Crossroads Systems Q2 FY2021: 4th Largest PPP Lender, 472,036 Loans, $150.4M Operating Income

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4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
Crossroads Systems Reports Fiscal Second Quarter 2021 
Financial Results 
Record Issuance of PPP Loans Drives Record Operating Income of $150.4 Million, or $25.16 
Per Share 
4th Largest PPP Lender by Net Dollars; 2nd Largest by Loans Approved  
DALLAS, Texas, June 14, 2021 – Crossroads Systems, Inc. (OTCQX: CRSS) (“Crossroads” 
or the “Company”), a holding company focused on investing in businesses that promote 
economic vitality and community development, reported financial results for its fiscal second 
quarter 2021 ended April 30, 2021. 
Fiscal Second Quarter 2021 Key Performance Indicators (KPIs) 
• Gross origination fees associated with PPP loans totaled $464.1 million for the quarter. 
Net of cost of fees and margin split with loan service providers, the Company recorded 
$150.2 million in operating income from origination fees during the second fiscal quarter.  
• Capital Plus Financial, a designated CDFI, issued and approved 364,079 PPP loans to 
small business owners and independent contractors during the quarter. As of the 
culmination of the program on May 31, 2021, the Company has approved 472,036 loans 
at an average amount of $16,062. 80% of loans issued and approved went to minority 
small business owners and individuals.  
• Expects to accrue a total of $1.1 billion in deferred gross origination fees from the 
program, which will be recognized when expenses are incurred in a later period.  
• Added $4.9 million in new single-family mortgages during the fiscal second quarter. 
• The Company’s mortgage portfolio grew to $132 million from $121.4 million for the 
comparative period in 2020. 
• The serious delinquency rate as of the period ended April 30, 2021 was 1.1%, compared 
to 1.4% at the end of the same period in 2020. The Federal Home Loan Mortgage 
Corporation (Freddie Mac) reported a single-family serious delinquency rate of 2.15% as 
of the period ended April 30, 2021. The serious delinquency rate is based on the number 
of mortgage loans that are three monthly payments or more past due or in the process of 
foreclosure.  

 
 
 
4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
• Held 113 properties in inventory compared to 119 at the same time in 2020. As of April 
30, 2021, gross inventory was $11.6 million compared to $11.5 million as of April 30, 
2020. The housing boom in Texas is providing very stable employment and growth for 
CPF’s customers. This is, however, providing, supply constraints for housing stock but 
inventory is selling as fast as it comes to market.  
Fiscal Second Quarter 2021 Financial Highlights 
• Total property sales income was $6.6 million for the quarter, up from $6.4 million for the 
same period in 2020. The increase in property sales income for the quarter was primarily 
due to slightly increased pricing on homes sold.   
• Total interest income increased 76% to $5.6 million, up from $3.2 million in the 
comparative 2020 period. The increase in interest income was the result of interest 
income earned from the growth in the mortgage loan portfolio and the interest from the 
PPP loans.  
• Operating income increased to $150.4 million, up from $1.3 million in the same period 
in 2020. The substantial increase in operating income was primarily due to origination 
fees associated with the Company’s participation in the PPP loan program. 
• Cash EPS (operating income less income to non-controlling interests) was $25.16 
compared to $0.16 for the comparative period in 2020. The Company utilized its tax 
losses of $103 million and its deferred tax asset of $21 million and booked a cash tax 
expense of $9.6 million for the quarter.  
• Book value as reported was $173.5 million, or $29.05 per share. Adjusted book value 
including $1.2 million of subordinated debt totaled $174.8 million, or $29.26 per share. 
• As of April 30, 2021, the Company held a cash balance of $213.1 million compared to 
$2.6 million as of October 31, 2020. 
Management Commentary 
“In the last several months, Capital Plus has transformed from a regional single-family 
mortgage-based lending institution into one of the country’s largest providers of small business 
loans,” said Eric A. Donnelly, Chief Executive Officer of Crossroads Systems. “When the SBA 
announced its reopening of the program in January, we immediately identified strong synergies 
between the program’s focus on small businesses and Capital Plus’ core mission as a CDFI. 
Together with our loan service providers, we established early incumbency as the go-to 
institution for small business owners, independent contractors, and sole proprietors. Financially, 

 
 
 
4514 Cole St. Suite 1600    Dallas, Texas 75205    Main: 214-999-0149   
our success in the program has put us into the best position we have ever been in, netting us 
more than $150 million in operating income for the quarter. At a record cash position, we are 
well-capitalized to support the future growth initiatives that will drive our double-bottom line.  
We will provide a more detailed review of the quarter and these growth initiatives in the near 
future upon the completion of PPP.   
About Crossroads Systems  
Crossroads Systems, Inc. (OTCQX: CRSS) is a holding company focused on investing in businesses that promote economic 
vitality and community development. Crossroads’ subsidiary, Capital Plus Financial (CPF), is a certified Community 
Development Financial Institution (CDFI) and certified B- Corp, which supports Hispanic homeownership with a long term, 
fixed-rate single-family mortgage product. 
 
Important Cautions Regarding Forward-Looking Statements  
This press release includes forward-looking statements that relate to the business and expected future events or future 
performance of Crossroads Systems, Inc. and Capital Plus Financial and involve known and unknown risks, uncertainties 
and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from 
any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. 
Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," 
"would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements 
include, but are not limited to, statements about Crossroads Systems' and Capital Plus Financial’s ability to implement their 
business strategy, and their ability to achieve or maintain profitability. The future performance of Crossroads Systems and 
Capital Plus Financial may be adversely affected by the following risks and uncertainties: economic changes affecting 
homeownership in the geographies where Capital Plus Financial conducts business, developments in lending markets that 
may not align with Capital Plus Financial’s expectations and that may affect Capital Plus Financial’s plans to grow its 
portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological change in the 
industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be 
materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion 
of these factors and risks, investors should review Crossroads Systems' annual and quarterly reports. Forward-looking 
statements in this press release are based on management's beliefs and opinions at the time the statements are made. All 
forward-looking statements are qualified in their entirety by this cautionary statement, and Crossroads Systems undertakes 
no duty to update this information to reflect future events, information or circumstances.  
 
©2021 Crossroads Systems, Inc., Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, 
Inc. All trademarks are the property of their respective owners.  
 
Company Contact: 
Crossroads Systems 
IR@crossroads.com  
 
Investor Relations Contact: 
Gateway Investor Relations 
Matt Glover and Tom Colton 
CRSS@gatewayir.com 
(949) 574-3860 
 
Press/Media Contact: 
dovetail solutions  
Andy Boian 
aboian@dovetailsolutions.com 
(720) 221-9211 
 

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
The accompanying notes are an integral part of these consolidated financial statements.
          ASSETS
April 30,         
2021
October 31, 
2020
CURRENT ASSETS
Cash and cash equivalents
213,077,424
$     
2,127,059
$     
Restricted cash
450,918,490
       
3,004,051
       
Interest receivable
103,358,931
       
930,871
          
Current portion of notes receivable
782,923
              
1,527,234
       
Current portion of other notes receivable
3,611
                  
7,014
              
Inventory
11,604,491
         
10,544,236
     
Prepaid expenses and other current assets
186,022
              
411,645
          
Total current assets
779,931,893
       
18,552,110
     
NOTES RECEIVABLE, net of current maturities and allowance of $0
129,441,757
       
127,304,450
   
OTHER NOTES RECEIVABLE, net of current maturities, participations and allowance of $0
1,607,379
           
1,583,761
       
PPP LOAN RECEIVABLES
3,500,663,375
    
-
                  
GOODWILL
18,566,966
         
18,566,966
     
DEFERRED TAX ASSET
-
                      
18,300,334
     
OTHER NON-CURRENT ASSETS
132,673
              
-
                  
TOTAL ASSETS
4,430,344,043
$  
184,307,621
$ 
          LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable
287,489
$            
222,610
$        
Accrued liabilities
194,786,029
       
353,901
          
Escrow liabilities
1,420,841
           
2,886,249
       
-
                  
Current portion of credit facilities
39,441,501
         
75,694,845
     
Current portion of other note payable (subordinated)
97,218
                
191,337
          
Current portion of acquisition notes payable
-
                      
2,495,172
       
Total current liabilities
236,033,077
       
81,844,114
     
CREDIT FACILITIES, net of current maturities
60,828,194
         
39,481,435
     
OTHER NOTE PAYABLE, net of current maturities (subordinated)
1,144,235
           
1,144,234
       
ACQUISITION NOTES PAYABLE, net of current maturities
9,647,991
           
10,582,769
     
PAYROLL PROTECTION PROGRAM LOAN 
376,800
              
376,800
          
FED PPPLF CREDIT FACILITY
3,948,207,844
    
-
                      
OTHER LONG-TERM LIABILITIES
601,391
              
407,091
          
TOTAL LIABILITIES
4,256,839,533
    
133,836,443
   
EQUITY
Common stock, $0.001 par value: 75,000,000 shares 
authorized, 5,971,994 shares issued and outstanding
5,972
                  
5,972
              
Additional paid in capital
242,619,673
       
242,471,412
   
Accumulated deficit
(87,171,619)
        
(210,057,986)
  
Crossroads Systems, Inc. stockholders' equity
155,454,026
       
32,419,398
     
Non-controlling interests
18,050,485
         
18,051,780
     
TOTAL EQUITY
173,504,511
       
50,471,178
     
TOTAL LIABILITIES AND EQUITY
4,430,344,043
$  
184,307,621
$ 
CROSSROADS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS 
FOR THE QUARTER 
ENDED APRIL 30, 2021
The accompanying notes are an integral part of these consolidated financial statements.
April 30, 2021
April 30,2020
REVENUES
Interest income
5,596,975
$      
3,034,272
      
Property sales
6,641,800
6,423,312
      
Other revenue
464,303,570
81,047
           
Total revenues
476,542,345
    
9,538,631
      
COSTS AND EXPENSES
Interest expense
2,155,291
1,569,158
      
Cost of properties sold
5,602,611
5,457,218
      
General and administrative
317,603,771
481,437
         
Salaries and wages
781,454
687,361
         
Total costs and expenses
326,143,128
    
8,195,175
      
Income from operations
150,399,217
    
1,343,456
      
OTHER EXPENSES
Interest expense
(123,838)
          
(211,876)
        
Total other expenses
(123,838)
          
(211,876)
        
Income before income tax provision
150,275,379
    
1,131,581
      
INCOME TAX PROVISION
(27,883,562)
     
(164,582)
        
NET INCOME
122,391,817
    
966,999
         
Less: net income attributable to non-controlling interests
(155,432)
          
(157,068)
        
NET INCOME ATTRIBUTABLE TO CONTROLLING INTERESTS
122,236,385
$  
809,931
$       
Earnings (loss) per share:
Cash income attributable to common shareholders
140,424,274
    
974,513
         
Weighted average shaes outstanding
5,971,994
        
5,971,994
      
Cash income per share
23.51
$             
0.16
$             
For the Three Months Ended 
CROSSROADS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2021
The accompanying notes are an integral part of these consolidated financial statements.
April 30, 2021
April 30, 2020
REVENUES
Interest income
8,866,882
$      
6,214,126
$    
Property sales
10,640,860
10,603,712
Other revenue
464,354,061
365,368
Total revenues
483,861,803
    
17,183,206
    
COSTS AND EXPENSES
Interest expense
3,558,240
3,084,739
Cost of properties sold
9,217,053
9,127,287
General and administrative
318,101,557
974,053
Salaries and wages
1,526,832
1,360,825
Total costs and expenses
332,403,682
    
14,546,903
    
Income from operations
151,458,121
    
2,636,303
      
OTHER EXPENSES
Interest expense
(261,609)
          
(395,322)
        
Total other expenses
(261,609)
          
(395,322)
        
Income before income tax provision
151,196,512
    
2,240,981
      
INCOME TAX PROVISION
(27,996,007)
     
(295,952)
        
NET INCOME
123,200,505
    
1,945,029
      
Less: net income attributable to non-controlling interests
(314,137)
          
(315,863)
        
NET INCOME ATTRIBUTABLE TO CONTROLLING INTERESTS
122,886,368
$  
1,629,166
$    
Earnings (loss) per share:
Cash income attributable to common shareholders
141,186,702
    
1,925,118
      
Weighted average shaes outstanding
5,971,994
        
5,971,994
      
Cash income per share
23.64
$             
0.32
$             
For the Six Months Ended 

CROSSROADS SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
The accompanying notes are an integral part of these consolidated financial statements.
As of April 30, 
2021
As of April 30, 
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
123,199,210
$       
1,945,029
$      
Adjustments to reconcile net income to net cash
used in operating activities:
Loss on derivative related activity
(105,702)
               
(105,702)
         
Stock based compensation
148,261
                
(1,681)
             
Amortization of deferred financing fees
(132,673)
               
22,993
             
Provision for income taxes
18,300,334
           
295,952
           
Changes in operating assets and liabilities:
Account & Interest receivable
(102,428,060)
        
(9,506)
             
Notes receivable (Mortgages, other and PPP)
(3,502,076,587)
     
(3,914,231)
      
Inventory
(1,060,255)
            
322,679
           
Prepaids and other assets
225,623
                
70,986
             
Accounts payable
64,879
                  
(4,195)
             
Accrued liabilities
194,732,130
         
270,841
           
Escrow liabilities
(1,465,408)
            
(1,846,279)
      
Net cash used in operating activities
(3,270,598,249)
     
(2,953,112)
      
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred equity dividend distributions
(314,137)
               
(315,863)
         
Paycheck Protection Program loan
-
                        
376,800
           
Borrowings on credit facilities, net
-
                        
10,780,490
      
Principal payments on credit facilities
(14,906,585)
          
(8,509,019)
      
Principal payments on other notes payable
(94,118)
                 
(88,211)
           
Principal payments on acquisition note payable
(3,429,950)
            
(1,028,203)
      
Principal payments on participations in mortgage notes and other receivables
-
                        
1,275,978
        
Proceeds from the federal reserve PPP credit facility
3,948,207,844
      
-
                  
      Net cash provided by financing activities
3,929,463,055
      
2,491,973
        
Net change in cash and cash equivalents and restricted cash
658,864,805
         
(461,139)
         
Cash and cash equivalents and restricted cash at beginning of period
5,131,110
             
3,030,074
        
Cash and cash equivalents and restricted cash at end of period
663,995,915
$       
2,568,935
$      
SUPPLEMENTAL INFORMATION
Cash paid for interest
3,137,559
$           
3,221,615
$

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