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:	48
For the Period FROM:	10/1/2005
TO:	10/31/2005

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			8,116,510.86		6,248,945.89		190,966.07
B.	Less: Total Disbursements per all Prior Statements			6,447,903.55		6,201,826.34		274.00
C.	Beginning Balance			1,936,940.52		113,075.76	$	190,692.07
D.	Receipts during Current Period
	Description
	10/12/2005	Wire Transfer				50,000.00
	10/14/2005	Force Entertainment						12,480.00
	10/17/2005	Prism Leisure						14,980.00
	10/17/2005	Wire Transfer				300,000.00
	10/21/2005	GaGa Communications				1,034.00
	10/31/2005	Interest		5,652.97
	TOTAL RECEIPTS THIS PERIOD			5,652.97		351,034.00		27,460.00		—
E.	Balance Available (C plus D)			1,942,593.49		464,109.76	$	218,152.07	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 48 Page 2 of 3

F. Less: Disbursements during Current Period:

Date		Check No.	Payee/Purpose
10/6/2005		38334	Irubin Consulting		300.00
10/6/2005		38335	Bonded Services, Inc		6582.28
10/6/2005		38336	Qwest Communications		51.37
10/6/2005		38337	Houlihan Lokey Howard & Zukin		300000.00
10/7/2005			ADP Fees		103.27
10/11/2005			ADP Taxes		9398.21
10/11/2005		8231	Payroll		1213.46
10/11/2005		8232	Payroll		12032.39
10/11/2005		8233	Payroll		1419.17
10/11/2005		8234	Payroll		2510.53
10/12/2005			Wire Transfer	50,000.00
10/14/2005			ADP Fees		20.00
10/17/2005			Wire Transfer	300,000.00
10/17/2005		38338	New Beginnings Enterprises		3972.10
10/17/2005		38339	Health Net		3239.13
10/17/2005		38340	Blue Shield of California		373.00
10/17/2005		38341	Point 360		296.00
10/17/2005		38342	Accurate Express		77.40
10/17/2005		38343	Digital Post Services		162.38
10/17/2005		38344	Arrowhead		38.99
10/17/2005		38345	Recall		933.39
10/17/2005		38347	Brandon & Morner-Ritt		17095.70
10/18/2005			Service Charge		153.15
10/20/2005		38349	Federal Express		262.64
10/20/2005		38350	Alice P. Neuhauser		371.82
10/21/2005			ADP Fees		270.27
10/25/2005		8235	Payroll		1213.45
10/25/2005		8236	Payroll		12174.79
10/25/2005		8237	Payroll		1419.18
10/25/2005		8238	Payroll		2510.53
10/25/2005			ADP Taxes		9522.11
10/28/2005			ADP Fees		52.00
10/31/2005			Control Agreement Fee				50.00
	TOTAL DISBURSEMENTS THIS PERIOD:			350,000.00	387,768.71		50.00		—
G.	Ending Balance (E less F)			1,592,593.49	76,341.05	$	218,102.07	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 48 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	681,317.83	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	219,417.06	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	16,890.04
BLT Venture	16-524173-1101	330.45
KL MDP Sensation	60-066-930	17,659.61
KL\7 Venture	1890-69-6360	20,850.71
Denial Venture	1890-69-6501	76,395.62
Cracker LLC	1891-04-1665	732.79
Swing	323-518095	6,957.50

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