Exhibit 99.1

Office of the United States Trustee

In re:

The Kushner-Locke Company

Chapter 11
Case No. LA 01-44828-SB (Substantively 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)

DEBTOR IN POSSESSION INTERIM STATEMENT

Page 1 of 3


Statement Number:			87

For the Period FROM:			1/1/2009

TO:			1/31/2009


		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		$	11,543,149.08	$	10,537,332.51	$	1,253,713.60

B. Less: Total Disbursements per all Prior Statements		$	10,940,576.94	$	10,335,876.20	$	45,066.80


C. Beginning Balance		$	870,905.35	$	267,412.52	$	1,208,646.80

D. Receipts during Current Period
Description

1/9/2009	WABC	$	18,750.00
1/14/2009	Wire Transfer			$	45,000.00
1/27/2009	Vision Films					$	15,005.87
1/28/2009	Media 8			$	150,000.00
1/30/2009	Wire Transfer			$	40,000.00
1/30/2009	interest	$	51.86


TOTAL RECEIPTS THIS PERIOD		$	18,801.86	$	235,000.00	$	15,005.87		—

E. Balance Available (C plus D)		$	889,707.21	$	502,412.52	$	1,223,652.67	$	—


DEBTOR IN POSSESSION INTERIM STATEMENT NO: 87		Page 2 of 3


F. Less: Disbursements during Current Period:

Date		Check No.		Payee/Purpose


	1334		01/02/2009	Stutman Treister & Glatt			$	60,565.21
Wire			01/02/2009	ADP			$	82.96
	1336		01/09/2009	AT & T			$	83.16
	1337		01/09/2009	AT & T			$	291.72
	1338		01/09/2009	City Of Beverly Hills			$	416.13
	1339		01/09/2009	Global Media Television			$	3,750.00
	1340		01/09/2009	Kevin Marino Expenses			$	93.75
	1341		01/09/2009	Secretary of State			$	25.00
	1343		01/09/2009	Bonded Services			$	4,000.00
Wire			01/13/2009	Payroll Tax			$	6,459.24
	8562		01/13/2009	Payroll			$	1,363.01
	8563		01/13/2009	Payroll			$	5,852.69
	8564		01/13/2009	Payroll			$	2,897.52
Wire			01/14/2009	Comerica Bank			$	171.32
	1344		01/14/2009	Clumeck Stern Schenkelberg & Getzoff			$	1,400.00
	1345		01/14/2009	Digitronix One			$	173.24
	1346		01/14/2009	Keren Aminia Expenses			$	1,145.97
	1347		01/14/2009	Point 360			$	105.60
	1348		01/14/2009	Recall			$	918.80
	1349		01/14/2009	USI			$	1,827.00
Wire			01/14/2009	Wire Transfer	$	45,000.00
Wire			01/16/2009	ADP			$	20.00
Wire			01/23/2009	ADP			$	162.96
	1351		01/23/2009	AT & T			$	85.59
	1352		01/23/2009	ITE Solutions			$	345.00
	1353		01/23/2009	Kevin Marino Expenses			$	127.55
	1354		01/23/2009	New Beginnings Enterprises			$	4,720.30
	1355		01/23/2009	AT & T			$	278.71
Wire			01/27/2009	Payroll Tax			$	7,457.93
	8565		01/27/2009	Payroll			$	1,362.99
	8566		01/27/2009	Payroll			$	7,127.90
	8567		01/27/2009	Payroll			$	2,897.52
	1356		01/28/2009	Blue Shield			$	319.00
	1357		01/28/2009	Bowne of Los Angeles			$	499.00
Wire			01/30/2009	Wire Transfer	$	40,000.00
Wire			01/30/2009	ADP			$	90.15
Wire			01/30/2009	City National Bank					$	50.00


TOTAL DISBURSEMENTS THIS PERIOD:					$	85,000.00	$	117,116.92	$	50.00		—

G. Ending Balance (E less F)					$	804,707.21	$	385,295.60	$	1,223,602.67	$	—


DEBTOR IN POSSESSION INTERIM STATEMENT NO: 87		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	£	219,874.21	Pound Sterling	Time Deposit
Bank of Scotland — Basil		936582	£	246,939.88	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	$	39,960.31
Denial Venture		1890-69-6501	$	244,500.56
Cracker LLC		1891-04-1665	$	15,569.01
Swing		323-518095	$	13,031.13

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.




		Debtor in Possession

KUSHNER LOCKE CO 8-K