EXHIBIT 99.7

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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:	60
For the Period FROM:	10/1/2006
TO:	10/31/2006

		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		$	9,451,296.08	$	7,768,281.69	$	629,052.39
B. Less: Total Disbursements per all Prior Statements		$	7,960,954.55	$	7,721,514.69	$	20,940.52
C. Beginning Balance		$	1,758,674.74	$	112,723.21	$	608,111.87
D. Receipts during Current Period
Description
10/4/2006	Sci-Fi Europe					$	4,842.00
10/11/2006	Wire Transfer			$	35,000.00
10/16/2006				$	171,000.00
10/24/2006	Wire Transfer			$	120,000.00
10/27/2006	Daro Films	$	43,846.01
10/31/2006	interest	$	7,215.37
TOTAL RECEIPTS THIS PERIOD		$	51,061.38	$	326,000.00	$	4,842.00		—
E. Balance Available (C plus D)		$	1,809,736.12	$	438,723.21	$	612,953.87	$	—

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DEBTOR IN POSSESSION INTERIM STATEMENT NO: 60

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
10/3/2006		Wire Transfer - Lion’s Gate	$	75,000.00
10/6/2006		ADP Taxes			$	4,162.98
10/6/2006		ADP Fees			$	112.69
10/10/2006	8337	Payroll			$	1,319.74
10/10/2006	8338	Payroll			$	5,489.44
10/10/2006	8339	Payroll			$	1,544.01
10/10/2006	8340	Payroll			$	2,744.01
10/11/2006		WireTransfer - KL Comerica	$	35,000.00
10/12/2006		Wire Transfer - KL/7 Ven.	$	2,000.00
10/12/2006		Wire Transfer Swing Venture	$	5,968.63
10/12/2006		Wire Transfer - Denial Venture	$	10,091.66
10/13/2006		ADP Fees			$	20.00
10/13/2006	38607	Stutman Treister & Glatt			$	181,631.87
10/16/2006	38608	Bonded Services, Inc			$	6,595.90
10/16/2006	38609	New Wave Entertainment			$	300.00
10/16/2006	38610	AT&T			$	77.63
10/16/2006	38611	AT&T			$	332.51
10/16/2006	38612	Bowne of Los Angeles, Inc			$	530.90
10/16/2006	38613	Varien			$	300.00
10/16/2006	38614	ITE Solutions			$	890.00
10/16/2006	38615	Recall			$	1,262.20
10/16/2006	38616	Blue Shield of California			$	373.00
10/16/2006	38617	Franchise Tax Board			$	800.00
10/16/2006	38618	Franchise Tax Board			$	800.00
10/16/2006	38619	Franchise Tax Board			$	800.00
10/16/2006		WireTransfer - KL Comerica	$	171,000.00
10/17/2006		Service Charge			$	71.08
10/20/2006	38620	Federal Express			$	247.70
10/20/2006	38621	Accurate Express			$	29.33
10/20/2006	38622	Arrowhead			$	26.21
10/20/2006	38623	Clumeck,Stern,Schenkelburg& Getzo			$	1,300.00
10/20/2006	38624	Hacker, Douglas & Company LLP			$	18,072.50
10/23/2006	38625	ITE Solutions			$	230.00
10/23/2006	38626	Stutman Treister & Glatt			$	30,960.88
10/24/2006	8341	Payroll			$	1,319.76
10/24/2006	8342	Payroll			$	6,583.09
10/24/2006	8343	Payroll			$	1,544.03
10/24/2006	8344	Payroll			$	2,744.04
10/24/2006		ADP Taxes			$	4,971.45
10/24/2006		WireTransfer - KL Comerica	$	120,000.00
10/25/2006	38627	Health Net			$	4,187.18
10/25/2006	38628	Alice P.Neuhauser			$	327.14
10/25/2006	38629	New Beginnings Enterprises			$	4,174.95
10/25/2006	38630	United States Treasury			$	35.00
10/25/2006	38632	Brandon & Morner-Ritt			$	31,508.62
10/27/2006		ADP Fees			$	262.64
10/31/2006	38633	Dream LLC			$	1,634.85
10/31/2006	38634	AT&T			$	82.13
10/31/2006	38635	AT&T			$	322.42
10/31/2006	38636	Franchise Tax Board			$	6,400.00
10/31/2006		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	419,060.29	$	327,121.88	$	50.00		—
G. Ending Balance (E less F)			$	1,390,675.83	$	111,601.33	$	612,903.87	$	—

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DEBTOR IN POSSESSION INTERIM STATEMENT NO: 60

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	£	458,611.57	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	227,205.35	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	$	31,481.45
Denial Venture	1890-69-6501	$	162,166.82
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	13,331.13

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