EXHIBIT 99.5

In re:

DEBTOR IN POSSESSION INTERIM STATEMENT

The Kushner-Locke Company

Statement Number:

Page 1 of 3

Chapter 11

For the Period FROM:

1/1/2007

Case No. LA 01-44828-SB (Administratively Consolidated with

TO:

1/31/2007

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)



		Collateral		Concentration		City National
CASH ACTIVITY ANALYSIS (Cash Basis Only)		Account		Account		Collection Account

Balance before Statement #1		$	268,333.21	$	65,956.21

A. Total Receipts per all Prior Interim Statements		$	9,741,106.24	$	8,319,281.69	$	707,241.91

B. Less: Total Disbursements per all Prior Statements		$	8,605,014.84	$	8,276,696.48	$	21,090.52

C. Beginning Balance		$	1,404,424.61	$	108,541.42	$	686,151.39

D. Receipts during Current Period
Description

1/11/2007	Daro Films	$	36,123.93
1/18/2007	Wire Transfer			$	65,000.00
1/24/2007	Vision Films					$	86,641.12
1/31/2007	Force Ent.					$	7,980.00
1/31/2007	Wire Transfer			$	50,000.00
1/31/2007	interest	$	6,664.80

TOTAL RECEIPTS THIS PERIOD		$	42,788.73	$	115,000.00	$	94,621.12		—

E. Balance Available (C plus D)		$	1,447,213.34	$	223,541.42	$	780,772.51	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 63		Page 2 of 3



F. Less: Disbursements during Current Period:
Date	Check No.		Payee/Purpose
1/5/2007		38678	AT&T			$	75.47
1/5/2007		38679	AT&T			$	324.95
1/5/2007		38680	Bonded Services, Inc			$	6,624.30
1/5/2007		38681	Health Net			$	4,645.40
1/5/2007		38682	Alice P. Neuhauser			$	585.32
1/18/2007			Wire Transfer	$	65,000.00
1/12/2007		38683	City Of Beverly Hills			$	452.48
1/12/2007		38684	Joe Nazarian			$	420.00
1/12/2007		38685	Kevin Marino			$	339.23
1/12/2007		38686	Recall			$	1,151.70
1/16/2007		8369	Payroll			$	1,393.65
1/16/2007		8370	Payroll			$	8,234.25
1/16/2007		8371	Payroll			$	1,628.87
1/16/2007		8372	Payroll			$	2,888.19
1/16/2007			ADP Taxes			$	9,907.15
1/17/2007			Service Charge			$	144.91
1/19/2007			ADP Fees			$	30.00
1/19/2007		38687	Arrowhead			$	26.21
1/19/2007		38688	Blue Shield of California			$	387.00
1/19/2007		38689	Brandon & Morner-Ritt			$	10,956.23
1/19/2007		38690	Federal Express			$	181.05
1/19/2007		38691	Kevin Marino			$	328.81
1/19/2007		38692	Stutman Treister & Glatt			$	22,255.25
1/26/2007		38693	Clumeck, Stem, Schenkelburg & Getzo			$	812.50
1/26/2007		38694	New Beginnings Enterprises			$	4,174.95
1/26/2007		38695	Kevin Marino			$	88.29
1/26/2007		38696	AT&T			$	78.61
1/26/2007		38697	AT&T			$	313.74
1/26/2007			ADP fees			$	291.33
1/30/2007			ADP Taxes			$	7,067.64
1/30/2007		8373	Payroll			$	1,393.64
1/30/2007		8374	Payroll			$	6,256.25
1/30/2007		8375	Payroll			$	1,628.86
1/30/2007		8376	Payroll			$	2,888.16
1/31/2007			Wire Transfer	$	50,000.00
1/31/2007			Control Agreement Fee					$	50.00

TOTAL DISBURSEMENTS THIS PERIOD:				$	115,000.00	$	97,974.41	$	50.00		—

G. Ending Balance (E less F)				$	1,332,213.34	$	125,567.01	$	780,722.51	$	—



	DEBTOR IN POSSESSION INTERIM STATEMENT NO: 63		Page 3 of 3


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			$	731.10
Bank of Scotland — Pinocchio		936582	£	461,410.23	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	228,591.85	Pound Sterling	Time Deposit (KL’ s interest is 50%)
Allied Pinocchio		10747301	$	—	Pound Sterling
Edge Entertainment		1891152710	$	172.89

I:	Other monies on hand (continued):

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

Joint Venture Accounts:
BLT Venture		178-71491-7	$	95,381.96
BLT Venture		16-524173-1101	$	330.45
KL MDP Sensation		60-066-930	$	—
KL\7 Venture		1890-69-6360	$	31,583.19
Denial Venture		1890-69-6501	$	162,731.86
Cracker LLC		1891-04-1665	$	732.79
Swing		323-518095	$	13,331.13

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

Office of the United States Trustee

KUSHNER LOCKE CO 8-K