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