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 September 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 November 14, 2016 was 519,600 shares.

PARADISE, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2016

INDEX

		PAGE
PART I.	FINANCIAL INFORMATION
	ITEM 1.
	CONSOLIDATED BALANCE SHEETS:
	Assets
	As of September 30, 2016 (Unaudited), December 31, 2015 and September 30, 2015 (Unaudited)	2
	Liabilities and Stockholders’ Equity
	As of September 30, 2016 (Unaudited), December 31, 2015 and September 30, 2015 (Unaudited)	3
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED):
	For the three-month periods ended September 30, 2016 and 2015	4
	For the nine-month periods ended September 30, 2016 and 2015	5
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED):
	For the nine-month periods ended September 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 – 14
	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
	SEPTEMBER 30,		AS OF		SEPTEMBER 30,
	2016		DECEMBER 31,		2015
	(UNAUDITED)		2015		(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash	$	1,138,700	$	8,791,938	$	1,329,580
Accounts Receivable,
Less, Allowances of $0 (09/30/16),
$1,066,314 (12/31/15) and $0 (09/30/15)		6,378,274		2,182,306		6,678,038
Inventories:
Raw Materials		7,605,280		5,114,439		6,426,620
Work in Process		333,884		785,711		487,769
Supplies		161,258		161,258		168,275
Finished Goods		3,897,230		2,118,261		4,352,239
Income Tax Asset		-		-		265,829
Deferred Income Tax Asset		241,834		241,834		277,291
Prepaid Expenses and Other Current Assets		455,684		318,250		437,130
Total Current Assets		20,212,144		19,713,997		20,422,771
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,557,477 (09/30/16), $18,294,592 (12/31/15) and $18,192,229 (09/30/15)		3,919,133		3,924,480		3,753,580
Goodwill		413,280		413,280		413,280
Customer Base and Non-Compete Agreement		-		62,092		93,563
Other Assets		381,149		392,426		471,978
TOTAL ASSETS	$	24,925,706	$	24,506,275	$	25,155,172

See Accompanying Notes to these Consolidated Financial Statements (Unaudited)

2

	AS OF						AS OF
	SEPTEMBER 30,			AS OF			SEPTEMBER 30,
	2016			DECEMBER 31,			2015
	(UNAUDITED)			2015			(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short Term Debt	$	291,838		$	582,839		$	1,385,769
Accounts Payable		712,962			615,928			1,234,036
Accrued Liabilities		607,603			656,543			590,250
Income Taxes Payable		193,185			111,018			-
Total Current Liabilities		1,805,588			1,966,328			3,210,055
DEFERRED INCOME TAX LIABILITY		315,125			315,125			203,667
Total Liabilities		2,120,713			2,281,453			3,413,722
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		21,614,491			21,034,320			20,550,948
Treasury Stock, at Cost, 63,494 Shares		(273,219	)		(273,219	)		(273,219	)
Total Stockholders’ Equity		22,804,993			22,224,822			21,741,450
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	24,925,706		$	24,506,275		$	25,155,172

3

PARADISE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	FOR THE THREE MONTHS ENDED
	SEPTEMBER 30,
	2016			2015
Net Sales	$	8,884,152		$	8,861,873
Costs and Expenses:
Cost of Goods Sold		6,173,066			6,453,619
Selling, General and Administrative Expense		1,098,845			1,147,469
Amortization Expense		2,000			32,471
Total Costs and Expenses		7,273,911			7,633,559
Income from Operations		1,610,241			1,228,314
Other Expenses		(30,856	)		(24,967	)
Income from Operations Before Income Taxes		1,579,385			1,203,347
Provision for Income Taxes		631,753			471,256
Net Income	$	947,632		$	732,091
Income per Common Share (Basic and Diluted)	$	1.82		$	1.41
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 NINE MONTHS ENDED
	SEPTEMBER 30,
	2016		2015
Net Sales	$	13,950,369	$	14,032,757
Costs and Expenses:
Cost of Goods Sold		10,038,462		10,936,925
Selling, General and Administrative Expense		2,774,766		2,979,115
Amortization Expense		68,203		104,414
Total Costs and Expenses		12,881,431		14,020,454
Income from Operations		1,068,938		12,303
Other Income		19,846		19,885
Income from Operations Before Income Taxes		1,088,784		32,188
Provision for Income Taxes		435,513		2,792
Net Income	$	653,271	$	29,396
Income per Common Share (Basic and Diluted)	$	1.26	$	0.06
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 NINE MONTHS ENDED
	SEPTEMBER 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	653,271		$	29,396
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:
Depreciation and Amortization		367,329			416,548
(Increase) Decrease in:
Accounts Receivable		(4,195,968	)		(3,631,369	)
Inventories		(3,817,983	)		(3,949,994	)
Prepaid Expenses		(137,434	)		(130,179	)
Other Assets		5,166			(30,605	)
Income Tax Asset		-			(265,958	)
Increase (Decrease) in:
Accounts Payable		101,874			630,684
Accrued Liabilities		33,227			(150,802	)
Net Cash Used in Operating Activities		(6,990,518	)		(7,082,279	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment		(293,779	)		(591,885	)
Net Cash Used in Investing Activities		(293,779	)		(591,885	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Short Term Debt		(863,527	)		(149,112	)
Proceeds from Short Term Debt		572,526			1,422,002
Dividends Paid		(77,940	)		(57,156	)
Net Cash Provided by (Used in) Financing Activities		(368,941	)		1,215,734
NET DECREASE IN CASH		(7,653,238	)		(6,458,430	)
CASH, AT BEGINNING OF PERIOD		8,791,938			7,788,010
CASH, AT END OF PERIOD	$	1,138,700		$	1,329,580
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for:
Income Taxes	$	353,346		$	268,750

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 nine months ended September 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 nine months ended September 30, 2015 to conform to the classifications used for the three and nine months ended September 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 does not expect the adoption of this standard to have a material impact on 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 INCOME PER COMMON SHARE

Basic and diluted income 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
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,389,005	$	7,102,818
Molded Plastics:
Sales to Unaffiliated Customers		1,495,147		1,759,055
Net Sales	$	8,884,152	$	8,861,873
	Nine months ended		Nine months ended
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	8,643,663	$	8,409,947
Molded Plastics:
Sales to Unaffiliated Customers		5,306,706		5,622,810
Net Sales	$	13,950,369	$	14,032,757

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.

	September 30,		September 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	17,678,419	$	16,957,811
Molded Plastics		4,399,853		4,887,629
Identifiable Assets		22,078,272		21,845,440
General Corporate Assets		2,847,434		3,309,732
Total Assets	$	24,925,706	$	25,155,172

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 for the previous year of 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 for a period of eight to ten weeks beginning in mid September.

Since the majority of the Company’s customers require delivery of glace’ 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, may result 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. produces 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 First Nine Months

Paradise, Inc.’s fruit segment net sales for the first nine months of 2016 increased 2.8% to $8,643,663 compared to $8,409,947 for the similar nine month reporting period of 2015. This increase is primarily due to timing differences in the receipt of customers’ orders and the corresponding shipping dates for delivery of the Company’s retail glace’ fruit products. Changes in dates of opening orders from customers between interim reporting periods will have a direct impact on net revenue comparisons. Paradise, Inc. recognizes net sales generally upon receipt of its products by its customers. Thus, as merchandise is shipped and received by its customers during different interim reporting periods, timing differences in reported net revenue will occur. Management has consistently disclosed that interim filings are not reliable financial indicators of year-end performance. Only after a full year’s selling season is completed which takes into consideration factors such as the timing of initial orders, product placement on supermarket shelves and consumer demand for holiday fruitcake ingredients, will the Company have any ability to determine whether its sales and marketing efforts for the current year were successful.

Paradise Plastics, Inc., a wholly owned company of Paradise, Inc. which accounted for 38% of total net sales to unaffiliated customers decreased by 5.6% to net sales of $5,306,706 for the nine months ended September 30, 2016 compared to $5,622,810 for the similar reporting period of 2015. While sales to customers of vacuum forming plastics parts within the housing market increased by 5% for the current reporting period over the similar reporting period of 2015, it was not enough net revenue to offset a recent decline in sales related to a long term customer within the Company’s thermoforming operations. As mentioned in previous filings, Paradise Plastics, Inc. produces various types of custom molded plastics for its customers which are then assembled into finished products by its customers. Thus, changes in demand for these finish products by the end user will have a direct impact on our sales. As of the date of filing, management is not able to predict whether the recent decline in sales will continue.

Consolidated cost of sales as a percentage of overall net sales decreased 6.0% for the first nine months of 2016 compared to the similar reporting period of 2015. This is less than the 10.4% decrease in cost of sales reported during the June 30, 2016 filing, however, this decrease is still due to the following two reasons. First, a greater percentage of vacuum forming plastics parts ordered and shipped during the first nine months of 2016 vs. 2015 were of higher gross margins. Secondly, the fruit segment, after not commencing brining operations of orange peel during the first nine months of 2015, produced 2.9 million lbs. of brined orange peel inventory during the first nine months of 2016. 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 orange peel production during the first nine months 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 September 30, 2016 compared to September 30, 2015. However, it is important to understand that until a full year’s production cycle is completed, the Company will not be able to determine to what extent the additional production mentioned above will have on cost of sales as it relates to overall sales.

Inventory as of September 30, 2016 totaled $11,997,652 compared to $11,434,903 as of September 30, 2015 representing an increase of $562,749. This represents an increase of 4.9% and is attributable to the increased orange peel production discussed in the cost of sales section above.

Selling, general & administrative expenses for the first nine months of 2016 totaled $2,774,766 compared to $2,979,115 representing a decrease of $204,349 or 6.9% 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)

The First Nine Months (Continued)

Paradise, Inc. finances ongoing operations primarily with cash provided by our operating activities which are seasonal in nature. Our principal sources of liquidity are our cash flows provided by operating activities, our existing cash, and a line of credit facility. At September 30, 2016 and December 31, 2015, we had $1,138,700 and $8,791,938, 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 up to 60% of the Company’s eligible inventory, of which $0 was outstanding at September 30, 2016 and $0 at December 31, 2015. Within this agreement, there are letters of credit with a limit of $1,750,000, of which $291,838 was outstanding at September 30, 2016 and $582,839 December 31, 2015. The line of credit agreement expires in July, 2017. Net cash decreased by $7,653,238 for the nine months ended September 30, 2016 compared to $6,458,430 for the nine months ended September 30, 2015. The primary reason for this decrease in cash for the first nine months of 2016 compared to 2015 was the earlier repayment of short-term debt of just over $1.0 million as of September 30, 2016.

Summary

Paradise Inc.’s consolidated net sales decreased slightly to $13,950,369 for the first nine months of 2016 compared to $14,032,757 for the first nine months of 2015 as an increase in the earlier shipment of the Company’s holiday segment fruit segments products was offset by a downturn in thermoforming plastics parts during the third quarter of 2016. However, as mentioned and disclosed in all previous interim filings, due to the highly seasonal nature of the Company’s primary revenue source, glace’ fruit sales, no meaningful financial analysis can be developed from Paradise, Inc.’s interim reporting results. Only a full year’s accounting of revenue and expenses will provide the necessary information to determine the Company’s overall financial performance.

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 nine months ended September 30, 2016.

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)

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 does not expect the adoption of this standard to have a material impact on 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.

14

PARADISE, INC. COMMISSION FILE NO. 0-3026

PART I. FINANCIAL INFORMATION

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

Item 4. Controls and Procedures

As of September 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 significant changes in our internal control over financial reporting during the nine months ended September 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:	November 14, 2016
Randy S. Gordon
President and Chief Executive Officer
/s/ Jack M. Laskowitz	Date:	November 14, 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: November 14, 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:  November 14, 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 September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Randy S. Gordon, as 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:  November 14, 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 September 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:  November 14, 2016
Jack M. Laskowitz
Chief Financial Officer and Treasurer

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
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 ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
CURRENT ASSETS:
Cash	$ 1,138,700	$ 8,791,938	$ 1,329,580
Accounts Receivable, Less, Allowances of $0 (09/30/16), $1,066,314 (12/31/15) and $0 (09/30/15)	6,378,274	2,182,306	6,678,038
Inventories:
Raw Materials	7,605,280	5,114,439	6,426,620
Work in Process	333,884	785,711	487,769
Supplies	161,258	161,258	168,275
Finished Goods	3,897,230	2,118,261	4,352,239
Income Tax Asset	0	0	265,829
Deferred Income Tax Asset	241,834	241,834	277,291
Prepaid Expenses and Other Current Assets	455,684	318,250	437,130
Total Current Assets	20,212,144	19,713,997	20,422,771
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,557,477 (09/30/16), $18,294,592 (12/31/15) and $18,192,229 (09/30/15)	3,919,133	3,924,480	3,753,580
Goodwill	413,280	413,280	413,280
Customer Base and Non-Compete Agreement	0	62,092	93,563
Other Assets	381,149	392,426	471,978
TOTAL ASSETS	24,925,706	24,506,275	25,155,172
CURRENT LIABILITIES:
Short Term Debt	291,838	582,839	1,385,769
Accounts Payable	712,962	615,928	1,234,036
Accrued Liabilities	607,603	656,543	590,250
Income Taxes Payable	193,185	111,018	0
Total Current Liabilities	1,805,588	1,966,328	3,210,055
DEFERRED INCOME TAX LIABILITY	315,125	315,125	203,667
Total Liabilities	2,120,713	2,281,453	3,413,722
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	21,614,491	21,034,320	20,550,948
Treasury Stock, at Cost, 63,494 Shares	(273,219)	(273,219)	(273,219)
Total Stockholders’ Equity	22,804,993	22,224,822	21,741,450
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 24,925,706	$ 24,506,275	$ 25,155,172

XML

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Allowance for Doubtful Accounts (in dollars)	$ 0	$ 1,066,314	$ 0
Accumulated depreciation (in dollars)	$ 18,557,477	$ 18,294,592	$ 18,192,229
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Sales	$ 8,884,152	$ 8,861,873	$ 13,950,369	$ 14,032,757
Costs and Expenses:
Cost of Goods Sold	6,173,066	6,453,619	10,038,462	10,936,925
Selling, General and Administrative Expense	1,098,845	1,147,469	2,774,766	2,979,115
Amortization Expense	2,000	32,471	68,203	104,414
Total Costs and Expenses	7,273,911	7,633,559	12,881,431	14,020,454
Income from Operations	1,610,241	1,228,314	1,068,938	12,303
Other income (expenses)	(30,856)	(24,967)	19,846	19,885
Income from Operations Before Income Taxes	1,579,385	1,203,347	1,088,784	32,188
Provision for Income Taxes	631,753	471,256	435,513	2,792
Net Income	$ 947,632	$ 732,091	$ 653,271	$ 29,396
Loss per Common Share (Basic and Diluted) (in dollars per share)	$ 1.82	$ 1.41	$ 1.26	$ 0.06
Dividend per Common Share (in dollars per share)	$ 0.00	$ 0.00	$ 0.15	$ 0.11

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 653,271	$ 29,396
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:
Depreciation and Amortization	367,329	416,548
(Increase) Decrease in:
Accounts Receivable	(4,195,968)	(3,631,369)
Inventories	(3,817,983)	(3,949,994)
Prepaid Expenses	(137,434)	(130,179)
Other Assets	5,166	(30,605)
Income Tax Asset	0	(265,958)
Increase (Decrease) in:
Accounts Payable	101,874	630,684
Accrued Liabilities	33,227	(150,802)
Net Cash Used in Operating Activities	(6,990,518)	(7,082,279)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment	(293,779)	(591,885)
Net Cash Used in Investing Activities	(293,779)	(591,885)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Short Term Debt	(863,527)	(149,112)
Proceeds from Short Term Debt	572,526	1,422,002
Dividends Paid	(77,940)	(57,156)
Net Cash Provided by (Used in) Financing Activities	(368,941)	1,215,734
NET DECREASE IN CASH	(7,653,238)	(6,458,430)
CASH, AT BEGINNING OF PERIOD	8,791,938	7,788,010
CASH, AT END OF PERIOD	1,138,700	1,329,580
Cash paid for:
Income Taxes	$ 353,346	$ 268,750

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 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 nine months ended September 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 nine months ended September 30, 2015 to conform to the classifications used for the three and nine months ended September 30, 2016.

XML

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 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 does not expect the adoption of this standard to have a material impact on 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

INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 3 INCOME PER COMMON SHARE

Basic and diluted income 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

9 Months Ended

Sep. 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
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,389,005	$	7,102,818
Molded Plastics:
Sales to Unaffiliated Customers		1,495,147		1,759,055
Net Sales	$	8,884,152	$	8,861,873

	Nine months ended		Nine months ended
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	8,643,663	$	8,409,947
Molded Plastics:
Sales to Unaffiliated Customers		5,306,706		5,622,810
Net Sales	$	13,950,369	$	14,032,757

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.

	September 30,		September 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	17,678,419	$	16,957,811
Molded Plastics		4,399,853		4,887,629
Identifiable Assets		22,078,272		21,845,440
General Corporate Assets		2,847,434		3,309,732
Total Assets	$	24,925,706	$	25,155,172

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)

9 Months Ended

Sep. 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
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	7,389,005	$	7,102,818
Molded Plastics:
Sales to Unaffiliated Customers		1,495,147		1,759,055
Net Sales	$	8,884,152	$	8,861,873

	Nine months ended		Nine months ended
	September 30,		September 30,
	2016		2015
Net Sales in Each Segment
Fruit:
Sales to Unaffiliated Customers	$	8,643,663	$	8,409,947
Molded Plastics:
Sales to Unaffiliated Customers		5,306,706		5,622,810
Net Sales	$	13,950,369	$	14,032,757

Identifiable Assets [Member]

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

	September 30,		September 30,
	2016		2015
Identifiable Assets of Each Segment are Listed Below:
Fruit	$	17,678,419	$	16,957,811
Molded Plastics		4,399,853		4,887,629
Identifiable Assets		22,078,272		21,845,440
General Corporate Assets		2,847,434		3,309,732
Total Assets	$	24,925,706	$	25,155,172

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BASIS OF PRESENTATION (Details Textual)	9 Months Ended
	Sep. 30, 2016
Sales [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	80.00%

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INCOME PER COMMON SHARE (Details Textual)	9 Months Ended
	Sep. 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

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BUSINESS SEGMENT DATA (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	$ 8,884,152	$ 8,861,873	$ 13,950,369	$ 14,032,757
Fruit [Member]
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	7,389,005	7,102,818	8,643,663	8,409,947
Molded Plastics [Member]
Business Combination Segment Allocation [Line Items]
Sales to Unaffiliated Customers	$ 1,495,147	$ 1,759,055	$ 5,306,706	$ 5,622,810

XML

BUSINESS SEGMENT DATA (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Business Combination Segment Allocation [Line Items]
Total Assets	$ 24,925,706	$ 24,506,275	$ 25,155,172
Fruit [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	17,678,419		16,957,811
Molded Plastics [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	4,399,853		4,887,629
Identifiable Assets [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	22,078,272		21,845,440
General Corporate Assets [Member]
Business Combination Segment Allocation [Line Items]
Total Assets	$ 2,847,434		$ 3,309,732