Exhibit 99.1

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

Page 1 of 3

Statement Number:	69
For the Period FROM:	7/1/2007
TO:	7/31/2007

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		$	9,955,865.09	$	8,909,774.19	$	924,611.28
B.	Less: Total Disbursements per all Prior Statements		$	9,195,014.84	$	8,886,888.06	$	21,390.52
C.	Beginning Balance		$	1,029,183.46	$	88,842.34	$	903,220.76
D.	Receipts during Current Period
	Description
	7/3/2007	Teleprog					$	2,678.00
	7/5/2007	Wire Transfer			$	35,000.00
	7/5/2007	S Gold					$	5,975.00
	7/9/2007	Sony Pictures Classics	$	3,666.00
	7/12/2007	Starz	$	5,000.00
	7/18/2007	S Gold					$	5,975.00
	7/20/2007	Wire Transfer			$	48,000.00
	7/23/2007	Daro	$	127,410.83
	7/31/2007	interest	$	4,717.35
	TOTAL RECEIPTS THIS PERIOD		$	140,794.18	$	83,000.00	$	14,628.00		—
E.	Balance Available (C plus D)		$	1,169,977.64	$	171,842.34	$	917,848.76	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 69 Page 2 of 3

F.     Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
7/3/2007		38828	ATI Solutions, Inc.			$	575.00
7/3/2007			ADPTaxes			$	5,810.54
7/3/2007		8418	Payroll			$	1,357.46
7/3/2007		8419	Payroll			$	7,548.20
7/3/2007		8420	Payroll			$	1,628.87
7/3/2007		8421	Payroll			$	2,888.19
7/5/2007			Wire Transfer	$	35,000.00
7/13/2007			ADPFees			$	140.94
7/13/2007		38829	Accurate Express			$	20.70
7/13/2007		38830	Bowne of Los Angeles, Inc			$	1,614.00
7/13/2007		38831	Federal Express			$	94.21
7/13/2007		38832	KEVIN MARINO			$	314.68
7/17/2007		8422	Payroll			$	1,357.45
7/17/2007		8423	Payroll			$	7,829.45
7/17/2007		8424	Payroll			$	1,628.86
7/17/2007		8425	Payroll			$	2,888.19
7/17/2007			ADPTaxes			$	6,036.56
7/17/2007			Service Charge			$	224.76
7/19/2007		38833	Arrowhead			$	26.21
7/19/2007		38834	Dream LLC			$	817.59
7/19/2007		38835	Federal Express			$	62.66
7/19/2007		38836	Recall			$	1,255.01
7/19/2007		38837	Health Net			$	4,644.70
7/20/2007		38838	Franchise Tax Board			$	38.25
7/20/2007		38839	Franchise Tax Board			$	38.25
7/20/2007		38840	Franchise Tax Board			$	38.25
7/20/2007			Wire Transfer	$	48,000.00
7/27/2007			ADPFees			$	402.77
7/27/2007		38841	Accurate Express			$	20.70
7/27/2007		38842	AT&T			$	78.59
7/27/2007		38843	New Beginnings Enterprises			$	4,661.44
7/27/2007		38844	Stutman Treister & Glatt			$	12,215.11
7/27/2007		38845	AT&T			$	315.35
7/31/2007			Control Agreement Fee					$	50.00
7/31/2007			ADPTaxes			$	6,804.95
7/31/2007		8426	Payroll			$	1,357.46
7/31/2007		8427	Payroll			$	8,785.70
7/31/2007		8428	Payroll			$	1,628.87
7/31/2007		8429	Payroll			$	2,888.18
TOTAL DISBURSEMENTS THIS PERIOD:				$	83,000.00	$	88,038.10	$	50.00		—
G.     Ending Balance (E less F)				$	1,086,977.64	$	83,804.24	$	917,798.76	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 69 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: b) Account Number:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024             1891935460
I:	Other monies on hand:
The Kushner Locke Company PWI account							$	731.10
Bank of Scotland — Pinocchio						936582	£	471,282.99	Pound Sterling	Time Deposit
Bank of Scotland — Basil						936582	£	234,126.81	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	$	31,777.90
Denial Venture						1890-69-6501	$	238,964.96
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