exv99w7

Office of the United States Trustee

EXHIBIT 99.7

In re:

DEBTOR IN POSSESSION INTERIM STATEMENT

The Kushner-Locke Company

Statement Number:

Page 1 of 3

Chapter 11

For the Period FROM:

2/1/2007

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

TO:

2/28/2007

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)



		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		$	9,783,894.97	$	8,434,281.69	$	801,863.03

B. Less: Total Disbursements per all Prior Statements		$	8,720,014.84	$	8,374,670.89	$	21,140.52

C. Beginning Balance		$	1,332,213.34	$	125,567.01	$	780,722.51

D. Receipts during Current Period
Description
2/9/2007	Malvis					$	1,680.00
2/14/2007	Wire Transfer			$	45,000.00
2/14/2007	Daro Films	$	75,462.79
2/20/2007	Force Entertainment					$	7,980.00
2/20/2007	Compact Collections	$	16,666.80
2/28/2007	interest	$	5,465.87

TOTAL RECEIPTS THIS PERIOD		$	97,595.46	$	45,000.00	$	9,660.00		—

E. Balance Available (C plus D)		$	1,429,808.80	$	170,567.01	$	790,382.51	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 64		Page 2 of 3



F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
2/2/2007			ADP Fees			$	84.00
2/8/2007		38698	Accurate Express			$	23.00
2/8/2007		38699	Bonded Services, Inc			$	6,585.03
2/8/2007		38700	ITE Solutions			$	575.00
2/8/2007		38701	Register of Copyrights			$	145.00
2/8/2007		38702	Stutman Treister & Glatt			$	19,927.48
2/8/2007		38703	United States Trustee			$	250.00
2/8/2007		38704	United States Trustee			$	3,750.00
2/8/2007		38705	United States Trustee			$	$250.00
2/8/2007		38706	United States Trustee			$	250.00
2/8/2007		38707	United States Trustee			$	250.00
2/8/2007		38708	United States Trustee			$	250.00
2/8/2007		38709	United States Trustee			$	250.00
2/8/2007		38710	United States Trustee			$	250.00
2/8/2007		38711	United States Trustee			$	250.00
2/9/2007		38712	USI of Southern California			$	2,940.00
2/9/2007			ADP Fees			$	112.69
2/13/2007			ADP Taxes			$	8,462.98
2/13/2007		8377	Payroll			$	1,393.65
2/13/2007		8378	Payroll			$	7,640.85
2/13/2007		8379	Payroll			$	1,628.87
2/13/2007		8380	Payroll			$	2,888.19
2/14/2007			Wire Transfer	$	45,000.00
2/15/2007		38713	Blue Shield of California			$	387.00
2/15/2007		38714	ITE Solutions			$	365.00
2/15/2007		38715	Recall			$	1,053.28
2/15/2007			Service Charge			$	127.07
2/22/2007			ADP Fees			$	262.78
2/23/2007			ADP Fees			$	112.69
2/23/2007		38716	Arrowhead			$	26.21
2/23/2007		38717	Accurate Express			$	11.50
2/23/2007		38718	Bowne of Los Angeles, Inc			$	726.00
2/23/2007		38719	Health Net			$	4,644.70
2/23/2007		38720	Kevin Marino			$	320.58
2/23/2007		38721	Alice P.Neuhauser			$	438.61
2/23/2007		38722	New Beginnings Enterprises			$	4,174.95
2/23/2007		38723	New Wave Entertainment			$	23.60
2/27/2007			ADP Taxes			$	6,678.24
2/27/2007		8381	Payroll			$	1,393.65
2/27/2007		8382	Payroll			$	6,206.80
2/27/2007		8383	Payroll			$	1,628.87
2/27/2007		8384	Payroll			$	2,888.20
2/28/2007			Control Agreement Fee					$	50.00

TOTAL DISBURSEMENTS THIS PERIOD:				$	45,000.00	$	89,626.47	$	50.00		—

G. Ending Balance (E less F)				$	1,384,808.80	$	80,940.54	$	790,332.51	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 64		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	£	463,186.58	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	230,104.62	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	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,613.24
Denial Venture		1890-69-6501	$	162,899.14
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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