Exhibit 99.2

Office of the United States Trustee

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)

DEBTOR IN POSSESSION INTERIM STATEMENT

Page 1 of 3

Statement Number:
For the Period FROM:
TO: 21
7/1/2003
7/31/2003

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				3,942,858.90		3,216,466.40
B.	Less: Total Disbursements per all Prior Statements				3,228,912.51		3,247,759.06
C.	Beginning Balance			$	982,279.60		34,663.55
D.	Receipts during Current Period
	Description
		7/1/2003	BL Distribution Corp		6,835.33
		7/9/2003	Wire Transfer				29,000.00
		7/10/2003	High Fliers		622.68
		7/11/2003	Bank Of Scotland		264,442.19
		7/22/2003	Wire Transfer				27,000.00
		7/31/2003	interest		671.98
	TOTAL RECEIPTS THIS PERIOD				272,572.18		56,000.00		—		—
E.	Balance Available (C plus D)			$	1,254,851.78		90,663.55	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 21 Page 2 of 3

F. Less: Disbursements during Current Period:

Date	Check No.		Payee/Purpose
7/1/2003		37719	Bowne of Los Angeles, Inc			542.00
7/1/2003		37720	Cash			300.00
7/1/2003		37721	Qwest Communications			38.77
7/1/2003		37722	Steven Rosen			1500.00
7/1/2003		37723	SBC			42.40
7/7/2003			ADP Fees			261.86
7/9/2003			ADP Taxes			5532.24
7/9/2003			Wire Transfer	$	29,000.00
7/9/2003		37724	Bonded Services, Inc			6301.55
7/9/2003		37725	Doniger & Fetter			299.49
7/9/2003		37726	William Liebell			1287.50
7/9/2003		37727	Marathon Services, Inc			259.80
7/9/2003		37728	Zerolag Communications, Inc			200.00
7/9/2003		37698	Zerolag (Check Voided)			-100.00
7/10/2003		7994	Payroll			980.59
7/10/2003		7995	Payroll			7817.30
7/10/2003		7996	Payroll			1332.84
7/10/2003		7997	Payroll			2293.04
7/18/2003			ADP Fees			146.09
7/22/2003			Wire Transfer	$	27,000.00
7/23/2003			ADP Taxes			5566.18
7/23/2003		37729	Bowne of Los Angeles, Inc			468.00
7/23/2003		37730	Cash			350.00
7/23/2003		37731	Hodes Parking			360.00
7/23/2003		37732	William Liebell			1175.00
7/23/2003		37733	Property Management Associates, I			2000.00
7/23/2003		37734	Recall			617.60
7/23/2003		37735	Daily Variety			279.00
7/23/2003		37736	SBC			575.42
7/23/2003		37717	SBC (Check Voided/ lost in mail)			-292.47
7/24/2003		7998	Payroll			980.57
7/24/2003		7999	Payroll			7859.48
7/24/2003		8000	Payroll			1332.84
7/24/2003		8001	Payroll			2293.03
7/25/2003			ADP Fees			10.00
7/25/2003		37737	Blue Shield of California			316.00
7/25/2003		37738	Health Net			2187.92
7/30/2003		37739	William Liebell			1062.50
TOTAL DISBURSEMENTS THIS PERIOD:					56,000.00	56,176.54		—		—
G. Ending Balance (E less F)				$	1,198,851.78	34,487.01	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 21 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	1891215236	$	1,000.00
Bank of Scotland — Pinocchio	3506258	$	1,011,608.38	Pound Sterling Time Deposit
Bank of Scotland — Basil	3506581	$	197,624.50	Pound Sterling Time Deposit (KL’s interest is 50%)
Allied Pinocchio	10747301		920.11	Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95
Edge Entertainment	1891152710	$	444.92
European Films LTD	1890563818	$	7,051.58
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	$	17,724.61
	KL\7 Venture	1890-69-6360	$	9,334.62
	Denial Venture	1890-69-6501	$	42,179.28
	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.

/s/ Alice Neuhauser

Debtor in Possession