8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report: March 20, 2008

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	95-4079057
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

280 South Beverly Drive, Suite 205, Beverly Hills, California	90212
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (310) 275-7505

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

EXHIBIT 99.2

EXHIBIT 99.3

EXHIBIT 99.4

EXHIBIT 99.5

EXHIBIT 99.6

EXHIBIT 99.7

EXHIBIT 99.8

Item 8.01. Other Events.

     As previously disclosed in its Current Report on Form 8-K filed on November 21, 2001, and the Registrant’s Form 12b-25 filed on January 2, 2002, The Kushner-Locke Company, a California corporation (the “Registrant”), and certain of its wholly-owned subsidiaries (collectively, the “Debtors”), filed on November 21, 2001, voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. The Debtors’ Chapter 11 cases are currently pending before the United States Bankruptcy Court for the Central District of California, Los Angeles Division (the “Bankruptcy Court”) and are being jointly administered under Case No. LA-01-44828-SB.

     The Registrant’s unaudited monthly operating reports and monthly interim statements required by the Bankruptcy Court for October 2007, November 2007, December 2007 and January 2008 are provided in this Current Report on Form 8-K. The operating reports and interim statements have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS AND THE INTERIM STATEMENTS CONTAIN FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT HAVE NOT BEEN AUDITED OR REVIEWED BY INDEPENDENT ACCOUNTANTS, ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND MAY BE SUBJECT TO FUTURE RECONCILIATION OR ADJUSTMENTS. THE OPERATING REPORTS AND INTERIM STATEMENTS MAY ALSO CONTAIN INFORMATION FOR PERIODS THAT ARE SHORTER OR OTHERWISE DIFFERENT FROM THOSE CONTAINED IN THE REGISTRANT’S REPORTS REQUIRED TO BE MADE PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

     THE REGISTRANT MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER AS TO ANY OF THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. THE OPERATING REPORTS AND INTERIM STATEMENTS ARE BEING PROVIDED SOLELY FOR INFORMATION PURPOSES; THEY WERE NOT PREPARED FOR THE PURPOSE OF PROVIDING THE BASIS FOR AN INVESTMENT DECISION RELATING TO THE SECURITIES OF THE REGISTRANT.

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

     Not Applicable.

(b) Pro Forma Financial Information.

     Not Applicable.

(c) Exhibits.

Exhibit 99.1. Monthly Interim Statement of The Kushner-Locke Company (the “Registrant”) for the calendar month from October 1, 2007 to October 31, 2007.

Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from October 1, 2007 to October 31, 2007.

Exhibit 99.3. Monthly Interim Statement of the Registrant for the calendar month from November 1, 2007 to November 30, 2007.

Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from November 1, 2007 to November 30, 2007.

Exhibit 99.5. Monthly Interim Statement of the Registrant for the calendar month from December 1, 2007 to December 31, 2007.

Exhibit 99.6. Monthly Operating Report of the Registrant for the calendar month from December 1, 2007 to December 31, 2007.

Exhibit 99.7. Monthly Interim Statement of the Registrant for the calendar month from January 1, 2008 to January 31, 2008.

Exhibit 99.8. Monthly Operating Report of the Registrant for the calendar month from January 1, 2008 to January 31, 2008.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: March 20, 2008	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

Exhibit 99.1

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company			Page 1 of 3
	Statement Number:	72
Chapter 11	For the Period FROM:	10/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	10/31/2007
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		$	10,616,944.31	$	9,184,774.19	$	1,017,789.51
B. Less: Total Disbursements per all Prior Statements		$	9,632,663.18	$	9,145,961.82	$	21,540.52
C. Beginning Balance		$	1,252,614.34	$	104,768.58	$	996,248.99
D. Receipts during Current Period
Description
10/04/2007	S Gold (Blackhorse)					$	5,975.00
10/04/2007	Non-Stop - Materials			$	2,275.00
10/11/2007	Wire Transfer - KL			$	25,000.00
10/24/2007	Wire Transfer - KL			$	35,000.00
10/31/2007	interest	$	5,289.88
TOTAL RECEIPTS THIS PERIOD		$	5,289.88	$	62,275.00	$	5,975.00		—
E. Balance Available (C plus D)		$	1,257,904.22	$	167,043.58	$	1,002,223.99	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 72 Page 2 of 3     

F. Less: Disbursements during Current Period:

Date	Check No.	Payee/Purpose
10/05/2007	1000	Point 360			$	1,450.00
10/05/2007	Wire	ADP Fees			$	120.94
10/09/2007	Wire	ADP Taxes			$	5,810.53
10/09/2007	8446	Payroll			$	1,357.46
10/09/2007	8447	Payroll			$	7,548.20
10/09/2007	8448	Payroll			$	1,628.87
10/09/2007	8449	Payroll			$	2,888.20
10/11/2007		Wire Transfer - KL	$	25,000.00
10/12/2007	Wire	ADP Fees			$	20.00
10/12/2007	1001	Kevin Marino			$	347.64
10/12/2007	1002	Accurate Express			$	110.60
10/12/2007	1003	Federal Express			$	70.89
10/12/2007	1004	ITE Solutions			$	460.00
10/12/2007	1005	New Wave Entertainment			$	42.00
10/12/2007	1006	Varien			$	318.00
10/16/2007		Service Charge			$	175.42
10/19/2007	Wire	ADP Fees			$	120.94
10/19/2007	1007	Alice Neuhauser			$	2,000.00
10/19/2007	1008	Arrowhead			$	50.42
10/19/2007	1009	Blue Shield			$	387.00
10/19/2007	1010	Federal Express			$	14.26
10/19/2007	1011	Health Net			$	4,644.70
10/19/2007	1012	Keren Aminia			$	2,000.00
10/19/2007	1013	Kevin Marino			$	1,349.64
10/19/2007	1014	Recall			$	951.50
10/19/2007	1015	Tanya Miller			$	1,966.46
10/22/2007	Wire	ADP Taxes			$	4,861.37
10/23/2007	8450	Payroll			$	1,357.45
10/23/2007	8451	Payroll			$	6,366.95
10/23/2007	8452	Payroll			$	1,628.86
10/23/2007	8453	Payroll			$	2,888.18
10/24/2007	Wire	Wire Transfer - KL	$	35,000.00
10/26/2007	Wire	ADP Fees			$	281.83
10/26/2007	1016	Alice Neuhauser			$	418.28
10/26/2007	1017	AT & T			$	78.22
10/26/2007	1018	Federal Express			$	40.76
10/26/2007	1019	New Beginnings Enterprises			$	4,661.44
10/26/2007	1020	AT & T			$	331.90
10/31/2007		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	60,000.00	$	58,748.91	$	50.00		—
G. Ending Balance (E less F)			$	1,197,904.22	$	108,294.67	$	1,002,173.99	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 72 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
Bank of Scotland — Pinocchio	936582	£	212,044.57	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	236,406.42	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	$	31,196.28
Denial Venture	1890-69-6501	$	239,091.85
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

EX-99.2

Exhibit 99.2

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company			Page 1 of 2
	Report Number:	72
Chapter 11	For the Period FROM:	10/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	10/31/2007
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)

1 Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	19,900
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			34,900
Employee Benefits and Pensions			12,348
Employer Payroll Taxes/Fees	1,980
Other Taxes
Total Taxes			1,980
Rent and Lease Expense (including parking)	4,661
Distribution/Delivery Expenses	1,729
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	1,188
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	766
Storage Expense	952
Supplies, Office Expenses, Photocopies, etc.	50
Bad Debts
Miscellaneous Operating Expenses	225
Total Operating Expenses			58,799
Net Gain/Loss from Business Operations					(58,799	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					—
NET INCOME/(LOSS) FOR PERIOD				$	(58,799	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 72 Page 2 of 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		3,250		1,275,033
TOTAL		3,250		1,275,033

3 Statement of Status of Payments to Secured Creditors and Lessors:

     No payments to Secured Creditors or Lessors were paid or payable during the reporting period.

4 Tax Liability

     No tax payments were paid or payable during the reporting period other than payroll taxes shown above.

5 Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2008		1/14/2008
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2008		2/14/2008
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2008		3/3/2008

6 Questions:

A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

oYes	Explain:
þ No

B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?

o Yes	Explain:
þ No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

Total unpaid post-petition Professional Fees during the reporting period: $ 75,906.05

8 Narrative Report of Significant Events and Events out of the Ordinary Course of Business:

     None.

9 Quarterly Fees:

     Paid

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

EX-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:	73
Chapter 11	For the Period FROM:	11/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2007
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		$	10,622,234.19	$	9,247,049.19	$	1,023,764.51
B. Less: Total Disbursements per all Prior Statements		$	9,692,663.18	$	9,204,710.73	$	21,590.52
C. Beginning Balance		$	1,197,904.22	$	108,294.67	$	1,002,173.99
D. Receipts during Current Period
Description
11/05/2007	Blackhorse (S Gold)					$	5,975.00
11/07/2007	Wire Transfer			$	45,000.00
11/09/2007	Vision Films					$	77,087.31
11/13/2007	Daro Films	$	93,329.96
11/13/2007	Starz	$	23.94
11/20/2007	Compact Collections	$	47,035.72
11/21/2007	Wire Transfer			$	45,000.00
11/30/2007	interest	$	4,457.30
TOTAL RECEIPTS THIS PERIOD		$	144,846.92	$	90,000.00	$	83,062.31		—
E. Balance Available (C plus D)		$	1,342,751.14	$	198,294.67	$	1,085,236.30	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 73 Page 2 of 3     

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
11/2/2007		ADP Fees			$	135.94
11/06/2007		ADP Taxes			$	5,900.94
11/06/2007	8454	Payroll			$	1,357.46
11/06/2007	8455	Payroll			$	7,660.70
11/06/2007	8456	Payroll			$	1,628.87
11/06/2007	8457	Payroll			$	2,888.19
11/07/2007		Wire Transfer	$	45,000.00
11/09/2007	1021	Bowne of Los Angeles			$	537.00
11/09/2007	1022	Bonded Services			$	6,574.37
11/09/2007	1023	Keren Aminia			$	487.93
11/09/2007	1024	Brandon & Morner-Ritt			$	12,173.97
11/09/2007	1025	United States Trustee			$	250.00
11/09/2007	1026	United States Trustee			$	250.00
11/09/2007	1027	United States Trustee			$	250.00
11/09/2007	1028	United States Trustee			$	250.00
11/09/2007	1029	United States Trustee			$	250.00
11/09/2007	1030	United States Trustee			$	3,750.00
11/09/2007	1031	United States Trustee			$	250.00
11/09/2007	1032	United States Trustee			$	250.00
11/09/2007	1033	United States Trustee			$	250.00
11/16/2007		ADP Fees			$	159.52
11/16/2007	1034	Clumeck Stern Schenkelberg & Getzoff			$	3,250.00
11/16/2007	1035	Arrowhead			$	33.20
11/16/2007	1036	Health Net			$	4,644.70
11/16/2007	1037	ITE Solutions			$	920.00
11/16/2007	1038	Recall			$	918.39
11/16/2007		Service Cahrge			$	195.96
11/20/2007		ADP Taxes			$	6,349.06
11/20/2007	1039	Blue Shield			$	387.00
11/20/2007	1040	Kevin Marino			$	207.38
11/20/2007	8458	Payroll			$	1,357.45
11/20/2007	8459	Payroll			$	8,223.20
11/20/2007	8460	Payroll			$	1,628.86
11/20/2007	8461	Payroll			$	2,892.09
11/21/2007		Wire Transfer	$	45,000.00
11/28/2007		ADP Taxes			$	4,687.24
11/28/2007	1041	New Beginnings Enterprises			$	4,661.44
11/28/2007	1042	Point 360			$	104.00
11/28/2007	1043	AT & T			$	382.52
11/28/2007	1044	AT & T			$	83.12
11/28/2007	1045	Bonded Services			$	6,381.80
11/28/2007	8462	Payroll			$	3,377.79
11/28/2007	8463	Payroll			$	3,965.36
11/28/2007	8464	Payroll			$	2,289.84
11/28/2007	8465	Payroll			$	4,208.52
11/29/2007	1046	Bonded Services			$	6,381.80
11/29/2007	1047	Keren Aminia			$	500.00
11/29/2007	1048	New Beginnings Enterprises			$	6,661.44
11/29/2007	1049	Keren Aminia			$	428.40
11/30/2007	1050	Kevin Marino			$	661.92
11/30/2007		ADP Fees			$	312.62
11/30/2007		Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	90,000.00	$	121,349.99	$	50.00		—
G. Ending Balance (E less F)			$	1,252,751.14	$	76,944.68	$	1,085,186.30	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 73 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
Bank of Scotland — Pinocchio	936582	£	212,811.43	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	237,261.36	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	$	31,228.08
Denial Venture	1890-69-6501	$	239,355.18
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

EX-99.4

Exhibit 99.4

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company			Page 1 of 2
	Report Number:	73
Chapter 11	For the Period FROM:	11/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2007
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)

1 Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	28,400
Salaries and Wages — Other Employees	27,500
Total Salaries and Wages			55,900
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	3,124
Other Taxes
Total Taxes			3,124
Rent and Lease Expense (including parking)	11,323
Distribution/Delivery Expenses	104
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	1,386
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	2,286
Storage Expense	20,256
Supplies, Office Expenses, Photocopies, etc.	33
Bad Debts
Miscellaneous Operating Expenses	783
Total Operating Expenses			100,226
Net Gain/Loss from Business Operations					(100,226	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			15,424
Other Non-Operating Expenses (Board/Trustee fees)			5,750
Total Non-Operating Expenses					21,174
NET INCOME/(LOSS) FOR PERIOD				$	(121,400	)

     DEBTOR IN POSSESSION OPERATING REPORT NO: 73 Page 2 of 2     

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		3,168		1,269,033
TOTAL		3,168		1,269,033

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy	Premium Paid
	Agent Name	Coverage		Expiration Date	Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000	1/14/2008	1/14/2008
Commercial Property (RENEWED)	St. Paul		2,000,000	2/14/2008	2/14/2008
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000	3/3/2008	3/3/2008

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes            Explain:
	þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes            Explain:
	þ No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

Total unpaid post-petition Professional Fees during the reporting period: $92,633.89

8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

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

EX-99.5

Exhibit 99.5

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION INTERIM STATEMENT
The Kushner-Locke Company			Page 1 of 3
	Statement Number:	74
Chapter 11	For the Period FROM:	12/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	12/31/2007
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		$	10,767,081.11	$	9,337,049.19	$	1,106,826.82
B. Less: Total Disbursements per all Prior Statements		$	9,782,663.18	$	9,326,060.72	$	21,640.52
C. Beginning Balance		$	1,252,751.14	$	76,944.68	$	1,085,186.30
D. Receipts during Current Period
Description
12/06/2007	S Gold (Blackhorse)					$	5,975.00
12/06/2007	Wire Transfer			$	45,000.00
12/10/2007	AB Svensk	$	635.83
12/19/2007	Starz	$	9.58
12/19/2007	Second Image	$	15.00
12/19/2007	State of California	$	17,701.80
12/19/2007	Wire Transfer			$	75,000.00
12/24/2007	German Tax Board	$	91,068.63
12/31/2007	interest	$	4,401.87
TOTAL RECEIPTS THIS PERIOD		$	113,832.71	$	120,000.00	$	5,975.00		—
E. Balance Available (C plus D)		$	1,366,583.85	$	196,944.68	$	1,091,161.30	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 74 Page 2 of 3     

F. Less: Disbursements during Current Period:
Date	Check No.	Payee/Purpose
12/04/2007	8466	Payroll			$	1,357.47
12/04/2007	8467	Payroll			$	6,423.20
12/04/2007	8468	Payroll			$	1,628.88
12/04/2007	8469	Payroll			$	2,910.11
12/04/2007	Wire	Payroll Tax			$	2,177.30
12/04/2007	Wire	Payroll Tax			$	2,707.30
12/06/2007	Wire	Wire Transfer	$	45,000.00
12/07/2007	1051	Accurate Express			$	20.70
12/07/2007	1052	Bowne of Los Angeles			$	699.00
12/07/2007	1053	Point 360			$	1,440.00
12/07/2007	1054	Stutman Treister & Glatt			$	8,602.07
12/07/2007	Wire	ADP			$	120.94
12/14/2007	1055	Franchise Tax Board			$	6,400.00
12/14/2007	1056	ITE Solutions			$	575.00
12/14/2007	1057	Franchise Tax Board			$	800.00
12/14/2007	1058	Franchise Tax Board			$	800.00
12/14/2007	1059	Franchise Tax Board			$	800.00
12/14/2007	1060	Franchise Tax Board			$	26.00
12/14/2007	1061	Franchise Tax Board			$	26.00
12/14/2007	Wire	ADP			$	120.94
12/17/2007	wire	Comerica Bank			$	220.83
12/18/2007	8470	Payroll			$	1,357.45
12/18/2007	8471	Payroll			$	8,054.45
12/18/2007	8472	Payroll			$	1,628.86
12/18/2007	8473	Payroll			$	2,910.11
12/18/2007	wire	Payroll Tax			$	4,018.10
12/18/2007	Wire	Payroll Tax			$	2,177.34
12/19/2007	Wire	Wire Transfer	$	75,000.00
12/20/2007	1062	Alice Neuhauser			$	346.70
12/20/2007	1063	Arrowhead			$	19.22
12/20/2007	1064	Brandon & Morner-Ritt			$	3,674.17
12/20/2007	1065	Clumeck Stern Schenkelberg & Getzoff			$	3,168.00
12/20/2007	1066	FilmPool Inc.			$	75.00
12/20/2007	1067	Recall			$	918.39
12/20/2007	1068	USI			$	2,230.00
12/20/2007	1069	Blue Shield			$	387.00
12/20/2007	1070	Health Net			$	4,644.70
12/20/2007	8474	Payroll			$	1,357.46
12/20/2007	8475	Payroll			$	5,830.79
12/20/2007	8476	Payroll			$	1,628.87
12/20/2007	8477	Payroll			$	3,065.12
12/20/2007	Wire	Payroll Tax			$	2,285.21
12/20/2007	Wire	Payroll Tax			$	1,867.30
12/21/2007	1071	Accurate Express			$	39.10
12/21/2007	1072	Keren Aminia			$	923.88
12/28/2007	Wire	ADP			$	433.56
12/31/2007	Wire	Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	120,000.00	$	90,896.52	$	50.00		—
G. Ending Balance (E less F)			$	1,246,583.85	$	106,048.16	$	1,091,111.30	$	—

     DEBTOR IN POSSESSION INTERIM STATEMENT NO: 74 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	£	213,577.55	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	238,115.51	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	$	31,254.28
Denial Venture		1890-69-6501	$	239,600.05
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

EX-99.6

Exhibit 99.6

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company			Page 1 of 2
	Report Number:	74
Chapter 11	For the Period FROM:	12/1/2007
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	12/31/2007
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)

1 Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	28,900
Salaries and Wages — Other Employees	22,500
Total Salaries and Wages			51,400
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	2,661
Other Taxes	8,852
Total Taxes			11,513
Rent and Lease Expense (including parking)	—
Distribution/Delivery Expenses	1,575
Interest Expense
Insurance	2,230
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	575
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,271
Storage Expense	918
Supplies, Office Expenses, Photocopies, etc.	19
Bad Debts
Miscellaneous Operating Expenses	970
Total Operating Expenses			75,502
Net Gain/Loss from Business Operations					(75,502	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			15,444
Other Non-Operating Expenses (Board/Trustee fees)			—
Total Non-Operating Expenses					15,444
NET INCOME/(LOSS) FOR PERIOD				$	(90,947	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 74 Page 2 of 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		600		1,327,333
TOTAL		600		1,327,333

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2009		1/14/2009
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2008		2/14/2008
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2008		3/3/2008

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes      Explain:
	þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes      Explain:
	þ No

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:            $ 93,638.23
8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

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

EX-99.7

Exhibit 99.7

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:	75
For the Period FROM:	1/1/2008
TO:	1/31/2008

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		$	10,880,913.82	$	9,457,049.19	$	1,112,801.82
B.  Less: Total Disbursements per all Prior Statements		$	9,902,663.18	$	9,416,957.24	$	21,690.52
C.  Beginning Balance		$	1,246,583.85	$	106,048.16	$	1,091,111.30
D.  Receipts during Current Period
Description
01/08/2008	Blackhorse (S Gold)					$	5,975.00
01/16/2008	Wire Transfer			$	60,000.00
01/30/2008	Wire Transfer			$	35,000.00
01/30/2008	Force Entertainment					$	1,118.66
01/31/2008	interest	$	3,951.65
TOTAL RECEIPTS THIS PERIOD		$	3,951.65	$	95,000.00	$	7,093.66		—
E.  Balance Available (C plus D)		$	1,250,535.50	$	201,048.16	$	1,098,204.96	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 75 Page 2 of 3

F.  Less: Disbursements during Current Period:

Date	Check No.	Payee/Purpose
01/02/2008	Wire	Morgan Lewis & Bockius LLP	$	39,026.21
01/04/2008	1073	AT & T			$	79.65
01/04/2008	1074	Health Net			$	263.15
01/04/2008	1075	AT & T			$	357.70
01/15/2008	Wire	Payroll Tax			$	8,757.80
01/15/2008	8478	Payroll			$	1,358.59
01/15/2008	8479	Payroll			$	7,255.02
01/15/2008	8480	Payroll			$	1,634.60
01/15/2008	8481	Payroll			$	2,893.10
01/16/2008	WIre	Wire Transfer	$	60,000.00
01/17/2008	Wire	Service Charge			$	204.66
01/18/2008	Wire	ADP Fees			$	30.00
01/18/2008	1086	Blue Shield			$	387.00
01/18/2008	1087	Bowne of Los Angeles			$	413.00
01/18/2008	1088	City Of Beverly Hills			$	513.02
01/18/2008	1089	Health Net			$	4,907.85
01/18/2008	1090	ITE Solutions			$	230.00
01/18/2008	1091	Kevin Marino			$	184.16
01/18/2008	1092	New Beginnings Enterprises			$	2,661.44
01/18/2008	1093	Secretary of State			$	25.00
01/18/2008	1094	Stutman Treister & Glatt			$	25,654.40
01/18/2008	1095	Secretary of State			$	25.00
01/18/2008	1096	Recall			$	994.45
01/18/2008	1097	Keren Aminia			$	232.34
01/22/2008	1098	Blue Shield			$	44.00
01/25/2008	Wire	ADP Fees			$	312.62
01/25/2008	1099	AT & T			$	313.85
01/25/2008	1100	AT & T			$	79.48
01/25/2008	1101	Clumeck Stern Schenkelberg & Getzoff			$	600.00
01/25/2008	1102	Franchise Tax Board			$	26.48
01/25/2008	1103	Keren Aminia			$	1,010.49
01/29/2008	Wire	Payroll Taxes			$	6,943.26
01/30/2008	8482	Payroll			$	1,358.57
01/30/2008	8483	Payroll			$	6,156.12
01/30/2008	8484	Payroll			$	1,634.58
01/30/2008	8485	Payroll			$	2,893.10
01/30/2008	Wire	Wire Transfer	$	35,000.00
01/31/2008	Wire	Control Agreement Fee						50.00
TOTAL DISBURSEMENTS THIS PERIOD:			$	134,026.21	$	80,434.48	$	50.00		—
G.  Ending Balance (E less F)			$	1,116,509.29	$	120,613.68	$	1,098,154.96	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 75 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	£	214,339.41	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	238,964.90	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	$	31,275.03
Denial Venture	1890-69-6501	$	239,798.27
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

EX-99.8

Exhibit 99.8

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company			Page 1 of 2
	Report Number:	75
Chapter 11	For the Period FROM:	1/1/2008
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	1/31/2008
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)

1 Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	21,569
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			36,569
Employee Benefits and Pensions			5,602
Employer Payroll Taxes/Fees	4,659
Other Taxes	540
Total Taxes			5,198
Rent and Lease Expense (including parking)	2,661
Distribution/Delivery Expenses
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	1,061
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	1,427
Storage Expense	994
Supplies, Office Expenses, Photocopies, etc.
Bad Debts
Miscellaneous Operating Expenses	718
Total Operating Expenses			54,230
Net Gain/Loss from Business Operations					(54,230	)
B. Not related to Business Operations Income
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			65,281
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					65,281
NET INCOME/(LOSS) FOR PERIOD				$	(119,511	)

     DEBTOR IN POSSESSION OPERATING REPORT NO: 75 Page 2 of 2     

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		—		1,321,333
TOTAL		—		1,321,333

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy	Premium Paid
	Agent Name	Coverage		Expiration Date	Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000	1/14/2009	1/14/2009
Commercial Property (RENEWED)	St. Paul		2,000,000	2/14/2009	2/14/2009
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000	3/3/2008	3/3/2008

6 Questions:

A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

o Yes	Explain:
þ No

B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?

o Yes	Explain:
þ No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

Total unpaid post-petition Professional Fees during the reporting period: $ 36,304.51

8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

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