8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report: August 19, 2009

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	001-10661	95-4079057
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

280 South Beverly Drive, Suite 205, Beverly Hills, California	90212
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (310) 275-7505

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

     As previously disclosed in its Current Report on Form 8-K filed on November 21, 2001, and the Registrant’s Form 12b-25 filed on January 2, 2002, The Kushner-Locke Company, a California corporation (the “Registrant”), and certain of its wholly-owned subsidiaries (collectively, the “Debtors”), filed on November 21, 2001, voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. The Debtors’ Chapter 11 cases are currently pending before the United States Bankruptcy Court for the Central District of California, Los Angeles Division (the “Bankruptcy Court”) and are being jointly administered under Case No. LA-01-44828-SB.

     The Registrant’s unaudited monthly operating reports required by the Bankruptcy Court for March – June 2009 are provided in this Current Report on Form 8-K. The operating reports have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS CONTAIN FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT HAVE NOT BEEN AUDITED OR REVIEWED BY INDEPENDENT ACCOUNTANTS, ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND MAY BE SUBJECT TO FUTURE RECONCILIATION OR ADJUSTMENTS. THE OPERATING REPORTS MAY ALSO CONTAIN INFORMATION FOR PERIODS THAT ARE SHORTER OR OTHERWISE DIFFERENT FROM THOSE CONTAINED IN THE REGISTRANT’S REPORTS REQUIRED TO BE MADE PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

     THE REGISTRANT MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER AS TO ANY OF THE INFORMATION CONTAINED IN THE OPERATING REPORTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS. THE OPERATING REPORTS ARE BEING PROVIDED SOLELY FOR INFORMATION PURPOSES; THEY WERE NOT PREPARED FOR THE PURPOSE OF PROVIDING THE BASIS FOR AN INVESTMENT DECISION RELATING TO THE SECURITIES OF THE REGISTRANT.

Item 9.01. Financial Statements and Exhibits.

(a)	Financial Statements of Business Acquired.
	Not Applicable.
(b)	Pro Forma Financial Information.
	Not Applicable.
(c)	Exhibits.

Exhibit 99.1. Monthly Operating Report of The Kushner-Locke Company (the “Registrant”) for the calendar month from March 1, 2009 to March 31, 2009.

Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from April 1, 2009 to April 30, 2009.

Exhibit 99.3. Monthly Operating Report of the Registrant for the calendar month from May 1, 2009 to May 31, 2009.

Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from June 1, 2009 to June 30, 2009.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 19, 2009	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

Exhibit 99.1

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		89
For the Month Ending:		3/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,898,438.72
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,538,769.87
3.	BEGINNING BALANCE:				359,668.85
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Internal Transfers		55,000.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				55,000.00
5.	BALANCE:				414,668.85
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			0.00
	Disbursements (from page 2)			79,589.91
	TOTAL DISBURSEMENTS THIS PERIOD:***				79,589.91
7.	ENDING BALANCE:				335,078.94
8.	General Account Number(s):			1891935460
			Comerica Bank
	Depository Name & Location:		Los Angeles, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
03/06/2009	Wire	ADP	Payroll Fees			$	82.96		82.96
03/06/2009	1380	Accurate Express	Shipping			$	29.15		29.15
03/06/2009	1381	Bowne of Los Angeles	SEC Reporting			$	643.00		643.00
03/06/2009	1382	USI	Insurance			$	5,000.00		5,000.00
03/06/2009	1383	Bonded Services	Storage			$	4,000.00		4,000.00
03/06/2009	1384	New Wave Entertainment	Dist. Expense/ Delivery			$	232.00		232.00
03/10/2009	8574	Payroll	Payroll			$	1,383.50		1,383.50
03/10/2009	8575	Payroll	Payroll			$	7,182.97		7,182.97
03/10/2009	8576	Payroll	Payroll			$	2,928.28		2,928.28
03/10/2009	Wire	Payroll Tax	Payroll Tax			$	7,103.87		7,103.87
03/12/2009	Fee	Comerica Bank	Bank Fees			$	155.94		155.94
03/13/2009	Wire	ADP	Payroll Fees			$	20.00		20.00
03/20/2009	Wire	ADP	Payroll Fees			$	82.96		82.96
03/20/2009	1385	Anthem Blue Cross	Insurance			$	2,484.00		2,484.00
03/20/2009	1386	Arrowhead	Office Supplies			$	22.97		22.97
03/20/2009	1387	Blue Shield	Insurance			$	319.00		319.00
03/20/2009	1388	Federal Express	Shipping			$	13.41		13.41
03/20/2009	1389	ITE Solutions	IT / Computers			$	345.00		345.00
03/20/2009	1390	Keren Aminia Expenses	Health Reimbursement			$	2,000.00		2,000.00
03/20/2009	1391	New Beginnings Enterprises	Rent / Parking			$	4,720.30		4,720.30
03/20/2009	1392	Recall	Storage			$	1,010.03		1,010.03
03/24/2009	Wire	Payroll Tax	Payroll Tax			$	6,641.63		6,641.63
03/24/2009	8577	Payroll	Payroll			$	1,383.48		1,383.48
03/24/2009	8578	Payroll	Payroll			$	6,797.48		6,797.48
03/24/2009	8579	Payroll	Payroll			$	2,928.28		2,928.28
03/27/2009	Wire	ADP	Payroll Fees			$	80.00		80.00
03/30/2009	1393	AT & T	Telephone			$	286.33		286.33
03/30/2009	1394	Brandon & Morner-Ritt	Legal Fees			$	964.28		964.28
03/30/2009	1395	Global Media Television	Agent Fees			$	3,750.00		3,750.00
03/30/2009	1396	HSA	Insurance			$	60.75		60.75
03/30/2009	1397	Kevin Marino Expenses	Health Reimbursement			$	211.76		211.76
03/30/2009	1398	AT & T	Internet			$	85.95		85.95
03/30/2009	1399	Kevin Marino Expenses	Office Supplies			$	64.81		64.81
03/31/2009	1400	Bonded Services	Storage			$	4,000.00		4,000.00
03/31/2009	1401	Department of Consumer Affairs	Licenses / Permits			$	200.00		200.00
03/31/2009	1402	Keren Aminia Expenses	Office Supplies			$	826.24		826.24
03/31/2009	1403	Stutman Treister & Glatt	Legal Fees			$	11,549.58		11,549.58
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					0.00		79,589.91	$	79,589.91

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date: 3/31/2009 Balance on Statement: $ 356,802.07

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number		Check Date	Check Amount
		1393	AT & T		286.33
		1394	Brandon & Morner-Ritt		964.28
		1395	Global Media Television		3,750.00
		1396	HSA		60.75
		1398	AT & T		85.95
		1400	Bonded Services		4,000.00
		1401	Department of Consumer Affairs		200.00
		1402	Keren Aminia Expenses		826.24
		1403	Stutman Treister & Glatt		11,549.58
TOTAL OUTSTANDING CHECKS:							21,723.13
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:						$	335,078.94

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		89
For the Month Ending:		3/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,870,501.68
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,085,576.94
3.	BEGINNING BALANCE:				784,924.74
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing			18,750.00
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Interest		112.28
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				18,862.28
5.	BALANCE:				803,787.02
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			55,000.00
	Disbursements (from page 2)			6,788.42
	TOTAL DISBURSEMENTS THIS PERIOD:***				61,788.42
7.	ENDING BALANCE:				741,998.60
8.	General Account Number(s):			323-221-556
			JP Morgan Chase
	Depository Name & Location:		New York, NY

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
3/11/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
03/26/2009	Wire	Kushner-Locke	Internal Transfer		30,000.00				30,000.00
03/31/2009	Wire	Morgan Lewis	Legal Fees			$	6,788.42		6,788.42
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					55,000.00		6,788.42	$	61,788.42

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date: 3/31/2009 Balance on Statement: $ 741,998.60

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number	Check Date	Check Amount
TOTAL OUTSTANDING CHECKS:					0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:				$	741,998.60

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		89
For the Month Ending:		3/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,268,719.47
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			45,166.80
3.	BEGINNING BALANCE:			1,223,552.67
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)		0.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:			0.00
5.	BALANCE:			1,223,552.67
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)		0.00
	Disbursements (from page 2)		6,121.00
	TOTAL DISBURSEMENTS THIS PERIOD:***			6,121.00
7.	ENDING BALANCE:			1,217,431.67
8.	General Account Number(s):		112391673
		City National Bank
	Depository Name & Location:	Beverly Hills, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD

Date	Check	Payee or DIP		*Amount		**Amount
mm/dd/yyyy	Number	account	Purpose	Transfered		Disbursed		Amount
03/31/2009	Wire	IMEC	Royalties			$	6,071.00		6,071.00
03/31/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					0.00		6,121.00	$	6,121.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION

Bank statement Date: 3/31/2009 Balance on Statement: $ 1,223,502.67

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number	Check Date		Check Amount
	Wire		3/31/2009		6,071.00
TOTAL OUTSTANDING CHECKS:							6,071.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:						$	1,217,431.67

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:            03/01/09-03/31/09

                    (Provide a copy of monthly account statements for each of the below)

		General Account:	335,078.94
		Collateral Account:	741,998.60
		Collection Account:	1,217,431.67
*Other Accounts:
	Bank of Scotland — Pinocchio	Time Deposit	218,942.18	Currency: GBP
	Bank of Scotland — Basil	Time Deposit	247,129.04	Currency: GBP
	Edge Entertainment		172.89
	KL- PWI account		731.10
	BLT Venture	JV Account	95,381.96
	BLT Venture	JV Account	330.45
	KL\7 Venture	JV Account	39,974.88
	Denial Venture	JV Account	244,619.14
	Cracker LLC	JV Account	15,569.01
	Swing	JV Account	13,031.13
*Other Monies:
	**Petty Cash (from below):		0.00
TOTAL CASH AVAILABLE:					3,170,390.99

Petty Cash Transactions:

Date	Purpose	Amount
TOTAL PETTY CASH TRANSACTIONS:			0.00

*	Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#
**	Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS

AND OTHER PARTIES TO EXECUTORY CONTRACTS

			Post-Petition
	Frequency of	Amount of	payments not
Creditor, Lessor, Etc.	Payments (Mo/Qtr)	Payment	made (Number)	Total Due
			TOTAL DUE:		0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:

Total Wages Paid:

		Total Post- Petition				Date Delinquent
		Amounts Owing		Amounts Delinquent		Amount Due
	Federal Withholding
	State Withholding
	FICA- Employer's Share
	FICA- Employee's Share
	Federal Unemployment
	Sales and Use
	Real Property
Other:
	TOTAL:		0.00		0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	*Accounts Payable		Accounts Receivable
	Post-Petition		Pre-Petition		Post-Petition
30 days or less		0.00				720,146.00
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:		0.00		0.00		720,146.00

V. INSURANCE COVERAGE

				Amount of		Policy Expiration		Premium Paid
			Name of Carrier	Coverage		Date		Through (Date)
	Commercial Package		St. Paul Travelers		2,000,000.00		2/14/2010		2/14/2010
	Worker's Compensation		St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
		E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period	Total							Quarterly Fees
Ending (Date)	Disbursements		Quarterly Fees		Date Paid	Amount Paid		Still Owing
11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009		295,493.00		1,950.00	apply credit				1,950.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
				80,600.00			83,975.00		(3,375.00	)

* Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

	Date of Order		Gross Compensation
	Authorizing		Paid During the
Name of Insider	Compensation	*Authorized Gross Compensation	Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During the Month

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

	Mar 09
Ordinary Income/Expense
Income
KL International Sales		1,500.00
Total Income		1,500.00
Cost of Goods Sold
Bank Fees deducted from rctpts		52.00
Agents Fees		3,750.00
Pymts to Joint Ventures		6,071.00
Total COGS		9,873.00
Gross Profit		-8,373.00
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Service Charge		155.94
Total Bank Service Charges		205.94
Copy Machine		22.49
Delivery & Distribution Expense
Elements		232.00
Shipping		13.41
Total Delivery & Distribution Expense		245.41
Insurance
Dental		319.00
Health		4,687.51
Total Insurance		5,006.51
Internet		85.95
IT / Computers		495.00
Licenses and Permits		200.00
Office Supplies		873.17
Parking		330.00
Payroll
Payroll cost — Employees		12,007.13
Payroll Fee		265.92
Responsible Officer		24,342.36
Total Payroll		36,615.41
Professional Fees
Legal Fees		17,460.66
Total Professional Fees		17,460.66
Rent		4,390.30
Storage		5,010.03
Telephone		286.33
Telephone / E-mail Exepnses		40.85
Total Expense		71,268.05
Net Ordinary Income		-79,641.05
Other Income/Expense
Other Income
Interest Income		112.28
Total Other Income		112.28
Net Other Income		112.28
Net Income		-79,528.77

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Mar 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,217,431.67
Comerica — DIP		335,078.94
Due from Vision/to Vision		19,200.65
KL Cash Collateral — JP Morgan		741,998.60
Total Checking/Savings		2,313,709.86
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		377,500.00
AR — KL		258,333.35
AR — Vision		69,313.04
Total Accounts Receivable		720,146.39
Total Current Assets		3,033,856.25
TOTAL ASSETS		3,033,856.25
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-1,612.22
Total Accounts Payable		-1,612.22
Total Current Liabilities		-1,612.22
Total Liabilities		-1,612.22
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		995,645.40
Net Income		-305,630.84
Total Equity		3,035,468.47
TOTAL LIABILITIES & EQUITY		3,033,856.25

Page 15 of 16

XI. QUESTIONNAIRE

	No	Yes
1. Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	x
	No	Yes
2. Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	x
3. State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.
4. Describe potential future developments which may have a significant impact on the case:
5. Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
	No	Yes
6. Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	x
I, Alice P. Neuhauser, Responsible Officer declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date Principal for debtor-in-possession

Page 16 of 16

EX-99.2

Exhibit 99.2

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	90
For the Month Ending:	4/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,953,438.72
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,618,359.78
3.	BEGINNING BALANCE:				335,078.94
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Internal Transfers		65,000.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				65,000.00
5.	BALANCE:				400,078.94
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			0.00
	Disbursements (from page 2)			68,371.29
	TOTAL DISBURSEMENTS THIS PERIOD:***				68,371.29
7.	ENDING BALANCE:				331,707.65
8.	General Account Number(s):			1891935460
			Comerica Bank
	Depository Name & Location:		Los Angeles, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
04/03/2009	Wire	ADP	Payroll Fees				82.96	$	82.96
04/07/2009	8580	Payroll	Payroll			$	1,383.49	$	1,383.49
04/07/2009	8581	Payroll	Payroll			$	6,742.42	$	6,742.42
04/07/2009	8582	Payroll	Payroll			$	2,928.26	$	2,928.26
04/07/2009	Wire	Payroll Tax	Payroll			$	6,575.60	$	6,575.60
04/13/2009	8586	Comerica Bank	Bank Fee			$	152.27	$	152.27
04/17/2009	1404	Anthem Blue Cross	Insurance			$	2,484.00	$	2,484.00
04/17/2009	1405	Blue Shield	Insurance			$	319.00	$	319.00
04/17/2009	1406	Federal Express	Shipping			$	26.29	$	26.29
04/17/2009	1407	Kevin Marino Expenses	Office Supplies			$	164.92	$	164.92
04/17/2009	1408	Los Angeles County Tax Collector	Taxes			$	40.29	$	40.29
04/17/2009	1409	Recall	Storage			$	918.84	$	918.84
04/17/2009	1410	Stutman Treister & Glatt	Legal Fees			$	10,340.78	$	10,340.78
04/17/2009	1411	Xerox	Office Supplies			$	22.49	$	22.49
04/17/2009	1412	Alice Neuhauser Expenses	Health Reimbursement			$	1,407.11	$	1,407.11
04/17/2009	1413	Alice Neuhauser Expenses	Phone / Internet			$	399.19	$	399.19
04/17/2009	1414	Arrowhead	Office Supplies			$	15.98	$	15.98
04/17/2009	Wire	ADP	Payroll			$	102.96	$	102.96
04/22/2009	8583	Payroll	Payroll			$	1,383.49	$	1,383.49
04/22/2009	8584	Payroll	Payroll			$	7,238.04	$	7,238.04
04/22/2009	8585	Payroll	Payroll			$	2,928.28	$	2,928.28
04/22/2009	Wire	HSA	Insurance			$	5,900.00	$	5,900.00
04/22/2009	Wire	Payroll Tax	Payroll			$	7,169.91	$	7,169.91
04/24/2009	1415	AT & T	Telephone			$	291.58	$	291.58
04/24/2009	1416	Bowne of Los Angeles	SEC Reporting			$	437.00	$	437.00
04/24/2009	1417	HSA	Insurance			$	20.00	$	20.00
04/24/2009	1419	New Beginnings Enterprises	Rent / Parking			$	4,720.30	$	4,720.30
04/24/2009	1420	New Wave Entertainment	Sales / Marketing			$	64.00	$	64.00
04/24/2009	1421	Point 360	Sales / Marketing			$	105.60	$	105.60
04/24/2009	1422	AT & T	Internet			$	86.09	$	86.09
04/24/2009	Wire	ADP	Payroll			$	170.15	$	170.15
04/27/2009	1423	Global Media Television	Agent Fees			$	3,750.00	$	3,750.00
TOTAL DISBURSEMENTS THIS PERIOD:					0.00		68,371.29	$	68,371.29

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date:		4/30/2009	Balance on Statement:		$	335,521.65
Plus deposits in transit (a):
		Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT						0.00
Less Outstanding Checks (a):
	Check
	Number	Check Date		Check Amount
	1420	04/24/2009		64.00
	1423	04/27/2009		3,750.00
TOTAL OUTSTANDING CHECKS:						3,814.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:					$	331,707.65

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	90
For the Month Ending:	4/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,889,363.96
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,147,365.36
3.	BEGINNING BALANCE:				741,998.60
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing			18,750.00
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Interest		52.73
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				18,802.73
5.	BALANCE:				760,801.33
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			65,000.00
	Disbursements (from page 2)
	TOTAL DISBURSEMENTS THIS PERIOD:***				65,000.00
7.	ENDING BALANCE:				695,801.33
8.	General Account Number(s):		323-221-556
			JP Morgan Chase
	Depository Name & Location:		New York, NY

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
4/10/2009	Wire	Kushner-Locke	Internal Transfer		30,000.00				30,000.00
4/23/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					65,000.00		0.00	$	65,000.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date:		4/30/2009	Balance on Statement:		$	695,801.33
Plus deposits in transit (a):
		Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT						0.00
Less Outstanding Checks (a):
	Check Number	Check Date		Check Amount
TOTAL OUTSTANDING CHECKS:						0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:					$	695,801.33

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	90
For the Month Ending:	4/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,268,719.47
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			51,287.80
3.	BEGINNING BALANCE:			1,217,431.67
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)		0.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:			0.00
5.	BALANCE:			1,217,431.67
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)		0.00
	Disbursements (from page 2)		50.00
	TOTAL DISBURSEMENTS THIS PERIOD:***			50.00
7.	ENDING BALANCE:			1,217,381.67
8.	General Account Number(s):		112391673
		City National Bank
	Depository Name & Location:	Beverly Hills, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
04/30/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					0.00		50.00	$	50.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION

Bank statement Date:		4/30/2009	Balance on Statement:		$	1,217,381.67
Plus deposits in transit (a):
		Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT						0.00
Less Outstanding Checks (a):
	Check Number	Check Date		Check Amount
TOTAL OUTSTANDING CHECKS:						0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:					$	1,217,381.67

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD: 04/01/09-04/31/09

(Provide a copy of monthly account statements for each of the below)

		General Account:		331,707.65
		Collateral Account:		695,801.33
		Collection Account:		1,217,381.67
*Other Accounts:
	Bank of Scotland — Pinocchio	Time Deposit		218,978.17	Currency: GBP
	Bank of Scotland — Basil	Time Deposit		247,169.67	Currency: GBP
	Edge Entertainment			172.89
	KL- PWI account			731.10
	BLT Venture	JV Account		95,381.96
	BLT Venture	JV Account		330.45
	KL\7 Venture	JV Account		39,977.72
	Denial Venture	JV Account		244,679.46
	Cracker LLC	JV Account		15,569.01
	Swing	JV Account		13,031.13
*Other Monies:
	**Petty Cash (from below):			0.00
TOTAL CASH AVAILABLE:						3,120,912.21
Petty Cash Transactions:
Date	Purpose		Amount
TOTAL PETTY CASH TRANSACTIONS:						0.00

*	Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#
**	Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

			Post-Petition
	Frequency of Payments		payments not made
Creditor, Lessor, Etc.	(Mo/Qtr)	Amount of Payment	(Number)	Total Due
TOTAL DUE:					0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:

Total Wages Paid:

	Total Post-Petition				Date Delinquent
	Amounts Owing		Amount Delinquent		Amount Due
Federal Withholding
State Withholding
FICA— Employer’s Share
FICA— Employee’s Share
Federal Unemployment
Sales and Use
Real Property
Other:
TOTAL:		0.00		0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	*Accounts Payable		Accounts Receivable
	Post-Petition		Pre-Petition		Post-Petition
30 days or less		4,486.33				703,396.39
31 – 60 days
61 – 90 days
91 – 120 days
Over 120 days
TOTAL:		4,486.33		0.00		703,396.39

V. INSURANCE COVERAGE

		Amount of		Policy Expiration		Premium Paid
	Name of Carrier	Coverage		Date		Through (Date)
Commercial Package	St. Paul Travelers		2,000,000.00		2/14/2010		2/14/2010
Worker’s Compensation	St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period	Total							Quarterly Fees
Ending (Date)	Disbursements		Quarterly Fees		Date Paid	Amount Paid		Still Owing
11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009		295,493.00		1,950.00	apply credit				1,950.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
				80,600.00			83,975.00		(3,375.00	)

* Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII. SCHEDULE OF COMPENSATION PAID TO INSIDERS

	Date of Order		Gross Compensation
	Authorizing		Paid During the
Name of Insider	Compensation	*Authorized Gross Compensation	Month
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During the Month

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

	Apr 09
Ordinary Income/Expense
Income
KL International Sales		2,000.00
Total Income		2,000.00
Cost of Goods Sold
Global Media Sales Fee		3,750.00
Total COGS		3,750.00
Gross Profit		-1,750.00
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Service Charge		152.27
Total Bank Service Charges		202.27
Copy Machine		22.49
Delivery & Distribution Expense
Marketing		169.60
Shipping		26.29
Total Delivery & Distribution Expense		195.89
Insurance
Dental		638.00
Health		2,484.00
Health Acct.		7,327.11
Total Insurance		10,449.11
Internet		111.09
Office Supplies		153.13
Parking		330.00
Payroll
Payroll cost — Employees		17,485.25
Payroll Fee		356.07
Responsible Officer		18,864.24
Total Payroll		36,705.56
Postage and Delivery		2.77
Professional Fees
Legal Fees		12,120.33
Total Professional Fees		12,120.33
Rent		4,390.30
SEC Reporting		437.00
Storage		4,918.84
Taxes
Local		40.29
Total Taxes		40.29
Telephone		291.58
Telephone / E-mail Expenses		399.19
Total Expense		70,769.84
Net Ordinary Income		-72,519.84
Other Income/Expense
Other Income
Interest Income		52.73
Total Other Income		52.73
Net Other Income		52.73
Net Income		-72,467.11

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Apr 30, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,217,381.67
Comerica — DIP		331,707.65
Due from Vision/to Vision		19,200.65
KL Cash Collateral — JP Morgan		695,801.33
Total Checking/Savings		2,264,091.30
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		358,750.00
AR — KL		258,333.35
AR — Vision		71,313.04
Total Accounts Receivable		703,396.39
Total Current Assets		2,967,487.69
TOTAL ASSETS		2,967,487.69
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		4,486.33
Total Accounts Payable		4,486.33
Total Current Liabilities		4,486.33
Total Liabilities		4,486.33
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		995,645.40
Net Income		-378,097.95
Total Equity		2,963,001.36
TOTAL LIABILITIES & EQUITY		2,967,487.69

Page 15 of 16

XI. QUESTIONNAIRE

		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	x
		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	x
3.	State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.
4.	Describe potential future developments which may have a significant impact on the case:
5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	x
I,	Alice P. Neuhauser, Responsible Officer
	declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date Principal for debtor-in-possession

Page 16 of 16

EX-99.3

Exhibit 99.3

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		91
For the Month Ending:		5/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,018,438.72
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,686,731.07
3.	BEGINNING BALANCE:				331,707.65
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Internal Transfers		70,000.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				70,000.00
5.	BALANCE:				401,707.65
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			0.00
	Disbursements (from page 2)			102,566.85
	TOTAL DISBURSEMENTS THIS PERIOD:***				102,566.85
7.	ENDING BALANCE:				299,140.80
8.	General Account Number(s):		1891935460
			Comerica Bank
	Depository Name & Location:		Los Angeles, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
05/01/2009	Wire	ADP	Payroll Fees			$	100.96	$	100.96
05/01/2009	1424	ITE Solutions	IT / Computers			$	230.00	$	230.00
05/01/2009	1425	L. A. County Clerk	Business Filings			$	22.00	$	22.00
05/01/2009	1426	L. A. County Clerk	Business Filings			$	22.00	$	22.00
05/01/2009	1427	L. A. County Clerk	Business Filings			$	22.00	$	22.00
05/05/2009	Wire	Payroll Tax	Payroll			$	6,870.78	$	6,870.78
05/05/2009	8586	Payroll	Payroll			$	1,379.04	$	1,379.04
05/05/2009	8587	Payroll	Payroll			$	7,065.62	$	7,065.62
05/05/2009	8588	Payroll	Payroll			$	2,919.85	$	2,919.85
05/08/2009	1428	Bonded Services	Storage			$	4,000.00	$	4,000.00
05/08/2009	1429	Brandon & Morner-Ritt	Legal Fees			$	3,678.13	$	3,678.13
05/08/2009	1430	Kevin Marino Expenses	Office Supplies			$	241.42	$	241.42
05/08/2009	1431	New Wave Entertainment	Dist. Expense/ Delivery			$	32.00	$	32.00
05/08/2009	1432	Secretary of State	Corporate			$	25.00	$	25.00
05/08/2009	1433	Varien	IT / Computers			$	318.00	$	318.00
05/08/2009	1434	Xerox	Office Supplies			$	22.49	$	22.49
05/13/2009	Wire	Comerica Bank	Bank Fee			$	180.01	$	180.01
05/15/2009	Wire	ADP	Payroll Fees			$	102.96	$	102.96
05/19/2009	Wire	Payroll Tax	Payroll			$	6,539.32	$	6,539.32
05/19/2009	8589	Payroll	Payroll			$	1,379.02	$	1,379.02
05/19/2009	8590	Payroll	Payroll			$	7,056.24	$	7,056.24
05/19/2009	8591	Payroll	Payroll			$	2,788.12	$	2,788.12
05/28/2009	Wire	Payroll Tax	Payroll			$	5,186.23	$	5,186.23
05/28/2009	1435	Alice Neuhauser Expenses	Phone / Internet			$	170.43	$	170.43
05/28/2009	1436	Anthem Blue Cross	Insurance			$	2,484.00	$	2,484.00
05/28/2009	1437	Arrowhead	Office Supplies			$	15.98	$	15.98
05/28/2009	1438	AT & T	Telephone			$	76.82	$	76.82
05/28/2009	1439	Blue Shield	Insurance			$	319.00	$	319.00
05/28/2009	1441	Federal Express	Shipping			$	25.65	$	25.65
05/28/2009	1442	Global Media Television	Agent Fees			$	3,750.00	$	3,750.00
05/28/2009	1443	ITE Solutions	IT / Computers			$	345.00	$	345.00
05/28/2009	1444	Kevin Marino Expenses	Postage			$	44.00	$	44.00
05/28/2009	1445	New Beginnings Enterprises	Parking / Rent			$	4,896.51	$	4,896.51
05/28/2009	1446	Recall	Storage			$	918.84	$	918.84
05/28/2009	1447	AT & T	Internet			$	86.06	$	86.06
05/28/2009	1448	Pure Compliance	SEC Reporting			$	270.00	$	270.00
05/28/2009	8592	Payroll	Payroll			$	1,379.04	$	1,379.04
05/28/2009	8593	Payroll	Payroll			$	7,378.52	$	7,378.52
05/28/2009	8594	Payroll	Payroll			$	2,788.11	$	2,788.11
05/29/2009	Wire	ADP	Payroll Fees			$	181.54	$	181.54
05/29/2009	1449	Anthem Blue Cross	Insurance			$	4,968.00	$	4,968.00
05/29/2009	1450	Blue Shield	Insurance			$	638.00	$	638.00
05/29/2009	1451	Bonded Services	Storage			$	4,000.00	$	4,000.00
05/29/2009	1452	New Beginnings Enterprises	Parking / Rent			$	9,793.02	$	9,793.02
05/29/2009	1453	Recall	Storage			$	1,837.68	$	1,837.68
05/29/2009	1454	Payroll	Payroll			$	1,768.65	$	1,768.65
05/29/2009	1455	Payroll	Payroll			$	2,002.57	$	2,002.57
05/29/2009	1456	Payroll	Payroll			$	2,248.24	$	2,248.24
		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		102,566.85	$	102,566.85

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date: 5/31/2009 Balance on Statement: $ 349,236.53

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number	Check Date	Check Amount
	1435	5/28/2009	$	170.43
	1436	5/28/2009	$	2,484.00
	1437	5/28/2009	$	15.98
	1438	5/28/2009	$	76.82
	1439	5/28/2009	$	319.00
	1441	5/28/2009	$	25.65
	1442	5/28/2009	$	3,750.00
	1443	5/28/2009	$	345.00
	1444	5/28/2009	$	44.00
	1446	5/28/2009	$	918.84
	1447	5/28/2009	$	86.06
	1448	5/28/2009	$	270.00
	1449	5/29/2009	$	4,968.00
	1450	5/29/2009	$	638.00
	1451	5/29/2009	$	4,000.00
	1452	5/29/2009	$	9,793.02
	1453	5/29/2009	$	1,837.68
	8591	5/19/2009	$	2,788.12
	8592	5/28/2009	$	1,379.04
	8593	5/28/2009	$	7,378.52
	8594	5/28/2009	$	2,788.11
	1454	5/29/2009	$	1,768.65
	1455	5/29/2009	$	2,002.57
	1456	5/29/2009	$	2,248.24
TOTAL OUTSTANDING CHECKS:						50,095.73
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:					$	299,140.80

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		91
For the Month Ending:		5/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,908,166.69
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,212,365.36
3.	BEGINNING BALANCE:				695,801.33
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing			30,056.27
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)	Interest		62.79
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:				30,119.06
5.	BALANCE:				725,920.39
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			70,000.00
	Disbursements (from page 2)			4,012.50
	TOTAL DISBURSEMENTS THIS PERIOD:***				74,012.50
7.	ENDING BALANCE:				651,907.89
8.	General Account Number(s):		323-221-556
			JP Morgan Chase
	Depository Name & Location:		New York, NY

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
5/7/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
5/14/2009	Wire	JP Morgan Lewis	Legal Fees			$	4,012.50		4,012.50
5/22/2009	Wire	Kushner-Locke	Internal Transfer		45,000.00				45,000.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
		TOTAL DISBURSEMENTS THIS PERIOD:			70,000.00		4,012.50	$	74,012.50

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date: 5/31/2009 Balance on Statement: $ 651,907.89

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number	Check Date	Check Amount
TOTAL OUTSTANDING CHECKS:					0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:				$	651,907.89

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)
Case Number:	Case No. LA 01-44828-SB
Operating Report Number:		91
For the Month Ending:		5/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)

1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,268,719.47
2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			51,337.80
3.	BEGINNING BALANCE:			1,217,381.67
4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing		14,020.81
	Accounts Receivable — Pre-filing
	General Sales
	Other (Specify)		0.00
	**Other (Specify)
	TOTAL RECEIPTS THIS PERIOD:			14,020.81
5.	BALANCE:			1,231,402.48
6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)		0.00
	Disbursements (from page 2)		50.00
	TOTAL DISBURSEMENTS THIS PERIOD:***			50.00
7.	ENDING BALANCE:			1,231,352.48
8.	General Account Number(s):	112391673
		City National Bank
	Depository Name & Location:	Beverly Hills, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD

Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
05/30/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		50.00	$	50.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION

Bank statement Date: 5/31/2009 Balance on Statement: $ 1,231,352.48

Plus deposits in transit (a):

	Deposit Date	Deposit Amount
TOTAL DEPOSITS IN TRANSIT			0.00

Less Outstanding Checks (a):

	Check Number	Check Date	Check Amount
TOTAL OUTSTANDING CHECKS:					0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:				$	1,231,352.48

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD: 05/01/09-05/29/09

(Provide a copy of monthly account statements for each of the below)

		General Account:	299,140.80
		Collateral Account:	651,907.89
		Collection Account:	1,231,352.48
*Other Accounts:
	Bank of Scotland — Pinocchio	Time Deposit	219,012.97	Currency: GBP
	Bank of Scotland — Basil	Time Deposit	247,208.95	Currency: GBP
	Edge Entertainment		172.89
	KL — PWI account		731.10
	BLT Venture	JV Account	95,381.96
	BLT Venture	JV Account	330.45
	KL\7 Venture	JV Account	39,982.82
	Denial Venture	JV Account	244,741.80
	Cracker LLC	JV Account	15,569.01
	Swing	JV Account	13,031.13
*Other Monies:
	**Petty Cash (from below):		0.00
TOTAL CASH AVAILABLE:					3,058,564.25

Petty Cash Transactions:

Date	Purpose	Amount
TOTAL PETTY CASH TRANSACTIONS:			0.00

*	Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#
**	Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

			Post-Petition
	Frequency of Payments		payments not made
Creditor, Lessor, Etc.	(Mo/Qtr)	Amount of Payment	(Number)	Total Due
			TOTAL DUE:		0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:

Total Wages Paid:

		Total Post-Petition				Date Delinquent
		Amounts Owing		Amount Delinquent		Amount Due
	Federal Withholding
	State Withholding
	FICA- Employer’s Share
	FICA- Employee’s Share
	Federal Unemployment
	Sales and Use
	Real Property
Other:
	TOTAL:		0.00		0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	*Accounts Payable		Accounts Receivable
	Post-Petition		Pre-Petition		Post-Petition
30 days or less		21,880.00				670,756.00
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:		21,880.00		0.00		670,756.00

V. INSURANCE COVERAGE

			Amount of		Policy Expiration		Premium Paid
		Name of Carrier	Coverage		Date		Through (Date)
	Commercial Package	St. Paul Travelers		2,000,000.00		2/14/2010		2/14/2010
	Worker’s Compensation	St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
	E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period	Total							Quarterly Fees
Ending (Date)	Disbursements		Quarterly Fees		Date Paid	Amount Paid		Still Owing
11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009		295,493.00		1,950.00	apply credit				1,950.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
				80,600.00			83,975.00		(3,375.00	)

* Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII. SCHEDULE OF COMPENSATION PAID TO INSIDERS

	Date of Order		Gross Compensation
	Authorizing		Paid During the
Name of Insider	Compensation	*Authorized Gross Compensation	Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During the Month

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

	May 09
Ordinary Income/Expense
Income
KL International Sales		1,500.00
Royalties		11,306.27
Total Income		12,806.27
Cost of Goods Sold
Global Media Sales Fee		3,750.00
Vision Expenses		1,339.71
Vision Sales Fee		3,840.13
Total COGS		8,929.84
Gross Profit		3,876.43
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Service Charge		180.01
Total Bank Service Charges		230.01
Business Filings		66.00
Copy Machine		22.49
Corporate		25.00
Delivery & Distribution Expense
Marketing		32.00
Shipping		25.65
Total Delivery & Distribution Expense		57.65
Insurance
Health		2,484.00
Health Acct.		170.43
Total Insurance		2,654.43
Internet		86.06
IT / Computers		893.00
Office Supplies		218.66
Parking		330.00
Payroll
Payroll cost — Employees		23,295.30
Payroll Fee		385.46
Responsible Officer		35,454.05
Total Payroll		59,134.81
Postage and Delivery		44.00
Professional Fees
Legal Fees		3,055.50
Total Professional Fees		3,055.50
Rent		4,390.30
SEC Reporting		270.00
Storage		4,918.84
Telephone		76.82
Telephone / E-mail Expenses		38.74
Total Expense		76,512.31
Net Ordinary Income		-72,635.88
Other Income/Expense
Other Income
Interest Income		62.79
Total Other Income		62.79
Net Other Income		62.79
Net Income		-72,573.09

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	May 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,231,352.48
Comerica — DIP		299,140.80
KL Cash Collateral — JP Morgan		651,907.89
Total Checking/Savings		2,182,401.17
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		340,000.00
AR — KL		258,333.35
AR — Vision		57,423.07
Total Accounts Receivable		670,756.42
Total Current Assets		2,853,157.59
TOTAL ASSETS		2,853,157.59
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-21,880.71
Total Accounts Payable		-21,880.71
Total Current Liabilities		-21,880.71
Total Liabilities		-21,880.71
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-463,671.04
Total Equity		2,875,038.30
TOTAL LIABILITIES & EQUITY		2,853,157.59

Page 15 of 16

XI. QUESTIONNAIRE

		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	x
		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	x
3.	State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.
4.	Describe potential future developments which may have a significant impact on the case:
5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	x
I,	Alice P. Neuhauser, Responsible Officer declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date Principal for debtor-in-possession

Page 16 of 16

EX-99.4

Exhibit 99.4

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	92
For the Month Ending:	6/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,088,438.72
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,789,297.92
3. BEGINNING BALANCE:				299,140.80
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	Internal Transfers		35,000.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:				35,000.00
5. BALANCE:				334,140.80
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)			0.00
Disbursements (from page 2)			39,992.86
TOTAL DISBURSEMENTS THIS PERIOD:***				39,992.86
7. ENDING BALANCE:				294,147.94
8. General Account Number(s):		1891935460
		Comerica Bank
Depository Name & Location:		Los Angeles, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date		Check			*Amount		**Amount
mm/dd/yyyy		Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
	06/05/2009	Wire	ADP	Payroll Fees			$	82.96	$	82.96
	06/11/2009	Wire	Comerica Bank	Bank Fee			$	255.46	$	255.46
	06/16/2009	8595	Payroll	Payroll			$	1,379.02	$	1,379.02
	06/16/2009	8596	Payroll	Payroll			$	7,126.51	$	7,126.51
	06/16/2009	8597	Payroll	Payroll			$	2,788.13	$	2,788.13
	06/19/2009	Wire	ADP	Payroll Fees			$	30.00	$	30.00
	06/19/2009	1457	AT & T	Internet			$	86.06	$	86.06
	06/19/2009	1458	Accurate Express	Shipping			$	20.79	$	20.79
	06/19/2009	1459	Alice Neuhauser Expenses	Phone / Internet			$	455.76	$	455.76
	06/19/2009	1460	Arrowhead	Office Supplies			$	15.98	$	15.98
	06/19/2009	1461	AT & T	Telephone			$	285.38	$	285.38
	06/19/2009	1462	Federal Express	Shipping			$	25.65	$	25.65
	06/19/2009	1463	Keren Aminia Expenses	Office Supplies			$	314.82	$	314.82
	06/19/2009	1464	Secretary of State	Corporate / Bus. Filing			$	25.00	$	25.00
	06/19/2009	1465	Xerox	Office Supplies			$	22.49	$	22.49
	06/20/2009	Wire	Payroll Tax	Payroll			$	6,881.01	$	6,881.01
	06/23/2009	1466	Federal Express	Shipping			$	82.32	$	82.32
	06/23/2009	1467	ITE Solutions	IT / Computers			$	460.00	$	460.00
	06/26/2009	Wire	Intuit	Office Supplies			$	98.30	$	98.30
	06/26/2009	Wire	ADP	Payroll Fees			$	166.63	$	166.63
	06/26/2009	1468	Global Media Television	Agent Fees			$	3,750.00	$	3,750.00
	06/26/2009	1469	Secretary of State	Corporate / Bus. Filing			$	25.00	$	25.00
	06/26/2009	1470	Secretary of State	Corporate / Bus. Filing			$	25.00	$	25.00
	06/30/2009	Wire	Payroll Tax	Payroll			$	4,674.91	$	4,674.91
	06/30/2009	8598	Payroll	Payroll			$	1,379.04	$	1,379.04
	06/30/2009	8599	Payroll	Payroll			$	6,748.52	$	6,748.52
	06/30/2009	8600	Payroll	Payroll			$	2,788.12	$	2,788.12
			TOTAL DISBURSEMENTS THIS PERIOD:			0.00		39,992.86	$	39,992.86

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

	Bank statement Date:			6/30/2009	Balance on Statement:		$	309,203.44
Plus deposits in transit (a):
			Deposit Date		Deposit Amount
TOTAL DEPOSITS IN TRANSIT								0.00
Less Outstanding Checks (a):
	Check Number		Check Date		Check Amount
		1463		6/19/2009	$	314.82
		1464		6/19/2009	$	25.00
		1468		6/26/2009	$	3,750.00
		1469		6/26/2009	$	25.00
		1470		6/26/2009	$	25.00
		8598		6/30/2009	$	1,379.04
		8599		6/30/2009	$	6,748.52
		8600		6/30/2009	$	2,788.12
TOTAL OUTSTANDING CHECKS:								15,055.50
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	294,147.94

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	92
For the Month Ending:	6/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,938,285.75
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS					11,286,377.86
3. BEGINNING BALANCE:					651,907.89
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing			45,906.41
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	Interest		61.61
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:					45,968.02
5. BALANCE:					697,875.91
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)			35,000.00
Disbursements (from page 2)			0.00
TOTAL DISBURSEMENTS THIS PERIOD:***					35,000.00
7. ENDING BALANCE:					662,875.91
8. General Account Number(s):		323-221-556
		JP Morgan Chase
Depository Name & Location:		New York, NY

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD

Date		Check			*Amount		**Amount
mm/dd/yyyy		Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
	6/19/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
			TOTAL DISBURSEMENTS THIS PERIOD:			35,000.00		0.00	$	35,000.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

	Bank statement Date:			6/30/2009	Balance on Statement:		$	662,875.91
Plus deposits in transit (a):
			Deposit Date			Deposit Amount
TOTAL DEPOSITS IN TRANSIT								0.00
Less Outstanding Checks (a):
		Check Number	Check Date			Check Amount
TOTAL OUTSTANDING CHECKS:								0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	662,875.91

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

In Re:

     The Kushner-Locke Company

Debtor(s).

CHAPTER 11 (BUSINESS)

Case Number:	Case No. LA 01-44828-SB
Operating Report Number:	92
For the Month Ending:	6/30/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,282,740.28
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			51,387.80
3. BEGINNING BALANCE:			1,231,352.48
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing		19,830.00
Accounts Receivable — Pre-filing
General Sales
Other (Specify)		0.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:			19,830.00
5. BALANCE:			1,251,182.48
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		0.00
Disbursements (from page 2)		50.00
TOTAL DISBURSEMENTS THIS PERIOD:***			50.00
7. ENDING BALANCE:			1,251,132.48
8. General Account Number(s):	112391673
	City National Bank
Depository Name & Location:	Beverly Hills, CA

*	All receipts must be deposited into the general account.
**	Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.
***	This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD

Date		Check			*Amount		**Amount
mm/dd/yyyy		Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
	06/30/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
			TOTAL DISBURSEMENTS THIS PERIOD:			0.00		50.00	$	50.00

*	Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.
**	Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION

	Bank statement Date:			6/30/2009	Balance on Statement:		$	1,251,132.48
Plus deposits in transit (a):
			Deposit Date			Deposit Amount
TOTAL DEPOSITS IN TRANSIT								0.00
Less Outstanding Checks (a):
		Check Number	Check Date			Check Amount
TOTAL OUTSTANDING CHECKS:								0.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	1,251,132.48

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:	05/01/09-05/29/09
(Provide a copy of monthly account statements for each of the below)

		General Account:	294,147.94
		Collateral Account:	662,875.91
		Collection Account:	1,251,132.48
*Other Accounts:
	Bank of Scotland - Pinocchio	Time Deposit	219,051.38	Currency: GBP
	Bank of Scotland - Basil	Time Deposit	247,252.30	Currency: GBP
	Edge Entertainment		172.89
	KL- PWI account		731.10
	BLT Venture	JV Account	95,381.96
	BLT Venture	JV Account	330.45
	KL\7 Venture	JV Account	39,987.75
	Denial Venture	JV Account	244,802.15
	Cracker LLC	JV Account	15,569.01
	Swing	JV Account	13,031.13
*Other Monies:
	**Petty Cash (from below):		0.00
TOTAL CASH AVAILABLE:					3,084,466.45
Petty Cash Transactions:

Date	Purpose	Amount
TOTAL PETTY CASH TRANSACTIONS:			0.00

*	Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#
**	Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

			Post-Petition
	Frequency of Payments		payments not made
Creditor, Lessor, Etc.	(Mo/Qtr)	Amount of Payment	(Number)	Total Due
			TOTAL DUE:		0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:                     
Total Wages Paid:                     

		Total Post-Petition				Date Delinquent
		Amounts Owing		Amount Delinquent		Amount Due
	Federal Withholding
	State Withholding
	FICA- Employer’s Share
	FICA- Employee’s Share
	Federal Unemployment
	Sales and Use
	Real Property
Other:
	TOTAL:		0.00		0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

	*Accounts Payable		Accounts Receivable
	Post-Petition		Pre-Petition		Post-Petition
30 days or less		22,626.11				635,676.40
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:		22,626.11		0.00		635,676.40

V. INSURANCE COVERAGE

		Amount of		Policy Expiration		Premium Paid
	Name of Carrier	Coverage		Date		Through (Date)
Commercial Package	St. Paul Travelers		2,000,000.00		2/14/2010		2/14/2010
Worker’s Compensation	St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period	Total							Quarterly Fees
Ending (Date)	Disbursements		Quarterly Fees		Date Paid	Amount Paid		Still Owing
11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009		295,493.00		1,950.00	apply credit				1,950.00
30-Jun-2009		215,093.50		1,625.00	apply credit				1,625.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
				82,225.00			83,975.00		(1,750.00	)

* Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII. SCHEDULE OF COMPENSATION PAID TO INSIDERS

	Date of Order		Gross Compensation
	Authorizing		Paid During the
Name of Insider	Compensation	*Authorized Gross Compensation	Month
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During the Month

* Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

	Jun 09
Ordinary Income/Expense
Income
KL International Sales		30,186.10
Total Income		30,186.10
Cost of Goods Sold
Bank Fees deducted from rctpts		29.69
Global Media Sales Fee		3,750.00
Total COGS		3,779.69
Gross Profit		26,406.41
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Service Charge		255.46
Total Bank Service Charges		305.46
Copy Machine		22.49
Corporate		75.00
Delivery & Distribution Expense
Shipping		107.97
Total Delivery & Distribution Expense		107.97
Insurance
Dental		319.00
Health		2,484.00
Total Insurance		2,803.00
Internet		86.06
IT / Computers		460.00
Office Supplies		429.10
Parking		330.00
Payroll
FUTA & SUI Expense		191.25
Payroll cost — Employees		13,308.41
Payroll Fee		279.59
Responsible Officer		20,265.60
Total Payroll		34,044.85
Postage and Delivery		20.79
Professional Fees
Legal Fees		35,888.47
Total Professional Fees		35,888.47
Rent		4,566.51
Storage		918.84
Telephone		285.38
Telephone / E-mail Expenses		455.76
Total Expense		80,799.68
Net Ordinary Income		-54,393.27
Other Income/Expense
Other Income
Interest Income		61.61
Total Other Income		61.61
Net Other Income		61.61
Net Income		-54,331.66

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Jun 30, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,251,132.48
Comerica — DIP		294,147.94
KL Cash Collateral — JP Morgan		662,875.91
Total Checking/Savings		2,208,156.33
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		321,250.00
AR — KL		258,333.35
AR — Vision		41,093.07
Total Accounts Receivable		635,676.42
Total Current Assets		2,843,832.75
TOTAL ASSETS		2,843,832.75
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		22,626.11
Total Accounts Payable		22,626.11
Total Current Liabilities		22,626.11
Total Liabilities		22,626.11
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-517,502.70
Total Equity		2,821,206.64
TOTAL LIABILITIES & EQUITY		2,843,832.75

Page 15 of 16

XI. QUESTIONNAIRE

		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	x
		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	x
3.	State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.
4.	Describe potential future developments which may have a significant impact on the case:
5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	x
I,	Alice P. Neuhauser, Responsible Officer declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

Date Principal for debtor-in-possession

Page 16 of 16