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:	52
Chapter 11	For the Period FROM:	2/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	2/28/2006
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		$	8,382,774.11	$	6,901,979.89	$	455,354.52
B. Less: Total Disbursements per all Prior Statements		$	7,099,903.55	$	6,909,285.86	$	5,227.14
C. Beginning Balance		$	1,551,203.77	$	58,650.24	$	450,127.38
D. Receipts during Current Period
Description
2/1/2006	Wire Transfer			$	45,000.00
2/3/2006	Bank of Scotland	$	402,985.05
2/9/2006	Daro Films	$	984.10
2/15/2006	Wire Transfer			$	50,000.00
2/16/2006	Sting Music					$	12,478.00
2/21/2006	Maroil Limited					$	14,800.00
2/27/2006	Compact Collections	$	42,731.54
2/28/2006	interest	$	6,194.92
TOTAL RECEIPTS THIS PERIOD		$	452,895.61	$	95,000.00	$	27,278.00		—
E. Balance Available (C plus D)		$	2,004,099.38	$	153,650.24	$	477,405.38	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 52 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
2/15/2006			Wire Transfer	$	45,000.00
2/3/2006			ADP Fees			$	84.00
2/3/2006		38424	Bowne of Los Angeles, Inc			$	377.00
2/3/2006		38425	KEVIN MARINO			$	97.83
2/3/2006		38426	KEREN AMINIA			$	101.89
2/3/2006		38427	USI of Southern California			$	2,772.00
2/3/2006		38428	Qwest Communications			$	53.67
2/3/2006		38429	United States Trustee			$	250.00
2/3/2006		38430	United States Trustee			$	3,750.00
2/3/2006		38431	United States Trustee			$	250.00
2/3/2006		38432	United States Trustee			$	250.00
2/3/2006		38433	United States Trustee			$	250.00
2/3/2006		38434	United States Trustee			$	250.00
2/3/2006		38435	United States Trustee			$	250.00
2/3/2006		38436	United States Trustee			$	250.00
2/3/2006		38437	United States Trustee			$	250.00
2/10/2006			ADP Fees			$	106.17
2/10/2006		38438	New Wave Entertainment			$	65.00
2/10/2006		38439	Accurate Express			$	58.00
2/10/2006		38440	Recall			$	968.37
2/14/2006		8269	Payroll			$	1,319.75
2/14/2006		8270	Payroll			$	10,138.42
2/14/2006		8271	Payroll			$	1,354.02
2/14/2006		8272	Payroll			$	2,744.03
2/14/2006			ADP Taxes			$	11,832.13
2/15/2006			Wire Transfer	$	50,000.00
2/15/2006			Service Charge			$	171.95
2/17/2006		38441	Brandon & Morner-Ritt			$	13,724.20
2/17/2006		38442	Bowne of Los Angeles, Inc			$	481.00
2/17/2006		38443	USI of Southern California			$	233.00
2/17/2006		38444	Blue Shield of California			$	373.00
2/17/2006		38445	Federal Express			$	33.58
2/17/2006		38446	Arrowhead			$	40.99
2/23/2006			ADP Fees			$	261.63
2/24/2006			ADP Fees			$	126.17
2/24/2006		38447	New Beginnings Enterprises			$	3,972.10
2/24/2006		38448	Health Net			$	4,187.18
2/27/2006			Vision Fils					$	715.34
2/28/2006			ADP Taxes			$	7,629.43
2/28/2006		8273	Payroll			$	1,319.75
2/28/2006		8274	Payroll			$	6,942.61
2/28/2006		8275	Payroll			$	1,544.02
2/28/2006		8276	Payroll			$	2,744.02
2/28/2006			Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	95,000.00	$	81,606.91	$	765.34	—
G. Ending Balance (E less F)				$	1,909,099.38	$	72,043.33	$	476,640.04	$ —

           DEBTOR IN POSSESSION INTERIM STATEMENT NO: 52 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	£	448,060.23	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	221,978.20	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	$	20,912.67
	Denial Venture	1890-69-6501	$	76,638.53
	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 Neuhauser

Debtor in Possession