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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 September 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 33563

(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 September 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 SEPTEMBER 30, 2010

INDEX



|           |  |                                                                                            |    |      |         | 
|---------- |  | ------------------------------------------------------------------------------------------ | -- | ---- | ------- | 
|           |  |                                                                                            |    | PAGE |        
|PART I.    |  | FINANCIAL INFORMATION                                                                      |    |      |         | 
|           |  |                                                                                           
|           |  | ITEM 1.                                                                                    |    |      |         | 
|           |  |                                                                                           
|           |  | CONSOLIDATED BALANCE SHEETS:                                                               |    |      |         | 
|           |  |                                                                                           
|           |  | Assets                                                                                     |    |      |         | 
|           |  |                                                                                           
|           |  | As of September 30, 2010 (Unaudited), December 31, 2009 and September 30, 2009 (Unaudited) |    |      | 2       | 
|           |  |                                                                                           
|           |  | Liabilities and Stockholders Equity                                                       |    |      |         | 
|           |  |                                                                                           
|           |  | As of September 30, 2010 (Unaudited), December 31, 2009 and September 30, 2009 (Unaudited) |    |      | 3       | 
|           |  |                                                                                           
|           |  | CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED):                                             |    |      |         | 
|           |  |                                                                                           
|           |  | For the three-month periods ended September 30, 2010 and 2009                              |    |      | 4       | 
|           |  |                                                                                           
|           |  | For the nine-month periods ended September 30, 2010 and 2009                               |    |      | 5       | 
|           |  |                                                                                           
|           |  | CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED):                                         |    |      |         | 
|           |  |                                                                                           
|           |  | For the nine-month periods ended September 30, 2010 and 2009                               |    |      | 6       | 
|           |  |                                                                                           
|           |  | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                                 |    |      | 7  9   | 
|           |  |                                                                                           
|           |  | ITEM 2.                                                                                    |    |      |         | 
|           |  |                                                                                           
|           |  | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS      |    |      | 10  12 | 
|           |  |                                                                                           
|           |  | 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      | 
|           | 
|SIGNATURES |  |                                                                                            | 14 |     



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



|PART I. | FINANCIAL INFORMATION
|------- | ---------------------



|Item 1. | Financial Statements
|------- | --------------------

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



|                                                                                                                                           |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------------- | ---------- |  | --------------------- | - | ---------- | --------------------------------- |  | - | ---------- | 
|                                                                                                                                           |  | AS OFSEPTEMBER 30,2010(UNAUDITED) |            |  | AS OFDECEMBER 31,2009 |   |            | AS OFSEPTEMBER 30,2009(UNAUDITED) | 
|                                                                                                                                           |  |                                   |           
|ASSETS                                                                                                                                     |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|                                                                                                                                           |  |                                   |           
|CURRENT ASSETS:                                                                                                                            |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|Cash and Unrestricted Demand Deposits                                                                                                      |  | $                                 | 789,042    |  |                       | $ | 3,015,063  |                                   |  | $ | 441,681    | 
|Accounts and Notes Receivable, Less, Allowances of $0 (09/30/10), $1,284,611 (12/31/09) and $0 (09/30/09)                                  |  |                                   | 5,889,664  |  |                       |   | 1,789,906  |                                   |  |   | 7,344,418  | 
|Inventories:                                                                                                                               |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|Raw Materials                                                                                                                              |  |                                   | 2,847,415  |  |                       |   | 1,928,596  |                                   |  |   | 3,264,429  | 
|Work in Process                                                                                                                            |  |                                   | 380,540    |  |                       |   | 1,255,909  |                                   |  |   | 458,144    | 
|Finished Goods                                                                                                                             |  |                                   | 7,585,845  |  |                       |   | 5,021,739  |                                   |  |   | 8,471,373  | 
|Deferred Income Tax Asset                                                                                                                  |  |                                   | 279,545    |  |                       |   | 279,545    |                                   |  |   | 265,222    | 
|Income Tax Refund Receivable                                                                                                               |  |                                   | 251,728    |  |                       |   |            |                                   |  |   |            | 
|Prepaid Expenses and Other Current Assets                                                                                                  |  |                                   | 502,998    |  |                       |   | 363,194    |                                   |  |   | 774,515    | 
|                                                                                                                                           |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|                                                                                                                                           |  |                                   |           
|Total Current Assets                                                                                                                       |  |                                   | 18,526,777 |  |                       |   | 13,653,952 |                                   |  |   | 21,019,782 | 
|                                                                                                                                           |  |                                   |           
|Property, Plant and Equipment, Less, Accumulated Depreciation of $17,861,158 (09/30/10), $17,433,040 (12/31/09) and $17,283,495
(09/30/09) |  |                                   | 4,443,563  |  |                       |   | 4,749,033  |                                   |  |   | 4,876,680  | 
|Deferred Charges and Other Assets                                                                                                          |  |                                   | 193,131    |  |                       |   | 312,378    |                                   |  |   | 248,165    | 
|Goodwill                                                                                                                                   |  |                                   | 413,280    |  |                       |   | 413,280    |                                   |  |   | 413,280    | 
|Intangible Asset, Net                                                                                                                      |  |                                   | 722,988    |  |                       |   | 817,402    |                                   |  |   | 848,874    | 
|                                                                                                                                           |  |                                   |            |  |                       |   |            |                                   |  |   |            | 
|                                                                                                                                           |  |                                   |           
|TOTAL ASSETS                                                                                                                               |  | $                                 | 24,299,739 |  |                       | $ | 19,946,045 |                                   |  | $ | 27,406,781 | 
|                                                                                                                                           |  |                                   |            |  |                       |   |            |                                   |  |   |            | 

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)



2



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|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|---------------------------------------------------------------------------------------------------------- |  | ---------------------------------- | ---------- | - | --------------------- | - | ---------- | --------------------------------- |  | - | ---------- | -
|                                                                                                           |  | AS
OFSEPTEMBER 
30,2010(UNAUDITED) |            |   | AS OFDECEMBER 31,2009 |   |            | AS OFSEPTEMBER 30,2009(UNAUDITED) | 
|                                                                                                           |  |                                    |           
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                       |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|CURRENT LIABILITIES:                                                                                       |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|Notes and Trade Acceptances Payable                                                                        |  | $                                  | 4,337,184  |   |                       | $ | 186,919    |                                   |  | $ | 7,152,645  |  
|Current Portion of Long-Term Debt                                                                          |  |                                    | 4,475      |   |                       |   | 8,831      |                                   |  |   | 267,619    |  
|Accounts Payable                                                                                           |  |                                    | 432,872    |   |                       |   | 786,253    |                                   |  |   | 922,336    |  
|Accrued Liabilities                                                                                        |  |                                    | 815,132    |   |                       |   | 872,272    |                                   |  |   | 1,012,194  |  
|Income Taxes Payable                                                                                       |  |                                    | 246,987    |   |                       |   | 37,030     |                                   |  |   | 171,037    |  
|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|Total Current Liabilities                                                                                  |  |                                    | 5,836,650  |   |                       |   | 1,891,305  |                                   |  |   | 9,525,831  |  
|                                                                                                           |  |                                    |           
|LONG-TERM DEBT, NET OF CURRENT PORTION                                                                     |  |                                    | 0          |   |                       |   | 2,885      |                                   |  |   | 4,483      |  
|                                                                                                           |  |                                    |           
|DEFERRED INCOME TAX LIABILITY                                                                              |  |                                    | 209,478    |   |                       |   | 209,478    |                                   |  |   | 223,891    |  
|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|Total Liabilities                                                                                          |  |                                    | 6,046,128  |   |                       |   | 2,103,668  |                                   |  |   | 9,754,205  |  
|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|STOCKHOLDERS EQUITY:                                                                                      |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|Common Stock: $0.30 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                                                                                          |  |                                    | 17,348,054 |   |                       |   | 16,971,041 |                                   |  |   | 16,840,298 |  
|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                                                                                 |  |                                    | 18,253,611 |   |                       |   | 17,842,377 |                                   |  |   | 17,652,576 |  
|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  
|                                                                                                           |  |                                    |           
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                                                                 |  | $                                  | 24,299,739 |   |                       | $ | 19,946,045 |                                   |  | $ | 27,406,781 |  
|                                                                                                           |  |                                    |            |   |                       |   |            |                                   |  |   |            |  



3



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PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



|                                                         |  |                                          |           |   |      |   |           | 
|-------------------------------------------------------- |  | ---------------------------------------- | --------- | - | ---- | - | --------- | 
|                                                         |  | FOR THE THREE MONTHS ENDED
SEPTEMBER 30, |          
|                                                         |  | 2010                                     |           |   | 2009 |  
|                                                         |  |                                         
|Net Sales                                                |  | $                                        | 8,391,798 |   |      | $ | 9,402,504 | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Costs and Expenses:                                      |  |                                          |           |   |      |   |           | 
|Cost of Goods Sold (excluding Depreciation)              |  |                                          | 5,841,669 |   |      |   | 6,639,539 | 
|Selling, General and Administrative Expense              |  |                                          | 1,042,035 |   |      |   | 1,212,048 | 
|Depreciation and Amortization                            |  |                                          | 173,780   |   |      |   | 195,365   | 
|Interest Expense                                         |  |                                          | 22,712    |   |      |   | 57,654    | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Total Costs and Expenses                                 |  |                                          | 7,080,196 |   |      |   | 8,104,606 | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Income from Operations                                   |  |                                          | 1,311,602 |   |      |   | 1,297,898 | 
|                                                         |  |                                         
|Other Income (Loss)                                      |  |                                          | (762      | ) |      |   | 1,911     | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Income from Operations Before Provision for Income Taxes |  |                                          | 1,310,840 |   |      |   | 1,299,809 | 
|                                                         |  |                                         
|Provision for Income Taxes                               |  |                                          | 498,119   |   |      |   | 493,927   | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Net Income                                               |  | $                                        | 812,721   |   |      | $ | 805,882   | 
|                                                         |  |                                          |           |   |      |   |           | 
|                                                         |  |                                         
|Income per Common Share                                  |  | $                                        | 1.56      |   |      | $ | 1.55      | 
|                                                         |  |                                          |           |   |      |   |           | 

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 NINE MONTHS ENDED
SEPTEMBER 30, |           
|                                                         |  | 2010                                    |            |  | 2009 |  
|                                                         |  |                                        
|Net Sales                                                |  | $                                       | 13,118,276 |  |      | $ | 13,689,103 | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Costs and Expenses:                                      |  |                                         |            |  |      |   |            | 
|Cost of Goods Sold (excluding Depreciation)              |  |                                         | 9,334,451  |  |      |   | 9,677,514  | 
|Selling, General and Administrative Expense              |  |                                         | 2,602,380  |  |      |   | 2,877,818  | 
|Depreciation and Amortization                            |  |                                         | 535,590    |  |      |   | 587,444    | 
|Interest Expense                                         |  |                                         | 25,847     |  |      |   | 99,354     | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Total Costs and Expenses                                 |  |                                         | 12,498,268 |  |      |   | 13,242,130 | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Income from Operations                                   |  |                                         | 620,008    |  |      |   | 446,973    | 
|                                                         |  |                                        
|Other Income                                             |  |                                         | 29,958     |  |      |   | 3,125      | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Income from Operations Before Provision for Income Taxes |  |                                         | 649,966    |  |      |   | 450,098    | 
|                                                         |  |                                        
|Provision for Income Taxes                               |  |                                         | 246,987    |  |      |   | 171,037    | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Net Income                                               |  | $                                       | 402,979    |  |      | $ | 279,061    | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Income per Common Share                                  |  | $                                       | 0.78       |  |      | $ | 0.54       | 
|                                                         |  |                                         |            |  |      |   |            | 
|                                                         |  |                                        
|Dividends paid per Common Share                          |  | $                                       | 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 NINE MONTHS ENDEDSEPTEMBER 30, |           
|                                                                              |  | 2010                                   |            |   | 2009 |  
|                                                                              |  |                                       
|CASH FLOWS FROM OPERATING ACTIVITIES:                                         |  |                                        |            |   |      |   |            |  
|Net Income                                                                    |  | $                                      | 402,979    |   |      | $ | 279,061    |  
|Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities: |  |                                        |            |   |      |   |            |  
|Depreciation and Amortization                                                 |  |                                        | 535,590    |   |      |   | 587,444    |  
|Loss on the Sale of Marketable Equity Securities                              |  |                                        | 34,221     |   |      |   |            |  
|Decrease (Increase) in:                                                       |  |                                        |            |   |      |   |            |  
|Accounts Receivable                                                           |  |                                        | (4,099,758 | ) |      |   | (6,514,646 | )
|Inventories                                                                   |  |                                        | (2,607,566 | ) |      |   | (2,149,885 | )
|Prepaid Expenses                                                              |  |                                        | (139,804   | ) |      |   | (88,911    | )
|Other Assets                                                                  |  |                                        | (5,151     | ) |      |   | 41,280     |  
|Income Tax Refund Receivable                                                  |  |                                        | (251,728   | ) |      |   | (244,968   | )
|Increase (Decrease) in:                                                       |  |                                        |            |   |      |   |            |  
|Accounts Payable                                                              |  |                                        | (353,379   | ) |      |   | 232,663    |  
|Accrued Expense                                                               |  |                                        | (57,140    | ) |      |   | (141,201   | )
|Income Taxes Payable                                                          |  |                                        | 209,957    |   |      |   | 46,716     |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|Net Cash Used in Operating Activities                                         |  |                                        | (6,331,779 | ) |      |   | (7,952,447 | )
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|CASH FLOWS FROM INVESTING ACTIVITIES:                                         |  |                                        |            |   |      |   |            |  
|Purchase of Property and Equipment                                            |  |                                        | (122,648   | ) |      |   | (147,719   | )
|Proceeds from the Sale of Marketable Equity Securities                        |  |                                        | 111,350    |   |      |   |            |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|Net Cash Used in Investing Activities                                         |  |                                        | (11,298    | ) |      |   | (147,719   | )
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|CASH FLOWS FROM FINANCING ACTIVITIES:                                         |  |                                        |            |   |      |   |            |  
|Net Proceeds of Short-Term Debt                                               |  |                                        | 4,150,265  |   |      |   | 6,613,745  |  
|Principal Payments of Long-Term Debt                                          |  |                                        | (7,241     | ) |      |   | (91,726    | )
|Dividends Paid                                                                |  |                                        | (25,968    | ) |      |   | (25,968    | )
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|Net Cash Provided by Financing Activities                                     |  |                                        | 4,117,056  |   |      |   | 6,496,051  |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|NET DECREASE IN CASH                                                          |  |                                        | (2,226,021 | ) |      |   | (1,604,115 | )
|                                                                              |  |                                       
|CASH, AT BEGINNING OF PERIOD                                                  |  |                                        | 3,015,063  |   |      |   | 2,045,796  |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|CASH, AT END OF PERIOD                                                        |  | $                                      | 789,042    |   |      | $ | 441,681    |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|SUPPLEMENTAL CASH FLOW INFORMATION:                                           |  |                                        |            |   |      |   |            |  
|Cash paid for:                                                                |  |                                        |            |   |      |   |            |  
|Interest                                                                      |  | $                                      | 25,847     |   |      | $ | 86,979     |  
|Income Tax                                                                    |  |                                        | 276,663    |   |      |   | 430,581    |  
|                                                                              |  |                                        |            |   |      |   |            |  
|                                                                              |  |                                       
|Net Supplemental Cash Flows                                                   |  | $                                      | 302,510    |   |      | $ | 517,560    |  
|                                                                              |  |                                        |            |   |      |   |            |  

During the nine months ended September 30, 2009, the Company entered into a revolving line of credit agreement and used
the proceeds to payoff existing debt totaling $5,704,412.

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 INCOME PER SHARE
|------ | --------------------

Net
income 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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##### Table of Contents

PARADISE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)





|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.                                                                                                                                                                                                                              



|                                |  |                   |            |  |                   |   |            | 
|------------------------------- |  | ----------------- | ---------- |  | ----------------- | - | ---------- | 
|                                |  | September 30,2010 |            |  | September 30,2009 |  
|                                |  |                  
|Net Sales in Each Segment       |  |                   |            |  |                   |   |            | 
|                                |  |                  
|Fruit:                          |  |                   |            |  |                   |   |            | 
|Sales to Unaffiliated Customers |  | $                 | 7,589,776  |  |                   | $ | 8,751,398  | 
|                                |  |                  
|Molded Plastics:                |  |                   |            |  |                   |   |            | 
|Sales to Unaffiliated Customers |  |                   | 5,528,500  |  |                   |   | 4,937,705  | 
|                                |  |                   |            |  |                   |   |            | 
|                                |  |                  
|Net Sales                       |  | $                 | 13,118,276 |  |                   | $ | 13,689,103 | 
|                                |  |                   |            |  |                   |   |            | 

For the nine month period ended September 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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##### Table of Contents

PARADISE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)



|NOTE 4 | BUSINESS SEGMENT DATA (CONTINUED)
|------ | ---------------------------------





|                                                      |  |                   |            |  |                  |  |            |                   |  |   |            | 
|----------------------------------------------------- |  | ----------------- | ---------- |  | ---------------- |  | ---------- | ----------------- |  | - | ---------- | 
|                                                      |  | September 30,2010 |            |  | December 31,2009 |  |            | September 30,2009 | 
|                                                      |  |                   |           
|Identifiable Assets of Each Segment are Listed Below: |  |                   |            |  |                  |  |            |                   |  |   |            | 
|                                                      |  |                   |           
|Fruit                                                 |  | $                 | 16,619,139 |  |                  |  | 10,299,983 |                   |  | $ | 19,975,286 | 
|                                                      |  |                   |           
|Molded Plastics                                       |  |                   | 4,932,116  |  |                  |  | 4,957,557  |                   |  |   | 4,987,337  | 
|                                                      |  |                   |            |  |                  |  |            |                   |  |   |            | 
|                                                      |  |                   |           
|Identifiable Assets                                   |  |                   | 21,551,255 |  |                  |  | 15,257,540 |                   |  |   | 24,962,623 | 
|                                                      |  |                   |           
|General Corporate Assets                              |  |                   | 2,748,484  |  |                  |  | 4,688,505  |                   |  |   | 2,444,158  | 
|                                                      |  |                   |            |  |                  |  |            |                   |  |   |            | 
|                                                      |  |                   |           
|Total Assets                                          |  | $                 | 24,299,739 |  |                  |  | 19,946,045 |                   |  | $ | 27,406,781 | 
|                                                      |  |                   |            |  |                  |  |            |                   |  |   |            | 

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.



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



|PART I. | FINANCIAL INFORMATION
|------- | ---------------------



|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.

Overview

Paradise, Inc.s main business segment, glace fruit, a prime ingredient of fruitcakes and other holiday confections,
represented 70.3% of total 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 product is traditionally strongest
during the Thanksgiving and Christmas season. Almost 80% of glace fruit product sales are recorded for a period of eight to ten weeks beginning in mid September.

Since the majority of the Companys customers require delivery of glace candied fruit products 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 product income, results in the generation 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 levels require analysis 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. Thus, 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s
other business segment, Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc., produces custom molding products that is 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.



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



|PART I. | FINANCIAL INFORMATION
|------- | ---------------------



|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)
|------- | -------------------------------------------------------------------------------------------------





The First
Nine Months

Paradise, Inc.s fruit segment net sales decreased 13.3% for the first nine months of 2010 compared
to the similar reporting period of 2009, primarily due to timing differences in the receipt of customer orders and corresponding shipping dates for delivery of the Companys glace fruit products. Paradise, Inc. recognizes revenue based
upon shipment of goods to its customers. Changes in shipping dates requested by customers between interim reporting dates will lead to fluctuations in net sales. Paradise, Inc. has been consistent in previous filings to disclose that interim reports
are not reliable indicators of year-end results. The Company must wait until all orders and re-orders for glace fruit products leading up and through the holiday season have been fulfilled before any determination of success can be made.

Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc., which is not subject to seasonal fluctuations, generated
a 12.0% increase in net sales to unaffiliated customers for the first nine months of 2010 compared to the similar reporting period of 2009. Plastics sales have continued to rebound steadily from 2009 as evidenced by the Companys first and
second quarter filings of 2010. This growth which includes increased sales from customers within the housing market has also been supported by additional sales related to the health care, food processing and aerospace industries.

Consolidated cost of sales, as a percentage of net sales, increased less than 0.5% during the first nine months of 2010 compared to the
similar reporting period of 2009. Inventory as of September 30, 2010 decreased $1,380,146 compared to inventory levels as of September 30, 2009. This continues a recent trend in the Companys effort to reduce its inventory and related
interest expense as Paradise, Inc. finances the majority of its raw materials with short-term borrowing from its revolving line of credit. For the nine months ended September 30, 2010, interest expense totaled $23,406 compared to $64,230 for
the similar reporting period of 2009.

Selling, general & administrative expenses for the first nine months of 2010
decreased 9.6% compared to the previous years reporting period of 2009. This decrease is primarily related to the following two factors: First, changes in shipping dates to the fourth quarter of 2010 resulted in timing differences in the
recognition of revenue. Likewise, selling cost such as freight out expense and accrued brokerage fees have also been delayed until the fourth quarter of 2010 as compared to the third quarter of 2009. Secondly, the Companys cost cutting actions
implemented and disclosed during last years second quarter SEC filing in which Paradise, Inc.s Board of Directors reduced executive wages 15% and all selling and administrative wages 10%, effective May 1, 2009, have now been in
effect for the first nine months of 2010.

Depreciation and amortization expenses decreased 8.8% for the first nine months of
2010 compared to the similar reporting period of 2009 as fixed assets that became fully depreciated during the past twelve months exceeded the amount of new assets placed into service. In addition, amortization expense associated with the
Companys revolving line of credit equaled $13,058 at September 30, 2010 compared to $30,218 for the same period of 2009. As of September 30, 2010, outstanding borrowings on the Companys revolving line of credit was $3, 922,356
compared to $7,047,974 for the similar reporting period of 2009.



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##### Table of Contents

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



|PART I. | FINANCIAL INFORMATION
|------- | ---------------------



|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued)
|------- | -------------------------------------------------------------------------------------------------





Summary

Paradise Inc.s consolidated net sales decreased 4.2% for the first nine months of 2010 compared to the similar
reporting period of 2009 as timing differences between interim reporting periods in receipt and shipment of glace fruit orders offset the continued growth in plastics sales during the first nine months of 2010.

However, with more than 80% of Paradise, Inc.s annual fruit segment net sales scheduled to commence in mid September and continue
throughout the fourth quarter of 2010, no meaningful financial analysis may be developed from this interim filing. As stated in numerous interim filings, only a full years reporting will provide the necessary information to determine the
Companys financial success.



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



|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  N/A
|------- | ---------------------------------------------------------



|Item 5. | Other Information  N/A
|------- | -----------------------



|Item 6. | Exhibits and Reports on Form 8-K
|------- | --------------------------------



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



|              |  |                                                                                                   
|------------- |  | --------------------------------------------------------------------------------------------------
|ExhibitNumber |  | 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 Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|              | 
|32.2          |  | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



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

None.



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

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:    November 12, 2010
|Melvin S. Gordon                      |  |  |  |                           
|Chief Executive Officer and Chairman  |  |  |  |                           
|                                      |  | 
|/s/ Jack M. Laskowitz                 |  |  |  | Date:    November 12, 2010
|Jack M. Laskowitz                     |  |  |  |                           
|Chief Financial Officer and Treasurer |  |  |  |                           



14