Exhibit 99.1

Office of the United States Trustee

In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	13	Page 1 of 2
Chapter 11	For the Period FROM:	11/1/2002
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:	11/30/2002

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			22,800
		Salaries and Wages — Other Employees			16,363
			Total Salaries and Wages				39,163
			Employee Benefits and Pensions				5,347
		Employer Payroll Taxes/Fees			1,221
		Other Taxes			—
			Total Taxes				1,221
		Rent and Lease Expense (including parking)
		Distribution/Delivery Expenses
		Interest Expense
		Insurance			18,188
		Automobile Expense/Mileage
		Utilities (incl. Phone, phone equipment, internet)			438
		Depreciation and Amortization
		Business Equipment Leases			260
		Business Expense reimbursement
		Storage Expense			6,961
		Supplies, Office Expenses, Photocopies, etc.
		Bad Debts
		Miscellaneous Operating Expenses			600
			Total Operating Expenses				72,177
				Net Gain/Loss from Business Operations					(72,177	)
	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				19,334
			Other Non-Operating Expenses (Board/Trustee fees)
			Total Non-Operating Expenses						19,334
	NET INCOME/(LOSS) FOR PERIOD							$	(91,512	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 13 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			—		1,344,833
		TOTAL		—		1,344,833

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 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:                  $762,156.19
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.

Debtor in Possession