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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	$	-

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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	$	-

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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