Exhibit 99.2

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	49	Page 1 of 2
Chapter 11	For the Period FROM:	11/1/2005
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	11/30/2005
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	38,064
	Salaries and Wages — Other Employees	18,423
	Total Salaries and Wages			56,487
	Employee Benefits and Pensions
	Employer Payroll Taxes/Fees	2,372
	Other Taxes
	Total Taxes			2,372
	Rent and Lease Expense (including parking)
	Distribution/Delivery Expenses	1,034
	Interest Expense
	Insurance
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)	489
	Depreciation and Amortization
	Business Equipment Leases
	Business Expense reimbursement	1,227
	Storage Expense	8,079
	Supplies, Office Expenses, Photocopies, etc.	16
	Bad Debts
	Miscellaneous Operating Expenses	1,160
	Total Operating Expenses			70,864
	Net Gain/Loss from Business Operations					(70,864	)
	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)			11,500
	Total Non-Operating Expenses					11,500
	NET INCOME/(LOSS) FOR PERIOD				$	(82,364	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 49 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		—		1,892,257
TOTAL		—		1,892,257

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		1/14/2006		1/14/2006
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2006		2/14/2006
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2006		3/3/2006

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: $ 154,491.54
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.

Debtor in Possession