##### Table of Contents





FORM 10-Q





U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549







|x | Quarterly report pursuant to section 13 or 15(d) of the Securities Act of 1934.
|- | -------------------------------------------------------------------------------

For the quarterly period ended June 30, 2010

or



| ̈ | Transition report pursuant to section 13 or 15(d) of the Securities Act of 1934.
|- | --------------------------------------------------------------------------------

Commission File No. 0-3026





PARADISE,
INC.





INCORPORATED IN FLORIDA

I.R.S. EMPLOYER IDENTIFICATION NO. 59-1007583

1200 DR. MARTIN LUTHER KING, JR. BLVD.,

PLANT CITY, FLORIDA 33566

(813) 752-1155





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 and 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 is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company.



|                        |  |   |  |                           |  |  
|----------------------- |  | - |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈ |  | Accelerated filer         |  |  ̈
|                        |  |   | 
|Non-accelerated filer   |  |  ̈ |  | Smaller reporting company |  | x

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

The number of shares outstanding of each of the issuers classes of common stock:



|                |  |                            |  |               
|--------------- |  | -------------------------- |  | --------------
|                |  | Outstanding as of June 30,
|Class           |  | 2010                       |  | 2009          
|Common Stock    |  |                            |  |               
|$0.30 Par Value |  | 519,350 Shares             |  | 519,350 Shares









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PARADISE, INC.

FORM 10-Q

FOR
THE QUARTERLY PERIOD ENDED JUNE 30, 2010

INDEX



|           |  |                                                                                       |  |      
|---------- |  | ------------------------------------------------------------------------------------- |  | -----
|           |  |                                                                                       |  | PAGE 
|           |  |                                                                                      
|PART I.    |  | FINANCIAL INFORMATION                                                                 |  |      
|           |  |                                                                                      
|           |  | ITEM 1.                                                                               |  |      
|           |  |                                                                                      
|           |  | CONSOLIDATED BALANCE SHEETS                                                           |  |      
|           |  |                                                                                      
|           |  | As of June 30, 2010 (Unaudited), December 31, 2009 and June 30, 2009 (Unaudited)      |  | 2    
|           |  |                                                                                      
|           |  | LIABILITIES AND STOCKHOLDERS EQUITY                                                  |  |      
|           |  |                                                                                      
|           |  | As of June 30, 2010 (Unaudited), December 31, 2009 and June 30, 2009 (Unaudited)      |  | 3    
|           |  |                                                                                      
|           |  | CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                                         |  |      
|           |  |                                                                                      
|           |  | For the three-month periods ended June 30, 2010 and 2009                              |  | 4    
|           |  |                                                                                      
|           |  | For the six-month periods ended June 30, 2010 and 2009                                |  | 5    
|           |  |                                                                                      
|           |  | CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                                     |  |      
|           |  |                                                                                      
|           |  | For the six-month periods ended June 30, 2010 and 2009                                |  | 6    
|           |  |                                                                                      
|           |  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                                |  | 7-9  
|           |  |                                                                                      
|           |  | ITEM 2.                                                                               |  |      
|           |  |                                                                                      
|           |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |  | 9-11 
|           |  |                                                                                      
|           |  | ITEM 3.                                                                               |  |      
|           |  |                                                                                      
|           |  | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK  N/A                       |  | 12   
|           |  |                                                                                      
|           |  | ITEM 4.                                                                               |  |      
|           |  |                                                                                      
|           |  | CONTROLS AND PROCEDURES                                                               |  | 12   
|           |  |                                                                                      
|PART II.   |  | OTHER INFORMATION                                                                     |  |      
|           |  |                                                                                      
|           |  | ITEMS 1  6.                                                                          |  | 13-14
|           |  |                                                                                      
|SIGNATURES |  |                                                                                       |  | 14   



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##### Table of Contents

|               |  |                           
|-------------- |  | --------------------------
|PARADISE, INC. |  | COMMISSION FILE NO. 0-3026

PART I.
FINANCIAL INFORMATION

Item 1. Financial Statements

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



|                                                                                                                                        |  |                              |            |                       |   |                              |  |   |           
|--------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | ---------- | --------------------- | - | ---------------------------- |  | - | ----------
|                                                                                                                                        |  | AS OFJUNE
30,2010(UNAUDITED) |            | AS
OFDECEMBER 31,2009 |   | AS OFJUNE
30,2009(UNAUDITED)
|ASSETS                                                                                                                                  |  |                              |            |                       |   |                              |  |   |           
|                                                                                                                                        |  |                              |           
|CURRENT ASSETS:                                                                                                                         |  |                              |            |                       |   |                              |  |   |           
|Cash and Unrestricted Demand Deposits                                                                                                   |  | $                            | 1,760      |                       | $ | 3,015,063                    |  | $ | 4,737     
|Accounts and Notes Receivable, Less Allowances of $0 (6/30/10), $1,284,611 (12/31/09) and $0 (6/30/09)                                  |  |                              | 1,391,412  |                       |   | 1,789,906                    |  |   | 1,332,713 
|Inventories:                                                                                                                            |  |                              |            |                       |   |                              |  |   |           
|Raw Materials                                                                                                                           |  |                              | 3,896,853  |                       |   | 1,928,596                    |  |   | 4,424,101 
|Work in Process                                                                                                                         |  |                              | 451,515    |                       |   | 1,255,909                    |  |   | 400,659   
|Finished Goods                                                                                                                          |  |                              | 8,437,375  |                       |   | 5,021,739                    |  |   | 10,224,305
|Deferred Income Tax                                                                                                                     |  |                              | 530,677    |                       |   | 279,545                      |  |   | 588,112   
|Income Tax Refund Receivable                                                                                                            |  |                              | 52,867     |                       |   |                              |  |   | 274,968   
|Prepaid Expenses and Other Current Assets                                                                                               |  |                              | 664,656    |                       |   | 363,194                      |  |   | 687,611   
|                                                                                                                                        |  |                              |            |                       |   |                              |  |   |           
|                                                                                                                                        |  |                              |           
|TOTAL CURRENT ASSETS                                                                                                                    |  |                              | 15,427,115 |                       |   | 13,653,952                   |  |   | 17,937,206
|                                                                                                                                        |  |                              |           
|Property, Plant and Equipment, Less Accumulated Depreciation of $17,723,169 (6/30/10), $17,433,040 (12/31/09) and
$17,131,413 (6/30/09) |  |                              | 4,517,231  |                       |   | 4,749,033                    |  |   | 4,967,181 
|Other Assets                                                                                                                            |  |                              | 194,670    |                       |   | 312,378                      |  |   | 239,073   
|Goodwill                                                                                                                                |  |                              | 413,280    |                       |   | 413,280                      |  |   | 413,280   
|Customer Base and Non-Compete Agreement                                                                                                 |  |                              | 754,460    |                       |   | 817,402                      |  |   | 880,345   
|                                                                                                                                        |  |                              |            |                       |   |                              |  |   |           
|                                                                                                                                        |  |                              |           
|TOTAL ASSETS                                                                                                                            |  | $                            | 21,306,756 |                       | $ | 19,946,045                   |  | $ | 24,437,085
|                                                                                                                                        |  |                              |            |                       |   |                              |  |   |           

See Accompanying Notes to these Consolidated Financial Statements
(Unaudited)



2



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##### Table of Contents

LIABILITIES AND STOCKHOLDERS EQUITY



|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|------------------------------------------------------------------------------------------------------------ |  | ---------------------------- | ---------- | - | --------------------- | - | ---------- | ---------------------------- |  | - | ---------- | -
|                                                                                                             |  | AS OFJUNE
30,2010(UNAUDITED) |            |   | AS
OFDECEMBER 31,2009 |   |            | AS OFJUNE
30,2009(UNAUDITED) | 
|                                                                                                             |  |                              |           
|CURRENT LIABILITIES:                                                                                         |  |                              |            |   |                       |   |            |                              |  |   |            |  
|Notes and Trade Acceptances Payable                                                                          |  | $                            | 2,098,456  |   |                       | $ | 186,919    |                              |  | $ | 4,897,180  |  
|Current Portion of Long-Term Debt                                                                            |  |                              | 6,033      |   |                       |   | 8,831      |                              |  |   | 448,084    |  
|Accounts Payable                                                                                             |  |                              | 1,063,569  |   |                       |   | 786,253    |                              |  |   | 1,529,168  |  
|Accrued Liabilities                                                                                          |  |                              | 488,326    |   |                       |   | 872,272    |                              |  |   | 486,031    |  
|Income Taxes Payable                                                                                         |  |                              |            |   |                       |   | 37,030     |                              |  |   |            |  
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|                                                                                                             |  |                              |           
|TOTAL CURRENT LIABILITIES                                                                                    |  |                              | 3,656,384  |   |                       |   | 1,891,305  |                              |  |   | 7,360,463  |  
|                                                                                                             |  |                              |           
|LONG-TERM DEBT, NET OF CURRENT PORTION                                                                       |  |                              | 0          |   |                       |   | 2,885      |                              |  |   | 6,036      |  
|                                                                                                             |  |                              |           
|DEFERRED INCOME TAX LIABILITY                                                                                |  |                              | 209,478    |   |                       |   | 209,478    |                              |  |   | 223,891    |  
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|                                                                                                             |  |                              |           
|TOTAL LIABILITIES                                                                                            |  |                              | 3,865,862  |   |                       |   | 2,103,668  |                              |  |   | 7,590,390  |  
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|                                                                                                             |  |                              |           
|STOCKHOLDERS EQUITY:                                                                                        |  |                              |            |   |                       |   |            |                              |  |   |            |  
|Common Stock: $.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,350 Shares Outstanding |  |                              | 174,928    |   |                       |   | 174,928    |                              |  |   | 174,928    |  
|Capital in Excess of Par Value                                                                               |  |                              | 1,288,793  |   |                       |   | 1,288,793  |                              |  |   | 1,288,793  |  
|Retained Earnings                                                                                            |  |                              | 16,535,337 |   |                       |   | 16,971,041 |                              |  |   | 16,034,417 |  
|Accumulated Other Comprehensive Loss                                                                         |  |                              | (281,245   | ) |                       |   | (315,466   | )                            |  |   | (374,524   | )
|Treasury Stock, at Cost, 63,744 Shares                                                                       |  |                              | (276,919   | ) |                       |   | (276,919   | )                            |  |   | (276,919   | )
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|                                                                                                             |  |                              |           
|Total Stockholders Equity                                                                                   |  |                              | 17,440,894 |   |                       |   | 17,842,377 |                              |  |   | 16,846,695 |  
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  
|                                                                                                             |  |                              |           
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                   |  | $                            | 21,306,756 |   |                       | $ | 19,946,045 |                              |  | $ | 24,437,085 |  
|                                                                                                             |  |                              |            |   |                       |   |            |                              |  |   |            |  

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)



3



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PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



|                                                       |  |                                    |           |   |      |   |           |  
|------------------------------------------------------ |  | ---------------------------------- | --------- | - | ---- | - | --------- | -
|                                                       |  | FOR THE THREE MONTHS 
ENDEDJUNE 30 |          
|                                                       |  | 2010                               |           |   | 2009 |  
|                                                       |  |                                   
|Net Sales                                              |  | $                                  | 2,225,687 |   |      | $ | 2,156,110 |  
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Costs and Expenses:                                    |  |                                    |           |   |      |   |           |  
|Cost of Goods Sold (excluding Depreciation)            |  |                                    | 1,639,424 |   |      |   | 1,610,436 |  
|Selling, General and Administrative Expense            |  |                                    | 746,761   |   |      |   | 792,175   |  
|Depreciation and Amortization                          |  |                                    | 177,096   |   |      |   | 196,964   |  
|Interest Expense                                       |  |                                    | 2,927     |   |      |   | 35,304    |  
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Total Costs and Expenses                               |  |                                    | 2,566,208 |   |      |   | 2,634,879 |  
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Loss from Operations                                   |  |                                    | (340,521  | ) |      |   | (478,769  | )
|                                                       |  |                                   
|Other Income                                           |  |                                    | 9,845     |   |      |   | 169       |  
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Loss from Operations Before Provision for Income Taxes |  |                                    | (330,676  | ) |      |   | (478,600  | )
|                                                       |  |                                   
|Provision for Income Taxes                             |  |                                    | 125,657   |   |      |   | 181,868   |  
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Net Loss                                               |  | $                                  | (205,019  | ) |      | $ | (296,732  | )
|                                                       |  |                                    |           |   |      |   |           |  
|                                                       |  |                                   
|Loss per Common Share                                  |  | $                                  | (0.39     | ) |      | $ | (0.57     | )
|                                                       |  |                                    |           |   |      |   |           |  
|Dividends declared per Common Share                    |  | $                                  | 0.05      |   |      | $ | 0.05      |  
|                                                       |  |                                    |           |   |      |   |           |  

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)



4



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PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



|                                                       |  |                                  |           |   |      |   |           |  
|------------------------------------------------------ |  | -------------------------------- | --------- | - | ---- | - | --------- | -
|                                                       |  | FOR THE SIX MONTHS 
ENDEDJUNE 30 |          
|                                                       |  | 2010                             |           |   | 2009 |  
|                                                       |  |                                 
|Net Sales                                              |  | $                                | 4,726,478 |   |      | $ | 4,286,599 |  
|                                                       |  |                                  |           |   |      |   |           |  
|Costs and Expenses:                                    |  |                                  |           |   |      |   |           |  
|Cost of Goods Sold (excluding Depreciation)            |  |                                  | 3,492,782 |   |      |   | 3,037,975 |  
|Selling, General and Administrative Expense            |  |                                  | 1,560,345 |   |      |   | 1,665,770 |  
|Depreciation and Amortization                          |  |                                  | 361,810   |   |      |   | 392,079   |  
|Interest Expense                                       |  |                                  | 3,135     |   |      |   | 41,700    |  
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Total Costs and Expenses                               |  |                                  | 5,418,072 |   |      |   | 5,137,524 |  
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Loss from Operations                                   |  |                                  | (691,594  | ) |      |   | (850,925  | )
|                                                       |  |                                 
|Other Income                                           |  |                                  | 30,720    |   |      |   | 1,214     |  
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Loss from Operations Before Provision for Income Taxes |  |                                  | (660,874  | ) |      |   | (849,711  | )
|                                                       |  |                                 
|Provision for Income Taxes                             |  |                                  | 251,132   |   |      |   | 322,890   |  
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Net Loss                                               |  | $                                | (409,742  | ) |      | $ | (526,821  | )
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Loss per Common Share                                  |  | $                                | (0.79     | ) |      | $ | (1.01     | )
|                                                       |  |                                  |           |   |      |   |           |  
|                                                       |  |                                 
|Dividends paid per Common Share $ 0.05                 |  | $                                | 0.05      |   |      | $ | 0.05      |  
|                                                       |  |                                  |           |   |      |   |           |  

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)



5



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PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



|                                                                            |  |                                   |            |   |      |   |            |  
|--------------------------------------------------------------------------- |  | --------------------------------- | ---------- | - | ---- | - | ---------- | -
|                                                                            |  | FOR THE SIX MONTHS 
ENDEDJUNE 30, |           
|                                                                            |  | 2010                              |            |   | 2009 |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                       |  |                                   |            |   |      |   |            |  
|Net Loss                                                                    |  | $                                 | (409,742   | ) |      | $ | (526,821   | )
|Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: |  |                                   |            |   |      |   |            |  
|Depreciation and Amortization                                               |  |                                   | 361,810    |   |      |   | 392,079    |  
|Provision for Deferred Income Taxes                                         |  |                                   | (251,132   | ) |      |   | (322,890   | )
|Loss on the Sale of Marketable Equity Securities                            |  |                                   | 34,221     |   |      |   |            |  
|Decrease (Increase) in:                                                     |  |                                   |            |   |      |   |            |  
|Accounts Receivable                                                         |  |                                   | 398,494    |   |      |   | (502,941   | )
|Inventories                                                                 |  |                                   | (4,579,499 | ) |      |   | (5,005,003 | )
|Prepaid Expenses                                                            |  |                                   | (301,462   | ) |      |   | (246,974   | )
|Other Assets                                                                |  |                                   | (2,375     | ) |      |   | 62,185     |  
|Income Tax Receivable                                                       |  |                                   | (52,867    | ) |      |   | (274,968   | )
|Increase (Decrease) in:                                                     |  |                                   |            |   |      |   |            |  
|Accounts Payable                                                            |  |                                   | 277,316    |   |      |   | 839,493    |  
|Accrued Expense                                                             |  |                                   | (383,946   | ) |      |   | (667,365   | )
|Income Taxes Payable                                                        |  |                                   | (37,030    | ) |      |   | (124,321   | )
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|Net Cash Used in Operating Activities                                       |  |                                   | (4,946,212 | ) |      |   | (6,377,526 | )
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                       |  |                                   |            |   |      |   |            |  
|Purchase of Property and Equipment                                          |  |                                   | (58,327    | ) |      |   | (86,138    | )
|Proceeds from the Sale of Marketable Equity Securities                      |  |                                   | 111,350    |   |      |   | 0          |  
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|Net Cash Provided by (Used in) Investing Activities                         |  |                                   | 53,023     |   |      |   | (86,138    | )
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                       |  |                                   |            |   |      |   |            |  
|Net Proceeds of Short-Term Debt                                             |  |                                   | 1,911,537  |   |      |   | 4,523,642  |  
|Principal Payments of Long-Term Debt                                        |  |                                   | (5,683     | ) |      |   | (75,069    | )
|Dividends Paid                                                              |  |                                   | (25,968    | ) |      |   | (25,968    | )
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|Net Cash Provided by Financing Activities                                   |  |                                   | 1,879,886  |   |      |   | 4,422,605  |  
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|Net Decrease in Cash                                                        |  |                                   | (3,013,303 | ) |      |   | (2,041,059 | )
|                                                                            |  |                                  
|CASH AT BEGINNING OF PERIOD                                                 |  |                                   | 3,015,063  |   |      |   | 2,045,796  |  
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|CASH AT END OF PERIOD                                                       |  | $                                 | 1,760      |   |      | $ | 4,737      |  
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|SUPPLEMENTAL CASH FLOW INFORMATION:                                         |  |                                   |            |   |      |   |            |  
|Cash paid for:                                                              |  |                                   |            |   |      |   |            |  
|Interest                                                                    |  | $                                 | 3,135      |   |      | $ | 33,450     |  
|Income Tax                                                                  |  |                                   | 77,802     |   |      |   | 430,581    |  
|                                                                            |  |                                   |            |   |      |   |            |  
|                                                                            |  |                                  
|Net Supplemental Cash Flows                                                 |  | $                                 | 80,937     |   |      | $ | 464,031    |  
|                                                                            |  |                                   |            |   |      |   |            |  

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)



6



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PARADISE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1
Basis of Presentation

The accompanying unaudited consolidated financial statements of Paradise, Inc. (the Company) have been
prepared by the Company in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting principles for annual financial statements.

The information furnished
herein reflects all adjustments and accruals that management believes is necessary to fairly state the operating results for the respective periods. The notes to the financial statements should be read in conjunction with the notes to the
consolidated financial statements contained in the Companys Form 10-K for the year ended December 31, 2009. The Companys management believes that the disclosures are sufficient for interim financial reporting purposes.

Note 2 Net Loss per Share

Net loss per
share, assuming no dilution, are based on the weighted average number of shares outstanding during the period: 519,350 (2010 and 2009).

Note 3 Revolving Line of Credit

On
June 23, 2009, Paradise, Inc. renewed its revolving line of credit with another financial institution for a two year period. This bank has agreed to advance Paradise, Inc. 80% of the Companys eligible receivables and up to 60% of the
Companys inventory for a maximum amount of $12,000,000. Interest is payable monthly and is computed from a daily floating rate equal to the Libor rate plus an applicable margin.

This agreement is subject to certain conditions which must be met for the Company to continue borrowing, including debt service coverage and debt to
equity ratios and other financial covenants. The loan agreement is secured by all of the Companys assets, whether tangible or intangible.



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Note 4 Business Segment Data

The Companys operations are conducted through two business segments. These segments, and the primary operations of each, are as follows:



|                 |  |                                                                                                                                                                                                                                                                                                                                          
|---------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Business Segment |  | Operation                                                                                                                                                                                                                                                                                                                                
|                 | 
|Fruit            |  | Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions,
the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc.
|                 | 
|Molded Plastics  |  | Production of plastics containers and other molded plastics for sale to various food processors and others.                                                                                                                                                                                                                              



|                                |  |                               |           |                               |   |          
|------------------------------- |  | ----------------------------- | --------- | ----------------------------- | - | ---------
|                                |  | Six Months EndedJune 30,
2010 |           | Six Months EndedJune 30,
2009
|                                |  |                              
|Net Sales in Each Segment       |  |                               |           |                               |   |          
|                                |  |                              
|Fruit:                          |  |                               |           |                               |   |          
|Sales to Unaffiliated Customers |  | $                             | 809,017   |                               | $ | 858,891  
|Molded Plastics:                |  |                               |           |                               |   |          
|Sales to Unaffiliated Customers |  |                               | 3,917,461 |                               |   | 3,427,708
|                                |  |                               |           |                               |   |          
|                                |  |                              
|Net Sales                       |  | $                             | 4,726,478 |                               | $ | 4,286,599
|                                |  |                               |           |                               |   |          

For the six month period ended June 30, 2010 and 2009, sales of
frozen strawberry products totaled $192,797 and $268,617, respectively.

The Company does not account for intersegment transfers as if the
transfers were to third parties.

The Company does not prepare operating profit or loss information on a segment basis for internal use, until
the end of each year. Due to the seasonal nature of the fruit segment, management believes that it is not practical to prepare this information for interim reporting purposes. Therefore, reporting is not required by generally accepted accounting
principles.



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|                                                    |  |               |            |               |   |           
|--------------------------------------------------- |  | ------------- | ---------- | ------------- | - | ----------
|                                                    |  | June 30, 2010 |            | June 30, 2009
|                                                    |  |              
|Identifiable Assets of Each Segment are ListedBelow |  |               |            |               |   |           
|                                                    |  |              
|Fruit                                               |  | $             | 13,978,081 |               | $ | 16,216,861
|Molded Plastics                                     |  |               | 5,230,574  |               |   | 5,698,688 
|                                                    |  |               |            |               |   |           
|                                                    |  |              
|Identifiable Assets                                 |  |               | 19,208,655 |               |   | 21,915,549
|General Corporate Assets                            |  |               | 2,098,101  |               |   | 2,521,536 
|                                                    |  |               |            |               |   |           
|                                                    |  |              
|Total Assets                                        |  | $             | 21,306,756 |               | $ | 24,437,085
|                                                    |  |               |            |               |   |           

Identifiable assets by segment are those assets that are principally
used in the operations of each segment. General corporate assets are principally cash, land and buildings, and investments.

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact should be considered forward-looking statements for the purpose of these provisions, including statements that include projections of,
or expectations about, earnings, revenues or other financial items, statements about our plans and objectives for future operations, statements concerning proposed new products or services, statements regarding future economic conditions or
performance, statements concerning our expectations regarding the attraction and retention of customers, statements about market risk and statements underlying any of the foregoing. In some cases, forward-looking statements can be identified by the
use of such terminology as may, will, expects, potential, or continue, or the negative thereof or other similar words. Although we believe that the expectations reflected in our
forward-looking statements are reasonable, we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Actual results and developments are likely to be different from, and may be materially
different from, those expressed or implied by our forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties.



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Overview

Paradise, Inc.s main business segment, glace fruit, a prime ingredient of fruitcakes and other holiday confections, represented 70.3% of
consolidated net sales during 2009. These products are sold to manufacturing bakers, institutional users, supermarkets and other retailers throughout the country. Consumer demand for glace fruit products is traditionally strongest during the
Thanksgiving and Christmas season. Historically, over 80% of annual glace fruit sales are recorded for a period of eight to ten weeks beginning in mid September of each year.

Since the majority of the Companys customers require delivery of glace fruit during this relatively short period of time, Paradise, Inc. must
operate at consistent levels of production from as early as January through the middle of November of each year in order to meet peak demand. Furthermore, the Company must make substantial borrowings of short-term working capital to cover the cost
of raw materials, factory overhead and labor expense associated with production for inventory. This combination of building and financing inventories during the year, without the opportunity to record any significant fruit segment income, results in
the recognition of operating losses well into the third quarter of each year. Therefore, it is the opinion of management that meaningful forecasts of annual net sales or profit requires an accounting of a full years operations.

In addition, comparison of current quarterly results to the preceding quarter produces an incomplete picture on the Companys performance due to
year-to-year changes in production schedules, seasonal harvests and availability of raw materials, and in the timing of customer orders and shipments. Therefore, the discussion of information presented within this report is focused on the review of
the Companys current year-to-date results as compared to the similar period last year.

Paradise, Inc.s other business segment,
Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc. produces custom molding products that are not subject to the seasonality of the glace fruit business. This segment represents all injection molding and thermoforming
operations, including the packaging for the Companys fruit products. Only sales to unaffiliated customers are reported.

The First
Six Months

Paradise, Inc.s fruit segment net sales for the first six months of 2010 decreased 5.8% to $809,017 from $858,891 for the
similar reporting period of 2009. The primary sales activity within this segment for the first six months of the year relates to bulk fruit orders received and shipped to supermarkets and manufacturing bakeries leading up and through the Easter
holiday season. The remaining volume of sales activity consists of the sale of finished strawberry products produced exclusively for a local Plant City, Florida distributor during late March and early April over the past several years. For a tolling
fee, Paradise, Inc. will receive and process fresh strawberries through its facilities on behalf of this distributor.



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The First Six Months (Continued)



Tolling charges earned during the first six months of 2010 were $192,797 compared to $268,617 for the
similar reporting period of 2009 representing a decline in net sales of $75,820.

Paradise Plastics, Inc.s net sales to unaffiliated
customers, during the first six months of 2010 increased 14.3% to $3,917,461 from $3,427,708 compared to the similar reporting period for 2009. This represents the second consecutive quarter that the Company has reported an increase in custom
molding plastics orders as several long term customers have begun to experience an upturn in consumer activity for their products. While the Company is pleased with this performance, management is not able to predict with any certainty the strength
of this recent turnaround. However, it is important to mention that Paradise Plastics, Inc. has the necessary facilities, equipment, and labor to meet this revenue growth going forward.

Consolidated cost of sales, as a percentage of net sales, increased 3.0% the first six months of 2010 compared to the similar reporting of 2009. However,
with only slightly more than 30% of the Companys estimated needs for retail glace fruit inventory produced as of June 30, 2010, it is too early to forecast with any reasonable certainty annual cost of sales until a full years
inventory production cycle is completed. Overall consolidated inventory levels as of June 30, 2010 are $2.26 million less than what was on hand as of June 30, 2009 as management has aggressively monitored its procurement of raw materials
during the past twelve months as customers continue to remain cautious as to their own inventory levels.

Selling, general &
administrative expenses for the first six months of 2010 decreased 6.3% compared to the previous years reporting period of 2009. This decrease is primarily related to the Companys cost cutting actions implemented and disclosed during
last years second quarter SEC filing. Paradise, Inc.s Board of Directors reduced executive wages 15% and all selling and administrative wages 10% effective May 1, 2009. These reductions remain in effect for 2010.

Depreciation and amortization expenses decreased 7.7% for the first six months of 2010 compared to the similar reporting period of 2009 as fixed assets
that became fully depreciated during the past twelve months were greater than the amount of new assets placed into service during this period.

Interest expense for the six months ended June 30, 2010 totaled $3,135 compared to $41,700 for the six months ended June 30, 2009. This
represents a decrease in interest expense of $38,565 and is attributed to the following two factors. First, long term debt, as defined by financial obligations greater than 12 months, is $0. Secondly, with inventory levels being $2.26 million lower
as of June 30, 2010 compared to June 30, 2009 short-term borrowing cost to finance the acquisition of raw materials has been significantly reduced.



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##### Table of Contents

Summary

Paradise Inc.s consolidated net sales increased 10.3% for the first six months of 2010 compared to the similar reporting period of 2009 as long term
customers of Paradise Plastics, Inc. severely impacted by the downturn in the housing market during all of 2009 began to stabilize during the first six months of this year. However, due to the highly seasonal nature of the Companys primary
product, glace fruit, which accounts for approximately 70% of consolidated annual revenue, no meaningful financial analysis may be developed from Paradise, Inc.s interim reporting results. Only a full years accounting will provide
the necessary information to determine the Companys financial performance.

ITEM 3. QUANTITATIVE AND
QUALITATIVE DISCLOSURE AND MARKET RISK  N/A

ITEM 4. CONTROLS AND PROCEDURES

The Companys Chief Executive Officer and Chief Financial Officer have, within 90 days of the filing date of this quarterly report, evaluated the
Companys disclosure controls and procedures. Based on their evaluation, the Companys Chief Executive Officer and Chief Financial Officer have concluded, as of June 30, 2010, that the Companys disclosure controls and procedures
are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the
applicable Securities and Exchange Commission rules and forms. There were no changes in the Companys internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting. The most recent evaluation of these controls by the Companys Chief Executive Officer and Chief Financial Officer did not identify any deficiencies or
weaknesses in the Companys internal controls over financial reporting; therefore, no corrective actions were taken.



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##### Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings  N/A

Item 1A. Risk Factors  N/A

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds  N/A

Item 3. Defaults Upon Senior Securities  N/A

Item 4. Submission of Matters to a Vote of Security Holders

The annual meeting of the shareholders of Paradise, Inc. was held on June 1, 2010. The purpose of this meeting was to elect five directors
to hold office until the next annual meeting of shareholders and to ratify the reappointment of Pender, Newkirk and Company, LLP as the Companys independent certified public accountants for 2010.

The results of the election of Directors are as follows:



|                 |  |           |  |               
|---------------- |  | --------- |  | --------------
|Nominee          |  | Votes for |  | Votes Withheld
|                 |  |          
|Melvin S. Gordon |  | 330,605   |  | 11,291        
|Randy S. Gordon  |  | 298,492   |  | 43,404        
|Tracy W. Schulis |  | 298,492   |  | 43,404        
|Mark H. Gordon   |  | 298,492   |  | 43,404        
|Eugene L. Weiner |  | 298,492   |  | 43,404        

The results of the
ratification of Pender, Newkirk & Company, LLP as the Companys independent accountants for 2010 are as follows:



|        |  |         |  |        
|------- |  | ------- |  | -------
|For     |  | Against |  | Abstain
|        |  |        
|457,273 |  | 28,944  |  | 250    

Item 5. Other Information  N/A

Item 6. Exhibits and Reports on Form 8-K



| | (a) | Exhibits.
| | --- | ---------



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| |  |                |  |                                                                                                       
| |  | -------------- |  | ------------------------------------------------------------------------------------------------------
| |  | Exhibit
Number |  | Description                                                                                           
| |  |               
| |  | 31.1           |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002    
| |  |               
| |  | 31.2           |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002    
| |  |               
| |  | 32.1           |  | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| |  |               
| |  | 32.2           |  | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



| | (b) | Reports on Form 8-K.
| | --- | --------------------

None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



| |  |                                       |  |                       |  | 
| |  | ------------------------------------- |  | --------------------- |  | 
| |  | PARADISE, INC.                        |  |                       |  | 
| |  | A Florida Corporation                 |  |                       |  | 
| |  |                                       | 
| |  | /s/ Melvin S. Gordon                  |  | Date: August 13, 2010 |  | 
| |  | Melvin S. Gordon                      |  |                       |  | 
| |  | Chief Executive Officer and Chairman  |  |                       |  | 
| |  |                                       | 
| |  | /s/ Jack M. Laskowitz                 |  | Date: August 13, 2010 |  | 
| |  | Jack M. Laskowitz                     |  |                       |  | 
| |  | Chief Financial Officer and Treasurer |  |                       |  | 



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