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: June 21, 2006

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

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 report and monthly interim statement required by the Bankruptcy Court for April 2006 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 REPORT AND INTERIM STATEMENT 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 April 1, 2006 to April 30, 2006.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from April 1, 2006 to April 30, 2006.

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: June 21, 2006	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

Page 1 of 3

Exhibit 99.1

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:	54
Chapter 11		For the Period FROM:	4/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	4/30/2006
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		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		$	8,850,866.49	$	7,128,229.89	$	495,110.52
B. Less: Total Disbursements per all Prior Statements		$	7,314,903.55	$	7,087,803.18	$	6,042.48
C. Beginning Balance		$	1,804,296.15	$	106,382.92	$	489,068.04
D. Receipts during Current Period
Description
4/4/2006	Pissanos					$	26,970.00
4/12/2006	Wire Transfer - KL Chase			$	55,000.00
4/18/2006	Monacoa Intl.					$	13,375.00
4/25/2006	Wire Transfer - KL Chase			$	45,000.00
4/25/2006	Sting Music					$	12,478.00
4/28/2006	interest	$	6,445.78
TOTAL RECEIPTS THIS PERIOD		$	6,445.78	$	100,000.00	$	52,823.00		-
E. Balance Available (C plus D)		$	1,810,741.93	$	206,382.92	$	541,891.04	$	-

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 54

F. Less: Disbursements during Current Period:

Date	Check No.	Payee/Purpose
4/7/2006		ADP Fees			$	106.17
4/10/2006	38475	Accurate Express				18.00
4/10/2006	38476	Bonded Services, Inc				6585.18
4/10/2006	38477	Clumeck,Stern,Schenkelburg& Getzo				1300.00
4/10/2006	38478	KEVIN MARINO				146.36
4/10/2006	38479	Qwest Communications				50.15
4/10/2006	38480	Recall				1099.04
4/10/2006	38481	Varien				300.00
4/11/2006		ADP Taxes				9216.04
4/11/2006	8285	Payroll				1319.74
4/11/2006	8286	Payroll				11659.29
4/11/2006	8287	Payroll				1544.01
4/11/2006	8288	Payroll				2744.01
4/12/2006		Wire Transfer - KL	$	55,000.00
4/13/2006	38482	Morgan Lewis				20161.28
4/14/2006		ADP Fees				20.00
4/17/2006		Service Charge				145.42
4/21/2006		ADP Fees				273.17
4/21/2006	38483	Health Net				4187.18
4/21/2006	38484	New Beginnings Enterprises				4012.10
4/21/2006	38485	KEVIN MARINO				158.48
4/21/2006	38486	Personnel Concepts Limited				70.31
4/21/2006	38487	Federal Express				28.11
4/21/2006	38488	Blue Shield of California				373.00
4/21/2006	38489	Arrowhead				34.40
4/21/2006	38490	Bowne of Los Angeles, Inc				442.00
4/21/2006	38491	Alice P.Neuhauser				439.09
4/21/2006		Wire- IMEC Basil	$	6,051.00
4/25/2006		ADP Taxes				9791.21
4/25/2006		Wire Transfer - KL	$	45,000.00
4/25/2006	8289	Payroll				1319.76
4/25/2006	8290	Payroll				12320.47
4/25/2006	8291	Payroll				1544.03
4/25/2006	8292	Payroll				2744.04
4/28/2006	38492	Accurate Express				43.20
4/28/2006	38493	Clumeck,Stern,Schenkelburg& Getzo				1463.00
4/28/2006	38494	Los Angeles County Tax Collector				40.21
4/28/2006	38495	AT&T				82.53
4/28/2006	38496	AT&T				354.64
4/28/2006	38497	Brandon & Morner-Ritt				8101.38
4/28/2006		Control Agreement Fee					$	50.00
4/28/2006		ADP Fees			$	99.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	106,051.00	$	104,336.00	$	50.00		-
G. Ending Balance (E less F)			$	1,704,690.93	$	102,046.92	$	541,841.04	$	-

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 54

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	£	450,526.23	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	223,199.71	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	$	30,027.54
Denial Venture	1890-69-6501	$	76,784.82
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	8,097.50

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 P. Neuhauser

Debtor in Possession

EX-99.2

Page 1 of 2

Exhibit 99.2

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	54
Chapter 11	For the Period FROM:	4/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	4/31/2006
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	38,344
Salaries and Wages — Other Employees	14,215
Total Salaries and Wages			52,559
Employee Benefits and Pensions			4,560
Employer Payroll Taxes/Fees	2,142
Other Taxes	40
Total Taxes			2,182
Rent and Lease Expense (including parking)	4,012
Distribution/Delivery Expenses	6,140
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	787
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	744
Storage Expense	7,684
Supplies, Office Expenses, Photocopies, etc.	105
Bad Debts
Miscellaneous Operating Expenses	637
Total Operating Expenses			79,411
Net Gain/Loss from Business Operations					(79,411	)
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			31,026
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					31,026
NET INCOME/(LOSS) FOR PERIOD				$	(110,437	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 54

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		2,811		1,458,334
TOTAL		2,811		1,458,334

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	1/14/2007	1/14/2007
Commercial Property (RENEWED)	St. Paul	2,000,000	2/14/2007	2/14/2007
Errors & Omissions — Library (RENEWED)	St. Paul	3,000,000	3/3/2007	3/3/2007

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?
	oYes                      Explain:
	þNo
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?
	oYes                     Explain:
	þNo

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period: $ 291,534.78
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 P. Neuhauser

Debtor in Possession