EXHIBIT 99.3

Page 1 of 3

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

Statement Number:	58
For the Period FROM:	8/1/2006
TO:	8/31/2006

		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements		$	9,313,429.37	$	7,608,281.69	$	601,244.52
B. Less: Total Disbursements per all Prior Statements		$	7,800,954.55	$	7,525,215.25	$	6,242.48
C. Beginning Balance		$	1,780,808.03	$	149,022.65	$	595,002.04
D. Receipts during Current Period
Description
8/14/2006	PS Here!	$	7,500.00
8/15/2006	Daro Films	$	49,967.14
8/15/2006	Compact Collections	$	6,675.55
8/17/2006	Wire Transfer			$	40,000.00
8/30/2006	Wire Transfer			$	40,000.00
8/30/2006	Sting Music					$	14,778.00
8/31/2006	interest	$	7,989.14
TOTAL RECEIPTS THIS PERIOD		$	72,131.83	$	80,000.00	$	14,778.00		—
E. Balance Available (C plus D)		$	1,852,939.86	$	229,022.65	$	609,780.04	$	—

Page 2 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 58

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
8/1/2006		ADP Taxes			$	7,932.76
8/1/2006	8317	Payroll			$	1,319.75
8/1/2006	8318	Payroll			$	10,184.37
8/1/2006	8319	Payroll			$	1,544.02
8/1/2006	8320	Payroll			$	2,744.02
8/2/2006	38570	Brandon & Morner-Ritt			$	17,210.72
8/2/2006	38571	Bonded Services, Inc			$	6,592.01
8/2/2006	38572	JDJ Investments Inc			$	271.42
8/7/2006	38573	KEVIN MARINO			$	333.19
8/7/2006	38574	Two Easily Amused			$	1,650.16
8/7/2006	38575	Recall			$	1,071.45
8/11/2006		ADP Fees			$	137.69
8/15/2006		ADP Taxes			$	6,751.23
8/15/2006		Service Charge			$	100.22
8/15/2006	8321	Payroll			$	1,319.75
8/15/2006	8322	Payroll			$	8,797.93
8/15/2006	8323	Payroll			$	1,544.02
8/15/2006	8324	Payroll			$	2,744.03
8/17/2006		Wire Transfer	$	40,000.00
8/18/2006	38576	USI of Southern California			$	201.00
8/18/2006	38577	Clumeck,Stern,Schenkelburg& Getzo			$	6,012.00
8/18/2006	38578	Federal Express			$	104.49
8/18/2006	38579	Hollywood Creative Directory			$	249.95
8/18/2006	38580	BLUBlue Shield of California			$	373.00
8/18/2006	38581	Arrowhead			$	19.22
8/18/2006	38582	FRAFranchise Tax Board			$	6,400.00
8/25/2006		ADP Fees			$	130.00
8/25/2006	38583	Health Net			$	4,187.18
8/25/2006	38584	New Beginnings Enterprises			$	3,903.53
8/25/2006	38585	AT&T			$	75.66
8/25/2006	38586	AT&T			$	316.97
8/25/2006	38587	ITE Solutions			$	730.00
8/29/2006		ADP Taxes			$	7,888.52
8/29/2006	8325	Payroll			$	1,319.75
8/29/2006	8326	Payroll			$	10,133.50
8/29/2006	8327	Payroll			$	1,544.02
8/29/2006	8328	Payroll			$	2,744.02
8/30/2006		Wire Transfer	$	40,000.00
8/31/2006		Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	80,000.00	$	118,581.55	$	50.00		—
G. Ending Balance (E less F)			$	1,772,939.86	$	110,441.10	$	609,730.04	$	—

Page 3 of 3

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 58

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	£	454,482.64	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	225,159.79	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	$	29,416.59
	Denial Venture	1890-69-6501	$	151,714.83
	Cracker LLC	1891-04-1665	$	732.79
	Swing	323-518095	$	7,362.50

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