EXHIBIT 99.3

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company			Page 1 of 3
Chapter 11	Statement Number:	70
Case No. LA 01-44828-SB (Administratively Consolidated with	For the Period FROM:	8/1/2007
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-	TO:	8/31/2007
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		$	10,096,659.27	$	8,992,774.19	$	939,239.28
B. Less: Total Disbursements per all Prior Statements		$	9,278,014.84	$	8,974,926.16	$	21,440.52
C. Beginning Balance		$	1,086,977.64	$	83,804.24	$	917,798.76
D. Receipts during Current Period
Description
8/3/2007	S Gold					$	5,975.00
8/3/2007	Wire Transfer			$	35,000.00
8/3/2007	Film & TV House					$	2,887.42
8/6/2007	Vision Films					$	40,756.81
8/16/2007	Compact Collections	$	9,277.88
8/16/2007	Wire Transfer			$	47,000.00
8/24/2007	Force Entertainment					$	7,978.00
8/29/2007	Wire Transfer			$	30,000.00
8/31/2007	interest	$	4,504.87
TOTAL RECEIPTS THIS PERIOD		$	13,782.75	$	112,000.00	$	57,597.23		—
E. Balance Available (C plus D)		$	1,100,760.39	$	195,804.24	$	975,395.99	$	—

           DEBTOR N POSSESSION INTERIM STATEMENT NO: 70 Page 2 of 3          

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
8/3/2007		Wire Transfer	$	35,000.00
8/3/2007		ADP Fees			$	15.00
8/10/2007		ADP Fees			$	120.94
8/10/2007	38846	Bonded Services, Inc			$	6,590.44
8/10/2007	38847	KEVIN MARINO			$	299.81
8/10/2007	38848	United States Trustee			$	250.00
8/10/2007	38849	United States Trustee			$	1,500.00
8/10/2007	38850	United States Trustee			$	250.00
8/10/2007	38851	United States Trustee			$	250.00
8/10/2007	38852	United States Trustee			$	250.00
8/10/2007	38853	United States Trustee			$	250.00
8/10/2007	38854	United States Trustee			$	250.00
8/10/2007	38855	United States Trustee			$	250.00
8/10/2007	38856	United States Trustee			$	250.00
8/14/2007		ADP Taxes			$	5,946.16
8/14/2007	8430	Payroll			$	1,357.45
8/14/2007	8431	Payroll			$	7,716.95
8/14/2007	8432	Payroll			$	1,628.86
8/14/2007	8433	Payroll			$	2,888.19
8/15/2007		Service Charge			$	212.43
8/16/2007		Wire Transfer	$	47,000.00
8/17/2007		ADP Fees			$	30.00
8/17/2007	38857	Arrowhead			$	40.19
8/17/2007	38858	Brandon & Morner-Ritt			$	11,458.58
8/17/2007	38859	Health Net			$	4,644.70
8/17/2007	38860	Stutman Treister & Glatt			$	9,180.39
8/17/2007	38861	United States Treasury			$	35.00
8/24/2007		ADP Fees			$	139.52
8/28/2007		ADP Taxes			$	6,126.94
8/28/2007	8434	Payroll			$	1,357.46
8/28/2007	8435	Payroll			$	7,941.95
8/28/2007	8436	Payroll			$	1,628.87
8/28/2007	8437	Payroll			$	2,888.19
8/29/2007		Wire Transfer	$	30,000.00
8/31/2007	38862	Accurate Express			$	17.25
8/31/2007	38863	KEREN AMINIA			$	1,214.09
8/31/2007	38864	Bowne of Los Angeles, Inc			$	608.00
8/31/2007	38865	Federal Express			$	24.57
8/31/2007	38866	KEVIN MARINO			$	160.79
8/31/2007	38867	Alice P. Neuhauser			$	299.61
8/31/2007	38868	New Beginnings Enterprises			$	4,661.44
8/31/2007	38869	Recall			$	1,049.66
8/31/2007	38870	AT&T			$	77.70
8/31/2007	38871	AT&T			$	351.55
8/31/2007		ADP Fees			$	191.68
8/31/2007		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	112,000.00	$	84,404.36	$	50.00		—
G. Ending Balance (E less F)			$	988,760.39	$	111,399.88	$	975,345.99	$	—

          DEBTOR IN POSSESSION INTERIM STATEMENT NO: 70 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	£	461,879.19	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	234,997.72	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	$	31,811.36
Denial Venture	1890-69-6501	$	239,236.92
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	12,651.13

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