Exhibit 99.1

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

Page 1 of 3

Statement Number:	41
For the Period FROM:	3/1/2005
TO:	3/31/2005

			Collateral		Concentration
CASH ACTIVITY ANALYSIS (Cash Basis Only)			Account		Account
Balance before Statement #1				268,333.21		65,956.21
A.	Total Receipts per all Prior Interim Statements			6,659,544.77		5,235,916.40
B.	Less: Total Disbursements per all Prior Statements			5,441,903.55		5,238,068.77
C.	Beginning Balance			1,485,974.43		63,803.84
D.	Receipts during Current Period
	Description
	3/3/2005	Wire Transfer				45,000.00
	3/16/2005	Wire Transfer				35,000.00
	3/23/2005	Tango/City National		270,000.00
	3/23/2005	Tango/City National		270,000.00
	3/25/2005	Lifetime		18,333.34
	3/25/2005	A&E		232.52
	3/25/2005	Hamdon		892.00
	3/25/2005	Chris Corabi		75.00
	3/30/2005	Wire Transfer				35,000.00
	3/31/2005	interest		3,246.95
	TOTAL RECEIPTS THIS PERIOD			562,779.81		115,000.00		—		—
E.	Balance Available (C plus D)			2,048,754.24		178,803.84	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 41 Page 2 of 3

				Collateral		Concentration
CASH ACTIVITY ANALYSIS (Cash Basis Only)				Account		Account
F.	Less: Disbursements during Current Period:
	Date	Check No.	Payee/Purpose
	3/1/2005		ADP Taxes				10,856.29
	3/1/2005	8166	Payroll				1213.46
	3/1/2005	8167	Payroll				10365.10
	3/1/2005	8168	Payroll				1419.17
	3/1/2005	8169	Payroll				2510.53
	3/3/2005		Wire Transfer		45,000.00
	3/4/2005		ADP Fees				157.24
	3/11/2004		ADP Fees				97.24
	3/14/2005	38174	Federal Express				69.99
	3/14/2005	38175	Recall				1459.83
	3/14/2005	38176	Department Of Consumer Affairs				200.00
	3/14/2005	38177	Qwest Communications				67.06
	3/14/2005	38178	UPS Supply Chain Solutions, Inc.				69.80
	3/14/2005	38179	Bonded Services, Inc				6597.91
	3/14/2005	38180	Franchise Tax Board				800.00
	3/14/2005	38181	Franchise Tax Board				800.00
	3/14/2005	38182	Franchise Tax Board				800.00
	3/15/2005		ADP Taxes				8200.52
	3/15/2005	8170	Payroll				1213.46
	3/15/2005	8171	Payroll				10655.79
	3/15/2005	8172	Payroll				1419.16
	3/15/2005	8173	Payroll				2510.53
	3/16/2005		Wire Transfer		35,000.00
	3/18/2005		ADP Fees				10.00
	3/23/2005	38183	Clumeck, Stern, Schenkelburg & Getzo				4550.00
	3/23/2005	38184	KEVIN MARINO				440.56
	3/23/2005	38185	Blue Shield of California				373.00
	3/23/2005	38186	LPS				65.00
	3/23/2005	38187	Digital Post Services				414.54
	3/23/2005	38188	Arrowhead				29.38
	3/23/2005	38189	Accurate Express				15.30
	3/24/2005	38190	Health Net				3239.13
	3/25/2005		ADP Fees				97.24
	3/29/2005		ADP Taxes				9067.80
	3/29/2005	38191	New Beginnings Enterprises				3765.00
	3/29/2005	38192	Point 360				364.00
	3/29/2005	38193	GrapheeX Inc.				519.60
	3/29/2005	38194	SBC				361.07
	3/29/2005	38195	SBC				83.84
	3/29/2005	38196	Qwest Communications				52.00
	3/29/2005	38197	Doniger & Fetter				26.58
	3/29/2005	8174	Payroll				1213.46
	3/29/2005	8175	Payroll				11652.64
	3/29/2005	8176	Payroll				1419.18
	3/29/2005	8177	Payroll				2510.53
	3/30/2005		Wire Transfer		35,000.00
	TOTAL DISBURSEMENTS THIS PERIOD:				115,000.00		101,752.93		—		—
G.	Ending Balance (E less F)				1,933,754.24		77,050.91	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 41 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	868,946.35	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3516317	213,948.43	Pound Sterling	Time Deposit	(KL’ s interest is 50%)
Allied Pinocchio	10747301	—	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	17,694.61
KL\7 Venture	1890-69-6360	11,946.83
Denial Venture	1890-69-6501	72,553.08
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