8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report: December 23, 2002

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	95-4079057
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)
8671 Wilshire Blvd., Suite 714 Beverly Hills, California (Address of Principal Executive Offices)		90211 (Zip Code)

(310) 358-5508
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS

	Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
(c) Exhibits.
SIGNATURE
EXHIBIT 99.1
EXHIBIT 99.2

Item 7.         Financial Statements, Pro Forma Financial Statements and Exhibits.

(a)	Financial Statements of Business Acquired.
	Not Applicable.
(b)	Pro Forma Financial Information.
	Not Applicable.

(c)	Exhibits.
	Exhibit 99.1. Monthly Operating Report of The Kushner-Locke Company (the “Registrant”) for the calendar month from October 1, 2002 to October 31, 2002.
	Exhibit 99.2. Monthly Interim Statement of the Registrant for the calendar month from October 1, 2002 to October 31, 2002.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: December 23, 2002	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser Responsible Officer

EX-99.1 3 v86721exv99w1.htm EXHIBIT 99.1

Office of the United States Trustee

In re: The Kushner-Locke Company	DEBTOR IN POSSESSION OPERATING REPORT
	Report Number	12	Page 1 of 2
Chapter 11	For the Period FROM:	10/1/2002
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)	TO:	10/31/2002

1 Profit and Loss Statement (Accrual Basis Only)
	A. Related to Business Operations
		Gross Sales				$	—
		Costs Related to Revenues (Film Cost Amortization)					25,356
			Gross Profit						(25,356	)
		Less: Operating Expenses
		Officer Compensation			25,275
		Salaries and Wages — Other Employees			18,717
			Total Salaries and Wages				43,992
			Employee Benefits and Pensions				6,450
		Employer Payroll Taxes/Fees			1,426
		Other Taxes			—
			Total Taxes				1,426
		Rent and Lease Expense (including parking)			4,720
		Distribution/Delivery Expenses			29
		Interest Expense
		Insurance
		Automobile Expense/Mileage			64
		Utilities (incl. Phone, phone equipment, internet)			528
		Depreciation and Amortization
		Business Equipment Leases			260
		Business Expense reimbursement
		Storage Expense			6,937
		Supplies, Office Expenses, Photocopies, etc
		Bad Debts
		Miscellaneous Operating Expenses			1,458
			Total Operating Expenses				65,864
				Net Gain/Loss from Business Operations					(91,219	)
	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				14,984
			Other Non-Operating Expenses (Board/Trustee fees)
			Total Non-Operating Expenses						14,984
	NET INCOME/(LOSS) FOR PERIOD							$	(106,203	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 9 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		—		1,349,000
TOTAL		—		1,349,000

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 1/11/02)	St. Paul		1,000,000	1/14/2003	1/14/2003
Commercial Property (RENEWED)	St. Paul		2,000,000	2/14/2003	2/14/2003
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000	3/3/2003	3/3/2003
Employment Practices Liability (RENEWED-RUN OFF)	Nat’l Union		5,000,000	10/30/2003	10/30/2003

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:
x	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:
x	No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

     Total unpaid post-petition Professional Fees during the reporting period:          $ 758,069.20

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

EX-99.2 4 v86721exv99w2.htm EXHIBIT 99.2

Office of the United States Trustee

In re:   The Kushner-Locke Company	DEBTOR IN POSSESSION INTERIM STATEMENT
	Statement Number:	12	Page 1 of 4
Chapter 11	For the Period FROM:	10/1/2002
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)	TO:	10/31/2002

CASH ACTIVITY ANALYSIS (Cash Basis Only)

		Collateral		Concentration
		Account		Account
Balance before Statement #1		$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements			2,253,374.11		1,937,834.10
B. Less: Total Disbursements per all Prior Statements			1,915,912.51		1,976,484.47
C. Beginning Balance		$	605,794.81	$	27,305.84
D. Receipts during Current Period
Description
10/3/2002	account transfer				47,000.00
10/15/2002	A&E Home Video				465.86
10/15/2002	Phone Refund				1,619.24
10/15/2002	COBRA				6,655.35
10/16/2002	account transfer				35,000.00
10/17/2002	Svensk Film		97.40
10/23/2002	B Sky B		87.22
10/30/2002	interest		373.79
TOTAL RECEIPTS THIS PERIOD			558.41		90,740.45		-		-
E. Balance Available (C plus D)		$	606,353.22		118,046.29	$	-	$	-

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 12 Page 2 of 4

F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
10/1/2002		37446	Hodes Parking			$	360.00
10/1/2002		37447	Property Management Associates, I			$	2,000.00
10/1/2002		37448	Qwest Communications			$	40.70
10/1/2002		37449	Matthew Schuler			$	80.00
10/2/2002			Payroll Taxes			$	4,159.06
10/3/2002			account transfer	$	47,000.00
10/3/2002		7915	Payroll			$	730.75
10/3/2002		7916	Payroll			$	6,071.11
10/3/2002		7917	Payroll			$	1,249.88
10/3/2002		7918	Payroll			$	2,688.07
10/4/2002			Payroll Fees			$	148.56
10/4/2002		37450	Suzanne Nardacci			$	1,850.00
10/4/2002		37451	Zerolag Communications, Inc			$	100.00
10/7/2002		37452	United Sates Trustee			$	3,750.00
10/7/2002		37453	United Sates Trustee			$	250.00
10/7/2002		37454	United Sates Trustee			$	250.00
10/7/2002		37455	United States Trustee			$	250.00
10/7/2002		37456	United States Trustee			$	250.00
10/7/2002		37457	United States Trustee			$	250.00
10/7/2002		37458	United States Trustee			$	250.00
10/7/2002		37459	United States Trustee			$	250.00
10/7/2002		37460	United States Trustee			$	250.00
10/9/2002		37461	Bonded Services, Inc			$	6,267.75
10/9/2002		37462	Marathon Services, Inc			$	259.80
10/9/2002		37463	Pacific Bell			$	46.47
10/9/2002		37464	Recall			$	668.93
10/9/2002		37465	Matthew Schuler			$	160.00
10/9/2002		37466	Lions Gate Entertainment			$	25,355.71
10/11/2002			Payroll Fees			$	84.80
10/16/2002			Payroll Taxes			$	4,159.08
10/16/2002			account transfer		35,000.00
10/17/2002		7919	Payroll			$	730.75
10/17/2002		7920	Payroll			$	6,071.11
10/17/2002		7921	Payroll			$	1,249.87
10/17/2002		7922	Payroll			$	2,688.06
10/18/2002			Payroll Fees			$	53.72
10/21/2002		37467	Bowne of Los Angeles, Inc			$	307.00
10/21/2002		37468	Cash			$	350.00
10/21/2002		37469	Federal Express			$	15.71
10/25/2002			Payroll Fees			$	93.80
10/28/2002		37470	Clumeck, Stern, Phillips & Schenkelbu			$	5,733.75
10/30/2002			Payroll Taxes			$	3,355.72
10/31/2002		37290	Secretary of State    Void ck issued 5/8/02			$	(20.00	)
10/31/2002		37291	Secretary of State    Void ck issued 5/8/02			$	(20.00	)
10/31/2002		7923	Payroll			$	730.75
10/31/2002		7924	Payroll			$	5,124.45
10/31/2002		7925	Payroll			$	1,249.88
10/31/2002		7926	Payroll			$	2,688.06
10/31/2002		37472	Blue Cross			$	6,200.00
10/31/2002		37473	Bowne of Los Angeles, Inc			$	801.00

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 12 Page 3 of 4

10/31/2002	37474	Federal Express			$	13.65
10/31/2002	37475	Fortis Benefits Insurance Co			$	250.34
10/31/2002	37476	Hodes Parking			$	360.00
10/31/2002	37477	KEVIN MARINO			$	63.64
10/31/2002	37478	Pacific Bell			$	300.09
10/31/2002	37479	Property Management Associates, I			$	2,000.00
10/31/2002	37480	Secretary of State			$	20.00
10/31/2002	37481	Secretary of State			$	20.00
10/31/2002	37482	United States Trustee			$	1,500.00
10/31/2002	37483	United States Trustee			$	250.00
10/31/2002	37484	United States Trustee			$	250.00
10/31/2002	37485	United States Trustee			$	250.00
10/31/2002	37486	United States Trustee			$	250.00
10/31/2002	37487	United States Trustee			$	250.00
10/31/2002	37488	United States Trustee			$	250.00
10/31/2002	37489	United States Trustee			$	250.00
10/31/2002	37490	United States Trustee			$	250.00
10/31/2002	37491	Qwest Communications			$	41.11
TOTAL DISBURSEMENTS THIS PERIOD:				82,000.00		106,203.13		-		-
G. Ending Balance (E less F)			$	524,353.22		11,843.16	$	-	$	-

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 12 Page 4 of 4

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	1891215236	$	1,000.00
Bank of Scotland — Pinocchio	3549485		1,272,951.01	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3626816		75,478.07	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio	10747301		2,648.11	Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95
Edge Entertainment	1891152710	$	444.92
European Films LTD	1890563818	$	7,051.58

I: Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:
	KL MDP Sensation	60-066-930	$	17,689.94
	KL\7 Venture	1890-69-6360	$	9,291.21
	Denial Venture	1890-69-6501	$	41,918.75
	Cracker LLC	1891-04-1665	$	1,000.00
	Swing	323-518095	$	6,957.50

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

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EX-99.1

The Kushner-Locke Company - Exhibit 99.1

EX-99.2

The Kushner-Locke Company - Exhibit 99.2