0000825324 2014-10-01 2015-09-30 0000825324 us-gaap:EmployeeStockOptionMember 2016-09-28 2017-09-26 0000825324 gtim:NotePayableThreeMember 2017-09-26 0000825324 us-gaap:FranchiseRightsMember 2017-09-26 0000825324 us-gaap:NoncompeteAgreementsMember 2017-09-26 0000825324 gtim:NonStatutoryStockOptionsMember srt:MinimumMember 2016-09-28 2017-09-26 0000825324 gtim:GoodTimesBurgersAndFrozenCustardRestaurantsMember 2016-09-28 2017-09-26 0000825324 gtim:BadDaddysBurgerBarRestaurantMember 2016-09-28 2017-09-26 0000825324 gtim:DeferredTaxAssetLiabilityCurrentMember 2017-09-26 0000825324 gtim:DeferredTaxAssetLiabilityNoncurrentMember 2017-09-26 0000825324 gtim:GoodTimesBurgersAndFrozenCustardRestaurantsMember 2017-09-26 0000825324 gtim:BadDaddysBurgerBarRestaurantMember 2017-09-26 0000825324 us-gaap:CorporateMember 2017-09-26 0000825324 gtim:NonStatutoryStockOptionsMember 2016-09-28 2017-09-26 0000825324 gtim:IncentiveStockOptionMember 2016-09-28 2017-09-26 0000825324 us-gaap:CorporateMember 2016-09-28 2017-09-26 0000825324 2012-09-30 0000825324 gtim:NonStatutoryStockOptionsMember srt:MaximumMember 2016-09-28 2017-09-26 0000825324 2015-10-01 2016-09-27 0000825324 us-gaap:PreferredStockMember 2016-09-27 0000825324 us-gaap:CommonStockMember 2016-09-27 0000825324 us-gaap:AdditionalPaidInCapitalMember 2016-09-27 0000825324 us-gaap:NoncontrollingInterestMember 2016-09-27 0000825324 us-gaap:RetainedEarningsMember 2016-09-27 0000825324 2016-09-27 0000825324 2017-09-26 0000825324 2016-09-28 2017-09-26 0000825324 us-gaap:PreferredStockMember 2017-09-26 0000825324 us-gaap:CommonStockMember 2016-09-28 2017-09-26 0000825324 us-gaap:CommonStockMember 2017-09-26 0000825324 us-gaap:AdditionalPaidInCapitalMember 2016-09-28 2017-09-26 0000825324 us-gaap:AdditionalPaidInCapitalMember 2017-09-26 0000825324 us-gaap:NoncontrollingInterestMember 2016-09-28 2017-09-26 0000825324 us-gaap:NoncontrollingInterestMember 2017-09-26 0000825324 us-gaap:RetainedEarningsMember 2016-09-28 2017-09-26 0000825324 us-gaap:RetainedEarningsMember 2017-09-26 0000825324 us-gaap:TrademarksAndTradeNamesMember 2017-09-26 0000825324 us-gaap:RestrictedStockMember 2016-09-28 2017-09-26 0000825324 us-gaap:RestrictedStockMember 2017-09-26 0000825324 us-gaap:EmployeeStockOptionMember 2017-09-26 0000825324 us-gaap:RestrictedStockMember srt:MinimumMember 2016-09-28 2017-09-26 0000825324 us-gaap:RestrictedStockMember srt:MaximumMember 2016-09-28 2017-09-26 0000825324 us-gaap:RestrictedStockMember srt:MinimumMember 2017-09-26 0000825324 us-gaap:RestrictedStockMember srt:MaximumMember 2017-09-26 0000825324 gtim:GoodTimesDriveThruIncMember 2017-09-26 0000825324 gtim:BadDaddysInternationalLlcMember 2017-09-26 0000825324 gtim:CadenceBankCreditFacilityMember 2017-09-26 0000825324 gtim:IncentiveStockOptionMember srt:MinimumMember 2016-09-28 2017-09-26 0000825324 gtim:IncentiveStockOptionMember srt:MaximumMember 2016-09-28 2017-09-26 0000825324 gtim:CadenceCreditFacilityMember 2017-09-01 2017-09-11 0000825324 2017-09-27 2018-09-25 0000825324 2018-12-06 0000825324 2018-09-25 0000825324 us-gaap:PreferredStockMember 2018-09-25 0000825324 us-gaap:CommonStockMember 2017-09-27 2018-09-25 0000825324 us-gaap:CommonStockMember 2018-09-25 0000825324 us-gaap:AdditionalPaidInCapitalMember 2017-09-27 2018-09-25 0000825324 us-gaap:AdditionalPaidInCapitalMember 2018-09-25 0000825324 us-gaap:NoncontrollingInterestMember 2017-09-27 2018-09-25 0000825324 us-gaap:NoncontrollingInterestMember 2018-09-25 0000825324 us-gaap:RetainedEarningsMember 2017-09-27 2018-09-25 0000825324 us-gaap:RetainedEarningsMember 2018-09-25 0000825324 gtim:FourOfBadDaddysLimitedLiabilityCompaniesMember srt:MinimumMember 2018-09-25 0000825324 gtim:FourOfBadDaddysLimitedLiabilityCompaniesMember srt:MaximumMember 2018-09-25 0000825324 gtim:OneOfBadDaddysLimitedLiabilityCompaniesMember 2018-09-25 0000825324 srt:MinimumMember 2017-09-27 2018-09-25 0000825324 us-gaap:EmployeeStockOptionMember 2017-09-27 2018-09-25 0000825324 gtim:BadDaddysInternationalLlcMember 2018-09-25 0000825324 gtim:GoodTimesDriveThruIncMember 2018-09-25 0000825324 srt:MaximumMember 2017-09-27 2018-09-25 0000825324 us-gaap:FranchiseRightsMember 2018-09-25 0000825324 us-gaap:NoncompeteAgreementsMember 2018-09-25 0000825324 us-gaap:TrademarksAndTradeNamesMember 2018-09-25 0000825324 gtim:CadenceCreditFacilityMember 2018-09-25 0000825324 gtim:CadenceCreditFacilityMember 2017-09-27 2018-09-25 0000825324 gtim:CadenceBankCreditFacilityMember 2018-09-25 0000825324 gtim:NotePayableThreeMember 2018-09-25 0000825324 gtim:NotePayableThreeMember srt:MinimumMember 2018-09-25 0000825324 gtim:NotePayableThreeMember srt:MaximumMember 2018-09-25 0000825324 gtim:DeferredTaxAssetLiabilityCurrentMember 2018-09-25 0000825324 gtim:DeferredTaxAssetLiabilityNoncurrentMember 2018-09-25 0000825324 gtim:NonStatutoryStockOptionsMember srt:MinimumMember 2017-09-27 2018-09-25 0000825324 gtim:NonStatutoryStockOptionsMember srt:MaximumMember 2017-09-27 2018-09-25 0000825324 gtim:NonStatutoryStockOptionsMember 2017-09-27 2018-09-25 0000825324 us-gaap:EmployeeStockOptionMember 2018-09-25 0000825324 us-gaap:EmployeeStockOptionMember 2017-09-27 2018-09-25 0000825324 us-gaap:RestrictedStockMember srt:MinimumMember 2017-09-27 2018-09-25 0000825324 us-gaap:RestrictedStockMember srt:MaximumMember 2017-09-27 2018-09-25 0000825324 us-gaap:RestrictedStockMember 2017-09-27 2018-09-25 0000825324 us-gaap:RestrictedStockMember 2018-09-25 0000825324 us-gaap:RestrictedStockMember srt:MinimumMember 2018-09-25 0000825324 us-gaap:RestrictedStockMember srt:MaximumMember 2018-09-25 0000825324 gtim:GoodTimesDriveThruIncMember 2017-09-27 2018-09-25 0000825324 gtim:BadDaddysInternationalLlcMember 2017-09-27 2018-09-25 0000825324 gtim:GoodTimesDriveThruIncMember 2018-09-25 0000825324 gtim:BadDaddysInternationalLlcMember 2018-09-25 0000825324 gtim:GoodTimesBurgersAndFrozenCustardRestaurantsMember 2017-09-27 2018-09-25 0000825324 gtim:BadDaddysBurgerBarRestaurantMember 2017-09-27 2018-09-25 0000825324 us-gaap:CorporateMember 2017-09-27 2018-09-25 0000825324 gtim:GoodTimesBurgersAndFrozenCustardRestaurantsMember 2018-09-25 0000825324 gtim:BadDaddysBurgerBarRestaurantMember 2018-09-25 0000825324 us-gaap:CorporateMember 2018-09-25 0000825324 gtim:TwoThousandEightEquityIncentiveCompensationPlanMember 2018-09-25 0000825324 gtim:IncentiveStockOptionMember srt:MinimumMember 2017-09-27 2018-09-25 0000825324 gtim:IncentiveStockOptionMember srt:MaximumMember 2017-09-27 2018-09-25 0000825324 gtim:IncentiveStockOptionMember 2017-09-27 2018-09-25 0000825324 2018-03-26 0000825324 us-gaap:ServiceMember 2017-09-27 2018-09-25 0000825324 us-gaap:ServiceMember 2016-09-28 2017-09-26 0000825324 us-gaap:RoyaltyMember 2017-09-27 2018-09-25 0000825324 us-gaap:RoyaltyMember 2016-09-28 2017-09-26 0000825324 gtim:TwoThousandEighteenEquityIncentiveCompensationPlanMember 2018-09-25 0000825324 us-gaap:RestrictedStockMember gtim:TwoThousandEighteenEquityIncentiveCompensationPlanMember 2017-09-27 2018-09-25 0000825324 gtim:ExchangeProgramMember srt:MinimumMember 2017-09-27 2018-09-25 0000825324 gtim:ExchangeProgramMember srt:MaximumMember 2017-09-27 2018-09-25 0000825324 gtim:ExchangeProgramMember 2017-09-27 2018-09-25 0000825324 gtim:ReplacementOptionsMember 2017-09-27 2018-09-25 0000825324 us-gaap:SubsequentEventMember gtim:CadenceCreditFacilityMember 2018-10-31 0000825324 us-gaap:SubsequentEventMember gtim:CadenceCreditFacilityMember 2018-10-02 2018-10-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure 847000 1004000 13000 14000 6066000 6381000 5001000 5002000 21159000 27844000 47105000 57794000 15150000 15150000 15054000 96000 3311000 3774000 6916000 8335000 10953000 15394000 0.01 0.01 -24380000 -25414000 34571000 33983000 12000 58191000 1720000 -22125000 37798000 37284000 12000 58939000 2713000 -24380000 37221000 12000 59385000 3238000 -25414000 55153000 60950000 0 0 12427280 12481162 5000000 5000000 31013000 48067000 79080000 99240000 31460000 67780000 98564000 78395000 676000 685000 2588000 2784000 1694000 1991000 23000 35000 9000 4000 191000 392000 -183000 -389000 650000 1017000 -0.18 -0.08 748000 417000 148000 1161000 -35000 -111000 777000 194000 360000 975000 14513000 10444000 12000 13000 6330000 4337000 3477000 660000 269000 -1605000 -17000 3101000 3951000 0 29000 17000 17000 5339000 7472000 0.001 0.001 3900000 3900000 322000 -1104000 -640000 -1422000 372000 496000 281000 -405000 7061000 22133000 496000 28469000 35245000 5234000 29642000 369000 7002000 7857000 650000 650000 1017000 1017000 382000 635000 1000 1000 1043000 1043000 1425000 1425000 439000 986000 20945000 24948000 46000 32000 58939000 59385000 -2255000 -2255000 -1034000 -1034000 3547000 4452000 9397 9397 9398 61000 35000 5300000 3750000 296000 151000 18636000 22549000 50000000 50000000 12427280 12481162 -1993000 -860000 19397000 19324000 55153000 60950000 41000 92000 0 0 1927000 1397000 26000 1617000 1043000 1425000 240000 207000 12000 12000 636000 653000 216000 157000 2713000 434000 2279000 3238000 377000 2861000 748000 748000 417000 417000 1421000 933000 1413000 1932000 314000 431000 1421000 1421000 933000 933000 0 933000 5614000 7922000 573000 1735000 1221000 10-K false 2018-09-25 2018 FY GTIM Good Times Restaurants Inc. 0000825324 --09-25 No Yes No Non-accelerated Filer 12282625 12427280 12481162 35000 35000 115000 320000 4983000 6504000 -12628000 -9034000 5652000 1670000 0.50 0.58 0.23 365000 342000 P3Y P8Y 796961 784261 28000 25000 116000 15000 131000 131000 116000 15000 58000 12000 70000 96000 81000 15000 58000 3000 61000 35000 35000 3900000 3900000 4031000 4031000 3961000 3935000 15150000 15150000 23000 12000 0.0025 0.039 0.05 0.0025 56000 39000 5356000 5300000 7489000 7450000 17000 7460000 1000 7489000 1551000 2075000 1394000 1516000 602000 861000 55000 83000 2019-01-01 2024-12-31 4755000 5972000 388000 404000 4367000 5568000 6707000 6194000 5721000 5587000 5242000 19936000 49387000 1124000 48263000 859000 1444000 0 0 163992 129381 147655 18274 129025 49491 3.05 3.45 3.55 4.25 3.68 2.70 2.73 7.79 9.17 4.25 103440 97544 60507 P6Y6M P7Y6M P7Y6M P5Y 0.7538 0.7509 0.8070 0.8070 0.0149 0.0149 0.0240 0.0280 0 0 182599 2933 6.76 17.25 P6Y4M24D P5Y3M19D 115039 149614 18493 3.15 8.60 3.15 4.18 0.03 0.50 0.05 122000 201000 4778000 9416000 319000 14513000 10444000 342000 10082000 20000 44476 54000 144655 44485 219000 72000 12320909 12463760 451000 75000 111000 1378000 2264000 4084000 3605000 117000 5301000 128000 4725000 117000 5301000 128000 4725000 117000 1454000 128000 1055000 705000 803000 -24000 134000 119000 78000 1194000 -565000 432000 612000 -68000 -41000 -789000 -299000 126000 63000 11000 12522778 37577171 681922 634647 4.25 3.36 29000 29000 3.15 3.20 2.70 3.55 2.70 3.55 true false false 250000 2253000 5309000 8000 351000 46000 84000 1014000 282000 3.05 3.15 4.18 3.15 8.60 422229 3.24 24900000 30256000 28274000 35653000 5759000 7261000 7084000 9283000 2897000 3705000 71502000 88942000 108000 41000 P19Y 48000 9000000 17000000 7450000 12000000 0.061229 All borrowings under the Cadence Credit Facility bear interest at a variable rate based upon the Company’s election of (i) 3.0% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.125% floor, plus 4.0%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. All borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.250% floor, plus 3.5%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. 197000 2020-12-31 2021-12-31 2500000 2000000 157500 9249000 2601000 4129000 2025 2037 160000 2264000 2264000 2264000 2264000 2034 2038 0.35 0.281 0 1305000 1500000 750000 748000 417000 499605 2.17 2.49 2.08 2.52 1.65 1.95 2.08 P3Y P3Y P3Y P10Y 1.00 1.00 431000 341000 P2Y4M6D P1Y7M6D 0.5371 0.0283 787000 5.35:1 1.25:1 355000 <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">1.</font></td><td><u>Organization and Summary of Significant Accounting Policies:</u></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Organization</u> &#8211; Good Times Restaurants Inc. (Good Times or the Company) is a Nevada corporation. The Company operates through its wholly owned subsidiaries Good Times Drive Thru, Inc. (&#8220;Drive Thru&#8221;), BD of Colorado, LLC (&#8220;BD of Colo&#8221;), Bad Daddy&#8217;s Franchise Development, LLC (&#8220;BDFD&#8221;), and Bad Daddy&#8217;s International, LLC (&#8220;BDI&#8221;).</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Drive Thru commenced operations in 1986 and as of September 25, 2018, operates nineteen Company-owned and seven joint venture drive-thru fast food hamburger restaurants under the name Good Times Burgers &#38; Frozen Custard. Drive Thru&#8217;s restaurants are located in Colorado. In addition, Drive Thru has nine franchises, with seven operating in Colorado and two in Wyoming.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">BD of Colo commenced operations in 2013 and as of September 25, 2018, operates thirteen Company-owned full-service upscale casual dining restaurants under the name Bad Daddy&#8217;s Burger Bar, twelve of which are located in Colorado and one located in Norman, Oklahoma.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">BDI and BDFD were acquired on May 7, 2015. As of September 25, 2018, BDI operates ten Company-owned and eight joint venture full-service upscale casual dining restaurants, also under the name Bad Daddy&#8217;s Burger Bar, thirteen of which are located in North Carolina, three are located in Georgia, and one each are located in Tennessee and South Carolina. BDFD has one franchise operating in South Carolina.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We follow accounting standards set by the Financial Accounting Standards Board, commonly referred to as the &#8220;FASB&#8221;. The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Fiscal Year</u> &#8211; The Company&#8217;s fiscal year is a 52/53-week year ending on the last Tuesday of September. In a 52-week fiscal year, each of the Company&#8217;s quarterly periods comprise 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Fiscal year 2018 began September 27, 2017 and ended September 25, 2018; fiscal year 2017 began September 28, 2016 and ended September 26, 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Principles of Consolidation</u> &#8211; The consolidated financial statements include the accounts of Good Times, its subsidiaries, one limited partnership in which the Company exercises control as general partner, and eight limited liability companies, in which the Company exercises control as managing member. The Company owns an approximate 54% interest in the Drive Thru limited partnership, is the sole general partner, and receives a management fee prior to any distributions to the limited partner. Because the Company owns an approximate 54% interest in the partnership and exercises complete management control over all decisions for the partnership, except for certain veto rights, the financial statements of the partnership are consolidated into the Company&#8217;s financial statements. The Company owns an approximate 50% to 58% interest in seven of the Bad Daddy&#8217;s limited liability companies and a 23% interest in one. The Company is the managing member and receives a royalty fee and management fee prior to any distributions to the other members. Because the Company exercises complete management control over all decisions for the eight companies, except for certain veto rights, the financial statements of the limited liability companies are consolidated into the Company&#8217;s financial statements. The equity interests of the unrelated limited partner and members are shown on the accompanying consolidated balance sheet in the stockholders&#8217; equity section as a non-controlling interest and is adjusted each period to reflect the limited partners&#8217; and members&#8217; share of the net income or loss as well as any cash distributions to the limited partners and members for the period. The limited partners&#8217; or members&#8217; share of the net income or loss in the entities is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated in consolidation.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Advertising Costs</u> &#8211; We utilize Advertising Funds to administer certain advertising programs for both the Good Times and Bad Daddy&#8217;s brands that benefit both us and our franchisees.&#160; Advertising costs are expensed when the related advertising begins. We and our franchisees are required to contribute a percentage of gross sales to the fund.&#160; As the contributions to these funds are designated and segregated for advertising, we act as an agent for the franchisees with regard to these contributions.&#160; We consolidate the Advertising Funds into our financial statements on a net basis, whereby contributions from franchisees, when received, are recorded as offsets to reported advertising expenses.&#160; Contributions to the Advertising Funds from our franchisees were $342,000 and $365,000 for the fiscal years ended September 25, 2018 and September 26, 2017, respectively.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Accounting Estimates</u> &#8211; The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates of and assumptions related to the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Examples include provisions for bad debts and inventory reserves, accounting for business combinations, valuation of reporting units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment, valuation of asset groups for impairment testing, accruals for employee benefits, and certain contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Cash and Cash Equivalents</u> &#8211; The Company considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains cash and cash equivalents at financial institutions with balances that generally exceed the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) insured limits of up to $250,000.&#160; The Company has not experienced any losses related to such accounts and management believes that the Company is not exposed to any significant risks on these accounts.&#160; Certain of the Company&#8217;s accounts exceeded the FDIC insured limits as of September 25, 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Accounts Receivable</u> &#8211; Accounts receivable include uncollateralized receivables from our franchisees, due in the normal course of business, generally requiring payment within thirty days of the invoice date. Additionally, accounts receivable includes payments due from property landlords related to tenant improvement allowances. On a periodic basis the Company monitors all accounts for delinquency and provides for estimated losses of uncollectible accounts. There were no allowances for unrecoverable accounts receivable at September 25, 2018 or September 26, 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Inventories</u> &#8211; Inventories are stated at the lower of cost or market, determined by the first-in first-out method, and consist of restaurant food items and related packaging supplies.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Property and Equipment</u> &#8211; Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the related assets, generally three to eight years. Property and equipment under capital leases are stated at the present value of minimum lease payments and are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the term of the lease or the estimated useful life of the asset.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Assets are classified as held for sale if they meet the criteria outlined in ASC 360, <i>Property, Plant and Equipment</i>. We had classified $1,221,000 of assets as held for sale at September 26, 2017 which are related to an existing Good Times restaurant in Brighton, Colorado. In November 2017 the assets were sold in a sale-leaseback transaction with net proceeds of approximately $1,397,000.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Maintenance and repairs are charged to expense as incurred, and expenditures for major improvements are capitalized. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation with any resulting gain or loss credited or charged to income.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Trademarks</u> &#8211; Trademarks have been determined to have an indefinite life. We evaluate our trademarks for impairment annually and on an interim basis as events and circumstances warrant by comparing the fair value of the trademarks with their carrying amount. No trademark impairment charges were recognized during 2018 or 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Goodwill</u> &#8211; Goodwill represents the excess of cost over fair value of the assets of businesses the Company acquired. Goodwill is not amortized; but rather, the Company is required to test goodwill for impairment on an annual basis or whenever indications of impairment arise. The Company considers its operations to be comprised of two reporting units: (1) Good Times restaurants and (2) Bad Daddy&#8217;s restaurants. As of September 25, 2018, the Company had $96,000 of goodwill associated with the Good Times reporting unit and $15,054,000 of goodwill associated with its Bad Daddy&#8217;s reporting unit. No goodwill impairment charges were recognized during 2018 or 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Impairment of Long-Lived Assets</u> &#8211; We review our long-lived assets including land, property and equipment for impairment when there are factors that indicate that the carrying amount of an asset may not be recoverable. We assess recovery of assets at the individual restaurant level and typically include an analysis of historical cash flows, future operating plans, and cash flow projections in assessing whether there are indicators of impairment. Recoverability of assets to be held and used is measured by comparing the net book value of the assets of an individual restaurant to the fair value of those assets. This impairment process involves significant judgment in the use of estimates and assumptions pertaining to future projections and operating results.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">On January 30, 2018 the Company closed one Good Times restaurant in Aurora, Colorado. A non-cash impairment charge of $219,000 related to this restaurant was previously taken in the fiscal year ended September 26, 2017 and no additional loss from disposal of these assets has been recognized in the current year, nor is any additional loss expected. The Company is currently marketing the property and intends to sublease the property to a suitable tenant over the approximate 17-year remaining term of the lease. The Company expects to be able to sublease this property at or above its contractual lease rate but does not expect such sublease commencement until fiscal 2019. As such, we recorded non-cash rent of approximately $48,000 reflecting the expected fair value of future lease costs, net of sublease income, associated with the closing of this restaurant.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Given the results of our analysis at March 27, 2018, we identified one restaurant where the expected future cash flows would not be sufficient to recover the carrying value of the associated assets. This restaurant, an additional Good Times restaurant in Aurora, Colorado, was closed on April 22, 2018. We recorded a non-cash charge of $72,000 related to the impairment of this restaurant during the quarter ending March 27, 2018. No additional loss from disposal of assets is expected associated with this property. Prior to its closure, on April 6, 2018, the Company entered into a sublease of this property, the terms of which will provide sublease income substantially equal to the lease costs over the approximate five remaining years of the lease.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Sales of Restaurants and Restaurant Equity Interests</u> &#8211; Sales of restaurants or non-controlling equity interests in restaurants developed by the Company are recorded under either the full accrual method or the installment method of accounting. Under the full accrual method, a gain is not recognized until the collectability of the sales price is reasonably assured and the earnings process is virtually complete without further contingencies. When a sale does not meet the requirements for income recognition, the related gain is deferred until those requirements are met. Under the installment method, the gain is incrementally recognized as principal payments on the related notes receivable are collected. If the initial payment is less than specified percentages, use of the installment method is followed.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company accounts for the sale of restaurants when the risks and other incidents of ownership have been transferred to the buyer. Specifically, a) no continuing involvement by the Company exists in restaurants that are sold, b) sales contracts and related income recognition are not dependent on the future successful operations of the sold restaurants, and c) the Company is not involved as a guarantor on the purchasers&#8217; debts.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Deferred Liabilities</u> &#8211; Rent expense is reflected on a straight-line basis over the term of the lease for all leases containing step-ups in base rent. An obligation representing future payments (which totaled $2,253,000 as of September 25, 2018) is reflected in the accompanying consolidated balance sheet as a deferred liability.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Lease incentives are recorded as a deferred liability when received and subsequently credited to rent expense on a straight-line basis over the life of the lease. The balance of the lease incentive obligations at September 25, 2018 was $5,309,000 and is reflected in the accompanying consolidated balance sheet as a deferred liability. Also included in the $7,922,000 deferred and other liabilities balance are other long-term liabilities of $8,000 and a $351,000 deferred gain on the sale of the building and improvements of two Company-owned Good Times restaurants in sale leaseback transactions. The building and improvements were subsequently leased back from the third-party purchaser. The gain will be recognized in future periods in proportion to the rents paid on the twenty-year lease.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Revenue Recognition</u> &#8211;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Restaurant Sales: Revenue from Company restaurant sales is recognized when the food and beverage products are sold and are presented net of sales taxes.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Franchise and Area Development Fees: Individual franchise fee revenue is deferred when received and is recognized as income when the Company has substantially performed all of its obligations under the franchise agreement and the franchisee has commenced operations. The Company&#8217;s commitments and obligations pursuant to the franchise agreements consist of a) development assistance; including site selection, building specifications and equipment purchasing, and b) operating assistance; including training of personnel and preparation and distribution of manuals and operating materials. All of these obligations are effectively complete upon the opening of the restaurant at which time the franchise fee and the portion of any development fee allocable to that restaurant is recognized. There are no additional material commitments or obligations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has not recognized any franchise fees that have not been collected. The Company segregates initial franchise fees from other franchise revenue in the statement of operations. Revenues and costs related to Company-owned restaurants are segregated from revenues and costs related to franchised restaurants in the statement of operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Continuing royalties from franchisees, which are a percentage of the gross sales of franchised operations, are recognized as income when earned. Franchise development expenses, which consist primarily of legal costs and restaurant opening expenses associated with developing and opening franchise restaurants, are expensed against the related franchise fee income.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Preopening Costs</u> &#8211; Restaurant opening costs are expensed as incurred.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Income Taxes</u> &#8211; We account for income taxes under 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. We believe it is more likely than not that the recorded deferred tax assets will be realized.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company is subject to U.S. federal income tax and income tax in multiple U.S state jurisdictions. The Company continues to remain subject to examination by federal authorities and state jurisdictions generally for fiscal years after 2014. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. No accrual for interest and penalties was considered necessary as of September 25, 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Net Income (Loss) Per Common Share</u> &#8211; Basic Earnings per Share is calculated by dividing the income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Options and restricted stock units for 784,261 and 796,961 shares of common stock were not included in computing diluted EPS for the annual periods ending September 25, 2018 and September 26, 2017, respectively, because their effects were anti-dilutive.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Financial Instruments and Concentrations of Credit Risk</u> &#8211; Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk (whether on or off-balance sheet) that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Financial instruments with off-balance-sheet risk to the Company include lease liabilities whereby the Company is contingently liable as a guarantor of certain leases that were assigned to third parties in connection with various sales of restaurants to franchisees (see Note 5).</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Financial instruments potentially subjecting the Company to concentrations of credit risk consist principally of receivables. At September 25, 2018 notes receivable totaled $46,000 and is due from three entities. Additionally, the Company has other current receivables totaling $1,735,000, which includes $84,000 of franchise receivables, $1,014,000 related to lease incentives, $355,000 due from non-controlling interest members, and $282,000 for miscellaneous receivables which are all due in the normal course of business. The Company believes it will collect fully on all notes and receivables.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company purchases most of its restaurant food and paper from two vendors. The Company believes a sufficient number of other suppliers exist from which food and paper could be purchased to prevent any long-term, adverse consequences.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company operates in two industry segments, quick service restaurants and casual dining restaurants. A geographic concentration exists because the Company&#8217;s customers are generally located in Colorado and the Southeast region of the U.S., most significantly in North Carolina.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Stock-Based Compensation</u> &#8211; Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the grant). See Note 7 for additional information.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Variable Interest Entities</u> &#8211; Once an entity is determined to be a variable interest entity (VIE), the party with the controlling financial interest, the primary beneficiary, is required to consolidate it. The Company has three franchisees with notes payable to the Company. These franchisees are VIE&#8217;s; however, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, they are not required to be consolidated.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Fair Value of Financial Instruments </u>&#8211; Fair value, is defined under a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. 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 maximize the use of observable inputs and minimize the use of unobservable inputs.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following three levels of inputs may be used to measure fair value and require that the assets or liabilities carried at fair value are disclosed by the input level under which they were valued.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.83in; text-align: left">Level 1:</td><td style="text-align: justify">Quoted market prices in active markets for identical assets and liabilities.</td> </tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top"> <td style="text-align: left; width: 0.83in">Level 2:</td> <td style="text-align: justify">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.</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top"> <td style="text-align: left; width: 0.83in">Level 3:</td> <td style="text-align: justify">Unobservable inputs that are not corroborated by observable market data.</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Non-controlling Interests</u> - The equity interests of the unrelated limited partners and members are shown on the accompanying consolidated balance sheet in the stockholders&#8217; equity section as a non-controlling interest and is adjusted each period to reflect the limited partners&#8217; and members&#8217; share of the net income or loss as well as any cash distributions or contributions to the limited partners and members for the period. The limited partners&#8217; and members&#8217; share of the net income or loss in the partnership is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Our non-controlling interests consist of one joint venture partnership involving Good Times restaurants and eight joint venture partnerships involving eight Bad Daddy&#8217;s restaurants, including three Bad Daddy&#8217;s restaurants opened during fiscal 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Recent Accounting Pronouncements</u> &#8211;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In March 2016, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2016-09<i>, &#8220;Compensation &#8211; Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting</i>.&#8221; (ASU 2016-09). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The areas for simplification include income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. In May 2017, the FASB issued ASU No. 2017-09, <i>&#8220;Compensation &#8211; Stock Compensation (Topic 718): Scope of Modification Accounting.&#8221;</i> This pronouncement provides clarity in guidance in the instance of a change in the terms or conditions of a share-based payment award. Both pronouncements are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and early adoption is permitted for financial statements that have not been previously issued. The Company adopted both ASUs effective with its 2018 fiscal year; such adoption did not have a material impact on our financial position or results from operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In May 2014, the FASB issued ASU No. 2014-09, <i>&#8220;Revenue from Contracts with Customers (Topic 606).&#8221;</i> This update was issued to replace the current revenue recognition guidance, creating a more comprehensive five-step model. In March 2016, the FASB issued No. ASU 2016-04, &#8220;Liabilities &#8211; Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.&#8221; This pronouncement provides guidance for the derecognition of prepaid stored-value product liabilities, consistent with the breakage guidance in Topic 606. These amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We adopted these ASUs effective as of September 26, 2018. The adoption of these new standards will not have a material impact to our revenue recognition related to Company-owned restaurant sales, recognition of royalty fees from our franchise agreement, or impact from recognition of gift card breakage.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02, <i>&#8220;Leases (Topic 842)&#8221;</i>, (ASU 2016-02), which replaces the existing guidance in Accounting Standard Codification 840, Leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. This pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. Subsequently FASB has issued several other Accounting Standards Updates, including ASU 2018-11 and ASU 2018-12, which among other things provide for a practical expedient related to the recognition of the cumulative effective on retained earnings resulting from the adoption of the pronouncements. We expect to adopt these ASU&#8217;s effective September 25, 2019 and expect that the adoption of these standards will result in a significant increase in our long-term assets and liabilities given we have a significant number of leases.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In January 2017, the FASB issued ASU No. 2017-04, <i>&#8220;Intangibles &#8211; Goodwill and Other (Topic 350) &#8211; Simplifying the Test for Goodwill Impairment,&#8221;</i> which eliminates Step 2 from the impairment test applied to goodwill. Under the new standard, goodwill impairment tests will compare the fair value of a reporting unit with it&#8217;s carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value, not to exceed the total amount of goodwill. This pronouncement is effective for annual and interim periods beginning after December 15, 2019 and should be applied on a prospective basis. We do not expect that the adoption of this standard will have a material impact on our financial position or results from operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-16 <i>&#8220;Intangibles&#8212;Goodwill and Other&#8212;Internal-Use Software (Subtopic 350-40): Customer&#8217;s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,&#8221;</i> which provides guidance for the accounting for implementation costs of hosting arrangements that are considered service contracts. This pronouncement is effective for annual periods beginning after December 15, 2020 and interim periods within annual periods after December 15, 2021. The Company generally believes that its accounting is consistent with the guidance provided within the pronouncement and as such does not believe that the adoption of this pronouncement will have a material impact on our financial position or results from operations.</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in">2.</td><td><u>Goodwill and Intangible Assets:</u></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following table presents goodwill and intangible assets as of September 25, 2018 and September 26, 2017 (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="10" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 25, 2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="10" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 26, 2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Gross</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Accumulated</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amortization</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Net</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Gross</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Accumulated</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amortization</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Net</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; white-space: nowrap">Intangible assets subject to<br /> amortization:</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 10%; text-align: justify; white-space: nowrap; padding-left: 11pt">Franchise rights</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">116</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right; padding-left: 24pt">(81</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">35</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">116</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="text-align: right; padding-left: 24pt; width: 12%">(58</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">58</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; white-space: nowrap; padding-left: 11pt">Non-compete agreements</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">15</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(15</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">15</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">3</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; white-space: nowrap">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">131</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(96</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">35</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">131</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(70</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">61</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; white-space: nowrap">Indefinite-lived intangible<br /> assets:</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; white-space: nowrap; padding-left: 11pt">Trademarks</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; white-space: nowrap; padding-left: 22pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,031</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(96</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,935</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,031</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(70</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,961</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; white-space: nowrap">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; white-space: nowrap">Goodwill</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company had no goodwill impairment losses in the periods presented in the above table.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">There were no impairments to intangible assets during the fiscal years ended September 25, 2018 and September 26, 2017. The aggregate amortization expense related to intangible assets subject to amortization was $25,000 and $28,000 in each of the fiscal years ended September 25, 2018 and September 26, 2017, respectively.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The estimated aggregate future amortization expense as of September 25, 2018 is as follows (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: justify">2019</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right">23</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">2020</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">12</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">3.</font></td><td><u>Debt and Capital Leases</u><font style="text-transform: uppercase">:&#9;</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 0pt">Cadence Bank credit facility</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">7,450</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">5,300</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Notes payable with Ally Financial with payments of principal and interest <br /> (approximately 5%) due monthly. The loans are secured by vehicles.</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">56</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">7,489</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,356</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Less current portion</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(17</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(17</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0pt">Long term portion</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,472</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,339</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Cadence Credit Facility</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">On September 8, 2016, the Company entered into a credit agreement with Cadence Bank (&#8220;Cadence&#8221;) pursuant to which Cadence agreed to loan the Company up to $9,000,000 (the &#8220;Cadence Credit Facility&#8221;). On September 11, 2017, the Cadence Credit Facility was amended to increase the loan maximum to $12,000,000 and extend the maturity date to December 31, 2020 (the &#8220;2017 Amendment&#8221;). As of September 25, 2018, the Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. All borrowings under the Cadence Credit Facility bear interest at a variable rate based upon the Company&#8217;s election of (i) 3.0% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.125% floor, plus 4.0%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. As of September 25, 2018, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 6.1229%.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Cadence Credit Facility contains certain affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, which as of September 25, 2018 include covenants setting a maximum leverage ratio of 5.35:1, a minimum fixed charge coverage ratio of 1.25:1, and minimum liquidity of $2,500,000. As of September 25, 2018, the Company was in compliance with the covenants under the Cadence Credit Facility.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As a result of entering into the Cadence Credit Facility and the 2017 Amendment, the Company paid loan origination costs including professional fees of approximately $197,000 and is amortizing these costs over the term of the credit agreement.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The obligations under the Cadence Credit Facility are collateralized by a first-priority lien on substantially all of the Company&#8217;s assets.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of September 25, 2018, the outstanding balance on borrowings against the facility was $7,450,000.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Availability of the Cadence Credit Facility for borrowings is reduced by the outstanding face value of any letters of credit issued under the facility. As of September 25, 2018, the outstanding face value of such letters of credit was $157,500.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">As of September 25, 2018, principal payments on debt become due as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0 0pt 0.25in"><b><u>Periods Ending September,</u></b></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 35%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: left; padding-left: 13.5pt">2019</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 30%; text-align: right">17</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">2020</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">11</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">2021</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">7,460</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt">2022</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 13.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,489</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As disclosed in Note 10 to these financial statements, the Cadence Credit Facility was amended subsequent to the end of fiscal 2018. This amendment extended the Cadence Credit Facility&#8217;s maturity, which resulted in the principal payments associated with it being due during fiscal 2022 rather than during fiscal 2021 as reflected above.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">Total interest expense on notes payable and capital leases was $392,000 and $191,000 for fiscal 2018 and fiscal 2017, respectively.</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">4.</font></td><td><u>Other Accrued Liabilities</u><font style="text-transform: uppercase">:</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">Other accrued liabilities consist of the following:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 25,<br /> &#160;2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 26,<br /> &#160;2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-left: 0pt">Wages and other employee benefits</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,075</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">1,551</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">Taxes, other than income tax</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,516</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,394</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Other</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">861</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">602</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,452</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,547</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr></table> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">5.</font></td><td><u>Commitments and Contingencies</u><font style="text-transform: uppercase">:</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of September 25, 2018, the Company had total commitments outstanding of $451,000 related to construction contracts for Bad Daddy&#8217;s restaurants currently under development. We anticipate these commitments will be funded out of existing cash or future borrowings against the Cadence Bank credit facility.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company&#8217;s office space and the land and buildings related to the Drive Thru and Bad Daddy&#8217;s restaurant facilities are classified as operating leases and expire over the next 19 years. Some leases contain escalation clauses over the lives of the leases. Most of the leases contain one to three five-year renewal options at the end of the initial term. Certain leases include provisions for additional contingent rent payments if sales volumes exceed specified levels. The Company paid $83,000 and $55,000 in contingent rentals for fiscal 2018 and fiscal 2017, respectively.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Following is a summary of operating lease activity for the fiscal years ended September 25, 2018 and September 26, 2017:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Minimum rentals</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 21%; text-align: right">5,972</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 21%; text-align: right">4,755</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less sublease rentals</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(388</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net rent paid</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,568</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,367</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">As of September 25, 2018, future minimum rental commitments required under the Company&#8217;s operating leases that have initial or remaining non-cancellable lease terms in excess of one year are as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0pt 0pt 0.25in"><b>Years Ending September</b></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; text-align: right">2019</td><td style="width: 6%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 25%; text-align: right">6,707</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2020</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">6,194</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2021</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,721</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2022</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,587</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2023</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,242</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">19,936</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">49,387</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Less sublease rentals</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(1,124</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">48,263</td><td style="text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company is contingently liable on the sublease rentals disclosed above. The subleased and assigned leases expire between 2019 and 2024. In the past the Company has never been required to pay any significant amount in connection with its guarantees. 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 such defaults in the future which could have a material effect on our future operating results.</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">6.</font></td><td><u>Income Taxes</u><font style="text-transform: uppercase">:</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">Deferred tax assets (liabilities) are comprised of the following at the period end:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">2018</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">2017</td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Deferred assets (liabilities):</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Tax effect of net operating loss carry-forward</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">3,605</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">4,084</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">General business credits</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">2,264</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,378</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Partnership/joint venture basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(63</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(126</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred revenue</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">111</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">75</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(1,444</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(859</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Intangibles basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(803</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(705</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other accrued liability and asset difference</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">128</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,055</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">117</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,454</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net deferred tax assets</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">128</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">4,725</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">117</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,301</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance*</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(128</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(4,725</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(117</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(5,301</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net deferred tax assets</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 0.25in">*</td><td>The valuation allowance decreased by $565,000 during the year ended September 25, 2018.</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has net operating loss carry-forwards available for future periods, as discussed below, of approximately $4,129,000 from 2018, $2,601,000 from 2017, and $9,249,000 from 2016 and prior for income tax purposes. The net operating loss carry-forwards from periods prior to 2018 expire between 2025 and 2037. Based on the change in control, which occurred in 2011, the utilization of the loss carry-forwards incurred for periods prior to 2012 is limited to approximately $160,000 per year. The Company has general business tax credits of $2,264,000 from 2015 through 2018 which expire from 2034 through 2038.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. The Company assessed whether a valuation allowance should be recorded against its deferred tax assets based on consideration of all available evidence using a &#8220;more likely than not&#8221; standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company&#8217;s review of this evidence, management determined that a full valuation allowance against all of the Company&#8217;s deferred tax assets was appropriate.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">Total income tax expense for the years ended September 25, 2018 and September 26, 2017 differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 9pt">Total benefit computed by applying statutory federal rate</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(299</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(789</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">State income tax, net of federal tax benefit</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(41</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(68</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 9pt">FICA/WOTC tax credits</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(612</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(432</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Tax Reform Impact</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,305</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">0</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 9pt">Effect of change in valuation allowance</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(565</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,194</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Permanent differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">78</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">119</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">134</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt">Provision for income taxes</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">On December 22, 2017, the Tax Cuts and Jobs Act (&#8220;TCJA&#8221;) was signed into law, significantly impacting several sections of the Internal Revenue Code. The enactment date occurred prior to the end of the second quarter of fiscal 2018 and therefore the federal statutory tax rate changes stipulated by the TCJA were reflected in the second quarter. Effective January 1, 2018, the U.S. corporate federal statutory income tax rate was reduced from 35% to 21%. The Company&#8217;s statutory federal income tax rate is 28.1% for fiscal year 2018 representing a blended tax rate for the current fiscal year based on the number of days in the fiscal year before and after the effective date. For the fiscal year ended September 26, 2017, the Company&#8217;s statutory federal tax rate was 35.0% and will be 21.0% for fiscal year 2019 and thereafter.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expected to be in effect when those deferred taxes would be realized. The Company has assessed a full valuation allowance against the deferred taxes, and therefore applied the 21% tax rate applicable to fiscal years 2019 and beyond. The impact of this remeasurement was tax expense of $1.3 million, exclusive of the assessment of a valuation allowance.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In December 2017, the Securities and Exchange Commission provided guidance allowing registrants to record provisional amounts, during a specified measurement period, when the necessary information is not available, prepared, or analyzed in reasonable detail to account for the impact of the TCJA. Due to the continued determination that a full valuation allowance was appropriate to the Company&#8217;s deferred tax assets and liabilities, these changes were offset by equal and offsetting change in the valuation allowance. As of September 25, 2018, we have completed our analysis of the revaluation of our deferred tax assets and liabilities, the discrete impact of such as identified above. We continue to assess the impacts of the TCJA on future fiscal years and monitor the Internal Revenue Service guidance intended to interpret the most complex provisions of the TCJA.</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in"><font style="text-transform: uppercase">8.</font></td><td><u>Retirement Plan</u><font style="text-transform: uppercase">:</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company sponsors a qualified defined contribution 401(k) plan for employees meeting certain eligibility requirements.&#160;&#160;Under the plan, employees are entitled to make contributions on both a pre-tax basis or on an after-tax basis (Roth Contributions).&#160;In fiscal 2015 the Company modified the plan to include a provision to make a Safe Harbor Matching Contribution to all participating employees.&#160;The Company will match, on a dollar-for-dollar basis, the first 3% of eligible pay contributed by employees. The Company will also match 50% of each dollar contributed between 3% and 5% of eligible pay contributed by employees.&#160;The Company may, at its discretion, make additional contributions to the Plan or change the matching percentage. The Company&#8217;s matching contribution expense in fiscal 2018 and 2017 was $201,000 and $122,000, respectively.&#160; The matching contribution typically is contributed to the plan in the fiscal year subsequent to the year in which the expense is recognized.</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0"></td><td style="width: 0.5in">9.</td><td><u>Segment Reporting:</u></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">All of our Good Times Burgers and Frozen Custard restaurants (Good Times) compete in the quick-service drive-through dining industry while our Bad Daddy&#8217;s Burger Bar restaurants (Bad Daddy&#8217;s) compete in the full-service upscale casual dining industry. We believe that providing this additional financial information for each of our brands will provide a better understanding of our overall operating results. Income (loss) from operations represents revenues less restaurant operating costs and expenses, directly allocable general and administrative expenses, and other restaurant-level expenses directly associated with each brand including depreciation and amortization, pre-opening costs and losses or gains on disposal of property and equipment. Unallocated corporate capital expenditures are presented below as reconciling items to the amounts presented in the consolidated financial statements.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following tables present information about our reportable segments for the respective periods:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">Fiscal Year</td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 3.5pt">Revenues</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; text-align: left; padding-left: 13.5pt">Good Times</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">31,460</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">31,013</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">67,780</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">48,067</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">99,240</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">79,080</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 3.5pt">Income (loss) from operations</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">496</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">322</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">281</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(1,104</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(405</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(640</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">372</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(1,422</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Capital Expenditures</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">342</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">4,778</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">10,082</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">9,416</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">20</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">319</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">10,444</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">14,513</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Property &#38; Equipment, net</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">5,234</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">7,061</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">29,642</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">22,133</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">369</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">496</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">35,245</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">29,690</td><td style="text-align: left">&#160;</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0"></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 0.5in">10.</td><td><u>Subsequent Events:</u></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">On October 31, 2018 the Cadence Credit Facility was amended to increase the loan maximum to $17,000,000, extend the maturity date to December 31, 2021, and modify pricing and covenants under the facility (the &#8220;2019 Amendment&#8221;). As amended by the 2019 Amendment, the Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. All borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company&#8217;s election of (i) 2.5% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.250% floor, plus 3.5%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As amended by the 2019 Amendment, the Cadence Credit Facility contains certain affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum leverage ratio of 5.35:1, a minimum fixed charge coverage ratio of 1.25:1 and minimum liquidity of $2,000,000. Under the 2019 Amendment, there is no longer a 0.25 incurrence test on new borrowings.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company incurred a minimal amount of loan origination costs associated with the amendment.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Organization</u> &#8211; Good Times Restaurants Inc. (Good Times or the Company) is a Nevada corporation. The Company operates through its wholly owned subsidiaries Good Times Drive Thru, Inc. (&#8220;Drive Thru&#8221;), BD of Colorado, LLC (&#8220;BD of Colo&#8221;), Bad Daddy&#8217;s Franchise Development, LLC (&#8220;BDFD&#8221;), and Bad Daddy&#8217;s International, LLC (&#8220;BDI&#8221;).</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Drive Thru commenced operations in 1986 and as of September 25, 2018, operates nineteen Company-owned and seven joint venture drive-thru fast food hamburger restaurants under the name Good Times Burgers &#38; Frozen Custard. Drive Thru&#8217;s restaurants are located in Colorado. In addition, Drive Thru has nine franchises, with seven operating in Colorado and two in Wyoming.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">BD of Colo commenced operations in 2013 and as of September 25, 2018, operates thirteen Company-owned full-service upscale casual dining restaurants under the name Bad Daddy&#8217;s Burger Bar, twelve of which are located in Colorado and one located in Norman, Oklahoma.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">BDI and BDFD were acquired on May 7, 2015. As of September 25, 2018, BDI operates ten Company-owned and eight joint venture full-service upscale casual dining restaurants, also under the name Bad Daddy&#8217;s Burger Bar, thirteen of which are located in North Carolina, three are located in Georgia, and one each are located in Tennessee and South Carolina. BDFD has one franchise operating in South Carolina.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">We follow accounting standards set by the Financial Accounting Standards Board, commonly referred to as the &#8220;FASB&#8221;. The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Fiscal Year</u> &#8211; The Company&#8217;s fiscal year is a 52/53-week year ending on the last Tuesday of September. In a 52-week fiscal year, each of the Company&#8217;s quarterly periods comprise 13 weeks. The additional week in a 53-week fiscal year is added to the fourth quarter, making such quarter consist of 14 weeks.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Fiscal year 2018 began September 27, 2017 and ended September 25, 2018; fiscal year 2017 began September 28, 2016 and ended September 26, 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Principles of Consolidation</u> &#8211; The consolidated financial statements include the accounts of Good Times, its subsidiaries, one limited partnership in which the Company exercises control as general partner, and eight limited liability companies, in which the Company exercises control as managing member. The Company owns an approximate 54% interest in the Drive Thru limited partnership, is the sole general partner, and receives a management fee prior to any distributions to the limited partner. Because the Company owns an approximate 54% interest in the partnership and exercises complete management control over all decisions for the partnership, except for certain veto rights, the financial statements of the partnership are consolidated into the Company&#8217;s financial statements. The Company owns an approximate 50% to 58% interest in seven of the Bad Daddy&#8217;s limited liability companies and a 23% interest in one. The Company is the managing member and receives a royalty fee and management fee prior to any distributions to the other members. Because the Company exercises complete management control over all decisions for the eight companies, except for certain veto rights, the financial statements of the limited liability companies are consolidated into the Company&#8217;s financial statements. The equity interests of the unrelated limited partner and members are shown on the accompanying consolidated balance sheet in the stockholders&#8217; equity section as a non-controlling interest and is adjusted each period to reflect the limited partners&#8217; and members&#8217; share of the net income or loss as well as any cash distributions to the limited partners and members for the period. The limited partners&#8217; or members&#8217; share of the net income or loss in the entities is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated in consolidation.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Advertising Costs</u> &#8211; We utilize Advertising Funds to administer certain advertising programs for both the Good Times and Bad Daddy&#8217;s brands that benefit both us and our franchisees.&#160; Advertising costs are expensed when the related advertising begins. We and our franchisees are required to contribute a percentage of gross sales to the fund.&#160; As the contributions to these funds are designated and segregated for advertising, we act as an agent for the franchisees with regard to these contributions.&#160; We consolidate the Advertising Funds into our financial statements on a net basis, whereby contributions from franchisees, when received, are recorded as offsets to reported advertising expenses.&#160; Contributions to the Advertising Funds from our franchisees were $342,000 and $365,000 for the fiscal years ended September 25, 2018 and September 26, 2017, respectively.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Accounting Estimates</u> &#8211; The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates of and assumptions related to the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Examples include provisions for bad debts and inventory reserves, accounting for business combinations, valuation of reporting units for purposes of assessing goodwill and other indefinite-lived intangible assets for impairment, valuation of asset groups for impairment testing, accruals for employee benefits, and certain contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Cash and Cash Equivalents</u> &#8211; The Company considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. The Company maintains cash and cash equivalents at financial institutions with balances that generally exceed the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) insured limits of up to $250,000.&#160; The Company has not experienced any losses related to such accounts and management believes that the Company is not exposed to any significant risks on these accounts.&#160; Certain of the Company&#8217;s accounts exceeded the FDIC insured limits as of September 25, 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Accounts Receivable</u> &#8211; Accounts receivable include uncollateralized receivables from our franchisees, due in the normal course of business, generally requiring payment within thirty days of the invoice date. Additionally, accounts receivable includes payments due from property landlords related to tenant improvement allowances. On a periodic basis the Company monitors all accounts for delinquency and provides for estimated losses of uncollectible accounts. There were no allowances for unrecoverable accounts receivable at September 25, 2018 or September 26, 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Inventories</u> &#8211; Inventories are stated at the lower of cost or market, determined by the first-in first-out method, and consist of restaurant food items and related packaging supplies.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Property and Equipment</u> &#8211; Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the related assets, generally three to eight years. Property and equipment under capital leases are stated at the present value of minimum lease payments and are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the term of the lease or the estimated useful life of the asset.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Assets are classified as held for sale if they meet the criteria outlined in ASC 360, <i>Property, Plant and Equipment</i>. We had classified $1,221,000 of assets as held for sale at September 26, 2017 which are related to an existing Good Times restaurant in Brighton, Colorado. In November 2017 the assets were sold in a sale-leaseback transaction with net proceeds of approximately $1,397,000.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Maintenance and repairs are charged to expense as incurred, and expenditures for major improvements are capitalized. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation with any resulting gain or loss credited or charged to income.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Trademarks</u> &#8211; Trademarks have been determined to have an indefinite life. We evaluate our trademarks for impairment annually and on an interim basis as events and circumstances warrant by comparing the fair value of the trademarks with their carrying amount. No trademark impairment charges were recognized during 2018 or 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Goodwill</u> &#8211; Goodwill represents the excess of cost over fair value of the assets of businesses the Company acquired. Goodwill is not amortized; but rather, the Company is required to test goodwill for impairment on an annual basis or whenever indications of impairment arise. The Company considers its operations to be comprised of two reporting units: (1) Good Times restaurants and (2) Bad Daddy&#8217;s restaurants. As of September 25, 2018, the Company had $96,000 of goodwill associated with the Good Times reporting unit and $15,054,000 of goodwill associated with its Bad Daddy&#8217;s reporting unit. No goodwill impairment charges were recognized during 2018 or 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Impairment of Long-Lived Assets</u> &#8211; We review our long-lived assets including land, property and equipment for impairment when there are factors that indicate that the carrying amount of an asset may not be recoverable. We assess recovery of assets at the individual restaurant level and typically include an analysis of historical cash flows, future operating plans, and cash flow projections in assessing whether there are indicators of impairment. Recoverability of assets to be held and used is measured by comparing the net book value of the assets of an individual restaurant to the fair value of those assets. This impairment process involves significant judgment in the use of estimates and assumptions pertaining to future projections and operating results.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">On January 30, 2018 the Company closed one Good Times restaurant in Aurora, Colorado. A non-cash impairment charge of $219,000 related to this restaurant was previously taken in the fiscal year ended September 26, 2017 and no additional loss from disposal of these assets has been recognized in the current year, nor is any additional loss expected. The Company is currently marketing the property and intends to sublease the property to a suitable tenant over the approximate 17-year remaining term of the lease. The Company expects to be able to sublease this property at or above its contractual lease rate but does not expect such sublease commencement until fiscal 2019. As such, we recorded non-cash rent of approximately $48,000 reflecting the expected fair value of future lease costs, net of sublease income, associated with the closing of this restaurant.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Given the results of our analysis at March 27, 2018, we identified one restaurant where the expected future cash flows would not be sufficient to recover the carrying value of the associated assets. This restaurant, an additional Good Times restaurant in Aurora, Colorado, was closed on April 22, 2018. We recorded a non-cash charge of $72,000 related to the impairment of this restaurant during the quarter ending March 27, 2018. No additional loss from disposal of assets is expected associated with this property. Prior to its closure, on April 6, 2018, the Company entered into a sublease of this property, the terms of which will provide sublease income substantially equal to the lease costs over the approximate five remaining years of the lease.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Sales of Restaurants and Restaurant Equity Interests</u> &#8211; Sales of restaurants or non-controlling equity interests in restaurants developed by the Company are recorded under either the full accrual method or the installment method of accounting. Under the full accrual method, a gain is not recognized until the collectability of the sales price is reasonably assured and the earnings process is virtually complete without further contingencies. When a sale does not meet the requirements for income recognition, the related gain is deferred until those requirements are met. Under the installment method, the gain is incrementally recognized as principal payments on the related notes receivable are collected. If the initial payment is less than specified percentages, use of the installment method is followed.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company accounts for the sale of restaurants when the risks and other incidents of ownership have been transferred to the buyer. Specifically, a) no continuing involvement by the Company exists in restaurants that are sold, b) sales contracts and related income recognition are not dependent on the future successful operations of the sold restaurants, and c) the Company is not involved as a guarantor on the purchasers&#8217; debts.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Deferred Liabilities</u> &#8211; Rent expense is reflected on a straight-line basis over the term of the lease for all leases containing step-ups in base rent. An obligation representing future payments (which totaled $2,253,000 as of September 25, 2018) is reflected in the accompanying consolidated balance sheet as a deferred liability.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Lease incentives are recorded as a deferred liability when received and subsequently credited to rent expense on a straight-line basis over the life of the lease. The balance of the lease incentive obligations at September 25, 2018 was $5,309,000 and is reflected in the accompanying consolidated balance sheet as a deferred liability. Also included in the $7,922,000 deferred and other liabilities balance are other long-term liabilities of $8,000 and a $351,000 deferred gain on the sale of the building and improvements of two Company-owned Good Times restaurants in sale leaseback transactions. The building and improvements were subsequently leased back from the third-party purchaser. The gain will be recognized in future periods in proportion to the rents paid on the twenty-year lease.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Revenue Recognition</u> &#8211;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Restaurant Sales: Revenue from Company restaurant sales is recognized when the food and beverage products are sold and are presented net of sales taxes.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Franchise and Area Development Fees: Individual franchise fee revenue is deferred when received and is recognized as income when the Company has substantially performed all of its obligations under the franchise agreement and the franchisee has commenced operations. The Company&#8217;s commitments and obligations pursuant to the franchise agreements consist of a) development assistance; including site selection, building specifications and equipment purchasing, and b) operating assistance; including training of personnel and preparation and distribution of manuals and operating materials. All of these obligations are effectively complete upon the opening of the restaurant at which time the franchise fee and the portion of any development fee allocable to that restaurant is recognized. There are no additional material commitments or obligations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has not recognized any franchise fees that have not been collected. The Company segregates initial franchise fees from other franchise revenue in the statement of operations. Revenues and costs related to Company-owned restaurants are segregated from revenues and costs related to franchised restaurants in the statement of operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Continuing royalties from franchisees, which are a percentage of the gross sales of franchised operations, are recognized as income when earned. Franchise development expenses, which consist primarily of legal costs and restaurant opening expenses associated with developing and opening franchise restaurants, are expensed against the related franchise fee income.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Preopening Costs</u> &#8211; Restaurant opening costs are expensed as incurred.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Income Taxes</u> &#8211; We account for income taxes under 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. We believe it is more likely than not that the recorded deferred tax assets will be realized.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company is subject to U.S. federal income tax and income tax in multiple U.S state jurisdictions. The Company continues to remain subject to examination by federal authorities and state jurisdictions generally for fiscal years after 2014. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company's financial condition, results of operations, or cash flows. Therefore, no reserves for uncertain income tax positions have been recorded. The Company's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. No accrual for interest and penalties was considered necessary as of September 25, 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Net Income (Loss) Per Common Share</u> &#8211; Basic Earnings per Share is calculated by dividing the income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Options and restricted stock units for 784,261 and 796,961 shares of common stock were not included in computing diluted EPS for the annual periods ending September 25, 2018 and September 26, 2017, respectively, because their effects were anti-dilutive.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Financial Instruments and Concentrations of Credit Risk</u> &#8211; Credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk (whether on or off-balance sheet) that arise from financial instruments exist for groups of customers or counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Financial instruments with off-balance-sheet risk to the Company include lease liabilities whereby the Company is contingently liable as a guarantor of certain leases that were assigned to third parties in connection with various sales of restaurants to franchisees (see Note 5).</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Financial instruments potentially subjecting the Company to concentrations of credit risk consist principally of receivables. At September 25, 2018 notes receivable totaled $46,000 and is due from three entities. Additionally, the Company has other current receivables totaling $1,735,000, which includes $84,000 of franchise receivables, $1,014,000 related to lease incentives, $355,000 due from non-controlling interest members, and $282,000 for miscellaneous receivables which are all due in the normal course of business. The Company believes it will collect fully on all notes and receivables.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company purchases most of its restaurant food and paper from two vendors. The Company believes a sufficient number of other suppliers exist from which food and paper could be purchased to prevent any long-term, adverse consequences.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company operates in two industry segments, quick service restaurants and casual dining restaurants. A geographic concentration exists because the Company&#8217;s customers are generally located in Colorado and the Southeast region of the U.S., most significantly in North Carolina.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Stock-Based Compensation</u> &#8211; Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the grant). See Note 7 for additional information.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Variable Interest Entities</u> &#8211; Once an entity is determined to be a variable interest entity (VIE), the party with the controlling financial interest, the primary beneficiary, is required to consolidate it. The Company has three franchisees with notes payable to the Company. These franchisees are VIE&#8217;s; however, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, they are not required to be consolidated.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Fair Value of Financial Instruments </u>&#8211; Fair value, is defined under a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. 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 maximize the use of observable inputs and minimize the use of unobservable inputs.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following three levels of inputs may be used to measure fair value and require that the assets or liabilities carried at fair value are disclosed by the input level under which they were valued.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.83in; text-align: left">Level 1:</td><td style="text-align: justify">Quoted market prices in active markets for identical assets and liabilities.</td> </tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top"> <td style="text-align: left; width: 0.83in">Level 2:</td> <td style="text-align: justify">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.</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman; margin-top: 0; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top"> <td style="text-align: left; width: 0.83in">Level 3:</td> <td style="text-align: justify">Unobservable inputs that are not corroborated by observable market data.</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Non-controlling Interests</u> - The equity interests of the unrelated limited partners and members are shown on the accompanying consolidated balance sheet in the stockholders&#8217; equity section as a non-controlling interest and is adjusted each period to reflect the limited partners&#8217; and members&#8217; share of the net income or loss as well as any cash distributions or contributions to the limited partners and members for the period. The limited partners&#8217; and members&#8217; share of the net income or loss in the partnership is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Our non-controlling interests consist of one joint venture partnership involving Good Times restaurants and eight joint venture partnerships involving eight Bad Daddy&#8217;s restaurants, including three Bad Daddy&#8217;s restaurants opened during fiscal 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Recent Accounting Pronouncements</u> &#8211;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In March 2016, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2016-09<i>, &#8220;Compensation &#8211; Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting</i>.&#8221; (ASU 2016-09). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The areas for simplification include income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. In May 2017, the FASB issued ASU No. 2017-09, <i>&#8220;Compensation &#8211; Stock Compensation (Topic 718): Scope of Modification Accounting.&#8221;</i> This pronouncement provides clarity in guidance in the instance of a change in the terms or conditions of a share-based payment award. Both pronouncements are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016 and early adoption is permitted for financial statements that have not been previously issued. The Company adopted both ASUs effective with its 2018 fiscal year; such adoption did not have a material impact on our financial position or results from operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In May 2014, the FASB issued ASU No. 2014-09, <i>&#8220;Revenue from Contracts with Customers (Topic 606).&#8221;</i> This update was issued to replace the current revenue recognition guidance, creating a more comprehensive five-step model. In March 2016, the FASB issued No. ASU 2016-04, &#8220;Liabilities &#8211; Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.&#8221; This pronouncement provides guidance for the derecognition of prepaid stored-value product liabilities, consistent with the breakage guidance in Topic 606. These amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. We adopted these ASUs effective as of September 26, 2018. The adoption of these new standards will not have a material impact to our revenue recognition related to Company-owned restaurant sales, recognition of royalty fees from our franchise agreement, or impact from recognition of gift card breakage.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02, <i>&#8220;Leases (Topic 842)&#8221;</i>, (ASU 2016-02), which replaces the existing guidance in Accounting Standard Codification 840, Leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. This pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. Subsequently FASB has issued several other Accounting Standards Updates, including ASU 2018-11 and ASU 2018-12, which among other things provide for a practical expedient related to the recognition of the cumulative effective on retained earnings resulting from the adoption of the pronouncements. We expect to adopt these ASU&#8217;s effective September 25, 2019 and expect that the adoption of these standards will result in a significant increase in our long-term assets and liabilities given we have a significant number of leases.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In January 2017, the FASB issued ASU No. 2017-04, <i>&#8220;Intangibles &#8211; Goodwill and Other (Topic 350) &#8211; Simplifying the Test for Goodwill Impairment,&#8221;</i> which eliminates Step 2 from the impairment test applied to goodwill. Under the new standard, goodwill impairment tests will compare the fair value of a reporting unit with it&#8217;s carrying amount. An impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value, not to exceed the total amount of goodwill. This pronouncement is effective for annual and interim periods beginning after December 15, 2019 and should be applied on a prospective basis. We do not expect that the adoption of this standard will have a material impact on our financial position or results from operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-16 <i>&#8220;Intangibles&#8212;Goodwill and Other&#8212;Internal-Use Software (Subtopic 350-40): Customer&#8217;s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,&#8221;</i> which provides guidance for the accounting for implementation costs of hosting arrangements that are considered service contracts. This pronouncement is effective for annual periods beginning after December 15, 2020 and interim periods within annual periods after December 15, 2021. The Company generally believes that its accounting is consistent with the guidance provided within the pronouncement and as such does not believe that the adoption of this pronouncement will have a material impact on our financial position or results from operations.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following table presents goodwill and intangible assets as of September 25, 2018 and September 26, 2017 (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="10" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 25, 2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="10" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 26, 2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Gross</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Accumulated</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amortization</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Net</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Gross</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Accumulated</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amortization</u></b></font></td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center"><font style="font: 10pt Times New Roman"><b>Net</b></font><br /> <font style="font: 10pt Times New Roman"><b>Carrying</b></font><br /> <font style="font: 10pt Times New Roman"><b><u>Amount</u></b></font></td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; white-space: nowrap">Intangible assets subject to<br /> amortization:</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 10%; text-align: justify; white-space: nowrap; padding-left: 11pt">Franchise rights</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">116</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right; padding-left: 24pt">(81</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">35</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">116</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="text-align: right; padding-left: 24pt; width: 12%">(58</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">58</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; white-space: nowrap; padding-left: 11pt">Non-compete agreements</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">15</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(15</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">15</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">3</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; white-space: nowrap">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">131</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(96</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">35</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">131</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(70</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">61</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; white-space: nowrap">Indefinite-lived intangible<br /> assets:</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; white-space: nowrap; padding-left: 11pt">Trademarks</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,900</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; white-space: nowrap; padding-left: 22pt">Intangible assets, net</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,031</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(96</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,935</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,031</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(70</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,961</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; white-space: nowrap">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt; white-space: nowrap">Goodwill</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">15,150</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The estimated aggregate future amortization expense as of September 25, 2018 is as follows (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: justify">2019</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right">23</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">2020</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">12</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35</td></tr></table> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td style="white-space: nowrap; text-align: left"></td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 0pt">Cadence Bank credit facility</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">7,450</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">5,300</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Notes payable with Ally Financial with payments of principal and interest <br /> (approximately 5%) due monthly. The loans are secured by vehicles.</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">39</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">56</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">7,489</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,356</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Less current portion</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(17</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(17</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0pt">Long term portion</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,472</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,339</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">As of September 25, 2018, principal payments on debt become due as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0 0pt 0.25in"><b><u>Periods Ending September,</u></b></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 35%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: left; padding-left: 13.5pt">2019</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 30%; text-align: right">17</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">2020</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">11</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">2021</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">7,460</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt">2022</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 13.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,489</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">Other accrued liabilities consist of the following:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 25,<br /> &#160;2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 26,<br /> &#160;2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-left: 0pt">Wages and other employee benefits</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,075</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">1,551</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">Taxes, other than income tax</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,516</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,394</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt">Other</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">861</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">602</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,452</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,547</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Following is a summary of operating lease activity for the fiscal years ended September 25, 2018 and September 26, 2017:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%; text-align: left">Minimum rentals</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 21%; text-align: right">5,972</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 21%; text-align: right">4,755</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less sublease rentals</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(404</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(388</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net rent paid</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">5,568</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,367</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">As of September 25, 2018, future minimum rental commitments required under the Company&#8217;s operating leases that have initial or remaining non-cancellable lease terms in excess of one year are as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0pt 0pt 0.25in"><b>Years Ending September</b></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 40%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; text-align: right">2019</td><td style="width: 6%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 25%; text-align: right">6,707</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2020</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">6,194</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2021</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,721</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2022</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,587</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">2023</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,242</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">19,936</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">49,387</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Less sublease rentals</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(1,124</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">48,263</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">Deferred tax assets (liabilities) are comprised of the following at the period end:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">2018</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">2017</td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Current</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Long-Term</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Deferred assets (liabilities):</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Tax effect of net operating loss carry-forward</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">3,605</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">4,084</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">General business credits</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">2,264</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,378</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Partnership/joint venture basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(63</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(126</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred revenue</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">111</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">75</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(1,444</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(859</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Intangibles basis differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(803</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(705</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other accrued liability and asset difference</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">128</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,055</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">117</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">1,454</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net deferred tax assets</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">128</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">4,725</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">117</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">5,301</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance*</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(128</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(4,725</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(117</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(5,301</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net deferred tax assets</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0"></td><td style="width: 0.25in">*</td><td>The valuation allowance decreased by $565,000 during the year ended September 25, 2018.</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">Total income tax expense for the years ended September 25, 2018 and September 26, 2017 differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income as follows:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-left: 9pt">Total benefit computed by applying statutory federal rate</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(299</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(789</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">State income tax, net of federal tax benefit</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(41</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(68</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 9pt">FICA/WOTC tax credits</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(612</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(432</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Tax Reform Impact</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,305</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">0</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 9pt">Effect of change in valuation allowance</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(565</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">1,194</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 9pt">Permanent differences</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">78</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">119</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 9pt">Other</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">134</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(24</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9pt">Provision for income taxes</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="3" style="white-space: nowrap; font-weight: bold; text-align: center">Incentive and Non-Statutory Stock Options</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="3" style="white-space: nowrap; font-weight: bold; text-align: center">Fiscal Year</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018*</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left; padding-left: 13.5pt">Expected term (years)</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">7.5</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">6.5 to 7.5</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Expected volatility</td><td>&#160;</td> <td style="text-align: center">75.09% to 80.70%</td><td>&#160;</td> <td style="text-align: center">75.38% to 80.70%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Risk-free interest rate</td><td>&#160;</td> <td style="text-align: center">1.49% to 2.80%</td><td>&#160;</td> <td style="text-align: center">1.49% to 2.40%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Expected dividends</td><td>&#160;</td> <td style="text-align: center">0</td><td>&#160;</td> <td style="text-align: center">0</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">*Excluding options issued in the exchange program</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">A summary of the status of non-vested restricted stock as of September 25, 2018 and changes during fiscal 2018 is presented below:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant Date Fair<br /> Value Per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 66%; text-align: left; padding-left: 8pt">Non-vested shares at beg of year</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 15%; text-align: right">115,039</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">$3.15 to $8.60</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 8pt">Granted</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">97,544</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">$2.70 to $3.55</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 8pt">Forfeited</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(18,493</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: center">$3.15 to $8.60</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 8pt">Vested</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(44,476</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: center">$3.15 to $4.18</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 8pt">Non-vested shares at Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">149,614</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">$3.15 to $4.18</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following table summarizes the activity in non-controlling interests during the year ended September 25, 2018 (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Good Times</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Bad Daddy&#8217;s</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Balance at September 26, 2017</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">434</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,279</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,713</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Income</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">382</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">635</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">1,017</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Contributions</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">933</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">933</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Distributions</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(439</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(986</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(1,425</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Balance at September 25, 2018</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">377</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,861</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,238</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following tables present information about our reportable segments for the respective periods:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="6" style="white-space: nowrap; font-weight: bold; text-align: center">Fiscal Year</td><td style="font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 3.5pt">Revenues</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td> <td colspan="2" style="white-space: nowrap; text-align: right">&#160;</td><td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; text-align: left; padding-left: 13.5pt">Good Times</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">31,460</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">31,013</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">67,780</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">48,067</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">99,240</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">79,080</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 3.5pt">Income (loss) from operations</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">496</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">322</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">281</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(1,104</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(405</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">(640</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">372</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">(1,422</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Capital Expenditures</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">342</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">4,778</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">10,082</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">9,416</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">20</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">319</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">10,444</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">14,513</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Property &#38; Equipment, net</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Good Times</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">5,234</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">7,061</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Bad Daddy&#8217;s</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">29,642</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">22,133</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 13.5pt">Corporate</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">369</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1pt solid; text-align: right">496</td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 13.5pt">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">35,245</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">29,690</td><td style="text-align: left">&#160;</td></tr></table> 1300000 <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="width: 0.5in">7.</td><td><u>Stockholders&#8217; Equity</u><font style="text-transform: uppercase">:</font></td></tr></table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Preferred Stock</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has the authority to issue 5,000,000 shares of preferred stock. The Board of Directors has the authority to issue such preferred shares in series and determine the rights and preferences of the shares as may be determined by the Board of Directors.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0"><u>Common Stock</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has the authority to issue 50,000,000 shares of common stock, par value $.001, as of September 25, 2018 there were 12,481,162 shares outstanding.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Stock Plans</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company has an Omnibus Equity Incentive Compensation Plan (the &#8220;2008 Plan&#8221;), approved by shareholders in fiscal 2008, which is the successor equity compensation plan to the Company&#8217;s 2001 Stock Option Plan (the &#8220;2001 Plan&#8221;). Pursuant to stockholder approval in September 2012, February 2014 and February 2016 the total number of shares available for issuance under the 2008 Plan was increased to 1,500,000. The 2008 Plan expired in 2018 and the Company established a new plan, the 2018 Omnibus Equity Incentive Plan (the &#8220;2018 Plan&#8221;), during the third fiscal quarter of 2018, pursuant to shareholder approval. Under the 2018 Plan, the total number of shares available for issuance was set at 750,000 shares. As of September 25, 2018, 499,605 shares were available for future grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and stock-based awards.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The 2018 Plan serves as the successor to our 2008 Plan, as amended (the &#8220;Predecessor Plan&#8221;), and no further awards shall be made under the Predecessor Plan from and after the effective date of the 2018 Plan. All outstanding awards under the Predecessor Plan continue to be governed by the Predecessor Plan, each such award shall continue to be governed solely by the terms and conditions of the instrument evidencing such grant or issuance, and, except as otherwise expressly provided in the 2018 Plan or by the Committee that administers the 2008 and 2018 Plans, no provision of either Plan shall affect or otherwise modify the rights or obligations of holders of such incorporated awards.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite service period (generally the vesting period of the grant). The Company recognizes the impact of forfeitures as forfeitures occur.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The Company recorded $417,000 and $748,000 in total stock option and restricted stock compensation expense during fiscal years 2018 and 2017, respectively, that was classified as general and administrative costs.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0"><u>Stock Option Awards</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0; text-align: justify">The Company measures the compensation cost associated with stock option awards by estimating the fair value of the award as of the grant date using the Black-Scholes 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&#8217;s stock options and stock awards granted during fiscal 2018 and fiscal 2017. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by the employees who receive equity awards.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0; text-align: justify">During the fiscal year ended September 25, 2018, the Company granted a total of 18,274 incentive stock options, from available shares under its 2008 Plan, as amended, with exercise prices between $2.70 and $2.73 and per-share weighted average fair values between $1.65 and $1.95. Additionally, during the fiscal year ended September 25, 2018, the Company granted a total of 129,381 incentive and non-statutory stock options, from available shares under its 2018 Plan, with an exercise prices between $3.55 and $4.25 and a per-share weighted average fair value between $2.08 and $2.52.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Subsequent to receiving stockholder approval, the Company completed a value-for-value stock option exchange program on July&#160;23, 2018 (&#34;Exchange Program&#34;). The Exchange Program was open to all associates of the Company who held qualified and non-qualified stock options with an exercise prices ranging from $7.79 to $9.17 per share (&#34;Eligible Awards&#34;). Pursuant to the Exchange Program, 129,025 stock options were canceled and replaced with 49,491 stock options (&#34;Replacement Options&#34;) at an exercise price equal to the Company's closing stock price on the grant date (July&#160;23, 2018), which was $4.25. The exchange ratio was calculated such that the value of the Replacement Options would approximately equal the value of the canceled Eligible Awards, determined in accordance with the Black-Scholes option valuation model, with no incremental cost incurred by the Company. The estimate of fair value for options granted as part of the Exchange program was $2.08, calculated using an expected volatility of 53.71% and a risk-free interest rate of 2.83%, and a five-year expected term. On the exchange date of July 23, 2018 all of the Eligible Awards were 100% vested and the Replacement Options were issued as 100% vested as of July 23, 2018 with a ten-year exercisable life beginning on the date of grant. The other terms and conditions of each Replacement Option grant are substantially similar to those of the tendered Eligible Awards it replaced. Each Replacement Option was granted under the 2018 Plan. Of the 129,025 tendered Eligible Awards, 129,025 shares were canceled in the 2008 Plan.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0; text-align: justify">During the fiscal year ended September 26, 2017, the Company granted a total of 163,992 incentive stock options, from available shares under its 2008 Plan, as amended, with exercise prices between $3.05 and $3.45 and per-share weighted average fair values between $2.17 and $2.49.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">In addition to the exercise and grant date prices of the stock option awards, certain weighted average assumptions that were used to estimate the fair value of stock option grants are listed in the following table:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="3" style="white-space: nowrap; font-weight: bold; text-align: center">Incentive and Non-Statutory Stock Options</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&#160;</td><td style="font-weight: bold">&#160;</td> <td colspan="3" style="white-space: nowrap; font-weight: bold; text-align: center">Fiscal Year</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018*</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left; padding-left: 13.5pt">Expected term (years)</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">7.5</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">6.5 to 7.5</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Expected volatility</td><td>&#160;</td> <td style="text-align: center">75.09% to 80.70%</td><td>&#160;</td> <td style="text-align: center">75.38% to 80.70%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 13.5pt">Risk-free interest rate</td><td>&#160;</td> <td style="text-align: center">1.49% to 2.80%</td><td>&#160;</td> <td style="text-align: center">1.49% to 2.40%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 13.5pt">Expected dividends</td><td>&#160;</td> <td style="text-align: center">0</td><td>&#160;</td> <td style="text-align: center">0</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">*Excluding options issued in the exchange program</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; 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 style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">The following table summarizes stock option activity for fiscal year 2018 under all plans:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted<br /> Average<br /> Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted<br /> Average<br /> Remaining<br /> Contractual Life (Yrs.)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; padding-left: 3.5pt">Outstanding-beg of year</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">681,922</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">4.25</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 14%; text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 3.5pt"><font style="font: 10pt Times New Roman">Options granted <sup>(1)</sup></font></td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">147,655</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.68</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Options exercised</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(9,398</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.05</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 3.5pt"><font style="font: 10pt Times New Roman">Forfeited/Canceled <sup>(1)</sup></font></td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(182,599</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">6.76</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 3.5pt">Expired</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(2,933</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">17.25</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 3.5pt">Outstanding Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">634,647</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.36</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">6.4</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 3.5pt">Exercisable Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">422,229</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.24</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">5.3</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 11pt 0pt 0"><sup>(1)</sup> In connection with the Exchange Program, 129,025 options to purchase common stock were canceled and 49,491 Replacement Options were granted.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of September 25, 2018, the aggregate intrinsic value of the outstanding and exercisable options was $787,000. Only options whose exercise price is below the current market price of the underlying stock are included in the intrinsic value calculation.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of September 25, 2018, the total remaining unrecognized compensation cost related to non-vested stock options was $431,000 and is expected to be recognized over a weighted average period of approximately 2.35 years.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0">There were 9,397 stock options exercised during the fiscal year ended September 25, 2018 with proceeds of $29,000. There were no stock options exercised during the fiscal year ended September 26, 2017.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 4.3pt 0pt 0"><u>Restricted Stock Units</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">During the fiscal year 2018, the Company granted a total of 37,037 restricted stock units from available shares under its 2008 Plan, as amended. The shares were issued with a grant date fair market value of $2.70 which is equal to the closing price of the stock on the date of the grant. Additionally, the Company granted a total of 60,507 shares of restricted stock during the fiscal year 2018 from available shares under its 2018 Plan. The shares were issued with grant date fair market value of $3.55 which is equal to the closing price of the stock on the date of the grants. All restricted stock units issued under both Plans during the fiscal year 2018 vest over three years following the grant date.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">During the fiscal year 2017, the Company granted a total of 103,440 shares of restricted stock from available shares under its 2008 Plan, as amended. The shares were issued with grant date fair market values of $3.15 and $3.20 which is equal to the closing price of the stock on the date of the grants. The restricted stock units vest between three months and three years following the grant date.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">A summary of the status of non-vested restricted stock as of September 25, 2018 and changes during fiscal 2018 is presented below:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant Date Fair<br /> Value Per Share</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 66%; text-align: left; padding-left: 8pt">Non-vested shares at beg of year</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 15%; text-align: right">115,039</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 15%; text-align: center">$3.15 to $8.60</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 8pt">Granted</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">97,544</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">$2.70 to $3.55</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 8pt">Forfeited</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(18,493</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: center">$3.15 to $8.60</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 8pt">Vested</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(44,476</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: center">$3.15 to $4.18</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 8pt">Non-vested shares at Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">149,614</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">$3.15 to $4.18</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">As of September 25, 2018, there was $341,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 1.6 years.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify"><u>Non-controlling Interests</u></p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The equity interests of the unrelated limited partners and members are shown on the accompanying consolidated balance sheet in the stockholders&#8217; equity section as a non-controlling interest and is adjusted each period to reflect the limited partners&#8217; and members&#8217; share of the net income or loss as well as any cash distributions to the limited partners and members for the period. The limited partners&#8217; and members&#8217; share of the net income or loss in the partnership is shown as non-controlling interest income or expense in the accompanying consolidated statement of operations. All inter-company accounts and transactions are eliminated.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">The following table summarizes the activity in non-controlling interests during the year ended September 25, 2018 (in thousands):</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: justify; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Good Times</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Bad Daddy&#8217;s</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Total</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Balance at September 26, 2017</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">434</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,279</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 15%; text-align: right">2,713</td><td style="width: 1%; text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Income</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">382</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">635</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">1,017</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Contributions</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">933</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">933</td><td style="text-align: left">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Distributions</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(439</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(986</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt">&#160;</td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(1,425</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Balance at September 25, 2018</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">377</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,861</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,238</td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <p style="font: 10pt Times New Roman; margin: 0pt 0; text-align: justify">Our non-controlling interests consist of one joint venture partnership involving Good Times restaurants and eight joint venture partnerships involving eight Bad Daddy&#8217;s restaurants, including three Bad Daddy&#8217;s restaurants that opened during fiscal 2018.</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">The following table summarizes stock option activity for fiscal year 2018 under all plans:</p> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center; padding-bottom: 1pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted<br /> Average<br /> Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1pt">&#160;</td> <td style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted<br /> Average<br /> Remaining<br /> Contractual Life (Yrs.)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; padding-left: 3.5pt">Outstanding-beg of year</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">&#160;</td><td style="width: 12%; text-align: right">681,922</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">4.25</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td> <td style="width: 14%; text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 3.5pt"><font style="font: 10pt Times New Roman">Options granted <sup>(1)</sup></font></td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">147,655</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.68</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 3.5pt">Options exercised</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(9,398</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.05</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 3.5pt"><font style="font: 10pt Times New Roman">Forfeited/Canceled <sup>(1)</sup></font></td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(182,599</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">6.76</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 3.5pt">Expired</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">(2,933</td><td style="text-align: left">)</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">17.25</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: right">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 3.5pt">Outstanding Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">634,647</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.36</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">6.4</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 3.5pt">Exercisable Sept 25, 2018</td><td>&#160;</td> <td style="text-align: left">&#160;</td><td style="text-align: right">422,229</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: left">$</td><td style="text-align: right">3.24</td><td style="text-align: left">&#160;</td><td>&#160;</td> <td style="text-align: center">5.3</td></tr> </table> <p style="font: 10pt Times New Roman; margin: 0pt 0">&#160;</p> The valuation allowance decreased by $565,000 during the year ended September 25, 2018. Excluding options issued in the exchange program In connection with the Exchange Program, 129,025 options to purchase common stock were canceled, and 49,491 Replacement Options were granted.