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: January 26, 2007

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	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 and monthly interim statements required by the Bankruptcy Court for July — October 2006 are provided in this Current Report on Form 8-K. The operating reports and interim statements have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS AND THE INTERIM STATEMENTS 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 AND INTERIM STATEMENTS 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 OR THE INTERIM STATEMENTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. THE OPERATING REPORTS AND INTERIM STATEMENTS 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 Interim Statement of The Kushner-Locke Company (the “Registrant”) for the calendar month from July 1, 2006 to July 31, 2006.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from July 1, 2006 to July 31, 2006.
	Exhibit 99.3. Monthly Interim Statement of the Registrant for the calendar month from August 1, 2006 to August 31, 2006.
	Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from August 1, 2006 to August 31, 2006.
	Exhibit 99.5. Monthly Interim Statement of the Registrant for the calendar month from September 1, 2006 to September 30, 2006.
	Exhibit 99.6. Monthly Operating Report of the Registrant for the calendar month from September 1, 2006 to September 30, 2006.
	Exhibit 99.7. Monthly Interim Statement of the Registrant for the calendar month from October 1, 2006 to October 31, 2006.
	Exhibit 99.8. Monthly Operating Report of the Registrant for the calendar month from October 1, 2006 to October 31, 2006.

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: January 26, 2007	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

EXHIBIT 99.1

Page 1 of 3

Office of the United States Trustee

In re:
  The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION INTERIM STATEMENT

Statement Number:	57
For the Period FROM:	7/1/2006
TO:	7/31/2006

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,205,434.11	$	7,488,281.69	$	599,266.52
B. Less: Total Disbursements per all Prior Statements		$	7,680,954.55	$	7,483,645.32	$	6,192.48
C. Beginning Balance		$	1,792,812.77	$	70,592.58	$	593,074.04
D. Receipts during Current Period
Description
7/6/2006	Wire Transfer			$	35,000.00
7/14/2006	WABC	$	50,000.00
7/18/2006	Daro	$	49,967.12
7/20/2006	Wire Transfer			$	30,000.00
7/25/2006	FVE South Africa					$	1,978.00
7/28/2006	Wire Transfer			$	55,000.00
7/31/2008	interest	$	8,028.14
TOTAL RECEIPTS THIS PERIOD		$	107,995.26	$	120,000.00	$	1,978.00		—
E. Balance Available (C plus D)		$	1,900,808.03	$	190,592.58	$	595,052.04	$	—

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 57

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
7/6/2006		Wire Transfer	$	35,000.00
7/7/2006		ADP Fees			$	106.17
7/7/2006	38544	KEREN AMINIA			$	480.00
7/7/2006	38545	Accurate Express			$	57.96
7/7/2006	38546	AT&T			$	75.46
7/7/2006	38547	AT&T			$	301.33
7/12/2006	38548	Point 360			$	307.20
7/12/2006	38549	Recall			$	529.87
7/14/2006		ADP Fees			$	30.00
7/18/2006		ADP Taxes			$	7,401.72
7/18/2006		Service Charge			$	176.64
7/18/2006	8313	Payroll			$	1,319.76
7/18/2006	8314	Payroll			$	9,574.05
7/18/2006	8315	Payroll			$	1,544.03
7/18/2006	8316	Payroll			$	2,744.04
7/20/2006		Wire Transfer	$	30,000.00
7/28/2006		ADP Fees			$	375.33
7/28/2006		Wire Transfer	$	55,000.00
7/28/2006	38550	Accurate Express			$	73.60
7/28/2006	38551	Arrowhead			$	29.45
7/28/2006	38552	AT&T			$	326.36
7/28/2006	38553	Blue Shield of California			$	373.00
7/28/2006	38554	Federal Express			$	68.42
7/28/2006	38555	Health Net			$	4,187.18
7/28/2006	38556	KEVIN MARINO			$	499.71
7/28/2006	38557	New Beginnings Enterprises			$	4,174.95
7/28/2006	38558	New Wave Entertainment			$	852.50
7/28/2006	38559	Varien			$	135.00
7/28/2006	38560	United States Trustee			$	3,750.00
7/28/2006	38561	United States Trustee			$	250.00
7/28/2006	38562	United States Trustee			$	250.00
7/28/2006	38563	United States Trustee			$	250.00
7/28/2006	38564	United States Trustee			$	250.00
7/28/2006	38565	United States Trustee			$	250.00
7/28/2006	38566	United States Trustee			$	250.00
7/28/2006	38567	United States Trustee			$	250.00
7/28/2006	38568	United States Trustee			$	250.00
7/28/2006	38569	AT&T			$	76.20
7/31/2006		Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	120,000.00	$	41,569.93	$	50.00		—
G. Ending Balance (E less F)			$	1,780,808.03	$	149,022.65	$	595,002.04	$	—

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 57

H. (1) Collateral Account:
a) Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
b) Account Number:		323221556
(2) Concentration Account:
a) Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
b) Account Number:		1891935460
I: Other monies on hand:
The Kushner Locke Company PWI account			$	731.10
Bank of Scotland — Pinocchio		936582	£	454,482.64	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	225,159.79	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio		10747301	$	—	Pound Sterling
Edge Entertainment		1891152710	$	172.89
I: Other monies on hand (continued):
Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).
Joint Venture Accounts:
BLT Venture		178-71491-7	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	30,118.64
Denial Venture		1890-69-6501	$	152,270.13
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	8,097.50

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession 

EX-99.2

EXHIBIT 99.2

Page 1 of 2

Office of the United States Trustee

In re:

  The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	57
For the Period FROM:	7/1/2006
TO:	7/31/2006

1 Profit and Loss Statement (Accrual Basis Only)

A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	14,719
Salaries and Wages — Other Employees	7,108
Total Salaries and Wages			21,826
Employee Benefits and Pensions			4,560
Employer Payroll Taxes/Fees	1,269
Other Taxes
Total Taxes			1,269
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	1,360
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	779
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	980
Storage Expense	530
Supplies, Office Expenses, Photocopies, etc.	29
Bad Debts
Miscellaneous Operating Expenses	362
Total Operating Expenses			35,870
Net Gain/Loss from Business Operations					(35,870	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees
Other Non-Operating Expenses (Board/Trustee fees)			5,750
Total Non-Operating Expenses					5,750
NET INCOME/(LOSS) FOR PERIOD				$	(41,620	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 57

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		8,775		1,586,768
TOTAL		8,775		1,586,768

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2007		1/14/2007
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2007		2/14/2007
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2007		3/3/2007

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee? o Yes   Explain: þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court? o Yes   Explain: þ No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

     Total unpaid post-petition Professional Fees during the reporting period: $ 442,095.03

8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession 

EX-99.3

EXHIBIT 99.3

Page 1 of 3

Office of the United States Trustee

In re:
   The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-

44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION INTERIM STATEMENT

Statement Number:	58
For the Period FROM:	8/1/2006
TO:	8/31/2006

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,313,429.37	$	7,608,281.69	$	601,244.52
B. Less: Total Disbursements per all Prior Statements		$	7,800,954.55	$	7,525,215.25	$	6,242.48
C. Beginning Balance		$	1,780,808.03	$	149,022.65	$	595,002.04
D. Receipts during Current Period
Description
8/14/2006	PS Here!	$	7,500.00
8/15/2006	Daro Films	$	49,967.14
8/15/2006	Compact Collections	$	6,675.55
8/17/2006	Wire Transfer			$	40,000.00
8/30/2006	Wire Transfer			$	40,000.00
8/30/2006	Sting Music					$	14,778.00
8/31/2006	interest	$	7,989.14
TOTAL RECEIPTS THIS PERIOD		$	72,131.83	$	80,000.00	$	14,778.00		—
E. Balance Available (C plus D)		$	1,852,939.86	$	229,022.65	$	609,780.04	$	—

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 58

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
8/1/2006		ADP Taxes			$	7,932.76
8/1/2006	8317	Payroll			$	1,319.75
8/1/2006	8318	Payroll			$	10,184.37
8/1/2006	8319	Payroll			$	1,544.02
8/1/2006	8320	Payroll			$	2,744.02
8/2/2006	38570	Brandon & Morner-Ritt			$	17,210.72
8/2/2006	38571	Bonded Services, Inc			$	6,592.01
8/2/2006	38572	JDJ Investments Inc			$	271.42
8/7/2006	38573	KEVIN MARINO			$	333.19
8/7/2006	38574	Two Easily Amused			$	1,650.16
8/7/2006	38575	Recall			$	1,071.45
8/11/2006		ADP Fees			$	137.69
8/15/2006		ADP Taxes			$	6,751.23
8/15/2006		Service Charge			$	100.22
8/15/2006	8321	Payroll			$	1,319.75
8/15/2006	8322	Payroll			$	8,797.93
8/15/2006	8323	Payroll			$	1,544.02
8/15/2006	8324	Payroll			$	2,744.03
8/17/2006		Wire Transfer	$	40,000.00
8/18/2006	38576	USI of Southern California			$	201.00
8/18/2006	38577	Clumeck,Stern,Schenkelburg& Getzo			$	6,012.00
8/18/2006	38578	Federal Express			$	104.49
8/18/2006	38579	Hollywood Creative Directory			$	249.95
8/18/2006	38580	BLUBlue Shield of California			$	373.00
8/18/2006	38581	Arrowhead			$	19.22
8/18/2006	38582	FRAFranchise Tax Board			$	6,400.00
8/25/2006		ADP Fees			$	130.00
8/25/2006	38583	Health Net			$	4,187.18
8/25/2006	38584	New Beginnings Enterprises			$	3,903.53
8/25/2006	38585	AT&T			$	75.66
8/25/2006	38586	AT&T			$	316.97
8/25/2006	38587	ITE Solutions			$	730.00
8/29/2006		ADP Taxes			$	7,888.52
8/29/2006	8325	Payroll			$	1,319.75
8/29/2006	8326	Payroll			$	10,133.50
8/29/2006	8327	Payroll			$	1,544.02
8/29/2006	8328	Payroll			$	2,744.02
8/30/2006		Wire Transfer	$	40,000.00
8/31/2006		Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	80,000.00	$	118,581.55	$	50.00		—
G. Ending Balance (E less F)			$	1,772,939.86	$	110,441.10	$	609,730.04	$	—

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 58

H.	(1) Collateral Account:
	a) Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
	b) Account Number:	323221556
	(2) Concentration Account:
	a) Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
	b) Account Number:	1891935460
I: Other monies on hand:
The Kushner Locke Company PWI account			$	731.10
Bank of Scotland — Pinocchio		936582	£	454,482.64	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	225,159.79	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio		10747301	$	—	Pound Sterling
Edge Entertainment		1891152710	$	172.89
I: Other monies on hand (continued):
Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).
Joint Venture Accounts:
	BLT Venture	178-71491-7	$	95,381.96
	BLT Venture	16-524173-1101	$	330.45
	KL MDP Sensation	60-066-930	$	—
	KL\7 Venture	1890-69-6360	$	29,416.59
	Denial Venture	1890-69-6501	$	151,714.83
	Cracker LLC	1891-04-1665	$	732.79
	Swing	323-518095	$	7,362.50

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser Debtor in Possession

EX-99.4

EXHIBIT 99.4

Page 1 of 2

Office of the United States Trustee

In re:
  The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	58
For the Period FROM:	8/1/2006
TO:	8/31/2006

1 Profit and Loss Statement (Accrual Basis Only)

A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	44,906
Salaries and Wages — Other Employees	21,323
Total Salaries and Wages			66,229
Employee Benefits and Pensions			4,560
Employer Payroll Taxes/Fees	2,550
Other Taxes	6,400
Total Taxes			8,950
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	1,755
Interest Expense
Insurance	201
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	393
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	333
Storage Expense	7,663
Supplies, Office Expenses, Photocopies, etc.	19
Bad Debts
Miscellaneous Operating Expenses	1,130
Total Operating Expenses			95,409
Net Gain/Loss from Business Operations					(95,409	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			23,223
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					23,223
NET INCOME/(LOSS) FOR PERIOD				$	(118,632	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 58

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		2,763		1,537,206
TOTAL		2,763		1,537,206

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2007		1/14/2007
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2007		2/14/2007
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2007		3/3/2007

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes     Explain:
	þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o  Yes     Explain:
	þ  No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

    Total unpaid post-petition Professional Fees during the reporting period: $   454,825.39

8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession 

EX-99.5

EXHIBIT 99.5

Page 1 of 3

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:		59
Chapter 11		For the Period FROM:		9/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with			TO:	9/30/2006
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- 44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,385,561.20	$	7,688,281.69	$	616,022.52
B. Less: Total Disbursements per all Prior Statements		$	7,880,954.55	$	7,643,796.80	$	6,292.48
C. Beginning Balance		$	1,772,939.86	$	110,441.10	$	609,730.04
D. Receipts during Current Period
Description
9/5/2006	Hamdon Entertainment	$	7,955.00
9/5/2006	S Pictures inc	$	552.50
9/13/2006	Wire Transfer			$	80,000.00
9/15/2006	Force Video					$	7,980.00
9/20/2006	Sci-Fi Europe					$	5,049.87
9/26/2006	Daro	$	49,967.14
9/30/2006	interest	$	7,260.24
TOTAL RECEIPTS THIS PERIOD		$	65,734.88	$	80,000.00	$	13,029.87		—
E. Balance Available (C plus D)		$	1,838,674.74	$	190,441.10	$	622,759.91	$	—

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 59

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
9/1/2006		ADP Fees			$	178.64
9/1/2006	38588	Alice P. Neuhauser			$	664.04
9/1/2006	38589	New Wave Entertainment			$	75.00
9/1/2006	38590	Accurate Express			$	142.60
9/1/2006	38591	Clumeck,Stern,Schenkelburg& Getzo			$	2,762.50
9/8/2006		ADP Fees			$	112.69
9/8/2006	38592	Bonded Services, Inc			$	6,592.01
9/8/2006	38593	New Wave Entertainment			$	1,180.00
9/12/2006		ADP Taxes			$	6,581.71
9/12/2006	8329	Payroll			$	1,319.76
9/12/2006	8330	Payroll			$	8,586.99
9/12/2006	8331	Payroll			$	1,544.03
9/12/2006	8332	Payroll			$	2,744.04
9/13/2006	1004	Vision Films					$	14,598.04
9/13/2006		Wire Transfer	$	80,000.00
9/15/2006		ADP Fees			$	30.00
9/15/2006	38594	Accurate Express			$	78.20
9/15/2006	38595	Blue Shield of California			$	373.00
9/15/2006	38596	Federal Express			$	53.27
9/15/2006	38597	Recall			$	1,039.58
9/18/2006		Service Charge			$	130.25
9/21/2006		ADP Taxes			$	7,888.48
9/21/2006	38598	Two Easily Amused			$	1,887.84
9/21/2006	38599	Visual Impact			$	6,995.79
9/21/2006	38600	Arrowhead			$	36.44
9/21/2006	38601	Bowne of Los Angeles, Inc			$	359.70
9/21/2006	38602	Health Net			$	4,187.18
9/21/2006	38603	New Beginnings Enterprises			$	4,174.95
9/21/2006	38604	Accurate Express			$	55.20
9/21/2006	38605	FilmPool			$	325.00
9/22/2006	8333	Payroll			$	1,319.76
9/22/2006	8334	Payroll			$	10,133.50
9/22/2006	8335	Payroll			$	1,544.03
9/22/2006	8336	Payroll			$	2,744.04
9/22/2006	38606	KEREN AMINIA			$	1,473.65
9/22/2006		ADP Fees			$	112.69
9/29/2006		ADP Fees			$	291.33
9/29/2006		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	80,000.00	$	77,717.89	$	14,648.04		—
G. Ending Balance (E less F)			$	1,758,674.74	$	112,723.21	$	608,111.87	$	—

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 59

H. (1) Collateral Account:
a) Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
b) Account Number:	323221556
(2) Concentration Account:
a) Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
b) Account Number:	1891935460
I: Other monies on hand:
The Kushner Locke Company PWI account		$	731.10
Bank of Scotland — Pinocchio	936582	£	457,168.67	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	226,490.50	Pound Sterling	Time Deposit (KL’s interest is 50%)
Allied Pinocchio	10747301	$	—	Pound Sterling
Edge Entertainment	1891152710	$	172.89
I: Other monies on hand (continued):
Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).
Joint Venture Accounts:
BLT Venture	178-71491-7	$	95,381.96
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	—
KL\7 Venture	1890-69-6360	$	29,447.78
Denial Venture	1890-69-6501	$	151,714.83
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	7,362.50

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser Debtor in Possession

EX-99.6

EXHIBIT 99.6

Page 1 of 2

Office of the United States Trustee

In re:
     The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	59
For the Period FROM:	9/1/2006
TO:	9/30/2006

1 Profit and Loss Statement (Accrual Basis Only)

A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	28,688
Salaries and Wages — Other Employees	14,215
Total Salaries and Wages			42,903
Employee Benefits and Pensions			4,560
Employer Payroll Taxes/Fees	2,229
Other Taxes	—
Total Taxes			2,229
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	25,391
Interest Expense
Insurance	—
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	—
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	2,138
Storage Expense	7,632
Supplies, Office Expenses, Photocopies, etc.	36
Bad Debts
Miscellaneous Operating Expenses	540
Total Operating Expenses			89,603
Net Gain/Loss from Business Operations					(89,603	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			2,763
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					2,763
NET INCOME/(LOSS) FOR PERIOD				$	(92,366	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 59

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts	Accounts
	Payable	Receivable
Current Under 30 days		—
Overdue 31-60 days	—	—
Overdue 61-90 days	—
Overdue 91-120 days	—
Overdue Over 121 days	—
Due in the Future	1,300	1,494,882
TOTAL	1,300	1,494,882

3 Statement of Status of Payments to Secured Creditors and Lessors:

     No payments to Secured Creditors or Lessors were paid or payable during the reporting period.

4 Tax Liability

     No tax payments were paid or payable during the reporting period other than payroll taxes shown above.

5 Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2007		1/14/2007
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2007		2/14/2007
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2007		3/3/2007

6 Questions:

A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

          o Yes      Explain:

          x No

B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?

          o Yes      Explain:

          x No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

     Total unpaid post-petition Professional Fees during the reporting period: $ 389,236.02

8 Narrative Report of Significant Events and Events out of the Ordinary Course of Business:

     None.

9 Quarterly Fees:

     Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession 

EX-99.7

EXHIBIT 99.7

Page 1 of 3

Office of the United States Trustee

In re:
     The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION INTERIM STATEMENT

Statement Number:	60
For the Period FROM:	10/1/2006
TO:	10/31/2006

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,451,296.08	$	7,768,281.69	$	629,052.39
B. Less: Total Disbursements per all Prior Statements		$	7,960,954.55	$	7,721,514.69	$	20,940.52
C. Beginning Balance		$	1,758,674.74	$	112,723.21	$	608,111.87
D. Receipts during Current Period
Description
10/4/2006	Sci-Fi Europe					$	4,842.00
10/11/2006	Wire Transfer			$	35,000.00
10/16/2006				$	171,000.00
10/24/2006	Wire Transfer			$	120,000.00
10/27/2006	Daro Films	$	43,846.01
10/31/2006	interest	$	7,215.37
TOTAL RECEIPTS THIS PERIOD		$	51,061.38	$	326,000.00	$	4,842.00		—
E. Balance Available (C plus D)		$	1,809,736.12	$	438,723.21	$	612,953.87	$	—

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 60

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
10/3/2006		Wire Transfer - Lion’s Gate	$	75,000.00
10/6/2006		ADP Taxes			$	4,162.98
10/6/2006		ADP Fees			$	112.69
10/10/2006	8337	Payroll			$	1,319.74
10/10/2006	8338	Payroll			$	5,489.44
10/10/2006	8339	Payroll			$	1,544.01
10/10/2006	8340	Payroll			$	2,744.01
10/11/2006		WireTransfer - KL Comerica	$	35,000.00
10/12/2006		Wire Transfer - KL/7 Ven.	$	2,000.00
10/12/2006		Wire Transfer Swing Venture	$	5,968.63
10/12/2006		Wire Transfer - Denial Venture	$	10,091.66
10/13/2006		ADP Fees			$	20.00
10/13/2006	38607	Stutman Treister & Glatt			$	181,631.87
10/16/2006	38608	Bonded Services, Inc			$	6,595.90
10/16/2006	38609	New Wave Entertainment			$	300.00
10/16/2006	38610	AT&T			$	77.63
10/16/2006	38611	AT&T			$	332.51
10/16/2006	38612	Bowne of Los Angeles, Inc			$	530.90
10/16/2006	38613	Varien			$	300.00
10/16/2006	38614	ITE Solutions			$	890.00
10/16/2006	38615	Recall			$	1,262.20
10/16/2006	38616	Blue Shield of California			$	373.00
10/16/2006	38617	Franchise Tax Board			$	800.00
10/16/2006	38618	Franchise Tax Board			$	800.00
10/16/2006	38619	Franchise Tax Board			$	800.00
10/16/2006		WireTransfer - KL Comerica	$	171,000.00
10/17/2006		Service Charge			$	71.08
10/20/2006	38620	Federal Express			$	247.70
10/20/2006	38621	Accurate Express			$	29.33
10/20/2006	38622	Arrowhead			$	26.21
10/20/2006	38623	Clumeck,Stern,Schenkelburg& Getzo			$	1,300.00
10/20/2006	38624	Hacker, Douglas & Company LLP			$	18,072.50
10/23/2006	38625	ITE Solutions			$	230.00
10/23/2006	38626	Stutman Treister & Glatt			$	30,960.88
10/24/2006	8341	Payroll			$	1,319.76
10/24/2006	8342	Payroll			$	6,583.09
10/24/2006	8343	Payroll			$	1,544.03
10/24/2006	8344	Payroll			$	2,744.04
10/24/2006		ADP Taxes			$	4,971.45
10/24/2006		WireTransfer - KL Comerica	$	120,000.00
10/25/2006	38627	Health Net			$	4,187.18
10/25/2006	38628	Alice P.Neuhauser			$	327.14
10/25/2006	38629	New Beginnings Enterprises			$	4,174.95
10/25/2006	38630	United States Treasury			$	35.00
10/25/2006	38632	Brandon & Morner-Ritt			$	31,508.62
10/27/2006		ADP Fees			$	262.64
10/31/2006	38633	Dream LLC			$	1,634.85
10/31/2006	38634	AT&T			$	82.13
10/31/2006	38635	AT&T			$	322.42
10/31/2006	38636	Franchise Tax Board			$	6,400.00
10/31/2006		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	419,060.29	$	327,121.88	$	50.00		—
G. Ending Balance (E less F)			$	1,390,675.83	$	111,601.33	$	612,903.87	$	—

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 60

H. (1) Collateral Account:
a) Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
b) Account Number:	323221556
(2) Concentration Account:
a) Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
b) Account Number:	1891935460
I: Other monies on hand:
The Kushner Locke Company PWI account		$	731.10
Bank of Scotland — Pinocchio	936582	£	458,611.57	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	227,205.35	Pound Sterling	Time Deposit (KL’s interest is 50%)
Allied Pinocchio	10747301	$	—	Pound Sterling
Edge Entertainment	1891152710	$	172.89
I: Other monies on hand (continued):
Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).
Joint Venture Accounts:
BLT Venture	178-71491-7	$	95,381.96
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	—
KL\7 Venture	1890-69-6360	$	31,481.45
Denial Venture	1890-69-6501	$	162,166.82
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	13,331.13

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession 

EX-99.8

EXHIBIT 99.8

Page 1 of 2

Office of the United States Trustee

In re:
  The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	60
For the Period FROM:	10/1/2006
TO:	10/31/2006

1 Profit and Loss Statement (Accrual Basis Only)

A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	16,875
Salaries and Wages — Other Employees	14,215
Total Salaries and Wages			31,090
Employee Benefits and Pensions			4,560
Employer Payroll Taxes/Fees	1,727
Other Taxes	8,800
Total Taxes			10,527
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	95,272
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	2,235
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	327
Storage Expense	7,858
Supplies, Office Expenses, Photocopies, etc.	26
Bad Debts
Miscellaneous Operating Expenses	687
Total Operating Expenses			156,758
Net Gain/Loss from Business Operations					(156,758	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			263,474
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					263,474
NET INCOME/(LOSS) FOR PERIOD				$	(420,232	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 60

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts	Accounts
	Payable	Receivable
Current Under 30 days			—
Overdue 31-60 days	—		—
Overdue 61-90 days	—
Overdue 91-120 days	—
Overdue Over 121 days	—
Due in the Future	—		1,594,038
TOTAL	—		1,594,038

3	Statement of Status of Payments to Secured Creditors and Lessors: No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2007		1/14/2007
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2007		2/14/2007
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2007		3/3/2007

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes          Explain:
	þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes          Explain:
	þ No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

Total unpaid post-petition Professional Fees during the reporting period: $206,670.78

8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser  

Debtor in Possession