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: March 11, 2005

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	95-4079057
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer 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))

TABLE OF CONTENTS

EX-99.1

EX-99.2

EX-99.3

EX-99.4

EX-99.5

EX-99.6

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 October - December 2004 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 October 1, 2004 to October 31, 2004.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from October 1, 2004 to October 31, 2004.
	Exhibit 99.3. Monthly Interim Statement of the Registrant for the calendar month from November 1, 2004 to November 30, 2004.
	Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from November 1, 2004 to November 30, 2004.
	Exhibit 99.5. Monthly Interim Statement of the Registrant for the calendar month from December 1, 2004 to December 31, 2004.
	Exhibit 99.6. Monthly Operating Report of the Registrant for the calendar month from December 1, 2004 to December 31, 2004.

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: March 11, 2005	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

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:	36
Chapter 11	For the Period FROM:	10/1/2004
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	10/31/2004
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 Account		Concentration Account
Balance before Statement #1		268,333.21		65,956.21
A. Total Receipts per all Prior Interim Statements		5,991,688.36		4,743,666.40
B. Less: Total Disbursements per all Prior Statements		4,975,903.55		4,748,606.84
C. Beginning Balance	$	1,284,118.02	$	61,015.77
D. Receipts during Current Period
Description
10/13/2004           Wire Transfer				28,000.00
10/22/2004           Flextech		11,042.50
10/27/2004           Wire Transfer				44,000.00
10/19/2004            interest		1,591.51
TOTAL RECEIPTS THIS PERIOD		12,634.01		72,000.00		—		—
E. Balance Available (C plus D)	$	1,296,752.03	$	133,015.77	$	—	$	—

       DEBTOR IN POSSESSION INTERIM STATEMENT NO: 36 Page 2 of 3      

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
10/1/2004		ADP Fees				157.24
10/8/2004		ADP Fees				97.24
10/11/2004	38061	Accurate Express				262.80
10/11/2004	38062	Qwest Communications				67.15
10/11/2004	38063	Bonded Services, Inc				6613.31
10/11/2004	38064	Regan Group				139.00
10/12/2004		ADP Taxes				5486.23
10/12/2004	8126	Payroll				1019.10
10/12/2004	8127	Payroll				7638.60
10/12/2004	8128	Payroll				1351.59
10/12/2004	8129	Payroll				2385.41
10/13/2004		Wire Transfer		28,000.00
10/15/2004		ADP Fees				20.00
10/22/2004		ADP Fees				97.24
10/25/2004	38065	Recall				1002.60
10/25/2004	38066	KEREN AMINIA				1868.95
10/25/2004	38067	Filmtreat West Corp.				449.50
10/25/2004	38068	Federal Express				52.44
10/25/2004	38069	Irubin Consulting				300.00
10/25/2004	38070	Health Net				2335.31
10/25/2004	38071	Arrowhead				13.18
10/25/2004	38072	Blue Shield of California				316.00
10/26/2004		ADP Taxes				10012.27
10/26/2004	8130	Payroll				1019.09
10/26/2004	8131	Payroll				12921.55
10/26/2004	8132	Payroll				1351.57
10/26/2004	8133	Payroll				2385.39
10/27/2004	38073	New Beginnings Enterprises				3802.00
10/27/2004	38074	ATI Solutions, Inc.				200.00
10/27/2004	38075	Preferred Media Inc				98.50
10/27/2004	38076	SBC				83.00
10/27/2004	38077	SBC				367.95
10/27/2004		Wire Transfer		44,000.00
10/28/2004	38078	GrapheeX Inc.				3195.54
10/29/2004	38079	Bonded Services, Inc				6639.65
10/29/2004		ADP Fees				204.92
TOTAL DISBURSEMENTS THIS PERIOD:				72,000.00		73,954.32		—		—
G. Ending Balance (E less F)			$	1,224,752.03	$	59,061.45	$	—	$	—

       DEBTOR IN POSSESSION INTERIM STATEMENT NO: 36 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	1891215236	$	731.10
Bank of Scotland - Pinocchio	3516309		854,077.70	Pound Sterling	Time Deposit
Bank of Scotland - Basil	3516317		210,184.72	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio	10747301		382.86	Pound Sterling
Edge Entertainment	1891152710	$	172.89
European Films LTD	1890563818	$	7,051.58
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	$	16,890.04
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	17,719.61
KL\7 Venture	1890-69-6360	$	11,926.42
Denial Venture	1890-69-6501	$	42,444.24
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	6,957.50

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 Neuhauser

Debtor in Possession

EX-99.2

Exhibit 99.2

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company	Report Number:	36	Page 1 of 2
	For the Period FROM:	10/1/2004
Chapter 11	TO:	10/31/2004
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)

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	32,419
Salaries and Wages - Other Employees	11,781
Total Salaries and Wages			44,200
Employee Benefits and Pensions			2,651
Employer Payroll Taxes/Fees	1,948
Other Taxes
Total Taxes			1,948
Rent and Lease Expense (including parking)	3,802
Distribution/Delivery Expenses	4,198
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	518
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,869
Storage Expense	14,256
Supplies, Office Expenses, Photocopies, etc.
Bad Debts
Miscellaneous Operating Expenses	513
Total Operating Expenses			73,954
Net Gain/Loss from Business Operations					(73,954	)
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)
Total Non-Operating Expenses					—
NET INCOME/(LOSS) FOR PERIOD				$	(73,954	)

     DEBTOR IN POSSESSION OPERATING REPORT NO: 36 Page 2 of 2          

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		(0	)		1,589,397
TOTAL		(0	)		1,589,397

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		1/14/2005		1/14/2005
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2005		2/14/2005
Errors & Omissions - Library (RENEWED)	St. Paul		3,000,000		3/3/2005		3/3/2005

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: $ 221,950.83
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 Neuhauser

Debtor in Possession

EX-99.3

Exhibit 99.3

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company								Page 1 of 3
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)	Statement Number: For the Period FROM: TO:						37         11/1/2004 11/31/2004
CASH ACTIVITY ANALYSIS (Cash Basis Only)	Collateral Account			Concentration Account
Balance before Statement #1		268,333.21			65,956.21
A. Total Receipts per all Prior Interim Statements		6,004,322.37			4,815,666.40
B. Less: Total Disbursements per all Prior Statements		5,047,903.55			4,822,561.16
C. Beginning Balance	$	1,224,752.03		$	59,061.45
D. Receipts during Current Period
Description
11/1/2004            Tanya Miller		990.00
11/1/2004            AT & T		15.11
11/5/2004            HD Net		22,500.00
11/5/2004            Tanya Miller		330.00
11/5/2004            Lifetime		186,666.68
11/9/2004            Wire Transfer					38,000.00
11/10/2004           Daro		21,127.84
11/10/2004           A Neuhauser		(330.00	)
11/17/2004           AB Svensk		119.72
11/18/2004           Daro		29,980.84
11/22/2004           Tanya Miller		550.00
11/23/2004           Wire Transfer					55,000.00
11/30/2004           interest		2,304.39
TOTAL RECEIPTS THIS PERIOD		264,254.58			93,000.00		—			—
E. Balance Available (C plus D)	$	1,489,006.61		$	152,061.45	$	—		$	—

	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 37					Page 2 of 3
F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
11/5/2004		ADP Fees			114.73
11/9/2004		Wire Transfer	38,000.00
11/9/2004		ADP Taxes			10319.05
11/9/2004	8134	Payroll			1019.10
11/9/2004	8135	Payroll			13274.17
11/9/2004	8136	Payroll			1351.58
11/9/2004	8137	Payroll			2385.40
11/11/2004	38080	United States Trustee			250.00
11/11/2004	38081	United States Trustee			3750.00
11/11/2004	38082	United States Trustee			250.00
11/11/2004	38083	United States Trustee			250.00
11/11/2004	38084	United States Trustee			250.00
11/11/2004	38085	United States Trustee			250.00
11/11/2004	38086	United States Trustee			250.00
11/11/2004	38087	United States Trustee			250.00
11/11/2004	38088	United States Trustee			250.00
11/11/2004	38089	Accurate Express			59.40
11/11/2004	38090	Qwest Communications			47.05
11/11/2004	38091	Personnel Concepts Limited			24.74
11/12/2004		ADP Fees			20.00
11/17/2004	38092	Arrowhead			26.36
11/17/2004	38093	Blue Shield of California			316.00
11/17/2004	38094	Federal Express			12.32
11/17/2004	38095	Irubin Consulting			104.85
11/17/2004	38096	Point 360			300.00
11/17/2004	38097	Alice P.Neuhauser			673.27
11/19/2004		ADP Fees			97.24
11/22/2004	38098	New Beginnings Enterprises			3802.00
11/22/2004	38099	Health Net			2335.31
11/23/2004		Wire Transfer	55,000.00
11/23/2004		ADP Taxes			11552.17
11/23/2004	8138	Payroll			1019.08
11/23/2004	8139	Payroll			14728.74
11/23/2004	8140	Payroll			1351.57
11/23/2004	8141	Payroll			2417.87
11/24/2004	38100	KEREN AMINIA			746.12
11/24/2004	38101	Accurate Express			61.20
11/24/2004	38102	Alice P.Neuhauser			126.81
11/24/2004	38103	SBC			83.35
11/24/2004	38104	SBC			361.39
11/24/2004	38105	Brandon & Morner-Ritt			11800.00
11/29/2004	38106	Recall			1054.25
11/30/2004	38107	Bowne of Los Angeles, Inc			1615.00
TOTAL DISBURSEMENTS THIS PERIOD:			93,000.00		88,950.12	—	—
G. Ending Balance (E less F)			$1,396,006.61	$	63,111.33	$—	$—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 37 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	1891215236	$	731.10
Bank of Scotland - Pinocchio	3516309		857,428.96	Pound Sterling	Time Deposit
Bank of Scotland - Basil	3516317		211,009.45	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio	10747301		382.86	Pound Sterling
Edge Entertainment	1891152710	$	172.89
European Films LTD	1890563818	$	7,051.58
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	$	16,890.04
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	17,714.61
KL\7 Venture	1890-69-6360	$	11,929.84
Denial Venture	1890-69-6501	$	42,461.64
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	6,957.50

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 Neuhauser

Debtor in Possession

EX-99.4

Exhibit 99.4

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	37	Page 1 of 2
Chapter 11	For the Period FROM:	11/1/2004
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2004
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)

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	46,069
Salaries and Wages - Other Employees	11,781
Total Salaries and Wages			57,850
Employee Benefits and Pensions			2,651
Employer Payroll Taxes/Fees	1,801
Other Taxes
Total Taxes			1,801
Rent and Lease Expense (including parking)	3,802
Distribution/Delivery Expenses	433
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	492
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,546
Storage Expense	1,054
Supplies, Office Expenses, Photocopies, etc.
Bad Debts
Miscellaneous Operating Expenses	1,771
Total Operating Expenses			71,400
Net Gain/Loss from Business Operations					(71,400	)
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			11,800
Other Non-Operating Expenses (Board/Trustee fees)			5,750
Total Non-Operating Expenses					17,550
NET INCOME/(LOSS) FOR PERIOD				$	(88,950	)

     DEBTOR IN POSSESSION OPERATING REPORT NO: 37 Page 2 of 2     

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		123		1,350,230
TOTAL		123		1,350,230

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		1/14/2005		1/14/2005
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2005		2/14/2005
Errors & Omissions - Library (RENEWED)	St. Paul		3,000,000		3/3/2005		3/3/2005

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:
	þNo

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:                                         $ 258,916.50
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 Neuhauser

Debtor in Possession 

EX-99.5

Exhibit 99.5

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company			Page 1 of 3
Chapter 11	Statement Number:	38
Case No. LA 01-44828-SB (Administratively Consolidated with	For the Period FROM:	12/1/2004
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- 44833-	TO:	12/31/2004
SB through LA 01-44838-SB; and LA 01-44841-SB)

CASH ACTIVITY ANALYSIS (Cash Basis Only)	Collateral		Concentration
	Account		Account
Balance before Statement #1		268,333.21		65,956.21
A. Total Receipts per all Prior Interim Statements		6,268,576.95		4,908,666.40
B. Less: Total Disbursements per all Prior Statements		5,140,903.55		4,911,511.28
C. Beginning Balance	$	1,396,006.61	$	63,111.33
D. Receipts during Current Period
Description
12/7/2004       Daro		46,536.47
12/8/2004       Wire Transfer				60,000.00
12/9/2004       Flextech Rights LTD		41,480.00
12/14/2004      Court TV		92,500.00
12/22/2004      Wire Transfer				55,000.00
12/31/2004      interest		2,418.46
TOTAL RECEIPTS THIS PERIOD		182,934.93		115,000.00		—		—
E. Balance Available (C plus D)	$	1,578,941.54	$	178,111.33	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 38 Page 2 of 3     

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
12/3/2004		ADP Fees				254.48
12/7/2004		ADP Taxes				9593.47
12/7/2004	8142	Payroll				1019.11
12/7/2004	8143	Payroll				12480.76
12/7/2004	8144	Payroll				1351.58
12/7/2004	8145	Payroll				2420.67
12/8/2004		Wire Transfer		60,000.00
12/8/2004	38108	Accurate Express				18.80
12/8/2004	38109	Bonded Services, Inc				6598.72
12/8/2004	38110	Eagle				186.31
12/8/2004	38111	Qwest Communications				49.24
12/15/2004	38112	Brandon & Morner-Ritt				22429.99
12/15/2004	38113	Federal Express				85.31
12/17/2004		ADP Fees				117.24
12/21/2004	38114	Point 360				364.00
12/21/2004		ADP Taxes				10974.12
12/21/2004	8146	Payroll				1019.09
12/21/2004	8147	Payroll				14067.56
12/21/2004	8148	Payroll				1351.58
12/21/2004	8149	Payroll				2420.66
12/22/2004		Wire Transfer		55,000.00
12/23/2004	38115	New Beginnings Enterprises				3802.00
12/23/2004	38116	Strategic Law Partners, LLP				13109.00
12/23/2004	38117	Health Net				2693.16
12/23/2004	38118	City Of Beverly Hills				411.73
12/23/2004	38119	Two Easily Amused				2768.65
12/23/2004	38120	Recall				881.42
12/23/2004	38121	Blue Shield of California				316.00
12/23/2004	38122	Arrowhead				39.54
12/23/2004	38123	Doniger & Fetter				123.49
12/23/2004	38124	KEREN AMINIA				1189.07
12/31/2004		ADP Fees				254.48
TOTAL DISBURSEMENTS THIS PERIOD:				115,000.00		112,391.23		—		—
G. Ending Balance (E less F)			$	1,463,941.54	$	65,720.10	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 38 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	1891215236	$	731.10
Bank of Scotland - Pinocchio	3516309		860,698.93	Pound Sterling	Time Deposit
Bank of Scotland - Basil	3516317		211,746.53	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio	10747301		382.86	Pound Sterling
Edge Entertainment	1891152710	$	172.89
European Films LTD	1890563818	$	7,051.58

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	$	16,890.04
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	17,709.61
KL\7 Venture	1890-69-6360	$	11,933.37
Denial Venture	1890-69-6501	$	42,479.85
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	6,957.50

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 Neuhauser

Debtor in Possession 

EX-99.6

Exhibit 99.6

Office of the United States Trustee

In re:   The Kushner-Locke Company	DEBTOR IN POSSESSION OPERATING REPORT
	Report Number:	38	Page 1 of 2
Chapter 11	For the Period FROM:	12/1/2004
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)	TO:	12/31/2004

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	43,388
Salaries and Wages - Other Employees	11,781
Total Salaries and Wages			55,168
Employee Benefits and Pensions			3,009
Employer Payroll Taxes/Fees	2,157
Other Taxes	412
Total Taxes			2,568
Rent and Lease Expense (including parking)	3,802
Distribution/Delivery Expenses	3,237
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	49
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,189
Storage Expense	7,480
Supplies, Office Expenses, Photocopies, etc.	226
Bad Debts
Miscellaneous Operating Expenses
Total Operating Expenses			76,729
Net Gain/Loss from Business Operations					(76,729	)
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			35,662
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					35,662
NET INCOME/(LOSS) FOR PERIOD				$	(112,391	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 38                     Page 2 of 2

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		86		1,216,229
TOTAL		86		1,216,229

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		1/14/2005		1/14/2005
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2005		2/14/2005
Errors & Omissions - Library (RENEWED)	St. Paul		3,000,000		3/3/2005		3/3/2005

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:       $261,916.01
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 Neuhauser

Debtor in Possession