Exhibit 99.1

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company			Page 1 of 3
	Statement Number:	56
Chapter 11	For the Period FROM:	6/1/2006
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	6/30/2006
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		City National
				Account		Account		Collection Account
Balance before Statement #1				$	268,333.21	$	65,956.21
A.	Total Receipts per all Prior Interim Statements			$	9,091,489.41	$	7,443,229.89	$	550,688.52
B.	Less: Total Disbursements per all Prior Statements			$	7,635,954.55	$	7,395,921.43	$	6,142.48
C.	Beginning Balance			$	1,723,868.07	$	113,264.67	$	544,546.04
D.	Receipts during Current Period
	Description
		6/5/2006	Compact Collections	$	7,917.74
		6/5/2006	Lloyd Miller Productions (Fedex)			$	51.80
		6/14/2006	Sting Music					$	12,478.00
		6/14/2006	Sting Music					$	2,600.00
		6/15/2006	Daro Films	$	49,967.08
		6/16/2006	High Fliers	$	564.37
		6/16/2006	Showtime	$	40,000.00
		6/20/2006	PS Here! (From KL Comerica)	$	7,500.00
		6/21/2006	High Fliers	$	672.73
		6/22/2006	Beverly Hills Entertainment					$	33,500.00
		6/26/2006	Wire Transfer			$	45,000.00
		6/30/2006	interest	$	7,322.78
	TOTAL RECEIPTS THIS PERIOD			$	113,944.70	$	45,051.80	$	48,578.00		—
E.	Balance Available (C plus D)			$	1,837,812.77	$	158,316.47	$	593,124.04	$	—

               DEBTOR IN POSSESSION INTERIM STATEMENT NO: 56 Page 2 of 3                    

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
6/1/2006	8301		Payroll			$	1,319.76
6/1/2006	8302		Payroll			$	9,726.63
6/1/2006	8303		Payroll			$	1,544.03
6/1/2006	8304		Payroll			$	2,744.04
6/1/2006			ADP Taxes			$	7,534.47
6/2/2006	38533		New Wave Entertainment			$	170.00
6/9/2006			ADP Fees			$	106.17
6/15/2006			Service Charge			$	105.83
6/16/2006	38534		Federal Express			$	96.65
6/16/2006	38535		Accurate Express			$	108.40
6/16/2006			ADP Fees			$	20.00
6/20/2006	8305		Payroll			$	1,319.74
6/20/2006	8306		Payroll			$	11,048.98
6/20/2006	8307		Payroll			$	1,544.01
6/20/2006	8308		Payroll			$	2,744.01
6/20/2006			ADP Taxes			$	8,685.04
6/20/2006			Wire Transfer - IMEC Basil			$	2,411.00
6/23/2006	38536		Health Net			$	4,187.18
6/23/2006	38537		Blue Shield of California			$	373.00
6/23/2006	38538		New Beginnings Enterprises			$	4,174.95
6/23/2006	38539		KEVIN MARINO			$	1,342.58
6/23/2006	38540		Alice P.Neuhauser			$	405.62
6/23/2006	38541		Arrowhead			$	15.98
6/23/2006	38542		Personnel Concepts Limited			$	74.85
6/23/2006	38543		Accurate Express			$	20.70
6/23/2006			ADP Fees			$	167.00
6/26/2006			Wire Transfer	$	45,000.00
6/30/2006			ADP Taxes			$	8,817.69
6/30/2006			ADP Fees			$	106.17
6/30/2006	8309		Payroll			$	1,319.77
6/30/2006	8310		Payroll			$	11,201.56
6/30/2006	8311		Payroll			$	1,544.04
6/30/2006	8312		Payroll			$	2,744.04
6/30/2006			Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	45,000.00	$	87,723.89	$	50.00		—
G. Ending Balance (E less F)				$	1,792,812.77	$	70,592.58	$	593,074.04	$	—

               DEBTOR IN POSSESSION INTERIM STATEMENT NO: 56 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		$	731.10
Bank of Scotland — Pinocchio	936582	£	453,174.02	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	224,511.47	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio	10747301	$	—	Pound Sterling
Edge Entertainment	1891152710	$	172.89
I: Other monies on hand (continued):
Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).
Joint Venture Accounts:
BLT Venture	178-71491-7	$	95,381.96
BLT Venture	16-524173-1101	$	330.45
KL MDP Sensation	60-066-930	$	—
KL\7 Venture	1890-69-6360	$	30,086.34
Denial Venture	1890-69-6501	$	152,097.24
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	8,097.50

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