Exhibit 99.2

Office of the United States Trustee


In re:	DEBTOR IN POSSESSION OPERATING REPORT
The Kushner-Locke Company
	Report Number:	88	Page 1 of 2

Chapter 11	For the Period FROM:	2/1/2009

Case No. LA 01-44828-SB (Substantively Consolidated with	TO:	2/28/2009

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

20,363

Salaries and Wages — Other Employees

11,154

Total Salaries and Wages

31,516

Employee Benefits and Pensions

16,037

Employer Payroll Taxes/Fees

3,165

Other Taxes

Total Taxes

3,165

Rent and Lease Expense (including parking)

4,720

Distribution/Delivery Expenses

18,168

Interest Expense

Insurance

3,038

Automobile Expense/Mileage

Utilities (incl. Phone, phone equipment, internet)

559

Depreciation and Amortization

Business Equipment Leases

Business Expense reimbursement

547

Storage Expense

5,014

Supplies, Office Expenses, Photocopies, etc.

Bad Debts

Miscellaneous Operating Expenses

301

Total Operating Expenses

83,064

Net Gain/Loss from Business Operations

(83,064

)

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

2,762

Other Non-Operating Expenses (Board/Trustee fees)

Total Non-Operating Expenses

2,762

NET INCOME/(LOSS) FOR PERIOD

(85,827

)

DEBTOR IN POSSESSION OPERATING REPORT NO: 88 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		—		756,674

TOTAL		—		756,674

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.


	Carrier/	Amount of		Policy	Premium Paid
5 Insurance Coverage	Agent Name	Coverage		Expiration Date	Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000	1/14/2010	1/14/2010
Commercial Property (RENEWED)	St. Paul		2,000,000	2/14/2010	2/14/2010
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000	3/3/2009	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: $34,642.14

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