exv99w1

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:

Chapter 11

For the Period FROM:

1/1/2006

Case No. LA 01-44828-SB (Administratively Consolidated with

TO:

1/31/2006

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	$	8,158,093.12	$	6,816,979.89	$	428,891.52

B. Less: Total Disbursements per all Prior Statements	$	7,014,903.55	$	6,781,167.98	$	424.00


C. Beginning Balance	$	1,411,522.78	$	101,768.12	$	428,467.52

D. Receipts during Current Period
Description
1/4/2006 Wire Transfer			$	50,000.00
1/9/2006 USI Insurance	$	149.00
1/9/2006 Lifetime	$	111,666.67
1/10/2006 IMC Vision					$	8,390.00
1/12/2006 Teleprog					$	18,073.00
1/19/2006 Wire Transfer			$	35,000.00
1/23/2006 Court TV	$	92,500.00
1/26/2006 Herel	$	15,000.00
1/31/2006 interest	$	5,365.32

TOTAL RECEIPTS THIS PERIOD	$	224,680.99	$	85,000.00	$	26,463.00	—

E. Balance Available (C plus D)	$	1,636,203.77	$	186,768.12	$	454,930.52	$—



DEBTOR IN POSSESSION INTERIM STATEMENT NO: 51									Page 2 of 3

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose

1/3/2006		1002	Vision Films						$	4,753.14
1/3/2006		38395	Digital Post Services			$	403.39
1/3/2006		38396	Health Net			$	4,187.18
1/3/2006		38397	SBC			$	82.68
1/3/2006		38398	SBC			$	333.94
1/3/2006		38399	Accurate Express			$	66.40
1/3/2006		38401	Manny Barrios			$	157.10
1/4/2006			Wire Transfer	$	50,000.00
1/5/2006		38402	Accurate Express			$	18.00
1/5/2006		38403	New Wave Entertainment			$	82.50
1/5/2006		38404	Qwest Communications			$	54.29
1/5/2006		38405	Houlihan Lokey Howard & Zukin			$	50,000.00
1/5/2006		38406	KEVIN MARINO			$	155.38
1/5/2006		38407	KEREN AMINIA			$	76.55
1/17/2006			ADP Taxes			$	9,842.74
1/17/2006		8261	Payroll			$	1,319.76
1/17/2006		8262	Payroll			$	8,158.47
1/17/2006		8263	Payroll			$	1,544.03
1/17/2006		8264	Payroll			$	2,744.04
1/18/2006			Service Charge			$	180.38
1/19/2006			Wire Transfer	$	35,000.00
1/20/2006			ADP Fees			$	197.00
1/20/2006		38408	KEREN AMINIA			$	619.54
1/20/2006		38409	Digital Post Services			$	376.33
1/20/2006		38411	Manny Barrios			$	242.00
1/20/2006		38412	Blue Shield of California			$	373.00
1/20/2006		38413	Still Photo Lab, Inc			$	165.60
1/20/2006		38414	Recall			$	1,079.66
1/20/2006		38415	USI of Southern California			$	3,320.00
1/27/2006			ADP Fees			$	106.17
1/27/2006		38416	Bonded Services, Inc			$	6,582.81
1/27/2006		38417	Health Net			$	4,187.18
1/27/2006		38418	Federal Express			$	92.53
1/27/2006		38419	New Beginnings Enterprises			$	3,972.10
1/27/2006		38420	Accurate Express			$	70.50
1/27/2006		38389	ATI Solutions, Inc. VOIDED — Lost in Mail			$	(1,810.64	)
1/27/2006		38421	ATI Solutions, Inc. Reissue			$	1,810.64
1/27/2006		38422	SBC			$	82.62
1/27/2006		38423	SBC			$	323.57
1/31/2006			Control Agreement Fee						$	50.00
1/31/2006		8265	Payroll			$	1,319.75
1/31/2006		8266	Payroll			$	9,828.36
1/31/2006		8267	Payroll			$	1,544.02
1/31/2006		8268	Payroll			$	2,744.02
1/31/2006			ADP Taxes			$	11,484.29



TOTAL DISBURSEMENTS THIS PERIOD:				$	85,000.00	$	128,117.88		$	4,803.14	—

G. Ending Balance (E less F)				$	1,551,203.77	$	58,650.24		$	450,127.38	$—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 51 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	$	446,917.93	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	$	221,356.52	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	$	—
KL\7 Venture	1890-69-6360	$	20,896.93
Denial Venture	1890-69-6501	$	76,514.24
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 P. NEUHAUSER

		Debtor in Possession