Exhibit 99.2

Office of the United States Trustee

Page 1 of 2

DEBTOR IN POSSESSION INTERIM STATEMENT

Statement Number:	5
For the Period FROM:	03/01/2002
TO:	03/31/2002

In re:

     The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively 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)

CASH ACTIVITY ANALYSIS (Cash Basis Only)

				Collateral		Concentration
				Account		Account
Balance before Statement #1				$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements					1,597,997.17		1,255,204.22
B. Less: Total Disbursements per all Prior Statements					1,362,912.51		1,276,554.62
C. Beginning Balance				$	503,417.87	$	44,605.81
D. Receipts during Current Period
Description
03/08/2002			Lion’s Gate Settlement		24,550.00
03/08/2002			Lion’s Gate Settlement		53,450.00
03/08/2002			Lion’s Gate Settlement		80,000.00
03/29/2002			Interest		546.48
03/25/2002			Transfer from Chase		40,000.00
	TOTAL RECEIPTS THIS PERIOD				158,546.48		40,000.00	—	—
E. Balance Available (C plud D)				$	661,964.35	$	84,605.81	$     —	$     —
F. Less: Disbursements during Current Period:
Date		Check No.	Payee/Purpose
03/01/2002		37184	Ayelet Agmon				834.74
03/01/2002		37185	Ampco Parking				1,996.08
03/01/2002		37186	Anthony Fuscillo/mileage				135.79
03/20/2002		37188	Ayelet Agmon				337.50
03/20/2002		37189	AT&T				4,524.74
03/20/2002		37190	AT&T				347.76
03/20/2002		37191	Bonded Services				6,212.10
03/20/2002		37192	Bowne				441.00
03/20/2002		37194	Federal Express				44.63
03/20/2002		37198	John Lannan				1,250.00
03/20/2002		37199	Alice Neuhauser — Parking				131.80
03/20/2002		37200	Pacific Bell				426.30
03/20/2002		37201	Brett Robinson				1,400.00
03/20/2002		37202	Matt Schuller				920.00
03/20/2002		37203	Sprint				1,622.96
03/20/2002		37204	Financial Decisions				35.00
03/20/2002		37205	Sequoia Messenger				44.97
03/20/2002		37206	Brett Robinson				1,600.00
03/20/2002		37207	Matt Schuller				360.00
03/20/2002		37211	Adelphia				39.41
03/20/2002		37213	Pacific Bell				926.15
03/20/2002		37215	Imperial Idaho Investments — rent				2,000.00
03/20/2002		37216	Imperial Idaho Investments — rent				5,000.00
03/22/2002		37217	Keren Aminia				2,374.93
03/22/2002		37218	Kevin Marino				730.75
03/22/2002		37219	Tanya Miller				1,249.87
03/22/2002		37220	Neri Adam				532.50
03/26/2002		wire	Irwin Friedman				2,084.00
03/26/2002 03/25/2002		wire	Stuart Hersch transfer		40,000.00		2,084.00
	TOTAL DISBURSEMENTS THIS PERIOD:				40,000.00		39,686.98	—	—
G. Ending Balance (E less F)				$	621,964.35	$	44,918.83	$     —	$     —

Page 2 of 2

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 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	1891215236	$	1,000.00
Bank of Scotland — Pinocchio	3549485	1,245,315.38 Pounds Sterling		Time Deposit (KL' s interest is 70%)
Bank of Scotland — Basil	3626816	193,650.39 Pounds Sterling		Time Deposit (KL' s interest is 80%)
Allied Pinocchio	10747301	4,423.11 Pounds Sterling
KLI-UK	10008956	2,446.06 Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95

I: Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:

KL MDP Sensation	60-066-930	$	17,572.30
KL\7 Venture	1890-69-6360		9,236.89
Denial Venture	1890-69-6501		41,631.14
Cracker LLC	1891-04-1665		1,000.00
Swing	323-518095		6,957.50

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.

Debtor in Possession