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