Names of Reporting Persons

Medley Capital Corporation

Names of Reporting Persons

Medley Opportunity Fund II, LP

This Amendment No. 1 (“Amendment No. 1”) to Schedule 13D amends and supplements the statement on Schedule 13D (the “Schedule 13D”) originally filed on July 20, 2015 relating to the common stock, no par value per share (“Common Stock”), of Point.360, a California corporation (the “Issuer”). The principal executive offices of the Issuer are located at 2701 Media Center Drive, Los Angeles, CA 90065.

This Amendment No. 1 is being filed by Medley Capital Corporation, a Delaware corporation (“MCC”), and Medley Opportunity Fund II, LP, a Delaware limited partnership (“MOF II,” and together with MCC, the “Medley Entities”).

Certain terms used but not defined in this Amendment No. 1 have the meanings assigned thereto in the Schedule 13D. Except as specifically provided herein, this Amendment No. 1 does not modify any of the information previously reported on the Schedule 13D. The Schedule 13D is hereby amended and supplemented by this Amendment No. 1 as set forth herein:

Item 4 of the Schedule 13D is hereby amended to add the following:

Under the terms of the Sale Agreement, the Issuer agreed to submit to its shareholders a proposal to amend its bylaws to increase the authorized number of directors of the Issuer from five to seven directors, and to grant MCC the Board Representation Right. Under the terms of the Voting Agreement, each of the Medley Entities and Haig S. Bagerdjian, the Chief Executive Officer of the Issuer, agreed to vote all of their shares of Common Stock in support of this provision of the Sale Agreement.

As reported on the Issuer’s Form 8-K filed November 12, 2015, at the Issuer’s annual meeting of its shareholders held on November 11, 2015, the Issuer’s shareholders approved a proposal to amend the Issuer’s bylaws to increase the authorized number of directors of the Issuer from five to seven directors, and elected MCC’s nominees, James Frank and James Feeley III, to the Issuer’s board of directors (the “Board”) under the Board Representation Right.

Under the terms of the Sale Agreement, if the Medley Entities (together with their affiliate transferees) beneficially own in the aggregate less than 90% of the shares of Common Stock acquired by them pursuant to the Sale Agreement, the Board Representation Right will terminate and, upon the written request of the Issuer, Messrs. Frank and Feeley will tender their resignations from the Board. Also under the terms of the Sale Agreement, upon the payment in full of all outstanding principal and interest on the Term Loan and upon the written request of the Issuer, Messrs. Frank and Feeley will tender their resignations from the Board.

Subsequent to the expansion of the Board from five to seven members, an affirmative vote of at least 66 2/3% of the Issuer’s directors (which shall include the vote of the directors designated by MCC) shall be required to approve a transaction of the Issuer constituting a “reorganization” under the California Corporations Code or a “change of control transaction” (as defined in the Sale Agreement).

Because MCC has exercised the Board Representation Right and has nominated two directors that have been elected to the Issuer’s board of directors, the Medley Entities may have influence over the Issuer’s corporate activities. Such influence may relate to multiple facets of the Issuer’s operations, including without limitation, the Issuer’s capitalization and the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.