<SEC-DOCUMENT>0000825324-14-000026.txt : 20141023
<SEC-HEADER>0000825324-14-000026.hdr.sgml : 20141023
<ACCEPTANCE-DATETIME>20140922151910
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000825324-14-000026
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140922

FILER:

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

	FILING VALUES:
		FORM TYPE:		CORRESP

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

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

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<head><title>Converted by EDGARwiz</title> </head> <body style="MARGIN-TOP:0px; FONT-FAMILY:Times New Roman; COLOR:#000000; FONT-SIZE:10pt"> <div style=WIDTH:624px> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>September 22, 2014</p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify><b>VIA EDGAR</b></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt">Mr. J. Nolan McWilliams</p> <p style="MARGIN:0px; FONT-SIZE:12pt">Attorney-Advisor</p> <p style="MARGIN:0px; FONT-SIZE:12pt">United States Securities and Exchange Commission</p> <p style="MARGIN:0px; FONT-SIZE:12pt">Division of Corporation Finance</p> <p style="MARGIN:0px; FONT-SIZE:12pt">100 F Street, N.E.</p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>Washington, D.C. 20549-3628</p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN-TOP:0px; TEXT-INDENT:48px; WIDTH:96px; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:12pt">Re:</p> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:96px; FONT-SIZE:12pt">Good Times Restaurants Inc.</p> <p style="MARGIN:0px; PADDING-LEFT:96px; CLEAR:left; FONT-SIZE:12pt">Post-Effective Amendment No. 1 on Form S-1</p> <p style="MARGIN:0px; PADDING-LEFT:96px; FONT-SIZE:12pt">Filed September 3, 2014File No. 333-188183</p> <p style="MARGIN:0px; PADDING-LEFT:96px; FONT-SIZE:12pt">&nbsp;</p> <p style="MARGIN-TOP:0px; MARGIN-BOTTOM:8px; FONT-SIZE:12pt">Dear Mr. McWilliams:</p> <p style=MARGIN:0px><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>This letter is on behalf of Good Times Restaurants Inc. (the <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Company,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>we,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>our,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> or <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>us<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>) in response to your comments of September 18, 2014 regarding the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Post-Effective Amendment No. 1 (<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Amendment No. 1<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>) to Registration Statement on Form S-1 that was filed on EDGAR on September 3, 2014 (such Registration Statement, as amended, the <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Registration Statement<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>).</p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify>For convenience of reference, we have set forth your comments in bold below, with the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s response following each comment.</p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify><b><u>Risk Factors, page 6 </u></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify><b><u>Risks Relating to Prior Securities Issuances, page 6 </u></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt" align=justify><b><u>Issuances of our securities are subject to federal and state securities laws, page 6 </u></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN-TOP:0px; WIDTH:48px; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:12pt">1.</p> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; FONT-SIZE:12pt" align=justify><b>Please revise this risk factor and related caption to clarify, if true, that rescission rights described here relate to the sales of shares using a prospectus that did not meet the requirements of Section 10(a)(3) of the Securities Act of 1933<i>.</i></b></p> <p style="MARGIN:0px; CLEAR:left" align=justify><br></p> <p style="TEXT-INDENT:48px; MARGIN:0px; FONT-SIZE:12pt" align=justify>The Company has revised the risk factor and related caption on page 6 to state that the rescission rights described therein relate to sales of shares using a prospectus that did not meet the requirements of Section 10(a)(3) of the Securities Act of 1933.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN-TOP:0px; MARGIN-BOTTOM:-4pt; FONT-SIZE:4pt" /> <p style="MARGIN-TOP:0px; WIDTH:48px; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:12pt">2.</p> <p style="TEXT-INDENT:-2px; MARGIN:0px; PADDING-LEFT:48px; FONT-SIZE:12pt" align=justify><b>Please tell us whether you incurred a contingent liability associated with the rescission rights with respect to sales of the underlying common shares issued upon the exercise of A Warrants. &nbsp;If so, please disclose the amount and provide us your analysis in deriving it. &nbsp;If not, please tell us your basis why it is not necessary.</b></p> <p style="MARGIN:0px; CLEAR:left" align=justify><br></p> <p style="TEXT-INDENT:48px; MARGIN:0px; FONT-SIZE:12pt" align=justify>After reviewing FASB Accounting Standards Codification Topic 450 (<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>ASC 450<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font>) in consultation with the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s independent registered public accounting firm, the Company concluded that while it does have a possible contingent liability associated with the rescission rights with respect to sales of the underlying common shares issued upon the exercise of A Warrants, it is not required to record or report a contingent liability as the Company determined the likelihood of a material loss in connection with such potential rescission claims is remote. </p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:48px; MARGIN:0px; FONT-SIZE:12pt" align=justify>In conducting the above-referenced analysis, the Company first calculated the maximum potential liability associated with the rescission rights. &nbsp;Between May 16, 2014 and August 20, 2014, an aggregate of 484,600 shares of the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s common stock were issued upon exercise of the A Warrants at an exercise price of $2.75. &nbsp;Therefore, the maximum potential liability in connection with such rescission claims would be $1,332,650 plus interest.</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:48px; MARGIN:0px; FONT-SIZE:12pt" align=justify>The Company next considered the likelihood of being required to pay any or all of such amount in respect of rescission claims. &nbsp;In light of several factors, the Company concluded that it is highly unlikely that the Company would receive rescission claims amounting to any meaningful portion of the total potential liability. &nbsp;First, since the Company made public these rescission rights on August 22, 2014, no shareholder has approached the Company to request rescission, suggesting that it will continue to be unlikely that other shareholders would opt to exercise this right. &nbsp;Next, the Company expects that a warrant holder would not exercise its A Warrants (and pay cash to the Company) unless the warrant holder contemplated a prompt sale of the underlying stock. &nbsp;As the share price for the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s common shares traded in excess of the exercise price of the A Warrants at all times between May 21, 2014 (the date of the first exercise of A Warrants after the prospectus no longer met the requirements of Section 10(a)(3) of the Securities Act of 1933) and August 20, 2014, the Company believes that the warrant holders who exercised their A Warrants in that period of time experienced a profit from the exercise and subsequent sale of the underlying common stock. &nbsp;A warrant holder who exercised his warrants and sold the underlying shares for a profit would not have damages. &nbsp;&nbsp;</p> <p style=MARGIN:0px align=justify><br></p> <p style="TEXT-INDENT:48px; MARGIN:0px; FONT-SIZE:12pt" align=justify>In light of the foregoing factors and analysis, the Company concluded that the likelihood of experiencing a material loss in connection with the rescission claims with respect to sales of the underlying common shares issued upon exercise of A Warrants is remote, and therefore, under ASC 450, it is not required to disclose or accrue such event as a contingent liability.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; FONT-SIZE:12pt" align=justify>If you have any additional questions or comments, please feel free to contact me directly at 303-384-1411 (email: bhoback@gtrestaurants.com), or our outside counsel, Joshua Schneiderman of Snell &amp; Wilmer L.L.P. at 213-929-2545 (email: jschneiderman@swlaw.com) with any questions.</p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt">Very truly yours,</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style="MARGIN:0px; FONT-SIZE:12pt"><u>/s/ Boyd Hoback</u></p> <p style="MARGIN:0px; FONT-SIZE:12pt">Boyd Hoback</p> <p style="MARGIN:0px; FONT-SIZE:12pt">President and Chief Executive Officer</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <p style="MARGIN-TOP:0px; WIDTH:48px; MARGIN-BOTTOM:-2px; FLOAT:left; FONT-SIZE:12pt">cc:</p> <p style="TEXT-INDENT:-2px; MARGIN:0px; FONT-SIZE:12pt">Roger Cohen, Snell &amp; Wilmer L.L.P.</p> <p style="TEXT-INDENT:48px; MARGIN:0px; CLEAR:left; FONT-SIZE:12pt">Joshua Schneiderman, Snell &amp; Wilmer L.L.P.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><br><br></p></div></body>
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