Exhibit 99.2

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Office of the United States Trustee

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	78
For the Period FROM:	4/1/2008
TO:	4/30/2008

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)

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	17,638
	Salaries and Wages — Other Employees	11,154
	Total Salaries and Wages			28,791
	Employee Benefits and Pensions			4,817
	Employer Payroll Taxes/Fees	2,744
	Other Taxes
	Total Taxes			2,744
	Rent and Lease Expense (including parking)	4,551
	Distribution/Delivery Expenses	144
	Interest Expense
	Insurance
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)	718
	Depreciation and Amortization
	Business Equipment Leases
	Business Expense reimbursement	1,241
	Storage Expense	7,302
	Supplies, Office Expenses, Photocopies, etc.	1,639
	Bad Debts
	Miscellaneous Operating Expenses
	Total Operating Expenses			51,948
	Net Gain/Loss from Business Operations					(51,948	)
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			6,879
	Other Non-Operating Expenses (Board/Trustee fees)
	Total Non-Operating Expenses					6,879
NET INCOME/(LOSS) FOR PERIOD					$	(58,827)

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DEBTOR IN POSSESSION OPERATING REPORT NO: 78

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		—		864,833
TOTAL		—		864,833

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/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2009		1/14/2009
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2009		2/14/2009
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2009		3/3/2009

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:			$	41,034.04
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 Neuhauser  Debtor in Possession