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: December 17, 2009

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California
(State or other jurisdiction
of incorporation) 001-10661
(Commission File Number) 95-4079057
(IRS Employer
Identification No.)

280 South Beverly Drive, Suite 205, Beverly Hills, California
(Address of principal executive offices) 90212
(Zip Code)

Registrant’s telephone number, including area code: (310) 275-7505

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

     As previously disclosed in its Current Report on Form 8-K filed on November 21, 2001, and the Registrant’s Form 12b-25 filed on January 2, 2002, The Kushner-Locke Company, a California corporation (the “Registrant”), and certain of its wholly-owned subsidiaries (collectively, the “Debtors”), filed on November 21, 2001, voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. The Debtors’ Chapter 11 cases are currently pending before the United States Bankruptcy Court for the Central District of California, Los Angeles Division (the “Bankruptcy Court”) and are being jointly administered under Case No. LA-01-44828-SB.

     The Registrant’s unaudited monthly operating reports required by the Bankruptcy Court for August - October 2009 are provided in this Current Report on Form 8-K. The operating reports have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS CONTAIN FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT HAVE NOT BEEN AUDITED OR REVIEWED BY INDEPENDENT ACCOUNTANTS, ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND MAY BE SUBJECT TO FUTURE RECONCILIATION OR ADJUSTMENTS. THE OPERATING REPORTS MAY ALSO CONTAIN INFORMATION FOR PERIODS THAT ARE SHORTER OR OTHERWISE DIFFERENT FROM THOSE CONTAINED IN THE REGISTRANT’S REPORTS REQUIRED TO BE MADE PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

     THE REGISTRANT MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER AS TO ANY OF THE INFORMATION CONTAINED IN THE OPERATING REPORTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS. THE OPERATING REPORTS ARE BEING PROVIDED SOLELY FOR INFORMATION PURPOSES; THEY WERE NOT PREPARED FOR THE PURPOSE OF PROVIDING THE BASIS FOR AN INVESTMENT DECISION RELATING TO THE SECURITIES OF THE REGISTRANT.

Item 9.01. 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, 2009 to August 31, 2009.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from September 1, 2009 to September 30, 2009.
	Exhibit 99.3. Monthly Operating Report of the Registrant for the calendar month from October 1, 2009 to October 31, 2009.

SIGNATURES

     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: December 17, 2009	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

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:	94
	Debtor(s).	For the Month Ending:	8/31/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,198,438.72
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			10,885,271.40
3. BEGINNING BALANCE:			313,167.32
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing
Accounts Receivable — Pre-filing
General Sales
Other (Specify)          Internal Transfers		85,000.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:			85,000.00
5. BALANCE:			398,167.32
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		0.00
Disbursements (from page 2)		82,142.02
TOTAL DISBURSEMENTS THIS PERIOD:***			82,142.02
7. ENDING BALANCE:			316,025.30
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
08/07/2009	Wire		ADP	Payroll Fees				86.30		86.30
08/11/2009	Wire		Payroll Tax	Payroll				5,288.50		5,288.50
08/11/2009		8607	Payroll	Payroll				1,379.03		1,379.03
08/11/2009		8608	Payroll	Payroll				7,504.52		7,504.52
08/11/2009		8609	Payroll	Payroll				2,788.12		2,788.12
08/13/2009	Wire		Comerica Bank	Bank Fee				293.89		293.89
08/13/2009		1484	Anthem Blue Cross	Insurance				2,484.00		2,484.00
08/13/2009		1485	Bonded Services	Storage				4,000.00		4,000.00
08/13/2009		1486	Recall	Storage				918.84		918.84
08/13/2009		1487	Xerox	Office Supplies				22.49		22.49
08/21/2009	Wire		ADP	Payroll Fees				106.30		106.30
08/21/2009		1488	Alice Neuhauser Expenses	Phone / Internet / Parking				441.02		441.02
08/21/2009		1489	Arrowhead	Office Supplies				16.10		16.10
08/21/2009		1490	AT & T	Internet				86.16		86.16
08/21/2009		1491	Blue Shield	Insurance				319.00		319.00
08/21/2009		1492	Federal Express	Shipping				26.29		26.29
08/21/2009		1493	New Beginnings Enterprises	Rent / Parking				4,896.51		4,896.51
08/21/2009		1494	Alice Neuhauser Expenses	Health				69.22		69.22
08/21/2009		1495	AT & T	Telepone				291.67		291.67
08/25/2009	Wire		Payroll Tax	Payroll				5,441.91		5,441.91
08/25/2009		8610	Payroll	Payroll				1,379.02		1,379.02
08/25/2009		8611	Payroll	Payroll				7,693.51		7,693.51
08/25/2009		8612	Payroll	Payroll				2,788.12		2,788.12
08/28/2009	Wire		ADP	Payroll Fees				83.20		83.20
08/28/2009		1496	Kevin Marino Expenses	Office Supplies				299.69		299.69
08/28/2009		1497	Stutman Treister & Glatt	Legal Fees				33,438.61		33,438.61
			TOTAL DISBURSEMENTS THIS PERIOD:			0.00		82,142.02	$	82,142.02

*	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:		8/31/2009		Balance on Statement:			$	349,463.91
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
		1497		8/28/2009		$	33,438.61
TOTAL OUTSTANDING CHECKS:										33,438.61
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:									$	316,025.30

*	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:	94
	Debtor(s).	For the Month Ending:	8/31/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				12,043,050.24
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,400,594.62
3. BEGINNING BALANCE:				642,455.62
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing			41,504.25
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	Interest		57.67
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:				41,561.92
5. BALANCE:				684,017.54
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)			85,000.00
Disbursements (from page 2)
TOTAL DISBURSEMENTS THIS PERIOD:***				85,000.00
7. ENDING BALANCE:				599,017.54
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			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
8/17/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
8/28/2009	Wire	Kushner-Locke	Internal Transfer		50,000.00				50,000.00
									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
									0.00
									0.00
		TOTAL DISBURSEMENTS THIS PERIOD:			85,000.00		0.00	$	85,000.00

*	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 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

	Bank statement Date:	8/31/2009	Balance on Statement:	$	599,017.54
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:				$	599,017.54

*	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

In Re:		CHAPTER 11 (BUSINESS)
The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	94
	Debtor(s).	For the Month Ending:	8/31/2009

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		51,487.80
3.  BEGINNING BALANCE:		1,251,082.48
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:		1,251,082.48
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:		1,251,032.48
8.  General Account Number(s):	112391673
Depository Name & Location:	City National Bank
	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
08/31/2009	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:		8/31/2009	Balance on Statement:	$	1,251,032.48
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:					$	1,251,032.48

*	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: 08/01/09-08/31/09
(Provide a copy of monthly account statements for each of the below)
		General Account:	316,025.30
		Collateral Account:	599,017.54
		Collection Account:	1,251,032.48
*Other Accounts:
	Bank of Scotland — Pinocchio	Time Deposit	219,122.20	Currency: GBP
	Bank of Scotland — Basil	Time Deposit	247,332.25	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	39,997.94
	Denial Venture	JV Account	244,926.92
	Cracker LLC	JV Account	15,569.01
	Swing	JV Account	13,031.13
*Other Monies:
		**Petty Cash (from below):	0.00
TOTAL CASH AVAILABLE:					3,018,774.69

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 not made
Creditor, Lessor, Etc.	Payments (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		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		6,247.95				551,661.12
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:		6,247.95		0.00		551,661.12

V. INSURANCE COVERAGE

			Amount of		Policy Expiration		Premium Paid
		Name of Carrier	Coverage		Date		Through (Date)
	Commercial Package	St. Paul Travelers		2,000,000.00		2/14/2010		2/14/2010
	Worker’s Compensation	St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
	E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period		Total
Ending (Date)		Disbursements		Quarterly Fees		Date Paid	Amount Paid		Quarterly Fees 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	* Authorized Gross	Paid During the
Name of Insider	Compensation	Compensation	Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

	Date of Order		Amount
	Authorizing		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)

	Aug 09
Ordinary Income/Expense
Income
KL International Sales		5,500.00
Royalties		4,004.25
Total Income		9,504.25
Gross Profit		9,504.25
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Sevice Charge		293.89
Total Bank Service Charges		343.89
Copy Machine		22.49
Delivery & Distribution Expense
Shipping		26.29
Total Delivery & Distribution Expense		26.29
Insurance
Dental		319.00
Health		2,484.00
Total Insurance		2,803.00
Office Supplies		315.79
Parking		660.00
Payroll
Payroll cost — Employees		12,007.13
Payroll Fee		275.80
Responsible Officer		22,255.60
Total Payroll		34,538.53
Professional Fees
Legal Fees		2,327.79
Total Professional Fees		2,327.79
Rent		9,133.02
Storage		4,918.84
Total Expense		55,089.64
Net Ordinary Income		-45,585.39
Other Income/Expense
Other Income
Interest Income		57.67
Total Other Income		57.67
Net Other Income		57.67
Net Income		-45,527.72

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Aug 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,251,032.48
Comerica — DIP		316,025.30
Due from Vision/to Vision		9,209.62
KL Cash Collateral — JP Morgan		599,017.54
Total Checking/Savings		2,175,284.94
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		225,000.00
AR — KL		258,333.35
AR — Vision		53,327.77
Total Accounts Receivable		551,661.12
Total Current Assets		2,726,946.06
TOTAL ASSETS		2,726,946.06
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		6,247.95
Total Accounts Payable		6,247.95
Total Current Liabilities		6,247.95
Total Liabilities		6,247.95
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-618,011.23
Total Equity		2,720,698.11
TOTAL LIABILITIES & EQUITY		2,726,946.06

Page 15 of 16

XI. QUESTIONNAIRE

		No
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:	þ
		No
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:	þ
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
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.	þ
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

EX-99.2

Exhibit 99.2

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:	95
	Debtor(s).	For the Month Ending:	9/30/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,283,438.72
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				10,967,413.42
3. BEGINNING BALANCE:				316,025.30
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing			8,952.93
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	Internal Transfers		50,000.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:				58,952.93
5. BALANCE:				374,978.23
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)			0.00
Disbursements (from page 2)			72,281.58
7. ENDING BALANCE:				302,696.65
8. General Account Number(s):			1891935460
Depository Name & Location:		Comerica Bank
		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
09/02/2009	Wire	Payroll Tax				$	5,288.49	$	5,288.49
09/02/2009	1498	Bonded Services				$	4,000.00	$	4,000.00
09/02/2009	1499	Bowne of Los Angeles				$	1,246.00	$	1,246.00
09/02/2009	1500	Brandon & Morner Ritt				$	3,233.40	$	3,233.40
09/02/2009	1501	Global Media Television				$	7,500.00	$	7,500.00
09/02/2009	1502	Kevin Marino Expenses				$	141.53	$	141.53
09/02/2009	1503	Xerox				$	22.49	$	22.49
09/02/2009	8613	Payroll				$	1,379.04	$	1,379.04
09/02/2009	8614	Payroll				$	7,504.52	$	7,504.52
09/02/2009	8615	Payroll				$	2,788.12	$	2,788.12
09/04/2009	Wire	ADP				$	86.30	$	86.30
09/14/2009	Wire	ADP				$	86.30	$	86.30
09/18/2009	Wire	ADP				$	20.00	$	20.00
09/18/2009	Wire	Comerica Bank				$	281.84	$	281.84
09/18/2009	1504	Anthem Blue Cross				$	2,484.00	$	2,484.00
09/18/2009	1505	Arrowhead				$	16.10	$	16.10
09/18/2009	1506	Blue Shield				$	319.00	$	319.00
09/18/2009	1507	Federal Express				$	27.32	$	27.32
09/18/2009	1508	Kevin Marino Expenses				$	569.64	$	569.64
09/18/2009	1509	Recall				$	918.84	$	918.84
09/22/2009	Wire	Payroll Tax				$	3,705.42	$	3,705.42
09/22/2009	8616	Payroll				$	1,379.03	$	1,379.03
09/22/2009	8617	Payroll				$	5,321.27	$	5,321.27
09/22/2009	8618	Payroll				$	2,788.11	$	2,788.11
09/25/2009	Wire	ADP				$	83.20	$	83.20
09/28/2009	1510	AT & T				$	86.16	$	86.16
09/28/2009	1511	AT & T				$	287.12	$	287.12
09/28/2009	1512	Kevin Marino Expenses				$	319.40	$	319.40
09/28/2009	1514	New Beginnings Enterprises				$	4,896.51	$	4,896.51
09/30/2009	1515	New Wave Entertainment				$	650.00	$	650.00
09/30/2009	1516	Anthem Blue Cross				$	2,484.00	$	2,484.00
09/30/2009	1517	Bonded Services				$	4,000.00	$	4,000.00
09/30/2009	1518	Digital Post Services				$	590.70	$	590.70
09/30/2009	1519	New Beginnings Enterprises				$	4,896.51	$	4,896.51
09/30/2009	1520	New Wave Entertainment				$	256.00	$	256.00
09/30/2009	1521	Point 360				$	2,625.22	$	2,625.22
		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		72,281.58	$	72,281.58

*	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:			9/30/2009	Balance on Statement:		$	321,360.47
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
		1510		9/28/2009	$	86.16
		1511		9/28/2009	$	287.12
		1515		9/30/2009	$	650.00
		1516		9/30/2009	$	2,484.00
		1517		9/30/2009	$	4,000.00
		1518		9/30/2009	$	590.00
		1519		9/30/2009	$	4,896.51
		1520		9/30/2009	$	256.00
		1521		9/30/2009	$	2,625.22
		8618		9/22/2009	$	2,788.11
TOTAL OUTSTANDING CHECKS:								18,663.82
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	302,696.65

*	It is acceptable to replace this form with a similar form
**	Please attach a detailed explanation of any bank statement adjustment

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:		95
	Debtor(s).	For the Month Ending:		9/30/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			12,084,612.16
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,485,594.62
3. BEGINNING BALANCE:			599,017.54
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing
Accounts Receivable — Pre-filing
General Sales
Other (Specify)          Interest		55.90
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:			55.90
5. BALANCE:			599,073.44
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		50,000.00
Disbursements (from page 2)		7,598.79
TOTAL DISBURSEMENTS THIS PERIOD:***			57,598.79
7. ENDING BALANCE:			541,474.65
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			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
9/3/2009	Wire	JP Morgan Chase	Legal Fees				2,327.79		2,327.79
9/11/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
9/22/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
09/30/2009	Wire	JP Morgan Chase	Legal Fees				5,271.00		5,271.00
									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:					50,000.00		7,598.79	$	57,598.79

*	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:	9/30/2009	Balance on Statement:		$	546,745.65
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
	Wire	9/30/2009		5,271.00
TOTAL OUTSTANDING CHECKS:						5,271.00
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:					$	541,474.65

*	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

In Re:		CHAPTER 11 (BUSINESS)
The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	95
	Debtor(s).	For the Month Ending:	9/30/2009

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		51,537.80
3.  BEGINNING BALANCE:		1,251,032.48
4.  RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing	3,359.52
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	0.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:		3,359.52
5.  BALANCE:		1,254,392.00
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:		1,254,342.00
8.  General Account Number(s):	112391673
Depository Name & Location:	City National Bank
	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
09/30/2009	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:		9/30/2009	Balance on Statement:	$	1,254,342.00
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:					$	1,254,342.00

*	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: 08/01/09-08/31/09

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

		General Account:	302,696.65
		Collateral Account:	541,474.65
		Collection Account:	1,254,342.00
*Other Accounts:
	Bank of Scotland — Pinocchio	Time Deposit	219,161.83	Currency: GBP
	Bank of Scotland — Basil	Time Deposit	247,376.97	Currency: GBP
	Edge Entertainment		172.89
	KL- PWI account		731.10
	BLT Venture	JV Account	70,269.08
	BLT Venture	JV Account	330.45
	KL\7 Venture	JV Account	40,002.87
	Denial Venture	JV Account	244,987.31
	Cracker LLC	JV Account	15,569.01
	Swing	JV Account	13,031.13
*Other Monies:
		**Petty Cash (from below):	0.00
TOTAL CASH AVAILABLE:				2,950,145.94

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		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	9,593.51		561,661.12
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:	9,593.51	0.00	561,661.12

V. INSURANCE COVERAGE

		Amount of		Policy Expiration	Premium Paid
	Name of Carrier	Coverage		Date	Through (Date)
Commercial Package	St. Paul Travelers		2,000,000.00	2/14/2010	2/14/2010
Worker’s Compensation	St. Paul Travelers		1,000,000.00	1/14/2010	1/14/2010
E & O	St. Paul Travelers	3,000,000.00		3/3/2010	3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period								Quarterly Fees
Ending (Date)	Total 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
30-Sep-2009		222,369.77		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
				83,850.00			83,975.00		(125.00	)

* 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

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

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During 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)

	Sep 09
Ordinary Income/Expense
Income
KL International Sales		10,000.00
materials		8,952.93
Total Income		18,952.93
Cost of Goods Sold
Vision Expenses		2,025.17
Vision Sales Fee		3,824.93
Total COGS		5,850.10
Gross Profit		13,102.83
Expense
Agents Fees		7,500.00
Bank Service Charges
City National — Service Charge		50.00
Comerica — Sevice Charge		281.84
Total Bank Service Charges		331.84
Copy Machine		22.49
Delivery & Distribution Expense
Billable Materials		3,275.22
Elements		590.70
Marketing		520.00
Shipping		27.32
Total Delivery & Distribution Expense		4,413.24
Dues and Subscriptions		99.95
Insurance
Dental		319.00
Health		2,484.00
Health Acct.		69.22
Total Insurance		2,872.22
Internet		136.16
Office Supplies		632.72
Parking		330.00
Payroll
Payroll cost — Employees		12,007.14
Payroll Fee		275.80
Responsible Officer		18,146.86
Total Payroll		30,429.80
Professional Fees
Legal Fees		5,271.00
Total Professional Fees		5,271.00
Rent		4,566.51
SEC Reporting		1,836.00
Storage		4,918.84
Telephone		287.12
Telephone / E-mail Exepnses		441.02
Total Expense		64,088.91
Net Ordinary Income		-50,986.08
Other Income/Expense
Other Income
Interest Income		55.90
Total Other Income		55.90
Net Other Income		55.90
Net Income		-50,930.18

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Sep 30, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,254,342.00
Comerica — DIP		302,696.65
KL Cash Collateral — JP Morgan		541,474.65
Total Checking/Savings		2,098,513.30
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		225,000.00
AR — KL		258,333.35
AR — Vision		63,327.77
Total Accounts Receivable		561,661.12
Total Current Assets		2,660,174.42
TOTAL ASSETS		2,660,174.42
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-9,593.51
Total Accounts Payable		-9,593.51
Total Current Liabilities		-9,593.51
Total Liabilities		-9,593.51
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-668,941.41
Total Equity		2,669,767.93
TOTAL LIABILITIES & EQUITY		2,660,174.42

Page 15 of 16

XI. QUESTIONNAIRE

		No
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:	þ
		No
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:	þ
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
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.	þ
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

EX-99.3

Exhibit 99.3

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:	96
	Debtor(s).	For the Month Ending:	10/31/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,342,391.65
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,039,695.00
3. BEGINNING BALANCE:			302,696.65
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing
Accounts Receivable — Pre-filing
General Sales
Other (Specify)          Internal Transfers		35,000.00
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:			35,000.00
5. BALANCE:			337,696.65
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		0.00
Disbursements (from page 2)		57,637.09
TOTAL DISBURSEMENTS THIS PERIOD:***			57,637.09
7. ENDING BALANCE:			280,059.56
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
10/02/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/12/2009	Wire	Payroll Tax	Payroll		$	5,902.08	$	5,902.08
10/12/2009	8619	Payroll	Payroll		$	1,379.03	$	1,379.03
10/12/2009	8620	Payroll	Payroll		$	8,260.51	$	8,260.51
10/12/2009	8621	Payroll	Payroll		$	2,788.12	$	2,788.12
10/14/2009	Wire	Comerica Bank	Bank Fee		$	299.22	$	299.22
10/16/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/16/2009	1522	Accurate Express	Shipping		$	42.33	$	42.33
10/16/2009	1523	Alice Neuhauser Expenses	Phone / Internet / Meals		$	409.28	$	409.28
10/16/2009	1524	Arrowhead	Office Supplies		$	9.15	$	9.15
10/16/2009	1525	Bowne of Los Angeles	SEC Reporting		$	590.00	$	590.00
10/16/2009	1526	ITE Solutions	Computer / IT		$	862.50	$	862.50
10/16/2009	1527	Recall	Storage		$	918.84	$	918.84
10/16/2009	1528	Xerox	Office Supplies		$	22.49	$	22.49
10/19/2009	1529	Point 360	Marketing		$	480.00	$	480.00
10/20/2009	Wire	Payroll Tax	Payroll		$	6,464.51	$	6,464.51
10/20/2009	8622	Payroll	Payroll		$	1,379.03	$	1,379.03
10/20/2009	8623	Payroll	Payroll		$	8,953.52	$	8,953.52
10/20/2009	8624	Payroll	Payroll		$	2,788.12	$	2,788.12
10/23/2009	Wire	ADP	Payroll Fees		$	196.95	$	196.95
10/23/2009	1530	AT & T	Internet		$	86.12	$	86.12
10/23/2009	1531	AT & T	Phone		$	289.11	$	289.11
10/23/2009	1532	Global Media Television	Agent Fees		$	3,750.00	$	3,750.00
10/23/2009	1533	Keren Aminia Expenses	Office Supplies / Internet / Meals		$	1,347.19	$	1,347.19
10/23/2009	1534	Kevin Marino Expenses	Internet		$	140.10	$	140.10
10/23/2009	1535	Thomas R. Conroy	Computer / IT		$	310.00	$	310.00
10/30/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/30/2009	1536	Anthem Blue Cross	Insurance		$	2,484.00	$	2,484.00
10/30/2009	1537	Blue Shield	Insurance		$	638.00	$	638.00
10/30/2009	1538	Digital Post Services	Marketing		$	479.75	$	479.75
10/30/2009	1539	ITE Solutions	Computer / IT		$	1,035.00	$	1,035.00
10/30/2009	1540	Kevin Marino Expenses	Postage / Meals		$	101.73	$	101.73
10/30/2009	1541	New Beginnings Enterprises	Rent / Parking		$	4,896.51	$	4,896.51
10/30/2009	1542	New Wave Entertainment	Marketing		$	75.00	$	75.00
		TOTAL DISBURSEMENTS THIS PERIOD:		0.00	57,637.09		$	57,637.09

*	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:			10/31/2009	Balance on Statement:		$	291,426.74
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
		1533		10/23/09	$	1,347.19
		1535		10/23/09	$	310.00
		1536		10/30/09	$	2,484.00
		1537		10/30/09	$	638.00
		1538		10/30/09	$	479.75
		1539		10/30/09	$	1,035.00
		1540		10/30/09	$	101.73
		1541		10/30/09	$	4,896.51
		1542		10/30/09	$	75.00
TOTAL OUTSTANDING CHECKS:								11,367.18
Bank statement Adjustments:
Explanation of Adjustments-
ADJUSTED BANK BALANCE:							$	280,059.56

*	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:	96
	Debtor(s).	For the Month Ending:	10/31/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				12,084,668.06
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				11,543,193.41
3. BEGINNING BALANCE:				541,474.65
4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing			25,027.00
Accounts Receivable — Pre-filing
General Sales
Other (Specify)	Interest		57.06
**Other (Specify)
TOTAL RECEIPTS THIS PERIOD:				25,084.06
5. BALANCE:				566,558.71
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)			35,000.00
Disbursements (from page 2)			0.00
TOTAL DISBURSEMENTS THIS PERIOD:***				35,000.00
7. ENDING BALANCE:				531,558.71
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			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
10/21/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
									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
									0.00
									0.00
									0.00
		TOTAL DISBURSEMENTS THIS PERIOD:			35,000.00		0.00	$	35,000.00

*	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 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION

	Bank statement Date:	10/31/2009	Balance on Statement:	$	531,558.71
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:				$	531,558.71

*	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

In Re:		CHAPTER 11 (BUSINESS)
The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	96
	Debtor(s).	For the Month Ending:	10/31/2009

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

1.  TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		1,305,929.80
2.  LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		51,587.80
3.  BEGINNING BALANCE:		1,254,342.00
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:		1,254,342.00
6.  LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)	0.00
Disbursements (from page 2)	100.00
TOTAL DISBURSEMENTS THIS PERIOD:***		100.00
7.  ENDING BALANCE:		1,254,242.00
8.  General Account Number(s):	112391673
Depository Name & Location:	City National Bank
	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
10/31/2009	Fee	City National Bank	Bank Fee			$	100.00		100.00
									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		100.00	$	100.00

*	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:			10/31/2009	Balance on Statement:	$	1,254,242.00
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:					$	1,254,242.00

*	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: 08/01/09-08/31/09
(Provide a copy of monthly account statements for each of the below)
	General Account:			280,059.56
	Collateral Account:			531,558.71
	Collection Account:			1,254,242.00
*Other Accounts:
	Bank of Scotland - Pinocchio	Time Deposit		218,672.86	Currency: GBP
	Bank of Scotland - Basil	Time Deposit		247,417.64	Currency: GBP
	Edge Entertainment			0.00
	KL- PWI account			731.10
	BLT Venture	JV Account		70,269.08
	BLT Venture	JV Account		330.45
	KL\7 Venture	JV Account		40,007.96
	Denial Venture	JV Account		245,049.73
	Cracker LLC	JV Account		15,569.01
	Swing	JV Account		13,031.13
*Other Monies:
	**Petty Cash (from below):			0.00
TOTAL CASH AVAILABLE:						2,916,939.23
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	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		0.00				560,976.42
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
TOTAL:		0.00		0.00		560,976.42

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		2/14/2010
	Worker’s Compensation	St. Paul Travelers		1,000,000.00		1/14/2010		1/14/2010
	E & O	St. Paul Travelers		3,000,000.00		3/3/2010		3/3/2010
Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES

(TOTAL PAYMENTS)

								Quarterly Fees
Quarterly Period Ending (Date)	Total 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
30-Sep-2009		222,369.77		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
				83,850.00			83,975.00

* 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

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

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

	Date of Order
	Authorizing		Amount Paid
Name of Insider	Compensation	Description	During 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)

	Oct 09
Ordinary Income/Expense
Income
KL International Sales		22,500.00
Royalties		6,277.00
Total Income		28,777.00
Gross Profit		28,777.00
Expense
Agents Fees		3,750.00
Bank Service Charges
City National — Service Charge		100.00
Comerica — Sevice Charge		299.22
Total Bank Service Charges		399.22
Copy Machine		22.49
Delivery & Distribution Expense
Marketing		1,034.75
Total Delivery & Distribution Expense		1,034.75
Insurance
Dental		319.00
Health		2,484.00
Total Insurance		2,803.00
Internet		86.12
IT / Computers		2,207.50
Office Supplies		1,356.34
Payroll
Payroll cost — Employees		12,007.12
Payroll Fee		455.85
Responsible Officer		25,907.80
Total Payroll		38,370.77
Postage and Delivery		42.33
Professional Development		44.00
Professional Fees
Legal Fees		5,121.62
Total Professional Fees		5,121.62
Storage		4,918.84
Telephone		289.11
Telephone / E-mail Exepnses		549.38
Travel & Ent
Meals		57.73
Total Travel & Ent		57.73
Total Expense		61,053.20
Net Ordinary Income		-32,276.20
Net Income		-32,276.20

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Oct 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,254,242.00
Comerica — DIP		280,059.56
Due from Vision/to Vision		4,424.70
KL Cash Collateral — JP Morgan		531,501.65
Total Checking/Savings		2,070,227.91
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		206,250.00
AR — KL		258,333.35
AR — Vision		81,393.07
Total Accounts Receivable		560,976.42
Total Current Assets		2,631,204.33
TOTAL ASSETS		2,631,204.33
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-584.69
Total Accounts Payable		-584.69
Total Current Liabilities		-584.69
Total Liabilities		-584.69
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		318,611.31
Net Income		-32,276.20
Total Equity		2,631,789.02
TOTAL LIABILITIES & EQUITY		2,631,204.33

Page 15 of 16

XI. QUESTIONNAIRE

		No
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:	þ

		No
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:	þ
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
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.	þ
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