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