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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000825324-08-000006.txt : 20080214
<SEC-HEADER>0000825324-08-000006.hdr.sgml : 20080214
<ACCEPTANCE-DATETIME>20080214124358
ACCESSION NUMBER:		0000825324-08-000006
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20071231
FILED AS OF DATE:		20080214
DATE AS OF CHANGE:		20080214

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:		08611569

	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>qfirstquarter11.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>UNITED STATES</title>



</head>

<body lang=EN-US vlink=purple>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>


  <p class=MsoTitle style='margin-right:4.5pt'>UNITED
  STATES</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoSubtitle style='margin-right:4.5pt'>SECURITIES
  AND EXCHANGE COMMISSION</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoSubtitle style='margin-right:4.5pt'>Washington, D.C. 20549</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h3>FORM
  10-QSB</h3>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>QUARTERLY REPORT
  UNDER SECTION 13 OR 15(d) OF</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>THE SECURITIES
  EXCHANGE ACT OF 1934</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>For quarterly
  period ended: <u>December 31, 2007</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>Commission file
  number: <u>0-18590</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>GOOD TIMES
  RESTAURANTS INC.</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Exact name of
  registrant as specified in its charter)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>NEVADA</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(State or other
  jurisdiction of incorporation or organization)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>84-1133368</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(I.R.S. Employer
  Identification No.)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>601 CORPORATE
  CIRCLE, GOLDEN, CO&nbsp;&nbsp; 80401</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Address of
  principal executive offices)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>(303) 384-1400 </u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Issuer's telephone
  number)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>(Former name, former address and
  former fiscal year, since last report.)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-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.</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>[X]&nbsp;&nbsp; Yes&nbsp;&nbsp;&nbsp; [&nbsp; ]&nbsp;&nbsp; No</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h3>APPLICABLE
  ONLY TO CORPORATE ISSUERS </h3>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>Total number of shares of stock
  outstanding at February 14, 2008.</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>3,878,859 SHARES OF
  COMMON STOCK, .001 PAR VALUE</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>Transitional Small
  Business Disclosure Format (check one):&nbsp; [&nbsp; ]&nbsp;&nbsp; Yes&nbsp;&nbsp;&nbsp; [X ]&nbsp; No</p>
  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal><b>Form
10-QSB</b></p>

<p class=MsoNormal><b>Quarter
Ended December 31, 2007</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b><u>INDEX</u></b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><b><u>PAGE</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  I - FINANCIAL INFORMATION</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Financial Statements</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Condensed Consolidated Balance Sheets -</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>December 31, 2007 and September 30, 2007</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>3 - 4</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Condensed
  Consolidated Statements of Operations - </p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three
  months ended December 31, 2007 and 2006</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>5</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>Condensed
  Consolidated Statements of Cash Flow -</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three
  months ended December 31, 2007 and 2006</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>6</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Notes
  to Financial Statements</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7 - 10</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Management's
  Discussion and Analysis</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>10 - 15</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Quantitative
  and Qualitative Disclosures About Market Risk</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>15</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controls
  and Procedures</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>15</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  II - OTHER INFORMATION</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Legal
  Proceedings</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Changes
  in Securities and Use of Proceeds</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Defaults
  Upon Senior Securities</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Submission
  of Matters to a Vote of Security Holders</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  5.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Other
  Information.</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  6.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exhibits
  and Reports on Form 8-K</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>SIGNATURES</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>CERTIFICATIONS</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 31.1</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 32.1</p>
  </td>
 </tr>
</table>



<p class=MsoFooter align=center style='text-align:center'>2</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal align=center style='text-align:center'><b>PART I - FINANCIAL
INFORMATION</b></p>

<p class=MsoNormal><b>&nbsp;</b></p>

<p class=MsoNormal><b>ITEM
1. &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS</b></p>



<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>ASSETS</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><b>Unaudited</b></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'><b>Audited</b></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'>December 31,</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CURRENT
  ASSETS:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$1,526,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$2,465,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables,
  net of allowance for doubtful &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounts of $0</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>207,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>187,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>41,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>39,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>196,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>191,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 85,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 88,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current assets</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,055,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,970,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>PROPERTY
  AND EQUIPMENT, at cost:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land
  and building</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,289,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,252,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold
  improvements</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>3,754,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>3,737,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixtures
  and equipment</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;7,812,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp; 7,798,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16,855,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16,787,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less
  accumulated depreciation and amortization</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(9,657,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(9,371,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,198,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,416,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Assets held for sale</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>787,000</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>779,000</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>OTHER
  ASSETS:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable, net of current portion</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>279,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>300,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other assets</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;80,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 79,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 359,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 379,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>TOTAL
  ASSETS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$10,399,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$11,544,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
</table>

<h3>&nbsp;</h3>

<h3>LIABILITIES AND STOCKHOLDERS' EQUITY</h3>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>CURRENT
  LIABILITIES:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current
  maturities of long-term debt</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$&nbsp; 121,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$ 870,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>323,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>387,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  income</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>72,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>119,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
  accrued liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp; 1,044,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp; 1,062,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>1,560,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,438,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>LONG-TERM
  LIABILITIES:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:12.6pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, net of
  current portion</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>940,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>970,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>1,079,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>1,052,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  long-term liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,019,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,022,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal style='page-break-after:avoid'>MINORITY INTERESTS IN PARTNERSHIPS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right;
  page-break-after:avoid'>709,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right;
  page-break-after:avoid'>751,000</p>
  </td>
 </tr>
</table>





<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><a name="OLE_LINK2">See accompanying notes to condensed consolidated
financial statements</a></p>

<p class=MsoFooter align=center style='text-align:center'>3</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=650
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><b>Unaudited</b></h3>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'><b>Audited</b></h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>December 31,</h3>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'>September 30,</h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></h3>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>STOCKHOLDERS'
  EQUITY:</h3>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Preferred
  stock, $.01 par value;</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000,000
  shares authorized, none issued</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and
  outstanding as of September 30, 2007 and</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2007</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Common
  stock, $.001 par value; 50,000,000 shares</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized,
  3,878,559 shares issued and</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outstanding
  as of December 31, 2007 and</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,866,896
  shares issued and outstanding as</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of
  September 30, 2007</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  other comprehensive loss</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>(54,000)</p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'>(26,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital
  contributed in excess of par value</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:
  right'>17,500,000</p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'>17,439,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  deficit</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:
  right'><u>(11,339,000)</u></p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:
  right'><u>(11,084,000)</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  stockholders' equity</p>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp; 6,111,000</u></p>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;&nbsp; 6,333,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:372;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>TOTAL
  LIABILITIES AND STOCKHOLDERS' EQUITY</h3>
  </td>
  <td valign=top style='width:128;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'><u>$ 10,399,000</u></h3>
  </td>
  <td valign=top style='width:6;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>$11,544.000</u></h3>
  </td>
 </tr>
</table>































































<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'>See
accompanying notes to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>4</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><b>GOOD
TIMES RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:-.3in;border-collapse:collapse' width="695">
 <tr>
  <td valign=top style='width:411;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td valign=top style='width:256;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <h3 align=center style='margin-top:0in;margin-right:0in;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>For the Three Months Ended</h3>
  <h3 align=center style='margin-top:0in;margin-right:0in;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>December 31,</h3>
  </td>
 </tr>
</table>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=648
 style='margin-left:.2in;border-collapse:collapse'>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:center'><u>2007</u></h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:center'><u>2006</u></h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>NET REVENUES:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restaurant
  sales, net</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$6,035,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$5,167,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Franchise
  revenues</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 161,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 126,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  net revenues</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>6,196,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,293,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>RESTAURANT
  OPERATING COSTS:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food
  and packaging costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>1,846,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>1,579,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payroll and other employee benefit costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,129,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>1,799,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy
  and other operating costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>1,119,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>1,052,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion
  of deferred rent</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>10,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 308,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 299,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  restaurant operating costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,409,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>4,739,000</p>
  </td>
 </tr>
 <tr style='height:13.95pt'>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt;
  height:13.95pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:13.95pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.95pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.95pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General
  and administrative costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>555,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>460,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advertising
  costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>370,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>328,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Franchise costs</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>96,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>35,000</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain
  on sale of restaurant building</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>&nbsp;&nbsp; (8,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>&nbsp;&nbsp; (8,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>LOSS
  FROM OPERATIONS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(226,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(261,000)</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>OTHER
  INCOME AND (EXPENSES)</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority
  income (expense), net</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(32,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(12,000)</p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest,
  net</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>3,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>15,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  other income and (expenses)</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(29,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>3,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>NET LOSS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>($255,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>($258,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>BASIC
  AND DILUTED LOSS PER COMMON SHARE</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (.06)&nbsp; </u></h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (.07)&nbsp; </u></h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>WEIGHTED
  AVERAGE COMMON SHARES AND EQUIVALENTS</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>&nbsp;USED IN PER SHARE CALCULATION:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=408 valign=top style='width:4.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BASIC
  AND DILUTED</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>3,999,518</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=102 valign=top style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>3,818,738</u></p>
  </td>
 </tr>
</table>























<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'>See
accompanying notes to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>5</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><b>GOOD
TIMES RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse' width="751">
 <tr>
  <td valign=top style='width:511;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:212;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'>For the Three
  Months Ended</p>
  <p class=MsoNormal align=center style='text-align:center'>December 31,</p>
  </td>
 </tr>
</table>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=746
 style='margin-left:5.4pt;border-collapse:collapse'>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2006</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>CASH FLOWS FROM
  OPERATING ACTIVITIES:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  loss</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>($255,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>($258,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Adjustments
  to reconcile net loss to net cash</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;
  provided by (used in) operating activities:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>308,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>299,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock
  based compensation expense</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>24,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>19,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion
  of deferred rent</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>10,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority
  interest</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>32,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>12,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognition
  of deferred (gain) on sale of restaurant building</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(8,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(8,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in operating assets and liabilities:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)
  decrease in:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables
  and other</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(22,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(42,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'>&nbsp;(5,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'>(3,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)
  increase in:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(64,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(38,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
  liabilities and deferred income</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'><u>&nbsp;&nbsp; (66,000)</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp; 17,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by (used in) operating activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>(52,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>15,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>CASH FLOWS USED IN
  INVESTING ACTIVITIES</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  for the purchase of property and equipment</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(95,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(131,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Sale of investments</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Loans
  made to franchisees and to others</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  received on loans to franchisees and to others</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 24,000</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 25,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash used in investing activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(71,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(106,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>CASH FLOWS FROM
  FINANCING ACTIVITIES:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Principal
  payments on notes payable, capital leases, and long-term debt</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(29,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(57,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Repayments
  on revolving lines of credit</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'>(750,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'>(1,000,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from exercise of options</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>37,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>89,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Distributions,
  net of contributions paid to minority interests in partnerships</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; (74,000)</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:3.5pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; (62,000)</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash used in financing activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(816,000)</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>(1,030,000)</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>NET CHANGE IN CASH AND CASH EQUIVALENTS</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(939,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(1,121,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, beginning of period</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$2,465,000</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$2,613,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, end of period</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$1,526,000</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$1,492,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>SUPPLEMENTAL
  DISCLOSURES OF CASH FLOW INFORMATION:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Cash
  paid for interest</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 24,000</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 13,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:559;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Purchase
  of equipment with debt</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 27,000</u></p>
  </td>
 </tr>
</table>





<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'>See
accompanying notes to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>6</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>(Unaudited)</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'><b>Note 1. Basis of Presentation</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>In the opinion of management, the
accompanying unaudited condensed consolidated financial statements contain all
of the normal recurring adjustments necessary to present fairly the financial
position of the Company as of December 31, 2007, the results of its operations
and its cash flows for the three month period ended December 31, 2007.&nbsp; Operating results for the three month period ended December 31, 2007 are not necessarily indicative of the results that may be expected for the year ending September 30, 2008.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>The condensed consolidated balance
sheet as of September 30, 2007 is derived from the audited financial
statements, but does not include all disclosures required by generally accepted
accounting principles.&nbsp; 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, 2007.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Certain prior year balances have been
reclassified to conform to the current year's presentation. Such
reclassifications had no effect on the net loss.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><strong>Note 2. Recent Developments</strong></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>On December 3, 2007, we entered into a development agreement with Zen Partners LLC that is comprised of a
Development Agreement, a Management Agreement and a Site Selection,
Construction Management and Pre-Opening Services Agreement.&nbsp; The agreements
provide for the development of up to twenty five restaurants with a five year
development schedule for up to ten of the restaurants with an option to develop
an additional fifteen restaurants, exercisable any time during the initial five
year period.&nbsp;&nbsp; We will manage and operate the restaurants utilizing our
employees on the same basis as we would company-owned restaurants; however the
Zen Partners LLC will provide all development and operating capital.&nbsp; We will
receive a fixed fee for the development of each restaurant and a recurring
management fee based on a percentage of sales for the operation of the
restaurants.&nbsp;&nbsp; We may provide a limited lease guarantee on the initial three
restaurants developed, for which we will receive an additional recurring
guarantee fee.&nbsp; We will also participate in the ongoing profitability of the
restaurants after Zen Partners LLC has received a priority return on its
invested capital.&nbsp; A member of our Board of Directors and significant
shareholder, David Grissen, is an owner of Zen Partners LLC.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><strong>Note 3. Stock-Based Compensation</strong></p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>Effective
 October 1, 2006, the Company adopted the provisions of Statement of Financial Accounting
Standard (&quot;SFAS&quot;) No. 123(R), <i>Share-Based Payment</i>, using the modified
prospective application transition method. Under the provisions of SFAS 123(R),
stock-based compensation is measured at the grant date, based on the calculated
fair value of the award, and is recognized as an expense over the requisite
employee service period (generally the vesting period of the grant).</p>

<p class=MsoBodyText2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'>The
Company measures the compensation cost associated with share-based payments by
estimating the fair value of stock options as of the grant date using the
Black-Scholes option pricing model. The Company believes that the valuation
technique and the approach utilized to develop the underlying assumptions are
appropriate in calculating the fair values of the Company's stock options
granted during all years presented. Estimates of fair value are not intended to
predict actual future events or the value ultimately realized by the employees
who receive equity awards.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>Our
net loss for the three months ended December 31, 2007 and December 31, 2006 includes $24,000 and $19,000, respectively, of compensation costs
related to our stock-based compensation arrangements.</p>

<p class=MsoFooter align=center style='text-align:center'>7</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>During
the three months ended December 31, 2007, we granted 12,000 non-statutory stock
options and 16,700 incentive stock options both with exercise prices of $5.75.
The per share weighted average fair values were $3.26 for non-statutory stock
option grants and $3.10 for incentive stock option grants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>In
addition to the exercise and grant date prices of the awards, certain weighted
average assumptions that were used to estimate the fair value of stock option
grants are listed in the following table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=168 valign=top style='width:1.75in;padding:0in 0in 0in 0in'>

  </td>
  <td width=192 valign=top style='width:2.0in;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>Incentive Stock
  Options</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>Non-Statutory Stock
  Options</strong></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  term (years)</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>6.0&nbsp;</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>6.7&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  volatility</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>51%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>51%</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Risk-free
  interest rate</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>4.4%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>4.4%</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  dividends</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>0</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>0</b></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>We
estimate expected volatility based on historical weekly price changes of our
common stock for a period equal to the current expected term of the options.
The risk-free interest rate is based on the United States treasury yields in
effect at the time of grant corresponding with the expected term of the
options. The expected option term is the number of years we estimate that
options will be outstanding prior to exercise considering vesting schedules and
our historical exercise patterns.</p>

<p class=MsoBodyText2 style='margin-top:6.0pt;margin-right:-.25in;margin-bottom:
6.0pt;margin-left:0in'>SFAS
123(R) requires the cash flows resulting from the tax benefits for tax
deductions in excess of the compensation expense recorded for those options
(excess tax benefits) to be classified as financing cash flows. These excess
tax benefits were $0 for the quarter ended December 31, 2007.</p>

<p class=MsoBodyText2 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'>A summary
of stock option activity under our share-based compensation plan for the
quarter ended December 31, 2007 is presented in the following table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse' width="739">
 <tr>
  <td valign=top style='width:238;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'><a
  name="OLE_LINK1"></a>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td valign=top style='width:100;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Options</u></b></p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Weighted Average <u>Exercise
  Price</u></b></p>
  </td>
  <td valign=top style='width:115;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>Weighted Average
  Remaining Contractual</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Life (Yrs.)</u></b></p>
  </td>
  <td valign=top style='width:97;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Aggregate Intrinsic
  <u>Value</u></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Outstanding-beg
  of year</p>
  </td>
  <td valign=top style='width:100;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:7.85pt;text-align:right'>&nbsp;366,905</p>
  </td>
  <td valign=top style='width:119;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal>$3.89</p>
  </td>
  <td valign=top style='width:115;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:97;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Granted</p>
  </td>
  <td valign=top style='width:100;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:7.85pt;text-align:right'>&nbsp;28,700</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal>$5.75</p>
  </td>
  <td valign=top style='width:115;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:97;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Exercised</p>
  </td>
  <td valign=top style='width:100;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>(11,663)</p>
  </td>
  <td valign=top style='width:119;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal>$3.41</p>
  </td>
  <td valign=top style='width:115;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:97;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Forfeited
  or expired</p>
  </td>
  <td valign=top style='width:100;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:7.85pt;text-align:right'>&nbsp;<u>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class="MsoNormal" align="right" style="margin-right: 7.85pt"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></td>
  <td valign=top style='width:115;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:97;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Outstanding
  Dec 31, 2007</p>
  </td>
  <td valign=top style='width:100;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:7.85pt;text-align:right'><u>383,942</u></p>
  </td>
  <td valign=top style='width:119;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><u>$4.04</u></p>
  </td>
  <td valign=top style='width:115;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><u>5.7</u></p>
  </td>
  <td valign=top style='width:97;background:silver;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><u>$679,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:100;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">

  </td>
  <td valign=top style='width:115;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:97;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:238;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>Exercisable
  Dec 31, 2007</p>
  </td>
  <td valign=top style='width:100;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:7.85pt;text-align:right'><u>319,744</u></p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=MsoNormal><u>$3.61</u></p>
  </td>
  <td valign=top style='width:115;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><u>5.1</u></p>
  </td>
  <td valign=top style='width:97;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'><u>$679,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoBodyText2 style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
6.0pt;margin-left:0in'>As of December 31, 2007, the total remaining unrecognized compensation cost related to unvested
stock-based arrangements was $209,000 and is expected to be recognized over a period
of 3.75 years.</p>

<p class=MsoBodyText2 style='margin-top:12.0pt;margin-right:-27.0pt;margin-bottom:
6.0pt;margin-left:0in'>The total
intrinsic value of stock options exercised during the three months ended December 31, 2007, was $31,000. Cash received from stock option exercises for the three
months ended December 31, 2007 was $37,000.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><strong>Note 4. Comprehensive Income (Loss)</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt'>Comprehensive income includes net income or
loss, changes in certain assets and liabilities that are reported directly in
equity such as adjustments resulting from unrealized gains or losses on
held-to-maturity investments and certain hedging transactions.</p>

<p class=MsoFooter align=center style='text-align:center'>8</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:6.0pt'>In May 2007, the Company entered into an
interest rate swap agreement, designated as a cash flow hedge, which hedges the
Company's exposure to interest rate fluctuations on the Company's floating rate
$1,100,000 term loan. The Company records the fair value of these contracts in
the balance sheet, with the offset to other comprehensive loss. The contract
requires monthly settlements of the difference between the amounts to be
received and paid under the agreement, the amount of which is recognized in
current earnings as interest expense.</p>



<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b>Note 5. Contingent Liabilities</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'>We remain contingently liable on various
restaurant leases that were previously sold.&nbsp; We have never experienced any
losses nor do we anticipate any future losses from these contingent
liabilities.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>Note 6. Assets Held for Sale</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'>We have classified $787,000 as assets held
for sale in the accompanying condensed consolidated balance sheet.&nbsp; These costs
are related to two sites, one of which are under development and will be
marketed in the sale lease-back market, the second of which was vacant land and
was sold in January 2008 with net proceeds of $747,000.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>Note 7. Accounting Policies</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'>In June 2006, the FASB issued FIN 48,
&quot;Accounting for Uncertainty in Income Taxes - an interpretation of FASB
Statement 109,&quot; which clarifies the accounting for uncertainty in income
taxes recognized in an enterprise's financial statements in accordance with FAS
109, &quot;Accounting for Income Taxes.&quot;&nbsp; FIN 48 provides
interpretive guidance for the financial statement recognition and measurement
of a tax position taken, or expected to be taken, in a tax return. FIN 48
requires the affirmative evaluation that it is more-likely-than-not, based on
the technical merits of a tax position, that an enterprise is entitled to
economic benefits resulting from positions taken in income tax returns. If a
tax position does not meet the &quot;more-likely-than-not&quot; recognition threshold,
the benefit of that position is not recognized in the financial statements.&nbsp;
FIN 48 was effective for the fiscal year beginning October&nbsp;1, 2007 and there is no cumulative effect of applying FIN 48.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>Note 8. Income Taxes</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'>On October 1, 2007, the Company adopted the provisions of FIN 48. There were no material tax positions not meeting the
&quot;more-likely-than-not&quot; recognition threshold and therefore there is no
cumulative effect of applying FIN 48.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Although the Company has not incurred
interest and penalties associated with unrecognized tax benefits; future
interest and penalties associated with unrecognized tax benefits, if any, will
be recognized in income tax expense in the Consolidated Statements of
Operations and the corresponding liability in&nbsp;income taxes payable or
income taxes receivable, net on the Consolidated Balance Sheets. </p>

<p class=MsoNormal style='margin-bottom:12.0pt'>The Company is currently not undergoing any
examinations by any taxing jurisdictions, with the tax years for the Fiscal
Years Ending September 30, 2003 through 2007 remaining open to examination.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>Note 9. New Accounting Pronouncements</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'>In February 2007, the FASB issued SFAS No.
159, &quot;The Fair Value Option for Financial Assets and Financial Liabilities -
including an amendment of FASB Statement No. 115&quot; (&quot;SFAS 159&quot;). SFAS 159
provides companies with an option to report selected financial assets and
financial liabilities at fair value. Unrealized gains and losses on items for
which the fair value option has been elected are reported in earnings at each
subsequent reporting date. SFAS 159 is effective for fiscal years beginning
after November&nbsp;15, 2007 which will be effective for our fiscal year beginning
 October 1, 2008. The adoption of this statement is not expected to have a
material impact on the Company's financial position or results of operations.</p>



<p class=MsoFooter align=center style='text-align:center'>9</p>

<div class=MsoNormal align=center style='text-align:center'>

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<p class=MsoNormal style='margin-bottom:12.0pt'>In December 2007, the FASB issued FASB
Statement No. 141(revised 2007), &quot;Business Combinations&quot; (&quot;FAS 141(R)&quot;), which
establishes accounting principles and disclosure requirements for all
transactions in which a company obtains control over another
business.&nbsp;&nbsp;This accounting pronouncement is effective for fiscal
years beginning after December 15, 2008, which will be effective for our fiscal
year beginning October 1, 2009. The adoption of this statement is not expected
to have a material impact on the Company's financial position or results of
operations.</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>In December 2007, the FASB issued FASB
Statement No. 160, &quot;Noncontrolling Interests in Consolidated Financial Statements
and amendment to ARB No. 51&quot; (&quot;FAS 160&quot;).&nbsp;&nbsp;This standard prescribes
the accounting by a parent company for minority interests held by other parties
in a subsidiary of the parent company.&nbsp;&nbsp;FAS 160 is effective for
fiscal years beginning after December 15, 2008, which will be effective for our
fiscal year beginning October 1, 2009.&nbsp;&nbsp;We are currently evaluating
the requirements of FAS 160 and have not yet determined the impact on our financial
statements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>Note 10. Stock Transactions</b></p>

<p class=MsoBodyText2 style='margin-bottom:12.0pt'>None.</p>

<p class=MsoNormal style='margin-top:12.0pt'><b>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND RESULTS OF OPERATIONS
FOR THE COMPANY</b></p>

<h3><u>General</u></h3>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>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 and the disclosure of
risk factors in the Company's form 10-KSB for the fiscal year ended September
30, 2007.&nbsp; Also, documents subsequently filed by us with the SEC and
incorporated herein by reference may contain forward-looking statements.&nbsp; 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>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>(I)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We compete with numerous
well established competitors who have substantially greater financial resources
and longer operating histories than we do.&nbsp; 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 class=MsoBlockText style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:31.7pt;text-indent:-31.7pt'>(II)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We may be negatively impacted if we
experience consistent same store sales declines.&nbsp; Same store sales comparisons
will be dependent, among other things, on the success of our advertising and
promotion of new and existing menu items.&nbsp; No assurances can be given that such
advertising and promotions will in fact be successful.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>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.&nbsp; We caution the reader that such risk factors are not
exhaustive, particularly with respect to future filings.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:97%'><i>Restaurant Locations</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>We currently operate and franchise a
total of fifty-two Good Times restaurants, of which forty-seven are in Colorado, with forty-two in the Denver greater metropolitan area, three in Colorado Springs, one in Grand Junction and one in Silverthorne. Eight of these restaurants
are &quot;dual brand&quot;, operated pursuant to a Dual Brand Test Agreement with Taco
John's International, of which there is one in North Dakota, two in Wyoming, and five in Colorado.</p>

<p class=MsoFooter align=center style='text-align:center'>10</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



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<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=674
 style='margin-left:5.4pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>

  </td>
  <td width=54 valign=top style='width:40.35pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Total</b></p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Denver</b><b>, CO</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Greater Metro</b></p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Colorado</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Other</b></p>
  </td>
  <td width=57 valign=top style='width:43.0pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Idaho</b></p>
  </td>
  <td width=79 valign=top style='width:59.1pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Wyoming</b></p>
  </td>
  <td width=62 valign=top style='width:46.35pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>North Dakota</b></p>
  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times co-owned &amp; co-developed</p>
  </td>
  <td width=54 valign=top style='width:40.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>24</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>21</p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=57 valign=top style='width:43.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=79 valign=top style='width:59.1pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=62 valign=top style='width:46.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times franchised</p>
  </td>
  <td width=54 valign=top style='width:40.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>20</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>16</p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=57 valign=top style='width:43.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=79 valign=top style='width:59.1pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=62 valign=top style='width:46.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand co-owned</p>
  </td>
  <td width=54 valign=top style='width:40.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=57 valign=top style='width:43.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=79 valign=top style='width:59.1pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=62 valign=top style='width:46.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand franchised</p>
  </td>
  <td width=54 valign=top style='width:40.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>5</p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=57 valign=top style='width:43.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=79 valign=top style='width:59.1pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=62 valign=top style='width:46.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total</b></p>
  </td>
  <td width=54 valign=top style='width:40.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>52</b></p>
  </td>
  <td width=95 valign=top style='width:71.25pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>42</b></p>
  </td>
  <td width=80 valign=top style='width:60.15pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>5</b></p>
  </td>
  <td width=57 valign=top style='width:43.0pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
  <td width=79 valign=top style='width:59.1pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>3</b></p>
  </td>
  <td width=62 valign=top style='width:46.35pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
 </tr>
</table>



<p class=MsoNormal align=center style='margin-top:6.0pt;margin-right:2.15in;
margin-bottom:0in;margin-left:211.5pt;margin-bottom:.0001pt;text-align:left'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; January</b></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:22.5pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2007</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2008</b></p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Company-owned restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>17</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>18</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Joint venture restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.5pt;border-right:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Franchise operated restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>23</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>25</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total restaurants</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>49</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>52</b></p>
  </td>
 </tr>
</table>



<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>In fiscal 2007 we opened one new
company-owned restaurant in Littleton, Colorado in May 2007 and one new
company-owned restaurant in Colorado Springs, Colorado in August 2007.&nbsp; In May
2007 we sold one existing company-owned restaurant to a new franchisee.&nbsp; One
new franchised Good Times restaurant opened in Longmont, Colorado in March
2007, and two new franchised dual brand restaurants opened in February 2007,
one in Gillette, Wyoming and one in Dickinson, North Dakota.&nbsp; Five additional
Good Times restaurants are under various stages of development and entitlement,
two in Colorado and three in Omaha, Nebraska.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>In January 2008 a North Dakota franchisee
terminated their Good Times franchise agreement in the dual brand concept and
has stopped selling Good Times products in their two locations, </p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>The following presents certain
historical financial information of our operations.&nbsp; This financial information
includes results for the three months ended December 31, 2006 and results for the three months ended December 31, 2007.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b><u>Results of Operations</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Net Revenues</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net revenues for the three months
ended December 31, 2007 increased $903,000 (17.0%) to $6,196,000 from $5,293,000
for the three months ended December 31, 2006.&nbsp; Same store restaurant sales increased
$459,000 (11.6%) during the three months ended December 31, 2007 for the restaurants that were open for the full periods ending December 31, 2007 and December 31, 2006.&nbsp; Restaurants are included in same store sales after they have been
open a full fifteen months and only Good Times restaurants are included with dual
branded restaurants excluded.&nbsp; Restaurant sales increased $453,000 due to six
company-owned restaurants not included in same store sales. Three were opened
beginning in late fiscal 2006 through fiscal 2007 and three are dual branded
restaurants.&nbsp; Restaurant sales increased $112,000 due to one non-traditional
company-owned restaurant not included in same store sales. Restaurant sales
decreased $156,000 due to one company-owned restaurant sold to a franchisee in
May 2007.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Our same store restaurant sales were
severely impacted by adverse weather conditions in the Denver, Colorado metropolitan area in December 2006.&nbsp; The severe weather caused store closures and
limited operating hours on two separate occasions during December 2006. In
December 2007 we were again impacted by below average weather conditions in the
  Denver metropolitan area. </p>

<p class=MsoFooter align=center style='text-align:center'>11</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Franchise revenues increased $35,000
to $161,000 from $126,000 for the three months ended December 31, 2006 due to an increase in franchise royalties. Same store Good Times franchise
restaurant sales increased 10.0% during the three months ended December 31, 2007 for the franchise restaurants that were open for the full periods ending
 December 31, 2007 and December 31, 2006.&nbsp; Franchise restaurant sales increased
$222,000 during the three months ended December 31, 2007 for one Good Times restaurant that opened in March 2007 and dual branded franchise restaurant sales
increased $150,000 during the three months ended December 31, 2007 due to the opening of two new restaurants in fiscal 2007.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Restaurant Operating Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Restaurant operating costs as a
percent of restaurant sales were 89.6% during the three months ended December 31, 2007 compared to 91.7% in the same prior year period.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>The changes in restaurant-level costs
are explained as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:24.0pt;border-collapse:collapse'>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  Restaurant-level
  costs for the three month period ended December 31, 2006</td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>91.7%</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Food and
  packaging costs</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>&nbsp;&nbsp;&nbsp; 0%</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase
  in payroll and other employee benefit costs</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>&nbsp;&nbsp; .5%</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease in
  occupancy and other operating costs</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>(1.8%)</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease in
  depreciation and amortization</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>&nbsp;(.7%)</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease
  in deferred rent</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>&nbsp;(.1%)</p>
  </td>
 </tr>
 <tr>
  <td width=509 valign=top style='width:5.3in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
  margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Restaurant-level costs for the three
  month period ended December 31, 2007</p>
  </td>
  <td width=84 valign=top style='width:63.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>89.6%</p>
  </td>
 </tr>
</table>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>&nbsp;</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Food and Packaging Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007 our food and paper costs, increased $267,000 to $1,846,000 (30.6% of
restaurant sales) from $1,579,000 (30.6% of restaurant sales) compared to the
same prior year period. Our
weighted food and packaging costs increased approximately 7% during fiscal
2007. We have taken weighted menu price increases of 1.8% in January 2007, 2.3%
in July 2007.and 3.3% in October 2007 to offset the food and packaging cost
increases. We anticipate
stable to moderate increases to food and packaging costs as a percentage of
sales for the balance of fiscal 2008.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Payroll</i><i> and Other Employee Benefit Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007 our payroll and other employee benefit costs increased $330,000 to $2,129,000
(35.3% of restaurant sales) from $1,799,000 (34.8% of restaurant sales)
compared to the same prior year period.&nbsp; The
increase in payroll and other employee benefit expenses as a percent of
restaurant sales is the result of a mandated increase in the minimum wage paid
to hourly employees in the state of Colorado beginning January 1, 2007 from
$5.15 to $6.85 as well as additional labor required to execute sales of the new
&quot;Bambino&quot; burger added in May 2007.&nbsp; Additionally, our 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.&nbsp; The dual brand
restaurants also have a higher labor cost as a percent of sales.&nbsp; The current
three month period ending December 31, 2007 includes two additional
company-owned restaurants opened in fiscal 2007 that represent $157,000 of the
increase compared to the same prior year period.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Occupancy and Other Operating Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007 our occupancy and other operating costs increased $67,000 to $1,119,000
(18.6% of restaurant sales) from $1,052,000 (20.4% of restaurant sales)
compared to the same prior year period.&nbsp; The current three month period ending December 31, 2007 includes two additional company-owned restaurants opened in fiscal 2007
that represent an increase of $87,000 compared to the same prior year period;
the increase was offset by a decrease of $44,000 due to one company-owned
restaurant sold to a franchisee in May 2007.&nbsp; Occupancy and other operating
costs may increase as a percent of sales as new company-owned restaurants are
developed due to higher rent associated with sale-leaseback operating leases,
as well as higher property taxes at those locations.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>&nbsp;</i></p>

<p class=MsoFooter align=center style='text-align:center'>12</p>

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<p class=MsoHeader style='margin-bottom:6.0pt'><i>Depreciation and Amortization</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007 our depreciation and amortization increased $9,000 to $308,000 (5.1% of
restaurant sales) from $299,000 (5.8% of restaurant sales) compared to the same
prior year period. The $9,000 increase in depreciation and amortization for the
three months ended December 31, 2007 is primarily due to the addition of two company-owned
restaurants opened in fiscal 2007.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>General and Administrative Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007, general and administrative costs increased $95,000 to $555,000 (9.0% of
total revenues) from $460,000 (8.7% of total revenues) for the same prior year
period.&nbsp; The increase in general and administrative costs compared to the same
prior year period is primarily attributable to increases in payroll and
employee benefit costs, professional services and training and recruiting
costs. Professional services increased $58,000 primarily attributable to legal
fees relating to the joint venture agreement for the Omaha expansion and legal
fees relating to the Company's Omnibus Equity Compensation Plan.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Advertising Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007 advertising costs increased $42,000 to $370,000 (6.1% of restaurant sales)
from $328,000 (6.2% of restaurant sales) for the same prior year period.&nbsp; The
increase in advertising costs is primarily due to the increase in restaurant
sales.&nbsp; Contributions based on sales are made to the advertising funds.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Franchise Costs</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>For the three months ended December 31, 2007, franchise costs increased $61,000 to $96,000 (1.6% of total revenues)
from $35,000 (.6% of total revenues) for the same prior year period.&nbsp; The
increase in franchise costs is primarily attributable to the addition of a Vice
President of Franchise Development hired on October 1, 2007, who will be recruiting both experienced multi-unit operators as well as individual
owner-operator franchisees for planned expansion into new states. We also
incurred $13,000 in legal costs in the three months ended December 31, 2007 related to franchise registration filings in connection with our planned expansion.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Loss from Operations</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>We had a loss from operations of ($226,000)
in the three months ended December 31, 2007 compared to a loss from operations
of ($261,000) for the same prior year period. The decrease in loss from
operations of $35,000 is due primarily to the increase in net revenues offset
by other matters discussed in the &quot;Restaurant Operating Costs&quot;,
&quot;General and Administrative Costs&quot; and &quot;Franchise Costs&quot; sections of
Item 2.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Net Loss</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>The net loss was ($255,000) for the
three months ended December 31, 2007 compared to a net loss of ($258,000) for
the same prior year period. The change from the three month period ended December
31, 2006 to December 31, 2007 was primarily attributable to the decrease in
loss from operations for the three months ended December 31, 2007, as well as:
1) a decrease in net interest income of $12,000 compared to the same prior year
period; and, 2) an increase in minority interest expense of $20,000 compared to
the same prior year period.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b><u>Liquidity and Capital Resources</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Cash and Working Capital</i></p>

<p class=MsoFooter align=center style='text-align:center'>13</p>

<div class=MsoNormal align=center style='text-align:center'>

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<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>As of December 31, 2007, we had $1,526,000 cash and cash equivalents on hand. Subsequent to the end of the quarter we
sold assets held for sale with net proceeds of $747,000. 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.&nbsp; We believe that the
current cash on hand and additional cash expected from operations in fiscal 2008
will be sufficient to cover our working capital requirements for fiscal 2008.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:97%'>As
of December 31, 2007, we had working capital of $495,000.&nbsp; 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.&nbsp; We anticipate that working capital deficits will be
incurred in the future as new restaurants are opened.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:97%'><i>Financing
Activities</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>In May 2007 we borrowed $1,100,000
from Wells Fargo Bank under a note payable with an eight year term with a
floating interest rate at .50% below prime.&nbsp; We simultaneously entered into an
interest rate swap transaction with Wells Fargo Bank for the full $1,100,000
with a fixed interest rate of 7.77% for the full eight year term coinciding
with the note payable, see note 4 in item one above. Partial proceeds from the
loan were used to: 1) payoff our existing GE Capital notes payable of $398,000;
and, 2) fund new store construction. The balance of the proceeds will be used
to partially fund the purchase of an existing restaurant from a franchisee.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Capital Expenditures</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>We are 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 also anticipate investing approximately $575,000 during the
balance of fiscal 2008 in existing company-owned and joint venture restaurants
to upgrade the exterior building finishes and dining rooms as well as to
improve the patios.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><i>Cash Flows</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash used in operating activities
was $52,000 for the three months ended December 31, 2007.&nbsp; The net cash used in operating activities for the three months ended December 31, 2007 was the result
of a net loss of ($255,000) and non-cash reconciling items totaling $203,000
(comprised of depreciation and amortization of $308,000, minority interest of $32,000
and a net decrease in other operating assets and liabilities of $137,000).</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash provided by operating
activities was $15,000 for the three months ended December 31, 2006.&nbsp; The net cash provided by operating activities for the three months ended December 31, 2006
was the result of a net loss of ($258,000) and non-cash reconciling items
totaling $273,000 (comprised of depreciation and amortization of $299,000,
minority interest of $12,000 and a net decrease in other operating assets and
liabilities of $38,000).</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash used in investing activities
for the three months ended December 31, 2007 was $71,000 which reflects
payments of $95,000 for the purchase of property and equipment (including $31,000
for new store development, $27,000 for restaurant remodeling costs and $31,000
for miscellaneous restaurant related capital expenditures) and $24,000 in
principal payments received on loans to franchisees.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash used in investing activities
for the three months ended December 31, 2006 was $106,000 which reflects
payments of $131,000 for the purchase of property and equipment (including
$77,000 for new store development and $54,000 for miscellaneous restaurant
related capital expenditures) and $25,000 in principal payments received on
loans to franchisees.</p>



<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash used in financing activities
for the three months ended December 31, 2007 was $816,000, which includes
principal payments on notes payable and long term debt of $29,000; a repayment
on our revolving line of credit of $750,000; distributions to minority
interests in partnerships of $74,000; and paid in capital activity of $37,000
related to the exercise of stock options.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'>Net cash used in financing activities
for the three months ended December 31, 2006 was $1,030,000, which includes
principal payments on notes payable and long term debt of $57,000; a repayment
on our revolving line of credit of $1,000,000; net distributions to minority
interests in partnerships of $62,000; and paid in capital activity of $89,000
related to the exercise of stock options.</p>

<p class=MsoFooter align=center style='text-align:center'>14</p>

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<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><i>Contingencies</i></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:97%'>We are contingently liable on several
ground leases that have been subleased or assigned to franchisees.&nbsp; We have
never experienced any losses nor do we anticipate any future losses from these
contingent lease liabilities.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:97%'><b><u>Impact of Inflation</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>We experienced moderation in commodity
costs during fiscal 2005 and 2006 and significant increases in fiscal 2007.&nbsp;
State increases in the minimum wage resulted in an increase in our average hourly
wage of $.60 per employee hour during fiscal 2007. It is anticipated that we
will take moderate price increases during fiscal 2008, which may or may not be
sufficient to recover increased commodity costs or increases in other operating
expenses.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b><u>&nbsp;</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b><u>Seasonality</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Revenues of the Company are subject to
seasonal fluctuation based primarily on weather conditions adversely affecting
restaurant sales in December, January, February and March.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>ITEM 3.&nbsp;&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:97%'>There were no material changes in our
exposure to market risk for the quarter ended December 31, 2007</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>ITEM 4.&nbsp;&nbsp; CONTROLS AND PROCEDURES</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:97%'>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><font face="Arial" style="font-size: 11pt">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.&nbsp; 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.&nbsp; 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, 2007.</font></p>

<p class=MsoFooter align=center style='text-align:center'>15</p>

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<p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:center'><b><font face="Arial">
GOOD TIMES RESTAURAN</font>TS INC. AND
SUBSIDIARIES</b></p>

<p class=MsoHeader align=center style='margin-bottom:12.0pt;text-align:center'><b>PART II - OTHER
INFORMATION</b></p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'>Item 1.&nbsp;&nbsp;&nbsp; Legal Proceedings</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Good Times Restaurants is subject to
legal proceedings which are incidental to its business.&nbsp; These legal
proceedings are not expected to have a material impact on the Company.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 2.&nbsp;&nbsp;&nbsp; Changes
in Securities and Use of Proceeds</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 3.&nbsp;&nbsp;&nbsp; Defaults
upon Senior Securities</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 4.&nbsp;&nbsp;&nbsp; Submission
of Matters to a Vote of Security Holders</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>



<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 5.&nbsp;&nbsp;&nbsp; Other
Information</p>

<p class=MsoList2 style='margin-bottom:6.0pt'>None.</p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'>Item 6.&nbsp;&nbsp;&nbsp; Exhibits and Reports on Form 8-K</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.&nbsp;
The following exhibits are furnished as part of this report:</p>

<p class=MsoNormal style='margin-bottom:6.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibit No.</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Description</u></p>

<p class=MsoHeader style='margin-left:31.5pt'>*31.1&nbsp;&nbsp;&nbsp;&nbsp; Certification of Chief Executive
Officer pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoHeader style='margin-left:31.7pt'>*32.1&nbsp;&nbsp;&nbsp;&nbsp; Certification of Controller
pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoNormal style='margin-left:31.5pt'>*32.1&nbsp;&nbsp;&nbsp;&nbsp; Certification of Chief Executive
Officer and Controller pursuant to Section 906</p>



<p class=MsoNormal>*filed
herewith</p>





<p class=MsoNormal><b>SIGNATURES</b></p>



<p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
line-height:normal'>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>







<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3>&nbsp;</h3>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3><b>GOOD TIMES RESTAURANTS INC.</b></h3>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>DATE:
  February 14, 2008</p>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'><i>
  /s/ Boyd E.
  Hoback</i> </p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Boyd E. Hoback</p>
  <p class=MsoHeader>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader style='margin-left:.3in'><i>
  /s/ Susan M. Knutson</i></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Susan M. Knutson</p>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Controller</p>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'>__________________________________ </p>
  </td>
 </tr>
 </table>



<p class=MsoFooter align=center style='text-align:center'>16</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>







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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>2
<FILENAME>exhibit321ceoandcontroller1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
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<title>Exhibit 32</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">Exhibit
32.1</font></u></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350, </font></b></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">AS
ADOPTED PURSUANT TO</font></b></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">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, 2007 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.
&sect;&nbsp;1350, as adopted pursuant to &sect;&nbsp;906 of the Sarbanes-Oxley Act of
2002, that to the best of my knowledge and belief:</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">s/ Boyd E. Hoback</font></i></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">/s/ Susan M. Knutson</font></i></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Boyd
  E. Hoback</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Susan
  M. Knutson</font></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Chief
  Executive Officer</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Controller
  (principal financial officer)</font></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">February
  14, 2008</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">February
  14, 2008</font></p>
  </td>
 </tr>
</table>

<p class=MsoFooter><font size=3 face="Times New Roman">&nbsp;</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

<hr size=2 width="100%" noshade style='color:navy' align=center>

</font></div>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><font face="Microsoft Sans Serif">&nbsp;</font></p>



</body>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>exhibit311ceo1.htm
<TEXT>
<html>

<head>
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<title>Exhibit 31</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face=Arial>&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face=Arial>&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face=Arial>Exhibit 31.1</font></u></p>

<p class=MsoNormal align=center style='text-align:center'><b><font size=2
face=Arial>CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER</font></b></p>

<p class=MsoNormal style='margin-left:22.5pt;text-indent:-22.5pt'><font size=2
face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>I, Boyd E. Hoback, certify that:</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>1.&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form
10-QSB of Good Times Restaurants Inc.;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>2.&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>3.&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>4.&nbsp;&nbsp;&nbsp;&nbsp; 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:</font></p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>a)&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>b)&nbsp;&nbsp;&nbsp;&nbsp; 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</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>c)&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>5.&nbsp;&nbsp;&nbsp;&nbsp; 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):</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><a name="OLE_LINK1"><font size=2 face=Arial>a)&nbsp;&nbsp;&nbsp;&nbsp; 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</font></a></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>b)&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal><i><font size=2 face=Arial>/s/ Boyd E. Hoback</font></i></p>

<p class=MsoNormal><font size=2 face=Arial>Boyd E. Hoback</font></p>

<p class=MsoNormal><i><font size=2 face=Arial>President and Chief
Executive Officer</font></i></p>

<p class=MsoFooter><font size=2 face=Arial>February 14, 2008</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

<hr size=2 width="100%" noshade style='color:navy' align=center>

</font></div>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><font face=Arial>&nbsp;</font></p>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>4
<FILENAME>exhibit31controller1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
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<title>Exhibit 31</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">Exhibit
31.1</font></u></p>

<p class=MsoNormal align=center style='text-align:center'><b><font size=2
face="Microsoft Sans Serif">CERTIFICATION OF THE CONTROLLER</font></b></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">I, Susan M. Knutson, certify
that:</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this
quarterly report on Form 10-QSB of Good Times Restaurants Inc.;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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:</font></p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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):</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">/s/ Susan M. Knutson</font></i></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Susan
M. Knutson</font></p>

<p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">Controller</font></i></p>

<p class=MsoFooter><font size=2 face="Microsoft Sans Serif">February
14, 2008</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

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