Exhibit 99.3

EXHIBIT 99.3

Office of the United States Trustee


In re:		DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company								Page 1 of 3
		Statement Number:				67
Chapter 11		For the Period FROM:				5/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with		TO:				5/31/2007
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		$	9,931,200.64	$	8,724,774.19	$	906,261.28

B. Less: Total Disbursements per all Prior Statements		$	9,010,014.84	$	8,681,636.44	$	21,290.52


C. Beginning Balance		$	1,189,519.01	$	109,093.96	$	884,970.76

D. Receipts during Current Period
Description


5/1/2007	Refund of money wrongly received					$	(20,900.00	)
5/2/2007	Force Entertainment					$	24,409.69
5/10/2007	Hamdon Entertainment	$	2,804.00
5/11/2007	Real Networks					$	4,000.00
5/11/2007	Wire Transfer			$	70,000.00
5/16/2007	N Tree
5/17/2007	Compact Collections	$	12,208.35			$	11,250.00
5/31/2007	Wire Transfer
5/31/2007	interest	$	5,172.40


TOTAL RECEIPTS THIS PERIOD		$	20,184.75	$	100,000.00	$	18,759.69			—

E. Balance Available (C plus D)		$	1,209,703.76	$	209,093.96	$	903,730.45		$	—


DEBTOR lN POSSESSION INTERIM STATEMENT NO: 67		Page 2 of 3

F. Less: Disbursements during Current Period:


Date	Check No.	Payee/Purpose
5/4/2007		ADP Fees			$	127.69
5/8/2007		ADP Taxes			$	7,722.66
5/8/2007	8401	Payroll			$	1,357.46
5/8/2007	8402	Payroll			$	9,896.99
5/8/2007	8403	Payroll			$	1,628.87
5/8/2007	8404	Payroll			$	2,888.18
5/10/2007	38779	Accurate Express			$	60.96
5/10/2007	38780	Blue Shield of California			$	387.00
5/10/2007	38781	Bonded Services, Inc			$	6,588.60
5/10/2007	38782	Federal Express			$	92.96
5/10/2007	38783	Health Net			$	4,644.70
5/10/2007	38784	Hollywood Reporter			$	247.89
5/10/2007	38785	ITE Solutions			$	775.00
5/10/2007	38786	New Wave Entertainment			$	400.00
5/10/2007	38787	Secretary of State			$	25.00
5/10/2007	38788	United States Trustee			$	250.00
5/10/2007	38789	United States Trustee			$	3,750.00
5/10/2007	38790	United States Trustee			$	250.00
5/10/2007	38791	United States Trustee			$	250.00
5/10/2007	38792	United States Trustee			$	250.00
5/10/2007	38793	United States Trustee			$	250.00
5/10/2007	38794	United States Trustee			$	250.00
5/10/2007	38795	United States Trustee			$	250.00
5/10/2007	38796	United States Trustee			$	250.00
5/11/2007		Wire Transfer	$	70,000.00
5/11/2007	38797	Recall			$	1,139.26
5/11/2007	1006	Vision Films					$	409.69
5/15/2007		Service Charge			$	164.19
5/18/2007		ADP Fees			$	246.51
5/21/2007		ADP Taxes			$	7,852.54
5/22/2007	8405	Payroll			$	1,357.46
5/22/2007	8406	Payroll			$	9,175.00
5/22/2007	8407	Payroll			$	8,110.70
5/22/2007	8408	Payroll			$	1,628.87
5/22/2007	8409	Payroll			$	2,888.1
5/25/2007		ADP Fees			$	17.31
5/30/2007	38798	Accurate Express			$	64.63
5/30/2007	38799	Arrowhead			$	19.22
5/30/2007	38800	AT&T			$	68.89
5/30/2007	38801	Blue Shield of California			$	1,161.00
5/30/2007	38802	Bonded Services, Inc			$	13,177.20
5/30/2007	38803	Federal Express			$	16.12
5/30/2007	38804	Health Net			$	4,644.70
5/30/2007	38805	New Beginnings Enterprises			$	8,882.88
5/30/2007	38806	AT&T			$	326.95
5/30/2007	38807	KEREN AMINIA			$	1,250.83
5/31/2007		Control Agreement Fee					$	50.00
5/31/2007		Wire Transfer	$	30,000.00

TOTAL DISBURSEMENTS THIS PERIOD:			$	100,000.00	$	104,796.41	$	459.69		—

G. Ending Balance (E less F)			$	1,109,703.76	$	104,297.55	$	903,270.76	$	—


DEBTOR lN POSSESSION INTERIM STATEMENT NO: 67		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	£	467,925.89	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	232,459.05	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	$	31,712.15
Denial Venture	1890-69-6501	$	163,449.96
Cracker LLC	1891-04-1665	$	732.79
Swing	323-51 8095	$	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 Neuhauser

				Debtor in Possession