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<SEC-DOCUMENT>0000825324-11-000003.txt : 20110214
<SEC-HEADER>0000825324-11-000003.hdr.sgml : 20110214
<ACCEPTANCE-DATETIME>20110214121221
ACCESSION NUMBER:		0000825324-11-000003
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20101231
FILED AS OF DATE:		20110214
DATE AS OF CHANGE:		20110214

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:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		11603970

	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>10-Q
<SEQUENCE>1
<FILENAME>q1st10a1.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>















<p class=MsoNormal align=center style='text-align:center'>UNITED
STATES</p>

<p class=MsoNormal align=center style='text-align:center'>SECURITIES
 AND EXCHANGE COMMISSION</p>

<p class=MsoNormal align=center style='text-align:center'>WASHINGTON, D.C. 20549</p>



<p class=MsoNormal align=center style='text-align:center'>FORM 10-Q</p>



<p class=MsoNormal>(Mark One)</p>



<p class=MsoNormal align=center style='text-align:center'>x&nbsp;QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE</p>

<p class=MsoNormal align=center style='text-align:center'>ACT OF
1934</p>



<p class=MsoNormal align=center style='text-align:center'>For the
quarterly period ended December 31, 2009</p>



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



<p class=MsoNormal align=center style='text-align:center'>o&nbsp;TRANSITION REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES</p>

<p class=MsoNormal align=center style='text-align:center'>EXCHANGE
ACT OF 1934</p>

<p class=MsoNormal align=center style='text-align:center'>Commission
File Number: 0-18590</p>



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

<p class=MsoNormal align=center style='text-align:center'>(Exact
Name of Registrant as Specified in Its Charter)</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='height:15.45pt'>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;NEVADA &nbsp;</p>
  </td>
  <td width=14 style='width:10.75pt;padding:0in 0in 0in 0in;height:15.45pt'>

  </td>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;84-1133368</p>
  </td>
 </tr>
 <tr style='height:30.95pt'>
  <td width=353 style='width:264.6pt;padding:0in 0in 0in 0in;height:30.95pt'>
  <p class=MsoNormal align=center style='text-align:center'>(State
  or Other Jurisdiction of &nbsp;</p>
  <p class=MsoNormal align=center style='text-align:center'>Incorporation
  or Organization)</p>
  </td>
  <td width=14 style='width:10.75pt;padding:0in 0in 0in 0in;height:30.95pt'>

  </td>
  <td width=353 valign=top style='width:264.6pt;padding:0in 0in 0in 0in;
  height:30.95pt'>
  <p class=MsoNormal align=center style='text-align:center'>&nbsp;&nbsp;
  (I.R.S. Employer Identification Number)</p>
  </td>
 </tr>
</table>



<p class=MsoNormal align=center style='text-align:center'>601
CORPORATE CIRCLE, GOLDEN, CO 80401</p>

<p class=MsoNormal align=center style='text-align:center'>(Address
of Principal Executive Offices, Including Zip Code)</p>

<p class=MsoNormal align=center style='text-align:center'>(303) 384-1400</p>

<p class=MsoNormal align=center style='text-align:center'>(Registrant's
Telephone Number, Including Area Code)</p>



<p class=MsoNormal>Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.</p>

<p class=MsoNormal>Yes &nbsp;&nbsp;&nbsp;&nbsp; &#254;&nbsp; No &nbsp;&nbsp;&nbsp; o</p>



<p class=MsoNormal>Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company, as defined in Rule&nbsp;12b-2 of the Exchange Act<a
name="v122293_10q_htm_bm_______"></a> .</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='height:15.45pt'>
  <td width=356 style='width:266.85pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal style='margin-left:.55in'>Large accelerated filer o</p>
  </td>
  <td width=106 style='width:79.85pt;padding:0in 0in 0in 0in;height:15.45pt'>

  </td>
  <td width=258 style='width:193.25pt;padding:0in 0in 0in 0in;height:15.45pt'>
  <p class=MsoNormal>Accelerated filer&nbsp;&nbsp; o&nbsp;</p>
  </td>
 </tr>
 <tr style='height:16.65pt'>
  <td width=356 style='width:266.85pt;padding:0in 0in 0in 0in;height:16.65pt'>
  <p class=MsoNormal style='margin-left:.55in'>Non-accelerated filer o</p>
  </td>
  <td width=106 style='width:79.85pt;padding:0in 0in 0in 0in;height:16.65pt'>

  </td>
  <td width=258 style='width:193.25pt;padding:0in 0in 0in 0in;height:16.65pt'>
  <p class=MsoNormal>Smaller reporting company&nbsp;&nbsp;&nbsp; &#254;</p>
  </td>
 </tr>
</table>



<p class=MsoNormal>Indicate by check mark whether the registrant is a shell company
(as defined in Rule&nbsp;12b-2 of the Exchange Act).</p>

<p class=MsoNormal>Yes &nbsp; o No &nbsp; &#254;</p>



<p class=MsoNormal>As of February 16, 2010, there were 3,898,559 shares of the Registrant's
common stock, par value $0.001 per share, issued and outstanding.<a name=pgbrk></a></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='line-height:1.0pt'><a name=ftr></a><a name=glftr></a><a
name=pn></a><a name=hdr></a><a name=glhdr></a>&nbsp;</p>







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

<p class=MsoNormal><b>Quarter
Ended December 31, 2009</b></p>



<div align=center>

<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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b><u>INDEX</u></b></p>
  </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'><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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  I - FINANCIAL INFORMATION</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Financial Statements</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Condensed Consolidated Balance Sheets -</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>December 31, 2009
  (unaudited) and September 30, 2009</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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'>3 - 4</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Condensed
  Consolidated Statements of Operations (unaudited)&nbsp; </p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three
  months ended December 31, 2009 and 2008</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>Condensed
  Consolidated Statements of Cash Flow (unaudited) </p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three
  months ended December 31, 2009 and 2008</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Notes
  to Condensed Consolidated Financial Statements</p>
  </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'>7 - 13</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Management's
  Discussion and Analysis of Financial Condition and Results of Operations</p>
  </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'>13 - 20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Quantitative
  and Qualitative Disclosures About Market Risk</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.1in'>Item 4T.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controls
  and Procedures</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  II - OTHER INFORMATION</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><a name="OLE_LINK3">Item 1.</a></p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Legal
  Proceedings</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-5.4pt'>Item 1A.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Risk
  Factors</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Unregistered
  Sales of Equity Securities and Use of Proceeds</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Defaults
  Upon Senior Securities</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Submission
  of Matters to a Vote of Security Holders</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  5.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Other
  Information.</p>
  </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'>20</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  6.</p>
  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exhibits
  </p>
  </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'>21</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;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=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>SIGNATURES</b></p>
  </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'>21</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>CERTIFICATIONS</b></p>
  </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'>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=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </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'>Exhibit 31.2</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </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'>Exhibit 32.1</p>
  </td>
 </tr>
</table>

</div>



<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='margin-bottom:12.0pt;text-align:center'><b>PART I - FINANCIAL
INFORMATION</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt'><b>ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;</b></p>

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

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:1.5pt;border-collapse:collapse'>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'><b>Unaudited</b></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-7.75pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'>December 31,</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:14.95pt;margin-bottom:.0001pt;text-align:center'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:14.95pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CURRENT
  ASSETS:</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>$450,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>$815,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables,
  net of allowance for doubtful</p>
  <p class=MsoNormal style='margin-left:18.85pt'>accounts of $0</p>
  </td>
  <td width=117 valign=bottom style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>136,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=bottom style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>122,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>57,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>32,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>202,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>220,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.25pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>_13,000</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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:19.45pt;text-align:right'><u>___36,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;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=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>858,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>1,225,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>PROPERTY
  AND EQUIPMENT, at cost:</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land
  and building</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>6,598,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>6,596,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold
  improvements</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>4,107,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>4,107,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixtures
  and equipment</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.25pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>_8,446,000</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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:19.45pt;text-align:right'><u>_8,438,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>19,151,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>19,142,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  1.25pt;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=131 valign=top style='width:98.55pt;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=362 valign=top style='width:271.75pt;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=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  1.25pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(12,093,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin:0in;margin-bottom:.0001pt;
  text-align:right'><u>(11,853,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>7,058,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>7,288,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.25pt;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=131 valign=top style='width:98.55pt;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=362 valign=top style='width:271.75pt;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=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.25pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>1,595,000</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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>1,595,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.25pt;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=131 valign=top style='width:98.55pt;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=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>OTHER
  ASSETS:</h3>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.25pt;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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;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=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'>100,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>82,000</p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other assets</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.25pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>_89,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:19.45pt;text-align:right'><u>__64,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.25pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:right'><u>189,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:19.45pt;text-align:right'><u>_146,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=117 valign=top style='width:87.65pt;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=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=362 valign=top style='width:271.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>TOTAL
  ASSETS</p>
  </td>
  <td width=117 valign=top style='width:87.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.25pt;text-align:right'><u>$9,700,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:19.45pt;text-align:right'><u>$10,254,000</u></p>
  </td>
 </tr>
</table>

</div>

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

<div align=center>

<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'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>&nbsp;CURRENT
  LIABILITIES:</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;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=127 valign=top style='width:94.95pt;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=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:17.55pt;margin-bottom:.0001pt;text-indent:-9.0pt'>&nbsp;&nbsp; Current
  maturities of long-term debt, net of</p>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:17.55pt;margin-bottom:.0001pt;text-indent:-9.0pt'>&nbsp;&nbsp; discounts of
  $18,000 and $0 respectively</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin:0in;margin-bottom:.0001pt;
  text-align:right'>$1,012,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin:0in;margin-bottom:.0001pt;
  text-align:right'>$1,027,000</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; Accounts
  payable</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>458,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>355,000</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; Deferred
  income</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>68,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>113,000</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; Other
  accrued liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:7.65pt;text-align:right'><u>___979,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:12.15pt;text-align:right'><u>__930,000</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;&nbsp; Total
  current liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>2,517,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>2,425,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=119 valign=top style='width:89.55pt;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=127 valign=top style='width:94.95pt;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'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>LONG-TERM
  LIABILITIES:</h3>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin: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=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin: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=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:17.55pt;margin-bottom:.0001pt;text-indent:-17.55pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, net of
  current portion</p>
  </td>
  <td width=119 valign=bottom style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin:0in;margin-bottom:.0001pt;
  text-align:right'>2,471,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=bottom style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin:0in;margin-bottom:.0001pt;
  text-align:right'>2,478,000</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; Deferred
  liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-left:7.65pt;text-align:right'><u>___965,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>__973,000</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;&nbsp; Total
  long-term liabilities</p>
  </td>
  <td width=119 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>3,436,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>3,451,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=119 valign=top style='width:89.55pt;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=127 valign=top style='width:94.95pt;padding:0in 5.4pt 0in 5.4pt'>

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

</div>

<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><a name="OLE_LINK2">&nbsp;</a></p>

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

<p class=MsoFooter align=center style='text-align:center'>See accompanying
notes to condensed consolidated financial statements</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='margin-bottom:12.0pt;text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)</b></p>



<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=648
 style='border-collapse:collapse'>
 <tr style='height:16.65pt'>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><b>Unaudited</b></p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'>December 31,</p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.05pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:11.4pt;margin-bottom:.0001pt;text-align:right'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <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>2009</u></h3>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:-.9pt;margin-bottom:0in;
  margin-left:11.4pt;margin-bottom:.0001pt;text-align:center'><u>2009</u></h3>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>

  <h3 style='margin:0in;margin-bottom:.0001pt'>STOCKHOLDERS'
  EQUITY:</h3>
  </td>
  <td width=131 style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Non-controlling
  interest</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>409,000</p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:right'>428,000</p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Preferred
  stock, $.01 par value;</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:.3in;text-indent:-.3in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000,000
  shares authorized, none issued</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and
  outstanding as of September 30, 2009 and</p>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December
  31, 2009</p>
  </td>
  <td width=131 valign=bottom style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=bottom style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Common
  stock, $.001 par value; 50,000,000 shares</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized,
  3,898,559 shares issued and</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; outstanding
  as of September 30, 2009 and</p>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December
  31, 2009</p>
  </td>
  <td width=131 valign=bottom style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
  <td width=19 valign=bottom style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=bottom style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:right'>4,000</p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Capital contributed
  in excess of par value</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;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:-.9pt;margin-bottom:.0001pt;text-align:
  right'>17,773,000</p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  -.9pt;margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:
  right'>17,751,000</p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Accumulated deficit</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;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:-.9pt;margin-bottom:.0001pt;text-align:
  right'><u>(14,439,000)</u></p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  -.9pt;margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:
  right'><u>(13,805,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  stockholders' equity</p>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:12.6pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:right'><u>_3,747,000</u></p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:right'><u>__4,378,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=374 valign=top style='width:280.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>TOTAL
  LIABILITIES AND STOCKHOLDERS' EQUITY</h3>
  </td>
  <td width=131 valign=top style='width:98.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>$9,700,000</u></p>
  </td>
  <td width=19 valign=top style='width:14.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=124 valign=top style='width:93.3pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:2.4pt;margin-bottom:.0001pt;text-align:right'><u>$10,254,000</u></p>
  </td>
 </tr>
</table>

</div>

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

<p class=MsoFooter align=center style='text-align:center'>See accompanying
notes to condensed consolidated financial statements</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='margin-bottom:12.0pt;text-align:center'><b>(Unaudited)</b></p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:.9pt;border-collapse:collapse'>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=256 colspan=3 valign=top style='width:191.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <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>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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=center style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:center'><u>2009</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=118 valign=top style='width:88.35pt;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>2008</u></h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:.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=118 valign=top style='width:88.35pt;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=426 valign=top style='width:319.5pt;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=118 valign=top style='width:88.35pt;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=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>$4,870,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>$5,507,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__113,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__139,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>4,983,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>5,646,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>1,615,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>1,855,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>1,853,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>2,065,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>1,203,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>1,204,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New
  store opening 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:1.35pt;text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>15,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__252,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__311,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>4,923,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>5,450,000</p>
  </td>
 </tr>
 <tr style='height:13.95pt'>
  <td width=426 valign=top style='width:319.5pt;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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt;
  height:13.95pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>489,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>315,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>30,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>40,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__(7,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__(8,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;text-align:right'>(612,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>(640,000)</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
  income (loss) on interest rate swap</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:1.35pt;text-align:right'>10,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>(119,000)</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest
  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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__(80,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>_(41,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>__(70,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>(160,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>($682,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>($800,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <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=118 valign=top style='width:88.35pt;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=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income
  from non-controlling interest </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:1.35pt;text-align:right'>48,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:1.35pt;text-align:right'>34,000</p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>&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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;</u></h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>NET LOSS APPLICABLE TO
  COMMON SHAREHOLDERS</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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>($634,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>($766,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;</u></h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>&nbsp;</u></h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>BASIC
  AND DILUTED LOSS PER COMMON SHARE</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>$___(.16)</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=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:1.35pt;margin-bottom:0in;
  margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>$___(.20)</u></h3>
  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>WEIGHTED
  AVERAGE COMMON SHARES AND EQUIVALENTS USED IN PER SHARE CALCULATION:</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=118 valign=top style='width:88.35pt;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=426 valign=top style='width:319.5pt;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>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=426 valign=top style='width:319.5pt;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-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>3,898,559</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=118 valign=top style='width:88.35pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:1.35pt;
  margin-bottom:0in;margin-left:19.35pt;margin-bottom:.0001pt;text-align:right'><u>3,898,559</u></p>
  </td>
 </tr>
</table>

</div>

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

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=726
 style='margin-left:.9pt;border-collapse:collapse'>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=246 colspan=3 valign=top style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <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>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  <p class=MsoNormal>CASH FLOWS FROM
  OPERATING ACTIVITIES:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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>2009</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=114 valign=top style='width:85.5pt;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>2008</u></h3>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  loss applicable to common shareholders</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>($634,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'>($766,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Adjustments
  to reconcile net loss to net cash</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;
  used in operating activities:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>252,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>311,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization
  of discount on notes payable</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>8,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock
  based compensation expense</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>22,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>19,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
  loss (gain) on interest rate swap</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(10,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>119,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion
  of deferred rent</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling
  interest</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(48,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(34,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognition
  of deferred (gain) on sale of restaurant building</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(8,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in operating assets and liabilities:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)
  decrease in:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <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 width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(39,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>6,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>18,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>25,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <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 width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(28,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>9,000</p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)
  increase in:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>103,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(264,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <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 width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>14,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(90,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash used in operating activities</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(349,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(673,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH FLOWS USED IN
  INVESTING ACTIVITIES</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  for the purchase of property and equipment</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(19,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(215,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Loans
  made to franchisees and to others</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(31,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  received on loans to franchisees and to others</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>5,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>14,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <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 width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(14,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(232,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH FLOWS FROM
  FINANCING ACTIVITIES:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Principal
  payments on notes payable, and long-term debt</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(31,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(30,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  Proceeds (repayments) on revolving lines of credit</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>-</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>320,000</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-9.9pt'>&nbsp;&nbsp;&nbsp;&nbsp; Distributions, net of contributions
  paid to non-controlling interests</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(13,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by (used in) financing activities</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>(2,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>277,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>NET CHANGE IN CASH AND CASH EQUIVALENTS</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(365,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'>(628,000)</p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, beginning of period</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>$815,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:.05in;text-align:right'><u>$1,414,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>CASH AND CASH EQUIVALENTS, end of period</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>$450,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>$786,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>SUPPLEMENTAL
  DISCLOSURES OF CASH FLOW INFORMATION:</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;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=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=480 valign=top style='width:5.0in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Cash
  paid for interest</p>
  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>$72,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=114 valign=top style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><u>$68,000</u></p>
  </td>
 </tr>
</table>

<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:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b>Note 1. Basis of Presentation</b></p>

<p class=MsoBodyText style='margin-right:0in;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, 2009, the results of its operations
and its cash flows for the three month period ended December 31, 2009. Operating
results for the three month period ended December 31, 2009 are not necessarily
indicative of the results that may be expected for the year ending September
30, 2010. The condensed consolidated balance sheet as of September 30, 2009 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-K for the fiscal year ended September 30, 2009.</p>

<p style='margin-top:9.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;
margin-bottom:.0001pt'>Effective October 1, 2009, we adopted new accounting
standards relating to non-controlling interests in consolidated financial
statements. The new accounting guidance established accounting and reporting
standards that require non-controlling interests to be reported as a component
of equity, changes in a parent's ownership interest while the parent retains
its controlling interest to be accounted for as equity transactions, and any
retained non-controlling equity investment upon the deconsolidation of a
subsidiary to be initially measured at fair value. The adoption of this new
accounting guidance primarily resulted in moving the presentation of non-controlling
interest to the &quot;Stockholders' Equity&quot; section of our condensed consolidated
balance sheet. </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><strong>Note
2. Recent Developments</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Effective January 2,
2010 and as reported on Form 8k, the Company entered into an agreement to amend
its loan with PFGI II LLC.&nbsp; The maturity date was extended to December 31,
2012, the interest rate was increased to 8.65% and monthly payments of
principal and interest will be payable beginning January 31, 2010, based upon a
25 year amortization prior to maturity.&nbsp; In connection with the agreement the
Company also issued in January 2010 112,612 warrants exercisable at $1.11. The
fair value of the warrants of $79,000 will be accredited to interest over the
term of the loan.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On August 14, 2009 and
as reported on our Form 10k for the period ending September 31, 2009, we
announced that our Board of Directors has formed a Special Committee comprised
of directors Richard Stark, Alan Teran and Geoff Bailey to explore and evaluate
strategic alternatives aimed at enhancing shareholder value and explore
alternatives to reduce the cost burdens of being a publicly held entity. The
Company has hired Mastodon Ventures, Inc. to provide strategic advisory
services and explore other strategic alternatives that will further the
long-term&nbsp;business prospects of the Company and provide incremental value
to its shareholders.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>There can
be no assurance regarding the timing of or whether the Board will elect to
pursue any of the strategic alternatives it may consider, or that any such
alternatives will result in changes to the Company's plans or will be
consummated and there is no certainty that any&nbsp;strategic alternative will
involve a transaction for shareholders at a share price&nbsp;equal to&nbsp;or
above the current&nbsp;trading&nbsp;price of the Company's shares, bearing in
mind that the trading market for the Company's shares is relatively inactive
and that the Company has&nbsp;realized losses from operations during recent
periods.&nbsp;&nbsp;The Company does not intend to provide updates or make any
further comment until the outcome of the process is determined or until there
are significant developments.&nbsp; We anticipate that we will extend the agreement with
Mastodon Ventures, Inc. beyond the initial six month engagement period.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-autospace:none'>As
reported on Form 8k dated February 3, 2010, the Company entered into a loan
agreement with W Capital, John T. MacDonald and Golden Bridge, LLC
(collectively &quot;the Lender&quot;), pursuant to which the Lender made a loan of
$200,000, with up to an additional $200,000 loan available through April 30,
2010 (the &quot;Loan&quot;), to be used for restaurant marketing and other working
capital uses of GTDT.&nbsp; Eric Reinhard, Ron Goodson, David Grissen, Richard
Stark, and Alan Teran, who are all members of the Company's Board of Directors
and stockholders of the Company, are the sole members of Golden Bridge, LLC.
However, not all members of Golden Bridge, LLC are participating in the Loan.&nbsp;
The Company's obtaining of the Loan from the Lender and related transactions
were duly approved in advance by the Company's Board of Directors by the
affirmative vote of members thereof who did not have an interest in the
transaction.</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-bottom:6.0pt;text-autospace:none'>The Loan
is evidenced by a Convertible Secured Promissory Note dated February 1, 2010
(the &quot;Note&quot;) made by the Company and shall bear interest at a rate of 12% per annum
on the unpaid principal balance through August 1, 2010.&nbsp; The maturity date for
payment of all principal and interest on the Note is December 31, 2010.&nbsp;
However, if and to the extent that any portion of the Note is still outstanding
after August 1, 2010, the interest rate will increase to 14% per annum from and
after August 1, 2010 until the maturity date.&nbsp; All interest accrues through the
maturity date.&nbsp; The Loan Agreement contains customary event of default
provisions and a cross-default provision with respect to the loan agreement for
the Wells Fargo Bank and PFGI II, LLC loans in the event of payment default on
either of those loans.&nbsp; Upon the occurrence and continuance of an event of
default, the Lender may declare all or part of the unpaid principal and accrued
and unpaid interest on the Loan due and payable.&nbsp; Any amounts not paid to the
Lender when due will bear interest from the due date until paid at a rate of
16% per annum.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-autospace:none'>The Loan
Agreement and the Note are subject to the terms of a Leasehold Deed of Trust
Agreement and Security Agreement with respect to certain of GTDT's restaurants
that were not previously pledged as collateral under the Wells Fargo Bank or
PFGI II, LLC borrowings.&nbsp; The Note is convertible into shares of common stock
of the Company (the &quot;Conversion Shares&quot;) at any time prior to repayment at a
conversion price of 25% less than the average price of the Company's common
stock during the 20 days prior to the conversion date, provided however that
the conversion price shall not be below $.75 per share nor above $1.08 per share
(the &quot;Conversion Price&quot;).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-autospace:none'>In
connection with the Loan, the Company issued warrants dated February 1, 2010
(the &quot;Warrants&quot;) to the Lender which provides that the Lender may at any time
from February 1, 2010 until two years from the date of repayment or conversion
of the Loan purchase up to an aggregate of 50,000 shares of the Company's
common stock (the &quot;Warrant Shares&quot;) at an exercise price that is equal to the
Conversion Price calculation above.&nbsp; If the Loan is not repaid prior to August
1, 2010, the Company will issue warrants for the purchase of 50,000 additional
shares of the Company's common stock upon the same terms as the initial
Warrants.&nbsp; The number of Warrant Shares and the exercise price are subject to
customary anti-dilution adjustments upon the occurrence of any stock dividends,
stock splits, reverse stock splits, recapitalizations, reclassifications, stock
combinations or similar events.&nbsp; </p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><strong>Note
3. Debt Covenant Compliance</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As reported on the
form 8-K filed on January 23, 2009, we are in default of certain technical loan
covenants on our note payable to Wells Fargo Bank, N.A. (&quot;the Bank&quot;). Therefore
all amounts owing under this facility are reflected as current in the
accompanying Condensed Consolidated Balance Sheet as of December 31, 2009. We
have never been in payment default on the note and expect to be able to remain
current on payments in fiscal 2010, depending on our sales trends and cash flow
from operations.&nbsp; On February 9, 2009 we received a Reservation of Rights
letter from the Bank formally notifying us of the default of the Earnings
Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) Coverage Ratio of not less
than 1.5 to 1.0 and the Tangible Net Worth of not less than $5,000,000 as set
forth in the Credit Agreement for the period ending December 31, 2008. The
letter serves as notice that notwithstanding the foregoing events of default,
the Bank is reserving all of its rights and remedies under the Credit Agreement
and related agreements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Bank is not
accelerating the Loan at this time and is continuing to accept regularly
scheduled payments of principal and interest under the Loan, however the
acceptance of payments under the Loan does not constitute a modification of the
Credit Agreement or a waiver of any of the covenants or of the Bank's rights or
remedies under the Credit Agreement, including the right to accelerate the loan
in the future after the giving of notice.&nbsp; We will continue to work with the
Bank on a Required Corrective Action for compliance with existing or modified
loan covenants.&nbsp; There can be no assurance that the Bank will agree to modify
or waive any of the loan covenants or waive any of its rights or remedies under
the Credit Agreement and we would require additional financing to repay the
loan balance.&nbsp; The loan is secured by security agreements in the equipment of
four restaurants.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><strong>Note
4. Stock-Based Compensation</strong></p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>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</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=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>intended to predict actual future
events or the value ultimately realized by the employees who receive equity
awards.</p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>Our net loss for the three months
ended December 31, 2009 and December 31, 2008 includes $22,000 and $19,000,
respectively, of compensation costs related to our stock-based compensation
arrangements.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>During the three months ended December 31, 2009, we
granted 12,000 non-statutory stock options and 30,606 incentive stock options
both with exercise prices of $1.15. The per share weighted average fair value was
$.85 for the non-statutory stock option grants and $.84 for the incentive stock
option grants.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>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>

<div align=center>

<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='margin-right:4.5pt;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='margin-right:4.5pt;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 style='margin-right:4.5pt'>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='margin-right:4.5pt;text-align:center'><strong>6.5&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='margin-right:4.5pt;text-align:center'>6.7&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>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='margin-right:4.5pt;text-align:center'><strong>82.4%</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='margin-right:4.5pt;text-align:center'>81.9%</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>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='margin-right:4.5pt;text-align:center'><strong>2.84%</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='margin-right:4.5pt;text-align:center'>2.90%</p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal style='margin-right:4.5pt'>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='margin-right:4.5pt;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='margin-right:4.5pt;text-align:center'>0</p>
  </td>
 </tr>
</table>

</div>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>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:0in;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>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 three months ended December 31, 2009.</p>

<p class=MsoBodyText2 style='margin-top:0in;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>A
summary of stock option activity under our share-based compensation plan for
the three months ended December 31, 2009 is presented in the following table:</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'><a
  name="OLE_LINK1"></a>
  <p class=MsoNormal style='margin-right:4.5pt'><b>&nbsp;</b></p>
  </td>
  <td width=91 valign=bottom style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b><u>Options</u></b></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Weighted Average <u>Exercise
  Price</u></b></p>
  </td>
  <td width=132 valign=bottom style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Weighted Average
  Remaining Contractual</b></p>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b><u>Life (Yrs.)</u></b></p>
  </td>
  <td width=97 valign=bottom style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><b>Aggregate Intrinsic
  <u>Value</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Outstanding-beg of year</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;379,231</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:30.6pt;text-align:right'>$3.55</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Granted</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;42,606</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:30.6pt;text-align:right'>$1.15</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Exercised</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>-</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Forfeited </p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;-</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Expired</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;<u> (24,431)</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:30.6pt;text-align:right'><a
  name="OLE_LINK4"><u>$3.</u></a><u>12</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Outstanding Dec 31, 2009</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>397,406</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:30.6pt;text-align:right'><u>$3.32</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>6.1</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>$0</u></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=91 valign=top style='width:68.0pt;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>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:4.5pt'>Exercisable Dec 31, 2009</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>274,510</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:30.6pt;text-align:right'><u>$3.77</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>4.9</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>$0</u></p>
  </td>
 </tr>
</table>

</div>

<p class=MsoBodyText2 style='margin-top:12.0pt;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>As
of December 31, 2009, the total remaining unrecognized compensation cost
related to unvested stock-based arrangements was $117,000 and is expected to be
recognized over a period of 2.83 years.</p>

<p class=MsoBodyText2 style='margin-top:0in;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'>There
were no stock options exercised during the three months ended December 31, 2009.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:4.3pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><strong>Note 5. Comprehensive Income (Loss)</strong></p>

<p class=MsoNormal style='margin-top:0in;margin-right:4.3pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>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=MsoNormal style='margin-top:0in;margin-right:4.5pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>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 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=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-top:0in;margin-right:4.5pt;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>As of December 31, 2008 and continuing through December
31, 2009 we are in default of certain technical covenants on the underlying
term loan (see note 3 above) and we have therefore recognized an unrealized gain
of $10,000 for the three months ended December 31, 2009 in the accompanying Condensed
Consolidated Statement of Operations. As long as the underlying loan is in
covenant default we will adjust the unrealized gain or loss through the statement
of operations as non-cash income or expense.</p>

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

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We remain
contingently liable on various land leases underlying restaurants that were
previously sold to franchisees.&nbsp; We have never experienced any losses related
to these contingent lease liabilities, however if a franchisee defaults on the
payments under the leases, we would be liable for the lease payments as the
assignor or sublessor of the lease.&nbsp; Currently we have not been notified nor
are we aware of any leases in default by the franchisees, however there can be
no assurance that there will not be in the future which could have a material
effect on our future operating results.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><b>Note
7. Related Party Transactions</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Company entered
into a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;), pursuant to
which Golden Bridge made a loan of $185,000 to the Company.&nbsp; Eric Reinhard, Ron
Goodson, David Grissen, Richard Stark, and Alan Teran, who are all members of
the Company's Board of Directors and stockholders of the Company, are the sole
members of Golden Bridge.&nbsp; Eric Reinhard is the sole manager of Golden Bridge.&nbsp; The Company's and GTDT's obtaining of the Loan
from Golden Bridge and related transactions were duly approved in advance by
the Company's Board of Directors by the affirmative vote of members thereof who
did not have an interest in the transaction.&nbsp;&nbsp; See Item 2, <i>Financing
Transactions</i> below for the terms of the loan.&nbsp; Amounts due to related
parties that are included in notes payable are $185,000 and $0 at December 31,
2009 and 2008, respectively.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
8. Assets Held for Sale</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We have classified
$1,595,000 as assets held for sale in the accompanying condensed consolidated
balance sheet. These costs are related to a site in Firestone, Colorado which has been fully developed.&nbsp;&nbsp; A sale and leaseback agreement that was under
contract in the first quarter of fiscal 2009 was terminated and the restaurant
is being marketed for sale and leaseback.&nbsp; The proceeds of a sale leaseback
transaction, if consummated, are required to be used for the reduction of the
line of credit payable to PFGI II, LLC. The effect on our operating cash flow
is not material as the interest expense on the line of credit is approximately
equal to the proposed rental rate on a sale leaseback transaction.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
9. Impairment of Long-Lived Assets</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We review our
long-lived assets for impairment in accordance with the guidance of FASB ASC
360-10, Property, Plant, and Equipment, including land, property and equipment
whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Recoverability of assets to be held and
used is measured by a comparison of the capitalized costs of the assets to the
future undiscounted net cash flows expected to be generated by the assets and
the expected cash flows are based on recent historical cash flows at the
restaurant level (the lowest level that cash flows can be determined).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>An analysis was
performed on a restaurant by restaurant basis at December 31, 2009. Assumptions
used in preparing expected cash flows were as follows: </p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales projections are as follows: Fiscal 2010 sales are projected to be
down 3-5% with respect to fiscal 2009, for fiscal years 2011 to 2024 we have
used annual increases of 2% to 3%. We believe the 2% to 3% increase in the
years beyond 2010 is a reasonable expectation of growth and that it would be
unreasonable to expect less growth in our sales. These increases include menu
price increases in addition to any real growth. Historically our weighted menu
prices have increased 1.5% to 6% per year.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our variable and semi-variable restaurant operating costs are projected
to increase proportionately with the sales increases as well as increasing an
additional 1.5% per year consistent with inflation.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our other fixed restaurant operating costs are projected to increase 1.5%
to 2% per year.</p>

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

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<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Food and packaging costs are projected to remain flat in relation to our
current fiscal 2009 food and packaging costs as a percentage of sales.</p>

<p class=Style84 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:1.0in;text-align:justify;text-indent:-.25in'>&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Salvage value has been estimated on a restaurant by restaurant basis
considering each restaurant's particular equipment package and building size.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Given the results of
our impairment analysis at December 31, 2009 we did not record any impairment
as their projected undiscounted cash flows show recoverability of their asset
values.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Our impairment
analysis included a sensitivity analysis with regard to the cash flow
projections that determine the recoverability of each restaurant's assets. The
results indicate that even with a 15% decline in our projected cash flows we
would still not have any potential impairment issues.&nbsp; We have experienced
higher than normal food and packaging costs as a percentage of restaurant sales
in recent years and we do not believe these costs will remain at these levels
in future years. However for purposes of our cash flow projections in the asset
impairment analysis we have assumed our food and packaging costs will remain at
these higher levels.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Each time we conduct
an impairment analysis in the future we will compare actual results to our
projections and assumptions, and to the extent our actual results do not meet
expectations, we will revise our assumptions and this could result in
impairment charges being recognized.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>All of the judgments
and assumptions made in preparing the cash flow projections are consistent with
our other financial statement calculations and disclosures. The assumptions
used in the cash flow projections are consistent with other forward-looking
information prepared by the Company, such as those used for internal budgets,
discussions with third parties, and/or reporting to management or the Board of
Directors.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>To date we have not
written down any assets due to impairment, however projecting the cash flows
for the impairment analysis involves significant estimates with regard to the
performance of each restaurant, and it is reasonably possible that the
estimates of cash flows may change in the near term resulting in the need to
write down operating assets to fair value. If the assets are determined to be
impaired, the amount of impairment recognized is the amount by which the
carrying amount of the assets exceeds their fair value. Fair value would be
determined using forecasted cash flows discounted using an estimated average
cost of capital and the impairment charge would be recognized in income from
operations.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><b>Note 10. Fair Value Measurements</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Company adopted
the provisions of FASB ASC 820, Fair Value Measurements and Disclosures,
effective October 1, 2008. FASB ASC 820 defines fair value, establishes a
framework for measuring fair value under generally accepted accounting
principles and enhances disclosures about fair value measurements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Fair value is defined
as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date. Valuation techniques used to measure fair value, as required
by Topic 820 of the FASB ASC, must maximize the use of observable inputs and
minimize the use of unobservable inputs.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>FASB ASC 820 defines
three levels of inputs that may be used to measure fair value and requires that
the assets or liabilities carried at fair value be disclosed by the input level
under which they were valued. The input levels defined under FASB ASC 820 are
as follows:</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Level 1: Quoted
market prices in active markets for identical assets and liabilities.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Level 2: Observable
inputs other than defined in Level 1, such as quoted prices for similar assets
or liabilities; quoted prices in markets that are not active; or other inputs
that are observable or can be corroborated by observable market data for
substantially the full term of the assets or liabilities.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Level 3: Unobservable
inputs that are not corroborated by observable market data.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The following table
summarizes financial assets and liabilities that are measured at fair value on
a recurring basis as of December 31, 2009:</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:67.5pt;text-align:justify'>Level 2</p>

<p class=MsoNormal style='margin-left:67.5pt;text-align:justify'>Interest Rate Swap
liability&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $77,000</p>

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

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

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<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 11. Income Taxes</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify;text-autospace:
none'>We
account for income taxes in accordance with FASB ASC 740, Income Taxes. FASB
ASC 740 prescribes the use of the liability method whereby deferred tax asset
and liability account balances are determined based on differences between the
financial reporting and tax bases of assets and liabilities and are measured using
the enacted tax rates and laws that will be in effect when the differences are
expected to reverse. The Company provides a valuation allowance, if necessary,
to reduce deferred tax assets to their estimated realizable value. The deferred
tax assets are reviewed periodically for recoverability, and valuation
allowances are adjusted as necessary.&nbsp; We believe it is more likely than not
that the recorded deferred tax assets will be realized.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>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='text-align:justify'>The Company is currently not undergoing any
examinations by any taxing jurisdictions, with the tax years for the Fiscal
Years Ending September 30, 2005 through 2009 remaining open to examination.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
12. Non-controlling Interests</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt'>The Company adopted the provisions of FASB <a
name="jump_exp_1"></a>ASC <a name="jump_exp_2"></a>810, Consolidation, effective
October&nbsp;1, 2009. FASB ASC 810 requires non-controlling interests,
previously called minority interests, to be presented as a separate item in the
equity section of the consolidated balance sheet. It also requires the amount
of consolidated net income or loss attributable to non-controlling interests to
be clearly presented on the face of the consolidated income statement.
Additionally, Topic 810 clarifies that changes in a parent's ownership interest
in a subsidiary that do not result in deconsolidation are equity transactions,
and that deconsolidation of a subsidiary requires gain or loss recognition in
net income based on the fair value on the deconsolidation date. Topic 810 was
applied prospectively with the exception of presentation and disclosure
requirements, which were applied retrospectively for all periods presented, and
did not significantly change the presentation of our consolidated financial
statements.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
13. Subsequent Events</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt'>The Company adopted the provisions of FASB
ASC 855, Subsequent Events, effective October&nbsp;1, 2009.&nbsp;&nbsp;FASB ASC
855 establishes the accounting for, and disclosure of, material events that
occur after the balance sheet date but before the financial statements are
issued.&nbsp;&nbsp;In general, these events will be recognized if the condition
existed at the date of the balance sheet, but will not be recognized if the
condition did not exist at the balance sheet date.&nbsp;&nbsp;Disclosure is
required for non-recognized events if required to keep the financial statements
from being misleading. Subsequent events have been evaluated through February 16,
2010, the date our interim financial statements were issued with the filing of
this Quarterly Report on Form 10-Q.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
14. Recent Accounting Pronouncements</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In June 2009, the
FASB issued FASB ASC 105, Generally Accepted Accounting Principles, which
establishes the FASB Accounting Standards Codification as the sole source of
authoritative generally accepted accounting principles. Pursuant to the
provisions of FASB ASC 105, the Company has updated references to GAAP in its
financial statements issued for the period ended December 31, 2009. The
adoption of FASB ASC 105 did not impact the Company's financial position or
results of operations.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In June 2008, the
FASB issued FASB ASC 815-40, Derivatives and Hedging, that provides guidance on
how to determine if certain instruments (or embedded features) are considered
indexed to a company's own stock, including instruments similar to warrants to
purchase the company's stock. FASB ASC 815-40 requires companies to use a
two-step approach to evaluate an instrument's contingent exercise provisions
and settlement provisions in determining whether the instrument is considered
to be indexed to its own stock and therefore exempt from the application of
FASB ASC 815. Although FASB ASC 815-40 was effective for our fiscal year
beginning October 1, 2009, any outstanding instrument at the date of adoption
will require a retrospective application of the accounting through a cumulative
effect adjustment to retained earnings upon adoption. The adoption of FASB ASC 815-40
did not impact the Company's financial position or results of operations. The
requirements of FASB ASC 815-40 will only impact future derivative or hedging
transactions into which we may enter.</p>

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

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</div>



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










<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December 2007, the
FASB issued FASB ASC 805, Business Combinations, which establishes principles
and requirements for how an acquiring entity in a business combination
recognizes and measures the assets acquired and liabilities assumed in the
transaction; establishes the acquisition-date fair value as the measurement
objective for all assets acquired and liabilities assumed; and sets the
disclosure requirements regarding the information needed to evaluate and
understand the nature and financial effect of the business combination.&nbsp; This
accounting pronouncement was effective for our fiscal year beginning October 1,
2009.&nbsp; The adoption of this guidance did not have any impact on the Company's
financial position or results of operations. The requirements of FASB ASC 805
will only impact future business combination transactions into which we may
enter.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>Note
15. Stock Transactions</b></p>

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

<p class=MsoBodyText2><b>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND RESULTS OF OPERATIONS</b></p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>This
Form 10-Q 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-K for the fiscal year
ended September 30, 2009.&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 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.75in;text-indent:-.5in;line-height:normal'>(I)&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:.75in;text-align:justify;text-indent:-.5in'>(II)&nbsp; We may be
negatively impacted if we continue to 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 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;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 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'><i>Restaurant
Locations</i></p>

<p class=MsoBodyText style='margin-right:0in;line-height:normal'>We currently operate and franchise a
total of fifty-one Good Times restaurants, of which forty-seven are in
Colorado, with forty-three 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>



<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width="97%"
 style='width:97.92%;margin-left:5.75pt;border-collapse:collapse;border:none'>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="6%" valign=bottom style='width:6.82%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Total</b></p>
  </td>
  <td width="14%" valign=bottom style='width:14.48%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Denver, CO</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Greater Metro</b></p>
  </td>
  <td width="11%" valign=bottom style='width:11.08%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <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="7%" valign=bottom style='width:7.66%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Idaho</b></p>
  </td>
  <td width="11%" valign=bottom style='width:11.9%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Wyoming</b></p>
  </td>
  <td width="10%" valign=bottom style='width:10.82%;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>North Dakota</b></p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal>Good
  Times co-owned &amp; co-developed</p>
  </td>
  <td width="6%" valign=top style='width:6.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>27</p>
  </td>
  <td width="14%" valign=top style='width:14.48%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>24</p>
  </td>
  <td width="11%" valign=top style='width:11.08%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width="7%" valign=top style='width:7.66%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="11%" valign=top style='width:11.9%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="10%" valign=top style='width:10.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
 </tr>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal>Good
  Times franchised</p>
  </td>
  <td width="6%" valign=top style='width:6.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>16</p>
  </td>
  <td width="14%" valign=top style='width:14.48%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>13</p>
  </td>
  <td width="11%" valign=top style='width:11.08%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width="7%" valign=top style='width:7.66%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width="11%" valign=top style='width:11.9%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="10%" valign=top style='width:10.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
 </tr>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal>Dual
  brand co-owned</p>
  </td>
  <td width="6%" valign=top style='width:6.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width="14%" valign=top style='width:14.48%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width="11%" valign=top style='width:11.08%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="7%" valign=top style='width:7.66%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="11%" valign=top style='width:11.9%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="10%" valign=top style='width:10.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
 </tr>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal>Dual
  brand franchised</p>
  </td>
  <td width="6%" valign=top style='width:6.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>5</p>
  </td>
  <td width="14%" valign=top style='width:14.48%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width="11%" valign=top style='width:11.08%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="7%" valign=top style='width:7.66%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>

  </td>
  <td width="11%" valign=top style='width:11.9%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width="10%" valign=top style='width:10.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign=top style='width:37.24%;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total</b></p>
  </td>
  <td width="6%" valign=top style='width:6.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>51</b></p>
  </td>
  <td width="14%" valign=top style='width:14.48%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>42</b></p>
  </td>
  <td width="11%" valign=top style='width:11.08%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>5</b></p>
  </td>
  <td width="7%" valign=top style='width:7.66%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
  <td width="11%" valign=top style='width:11.9%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2</b></p>
  </td>
  <td width="10%" valign=top style='width:10.82%;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
 </tr>
</table>



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












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


  </td>
  <td width=213 colspan=2 valign=top style='width:159.6pt;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>As of December 31</b></p>
  </td>
 </tr>
 <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>2008</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>2009</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'>21</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'>21</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'>Co-developed 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'>22</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'>21</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>52</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>51</b></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><i>Fiscal 2009:</i> In October 2008 we
opened one new company-owned restaurant in Firestone, Colorado. In December
2008 a Wyoming franchisee terminated their Good Times franchise agreement in
the dual brand concept and has stopped selling Good Times products in one
location.&nbsp; Also in December 2008 a franchisee opened a new dual brand
restaurant in Sheridan, Wyoming.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><i>Fiscal 2010:</i> In October 2009 a
franchisee operating a Good Times restaurant in Thornton, Colorado terminated
their franchise agreement and closed the restaurant.&nbsp; We anticipate that we may
close three low volume franchised restaurants in fiscal 2010. </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;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, 2009 and results for the three months ended December 31, 2008.</p>

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

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
revenues for the three months ended December 31, 2009 decreased $663,000 (11.7%)
to $4,983,000 from $5,646,000 for the three months ended December 31, 2008.&nbsp;
Same store restaurant sales decreased $515,000 (11.4%) during the three months
ended December 31, 2009 for the restaurants that were open for the full periods
ending December 31, 2009 and December 31, 2008.&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 decreased $79,000 due to four company-owned restaurants not included
in same store sales. Three are dual branded restaurants and one opened in
October 2008.&nbsp; Restaurant sales decreased $43,000 due to one non-traditional
company-owned restaurant not included in same store sales.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Our
first quarter same store restaurant sales decline of 11.4% reflects the adverse
impact the macroeconomic environment is having on consumers' discretionary
spending and the proliferation of heavy promotion of $1 value menus and
discounting by competitors.&nbsp; In addition adverse weather in both October and December
2009 had a negative effect on our restaurant sales. October 2009 in Colorado
was the second coldest and fifth snowiest October on record and a late month
snow storm caused the closure of our restaurants for most of one day.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had shown same store sales growth in sixteen consecutive quarters leading into
the third quarter of fiscal 2008. Our outlook for fiscal 2010 remains cautious
as the economic pressures may continue to impact consumer spending and we
anticipate that we will continue to face increased competitive pricing
pressure.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>While
we are implementing several broad product and brand initiatives during fiscal
2010 to improve our core value proposition, we are not planning to implement a
broader $1 menu and our sales may be adversely affected during the economic
recession.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Franchise
revenues decreased $26,000 to $113,000 from $139,000 for the three months ended
December 31, 2008 due to a decrease in franchise royalties of $20,000 and a decrease
in franchise fee income of $6,000. Same store Good Times franchise restaurant
sales decreased 13.7% during the three months ended December 31, 2009 for the
franchise restaurants that were open for the full periods ending December 31,
2009 and December 31, 2008. Dual branded franchise restaurant sales decreased 17.7%
during the three months ended December 31, 2009, compared to the same prior
year period, primarily due to the closure of one restaurant in December 2008.</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Restaurant
operating costs as a percent of restaurant sales were 101.1% during the three
months ended December 31, 2009 compared to 99.0% in the same
prior year period.</p>

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

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

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="78%"
 style='width:78.16%;border-collapse:collapse'>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'><br clear=all style='page-break-before:always'>
  <br clear=all style='page-break-before:always'>

  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended December
  31, 2008</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>99.0%</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Decrease
  in food and packaging costs</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.3in;text-align:left;
  line-height:normal'>(.5%)</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Increase
  in payroll and other employee benefit costs</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>.6%</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Increase
  in occupancy and other operating costs</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>2.8%</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Decrease
  in depreciation and amortization</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>(.5)%</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Decrease
  in opening costs and deferred rent</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>(.3%)</p>
  </td>
 </tr>
 <tr>
  <td width="73%" valign=top style='width:73.4%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:-24.7pt;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended December
  31, 2009</p>
  </td>
  <td width="26%" valign=top style='width:26.6%;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:left;
  line-height:normal'>101.1%</p>
  </td>
 </tr>
</table>

<p class=MsoBodyText align=left style='margin-top:6.0pt;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=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>For the three months
ended December 31, 2009 our food and paper costs, decreased $240,000 to $1,615,000
(33.2% of restaurant sales) from $1,885,000 (33.7% of restaurant sales)
compared to the same prior year period.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>During fiscal 2009 we
experienced a moderation in our food and packaging costs when our weighted food
and packaging costs increased approximately 2%. We took cumulative weighted
menu price increases during fiscal 2009 of approximately 2.6%.&nbsp; We anticipate only
moderate price increases for the balance of fiscal 2010 with more stable
commodity costs.</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009 our payroll and other employee benefit
costs decreased $212,000 to $1,853,000 (38% of restaurant sales) from $2,065,000
(37.5% of restaurant sales) compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
increase in payroll and other employee benefit expenses as a percent of
restaurant sales for the three months ended December 31,
2009 is primarily the result of lower restaurant sales. Because payroll costs are
semi-variable in nature they increase as a percentage of restaurant sales when
there is a decrease in restaurant sales.&nbsp; </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Beginning
in December 2008 we reduced our labor hours allocation through increased
efficiencies and improved our sales per employee hour efficiencies on service
hours, thereby eliminating approximately $190,000 of annual payroll costs. In
addition, beginning in March 2009 we implemented further reductions in our
employee and other benefit costs totaling approximately $300,000 in annual
costs through the restructuring of regional supervision personnel along with
other reductions in fixed employee benefit costs.</p>

<p class=MsoBodyText align=left style='margin-top:6.0pt;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 style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009 our occupancy and other operating
costs increased $1,000 to $1,203,000 (24.7% of restaurant sales) from $1,204,000
(21.9% of restaurant sales) compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
experienced increases in rent, common area maintenance fees, repairs and
maintenance costs, and property taxes compared to the same prior year period
which were offset by decreases in all other operating costs. 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 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Opening
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009 our new store opening costs <a
name="OLE_LINK9">were $0 compared to $15,000 in the same prior year period.</a>&nbsp;
The prior year costs are related to a new company-owned restaurant that opened
in October 2008.</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009, our depreciation and amortization decreased
$59,000 to $252,000 (5.2% of restaurant sales) from $311,000 (5.6% of
restaurant sales) compared to the same prior year period. The decrease in
depreciation and amortization for the three months ended December 31, 2009 is
due to declining depreciation expense in our aging company-owned and
co-developed restaurants.</p>

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

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009, general and administrative costs decreased
$119,000 to $370,000 (7.4% of total revenues) from $489,000 (8.7% of total
revenues) for the same prior year period.&nbsp; </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
decrease in general and administrative costs for the three months ended December
31, 2009 compared to the same prior year period is primarily attributable to decreases
in: 1) payroll and employee benefit costs of $58,000, 2) training and
recruiting expenses of $18,000 and 3) professional services of $37,000. </p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended December 31, 2009 advertising costs decreased $36,000 to
$279,000 (5.7% of restaurant sales) from $315,000 (5.7% of restaurant sales)
for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
decrease in advertising costs for the three month period is primarily due to
the decrease in restaurant sales, as contributions
are made to the advertising materials fund and regional advertising cooperative
based on a percentage of sales. In addition, $9,000 of payroll and employee
benefit costs have been eliminated in the current period due to the retirement
of our Vice President of Marketing in November 2008. We currently have no plans
to fill the position in the immediate future.</p>

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

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.7pt;text-align:justify'>For the three months ended December 31, 2009, franchise
costs decreased $10,000 to $30,000 (.6% of total revenues) from $40,000 (.7% of
total revenues) for the same prior year period.</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:-.7pt;text-align:justify'>The decrease in franchise costs for the three month
period is primarily attributable to a reduction in franchise opening support
costs compared to the same prior year period.</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had a loss from operations of ($612,000) in the three months ended December 31,
2009 compared to a loss from operations of ($640,000) for the same prior year
period. The decrease in loss from operations for the three month period is due
primarily to the decrease 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 style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Net
Loss</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
net loss was ($634,000) for the three months ended December 31, 2009 compared
to a net loss of ($766,000) for the same prior year period. The change from the
three month period ended December 31, 2008 to December 31, 2009 was
attributable to the decrease in loss from operations for the three months ended
December 31, 2009, as well as: 1) an increase in non-controlling interest income
of $14,000 compared to the same prior year period; 2) an increase in net
interest expense of $39,000 compared to the same prior year period; and 3) a
decrease in the unrealized loss related to our interest rate swap liability of
$129,000 compared to the same prior year period.</p>

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

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

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As of December 31,
2009, we had $450,000 in cash and cash equivalents on hand.&nbsp; We currently plan
to use the cash balance and any cash generated from operations for our working
capital needs in fiscal 2010.&nbsp; Subsequent to December 31, 2009 we secured a
short term loan of up to $400,000 to be used as additional working capital (see
&quot;Financing Transactions&quot; below). Additionally, we may contemplate the sale or
sublease of selected underperforming restaurants in fiscal 2010&nbsp; </p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>As of December 31,
2009, we had a working capital deficit of $1,660,000 due primarily to the
entire note payable to Wells Fargo Bank, N.A. of $816,000 shown as a current
liability due to certain loan covenant defaults that existed as of December 31,
2009. We are not in payment default under the note and anticipate remaining
current on all principal and interest payments in fiscal 2010, subject to our
successfully raising additional operating capital.&nbsp; We have received a
Forbearance and Reservation of Rights letter from Wells Fargo Bank stating that
they are accepting current principal and interest payments and are not
currently accelerating the note, subject to agreeing to an acceptable Required
Corrective Action for the covenant defaults.&nbsp; It is unlikely that we will have
an acceptable</p>

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

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<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Required Corrective
Action until our Earnings Before Interest Taxes and Depreciation (&quot;EBITDA&quot;)
improves.&nbsp; If Wells Fargo were to accelerate the note payable, we would need
additional financing and we do not currently have a source for such financing.&nbsp;
Additionally, we have a $77,000 current liability related to the unrealized
loss on our interest rate swap, as described in Note 10 of the Notes to the Condensed
Consolidated Financial Statements above.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Due to the
classification of the entire Wells Fargo note payable as a current liability
and the right of Wells Fargo to accelerate the required payment of the note, we
do not show the ability to fully satisfy our liabilities in the normal course
of business without raising additional capital.&nbsp;&nbsp; It is our objective to
acquire additional operating capital through debt and equity offerings and the
possible sale of existing restaurants with such funds to be used for the
repayment of the Wells Fargo note and to increase our working capital.&nbsp; We
believe we will be successful in raising sufficient additional operating
capital and in restructuring our debt obligations, however there can be no
assurance that we will be successful in raising such additional funds.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December, 2009 we
entered into an agreement to extend the maturity of the PFGI II, LLC loan to
December 31, 2012 and modified the terms of the loan to include a 25 year
amortization period with a balloon payment on December 31, 2012.&nbsp; As a result,
the majority of the PFGI II LLC loan is shown as a long term liability as of December
31, 2009. We anticipate either developing a new restaurant on the land we own
collateralizing the PFGI II loan and reducing the amount of the loan by the
value of the land or selling the property and using the proceeds to reduce the
loan, with estimated net proceeds of $800,000 to $1,000,000.&nbsp; We will continue
to market the other land and building we own that collateralizes the PFGI II loan
for a sale and leaseback as conditions in the sale leaseback market improve and
plan to use the net proceeds to reduce the loan.</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=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>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 5 above). As discussed above we
are in default of certain loan covenants as of December 31, 2009 on this Wells
Fargo note, however we are not currently, and have never been, in payment
default under the note.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In July 2008, we
entered into a $2,500,000 promissory note with an unrelated third party (PFGI II, LLC) and amended that note on April 20, 2009 extending the maturity to July 10, 2010 and
again on December 14, 2009 extending the maturity to December 31, 2012.&nbsp; The
promissory note originally constituted a revolving line-of-credit for the
development of new restaurants which was advanced and repaid on a monthly basis
from time to time.&nbsp; The promissory note now constitutes a term loan with
monthly payments of principal and interest.&nbsp; The loan is secured by separate
leasehold deeds of trust and security agreements related to six company-owned
restaurants and first deeds of trust on two real properties funded by the line
of credit. The total outstanding balance on the line of credit was $2,500,000
at December 31, 2009.&nbsp; Of the $2,500,000 outstanding balance, $1,595,000 is
related to the construction of one company-owned restaurant in Firestone,
Colorado that opened in October 2008. The fully developed restaurant is
currently being marketed in the sale-leaseback market.&nbsp; The remaining balance
is related to the purchase, entitlement and other development fees on a parcel
of land in Aurora, Colorado that will be either developed into a company-owned
restaurant, leased or sold.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On April 20, 2009 as
reported on form 8-K, Good Times Restaurants Inc. (the &quot;Company&quot;) and Good
Times Drive Thru Inc. (&quot;GTDT&quot;), a wholly owned subsidiary of the Company,
entered into a loan agreement with Golden Bridge, LLC (&quot;Golden Bridge&quot;),
pursuant to which Golden Bridge made a loan of $185,000 (the &quot;Golden Bridge
Loan&quot;) to GTDT to be used for restaurant marketing and other working capital
costs.&nbsp; Eric Reinhard, Ron Goodson, David Grissen, Richard Stark, and Alan
Teran, who are all members of the Company's Board of Directors and stockholders
of the Company, are the sole members of Golden Bridge.&nbsp; Eric Reinhard is the
sole manager of Golden Bridge.&nbsp; The Company's and GTDT's obtaining of the
Golden Bridge Loan and related transactions with Golden Bridge were duly
approved in advance by the Company's Board of Directors by the affirmative vote
of members thereof who did not have an interest in the transaction.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Golden Bridge
Loan is evidenced by a promissory note dated April 20, 2009 (the &quot;Golden Bridge
Note&quot;) made by the Company and GTDT, as co-makers, and bears interest at a rate
of 10% per annum on the unpaid principal balance.&nbsp; The Golden Bridge Note
provides for monthly interest payments and will mature and be due and payable
in full on July 10, 2010.&nbsp; The commitment fee for the Golden Bridge Loan is
$3,700.&nbsp; The Golden Bridge Loan</p>

<p class=MsoFooter align=center style='text-align:center'>17</p>

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<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Agreement contains
customary event of default provisions and a cross-default provision with
respect to the loan agreement for the PFGI II, LLC loan (as described above).</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Golden Bridge
Loan Agreement and Note are subject to the terms of an Intercreditor Agreement
dated April 20, 2009 (the &quot;Intercreditor Agreement&quot;), among the Company, GTDT,
Golden Bridge and PFGI II, LLC (&quot;PFGI&quot;).&nbsp; As previously reported by the
Company, GTDT currently has a $2,500,000 revolving line of credit with PFGI
(the &quot;PFGI Loan&quot;), which was scheduled to mature on July 10, 2009, under which
$2,500,000 was outstanding as of April 20, 2009.&nbsp; Under the Intercreditor
Agreement, PFGI and Golden Bridge agreed that, upon any payments of principal
or interest on the Golden Bridge Loan or the PFGI Loan by GTDT, PFGI and Golden
Bridge shall each be entitled to its pro rata share of such payments in the
amount of 93.1% for PFGI and 6.9% for Golden Bridge.&nbsp; The Intercreditor Agreement
also provides that GTDT and the Company may prepay the Golden Bridge Loan in
whole or in part with the prior consent of PFGI, and that any other
indebtedness of the Company or GTDT to PFGI or Golden Bridge shall be
subordinate in payment and lien priority to the Golden Bridge Loan and the PFGI
Loan to the extent of the proceeds of the collateral.&nbsp; Under the Intercreditor
Agreement, all money received from any foreclosure on the collateral securing
the PFGI Loan shall be applied to PFGI and Golden Bridge for their expenses
related to such event and then on a pari passu basis to PFGI and Golden Bridge
in accordance with their respective pro rata shares.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Prior to the closing
of the Golden Bridge Loan, borrowings under the PFGI Loan were secured by
GTDT's leasehold estates and business assets with respect to certain of GTDT's
restaurants located in Boulder, Adams, Jefferson and Larimer counties in
Colorado and first deeds of trust on real property in Arapahoe and Weld
counties in Colorado developed under the PFGI Loan.&nbsp; In connection with PFGI's
entry into the Intercreditor Agreement, GTDT and the Company entered into a
first amendment to the amended and restated promissory note dated April 20,
2009 (the &quot;PFGI Note Amendment&quot;), which extended the maturity date of the PFGI
Loan until July 10, 2010 and eliminated a loan balance threshold for release of
the collateral securing the PFGI Loan.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In connection with
the Golden Bridge Loan, the Company issued a three-year warrant dated April 20,
2009 (the &quot;Warrant&quot;) to Golden Bridge which provides that Golden Bridge may at
any time from April 20, 2009 until April 20, 2012 purchase up to 92,500 shares
of the Company's common stock (the &quot;Warrant Shares&quot;) at an exercise price of
$1.15 per share.&nbsp; The number of Warrant Shares and the exercise price are
subject to customary antidilution adjustments upon the occurrence of any stock
dividends, stock splits, reverse stock splits, recapitalizations,
reclassifications, stock combinations or similar events. The fair value of the
Warrant issued was determined to be $42,000 with the following assumptions: 1)
risk free interest rate of 1.27%, 2) an expected life of 3 years, and 3) an
expected dividend yield of zero. The fair value of $42,000 was charged to the
note discount and credited to Additional Paid in Capital. The note discount
will be amortized over fourteen months and charged to interest expense.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-autospace:none'>On
February 2, 2010, the Company entered into a loan agreement with W Capital,
John T. MacDonald and Golden Bridge, LLC (collectively&nbsp; &quot;the Lender&quot;), pursuant
to which the Lender made a loan of $200,000, with up to an additional $200,000
loan available through April 30, 2010 to be used for restaurant marketing and
other working capital uses.&nbsp; The Loan is evidenced by a Convertible Secured Promissory
Note dated February 1, 2010 (the &quot;Note&quot;) made by the Company and shall bear
interest at a rate of 12% per annum on the unpaid principal balance through
August 1, 2010.&nbsp; The maturity date for payment of all principal and interest on
the Note is December 31, 2010.&nbsp; However, if and to the extent that any portion
of the Note is still outstanding after August 1, 2010, the interest rate will
increase to 14% per annum from and after August 1, 2010 until the maturity
date.&nbsp; All interest accrues through the maturity date.&nbsp; The Loan Agreement
contains customary event of default provisions and a cross-default provision
with respect to the loan agreement for the Wells Fargo Bank and PFGI II, LLC
loans in the event of payment default on either of those loans.&nbsp; Upon the
occurrence and continuance of an event of default, the Lender may declare all
or part of the unpaid principal and accrued and unpaid interest on the Loan due
and payable.&nbsp; Any amounts not paid to the Lender when due will bear interest
from the due date until paid at a rate of 16% per annum.&nbsp; (See &quot;Note 2 - Recent
Developments&quot; above for conversion and warrant features of the loan).The
repayment of the 2009 Golden Bridge Loan and the February 2, 2010 Loan will
require additional equity or debt capital. As described above in Note 2 -
Recent Developments, the Company has hired Mastodon Ventures to seek strategic
alternatives and sources of capital.&nbsp; There can be no assurance that we will be
successful in raising such capital which would require us to renegotiate the
repayment terms of these short term loans.</p>

<p class=MsoFooter align=center style='text-align:center'>18</p>

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<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'>Additional
commitments for the development of new restaurants in fiscal 2010 and beyond will
depend on the Company's sales trends, cash generated from operations and our
access to capital including in the sale-leaseback markets.</p>

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

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We do not have any
plans for any significant capital expenditures for the balance of fiscal 2010,
other than normal recurring capital expenditures for existing restaurants. Additional
commitments for the development of new restaurants in fiscal 2010 and beyond
will depend on the Company's sales trends, cash generated from operations and
our access to additional capital.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'><i>Cash Flows</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in operating activities was $349,000 for the three months ended
December 31, 2009. The net cash used in operating activities for the three
months ended December 31, 2009 was the result of a net loss of ($634,000) as
well as cash and non-cash reconciling items totaling $285,000 (comprised of
depreciation and amortization of $252,000, an unrealized gain of $10,000
related to our interest rate swap liability, non-contolling interest of $48,000,
an accounts payable increase of $103,000 and a net decrease in other operating
assets and liabilities of $12,000).</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 operating activities
was $673,000 for the three months ended December 31, 2008. The net cash used in operating activities for the three months ended December 31, 2008 was
the result of a net loss of ($766,000) as well as cash and non-cash reconciling
items totaling $93,000 (comprised of depreciation and amortization of $311,000,
an unrealized loss of $119,000 related to our interest rate swap liability, non-controlling
interest of $34,000, an accounts payable decrease of $264,000 and a net
decrease in other operating assets and liabilities of $39,000).</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the three months ended December 31, 2009
was $14,000 which reflects payments of $19,000 for miscellaneous restaurant
related capital expenditures and $5,000 in principal payments received on loans
to franchisees.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the three months ended December 31, 2008
was $232,000 which reflects payments of $215,000 for the purchase of property
and equipment (including $194,000 for new store development and $21,000 for
miscellaneous restaurant related capital expenditures), $31,000 in loans made
to franchisees and $14,000 in principal payments received on loans to
franchisees.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in financing activities for the three months ended December 31, 2009
was $2,000, which includes principal payments on notes payable and long term
debt of $31,000 and receivables from non-controlling interests of $29,000.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by financing activities for the three months ended December 31,
2008 was $277,000, which includes principal payments on notes payable and long
term debt of $30,000; an advance on our revolving line of credit of $320,000; and
distributions to non-controlling interests of $13,000.</p>

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

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>We remain
contingently liable on various land leases underlying restaurants that were
previously sold to franchisees.&nbsp; We have never experienced any losses related
to these contingent lease liabilities, however if a franchisee defaults on the
payments under the leases, we would be liable for the lease payments as the
assignor or sublessor of the lease.&nbsp; Currently we have not been notified nor
are we aware of any leases in default under which we are contingently liable,
however there can be no assurance that there will not be in the future, which
could have a material effect on our future operating results.</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
experienced moderation in commodity costs during fiscal 2005 and 2006 and
significant increases in fiscal 2007 and fiscal 2008.&nbsp; State increases in the
minimum wage resulted in an increase in our average hourly wage of $.60 per
employee hour during fiscal 2007, approximately $.23 per employee hour in
fiscal 2008 and $.07 per employee hour in January 2009. We took moderate price
increases during fiscal 2009 and plan for moderate price increases in fiscal
2010, which may or may not be sufficient to recover increased commodity costs
or increases in other operating expenses.</p>

<p class=MsoFooter align=center style='text-align:center'>19</p>

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

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;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-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>ITEM
3.&nbsp;&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:.25in;text-align:left;text-indent:-.25in;
line-height:97%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not
required.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>ITEM
4T.&nbsp; CONTROLS AND PROCEDURES</b></p>

<p class=MsoNormal style='margin-top:6.0pt;text-align:justify;background:white'><b>Conclusion Regarding
the Effectiveness of Disclosure Controls and Procedures </b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Based on an
evaluation of the Company's disclosure controls and procedures (as defined in
Rules&nbsp;13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as
amended), as of the end of the period covered by this report on form 10Q, the
Company's Chief Executive Officer and Controller (its principal executive
officer and principal financial officer, respectively) have concluded that the
Company's disclosure controls and procedures were effective.</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify;background:white'><b>Changes in Internal Control over
Financial Reporting</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify;background:
white'>There
have been no significant changes in the Company's internal control over
financial reporting that occurred during the Company's fiscal quarter ended December&nbsp;31,
2009 that have materially affected, or are reasonably likely to materially
affect, the Company's internal control over financial reporting.</p>

<p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:center;background:white'><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'><b>ITEM 1.&nbsp;&nbsp; LEGAL PROCEEDINGS</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'>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:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b>ITEM 1A. RISK FACTORS</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:.25in;text-align:left;line-height:normal'>Not required.</p>

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'><b>ITEM 2.&nbsp;&nbsp; UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</b></p>

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

<p class=MsoBodyText align=left style='margin-top:6.0pt;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'><b>ITEM 3.&nbsp;&nbsp; DEFAULTS
UPON SENIOR SECURITIES</b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
are in default of certain technical loan covenants as of December 31, 2009 on
our $816,000 note payable to Wells Fargo Bank, N.A. (&quot;the Bank&quot;). We have never
been in payment default on the note. On February 9, 2009 we received a
Reservation of Rights letter from the Bank formally notifying us of the default
of the Earnings Before Interest Taxes and Depreciation (&quot;EBITDA&quot;) Coverage
Ratio of not less than 1.5 to 1.0 and the Tangible Net Worth of not less than
$5,000,000 as set forth in the Credit Agreement for the period ending December
31, 2008. The letter serves as notice that notwithstanding the foregoing events
of default, the Bank is reserving all of its rights and remedies under the
Credit Agreement and related agreements. The Bank is not now accelerating the
Loan and is willing to continue to accept regularly scheduled payments of
principal and interest under the Loan.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><b>ITEM
4.&nbsp;&nbsp; SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</b></p>

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

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

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

<p class=MsoFooter align=center style='text-align:center'>20</p>

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<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'><b>ITEM 6.&nbsp;&nbsp; EXHIBITS</b></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'>*31.2&nbsp;&nbsp;&nbsp;&nbsp; Certification of Controller
pursuant to 18 U.S.C. Section 1350</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:31.7pt'>*32.1&nbsp;&nbsp;&nbsp;&nbsp; Certification
of Chief Executive Officer and Controller pursuant to Section 906</p>

<p class=MsoNormal style='margin-bottom:6.0pt'>*filed herewith</p>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in'><b>SIGNATURES</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 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 16, 2010</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'><u>/s/ Boyd E. Hoback</u></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 style='margin-left:26.1pt'>Boyd E. Hoback</p>
  <p class=MsoHeader style='margin-left:26.1pt'>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'>
  <p class=MsoHeader style='margin-left:.3in'><i>&nbsp;</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=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'><u>/s/ Susan M. Knutson</u></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-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:26.1pt;margin-bottom:.0001pt'>Susan M. Knutson</p>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:26.1pt;margin-bottom:.0001pt'>Controller</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>21</p>

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<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>exhibit311certceo1.htm
<TEXT>
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<head>
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<title>_</title>


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<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>Exhibit 31.1</b></p>

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

<p class=MsoNormal align=center style='text-align:center'><b>RULE 13a-14(a)
CERTIFICATION</b></p>

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

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this quarterly report on Form 10-Q of Good Times Restaurants
Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this 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 report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this 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 report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&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-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&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;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&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</p>



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<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&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;
and</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&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
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; February 16, 2010</p>



<p class=MsoNormal><u>/s/ Boyd E. Hoback</u></p>

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

<p class=MsoNormal>Boyd E. Hoback</p>

<p class=MsoFooter>President and Chief Executive Officer</p>

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>exhibit312certofcontroller1.htm
<TEXT>
<html>

<head>
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<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>_</title>


</head>

<body lang=EN-US>



<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>Exhibit 31.2</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CERTIFICATION OF
THE CONTROLLER</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>RULE 13a-14(a)
CERTIFICATION</b></p>



<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'>I, Susan M. Knutson, certify that:</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this annual report on Form 10-Q of Good Times Restaurants Inc.;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this 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 report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, the financial statements, and other financial information
included in this 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 report;</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>4.&nbsp;&nbsp;&nbsp;&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-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(a)&nbsp;&nbsp;&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;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(c)&nbsp;&nbsp;&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</p>



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

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










<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(d)&nbsp;&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;
and</p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'><a name="OLE_LINK1">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial information; and</a></p>

<p class=MsoNormal style='margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>(b)&nbsp;&nbsp;&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
control over financial reporting.</p>

<p class=MsoNormal>Date:&nbsp; February 16, 2010</p>



<p class=MsoNormal><u>/s/ Susan M. Knutson</u></p>

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

<p class=MsoNormal>Susan M. Knutson</p>

<p class=MsoFooter>Controller</p>

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>4
<FILENAME>exhibit321certceocont1.htm
<TEXT>
<html>

<head>
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<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>_</title>


</head>

<body lang=EN-US>



<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>Exhibit 32.1</b></p>

<p class=titlec align=center style='text-align:center'><b>CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350,</b></p>

<p class=titlec align=center style='text-align:center'><b>AS ADOPTED PURSUANT
TO</b></p>

<p class=titlec align=center style='text-align:center'><b>SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002</b></p>

<p class=bodytext5 style='text-align:justify'>In connection with the Quarterly
Report on Form 10-Q of Good Times Restaurants Inc. (the &quot;Company&quot;) for the period
ended December 31, 2009 as filed with the Securities and Exchange Commission on
the date hereof (the &quot;Report&quot;), I, Boyd E. Hoback, as Chief Executive Officer
of the Company, and Susan M. Knutson, as Controller of the Company, each hereby
certifies, pursuant to and solely for the purpose of 18 U.S.C. 1350, as adopted
pursuant to 906 of the Sarbanes-Oxley Act of 2002, that to the best of my
knowledge and belief:</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(1)&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</p>

<p class=bodytext5 style='margin-left:.5in;text-align:justify;text-indent:-.5in'>(2)&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.</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>/s/ Boyd E. Hoback</i></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><i>/s/ Susan M. Knutson</i></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Boyd E. Hoback</p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Susan M. Knutson</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Chief Executive Officer</p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controller (principal financial officer)</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>February 16, 2010</p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>February 16, 2010</p>
  </td>
 </tr>
</table>



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