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: January 31, 2006

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

EX-99.1

EX-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 November 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 November 1, 2005 to November 30, 2005.

Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from November 1, 2005 to November 30, 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: January 31, 2006	THE KUSHNER-LOCKE COMPANY
	By:
		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:	49
Chapter 11	For the Period FROM:	11/1/2005
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2005
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)

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1			268,333.21		65,956.21
A. Total Receipts per all Prior Interim Statements			8,122,163.83		6,599,979.89		218,426.07
B. Less: Total Disbursements per all Prior Statements			6,797,903.55		6,589,595.05		324.00
C. Beginning Balance			1,592,593.49		76,341.05	$	218,102.07
D. Receipts during Current Period
Description
11/2/2005	Wire Transfer				35,000.00
11/4/2005	Vision Films						63,489.45
11/8/2005	Pisanos						17,965.00
11/9/2005	Wire Transfer				27,000.00
11/14/2005	Sting Music						12,478.00
11/23/2005	Wire Transfer				35,000.00
11/28/2005	Tanya Miller		200.00
11/28/2005	Wells Fargo		0.14
11/28/2005	Compact Collections		25,735.01
11/30/2005	Interest		4,988.11
TOTAL RECEIPTS THIS PERIOD			30,923.26		97,000.00		93,932.45		—
E. Balance Available (C plus D)			1,623,516.75		173,341.05	$	312,034.52	$	—

               DEBTOR IN POSSESSION INTERIM STATEMENT NO: 49 Page 2 of 3

F. Less: Disbursements during Current Period:

Date	Check No.	Payee/Purpose
11/2/2005		Wire Transfer	35,000.00
11/4/2005		ADP Fees		120.76
11/7/2005	38351	New Wave Entertainment		828.75
11/7/2005	38352	Bonded Services, Inc		6582.81
11/7/2005	38353	Federal Express		36.38
11/7/2005	38354	KEVIN MARINO		470.94
11/7/2005	38355	Qwest Communications		52.36
11/7/2005	38356	Bowne of Los Angeles, Inc		573.00
11/7/2005	38357	SBC		83.35
11/7/2005	38358	SBC		352.91
11/7/2005	38359	Accurate Express		36.00
11/8/2005		ADP Taxes		9274.31
11/8/2005	8239	Payroll		1213.46
11/8/2005	8240	Payroll		11889.98
11/8/2005	8241	Payroll		1419.17
11/8/2005	8242	Payroll		2510.53
11/9/2005		Wire Transfer	27,000.00
11/14/2005		ADP Fees		20.00
11/16/2005		Service Charge		157.97
11/17/2005	38360	United States Trustee		7500.00
11/17/2005	38361	United States Trustee		500.00
11/17/2005	38362	United States Trustee		500.00
11/17/2005	38363	United States Trustee		500.00
11/17/2005	38364	United States Trustee		500.00
11/17/2005	38365	United States Trustee		500.00
11/17/2005	38366	United States Trustee		500.00
11/17/2005	38367	United States Trustee		500.00
11/17/2005	38368	United States Trustee		500.00
11/18/2005		ADP Fees		103.27
11/22/2005	8243	Payroll		1213.46
11/22/2005	8244	Payroll		3202.23
11/22/2005	8246	Payroll		1419.17
11/22/2005	8247	Payroll		814.14
11/22/2005	8248	Payroll		2510.54
11/22/2005	38369	Payroll		11842.51
11/22/2005	38370	Accurate Express		113.20
11/22/2005	38371	New Wave Entertainment		20.00
11/22/2005	38372	Bowne of Los Angeles, Inc		379.00
11/22/2005	38373	Recall		1495.98
11/22/2005	38374	Arrowhead		16.20
11/22/2005	38375	KEREN AMINIA		755.65
11/22/2005		ADP Taxes		11138.95
11/23/2005		Wire Transfer	35,000.00
11/25/2005		ADP Fees		167.00
11/30/2005		Control Agreement Fee				50.00
TOTAL DISBURSEMENTS THIS PERIOD:			97,000.00	82,313.98		50.00		—
G. Ending Balance (E less F)			1,526,516.75	91,027.07	$	311,984.52	$	—

                DEBTOR IN POSSESSION INTERIM STATEMENT NO: 49 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	683,333.79	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	220,066.30	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	16,890.04
BLT Venture	16-524173-1101	330.45
KL MDP Sensation	60-066-930	—
KL\7 Venture	1890-69-6360	20,865.02
Denial Venture	1890-69-6501	76,452.55
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.

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:	49	Page 1 of 2
Chapter 11	For the Period FROM:	11/1/2005
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2005
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	38,064
	Salaries and Wages — Other Employees	18,423
	Total Salaries and Wages			56,487
	Employee Benefits and Pensions
	Employer Payroll Taxes/Fees	2,372
	Other Taxes
	Total Taxes			2,372
	Rent and Lease Expense (including parking)
	Distribution/Delivery Expenses	1,034
	Interest Expense
	Insurance
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)	489
	Depreciation and Amortization
	Business Equipment Leases
	Business Expense reimbursement	1,227
	Storage Expense	8,079
	Supplies, Office Expenses, Photocopies, etc.	16
	Bad Debts
	Miscellaneous Operating Expenses	1,160
	Total Operating Expenses			70,864
	Net Gain/Loss from Business Operations					(70,864	)
	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)			11,500
	Total Non-Operating Expenses					11,500
	NET INCOME/(LOSS) FOR PERIOD				$	(82,364	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 49 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		—		1,892,257
TOTAL		—		1,892,257

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: $ 154,491.54
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.

Debtor in Possession