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<SEC-DOCUMENT>0000825324-09-000010.txt : 20100121
<SEC-HEADER>0000825324-09-000010.hdr.sgml : 20100121
<ACCEPTANCE-DATETIME>20090430135440
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000825324-09-000010
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090430

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:		CORRESP

	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>
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<title>March 9, 2009</title>



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<p class=MsoNoSpacing align=center style='margin-bottom:24.0pt;text-align:center'>April 30, 2009</p>

<p class=MsoNoSpacing style='text-align:justify'>United
  States Securities
and Exchange Commission</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Washington, D.C. 20549</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Submitted Electronically with
Copy to Staff</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>Re: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Good Times
Restaurants, Inc.</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form
10-KSB for the year ended September 30, 2008</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filed
December 29, 2008</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; File No. 0-18590</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'>Good Times Restaurants, Inc. (the
&quot;Company&quot;, &quot;we&quot;, &quot;our&quot; or &quot;us&quot;) has received your letter dated April 6, 2009
containing comments on the Company's response to your letter dated February 19,
2009. This letter on behalf of the Company responds to each of the comments set
forth in your letter.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>For convenience of reference, we
have set forth the Commission's comments in bold below, with the Company's
response following each comment.</p>

<p class=MsoNoSpacing style='text-align:justify'><b><u>Form 10-KSB for the year ended September 30, 2008</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>&nbsp;</u></b></p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>Consolidated Balance Sheets,</u></b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:40.5pt;text-align:justify;text-indent:-.25in'><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>We have
reviewed your response to our prior comment number 5 but are unclear as to why
the Company did not believe an updated impairment analysis with respect to the
Company's long-lived assets was required at December 31, 2008.&nbsp; In this regard,
we note from your Form 10-Q for the quarter ended December 31, 2008 that the
Company's restaurant sales and franchise revenues both declined during the
quarter ended December 31, 2008 as compared to the comparable period of the
prior year resulting in a significant increase in the Company's loss from
operations and net loss during the quarter ended December 31, 2008 as compared
to the prior year.&nbsp; These declining revenue and net earnings trends, coupled
with the dramatic decline in consumer spending, the unprecedented rise in
commodity costs and the upheaval in the credit markets which existed during the
quarter ended December 31, 2008 as discussed on page 7 of your Form 10-Q for
the quarter ended December 31, 2008, as well as the fact that the Company's
market capitalization continued to decline during the quarter ended December
31, 2008, are all factors which indicate an updated impairment analysis should
be performed with regard to your long-lived assets as of December 31, 2008
pursuant to the guidance in paragraph 8 of SFAS No. 144.&nbsp; Please complete an
updated impairment analysis with regard to the Company's long-lived assets and
provide us with the results of your updated analysis.&nbsp; We may have further
comment upon review of your response. </b></p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:22.5pt;text-align:justify'>We
have completed an updated impairment analysis with regards to our long-lived
assets as of December 31, 2008. We analyzed all individual restaurants' cash
flows on a trailing twelve month basis and the results showed positive cash
flow for all restaurants, with the exception of one restaurant. The positive
cash flow forms the basis of for our projections to compare undiscounted future
cash flows with the assets carry values as required by SFAS 144.&nbsp; Historically
all of our restaurants have shown positive cash flow and combined with our
projections in the impairment analysis, all of the restaurants' cash flows will
fully recover their asset values.</p>



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<p class=MsoHeader>United States Securities and Exchange Commission</p>

<p class=MsoHeader>April 30, 2009</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Page 2 of 3</p>



<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:22.5pt;text-align:justify'>In
regards to the one restaurant that showed a small ($10,000) negative cash flow
for the trailing twelve months, it was the first time this location's annual
cash flow was negative and our analysis includes projections of positive cash
flow that will recover its asset value. We own the equipment and improvements
only of this particular restaurant and the net book value of those assets is
approximately $270,000.</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:40.5pt;text-align:justify;text-indent:-.25in'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</b><b>Assuming
a satisfactory response to the above comment, please expand your critical
accounting policies discussion in future filings to explain the methods and
significant assumptions that were used in preparing your impairment analysis
with regard to your long-lived assets.&nbsp; Furthermore, we continue to believe
that MD&amp;A should also be revised to include a discussion of why management
believes that its market capitalization as indicated by the current trading
prices of the Company's common shares, is significantly less than the Company's
book value of its net assets.</b></p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>We have expanded our critical
accounting policies discussion in future filings, explaining the methods and
significant assumptions that we used in preparing our impairment analysis with
regards to our long-lived assets.&nbsp; </p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>Historically, the market
capitalization of our common stock has not had a correlation to the net book
value on our financial statements due to large insider holdings and a very
thinly traded public stock.&nbsp; It has traded well in excess of our net book value
at times and below our net book value at times, based on shareholders'
perspectives on the future value of the company.&nbsp; Currently the market
capitalization as reflected in the quoted prices of our common stock is
approximately equal to the net equity of the company. However if there were to
be any significant sellers or buyers of the common stock on the open market,
the market capitalization could change significantly.&nbsp; We are concerned that
discussion of the market dynamics of a thinly traded stock in the MD&amp;A
relative to the book value on our financial statements could be confusing
rather than providing added clarity.</p>

<p class=MsoNoSpacing style='margin-bottom:6.0pt;text-align:justify'><b><u>Consolidated Statements of Cash
Flows</u></b></p>

<p class=MsoNoSpacing style='margin-left:40.5pt;text-align:justify;text-indent:
- -.25in'><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>We note from your response to our
prior comment number 7 that the $747,000 of gross proceeds from sale leaseback
transactions reflected in your consolidated statement of cash flows for the
fiscal year ended September 30, 2008 represents the transaction described in
your response to our prior comment number 4.&nbsp; Please explain why the amount
reflected in your consolidated statement of cash flow for 2008 of $747,000 is
less than the gross proceeds from the sale leaseback transaction discussed in
your response to our prior comment number 4 of $849,000.</b></p>

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

<p class=MsoNoSpacing style='text-align:justify'>The
$747,000 &quot;Proceeds from sale-leaseback transaction&quot; reported on the
Consolidated Statements of Cash Flows for the period ending September 30, 2008
should have been reported as &quot;Proceeds from the sale of assets&quot;, the sale
involved a vacant piece of land sold to an unrelated third party in January of
2008. We correctly reported this transaction in our forms 10-QSB filed for the
periods ending March 31, 2008 and June 30, 2008 and subsequently the amount was
inadvertently reported on the incorrect line in the 10-KSB for the period
ending September 30, 2008. The misclassification in the Consolidated Statements
of Cash Flows was entirely within cash flows from investing activities and did
not affect our total cash flow from operations, investing or financing. It also
has no impact on liquidity, working capital or the Consolidated Balance Sheet
as of September 30, 2008. </p>



<p class=MsoNoSpacing style='text-align:justify'>The
$849,000 was not recorded as the proceeds were simultaneously used for asset
purchases. A non-cash cash flow disclosure will be added to future filings to
reflect this.</p>



<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>In connection with our response
to your comments, we acknowledge that:</p>

<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
and its management &nbsp;is responsible for the adequacy and accuracy of the
disclosure in our filings;</p>



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<p class=MsoHeader>United States Securities and Exchange Commission</p>

<p class=MsoHeader>April 30, 2009</p>

<p class=MsoNormal style='margin-bottom:12.0pt'>Page 3 of 3</p>



<p class=MsoNoSpacing style='margin-left:.5in;text-align:justify;text-indent:
- -.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Staff
comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking action with respect to the filing; and</p>

<p class=MsoNoSpacing style='margin-top:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the Company
may not assert Staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.</p>

<p class=MsoNoSpacing style='margin-bottom:12.0pt;text-align:justify'>If you have any additional
questions or comments, please feel free to contact me directly at 303-384-1411
or Sue Knutson at 303-384-1424.</p>

<p class=MsoNoSpacing style='text-align:justify'>Sincerely,</p>



<p class=MsoNoSpacing style='text-align:justify'><i>/s/ Boyd E. Hoback</i></p>



<p class=MsoNoSpacing style='text-align:justify'>Boyd
E. Hoback</p>

<p class=MsoNoSpacing style='text-align:justify'>President
and CEO</p>

<p class=MsoNoSpacing style='text-align:justify'>Good
Times Restaurants Inc.</p>



<p class=MsoNoSpacing style='text-align:justify'>cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linda
Cvrkel, Branch Chief</p>

<p class=MsoFooter>&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;&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; Effie
Simpson</p>

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