Ex 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:	68
For the Period FROM:	6/1/2007
TO:	6/30/2007

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		$	9,951,385.39	$	8,824,774.19	$	924,611.28
B. Less: Total Disbursements per all Prior Statements		$	9,110,014.84	$	8,786,432.85	$	21,340.52
C. Beginning Balance		$	1,109,703.76	$	104,297.55	$	903,270.76
D. Receipts during Current Period
Description
6/7/2007	Wire Transfer
6/20/2007	Wire Transfer
6/30/2007	interest
TOTAL RECEIPTS THIS PERIOD		$	4,479.70	$	85,000.00	$	—		—
E. Balance Available (C plus D)		$	1,114,183.46	$	189,297.55	$	903,270.76	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 68 Page 2 of 3

     F. Less: Disbursements during Current Period:

Date	Check No.		Payee/Purpose
6/1/2007			ADP Fees			$	178.64
6/5/2007			ADP Taxes			$	3,417.98
6/5/2007		8410	Payroll			$	1,357.46
6/5/2007		8411	Payroll			$	4,158.11
6/5/2007		8412	Payroll			$	1,628.87
6/5/2007		8413	Payroll			$	2,888.19
6/7/2007			Wire Transfer	$	35,000.00
6/8/2007		38808	Accurate Express			$	13.23
6/8/2007		38810	Brandon & Morner-Ritt			$	21,694.66
6/8/2007		38811	FilmPool			$	225.00
6/8/2007		38812	Secretary of State			$	25.00
6/13/2007		38813	Franchise Tax Board			$	6,400.00
6/13/2007		38814	KEVIN MARINO			$	108.09
6/13/2007		38815	Recall			$	989.14
6/13/2007		38816	Franchise Tax Board			$	800.00
6/13/2007		38817	Franchise Tax Board			$	800.00
6/13/2007		38818	Franchise Tax Board			$	800.00
6/15/2007			ADP Fees			$	132.69
6/15/2007			Service Charge			$	167.27
6/19/2007		38819	Arrowhead			$	36.44
6/19/2007		38820	Alice P. Neuhauser			$	365.84
6/19/2007		38821	New Beginnings Enterprises			$	440.00
6/19/2007		38822	Stutman Treister & Glatt			$	27,926.72
6/19/2007		8414	Payroll			$	1,357.45
6/19/2007		8415	Payroll			$	10,710.74
6/19/2007		8416	Payroll			$	1,628.86
6/19/2007		8417	Payroll			$	2,888.19
6/19/2007			ADP Taxes			$	8,430.67
6/20/2007			Wire Transfer	$	50,000.00
6/29/2007		38823	AT&T			$	78.76
6/29/2007		38824	KEVIN MARINO			$	144.60
6/29/2007		38825	Secretary of State			$	25.00
6/29/2007		38826	AT&T			$	321.28
6/29/2007		38827	Secretary of State			$	25.00
6/29/2007			ADP Fees			$	291.33
6/30/2007			Control Agreement Fee					$	50.00
TOTAL DISBURSEMENTS THIS PERIOD:				$	85,000.00	$	100,455.21	$	50.00		—
G. Ending Balance (E less F)				$	1,029,183.46	$	88,842.34	$	903,220.76	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 68 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	£	469,487.36	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	233,234.76	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	$	31,744.47
Denial Venture	1890-69-6501	$	238,693.30
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/  

Debtor in Possession