Debt and Capital Leases:


		2014		2013
Note payable with United Capital Business Lending with payments of principal and interest (6.7%) due monthly through August 2021. The loan is secured by the fixtures and equipment of the Company's Good Times Drive Thru restaurants	$	194,000	$	0
Capital signage leases with Yesco, LLC with payments of principal and interest (8%) due monthly		74,000		102,000
Notes payable with Ally Financial with payments of principal and interest (1.9% to 3.9%) due monthly. The loans are secured by vehicles		20,000		36,000
		288,000		138,000
Less current portion		(69,000)		(44,000)
Long term portion	$	219,000	$	94,000

As reported on the Company's current form 8K dated August 4, 2014, on July 30, 2014, Good Times Drive Thru Inc. (the“Borrower”), the wholly-owned subsidiary of Good Times Restaurants Inc. (“Good Times”), entered into a Development Line Loan and Security Agreement (the “Loan Agreement”) with United Capital Business Lending (“Lender”), pursuant to which Lender agreed to loan Borrower up to $2,100,000 (the “Loan”) and entered into a Collateral Assignment of Franchise Agreements, Management Agreement and Partnership Interests (the “Collateral Assignment”) with Lender. Borrowings outstanding under the Loan Agreement as of September 30, 2014 were $194,000. In addition, on July 30, 2014, Good Times entered into a Guaranty Agreement (“the Guaranty Agreement”) with Lender, pursuant to which Good Times guaranteed the repayment of the Loan. The Loan Agreement, Collateral Assignment, Notes (as defined below) and Guaranty Agreement are referred to herein as the “Loan Documents.”

Under the terms of the Loan Agreement, Borrower may use up to $750,000 of the Loan to purchase a Point of Sale System and up to $1,350,000 of the Loan for the development of three new Good Times restaurants. Borrower may request disbursements under the Loan Agreement for development costs of Good Times restaurants on or before July 1, 2015. In connection with each disbursement under the Loan Agreement, Borrower shall execute a Promissory Note (the “Notes”) in the full amount of each disbursement request. The Notes incur interest at a rate of 6.69% per annum, are repayable in monthly installments of principal and interest over 84 months, and contain other customary terms and conditions. The Notes are subject to certain prepayment fees ranging between 1% and 3% of the unpaid balance at such time if Borrower repays a Note in certain circumstances prior to the thirty seventh monthly installment under such Note.

The Loan Agreement and Notes contain customary representations, warranties and affirmative and negative covenants, including without limitation, covenants to maintain certain insurance coverage and to maintain a certain debt service coverage ratio, leverage ratio, and quick ratio. At September 30, 2014 the company was in compliance with all the required covenants.

As of September 30, 2014, principal payments on debt become due as follows:


Years Ending September 30,
2015	$	69,000
2016		61,000
2017		37,000
2018		28,000
2019		30,000
Thereafter		63,000
	$	288,000

Total interest expense on notes payable and capital leases was $9,000 and $48,000 for fiscal 2014 and fiscal 2013, respectively.