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| T | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the Fiscal Year Ended March 31, 2011 |
|---|-------------------------------------------------------------------------------------------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the Transition Period from............To............ |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                                       |   | 84-0685613                              |
|------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation) |   | (I.R.S. Employer Identification Number) |

| Large accelerated filer  £ | Accelerated filer  £ | Non- accelerated filer  £      | Smaller reporting company  R |
|-------------------------------------------|-------------------------------------|-----------------------------------------------|----------------------------------------|
|                                      |                                | (Do not check if a smaller reporting company) |                                   |

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| PART III   |     | 4                                                                                              |
|------------|----------|------------------------------------------------------------------------------------------------|
|       |     |                                                                                           |   |
|       | ITEM 10. | Directors, Executive Officers and Corporate Governance                                         | 4 |
|       | ITEM 11. | Executive Compensation                                                                         | 8 |
|       | ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 13 |
|       | ITEM 13. | Certain Relationships and Related Transactions, and Director Independence                      | 14 |
|       | ITEM 14. | Principal Accountant Fees and Services                                                         | 16 |
|       |     |                                                                                           |   |
| PART IV    |     | 18                                                                                             |
|       |     |                                                                                           |   |
|       | ITEM 15. | Exhibits and Financial Statement Schedules                                                     | 18 |
|       |     |                                                                                           |   |
| SIGNATURES |     | 19                                                                                             |

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| PART III |
|----------|

AND CORPORATE GOVERNANCE

|  Name         |   |  Director Class |   |  Director Since |   |  Age |   |  Principal Occupation and Business ExperienceDuring Past Five Years and Other Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------|--------|----------------------|--------|----------------------|--------|-----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |                 |   |                 |   |      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Patrick M. Collins |   | I                    |   | 2010                 |   | 37        |   | Mr. Collins is a senior investment professional with JH Partners, LLC (or JH Partners), a private equity firm, where he has held various positions since 2003.  Mr. Collins is a member of JH Partners' four-member investment committee and is responsible for leading deal teams in completing all phases of the firm's private equity investments, including sourcing, due diligence, debt financing, valuation, structuring, negotiation and monitoring.  Prior to joining JH Partners, Mr. Collins worked at Behrman Capital, a private equity firm.  Prior to Behrman Capital, Mr. Collins was an investment banker at Merrill Lynch & Co., Inc.  Mr. Collins currently serves on the boards of AmeriMark Holdings, LLC and CHP Holdings, Inc.  Mr. Collins received an MBA from Harvard Business School and a BA from Yale University.  Mr. Collins' experience with capital-raising and growth-oriented transactions provides the Board with perspective on the Company's strategies to grow its business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|               |   |                 |   |                 |   |      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Theodore S. Green  |   | I                    |   | 2010                 |   | 58        |   | Mr. Green was appointed as the Company's Chairman of the Board and Chief Executive Officer in January 2010.  From 2007 to 2009, Mr. Green served as Chairman and Co-CEO and director of TM Entertainment and Media, Inc., an entertainment and media investment company, and a director of its successor Chinese company.  From 2003 to 2006, Mr. Green was the CEO and Co-Owner of Anchor Bay Entertainment, a home entertainment and production company, which at the time was a subsidiary of IDT Entertainment, Inc, a production company that focused on the production, marketing and distribution of various media.  Mr. Green began serving as CEO upon the acquisition of Anchor Bay from The Handleman Company.  Prior to that, in 2001, Mr. Green established Greenlight Consulting Inc., a project-based consulting practice focused on the media and entertainment industry.  Greenlight Consulting's clients included Sony Music and Vivendi-Universal as well as numerous other regional media organizations.  Prior to founding Greenlight Consulting, in 2000, Mr. Green was President and Chief Operating Officer of MaMaMedia, Inc., an Internet company that created activity-based learning products for children and their families.  From 1992 to 2000, Mr. Green was the founder and President of Sony Wonder, the division of Sony BMG Music Entertainment responsible for the production and distribution of media geared toward youthful audiences and also for all home video distribution.  Beginning in 1989, Mr. Green was the Executive Vice President of Administration and Operations for ATCO Records, a music industry label co-owned with The Warner Music Group.  From 1982 until 1989, Mr. Green served as the Senior Vice President of Polygram Records, overseeing the Business Affairs and Music Publishing divisions of the company.  Mr. Green's career in the entertainment industry began first in the legal department and thereafter as the Director of Business Affairs for CBS Records.  Prior to that Mr. Green practiced general entertainment law at the firm of Moses Singer.  Mr. Green's broad and deep experience in various segments of the entertainment industry, together with his perspective as our Chief Executive Officer, provides the Board with unique insight and direct access to strategic and operational information about the Company. |

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|  Name     |   |  Director Class |   |  Director Since |   |  Age |   |  Principal Occupation and Business ExperienceDuring Past Five Years and Other Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------|--------|----------------------|--------|----------------------|--------|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                 |   |                 |   |      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| John W. Hyde   |   | II                   |   | 2010                 |   | 70        |   | Mr. Hyde was appointed as the Company’s Vice Chairman in January 2010. Mr. Hyde has served as CEO of Rehab Incorporated since 2007.  Mr. Hyde founded and has been an officer of Producers Sales Organization (or PSO) since 1982.  PSO and its affiliate company, Rehab Incorporated, are diversified entertainment, consulting, production, financing and distribution companies.  Mr. Hyde currently has in development Short Circuit for The Weinstein Company and Flight of the Navigator for Disney.  Since October 2007, Mr. Hyde has served as a member of the Board of Directors of The Jim Henson Company, creator of The Muppets and a family entertainment company.  From 2007 to 2008, Mr. Hyde served as the Vice Chairman of Starz Media, a film and television production and distribution company, where he was responsible for integrating the IDT Entertainment operations into the Starz group of companies.  From 2003 to 2006, Mr. Hyde was the COO of IDT Entertainment and CEO of IDTE Productions and New Ark Entertainment.  In those roles, Mr. Hyde oversaw all of IDT Entertainment's operations. From 2000 to 2006, Mr. Hyde was the CEO of Film Roman and was responsible for running the animation company producing The Simpsons, King of the Hill, Hellboy: Animated, Eloise, and Wow! Wow! Wubbzy!  Mr. Hyde’s entertainment development and management experience, strategic planning background and overall familiarity with the film and television industry provide the Board with greater insight into potential growth opportunities. |
|           |   |                 |   |                 |   |      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Mary J. George |   | III                  |   | 2010                 |   | 61        |   | Ms. George currently serves as Vice Chairman of Bell Automotive Products, Inc., as well as on the boards of the private companies Oreck Corporation and 3-Day Blinds.  Ms. George currently serves on the board of the Mission Hospital Foundation, a non-profit organization in Mission Viejo, California.  Ms. George previously served as the Chairman of Bell Sports from 2001 to 2005, its Chief Executive Officer from 1998 to 2000 and its Chief Operating Officer from 1994 to 1997.  Prior to joining Bell Sports, Ms. George was the Chief Operating Officer of Denar Corporation. She received an MBA in Finance and Marketing from Xavier Institute, Jamshedpur, India.  Ms. George’s experience in sales, marketing and general management in the consumer products industry, as well as success in the development of internationally renowned branded products, provides the Board with greater insight in the areas of product branding and strategic growth in the consumer products industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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|  Name           |   |  Director Class |   |  Director Since |   |  Age |   |  Principal Occupation and Business ExperienceDuring Past Five Years and Other Directorships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------------------|--------|----------------------|--------|----------------------|--------|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |   |                 |   |                 |   |      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Marshall A. Heinberg |   | III                  |   | 2010                 |   | 54        |   | Mr. Heinberg has served since 2008 as the Head of the Investment Banking Department and as a Senior Managing Director of Oppenheimer & Co. Inc., an investment bank and full-service investment firm.  He began his investment banking career in 1987 as an Associate in the Corporate Finance Division of Oppenheimer & Company, which was acquired by the Canadian Imperial Bank of Commerce (CIBC) in 1997.  In 2001, Mr. Heinberg was named Head of CIBC’s U.S. Investment Banking Department.  CIBC’s US Capital Markets Business was acquired by Oppenheimer & Co. Inc. in 2008. During his career, Mr. Heinberg has worked with many leading growth companies.  Mr. Heinberg has held responsibility for various sectors including environmental, industrial growth, technology and telecommunications.  His transaction experience includes public and private financings, exclusive sale and strategic advisory assignments.  He has been a Non-Executive Director at Universal Biosensors Inc. since January 11, 2010.  Mr. Heinberg graduated from the Wharton School of the University of Pennsylvania with honors, with a degree in economics, and received his law degree from Fordham Law School.  Mr. Heinberg’s experience in public and private financing, strategic development and sales provides the Board with insight regarding financial matters and potential growth and investment opportunities. |

| Name                |   | Age    |   | Position                                          |
|---------------------|--------|--------|--------|---------------------------------------------------|
| Executive Officers* |   |   |   |                                              |
| Theodore S. Green   |   | 58     |   | Chief Executive Officer and Chairman of the Board |
| John P. Avagliano   |   | 55     |   | Chief Operating Officer/Chief Financial Officer   |
| John W. Hyde        |   | 70     |   | Vice Chairman                                     |
|                |   |   |   |                                              |

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| ITEM 11.  | EXECUTIVE COMPENSATION |
|----------------|------------------------|

| Name & Principal Position | Fiscal Year |   | Salary($) |           |   | Bonus($) |   |           | StockAwards($)(1) |   |   | OptionAwards($)(2) |   |   | All OtherCompensation$)(3) |           |   | Total ($) |   |
|-------------------------------|-------------|--------|-----------|----------------|--------|----------|--------|----------------|-------------------|--------|--------|--------------------|--------|--------|----------------------------|----------------|--------|-----------|--------|
| Theodore S. Green,            | 2011        |   | $         | 300,000        |   |     | $      | –– |              |   | $      | 1,478,075          |   |   | $                          | 421,161        |   |      | $      | 1,615 |   |   | $ | 2,200,851 |   |
| Chief Executive Officer       | 2010        |   |      | 66,923         |   |     |   | –– |              |   |   | ––     |   |   |                       | –– |   |      |   | –– |   |   |   | 66,923 |   |
| and Chairman                  |        |   |      |           |   |     |   |           |              |   |   |               |   |   |                       |           |   |      |   |   |   |   |   |   |   |
|                          |        |   |      |           |   |     |   |           |              |   |   |               |   |   |                       |           |   |      |   |   |   |   |   |   |   |
| John P. Avagliano,            | 2011        |   |      | 300,000        |   |     |   | 50,000         |              |   |   | 713,726            |   |   |                       | 203,427        |   |      |   | 153,375 |   |   |   | 1,420,528 |   |
| Chief Operating Officer and   | 2010        |   |      | 66,923         |   |     |   | –– |              |   |   | ––     |   |   |                       | –– |   |      |   | 18,733 |   |   |   | 85,656 |   |
| Chief Financial Officer       |        |   |      |           |   |     |   |           |              |   |   |               |   |   |                       |           |   |      |   |   |   |   |   |   |   |
|                          |        |   |      |           |   |     |   |           |              |   |   |               |   |   |                       |           |   |      |   |   |   |   |   |   |   |
| John W. Hyde(4),              | 2011        |   |      | –– |   |     |   | –– |              |   |   | 1,289,815          |   |   |                       | 367,459        |   |      |   | 300,000 |   |   |   | 1,957,274 |   |
| Vice Chairman                 | 2010        |   |      | –– |   |     |   | –– |              |   |   | ––     |   |   |                       | –– |   |      |   | 66,923 |   |   |   | 66,923 |   |

| (1) | Amount represents the grant date fair value for restricted stock awards granted in the fiscal year indicated, calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 Compensation – Stock Compensation (or ASC Topic 718), based on the closing market price of our stock on the date of grant. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amount represents the grant date fair value for stock options granted in the fiscal year indicated, calculated in accordance with ASC Topic 718.  Refer to Note 1 in the Notes to Consolidated Financial Statements included in Item 8 of our 2011 Form 10-K for the relevant assumptions used to determine the valuation of our stock options. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Fiscal year 2011 includes: |
|-----|----------------------------|

|   | (i) | For Mr. Green, Company 401(k) match of $1,615. |
|--------|-----|------------------------------------------------|

|   | (ii) | For Mr. Avagliano, Company 401(k) match of $1,615, reimbursable commuting expenses of $106,760 and an advance against relocation expenses of $45,000. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | For Mr. Hyde, consulting fees. |
|--------|-------|--------------------------------|

|   | (i) | For Mr. Avagliano, includes reimbursable commuting expenses of $18,733. |
|--------|-----|-------------------------------------------------------------------------|

|   | (ii) | For Mr. Hyde, consulting fees. |
|--------|------|--------------------------------|

| (4) | Mr. Hyde provides all services to the Company through PSO, his wholly-owned consulting business. |
|-----|--------------------------------------------------------------------------------------------------|

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|   | · | an acquisition by any person or group of persons of beneficial ownership of more than 50% of the total combined voting power of our securities (other than a registered, public offering of our common stock and excluding acquisitions by Image, by any of its subsidiaries, by an employee benefit plan maintained by Image or its subsidiaries or by any person that, prior to such transaction, controls, is controlled by or is under common control with Image); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a change in the composition of the Board such that, during any two-year period, the incumbent board members cease to constitute at least a majority of the Board (excluding directors whose election, or nomination for election by stockholders, was approved by at least two-thirds of the incumbent board); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | consummation of certain mergers, consolidations, reorganizations or business combinations, a sale or other disposition of all or substantially all of Image’s assets or the acquisition of assets or stock of another entity (excluding transactions in which Image's outstanding voting securities before the transaction continue to represent thereafter at least a majority of the combined voting power of the successor entity); or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | stockholder approval of a dissolution or liquidation of Image (other than a liquidation or dissolution occurring upon a merger, consolidation, reorganization or business combination). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|              |   | Option Awards                                                  |           |   | Stock Awards                                                     |   |
|-------------------|--------|----------------------------------------------------------------|----------------|--------|------------------------------------------------------------------|--------|
| Name              |   | Number ofSecuritiesUnderlyingUnexercisedOptions(# Exercisable) |           |   | Number ofSecuritiesUnderlyingUnexercisedOptions(# Unexercisable) |   |   | OptionExercisePrice ($) |   |   | OptionExpirationDate |   |   | Number ofShares orUnits ofStock ThatHave NotVested (#) |   |   | MarketValue ofShares orUnits ofStock ThatHave NotVested ($)(1) |   |   | EquityIncentive PlanAwards:Number ofUnearnedShares, Units orOther RightsThat Have NotVested (#) |   |   | Equity IncentivePlan Awards:Market or PayoutValue ofUnearned Shares,Units or OtherRights That HaveNot Vested ($)(1) |   |
| Theodore S. Green |   |                                                           | 448,291        |   |                                                             |   | 1344874 |   |   | $ | 0.20 |   |   | 11/19/2020(2) |   |   |   | –– |   |   | $ | –– |   |   |   | –– |   |   | $ | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 946801 |   |   |   | 0.2 |   |   | 11/19/2020(3) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 2104273 |   |   |   | 0.2 |   |   | 11/19/2020(4) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 8,005,550 | (5) |   |   | 1,440,999 |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 1,502,877 | (6) |   |   | 270,518 |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 345,405 | (7) |   |   | 62,173 |   |
| John P. Avagliano |   |                                                           | 216,446        |   |                                                             |   | 649,338 |   |   |   | 0.2 |   |   | 11/19/2020(2) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 457,396 |   |   |   | 0.2 |   |   | 11/19/2020(3) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 1,016,568 |   |   |   | 0.2 |   |   | 11/19/2020(4) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 3,865,275 | (5) |   |   | 695,750 |   |   |   |   |   |   |   |   |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 726,036 | (6) |   |   | 130,686 |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 166,864 | (7) |   |   | 30,036 |   |
| John W. Hyde      |   |                                                           | 391,216        |   |                                                             |   | 1,173,648 |   |   |   | 0.2 |   |   | 11/19/2020(2) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 825,998 |   |   |   | 0.2 |   |   | 11/19/2020(3) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | 1,835,790 |   |   |   | 0.2 |   |   | 11/19/2020(4) |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 6,996,305 | (5) |   |   | 1,257,535 |   |   |   | –– |   |   |   | –– |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 1,311,126 | (6) |   |   | 236,003 |   |
|              |   |                                                           | –– |   |                                                             |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | 301,334 | (7) |   |   | 54,240 |   |

| (1) | Market value as of March 31, 2011 is calculated based on our closing stock price of $0.18 per share. |
|-----|------------------------------------------------------------------------------------------------------|

| (2) | Stock option 25% vested on January 8, 2011 and 6.25% vests each three-month period thereafter (the Service-BasedVesting Schedule), such that the stock option is 100% vested on January 8, 2014.  Vesting is rounded up to the nearest whole share. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Stock option vests 100% upon the earlier of (i) the date the stock’s fair market value equals or exceeds $0.0773 for any 20 out of 30 consecutive trading days on or after January 8, 2012, (ii) a change in control in which the stock’s equity value equals or exceeds $0.0773 per share, or (iii) January 8, 2019.  The events referred to in (i) and (ii) are referred to for purposes of this table as the Stock Price Hurdle I. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Stock option vests 100% upon the earlier of (i) the date the stock’s fair market value equals or exceeds $0.19 for any 20 out of 30 consecutive trading days on or after January 8, 2013, (ii) a change in control in which the stock’s equity value equals or exceeds $0.19 per share, or (iii) January 8, 2019.  The events referred to in (i) and (ii) are referred to as the Stock Price Hurdle II. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Shares vest in an amount equal to the product of (i) the Service-Based Vesting Schedule set forth in footnote 2 and (ii) the following amount: (a) 100% minus (b) the percentage of Series C preferred stock originally purchased by the JH Investors, as defined below, and still held by the JH Investors (this amount is referred to for purposes of this table as the Sale Percentage).  The Sale Percentage is 100% on the earlier of (x) January 8, 2015 or (b) termination without cause, for good reason, as a result of death or disability or termination resulting from non-extension of the employment or consulting agreement's term. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Stock award vests in an amount equal to the Sale Percentage as defined in footnote 5 above, provided that the Stock Price Hurdle I has been achieved.  Stock award otherwise vests 100% on January 8, 2019. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Stock award vests in amount equal to the Sale Percentage as defined in footnote 5 above, provided that the Stock Price Hurdle II has been achieved.  Stock award otherwise vests 100% on January 8, 2019. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                 |   | Fees Earned orPaid in Cash ($)(1) |   |   | Stock Awards($)(2) |   |   | Option Awards($) |   |   | All OtherCompensation ($) |   |   | Total ($) |           |
|----------------------|--------|-----------------------------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|---------------------------|--------|--------|-----------|----------------|
|                 |   |                              |   |   |               |   |   |             |   |   |                      |   |   |      |           |
| Mary J. George       |   | $                                 | 19,647 |   |               | $      | 23,000 |             |   | $      | ––            |   |   | $         | –– |   |   | $ | 42,647 |   |
| Marshall A. Heinberg |   |                              | 19,647 |   |               |   | 23,000 |             |   |   | ––            |   |   |      | –– |   |   |   | 42,647 |   |

| (1) | Annual retainer fee paid quarterly and prorated for the applicable service period.  Ms. George and Mr. Heinberg each became directors on August 5, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amount represents the grant date fair value for restricted stock awards granted during fiscal year 2011.  The per share grant date fair value of each of the restricted stock awards for 100,000 shares was $0.23, our closing stock price on the date of grant of the award.  Ms. George and Mr. Heinberg held no other equity awards at the end of fiscal year 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 12.  | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------------|------------------------------------------------------------------------------------------------|

| Name of Beneficial Owner                                            |   | Shares of Common StockBeneficially Owned(1) |   | Percent ofCommonStock(2) |   |
|---------------------------------------------------------------------|--------|---------------------------------------------|--------|--------------------------|--------|
| JH Evergreen Management, LLC(3)                                     |   | 175,868,700                                 |   | 68.81                    | %      |
| Theodore S. Green(4)                                                |   | 19,470,769                                  |   | 7.60                     | %      |
| John W. Hyde(5)                                                     |   | 16,785,439                                  |   | 6.55                     | %      |
| John P. Avagliano(6)                                                |   | 8,659,245                                   |   | 3.38                     | %      |
| Mary J. George(7)                                                   |   | 100,000                                     |   | *                        |   |
| Marshall A. Heinberg(8)                                             |   | 100,000                                     |   | *                        |   |
| Patrick M. Collins (9)                                              |   | ––                              |   | ––           |   |
| All current directors and executive officers as a group (6 persons) |   | 45,115,453                                  |   | 14.92                    | %      |

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| (1) | Beneficial ownership is determined in accordance with SEC rules.  For the number of shares beneficially owned by those listed above, we rely on information confirmed by each beneficial owner.  Except as indicated by footnote below, each person named reportedly has sole voting and investment powers with respect to the common stock beneficially owned by that person, subject to applicable community property and similar laws.  Except as indicated by footnote below, each owner’s mailing address is c/o Image Entertainment, Inc., 20525 Nordhoff Street, Suite 200, Chatsworth, California 91311. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On July 12, 2011, there were 255,602,133 shares of our common stock, $.0001 par value, outstanding.  Common stock not outstanding but which underlies options and warrants vested or exercisable as of, or vesting or exercisable within, 60 days after July 12, 2011, is deemed to be outstanding for the purpose of computing the percentage of the common stock beneficially owned by each named person or entity (and the directors and executive officers as a group), but is not deemed to be outstanding for any other purpose. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Information presented regarding JH Evergreen Management, LLC (or JH Evergreen Management), JH Partners Evergreen Fund, L.P. (or JH Evergreen), JH Investment Partners III, LP (or JHIP III), JH Investment Partners GP Fund III, LLC (or JHIP GP III) and John C. Hansen is based on information provided by JH Partners and certain of its affiliates.  The mailing address of JH Evergreen Management and the other affiliate filers is 451 Jackson Street, San Francisco, CA  94111-1615.  JH Evergreen Management and Mr. Hansen each reported beneficial ownership of 175,868,700 shares of common stock, of which each reported sole voting and dispositive power.  -JH Evergreen reported beneficial ownership of 149,795,403 shares of common stock, of which it had sole voting and dispositive power. JHIP III reported beneficial ownership of 17,866,505 shares of common stock, of which it had sole voting and dispositive power. JHIP GP III reported beneficial ownership of 8,206,792 shares of common stock, of which it had sole voting and dispositive power.  Mr. Hansen disclaimed beneficial ownership of such shares except to the extent of his pecuniary interest therein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes options to purchase 672,437 shares of common stock vesting or exercisable within 60 days after July 12, 2011 and 9,853,832 shares subject to restricted stock awards. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Hyde holds shares through PSO, his wholly owned consulting business.  Includes options to purchase 586,824 shares of common stock vesting or exercisable within 60 days after July 12, 2011 and 8,598,765 shares subject to restricted stock awards. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes options to purchase 324,670 shares of common stock vesting or exercisable within 60 days after July 12, 2011  and 4,758,175 shares subject to restricted stock awards. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes 66,668 shares subject to restricted stock awards that have not yet vested. |
|-----|-------------------------------------------------------------------------------------|

| (8) | Includes 66,668 shares subject to restricted stock awards that have not yet vested. |
|-----|-------------------------------------------------------------------------------------|

| (9) | Our director, Patrick Collins, is a senior investment professional with JH Partners, LLC, a private equity firm associated with JH Evergreen Management and the other JH entities referenced above. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Plan Category                                               |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) |       |   | Weighted-average exercise price of outstanding options, warrants and rights |   |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities referenced in the first column) (2) |   |
|-------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|------------|--------|-----------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders      |   |                                                                                            | 13,037,486 |   |                                                                        | $      | 0.252  |                                                                                                                                                   |   |   | 21,387,939 |   |
| Equity compensation plans not approved by security holders: |   |                                                                                            |       |   |                                                                        |   |   |                                                                                                                                                   |   |   |   |   |
| Compensatory warrants issued to service providers (3)       |   |                                                                                            | 8,018,868  |   |                                                                        |   | 0.530  |                                                                                                                                                   |   |   | –– |   |
| Total                                                       |   |                                                                                            | 21,056,354 |   |                                                                        | $      | 0.358  |                                                                                                                                                   |   |   | 21,387,939 |   |

| (1) | Includes options granted to employees, consultants and directors under our 2004 Incentive Compensation Plan, 2008 Stock Awards and Incentive Plan and 2010 Equity Incentive Award Plan. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Future equity awards may be granted under our 2004 Incentive Compensation Plan, 2008 Stock Awards and Incentive Plan, 2010 Equity Incentive Award Plan or 2011 Equity Incentive Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In August 2006, we issued a five-year warrant in connection with a convertible debt financing to an investor to purchase up to 1,000,000 shares of common stock at $4.25 per share.  The transactions with JH Partners and certain of its affiliates triggered the antidilution provisions contained in the warrant.  As a result, the warrant is now exercisable for 8,018,868 shares of our common stock at an exercise price of $0.53 per share. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

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| ITEM 14.  | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|----------------|----------------------------------------|

|               |   | 2011   |           |   | 2010   |   |
|--------------------|--------|--------|----------------|--------|--------|--------|
| Audit Fees         |   | $      | 347,237        |   |   | $      | 348,913 |   |
| Audit-Related Fees |   |   | –– |   |   |   | 2,500 |   |
| Tax Fees           |   |   | –– |   |   |   | –– |   |
| All Other Fees     |   |   | –– |   |   |   | –– |   |
|               |   |   |           |   |   |   |   |   |
| Total Fees         |   | $      | 347,237        |   |   | $      | 351,413 |   |

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Table of Contents

| PART IV |
|---------|

| Item 15.  | Exhibits and Financial Statements |
|----------------|-----------------------------------|

|   | 31.1* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer. |
|--------|-------|--------------------------------------------------------------------|

|   | 31.2* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer. |
|--------|-------|--------------------------------------------------------------------|

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|   | *   Filed herewith. |
|--------|------------------------------------|

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| SIGNATURES |
|------------|

|                            | IMAGE ENTERTAINMENT, INC.                           |   |
|---------------------------------|-----------------------------------------------------|--------|
|                            | A Delaware corporation                              |   |
|                            |                                                |   |
|                            |                                                |   |
| Dated:  July 29, 2011 | /s/ THEODORE S. GREEN                               |   |
|                            | THEODORE S. GREEN                                   |   |
|                            | Chairman and Chief Executive Officer                |   |
|                            | (Principal Executive Officer)                       |   |
|                            |                                                |   |
|                            |                                                |   |
| Dated:  July 29, 2011 | /s/ JOHN P. AVAGLIANO                               |   |
|                            | JOHN P. AVAGLIANO                                   |   |
|                            | Chief Operating Officer and Chief Financial Officer |   |
|                            | (Principal Financial and Accounting Officer)        |   |

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