Exhibit 99.2

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company	Report Number:	71	Page 1 of 2
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)

1 Profit and Loss Statement (Accrual Basis Only)
A. Related to Business Operations
Gross Sales		$	—
Costs Related to Revenues (Film Cost Amortization)
Gross Profit					—
Less: Operating Expenses
Officer Compensation	16,300
Salaries and Wages — Other Employees	15,000
Total Salaries and Wages			31,300
Employee Benefits and Pensions			5,032
Employer Payroll Taxes/Fees	1,837
Other Taxes
Total Taxes			1,837
Rent and Lease Expense (including parking)	4,786
Distribution/Delivery Expenses	550
Interest Expense
Insurance
Automobile Expense/Mileage
Utilities (incl. Phone, phone equipment, internet)	423
Depreciation and Amortization
Business Equipment Leases
Business Expense reimbursement	507
Storage Expense	14,099
Supplies, Office Expenses, Photocopies, etc.	19
Bad Debts
Miscellaneous Operating Expenses	233
Total Operating Expenses			58,787
Net Gain/Loss from Business Operations					(58,787	)
B. Not related to Business Operations
Income
Interest Income
Other Non-Operating Revenues			—
Gross Proceeds on Sale of Assets
Less: Original Cost of Assets plus expenses of sale
Net Gain/Loss on Sale of Assets			—
Total Non-Operating Income					—
Expenses Not Related to Business Operations
Legal and Professional Service Fees			190,543
Other Non-Operating Expenses (Board/Trustee fees)
Total Non-Operating Expenses					190,543
NET INCOME/(LOSS) FOR PERIOD				$	(249,330	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 71 Page 2 of 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days				—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future				1,254,033
TOTAL		—		1,254,033

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/  Agent Name	Amount of  Coverage		Policy  Expiration Date		Premium Paid T hrough Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2008		1/14/2008
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2008		2/14/2008
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2008		3/3/2008

6	Questions:
A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes          Explain: þ No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes           Explain: þ No
7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:                     $20,673.28
8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

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