As of September 30, 2012, we had $616,000 in cash and
cash equivalents on hand. We currently plan to use the cash
balance and the $1,500,000 proceeds of the preferred stock sale
funded on October 1, 2012, along with any cash generated from
operations, for our working capital needs in fiscal 2013. We
believe that we will have sufficient capital to meet our working
capital, long term debt obligations and recurring capital
expenditure needs in fiscal 2013. Additionally, we may sell
or sublease select underperforming company operated restaurants if
we believe the realizable asset value is greater than the long term
cash flow value or if the asset does not fit our longer term
distribution and location of restaurants.
of September 30, 2012, we had a working capital excess of $847,000.
Because restaurant sales are collected in cash and accounts payable
for food and paper products are paid two to four weeks later,
restaurant companies often operate with working capital deficits.
We anticipate that working capital deficits will be incurred in the
future and may increase as new Good Times restaurants are