FORM 10-Q U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (X) Quarterly report pursuant to section 13 or 15(d) of the Securities Act of 1934. For the quarterly period ended June 30, 2008 or ( ) Transition report pursuant to section 13 or 15(d) of the Securities Act of 1934. Commission File No. 0-3026 PARADISE, INC. INCORPORATED IN FLORIDA I.R.S. EMPLOYER IDENTIFICATION NO. 59-1007583 1200 DR. MARTIN LUTHER KING, JR. BLVD., PLANT CITY, FLORIDA 33566 (813) 752-1155 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Indicate by checkmark 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 registration is a shell company (as defined in Rule 125-2 of the Exchange Act) Yes No X --- --- The number of shares outstanding of each of the issuer?s classes of common stock: Class Outstanding as of June 30, ----- -------------------------- 2008 2007 ---- ---- Common Stock $0.30 Par Value 519,350 Shares 519,350 Shares PARADISE, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008 INDEX ----- PART I. FINANCIAL INFORMATION PAGE ---- ITEM 1. FINANCIAL STATEMENTS 2-10 -------------------- ITEM 2. MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 11-13 ------------------------------------------------- ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK ? N/A 14 --------------------------------------- ITEM 4T. CONTROLS AND PROCEDURES 14 ----------------------- PART II. OTHER INFORMATION ITEMS 1 ? 6. 14-15 ------------ SIGNATURES 16 - ---------- 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 AS OF JUNE 30, DECEMBER 31, JUNE 30, 2008 2007 2007 (UNAUDITED) (UNAUDITED) (RESTATED) --------- ----------- --------- ASSETS - ------ CURRENT ASSETS: Cash and Unrestricted Demand Deposits $ 18,249 $ 3,193,207 $ 26,188 Accounts and Notes Receivable, Less Allowances of $0 (6/30/08), $0 (12/31/07) and $0 (6/31/07) 1,239,792 1,775,793 933,673 Inventories: Raw Materials 3,563,252 1,598,243 3,580,637 Work in Process 422,711 713,092 534,508 Finished Goods 11,503,537 5,266,671 8,420,041 Deferred Income Tax 682,769 470,929 616,058 Income Tax Refund Receivable 93,408 Prepaid Expenses and Other Current Assets 658,936 472,876 723,354 ---------- ---------- ---------- TOTAL CURRENT ASSETS 18,182,654 13,490,811 14,834,459 Property, Plant and Equipment, Less Accumulated Depreciation of $16,503,537 (6/30/08), $16,183,229 (12/31/07) and $15,847,261 (6/31/07) 5,494,105 5,520,252 5,782,457 Goodwill 413,280 413,280 413,280 Customer Base and Non-Compete Agreement 1,006,230 1,069,172 1,132,115 Deferred Charges and Other Assets 416,883 447,408 411,054 ---------- ---------- ---------- TOTAL ASSETS $ 25,513,152 $ 20,940,923 $ 22,573,365 ========== ========== ========== See Accompanying Notes to these Consolidated Financial Statements (Unaudited) 2 LIABILITIES AND STOCKHOLDERS? EQUITY - ------------------------------------ AS OF AS OF AS OF JUNE 30, DECEMBER 31, JUNE 30, 2008 2007 2007 (UNAUDITED) (UNAUDITED) (RESTATED) --------- ----------- --------- CURRENT LIABILITIES: Notes and Trade Acceptances Payable $ 4,469,775 $ 154,489 $ 1,362,126 Current Portion of Long-Term Debt 419,934 423,115 610,679 Accounts Payable 2,785,818 746,902 2,611,220 Accrued Liabilities 742,095 1,754,391 1,284,937 Income Taxes Payable 247,112 --------- ---------- --------- TOTAL CURRENT LIABILITIES 8,417,622 3,326,009 5,868,962 LONG-TERM DEBT, NET OF CURRENT PORTION 426,143 515,188 754,405 DEFERRED INCOME TAX LIABILITY 297,373 297,373 352,595 --------- ---------- --------- TOTAL LIABILITIES 9,141,138 4,138,570 6,975,962 --------- ---------- --------- STOCKHOLDERS? EQUITY: Common Stock: $.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,350 Shares Outstanding 174,928 174,928 174,928 Capital in Excess of Par Value 1,288,793 1,288,793 1,288,793 Retained Earnings 15,481,996 15,886,998 14,726,268 Accumulated Other Comprehensive Income (Loss) ( 296,784 ) ( 271,447 ) ( 315,667 ) Treasury Stock, at Cost, 63,744 Shares ( 276,919 ) ( 276,919 ) ( 276,919 ) ---------- ---------- ---------- Total Stockholders? Equity 16,372,014 16,802,353 15,597,403 ---------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 25,513,152 $ 20,940,923 $ 22,573,365 ========== ========== ========== See Accompanying Notes to these Consolidated Financial Statements (Unaudited) 3 PARADISE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) ----------------------------------- FOR THE THREE MONTHS ENDED -------------------------- JUNE 30, -------- 2008 2007 (RESTATED) ---- -------- Net Sales $ 2,330,520 $ 2,121,437 --------- --------- Costs and Expenses: Cost of Goods Sold (excluding Depreciation) 1,768,737 1,194,138 Selling, General and Administrative Expense 828,971 817,175 Depreciation and Amortization 194,396 220,810 Interest Expense 41,387 41,463 --------- --------- Total Costs and Expenses 2,833,491 2,273,586 --------- --------- Loss from Operations ( 502,971 ) ( 152,149 ) Other Income 6,652 31,712 --------- --------- Loss from Operations Before Provision for Income Taxes ( 496,319 ) ( 120,437 ) Provision for Income Taxes 211,840 45,163 --------- --------- Net Loss $( 284,479 ) $( 75,274 ) ========= ========= Loss per Common Share $( 0.55 ) $( 0.145 ) ==== ===== Dividends paid per Common Share $ 0.10 $ 0.10 ==== ==== See Accompanying Notes to these Consolidated Financial Statements (Unaudited) 4 PARADISE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) ----------------------------------- FOR THE SIX MONTHS ENDED ------------------------ JUNE 30, -------- 2008 2007 (RESTATED) ---- -------- Net Sales $ 5,226,886 $ 4,986,894 --------- --------- Costs and Expenses: Cost of Goods Sold (excluding Depreciation) 3,725,247 3,430,170 Selling, General and Administrative Expense 1,648,459 1,713,385 Depreciation and Amortization 391,473 448,033 Interest Expense 53,438 68,252 --------- --------- Total Costs and Expenses 5,818,617 5,659,840 --------- --------- Loss from Operations ( 591,731 ) ( 672,946 ) Other Income 26,824 73,285 --------- --------- Loss from Operations Before Provision for Income Taxes ( 564,907 ) ( 599,661 ) Provision for Income Taxes 211,840 224,873 --------- --------- Net Loss $( 353,067 ) $( 374,788 ) ========= ========= Loss per Common Share $( 0.68 ) $( 0.72 ) ==== ==== Dividends paid per Common Share $ 0.10 $ 0.10 ==== ==== 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, ------- 2008 2007 (RESTATED) ---- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss $( 353,067 ) $( 374,788 ) Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: Depreciation and Amortization 391,473 448,033 Decrease (Increase) in: Accounts Receivable 536,001 ( 291,999 ) Inventories ( 7,911,494 ) ( 6,101,784 ) Deferred Income Tax Asset ( 211,840 ) ( 224,873 ) Other Assets ( 188,732 ) ( 225,789 ) Income Tax Receivable ( 93,407 ) 63,748 Increase (Decrease) in: Accounts Payable 2,038,916 1,551,184 Accrued Expense ( 1,012,296 ) ( 993,258 ) Income Tax Payable ( 247,112 ) --------- --------- Net Cash Used in Operating Activities ( 7,051,558 ) ( 6,149,526 ) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Property and Equipment ( 294,525 ) ( 184,897 ) --------- --------- Net Cash Used in Investing Activities ( 294,525 ) ( 184,897 ) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Net Proceeds of Short-Term Debt 4,315,286 1,240,585 Principal Payments of Long-Term Debt ( 92,226 ) ( 99,424 ) Dividends Paid ( 51,935 ) ( 51,935 ) --------- --------- Net Cash Provided by Financing Activities 4,171,125 1,089,226 --------- --------- Net Decrease in Cash ( 3,174,958 ) ( 5,245,197 ) See Accompanying Notes to these Consolidated Financial Statements (Unaudited) 6 CASH AT BEGINNING OF PERIOD 3,193,207 5,271,385 --------- --------- CASH AT END OF PERIOD $ 18,249 $ 26,188 ========= ========= SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for: Interest $ 42,438 $ 37,702 Income Tax 340,520 299,837 --------- --------- Net Supplemental Cash Flows $ 382,958 $ 337,539 ========= ========= See Accompanying Notes to these Consolidated Financial Statements (Unaudited) 7 PARADISE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) -------------------------------------------- Note 1 Basis of Presentation - -------------------------------- The accompanying unaudited consolidated financial statements of Paradise, Inc. (the ?Company?) have been prepared by the Company in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for annual financial statements. The information furnished herein reflects all adjustments and accruals that management believes is necessary to fairly state the operating results for the respective periods. The notes to the financial statements should be read in conjunction with the notes to the consolidated financial statements contained in the Company?s Form 10-KSB for the year ended December 31, 2007. The Company?s management believes that the disclosures are sufficient for interim financial reporting purposes. Note 2 Net Loss per Share - -------------------------------------- Net loss per share, assuming no dilution, are based on the weighted average number of shares outstanding during the period: 519,350 (2008 and 2007). Note 3 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. 8 Six Months Year Ended Six Months Ended December 31, Ended June 30, 2008 2007 June 30, 2007 ------------- ---- ------------- Net Sales in Each Segment - ------------------------- Fruit: Sales to Unaffiliated Customers $ 1,187,480 $ 17,966,624 $ 1,127,417 Molded Plastics: Sales to Unaffiliated Customers 4,039,406 7,513,715 3,859,477 --------- ---------- --------- Net Sales $ 5,226,886 $ 25,480,339 $ 4,986,894 ========= ========== ========= For the six month period ended June 30, 2008 and 2007, sales of frozen strawberry products totaled $332,944 and $329,961 respectively. Sales of frozen strawberry products for the year ended December 31, 2007 totaled $337,111. The Company does not account for intersegment transfers as if the transfers were to third parties. The Company does not prepare operating profit or loss information on a segment basis for internal use, until the end of each year. Due to the seasonal nature of the fruit segment, management believes that it is not practical to prepare this information for interim reporting purposes. Therefore, reporting is not required by generally accepted accounting principles. Six Months Year Ended Six Months Ended December 31, Ended June 30, 2008 2007 June 30, 2007 ------------- ---- ------------- Identifiable Assets of Each Segment are Listed Below - --------------------------- Fruit $ 16,592,769 $ 9,814,759 $ 14,506,488 Molded Plastics 6,297,833 5,383,228 5,144,085 ---------- ---------- ---------- Identifiable Assets 22,890,602 15,197,987 19,650,573 General Corporate Assets 2,622,550 5,742,936 2,922,792 ---------- ---------- ---------- Total Assets $ 25,513,152 $ 20,940,923 $ 22,573,365 ========== ========== ========== Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, land and buildings, and investments. 9 Note 4 Retirement Plan - ------------------------ As discussed in the 10-KSB for the year ended December 31, 2007, the Company elected to freeze the pension plan benefit accruals effective November 30, 2006. On March 28, 2008, Paradise, Inc. received final approval from the IRS to terminate this pension plan. After receiving the final calculation for the unfunded pension liability on May 13, 2008 from Principal Financial Group, Plan Administrator, Paradise, Inc. transferred $452,066 to the Principal Financial Group on May 15, 2008. In anticipation of this unfunded pension liability, Paradise, Inc. accrued $446,727 in December, 2006. Note 5 Restatement - -------------------- In 2008, the company, in accordance with generally accepted accounting principles instituted the policy of recognizing income tax benefits on interim period operating losses. Accordingly, the Company has restated its results for June 30, 2007 to account for the increase in tax benefit associated with the interim loss for the six months ended June 30, 2007.The Company?s history of incurring losses during the first two quarters of its fiscal year and then generating profits during a ten week period beginning in September of each year justifies the recognition of income tax benefits on an interim basis. 10 Item 2. Management?s Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------ Forward-Looking Statements - -------------------------- This Quarterly Report on Form 10-Q contains ?forward-looking statements? within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact should be considered ?forward-looking statements? for the purpose of these provisions, including statements that include projections of, or expectations about, earnings, revenues or other financial items, statements about our plans and objectives for future operations, statements concerning proposed new products or services, statements regarding future economic conditions or performance, statements concerning our expectations regarding the attraction and retention of customers, statements about market risk and statements underlying any of the foregoing. In some cases, forward-looking statements can be identified by the use of such terminology as ?may?, ?will?, ?expects?, ?potential?, or ?continue?, or the negative thereof or other similar words. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Actual results and developments are likely to be different from, and may be materially different from, those expressed or implied by our forward?looking statements. Forward-looking statements are subject to inherent risks and uncertainties. Overview - -------- Paradise, Inc.?s main business segment, glace? fruit, a prime ingredient of fruitcakes and other holiday confections, represented 70.5% of total net sales during 2007. 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 from the eight to ten weeks beginning in mid September. Since the majority of the Company?s customers require delivery of glace? candied fruit products during this relatively short period of time, Paradise 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. 11 In addition, comparison of current quarterly results to the preceding quarter produces an incomplete picture on the Company?s performance due to year-to-year changes in production schedules, seasonal harvests and availability of raw materials, and in the timing of customer orders and shipments. Thus, the discussion of information presented within this report is focused on the review of the Company?s current year-to-date results as compared to the similar period last year. Paradise?s other business segment, Paradise Plastics, Inc., a wholly owned subsidiary of Paradise, Inc., produces custom molding products that is not subject to the seasonality of the glace? fruit business. This segment represents all injection molding and thermoforming operations, including the packaging for the Company?s fruit products. Only sales to unaffiliated customers are reported. The First Six Months - -------------------- Paradise, Inc.?s fruit segment net sales, which are highly seasonal, increased 5.3% for the first six months of 2008 compared to the similar reporting period of 2007. Due to the seasonality of the glace? fruit business as outlined above, net sales for the first six months of 2008 generated less than 7% of total 2007 fruit segment net sales. With such limited sales volume as of the date of this filing, no forecast or trend can be established from this information. Typically, during the first six months of the year the majority of fruit segment net sales are related to the shipment of bulk fruit sales to manufacturing bakeries and national supermarket customers. Also for the past several years this segment has produced various frozen strawberry products on behalf of a central Florida distributor. These two activities accounted for more than 90% of the company?s fruit net segment during the current reporting period. Paradise Plastics, Inc.?s a wholly owned subsidiary of Paradise, Inc. realized a 4.7% increase in net sales to unaffiliated customers, for the first six months of 2008 compared to the similar reporting period of 2007. This reverses the recent decline in net sales to customers with direct ties to the housing market. Due to the uncertainty surrounding the potential timing of a recovery in the housing market, management has focused on diversifying its plastics business. As a result of its renewed marketing strategies and through recent additions of plastic customers in the aerospace and food industries, management believes it has successfully taken steps to expand the Company?s business base. Consolidated cost of sales, as a percentage of net sales, increased 3.4% during the first six months of 2008 compared to the similar reporting period of 2007 as increases in energy and transportation cost were absorbed from suppliers related to the Company?s procurement of raw fruit materials. However, with more than 60% of the Company?s glace? fruit production cycle yet to be completed as of the date of this filing, it is too early to forecast what impact increasing or fluctuation energy prices will have on a full year?s cost of sales. 12 Selling, general & administrative expenses for the first six months of 2008 decreased $64,926 or 3.8% compared to the previous year?s reporting period. This decrease is primarily related to the reduction in professional and legal fees associated with the termination of the Company?s defined benefit pension plan. Please refer to Note 4 for additional disclosure related to the termination of the Company?s pension plan during the second quarter of 2008. Depreciation and amortization expenses decreased $56,560 the first six Months of 2008 compared to the similar period of 2007. This decrease is due to the following two factors; first, amortization expense related to a covenant not to compete agreement with the former owner of Mastercraft Products Corporation expired as of April 2007. The amount of the non- compete agreement totaled $123,000 or $3,416 per month and was amortized over a 36 month period. Secondly, fixed assets retirements for the current reporting period exceeded assets placed into service. Interest expense for the six months ended June 30, 2008 totaled $53,438 compared to $68,252 for the six months ended June 30, 2007. However, due to an increase in inventory at June 30, 2008 in excess of $2.9 million compared to the similar reporting period of 2007 the Company?s short- term borrowing expense will increase during the next quarter of operations. The increased level of inventory is related to the earlier receipt of various raw fruit products received from Paradise?s Inc. overseas and domestic suppliers along with the specific need to produce and store approximately an additional million pounds of fruit peels for shipment to a customer during the second half of 2008. Summary - ------- Paradise Inc.?s consolidated net sales increased 4.8% for the first six months of 2008 compared to the similar period of 2007 due to a 4.7% increase in plastics segment net sales to unaffiliated customers during this period. Rising energy cost resulted in a 3.4% increase in cost of sales for the first six months compared the same period of 2007. Overall, the Company?s Consolidated Net (Loss) totaled ($353,067) for the six months ended June 30, 2008 versus a Consolidated Net (Loss) of ($374,788) for the similar reporting period of 2007. In summary, with more than 90%of annual glace? fruit net sales yet to be realized as of the date of this filing, no reasonable projection of 2008?s operating performance can be measured from this information. 13 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE AND MARKET RISK ? N/A - ---------------------------------------------------------------------- ITEM 4T. CONTROLS AND PROCEDURES - ----------------------------------- As of June 30, 2008, our President and Chief Executive Officer and Chief Financial Officer evaluated the Company?s disclosure controls and procedures, and they concluded that we maintain effective disclosure controls and procedures. There were no changes in our internal control over financial reporting during the quarter ended June 30, 2008. 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. PART II. OTHER INFORMATION - --------------------------- Item 1. Legal Proceedings ? N/A Item 1A. Risk Factors ? N/A Item 2. Unregistered Sales of Equity Securities and Use of Proceeds ? N/A Item 3. Defaults Upon Senior Securities ? N/A Item 4. Submission of Matters to a Vote of Security Holders The annual meeting of the shareholders of Paradise, Inc. was held on May 27, 2008. The purpose of this meeting was to elect five directors to hold office until the next annual meeting of shareholders and to ratify the reappointment of Pender, Newkirk and Company, LLP as the Company?s independent certified public accountants for 2008. 14 The results of the election of Directors are as follows: Nominee Votes for Votes Withheld ------- --------- -------------- Melvin S. Gordon 445,998 42,941 Randy S. Gordon 436,440 52,489 Tracy W. Schulis 436,440 52,489 Mark H. Gordon 436,440 52,489 Eugene L. Weiner 436,440 52,489 The results of the ratification of Pender, Newkirk & Company, LLP as the Company?s independent accountants for 2008 are as follows: For Against Abstain --- ------- ------- 475,846 13,083 -0- Item 5. Other Information ? N/A Item 6. Exhibits and Reports on Form 8-K (a) 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 the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (b) Reports on Form 8-K. None. 15 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PARADISE, INC. A Florida Corporation /s/ Melvin S. Gordon Date: August 14, 2008 ----------------------------- Melvin S. Gordon Chief Executive Officer and Chairman /s/ Jack M. Laskowitz Date: August 14, 2008 ------------------------------ Jack M. Laskowitz Chief Financial Officer and Treasurer 16 Exhibit 31.1 Sarbanes-Oxley Section 302 Certification of Chief Executive Officer - ---------------------------------------- I, Melvin 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 small business issuer as of, and for, the periods presented in this quarterly report; 4. The small business issuer?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 small business issuer 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 small business issuer, 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 small business issuer?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 small business issuer?s internal control over financial reporting that occurred during the small business issuer?s most recent fiscal quarter (the small business issuer?s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer?s internal control over financial reporting; and 5. The small business issuer?s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer?s auditors and the audit committee of the small business issuer?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 small business issuer?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 small business issuer?s internal control over financial reporting. Date: August 14, 2008 /s/ Melvin S. Gordon ------------------------------- Melvin S. Gordon Chief Executive Officer and Chairman 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 small business issuer as of, and for, the periods presented in this quarterly report; 4. The small business issuer?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 small business issuer 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 small business issuer, 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 small business issuer?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 small business issuer?s internal control over financial reporting that occurred during the small business issuer?s most recent fiscal quarter (the small business issuer?s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer?s internal control over financial reporting; and 5. The small business issuer?s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer?s auditors and the audit committee of the small business issuer?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 small business issuer?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 small business issuer?s internal control over financial reporting. Date: August 14, 2008 /s/ Jack M. Laskowitz ----------------------------------- Jack M. Laskowitz Chief Financial Officer and Treasurer Exhibit 32.1 Certification of CEO and 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, 2008 as filed with the Securities and Exchange Commission on the date hereof (the ?Report?), I, Melvin 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 Section13(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/ Melvin S. Gordon Date: August 14, 2008 ----------------------------- Melvin S. Gordon Chief Executive Officer and Chairman Exhibit 32.2 Certification of CEO and 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, 2008 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 14, 2008 ----------------------------- Jack M. Laskowitz Chief Financial Officer and Treasurer