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:	53
For the Period FROM:	3/1/2006
TO:	3/31/2006

			Collateral		Concentration			City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)			Account		Account			Collection Account
Balance before Statement #1			$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements			$	8,835,669.72	$	6,996,979.89		$	482,632.52
B. Less: Total Disbursements per all Prior Statements			$	7,194,903.55	$	6,990,892.77		$	5,992.48
C. Beginning Balance			$	1,909,099.38	$	72,043.33		$	476,640.04
D. Receipts during Current Period
Description
	3/2/2006	Wire Transfer			$	45,000.00
	3/3/2006	Sting Music						$	12,478.00
	3/6/2006	Court TV			$	15,000.00
	3/10/2006	Zolfo Cooper	$	4,318.30
	3/10/2006	Court TV (Kushner-Locke)	$	3,750.00	$	(3,750.00	)
	3/15/2006	Wire Transfer			$	35,000.00
	3/30/2006	Wire Transfer			$	40,000.00
	3/31/2006	interest	$	7,128.47
		TOTAL RECEIPTS THIS PERIOD	$	15,196.77	$	131,250.00		$	12,478.00		—
E. Balance Available (C plus D)			$	1,924,296.15	$	203,293.33		$	489,118.04	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 53 Page 2 of 3

F. Less: Disbursements during Current Period:

Date		Check No.		Payee/Purpose
	3/2/2006			Wire Transfer	$	45,000.00
	3/2/2006		38449	Alice P.Neuhauser			$	381.81
	3/2/2006		38450	Bowne of Los Angeles, Inc			$	566.00
	3/2/2006		38451	USI of Southern California			$	5,000.00
	3/2/2006		38452	SBC			$	82.62
	3/2/2006		38453	SBC			$	362.98
	3/2/2006		38455	Clumeck,Stern,Schenkelburg& Getzo			$	6,365.75
	3/3/2006			ADP Fees			$	167.00
	3/6/2006		38456	Qwest Communications			$	50.30
	3/6/2006		38457	Bonded Services, Inc			$	6,582.81
	3/6/2006		38458	Bowne of Los Angeles, Inc			$	466.40
	3/6/2006		38459	Vision Films			$	11,250.00
	3/6/2006		38461	KEREN AMINIA			$	190.00
	3/10/2006			ADP Fees			$	106.17
	3/14/2006		8277	Payroll			$	1,319.77
	3/14/2006		8278	Payroll			$	10,049.84
	3/14/2006		8279	Payroll			$	1,544.04
	3/14/2006		8280	Payroll			$	2,744.04
	3/14/2006			ADP Taxes			$	11,269.81
	3/15/2006			Service Charge			$	139.02
	3/15/2006			Wire Transfer	$	35,000.00
	3/17/2006			ADP Fees			$	20.00
	3/17/2006		38462	Accurate Express			$	18.00
	3/17/2006		38463	Recall			$	1,239.73
	3/17/2006		38464	New Wave Entertainment			$	150.40
	3/17/2006		38465	Blue Shield of California			$	373.00
	3/22/2006		38466	KEREN AMINIA			$	360.83
	3/22/2006		38467	KEVIN MARINO			$	261.01
	3/22/2006		38468	Health Net			$	4,187.18
	3/22/2006		38469	Arrowhead			$	24.79
	3/24/2006			ADP Fees			$	273.17
	3/28/2006			ADP Taxes			$	10,778.97
	3/28/2006		8281	Payroll			$	1,319.76
	3/28/2006		8282	Payroll			$	10,291.37
	3/28/2006		8283	Payroll			$	1,544.03
	3/28/2006		8284	Payroll			$	2,744.04
	3/30/2006		38470	SBC			$	82.49
	3/30/2006		38471	SBC			$	340.24
	3/30/2006		38472	KEVIN MARINO			$	210.94
	3/30/2006		38473	New Beginnings Enterprises			$	4,052.10
	3/30/2006			Wire Transfer	$	40,000.00
	3/31/2006			Control Agreement					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:					$	120,000.00	$	96,910.41	$	50.00		—
G. Ending Balance (E less F)					$	1,804,296.15	$	106,382.92	$	489,068.04	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 53 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	£	449,354.22	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	222,619.06	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	$	—
KL\7 Venture	1890-69-6360	$	29,999.80
Denial Venture	1890-69-6501	$	76,710.74
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	8,097.50

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