10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

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

For the quarterly period ended June 30, 2016

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 W. 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 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 (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 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

The number of shares outstanding of each of the issuer’s classes of common stock as of August 15, 2016 was 519,600 shares.

PARADISE, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2016

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
	ITEM 1.
	CONSOLIDATED BALANCE SHEETS:
	Assets
	As of June 30, 2016 (Unaudited), December 31, 2015 and June 30, 2015 (Unaudited)	2
	Liabilities and Stockholders’ Equity
	As of June 30, 2016 (Unaudited), December 31, 2015 and June 30, 2015 (Unaudited)	3
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED):
	For the three-month periods ended June 30, 2016 and 2015	4
	For the six-month periods ended June 30, 2016 and 2015	5
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED):
	For the six-month periods ended June 30, 2016 and 2015	6
	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	7 – 10
	ITEM 2.
	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11 – 15
	ITEM 3.
	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK – N/A	15
	ITEM 4.
	CONTROLS AND PROCEDURES	15
PART II.	OTHER INFORMATION
	ITEMS 1 – 6.	16
SIGNATURES		17

PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	AS OF				AS OF
	JUNE 30,		AS OF		JUNE 30,
	2016		DECEMBER 31,		2015
	(UNAUDITED)		2015		(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash	$	3,226,323	$	8,791,938	$	3,356,979
Accounts Receivable, Less, Allowances of $0 (06/30/16), $1,066,314 (12/31/15) and $0 (06/30/15)		1,123,400		2,182,306		1,268,723
Inventories:
Raw Materials		8,354,595		5,114,439		7,547,182
Work in Process		455,950		785,711		249,005
Supplies		161,258		161,258		168,275
Finished Goods		4,772,853		2,118,261		4,516,887
Income Tax Receivable		429,222		76,290		734,241
Deferred Income Tax Asset		241,834		241,834		277,291
Prepaid Expenses and Other Current Assets		436,954		318,250		501,577
Total Current Assets		19,202,389		19,790,287		18,620,160
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,461,580 (06/30/16), $18,294,592 (12/31/15) and $18,088,884 (06/30/15)		3,928,048		3,924,480		3,763,656
Goodwill		413,280		413,280		413,280
Customer Base and Non-Compete Agreement		-		62,092		125,035
Other Assets		370,941		392,426		434,168
TOTAL ASSETS	$	23,914,658	$	24,582,565	$	23,356,299

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

2

	AS OF						AS OF
	JUNE 30,			AS OF			JUNE 30,
	2016			DECEMBER 31,			2015
	(UNAUDITED)			2015			(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short Term Debt	$	820,589		$	582,839		$	1,155,588
Accounts Payable		815,410			615,928			781,612
Accrued Liabilities		106,173			843,851			206,073
Total Current Liabilities		1,742,172			2,042,618			2,143,273
DEFERRED INCOME TAX LIABILITY		315,125			315,125			203,667
Total Liabilities		2,057,297			2,357,743			2,346,940
STOCKHOLDERS’ EQUITY:
Common Stock:  $0.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,600 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		20,666,859			21,034,320			19,818,857
Treasury Stock, at Cost, 63,494 Shares		(273,219	)		(273,219	)		(273,219	)
Total Stockholders’ Equity		21,857,361			22,224,822			21,009,359
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	23,914,658		$	24,582,565		$	23,356,299

3

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	FOR THE THREE MONTHS ENDED
	JUNE 30,
	2016			2015
Net Sales	$	2,103,261		$	2,479,127
Costs and Expenses:
Cost of Goods Sold		1,525,357			2,023,133
Selling, General and Administrative Expense		742,566			898,586
Amortization Expense		29,843			35,972
Total Costs and Expenses		2,297,766			2,957,691
Loss from Operations		(194,505	)		(478,564	)
Other Income		48,959			26,539
Loss Before Income Taxes		(145,546	)		(452,025	)
Income Tax Benefit		58,218			180,810
Net Loss	$	(87,328	)	$	(271,215	)
Loss per Common Share (Basic and Diluted)	$	(0.17	)	$	(0.52	)
Dividend per Common Share	$	0.00		$	0.00

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

4

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	FOR THE SIX MONTHS ENDED
	JUNE 30,
	2016			2015
Net Sales	$	5,066,217		$	5,170,884
Costs and Expenses:
Cost of Goods Sold		3,865,396			4,483,306
Selling, General and Administrative Expense		1,675,921			1,831,646
Amortization Expense		66,203			71,943
Total Costs and Expenses		5,607,520			6,386,895
Loss from Operations		(541,303	)		(1,216,011	)
Other Income		50,702			44,852
Loss Before Income Taxes		(490,601	)		(1,171,159	)
Income Tax Benefit		196,240			468,464
Net Loss	$	(294,361	)	$	(702,695	)
Loss per Common Share (Basic and Diluted)	$	(0.57	)	$	(1.35	)
Dividend per Common Share	$	0.15		$	0.11

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

5

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	FOR THE SIX MONTHS ENDED
	JUNE 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(294,361	)	$	(702,695	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation and Amortization		266,944			280,729
Decrease (Increase) in:
Accounts Receivable		1,058,906			1,777,946
Inventories		(5,564,987	)		(4,996,440	)
Prepaid Expenses and Other Current Assets		(118,704	)		(194,626	)
Income Tax Receivable		(352,932	)		(655,964	)
Other Assets		17,374			8,205
Increase (Decrease) in:
Accounts Payable		204,322			178,260
Accrued Expense		(737,678	)		(613,385	)
Net Cash Used in Operating Activities		(5,521,116	)		(4,917,970	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment		(204,309	)		(498,614	)
Net Cash Used in Investing Activities		(204,309	)		(498,614	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Short Term Debt		820,589			1,268,467
Payments on Short Term Debt		(582,839	)		(225,758	)
Dividends Paid		(77,940	)		(57,156	)
Net Cash Provided by Financing Activities		159,810			985,553
NET DECREASE IN CASH		(5,565,615	)		(4,431,031	)
CASH, AT BEGINNING OF PERIOD		8,791,938			7,788,010
CASH, AT END OF PERIOD	$	3,226,323		$	3,356,979
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for:
Income Taxes	$	344,000		$	187,500

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

6

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE 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 accounting principles generally accepted in the United States of America 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 accounting principles generally accepted in the United States of America for annual financial statements.

The information furnished herein reflects all adjustments and accruals of a normal recurring nature that management believes are necessary to fairly state the operating results for the respective periods. The notes to the unaudited consolidated 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, 2015. The Company’s management believes that the disclosures are sufficient for interim financial reporting purposes.

Consumer demand for glace’ fruit product is traditionally strongest during the Thanksgiving and Christmas season. Almost 80% of glace’ fruit product sales are recorded during an eight to ten week period beginning in mid September. Therefore, the operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the current year.

Certain minor reclassifications have been made to the consolidated unaudited financial statements for the three and six months ended June 30, 2015 to conform to the classifications used for the three and six months ended June 30, 2016.

NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2018, which is the effective date for public companies. Early application is permitted as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends FASB ASU Topic 330, Inventory. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted. The Company does not anticipate the adoption of this ASU to have a material impact on the Company’s financial position or results of operations.

7

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (CONTINUED)

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. The ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified balance sheet. The standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for any interim and annual financial statements that have not yet been issued. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)(ASU 2016-02). Under ASU No. 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU No. 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of these changes to the Company’s consolidated financial statements.

Except as noted above, the Company’s management does not believe that recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

NOTE 3 LOSS PER COMMON SHARE

Basic and diluted loss per common share is based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600. There are no dilutive securities outstanding.

8

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE 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.

	Three months ended		Three months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	401,378	$	302,841
Molded Plastics:
Sales to Unaffiliated Customers		1,701,883		2,176,286
Net Sales	$	2,103,261	$	2,479,127

	Six months ended		Six months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	1,254,658	$	1,307,129
Molded Plastics:
Sales to Unaffiliated Customers		3,811,559		3,863,755
Net Sales	$	5,066,217	$	5,170,884

9

PARADISE, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(UNAUDITED)

NOTE 4 BUSINESS SEGMENT DATA (CONTINUED)

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 accounting principles generally accepted in the United States of America.

	June 30,		June 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	13,556,927	$	12,343,020
Molded Plastics		5,002,643		5,115,888
Identifiable Assets		18,559,570		17,458,908
General Corporate Assets		5,355,088		5,897,391
Total Assets	$	23,914,658	$	23,356,299

Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, prepaid expenses, other current assets, land and income tax assets.

10

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 68.3% of total net sales during the prior year ended December 31, 2015. 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 during an eight to ten week period 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 demands. 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, Inc.’s other business segment, Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc. producing custom molding products, 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.

11

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 Second Quarter

Paradise, Inc.’s fruit segment net sales for the first six months of 2016 totaled $1,254,658 compared to net sales of $1,307,129 for the similar reporting period of 2015 representing a decrease of $52,471 or 4.0%. The fruit segment has two primary products for sale during the first six months of the year. The main product is glace’ fruit sold in bulk quantities and shipped to manufacturing bakeries and select supermarkets for the traditional Easter holiday season. Net sales orders received and shipped for bulk glace’ fruit products during the first six months of 2016 were $799,642 compared to $808,786 for the similar reporting period of 2015, representing a decrease of $9,144 or 1.1%. The other main product for sale in the first six months of each year is finished strawberry items produced exclusively for a local distributor during a short period of time beginning in March and running through mid April of each year. As in previous years, Paradise, Inc., based on a negotiated price (i.e. tolling fee) will receive and process fresh strawberries through its production facilities on behalf of this distributor. With weather conditions not as favorable as in past years, tolling fees received from this local distributor for the six months ending June 30, 2016 were $455,016 compared to $498,343 representing a decrease of $43,327 or 8.7% for the six months ended June 30, 2015.

Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc., which accounted for 31.7% of total net sales to unaffiliated customers for the previous year, generated net sales of $3,811,559 for the six months ended June 30, 2016 compared to $3,863,755 for the similar reporting period of 2015. This represents a decrease of $52,196 or 1.4%. The primary reason for this decrease relates to the timing of sales orders received and shipped between reporting periods to a long term plastics customer for heavy gauge vacuum forming parts used for their customers within the housing market. While management is pleased that plastics sales are in line with mid-year 2015 levels, no forecast or trends can be given as to how much revenue will be generated for the next six months of 2016. Plastics sales can only be determined for up to 90 days as many if not all Paradise Plastics, Inc.’s re-orders range between 30 and 90 days. Future revenue can only be confirmed when re-orders for these plastics parts are received and shipped by Paradise Plastics, Inc. to its customers.

Consolidated cost of sales as a percentage of overall net sales decreased 10.4% for the first six months of 2016 compared to the similar reporting period of 2015. Two reasons represent this change. First, a greater percentage of plastics parts ordered and shipped during the first six months of 2016 compared to the similar reporting period of 2015 were of higher gross margins. Secondly, the fruit segment after not commencing brining operations of orange peel during the first six months of 2015, produced 2.7 million lbs. of brined orange peel inventory during the first six months of 2016. As mentioned during previous interim reporting filings, with more than an adequate amount of brined orange peel in the Company’s inventory as of January 1, 2015, brining operations for orange peel were postponed for 2015. Thus, the increase in seasonal peel production during first half of 2016 allocated over a relatively fixed amount of factory overhead (i.e.: insurance, utilities, depreciation and taxes) had the impact of reducing cost of sales as of June 30, 2016 compared to June 30, 2015. However, seasonal production cycles for various peels does not represent a trend or an estimate that can project the level of cost of sales for a full year. The Company typically starts processing all of its various brined fruit inventory into finished inventory as of June of each year. Thus, it is important to understand that until a full year’s production cycle is completed, the Company will not be able to determine the change in cost of sales and its relationship to overall sales.

Selling, general & administrative (S,G&A) expenses for the first six months of 2016 totaled $1,675,921 compared to $1,831,646 representing a decrease of $155,725 or 8.5% and is primarily related to the retirement of three senior managers during late 2015.

12

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)

Other Significant Items

Other Income for the first six months of 2016 totaled $50,702 compared to $44,852 for the similar reporting period of 2015. Other income is periodic sales of recycled plastics materials along with changes in the cash surrender value of two insurance policies owned by the Company on behalf of two senior executives.

Inventory as of June 30, 2016 totaled $13,744,656 compared to $12,481,349 as of June 30, 2015 representing an increase of $1,263,307 or 10.1% as shipments from suppliers of brined fruit commodities such as pineapple, papaya and ginger, which may fluctuate based upon many factors common to agricultural products, were received in greater quantities during the six months of 2016 than the first six months of 2015. With several of the Company’s brined fruit commodities being shipped to Plant City, Florida from as far away as Southeast Asia, timing differences regarding levels of brined fruit will occur at various interim reporting periods.

Short Term Debt and Accounts Payable combined balances as of June 30, 2016 totaled $1,635,999 compared to $1,937,200 for the similar reporting period for 2015. This represents a decrease of $301,201 and is directly related to the earlier receipt of severed brined fruit commodities mentioned above. As the suppliers and payment terms are consistent with the previous year, Paradise, Inc.’s satisfied a greater amount of its liability to these supplier’s in the second quarter of 2016 compared to the second quarter of 2015.

We finance our ongoing operations primarily with cash provided by our operating activities. Our principal sources of liquidity are our cash flows provided by operating activities, our existing cash, and a line of credit facility. At June 30, 2016 and December 31, 2015, we had $3.2 million and $8.8 million, respectively, in cash. Additionally, we have a revolving line of credit with a maximum limit of $12 million and a borrowing limit of 80% of the Company’s eligible receivables plus 50% of the Company’s eligible inventory from January 1 to May 31 and 60% from June 1 to December 31 of each year, of which $0 was outstanding at June 30, 2016 and December 31, 2015. Within this agreement, there are letters of credit with a limit of $1,750,000, of which $820,589 was outstanding at June 30, 2016 and $582,839 at December 31, 2015. The line of credit agreement expires on July 31, 2017.

Summary

Paradise, Inc.’s consolidated net sales for the six months ended June 30, 2016 totaled $5,066,217 compared to $5,170,884 for the similar reporting period of 2015, representing a decrease of $104,667. Cost of sales as a percentage of sales decreased by 10.4% as higher gross margins were received on these plastics parts. In addition, an increase in brined fruit production during the first six months of 2016 also impacted a decrease in the cost of sales as a greater amount of production was allocated over a relatively fixed level of factory overhead. Furthermore, as mentioned above, selling, general and administrative expenses decreased by $155,725 due to the retirement of three senior managers during 2015. The combination of this activity resulted in a net loss of $294,361 for the six months ended June 30, 2016 compared to a net loss of $702,695 for the six months ended June 30, 2015. However, as mentioned in all previous quarterly filings, interim results do not represent any meaningful trends or estimates. Only a full year’s accounting of sales and expenses will provide a complete picture of the consolidated operations of the Company.

13

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)

Critical Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make assessments, estimates and assumptions that affect the amounts reported in the consolidated financial statements. We evaluate the accounting policies and estimates used to prepare the consolidated financial statements on an ongoing basis. Critical accounting estimates are those that require management’s most difficult, complex, or subjective judgments and have the most potential to impact our financial position and operating results. For a detailed discussion of our critical accounting estimates, see our Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes to our critical accounting estimates during the six months ended June 30, 2016.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2018, which is the effective date for public companies. Early application is permitted as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends FASB ASU Topic 330, Inventory. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted. The Company does not anticipate the adoption of this ASU to have a material impact on the Company’s financial position or results of operations.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. The ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified balance sheet. The standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for any interim and annual financial statements that have not yet been issued. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)(ASU 2016-02). Under ASU No. 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU No. 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of these changes to the Company’s consolidated financial statements.

14

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)

Except as noted above, the Company’s management does not believe that recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

Item 3.	Quantitative and Qualitative Disclosure and Market Risk – N/A
Item 4.	Controls and Procedures

As of June 30, 2016, our Chief Executive Officer and Chief Financial Officer have evaluated the Company’s disclosure controls and procedures, and they have concluded that we maintain effective disclosure controls and procedures. There were no changes in our internal control over financial reporting during the six months ended June 30, 2016.

Disclosure controls and procedures mean the methods designed to ensure that information that the Company is required to disclose in the reports that it files with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods required. Our controls and procedures are designed to ensure that all information required to be disclosed is accumulated and communicated to our management to allow timely decisions regarding disclosure. Our controls and procedures are also designed to provide reasonable assurance of the reliability of our financial reporting and accurate recording of our financial transactions.

A control system, however well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. There are inherent limitations in all control systems, and no evaluation of controls can provide absolute assurance that all control gaps or instances of fraud have been detected. These inherent limitations include the realities that the judgments in decision-making can be faulty, and that simple errors or mistakes can occur.

15

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.	Mine Safety Disclosures – N/A
Item 5.	Other Information – N/A
Item 6.	Exhibits

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 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
EX-101.INS	XBRL Instance Document
EX-101.SCH	XBRL Taxonomy Extension Schema
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase
EX-101.LAB	XBRL Taxonomy Extension Label Linkbase
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase

16

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/ Randy S. Gordon	Date:    August 15, 2016
Randy S. Gordon
President and Chief Executive Officer
/s/ Jack M. Laskowitz	Date:    August 15, 2016
Jack M. Laskowitz
Chief Financial Officer and Treasurer

17

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Section 302

Certification of Chief Executive Officer

I, Randy S. Gordon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 15, 2016

/s/ Randy S. Gordon

Randy S. Gordon

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Section 302

Certification of Chief Financial Officer

I, Jack M. Laskowitz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 15, 2016

/s/ Jack M. Laskowitz

Jack M. Laskowitz

Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

Certification of CEO pursuant to

18 U.S.C. Section 1350 as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Paradise, Inc. on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Randy S. Gordon, as President and Chief Executive Officer of Paradise, Inc., certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.

/s/ Randy S. Gordon Date:  August 15, 2016

Randy S. Gordon

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of CFO pursuant to

18 U.S.C. Section 1350 as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Paradise, Inc. on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jack M. Laskowitz, as Chief Financial Officer of Paradise, Inc., certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.

/s/ Jack M. Laskowitz Date:  August 15, 2016

Jack M. Laskowitz

Chief Financial Officer and Treasurer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Registrant Name	PARADISE INC
Entity Central Index Key	0000076149
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	PARF
Entity Common Stock, Shares Outstanding		519,600

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
CURRENT ASSETS:
Cash	$ 3,226,323	$ 8,791,938	$ 3,356,979
Accounts Receivable, Less, Allowances of $0 (06/30/16), $1,066,314 (12/31/15) and $0 (06/30/15)	1,123,400	2,182,306	1,268,723
Inventories:
Raw Materials	8,354,595	5,114,439	7,547,182
Work in Process	455,950	785,711	249,005
Supplies	161,258	161,258	168,275
Finished Goods	4,772,853	2,118,261	4,516,887
Income Tax Receivable	429,222	76,290	734,241
Deferred Income Tax Asset	241,834	241,834	277,291
Prepaid Expenses and Other Current Assets	436,954	318,250	501,577
Total Current Assets	19,202,389	19,790,287	18,620,160
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,461,580 (06/30/16), $18,294,592 (12/31/15) and $18,088,884 (06/30/15)	3,928,048	3,924,480	3,763,656
Goodwill	413,280	413,280	413,280
Customer Base and Non-Compete Agreement	0	62,092	125,035
Other Assets	370,941	392,426	434,168
TOTAL ASSETS	23,914,658	24,582,565	23,356,299
CURRENT LIABILITIES:
Short Term Debt	820,589	582,839	1,155,588
Accounts Payable	815,410	615,928	781,612
Accrued Liabilities	106,173	843,851	206,073
Total Current Liabilities	1,742,172	2,042,618	2,143,273
DEFERRED INCOME TAX LIABILITY	315,125	315,125	203,667
Total Liabilities	2,057,297	2,357,743	2,346,940
STOCKHOLDERS’ EQUITY:
Common Stock: $0.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,600 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	20,666,859	21,034,320	19,818,857
Treasury Stock, at Cost, 63,494 Shares	(273,219)	(273,219)	(273,219)
Total Stockholders’ Equity	21,857,361	22,224,822	21,009,359
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 23,914,658	$ 24,582,565	$ 23,356,299

XML

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Allowance for Doubtful Accounts (in dollars)	$ 0	$ 1,066,314	$ 0
Accumulated depreciation (in dollars)	$ 18,461,580	$ 18,294,592	$ 18,088,884
Common stock, par value (in dollars per share)	$ 0.30	$ 0.30	$ 0.30
Common stock, shares authorized	2,000,000	2,000,000	2,000,000
Common stock, shares issued	583,094	583,094	583,094
Common stock, shares outstanding	519,600	519,600	519,600
Treasury stock, shares	63,494	63,494	63,494

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Sales	$ 2,103,261	$ 2,479,127	$ 5,066,217	$ 5,170,884
Costs and Expenses:
Cost of Goods Sold	1,525,357	2,023,133	3,865,396	4,483,306
Selling, General and Administrative Expense	742,566	898,586	1,675,921	1,831,646
Amortization Expense	29,843	35,972	66,203	71,943
Total Costs and Expenses	2,297,766	2,957,691	5,607,520	6,386,895
Loss from Operations	(194,505)	(478,564)	(541,303)	(1,216,011)
Other Income	48,959	26,539	50,702	44,852
Loss Before Income Taxes	(145,546)	(452,025)	(490,601)	(1,171,159)
Income Tax Benefit	58,218	180,810	196,240	468,464
Net Loss	$ (87,328)	$ (271,215)	$ (294,361)	$ (702,695)
Loss per Common Share (Basic and Diluted) (in dollars per share)	$ (0.17)	$ (0.52)	$ (0.57)	$ (1.35)
Dividend per Common Share (in dollars per share)	$ 0	$ 0	$ 0.15	$ 0.11

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (294,361)	$ (702,695)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation and Amortization	266,944	280,729
Decrease (Increase) in:
Accounts Receivable	1,058,906	1,777,946
Inventories	(5,564,987)	(4,996,440)
Prepaid Expenses and Other Current Assets	(118,704)	(194,626)
Income Tax Receivable	(352,932)	(655,964)
Other Assets	17,374	8,205
Increase (Decrease) in:
Accounts Payable	204,322	178,260
Accrued Expense	(737,678)	(613,385)
Net Cash Used in Operating Activities	(5,521,116)	(4,917,970)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment	(204,309)	(498,614)
Net Cash Used in Investing Activities	(204,309)	(498,614)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Short Term Debt	820,589	1,268,467
Payments on Short Term Debt	(582,839)	(225,758)
Dividends Paid	(77,940)	(57,156)
Net Cash Provided by Financing Activities	159,810	985,553
NET DECREASE IN CASH	(5,565,615)	(4,431,031)
CASH, AT BEGINNING OF PERIOD	8,791,938	7,788,010
CASH, AT END OF PERIOD	3,226,323	3,356,979
Cash paid for:
Income Taxes	$ 344,000	$ 187,500

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

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 accounting principles generally accepted in the United States of America 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 accounting principles generally accepted in the United States of America for annual financial statements.

The information furnished herein reflects all adjustments and accruals of a normal recurring nature that management believes are necessary to fairly state the operating results for the respective periods. The notes to the unaudited consolidated 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, 2015. The Company’s management believes that the disclosures are sufficient for interim financial reporting purposes.

Consumer demand for glace’ fruit product is traditionally strongest during the Thanksgiving and Christmas season. Almost 80% of glace’ fruit product sales are recorded during an eight to ten week period beginning in mid September. Therefore, the operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the current year.

Certain minor reclassifications have been made to the consolidated unaudited financial statements for the three and six months ended June 30, 2015 to conform to the classifications used for the three and six months ended June 30, 2016.

XML

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

NOTE 2 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2018, which is the effective date for public companies. Early application is permitted as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which amends FASB ASU Topic 330, Inventory. This ASU requires entities to measure inventory at the lower of cost or net realizable value and eliminates the option that currently exists for measuring inventory at market value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This ASU should be applied prospectively with earlier application permitted. The Company does not anticipate the adoption of this ASU to have a material impact on the Company’s financial position or results of operations.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. The ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified balance sheet. The standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for any interim and annual financial statements that have not yet been issued. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)(ASU 2016-02). Under ASU No. 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU No. 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact of these changes to the Company’s consolidated financial statements.

Except as noted above, the Company’s management does not believe that recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements.

XML

LOSS PER COMMON SHARE

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 3 LOSS PER COMMON SHARE

Basic and diluted loss per common share is based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600. There are no dilutive securities outstanding.

XML

BUSINESS SEGMENT DATA

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

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.

	Three months ended		Three months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	401,378	$	302,841
Molded Plastics:
Sales to Unaffiliated Customers		1,701,883		2,176,286
Net Sales	$	2,103,261	$	2,479,127

	Six months ended		Six months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	1,254,658	$	1,307,129
Molded Plastics:
Sales to Unaffiliated Customers		3,811,559		3,863,755
Net Sales	$	5,066,217	$	5,170,884

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 accounting principles generally accepted in the United States of America.

	June 30,		June 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	13,556,927	$	12,343,020
Molded Plastics		5,002,643		5,115,888
Identifiable Assets		18,559,570		17,458,908
General Corporate Assets		5,355,088		5,897,391
Total Assets	$	23,914,658	$	23,356,299

Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, prepaid expenses, other current assets, land and income tax assets.

XML

BUSINESS SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2016

Net Sales [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

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.

	Three months ended		Three months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	401,378	$	302,841
Molded Plastics:
Sales to Unaffiliated Customers		1,701,883		2,176,286
Net Sales	$	2,103,261	$	2,479,127

	Six months ended		Six months ended
	June 30,		June 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	1,254,658	$	1,307,129
Molded Plastics:
Sales to Unaffiliated Customers		3,811,559		3,863,755
Net Sales	$	5,066,217	$	5,170,884

Identifiable Assets [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	June 30,		June 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	13,556,927	$	12,343,020
Molded Plastics		5,002,643		5,115,888
Identifiable Assets		18,559,570		17,458,908
General Corporate Assets		5,355,088		5,897,391
Total Assets	$	23,914,658	$	23,356,299

XML

BASIS OF PRESENTATION (Details Textual)	6 Months Ended
	Jun. 30, 2016
Sales [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	80.00%

XML

LOSS PER COMMON SHARE (Details Textual)	6 Months Ended
	Jun. 30, 2016 shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted Average Number of Shares Outstanding, Basic and Diluted	519,600

XML

BUSINESS SEGMENT DATA (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	$ 2,103,261	$ 2,479,127	$ 5,066,217	$ 5,170,884
Fruit [Member]
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	401,378	302,841	1,254,658	1,307,129
Molded Plastics [Member]
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	$ 1,701,883	$ 2,176,286	$ 3,811,559	$ 3,863,755

XML

BUSINESS SEGMENT DATA (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Business Combination Segment Allocation [Line Items]
Total Assets	$ 23,914,658	$ 24,582,565	$ 23,356,299
Fruit [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	13,556,927		12,343,020
Molded Plastics [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	5,002,643		5,115,888
Identifiable Assets [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	18,559,570		17,458,908
General Corporate Assets [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	$ 5,355,088		$ 5,897,391