

 Kaanapali Land Management
Corp. ("KLMC") is a party to an agreement with the State of Hawaii for the development of the Lahaina Bypass Highway.
Approximately 2.4 miles of this two lane state highway have been completed. Construction to extend the southern terminus
was completed mid-2018. The northern portion of the Bypass Highway, which extends to KLMC's lands, is in the early stage of
planning. Under certain circumstances, which have not yet occurred, KLMC remains committed for approximately $ 1,100
of various future costs relating to the planning and design of the uncompleted portion of the Bypass Highway. Under certain
conditions, which have not yet been met, KLMC has agreed to contribute an amount not exceeding $ 6,700
toward construction costs. Any such amount contributed would be reduced by the value of KLMC's land actually contributed to
the State for the Bypass Highway.

 These potential commitments have
not been reflected in the consolidated financial statements. While the completion of the Bypass Highway would add
value to KLMC's lands north of the town of Lahaina, there can be no assurance that it will be completed or when any future phases
will be undertaken.

 (8) Business
Segment Information

 As described in Note 1, the
Company operates in two business segments. Total revenues, operating profit, identifiable assets, capital expenditures, and depreciation
and amortization by business segment are presented in the tables below.

 Total revenues by business
segment include primarily (i) sales, all of which are to unaffiliated customers and (ii) interest income that is earned from outside sources
on assets which are included in the individual industry segment's identifiable assets.

 Operating income (loss) is
comprised of total revenue less cost of sales and operating expenses. In computing operating income (loss), none of the following items
have been added or deducted: general corporate revenues and expenses, interest expense and income taxes.

 Identifiable assets by business
segment are those assets that are used in the Company's operations in each industry. Corporate assets consist principally of cash and
cash equivalents and receivables related to previously divested businesses.

 2023

 2022

 2021

 Revenues:

 $

 $

 5,061

 $

 1,304

 3,178

 4,093

 3,340

 Corporate

 1,618

 $

 5,254

 $

 9,224

 $

 4,753

 Operating income (loss):

 $

 ( 1,625)

 $

 ( 259)

 $

 ( 1,357)

 ( 55)

 ( 24)

 ( 1,680)

 ( 1,381)

 Corporate

 1,730

 1,425

 Operating income (loss) before other income

 and income taxes

 $

 $

 $

 Identifiable Assets:

 $

 10,468

 $

 13,633

 $

 14,923

 53,298

 57,488

 58,207

 63,766

 71,121

 73,130

 Corporate

 29,253

 27,393

 34,066

 $

 93,019

 $

 98,514

 $

 107,196

 The Company's Property
segment consists primarily of revenue received from land sales and lease and licensing agreements.

 The Company's Agricultural
segment currently consists primarily of coffee operations and licensing agreements.

 The Company's Corporate
segment consists primarily of interest earned on investments.

 The Company is exploring
alternative agricultural operations, but there can be no assurance that replacement operations at any level will result.

 Agricultural identified assets
include land classified as agricultural or conservation for State and County purposes.

 2023

 2022

 2021

 Capital Expenditures:

 $

 1,619

 $

 $

 $

 1,823

 $

 $

 Depreciation and Amortization:

 $

 $

 $

 $

 $

 $

 (9) Calculation
of Net Income Per Share

 The
following tables set forth the computation of net income (loss) per share - basic and diluted:

 Year Ended

 December 31,

 2023

 Year Ended

 December 31,

 2022

 Year Ended

 December 31,

 2021

 (Amounts in thousands except per share amounts)

 Numerator:

 $

 3,707

 $

 2,792

 $

 Less: Net loss attributable to non-controlling

 interests

 --

 ( 58)

 ( 551)

 Net income attributable to stockholders

 $

 3,707

 $

 2,850

 $

 Denominator:

 Number of weighted average shares –

 basic and diluted

 1,845

 1,845

 1,845

 Net income per share, attributable to

 Kaanapali Land – basic and
 diluted

 $

 2.01

 $

 1.55

 $

 0.13

 As of December 31, 2023,
the Company had issued and outstanding 1,792,613 Common Shares and 52,000 Class C Shares. The Class C Shares have the same rights
as the Common Shares except that the Class C Shares will not participate in any distributions until the holders of the Common Shares
have received aggregate distributions equal to $19 per share, subject to customary antidilution adjustments. Net income per share data
is based on the aggregate 1,844,613 outstanding shares.

 (10) Subsequent Events

 In February 2024, approximately
 $ 1,019 was allocated to the participants in the qualified replacement plan.

 Item 9. Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure

 None.

 Item 9A. Controls and Procedures

 Disclosure Controls and Procedures

 The principal executive officer
and the principal financial officer of the Company have evaluated the effectiveness of the Company's disclosure controls and procedures
as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") as of the end of
the period covered by this report. Based on such evaluation, the principal executive officer and the principal financial officer have
concluded that the Company's disclosure controls and procedures were effective to ensure that information required to be disclosed
was recorded, processed, summarized and reported within the time periods specified in the applicable rules and form of the Security and
Exchange Commission ("SEC").

 Management's Report on Internal Control
Over Financial Reporting

 The Company's management
is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rule 13a-15(f)
under the Exchange Act. Under the supervision and with the participation of management including the principal executive officer and the
principal financial officer management conducted an evaluation of the effectiveness of internal control over financial reporting based
on the framework in Internal Control - Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations of the
Treadway Commission.

 Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective
can only provide reasonable assurances with respect to financial statement preparation and presentation.

 Based on the Company's
evaluation under the framework in Internal Control – Integrated Framework (2013 Framework), management concluded that its internal
control over financial reporting was effective as of December 31, 2023.

 Internal Control Over Financial Reporting

 There have not been any changes
in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) that occurred during the fourth quarter of 2023 that have materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

 Item 9B. Other Information

 Not applicable.

 Item 9C. Disclosure Regarding Foreign Jurisdictions
that Prevent Inspections

 None

 Item 10. Directors, Executive Officers and
Corporate Governance

 The sole managing
member of Kaanapali Land, LLC is Pacific Trail, which is also Kaanapali Land's largest shareholder. Pacific Trail manages the
business of Kaanapali Land pursuant to the terms of the Company's Amended and Restated Limited Liability Agreement ("LLC
Agreement"). Although the executive officers of Kaanapali Land are empowered to manage its day-to-day business
affairs, under the Company's LLC Agreement, most significant actions of Kaanapali Land outside the ordinary course of business
must first be authorized by Pacific Trail, which is responsible and has full power and authority to do all things deemed necessary
and desirable by it to conduct the business of Kaanapali Land. Pacific Trail may be removed as manager in certain specified
circumstances. As of December 31, 2023, the executive officers and certain other officers of the Company were as follows:

 Name

 Position Held with the Company

 Stephen A. Lovelette

 President, Chief Executive Officer and Chief Financial Officer

 Richard Helland

 Vice President and Principal Accounting Officer

 Certain of these officers
are also officers and/or directors of JMB Realty Corporation ("JMB") and numerous affiliated companies of JMB (hereinafter collectively
referred to as "JMB affiliates"). JMB affiliates outside of the Company have not materially engaged in the agriculture business
and have primarily purchased, or made mortgage loans securing, existing commercial, retail, office, industrial and multi-family residential
rental buildings or have owned or operated hotels on various other hospitality businesses. However, certain partnerships sponsored by
JMB and other affiliates of JMB were previously engaged in land development activities including planned communities, none of which are
in Hawaii.

 The following sets forth
certain business experience during the past five years of such officers of the Company.

 Stephen Lovelette (age 67)
has been the President of KLC Land and Kaanapali Land since March 2019. Since March 2019, Mr. Lovelette has been Chief Executive Officer
of Kaanapali Land and since June 2018, Mr. Lovelette has been Chief Financial Officer of Kaanapali Land. Mr. Lovelette is in charge of
implementing the Kaanapali 2020 Development Plan. Mr. Lovelette has been associated with JMB and its affiliates for over 30 years. Mr.
Lovelette holds a bachelor's degree from The College of the Holy Cross and an MBA from Seton Hall University. In addition, Mr. Lovelette
has extensive experience in corporate finance and has been responsible for obtaining substantial financial commitments from institutional
lenders relating to the assets of JMB and its affiliates. During the past five years, Mr. Lovelette has also been a Managing Director
of JMB.

 It is currently anticipated
that Stephen Lovelette will devote approximately 25 to 50 percent of his time to the operations of the Company. The percentage is largely
dependent upon potential land sale transactions, the entitlement processes relating to various land parcels and other matters (including
attention devoted to litigation, overhead, staffing and operations).

 Richard Helland (age 67)
has been a Vice President of the Company since July 2004. Mr. Helland has been Principal Accounting Officer since June 2018. He holds
a bachelor's degree from Illinois State University and is a Certified Public Accountant. Mr. Helland has substantial experience
in the management and reporting functions of both public and private entities.

 In light of the fact that
the Company's shares are not publicly traded, the Company is a limited liability company and the rights of members are governed by the
Company's LLC Agreement, the Company has determined that it is not necessary to have a separately designated audit committee, compensation
committee, an audit committee financial expert or a code of ethics that applies to its principal executive, financial or accounting officers
as those terms are defined in the rules and regulations of the SEC.

 Item 11. Executive Compensation

 Certain officers of the Company
listed in Item 10 above are officers of JMB and are compensated by JMB or an affiliate thereof (other than the Company and its
subsidiaries). The Company will reimburse JMB, Pacific Trail and their affiliates for any expenses incurred while providing services to
the Company.

 Summary Compensation Table

 Name (1)

 Principal Position

 Year

 Salary

 ($) (2)

 All Other

 Compensation

 ($)

 Total

 ($)

 Stephen A. Lovelette

 President, Chief Executive

 Officer and Chief Financial

 Officer

 2023

 337,778

 337,778

 2022

 334,444

 --

 334,444

 (1) Mr.
Lovelette is the Company's only executive officer.

 (2) Salary
amounts for Mr. Lovelette represents the portion of total compensation allocated and charged to the Company. The Company does not have
a compensation committee as compensation is determined by the Company's manager. Executive officer compensation was determined through
deliberations with Pacific Trail representatives.

 Item 12. Security Ownership of
Certain Beneficial Owners and Management and

 Related
Stockholder Matters

 Title of Class

 Name and Address

 of Beneficial Owner

 Amount and Nature

 of Beneficial Ownership

 Percent

 of Class

 Common Shares

 Pacific Trail Holdings, LLC

 900 North Michigan Avenue

 Chicago, IL 60611

 1,466,573 Common Shares

 owned directly (1) (2)

 81.8%

 Class C Shares

 Stephen A. Lovelette

 900 North Michigan Avenue

 Chicago, IL 60611

 52,000 Class C Shares

 owned directly (2)

 100.0%

 (1)

 The sole managing member of Pacific Trail, Pacific Trail Holdings, Inc. ("PTHI"), may be deemed to beneficially own the Common Shares owned by Pacific Trail. PTHI disclaims beneficial ownership with respect to any of the shares owned by Pacific Trail. Each of the shareholders of PTHI may be deemed to own the Common Shares owned by Pacific Trail. Each of such shareholders, being Gary Nickele, Gailen J. Hull and Stephen A. Lovelette, disclaims beneficial ownership with respect to any of the shares owned by Pacific Trail. The addresses of PTHI and Messrs. Nickele, Hull and Lovelette are the same as for Pacific Trail.

 (2)

 As of December 31, 2023, there were approximately 1,792,613 Common Shares and 52,000 Class C Shares issued and outstanding.

 No other person including any officer of the
Company is known by the Company to beneficially own in excess of 5% of the Common Shares issued, outstanding and distributed.

 Item 13. Certain Relationships and Related
Transactions, and Director Independence

 An affiliated insurance agency,
JMB Insurance Agency, Inc., which has some degree of common ownership with the Company, earns insurance brokerage commissions in connection
with providing the placement of insurance coverage for certain of the properties and operations of the Company. The total of such commissions
for the year ended December 31, 2023 was approximately $51 thousand, all of which was paid as of December 31, 2023.

 The Company reimburses Pacific
Trail and its affiliates for general overhead expense and for direct expenses incurred on its behalf, including salaries and salary-related
expenses incurred in connection with the management of the Company's operations. Generally, the entity that employs the person providing
the services receives the reimbursement. Substantially all of such reimbursable amounts were incurred by JMB Realty Corporation or its
affiliates, 900FMS, LLC, 900Work, LLC, and JMB Financial Advisors, LLC, all of which have some degree of common ownership with the Company.
The total costs for the year ended December 31, 2023 was approximately $1.2 million, all of which was paid as of December 31, 2023.

 In light of the fact that
the Company's shares are not publicly traded, is a limited liability company, and has no independent outside directors or managers, it
has no formal policy or procedure for the review, approval or ratification of related party transactions that are required to be disclosed
pursuant to Item 404 of Regulation S-K.

 Item 14. Principal Accountant Fees and Services

 In March 2015, the Company
approved the engagement of Grant Thornton, LLP ("Grant Thornton") as its independent registered public accounting firm. The
fees billed by Grant Thornton for the years ended December 31, 2023 and 2022 are as follows:

 (1) Audit
Fees

 The fees incurred for
the years ended December 31, 2023 and 2022 professional services for the audit of the Company's consolidated financial statements
were approximately $258 thousand and $231 thousand, respectively.

 The fees incurred
for the year ended December 31, 2023 for professional services for the audit of the Pension Plan's financial statements
are still in discussion. The fees incurred for the year ended December 31, 2022 for professional services for the audit of
the Pension Plan's financial statements was approximately $42 thousand.

 (2) Audit
Related Fees

 None

 (3) Tax
Fees

 The fees incurred for
the years ended December 31, 2023 and 2022 for professional tax compliance services related to the Pension Plan's IRS Form 5500
Annual Report was approximately $3 thousand and $6 thousand, respectively.

 (4) All
Other Fees

 None.

 All audit and permitted non-audit
services proposed to be performed by the Company's independent registered public accounting firm are approved by the managing member
of the Company before the service is undertaken.

 Item 15. Exhibits, Financial Statement Schedules

 (a)

 Exhibits.

 2.1

 Order
 Confirming Second Amendment Joint Plan of Reorganization Dated June 1, 2002, including as an exhibit thereto, the Second Amended
 Joint Plan of Reorganization of Amfac Hawaii, LLC, Certain of its Subsidiaries and FHT Corporation Under Chapter 11 of the Bankruptcy
 Code incorporated herein by reference the Amfac Hawaii, LLC Current Report on Form 8-K for July 29, 2002 dated August 13, 2002 (File
 No. 33-24180).

 2.2

 Second
 Amended Disclosure Statement with Respect to Joint Plan of Reorganization of Amfac Hawaii, LLC, Certain of its Subsidiaries and FHT
 Corporation Under Chapter 11 of the Bankruptcy Code, incorporated herein by reference from the Amfac Hawaii, LLC Current Report
 on Form 8-K for July 29, 2002 dated August 13, 2002 (File No. 33-24180).

 3.1

 Amended
 and Restated Limited Liability Company Agreement of Kaanapali Land, LLC dated November 14, 2002 filed as an exhibit to the Company's
 Form 10 filed May 1, 2003 and hereby incorporated by reference.

 3.2

 Consent
 Decree entered into as of April 16, 2021, for the United States of America by U.S. Department of Justice and U.S. Environmental
 Protection Agency and by Kaanapali Land, LLC and Oahu Sugar Company, LLC filed as an exhibit to the Company's report on Form 8-K
 filed April 22, 2021, and hereby incorporated by reference.

 4.1

 Description
 of the Registrant's Common Shares is filed herewith.

 10.1

 Service
 Agreement, dated November 18, 1988, between Amfac/JMB Hawaii, Inc., and Amfac Property Development Corp.; Amfac Property Investment
 Corp.; Amfac Sugar and Agribusiness, Inc.; Kaanapali Water Corporation; Amfac Agribusiness, Inc.; Kekaha Sugar Company, Limited;
 The Lihue Plantation Company; Oahu Sugar Company, Limited; Pioneer Mill Company, Limited; Puna Sugar Company, Limited; H. Hackfeld
 & Co., Ltd.; and Waiahole Irrigation Company, Limited and JMB Realty Corporation, incorporated herein by reference to the Amfac
 Hawaii, LLC Annual Report on Form 10-K filed on March 22, 1989 (File No. 33-24180) for the year ended December 31, 1988.

 List
 of Subsidiaries is filed herewith.

 Certification
 of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) is filed herewith.

 Certifications
 pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.

 101.SCH

 101.CAL

 101.LAB

 101.DEF

 101.PRE

 Cover

 (1)

 Previously
 filed as exhibits to Amfac Hawaii, LLC's Registration Statement on Form S-1 (as amended) under the Securities Act of 1933 (File No.
 33-24180) and hereby incorporated by reference.

 Item 16. Form 10-K Summary

 None.

 Signatures

 Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

 By:

 Pacific Trail Holdings, LLC

 (Sole Managing Member)

 /s/ Richard Helland

 By:

 Richard Helland

 Vice President

 Date:

 March 27, 2024

 Pursuant to the requirements
of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.

 /s/ Richard Helland

 By:

 Richard Helland

 Vice President and Principal Accounting Officer

 Date:

 March 27, 2024

 /s/ Stephen A. Lovelette

 By:

 Stephen A. Lovelette

 President, Chief Executive Officer and

 Chief Financial Officer

 Date:

 March 27, 2024