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