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:

5/1/2006

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

TO:

5/31/2006

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		$	8,857,312.27	$	7,228,229.89	$	547,933.52

B. Less: Total Disbursements per all Prior Statements		$	7,420,954.55	$	7,192,139.18	$	6,092.48


C. Beginning Balance		$	1,704,690.93	$	102,046.92	$	541,841.04

D. Receipts during Current Period
Description

5/3/2006	Media Film					$	2,755.00
5/8/2006	Lifetime	$	225,000.00
5/8/2006	Disney	$	1,082.00
5/12/2006	Wire Transfer — KL Chase			$	40,000.00
5/31/2006	Wire in Progress — KL Chase			$	175,000.00
5/31/2006	interest	$	8,095.14

TOTAL RECEIPTS THIS PERIOD		$	234,177.14	$	215,000.00	$	2,755.00	—

E. Balance Available (C plus D)		$	1,938,868.07	$	317,046.92	$	544,596.04	$—


	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 54							Page 2 of 3
F. Less: Disbursements during Current Period:

Date	Check No.		Payee/Purpose
5/5/2006		38498	Bonded Services, Inc			$	6,584.65
5/5/2006		38499	Accurate Express			$	15.00
5/5/2006		38500	KEVIN MARINO			$	176.85
5/5/2006		38501	Recall			$	1,244.45
5/5/2006		38502	Qwest Communications			$	47.10
5/5/2006		38503	United States Trustee			$	250.00
5/5/2006		38504	United States Trustee			$	3,750.00
5/5/2006		38505	United States Trustee			$	250.00
5/5/2006		38506	United States Trustee			$	250.00
5/5/2006		38507	United States Trustee			$	250.00
5/5/2006		38508	United States Trustee			$	250.00
5/5/2006		38509	United States Trustee			$	250.00
5/5/2006		38510	United States Trustee			$	250.00
5/5/2006		38511	United States Trustee			$	250.00
5/5/2006			ADP Fees			$	106.17
5/9/2006		8293	Payroll			$	1,319.76
5/9/2006		8294	Payroll			$	10,794.68
5/9/2006		8295	Payroll			$	1,544.03
5/9/2006		8296	Payroll			$	2,744.04
5/9/2006			ADP Taxes			$	8,463.72
5/12/2006			ADP Fees			$	20.00
5/12/2006			Wire Transfer — KL	$	40,000.00
5/15/2006			Service Charge			$	89.11
5/19/2006			ADP Fees			$	106.17
5/19/2006		38512	Point 360			$	1,440.60
5/19/2006		38513	Bowne of Los Angeles, Inc			$	783.00
5/19/2006		38514	KEREN AMINIA			$	500.00
5/19/2006		38515	Blue Shield of California			$	373.00
5/19/2006		38516	Federal Express			$	72.46
5/19/2006		38517	Accurate Express			$	53.20
5/22/2006			ADP Taxes			$	8,419.51
5/23/2006		8297	Payroll			$	1,319.75
5/23/2006		8298	Payroll			$	10,743.82
5/23/2006		8299	Payroll			$	1,544.02
5/23/2006		8300	Payroll			$	2,744.02
5/26/2006			ADP Fees			$	289.33
5/30/2006		38518	Morgan Lewis & Bockius			$	13,203.41
5/30/2006		38519	Brandon & Morner-Ritt			$	11,560.14
5/30/2006		38520	Clumeck,Stern,Schenkelburg& Getzo			$	9,961.00
5/30/2006		38521	AT&T			$	82.33
5/30/2006		38522	AT&T			$	366.28
5/30/2006		38523	Arrowhead			$	18.42
5/30/2006		38524	Tango Entertainment			$	35.94
5/30/2006		38525	Health Net			$	4,187.18
5/30/2006		38526	New Beginnings Enterprises			$	4,174.95
5/30/2006		38527	Parking Management Group			$	125.00
5/30/2006		38528	Qwest Communications			$	95.79
5/30/2006		38529	Bonded Services, Inc			$	13,172.98
5/30/2006		38530	Bowne of Los Angeles, Inc			$	947.00
5/30/2006		38531	Recall			$	1,811.00
5/30/2006		38532	Stutman Treister & Glatt			$	76,752.39
5/31/2006			Wire in Progress — KL Chase	$	175,000.00
5/31/2006			Control Agreement Fee					$	50.00


TOTAL DISBURSEMENTS THIS PERIOD:				$	215,000.00	$	203,782.25	$	50.00	—

G. Ending Balance (E less F)				$	1,723,868.07	$	113,264.67	$	544,546.04	$—


		DEBTOR IN POSSESSION INTERIM STATEMENT NO: 54		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	£	451,911.14	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	223,885.82	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	$	30,056.61
Denial Venture	1890-69-6501	$	151,936.14
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 P. Neuhauser
	Debtor in Possession