Exhibit 99.2

Office of the United States Trustee

In re:
     The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Substantively Consolidated with
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)

DEBTOR IN POSSESSION OPERATING REPORT
Report Number:	87	Page 1 of 2
For the Period FROM:	1/1/2009
TO:	1/31/2009

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	20,588
Salaries and Wages — Other Employees	11,154
Total Salaries and Wages			31,741
Employee Benefits and Pensions			319
Employer Payroll Taxes/Fees	4,034
Other Taxes	416
Total Taxes			4,450
Rent and Lease Expense (including parking)	4,720
Distribution/Delivery Expenses	3,856
Interest Expense
Insurance	1,827
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	1,084
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,367
Storage Expense	4,919
Supplies, Office Expenses, Photocopies, etc.
Bad Debts
Miscellaneous Operating Expenses	919
Total Operating Expenses			55,202
Net Gain/Loss from Business Operations					(55,202	)
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			61,965
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					61,965
NET INCOME/(LOSS) FOR PERIOD				$	(117,167	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 87 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		975		775,424
TOTAL		975		775,424

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		1/14/2010		1/14/2010
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2009		2/14/2009
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2009		3/3/2009

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:                    $28,040.51

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.

Debtor in Possession