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 8, 2007

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California
(State or other jurisdiction
of incorporation) 0-17295
(Commission File Number) 95-4079057
(IRS Employer
Identification No.)

280 South Beverly Drive, Suite 205, Beverly Hills, California
(Address of principal executive offices) 90212
(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))

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 2006 — March 2007 are provided in this Current Report on Form 8-K. The operating reports and interim statements have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS AND THE INTERIM STATEMENTS 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 REPORTS AND INTERIM STATEMENTS 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 REPORTS OR THE INTERIM STATEMENTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. 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, 2006 to November 30, 2006.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from November 1, 2006 to November 30, 2006.
	Exhibit 99.3. Monthly Interim Statement of the Registrant for the calendar month from December 1, 2006 to December 31, 2006.
	Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from December 1, 2006 to December 31, 2006.
	Exhibit 99.5. Monthly Interim Statement of the Registrant for the calendar month from January 1, 2007 to January 31, 2007.
	Exhibit 99.6. Monthly Operating Report of the Registrant for the calendar month from January 1, 2007 to January 31, 2007.
	Exhibit 99.7. Monthly Interim Statement of the Registrant for the calendar month from February 1, 2007 to February 28, 2007.
	Exhibit 99.8. Monthly Operating Report of the Registrant for the calendar month from February 1, 2007 to February 28, 2007.
	Exhibit 99.9. Monthly Interim Statement of the Registrant for the calendar month from March 1, 2007 to March 31, 2007.
	Exhibit 99.10. Monthly Operating Report of the Registrant for the calendar month from March 1, 2007 to March 31, 2007.

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 14, 2007	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:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:	61	Page 1 of 3
Chapter 11		For the Period FROM:	11/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	11/30/2006
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)

		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		$	9,502,357.46	$	8,094,281.69	$	633,894.39
B. Less: Total Disbursements per all Prior Statements		$	8,380,014.84	$	8,048,636.57	$	20,990.52
C. Beginning Balance		$	1,390,675.83	$	111,601.33	$	612,903.87
D. Receipts during Current Period
Description
11/7/2006	Lifetime	$	115,000.00
11/7/2006	Starz	$	10,000.00
11/13/2006	Wire Transfer			$	70,000.00
11/16/2006	Compact Collections	$	25,910.92
11/16/2006	Force Entertainment					$	2,380.00
11/16/2006	En Pantalla					$	10,000.00
11/17/2006	Force Entertainment					$	21,580.00
11/24/2006	Wire Transfer			$	50,000.00
11/28/2006	En Pantalla					$	19,450.00
11/28/2006	Vision Films					$	19,937.52
11/30/2006	Showtome	$	50,000.00
11/30/2006	interest	$	5,950.52
TOTAL RECEIPTS THIS PERIOD		$	206,861.44	$	120,000.00	$	73,347.52		—
E. Balance Available (C plus D)		$	1,597,537.27	$	231,601.33	$	686,251.39	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 61 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
11/3/2006			ADPFees			$	145.00
11/6/2006		38630	United States Treasury			$	(35.00	)
11/7/2006			ADPTaxes			$	6,200.32
11/7/2006		8345	Payroll			$	1,319.77
11/7/2006		8346	Payroll			$	8,112.37
11/7/2006		8347	Payroll			$	1,544.04
11/7/2006		8348	Payroll			$	2,744.04
11/9/2006		38637	Accurate Express			$	32.20
11/9/2006		38638	Bonded Services, Inc			$	6,594.06
11/9/2006		38639	KEVIN MARINO			$	84.12
11/9/2006		38640	United States Trustee			$	250.00
11/9/2006		38641	United States Trustee			$	1,500.00
11/9/2006		38642	United States Trustee			$	250.00
11/9/2006		38643	United States Trustee			$	250.00
11/9/2006		38644	United States Trustee			$	250.00
11/9/2006		38645	United States Trustee			$	250.00
11/9/2006		38646	United States Trustee			$	250.00
11/9/2006		38647	United States Trustee			$	250.00
11/9/2006		38648	United States Trustee			$	250.00
11/13/2006			Wire Transfer	$	70,000.00
11/13/2006		38650	Register of Copyrights			$	45.00
11/13/2006		38651	Recall			$	1,025.39
11/15/2006			Service Charge			$	107.77
11/17/2006			ADPFees			$	132.69
11/17/2006		38652	Blue Shield of California			$	373.00
11/17/2006		38653	Bonded Services, Inc			$	6,594.06
11/17/2006		38654	Eagle			$	205.13
11/17/2006		38655	Federal Express			$	40.33
11/17/2006		38656	Health Net			$	8,831.18
11/17/2006		38657	New Beginnings Enterprises			$	4,174.95
11/17/2006		38658	Stutman Treister & Glatt			$	19,540.45
11/17/2006		38659	Stutman Treister & Glatt			$	23,694.67
11/21/2006		8349	Payroll			$	1,319.75
11/21/2006		8350	Payroll			$	3,695.15
11/21/2006		8351	Payroll			$	7,532.30
11/21/2006		8352	Payroll			$	3,467.33
11/21/2006		8353	Payroll			$	1,544.02
11/21/2006		8354	Payroll			$	2,277.00
11/21/2006		8355	Payroll			$	2,747.02
11/21/2006		8356	Payroll			$	4,189.00
11/21/2006			AFPTaxes			$	10,631.52
11/24/2006			Wire Transfer	$	50,000.00
11/30/2006			Control Agreement Fee						$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	120,000.00	$	132,408.63		$	50.00		—
G. Ending Balance (E less F)				$	1,477,537.27	$	99,192.70		$	686,201.39	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 61 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	£	460,021.34	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	227,903.77	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,514.83
Denial Venture		1890-69-6501	$	162,166.82
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
		Report Number:	61	Page 1 of 2
Chapter 11		For the Period FROM:	11/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	11/30/2006
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)

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	28,156
Salaries and Wages — Other Employees	26,715
Total Salaries and Wages				54,872
Employee Benefits and Pensions				9,204
Employer Payroll Taxes/Fees	2,730
Other Taxes	(35	)
Total Taxes				2,695
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	73
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	84
Storage Expense	14,214
Supplies, Office Expenses, Photocopies, etc.	205
Bad Debts
Miscellaneous Operating Expenses	203
Total Operating Expenses				85,724
Net Gain/Loss from Business Operations						(85,724	)
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				43,235
Other Non-Operating Expenses (Board/Trustee fees)				3,500
Total Non-Operating Expenses						46,735
NET INCOME/(LOSS) FOR PERIOD					$	(132,459	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 61 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		—		1,253,512
TOTAL		—		1,253,512

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?
	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: $196,647.14
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 

EX-99.3

EXHIBIT 99.3

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:	62	Page 1 of 3
Chapter 11		For the Period FROM:	12/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	12/31/2006
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)

						City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Collateral Account		Concentration Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,709,218.90	$	8,214,281.69	$	707,241.91
B. Less: Total Disbursements per all Prior Statements		$	8,500,014.84	$	8,181,045.20	$	21,040.52
C. Beginning Balance		$	1,477,537.27	$	99,192.70	$	686,201.39
D. Receipts during Current Period
Description
12/1/2006	E! Entertainment	$	6,000.00
12/5/2006	High Fliers	$	181.26
12/6/2006	Wire Transfer			$	25,000.00
12/15/2006	Daro Films	$	19,467.33
12/20/2006	Wire Transfer			$	80,000.00
12/31/2006	Interest	$	6,238.75
TOTAL RECEIPTS THIS PERIOD		$	31,887.34	$	105,000.00	$	—		—
E. Balance Available (C plus D)		$	1,509,424.61	$	204,192.70	$	686,201.39	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 62 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
12/1/2006			ADP Fees			$	296.93
12/1/2006		38660	Arrowhead				43.43
12/1/2006		38661	AT&T				72.16
12/1/2006		38662	AT&T				304.53
12/5/2006			ADP Taxes			$	4097.47
12/5/2006		8357	Payroll			$	1319.76
12/5/2006		8358	Payroll				5432.02
12/5/2006		8359	Payroll				1544.03
12/5/2006		8360	Payroll				2771.79
12/6/2006			Wire Transfer	$	25,000.00
12/13/2006		38663	Accurate Express				20.70
12/13/2006		38664	Federal Express				45.74
12/13/2006		38665	KEVIN MARINO				90.33
12/13/2006		38666	New Wave Entertainment				100.00
12/13/2006		38667	Recall				1257.96
12/15/2006			ADP Fees				132.69
12/15/2006			Service Charge				100.22
12/19/2006			ADP TAXES				4285.97
12/19/2006		8361	Payroll				1319.74
12/19/2006		8362	Payroll				5719.13
12/19/2006		8363	Payroll				1544.01
12/19/2006		8364	Payroll				2771.77
12/20/2006			Wire Transfer	$	80,000.00
12/22/2006		38668	Accurate Express				11.50
12/22/2006		38669	KEREN AMINIA				1430.31
12/22/2006		38670	Blue Shield of California				387.00
12/22/2006		38671	ITE Solutions				460.00
12/22/2006		38672	New Beginnings Enterprises				4174.95
12/22/2006		38673	USI of Southern California				2637.00
12/22/2006		38674	Stutman Treister & Glatt				25211.12
12/22/2006		38675	Brandon & Morner-Ritt				14306.00
12/22/2006		38676	Arrowhead				26.21
12/22/2006		38677	Federal Express				36.80
12/28/2006			ADP Taxes			$	3,257.92
12/29/2006			ADP Fees			$	404.02
12/29/2006		8365	Payroll			$	1,319.76
12/29/2006		8366	Payroll			$	4,340.49
12/29/2006		8367	Payroll			$	1,544.03
12/29/2006		8368	Payroll			$	2,833.79
12/31/2006			Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	105,000.00	$	95,651.28	$	50.00		—
G. Ending Balance (E less F)				$	1,404,424.61	$	108,541.42	$	686,151.39	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 62 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	£	461,410.23	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	228,591.85	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,549.36
Denial Venture		1890-69-6501	$	162,543.76
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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-99.4

EXHIBIT 99.4

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
		Report Number:	62	Page 1 of 2
Chapter 11		For the Period FROM:	12/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	12/31/2006
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	20,906
Salaries and Wages — Other Employees	21,323
Total Salaries and Wages			42,229
Employee Benefits and Pensions			387
Employer Payroll Taxes/Fees	2,706
Other Taxes
Total Taxes			2,706
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	215
Interest Expense
Insurance	2,637
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	377
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,521
Storage Expense	1,258
Supplies, Office Expenses, Photocopies, etc.	70
Bad Debts
Miscellaneous Operating Expenses	610
Total Operating Expenses			56,184
Net Gain/Loss from Business Operations					(56,184	)
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			39,517
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					39,517
NET INCOME/(LOSS) FOR PERIOD				$	(95,701	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 62 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		—		1,349,643
TOTAL		—		1,349,643

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		1/14/2008		1/14/2008
	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?
	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: $182,154.86
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 

EX-99.5

EXHIBIT 99.5

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:	63	Page 1 of 3
Chapter 11		For the Period FROM:	1/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	1/31/2007
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		$	9,741,106.24	$	8,319,281.69	$	707,241.91
B. Less: Total Disbursements per all Prior Statements		$	8,605,014.84	$	8,276,696.48	$	21,090.52
C. Beginning Balance		$	1,404,424.61	$	108,541.42	$	686,151.39
D. Receipts during Current Period
Description
1/11/2007	Daro Films	$	36,123.93
1/18/2007	Wire Transfer			$	65,000.00
1/24/2007	Vision Films					$	86,641.12
1/31/2007	Force Ent.					$	7,980.00
1/31/2007	Wire Transfer			$	50,000.00
1/31/2007	interest	$	6,664.80
TOTAL RECEIPTS THIS PERIOD		$	42,788.73	$	115,000.00	$	94,621.12		—
E. Balance Available (C plus D)		$	1,447,213.34	$	223,541.42	$	780,772.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 63 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
1/5/2007		38678	AT&T			$	75.47
1/5/2007		38679	AT&T			$	324.95
1/5/2007		38680	Bonded Services, Inc			$	6,624.30
1/5/2007		38681	Health Net			$	4,645.40
1/5/2007		38682	Alice P. Neuhauser			$	585.32
1/18/2007			Wire Transfer	$	65,000.00
1/12/2007		38683	City Of Beverly Hills			$	452.48
1/12/2007		38684	Joe Nazarian			$	420.00
1/12/2007		38685	Kevin Marino			$	339.23
1/12/2007		38686	Recall			$	1,151.70
1/16/2007		8369	Payroll			$	1,393.65
1/16/2007		8370	Payroll			$	8,234.25
1/16/2007		8371	Payroll			$	1,628.87
1/16/2007		8372	Payroll			$	2,888.19
1/16/2007			ADP Taxes			$	9,907.15
1/17/2007			Service Charge			$	144.91
1/19/2007			ADP Fees			$	30.00
1/19/2007		38687	Arrowhead			$	26.21
1/19/2007		38688	Blue Shield of California			$	387.00
1/19/2007		38689	Brandon & Morner-Ritt			$	10,956.23
1/19/2007		38690	Federal Express			$	181.05
1/19/2007		38691	Kevin Marino			$	328.81
1/19/2007		38692	Stutman Treister & Glatt			$	22,255.25
1/26/2007		38693	Clumeck, Stem, Schenkelburg & Getzo			$	812.50
1/26/2007		38694	New Beginnings Enterprises			$	4,174.95
1/26/2007		38695	Kevin Marino			$	88.29
1/26/2007		38696	AT&T			$	78.61
1/26/2007		38697	AT&T			$	313.74
1/26/2007			ADP fees			$	291.33
1/30/2007			ADP Taxes			$	7,067.64
1/30/2007		8373	Payroll			$	1,393.64
1/30/2007		8374	Payroll			$	6,256.25
1/30/2007		8375	Payroll			$	1,628.86
1/30/2007		8376	Payroll			$	2,888.16
1/31/2007			Wire Transfer	$	50,000.00
1/31/2007			Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	115,000.00	$	97,974.41	$	50.00		—
G. Ending Balance (E less F)				$	1,332,213.34	$	125,567.01	$	780,722.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 63 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	£	461,410.23	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	228,591.85	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,583.19
Denial Venture		1890-69-6501	$	162,731.86
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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-99.6

EXHIBIT 99.6

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
		Report Number:	63	Page 1 of 2
Chapter 11		For the Period FROM:	1/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	1/31/2007
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	23,800
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			38,800
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	4,808
Other Taxes	452
Total Taxes			5,260
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	181
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	793
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,342
Storage Expense	7,776
Supplies, Office Expenses, Photocopies, etc.	446
Bad Debts
Miscellaneous Operating Expenses	195
Total Operating Expenses			64,000
Net Gain/Loss from Business Operations					(64,000	)
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			34,024
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					34,024
NET INCOME/(LOSS) FOR PERIOD				$	(98,024	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 63 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		—		1,341,643
TOTAL		—		1,341,643

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		1/14/2008		1/14/2008
	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?
	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: $176,978.27
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 

  EX-99.7 8 v31080exv99w7.htm EXHIBIT 99.7

EXHIBIT 99.7

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company
		Statement Number:	64	Page 1 of 3
Chapter 11		For the Period FROM:	2/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	2/28/2007
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		$	9,783,894.97	$	8,434,281.69	$	801,863.03
B. Less: Total Disbursements per all Prior Statements		$	8,720,014.84	$	8,374,670.89	$	21,140.52
C. Beginning Balance		$	1,332,213.34	$	125,567.01	$	780,722.51
D. Receipts during Current Period
Description
2/9/2007	Malvis					$	1,680.00
2/14/2007	Wire Transfer			$	45,000.00
2/14/2007	Daro Films	$	75,462.79
2/20/2007	Force Entertainment					$	7,980.00
2/20/2007	Compact Collections	$	16,666.80
2/28/2007	interest	$	5,465.87
TOTAL RECEIPTS THIS PERIOD		$	97,595.46	$	45,000.00	$	9,660.00		—
E. Balance Available (C plus D)		$	1,429,808.80	$	170,567.01	$	790,382.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 64 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
2/2/2007			ADP Fees			$	84.00
2/8/2007		38698	Accurate Express			$	23.00
2/8/2007		38699	Bonded Services, Inc			$	6,585.03
2/8/2007		38700	ITE Solutions			$	575.00
2/8/2007		38701	Register of Copyrights			$	145.00
2/8/2007		38702	Stutman Treister & Glatt			$	19,927.48
2/8/2007		38703	United States Trustee			$	250.00
2/8/2007		38704	United States Trustee			$	3,750.00
2/8/2007		38705	United States Trustee			$	$250.00
2/8/2007		38706	United States Trustee			$	250.00
2/8/2007		38707	United States Trustee			$	250.00
2/8/2007		38708	United States Trustee			$	250.00
2/8/2007		38709	United States Trustee			$	250.00
2/8/2007		38710	United States Trustee			$	250.00
2/8/2007		38711	United States Trustee			$	250.00
2/9/2007		38712	USI of Southern California			$	2,940.00
2/9/2007			ADP Fees			$	112.69
2/13/2007			ADP Taxes			$	8,462.98
2/13/2007		8377	Payroll			$	1,393.65
2/13/2007		8378	Payroll			$	7,640.85
2/13/2007		8379	Payroll			$	1,628.87
2/13/2007		8380	Payroll			$	2,888.19
2/14/2007			Wire Transfer	$	45,000.00
2/15/2007		38713	Blue Shield of California			$	387.00
2/15/2007		38714	ITE Solutions			$	365.00
2/15/2007		38715	Recall			$	1,053.28
2/15/2007			Service Charge			$	127.07
2/22/2007			ADP Fees			$	262.78
2/23/2007			ADP Fees			$	112.69
2/23/2007		38716	Arrowhead			$	26.21
2/23/2007		38717	Accurate Express			$	11.50
2/23/2007		38718	Bowne of Los Angeles, Inc			$	726.00
2/23/2007		38719	Health Net			$	4,644.70
2/23/2007		38720	Kevin Marino			$	320.58
2/23/2007		38721	Alice P.Neuhauser			$	438.61
2/23/2007		38722	New Beginnings Enterprises			$	4,174.95
2/23/2007		38723	New Wave Entertainment			$	23.60
2/27/2007			ADP Taxes			$	6,678.24
2/27/2007		8381	Payroll			$	1,393.65
2/27/2007		8382	Payroll			$	6,206.80
2/27/2007		8383	Payroll			$	1,628.87
2/27/2007		8384	Payroll			$	2,888.20
2/28/2007			Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	45,000.00	$	89,626.47	$	50.00		—
G. Ending Balance (E less F)				$	1,384,808.80	$	80,940.54	$	790,332.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 64 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	£	463,186.58	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	230,104.62	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,613.24
Denial Venture		1890-69-6501	$	162,899.14
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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-99.7

exv99w7

EX-99.8

EXHIBIT 99.8

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
		Report Number:	64	Page 1 of 2
Chapter 11		For the Period FROM:	2/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	2/28/2007
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	22,500
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			37,500
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	3,882
Other Taxes
Total Taxes			3,882
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	58
Interest Expense
Insurance	2,940
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	940
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	759
Storage Expense	7,638
Supplies, Office Expenses, Photocopies, etc.	26
Bad Debts
Miscellaneous Operating Expenses	1,048
Total Operating Expenses			63,999
Net Gain/Loss from Business Operations					(63,999	)
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			19,927
Other Non-Operating Expenses (Board/Trustee fees)			5,750
Total Non-Operating Expenses					25,677
NET INCOME/(LOSS) FOR PERIOD				$	(89,676	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 64 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		(813	)		1,341,643
TOTAL		(813	)		1,341,643

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		1/14/2008		1/14/2008
	Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2008		2/14/2008
	Errors & Omissions - Library (RENEWED)	St. Paul		3,000,000		3/3/2008		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?
	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: $185,006.35
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 

EX-99.9

EXHIBIT 99.9

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company				Page 1 of 3
		Statement Number:	65
Chapter 11		For the Period FROM:	3/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	3/31/2007
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		$	9,881,490.43	$	8,479,281.69	$	811,523.03
B. Less: Total Disbursements per all Prior Statements		$	8,765,014.84	$	8,464,297.36	$	21,190.52
C. Beginning Balance		$	1,384,808.80	$	80,940.54	$	790,332.51
D. Receipts during Current Period
Description
3/7/2007	Wire Transfer			$	40,000.00
3/12/2007	Lifetime	$	38,333.33
3/16/2007	Wire Transfer			$	75,000.00
3/28/2007	Wire Transfer			$	40,000.00
3/29/2007	Starz	$	27.13
3/31/2007	interest	$	5,789.64
TOTAL RECEIPTS THIS PERIOD		$	44,150.10	$	155,000.00		—		—
E. Balance Available (C plus D)		$	1,428,958.90	$	235,940.54	$	790,332.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 65 Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
3/2/2007		38724	AT&T				78.60
3/2/2007		38725	AT&T				301.88
3/2/2007			ADP Fees				198.64
3/2/2007		38726	Bonded Services, Inc				6588.60
3/2/2007		38727	USI of Southern California				5000.00
3/6/2007		38728	Global Media Television				16000.00
3/7/2007			Wire Transfer	$	40,000.00
3/9/2007			ADP Fees				112.69
3/9/2007		38729	Accurate Express				54.74
3/9/2007		38730	Filmpool				900.00
3/9/2007		38731	USI of Southern California				207.00
3/9/2007		38732	KEREN AMINIA				500.00
3/13/2007		8385	Payroll				1357.46
3/13/2007		8386	Payroll				9480.24
3/13/2007		8387	Payroll				1628.87
3/13/2007		8388	Payroll				2888.18
3/13/2007			ADP Taxes				10481.26
3/15/2007			Service Charge				109.30
3/16/2007			ADP Fees				20.00
3/16/2007			Wire Transfer	$	75,000.00
3/16/2007		38733	Analog Voodoo				1980.00
3/16/2007		38734	Arrowhead				50.42
3/16/2007		38735	Department Of Consumer Affairs				200.00
3/16/2007		38736	Federal Express				130.12
3/16/2007		38736	Federal Express				13.76
3/16/2007		38737	KEVIN MARINO				101.24
3/16/2007		38738	Recall				950.48
3/23/2007			ADP Fees				112.69
3/23/2007		38739	Accurate Express				36.23
3/23/2007		38740	Blue Shield of California				387.00
3/23/2007		38742	Federal Express				70.06
3/23/2007		38743	Health Net				4644.70
3/23/2007		38744	Stutman Treister & Glatt				20893.40
3/23/2007		38745	Brandon & Morner-Ritt				12238.85
3/27/2007		8389	Payroll				1357.44
3/27/2007		8390	Payroll				9100.64
3/27/2007		8391	Payroll				1628.85
3/27/2007		8392	Payroll				2888.19
3/27/2007			ADP Taxes				9999.69
3/28/2007			Wire Transfer	$	40,000.00
3/30/2007		38746	AT&T				78.60
3/30/2007		38747	AT&T				326.08
3/30/2007			ADP Fees				178.64
3/30/2007		38748	Clumeck, Stern, Schenkelburg& Getzo				1658.00
3/30/2007		38749	New Beginnings Enterprises				4174.95
3/30/2007		38750	FilmPool				2220.00
3/30/2007			Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	155,000.00	$	131,327.49	$	50.00		—
G. Ending Balance (E less F)				$	1,273,958.90	$	104,613.05	$	790,282.51	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 65 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	£	464,709.39	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	230,861.13	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,646.53
Denial Venture		1890-69-6501	$	163,084.53
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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-99.10

EXHIBIT 99.10

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
		Report Number:	65	Page 1 of 2
Chapter 11		For the Period FROM:	3/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:	3/31/2007
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	32,200
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			47,200
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	4,233
Other Taxes
Total Taxes			4,233
Rent and Lease Expense (including parking)	4,175
Distribution/Delivery Expenses	21,405
Interest Expense
Insurance	5,207
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	785
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	601
Storage Expense	7,539
Supplies, Office Expenses, Photocopies, etc.	50
Bad Debts
Miscellaneous Operating Expenses	359
Total Operating Expenses			96,587
Net Gain/Loss from Business Operations					(96,587	)
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			34,790
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					34,790
NET INCOME/(LOSS) FOR PERIOD				$	(131,378	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 65 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		—		1,291,366
TOTAL		—		1,291,366

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		1/14/2008		1/14/2008
	Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2008		2/14/2008
	Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2008		3/3/2008

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: $162,387.39
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 

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