Exhibit 99.4

Page 1 of 2

Office of the United States Trustee


In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	86
Chapter 11	For the Period FROM:	12/1/2008

Case No. LA 01-44828-SB (Substantively Consolidated with	TO:	12/31/2008

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

17,850

Salaries and Wages — Other Employees

11,154

Total Salaries and Wages

29,004

Employee Benefits and Pensions

Employer Payroll Taxes/Fees

1,295

Other Taxes

8,800

Total Taxes

10,095

Rent and Lease Expense (including parking)

Distribution/Delivery Expenses

28,819

Interest Expense

Insurance

Automobile Expense/Mileage

Utilities (incl. Phone, phone equipment, internet)

Depreciation and Amortization

Business Equipment Leases

Business Expense reimbursement

816

Storage Expense

919

Supplies, Office Expenses, Photocopies, etc.

1,682

Bad Debts

Miscellaneous Operating Expenses

195

Total Operating Expenses

71,556

Net Gain/Loss from Business Operations

(71,556

)

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

10,661

Other Non-Operating Expenses (Board/Trustee fees)

Total Non-Operating Expenses

10,661

NET INCOME/(LOSS) FOR PERIOD

(82,217

)


DEBTOR IN POSSESSION OPERATING REPORT NO: 86	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		1,400		794,174
TOTAL		1,400		794,174

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

Commercial Property (RENEWED)

St. Paul

2,000,000

2/14/2009

Errors & Omissions — Library (RENEWED)

St. Paul

3,000,000

3/3/2009

Questions:

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

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: $ 80,871.69

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

KUSHNER LOCKE CO 8-K