8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report: October 20, 2003

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	95-4079057
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)
8671 Wilshire Blvd., Suite 714
Beverly Hills, California		90211
(Address of Principal Executive Offices)		(Zip Code)

(310) 358-5508
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS

	Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
SIGNATURE
EXHIBIT 99.1
EXHIBIT 99.2

Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.

(a)	Financial Statements of Business Acquired.
	Not Applicable.
(b)	Pro Forma Financial Information.
	Not Applicable.
(c)	Exhibits.

Exhibit 99.1. Monthly Operating Report of The Kushner-Locke Company (the “Registrant”) for the calendar month from August 1, 2003 to August 31, 2003.

Exhibit 99.2. Monthly Interim Statement of the Registrant for the calendar month from August 1, 2003 to August 31, 2003.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 20, 2003	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1 3 v93749exv99w1.htm EXHIBIT 99.1

Office of the United States Trustee

DEBTOR IN POSSESSION OPERATING REPORT

In re:
The Kushner-Locke Company	Page 1 of 2

	Report Number:	22
Chapter 11	For the Period FROM:	8/1/2003
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	8/31/2003
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)

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			24,075
	Salaries and Wages — Other Employees			11,308
		Total Salaries and Wages				35,383
		Employee Benefits and Pensions				2,504
	Employer Payroll Taxes/Fees			1,672
	Other Taxes
		Total Taxes				1,672
	Rent and Lease Expense (including parking)			2,360
	Distribution/Delivery Expenses
	Interest Expense
	Insurance
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)			505
	Depreciation and Amortization
	Business Equipment Leases			260
	Business Expense reimbursement
	Storage Expense			6,857
	Supplies, Office Expenses, Photocopies, etc.
	Bad Debts
	Miscellaneous Operating Expenses			976
		Total Operating Expenses				50,516
			Net Gain/Loss from Business Operations					(50,516	)
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				8,959
		Other Non-Operating Expenses (Board/Trustee fees)				5,750
		Total Non-Operating Expenses						14,709
NET INCOME/(LOSS) FOR PERIOD							$	(65,225	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 22 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			11,052		2,256,503
	TOTAL		11,052		2,256,503

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	1/14/2004	1/14/2004
Commercial Property (RENEWED)	St. Paul		2,000,000	2/14/2004	2/14/2004
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000	3/3/2004	3/3/2004
Employment Practices Liability (RENEWED-run off)	Nat’l Union		5,000,000	10/30/2003	10/30/2003

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?
	[ ] Yes          Explain:
	[x] 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?
	[ ] Yes          Explain:
	[x] No

7.	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:          $390,459.62
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.

/s/ Alice Neuhauser
Debtor in Possession

EX-99.2 4 v93749exv99w2.htm EXHIBIT 99.2

Office of the United States Trustee

DEBTOR IN POSSESSION INTERIM STATEMENT

In re:
The Kushner-Locke Company	Page 1 of 3

	Statement Number:	22
Chapter 11	For the Period FROM:	8/1/2003
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	8/31/2003
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					4,215,431.08		3,272,466.40
B. Less: Total Disbursements per all Prior Statements					3,284,912.51		3,303,935.60
C. Beginning Balance				$	1,198,851.78		34,487.01
D. Receipts during Current Period
		Description
	8/6/2003		Wire Transfer			$	26,000.00
	8/15/2003		Lion's Gate	$	13,043.08
	8/15/2003		Lion's Gate	$	46,990.24
	8/15/2003		Lion's Gate	$	2.04
	8/18/2003		AB Filmindustri	$	30.95
	8/19/2003		Wire Transfer			$	45,000.00
	8/28/2003		Berkowitz & Black	$	155,000.00
	8/28/2003		Franchise Pictures	$	1,816.00
	8/28/2003		Dalaklis-McKeown Ent	$	750.00
	8/30/2003		interest	$	458.23
		TOTAL RECEIPTS THIS PERIOD			218,090.54		71,000.00		—		—
E. Balance Available (C plus D)				$	1,416,942.32		105,487.01	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 22 Page 2 of 3

F. Less: Disbursements during Current Period:
Date		Check No.		Payee/Purpose
	8/1/2003				ADP Fees			$	239.05
	8/6/2003				ADP Taxes			$	5,633.95
	8/6/2003				Wire Transfer	$	26,000.00
	8/7/2003		8002		Payroll			$	980.58
	8/7/2003		8003		Payroll			$	7,943.86
	8/7/2003		8004		Payroll			$	1,332.85
	8/7/2003		8005		Payroll			$	2,293.03
	8/8/2003		37740		Bonded Services, Inc			$	6,296.05
	8/8/2003		37741		Doniger & Fetter			$	916.29
	8/8/2003		37742		Marathon Services, Inc			$	259.80
	8/8/2003		37743		Personnel Concepts Limited			$	49.69
	8/8/2003		37744		Qwest Communications			$	39.28
	8/8/2003		37745		SBC			$	43.20
	8/8/2003		37746		Zerolag Communications, Inc			$	100.00
	8/8/2003		37747		KEREN AMINIA			$	281.90
	8/15/2003				ADP Fees			$	110.49
	8/19/2003				Wire Transfer	$	45,000.00
	8/20/2003				ADP Taxes			$	5,735.66
	8/21/2003		8006		Payroll			$	980.58
	8/21/2003		8007		Payroll			$	8,070.42
	8/21/2003		8008		Payroll			$	1,332.84
	8/21/2003		8009		Payroll			$	2,293.04
	8/26/2003		37748		Blue Shield of California			$	316.00
	8/26/2003		37749		Bowne of Los Angeles, Inc			$	580.00
	8/26/2003		37750		Clumeck,Stern,Phillips&Schenkelbu			$	8,042.50
	8/26/2003		37751		Health Net			$	2,187.92
	8/26/2003		37752		Hodes Parking			$	360.00
	8/26/2003		37753		Property Management Associates, I			$	2,000.00
	8/26/2003		37754		Recall			$	561.30
	8/26/2003		37755		SBC			$	322.16
	8/27/2003		37756		United States Trustee			$	250.00
	8/27/2003		37757		United States Trustee			$	3,750.00
	8/27/2003		37758		United States Trustee			$	250.00
	8/27/2003		37759		United States Trustee			$	250.00
	8/27/2003		37760		United States Trustee			$	250.00
	8/27/2003		37761		United States Trustee			$	250.00
	8/27/2003		37762		United States Trustee			$	250.00
	8/27/2003		37763		United States Trustee			$	250.00
	8/27/2003		37764		United States Trustee			$	250.00
	8/27/2003		37765		Alice P.Neuhauser			$	64.12
	8/29/2003				ADP Fees			$	107.98
TOTAL DISBURSEMENTS THIS PERIOD:							71,000.00		65,224.54		—		—
G. Ending Balance (E less F)						$	1,345,942.32		40,262.47	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 22 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	$	1,014,490.77	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3506581	$	199,187.59	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	$	9,337.39
	Denial Venture	1890-69-6501	$	42,197.19
	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 P. Neuhauser

Debtor in Possession

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EX-99.1

The Kushner-Locke Company Exhibit to Form 8-K

EX-99.2

The Kushner-Locke Company Exhibit to Form 8-K