Golden-based Good Times Restaurants Inc. said Tuesday that its accountant has issued a warning about the consequences of a changed loan provision.
Hein & Associates questioned Good Times’ ability to continue as a going concern after the eatery’s loan from Wells Fargo Bank was classified as a current liability because of loan-covenant defaults and recent financial losses from operations.
“Even though the company has never been in any payment default, the classification of the entire Wells Fargo note payable as a current liability and the right of Wells Fargo to accelerate the required payment of the note, means the company does not show the ability to fully satisfy its liabilities in the normal course of business without raising additional capital,” Good Times said in a statement.
Good Times said it has hired a consultant “to provide strategic advisory services and explore other strategic alternatives that will further the long-term business prospects of the company and provide incremental value to its shareholders.”
