exv99w1

CHAPTER 11 (BUSINESS)

The Kushner-Locke Company

Case Number:

Case No. LA 01-44828-SB

Operating Report Number:

Debtor(s).

For the Month Ending:

Exhibit 99.1

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA


In Re:	CHAPTER 11 (BUSINESS)
The Kushner-Locke Company
	Case Number:	Case No. LA 01-44828-SB
	Operating Report Number:	93
Debtor(s).	For the Month Ending:	7/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)


1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,123,438.72


2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,829,290.78


3.	BEGINNING BALANCE:				294,147.94


4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing

	Accounts Receivable — Pre-filing

	General Sales

	Other (Specify)	Internal Transfers		75,000.00

	**Other (Specify)


	TOTAL RECEIPTS THIS PERIOD:				75,000.00


5.	BALANCE:				369,147.94


6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)			0.00

	Disbursements (from page 2)			55,980.62


	TOTAL DISBURSEMENTS THIS PERIOD:***				55,980.62


7.	ENDING BALANCE:				313,167.32


8.	General Account Number(s):		1891935460

			Comerica Bank

	Depository Name & Location:		Los Angeles, CA


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD


Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
07/10/2009	Wire	ADP	Payroll Fees			$	86.30	$	86.30
07/10/2009	1471	Bonded Services	Storage			$	4,000.00	$	4,000.00
07/10/2009	1472	Brandon & Morner-Ritt	Legal Fees			$	1,288.60	$	1,288.60
07/10/2009	1473	Xerox	Office Supplies			$	22.49	$	22.49
07/13/2009	Wire	Comerica Bank	Bank Fees			$	215.30	$	215.30
07/14/2009	Wire	Payroll Tax	Payroll			$	5,595.29	$	5,595.29
07/14/2009	8601	Payroll	Payroll			$	1,379.03	$	1,379.03
07/14/2009	8602	Payroll	Payroll			$	7,882.51	$	7,882.51
07/14/2009	8603	Payroll	Payroll			$	2,788.12	$	2,788.12
07/17/2009	1475	Arrowhead	Office Supplies			$	15.98	$	15.98
07/17/2009	1476	Federal Express	Shipping			$	25.91	$	25.91
07/17/2009	1477	Recall	Storage			$	918.84	$	918.84
07/24/2009	Wire	ADP	Payroll Fees			$	283.25	$	283.25
07/28/2009	8604	Payroll	Payroll			$	1,379.03	$	1,379.03
07/28/2009	8605	Payroll	Payroll			$	8,134.52	$	8,134.52
07/28/2009	8606	Payroll	Payroll			$	2,788.11	$	2,788.11
07/29/2009	Wire	Payroll Tax	Payroll			$	5,799.82	$	5,799.82
07/30/2009	1478	AT & T	Internet			$	86.19	$	86.19
07/30/2009	1479	Global Media Television	Agent Fees			$	11,750.00	$	11,750.00
07/30/2009	1480	ITE Solutions	Computer / IT			$	690.00	$	690.00
07/30/2009	1481	Keren Aminia Expenses	Office Supplies			$	387.80	$	387.80
07/30/2009	1482	Kevin Marino Expenses	Phone / Internet			$	119.44	$	119.44
07/30/2009	1483	AT & T	Phone			$	306.82	$	306.82
07/31/2009	Wire	ADP	Payroll Fees			$	37.27	$	37.27


		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		55,980.62	$	55,980.62


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION


Bank statement Date:	7/31/2009	Balance on Statement:	$	334,522.65

Plus deposits in transit (a):

Deposit Date

Deposit Amount

TOTAL DEPOSITS IN TRANSIT

0.00

Less Outstanding Checks (a):


	Check Number		Check Date		Check Amount
		1478		7/30/2009	$	86.19

		1479		7/30/2009	$	11,750.00

		1480		7/30/2009	$	690.00

		1481		7/30/2009	$	387.80

		1483		7/30/2009	$	306.82

		8605		7/28/2009	$	8,134.52









































TOTAL OUTSTANDING CHECKS:								21,355.33


Bank statement Adjustments:

Explanation of Adjustments-






ADJUSTED BANK BALANCE:							$	313,167.32


*	It is acceptable to replace this form with a similar form

**	Please attach a detailed explanation of any bank statement adjustment	- ck

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA


In Re:			CHAPTER 11 (BUSINESS)
	The Kushner-Locke Company
			Case Number:	Case No. LA 01-44828-SB

			Operating Report Number:	93

		Debtor(s).	For the Month Ending:	7/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)


1.	TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,984,253.77


2.	LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,321,377.86



3.	BEGINNING BALANCE:				662,875.91


4.	RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable — Post-filing			58,750.00

	Accounts Receivable — Pre-filing

	General Sales

	Other (Specify)	Interest		46.47

	**Other (Specify)



	TOTAL RECEIPTS THIS PERIOD:				58,796.47



5.	BALANCE:				721,672.38


6.	LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

	Transfers to Other DIP Accounts (from page 2)			75,000.00

	Disbursements (from page 2)			4,216.76



	TOTAL DISBURSEMENTS THIS PERIOD:***				79,216.76



7.	ENDING BALANCE:				642,455.62


8.	General Account Number(s):		323-221-556

			JP Morgan Chase

	Depository Name & Location:		New York, NY


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.

Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD


Date	Check	Payee or DIP		*Amount		**Amount
mm/dd/yyyy	Number	account	Purpose	Transfered		Disbursed		Amount
7/2/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
7/13/2009	Wire	Morgan Lewis	Legal Fees		4,216.76				4,216.76
7/16/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
07/31/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00

		TOTAL DISBURSEMENTS THIS PERIOD:			79,216.76		0.00	$	79,216.76


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION


Bank statement Date:	7/31/2009	Balance on Statement:	$	642,455.62

Plus deposits in transit (a):

Deposit Date

Deposit Amount

TOTAL DEPOSITS IN TRANSIT

0.00

Less Outstanding Checks (a):

Check Number

Check Date

Check Amount

TOTAL OUTSTANDING CHECKS:

0.00

Bank statement Adjustments:

Explanation of Adjustments-

ADJUSTED BANK BALANCE:

642,455.62


*		It is acceptable to replace this form with a similar form

**		Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			1,302,570.28


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			51,437.80


3. BEGINNING BALANCE:			1,251,132.48


4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing		0.00

Accounts Receivable — Pre-filing

General Sales

Other (Specify)		0.00

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:			0.00


5. BALANCE:			1,251,132.48


6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		0.00

Disbursements (from page 2)		50.00


TOTAL DISBURSEMENTS THIS PERIOD:***			50.00


7. ENDING BALANCE:			1,251,082.48


8. General Account Number(s):	112391673

	City National Bank

Depository Name & Location:	Beverly Hills, CA


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD


Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
07/31/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00

		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		50.00	$	50.00


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION


Bank statement Date:	7/31/2009	Balance on Statement:	$	1,251,082.48

Plus deposits in transit (a):

Deposit Date

Deposit Amount

TOTAL DEPOSITS IN TRANSIT

0.00

Less Outstanding Checks (a):

Check Number

Check Date

Check Amount

TOTAL OUTSTANDING CHECKS:

0.00

Bank statement Adjustments:

Explanation of Adjustments-



ADJUSTED BANK BALANCE:	$	1,251,082.48


*		It is acceptable to replace this form with a similar form

**		Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD: 07/01/09-07/31/09

(Provide a copy of monthly account statements for each of the below)

General Account:

313,167.32

Collateral Account:

642,455.62

Collection Account:

1,251,082.48

*Other Accounts:

Bank of Scotland - Pinocchio

Time Deposit

219,088.59

Currency: GBP

Bank of Scotland - Basil

Time Deposit

247,294.30

Currency: GBP

Edge Entertainment

172.89

KL- PWI account

731.10

BLT Venture

JV Account

71,485.48

BLT Venture

JV Account

330.45

KL\7 Venture

JV Account

39,992.84

Denial Venture

JV Account

244,864.53

Cracker LLC

JV Account

15,569.01

Swing

JV Account

13,031.13

*Other Monies:

**Petty Cash (from below):

0.00

TOTAL CASH AVAILABLE:

3,059,265.74

Petty Cash Transactions:

Date

Purpose

Amount

TOTAL PETTY CASH TRANSACTIONS:

0.00


*		Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#

**		Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

Post-Petition

Frequency of Payments

payments not made

Creditor, Lessor, Etc.

(Mo/Qtr)

Amount of Payment

(Number)

Total Due

TOTAL DUE:

0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:


		Gross Sales Subject to Sales Tax:

		Total Wages Paid:

Total Post-Petition

Date Delinquent

Amounts Owing

Amount Delinquent

Amount Due

Federal Withholding

State Withholding

FICA - Employer’s Share

FICA - Employee’s Share

Federal Unemployment

Sales and Use

Real Property

Other:

TOTAL:

0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

*Accounts Payable

Accounts Receivable

Post-Petition

Pre-Petition

Post-Petition

30 days or less

29,350.33

583,661.12

31 - 60 days

61 - 90 days

91 - 120 days

Over 120 days

TOTAL:

29,350.33

0.00

583,661.12

V. INSURANCE COVERAGE

Policy Expiration

Premium Paid

Name of Carrier

Amount of Coverage

Date

Through (Date)

Commercial Package

St. Paul Travelers

2,000,000.00

2/14/2010

Worker’s Compensation

St. Paul Travelers

1,000,000.00

1/14/2010

E & O

St. Paul Travelers

3,000,000.00

3/3/2010

Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)


Quarterly Period	Total							Quarterly Fees
Ending (Date)	Disbursements		Quarterly Fees		Date Paid	Amount Paid		Still Owing
11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009		295,493.00		1,950.00	apply credit				1,950.00
30-Jun-2009		215,093.50		1,625.00	apply credit				1,625.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00

				82,225.00			83,975.00		(1,750.00	)


*		Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS


	Date of Order		Gross Compensation
	Authorizing		Paid During the
Name of Insider	Compensation	*Authorized Gross Compensation	Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS


	Date of Order
	Authorizing		Amount Paid During
Name of Insider	Compensation	Description	the Month


*		Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)


	Jul 09
Ordinary Income/Expense
Income
KL International Sales		4,500.00

Total Income		4,500.00
Cost of Goods Sold
Global Media Sales Fee		11,750.00

Total COGS		11,750.00

Gross Profit		-7,250.00
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Service Charge		215.30

Total Bank Service Charges		265.30
Copy Machine		22.49
Delivery & Distribution Expense
Shipping		25.91

Total Delivery & Distribution Expense		25.91
Insurance
Dental		319.00
Health		2,484.00

Total Insurance		2,803.00
Internet		86.19
IT / Computers		690.00
Office Supplies		187.69
Parking		330.00
Payroll
Payroll cost — Employees		12,007.13
Payroll Fee		406.82
Responsible Officer		23,739.30

Total Payroll		36,153.25
Professional Fees
Legal Fees		3,233.40

Total Professional Fees		3,233.40
Rent		4,566.51
Storage		5,837.68
Telephone		306.82
Telephone / E-mail Expenses		119.44
Travel & Ent
Meals		216.09

Total Travel & Ent		216.09

Total Expense		54,843.77

Net Ordinary Income		-62,093.77
Other Income/Expense
Other Income
Interest Income		46.47

Total Other Income		46.47

Net Other Income		46.47

Net Income		-62,047.30

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)


	Jul 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,251,082.48
Comerica — DIP		313,167.32
Due from Vision/to Vision		9,209.62
KL Cash Collateral — JP Morgan		642,455.62

Total Checking/Savings		2,215,915.04
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		262,500.00
AR — KL		258,333.35
AR — Vision		47,827.77

Total Accounts Receivable		583,661.12

Total Current Assets		2,799,576.16

TOTAL ASSETS		2,799,576.16

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		29,350.33

Total Accounts Payable		29,350.33

Total Current Liabilities		29,350.33

Total Liabilities		29,350.33
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43

Page 15 of 16

XI. QUESTIONNAIRE


		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	Ö


		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	Ö


3.	State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.

4.	Describe potential future developments which may have a significant impact on the case:

5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.

		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	Ö


I,	Alice P. Neuhauser, Responsible Officer declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.




Date		Principal for debtor-in-possession

Page 16 of 16