exv99w1

Exhibit 99.1

Office of the United States Trustee

In re:

DEBTOR IN POSSESSION INTERIM STATEMENT

The Kushner-Locke Company

Page 1 of 3

Statement Number:

Chapter 11

For the Period FROM:

10/1/2007

Case No. LA 01-44828-SB (Administratively Consolidated with

TO:

10/31/2007

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)

CASH ACTIVITY ANALYSIS (Cash Basis Only)


		Collateral		Concentration		City National
		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21

A. Total Receipts per all Prior Interim Statements		$	10,616,944.31	$	9,184,774.19	$	1,017,789.51

B. Less: Total Disbursements per all Prior Statements		$	9,632,663.18	$	9,145,961.82	$	21,540.52


C. Beginning Balance		$	1,252,614.34	$	104,768.58	$	996,248.99

D. Receipts during Current Period
Description
10/04/2007	S Gold (Blackhorse)					$	5,975.00
10/04/2007	Non-Stop - Materials			$	2,275.00
10/11/2007	Wire Transfer - KL			$	25,000.00
10/24/2007	Wire Transfer - KL			$	35,000.00
10/31/2007	interest	$	5,289.88


TOTAL RECEIPTS THIS PERIOD		$	5,289.88	$	62,275.00	$	5,975.00		—

E. Balance Available (C plus D)		$	1,257,904.22	$	167,043.58	$	1,002,223.99	$	—


DEBTOR IN POSSESSION INTERIM STATEMENT NO: 72		Page 2 of 3

F. Less: Disbursements during Current Period:


Date	Check No.	Payee/Purpose
10/05/2007	1000	Point 360			$	1,450.00
10/05/2007	Wire	ADP Fees			$	120.94
10/09/2007	Wire	ADP Taxes			$	5,810.53
10/09/2007	8446	Payroll			$	1,357.46
10/09/2007	8447	Payroll			$	7,548.20
10/09/2007	8448	Payroll			$	1,628.87
10/09/2007	8449	Payroll			$	2,888.20
10/11/2007		Wire Transfer - KL	$	25,000.00
10/12/2007	Wire	ADP Fees			$	20.00
10/12/2007	1001	Kevin Marino			$	347.64
10/12/2007	1002	Accurate Express			$	110.60
10/12/2007	1003	Federal Express			$	70.89
10/12/2007	1004	ITE Solutions			$	460.00
10/12/2007	1005	New Wave Entertainment			$	42.00
10/12/2007	1006	Varien			$	318.00
10/16/2007		Service Charge			$	175.42
10/19/2007	Wire	ADP Fees			$	120.94
10/19/2007	1007	Alice Neuhauser			$	2,000.00
10/19/2007	1008	Arrowhead			$	50.42
10/19/2007	1009	Blue Shield			$	387.00
10/19/2007	1010	Federal Express			$	14.26
10/19/2007	1011	Health Net			$	4,644.70
10/19/2007	1012	Keren Aminia			$	2,000.00
10/19/2007	1013	Kevin Marino			$	1,349.64
10/19/2007	1014	Recall			$	951.50
10/19/2007	1015	Tanya Miller			$	1,966.46
10/22/2007	Wire	ADP Taxes			$	4,861.37
10/23/2007	8450	Payroll			$	1,357.45
10/23/2007	8451	Payroll			$	6,366.95
10/23/2007	8452	Payroll			$	1,628.86
10/23/2007	8453	Payroll			$	2,888.18
10/24/2007	Wire	Wire Transfer - KL	$	35,000.00
10/26/2007	Wire	ADP Fees			$	281.83
10/26/2007	1016	Alice Neuhauser			$	418.28
10/26/2007	1017	AT & T			$	78.22
10/26/2007	1018	Federal Express			$	40.76
10/26/2007	1019	New Beginnings Enterprises			$	4,661.44
10/26/2007	1020	AT & T			$	331.90
10/31/2007		Control Agreement Fee					$	50.00

TOTAL DISBURSEMENTS THIS PERIOD:			$	60,000.00	$	58,748.91	$	50.00		—

G. Ending Balance (E less F)			$	1,197,904.22	$	108,294.67	$	1,002,173.99	$	—


DEBTOR IN POSSESSION INTERIM STATEMENT NO: 72		Page 3 of 3


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
Bank of Scotland — Pinocchio	936582	£	212,044.57	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	236,406.42	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	$	31,196.28
Denial Venture	1890-69-6501	$	239,091.85
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	12,651.13

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