exv99w1

Exhibit 99.1

Office of the United States Trustee

In re:

DEBTOR IN POSSESSION INTERIM STATEMENT

The Kushner-Locke Company

Statement Number:

Page 1 of 3

Chapter 11

For the Period FROM:

9/1/2007

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

TO:

9/30/2007

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)



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		$	10,110,442.02	$	9,104,774.19	$	996,836.51

B. Less: Total Disbursements per all Prior Statements		$	9,390,014.84	$	9,059,330.52	$	21,490.52

C. Beginning Balance		$	988,760.39	$	111,399.88	$	975,345.99

D. Receipts during Current Period
Description
9/5/2007	Blackhorse					$	5,975.00
9/7/2007	Bank of Scotland	$	501,703.75
9/11/2007	Force Entertainment					$	14,978.00
9/17/2007	Wire Transfer			$	25,000.00
9/27/2007	Wire Transfer			$	55,000.00
9/28/2007	interest	$	4,798.54


TOTAL RECEIPTS THIS PERIOD		$	506,502.29	$	80,000.00	$	20,953.00		—

E. Balance Available (C plus D)		$	1,495,262.68	$	191,399.88	$	996,298.99	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 71						Page 2 of 3

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


9/7/2007	Wire	ADP Fees			$	241.88
9/10/2007	Wire	ADP Taxes			$	3,680.46
9/11/2007	8438	Payroll			$	1,357.46
9/11/2007	8439	Payroll			$	4,605.79
9/11/2007	8440	Payroll			$	1,628.87
9/11/2007	8441	Payroll			$	2,888.18
9/17/2007	Wire	KL Transfer- KL	$	25,000.00
9/18/2007		Service Charge			$	183.01
9/21/2007	Wire	ADP Fees			$	20.00
9/21/2007	Wire	Morgan Lewis	$	162,648.34
9/21/2007	38872	Accurate Express			$	178.48
9/21/2007	38873	KEREN AMINIA			$	134.91
9/21/2007	38874	Arrowhead			$	19.22
9/21/2007	38875	Blue Shield of California			$	387.00
9/21/2007	38876	Bonded Services, Inc			$	6,590.44
9/21/2007	38877	Health Net			$	4,644.70
9/21/2007	38878	KEVIN MARINO			$	177.21
9/21/2007	38879	New Beginnings Enterprises			$	4,661.44
9/21/2007	38880	Parking Management Group			$	125.00
9/21/2007	38881	Recall			$	918.10
9/25/2007	Wire	ADP Taxes			$	5,494.17
9/25/2007	8442	Payroll			$	1,357.45
9/25/2007	8443	Payroll			$	7,154.45
9/25/2007	8444	Payroll			$	1,628.86
9/25/2007	8445	Payroll			$	2,888.18
9/27/2007	Wire	Wire Transfer - KL	$	55,000.00
9/27/2007	38884	Brandon & Morner-Ritt			$	7,667.88
9/27/2007	38885	Clumeck,Stern,Schenkelburg& Getzo			$	13,452.44
9/27/2007	38886	Federal Express			$	91.45
9/27/2007	38887	FilmPool			$	85.00
9/27/2007	38887	FilmPool			$	85.00
9/27/2007	38888	KEVIN MARINO			$	195.17
9/27/2007	38889	Stutman Treister & Glatt			$	6,774.12
9/27/2007	38890	Bonded Services, Inc			$	6,590.44
9/27/2007	38891	AT&T			$	344.61
9/27/2007	38892	AT&T			$	78.25
9/27/2007	38893	Point 360			$	110.00
9/28/2007		Control Agreement Fee					$	50.00
9/28/2007	Wire	ADP Fees			$	191.68

TOTAL DISBURSEMENTS THIS PERIOD:			$	242,648.34	$	86,631.30	$	50.00		—

G. Ending Balance (E less F)			$	1,252,614.34	$	104,768.58	$	996,248.99	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 71		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	£	211,206.30	Pound Sterling	Time Deposit
Bank of Scotland — Basil	936582	£	235,467.78	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	$	31,163.46
Denial Venture	1890-69-6501	$	238,820.06
Cracker LLC	1891-04-1665	$	732.79
Swing	323-518095	$	12,651.13

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 P. Neuhauser
	Debtor in Possession