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<SEC-DOCUMENT>0000825324-06-000002.txt : 20060213
<SEC-HEADER>0000825324-06-000002.hdr.sgml : 20060213
<ACCEPTANCE-DATETIME>20060213123949
ACCESSION NUMBER:		0000825324-06-000002
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060213
DATE AS OF CHANGE:		20060213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		06601958

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>qsbquarter1.htm
<DESCRIPTION>1ST QUARTER REPORT ON FORM 10QSB
<TEXT>
<HTML>
<HEAD>
<META ="Content-Type" CONTENT="text/html; charset=windows-1252">
<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>UNITED STATES</TITLE>
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<BODY LINK="#0000ff" VLINK="#800080">

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">UNITED STATES</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Washington, D.C. 20549</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">FORM 10-QSB</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">THE SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">For quarterly period ended: <U>December 31, 2005</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Commission file number: <U>0-18590</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC.</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(Exact name of registrant as specified in its charter)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">NEVADA</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(State or other jurisdiction of incorporation or organization)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">84-1133368</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">601 CORPORATE CIRCLE, GOLDEN, CO 80401</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(Address of principal executive offices)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(303) 384-1400 </U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(Issuer's telephone number)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">(Former name, former address and former fiscal year, since last report.)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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.</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">[X] Yes [ ] No</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">APPLICABLE ONLY TO CORPORATE ISSUERS </B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Total number of shares of stock outstanding at February 13, 2006.</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2,512,637 SHARES OF COMMON STOCK, .001 PAR VALUE</P>
<P ALIGN="CENTER">1,240,000 SHARES OF PREFERRED STOCK, .001 VALUE</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Transitional Small Business Disclosure Format (check one): [ ] Yes [X ] No</FONT></TD>
</TR>
</TABLE>

<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&nbsp;</P>
<P>&nbsp;</P>
<P>Form 10-QSB</P>
<P>Quarter Ended December 31, 2005</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=625>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<B><U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>INDEX</B></U></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<B><U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">PAGE</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>PART I - FINANCIAL INFORMATION</B></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 1.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Financial Statements</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Consolidated Balance Sheets -</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3 - 4</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>December 31, 2005 and September 30, 2005</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Consolidated Statements of Operations - </FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>For the three months ended December 31, 2005 and 2004</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Consolidated Statements of Cash Flow -</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">6</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>For the three months ended December 31, 2005 and 2004</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Notes to Financial Statements</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">7</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 2.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Management's Discussion and Analysis</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">8 - 13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 3.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Quantitive and Qualitive Disclosures About Market Risk</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 4.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Controls and Procedures</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>PART II - OTHER INFORMATION</B></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 1.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Legal Proceedings</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 2.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Changes in Securities and Use of Proceeds</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 3.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Defaults Upon Senior Securities</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 4.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Submission of Matters to a Vote of Security Holders</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 5.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Other Information.</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Item 6.</FONT></TD>
<TD WIDTH="68%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Exhibits and Reports on Form 8-K</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">14</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">SIGNATURES</B></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">14</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">CERTIFICATIONS</B></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">Exhibit 31.1</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">Exhibit 32.1</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2</P>
<B><P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS</P>
<P ALIGN="CENTER">ASSETS</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=624>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="RIGHT">December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="RIGHT">September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="RIGHT">2005</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="RIGHT">2005</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">CURRENT ASSETS:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Cash and cash equivalents</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$2,479,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$1,763,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Available-for-sale investments</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,900,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Receivables and other</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">134,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">192,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Inventories</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">162,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">132,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Notes receivable</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">83,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">68,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Total current assets</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,858,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4,055,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">PROPERTY AND EQUIPMENT, at cost:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Land and building</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4,179,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3,696,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Leasehold improvements</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,958,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,826,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Fixtures and equipment</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">6,368,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5,729,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13,505,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">12,251,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Less accumulated depreciation and amortization</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(7,629,000)</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(7,412,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5,876,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4,839,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>OTHER ASSETS:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Notes receivable, net of current portion</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">501,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">486,000</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Deposits and other assets</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">55,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">51,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">556,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">537,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">TOTAL ASSETS</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$9,290,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$9,431,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
</TABLE>

<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">LIABILITIES AND STOCKHOLDERS' EQUITY</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=624>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">CURRENT LIABILITIES:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Current maturities of long-term debt</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 219,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 217,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Accounts payable</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">570,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">363,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Deferred income</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">60,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">48,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Other accrued liabilities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">748,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">705,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Total current liabilities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,597,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,333,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>LONG-TERM LIABILITIES:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Debt, net of current portion</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">466,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">522,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Deferred liabilities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">960,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">957,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Total long-term liabilities</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,426,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,479,000</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>MINORITY INTERESTS IN PARTNERSHIPS</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">594,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">620,000</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="CENTER">See accompanying notes to the financial statements</P>
<P ALIGN="CENTER">3</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
</FONT><B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS (Continued)</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=630>
<TR><TD WIDTH="57%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>December 31,</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">September 30,</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</U></FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>STOCKHOLDERS' EQUITY:</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Convertible preferred stock, $.01 par value;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;5,000,000 shares authorized, 1,240,000 issued</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;and outstanding as of September 30, 2005 and</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;December 31, 2005</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">12,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">12,000</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Common stock, $.001 par value; 50,000,000 shares</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;authorized, 2,503,255 shares issued and</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;outstanding as of December 31, 2005 and</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;2,497,647 shares issued and outstanding as</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;of September 30, 2005</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,000</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Capital contributed in excess of par value</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">17,050,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">17,053,000</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Accumulated deficit</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(11,392,000)</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(11,068,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Total stockholders' equity</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5,673,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5,999,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$9,290,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$9,431,000</U></FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="CENTER">See accompanying notes to the financial statements</P>
<P ALIGN="CENTER">4</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF OPERATIONS</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=600>
<TR><TD WIDTH="64%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="36%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">For the Three Months Ended</P>
<P ALIGN="CENTER">December 31,</FONT></TD>
</TR>
</TABLE>


<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=619>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2004</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>NET REVENUES:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Restaurant sales, net</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$4,252,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$3,716,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Franchise revenues</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">110,000</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">102,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Total net revenues</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4,362,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3,818,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>RESTAURANT OPERATING COSTS:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Food and packaging costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,367,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,293,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Payroll and other employee benefit costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,459,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,226,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Occupancy and other operating costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">852,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">672,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Accretion of deferred rent</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">9,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">9,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Opening costs </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">41,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Depreciation and amortization</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">215,000</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">193,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Total restaurant operating costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3,943,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">3,393,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;General and administrative costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">445,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">346,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Advertising costs</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">266,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">281,000</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;(Gain) loss on sale of restaurant building</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(30,000)</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(5,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>LOSS FROM OPERATIONS</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(262,000)</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(197,000)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>OTHER INCOME AND (EXPENSES)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Minority income (expense), net</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(32,000)</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(13,000)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Interest, net</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">26,000</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(1,000)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Other, net</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(54,000)</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(23,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Total other income and (expenses)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(60,000)</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(37,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>NET LOSS</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($322,000)</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($234,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>BASIC AND DILUTED LOSS PER COMMON SHARE</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.13)</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.10)</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>WEIGHTED AVERAGE COMMON SHARES AND</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">EQUIVALENTS USED IN PER SHARE CALCULATION:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;BASIC AND DILUTED</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,501,774</U></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">2,353,207</U></FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="CENTER">See accompanying notes to the financial statements</P>
<P ALIGN="CENTER">5</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
</FONT><B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF CASH FLOWS</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=660>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">For the Three Months Ended</P>
<P ALIGN="CENTER">December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<DL>
<DT>&nbsp;</DT>
</DL></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2004</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>CASH FLOWS FROM OPERATING ACTIVITIES:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Net loss</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($322,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($234,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Adjustments to reconcile net loss to net cash</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9; provided by (used in) operating activities:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Depreciation and amortization</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">217,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">197,000</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Accretion of deferred rent</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">9,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">9,000</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Minority interest</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">32,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">13,000</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Recognition of deferred (gain) on sale of restaurant</P>
<P>&#9;building</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(6,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(5,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;(Gain) on sale of restaurant property</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(24,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;(Increase) decrease in:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Receivables and other</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">58,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(75,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Inventories</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(30,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(11,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Deposits and other</P>
<P>&#9;(Decrease) increase in:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(5,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(35,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Accounts payable</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">55,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(148,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Accrued liabilities and deferred income</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">55,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">8,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Net cash provided by (used in) operating activities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">39,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(281,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>CASH FLOWS USED IN INVESTING ACTIVITIES</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Payments for the purchase of property and equipment</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(1,078,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(120,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Sale of investments</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1,900,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Loans made to franchisees and to others</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(74,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Payments received on loans to franchisees and to others</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">43,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">11,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Net cash provided by (used in) investing activities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">791,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(109,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>CASH FLOWS FROM FINANCING ACTIVITIES:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Principal payments on notes payable, capital leases, and</P>
<P>&#9; long-term debt</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(54,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(51,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Repayments on line of credit</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(305,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Preferred stock offering expenses</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(14,000)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Proceeds from exercise of options</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">12,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">26,000</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Distributions paid to minority interests in partnerships</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(58,000)</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(39,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Net cash used in investing activities</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(114,000)</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(369,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">716,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($759,000)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>CASH AND CASH EQUIVALENTS, beginning of period</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$1,763,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$1,796,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>CASH AND CASH EQUIVALENTS, end of period</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$2,479,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$1,037,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Cash paid for interest</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 14,000</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 17,000</U></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&#9;Cash paid for income taxes</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 0</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ 0</U></FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=1><P ALIGN="CENTER">See accompanying notes to the financial statements</P>
<P ALIGN="CENTER">6</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
</FONT><B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</P>
<P ALIGN="CENTER">(Unaudited)</P>
</B><P>1.&#9;UNAUDITED FINANCIAL STATEMENTS</P>
<P ALIGN="JUSTIFY">In the opinion of management, the accompanying unaudited consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position of the Company as of December 31, 2005, the results of its operations and its cash flows for the three month period ended December 31, 2005. Operating results for the three month period ended December 31, 2005 are not necessarily indicative of the results that may be expected for the year ending September 30, 2006.</P>
<P ALIGN="JUSTIFY">The consolidated balance sheet as of September 30, 2005 is derived from the audited financial statements, but does not include all disclosures required by generally accepted accounting principles. As a result, these financial statements should be read in conjunction with the Company's Form 10-KSB for the fiscal year ended September 30, 2005.</P>
<I><P>Reclassification:</I> Certain prior quarter balances have been reclassified to conform to the current quarter's presentation. Such reclassifications had no effect on the net loss.</P>
<I><P ALIGN="JUSTIFY">Stock-based compensation disclosures:</I> We apply APB Opinion 25 and related interpretations in accounting for stock options and warrants which are granted to employees. Accordingly, no compensation cost has been recognized for grants of options and warrants to employees since the exercise prices were not less than the fair value of our common stock on the grant dates. Had compensation cost been determined based on the fair value at the grant dates for awards under those plans consistent with the method of SFAS No. 123, our net loss and net loss per share would have been changed to the pro forma amounts indicated below.</P></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=666>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=7>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Three Months Ended December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2004</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Net loss applicable to common stockholders:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;As reported</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($322,000)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($234,000)</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Pro forma expense</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">( 34,000)</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">( 30,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Pro forma net loss</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($356,000)</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">($264,000)</U></FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Net loss per common share:</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;As reported</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.13)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.10)</FONT></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">&#9;Pro forma</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.14)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">$ (.11)</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>The assumptions used in calculating the fair value of options granted during the period are as follows:</P></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=666>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=5>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">Three Months Ended December 31,</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2005</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">2004</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Expected volatility</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">58%</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">68%</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Risk-free interest rate</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4.19%</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">4.14%</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Expected dividends</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">Expected terms (in years)</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5 - 10</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">5 - 10</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>2.&#9;CONTINGENT LIABILITY</P>
<P ALIGN="JUSTIFY">We remain contingently liable on various restaurant leases that were previously sold. We are also a guarantor on a Small Business Administration loan to a franchisee. We have never experienced any losses nor do we anticipate any future losses from these contingent liabilities.</P>
<P ALIGN="JUSTIFY">3.&#9;STOCK TRANSACTIONS</P>
<P>None.</P>
<P ALIGN="CENTER">7</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<B><P>ITEM 2.&#9;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF</P><DIR>
<DIR>

<P>&#9;OPERATIONS FOR THE COMPANY</P></DIR>
</DIR>

<U><P>General</P>
</B></U><P ALIGN="JUSTIFY">This Form 10-QSB contains or incorporates by reference forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. Also, documents subsequently filed by us with the SEC and incorporated herein by reference may contain forward-looking statements. We caution investors that any forward-looking statements made by us are not guarantees of future performance and actual results could differ materially from those in the forward-looking statements as a result of various factors, including but not limited to the following:</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">(I)&#9;We compete with numerous well established competitors who have substantially greater financial resources and longer operating histories than we do. Competitors have increasingly offered selected food items and combination meals, including hamburgers, at discounted prices, and continued discounting by competitors may adversely affect revenues and profitability of Company restaurants.</P>
<P ALIGN="JUSTIFY">(II)&#9;We may be negatively impacted if we experience consistent same store sales declines. Same store sales comparisons will be dependent, among other things, on the success of our advertising and promotion of new and existing menu items. No assurances can be given that such advertising and promotions will in fact be successful.</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">We may also be negatively impacted by other factors common to the restaurant industry such as: changes in consumer tastes away from red meat and fried foods; increases in the cost of food, paper, labor, health care, workers' compensation or energy; inadequate number of hourly paid employees; and/or decreases in the availability of affordable capital resources. We caution the reader that such risk factors are not exhaustive, particularly with respect to future filings.</P>
<I><P ALIGN="JUSTIFY">Preferred Stock Offering</P>
</I><P ALIGN="JUSTIFY">On February 10, 2005 we closed on the private placement of a total of 1,240,000 shares of Series B Preferred Stock for $2.50 per share, including 60,000 shares issued to one of the investors in consideration for advice and assistance with respect to the sale of 1,000,000 shares of the Series B Preferred Stock. A current significant stockholder purchased 180,000 of the shares of Series B Preferred Stock. The aggregate purchase price for the 1,180,000 shares issued for cash was $2,950,000. Net proceeds of approximately $2,666,000 include $133,336 paid to Eric W. Reinhard (Board Chairman) for a fee related to raising capital. Each share of Series B Preferred Stock will be convertible at the option of the holder into one share of common stock, subject to certain anti-dilution provisions. Subsequent to February 10, 2006 we have certain mandatory conversion rights. The preferred shares also have additional voting rights, restrictions and provisions as disclosed in our Proxy Statement filed a
s part of our September 30, 2004 annual report. The preferred shares will accrue dividends at the rate of 6% per annum beginning on the first anniversary of the issuance of the shares. The Series B Preferred Stock has a beneficial conversion feature because the quoted market price of Good Times Restaurants' common stock on the commitment date was higher than the conversion price of $2.50. The imputed preferred stock dividend at the commitment date was $533,000 (1,240,000 shares multiplied by the difference in the market value at the commitment date of $2.93 and the conversion price of $2.50). This amount was reflected in the September 30, 2005 10-KSB filing as a reduction of net income available to common stockholders. We are using the net proceeds from the preferred stock offering for the development of new restaurants and for the refurbishment of existing restaurants.</P>
<I><P ALIGN="JUSTIFY">Development</P>
</I><P ALIGN="JUSTIFY">We had forty-three restaurants open at December 31, 2005 of which twenty were franchised or licensed units, eight joint-venture units and fifteen company-owned units compared to forty units open at December 31, 2005, of which twenty-one were franchised or licensed units, eight joint-venture units and eleven company-owned units.</P>
<P ALIGN="CENTER">8</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="JUSTIFY">During fiscal 2005 we opened one new company-owned restaurant in Aurora, Colorado in September 2005. On April 1, 2005 we purchased an existing Good Times restaurant from a</FONT><FONT FACE="ITC Avant Garde Gothic Demi"> </FONT><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2>franchisee and converted the restaurant to the co-brand format. The remodeled restaurant, in Commerce City, Colorado, re-opened as a co-brand in June 2005. During the first quarter of fiscal 2006 we purchased another existing Good Times franchised restaurant which will be converted to the co-brand format by February 2006, and we opened one new company-owned restaurant in late December 2005. We also remodeled one existing restaurant to add a Dazbog coffee operation. Five additional co-brand restaurants are under development and we anticipate opening and franchising a total of six to nine co-branded restaurants in fiscal 2006. Three additional Good Times restaurants are under development and we anticipate opening four to 
five Good Times restaurants in fiscal 2006. With the completion of the sale of preferred stock, we anticipate accelerating the acquisition of sites for company owned development in fiscal 2006 and beyond.</P>
<P ALIGN="JUSTIFY">The following presents certain historical financial information of our operations. This financial information includes results for the three months ended December 31, 2004 and results for the three months ended December 31, 2005.</P>
<B><U><P>Results of Operations</P>
</B></U><I><P>Net Revenues</P>
</I><P ALIGN="JUSTIFY">Net revenues for the three months ended December 31, 2005 increased $544,000 (14.2%) to $4,362,000 from $3,818,000 for the three months ended December 31, 2004. Same store restaurant sales increased $51,000 (1.4%) during the three months ended December 31, 2005 for the restaurants that were open for the full periods ending December 31, 2005 and December 31, 2004. Restaurant sales increased $506,000 due to four new company-owned restaurants, one purchased from a franchisee in April 2005, one opened in September 2005, one opened in late December 2005 and, one purchased from a franchisee in November 2005. Restaurant sales decreased $21,000 due to one non-traditional company-owned restaurant not included in same store sales. Our same store restaurant sales have continued to show positive trends over the last two years. We have had same store sales increases in each of the last eight quarters.</P>
<P ALIGN="JUSTIFY">Franchise revenues increased $8,000 to $110,000 from $102,000 for the three months ended December 31, 2004 due to an increase in franchise royalties and franchise fee income. Same store franchise restaurant sales increased 2.1% during the three months ended December 31, 2005 for the franchise restaurants that were open for the full periods ending December 31, 2005 and December 31, 2004. Two franchise restaurants that opened in the fourth quarter of fiscal 2004 are not included in the same store sales group as they had not been open for eighteen months as of December 31, 2005.</P>
<I><P>Restaurant Operating Costs</P>
</I><P ALIGN="JUSTIFY">Restaurant operating costs as a percent of restaurant sales were 92.7% during the three months ended December 31, 2005 compared to 91.3% in the same prior year period.</P>
<P ALIGN="JUSTIFY">The changes in restaurant-level costs are explained as follows:</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=592>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&nbsp;</P>
<P>Restaurant-level costs for the three month period ended December 31, 2004</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">91.3%</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Decrease in food and packaging costs</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(2.6%)</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Increase in payroll and other employee benefit costs</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1.3%</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Increase in occupancy and other operating costs</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">1.9%</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Decrease in depreciation and amortization</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">(.1%)</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Increase in opening costs</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">.9%</FONT></TD>
</TR>
<TR><TD WIDTH="87%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Restaurant-level costs for the three month period ended December 31, 2005</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="RIGHT">92.7%</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="CENTER">9</P>
<P>&nbsp;</P>
</FONT><FONT FACE="ITC Avant Garde Gothic Demi"><PRE></PRE>
</FONT><I><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Food and Packaging Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005 our food and paper costs, increased $74,000 to $1,367,000 (32.1% of restaurant sales) from $1,293,000 (34.8% of restaurant sales) compared to the same prior year period. Food and packaging costs decreased as a percentage of restaurant sales primarily due to: 1) limited menu price increases; 2) menu product engineering in portions and ingredients; 3) new product development; 4) new purchasing agreements; and, 5) increased vendor rebates in the current period compared to the same prior year period. We anticipate additional moderate decreases to food and packaging costs as a percentage of sales for the balance of fiscal 2006 from purchasing efficiencies and limited menu price increases.</P>
<I><P>Payroll and Other Employee Benefit Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005 our payroll and other employee benefit costs increased $233,000 to $1,459,000 (34.3% of restaurant sales) from $1,226,000 (33% of restaurant sales) compared to the same prior year period. The increase in payroll and other employee benefit expenses is partially the result of increased sales for the period. Payroll and benefit costs are semi-variable and therefore increase or decrease as sales fluctuate. Additionally, the current three-month period ending December 31, 2005 includes four additional company-owned restaurants that represent $192,000 of the $233,000 increase compared to the same prior year period. The new restaurants operate at a higher labor cost as a percent of sales due to higher initial labor costs at new stores until they reach mature staffing levels. The co-brand restaurant also has a higher labor cost as a percent of sales.</P>
<I><P>Occupancy and Other Operating Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005 our occupancy and other operating costs increased $180,000 to $852,000 (20% of restaurant sales) from $672,000 (18.1% of restaurant sales) compared to the same prior year period. For the three months ended December 31, 2005: 1) rent expense increased $64,000 from the same prior year period due to the addition of four company-owned restaurants. Rent expense will continue to increase as a percent of sales as new company-owned restaurants are developed due to higher rent associated with sale-leaseback operating leases; 2) bank fees increased $10,000 from the prior year period due to increased use of credit cards by our customers as well as the four additional company-owned restaurants; and, 3) utility costs increased $38,000 from the prior year period due to the four additional company-owned restaurants and an overall increase in the price of natural gas.</P>
<I><P ALIGN="JUSTIFY">Opening Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005, new store opening costs were $41,000 (.90% of restaurant sales) compared to $0 for the same prior year period. The costs in the current period are associated with a company-owned restaurant that opened in late December 2005 as well as remodeling of a company-owned restaurant in Silverthorne, Colorado. The restaurant in Silverthorne, Colorado was remodeled to add a Dazbog co-branded coffee operation. Each new company-owned restaurant developed in fiscal 2006 will have approximately $50,000 of pre-open expenses.</P>
<I><P>Depreciation and Amortization</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005 depreciation and amortization increased $22,000 to $215,000 (5% of restaurant sales) from $193,000 (5.2% of restaurant sales) compared to the same prior year period. The $22,000 increase in depreciation and amortization for the three months ended December 31, 2005 is due to the addition of four company-owned restaurants.</P>
<P ALIGN="CENTER">10</P>
<P>&nbsp;</P>
</FONT><FONT FACE="ITC Avant Garde Gothic Demi"><PRE></PRE>
</FONT><I><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">General and Administrative Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005, general and administrative costs increased $99,000 to $445,000 (10.2% of total revenues) from $346,000 (9.1% of total revenues) for the same prior year period. The increase in general and administrative costs compared to the same prior year period is primarily attributable to increases in: 1) payroll and employee benefit costs; 2) training and recruiting costs; 3) professional services; and, 4) directors' and officers' liability insurance premiums.</P>
<I><P ALIGN="JUSTIFY">Advertising Costs</P>
</I><P ALIGN="JUSTIFY">For the three months ended December 31, 2005 advertising costs decreased $15,000 to $266,000 (6.3% of restaurant sales) from $281,000 (7.6% of restaurant sales) for the same prior year period. The decrease in advertising costs is primarily due to a reduction in the contribution percentage paid to the local advertising cooperative. Contributions are made to the cooperative based on sales.</P>
<I><P>Income (Loss) From Operations</P>
</I><P ALIGN="JUSTIFY">We had a loss from operations of ($262,000) in the three months ended December 31, 2005 compared to a loss from operations of ($197,000) for the same prior year period. The increase in loss from operations of $65,000 is due primarily to the increase in net revenues offset by other matters discussed in the "Restaurant Operating Costs" and "General and Administrative Costs" sections of Item 2.</P>
<I><P>Net Income (Loss)</P>
</I><P ALIGN="JUSTIFY">The net loss was ($322,000) for the three months ended December 31, 2005 compared to a net loss of ($234,000) for the same prior year period. The change from the three month period ended December 31, 2004 to December 31, 2005 was primarily attributable to the increase in loss from operations for the three months ended December 31, 2005, as well as: 1) an increase in net interest income of $27,000 compared to the same prior year period; 2) an increase in minority interest expense of $19,000 compared to the same prior year period; and, 3) an increase in other expenses of $31,000 compared to the same prior year period. The increase in other expenses is attributable to a $16,000 increase in franchisee support costs as well as a $15,000 legal expense related to the anticipated settlement of a minor civil suit.</P>
<B><U><P>Liquidity and Capital Resources</P>
</B></U><I><P>Cash and Working Capital</P>
</I><P ALIGN="JUSTIFY">As of December 31, 2005, we had $2,479,000 cash and cash equivalents on hand. We currently plan to use the cash balance and cash generated from operations for increasing our working capital reserves and, along with additional debt and equity financing, for the development of new company-owned restaurants. We believe that the current cash on hand and additional cash expected from operations in fiscal 2006 will be sufficient to cover our working capital requirements for fiscal 2006. </P>
<P ALIGN="JUSTIFY">As of December 31, 2005, we had working capital of $1,261,000. Because restaurant sales are collected in cash and accounts payable for food and paper products are paid two to four weeks later, restaurant companies often operate with working capital deficits. We anticipate that working capital deficits will be incurred in the future as new restaurants are opened.</P>
<I><P>Capital Expenditures</P>
</I><P ALIGN="JUSTIFY">On November 30, 2005 the Company purchased the land, building, improvements and equipment from a franchisee for $1,121,000, for a restaurant located in Colorado Springs, Colorado. The Company simultaneously sold the land, building and improvements to a third party in a sale-leaseback transaction for $1,115,000 in net proceeds and will reopen as a co-branded restaurant, under the co-brand test agreement with Taco John's International, in February 2006.</P>
<P ALIGN="CENTER">11</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="JUSTIFY">We are also currently negotiating purchase and lease agreements for additional company-owned and franchise restaurants and are negotiating debt and sale-leaseback financing for the development of those restaurants. We, and our franchisees, anticipate opening four to five Good Times restaurants in 2006. We anticipate purchasing one additional existing restaurant from a franchisee and remodeling that restaurant to the co-brand format during the remainder of fiscal 2006. We also anticipate increasing the level of reinvestment in existing company-owned and joint venture restaurants to upgrade the exterior building image and improve the patios.</P>
<I><P ALIGN="JUSTIFY">Cash Flows</P>
</I><P ALIGN="JUSTIFY">Net cash provided by operating activities was $39,000 for the three months ended December 31, 2005. The net cash provided by operating activities for the three months ended December 31, 2005 was the result of a net loss of ($322,000) and non-cash reconciling items totaling $361,000 (comprised of depreciation and amortization of $217,000, minority interest of $32,000, an increase in accounts payable of $55,000 and a net increase in other operating assets and liabilities of $57,000).</P>
<P ALIGN="JUSTIFY">Net cash used in operating activities was $281,000 for the three months ended December 31, 2004. The net cash used in operating activities for the three months ended December 31, 2004 was the result of a net loss of ($234,000) and non-cash reconciling items totaling $47,000 (comprised of depreciation and amortization of $197,000, minority interest of $13,000 and decreases in operating assets and liabilities totaling $257,000). The $257,000 decrease in operating assets and liabilities includes; 1) an accounts payable decrease of $148,000; 2) a receivables increase of $75,000; and, 3) a $34,000 increase in other assets and liabilities.</P>
<P ALIGN="JUSTIFY">Net cash provided by investing activities for the three months ended December 31, 2005 was $791,000 which reflects payments of $1,078,000 for the purchase of property and equipment (including $834,000 for new store development; $199,000 for remodeled restaurant costs; and, $45,000 for miscellaneous restaurant related capital expenditures); $1,900,000 for the sale of investments; $74,000 in loans made to franchisees and others; and, $43,000 in principal payments received on loans to franchisees.</P>
<P ALIGN="JUSTIFY">Net cash used in investing activities for the three months ended December 31, 2004 was $109,000, which reflects payments of $61,000 for new restaurant development costs, $59,000 in miscellaneous restaurant related capital expenditures and $11,000 in principal payments received on loans to franchisees.</P>
<P ALIGN="JUSTIFY">Net cash used in financing activities for the three months ended December 31, 2005 was $114,000, which includes principal payments on notes payable and long term debt of $54,000; distributions to minority interests in partnerships of $58,000; paid in capital activity of $12,000, related to the exercise of stock options; and, $14,000 for preferred stock offering expenses.</P>
<P ALIGN="JUSTIFY">Net cash used in financing activities for the three months ended December 31, 2004 was $369,000, which includes principal payments on notes payable and long term debt of $51,000, repayments on lines of credit of $305,000, distributions to minority interests in partnerships of $39,000, and paid in capital activity of $26,000 related to the exercise of stock options. In October 2004 we elected to pay off two lines of credit with Merrill Lynch Business Financial Services and to cancel both lines of credit.</P>
<I><P>Contingencies</P>
</I><P ALIGN="JUSTIFY">We are contingently liable on several ground leases that have been subleased or assigned to franchisees. We have never experienced any losses nor do we anticipate any future losses from these contingent lease liabilities. We are also a guarantor on a Small Business Administration loan to a franchisee of approximately $246,000, which is collateralized by a first security interest on the building, equipment and operating assets of the restaurant and the personal guarantee of the franchisee.</P>
<P ALIGN="CENTER">12</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<B><U><P ALIGN="JUSTIFY">Impact of Inflation</P>
</B></U><P ALIGN="JUSTIFY">We experienced a significant impact from inflation in the commodity costs for beef, chicken, dairy and produce during fiscal 2004. We experienced a moderation in the costs of most of these commodities during fiscal 2005. It is anticipated that we will take moderate price increases during fiscal 2006, which may or may not be sufficient to recover increased commodity costs or increases in other operating expenses.</P>
<B><U><P ALIGN="JUSTIFY">Seasonality</P>
</B></U><P ALIGN="JUSTIFY">Revenues of the Company are subject to seasonal fluctuation based primarily on weather conditions adversely affecting restaurant sales in January, February and March.</P>
<B><P>ITEM 3.&#9;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</P>
</B><P ALIGN="JUSTIFY">There were no material changes in our exposure to market risk for the quarter ended December 31, 2004.</P>
<B><P>ITEM 4.&#9;CONTROLS AND PROCEDURES</P>
</B><P ALIGN="JUSTIFY">We maintain a system of disclosure controls and procedures that are designed for the purposes of ensuring that information required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Controller, who currently performs the functions of principal financial officer for the Company, as appropriate to allow timely decisions regarding required disclosures.</P>
<P ALIGN="JUSTIFY">We have carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and the Controller, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and the Controller concluded that our disclosure controls and procedures are effective for the purposes discussed above as of the end of the period covered by this report. There have been no significant changes in our internal controls or in other factors that could significantly affect these controls during the quarter ended December 31, 2005.</P>
<B><P ALIGN="CENTER">GOOD TIMES RESTAURANTS INC. AND SUBSIDIARIES</P>
</B><P>Part II.&#9;Other Information</P><DIR>
<DIR>
<DIR>

<P>Item 1.&#9;Legal Proceedings</P></DIR>
</DIR>
</DIR>

<P>Good Times Restaurants is subject to legal proceedings which are incidental to its business. These legal proceedings are not expected to have a material impact on the Company.</P><DIR>
<DIR>
<DIR>

<P>Item 2.&#9;Changes in Securities and Use of Proceeds</P></DIR>

<P>None.</P><DIR>

<P>Item 3.&#9;Defaults Upon Senior Securities</P></DIR>

<P>None.</P><DIR>

<P>Item 4.&#9;Submission of Matters to a Vote of Security Holders</P></DIR>

<P>None.</P><DIR>

<P>Item 5.&#9;Other Information</P></DIR>

<P>None.</P>
<P ALIGN="CENTER">13</P>
<P>&nbsp;</P>
<P>&nbsp;</P><DIR>

<P>Item 6.&#9;Exhibits and Reports on Form 8-K</P></DIR>

<P>(a)&#9;Exhibits. The following exhibits are furnished as part of this report:</P></DIR>
</DIR>

<P>&#9;<U>Exhibit No.</U>&#9;<U>Description</P><DIR>
<DIR>

</U><P>*31.1&#9;Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350</P>
<P>*32.1&#9;Certification of Controller pursuant to 18 U.S.C. Section 1350</P>
<P>*32.1&#9;Certification of Chief Executive Officer and Controller pursuant to Section 906</P></DIR>
</DIR>

<P>*filed herewith</P>
<B><P ALIGN="CENTER">SIGNATURES</P>
</B><P ALIGN="JUSTIFY">In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<P>&nbsp;</P>
<P>&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=618>
<TR><TD WIDTH="39%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61%" VALIGN="TOP">
<B><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>GOOD TIMES RESTAURANTS INC.</B></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P ALIGN="JUSTIFY">DATE: February 13, 2006</FONT></TD>
<TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>BY:<I>/s/ Boyd E. Hoback</I></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Boyd E. Hoback</P>
<P>President and Chief Executive Officer</FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<DL>
<DT>&nbsp;</DT>
</DL></TD>
<TD WIDTH="61%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>BY:<I> /s/ Susan M. Knutson</I></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="61%" VALIGN="TOP">
<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Sue Knutson</P>
<P>Controller</FONT></TD>
</TR>
</TABLE>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>&nbsp;</P>
<P ALIGN="CENTER">14</P></FONT></BODY>
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<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>qsbquarter1ex31ceo.htm
<DESCRIPTION>CERTIFICATION OF CEO
<TEXT>
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<TITLE>Exhibit 31</TITLE>
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<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Exhibit 31.1</P>
</U><B><P ALIGN="CENTER">CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER</P>
</B><DIR>

<P ALIGN="JUSTIFY">I, Boyd E. Hoback, certify that:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.&#9;I have reviewed this quarterly report on Form 10-QSB of Good Times Restaurants Inc.;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&#9;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;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&#9;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;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&#9;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-15e and 15d-15e) for the registrant and have:</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">a)&#9;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;</P>
<P ALIGN="JUSTIFY">b)&#9;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</P>
<P ALIGN="JUSTIFY">c)&#9;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.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">5.&#9;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY"><A NAME="OLE_LINK1">a)&#9;All significant deficiencies in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P ALIGN="JUSTIFY">b)&#9;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls over financial reporting.</P></DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY"></A></P>
<I><P ALIGN="JUSTIFY">/s/ Boyd E. Hoback</P>
</I>
<P>Boyd E. Hoback</P>
<I><P>President and Chief Executive Officer</P>
</I><P>February 13, 2006</P></FONT></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>qsbquarter1ex31controller.htm
<DESCRIPTION>CERTIFICATION OF CONTROLLER
<TEXT>
<HTML>
<HEAD>
<META ="Content-Type" CONTENT="text/html; charset=windows-1252">
<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Exhibit 31</TITLE>
</HEAD>
<BODY>

<U><FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Exhibit 31.1</P>
</U><B><P ALIGN="CENTER">CERTIFICATION OF THE CONTROLLER</P>
</B><DIR>

<P ALIGN="JUSTIFY">I, Susan M. Knutson, certify that:</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">1.&#9;I have reviewed this quarterly report on Form 10-QSB of Good Times Restaurants Inc.;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">2.&#9;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;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">3.&#9;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;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">4.&#9;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-15e and 15d-15e) for the registrant and have:</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">a)&#9;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;</P>
<P ALIGN="JUSTIFY">b)&#9;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</P>
<P ALIGN="JUSTIFY">c)&#9;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.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>

<P ALIGN="JUSTIFY">5.&#9;The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P ALIGN="JUSTIFY"></P><DIR>
<DIR>

<P ALIGN="JUSTIFY">a)&#9;All significant deficiencies in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P ALIGN="JUSTIFY">b)&#9;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.</P>
<P ALIGN="JUSTIFY"></P></DIR>
</DIR>
</DIR>

<I><P>/s/ Susan M. Knutson</P>
</I>
<P>Susan M. Knutson</P>
<I><P>Controller</P>
</I><P>February 13, 2006</P></FONT></BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>4
<FILENAME>qsbquarter1ex32both.htm
<DESCRIPTION>CERTIFICATION OF CEO AND CONTROLLER
<TEXT>
<HTML>
<HEAD>
<META ="Content-Type" CONTENT="text/html; charset=windows-1252">
<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Exhibit 32</TITLE>
</HEAD>
<BODY>

<FONT FACE="ITC Avant Garde Gothic Demi" SIZE=2><P>Exhibit 32.1</P>
<B><P ALIGN="CENTER">CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, </P>
<P ALIGN="CENTER">AS ADOPTED PURSUANT TO </P>
<P ALIGN="CENTER">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>
</B>
<P ALIGN="JUSTIFY">In connection with the Quarterly Report on Form 10-QSB of Good Times Restaurants Inc. (the &quot;Company&quot;) for the period ended December 31, 2005 as filed with the Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Boyd E. Hoback, Chief Executive Officer and Susan M. Knutson, Controller of the Company, hereby certifies, pursuant to and solely for the purpose of 18 U.S.C. &nbsp;1350, as adopted pursuant to&nbsp;906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:</P>
<P ALIGN="JUSTIFY">(1)&#9;The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</P>
<P ALIGN="JUSTIFY">(2)&#9;The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
<I><P>/s/ Boyd E. Hoback</P>
</I>
<P>Boyd E. Hoback</P>
<P>Chief Executive Officer</P>
<P>February 13, 2006</P>

<I><P>/s/ Susan M. Knutson</P>
</I>
<P>Susan M. Knutson</P>
<P>Controller (principal financial officer)</P>
<P>February 13, 2006</P>
</FONT></BODY>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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