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: October 25, 2005

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))

TABLE OF CONTENTS

	Item 8.01. Other Events.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
Exhibit 99.1
Exhibit 99.2

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 August 2005 are provided in this Current Report on Form 8-K. The operating report and interim statement have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORT AND THE INTERIM STATEMENT 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 REPORT AND INTERIM STATEMENT 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 REPORT OR THE INTERIM STATEMENT. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORT OR THE INTERIM STATEMENT. 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 August 1, 2005 to August 31, 2005.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from August 1, 2005 to August 31, 2005.

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: October 25, 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:
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:	46
For the Period FROM:	8/1/2005
TO:	8/31/2005

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			8,035,787.10		5,955,916.40		119,122.07
B.	Less: Total Disbursements per all Prior Statements			6,161,903.55		5,949,076.97		142.00
C.	Beginning Balance			2,142,216.76		72,795.64	$	118,980.07
D.	Receipts during Current Period
	Description
	8/1/2005	Moving Movies						10,980.00
	8/2/2005	Wire Transfer				34,000.00
	8/4/2005	Wire Transfer Credit						72.00
	8/5/2005	Wire Transfer Credit						12.00
	8/5/2005	On Line Banking Credit 2 Months						40.00
	8/5/2005	Lifetime		15,000.00
	8/5/2005	State of California		905.51
	8/9/2005	High Fliers		2,269.59
	8/16/2005	HBO		50,000.00
	8/23/2005	Wire Transfer				100,000.00
	8/31/2005	interest		6,526.44
	TOTAL RECEIPTS THIS PERIOD			74,701.54		134,000.00		11,104.00		-
E.	Balance Available (C plus D)			2,216,918.30		206,795.64	$	130,084.07	$	-

          DEBTOR IN POSSESSION INTERIM STATEMENT NO: 46 Page 2 of 3

F. Less: Disbursements during Current Period:

Date		Check No.	Payee/Purpose
8/1/2005			Wire Fee				12.00
8/2/2005			Wire Transfer	34,000.00
8/2/2005			Payroll Taxes		9,811.21
8/2/2005		8211	Payroll		1,213.46
8/2/2005		8212	Payroll		12,507.08
8/2/2005		8213	Payroll		1,419.17
8/2/2005		8214	Payroll		2,510.52
8/3/2005			Online Bankinf Fee				20.00
8/9/2005		38289	Bonded Services, Inc		6,597.61
8/9/2005		38290	Bowne of Los Angeles, Inc		473.00
8/9/2005		38291	Qwest Communications		51.97
8/9/2005		38292	Hollywood Reporter		215.42
8/11/2005		38293	Point 360		675.20
8/12/2005			Payroll Fees		123.27
8/15/2005			Service Charge		145.18
8/16/2005			Payroll Taxes		9,233.00
8/16/2005		8215	Payroll		1,213.46
8/16/2005		8216	Payroll		11,842.51
8/16/2005		8217	Payroll		1,419.17
8/16/2005		8218	Payroll		2,510.54
8/19/2005		38294	New Beginnings Enterprises		3,972.10
8/19/2005		38295	Health Net		3,239.13
8/19/2005		38296	Federal Express		38.26
8/19/2005		38297	Arrowhead		32.95
8/19/2005		38298	Accurate Express		66.10
8/19/2005		38299	Accurate Express		30.60
8/19/2005		38300	Digital Post Services		12.67
8/19/2005		38301	Blue Shield of California		373.00
8/19/2005		38302	Recall		1,110.48
8/22/2005		38303	KEREN AMINIA		1,396.92
8/22/2005		38304	Alice P.Neuhauser		751.47
8/22/2005		38305	Accurate Express		19.80
8/23/2005			Wire Transfer	100,000.00
8/26/2005			Payroll Fees		391.03
8/29/2005			Payroll Taxes		4497.02
8/30/2005		8219	Payroll		1213.47
8/30/2005		8220	Payroll		6192.55
8/30/2005		8221	Payroll		1419.17
8/30/2005		8222	Payroll		2510.53
8/31/2005			Control Agreement Fee				50.00
	TOTAL DISBURSEMENTS THIS PERIOD:			134,000.00	89,229.02		82.00		-
G. Ending Balance (E less F)				2,082,918.30	117,566.62	$	130,002.07	$	-

          DEBTOR IN POSSESSION INTERIM STATEMENT NO: 46 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		731.10
Bank of Scotland — Pinocchio	936582	677,237.14	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	218,102.88	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	17,669.61
KL\7 Venture	1890-69-6360	20,824.60
Denial Venture	1890-69-6501	73,155.71
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:
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

Page 1 of 2

Report Number:	46
For the Period FROM:	8/1/2005
TO:	8/31/2005

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	47,950
Salaries and Wages — Other Employees	19,385
Total Salaries and Wages			67,335
Employee Benefits and Pensions			3,612
Employer Payroll Taxes/Fees	2,693
Other Taxes
Total Taxes			2,693
Rent and Lease Expense (including parking)	3,972
Distribution/Delivery Expenses	843
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	52
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	2,148
Storage Expense	7,708
Supplies, Office Expenses, Photocopies, etc.	33
Bad Debts
Miscellaneous Operating Expenses	916
Total Operating Expenses			89,311
Net Gain/Loss from Business Operations					(89,311	)
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				$	(89,311	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 46 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		—		1,981,306
TOTAL		—		1,981,306

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	1/14/2006	1/14/2006
	Commercial Property (RENEWED)	St. Paul	2,000,000	2/14/2006	2/14/2006
	Errors & Omissions - Library (RENEWED)	St. Paul	3,000,000	3/3/2006	3/3/2006

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: $154,850.20
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